Form 10-K 21 Franklin Covey 2000 Annual Report Item 2. Properties Franklin Covey’s principal business operations and executive offices are located in Salt Lake City, Utah and Provo, Utah. The Company’s Salt Lake City facilities currently consist of seven buildings with approximately 860,000 available square feet, including approximately 551,000 square feet for manufacturing, distribution, and warehousing, and approximately 309,000 square feet  for administration. Franklin Covey owns all of the Company’s Salt Lake City facilities, subject to mortgages of approximately $2.9 million as of August 31, 2000.  The Company’s Provo, Utah operations consisted of four buildings located within a fifteen-mile area. As part of its restructuring plan, the Company exited its leased office space located in two of the Provo buildings, totaling approximately 119,000 square feet, during fiscal 2000. The Company entered into a sublease agreement for the majority of the remaining life of the Company’s lease obligation on the office space. The sublease agreement specifies base rental rates and requires the subleasee to pay all direct costs incurred by the Company, including taxes and maintenance. The Company occupies all or a portion of the remaining two buildings located in Provo, with total leased space of approximately 54,000 square feet as of August 31, 2000. These two buildings house a call center and additional office space used by certain divisions of the Company. Lease contracts on the Provo buildings terminate intermittently through the year 2009. Also in connection with its restructuring plan, the Company has moved its sales and marketing functions for the training and education business from the Provo facilities to eight leased regional sales offices located in New York, Chicago, Los Angeles, San Francisco, Columbus, Ohio, Dallas, Atlanta, and Washington, D.C. The regional offices were fully operational as of August 31, 2000. Franklin Covey also currently operates 135 retail stores under operating leases, with remaining terms of up to ten years. Certain of these store leases include provisions for contingent rentals based on a percentage of sales. In addition, the Company maintains sales, administrative and/or warehouse facilities in or near Salt Lake City; Phoenix; Atlanta; Dallas; Washington, D.C.; and Bellingham, Washington. The Company also has foreign offices and facilities located in Cambridge, Calgary, Ottawa, Tokyo, London, Brussels, Toronto, Vancouver, Montreal, Sydney, Brisbane, Mexico City, Guadalajara, and Monterrey. The Toronto office is company owned, subject to a mortgage of $1.0 million at August 31, 2000. All other international offices are subject to operating leases that expire intermittently through the year 2006. The Company believes its facilities are adequate and suitable for its current business needs. The Company is not a party to, nor is any of its property subject to, any material pending legal proceedings, nor are any such proceedings known to the Company to be contemplated. No matters were submitted to a vote of security  holders during the fourth quarter of the year ended August 31, 2000. Item 4. Submission of Matters to a Vote of Security Holders Item 3. Legal Proceedings