0000886206-22-000028 | 10-K | XBRL Viewer

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Document And Entity Information - USD ($) $ in Millions	12 Months Ended
Document And Entity Information - USD ($) $ in Millions	Aug. 31, 2022	Oct. 31, 2022	Feb. 28, 2022
Document And Entity Information [Abstract]
Document Type	10-K
Document Annual Report	true
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2022
Document Period End Date	Aug. 31, 2022
Document Transition Report	false
Entity File Number	001-11107
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	84119-2331
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,896,516
Entity Public Float			$ 502.7
Documents Incorporated By Reference	Parts of the Registrant's Definitive Proxy Statement for the Annual Meeting of Shareholders, which is scheduled to be held on January 20, 2023, are incorporated by reference in Part III of this Form 10-K.
Amendment Flag	false
Entity Central Index Key	0000886206
Auditor Firm ID	34
Auditor Name	Deloitte & Touche LLP
Auditor Location	Salt Lake City, Utah

Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Current assets:
Cash and cash equivalents	$ 60,517	$ 47,417
Accounts receivable, less allowance for doubtful accounts of $4,492 and $4,643	72,561	70,680
Inventories	3,527	2,496
Prepaid expenses	4,711	3,252
Other current assets	14,567	12,863
Total current assets	155,883	136,708
Property and equipment, net	9,798	11,525
Intangible assets, net	44,833	50,097
Goodwill	31,220	31,220
Deferred income tax assets	4,686	4,951
Other long-term assets	12,735	15,153
Total assets	259,155	249,654
Current liabilities:
Current portion of notes payable	5,835	5,835
Current portion of financing obligation	3,199	2,887
Accounts payable	10,864	6,948
Deferred subscription revenue	85,543	74,772
Other deferred revenue	14,150	11,117
Accrued liabilities	34,205	34,980
Total current liabilities	153,796	136,539
Notes payable, less current portion	7,268	12,975
Financing obligation, less current portion	7,962	11,161
Other liabilities	7,116	8,741
Deferred income tax liabilities	199	375
Total liabilities	176,341	169,791
Commitments and contingencies (Note 9)
Shareholders’ equity:
Common stock, $.05 par value; 40,000 shares authorized, 27,056 shares issued	1,353	1,353
Additional paid-in capital	220,246	214,888
Retained earnings	82,021	63,591
Accumulated other comprehensive income (loss)	(542)	709
Treasury stock at cost, 13,203 shares and 12,889 shares	(220,264)	(200,678)
Total shareholders’ equity	82,814	79,863
Total liabilities and shareholders' equity	$ 259,155	$ 249,654

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 4,492	$ 4,643
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	13,203,000	12,889,000

Consolidated Statements Of Operations And Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Consolidated Statements Of Operations And Comprehensive Income (Loss) [Abstract]
Net sales	$ 262,841	$ 224,168	$ 198,456
Cost of sales	60,929	51,266	53,086
Gross profit	201,912	172,902	145,370
Selling, general, and administrative	159,783	144,988	129,979
Stock-based compensation	8,286	8,617	(573)
Restructuring costs		1,600	1,636
Depreciation	4,903	6,190	6,664
Amortization	5,266	5,006	4,606
Income from operations	23,674	8,101	3,058
Interest income	65	73	56
Interest expense	(1,675)	(2,099)	(2,318)
Income before income taxes	22,064	6,075	796
Benefit (provision) for income taxes	(3,634)	7,548	(10,231)
Net income (loss)	$ 18,430	$ 13,623	$ (9,435)
Net income (loss) per share:
Basic	$ 1.30	$ 0.97	$ (0.68)
Diluted	$ 1.27	$ 0.96	$ (0.68)
Weighted average number of common shares:
Basic	14,147	14,090	13,892
Diluted	14,555	14,143	13,892
COMPREHENSIVE INCOME (LOSS):
Net income (loss)	$ 18,430	$ 13,623	$ (9,435)
Foreign currency translation adjustments, net of income tax benefits of $176, $11, and $16	(1,251)	68	372
Comprehensive income (loss)	$ 17,179	$ 13,691	$ (9,063)

Consolidated Statements Of Operations And Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Consolidated Statements Of Operations And Comprehensive Income (Loss) [Abstract]
Foreign currency translation adjustments, net of income tax benefits	$ 176	$ 11	$ 16

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 18,430	$ 13,623	$ (9,435)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	10,169	11,196	11,270
Amortization of capitalized curriculum development costs	3,354	3,445	3,949
Deferred income taxes	121	(9,790)	9,094
Stock-based compensation expense	8,286	8,617	(573)
Change in the fair value of contingent consideration liabilities	68	193	(49)
Amortization of right-of-use operating lease assets	913	1,003	331
Changes in assets and liabilities, net of effect of acquired businesses:
Decrease (increase) in accounts receivable, net	(2,406)	(14,266)	17,142
Decrease (increase) in inventories	(1,048)	463	552
Decrease in receivable from related party			26
Increase in prepaid expenses and other assets	(2,692)	(880)	(767)
Increase (decrease) in accounts payable and accrued liabilities	4,358	14,372	(5,464)
Increase in deferred revenue	14,245	19,788	2,806
Increase (decrease) in income taxes payable/receivable	138	273	(794)
Decrease in other liabilities	(1,682)	(1,860)	(525)
Net cash provided by operating activities	52,254	46,177	27,563
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(3,177)	(1,602)	(4,183)
Capitalized curriculum development costs	(2,154)	(2,504)	(5,082)
Acquisition of businesses, net of cash acquired		(10,209)
Purchase of note receivable from bank (Note 17)			(2,600)
Net cash used for investing activities	(5,331)	(14,315)	(11,865)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit borrowings			14,870
Payments on line of credit borrowings			(14,870)
Proceeds from term notes payable financing			5,000
Principal payments on notes payable	(5,835)	(5,000)	(5,000)
Principal payments on financing obligation	(2,887)	(2,600)	(2,335)
Purchases of common stock for treasury	(23,850)	(2,971)	(13,971)
Payment of contingent consideration liabilities	(1,434)	(1,981)	(1,297)
Proceeds from sales of common stock held in treasury	1,336	1,073	1,046
Net cash used for financing activities	(32,670)	(11,479)	(16,557)
Effect of foreign currency exchange rates on cash and cash equivalents	(1,153)	(103)	297
Net increase (decrease) in cash and cash equivalents	13,100	20,280	(562)
Cash and cash equivalents at beginning of the year	47,417	27,137	27,699
Cash and cash equivalents at end of the year	60,517	47,417	27,137
Supplemental disclosure of cash flow information:
Cash paid for income taxes	3,210	1,766	2,057
Cash paid for interest	1,655	2,069	2,280
Non-cash investing and financing activities:
Purchases of property and equipment financed by accounts payable	$ 529	$ 399	35
License rights acquired through royalties payable financing			4,009
Use of notes receivable to modify revenue contract (Note 17)			$ 3,246

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
Beginning balance, shares at Aug. 31, 2019	27,056,000				13,087,000
Beginning balance at Aug. 31, 2019	$ 1,353	$ 215,964	$ 59,403	$ 269	$ (194,975)
Issuance of common stock from treasury, shares					291,000
Issuance of common stock from treasury		(3,138)			$ 4,184
Purchase of common shares for treasury, shares					(400,000)
Purchase of common shares for treasury					$ (13,971)
Unvested share award, shares					21,000
Unvested share award		(333)			$ 333
Stock-based compensation		(573)
Cumulative translation adjustments				372		$ 372
Net income (loss)			(9,435)			(9,435)
Ending balance, shares at Aug. 31, 2020	27,056,000				13,175,000
Ending balance at Aug. 31, 2020	$ 1,353	211,920	49,968	641	$ (204,429)
Issuance of common stock from treasury, shares					405,000
Issuance of common stock from treasury		(5,213)			$ 6,286
Purchase of common shares for treasury, shares					(147,000)
Purchase of common shares for treasury					$ (2,971)
Unvested share award, shares					28,000
Unvested share award		(436)			$ 436
Stock-based compensation		8,617
Cumulative translation adjustments				68		68
Net income (loss)			13,623			13,623
Ending balance, shares at Aug. 31, 2021	27,056,000				(12,889,000)
Ending balance at Aug. 31, 2021	$ 1,353	214,888	63,591	709	$ (200,678)	$ 79,863
Issuance of common stock from treasury, shares					258,000	272,060
Issuance of common stock from treasury		(2,719)			$ 4,055
Purchase of common shares for treasury, shares					(585,000)	(499,411)
Purchase of common shares for treasury					$ (23,850)
Unvested share award, shares					13,000
Unvested share award		(209)			$ 209
Stock-based compensation		8,286
Cumulative translation adjustments				(1,251)		$ (1,251)
Net income (loss)			18,430			18,430
Ending balance, shares at Aug. 31, 2022	27,056,000				(13,203,000)
Ending balance at Aug. 31, 2022	$ 1,353	$ 220,246	$ 82,021	$ (542)	$ (220,264)	$ 82,814

Nature Of Operations And Summary Of Significant Accounting Policies

12 Months Ended

Aug. 31, 2022

Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]

Nature Of Operations And Summary Of Significant Accounting Policies

1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Franklin Covey Co. (hereafter referred to as we, us, our, or the Company) is a global company specializing in organizational performance improvement. We help individuals and organizations achieve results that require a change in human behavior and our mission is to “enable greatness in people and organizations everywhere.” We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training and products based on the best-selling books, The 7 Habits of Highly Effective People, The Speed of Trust, The Leader In Me, The Four Disciplines of Execution, and Multipliers, and proprietary content in the areas of Leadership, Execution, Productivity, Sales Performance, and Educational improvement. Our offerings are described in further detail at www.franklincovey.com and elsewhere in this report. Through our organizational research and curriculum development efforts, we seek to consistently create, develop, and introduce new services and products that help individuals and organizations achieve their own great purposes.

Fiscal Year

Our fiscal year ends on August 31 of each year and our fiscal quarters end on the last day of November, February, and May. Unless otherwise noted, references to fiscal years apply to the 12 months ended August 31 of the specified year.

Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries, which consist of Franklin Development Corp., and our offices in Japan, China, the United Kingdom, Australia, Germany, Switzerland, and Austria. Intercompany balances and transactions are eliminated in consolidation.

Pervasiveness of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, shareholders’ equity, revenues, and expenses. Actual results could differ from those estimates.

Cash and Cash Equivalents

Some of our cash is deposited with financial institutions located throughout the United States of America and at banks in foreign countries where we operate subsidiary offices, and at times may exceed insured limits. We consider all highly liquid debt instruments with an original maturity date of three months or less to be cash equivalents. We did not hold a significant amount of investments that would be considered cash equivalent instruments at either August 31, 2022 or 2021. Of our $60.5 million in cash at August 31, 2022, $16.9 million was held outside the U.S. by our foreign subsidiaries. We routinely repatriate cash from our foreign subsidiaries and consider cash generated from foreign activities a key component of our overall liquidity position.

‎

Inventories

Inventories are stated at the lower of cost or net realizable value, cost being determined using the first-in, first-out method. Elements of cost in inventories generally include raw materials and direct labor. Cash flows from the sale of inventory are included in cash flows provided by operating activities in our consolidated statements of cash flows. Our inventories are comprised primarily of training materials, books, training-related accessories, and consisted of the following (in thousands):



AUGUST 31,		2022		2021
Finished goods	$	3,519	$	2,468
Raw materials		8		28
	$	3,527	$	2,496

Provision is made to reduce excess and obsolete inventories to their estimated net realizable value. In assessing the valuation of our inventories, we make judgments regarding future demand requirements and compare these estimates with current and committed inventory levels. Inventory requirements may change based on projected customer demand, training curriculum life-cycle changes, and other factors that could affect the valuation of our inventories.

Other Current Assets

Significant components of our other current assets were as follows (in thousands):



AUGUST 31,		2022		2021
Deferred commissions	$	12,598	$	10,991
Other current assets		1,969		1,872
	$	14,567	$	12,863

We defer commission expense on subscription-based sales and recognize the commission expense with the recognition of the corresponding revenue.

Property and Equipment

Property and equipment are recorded at cost. Depreciation expense, which includes depreciation on our corporate campus that is accounted for as a financing obligation (Note 7), is calculated using the straight-line method over the lesser of the expected useful life of the asset or the contracted lease period. We generally use the following depreciable lives for our major classifications of property and equipment:

Description	Useful Lives
Buildings	20 years
Machinery and equipment	5–7 years
Computer hardware and software	3–5 years
Furniture, fixtures, and leasehold improvements	5–7 years

‎

Our property and equipment were comprised of the following (in thousands):



AUGUST 31,		2022		2021
Land and improvements	$	1,312	$	1,312
Buildings		30,038		30,059
Machinery and equipment		543		915
Computer hardware and software		26,030		29,127
Furniture, fixtures, and leasehold
improvements		9,287		9,426
		67,210		70,839
Less accumulated depreciation		(57,412)		(59,314)
	$	9,798	$	11,525

We expense costs for repairs and maintenance as incurred. Gains and losses resulting from the sale of property and equipment are recorded in income from operations. Depreciation of capitalized subscription portal costs is included in depreciation expense in the accompanying consolidated statements of operations and comprehensive income (loss).

Impairment of Long-Lived Assets

Long-lived tangible assets and finite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We use an estimate of undiscounted future net cash flows of the assets over the remaining useful lives in determining whether the carrying value of the assets is recoverable. If the carrying values of the assets exceed the anticipated future cash flows of the assets, we recognize an impairment loss equal to the difference between the carrying values of the assets and their estimated fair values. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent from other groups of assets. The evaluation of long-lived assets requires us to use estimates of future cash flows. If forecasts and assumptions used to support the realizability of our long-lived tangible and finite-lived intangible assets change in the future, significant impairment charges could result that would adversely affect our results of operations and financial condition. There were no long-lived asset impairment charges during any of the periods presented in this report.

Indefinite-Lived Intangible Assets and Goodwill Impairment Testing

Intangible assets that are deemed to have an indefinite life and acquired goodwill are not amortized, but rather are tested for impairment on an annual basis or more often if events or circumstances indicate that a potential impairment exists. The Covey trade name intangible asset has been deemed to have an indefinite life. This intangible asset is tested for impairment using qualitative factors or the present value of estimated royalties on trade name related revenues, which consist primarily of training seminars and work sessions, international licensee sales, and related products. Based on the fiscal 2022 evaluation of the Covey trade name, we believe the fair value of the Covey trade name substantially exceeds its carrying value. No impairment charges were recorded against the Covey trade name during the periods presented in this report.

Goodwill is recorded when the purchase price for a business acquisition exceeds the estimated fair value of the net tangible and identified intangible assets acquired. We test goodwill for impairment each year on August 31 or upon the occurrence of events or changes in circumstances which indicate that goodwill may be impaired. Goodwill is assigned to our reporting units, which are our operating segments, where discrete financial information is available that is regularly reviewed by management to evaluate segment performance.

During the annual impairment testing process, we have the option to first perform a qualitative assessment (commonly referred to as Step Zero) over relative events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value or to perform a quantitative assessment where we estimate the fair value of each reporting unit using both an income and market approach. At August 31, 2022, we completed a Step

Zero assessment and concluded there were no indicators of impairment. Refer to Note 5, Intangible Assets and Goodwill for further information on our goodwill.

When we perform a quantitative analysis to assess the recoverability of our goodwill, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. If the fair value is less than the carrying value of the net assets and related goodwill, an impairment charge is recognized for the difference. The estimated fair value of each reporting unit is calculated using a combination of the income approach (discounted cash flows) and the market approach (using market multiples derived from a set of companies with comparable market characteristics). The value estimated using a discounted cash flow model is weighted against the estimated value derived from the guideline company market approach method. This market approach method estimates the price reasonably expected to be realized from the sale of the reporting unit based on comparable companies. In developing the discounted cash flow analysis, our assumptions about future revenues and expenses, capital expenditures, and changes in working capital are based on our internal plan and assume a terminal growth rate thereafter. The discounted cash flow analysis is derived from valuation techniques in which one or more significant inputs are not observable and constitute Level 3 fair value measures.

Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable, but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates.

Capitalized Curriculum Development Costs

During the normal course of business, we develop training courses and related materials that we sell to our clients. Capitalized curriculum development costs include certain expenditures to develop course materials such as video segments, course manuals, and other related materials. Our capitalized curriculum development spending in fiscal 2022, which totaled $2.2 million, was primarily for various Education practice offerings and content for the AAP. Curriculum costs are capitalized when there is a major revision to an existing course that requires a significant re-write of the course materials. Costs incurred to maintain existing offerings are expensed when incurred. In addition, development costs incurred in the research and development of new offerings and software products to be sold, leased, or otherwise marketed are expensed as incurred until economic and technological feasibility has been established.

Capitalized development costs are amortized over three- to five-year useful lives, which are based on numerous factors, including expected cycles of major changes to our content. Capitalized curriculum development costs are reported as a component of other long-term assets in our consolidated balance sheets and totaled $5.0 million and $6.2 million at August 31, 2022 and 2021. Amortization of capitalized curriculum development costs is reported as a component of cost of sales in the accompanying consolidated statements of operations and comprehensive income (loss).

Accrued Liabilities

Significant components of our accrued liabilities were as follows (in thousands):


AUGUST 31,		2022		2021
Accrued compensation	$	20,608	$	17,955
Other accrued liabilities		13,597		17,025
	$	34,205	$	34,980

Contingent Consideration Payments from Business Acquisitions

Business acquisitions may include contingent consideration payments based on various future financial measures related to the acquired entity. Contingent consideration is required to be recognized at fair value as of the acquisition date. We estimate the fair value of these liabilities based on financial projections of the acquired company and estimated

probabilities of achievement. Based on updated estimates and projections, the contingent consideration liabilities are adjusted at each reporting date to their estimated fair value. Changes in fair value subsequent to the acquisition date are reported in selling, general, and administrative expense in our consolidated statements of operations and comprehensive income (loss), and may have a material impact on our operating results. Variations in the fair value of contingent consideration liabilities may result from changes in discount periods or rates, changes in the timing and amount of earnings estimates, and changes in probability assumptions with respect to the likelihood of achieving various payment criteria.

Foreign Currency Translation and Transactions

The functional currencies of our foreign operations are the reported local currencies. Translation adjustments result from translating our foreign subsidiaries’ financial statements into United States dollars. The balance sheet accounts of our foreign subsidiaries are translated into United States dollars using the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated using average exchange rates for each month during the fiscal year. The resulting translation differences are recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Foreign currency transaction losses totaled $0.5 million, $0.1 million, and $0.1 million for the fiscal years ended August 31, 2022, 2021, and 2020, respectively, and are included as a component of selling, general, and administrative expenses in our consolidated statements of operations and comprehensive income (loss).

Revenue Recognition

We account for revenue in accordance with Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). For further information on revenue recognition, refer to Note 2, Revenue Recognition.

Revenue is recognized as the net amount to be received after deducting estimated amounts for discounts and product returns.

Stock-Based Compensation

We record the compensation expense for all stock-based payments, including grants of stock options and the compensatory elements of our employee stock purchase plan, in our consolidated statements of operations and comprehensive income (loss) based upon their fair values over the requisite service period. For more information on our stock-based compensation plans, refer to Note 12.

Shipping and Handling Fees and Costs

All shipping and handling fees billed to customers are recorded as a component of net sales. All costs incurred related to the shipping and handling of products are recorded in cost of sales.

Advertising Costs

Costs for advertising are expensed as incurred. Advertising costs included in selling, general, and administrative expenses totaled $4.8 million, $4.0 million, and $3.3 million for the fiscal years ended August 31, 2022, 2021, and 2020.

Restructuring Costs

During the fourth quarter of fiscal 2020, we restructured certain information technology, central operations, and marketing functions. We incurred $1.6 million of severance costs related to these restructuring activities. At August 31, 2022, we had less than $0.1 million of remaining accrued restructuring costs, which are expected to be paid during fiscal 2023.

‎

Income Taxes

Our income tax provision has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The income tax provision represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred income taxes result from differences between the financial and tax bases of our assets and liabilities and are adjusted for tax rates and tax laws when changes are enacted. A valuation allowance is provided against deferred income tax assets when it is more likely than not that all or some portion of the deferred income tax assets will not be realized. Interest and penalties related to uncertain tax positions are recognized as components of income tax benefit or expense in our consolidated statements of operations and comprehensive income (loss).

We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement.

We provide for income taxes, net of applicable foreign tax credits, on temporary differences in our investment in foreign subsidiaries, which consist primarily of unrepatriated earnings.

Comprehensive Income (Loss)

Comprehensive income (loss) includes changes to equity accounts that were not the result of transactions with shareholders. Comprehensive income (loss) is comprised of net income or loss and other comprehensive income and loss items. Our other comprehensive income and losses generally consist of changes in the cumulative foreign currency translation adjustment, net of tax.

Accounting Pronouncements Issued and Adopted

Income Taxes

On September 1, 2021, we adopted Accounting Standards Update (ASU) No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements.

Credit Losses on Financial Instruments

On September 1, 2020, we adopted ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (Topic 326). This new standard is intended to improve financial reporting by requiring more timely recognition of credit losses on trade accounts receivable and requires the measurement of all expected credit losses based on historical experience, current economic conditions, and reasonable and supportable forecasts. The adoption of this ASU did not have a material impact on our consolidated financial statements and disclosures. For further information on our receivables, refer to Note 4, Accounts Receivable.

Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement

On September 1, 2020, we adopted 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 Company adopted ASU 2018-15 on a

prospective basis and the adoption of this new standard did not have a material impact on our consolidated financial statements or disclosures.

Revenue Recognition

12 Months Ended

Aug. 31, 2022

Revenue Recognition [Abstract]

Revenue Recognition

2. REVENUE RECOGNTION

We earn revenue from contracts with customers primarily through the delivery of our All Access Pass and the Leader in Me membership subscription offerings, through the delivery of training days and training course materials (whether digitally or in person), and through the licensing of rights to sell our content into geographic locations where the Company does not maintain a direct office. We also earn revenues from leasing arrangements that are not accounted for under Topic 606. Returns and refunds are generally immaterial, and we do not have any significant warranty obligations.

We recognize revenue upon the transfer of control of promised products and services to customers in an amount equal to the consideration we expect to receive in exchange for those products or services. Although rare, if the consideration promised in a contract includes variable amounts, we evaluate the estimate of variable consideration to determine whether the estimate needs to be constrained. We include the variable consideration in the transaction price only to the extent that it is probable a significant reversal of the amount of cumulative revenue recognized will not occur.

The Company determines the amount of revenue to be recognized through application of the following steps:

Identification of the contract with a customer

Identification of the performance obligations in the contract

Determination of the transaction price

Allocation of the transaction price to the performance obligations in the contract

Recognition of revenue when the Company satisfies the performance obligations

Taxes assessed by a government authority that are collected from a customer are excluded from net revenue.

Subscription Revenues

Subscription revenues primarily relate to the Company’s AAP and the Leader in Me membership offerings. We have determined that it is most appropriate to account for the AAP as a single performance obligation and recognize the associated transaction price ratably over the term of the underlying contract beginning on the commencement date of each contract, which is the date the Company’s platforms and resources are made available to the customer. This determination was reached after considering that our web-based functionality and content, in combination with our intellectual property, each represent inputs that transform into a combined output that represents the intended outcome of the AAP, which is to provide a continuously accessible, customized, and dynamic learning and development solution only accessible through the AAP platform.

We typically invoice our customers annually upon execution of the contract or subsequent renewals. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control has occurred.

Our Leader in Me membership offering is bifurcated into a portal membership obligation and a coaching delivery obligation. We have determined that it is appropriate to recognize revenue related to the portal membership over the term of the underlying contract and to recognize revenue from coaching as those services are performed. The combined contract amount is recorded in deferred subscription revenue until the performance obligations are satisfied. Any additional coaching or training days which are contracted independent of a Leader in Me membership are recorded as revenue in accordance with our general policy for services and products as described below.

‎

Services and Products

We deliver Company-led training days from our offerings, such as The 7 Habits of Highly Effective People, at a customer’s location or live-online based upon a daily consultant rate and a set price for training materials. These revenues are recognized as the training days occur and the services are performed. Customers also have the option to purchase training materials and present our offerings through internal facilitators and not through the use of a Franklin Covey consultant. Revenue is recognized from these product sales when the materials are shipped. Shipping revenues associated with product sales are recorded in revenue with the corresponding shipping cost being recorded as a component of cost of sales.

Royalties

Our international strategy includes the use of licensees in countries where we do not have a wholly-owned direct office. Licensee companies are unrelated entities that have been granted a license to translate our content and offerings, adapt the content to the local culture, and sell our content in a specific country or region. We recognize revenue on the upfront fees from the sale of a territory to a licensee over the term of the initial contract. Licensees are then required to pay us royalties based upon a percentage of their sales to clients. We recognize royalty income each reporting period based upon the sales information reported to us from our licensees. When sales information is not received from a particular licensee at the end of a reporting period, the Company estimates the amount of royalties to be received for the period that is being reported based upon prior forecasts and historical performance. These estimated royalties are recorded as revenue and are adjusted in the subsequent period. Refer to the disaggregated revenue information presented in Note 16, Segment Information, for our royalty revenues in the fiscal years presented in this report.

Contracts with Multiple Performance Obligations

We periodically enter into contracts that include multiple performance obligations. A performance obligation is a promise in a contract to transfer products or services that are distinct, or that are distinct within the context of the contract. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. Determining whether products and services meet the distinct criteria that should be accounted for separately or combined as one unit of accounting requires significant judgment.

When determining whether goods and services meet the distinct criteria, we consider various factors for each agreement including the availability of the services and the nature of the offerings and services. We allocate the transaction price to each performance obligation on a relative standalone selling price (SSP) basis. Judgment is required to determine the SSP for each distinct performance obligation. The SSP is the price which the Company would sell a promised product or service separately to a customer. In determining the SSP, we consider the size and volume of transactions, price lists, historical sales, and contract prices. We may modify our pricing from time-to-time in the future, which could result in changes to the SSP.

Contract Balances

As described above, our subscription revenue is generally recognized ratably over the term of the underlying contract beginning on the commencement date of each agreement. The timing of when these contracts are invoiced, cash is collected, and revenue is recognized impacts our accounts receivable and deferred subscription revenue accounts. We generally bill our clients in advance for subscription offerings or within the month that the training and products are delivered. As such, consideration due to the Company for work performed is included in accounts receivable and we do not have a significant amount of contract assets. Our receivables are generally collected within 30 to 150 days but typically no longer than 12 months. Deferred subscription revenue primarily consists of billings or payments received in advance of revenue being recognized from our subscription offerings. Furthermore, our clients, to expend funds in a particular budget cycle, may prepay for services or products which are a component of our other deferred revenue. Our deferred subscription revenue and our other deferred revenue totaled $102.4 million at August 31, 2022 and $88.6 million at August 31, 2021, of which $2.7 million was classified as components of other long-term liabilities at each of August 31, 2022 and August 31, 2021, respectively. The amount of deferred revenue that was generated from

subscription offerings totaled $88.1 million at August 31, 2022 and $77.0 million at August 31, 2021. During the fiscal years ended August 31, 2022 and 2021, we recognized $123.1 million and $99.5 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. Our remaining performance obligation 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 August 31, 2022 we had $153.4 million of remaining performance obligations, including $88.1 million 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.

Costs Capitalized to Obtain Contracts

We capitalize the incremental costs of obtaining non-cancellable subscription revenue, primarily from the All Access Pass and the Leader in Me membership offerings. These incremental costs consist of sales commissions paid to our sales force and include the associated payroll taxes and fringe benefits. As the same commission rates are paid annually when the customer renews their contract, the capitalized commission costs are generally amortized ratably on an annual basis consistent with the recognition of the corresponding subscription revenue. At August 31, 2022, we have $13.8 million of capitalized direct commissions, of which $12.6 million is included in other current assets and $1.2 million is in other long-term assets based on the expected recognition of the commission expense. During the fiscal year ended August 31, 2022, we capitalized $18.1 million of commission costs to obtain revenue contracts and amortized $16.4 million of deferred commissions to selling, general, and administrative expense. At August 31, 2021, we had $12.1 million of capitalized direct sales commissions with $11.0 million included in other current assets and $1.1 million included in other long-term liabilities.

Refer to Note 16, Segment Information, to these consolidated financial statements for our disaggregated revenue information.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Acquisition of Strive Talent, Inc.

12 Months Ended

Aug. 31, 2022

Acquisition of Strive Talent, Inc. [Abstract]

Acquisition of Strive Talent, Inc.

3. ACQUISITION OF STRIVE TALENT, INC.

On April 26, 2021 (the Closing Date), through our wholly-owned subsidiary Franklin Covey Client Sales, Inc., we purchased all of the issued and outstanding stock of Strive Talent, Inc. (Strive), a San Francisco-based technology company which has developed and markets an innovative learning deployment platform. The Strive platform is expected to enable the seamless integration and deployment of our content, services, technology, and metrics to deliver behavioral impact at scale, primarily through the Company’s All Access Pass subscription. The aggregate consideration for the purchase of Strive may total up to $20.0 million and is comprised of the following:

Approximately $10.6 million paid in cash on the Closing Date of the transaction, including $1.0 million placed in escrow for 18 months from the Closing Date to serve as the first source of funds to satisfy certain indemnification obligations of Strive.

Approximately $4.2 million payable in equal cash payments on the first five anniversaries of the Closing Date (Note 6). The note payable is recorded at present value and accrues interest at 3.6 percent until the amount is paid in full.

A maximum of approximately $4.2 million may be earned by the former principal owner of Strive over a five-year period ending in May 2026. The total value of this consideration is contingent upon sales and growth of the AAP subscription and subscription services revenues during the five-year period measurement ending in May 2026. The contingent earn out payments are conditional upon the continued employment of former principal

owner of Strive over the first four years of the measurement period. These payments may be made in either cash or shares of our common stock at our sole discretion.

Approximately $1.0 million will be paid 18 months following the Closing Date to stockholders and option holders of Strive who are still employed by the Company or its affiliates as of such 18-month date, subject to certain exceptions. The bonus payments are forfeit by the individuals if they voluntarily terminate their employment with the Company prior to the 18-month anniversary of the purchase. These payments may be made in either cash or shares of our common stock at our sole discretion.

As described above, included in the purchase agreement for the acquisition of Strive are additional contingent payments of up to $5.2 million subject to continued employment of the primary seller and certain employees. These payments are expensed as earned and may be settled by us, at our sole discretion, in shares of our common stock or cash. Based on the relevant accounting literature for business acquisitions, the initial purchase price of Strive is comprised of the following:



Cash paid at closing	$	10,554
Notes payable		3,766
Total purchase price	$	14,320

We have included the operating results of Strive in our financial statements since the Closing Date. However, the acquisition of Strive had an immaterial impact on our results of operations in fiscal 2021 and pro forma financial information for this acquisition was not deemed necessary. For the twelve months ended December 31, 2020, Strive had revenues of $1.3 million (unaudited) and an operating loss of $(1.1) million (unaudited). Strive does not meet the definition of a significant subsidiary as specified by Regulation S-X of the Securities and Exchange Commission. The major classes of assets and liabilities to which we have allocated the purchase price were as follows (in thousands):



Cash acquired	$	345
Accounts receivable		154
Prepaid and other current assets		56
Property and equipment		13
Intangible assets		7,976
Goodwill		7,000
Assets acquired		15,544

Deferred revenue		(52)
Accrued liabilities		(135)
Deferred income tax liability		(1,037)
Notes payable, current portion		(835)
Notes payable, less current portion		(2,931)
Liabilities assumed		(4,990)
	$	10,554

The allocation of the purchase price to the intangible assets acquired was as follows (in thousands):



			Weighted Average
Description		Amount	Life
Non-compete agreements	$	171	2 years
Content		389	5 years
Customer relationships		764	3 years
Tradename		889	5 years
Internally developed software		5,763	8 years
	$	7,976	7 years

The goodwill generated by the Strive acquisition is primarily attributable to the technology, content, and software development capabilities that complement our existing AAP subscription and was allocated to our operating segments based on relative fair value. None of the goodwill or intangible assets generated by the acquisition of Strive are expected to be deductible for income tax purposes. Acquisition costs totaled $0.3 million and were recorded in selling, general, and administrative expense in the accompanying consolidated statement of operations and comprehensive income (loss) for the fiscal year ended August 31, 2021.

Accounts Receivable

12 Months Ended

Aug. 31, 2022

Accounts Receivable [Abstract]

Accounts Receivable

4. ACCOUNTS RECEIVABLE

Our trade accounts receivable are recorded at net realizable value, which includes an allowance for estimated credit losses as described in Note 1, Nature of Operations and Summary of Significant Accounting Policies. Under the guidance found in ASC Topic 326, the “expected credit loss” model replaced the previous “incurred loss” model and requires consideration of a broader range of information to estimate expected credit losses over the lives of our trade accounts receivable. Our prior methodology for estimating credit losses on our trade accounts receivable did not differ significantly from the new requirements of Topic 326, which was adopted in fiscal 2021.

We maintain an allowance for credit losses related to our trade accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate the allowance based upon historical bad debts, current customer receivable balances, age of customer receivable balances, and the customers’ financial condition in relation to a representative pool of assets consisting of customers with similar risk characteristics. The allowance is adjusted as appropriate to reflect differences in current conditions as well as changes in forecasted macroeconomic conditions. Receivables that do not share risk characteristics are evaluated on an individual basis, including those associated with customers that have a higher probability of default. Our estimate of credit losses includes expected current and future economic and market conditions related to the ongoing COVID-19 pandemic. We do not have a significant amount of notes or other receivables.

The following schedule provides a reconciliation of the activity in our allowance for estimated credit losses during the periods indicated (in thousands):



YEAR ENDED
AUGUST 31,		2022		2021		2020
Beginning balance	$	4,643	$	4,159	$	4,242
Charged to costs and expenses		306		1,553		2,023
Deductions		(457)		(1,069)		(2,106)
Ending balance	$	4,492	$	4,643	$	4,159

Deductions on the foregoing table represent the write-off of amounts deemed uncollectible during the fiscal year presented. Recoveries of amounts previously written off were insignificant for the periods presented. No customer accounted for more than 10 percent of our sales or accounts receivable in any year presented.

Intangible Assets And Goodwill

12 Months Ended

Aug. 31, 2022

Intangible Assets And Goodwill [Abstract]

Intangible Assets And Goodwill

‎

5. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

Our intangible assets were comprised of the following (in thousands):



		Gross Carrying		Accumulated		Net Carrying
AUGUST 31, 2022		Amount		Amortization		Amount
Finite-lived intangible assets:
Acquired content	$	49,964	$	(42,501)	$	7,463
License rights		32,077		(24,401)		7,676
Customer lists		16,140		(15,028)		1,112
Acquired technology		7,282		(2,479)		4,803
Trade names		1,883		(1,231)		652
Non-compete agreements and other		930		(803)		127
		108,276		(86,443)		21,833
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	131,276	$	(86,443)	$	44,833

AUGUST 31, 2021
Finite-lived intangible assets:
Acquired content	$	50,003	$	(40,352)	$	9,651
License rights		32,133		(23,036)		9,097
Customer lists		16,168		(14,519)		1,649
Acquired technology		7,282		(1,759)		5,523
Trade names		1,883		(933)		950
Non-compete agreements and other		930		(703)		227
		108,399		(81,302)		27,097
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	131,399	$	(81,302)	$	50,097

In April 2021, we acquired Strive Talent, Inc. (Note 3), which generated $8.0 million of intangible assets that are included in the tables above.

Our intangible assets are amortized over the estimated useful life of the asset. The range of remaining estimated useful lives and weighted-average amortization period over which we are amortizing the major categories of finite-lived intangible assets at August 31, 2022 were as follows:


Category of Intangible Asset	Range of Remaining Estimated Useful Lives	Weighted Average Original Amortization Period
Acquired content	4 to 5 years	24 years
License rights	5 to 7 years	26 years
Customer lists	2 to 4 years	11 years
Acquired technology	7 years	6 years
Trade names	4 years	5 years
Non-compete agreements and other	1 to 5 years	3 years

Our aggregate amortization expense from finite-lived intangible assets totaled $5.3 million, $5.0 million, and $4.6 million for the fiscal years ended August 31, 2022, 2021, and 2020. Amortization expense from our intangible assets over the next five years is expected to be as follows (in thousands):



YEAR ENDING
AUGUST 31,
2023	$	4,342
2024		4,200
2025		4,029
2026		3,938
2027		3,157

Goodwill

The acquisition of Strive in fiscal 2021 generated $7.0 million of goodwill which was allocated to the Direct Office and International Licensee segments based on their relative fair value. We performed our annual testing of goodwill in accordance with our accounting policies described in Note 1, Nature of Operations and Summary of Significant Accounting Policies. We completed a Step Zero assessment as of August 31, 2022 and concluded there were no indicators of impairment and we do not have any accumulated impairment charges against the carrying value of our goodwill. At each of August 31, 2022 and 2021, goodwill was allocated to our segments as shown below (in thousands):



Direct offices	$	22,962
International licensees		5,928
Education practice		2,330
	$	31,220

Notes Payable And Secured Credit Agreement

12 Months Ended

Aug. 31, 2022

Notes Payable And Secured Credit Agreement [Abstract]

Notes Payable And Secured Credit Agreement

6. NOTES PAYABLE AND SECURED CREDIT AGREEMENT

Notes Payable

At August 31, 2022 and 2021, our notes payable consisted of term notes payable to a bank from our amended and secured credit agreement and a note payable to the former owners of Strive Talent, Inc. (Note 3), which was acquired during fiscal 2021. The note payable to the former owners of Strive is recorded at net present value and accrues interest at 3.6 percent until the obligation is paid in full. The balances and classification of our notes payable were as follows at the dates indicated (in thousands):



	Current Portion of Notes Payable				Notes Payable, Less Current Portion
	August 31,		August 31,			August 31,		August 31,
Description	2022		2021			2022		2021
Bank term notes payable	$	5,000	$	5,000	$	5,000	$	10,000
Strive acquisition note payable		835		835		2,268		2,975
	$	5,835	$	5,835	$	7,268	$	12,975

Principal payments of $1.25 million on our term notes payable are due and payable on the first day of each January, April, July, and October until the term loan liability is fully repaid in 2024. Interest on the term loans accrues at LIBOR plus 1.85 percent and is payable on the first day of each month. Under the terms of the Strive acquisition, we pay the former principal owner of Strive $0.8 million each April for the first five years following the acquisition. Principal payments on these notes payable are as follows over the next five years (in thousands):



YEAR ENDING		Term Notes		Strive Note
AUGUST 31,		Payable		Payable		Total
2023	$	5,000	$	835	$	5,835
2024		5,000		835		5,835
2025		-		835		835
2026		-		835		835
2027		-		-		-
	$	10,000	$	3,340	$	13,340

Secured Credit Agreement

On August 7, 2019, we entered into a new credit agreement (the 2019 Credit Agreement) with our existing lender, which replaced the amended and restated credit agreement dated March 2011 (the Original Credit Agreement). The 2019 Credit Agreement provides up to $25.0 million in term loans and a $15.0 million revolving line of credit. Upon entering into the 2019 Credit Agreement, we borrowed $20.0 million of the available term loan and used the proceeds to repay all indebtedness under the Original Credit Agreement. During November 2019, we borrowed the remaining $5.0 million of available term loan capacity on the 2019 Credit Agreement.

The 2019 Credit Agreement is secured by substantially all of the assets of the Company and certain of our subsidiaries, and contains customary representations, warranties, and covenants.

Second Modification Agreement

To address potential covenant compliance issues associated with the uncertainties surrounding the economic recovery from the COVID-19 pandemic, on July 8, 2020, we entered into the First Modification Agreement to the 2019 Credit Agreement. The primary purpose of the First Modification Agreement was to provide temporary alternative borrowing covenants for the fiscal quarters ending August 31, 2020 through May 31, 2021. In connection with the acquisition of Strive, we entered into a Consent and Second Modification Agreement to the 2019 Credit Agreement. The primary purposes of the Consent and Second Modification Agreement were to:

Consent to the purchase of Strive Talent, Inc.

Reinstate the original debt covenants of the 2019 Agreement which were temporarily replaced by alternate debt covenants in the First Modification Agreement to the 2019 Agreement.

Reduce the interest rate for borrowings from LIBOR plus 3.0 percent to LIBOR plus 1.85 percent, which was the original rate on the 2019 Credit Agreement. The unused credit commitment fee also returns to the previously established 0.2 percent.

The Consent and Second Modification Agreement did not change any repayment or credit availability terms on the 2019 Credit Agreement. Our reinstated debt covenants consist of the following: (i) a Funded Indebtedness to Adjusted EBITDAR Ratio of less than 3.00 to 1.00; (ii) a Fixed Charge Coverage ratio not less than 1.15 to 1.00; (iii) an annual limit on capital expenditures (excluding capitalized curriculum development costs) of $8.0 million; and (iv) consolidated accounts receivable of not less than 150% of the aggregate amount of the outstanding borrowings on the revolving line of credit, the undrawn amount of outstanding letters of credit, and the amount of unreimbursed letter of credit disbursements.

In the event of noncompliance with these financial covenants and other defined events of default, the lender is entitled to certain remedies, including acceleration of the repayment of any amounts outstanding on the 2019 Credit Agreement. At August 31, 2022, we believe that we were in compliance with the terms and covenants applicable to the 2019 Credit Agreement and subsequent modifications.

Interest on all borrowings under the 2019 Credit Agreement is due and payable on the first day of each month. The effective interest rate on our term loan obligations was 4.2 percent at August 31, 2022 and 2.4 percent at August 31, 2021.

‎

Revolving Line of Credit

The key terms and conditions of our revolving line of credit associated with the 2019 Credit Agreement are as follows:

Available Credit – $15.0 million less outstanding standby letters of credit, which totaled $10,000 at August 31, 2022.

Maturity Date – August 7, 2024.

Interest Rate – The effective interest rate is LIBOR plus 1.85 percent per annum and the unused commitment fee on the line of credit is 0.2 percent per annum.

We did not have any borrowings on the revolving line of credit at either of August 31, 2022 or 2021.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Financing Obligation

12 Months Ended

Aug. 31, 2022

Financing Obligation [Abstract]

Financing Obligation

7. FINANCING OBLIGATION

We previously sold our corporate headquarters campus located in Salt Lake City, Utah, and entered into a 20-year master lease agreement with the purchaser, an unrelated private investment group. The 20-year master lease agreement contains six additional five-year renewal options that allow us to maintain our operations at the current location for up to 50 years. Although the corporate headquarters facility was sold and we have no legal ownership of the property, the applicable accounting guidance prohibited us from recording the transaction as a sale since we subleased a significant portion of the property that was sold. In transition to the lease accounting guidance in ASC 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 financing obligation on our consolidated balance sheet in future periods.

The financing obligation on our corporate campus was comprised of the following (in thousands):



AUGUST 31,		2022		2021
Financing obligation payable in
monthly installments of $328 at
August 31, 2022, including
principal and interest, with two
percent annual increases
(imputed interest at 7.7%),
through June 2025	$	11,161	$	14,048
Less current portion		(3,199)		(2,887)
Total financing obligation,
less current portion	$	7,962	$	11,161

Future principal maturities of our financing obligation were as follows at August 31, 2021 (in thousands):



YEAR ENDING
AUGUST 31,
2023	$	3,199
2024		3,538
2025		4,424
Thereafter		-
	$	11,161

‎

Our remaining future minimum payments under the financing obligation in the initial 20-year lease term are as follows (in thousands):



YEAR ENDING
AUGUST 31,
2023	$	3,952
2024		4,031
2025		3,301
Thereafter		-
Total future minimum financing
obligation payments		11,284
Less interest		(1,435)
Present value of future minimum
financing obligation payments	$	9,849

The $1.3 million difference between the carrying value of the financing obligation and the present value of the future minimum financing obligation payments represents the carrying value of the land sold in the financing transaction, which is not depreciated. At the conclusion of the master lease agreement, the remaining financing obligation and carrying value of the land will be offset and written off our consolidated financial statements.

Leases

12 Months Ended

Aug. 31, 2022

Leases [Abstract]

Leases

8. LEASES

Lessee Obligations

In the normal course of business, we lease 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, and certain office equipment. 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 August 31, 2022, we had operating leases with remaining terms ranging from less than one year to approximately three years. The amounts of assets and liabilities (in thousands) and other information related to our operating leases follows:



	Balance Sheet
	Caption	Amount
Assets:
Operating lease right of use assets	Other long-term assets	$	1,114

Liabilities:
Current:
Operating lease liabilities	Accrued liabilities		598
Long-Term:
Operating lease liabilities	Other long-term liabilities		516
		$	1,114

Weighted Average Remaining Lease Term:
Operating leases (years)			2.0

Weighted Average Discount Rate:
Operating leases			4.1	%

In fiscal 2022, we obtained $0.3 million of right-of-use operating lease assets in exchange for operating lease liabilities. Future minimum lease payments under our operating leases at August 31, 2022, are as follows (in thousands):



YEAR ENDING
AUGUST 31,
2023	$	633
2024		422
2025		97
2026		13
2027		-
Thereafter		-
Total operating lease payments		1,165
Less imputed interest		(51)
Present value of operating lease liabilities	$	1,114

We recognize lease expense on a straight-line basis over the life of the lease agreement. Total rent expense recorded in selling, general, and administrative expense from our lease agreements totaled $1.5 million, $1.6 million, and $1.5 million for the fiscal years ended August 31, 2022, 2021, and 2020.

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 $3.7 million at August 31, 2022. The following future minimum lease payments due to us from our sublease agreements at August 31, 2022, are as follows (in thousands):



YEAR ENDING
AUGUST 31,
2023	$	2,643
2024		2,124
2025		1,751
2026		-
Thereafter		-
	$	6,518

Sublease revenue totaled $3.9 million, $4.0 million, and $3.9 million during the fiscal years ended August 31, 2022, 2021, and 2020.

Commitments And Contingencies

12 Months Ended

Aug. 31, 2022

Commitments And Contingencies [Abstract]

Commitments And Contingencies

9. COMMITMENTS AND CONTINGENCIES

Warehouse Outsourcing Contract

We have a warehousing services agreement with an independent warehouse and distribution company to provide product kitting, warehousing, and order fulfillment services at a facility in Des Moines, Iowa. Under the terms of this contract, we pay a fixed charge of approximately $90,000 per year for account management services and variable charges for other warehousing services based on specified activities, including shipping charges. This warehousing contract expired on September 30, 2022. Subsequent to August 31, 2022, we signed a one-year extension to this warehousing contract.

During fiscal years ended August 31, 2022, 2021, and 2020, we expensed $2.5 million, $2.1 million, and $2.1 million for services provided under the terms of our warehouse and distribution outsourcing contract. The total amount expensed each year includes freight charges, which are billed to us based upon activity. Freight charges included in the warehouse and distribution outsourcing costs totaled $1.7 million, $1.4 million, and $1.3 million during the fiscal years ended August

31, 2022, 2021, and 2020, respectively. Because of the variable component of the agreement, our payments for warehouse and distribution services may fluctuate in the future due to changes in sales and levels of specified activities.

Purchase Commitments

During the normal course of business, we issue purchase orders to various vendors for products and services. At August 31, 2022, we had open purchase commitments totaling $2.6 million for products and services to be delivered primarily in fiscal 2023.

Letters of Credit

At August 31, 2022 and 2021, we had standby letters of credit totaling $10,000. These letters of credit were required to secure commitments for a certain insurance policy. No amounts were drawn on the letters of credit at either August 31, 2022 or August 31, 2021.

Legal Matters and Loss Contingencies

We are the subject of certain legal actions, which we consider routine to our business activities. At August 31, 2022, we believe that, after consultation with legal counsel, any potential liability to us under these other actions will not materially affect our financial position, liquidity, or results of operations.

Shareholders' Equity

12 Months Ended

Aug. 31, 2022

Shareholders' Equity [Abstract]

Shareholders' Equity

10. SHAREHOLDERS’ EQUITY

Preferred Stock

We have 14.0 million shares of preferred stock authorized for issuance. At August 31, 2022 and 2021, no shares of preferred stock were issued or outstanding.

Treasury Stock

On November 15, 2019, our Board of Directors approved a new plan to repurchase up to $40.0 million of our outstanding common stock. The previously existing common stock repurchase plan was canceled and the new common share repurchase plan does not have an expiration date. During fiscal 2022, we purchased 499,411 shares of our common stock for $20.3 million in open market purchases. 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 our common shares, and applicable legal requirements. We have 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.

During fiscal 2022, we withheld 86,125 shares of common stock, with a cost basis of $3.5 million, for statutory taxes on stock-based compensation awards (Note 12). Shares withheld for income taxes were valued at the market price on the date the stock-based plan shares were distributed to participants. The cost of common stock purchased for treasury on our consolidated statement of cash flows for fiscal 2021 was entirely comprised of 147,092 shares withheld for income taxes on various stock-based compensation awards, which had a total cost of $3.0 million. Our cash paid for shares of common stock in fiscal 2020 was comprised of 284,608 shares purchased from Knowledge Capital Investment Group (Note 17), 109,896 shares withheld for statutory income taxes on various stock-based compensation plans which were valued at $3.7 million, and 5,000 shares purchased under the terms of our fiscal 2020 Board-approved purchase plan.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Fair Value Of Financial Instruments

12 Months Ended

Aug. 31, 2022

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting standards related to fair value measurements include a hierarchy for information and valuations used in measuring fair value that is broken down into the following three levels based on reliability:

Level 1 valuations are based on quoted prices in active markets for identical instruments that the Company can access at the measurement date.

Level 2 valuations are based on inputs other than quoted prices included in Level 1 that are observable for the instrument, either directly or indirectly, for substantially the full term of the asset or liability including the following:

a.quoted prices for similar, but not identical, instruments in active markets;

b.quoted prices for identical or similar instruments in markets that are not active;

c.inputs other than quoted prices that are observable for the instrument; or

d.inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement.

The book values of our financial instruments at August 31, 2022 and 2021 approximated their fair values. The assessment of the fair values of our financial instruments is based on a variety of factors and assumptions. Accordingly, the fair values may not represent the actual values of the financial instruments that could have been realized at August 31, 2022 or 2021, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement. The following methods and assumptions were used to determine the fair values of our financial instruments, none of which were held for trading or speculative purposes.

Cash, Cash Equivalents, and Accounts Receivable – The carrying amounts of cash, cash equivalents, and accounts receivable approximate their fair values due to the liquidity and short-term maturity of these instruments.

Other Assets – Our other assets, including notes receivable, were recorded at the net realizable value of estimated future cash flows from these instruments.

Debt Obligations – At August 31, 2022, our debt obligations consisted primarily of variable-rate term notes payable and a note payable to the former owners of Strive. Our term notes payable and revolving line of credit are negotiated components of our 2019 Credit Agreement, which was completed in August 2019 and modified in April 2021. Since the interest rate for any obligation on our 2019 Credit Agreement is variable, the applicable interest rates on the term loan and revolving line of credit are reflective of current market conditions, and the carrying value of term loan and revolving line of credit (when applicable) obligations therefore approximate their fair value.

Contingent Consideration Liabilities from Business Acquisitions

We have a contingent consideration liability arising from a previous business acquisition. We measure the fair value of our contingent consideration liability at each reporting date based on the valuation model described below. Changes to the fair value of the contingent consideration liabilities are recorded in selling, general, and administrative expenses in the accompanying consolidated statements of operations and comprehensive income (loss) in the period of adjustment. The fair value of the contingent consideration liability from the acquisition of Jhana Education (Jhana) changed as follows during the fiscal year ended August 31, 2022 (in thousands):



			Change in
AUGUST 31,	2021		Fair Value		Payments		2022
Jhana contingent liability	$	2,095	$	68	$	(1,434)	$	729

At each quarterly reporting date, we estimate the fair value of our contingent consideration liability for the acquisition of Jhana through the use of a Monte Carlo simulation. The Jhana purchase price included potential contingent consideration of $7.2 million through the measurement period, which ends in July 2026. The fair value of the Jhana contingent consideration is a Level 3 measurement because we estimate projected consolidated Company and AAP sales over the measurement period. Changes in expected qualifying revenues over the measurement period influence the timing and amount of these contingent payments to the former owners of Jhana. Based on the timing of expected payments, all of the Jhana contingent consideration liability is recorded as a component of accrued liabilities at August 31, 2022. Adjustments to the fair value of our contingent consideration liability are included in selling, general, and administrative expense in the accompanying consolidated statements of operations and comprehensive income (loss).

- 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

Stock-Based Compensation Plans

12 Months Ended

Aug. 31, 2022

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

12. STOCK-BASED COMPENSATION PLANS

Overview

We utilize various stock-based compensation plans as integral components of our overall compensation and associate retention strategy. Our shareholders have approved various stock incentive plans that permit us to grant performance awards, unvested stock awards, stock options, fully-vested stock awards, and employee stock purchase plan (ESPP) shares. The Organization and Compensation Committee of the Board of Directors (the Compensation Committee) has responsibility for the approval and oversight of our stock-based compensation plans.

On January 14, 2022, our shareholders approved the Franklin Covey Co. 2022 Omnibus Incentive Plan (the 2022 Plan), which authorized an additional 1,000,000 shares of common stock for issuance as stock-based payments. A more detailed description of the 2022 Plan is set forth in our Definitive Proxy Statement filed with the SEC on December 15, 2021. At August 31, 2022, the 2022 Plan had approximately 838,000 shares available for future grants.

Our employee stock purchase plan (ESPP) is administered under the terms of the Franklin Covey Co. 2017 Employee Stock Purchase Plan, which was approved by our shareholders at the annual meeting of shareholders held on January 26, 2018. For additional information regarding the Franklin Covey Co. 2017 Employee Stock Purchase Plan, please refer to our definitive Proxy Statement as filed with the SEC on December 22, 2017. At August 31, 2022, we had approximately 773,000 shares available for purchase by plan participants under the terms of the current shareholder-approved ESPP.

The total compensation expense of our various stock-based compensation plans was as follows (in thousands):



YEAR ENDED
AUGUST 31,		2022		2021		2020
Performance awards	$	6,133	$	7,298	$	(1,518)
Strive acquisition compensation		1,196		354		-
Unvested stock awards		673		700		700
Compensation cost of the ESPP		239		205		185
Fully vested stock awards		45		60		60
	$	8,286	$	8,617	$	(573)

No stock-based compensation was capitalized during the fiscal years presented in this report. We recognize forfeitures of stock-based compensation instruments as they occur. During fiscal 2022, we issued 272,060 shares of our common stock from shares held in treasury for various stock-based compensation arrangements, including the ESPP. Our stock-based compensation plans allow shares to be withheld from the award to pay the participants’ statutory income tax liabilities. We withheld 86,125 shares of our common stock, with a fair value of $3.5 million, for statutory income taxes during fiscal 2022.

At each quarterly or annual reporting date, we evaluate the 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 and our business, we determined that the LTIP award tranches based on qualified Adjusted EBITDA for outstanding LTIP awards (except the fiscal 2018 LTIP award) 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 during fiscal 2020, which produced a benefit from stock-based compensation for the year. On October 2, 2020, the Compensation Committee modified the terms of our performance-based LTIP award tranches to extend the service period of each financial-metric based tranche by two years and increase each qualified Adjusted EBITDA vesting target by $2.0 million. No time-based vesting LTIP tranches were modified. During fiscal 2022 and fiscal 2021 we reassessed the probability of awards vesting under the modified conditions and have expensed awards based on the new vesting requirements and expected financial results over the revised service periods.

The following is a description of our stock-based compensation plans.

Performance Awards

The Compensation Committee has awarded various performance-based stock compensation awards to members of our senior management as long-term incentive-based compensation. These awards vest to the participants based upon the achievement of specified performance criteria. Compensation expense is recognized as we determine it is probable that the shares will vest. Adjustments to compensation expense to reflect the timing of and the number of shares expected to be awarded are made on a cumulative basis at the date of the adjustment. We reevaluate the likelihood and/or the number of shares expected to vest under performance awards at each reporting date. Based on current estimates and projections, we have $10.6 million of unrecognized compensation expense related to our annual LTIP awards at August 31, 2022. The following is a description of our performance-based awards as of August 31, 2022.

Fiscal 2022 LTIP Award – On February 4, 2022, the Compensation Committee granted a new LTIP award to our executive officers and members of senior management. The fiscal 2022 LTIP award has two tranches, which consist of the following: 1) shares that vest after three years of service and 2) shares that vest based on the achievement of specified levels of qualified Adjusted EBITDA. Twenty-five percent of a participant’s award vests after three years of service, and the number of shares awarded in this tranche does not fluctuate based on financial measures. The number of shares granted in this tranche totals 24,649 shares. The remaining tranche is based on the highest rolling four-quarter level of qualified Adjusted EBITDA achieved in the three-year period ended August 31, 2024. The number of shares that will vest to participants for this tranche 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 level of qualified Adjusted EBITDA

achieved. The number of shares that may be earned for achieving 100 percent of the performance-based objective totals 73,929 shares. The maximum number of shares that may be awarded in connection with the performance-based tranche of the 2022 LTIP totals 147,858 shares.

Fiscal 2021 LTIP Award – On October 2, 2020, the Compensation Committee of the Board of Directors granted a new LTIP award to our executive officers and members of senior management. The fiscal 2021 LTIP award has two tranches, which consist of the following: 1) shares that vest after three years of service and 2) the achievement of specified levels of qualified Adjusted EBITDA. Twenty-five percent of a participant’s award vests after three years of service, and the number of shares awarded in this tranche does not fluctuate based on financial measures. The number of shares granted in this tranche totals 52,696 shares. The remaining tranche is based on the highest rolling four-quarter level of qualified Adjusted EBITDA achieved in the three-year period ended August 31, 2023. The number of shares that will vest to participants for this tranche 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 level of qualified Adjusted EBITDA achieved. The number of shares that may be earned for achieving 100 percent of the performance-based objective totals 158,088 shares. The maximum number of shares that may be awarded in connection with the performance-based tranche of the 2021 LTIP totals 316,176 shares.

Strive Acquisition Compensation – We structured two parts of the consideration for the fiscal 2021 acquisition of Strive (Note 3) as potentially payable in shares of our common stock. Each of the following amounts may be payable in shares of our common stock or cash at our sole discretion:

Contingent Consideration – A maximum of approximately $4.2 million may be earned by the former principal owner of Strive over a five-year period ending in May 2026. The total value of this consideration is contingent upon sales and growth of the All Access Pass subscription and subscription services revenues during the five-year measurement period. We measure the contingent consideration each quarter and divide the total by the average of the closing share price of our common stock on the NYSE over the last 15 trading days of the quarter. Shares are required to be distributed within 45 days following the end of each quarter. Through August 31, 2022, we have recognized $0.8 million of share-based compensation expense for the Strive contingent consideration payments.

Bonus Payments – Approximately $1.0 million will be paid 18 months following the Closing Date to stockholders and option holders of Strive who are still employed by the Company or its affiliates as of the 18-month date, subject to certain exceptions. We are expensing these awards evenly over the service period, which is 18 months. We have less than $0.1 million of unrecognized share-based compensation expense for these awards at August 31, 2022.

We have reserved 200,000 shares of our common stock from our 2019 Omnibus Plan for potential payment of this consideration related to the acquisition of Strive.

Fiscal 2020 LTIP Award – On October 18, 2019, the 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 has three tranches, which consist of the following: 1) shares that vest after three years of service; 2) shares that vest based on the achievement of specified levels of qualified Adjusted EBITDA; and 3) shares that vest based on the achievement of specified levels of subscription service sales. Twenty-five percent of a participant’s award vests after three years of service, and the number of shares awarded in this tranche does not fluctuate based on financial measures. The number of shares granted in this tranche totals 25,101 shares. The remaining two tranches of the award are based on the highest rolling four-quarter levels of qualified Adjusted EBITDA and subscription service sales achieved in the three-year period which originally 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) up to 200 percent of the participant’s award (maximum threshold). The maximum number of shares that may be awarded in connection with these tranches totals 150,630 shares. As described above, the qualified Adjusted EBITDA vesting targets for the fiscal 2020 LTIP were increased by $2.0 million and the life of the award was extended to August 31, 2024.

Fiscal 2019 LTIP Award – On October 1, 2018, the Compensation Committee granted a performance-based LTIP award to our executive officers and members of senior management. The fiscal 2019 LTIP award has three tranches, which consist of the following: 1) shares that vest after three years of service; 2) the achievement of certain levels of qualified Adjusted EBITDA; and 3) the achievement of certain levels of subscription service sales. Twenty-five percent of a participant’s award vests after three years of service, and the number of shares awarded in this tranche will not fluctuate based on financial measures. The number of shares granted in this tranche totals 36,470 shares. The remaining two tranches of the fiscal 2019 award are based on the highest rolling four-quarter levels of qualified Adjusted EBITDA and subscription service sales achieved in the measurement period that originally ended August 31, 2021. The number of shares that will vest to participants for these two tranches is variable and may be 50 percent of the award (minimum threshold) up to 200 percent of the participant’s award (maximum threshold). The maximum number of shares that may be awarded in connection with these tranches totals 218,818 shares. During fiscal 2021, the fiscal 2019 LTIP award was modified by increasing the qualified Adjusted EBITDA vesting targets by $2.0 million and extending the measurement period by two years to August 31, 2023.

‎

Unvested Stock Awards

The annual Board of Director unvested stock award, which is administered under the terms of the Franklin Covey Co. Omnibus Incentive Plans, is designed to provide our non-employee directors, who are not eligible to participate in our ESPP, an opportunity to obtain an interest in the Company through the acquisition of shares of our common stock as part of their compensation. For fiscal 2022, each eligible director received a whole-share grant equal to $110,000 with a one-year vesting period. The Board of Director unvested awards are generally granted in January (following the Annual Shareholders’ Meeting) of each year, and shares granted under the terms of this annual award may not be voted or participate in any common stock dividends until they are vested.

We issued 13,260 shares, 28,049 shares, and 21,420 shares of our common stock to eligible members of the Board of Directors during fiscal 2022, fiscal 2021, and fiscal 2020 as unvested stock awards. The fair value of shares awarded to the directors was $0.7 million in each of fiscal 2022, fiscal 2021, and fiscal 2020 as calculated on the grant date of the awards. The corresponding compensation cost of each award is recognized over the service period of the award, which is one year. The cost of the common stock issued from treasury for these awards was $0.2 million in fiscal 2022, $0.4 million in fiscal 2021, and $0.3 million in fiscal 2020. The following information applies to our unvested stock awards for the fiscal year ended August 31, 2022:



			Weighted-
			Average Grant-
			Date Fair
	Number of		Value Per
	Shares		Share
Restricted stock awards at
August 31, 2021	28,049	$	24.96
Granted	13,260		49.78
Forfeited	-		-
Vested	(28,049)		24.96
Restricted stock awards at
August 31, 2022	13,260	$	49.78

At August 31, 2022, there was $0.2 million of unrecognized compensation cost left on our unvested stock awards, which is expected to be recognized over the remaining service period of approximately four months. The total recognized income tax benefit from unvested stock awards totaled $0.2 million for each of the years ended August 31, 2022, 2021, and 2020. The intrinsic value of our unvested stock awards at August 31, 2022 was $0.6 million.

Stock Options

On January 12, 2021, our Chief Executive Officer (CEO) exercised his remaining stock options, which would have expired on January 14, 2021. After these stock options were exercised, we do not have any remaining stock options outstanding. The Stock options exercised during fiscal 2021 and 2020 were exercised on a net basis, meaning no cash was paid to exercise the options. For the 218,750 options exercised in fiscal 2021, we withheld 51,738 shares of our common stock with a fair value of $1.3 million for income taxes. The intrinsic value of options exercised in fiscal 2021 totaled $2.9 million and we recognized an income tax benefit of $0.7 million, of which $0.5 million was recognized upon the exercise of the options. During fiscal 2020, 350,000 stock options were exercised and we withheld 102,656 shares of our common stock for statutory income taxes, which had a fair value of $3.6 million. The intrinsic value of options exercised during fiscal 2020 totaled $8.0 million and we recognized an income tax benefit of $1.8 million from the exercise of these options.

Employee Stock Purchase Plan

We have an employee stock purchase plan 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 quarter. ESPP participants purchased a total of 36,960 shares, 51,581 shares, and 41,409 shares of our common stock during the fiscal years ended August 31, 2022, 2021, and 2020, which had a corresponding cost basis of $0.6 million in fiscal 2022, $0.8 million in fiscal 2021, and $0.6 million in fiscal 2020. We received cash proceeds for these shares from ESPP participants totaling $1.3 million in fiscal 2022; $1.1 million in fiscal 2021; and $1.0 million during fiscal 2020.

Fully Vested Stock Awards

We have a stock-based incentive program that is designed to reward our client partners and training consultants for exceptional long-term performance. The program grants shares of our common stock to client partners who have achieved certain cumulative sales goals and to training consultants who have delivered a specified number of training days during their career. Three individuals qualified for these awards in fiscal 2022 and four individuals qualified for these awards in each of the fiscal years ended August 31, 2021 and 2020.

Employee Benefit Plans

12 Months Ended

Aug. 31, 2022

Employee Benefit Plans [Abstract]

Employee Benefit Plans

13. EMPLOYEE BENEFIT PLANS

We have defined contribution profit sharing plans for our employees that qualify under Section 401(k) of the Internal Revenue Code. These plans provide retirement benefits for employees meeting minimum age and service requirements. Qualified participants may contribute up to 75 percent of their gross wages, subject to certain limitations. These plans also provide for matching contributions to the participants that are paid by the Company. The matching contributions, which were expensed as incurred, totaled $2.7 million, $2.5 million, and $2.3 million during the fiscal years ended August 31, 2022, 2021, and 2020, respectively. We do not sponsor or participate in any defined-benefit pension plans.

Income Taxes

12 Months Ended

Aug. 31, 2022

Income Taxes [Abstract]

Income Taxes

14. INCOME TAXES

Our benefit (provision) for income taxes consisted of the following (in thousands):



YEAR ENDED
AUGUST 31,		2022		2021		2020
Current:
Federal	$	-	$	-	$	(15)
State		(1,221)		(286)		(87)
Foreign		(2,202)		(1,773)		(1,145)
		(3,423)		(2,059)		(1,247)

Deferred:
Federal		(9,339)		2,869		2,306
State		(889)		13		98
Foreign		24		24		(77)
Operating loss carryforward		7,150		(3,058)		(50)
Valuation allowance		2,845		10,546		(11,261)
Foreign tax credit carryforward
reduction		(2)		(787)		-
		(211)		9,607		(8,984)
	$	(3,634)	$	7,548	$	(10,231)

The allocation of our total income tax benefit (provision) is as follows (in thousands):



YEAR ENDED
AUGUST 31,		2022		2021		2020
Net income (loss)	$	(3,634)	$	7,548	$	(10,231)
Other comprehensive income (loss)		176		11		16
	$	(3,458)	$	7,559	$	(10,215)

Income (loss) before income taxes consisted of the following (in thousands):



YEAR ENDED
AUGUST 31,		2022		2021		2020
United States	$	21,152	$	6,834	$	3,062
Foreign		912		(759)		(2,266)
	$	22,064	$	6,075	$	796

The differences between income taxes at the statutory federal income tax rate and the consolidated income tax rate reported in our consolidated statements of operations and comprehensive income (loss) were as follows:



YEAR ENDED
AUGUST 31,	2022		2021		2020
Federal statutory income tax rate	(21.0)	%	(21.0)	%	(21.0)	%
State income taxes, net of federal effect	(3.9)		(1.6)		16.9
Valuation allowance	12.9		173.6		(1,412.9)
Foreign tax credit carryforward
reduction	-		(13.0)		-
Executive stock options	-		7.7		199.9
Foreign jurisdictions tax differential	(1.1)		(4.0)		1.4
Tax differential on income subject
to both U.S. and foreign taxes	(0.2)		(0.7)		11.9
Uncertain tax positions	(0.8)		(3.0)		13.8
Non-deductible executive compensation	(5.5)		(5.8)		(18.2)
Non-deductible meals and entertainment	(0.1)		(0.2)		(22.3)
Other stock-based compensation	2.5		-		-
Payout of deferred compensation (NQDC)	-		-		6.1
Other	0.7		(7.8)		(59.3)
	(16.5)	%	124.2	%	(1,283.7)	%

Our effective income tax expense rate for fiscal 2022 of 16.5 percent was lower than the statutory tax rate primarily due to a $2.8 million decrease in the valuation allowance against our deferred income tax assets and a $0.6 million benefit for share-based compensation deductions in excess of the corresponding book expense. These tax benefits were partially offset by tax expense of $1.2 million for non-deductible executive compensation.

Our effective income tax benefit rate for fiscal 2021 of 124.2 percent was primarily due to a $10.5 million reduction in our valuation allowance against deferred income tax assets, which was partially offset by the reduction of $0.8 million in foreign tax credit carryforwards resulting from tax withheld by foreign jurisdictions in excess of amounts allowable as credits against our U.S. income taxes. In fiscal 2020, as explained below, we recognized $11.3 million of additional income tax expense resulting from the increase in the valuation allowance against our deferred tax assets. Due to the near break-even amount of pre-tax income during fiscal 2020, the effect of non-temporary items on our effective income tax rate was greatly amplified.

In consideration of the relevant accounting guidance, we reevaluated our deferred tax assets during fiscal 2020 and 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 prior 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 were unable to overcome accounting guidance indicating 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. Based on this assessment, we increased the valuation allowance against our deferred tax assets, which generated $11.3 million of additional income tax expense in fiscal 2020.

Our strong financial performance during fiscal 2021 produced cumulative three-year pre-tax income through August 31, 2021. Because of better-than-expected earnings during fiscal 2021, as well as a favorable outlook for future earnings, particularly from sales of our All Access Pass, we reduced the valuation allowance against our deferred tax assets by $10.5 million during fiscal 2021. In fiscal 2022, we reduced the valuation allowance against our deferred tax assets by $2.8 million, due primarily to foreign tax credits claimed on our fiscal 2021 U.S. federal income tax return which we previously concluded would expire unused.

We are subject to the anti-deferral provisions on Global Intangible Low-Taxed Income (GILTI) under the Tax Cut and Jobs Act of 2017. We have elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the Period Cost Method). We recorded an insignificant amount of income tax expense in fiscal 2022 and no income tax expense in fiscal 2021 or fiscal 2020 under the GILTI provisions. During fiscal 2019, we recorded income tax expense of $0.3 million under GILTI. However, IRS guidance issued after we filed our fiscal 2019 federal income tax return allowed us to amend the return and reverse the GILTI tax previously recorded. Accordingly, we recorded a $0.3 million benefit for this reversal during fiscal 2021.

On August 16, 2022, President Biden signed the Inflation Reduction Act, which includes a new 15 percent corporate minimum tax on certain large corporations and a one percent excise tax on stock repurchases made after December 31, 2022. We do not anticipate this legislation will have a material impact on our consolidated financial statements.

The significant components of our deferred tax assets and liabilities were as follows (in thousands):



AUGUST 31,		2022		2021
Deferred income tax assets:
Net operating loss carryforward	$	11,334	$	5,986
Foreign income tax credit
carryforward		4,096		9,466
Sale and financing of corporate
headquarters		2,638		3,307
Stock-based compensation		2,503		2,022
Bonus and other accruals		2,094		2,483
Deferred revenue		1,596		1,075
Inventory and bad debt reserves		1,533		1,551
Other		605		653
Total deferred income tax assets		26,399		26,543
Less: valuation allowance		(1,685)		(4,530)
Net deferred income tax assets		24,714		22,013

Deferred income tax liabilities:
Intangibles step-ups – indefinite lived		(5,478)		(5,461)
Intangibles step-ups – finite lived		(3,186)		(4,008)
Intangible asset impairment and
amortization		(3,851)		(3,537)
Self-constructed tangible assets		(3,811)		-
Deferred commissions		(3,187)		(2,784)
Unremitted earnings of foreign
subsidiaries		(388)		(646)
Property and equipment depreciation		(326)		(1,001)
Total deferred income tax liabilities		(20,227)		(17,437)
Net deferred income taxes	$	4,487	$	4,576

‎

Deferred income tax amounts are recorded as follows in our consolidated balance sheets (in thousands):



AUGUST 31,		2022		2021
Long-term assets	$	4,686	$	4,951
Long-term liabilities		(199)		(375)
Net deferred income tax asset	$	4,487	$	4,576

Our U.S. federal net operating loss carryforwards were comprised of the following at August 31, 2022 (in thousands):



	Loss Carryforward				Loss		Loss		Operating
Loss Carryforward	Expires				Deductions		Deductions		Loss Carried
for Year Ended	August 31,		Amount		in Prior Years		in Current Year		Forward
Acquired NOL - Jhana
December 31, 2015	2034	$	1,491	$	(1,428)	$	-	$	63
December 31, 2016	2035		3,052		-		-		3,052
July 15, 2017	2036		1,117		-		-		1,117
			5,660		(1,428)		-		4,232
Acquired NOL - Strive
December 31, 2018	No Expiration		947		(295)		-		652
December 31, 2019	No Expiration		869		-		-		869
December 31, 2020	No Expiration		1,133		-		-		1,133
April 25, 2021	No Expiration		553		-		-		553
			3,502		(295)		-		3,207

August 31, 2022	No Expiration		30,675		-		-		30,675
		$	39,837	$	(1,723)	$	-	$	38,114

Certain operating loss carryforwards in the table above were obtained through the fiscal 2017 acquisition of Jhana Education (Jhana) and the fiscal 2021 acquisition of Strive (Note 3).

We have U.S. state net operating loss carryforwards generated in fiscal 2009 and before in various jurisdictions that expire primarily between September 1, 2022 and August 31, 2029. The U.S. state net operating loss carryforwards generated in fiscal 2017 and fiscal 2018 primarily expire on August 31, 2037 and 2038, respectively. The state net operating loss carryforwards acquired through the purchase of Jhana stock expire between August 31, 2034 and August 31, 2036. The state net operating loss carryforwards acquired through the purchase of Strive stock expire between August 31, 2038 and August 31, 2041. The state net operating loss carryforwards generated in fiscal 2022 primarily expire on August 31, 2042.

Our U.S. foreign income tax credit carryforwards were comprised of the following at August 31, 2022 (in thousands):



Credit Generated in					Credits Used		Credits		Credits Used		Credits
Fiscal Year Ended	Credit Expires		Credits		in Prior		Reduced in		in Current		Carried
August 31,	August 31,		Generated		Years		Current Year		Year		Forward
2018	2028	$	1,727	$	(967)	$	-	$	-	$	760
2019	2029		1,578		(234)		-		-		1,344
2020	2030		1,010		(147)		-		-		863
2022	2032		1,129		-		-		-		1,129
		$	5,444	$	(1,348)	$	-	$	-	$	4,096

As previously explained, during fiscal 2020 we significantly increased the valuation allowance on our deferred income tax assets. During fiscal 2021 we reversed nearly all of the valuation allowance amounts that we recorded in 2020. The remaining valuation allowance at August 31, 2021 related primarily to the foreign tax credit carryforward from fiscal

2011, which we expected to expire in fiscal 2022, and losses of certain foreign subsidiaries. During fiscal 2022 we were able to utilize the foreign tax credit carryforward from 2011, and the remaining valuation allowance at August 31, 2022 relates primarily to the losses of certain foreign subsidiaries, which we expect will expire.

Activity in our deferred income tax asset valuation allowance was as follows for the periods indicated (in thousands):



YEAR ENDED
AUGUST 31,		2022		2021		2020
Beginning balance	$	4,530	$	15,076	$	3,815
Charged to costs and expenses		683		394		11,269
Deductions		(3,528)		(10,940)		(8)
Ending balance	$	1,685	$	4,530	$	15,076

Except for the deferred tax assets subject to valuation allowances, we have determined that projected future taxable income is adequate to allow for realization of all deferred tax assets. We considered sources of taxable income, including reversals of taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, and reasonable, practical tax-planning strategies to generate additional taxable income. Based on the factors described above, we concluded that realization of our deferred tax assets, except those subject to the valuation allowances described above, is more likely than not at August 31, 2022.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):



YEAR ENDED
AUGUST 31,		2022		2021		2020
Beginning balance	$	1,594	$	1,640	$	1,895
Additions based on tax positions
related to the current year		77		349		172
Additions for tax positions in
prior years		207		79		10
Reductions for tax positions of prior
years resulting from the lapse of
applicable statute of limitations		-		(188)		(289)
Other reductions for tax positions of
prior years		(281)		(286)		(148)
Ending balance	$	1,597	$	1,594	$	1,640

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $1.3 million at each of August 31, 2022 and 2021. Included in the ending balance of gross unrecognized tax benefits at August 31, 2022 is $1.6 million related to individual states’ net operating loss carryforwards. Interest and penalties related to uncertain tax positions are recognized as components of income tax expense. The net accruals and reversals of interest and penalties increased our income tax expense by $0.1 million in fiscal 2022 and had an insignificant effect on our income taxes in each of fiscal 2021 and fiscal 2020. The balance of interest and penalties included in other long-term liabilities on our consolidated balance sheets was $0.3 million on August 31, 2022 and $0.2 million on August 31, 2021. During the next 12 months, we expect an immaterial change in unrecognized tax benefits.

We file United States federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The tax years that remain subject to examinations for our major tax jurisdictions are shown below.

2015-2022	Australia, Canada, and Japan
2016-2022	China
2017-2022	Germany, Switzerland, and Austria
2018-2022	United Kingdom, Singapore
2018-2022	United States – state and local income tax
2019-2022	United States – federal income tax

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income (Loss) Per Share

12 Months Ended

Aug. 31, 2022

Income (Loss) Per Share [Abstract]

Net Income (Loss) Per Share

15. INCOME (LOSS) PER SHARE

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



YEAR ENDED
AUGUST 31,		2022		2021		2020
Numerator for basic and
diluted earnings per share:
Net income (loss)	$	18,430	$	13,623	$	(9,435)

Denominator for basic and
diluted earnings per share:
Basic weighted average shares
outstanding		14,147		14,090		13,892
Effect of dilutive securities:
Stock options and other
stock-based awards		408		53		-
Diluted weighted average shares
outstanding		14,555		14,143		13,892

EPS Calculations:
Net income (loss) per share:
Basic	$	1.30	$	0.97	$	(0.68)
Diluted		1.27		0.96		(0.68)

Segment Information

12 Months Ended

Aug. 31, 2022

Segment Information [Abstract]

Segment Information

16. SEGMENT INFORMATION

Reportable Segments

Our sales are primarily comprised of training and consulting services and our internal reporting structure is comprised of three reportable operating segments and a corporate services group. Our internal reporting structure and reportable segments are organized primarily around the client channels which produce the Company’s revenues. The following is a brief description of our reportable segments:

Direct Offices – 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 governmental sales channel; our coaching operations; and our books and audio sales channel.

International Licensees – This segment is primarily comprised of our international licensees’ royalty revenues.

Education Practice – This group includes our domestic and international Education practice operations, which are focused on sales to educational institutions.

Corporate and Other – Our corporate and other information includes royalty revenue from Franklin Planner Corporation (Note 17), leasing operations, shipping and handling revenues, and certain corporate administrative expenses.

We have determined that the Company’s chief operating decision maker continues to be 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 reported by other companies. For reporting purposes, we define Adjusted EBITDA as net income or loss excluding the impact of interest, income taxes, intangible asset amortization, depreciation, stock-based compensation expense, and certain other items such as adjustments to the fair value of expected contingent consideration liabilities arising from business acquisitions, and other unusual or infrequent items.

Our operations are not capital intensive and we do not own any manufacturing facilities or equipment. Accordingly, we do not allocate assets to the divisions 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 account for our segment information on the same basis as the accompanying consolidated financial statements (in thousands).



		Sales to
Fiscal Year Ended		External				Adjusted
August 31, 2022		Customers		Gross Profit		EBITDA
Enterprise Division:
Direct offices	$	183,845	$	148,051	$	37,497
International licensees		10,551		9,382		4,964
		194,396		157,433		42,461
Education Division		61,852		41,206		8,408
Corporate and eliminations		6,593		3,273		(8,672)
Consolidated	$	262,841	$	201,912	$	42,197

Fiscal Year Ended
August 31, 2021
Enterprise Division:
Direct offices	$	159,608	$	129,416	$	27,948
International licensees		9,036		7,727		3,586
		168,644		137,143		31,534
Education Division		48,902		32,771		4,818
Corporate and eliminations		6,622		2,988		(8,394)
Consolidated	$	224,168	$	172,902	$	27,958

Fiscal Year Ended
August 31, 2020
Enterprise Division:
Direct offices	$	139,780	$	108,144	$	17,694
International licensees		8,451		6,679		2,406
		148,231		114,823		20,100
Education Division		43,405		27,099		(90)
Corporate and eliminations		6,820		3,448		(5,726)
Consolidated	$	198,456	$	145,370	$	14,284

‎

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



YEAR ENDED
AUGUST 31,		2022		2021		2020
Segment Adjusted EBITDA	$	50,869	$	36,352	$	20,010
Corporate expenses		(8,672)		(8,394)		(5,726)
Consolidated Adjusted EBITDA		42,197		27,958		14,284
Stock-based compensation		(8,286)		(8,617)		573
Reduction (increase) in
contingent consideration liabilities		(68)		(193)		49
Restructuring costs		-		-		(1,636)
Gain from insurance settlement		-		150		933
Government COVID assistance		-		299		514
Business acquisition costs		-		(300)		-
Knowledge Capital wind-down costs		-		-		(389)
Depreciation		(4,903)		(6,190)		(6,664)
Amortization		(5,266)		(5,006)		(4,606)
Income from operations		23,674		8,101		3,058
Interest income		65		73		56
Interest expense		(1,675)		(2,099)		(2,318)
Income before income taxes		22,064		6,075		796
Benefit (provision) for income taxes		(3,634)		7,548		(10,231)
Net income (loss)	$	18,430	$	13,623	$	(9,435)

Disaggregated Revenue

Our revenues are derived primarily from the United States. However, we also operate directly-owned offices or contract with licensees to provide our services in various countries throughout the world. Our consolidated revenues were derived from the following countries/regions (in thousands):



YEAR ENDED
AUGUST 31,		2022		2021		2020
Americas	$	218,863	$	182,954	$	160,989
Asia Pacific		26,835		28,621		25,622
Europe/Middle East/Africa		17,143		12,593		11,845
	$	262,841	$	224,168	$	198,456

The following table presents our revenue disaggregated by our significant revenue generating activities. Sales of services and products include training and consulting services and related products such as training manuals. Subscription sales include revenues from our subscription services such as the All Access Pass and Leader in Me membership. We receive royalty revenue from our international licensees and from other sources such as book publishing arrangements. Corporate royalties are amounts received from Franklin Planner Co. pursuant to a licensing arrangement obtained in fiscal 2020 (Note 17). Leases and other revenue is primarily comprised of lease revenues from sub-leases for space at our corporate headquarters campus and from shipping and handling revenues (in thousands).

‎



Fiscal Year Ended		Services and						Leases and
August 31, 2022		Products		Subscriptions		Royalties		Other		Consolidated
Enterprise Division:
Direct offices	$	93,324	$	88,055	$	2,466	$	-	$	183,845
International licensees		429		1,281		8,841		-		10,551
		93,753		89,336		11,307		-		194,396
Education Division		25,134		34,037		2,681		-		61,852
Corporate and eliminations		-		-		1,194		5,399		6,593
Consolidated	$	118,887	$	123,373	$	15,182	$	5,399	$	262,841

Fiscal Year Ended
August 31, 2021
Enterprise Division:
Direct offices	$	84,111	$	72,789	$	2,708	$	-	$	159,608
International licensees		1,085		-		7,951		-		9,036
		85,196		72,789		10,659		-		168,644
Education Division		19,747		26,742		2,413		-		48,902
Corporate and eliminations		-		-		1,396		5,226		6,622
Consolidated	$	104,943	$	99,531	$	14,468	$	5,226	$	224,168

Fiscal Year Ended
August 31, 2020
Enterprise Division:
Direct offices	$	75,580	$	60,954	$	3,246	$	-	$	139,780
International licensees		1,411		-		7,040		-		8,451
		76,991		60,954		10,286		-		148,231
Education Division		15,107		25,587		2,711		-		43,405
Corporate and eliminations		-		-		1,985		4,835		6,820
Consolidated	$	92,098	$	86,541	$	14,982	$	4,835	$	198,456

Inter-segment sales were immaterial for the periods presented and were eliminated in consolidation.

Other Geographic Information

At August 31, 2022, we had wholly owned direct offices in Australia, China, Japan, the United Kingdom, Germany, Switzerland, and Austria. Our long-lived assets, excluding intangible assets and goodwill, were held in the following locations for the periods indicated (in thousands):



AUGUST 31,		2022		2021
United States/Canada	$	24,179	$	27,038
China		1,375		2,133
Japan		983		1,238
United Kingdom		425		702
Australia		155		160
Germany, Switzerland, and Austria		102		120
Singapore		-		238
	$	27,219	$	31,629

- 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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Related Party Transactions

12 Months Ended

Aug. 31, 2022

Related Party Transactions

‎

17. RELATED PARTY TRANSACTIONS

Knowledge Capital Investment Group

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 August 31, 2020, Knowledge Capital did not own any shares of our common stock.

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. As a result of FCOP’s structure as a limited liability company with separate owner capital accounts, we determined that our investment in FCOP was more than minor and we were required to account for our investment in FCOP using the equity method of accounting. We have not recorded our share of FCOP’s losses in the accompanying consolidated statements of operations and comprehensive income (loss) because we have impaired and written off investment balances, as defined within the applicable accounting guidance, in excess of our share of FCOP’s losses.

Due to significant operating losses incurred after the establishment of FCOP, we reconsidered whether FCOP was a variable interest entity as defined under ASC 810, and determined that FCOP was a variable interest entity. We further determined that we were not the primary beneficiary of FCOP because we did not have the ability to direct the activities that most significantly impact FCOP’s economic performance, which primarily consisted of the day-to-day sale of planning products and related accessories, and we did not have an obligation to absorb losses or the right to receive benefits from FCOP that could have been significant.

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 has continued 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 of consideration 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’s assets. We recorded the $3.2 million consideration for the amendment to the license agreement as a capitalized cost of the license agreement 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 fiscal years ended August 31, 2022, 2021, and 2020, we recognized $1.2 million, $1.4 million, and $2.0 million of royalty revenues (net of the amortization of costs capitalized to obtain the contract) 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, do not have control over the day-to-day operations of FPC, and accordingly do not account for FPC as a variable interest entity. We receive payments for royalties and rented space from FPC. At August 31, 2022 and August 31, 2021, we had $1.7 million and $1.8 million receivable, respectively, from FPC which are recorded in other 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 fiscal 2022 and 2021, we received $2.0 million and $1.5 million of cash from FPC as payment for royalties and reimbursable operating costs.

CoveyLink Acquisition and Contractual Payments

We previously acquired the assets of CoveyLink Worldwide, LLC (CoveyLink). CoveyLink conducts training and provides consulting based upon the book The Speed of Trust by Stephen M.R. Covey, who is the brother of one of our executive officers.

Prior to the acquisition date, CoveyLink had granted us a non-exclusive license for content related to The Speed of Trust book and related training courses for which we paid CoveyLink specified royalties. As part of the CoveyLink acquisition, we signed an amended and restated license for intellectual property that granted us an exclusive, perpetual, worldwide, transferable, royalty-bearing license to use, reproduce, display, distribute, sell, prepare derivative works of, and perform the licensed material in any format or medium and through any market or distribution channel. We are required to pay Stephen M.R. Covey royalties for the use of certain intellectual property developed by him. The amount expensed for these royalties totaled $1.8 million, $1.5 million, and $1.6 million during the fiscal years ended August 31, 2022, 2021, and 2020. As part of the acquisition of CoveyLink, we signed an amended license agreement as well as a speaker services agreement. Based on the provisions of the speakers’ services agreement, we pay Stephen M.R. Covey a portion of the speaking revenues received for his presentations. We expensed $0.8 million, $0.6 million, and $0.8 million for payment on these presentations during the fiscal years ended August 31, 2022, 2021 and 2020. We had $0.3 million and $0.2 million accrued for these royalties and speaking fees at August 31, 2022 and 2021, respectively, which were included as components of accrued liabilities on our consolidated balance sheets.

Other Related Party Transactions

We pay an executive officer of the Company a percentage of the royalty proceeds received from the sales of certain books authored by him in addition to his annual salary. During each of the fiscal years ended August 31, 2022, 2021, and 2020, we expensed $0.1 million for these royalties. We had an insignificant amount accrued to this executive officer at August 31, 2022 and 2021 as payable under the terms of these arrangements. These amounts are included as components of accrued liabilities in our consolidated balance sheets.

We pay a company owned by the brother of a member of our executive management team for the production of video segments used in our offerings. During the fiscal years ended August 31, 2022 and 2021, we paid $0.3 million and $0.8 million to this company for services provided.

Nature Of Operations And Summary Of Significant Accounting Policies (Policy)

12 Months Ended

Aug. 31, 2022

Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]

Nature of Operations

Fiscal Year

Basis Of Presentation

Basis of Presentation

Pervasiveness Of Estimates

Pervasiveness of Estimates

Cash And Cash Equivalents

Cash and Cash Equivalents

Inventories

‎

Inventories



AUGUST 31,		2022		2021
Finished goods	$	3,519	$	2,468
Raw materials		8		28
	$	3,527	$	2,496

Other Current Assets

Significant components of our other current assets were as follows (in thousands):



AUGUST 31,		2022		2021
Deferred commissions	$	12,598	$	10,991
Other current assets		1,969		1,872
	$	14,567	$	12,863

We defer commission expense on subscription-based sales and recognize the commission expense with the recognition of the corresponding revenue.

Property And Equipment

Property and Equipment

Description	Useful Lives
Buildings	20 years
Machinery and equipment	5–7 years
Computer hardware and software	3–5 years
Furniture, fixtures, and leasehold improvements	5–7 years

‎

Our property and equipment were comprised of the following (in thousands):



AUGUST 31,		2022		2021
Land and improvements	$	1,312	$	1,312
Buildings		30,038		30,059
Machinery and equipment		543		915
Computer hardware and software		26,030		29,127
Furniture, fixtures, and leasehold
improvements		9,287		9,426
		67,210		70,839
Less accumulated depreciation		(57,412)		(59,314)
	$	9,798	$	11,525

Impairment Of Long-Lived Assets

Impairment of Long-Lived Assets

Indefinite-Lived Intangible Assets And Goodwill Impairment Testing

Indefinite-Lived Intangible Assets and Goodwill Impairment Testing

Zero assessment and concluded there were no indicators of impairment. Refer to Note 5, Intangible Assets and Goodwill for further information on our goodwill.

Capitalized Curriculum Development Costs

Accrued Liabilities

Significant components of our accrued liabilities were as follows (in thousands):


AUGUST 31,		2022		2021
Accrued compensation	$	20,608	$	17,955
Other accrued liabilities		13,597		17,025
	$	34,205	$	34,980

Contingent Consideration Payments From Business Acquisitions

Contingent Consideration Payments from Business Acquisitions

Foreign Currency Translation And Transactions

Foreign Currency Translation and Transactions

Revenue Recognition

Revenue is recognized as the net amount to be received after deducting estimated amounts for discounts and product returns.

Stock-Based Compensation

Shipping And Handling Fees And Costs

Shipping and Handling Fees and Costs

All shipping and handling fees billed to customers are recorded as a component of net sales. All costs incurred related to the shipping and handling of products are recorded in cost of sales.

Advertising Costs

Restructuring Costs

Income Taxes

‎

Income Taxes

We provide for income taxes, net of applicable foreign tax credits, on temporary differences in our investment in foreign subsidiaries, which consist primarily of unrepatriated earnings.

Comprehensive Income (Loss)

Accounting Pronouncements Issued And Adopted

Accounting Pronouncements Issued and Adopted

Income Taxes

Credit Losses on Financial Instruments

Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement

prospective basis and the adoption of this new standard did not have a material impact on our consolidated financial statements or disclosures.

Nature Of Operations And Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Aug. 31, 2022

Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]

Components Of Inventories



AUGUST 31,		2022		2021
Finished goods	$	3,519	$	2,468
Raw materials		8		28
	$	3,527	$	2,496

Components Of Other Current Assets



AUGUST 31,		2022		2021
Deferred commissions	$	12,598	$	10,991
Other current assets		1,969		1,872
	$	14,567	$	12,863

Useful Life Of Property And Equipment

Description	Useful Lives
Buildings	20 years
Machinery and equipment	5–7 years
Computer hardware and software	3–5 years
Furniture, fixtures, and leasehold improvements	5–7 years

Property And Equipment



AUGUST 31,		2022		2021
Land and improvements	$	1,312	$	1,312
Buildings		30,038		30,059
Machinery and equipment		543		915
Computer hardware and software		26,030		29,127
Furniture, fixtures, and leasehold
improvements		9,287		9,426
		67,210		70,839
Less accumulated depreciation		(57,412)		(59,314)
	$	9,798	$	11,525

Components Of Accrued Liabilities


AUGUST 31,		2022		2021
Accrued compensation	$	20,608	$	17,955
Other accrued liabilities		13,597		17,025
	$	34,205	$	34,980

Acquisition of Strive Talent, Inc. (Tables)

12 Months Ended

Aug. 31, 2022

Acquisition of Strive Talent, Inc. [Abstract]

Schedule Of Total Purchase Price



Cash paid at closing	$	10,554
Notes payable		3,766
Total purchase price	$	14,320

Schedule Of Assets Acquired And Liabilities Assumed



Cash acquired	$	345
Accounts receivable		154
Prepaid and other current assets		56
Property and equipment		13
Intangible assets		7,976
Goodwill		7,000
Assets acquired		15,544

Deferred revenue		(52)
Accrued liabilities		(135)
Deferred income tax liability		(1,037)
Notes payable, current portion		(835)
Notes payable, less current portion		(2,931)
Liabilities assumed		(4,990)
	$	10,554

Schedule Of Assets Acquired Amortized Over Weighted Average Life



			Weighted Average
Description		Amount	Life
Non-compete agreements	$	171	2 years
Content		389	5 years
Customer relationships		764	3 years
Tradename		889	5 years
Internally developed software		5,763	8 years
	$	7,976	7 years

Accounts Receivables (Tables)

12 Months Ended

Aug. 31, 2022

Accounts Receivable [Abstract]

Activity In Allowance For Doubtful Accounts



YEAR ENDED
AUGUST 31,		2022		2021		2020
Beginning balance	$	4,643	$	4,159	$	4,242
Charged to costs and expenses		306		1,553		2,023
Deductions		(457)		(1,069)		(2,106)
Ending balance	$	4,492	$	4,643	$	4,159

Intangible Assets And Goodwill (Tables)

12 Months Ended

Aug. 31, 2022

Intangible Assets And Goodwill [Abstract]

Intangible Assets



		Gross Carrying		Accumulated		Net Carrying
AUGUST 31, 2022		Amount		Amortization		Amount
Finite-lived intangible assets:
Acquired content	$	49,964	$	(42,501)	$	7,463
License rights		32,077		(24,401)		7,676
Customer lists		16,140		(15,028)		1,112
Acquired technology		7,282		(2,479)		4,803
Trade names		1,883		(1,231)		652
Non-compete agreements and other		930		(803)		127
		108,276		(86,443)		21,833
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	131,276	$	(86,443)	$	44,833

AUGUST 31, 2021
Finite-lived intangible assets:
Acquired content	$	50,003	$	(40,352)	$	9,651
License rights		32,133		(23,036)		9,097
Customer lists		16,168		(14,519)		1,649
Acquired technology		7,282		(1,759)		5,523
Trade names		1,883		(933)		950
Non-compete agreements and other		930		(703)		227
		108,399		(81,302)		27,097
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	131,399	$	(81,302)	$	50,097

Range Of Remaining Estimated Useful Lives And Weighted-Average Amortization


Category of Intangible Asset	Range of Remaining Estimated Useful Lives	Weighted Average Original Amortization Period
Acquired content	4 to 5 years	24 years
License rights	5 to 7 years	26 years
Customer lists	2 to 4 years	11 years
Acquired technology	7 years	6 years
Trade names	4 years	5 years
Non-compete agreements and other	1 to 5 years	3 years

Amortization Expense For Intangible Assets Over The Next Five Years



YEAR ENDING
AUGUST 31,
2023	$	4,342
2024		4,200
2025		4,029
2026		3,938
2027		3,157

Consolidated Goodwill



Direct offices	$	22,962
International licensees		5,928
Education practice		2,330
	$	31,220

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
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-Subparagraph (h)
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
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-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Notes Payable And Secured Credit Agreement (Tables)

12 Months Ended

Aug. 31, 2022

Notes Payable And Secured Credit Agreement [Abstract]

Balances And Classification Of Notes Payable



	Current Portion of Notes Payable				Notes Payable, Less Current Portion
	August 31,		August 31,			August 31,		August 31,
Description	2022		2021			2022		2021
Bank term notes payable	$	5,000	$	5,000	$	5,000	$	10,000
Strive acquisition note payable		835		835		2,268		2,975
	$	5,835	$	5,835	$	7,268	$	12,975

Future Principal Payments By Fiscal Year



YEAR ENDING		Term Notes		Strive Note
AUGUST 31,		Payable		Payable		Total
2023	$	5,000	$	835	$	5,835
2024		5,000		835		5,835
2025		-		835		835
2026		-		835		835
2027		-		-		-
	$	10,000	$	3,340	$	13,340

- 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)
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

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-URI https://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399

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-SubTopic 10
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

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-SubTopic 10
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-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21475-112644

+ Details

Financing Obligation (Tables)

12 Months Ended

Aug. 31, 2022

Financing Obligation [Abstract]

Financing Obligation



AUGUST 31,		2022		2021
Financing obligation payable in
monthly installments of $328 at
August 31, 2022, including
principal and interest, with two
percent annual increases
(imputed interest at 7.7%),
through June 2025	$	11,161	$	14,048
Less current portion		(3,199)		(2,887)
Total financing obligation,
less current portion	$	7,962	$	11,161

Future Principal Maturities



YEAR ENDING
AUGUST 31,
2023	$	3,199
2024		3,538
2025		4,424
Thereafter		-
	$	11,161

Future Minimum Payments Under The Financing Obligation



YEAR ENDING
AUGUST 31,
2023	$	3,952
2024		4,031
2025		3,301
Thereafter		-
Total future minimum financing
obligation payments		11,284
Less interest		(1,435)
Present value of future minimum
financing obligation payments	$	9,849

Leases (Tables)

12 Months Ended

Aug. 31, 2022

Leases [Abstract]

Assets And Liabilities Related To Operating Leases



	Balance Sheet
	Caption	Amount
Assets:
Operating lease right of use assets	Other long-term assets	$	1,114

Liabilities:
Current:
Operating lease liabilities	Accrued liabilities		598
Long-Term:
Operating lease liabilities	Other long-term liabilities		516
		$	1,114

Weighted Average Remaining Lease Term:
Operating leases (years)			2.0

Weighted Average Discount Rate:
Operating leases			4.1	%

Future Minimum Lease Payments Under Operating Leases



YEAR ENDING
AUGUST 31,
2023	$	633
2024		422
2025		97
2026		13
2027		-
Thereafter		-
Total operating lease payments		1,165
Less imputed interest		(51)
Present value of operating lease liabilities	$	1,114

Future Minimum Lease Payments From Sublease



YEAR ENDING
AUGUST 31,
2023	$	2,643
2024		2,124
2025		1,751
2026		-
Thereafter		-
	$	6,518

Fair Value Of Financial Instruments (Tables)

12 Months Ended

Aug. 31, 2022

Fair Value Of Financial Instruments [Abstract]

Schedule Of Contingent Consideration Liability



			Change in
AUGUST 31,	2021		Fair Value		Payments		2022
Jhana contingent liability	$	2,095	$	68	$	(1,434)	$	729

Stock-Based Compensation Plans (Tables)

12 Months Ended

Aug. 31, 2022

Stock-Based Compensation Plans [Abstract]

Total Cost Of Stock-Based Compensation



YEAR ENDED
AUGUST 31,		2022		2021		2020
Performance awards	$	6,133	$	7,298	$	(1,518)
Strive acquisition compensation		1,196		354		-
Unvested stock awards		673		700		700
Compensation cost of the ESPP		239		205		185
Fully vested stock awards		45		60		60
	$	8,286	$	8,617	$	(573)

Restricted Stock Award Activity



			Weighted-
			Average Grant-
			Date Fair
	Number of		Value Per
	Shares		Share
Restricted stock awards at
August 31, 2021	28,049	$	24.96
Granted	13,260		49.78
Forfeited	-		-
Vested	(28,049)		24.96
Restricted stock awards at
August 31, 2022	13,260	$	49.78

Income Taxes (Tables)

12 Months Ended

Aug. 31, 2022

Income Taxes [Abstract]

Benefit (Provision) For Income Taxes From Continuing Operations



YEAR ENDED
AUGUST 31,		2022		2021		2020
Current:
Federal	$	-	$	-	$	(15)
State		(1,221)		(286)		(87)
Foreign		(2,202)		(1,773)		(1,145)
		(3,423)		(2,059)		(1,247)

Deferred:
Federal		(9,339)		2,869		2,306
State		(889)		13		98
Foreign		24		24		(77)
Operating loss carryforward		7,150		(3,058)		(50)
Valuation allowance		2,845		10,546		(11,261)
Foreign tax credit carryforward
reduction		(2)		(787)		-
		(211)		9,607		(8,984)
	$	(3,634)	$	7,548	$	(10,231)

Allocation Of Total Income Tax Provision (Benefit)



YEAR ENDED
AUGUST 31,		2022		2021		2020
Net income (loss)	$	(3,634)	$	7,548	$	(10,231)
Other comprehensive income (loss)		176		11		16
	$	(3,458)	$	7,559	$	(10,215)

Income (Loss) From Continuing Operations Before Income Taxes



YEAR ENDED
AUGUST 31,		2022		2021		2020
United States	$	21,152	$	6,834	$	3,062
Foreign		912		(759)		(2,266)
	$	22,064	$	6,075	$	796

Differences Between Income Taxes At The Statutory Federal Income Tax Rate And Income Taxes From Continuing Operations



YEAR ENDED
AUGUST 31,	2022		2021		2020
Federal statutory income tax rate	(21.0)	%	(21.0)	%	(21.0)	%
State income taxes, net of federal effect	(3.9)		(1.6)		16.9
Valuation allowance	12.9		173.6		(1,412.9)
Foreign tax credit carryforward
reduction	-		(13.0)		-
Executive stock options	-		7.7		199.9
Foreign jurisdictions tax differential	(1.1)		(4.0)		1.4
Tax differential on income subject
to both U.S. and foreign taxes	(0.2)		(0.7)		11.9
Uncertain tax positions	(0.8)		(3.0)		13.8
Non-deductible executive compensation	(5.5)		(5.8)		(18.2)
Non-deductible meals and entertainment	(0.1)		(0.2)		(22.3)
Other stock-based compensation	2.5		-		-
Payout of deferred compensation (NQDC)	-		-		6.1
Other	0.7		(7.8)		(59.3)
	(16.5)	%	124.2	%	(1,283.7)	%

Significant Components Of Deferred Tax Assets And Liabilities



AUGUST 31,		2022		2021
Deferred income tax assets:
Net operating loss carryforward	$	11,334	$	5,986
Foreign income tax credit
carryforward		4,096		9,466
Sale and financing of corporate
headquarters		2,638		3,307
Stock-based compensation		2,503		2,022
Bonus and other accruals		2,094		2,483
Deferred revenue		1,596		1,075
Inventory and bad debt reserves		1,533		1,551
Other		605		653
Total deferred income tax assets		26,399		26,543
Less: valuation allowance		(1,685)		(4,530)
Net deferred income tax assets		24,714		22,013

Deferred income tax liabilities:
Intangibles step-ups – indefinite lived		(5,478)		(5,461)
Intangibles step-ups – finite lived		(3,186)		(4,008)
Intangible asset impairment and
amortization		(3,851)		(3,537)
Self-constructed tangible assets		(3,811)		-
Deferred commissions		(3,187)		(2,784)
Unremitted earnings of foreign
subsidiaries		(388)		(646)
Property and equipment depreciation		(326)		(1,001)
Total deferred income tax liabilities		(20,227)		(17,437)
Net deferred income taxes	$	4,487	$	4,576

Deferred Income Tax Amounts Recorded On The Consolidated Balance Sheets



AUGUST 31,		2022		2021
Long-term assets	$	4,686	$	4,951
Long-term liabilities		(199)		(375)
Net deferred income tax asset	$	4,487	$	4,576

Summary of Operating Loss Carryforwards



	Loss Carryforward				Loss		Loss		Operating
Loss Carryforward	Expires				Deductions		Deductions		Loss Carried
for Year Ended	August 31,		Amount		in Prior Years		in Current Year		Forward
Acquired NOL - Jhana
December 31, 2015	2034	$	1,491	$	(1,428)	$	-	$	63
December 31, 2016	2035		3,052		-		-		3,052
July 15, 2017	2036		1,117		-		-		1,117
			5,660		(1,428)		-		4,232
Acquired NOL - Strive
December 31, 2018	No Expiration		947		(295)		-		652
December 31, 2019	No Expiration		869		-		-		869
December 31, 2020	No Expiration		1,133		-		-		1,133
April 25, 2021	No Expiration		553		-		-		553
			3,502		(295)		-		3,207

August 31, 2022	No Expiration		30,675		-		-		30,675
		$	39,837	$	(1,723)	$	-	$	38,114

Summary Of Tax Credit Carryforwards



Credit Generated in					Credits Used		Credits		Credits Used		Credits
Fiscal Year Ended	Credit Expires		Credits		in Prior		Reduced in		in Current		Carried
August 31,	August 31,		Generated		Years		Current Year		Year		Forward
2018	2028	$	1,727	$	(967)	$	-	$	-	$	760
2019	2029		1,578		(234)		-		-		1,344
2020	2030		1,010		(147)		-		-		863
2022	2032		1,129		-		-		-		1,129
		$	5,444	$	(1,348)	$	-	$	-	$	4,096

Activity In Deferred Income Tax Asset Valuation Allowance



YEAR ENDED
AUGUST 31,		2022		2021		2020
Beginning balance	$	4,530	$	15,076	$	3,815
Charged to costs and expenses		683		394		11,269
Deductions		(3,528)		(10,940)		(8)
Ending balance	$	1,685	$	4,530	$	15,076

Reconciliation Of The Beginning And Ending Amount Of Gross Unrecognized Tax Benefits



YEAR ENDED
AUGUST 31,		2022		2021		2020
Beginning balance	$	1,594	$	1,640	$	1,895
Additions based on tax positions
related to the current year		77		349		172
Additions for tax positions in
prior years		207		79		10
Reductions for tax positions of prior
years resulting from the lapse of
applicable statute of limitations		-		(188)		(289)
Other reductions for tax positions of
prior years		(281)		(286)		(148)
Ending balance	$	1,597	$	1,594	$	1,640

Tax Years That Remain Subject To Examinations For Major Tax Jurisdictions

2015-2022	Australia, Canada, and Japan
2016-2022	China
2017-2022	Germany, Switzerland, and Austria
2018-2022	United Kingdom, Singapore
2018-2022	United States – state and local income tax
2019-2022	United States – federal income tax

Income (Loss) Per Share (Tables)

12 Months Ended

Aug. 31, 2022

Income (Loss) Per Share [Abstract]

Computation Of Net Income Per Share



YEAR ENDED
AUGUST 31,		2022		2021		2020
Numerator for basic and
diluted earnings per share:
Net income (loss)	$	18,430	$	13,623	$	(9,435)

Denominator for basic and
diluted earnings per share:
Basic weighted average shares
outstanding		14,147		14,090		13,892
Effect of dilutive securities:
Stock options and other
stock-based awards		408		53		-
Diluted weighted average shares
outstanding		14,555		14,143		13,892

EPS Calculations:
Net income (loss) per share:
Basic	$	1.30	$	0.97	$	(0.68)
Diluted		1.27		0.96		(0.68)

Segment Information (Tables)

12 Months Ended

Aug. 31, 2022

Segment Information [Abstract]

Schedule Of Segment Operations



		Sales to
Fiscal Year Ended		External				Adjusted
August 31, 2022		Customers		Gross Profit		EBITDA
Enterprise Division:
Direct offices	$	183,845	$	148,051	$	37,497
International licensees		10,551		9,382		4,964
		194,396		157,433		42,461
Education Division		61,852		41,206		8,408
Corporate and eliminations		6,593		3,273		(8,672)
Consolidated	$	262,841	$	201,912	$	42,197

Fiscal Year Ended
August 31, 2021
Enterprise Division:
Direct offices	$	159,608	$	129,416	$	27,948
International licensees		9,036		7,727		3,586
		168,644		137,143		31,534
Education Division		48,902		32,771		4,818
Corporate and eliminations		6,622		2,988		(8,394)
Consolidated	$	224,168	$	172,902	$	27,958

Fiscal Year Ended
August 31, 2020
Enterprise Division:
Direct offices	$	139,780	$	108,144	$	17,694
International licensees		8,451		6,679		2,406
		148,231		114,823		20,100
Education Division		43,405		27,099		(90)
Corporate and eliminations		6,820		3,448		(5,726)
Consolidated	$	198,456	$	145,370	$	14,284

Reconciliation Of Adjusted EBITDA



YEAR ENDED
AUGUST 31,		2022		2021		2020
Segment Adjusted EBITDA	$	50,869	$	36,352	$	20,010
Corporate expenses		(8,672)		(8,394)		(5,726)
Consolidated Adjusted EBITDA		42,197		27,958		14,284
Stock-based compensation		(8,286)		(8,617)		573
Reduction (increase) in
contingent consideration liabilities		(68)		(193)		49
Restructuring costs		-		-		(1,636)
Gain from insurance settlement		-		150		933
Government COVID assistance		-		299		514
Business acquisition costs		-		(300)		-
Knowledge Capital wind-down costs		-		-		(389)
Depreciation		(4,903)		(6,190)		(6,664)
Amortization		(5,266)		(5,006)		(4,606)
Income from operations		23,674		8,101		3,058
Interest income		65		73		56
Interest expense		(1,675)		(2,099)		(2,318)
Income before income taxes		22,064		6,075		796
Benefit (provision) for income taxes		(3,634)		7,548		(10,231)
Net income (loss)	$	18,430	$	13,623	$	(9,435)

Schedule Of Disaggregation Revenue By Geographic Region



YEAR ENDED
AUGUST 31,		2022		2021		2020
Americas	$	218,863	$	182,954	$	160,989
Asia Pacific		26,835		28,621		25,622
Europe/Middle East/Africa		17,143		12,593		11,845
	$	262,841	$	224,168	$	198,456

Schedule Of Revenue Disaggregate By Activities



Fiscal Year Ended		Services and						Leases and
August 31, 2022		Products		Subscriptions		Royalties		Other		Consolidated
Enterprise Division:
Direct offices	$	93,324	$	88,055	$	2,466	$	-	$	183,845
International licensees		429		1,281		8,841		-		10,551
		93,753		89,336		11,307		-		194,396
Education Division		25,134		34,037		2,681		-		61,852
Corporate and eliminations		-		-		1,194		5,399		6,593
Consolidated	$	118,887	$	123,373	$	15,182	$	5,399	$	262,841

Fiscal Year Ended
August 31, 2021
Enterprise Division:
Direct offices	$	84,111	$	72,789	$	2,708	$	-	$	159,608
International licensees		1,085		-		7,951		-		9,036
		85,196		72,789		10,659		-		168,644
Education Division		19,747		26,742		2,413		-		48,902
Corporate and eliminations		-		-		1,396		5,226		6,622
Consolidated	$	104,943	$	99,531	$	14,468	$	5,226	$	224,168

Fiscal Year Ended
August 31, 2020
Enterprise Division:
Direct offices	$	75,580	$	60,954	$	3,246	$	-	$	139,780
International licensees		1,411		-		7,040		-		8,451
		76,991		60,954		10,286		-		148,231
Education Division		15,107		25,587		2,711		-		43,405
Corporate and eliminations		-		-		1,985		4,835		6,820
Consolidated	$	92,098	$	86,541	$	14,982	$	4,835	$	198,456

Long-Lived Assets By Country



AUGUST 31,		2022		2021
United States/Canada	$	24,179	$	27,038
China		1,375		2,133
Japan		983		1,238
United Kingdom		425		702
Australia		155		160
Germany, Switzerland, and Austria		102		120
Singapore		-		238
	$	27,219	$	31,629

Related Party Transactions (Tables)

12 Months Ended

Aug. 31, 2022

Schedule Of Estimated Fair Values Of Assets Acquired, Liabilities Assumed, and Identifiable Intangible Assets



Cash acquired	$	345
Accounts receivable		154
Prepaid and other current assets		56
Property and equipment		13
Intangible assets		7,976
Goodwill		7,000
Assets acquired		15,544

Deferred revenue		(52)
Accrued liabilities		(135)
Deferred income tax liability		(1,037)
Notes payable, current portion		(835)
Notes payable, less current portion		(2,931)
Liabilities assumed		(4,990)
	$	10,554

Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 60,517	$ 47,417
Capitalized curriculum development spending	2,200
Capitalized development costs	5,000	6,200
Foreign currency transaction gains (losses)	(500)	(100)	$ (100)
Advertising costs	4,800	4,000	3,300
Restructuring charges		$ 1,600	$ 1,636
Remaining accrued restructuring costs	$ 100
Percent likelihood of being realized upon ultimate settlement	50.00%
Held Outside The US By Foreign Subsidiaries [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents	$ 16,900
Covey Trade Name [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Goodwill, impairment loss	$ 0
Minimum [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Capitalized development costs, amortization period	3 years
Maximum [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Capitalized development costs, amortization period	5 years

Nature Of Operations And Summary Of Significant Accounting Policies (Components Of Inventories) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]
Finished goods	$ 3,519	$ 2,468
Raw materials	8	28
Inventories	$ 3,527	$ 2,496

Nature Of Operations And Summary Of Significant Accounting Policies (Components Of Other Current Assets) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Other current assets	$ 14,567	$ 12,863
Deferred Commissions [Member]
Other current assets	12,598	10,991
Other Current Assets [Member]
Other current assets	$ 1,969	$ 1,872

Nature Of Operations And Summary Of Significant Accounting Policies (Useful Life Of Property And Equipment) (Details)	12 Months Ended
	Aug. 31, 2022
Buildings [Member]
Property, Plant and Equipment [Line Items]
Useful life	20 years
Machinery And Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years
Machinery And Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	7 years
Computer Hardware And Software [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Computer Hardware And Software [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years
Furniture, Fixtures, And Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	5 years
Furniture, Fixtures, And Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	7 years

Nature Of Operations And Summary Of Significant Accounting Policies (Property And Equipment) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 67,210	$ 70,839
Less accumulated depreciation	(57,412)	(59,314)
Property and equipment	9,798	11,525
Land And Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,312	1,312
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	30,038	30,059
Machinery And Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	543	915
Computer Hardware And Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	26,030	29,127
Furniture, Fixtures, And Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 9,287	$ 9,426

Nature Of Operations And Summary Of Significant Accounting Policies (Components Of Accrued Liabilities) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Nature Of Operations And Summary Of Significant Accounting Policies [Abstract]
Accrued compensation	$ 20,608	$ 17,955
Other accrued liabilities	13,597	17,025
Accrued liabilities	$ 34,205	$ 34,980

Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Deferred revenue	$ 102.4	$ 88.6
Remaining performance obligations	$ 153.4
Other Long-Term Liabilities [Member]
Deferred revenue		2.7
Minimum [Member]
Receivables collection period	30 days
Maximum [Member]
Receivables collection period	150 days
Direct Sales Commissions [Member]
Capitalized contract cost	$ 13.8	12.1
Direct Sales Commissions [Member] \| Other Current Assets [Member]
Capitalized contract cost	12.6	11.0
Direct Sales Commissions [Member] \| Other Long-Term Liabilities [Member]
Capitalized contract cost	1.2	1.1
Obtain Revenue Contracts [Member]
Capitalized contract cost	18.1
Selling, General, And Administrative Expense [Member]
Capitalized contract cost, amortized	16.4
Subscription Offerings [Member]
Deferred revenue	88.1	77.0
Subscription [Member]
Deferred revenue recognized	$ 123.1	$ 99.5

Acquisition of Strive Talent, Inc. (Narrative) (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 26, 2021	Aug. 31, 2022	Aug. 31, 2021	Dec. 31, 2020	Aug. 31, 2020
Business Acquisition, Contingent Consideration [Line Items]
Selling, general, and administrative		$ 159,783	$ 144,988		$ 129,979
Revenue		262,841	224,168		198,456
Income (loss) from operations		23,674	$ 8,101		$ 3,058
Strive [Member]
Business Acquisition, Contingent Consideration [Line Items]
Aggregate consideration	$ 14,320
Purchase price paid in cash	10,554
Amount in escrow	1,000
Payable in equal cash payments on the first five anniversaries	$ 4,200
Accrues interest, percent	3.60%
Payments to stockholders and option holders	$ 1,000
Revenue				$ 1,300
Income (loss) from operations				$ (1,100)
Acquisition costs		$ 300
Strive [Member] \| Maximum [Member]
Business Acquisition, Contingent Consideration [Line Items]
Aggregate consideration	20,000
Earned by the former principal owner	4,200
Additional contingent payments	$ 5,200

Acquisition of Strive Talent, Inc. (Schedule Of Total Purchase Price) (Details) - Strive [Member] $ in Thousands	Apr. 26, 2021 USD ($)
Business Acquisition [Line Items]
Cash paid at closing	$ 10,554
Notes payable	3,766
Total purchase price	$ 14,320

Acquisition of Strive Talent, Inc. (Schedule Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021	Apr. 26, 2021
Business Acquisition, Contingent Consideration [Line Items]
Goodwill	$ 31,220	$ 31,220
Strive [Member]
Business Acquisition, Contingent Consideration [Line Items]
Cash acquired			$ 345
Accounts receivable			154
Prepaid expenses and other current assets			56
Property and equipment			13
Intangible assets			7,976
Goodwill			7,000
Assets acquired			15,544
Deferred revenue			(52)
Accrued liabilities			(135)
Deferred income tax liability			(1,037)
Notes payable, current portion			(835)
Notes payable, less current portion			(2,931)
Liabilities assumed			(4,990)
Purchase price			$ 10,554

Acquisition of Strive Talent, Inc. (Schedule Of Assets Acquired Amortized Over Weighted Average Life) (Details) - Strive [Member] $ in Thousands	Apr. 26, 2021 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 7,976
Weighted Average Life	7 years
Non-compete Agreements [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 171
Weighted Average Life	2 years
Content [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 389
Weighted Average Life	5 years
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 764
Weighted Average Life	3 years
Tradename [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 889
Weighted Average Life	5 years
Internally Developed Software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amount	$ 5,763
Weighted Average Life	8 years

Accounts Receivables (Activity In Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Accounts Receivable [Abstract]
Beginning balance	$ 4,643	$ 4,159	$ 4,242
Charged to costs and expenses	306	1,553	2,023
Deductions	(457)	(1,069)	(2,106)
Ending balance	$ 4,492	$ 4,643	$ 4,159

Intangible Assets And Goodwill (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020	Apr. 30, 2021	Apr. 26, 2021
Aggregate amortization expense from definite-lived intangible assets	$ 5,300	$ 5,000	$ 4,600
Intangible assets	44,833	50,097
Goodwill	31,220	$ 31,220
Strive [Member]
Intangible assets				$ 8,000
Goodwill					$ 7,000
Strive [Member] \| Direct Office And International Licensee [Member]
Goodwill	$ 7,000

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Intangible Assets And Goodwill (Intangible Assets) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Intangible Assets And Goodwill [Line Items]
Definite-lived intangible assets, gross carrying amount	$ 108,276	$ 108,399
Definite-lived intangible assets, accumulated amortization	(86,443)	(81,302)
Finite-lived intangible assets, net carrying amount	21,833	27,097
Intangible assets, gross carrying amount	131,276	131,399
Intangible assets, accumulated amortization	(86,443)	(81,302)
Intangible assets, net carrying amount	44,833	50,097
Covey Trade Name [Member]
Intangible Assets And Goodwill [Line Items]
Indefinite-lived intangible asset, gross carrying amount	23,000	23,000
Intangible assets, net carrying amount	23,000	23,000
License Rights [Member]
Intangible Assets And Goodwill [Line Items]
Definite-lived intangible assets, gross carrying amount	32,077	32,133
Definite-lived intangible assets, accumulated amortization	(24,401)	(23,036)
Finite-lived intangible assets, net carrying amount	7,676	9,097
Acquired Content [Member]
Intangible Assets And Goodwill [Line Items]
Definite-lived intangible assets, gross carrying amount	49,964	50,003
Definite-lived intangible assets, accumulated amortization	(42,501)	(40,352)
Finite-lived intangible assets, net carrying amount	7,463	9,651
Customer Lists [Member]
Intangible Assets And Goodwill [Line Items]
Definite-lived intangible assets, gross carrying amount	16,140	16,168
Definite-lived intangible assets, accumulated amortization	(15,028)	(14,519)
Finite-lived intangible assets, net carrying amount	1,112	1,649
Acquired Technology [Member]
Intangible Assets And Goodwill [Line Items]
Definite-lived intangible assets, gross carrying amount	7,282	7,282
Definite-lived intangible assets, accumulated amortization	(2,479)	(1,759)
Finite-lived intangible assets, net carrying amount	4,803	5,523
Tradename [Member]
Intangible Assets And Goodwill [Line Items]
Definite-lived intangible assets, gross carrying amount	1,883	1,883
Definite-lived intangible assets, accumulated amortization	(1,231)	(933)
Finite-lived intangible assets, net carrying amount	652	950
Non-Compete Agreements And Other [Member]
Intangible Assets And Goodwill [Line Items]
Definite-lived intangible assets, gross carrying amount	930	930
Definite-lived intangible assets, accumulated amortization	(803)	(703)
Finite-lived intangible assets, net carrying amount	$ 127	$ 227

Intangible Assets And Goodwill (Range Of Remaining Estimated Useful Lives And Weighted-Average Amortization) (Details)	12 Months Ended
	Aug. 31, 2022
License Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Original Amortization Period	26 years
Acquired Content [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Original Amortization Period	24 years
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Original Amortization Period	11 years
Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	7 years
Weighted Average Original Amortization Period	6 years
Tradename [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	4 years
Weighted Average Original Amortization Period	5 years
Non-Compete Agreements And Other [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Original Amortization Period	3 years
Minimum [Member] \| License Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	5 years
Minimum [Member] \| Acquired Content [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	4 years
Minimum [Member] \| Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	2 years
Minimum [Member] \| Non-Compete Agreements And Other [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	1 year
Maximum [Member] \| License Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	7 years
Maximum [Member] \| Acquired Content [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	5 years
Maximum [Member] \| Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	4 years
Maximum [Member] \| Non-Compete Agreements And Other [Member]
Finite-Lived Intangible Assets [Line Items]
Range of Remaining Estimated Useful Lives	5 years

Intangible Assets And Goodwill (Amortization Expense For Intangible Assets Over The Next Five Years) (Details) $ in Thousands	Aug. 31, 2022 USD ($)
Intangible Assets And Goodwill [Abstract]
2023	$ 4,342
2024	4,200
2025	4,029
2026	3,938
2027	$ 3,157

Intangible Assets And Goodwill (Schedule Of Allocated Goodwill To Reportable Operating Segments) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021	Apr. 26, 2021
Goodwill [Line Items]
Goodwill	$ 31,220	$ 31,220
Direct Offices [Member]
Goodwill [Line Items]
Goodwill	22,962	22,962
International Licensees [Member]
Goodwill [Line Items]
Goodwill	5,928	5,928
Education Practice [Member]
Goodwill [Line Items]
Goodwill	$ 2,330	$ 2,330
Strive [Member]
Goodwill [Line Items]
Goodwill			$ 7,000

- Definition

+ References + Details

Notes Payable And Secured Credit Agreement (Narrative) (Details) - USD ($)	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Nov. 30, 2019	Aug. 07, 2019	Aug. 06, 2019
Revolving Line Of Credit [Member] \| 2019 Agreement [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 15,000,000.0
Term Notes [Member]
Debt Instrument [Line Items]
Loan amount					$ 20,000,000.0
Percentage added to LIBOR rate	1.85%
Term Notes [Member] \| 2019 Agreement [Member]
Debt Instrument [Line Items]
Loan amount			$ 5,000,000.0
Interest rate	4.20%	2.40%
Term Notes [Member] \| Maximum [Member] \| 2019 Agreement [Member]
Debt Instrument [Line Items]
Loan amount				$ 25,000,000.0
Term Notes [Member] \| January, April, July, And October [Member]
Debt Instrument [Line Items]
Principal payment	$ 1,250,000
2019 Agreement [Member] \| First Modification Agreement [Member]
Debt Instrument [Line Items]
Percentage added to LIBOR rate	3.00%
2019 Agreement [Member] \| Revolving Line Of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 15,000,000.0
Maturity date	Aug. 07, 2024
Percentage added to LIBOR rate	1.85%
Unused credit commitment fee	0.20%
Line of credit	$ 0	$ 0
2019 Agreement [Member] \| Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 10,000
Strive [Member]
Debt Instrument [Line Items]
Interest rate	3.60%
Strive [Member] \| Strive Note [Member]
Debt Instrument [Line Items]
Principal payment	$ 800,000
Strive [Member] \| Strive Note [Member] \| Second Modification Agreement [Member]
Debt Instrument [Line Items]
Percentage added to LIBOR rate	1.85%
Unused credit commitment fee	0.20%
Maximum asset coverage ratio	150.00%
Limit on capital expenditures	$ 8,000,000.0
Strive [Member] \| Strive Note [Member] \| Minimum [Member] \| Second Modification Agreement [Member]
Debt Instrument [Line Items]
Fixed charge coverage ratio	1.15%
Strive [Member] \| Strive Note [Member] \| Maximum [Member] \| Second Modification Agreement [Member]
Debt Instrument [Line Items]
Maximum funded debt to EBITDAR ratio	3.00

Notes Payable And Secured Credit Agreement (Balances And Classification Of Notes Payable) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Debt Instrument [Line Items]
Current Portion of Notes Payable	$ 5,835	$ 5,835
Notes Payable, less Current Portion	7,268	12,975
Term Notes [Member]
Debt Instrument [Line Items]
Current Portion of Notes Payable	5,000	5,000
Notes Payable, less Current Portion	5,000	10,000
Strive Note [Member]
Debt Instrument [Line Items]
Current Portion of Notes Payable	835	835
Notes Payable, less Current Portion	$ 2,268	$ 2,975

Notes Payable And Secured Credit Agreement (Future Principal Payments By Fiscal Year) (Details) $ in Thousands	Aug. 31, 2022 USD ($)
Debt Instrument [Line Items]
2023	$ 5,835
2024	5,835
2025	835
2026	835
Total	13,340
Term Notes [Member]
Debt Instrument [Line Items]
2023	5,000
2024	5,000
Total	10,000
Strive Note [Member]
Debt Instrument [Line Items]
2023	835
2024	835
2025	835
2026	835
Total	$ 3,340

Financing Obligation (Narrative) (Details) $ in Millions	12 Months Ended
Financing Obligation (Narrative) (Details) $ in Millions	Aug. 31, 2022 USD ($) item
Financing Obligation [Abstract]
Term of master lease agreement	20 years
Number of renewal options \| item	6
Renewal term	5 years
Remaining lease term	50 years
Difference between the carrying value and the present value of the financing obligation \| $	$ 1.3

Financing Obligation (Financing Obligation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021
Financing Obligation [Abstract]
Financing obligation	$ 11,161	$ 14,048
Less current portion	(3,199)	(2,887)
Financing obligation, less current portion	7,962	$ 11,161
Monthly payment of financing obligation	$ 328
Annual increase to base payment	2.00%
Imputed interest	7.70%
Expiration date	June 2025

Financing Obligation (Future Principal Maturities) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Financing Obligation [Abstract]
2023	$ 3,199
2024	3,538
2025	4,424
Thereafter
Financing obligation	$ 11,161	$ 14,048

Financing Obligation (Future Minimum Payments Under The Financing Obligation) (Details) $ in Thousands	Aug. 31, 2022 USD ($)
Financing Obligation [Abstract]
2023	$ 3,952
2024	4,031
2025	3,301
Thereafter
Total future minimum financing obligation payments	11,284
Less interest	1,435
Present value of future minimum financing obligation payments	$ 9,849

Leases (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Millions	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Lessee, Lease, Description [Line Items]
Lease expense associated with operating leases	$ 1.5	$ 1.6	$ 1.5
Right-of-use operating lease assets obtained in exchange for operating lease liabilities	0.3
Sublease revenue	$ 3.9	$ 4.0	$ 3.9
Minimum [Member]
Lessee, Lease, Description [Line Items]
Remaining operating lease term	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Remaining operating lease term	3 years
Corporate Campus [Member]
Lessee, Lease, Description [Line Items]
Cost basis	$ 36.0
Carrying value	$ 3.7

Leases (Assets And Liabilities Related To Operating Leases) (Details) $ in Thousands	Aug. 31, 2022 USD ($)
Assets:
Operating lease right of use assets	$ 1,114
Liabilities:
Current: Operating lease liabilities	598
Long-Term: Operating lease liabilities	516
Operating lease liabilities	$ 1,114
Weighted Average Remaining Lease Term: Operating leases (years)	2 years
Weighted Average Discount Rate: Operating leases	4.10%

Leases (Future Minimum Lease Payments Under Operating Leases) (Details) $ in Thousands	Aug. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 633
2024	422
2025	97
2026	13
2027
Thereafter
Total operating lease payments	1,165
Less imputed interest	(51)
Present value of operating lease liabilities	$ 1,114

Leases (Future Minimum Lease Payments From Sublease) (Details) $ in Thousands	Aug. 31, 2022 USD ($)
Operating Leases [Abstract]
2023	$ 2,643
2024	2,124
2025	1,751
2026
Thereafter
Total	$ 6,518

Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands		12 Months Ended
	Oct. 01, 2020	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
HPE outsourcing contract, fixed charge per month	$ 90
HPE outsourcing contract, expiration date		Sep. 30, 2022
Warehousing contract extension period		1 year
HPE outsourcing contract, expense		$ 2,500	$ 2,100	$ 2,100
Cost of sales		60,929	51,266	53,086
Purchase commitments		2,600
Amount of letters of credit		10
Amount drawn on letters of credit		0	0
Cargo And Freight [Member]
Cost of sales		$ 1,700	$ 1,400	$ 1,300

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Shareholders' Equity (Narrative) (Details) - USD ($) $ in Millions		12 Months Ended
	Nov. 15, 2019	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Class of Stock [Line Items]
Shares of preferred stock authorized for issuance		14,000,000.0
Preferred stock issued		0	0
Preferred stock outstanding		0	0
Shares withheld for tax		86,125
Shares withheld for tax, fair value		$ 3.5
Number of shares purchased		499,411
Number of shares withheld for minimum statutory taxes				109,896
Values of shares withheld for minimum statutory taxes				$ 3.7
Stock repurchased during period, shares	40,000,000.0
Common Stock [Member]
Class of Stock [Line Items]
Shares withheld for tax			147,092
Shares withheld for tax, fair value			$ 3.0
Treasury Stock Open Market Purchases [Member]
Class of Stock [Line Items]
Purchase of treasury shares		$ 20.3

Shareholders' Equity (Schedule Of Purchases Of Common Stock) (Details) $ in Millions	12 Months Ended
	Aug. 31, 2022 USD ($)
Shareholders' Equity [Abstract]
Shares withheld for taxes on stock-based compensation awards	$ 3.5

Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021	Jul. 11, 2017
Jhana [Member]
Contingent consideration	$ 729	$ 2,095	$ 7,200

Fair Value Of Financial Instruments (Schedule Of Contingent Consideration Liability) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Business Acquisition, Contingent Consideration [Line Items]
Change in fair value	$ 68	$ 193	$ (49)
Jhana [Member]
Business Acquisition, Contingent Consideration [Line Items]
Balance at beginning	2,095
Change in fair value	68
Payments	(1,434)
Balance at ending	$ 729	$ 2,095

Stock-Based Compensation Plans (Narrative) (Details) $ in Thousands						12 Months Ended
	Feb. 04, 2022 shares	Jan. 14, 2022 shares	Oct. 02, 2020 USD ($) shares	Oct. 18, 2019 item shares	Oct. 01, 2018 item shares	Aug. 31, 2022 USD ($) item shares	Aug. 31, 2021 USD ($) item shares	Aug. 31, 2020 USD ($) item shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued from treasury stock \| shares						272,060
Shares withheld for tax \| shares						86,125
Shares withheld for tax, fair value						$ 3,500
Capitalized stock-based compensation expense						0
Stock-based compensation						$ 8,286	$ 8,617	$ (573)
Fiscal 2022 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| item						2
Fiscal 2021 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| item							2
Fiscal 2021 Acquisition Of Strive Talent Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation						$ 800
Fiscal 2021 Acquisition Of Strive Talent Plan [Member] \| Bonus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period						18 months
Compensation						$ 1,000
Maximum [Member] \| Fiscal 2021 Acquisition Of Strive Talent Plan [Member] \| Bonus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation						100
Former Principal Owner [Member] \| Fiscal 2021 Acquisition Of Strive Talent Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation						$ 4,200
Trading days						15 days
Shares required to be distributed within, days						45 days
Common Stock [Member] \| 2022 Omnibus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for payment of consideration \| shares						200,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options exercised \| shares							218,750	350,000
Shares withheld for tax \| shares							51,738	102,656
Shares withheld for tax, fair value							$ 1,300	$ 3,600
Intrinsic value of the exercised options							2,900	8,000
Income tax benefit from exercise of the options							700	1,800
Income tax benefit upon exercise of the options							500
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense						$ 200
Whole-share grant per eligible director						$ 110
Vesting period of awards						1 year
Cost of common stock issued from treasury						$ 200	400	300
Weighted-average vesting period for recognition						4 months
Total recognized tax benefit from unvested stock awards						$ 200	200	200
Intrinsic value of unvested stock awards						600
Stock-based compensation						673	700	700
Restricted Stock Awards [Member] \| Board Of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares awarded						$ 700	$ 700	$ 700
Shares issued under terms of the award \| shares						13,260	28,049	21,420
Performance-Based Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period			2 years
Increase Adjusted EBITDA vesting target			$ 2,000
Unrecognized compensation expense						$ 10,600
Number of individuals who qualified for award \| item						3	4	4
Stock-based compensation						$ 6,133	$ 7,298	$ (1,518)
Performance-Based Award [Member] \| 2022 Omnibus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized additional shares of common stock for issuance \| shares		1,000,000
Shares available for future grants \| shares						838,000
Performance-Based Award [Member] \| Fiscal 2022 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards	3 years
Performance-Based Award [Member] \| Fiscal 2021 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards			3 years
Performance-Based Award [Member] \| Fiscal 2020 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares may be awarded \| shares				25,101
Increase Adjusted EBITDA vesting target						$ 2,000
Shares authorized to be issued \| shares				150,630
Number of tranches \| item				3
Life of awards				3 years
Expiration date						Aug. 31, 2024
Percent of shares plan participants are entitled to				25.00%
Vesting period of awards				3 years
Performance-Based Award [Member] \| Fiscal 2019 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares may be awarded \| shares					36,470
Service period						2 years
Increase Adjusted EBITDA vesting target						$ 2,000
Shares authorized to be issued \| shares					218,818
Number of tranches \| item					3
Life of awards					3 years
Expiration date						Aug. 31, 2023
Percent of shares plan participants are entitled to					25.00%
Vesting period of awards					3 years
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 \| shares						36,960	51,581	41,409
Cost basis of shares issued to employee stock purchase plan participants						$ 600	$ 800	$ 600
Proceeds from ESPP participants						1,300	1,100	1,000
Stock-based compensation						$ 239	$ 205	$ 185
Employee Stock Purchase Plan [Member] \| 2017 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares remaining in employee stock purchase plan \| shares						773,000
Tranche One [Member] \| Time-Based Award [Member] \| Fiscal 2022 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of award shares vest	25.00%
Shares issued under terms of the award \| shares	24,649
Tranche One [Member] \| Time-Based Award [Member] \| Fiscal 2021 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of award shares vest			25.00%
Shares issued under terms of the award \| shares			52,696
Tranche Two and Three [Member] \| Performance-Based Award [Member] \| Fiscal 2022 Long Term Incentive Plan Award [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 \| shares	73,929
Tranche Two and Three [Member] \| Performance-Based Award [Member] \| Fiscal 2021 Long Term Incentive Plan Award [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 \| shares			158,088
Tranche Two and Three [Member] \| Performance-Based Award [Member] \| Minimum [Member] \| Fiscal 2022 Long Term Incentive Plan Award [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] \| Minimum [Member] \| Fiscal 2021 Long Term Incentive Plan Award [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] \| Minimum [Member] \| Fiscal 2020 Long Term Incentive Plan Award [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] \| Minimum [Member] \| Fiscal 2019 Long Term Incentive Plan Award [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 2022 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance award to be granted	200.00%
Shares may be awarded \| shares	147,858
Tranche Two and Three [Member] \| Performance-Based Award [Member] \| Maximum [Member] \| Fiscal 2021 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance award to be granted			200.00%
Shares may be awarded \| shares			316,176
Tranche Two and Three [Member] \| Performance-Based Award [Member] \| Maximum [Member] \| Fiscal 2020 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance award to be granted				200.00%
Tranche Two and Three [Member] \| Performance-Based Award [Member] \| Maximum [Member] \| Fiscal 2019 Long Term Incentive Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance award to be granted					200.00%

Stock-Based Compensation Plans (Total Cost Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 8,286	$ 8,617	$ (573)
Performance-Based Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	6,133	7,298	(1,518)
Strive Acquisition Compensation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	1,196	354
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	673	700	700
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	239	205	185
Fully-Vested Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 45	$ 60	$ 60

Stock-Based Compensation Plans (Restricted Stock Award Activity) (Details) - Restricted Stock Awards [Member]	12 Months Ended
	Aug. 31, 2022 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards at August 31, 2021, Number of Shares \| shares	28,049
Granted, Number of Shares \| shares	13,260
Forfeited, Number of Shares \| shares
Vested, Number of Shares \| shares	(28,049)
Restricted stock awards at August 31, 2022, Number of Shares \| shares	13,260
Restricted stock awards at August 31, 2021, Weighted-Average Grant Date Fair Value Per Share \| $ / shares	$ 24.96
Granted, Weighted-Average Grant Date Fair Value Per Share \| $ / shares	49.78
Forfeited, Weighted-Average Grant Date Fair Value Per Share \| $ / shares
Vested, Weighted-Average Grant Date Fair Value Per Share \| $ / shares	24.96
Restricted stock awards at August 31, 2022, Weighted-Average Grant Date Fair Value Per Share \| $ / shares	$ 49.78

Stock-Based Compensation Plans (Stock Option Activity) (Details) - shares	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Stock Options [Member]
Number of Stock Options, Exercised	(218,750)	(350,000)

Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Employee Benefit Plans [Abstract]
Maximum percent of gross wages employees may contribute	75.00%
Matching contributions	$ 2.7	$ 2.5	$ 2.3

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Income Taxes [Line Items]
Benefit (provision) for income taxes	$ (3,634)	$ 7,548	$ (10,231)
Income before income taxes	22,064	$ 6,075	$ 796
Effective income tax benefit rate		124.20%
Tax expense for non-deductible executive compensation	$ 1,200
Income tax rate	16.50%	(124.20%)	1283.70%
Effective tax rate	21.00%	21.00%	21.00%
Additional tax expense from increase in valuation allowance against deferred income tax assets			$ 11,300
GILTI tax expense		$ 0	0	$ 300
GILTI tax benefit		300
Operating loss carryforwards	$ 38,114
Reduced the valuation allowance by	2,845	10,546	(11,261)
Total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate	1,300	1,300
Increase (decrease) in income tax expense due to interest and penalties related to uncertain tax positions	100
Unrecognized tax benefits	1,597	1,594	$ 1,640	$ 1,895
Balance of interest and penalties related to uncertain tax positions	300	200
Stock-Based Compensation Deductions [Member]
Income Taxes [Line Items]
Benefit (provision) for income taxes	600
United States – State And Local Income Tax [Member]
Income Taxes [Line Items]
Operating loss carryforwards	$ 1,600
Foreign Tax Authority [Member]
Income Taxes [Line Items]
Operating loss carryforwards		$ 800

Income Taxes (Benefit (Provision) For Income Taxes From Continuing Operations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Income Taxes [Abstract]
Current, Federal			$ (15)
Current, State	$ (1,221)	$ (286)	(87)
Current, Foreign	(2,202)	(1,773)	(1,145)
Current	(3,423)	(2,059)	(1,247)
Deferred, Federal	(9,339)	2,869	2,306
Deferred, State	(889)	13	98
Deferred, Foreign	24	24	(77)
Operating loss carryforward	7,150	(3,058)	(50)
Valuation allowance	2,845	10,546	(11,261)
Foreign tax credit carryforward reduction	(2)	(787)
Deferred	(211)	9,607	(8,984)
Provision (benefit) for income taxes from continuing operations	$ (3,634)	$ 7,548	$ (10,231)

Income Taxes (Allocation Of Total Income Tax Provision(Benefit)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Income Taxes [Abstract]
Net income (loss)	$ (3,634)	$ 7,548	$ (10,231)
Other comprehensive income (loss)	176	11	16
Total income tax provision (benefit)	$ (3,458)	$ 7,559	$ (10,215)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

- Definition

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

+ References

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+ Details

Income Taxes (Income (Loss) From Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Income Taxes [Abstract]
United States	$ 21,152	$ 6,834	$ 3,062
Foreign	912	(759)	(2,266)
Income before income taxes	$ 22,064	$ 6,075	$ 796

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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+ Details

Income Taxes (Differences Between Income Taxes At The Statutory Federal Income Tax Rate And Income Taxes From Continuing Operations) (Details)	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Income Taxes [Abstract]
Federal statutory income tax rate	(21.00%)	(21.00%)	(21.00%)
State income taxes, net of federal effect	(3.90%)	(1.60%)	16.90%
Valuation allowance	12.90%	173.60%	(1412.90%)
Foreign tax credit carryforward reduction		(13.00%)
Executive stock options		7.70%	199.90%
Foreign jurisdictions tax differential	(1.10%)	(4.00%)	1.40%
Tax differential on income subject to both U.S. and foreign taxes	(0.20%)	(0.70%)	11.90%
Uncertain tax positions	(0.80%)	(3.00%)	13.80%
Non-deductible executive compensation	(5.50%)	(5.80%)	(18.20%)
Non-deductible meals and entertainment	(0.10%)	(0.20%)	(22.30%)
Other stock-based compensation	2.50%
Payout of deferred compensation (NQDC)			6.10%
Other	0.70%	(7.80%)	(59.30%)
Income tax rate	(16.50%)	124.20%	(1283.70%)

Income Taxes (Significant Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020	Aug. 31, 2019
Income Taxes [Abstract]
Net operating loss carryforward	$ 11,334	$ 5,986
Foreign income tax credit carryforward	4,096	9,466
Sale and financing of corporate headquarters	2,638	3,307
Stock-based compensation	2,503	2,022
Bonus and other accruals	2,094	2,483
Deferred revenue	1,596	1,075
Inventory and bad debt reserves	1,533	1,551
Other	605	653
Total deferred income tax assets	26,399	26,543
Less: valuation allowance	(1,685)	(4,530)	$ (15,076)	$ (3,815)
Net deferred income tax assets	24,714	22,013
Intangibles step-ups - indefinite lived	(5,478)	(5,461)
Intangibles step-ups - finite lived	(3,186)	(4,008)
Intangible asset impairment and amortization	(3,851)	(3,537)
Self-constructed tangible assets	(3,811)
Deferred commissions	(3,187)	(2,784)
Property and equipment depreciation	(326)	(1,001)
Unremitted earnings of foreign subsidiaries	(388)	(646)
Total deferred income tax liabilities	(20,227)	(17,437)
Net deferred income tax asset	$ 4,487	$ 4,576

Income Taxes (Deferred Income Tax Amounts Recorded On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Income Taxes [Abstract]
Long-term assets	$ 4,686	$ 4,951
Long-term liabilities	(199)	(375)
Net deferred income tax asset	$ 4,487	$ 4,576

Income Taxes (Summary of Operating Loss Carryforwards) (Details) $ in Thousands	12 Months Ended
	Aug. 31, 2022 USD ($)
Operating Loss Carryforwards [Line Items]
Amount	$ 39,837
Loss Deductions in Prior Years	(1,723)
Operating Loss Carried Forward	$ 38,114
Acquired NOL - Jhana [Member]
Operating Loss Carryforwards [Line Items]
Loss Carryforward Expires	Aug. 31, 2037
Amount	$ 5,660
Loss Deductions in Prior Years	(1,428)
Operating Loss Carried Forward	4,232
Acquired NOL - Strive [Member]
Operating Loss Carryforwards [Line Items]
Amount	3,502
Loss Deductions in Prior Years	(295)
Operating Loss Carried Forward	$ 3,207
Tax Year 2015 [Member] \| Acquired NOL - Jhana [Member]
Operating Loss Carryforwards [Line Items]
Loss Carryforward Expires	Aug. 31, 2034
Amount	$ 1,491
Loss Deductions in Prior Years	(1,428)
Operating Loss Carried Forward	$ 63
Tax Year 2016 [Member] \| Acquired NOL - Jhana [Member]
Operating Loss Carryforwards [Line Items]
Loss Carryforward Expires	Aug. 31, 2035
Amount	$ 3,052
Loss Deductions in Prior Years
Operating Loss Carried Forward	$ 3,052
July 15, 2017 [Member] \| Acquired NOL - Jhana [Member]
Operating Loss Carryforwards [Line Items]
Loss Carryforward Expires	Aug. 31, 2036
Amount	$ 1,117
Loss Deductions in Prior Years
Operating Loss Carried Forward	$ 1,117
Tax Year 2018 [Member] \| Acquired NOL - Strive [Member]
Operating Loss Carryforwards [Line Items]
Loss Carryforward Expires	No Expiration
Amount	$ 947
Loss Deductions in Prior Years	(295)
Operating Loss Carried Forward	$ 652
Tax Year 2019 [Member] \| Acquired NOL - Strive [Member]
Operating Loss Carryforwards [Line Items]
Loss Carryforward Expires	No Expiration
Amount	$ 869
Loss Deductions in Prior Years
Operating Loss Carried Forward	$ 869
Tax Year 2020 [Member] \| Acquired NOL - Strive [Member]
Operating Loss Carryforwards [Line Items]
Loss Carryforward Expires	No Expiration
Amount	$ 1,133
Loss Deductions in Prior Years
Operating Loss Carried Forward	$ 1,133
April 25, 2021 [Member] \| Acquired NOL - Strive [Member]
Operating Loss Carryforwards [Line Items]
Loss Carryforward Expires	No Expiration
Amount	$ 553
Loss Deductions in Prior Years
Operating Loss Carried Forward	$ 553
August 31, 2022 [Member] \| Acquired NOL - Strive [Member]
Operating Loss Carryforwards [Line Items]
Loss Carryforward Expires	No Expiration
Amount	$ 30,675
Loss Deductions in Prior Years
Operating Loss Carried Forward	$ 30,675

Income Taxes (Summary Of Tax Credit Carryforwards) (Details) $ in Thousands	12 Months Ended
	Aug. 31, 2022 USD ($)
Tax Credit Carryforward [Line Items]
Credits Generated	$ 5,444
Credits Used in Prior Years	(1,348)
Credits Reduced in Current Year
Credits Used in Current Year
Credits Carried Forward	$ 4,096
Tax Year 2018 [Member]
Tax Credit Carryforward [Line Items]
Credit Generated in Fiscal Year Ended	Aug. 31, 2018
Credit Expires	Aug. 31, 2028
Credits Generated	$ 1,727
Credits Used in Prior Years	(967)
Credits Reduced in Current Year
Credits Used in Current Year
Credits Carried Forward	$ 760
Tax Year 2019 [Member]
Tax Credit Carryforward [Line Items]
Credit Generated in Fiscal Year Ended	Aug. 31, 2019
Credit Expires	Aug. 31, 2029
Credits Generated	$ 1,578
Credits Used in Prior Years	(234)
Credits Reduced in Current Year
Credits Used in Current Year
Credits Carried Forward	$ 1,344
Tax Year 2020 [Member]
Tax Credit Carryforward [Line Items]
Credit Generated in Fiscal Year Ended	Aug. 31, 2020
Credit Expires	Aug. 31, 2030
Credits Generated	$ 1,010
Credits Used in Prior Years	(147)
Credits Reduced in Current Year
Credits Used in Current Year
Credits Carried Forward	$ 863
Tax Year 2022 [Member]
Tax Credit Carryforward [Line Items]
Credit Generated in Fiscal Year Ended	Aug. 31, 2022
Credit Expires	Aug. 31, 2032
Credits Generated	$ 1,129
Credits Used in Prior Years
Credits Reduced in Current Year
Credits Used in Current Year
Credits Carried Forward	$ 1,129

Income Taxes (Activity In Deferred Income Tax Asset Valuation Allowance) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Income Taxes [Abstract]
Beginning balance	$ 4,530	$ 15,076	$ 3,815
Charged to costs and expenses	683	394	11,269
Deductions	(3,528)	(10,940)	(8)
Ending balance	$ 1,685	$ 4,530	$ 15,076

Income Taxes (Reconciliation Of The Beginning And Ending Amount Of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Income Taxes [Abstract]
Beginning balance	$ 1,594	$ 1,640	$ 1,895
Additions based on tax positions related to the current year	77	349	172
Additions for tax positions in prior years	207	79	10
Reductions for tax positions of prior years resulting from the lapse of applicable statute of limitations		(188)	(289)
Other reductions for tax positions of prior years	(281)	(286)	(148)
Ending balance	$ 1,597	$ 1,594	$ 1,640

Income Taxes (Tax Years That Remain Subject To Examinations For Major Tax Jurisdictions) (Details)	12 Months Ended
	Aug. 31, 2022
Australia, Canada, And Japan [Member] \| Minimum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations
Australia, Canada, And Japan [Member] \| Maximum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations
Germany, Switzerland, And Austria [Member] \| Minimum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2017
Germany, Switzerland, And Austria [Member] \| Maximum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2022
China [Member] \| Minimum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2016
China [Member] \| Maximum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2022
United Kingdom And Singapore [Member] \| Minimum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2018
United Kingdom And Singapore [Member] \| Maximum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2022
United States – State And Local Income Tax [Member] \| Minimum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2018
United States – State And Local Income Tax [Member] \| Maximum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2022
United States – Federal Income Tax [Member] \| Minimum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2019
United States – Federal Income Tax [Member] \| Maximum [Member]
Income Taxes [Line Items]
Tax years that remain subject to examinations	2022

Income (Loss) Per Share (Computation Of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Numerator for basic and diluted loss per share:
Net income (loss)	$ 18,430	$ 13,623	$ (9,435)
Denominator for basic and diluted loss per share:
Basic weighted average shares outstanding	14,147	14,090	13,892
Effect of dilutive securities:
Other stock-based awards	408	53
Diluted weighted average shares outstanding	14,555	14,143	13,892
EPS Calculations:
Net income per share: Basic	$ 1.30	$ 0.97	$ (0.68)
Net income per share: Diluted	$ 1.27	$ 0.96	$ (0.68)

Segment Information (Narrative) (Details)	12 Months Ended
Segment Information (Narrative) (Details)	Aug. 31, 2022 segment
Segment Information [Abstract]
Number of operating reportable segments	3
Number of corporate services group	1

Segment Information (Schedule Of Segment Operations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Segment Reporting Information [Line Items]
Sales to External Customers	$ 262,841	$ 224,168	$ 198,456
Gross Profit	201,912	172,902	145,370
Adjusted EBITDA	42,197	27,958	14,284
Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	50,869	36,352	20,010
Operating Segments [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	194,396	168,644	148,231
Gross Profit	157,433	137,143	114,823
Adjusted EBITDA	42,461	31,534	20,100
Operating Segments [Member] \| Education Practice [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	61,852	48,902	43,405
Gross Profit	41,206	32,771	27,099
Adjusted EBITDA	8,408	4,818	(90)
Operating Segments [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	183,845	159,608	139,780
Gross Profit	148,051	129,416	108,144
Adjusted EBITDA	37,497	27,948	17,694
Operating Segments [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	10,551	9,036	8,451
Gross Profit	9,382	7,727	6,679
Adjusted EBITDA	4,964	3,586	2,406
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	6,593	6,622	6,820
Gross Profit	3,273	2,988	3,448
Adjusted EBITDA	$ (8,672)	$ (8,394)	$ (5,726)

Segment Information (Reconciliation Of Adjusted EBITDA) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	$ 42,197	$ 27,958	$ 14,284
Stock-based compensation	(8,286)	(8,617)	573
Increase in the fair value of contingent consideration liabilities	(68)	(193)	49
Restructuring costs		(1,600)	(1,636)
Business acquisition costs		(300)
Government COVID-19 assistance		299	514
Gain from insurance settlement		150	933
Knowledge Capital wind-down costs			(389)
Depreciation	(4,903)	(6,190)	(6,664)
Amortization	(5,266)	(5,006)	(4,606)
Income from operations	23,674	8,101	3,058
Interest income	65	73	56
Interest expense	(1,675)	(2,099)	(2,318)
Income before income taxes	22,064	6,075	796
Benefit (provision) for income taxes	(3,634)	7,548	(10,231)
Net income (loss)	18,430	13,623	(9,435)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	50,869	36,352	20,010
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	$ (8,672)	$ (8,394)	$ (5,726)

Segment Information (Schedule Of Revenue Disaggregated By Geographic Region) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 262,841	$ 224,168	$ 198,456
Americas [Member]
Disaggregation of Revenue [Line Items]
Revenue	218,863	182,954	160,989
Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Revenue	26,835	28,621	25,622
Europe/Middle East/Africa [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 17,143	$ 12,593	$ 11,845

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Segment Information (Schedule Of Revenue Disaggregated By Type Of Service) (Details) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 262,841	$ 224,168	$ 198,456
Services And Products [Member]
Disaggregation of Revenue [Line Items]
Revenue	118,887	104,943	92,098
Subscriptions [Member]
Disaggregation of Revenue [Line Items]
Revenue	123,373	99,531	86,541
Royalties [Member]
Disaggregation of Revenue [Line Items]
Revenue	15,182	14,468	14,982
Leases And Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	5,399	5,226	4,835
Operating Segments [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	194,396	168,644	148,231
Operating Segments [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	61,852	48,902	43,405
Operating Segments [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	183,845	159,608	139,780
Operating Segments [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	10,551	9,036	8,451
Operating Segments [Member] \| Services And Products [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	93,753	85,196	76,991
Operating Segments [Member] \| Services And Products [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	25,134	19,747	15,107
Operating Segments [Member] \| Services And Products [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	93,324	84,111	75,580
Operating Segments [Member] \| Services And Products [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	429	1,085	1,411
Operating Segments [Member] \| Subscriptions [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	89,336	72,789	60,954
Operating Segments [Member] \| Subscriptions [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	34,037	26,742	25,587
Operating Segments [Member] \| Subscriptions [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	88,055	72,789	60,954
Operating Segments [Member] \| Subscriptions [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,281
Operating Segments [Member] \| Royalties [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	11,307	10,659	10,286
Operating Segments [Member] \| Royalties [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,681	2,413	2,711
Operating Segments [Member] \| Royalties [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,466	2,708	3,246
Operating Segments [Member] \| Royalties [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	8,841	7,951	7,040
Corporate And Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	6,593	6,622	6,820
Corporate And Eliminations [Member] \| Royalties [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,194	1,396	1,985
Corporate And Eliminations [Member] \| Leases And Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 5,399	$ 5,226	$ 4,835

Segment Information (Long-Lived Assets By Country) (Details) - USD ($) $ in Thousands	Aug. 31, 2022	Aug. 31, 2021
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 27,219	$ 31,629
United States/Canada [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	24,179	27,038
China [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	1,375	2,133
Japan [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	983	1,238
United Kingdom [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	425	702
Australia [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	155	160
Germany, Switzerland, And Austria [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 102	120
Singapore [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets		$ 238

Related Party Transactions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions			1 Months Ended	12 Months Ended
	Dec. 09, 2019	Nov. 04, 2019	Dec. 31, 2019	Aug. 31, 2022	Aug. 31, 2021	Aug. 31, 2020
Related Party Transaction [Line Items]
Shares purchased						5,000
Minimum royalties		$ 1.3
Receivable from related party		3.2
Note receivable		$ 2.6
License Contract [Member]
Related Party Transaction [Line Items]
License period		30 years
Capitalized contract cost		$ 3.2
FC Organizational Products [Member]
Related Party Transaction [Line Items]
Percent ownership interest in related party				19.50%
Knowledge Capital [Member]
Related Party Transaction [Line Items]
Shares held by related party			2,800,000
Shares purchased	284,608					284,608
Price per share	$ 35.1361
Aggregate purchase price	$ 10.1
FPC [Member]
Related Party Transaction [Line Items]
Royalty revenue				$ 1.2	$ 1.4	$ 2.0
Receivable from related party				1.7	1.8
Cash from related party				2.0	1.5
Stephen M.R. Covey [Member] \| Intellectual Property [Member]
Related Party Transaction [Line Items]
Royalty payments				1.8	1.5	1.6
Son Of The Former Vice-Chairman Of The Board Of Directors [Member] \| Speaking Fees [Member]
Related Party Transaction [Line Items]
Royalty payments				0.8	0.6	0.8
Accrued royalties payable				0.3	0.2
Son Of The Former Vice-Chairman Of The Board Of Directors [Member] \| Sales Of Books [Member]
Related Party Transaction [Line Items]
Royalty payments				0.1	0.1	$ 0.1
Brother Of Member Of Executive Management Team [Member]
Related Party Transaction [Line Items]
Payable to FCOP				$ 0.3	$ 0.8