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 , multipliers , and the 4 disciplines of execution , and proprietary content in the areas of execution , sales performance , productivity , customer loyalty , leadership , and education . we believe that our offerings help individuals , teams , and entire organizations transform their results through achieving systematic , sustainable , and measurable changes in human behavior . our offerings are described in further detail at www.franklincovey.com . the information contained in , or that can be accessed through , our website does not constitute a part of this annual report , and the descriptions found therein should not be viewed as a warranty or guarantee of results . our fiscal year ends on august 31 , and unless otherwise indicated , fiscal 2020 , fiscal 2019 , and fiscal 2018 refer to the twelve-month periods ended august 31 , 2020 , 2019 , 2018 , and so forth . impact of covid-19 pandemic on fiscal 2020 covid-19 was first identified in china during december 2019 , and subsequently declared a pandemic by the world health organization . since its discovery , covid-19 has surfaced in nearly all regions around the world and has resulted in government-imposed travel restrictions and business slowdowns or shutdowns in affected areas . as a result , covid-19 has impacted our business globally , including our licensees , through office and school closures . in particular , these closures impacted our third and fourth quarters of fiscal 2020 as described throughout this annual report on form 10-k for fiscal 2020. after strong financial performance during the first two quarters of fiscal 2020 , our financial results in the third and fourth quarters of fiscal 2020 were adversely impacted by the covid-19 pandemic and the resulting closure of offices and educational institutions throughout the united states and in the countries where we operate direct offices and contract with licensee partners to deliver our offerings . we closed our corporate offices and restricted travel to protect the health and safety of our associates and clients in an effort to slow the spread of the pandemic . our international direct offices also followed the same pattern of closures and restrictions on associate travel and delivery of our offerings . these actions , and similar steps taken by most of our clients , resulted in decreased sales during the third and fourth quarters as previously scheduled onsite events , client-facilitated presentations , and coaching days were postponed or canceled . 25 despite the difficult economic environment in the second half of fiscal 2020 , we were pleased with the continued strength of our subscription sales and the quick pivot to delivering content live-online and through our other digital modalities . our subscription service clients are able to access content and programs from remote locations , which allows continued engagement of personnel and students during long periods of displacement from normal working or classroom conditions . to be successful in our industry , it is important to create effective learning environments for our clients and students , and we believe our previous investments in digital and remote delivery modalities are key to surviving and then thriving in the current environment . according to the training magazine 2020 training industry report , most companies expect to retain at least some aspects of remote learning after the covid-19 pandemic is over . we believe our ability to deliver content and offerings over a broad array of modalities to suit a client 's needs will prove to be a valuable strategic advantage , and we believe these capabilities will accelerate our recovery from the effects of the pandemic and will generate increased opportunities in future periods . however , our recovery from the covid-19 pandemic is dependent upon a number of factors , many of which are not within our control , such as the timing of re-opening national , state , and local economies ; continuing effects of the pandemic on client operations ; and other governmental responses to address the impacts of the pandemic . we will continue to monitor these developments and their actual and potential impacts on our financial position , results of operations , and liquidity . on march 27 , 2020 , in response to covid-19 , the united states government enacted the coronavirus aid , relief , and economic security act ( the cares act ) . the cares act is a relief package consisting of various stimulus measures , such as tax payment deferrals , various business incentives , and makes certain technical corrections to the u.s. tax cuts and jobs act of 2017. while beneficial to the economy and business overall , the enactment of the cares act and similar legislation in other countries throughout the world did not have a material impact on our fiscal 2020 consolidated financial statements . financial overview our fiscal 2020 financial results are a tale of two halves . after strong financial performance during the first two quarters of fiscal 2020 , our financial results in the third and fourth quarters of fiscal 2020 were adversely impacted by the covid-19 pandemic . financial results in the first two quarters of fiscal 2020 showed strong growth in revenues , operating results , and cash flows over the prior year . consolidated sales through february 29 , 2020 grew 8 percent , with enterprise division sales increasing $ 5.0 million , or 6 percent , and education division revenues increasing $ 1.9 million , or 10 percent , compared with the prior year . story_separator_special_tag foreign exchange rates had a $ 0.1 million adverse impact on our direct office segment operating results during fiscal 2020. international licensees segment in countries or foreign locations where we do not have a directly owned office , our training and consulting services are delivered through independent licensees . the following comparative information is for our international licensee operations for the periods indicated ( in thousands ) : replace_table_token_5_th sales . international licensee revenues are primarily comprised of royalty revenues received from our licensee partners . for fiscal 2020 , our licensee revenues were impacted by the covid-19 pandemic , which significantly reduced sales in the second half of the year as many licensee countries enacted economic and social restrictions that prohibited in-person presentations . prior to the full onset of the pandemic , our international licensee royalty revenue during the first two quarters of fiscal 2020 increased by $ 0.2 million compared with the prior year . many of our international licensees had just started to sell the all access pass at the onset of the pandemic and did not have a substantial base of deferred subscription revenue as these operations were primarily dependent upon live onsite training and coaching . due to the benefits of the all access pass , including its digital delivery platform and high revenue retention rates , we believe that our licensees will accelerate their transition to the all access pass in future periods , which we believe will provide significant benefits for our licensee partners and their clients . gross profit . gross profit decreased due to an overall decrease in licensee revenues during fiscal 2020 as described above . licensee gross margin remained strong in fiscal 2020 and was consistent with the prior year . sg & a expenses . international licensee sg & a expenses increased primarily due to additional bad debt expense related to expected collection issues in the wake of the covid-19 pandemic . foreign exchange rates had an insignificant impact on our licensee sales and results of operations during fiscal 2020 . 31 education division our education division is comprised of our domestic and international education practice operations ( focused on sales to educational institutions ) and includes our widely acclaimed leader in me program . the following comparative information is for our education division in the periods indicated ( in thousands ) : replace_table_token_6_th sales . growth in our education division during the first half of fiscal 2020 was offset by decreased sales during the third and fourth quarters , which are generally the busiest months for our education division , resulting from the covid-19 pandemic . despite the significant headwinds faced by educational institutions during the third and fourth quarters as schools closed , teaching moved online , and budgets were constrained , nearly 2,200 existing leader in me schools renewed their leader in me subscriptions ( a number higher than in fiscal 2019 ) and 320 new schools became leader in me schools . we believe these were remarkable achievements in the current education and economic environment . during fiscal 2020 , leader in me subscription revenues increased 11 percent compared with the prior year and our coaches delivered two percent more coaching days as clients pivoted to live on-line delivery of these days . although pandemic-related issues slowed the growth of new schools entering into leader in me agreements in fiscal 2020 , we are optimistic that continued demand for the leader in me program will drive sales growth in future periods . as of august 31 , 2020 , the leader in me program is used in over 4,200 schools and in over 50 countries . gross profit . education segment cost of sales and gross profit decreased primarily due to sales activity as previously described . education division gross margin remained strong at 62.4 percent and was consistent with the prior year 's 62.1 percent . sg & a expenses . education division sg & a expense increased primarily due to investments in additional sales and sales-related personnel in late fiscal 2019 and early fiscal 2020 to fuel growth that was eventually dampened by the continuing covid-19 pandemic , and increased bad debt expense . these increased costs were partially offset by reduced travel and commission expense resulting from travel restrictions and reduced revenues . education division results of operations were adversely impacted by $ 0.2 million of unfavorable exchange rates compared with the prior year . other expenses restructuring costs – during the fourth quarter of fiscal 2020 we restructured certain information technology , corporate operational , and marketing functions . we incurred $ 1.6 million of severance costs related to these restructuring activities . at august 31 , 2020 , we had $ 1.2 million of remaining accrued restructuring costs , which are expected to be paid during fiscal 2021. depreciation – depreciation expense increased $ 0.3 million compared with fiscal 2019 primarily due to the addition of new assets and investments in technology during fiscal 2020 and in prior years . based on previous property and equipment acquisitions , and expected capital additions during fiscal 2021 , we expect depreciation expense will total approximately $ 6.5 million in fiscal 2021. amortization – our amortization expense decreased $ 0.4 million compared with the prior year primarily due to the full amortization of certain intangible assets . we expect the amortization of intangible assets will total approximately $ 4.5 million during fiscal 2021 . 32 income taxes our effective income tax rate for fiscal 2020 was approximately 1,284 percent compared with an effective tax rate of approximately 273 percent in fiscal 2019. the increased effective tax rate in fiscal 2020 was primarily due to $ 11.3 million of additional income tax expense from an increase in the valuation allowance against our deferred income tax assets , which was partially offset by the tax benefit resulting from the exercise of stock options by our ceo and cfo . our near break-even pre-tax

liquidity and capital resources introduction our cash balance at august 31 , 2020 totaled $ 27.1 million , with no borrowings on our $ 15.0 million revolving credit facility . of our $ 27.1 million in cash at august 31 , 2020 , $ 12.2 million was held outside the u.s. by our foreign subsidiaries . we routinely repatriate cash from our foreign subsidiaries and consider cash generated from foreign activities a key component of our overall liquidity position . our primary sources of liquidity are cash flows from the sale of services in the normal course of business and available proceeds from our credit facility . our primary uses of liquidity include payments for operating activities , capital expenditures ( including curriculum development ) , debt payments , contingent consideration payments from the prior acquisition of businesses , working capital expansion , and purchases of our common stock . the following table summarizes our cash flows from operating , investing , and financing activities for the past three years ( in thousands ) : replace_table_token_8_th our current credit agreement on august 7 , 2019 , we entered into a new credit agreement ( the 2019 credit agreement ) with our existing lender , which replaced the amended and restated credit agreement , dated march 2011. the 2019 credit agreement provides up to $ 25.0 million in term loans and a $ 15.0 million revolving line of credit , which expires in august 2024. upon entering into the 2019 credit agreement , we borrowed $ 20.0 million through a term loan and used the proceeds to repay all indebtedness under the original credit agreement . during november 2019 , we borrowed the remaining $ 5.0 million term loan available on the 2019 credit agreement . in anticipation of potential covenant compliance issues associated with the covid-19 pandemic and the uncertainty of the economic recovery , on july 8 , 2020 , we entered into the first modification agreement to the 2019 credit agreement .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources introduction our cash balance at august 31 , 2020 totaled $ 27.1 million , with no borrowings on our $ 15.0 million revolving credit facility . of our $ 27.1 million in cash at august 31 , 2020 , $ 12.2 million was held outside the u.s. by our foreign subsidiaries . we routinely repatriate cash from our foreign subsidiaries and consider cash generated from foreign activities a key component of our overall liquidity position . our primary sources of liquidity are cash flows from the sale of services in the normal course of business and available proceeds from our credit facility . our primary uses of liquidity include payments for operating activities , capital expenditures ( including curriculum development ) , debt payments , contingent consideration payments from the prior acquisition of businesses , working capital expansion , and purchases of our common stock . the following table summarizes our cash flows from operating , investing , and financing activities for the past three years ( in thousands ) : replace_table_token_8_th our current credit agreement on august 7 , 2019 , we entered into a new credit agreement ( the 2019 credit agreement ) with our existing lender , which replaced the amended and restated credit agreement , dated march 2011. the 2019 credit agreement provides up to $ 25.0 million in term loans and a $ 15.0 million revolving line of credit , which expires in august 2024. upon entering into the 2019 credit agreement , we borrowed $ 20.0 million through a term loan and used the proceeds to repay all indebtedness under the original credit agreement . during november 2019 , we borrowed the remaining $ 5.0 million term loan available on the 2019 credit agreement . in anticipation of potential covenant compliance issues associated with the covid-19 pandemic and the uncertainty of the economic recovery , on july 8 , 2020 , we entered into the first modification agreement to the 2019 credit agreement .
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 Suspicious Activity Report : 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 , multipliers , and the 4 disciplines of execution , and proprietary content in the areas of execution , sales performance , productivity , customer loyalty , leadership , and education . we believe that our offerings help individuals , teams , and entire organizations transform their results through achieving systematic , sustainable , and measurable changes in human behavior . our offerings are described in further detail at www.franklincovey.com . the information contained in , or that can be accessed through , our website does not constitute a part of this annual report , and the descriptions found therein should not be viewed as a warranty or guarantee of results . our fiscal year ends on august 31 , and unless otherwise indicated , fiscal 2020 , fiscal 2019 , and fiscal 2018 refer to the twelve-month periods ended august 31 , 2020 , 2019 , 2018 , and so forth . impact of covid-19 pandemic on fiscal 2020 covid-19 was first identified in china during december 2019 , and subsequently declared a pandemic by the world health organization . since its discovery , covid-19 has surfaced in nearly all regions around the world and has resulted in government-imposed travel restrictions and business slowdowns or shutdowns in affected areas . as a result , covid-19 has impacted our business globally , including our licensees , through office and school closures . in particular , these closures impacted our third and fourth quarters of fiscal 2020 as described throughout this annual report on form 10-k for fiscal 2020. after strong financial performance during the first two quarters of fiscal 2020 , our financial results in the third and fourth quarters of fiscal 2020 were adversely impacted by the covid-19 pandemic and the resulting closure of offices and educational institutions throughout the united states and in the countries where we operate direct offices and contract with licensee partners to deliver our offerings . we closed our corporate offices and restricted travel to protect the health and safety of our associates and clients in an effort to slow the spread of the pandemic . our international direct offices also followed the same pattern of closures and restrictions on associate travel and delivery of our offerings . these actions , and similar steps taken by most of our clients , resulted in decreased sales during the third and fourth quarters as previously scheduled onsite events , client-facilitated presentations , and coaching days were postponed or canceled . 25 despite the difficult economic environment in the second half of fiscal 2020 , we were pleased with the continued strength of our subscription sales and the quick pivot to delivering content live-online and through our other digital modalities . our subscription service clients are able to access content and programs from remote locations , which allows continued engagement of personnel and students during long periods of displacement from normal working or classroom conditions . to be successful in our industry , it is important to create effective learning environments for our clients and students , and we believe our previous investments in digital and remote delivery modalities are key to surviving and then thriving in the current environment . according to the training magazine 2020 training industry report , most companies expect to retain at least some aspects of remote learning after the covid-19 pandemic is over . we believe our ability to deliver content and offerings over a broad array of modalities to suit a client 's needs will prove to be a valuable strategic advantage , and we believe these capabilities will accelerate our recovery from the effects of the pandemic and will generate increased opportunities in future periods . however , our recovery from the covid-19 pandemic is dependent upon a number of factors , many of which are not within our control , such as the timing of re-opening national , state , and local economies ; continuing effects of the pandemic on client operations ; and other governmental responses to address the impacts of the pandemic . we will continue to monitor these developments and their actual and potential impacts on our financial position , results of operations , and liquidity . on march 27 , 2020 , in response to covid-19 , the united states government enacted the coronavirus aid , relief , and economic security act ( the cares act ) . the cares act is a relief package consisting of various stimulus measures , such as tax payment deferrals , various business incentives , and makes certain technical corrections to the u.s. tax cuts and jobs act of 2017. while beneficial to the economy and business overall , the enactment of the cares act and similar legislation in other countries throughout the world did not have a material impact on our fiscal 2020 consolidated financial statements . financial overview our fiscal 2020 financial results are a tale of two halves . after strong financial performance during the first two quarters of fiscal 2020 , our financial results in the third and fourth quarters of fiscal 2020 were adversely impacted by the covid-19 pandemic . financial results in the first two quarters of fiscal 2020 showed strong growth in revenues , operating results , and cash flows over the prior year . consolidated sales through february 29 , 2020 grew 8 percent , with enterprise division sales increasing $ 5.0 million , or 6 percent , and education division revenues increasing $ 1.9 million , or 10 percent , compared with the prior year . story_separator_special_tag foreign exchange rates had a $ 0.1 million adverse impact on our direct office segment operating results during fiscal 2020. international licensees segment in countries or foreign locations where we do not have a directly owned office , our training and consulting services are delivered through independent licensees . the following comparative information is for our international licensee operations for the periods indicated ( in thousands ) : replace_table_token_5_th sales . international licensee revenues are primarily comprised of royalty revenues received from our licensee partners . for fiscal 2020 , our licensee revenues were impacted by the covid-19 pandemic , which significantly reduced sales in the second half of the year as many licensee countries enacted economic and social restrictions that prohibited in-person presentations . prior to the full onset of the pandemic , our international licensee royalty revenue during the first two quarters of fiscal 2020 increased by $ 0.2 million compared with the prior year . many of our international licensees had just started to sell the all access pass at the onset of the pandemic and did not have a substantial base of deferred subscription revenue as these operations were primarily dependent upon live onsite training and coaching . due to the benefits of the all access pass , including its digital delivery platform and high revenue retention rates , we believe that our licensees will accelerate their transition to the all access pass in future periods , which we believe will provide significant benefits for our licensee partners and their clients . gross profit . gross profit decreased due to an overall decrease in licensee revenues during fiscal 2020 as described above . licensee gross margin remained strong in fiscal 2020 and was consistent with the prior year . sg & a expenses . international licensee sg & a expenses increased primarily due to additional bad debt expense related to expected collection issues in the wake of the covid-19 pandemic . foreign exchange rates had an insignificant impact on our licensee sales and results of operations during fiscal 2020 . 31 education division our education division is comprised of our domestic and international education practice operations ( focused on sales to educational institutions ) and includes our widely acclaimed leader in me program . the following comparative information is for our education division in the periods indicated ( in thousands ) : replace_table_token_6_th sales . growth in our education division during the first half of fiscal 2020 was offset by decreased sales during the third and fourth quarters , which are generally the busiest months for our education division , resulting from the covid-19 pandemic . despite the significant headwinds faced by educational institutions during the third and fourth quarters as schools closed , teaching moved online , and budgets were constrained , nearly 2,200 existing leader in me schools renewed their leader in me subscriptions ( a number higher than in fiscal 2019 ) and 320 new schools became leader in me schools . we believe these were remarkable achievements in the current education and economic environment . during fiscal 2020 , leader in me subscription revenues increased 11 percent compared with the prior year and our coaches delivered two percent more coaching days as clients pivoted to live on-line delivery of these days . although pandemic-related issues slowed the growth of new schools entering into leader in me agreements in fiscal 2020 , we are optimistic that continued demand for the leader in me program will drive sales growth in future periods . as of august 31 , 2020 , the leader in me program is used in over 4,200 schools and in over 50 countries . gross profit . education segment cost of sales and gross profit decreased primarily due to sales activity as previously described . education division gross margin remained strong at 62.4 percent and was consistent with the prior year 's 62.1 percent . sg & a expenses . education division sg & a expense increased primarily due to investments in additional sales and sales-related personnel in late fiscal 2019 and early fiscal 2020 to fuel growth that was eventually dampened by the continuing covid-19 pandemic , and increased bad debt expense . these increased costs were partially offset by reduced travel and commission expense resulting from travel restrictions and reduced revenues . education division results of operations were adversely impacted by $ 0.2 million of unfavorable exchange rates compared with the prior year . other expenses restructuring costs – during the fourth quarter of fiscal 2020 we restructured certain information technology , corporate operational , and marketing functions . we incurred $ 1.6 million of severance costs related to these restructuring activities . at august 31 , 2020 , we had $ 1.2 million of remaining accrued restructuring costs , which are expected to be paid during fiscal 2021. depreciation – depreciation expense increased $ 0.3 million compared with fiscal 2019 primarily due to the addition of new assets and investments in technology during fiscal 2020 and in prior years . based on previous property and equipment acquisitions , and expected capital additions during fiscal 2021 , we expect depreciation expense will total approximately $ 6.5 million in fiscal 2021. amortization – our amortization expense decreased $ 0.4 million compared with the prior year primarily due to the full amortization of certain intangible assets . we expect the amortization of intangible assets will total approximately $ 4.5 million during fiscal 2021 . 32 income taxes our effective income tax rate for fiscal 2020 was approximately 1,284 percent compared with an effective tax rate of approximately 273 percent in fiscal 2019. the increased effective tax rate in fiscal 2020 was primarily due to $ 11.3 million of additional income tax expense from an increase in the valuation allowance against our deferred income tax assets , which was partially offset by the tax benefit resulting from the exercise of stock options by our ceo and cfo . our near break-even pre-tax

