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Segment Information | 12 Months Ended
--- | ---
Aug. 31, 2016
Segment Information [Abstract] |
Segment Information | ﻿ ﻿ 16.SEGMENT INFORMATION ﻿ Reportable Segments ﻿ Our revenues are primarily obtained from the sale of training and consulting services and related products. Effective September 1, 2015, we reorganized our internal reporting structure to include four new divisions and a corporate services group. A brief description of these new divisions follows: ﻿
| · |  | Direct Offices – This division includes our geographic sales offices that serve the United States and Canada; our international sales offices located in Japan, the United Kingdom, and Australia; and our public programs group.
﻿
| · |  | Strategic Markets – This division includes our government services office, the Sales Performance practice, the Customer Loyalty practice, and a new “Global 50” group, which is specifically focused on sales to large, multi-national organizations.
﻿
| · |  | Education practice – This division includes our domestic and international Education practice operations, which are centered on sales to educational institutions.
﻿
| · |  | International Licensees – This division is primarily comprised of our international licensees’ royalty revenues.
﻿ We determined that the new divisions are reportable segments under the applicable accounting guidance. Additionally, we determined that the Company’s chief operating decision maker is the CEO, and the primary measurement tool used in business unit performance analysis is Adjusted EBITDA, which may not be calculated as similarly titled amounts calculated by other companies. For reporting purposes, our consolidated Adjusted EBITDA can be calculated as our income or loss from operations excluding stock-based compensation, restructuring charges, depreciation expense, amortization expense, and certain other charges such as impaired asset charges and adjustments for changes in the fair value of contingent earn out liabilities from previous business acquisitions. ﻿ 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. ﻿ All prior period segment information has been revised to conform to our current organizational structure, assigned responsibilities, and primary internal reports. We account for our segment information on the same basis as the accompanying consolidated financial statements.
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿ |  | Sales to |  |  |  |
﻿Fiscal Year Ended |  | External |  |  |  | Adjusted
﻿August 31, 2016 |  | Customers |  | Gross Profit |  | EBITDA
﻿ |  |  |  |  |  |
﻿Direct offices | $ | 103,613 | $ | 74,642 | $ | 17,701
﻿Strategic markets |  | 29,778 |  | 18,749 |  | 3,536
﻿Education practice |  | 40,361 |  | 24,030 |  | 4,372
﻿International licensees |  | 17,629 |  | 13,667 |  | 9,174
﻿Total |  | 191,381 |  | 131,088 |  | 34,783
﻿Corporate and eliminations |  | 8,674 |  | 4,066 |  | (7,889)
﻿Consolidated | $ | 200,055 | $ | 135,154 | $ | 26,894
﻿ |  |  |  |  |  |
﻿Fiscal Year Ended |  |  |  |  |  |
﻿August 31, 2015 |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿Direct offices | $ | 113,087 | $ | 81,057 | $ | 18,801
﻿Strategic markets |  | 37,039 |  | 21,680 |  | 8,418
﻿Education practice |  | 33,128 |  | 18,797 |  | 2,531
﻿International licensees |  | 17,100 |  | 12,896 |  | 7,198
﻿Total |  | 200,354 |  | 134,430 |  | 36,948
﻿Corporate and eliminations |  | 9,587 |  | 3,659 |  | (5,090)
﻿Consolidated | $ | 209,941 | $ | 138,089 | $ | 31,858
﻿ |  |  |  |  |  |
﻿Fiscal Year Ended |  |  |  |  |  |
﻿August 31, 2014 |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿Direct offices | $ | 115,085 | $ | 82,162 | $ | 21,667
﻿Strategic markets |  | 31,841 |  | 18,156 |  | 4,625
﻿Education practice |  | 30,883 |  | 18,591 |  | 4,315
﻿International licensees |  | 17,065 |  | 13,505 |  | 8,406
﻿Total |  | 194,874 |  | 132,414 |  | 39,013
﻿Corporate and eliminations |  | 10,291 |  | 5,852 |  | (4,593)
﻿Consolidated | $ | 205,165 | $ | 138,266 | $ | 34,420
﻿ A reconciliation of Adjusted EBITDA to consolidated net income is provided below (in thousands): ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿YEAR ENDED |  |  |  |  |  |
﻿AUGUST 31, |  | 2016 |  | 2015 |  | 2014
﻿Enterprise Adjusted EBITDA | $ | 34,783 | $ | 36,948 | $ | 39,013
﻿Corporate expenses |  | (7,889) |  | (5,090) |  | (4,593)
﻿Consolidated Adjusted EBITDA |  | 26,894 |  | 31,858 |  | 34,420
﻿Stock-based compensation |  | (3,121) |  | (2,536) |  | (3,534)
﻿Reduction (increase) in |  |  |  |  |  |
﻿contingent consideration liability |  | (1,538) |  | (35) |  | 1,579
﻿Other expenses |  | (670) |  | - |  | -
﻿Impaired assets |  | - |  | (1,302) |  | (363)
﻿Restructuring costs |  | (776) |  | (587) |  | -
﻿Depreciation |  | (3,677) |  | (4,142) |  | (3,383)
﻿Amortization |  | (3,263) |  | (3,727) |  | (3,954)
﻿Income from operations |  | 13,849 |  | 19,529 |  | 24,765
﻿Interest income |  | 325 |  | 383 |  | 427
﻿Interest expense |  | (2,263) |  | (2,137) |  | (2,237)
﻿Discount on related party receivable |  | - |  | (363) |  | (1,196)
﻿Income before income taxes |  | 11,911 |  | 17,412 |  | 21,759
﻿Provision for income taxes |  | (4,895) |  | (6,296) |  | (3,692)
﻿Net income | $ | 7,016 | $ | 11,116 | $ | 18,067
﻿ Geographic Information ﻿ Our revenues are derived primarily from the United States. However, we also operate wholly 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 (in thousands):
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿YEAR ENDED |  |  |  |  |  |
﻿AUGUST 31, |  | 2016 |  | 2015 |  | 2014
﻿United States | $ | 155,153 | $ | 162,594 | $ | 153,999
﻿Japan |  | 14,997 |  | 14,446 |  | 16,652
﻿United Kingdom |  | 7,716 |  | 8,997 |  | 6,899
﻿China/Singapore |  | 5,027 |  | 3,821 |  | 3,322
﻿Canada |  | 4,357 |  | 6,460 |  | 8,780
﻿Australia |  | 3,404 |  | 3,774 |  | 4,623
﻿Thailand |  | 1,226 |  | 1,055 |  | 860
﻿Mexico/Central America |  | 917 |  | 974 |  | 923
﻿Denmark/Scandinavia |  | 863 |  | 729 |  | 831
﻿India |  | 677 |  | 708 |  | 684
﻿Central/Eastern Europe |  | 644 |  | 492 |  | 697
﻿Middle East |  | 584 |  | 670 |  | 594
﻿Indonesia |  | 579 |  | 651 |  | 761
﻿Malaysia |  | 384 |  | 511 |  | 405
﻿Brazil |  | 319 |  | 321 |  | 595
﻿South Korea |  | 318 |  | 179 |  | 725
﻿Others |  | 2,890 |  | 3,559 |  | 3,815
﻿ | $ | 200,055 | $ | 209,941 | $ | 205,165
﻿ During the periods presented in this report, there were no customers that accounted for more than ten percent of our consolidated revenues. ﻿ At August 31, 2016 and 2015, we had wholly owned direct offices in Australia, Japan, and the United Kingdom. Our long-lived assets, excluding intangible assets, goodwill, and the long-term portion of the FCOP receivable were held in the following locations for the periods indicated (in thousands): ﻿
﻿ |  |  |  |
﻿ |  |  |  |
﻿AUGUST 31, |  | 2016 |  | 2015
﻿United States/Canada | $ | 27,288 | $ | 28,770
﻿Japan |  | 2,045 |  | 1,227
﻿United Kingdom |  | 114 |  | 101
﻿Australia |  | 349 |  | 208
﻿ | $ | 29,796 | $ | 30,306
﻿ Inter-segment sales were immaterial and were eliminated in consolidation.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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