EX-99.2 7 exhibit992.htm EXHIBIT 99.2 Exhibit 99.2
 
SCHEDULE II
FRANKLIN COVEY CO.
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
For the Three Years Ended August 31, 2005
(Dollars in Thousands)


Column A
  
Column B
  
Column C
  
Column D
  
Column E
  
                   
                   
       
Additions
          
 
Description
  
Balance at Beginning of Period
  
Charged to Costs and Expenses
  
 
Deductions
  
 
Balance at End of Period
  
                   
Year ended August 31, 2003:
                          
Allowance for doubtful accounts
  
$
1,802
  
$
912
  
$
(890
)(1)
$
1,824
  
Allowances for inventories
    
5,389
    
4,755
    
(5,125
)(2)
  
5,019
  
Reserve for losses on management  stock loans
    
25,827
    
3,903
    
-
    
29,730
  
   
$
33,018
  
$
9,570
  
$
(6,015
)
$
36,573
  
                           
Year ended August 31, 2004:
                          
Allowance for doubtful accounts
  
$
1,824
  
$
491
  
$
(1,281
)(1)
$
1,034
  
Allowances for inventories
    
5,019
    
2,844
    
(2,790
)(2)
  
5,073
  
Reserve for losses on management  stock loans
    
29,730
    
-
    
(29,730
)(3)
  
-
  
   
$
36,573
  
$
3,335
  
$
(33,801
)
$
6,107
  
                           
Year ended August 31, 2005:
                          
Allowance for doubtful accounts
  
$
1,034
  
$
1,287
  
$
(896
)(1)
$
1,425
  
Allowances for inventories
    
5,073
    
3,223
    
(2,972
)(2)
  
5,324
  
   
$
6,107
  
$
4,510
  
$
(3,868
)
$
6,749
  
                           
(1) Represents a write-off of accounts deemed uncollectible
(2) Reduction in the allowance is due to a write-off of obsolete inventories
(3) Reduction in loan loss is due to modifications made to the terms of the management stock loans, which required new accounting treatment