EX-99.2 9 e99_2.htm SCHEDULE 2: VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Schedule 2: Valuation and Qualifying Accounts and Reserves
 
 
 
 

Exhibit 99.2

SCHEDULE II
 
FRANKLIN COVEY CO.
 
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
For the Three Years Ended August 31, 2006
(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
  
Charged to Other Accounts
  
 
 
Deductions
  
Balance at End of Period
  
                       
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
    
4,669
    
-
    
(4,418
)(2)
  
5,324
  
   
$
6,107
  
$
5,956
  
$
-
  
$
(5,314
)
$
6,749
  
                                 
Year ended August 31, 2006:
                                
Allowance for doubtful accounts
  
$
1,425
  
$
365
  
$
564
(4)
$
(1,375
)(1)
$
979
  
Allowances for inventories
    
5,324
    
989
    
-
    
(2,990
)(2)
  
3,323
  
   
$
6,749
  
$
1,354
  
$
564
  
$
(4,365
)
$
4,302
  
                                 
_____________________
(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
(4) Amount was charged against balances recorded in accrued liabilities