Franklin Covey 2000 Annual Report 22 Management’s Discussion and Analysis PART II Management’s Discussion and  Analysis of Financial Condition and Results of Operations OVERVIEW through its retail stores, catalog operations, wholesale channels (including contract stationers), government channels, and the Internet. The training and education SBU, which includes Premier Agendas and personal coaching, is responsible for training, consulting and implementation services, and delivery of products to business, government, and educational institutions. The international SBU is responsible for the delivery of both products and services outside the United States. Other revenue primarily consists of the Company’s commercial printing operation, which was sold during fiscal 2000, and the National Institute of Fitness, which was sold during fiscal 1998. In addition, corporate functions, which consist primarily of essential internal support services such as finance, legal, information systems, and manufacturing and distribution, were aligned to support the operational SBUs.  Franklin Covey Co. (the “Company”) provides integrated learning and performance solutions to organizations  and individuals designed to increase productivity and improve skills for leadership, sales, communication, and other areas. Each solution set includes capabilities in training, consulting and assessment, and various application tools available in electronic or paper-based formats. The Company’s products and services are available through professional consulting services, public workshops, catalogs, retail stores, and the Internet at www.franklincovey.com and www.franklincoveyplanner.com. The Company recently released a new series of training curricula designed to enhance the productivity of people who regularly use electronic communication tools such as e-mail, voice mail, and the Internet. Each of the modules in the series can be taught in a variety of environments, ranging from classes in the Company’s new productivity centers, located in certain retail stores, to computer-based and on-line presentations. These new products are the latest addi- tions to a variety of products and services that include the Company’s well known Franklin Planner and the best-selling book,  The 7 Habits of Highly Effective People. The following is a summary of recent business acquisitions by the Company: 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 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 Professional Resources Organization is a leading measurement assessment firm specializing in measuring the impact and return on investment of training and consulting programs. In January 1999, the Company acquired the assets of Khalsa Associates for $2.7 million. Khalsa Associates is a leading sales training company. During the first quarter of fiscal 1999, the Company aligned its operations into the following three Strategic Business Units (“SBUs”): The Company is currently in the process of restructuring its operations and expects to report financial information under the new structure in fiscal 2001. Although the Company has substantially completed restructuring its operations, the above SBUs represent the primary management measurement tool until the new reporting structure is implemented. The consumer products SBU is responsible for distribution of the Company’s products 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 published  The 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 in consideration for $0.4 million in cash. • Consumer Products • Training and Education • International