Franklin Covey (FC) 10-Q 9 Jan 20 2020 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Nov. 30, 2019	Dec. 31, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Nov. 30, 2019
Amendment Flag	false
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity File Number	1-11107
Entity Registrant Name	FRANKLIN COVEY CO
Entity Central Index Key	0000886206
Current Fiscal Year End Date	--08-31
Entity Tax Identification Number	870401551
Entity Address, Address Line One	2200 West Parkway Boulevard
Entity Address, City or Town	Salt Lake City
Entity Address, State or Province	Utah
Entity Address, Postal Zip Code	84119-2099
City Area Code	801
Local Phone Number	817-1776
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,830,256

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Nov. 30, 2019	Aug. 31, 2019
Current assets:
Cash and cash equivalents	$ 32,761	$ 27,699
Accounts receivable, less allowance for doubtful accounts of $4,570 and $4,242	53,195	73,227
Inventories	3,155	3,481
Prepaid expenses and other current assets	14,092	14,933
Total current assets	103,203	119,340
Property and equipment, net	18,181	18,579
Intangible assets, net	46,519	47,690
Goodwill	24,220	24,220
Deferred income tax assets	5,158	5,045
Other long-term assets	14,010	10,039
Total assets	211,291	224,913
Current liabilities:
Current portion of term notes payable	5,000	5,000
Current portion of financing obligation	2,399	2,335
Accounts payable	6,970	9,668
Deferred subscription revenue	45,987	56,250
Other deferred revenue	6,674	5,972
Accrued liabilities	16,976	24,319
Total current liabilities	84,006	103,544
Term notes payable, less current portion	18,750	15,000
Financing obligation, less current portion	16,020	16,648
Other liabilities	8,800	7,527
Deferred income tax liabilities	180	180
Total liabilities	127,756	142,899
Shareholders' equity:
Common stock, $.05 par value; 40,000 shares authorized, 27,056 shares issued	1,353	1,353
Additional paid-in capital	217,946	215,964
Retained earnings	58,859	59,403
Accumulated other comprehensive income	232	269
Treasury stock at cost, 13,078 shares and 13,087 shares	(194,855)	(194,975)
Total shareholders' equity	83,535	82,014
Total liabilities and shareholders' equity	$ 211,291	$ 224,913

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Nov. 30, 2019	Aug. 31, 2019
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 4,570	$ 4,242
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	27,056,000	27,056,000
Treasury stock, shares	13,078,000	13,087,000

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Loss [Abstract]
Net sales	$ 58,613	$ 53,829
Cost of sales	16,584	17,046
Gross profit	42,029	36,783
Selling, general, and administrative	39,399	34,644
Depreciation	1,619	1,554
Amortization	1,170	1,238
Loss from operations	(159)	(653)
Interest income	5	28
Interest expense	(606)	(632)
Loss before income taxes	(760)	(1,257)
Income tax benefit (provision)	216	(100)
Net loss	$ (544)	$ (1,357)
Net loss per share:
Basic and diluted	$ (0.04)	$ (0.10)
Weighted average number of common shares:
Basic and diluted	13,982	13,917
COMPREHENSIVE LOSS
Net loss	$ (544)	$ (1,357)
Foreign currency translation adjustments, net of income tax benefit of $- and $11	(37)	(309)
Comprehensive loss	$ (581)	$ (1,666)

Condensed Consolidated Statem_2

Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Loss [Abstract]
Foreign currency translation adjustments, tax		$ 11

Condensed Consolidated Statem_3

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (544)	$ (1,357)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	2,789	2,792
Amortization of capitalized curriculum costs	1,029	1,431
Stock-based compensation expense	1,851	946
Deferred income taxes	(115)	(645)
Change in fair value of contingent consideration liabilities	91	24
Loss on disposal of assets	35
Changes in assets and liabilities:
Decrease in accounts receivable, net	20,090	16,096
Decrease in inventories	328	233
Decrease in prepaid expenses and other assets	656	847
Decrease in accounts payable and accrued liabilities	(9,333)	(5,098)
Decrease in deferred revenue	(9,006)	(7,586)
Increase (decrease) in income taxes payable/receivable	(1,029)	503
Decrease in other long-term liabilities	(6)	(52)
Net cash provided by operating activities	6,836	8,134
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(1,408)	(1,431)
Curriculum development costs	(458)	(689)
Purchase of note receivable from bank (Note 11)	(2,600)
Net cash used for investing activities	(4,466)	(2,120)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit borrowings		22,684
Payments on line of credit borrowings		(25,513)
Proceeds from term notes payable financing	5,000
Principal payments on term notes payable	(1,250)	(1,563)
Principal payments on financing obligation	(564)	(505)
Purchases of common stock for treasury	(3)	(7)
Payment of contingent consideration liabilities	(782)	(217)
Proceeds from sales of common stock held in treasury	254	230
Net cash provided by (used for) financing activities	2,655	(4,891)
Effect of foreign currency exchange rates on cash and cash equivalents	37	(191)
Net increase in cash and cash equivalents	5,062	932
Cash and cash equivalents at the beginning of the period	27,699	10,153
Cash and cash equivalents at end of the period	32,761	11,085
Supplemental disclosure of cash flow information:
Cash paid for income taxes	932	242
Cash paid for interest	580	651
Non-cash investing and financing activities:
Purchases of property and equipment financed by accounts payable	249	$ 447
Use of note receivable to modify revenue contract (Note 11)	$ 3,246

Condensed Consolidated Statem_4

Condensed Consolidated Statements Of Changes In Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]	Total
Beginning balance, shares at Aug. 31, 2018	27,056				(13,159)
Beginning balance at Aug. 31, 2018	$ 1,353	$ 211,280	$ 63,569	$ 341	$ (196,043)
Issuance of common stock from treasury, shares					11
Issuance of common stock from treasury		64			$ 166
Purchase of treasury shares					$ (7)
Stock-based compensation		946
Cumulative translation adjustments				(309)		$ (309)
Net loss			(1,357)			(1,357)
Ending balance, shares at Nov. 30, 2018	27,056				(13,148)
Ending balance at Nov. 30, 2018	$ 1,353	212,290	59,069	32	$ (195,884)
Cumulative effect of accounting change			(3,143)
Beginning balance, shares at Aug. 31, 2019	27,056				(13,087)
Beginning balance at Aug. 31, 2019	$ 1,353	215,964	59,403	269	$ (194,975)	82,014
Issuance of common stock from treasury, shares					9
Issuance of common stock from treasury		131			$ 123
Purchase of treasury shares					$ (3)
Stock-based compensation		1,851
Cumulative translation adjustments				(37)		(37)
Net loss			(544)			(544)
Ending balance, shares at Nov. 30, 2019	27,056				(13,078)
Ending balance at Nov. 30, 2019	$ 1,353	$ 217,946	$ 58,859	$ 232	$ (194,855)	$ 83,535

Basis Of Presentation

Basis Of Presentation	3 Months Ended
	Nov. 30, 2019
Basis Of Presentation [Abstract]
Basis Of Presentation	NOTE 1 – BASIS OF PRESENTATION  General  Franklin Covey Co. (hereafter referred to as us, we, our, or the Company) is a global company focused on organizational performance improvement. Our mission is to “enable greatness in people and organizations everywhere,” and our global structure is designed to help individuals and organizations achieve sustained superior performance through changes in human behavior. We are fundamentally a content and solutions company, and we believe that our offerings and services create the connection between capabilities and results. Our expertise extends to seven crucial areas: Leadership, Execution, Productivity, Trust, Educational Improvement, Sales Performance, and Customer Loyalty. We believe that our clients are able to utilize our content to create cultures whose hallmarks are high-performing, collaborative individuals, led by effective, trust-building leaders who execute with excellence and deliver measurably improved results for all of their key stakeholders.  In the training and consulting marketplace, we believe there are three important characteristics that distinguish us from our competitors.  · World Class Content – Our content is principle-centered and based on natural laws of human behavior and effectiveness. When our content is applied consistently in an organization, we believe the culture of that organization will change to enable the organization to achieve their own great purposes. Our content is designed to build new skillsets, establish new mindsets, and provide enabling toolsets to our clients.  · Breadth and Scalability of Delivery Options – We have a wide range of content delivery options, including: subscription offerings, which includes the All Access Pass (available in multiple languages), the Leader in Me membership, and other subscription offerings; intellectual property licenses; on-site training; training led through certified facilitators; on-line learning; and organization-wide transformational processes, including consulting and coaching services.  · Global Capability – We have sales professionals in the United States and Canada who serve clients in the private sector and in governmental organizations; wholly-owned subsidiaries in Australia, China, Japan, the United Kingdom, Germany, Switzerland, and Austria; and we contract with licensee partners who deliver our content and provide related services in over 140 other countries and territories around the world.  We are committed to, and measure ourselves by, our clients’ achievement of transformational results.  We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training content based on the best-selling books, The 7 Habits of Highly Effective People , The Speed of Trust , The Leader in Me , and The 4 Disciplines of Execution , and proprietary content in the areas of Execution, Sales Performance, Productivity, Educational Improvement, and Customer Loyalty. Our offerings are described in further detail at www.franklincovey.com . The information posted on our website is not incorporated into this report.  The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and results of operations of the Company as of the dates and for the periods indicated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our annual report on Form 10-K for the fiscal year ended August 31, 2019.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.  Our fiscal year ends on August 31 of each year and our fiscal quarters end on the last day of November, February, and May of each year.  The results of operations for the quarter ended November 30, 2019 are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2020, or for any future periods.  Accounting Pronouncements Issued and Adopted  In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) , which supersedes FASB Accounting Standards Codification (ASC) Topic 840, Leases . The new guidance requires lessees to recognize a lease liability and corresponding right-of-use asset for all leases greater than 12 months. Recognition, measurement, and presentation of expenses depends upon whether the lease is classified as a finance or operating lease. We adopted the new lease guidance prospectively on September 1, 2019. As part of the adoption of ASU 2016-02, we elected to apply the package of practical expedients, which allows us to not reassess prior conclusions related to lease classification, not to recognize short-term leases on our balance sheet, and not to separate lease and non-lease components for our leases. On September 1, 2019, the adoption of ASU 2016-02 resulted in the recognition of $1.5 million of lease liabilities and right-of-use assets on our condensed consolidated balance sheets for operating leases . For lessors, accounting for leases is substantially the same as in prior periods and there was no impact from the adoption of ASU 2016-02 for those leases where we are the lessor . Refer to Note 6, Leases for further information regarding our leasing activity.  The lease for our corporate campus is currently accounted for as a financing obligation and related building asset on our consolidated balance sheets, as the contract represented a failed sale-leaseback under previous leasing guidance. In transition to Topic 842, we reassessed whether the previously failed sale-leaseback met the sale criteria under the new leasing standard. Based on this assessment, we determined that the sale criteria under the new leasing standard was not met and we will continue to account for the corporate campus lease as a finance obligation on our consolidated balance sheet in future periods.  Accounting Pronouncements Issued Not Yet Adopted  Credit Losses on Financial Instruments  In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This accounting standard changes the methodology for measuring credit losses on financial instruments, including trade accounts receivable, and the timing of when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. However, in November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) which deferred the adoption of ASU 2016-13 for smaller reporting companies to fiscal years beginning after December 15, 2022. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. We are currently evaluating the impact of ASU No. 2016-13 on our financial position, results of operations, and liquidity.  Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement  In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). This guidance clarifies the accounting for implementation costs in a cloud computing arrangement that is a service contract and aligns the requirements for capitalizing those costs with the capitalization requirements for costs incurred to develop or obtain internal-use software. The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We are currently evaluating the effects, if any, the adoption of ASU 2018-15 may have on our financial position, results of operations, cash flows, or disclosures.

Inventories

Inventories	3 Months Ended
	Nov. 30, 2019
Inventories [Abstract]
Inventories	NOTE 2 – INVENTORIES  Inventories are stated at the lower of cost or net realizable value, cost being determined using the first-in, first-out method, and were comprised of the following (in thousands):    November 30, August 31,  2019 2019  Finished goods $ 3,108 $ 3,434  Raw materials 47 47  $ 3,155 $ 3,481 

Term Loans Payable

Term Loans Payable	3 Months Ended
	Nov. 30, 2019
Term Loans Payable [Abstract]
Term Loans Payable	  NOTE 3 – T ERM LOANS PAYABLE  Pursuant to the credit agreement we obtained in August 2019 (the 2019 Credit Agreement), we have the ability to borrow up to $25.0 million in term loans. At August 31, 2019, we had borrowed $20.0 million of the available term loan amount. During November 2019, we borrowed the remaining $5.0 million term loan available on the 2019 Credit Agreement. The additional $5.0 million term loan has the same terms and conditions as the previous term loan and does not change our quarterly principal payments. However, the maturity date of the term loans is extended for an additional year. At November 30, 2019, our future principal payments on the term loans are as follows (in thousands):     YEAR ENDING AUGUST 31, Amount  2020 $ 3,750  2021 5,000  2022 5,000  2023 5,000  2024 5,000  $ 23,750 

Fair Value Of Financial Instrum

Fair Value Of Financial Instruments	3 Months Ended
	Nov. 30, 2019
Fair Value Of Financial Instruments [Abstract]
Fair Value Of Financial Instruments	 NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS  At November 30, 2019, the carrying value of our financial instruments approximated their fair values. The fair values of our contingent consideration liabilities from business acquisitions are considered “Level 3” measurements because we use various estimates in the valuation models to project the timing and amount of future contingent payments. The fair value of the contingent consideration liabilities from the acquisitions of Robert Gregory Partners (RGP) and Jhana Education (Jhana) changed as follows during the quarter ended November 30, 2019 (in thousands):     Balance at Change in Balance at  August 31, 2019 Fair Value Payments November 30, 2019  RGP Acquisition $ 1,761 $ (7) $ (500) $ 1,254  Jhana Acquisition 3,468 98 (282) 3,284  $ 5,229 $ 91 $ (782) $ 4,538  At November 30, 2019, we estimated the fair value of the contingent liabilities from both the RGP and Jhana acquisitions through the use of Monte Carlo simulations. Based on expected payments, a pproximately $1.0 million of the Jhana and $0.5 million of the RGP contingent consideration liabilities were recorded as components of accrued liabilities on our condensed consolidated balance sheet at November 30, 2019. The remainder of our contingent consideration liabilities are classified as other long-term liabilities. Adjustments to the fair value of our contingent consideration liabilities are included in selling, general, and administrative expense in the accompanying condensed consolidated statements of operations.

Revenue

Revenue	3 Months Ended
	Nov. 30, 2019
Revenue [Abstract]
Revenue	  NOTE 5 – REVENUE  Contract Balances  Our deferred revenue totaled $56.9 million at November 30, 2019 and $65.8 million at August 31, 2019, of which $4.2 million and $3.6 million were classified as components of other long-term liabilities at November 30, 2019, and August 31, 2019, respectively. The amount of deferred revenue that was generated from subscription offerings totaled $48.7 million at November 30, 2019 and $58.2 million at August 31, 2019. During the quarter ended November 30, 2019, we recognized $21.1 million of previously deferred subscription revenue.  Remaining Performance Obligations  When possible, we enter into multi-year non-cancellable contracts which are invoiced either upon execution of the contract or at the beginning of each annual contract period. ASC Topic 606 introduced the concept of remaining transaction price which represents contracted revenue that has not yet been recognized, including unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price is influenced by factors such as seasonality, the average length of the contract term, and the ability of the Company to continue to enter multi-year non-cancellable contracts. At November 30, 2019, we had $82.7 million of remaining performance obligations, including the amount of deferred revenue related to our subscription offerings, of which approximately 75 percent will be recognized over the next 12 months. The remaining performance obligation does not include other deferred revenue, as amounts included in other deferred revenue include items such as deposits that are generally refundable at the client’s request prior to the satisfaction of the obligation.  Disaggregated Revenue Information  Refer to Note 10, Segment Information , to these condensed consolidated financial statements for our disaggregated revenue information.

Leases

Leases	3 Months Ended
	Nov. 30, 2019
Leases [Abstract]
Leases	  NOTE 6 – LE ASES  Lease Expense  In the normal course of business, we rent office space, primarily for international sales administration offices, in commercial office complexes that are conducive to sales and administrative operations. We also rent warehousing and distribution facilities that are designed to provide secure storage and efficient distribution of our training products, books, and accessories. All of these leases are classified as operating leases. Operating lease assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Since most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Leases with an initial term of 12 months or less are not recorded on the balance sheet. For operating leases, expense is recognized on a straight-line basis over the lease term. We do not have significant amounts of variable lease payments.  Some of our operating leases contain renewal options that may be exercised at our discretion after the completion of the base rental term. At November 30, 2019, we had operating leases with remaining terms ranging from less than one year to approximately six years. The amounts of assets and liabilities (in thousands) and other information related to our operating leases follows:     Balance Sheet November 30,  Caption 2019  Assets:  Operating lease right of use assets Other long-term assets $ 1,481   Liabilities:  Current:  Operating lease liabilities Accrued liabilities 780  Long-Term:  Operating lease liabilities Other long-term liabilities 701  $ 1,481   Weighted Average Remaining Lease Term:  Operating leases (years) 3.0   Weighted Average Discount Rate:  Operating leases 4.2 %  During each of the quarters ended November 30, 2019 and November 30, 2018, we recognized $0.4 million of lease expense associated with operating leases, which is reported in selling, general, and administrative expense.  The approximate future minimum lease payments under our operating leases at November 30, 2019, is as follows (in thousands):     YEAR ENDING AUGUST 31, Amount  Remainder of 2020 $ 663  2021 479  2022 134  2023 117  2024 94  Thereafter 98  Total operating lease payments 1,585  Less imputed interest (104)  Present value of operating lease liabilities $ 1,481  Lease Income  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 $35.1 million, which had a carrying value of $6.0 million at November 30, 2019. The following future minimum lease payments due to us from our sublease agreements at November 30, 2019, are as follows (in thousands):     YEAR ENDING AUGUST 31, Amount  Remainder of 2020 $ 2,930  2021 2,341  2022 1,514  2023 1,514  2024 1,527  Thereafter 1,275  $ 11,101  Sublease revenue totaled $1.0 million during each of the quarters ended November 30, 2019 and November 30, 2018, and was included in net sales in the accompanying condensed consolidated statement s of operations.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Nov. 30, 2019
Stock-Based Compensation [Abstract]
Stock-Based Compensation	  NOTE 7 – STOCK -BASED COMPENSATION  The cost of our stock-based compensation plans is included in selling, general, and administrative expense in the accompanying condensed consolidated statements of operations. Our stock-based compensation expense was comprised of the following for the periods presented (in thousands):    Quarter Ended  November 30, November 30,  2019 2018  Long-term incentive awards $ 1,636 $ 733  Restricted stock awards 175 175  Employee stock purchase plan 40 38  $ 1,851 $ 946  During the quarter ended November 30, 2019, we issued 8, 466 shares of our common stock under various stock-based compensation arrangements. Our stock-based compensation plans also allow shares to be withheld to cover statutory income taxes if so elected by the award recipient. During the first quarter of fiscal 2020, we withheld 88 shares of our common stock for taxes on stock-based compensation arrangements with a fair value of approximately $3,000 . The following is a description of the developments in our stock-based compensation plans during the quarter ended November 30, 2019.  Fiscal 2020 Long-Term Incentive Plan Award  On October 18, 2019, the Organization and Compensation Committee of the Board of Directors granted a new long-term incentive plan (LTIP) award to our executive officers and members of senior management. The fiscal 2020 LTIP award is similar to the fiscal 2019 LTIP award and has three tranches, one of which has a time-based vesting condition and two of which have performance-based vesting conditions as described below:  · Time-Based Award Shares – Twenty-five percent of the 2020 LTIP award shares vest to participants after three years of service. The total number of shares that may be earned by participants after three years of service is 25,101 shares . The number of shares awarded in this tranche is not variable and will not fluctuate based on financial measures.  · Performance-Based Award Shares – The remaining two tranches of the 2020 LTIP award are based on fiscal 2022 qualified adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) and fiscal 2022 subscription service sales, respectively. The number of shares that will vest to participants for these two tranches is variable and may be 50 percent of the award (minimum award threshold) or up to 200 percent of the participant’s award (maximum threshold) depending on the levels of qualified Adjusted EBITDA and subscription service sales achieved. The number of shares that may be earned for achieving 100 percent of the performance-based objectives totals 75,315 shares. The maximum number of shares that may be awarded in connection with the performance-based tranches of the 2020 LTIP totals 150,630 shares.     The fiscal 2020 LTIP has a three -year life and expires on August 31, 2022 .  Compensation expense recognized during the quarter ended November 30, 2019, for long-term incentive plan awards in the table above includes expense related to awards granted in previous periods for which we believe the performance conditions are probable of being achieved.  Employee Stock Purchase Plan  We have an employee stock purchase plan (ESPP) that offers qualified employees the opportunity to purchase shares of our common stock at a price equal to 85 percent of the average fair market value of our common stock on the last trading day of each fiscal quarter. During the quarter ended November 30, 2019, we issued 8,134 shares of our common stock to participants in the ESPP.

Income Taxes

Income Taxes	3 Months Ended
	Nov. 30, 2019
Income Taxes [Abstract]
Income Taxes	NOTE 8 – INCOME TAXES  For the quarter ended November 30, 2019, we comput ed income taxes by applying an estimated annual effective income tax rate to the consolidated pre-tax loss for the period, which was adjusted for discrete items arising during the quarter. Based on this methodology, we recorded an income tax benefit of $0.2 million for the quarter ended November 30, 2019 on a pre-tax loss of $0.8 million, resulting in an effective tax benefit rate of 28.4 percent. Our annual effective tax rate was increased by Global Intangible Low-Taxed Income (GILTI) tax expense, non-deductible expenses, and effective foreign tax rates which are significantly higher than the U.S. statutory rate. Net operating loss carryforwards currently prevent us from utilizing foreign tax credits against our GILTI tax liability. Unlike regular foreign tax credits, we permanently forego any unused foreign tax credits applicable to GILTI.

Loss Per Share

Loss Per Share	3 Months Ended
	Nov. 30, 2019
Loss Per Share [Abstract]
Loss Per Share	  NOTE 9 – LOSS PER SHARE  The following schedule shows the calculation of loss per share for the periods presented (in thousands, except per-share amounts).     Quarter Ended  November 30, November 30,  2019 2018  Numerator for basic and  diluted loss per share:  Net loss $ (544) $ (1,357)   Denominator for basic and  diluted loss per share:  Basic weighted average shares  outstanding 13,982 13,917  Effect of dilutive securities:  Stock options and other  stock-based awards - -  Diluted weighted average  shares outstanding 13,982 13,917   EPS Calculations:  Net loss per share:  Basic and diluted $ (0.04) $ (0.10)  Since we incurred a net loss for the quarter ended November 30, 2019, no potentially dilutive securities are included in the calculation of diluted loss per share because such effect would be anti-dilutive. The number of dilutive stock options and other stock-based awards for the quarter ended November 30, 2019 would have been approximately 264,000 shares .

Segment Information

Segment Information	3 Months Ended
	Nov. 30, 2019
Segment Information [Abstract]
Segment Information	  NOTE 10 – SEG MENT INFORMATION  Segment Information  Our sales are primarily comprised of training and consulting services. Our internal reporting and operating structure is currently organized around two divisions. The Enterprise Division, which consists of our Direct Office and International Licensee segments and the Education Division, which is comprised of our Education practice. Based on the applicable guidance, our operations are comprised of three reportable segments and a corporate services group. The following is a brief description of our reportable segments:  · Direct Offices – Our Direct Office segment has a depth of expertise in helping organizations solve problems that require changes in human behavior, including leadership, productivity, execution, trust, and sales performance. We have a variety of principle-based offerings that help build winning and profitable cultures. This segment includes our sales personnel that serve the United States and Canada; our international sales offices located in Japan, China, the United Kingdom, Australia, and our new operations in Germany, Switzerland, and Austria; our government services sales channel; and our public programs operations.  · International Licensees – Our independently owned international licensees provide our offerings and services in countries where we do not have a directly-owned office. These licensee partners allow us to expand the reach of our services to large multinational organizations as well as smaller organizations in their countries. This segment’s results are primarily comprised of royalty revenues received from these licensees.  · Education Practice – Centered around the principles found in The Leader in Me , the Education practice is dedicated to helping educational institutions build a culture that will produce great results. We believe these results are manifested by increases in student performance, improved school culture, decreased disciplinary issues, and increased teacher engagement and parental involvement. This segment includes our domestic and international Education practice operations, which are focused on sales to educational institutions such as elementary schools, high schools, and colleges and universities .  · Corporate and Other – Our corporate and other information includes leasing operations, shipping and handling revenues, royalty revenues from Franklin Planner Corp. (Note 11), and certain corporate administrative expenses.  We have determined that the Company’s chief operating decision maker is the Chief Executive Officer (CEO), and the primary measurement tool used in business unit performance analysis is Adjusted EBITDA, which may not be calculated as similarly titled amounts disclosed by other companies. Adjusted EBITDA is a non-GAAP financial measure. For reporting purposes, our consolidated Adjusted EBITDA may be calculated as our net income or loss from excluding interest expense, income taxes, depreciation expense, amortization expense, stock-based compensation expense, and certain other charges such as adjustments for changes in the fair value of contingent liabilities arising from business acquisitions. The Company references this non-GAAP financial measure in its decision making because it provides supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods and we believe it provides investors with greater transparency to evaluate operational activities and financial results.  Our operations are not capital intensive and we do not own any manufacturing facilities or equipment. Accordingly, we do not allocate assets to the reportable segments for analysis purposes. Interest expense and interest income are primarily generated at the corporate level and are not allocated. Income taxes are likewise calculated and paid on a corporate level (except for entities that operate in foreign jurisdictions) and are not allocated for analysis purposes. We periodically make minor changes to our reporting structure in the normal course of operations. The segment information presented below reflects certain revisions to our reporting structure which occurred during the second quarter of fiscal 2019. Prior period segment information has been revised to conform with our current segment reporting.  We account for the following segment information on the same basis as the accompanying condensed consolidated financial statements (in thousands).     Sales to  Quarter Ended External Adjusted  November 30, 2019 Customers Gross Profit EBITDA   Enterprise Division:  Direct offices $ 42,111 $ 31,411 $ 5,710  International licensees 3,721 3,120 2,035  45,832 34,531 7,745  Education practice 11,082 6,657 (1,102)  Corporate and eliminations 1,699 841 (1,682)  Consolidated $ 58,613 $ 42,029 $ 4,961   Quarter Ended  November 30, 2018   Enterprise Division:  Direct offices $ 38,471 $ 27,070 $ 3,640  International licensees 3,677 2,862 1,629  42,148 29,932 5,269  Education practice 10,347 6,393 (265)  Corporate and eliminations 1,334 458 (1,835)  Consolidated $ 53,829 $ 36,783 $ 3,169  A reconciliation of our consolidated Adjusted EBITDA to consolidated net loss is provided below (in thousands).     Quarter Ended  November 30, November 30,  2019 2018  Segment Adjusted EBITDA $ 6,643 $ 5,004  Corporate expenses (1,682) (1,835)  Consolidated Adjusted EBITDA 4,961 3,169  Stock-based compensation expense (1,851) (946)  Increase in the fair value of contingent  consideration liabilities (91) (24)  Knowledge Capital wind-down costs (389) -  Licensee transition costs - (60)  Depreciation (1,619) (1,554)  Amortization (1,170) (1,238)  Loss from operations (159) (653)  Interest income 5 28  Interest expense (606) (632)  Loss before income taxes (760) (1,257)  Income tax benefit (provision) 216 (100)  Net loss $ (544) $ (1,357)  Revenue by Category  The following table presents our revenue disaggregated by geographic region (in thousands).     Quarter Ended  November 30, November 30,  2019 2018   Americas $ 44,036 $ 40,918  Asia Pacific 10,139 9,280  Europe/Middle East/Africa 4,438 3,631  $ 58,613 $ 53,829  The following table presents our revenue disaggregated by type of service (in thousands).     Quarter Ended Services and Leases and  November 30, 2019 Products Subscriptions Royalties Other Consolidated   Enterprise Division:  Direct offices $ 27,251 $ 14,288 $ 572 $ - $ 42,111  International licensees 590 - 3,131 - 3,721  27,841 14,288 3,703 - 45,832  Education practice 3,585 6,818 679 - 11,082  Corporate and eliminations - - 379 1,320 1,699  Consolidated $ 31,426 $ 21,106 $ 4,761 $ 1,320 $ 58,613   Quarter Ended  November 30, 2018   Enterprise Division:  Direct offices $ 25,009 $ 12,675 $ 787 $ - $ 38,471  International licensees 872 - 2,805 - 3,677  25,881 12,675 3,592 - 42,148  Education practice 3,917 5,713 717 - 10,347  Corporate and eliminations - - - 1,334 1,334  Consolidated $ 29,798 $ 18,388 $ 4,309 $ 1,334 $ 53,829 

Investment In FC Organizational

Investment In FC Organizational Products	3 Months Ended
	Nov. 30, 2019
Investment In FC Organizational Products [Abstract]
Investment In FC Organizational Products	NOTE 11 – INVESTMENT IN FC ORGANIZATIONAL PRODUCTS  We owned a 19.5 percent interest in FC Organizational Products (FCOP), an entity that purchased substantially all of our consumer solutions business unit assets in fiscal 2008 for the purpose of selling planners and related organizational products under a comprehensive licensing agreement. On November 4, 2019, FCOP sold substantially all of its assets to Franklin Planner Corporation (FPC), a new unrelated entity , and FCOP was dissolved. FPC is expected to continue FCOP’s business of selling planners and other related consumer products based on the license agreement which granted FCOP the exclusive rights described below. In connection with this transaction, we exchanged approximately $3.2 million of receivables from FCOP to amend the term and royalty provisions of the existing license agreement. The $3.2 million included a $2.6 million note receivable , which represented FCOP’s third-party bank debt that we purchased directly from the bank on the transaction date. The amended license agreement grants the exclusive right to use certain of our trademarks and other intellectual property in connection with certain consumer products and provides us with minimum royalties of approximately $1.3 million per year. We are also entitled to receive additional variable royalties if certain FPC financial metrics exceed specified levels. FPC assumed the amended license agreement from FCOP upon the purchase of FCOP assets. We recorded the $3.2 million consideration for the amendment to the license agreement as a capitalized cost of the license and will reduce the royalty revenue by amortizing this amount over the remainder of the initial term of the license agreement, which ends in approximately 30 years. During the quarter ended November 30, 2019, we recognized $0.4 million of royalty revenues from this amended license agreement with FPC.  We do not have an ownership interest in FPC, do not have any obligation to provide additional subordinated support to FPC, and do not have control over the day-to-day operations of FPC, which primarily consist of the sale of planning products and accessories. We receive payment for royalties and rented space from FPC. At November 30, 2019, we had $0.9 million receivable from FPC and at August 31, 2019, we had $1.0 million receivable from FCOP, each of which are recorded in current assets. Since most of FPC’s sales and cash flows are seasonal and occur between October and January, we expect to receive the majority of the required cash payments for royalties and outstanding receivables during our second and third quarters of each fiscal year.  

Subsequent Event

Subsequent Event	3 Months Ended
	Nov. 30, 2019
Subsequent Event [Abstract]
Subsequent Event	NOTE 12 – SUBSEQUENT EVENT  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 approximately $10 million. Our CEO and a member of our Board of Directors each owned a partnership interest in Knowledge Capital. As of the date hereof, Knowledge Capital does not own any shares of our common stock.

Basis Of Presentation (Policy)

Basis Of Presentation (Policy)	3 Months Ended
	Nov. 30, 2019
Basis Of Presentation [Abstract]
General	General  Franklin Covey Co. (hereafter referred to as us, we, our, or the Company) is a global company focused on organizational performance improvement. Our mission is to “enable greatness in people and organizations everywhere,” and our global structure is designed to help individuals and organizations achieve sustained superior performance through changes in human behavior. We are fundamentally a content and solutions company, and we believe that our offerings and services create the connection between capabilities and results. Our expertise extends to seven crucial areas: Leadership, Execution, Productivity, Trust, Educational Improvement, Sales Performance, and Customer Loyalty. We believe that our clients are able to utilize our content to create cultures whose hallmarks are high-performing, collaborative individuals, led by effective, trust-building leaders who execute with excellence and deliver measurably improved results for all of their key stakeholders.  In the training and consulting marketplace, we believe there are three important characteristics that distinguish us from our competitors.  · World Class Content – Our content is principle-centered and based on natural laws of human behavior and effectiveness. When our content is applied consistently in an organization, we believe the culture of that organization will change to enable the organization to achieve their own great purposes. Our content is designed to build new skillsets, establish new mindsets, and provide enabling toolsets to our clients.  · Breadth and Scalability of Delivery Options – We have a wide range of content delivery options, including: subscription offerings, which includes the All Access Pass (available in multiple languages), the Leader in Me membership, and other subscription offerings; intellectual property licenses; on-site training; training led through certified facilitators; on-line learning; and organization-wide transformational processes, including consulting and coaching services.  · Global Capability – We have sales professionals in the United States and Canada who serve clients in the private sector and in governmental organizations; wholly-owned subsidiaries in Australia, China, Japan, the United Kingdom, Germany, Switzerland, and Austria; and we contract with licensee partners who deliver our content and provide related services in over 140 other countries and territories around the world.  We are committed to, and measure ourselves by, our clients’ achievement of transformational results.  We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training content based on the best-selling books, The 7 Habits of Highly Effective People , The Speed of Trust , The Leader in Me , and The 4 Disciplines of Execution , and proprietary content in the areas of Execution, Sales Performance, Productivity, Educational Improvement, and Customer Loyalty. Our offerings are described in further detail at www.franklincovey.com . The information posted on our website is not incorporated into this report.  The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and results of operations of the Company as of the dates and for the periods indicated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our annual report on Form 10-K for the fiscal year ended August 31, 2019.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.  Our fiscal year ends on August 31 of each year and our fiscal quarters end on the last day of November, February, and May of each year.  The results of operations for the quarter ended November 30, 2019 are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2020, or for any future periods.
Accounting Pronouncements Issued And Adopted	Accounting Pronouncements Issued and Adopted  In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) , which supersedes FASB Accounting Standards Codification (ASC) Topic 840, Leases . The new guidance requires lessees to recognize a lease liability and corresponding right-of-use asset for all leases greater than 12 months. Recognition, measurement, and presentation of expenses depends upon whether the lease is classified as a finance or operating lease. We adopted the new lease guidance prospectively on September 1, 2019. As part of the adoption of ASU 2016-02, we elected to apply the package of practical expedients, which allows us to not reassess prior conclusions related to lease classification, not to recognize short-term leases on our balance sheet, and not to separate lease and non-lease components for our leases. On September 1, 2019, the adoption of ASU 2016-02 resulted in the recognition of $1.5 million of lease liabilities and right-of-use assets on our condensed consolidated balance sheets for operating leases . For lessors, accounting for leases is substantially the same as in prior periods and there was no impact from the adoption of ASU 2016-02 for those leases where we are the lessor . Refer to Note 6, Leases for further information regarding our leasing activity.  The lease for our corporate campus is currently accounted for as a financing obligation and related building asset on our consolidated balance sheets, as the contract represented a failed sale-leaseback under previous leasing guidance. In transition to Topic 842, we reassessed whether the previously failed sale-leaseback met the sale criteria under the new leasing standard. Based on this assessment, we determined that the sale criteria under the new leasing standard was not met and we will continue to account for the corporate campus lease as a finance obligation on our consolidated balance sheet in future periods. 
Accounting Pronouncements Issued Not Yet Adopted	Accounting Pronouncements Issued Not Yet Adopted  Credit Losses on Financial Instruments  In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This accounting standard changes the methodology for measuring credit losses on financial instruments, including trade accounts receivable, and the timing of when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. However, in November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) which deferred the adoption of ASU 2016-13 for smaller reporting companies to fiscal years beginning after December 15, 2022. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. We are currently evaluating the impact of ASU No. 2016-13 on our financial position, results of operations, and liquidity.  Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement  In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). This guidance clarifies the accounting for implementation costs in a cloud computing arrangement that is a service contract and aligns the requirements for capitalizing those costs with the capitalization requirements for costs incurred to develop or obtain internal-use software. The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We are currently evaluating the effects, if any, the adoption of ASU 2018-15 may have on our financial position, results of operations, cash flows, or disclosures.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Nov. 30, 2019
Inventories [Abstract]
Components Of Inventories	   November 30, August 31,  2019 2019  Finished goods $ 3,108 $ 3,434  Raw materials 47 47  $ 3,155 $ 3,481 

Term Loans Payable (Tables)

Term Loans Payable (Tables)	3 Months Ended
	Nov. 30, 2019
Term Loans Payable [Abstract]
Future Principal Payments By Fiscal Year	   YEAR ENDING AUGUST 31, Amount  2020 $ 3,750  2021 5,000  2022 5,000  2023 5,000  2024 5,000  $ 23,750 

Fair Value Of Financial Instr_2

Fair Value Of Financial Instruments (Tables)	3 Months Ended
	Nov. 30, 2019
Fair Value Of Financial Instruments [Abstract]
Schedule Of Contingent Consideration Liability	   Balance at Change in Balance at  August 31, 2019 Fair Value Payments November 30, 2019  RGP Acquisition $ 1,761 $ (7) $ (500) $ 1,254  Jhana Acquisition 3,468 98 (282) 3,284  $ 5,229 $ 91 $ (782) $ 4,538 

Leases (Tables)

Leases (Tables)	3 Months Ended
	Nov. 30, 2019
Leases [Abstract]
Assets And Liabilities Related To Operating Leases	   Balance Sheet November 30,  Caption 2019  Assets:  Operating lease right of use assets Other long-term assets $ 1,481   Liabilities:  Current:  Operating lease liabilities Accrued liabilities 780  Long-Term:  Operating lease liabilities Other long-term liabilities 701  $ 1,481   Weighted Average Remaining Lease Term:  Operating leases (years) 3.0   Weighted Average Discount Rate:  Operating leases 4.2 % 
Future Minimum Lease Payments Under Operating Leases	   YEAR ENDING AUGUST 31, Amount  Remainder of 2020 $ 663  2021 479  2022 134  2023 117  2024 94  Thereafter 98  Total operating lease payments 1,585  Less imputed interest (104)  Present value of operating lease liabilities $ 1,481 
Future Minimum Lease Payments From Sublease	   YEAR ENDING AUGUST 31, Amount  Remainder of 2020 $ 2,930  2021 2,341  2022 1,514  2023 1,514  2024 1,527  Thereafter 1,275  $ 11,101 

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Nov. 30, 2019
Stock-Based Compensation [Abstract]
Total Cost Of Stock-Based Compensation	   Quarter Ended  November 30, November 30,  2019 2018  Long-term incentive awards $ 1,636 $ 733  Restricted stock awards 175 175  Employee stock purchase plan 40 38  $ 1,851 $ 946 

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Nov. 30, 2019
Loss Per Share [Abstract]
Computation Of Loss Per Share	   Quarter Ended  November 30, November 30,  2019 2018  Numerator for basic and  diluted loss per share:  Net loss $ (544) $ (1,357)   Denominator for basic and  diluted loss per share:  Basic weighted average shares  outstanding 13,982 13,917  Effect of dilutive securities:  Stock options and other  stock-based awards - -  Diluted weighted average  shares outstanding 13,982 13,917   EPS Calculations:  Net loss per share:  Basic and diluted $ (0.04) $ (0.10) 

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Nov. 30, 2019
Segment Information [Abstract]
Schedule Of Segment Operations	   Sales to  Quarter Ended External Adjusted  November 30, 2019 Customers Gross Profit EBITDA   Enterprise Division:  Direct offices $ 42,111 $ 31,411 $ 5,710  International licensees 3,721 3,120 2,035  45,832 34,531 7,745  Education practice 11,082 6,657 (1,102)  Corporate and eliminations 1,699 841 (1,682)  Consolidated $ 58,613 $ 42,029 $ 4,961   Quarter Ended  November 30, 2018   Enterprise Division:  Direct offices $ 38,471 $ 27,070 $ 3,640  International licensees 3,677 2,862 1,629  42,148 29,932 5,269  Education practice 10,347 6,393 (265)  Corporate and eliminations 1,334 458 (1,835)  Consolidated $ 53,829 $ 36,783 $ 3,169 
Reconciliation Of Adjusted EBITDA	   Quarter Ended  November 30, November 30,  2019 2018  Segment Adjusted EBITDA $ 6,643 $ 5,004  Corporate expenses (1,682) (1,835)  Consolidated Adjusted EBITDA 4,961 3,169  Stock-based compensation expense (1,851) (946)  Increase in the fair value of contingent  consideration liabilities (91) (24)  Knowledge Capital wind-down costs (389) -  Licensee transition costs - (60)  Depreciation (1,619) (1,554)  Amortization (1,170) (1,238)  Loss from operations (159) (653)  Interest income 5 28  Interest expense (606) (632)  Loss before income taxes (760) (1,257)  Income tax benefit (provision) 216 (100)  Net loss $ (544) $ (1,357) 
Disaggregation Of Revenue	The following table presents our revenue disaggregated by geographic region (in thousands).     Quarter Ended  November 30, November 30,  2019 2018   Americas $ 44,036 $ 40,918  Asia Pacific 10,139 9,280  Europe/Middle East/Africa 4,438 3,631  $ 58,613 $ 53,829  The following table presents our revenue disaggregated by type of service (in thousands).     Quarter Ended Services and Leases and  November 30, 2019 Products Subscriptions Royalties Other Consolidated   Enterprise Division:  Direct offices $ 27,251 $ 14,288 $ 572 $ - $ 42,111  International licensees 590 - 3,131 - 3,721  27,841 14,288 3,703 - 45,832  Education practice 3,585 6,818 679 - 11,082  Corporate and eliminations - - 379 1,320 1,699  Consolidated $ 31,426 $ 21,106 $ 4,761 $ 1,320 $ 58,613   Quarter Ended  November 30, 2018   Enterprise Division:  Direct offices $ 25,009 $ 12,675 $ 787 $ - $ 38,471  International licensees 872 - 2,805 - 3,677  25,881 12,675 3,592 - 42,148  Education practice 3,917 5,713 717 - 10,347  Corporate and eliminations - - - 1,334 1,334  Consolidated $ 29,798 $ 18,388 $ 4,309 $ 1,334 $ 53,829 

Basis Of Presentation (Narrativ

Basis Of Presentation (Narrative) (Details) $ in Thousands	3 Months Ended
	Nov. 30, 2019USD ($)countryitem	Sep. 01, 2019USD ($)
Business Acquisition [Line Items]
Number of areas of expertise | item	7
Number of important distinguishing characteristics from competitors | item	3
Operating lease liabilities	$ 1,481
Operating lease right of use assets	$ 1,481
Accounting Standards Update 2016-02 [Member]
Business Acquisition [Line Items]
Operating lease liabilities		$ 1,500
Operating lease right of use assets		$ 1,500
Minimum [Member]
Business Acquisition [Line Items]
Number of countries in which entity operates | country	140

Inventories (Components Of Inve

Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands	Nov. 30, 2019	Aug. 31, 2019
Inventories [Abstract]
Finished goods	$ 3,108	$ 3,434
Raw materials	47	47
Inventories	$ 3,155	$ 3,481

Term Loans Payable (Narrative)

Term Loans Payable (Narrative) (Details) - Term Loan [Member] - Credit 2019 Agreement [Member] - USD ($)	Nov. 30, 2019	Aug. 31, 2019
Debt Instrument [Line Items]
Loan amount	$ 5,000,000	$ 20,000,000
Maximum [Member]
Debt Instrument [Line Items]
Loan amount	$ 25,000,000

Term Loans Payable (Future Prin

Term Loans Payable (Future Principal Payments By Fiscal Year) (Details) - Term Loan [Member] $ in Thousands	Nov. 30, 2019USD ($)
Debt Instrument [Line Items]
2020	$ 3,750
2021	5,000
2022	5,000
2023	5,000
2024	5,000
Total	$ 23,750

Fair Value Of Financial Instr_3

Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands	Nov. 30, 2019	Aug. 31, 2019
Contingent consideration	$ 4,538	$ 5,229
Jhana Education [Member]
Contingent consideration	3,284	3,468
Jhana Education [Member] | Accrued Liabilities [Member]
Contingent consideration	1,000
Robert Gregory Partners [Member]
Contingent consideration	1,254	$ 1,761
Robert Gregory Partners [Member] | Accrued Liabilities [Member]
Contingent consideration	$ 500

Fair Value Of Financial Instr_4

Fair Value Of Financial Instruments (Schedule Of Contingent Consideration Liability) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration liability at beginning of year	$ 5,229
Change in Fair Value	91	$ 24
Payments	(782)
Contingent consideration liability at end of quarter	4,538
Robert Gregory Partners [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration liability at beginning of year	1,761
Change in Fair Value	(7)
Payments	(500)
Contingent consideration liability at end of quarter	1,254
Jhana Education [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration liability at beginning of year	3,468
Change in Fair Value	98
Payments	(282)
Contingent consideration liability at end of quarter	$ 3,284

Revenue (Narrative) (Details)

Revenue (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2019	Aug. 31, 2019
Deferred revenue	$ 56.9	$ 65.8
Other long-term liabilities	4.2	3.6
Remaining performance obligations	$ 82.7
Percentage of remaining performance obligations will be recognized over the next 12 months	75.00%
Subscription [Member]
Deferred revenue	$ 48.7	$ 58.2
Deferred revenue recognized	$ 21.1

Leases (Narrative) (Details)

Leases (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Lessee, Lease, Description [Line Items]
Lease expense associated with operating leases	$ 0.4	$ 0.4
Sublease revenue	$ 1	$ 1
Minimum [Member]
Lessee, Lease, Description [Line Items]
Operating lease term	1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Operating lease term	6 years
Corporate Campus [Member]
Lessee, Lease, Description [Line Items]
Cost basis	$ 35.1
Carrying value	$ 6

Leases (Assets And Liabilities

Leases (Assets And Liabilities Related To Operating Leases) (Details) $ in Thousands	Nov. 30, 2019USD ($)
Assets:
Operating lease right of use assets	$ 1,481
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent
Liabilities [Abstract]
Current: Operating lease liabilities	$ 780
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent
Long-Term: Operating lease liabilities	$ 701
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent
Operating lease liabilities	$ 1,481
Weighted Average Remaining Lease Term: Operating leases (years)	3 years
Weighted Average Discount Rate: Operating leases	4.20%

Leases (Future Minimum Lease Pa

Leases (Future Minimum Lease Payments Under Operating Leases) (Details) $ in Thousands	Nov. 30, 2019USD ($)
Leases [Abstract]
Remainder of 2020	$ 663
2021	479
2022	134
2023	117
2024	94
Thereafter	98
Total operating lease payments	1,585
Less imputed interest	(104)
Present value of operating lease liabilities	$ 1,481

Leases (Future Minimum Lease _2

Leases (Future Minimum Lease Payments From Sublease) (Details) $ in Thousands	Nov. 30, 2019USD ($)
Operating Leases [Abstract]
Remainder of 2020	$ 2,930
2021	2,341
2022	1,514
2023	1,514
2024	1,527
Thereafter	1,275
Total	$ 11,101

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details)	Oct. 18, 2019itemshares	Nov. 30, 2019USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under terms of the award		8,466
Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches | item	3
Life of awards	3 years
Expiration date	Aug. 31, 2022
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price of common stock as a percent of the average fair market value		85.00%
Shares issued to employee stock purchase plan participants		8,134
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld for tax		88
Shares withheld for tax, fair value | $		$ 3,000
Time-Based Award [Member] | Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches | item	1
Performance-Based Award [Member] | Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches | item	2
Tranche One [Member] | Time-Based Award [Member] | Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares plan participants are entitled to	25.00%
Vesting period of awards	3 years
Shares issued under terms of the award	25,101
Tranche Two and Three [Member] | Performance-Based Award [Member] | Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance-based objectives	100.00%
Shares issued under terms of the award	75,315
Tranche Two and Three [Member] | Performance-Based Award [Member] | Minimum [Member] | Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance award to be granted	50.00%
Tranche Two and Three [Member] | Performance-Based Award [Member] | Maximum [Member] | Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance award to be granted	200.00%
New shares granted	150,630

Stock-Based Compensation (Total

Stock-Based Compensation (Total Cost Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 1,851	$ 946
Long-Term Incentive Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	1,636	733
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	175	175
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 40	$ 38

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Income Taxes [Abstract]
Income tax benefit	$ (216)	$ 100
Pre-tax loss	$ (760)	$ (1,257)
Effective tax rate	28.40%

Loss Per Share (Narrative) (Det

Loss Per Share (Narrative) (Details)	3 Months Ended
	Nov. 30, 2019shares
Loss Per Share [Abstract]
Potentially dilutive securities were included in the calculation of diluted loss per share	0
Dilutive securities that would have been included in the computation of diluted EPS	264,000

Loss Per Share (Computation Of

Loss Per Share (Computation Of Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Numerator for basic and diluted loss per share:
Net loss	$ (544)	$ (1,357)
Denominator for basic and diluted loss per share:
Basic weighted average shares outstanding	13,982	13,917
Effect of dilutive securities:
Stock options and other stock-based awards
Diluted weighted average shares outstanding	13,982	13,917
EPS Calculations:
Net loss per share: Basic and diluted	$ (0.04)	$ (0.10)

Segment Information (Narrative)

Segment Information (Narrative) (Details)	3 Months Ended
	Nov. 30, 2019segmentitem
Segment Information [Abstract]
Number of divisions	2
Number of operating reportable segments | segment	3
Number of corporate services group	1

Segment Information (Schedule O

Segment Information (Schedule Of Segment Operations) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Segment Reporting Information [Line Items]
Sales to External Customers	$ 58,613	$ 53,829
Gross Profit	42,029	36,783
Adjusted EBITDA	4,961	3,169
Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	6,643	5,004
Operating Segments [Member] | Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	45,832	42,148
Gross Profit	34,531	29,932
Adjusted EBITDA	7,745	5,269
Operating Segments [Member] | Education Practice [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	11,082	10,347
Gross Profit	6,657	6,393
Adjusted EBITDA	(1,102)	(265)
Operating Segments [Member] | Direct Offices [Member] | Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	42,111	38,471
Gross Profit	31,411	27,070
Adjusted EBITDA	5,710	3,640
Operating Segments [Member] | International Licensees [Member] | Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	3,721	3,677
Gross Profit	3,120	2,862
Adjusted EBITDA	2,035	1,629
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	1,699	1,334
Gross Profit	841	458
Adjusted EBITDA	$ (1,682)	$ (1,835)

Segment Information (Reconcilia

Segment Information (Reconciliation Of Adjusted EBITDA) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	$ 4,961	$ 3,169
Stock-based compensation expense	(1,851)	(946)
Increase in the fair value of contingent consideration liabilities	(91)	(24)
Knowledge Capital wind-down costs	(389)
Licensee transition costs		(60)
Depreciation	(1,619)	(1,554)
Amortization	(1,170)	(1,238)
Loss from operations	(159)	(653)
Interest income	5	28
Interest expense	(606)	(632)
Loss before income taxes	(760)	(1,257)
Income tax benefit (provision)	216	(100)
Net loss	(544)	(1,357)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	6,643	5,004
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	$ (1,682)	$ (1,835)

Segment Information (Disaggrega

Segment Information (Disaggregation Of Revenue By Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 58,613	$ 53,829
Americas [Member]
Disaggregation of Revenue [Line Items]
Revenue	44,036	40,918
Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Revenue	10,139	9,280
Europe/Middle East/Africa [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 4,438	$ 3,631

Segment Information (Disaggre_2

Segment Information (Disaggregation Of Revenue By Type Of Service) (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 58,613	$ 53,829
Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	11,082	10,347
Services And Products [Member]
Disaggregation of Revenue [Line Items]
Revenue	31,426	29,798
Services And Products [Member] | Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,585	3,917
Subscriptions [Member]
Disaggregation of Revenue [Line Items]
Revenue	21,106	18,388
Subscriptions [Member] | Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	6,818	5,713
Royalties [Member]
Disaggregation of Revenue [Line Items]
Revenue	4,761	4,309
Royalties [Member] | Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	679	717
Leases And Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,320	1,334
Operating Segments [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	45,832	42,148
Operating Segments [Member] | Direct Offices [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	42,111	38,471
Operating Segments [Member] | International Licensees [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,721	3,677
Operating Segments [Member] | Services And Products [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	27,841	25,881
Operating Segments [Member] | Services And Products [Member] | Direct Offices [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	27,251	25,009
Operating Segments [Member] | Services And Products [Member] | International Licensees [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	590	872
Operating Segments [Member] | Subscriptions [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	14,288	12,675
Operating Segments [Member] | Subscriptions [Member] | Direct Offices [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	14,288	12,675
Operating Segments [Member] | Royalties [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,703	3,592
Operating Segments [Member] | Royalties [Member] | Direct Offices [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	572	787
Operating Segments [Member] | Royalties [Member] | International Licensees [Member] | Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,131	2,805
Corporate And Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,699	1,334
Corporate And Eliminations [Member] | Royalties [Member]
Disaggregation of Revenue [Line Items]
Revenue	379
Corporate And Eliminations [Member] | Leases And Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 1,320	$ 1,334

Investment In FC Organization_2

Investment In FC Organizational Products (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2019	Nov. 04, 2019	Aug. 31, 2019
Related Party Transaction [Line Items]
Receivable from related party		$ 3.2
Note receivable purchased from FCOP's third-party bank		$ 2.6
Minimum royalties	$ 1.3
Term of license agreement	30 years
License Contract [Member]
Related Party Transaction [Line Items]
Capitalized contract cost	$ 3.2
FCOP [Member]
Related Party Transaction [Line Items]
Percent ownership interest in related party	19.50%
Receivable from related party			$ 1
FPC [Member]
Related Party Transaction [Line Items]
Receivable from related party	$ 0.9
Royalty revenue	$ 0.4

Subsequent Event (Narrative) (D

Subsequent Event (Narrative) (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Dec. 31, 2019	Dec. 09, 2019
Subsequent Event [Line Items]
Common stock shares purchased		284,608
Price per share		$ 35.1361
Purchase price		$ 10
Knowledge Capital [Member]
Subsequent Event [Line Items]
Number of common stock shares held	2,800,000
Minimum [Member] | Knowledge Capital [Member]
Subsequent Event [Line Items]
Investment period	20 years