XML 39 R15.htm IDEA: XBRL DOCUMENT
v3.20.1

Stock-Based Compensation | 6 Months Ended
--- | ---
Feb. 29, 2020
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | ﻿ NOTE 8 – 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 |  | Two Quarters Ended
﻿ |  | February 29, |  |  | February 28, |  |  | February 29, |  |  | February 28,
﻿ |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019
﻿Long-term incentive awards | $ | 1,566 |  | $ | 824 |  | $ | 3,201 |  | $ | 1,557
﻿Restricted stock awards |  | 175 |  |  | 175 |  |  | 350 |  |  | 350
﻿Employee stock purchase plan |  | 52 |  |  | 44 |  |  | 93 |  |  | 82
﻿ | $ | 1,793 |  | $ | 1,043 |  | $ | 3,644 |  | $ | 1,989
﻿ During the two quarters ended February 29, 2020, we issued 270,531 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 two quarters of fiscal 2020, we withheld 103,117 shares of our common stock for taxes on stock-based compensation arrangements, which had a fair value of $3.6 million. The following is a description of the developments in our stock-based compensation plans during the quarter and two quarters ended February 29, 2020. ﻿ Stock Options ﻿ During December 2019, our Chief Executive Officer (CEO) and Chief Financial Officer (CFO) exercised stock options. Nearly all of the stock options exercised would have expired in January 2020. The following information applies to our stock option activity during the two quarters ended February 29, 2020. ﻿
﻿ |  |  |  |  |
﻿ |  |  |  |  |
﻿ |  |  |  |  | Weighted
﻿ |  |  |  |  | Avg. Exercise
﻿ |  | Number of |  |  | Price Per
﻿ |  | Stock Options |  |  | Share
﻿Outstanding at August 31, 2019 |  | 568,750 |  | $ | 11.67
﻿Granted |  | - |  |  | -
﻿Exercised |  | (350,000) |  |  | (11.73)
﻿Forfeited |  | - |  |  | -
﻿ |  |  |  |  |
﻿Outstanding at February 29, 2020 |  | 218,750 |  | $ | 11.57
﻿ |  |  |  |  |
﻿Options vested and exercisable at |  |  |  |  |
﻿February 29, 2020 |  | 218,750 |  | $ | 11.57
﻿ The stock options were exercised on a net basis (no cash was paid to exercise the options) and we withheld 102,656 shares of our common stock with a fair value of $3.6 million for income taxes. The intrinsic value of the exercised options totaled $8.0 million and we recognized an income tax benefit of $1.8 million (Note 9) during the quarter ended February 29, 2020. The remaining stock options outstanding at February 29, 2020 expire in January 2021. ﻿ Fiscal 2020 Restricted Stock Award ﻿ Our annual restricted stock award granted to non-employee members of the Board of Directors is administered under the terms of the 2019 Franklin Covey Co. Omnibus Incentive Plan, and is designed to provide our non-employee directors, who are not eligible to participate in our employee stock purchase plan, an opportunity to obtain an interest in the Company through the acquisition of shares of our common stock. The annual award is granted in January (following the annual shareholders’ meeting) of each year. For the fiscal 2020 award, each eligible director received a whole-share grant equal to $100,000 with a one-year vesting period. Our restricted stock award activity during the two quarters ended February 29, 2020 consisted of the following: ﻿
﻿ |  |  |  |  |
﻿ |  |  |  |  |
﻿ |  |  |  |  | Weighted-Average
﻿ |  |  |  |  | Grant Date
﻿ |  | Number of |  |  | Fair Value
﻿ |  | Shares |  |  | Per Share
﻿Restricted stock awards at |  |  |  |  |
﻿August 31, 2019 |  | 28,525 |  | $ | 24.54
﻿Granted |  | 21,420 |  |  | 32.68
﻿Forfeited |  | - |  |  | -
﻿Vested |  | (28,525) |  |  | 24.54
﻿Restricted stock awards at |  |  |  |  |
﻿February 29, 2020 |  | 21,420 |  | $ | 32.68
﻿ At February 29, 2020, there was $0.6 million of unrecognized compensation expense remaining on the fiscal 2020 Board of Director restricted share award. ﻿ Fiscal 2020 Long-Term Incentive Plan Award ﻿ On October 18, 2019, the Organization and Compensation Committee of the Board of Directors granted a new 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 and two quarters ended February 29, 2020, 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 and two quarters ended February 29, 2020, we issued 7,293 shares and 15,427 shares of our common stock to participants in the ESPP. ﻿

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration