regulations. As of August 31, 2000, the Company had facilitated the purchase of 3,559,000 shares with a cost of $30.0 million for the loan program. 

## 21. ACQUISITION AND DIVESTING ACTIVITIES 

## Fiscal 2000 

Effective February 28, 2000, the Company sold the assets and substantially all of the business of its commercial printing division of Publishers Press. The Company has retained printing operations necessary for the produc- tion of its planners and other related products (now “Franklin Covey Printing”). The final sales price, after adjustments under terms of the purchase agreement, was $13.4 million and consisted of $11.0 million in cash and a $2.4 million note receivable to the Company over five years. Net cash proceeds to the Company from the sale totaled $6.4 million. The note receivable is secured by property and other assets specified in the purchase agreement. The Company also recognized a $0.3 million gain from the sale of these assets, which is included as a component of net other expense in the accompanying consolidated statement of income for the fiscal year ended August 31, 2000. 

In December 1999, the Company purchased a majority interest in DayTracker.com, an on-line provider of scheduling and calendar services. The total purchase price was $11.0 million in cash and notes payable. The acquisition was accounted for using the purchase method of accounting and generated $9.0 million of intangible assets that are being amortized on a straight- line basis over five years. The acquired web site and its on-line scheduling and organizational services can be accessed on the Internet at www.franklincoveyplanner.com. 

During September 1999, the Company acquired the assets of the Professional Resources Organization (the Jack Phillips Group) for $1.5 million in cash. The Profes- sional Resources Organization is a leading measurement assessment firm specializing in measuring the impact and return on investment of training and consulting programs. The acquisition was accounted for using the purchase method of accounting and generated $1.5 million of intangible assets, which are being amortized over ten years. 

## Fiscal 1999 

In January 1999, the Company acquired the assets of Khalsa Associates for $2.7 million in cash. Khalsa Asso- ciates is a leading sales training company. The acquisition 

was accounted for using the purchase method of accounting and generated $2.7 million of intangible assets, which are being amortized over ten years. 

Effective August 1, 1998, the Company sold its Institute of Fitness located near St. George, Utah for $13.4 million in cash. During fiscal 1998, the Company also sold certain consulting units and discontinued its operations at certain international locations. The net impact of these divestitures was immaterial to the consolidated financial statements of the Company. 

## Fiscal 1998 

Effective April 1, 1998, the Company acquired King Bear, Inc. (“King Bear”), a Tokyo, Japan based company. King Bear, a former Covey licensee, provides leadership and time management training as well as publishing services. The publishing division of King Bear translated and currently publishes 7 Habits of Highly Effective People in Japanese. The cash purchase price was $5.3 million with additional contingent payments to be made over the following five years based upon the operating results of King Bear over that same period. During fiscal 2000, the remaining earnout period was canceled for $0.4 million in cash. The acquisition of King Bear was accounted for using the purchase method of accounting and generated $4.3 million of intangible assets, which are being amortized over 15 years. 

## 22. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) 

The unaudited quarterly financial information included on page 29 of the annual report to shareholders is an integral part of the consolidated financial statements. 

## 23. SUBSEQUENT EVENT 

Effective September 1, 2000, the Company entered into a joint venture with American Marketing Systems, Inc. (“AMS”), a major customer of the Company’s Personal Coaching division. The new company, Franklin Covey Coaching, LLC, will continue to provide personal coaching services for the Company’s customers. Under terms of the agreement, the Company and AMS will each own 50 percent of Franklin Covey Coaching, LLC and will be equally represented in the management of the new company. The Company contributed substantially all of the net assets of the Personal Coaching division to form the new entity. The Company expects that the new venture will broaden the curriculum and services currently offered in order to grow the personal coaching business over the long-term while maintaining a substantial portion of the Company’s current earnings from coaching activities. 

