Deferred Costs

12 Months Ended

Feb. 28, 2011

Deferred Costs [Abstract]

DEFERRED COSTS

NOTE 10 – DEFERRED COSTS

In the normal course of its business, the Corporation enters into agreements with certain customers for the supply of greeting cards and related products. Under these agreements, the customer may receive from the Corporation a combination of cash payments, credits, discounts, allowances and other incentive considerations to be earned by the customer as product is purchased from the Corporation over the stated term of the agreement or the minimum purchase volume commitment. In the event an agreement is not completed because a minimum purchase volume commitment is not met, in most instances, the Corporation has a claim for unearned advances under the agreement. The agreements may or may not specify the Corporation as the sole supplier of social expression products to the customer.

A portion of the total consideration may not be paid by the Corporation at the time the agreement is consummated. All future payment commitments are classified as liabilities at inception until paid. The payments that are expected to be made in the next twelve months are classified as “Other current liabilities” on the Consolidated Statement of Financial Position and the remaining payment commitments beyond the next twelve months are classified as “Other liabilities.” The Corporation maintains an allowance for deferred costs related to supply agreements of $10,700 and $12,400 at February 28, 2011 and 2010, respectively. This allowance is included in “Other assets” on the Consolidated Statement of Financial Position.

Deferred costs and future payment commitments were as follows:

	February 28, 2011			February 28, 2010
Prepaid expenses and other	$	88,352		$	82,914
Other assets		327,311			310,555
Deferred cost assets		415,663			393,469
Other current liabilities		(64,116	)		(53,701	)
Other liabilities		(76,301	)		(51,803	)
Deferred cost liabilities		(140,417	)		(105,504	)
Net deferred costs	$	275,246		$	287,965

A summary of the changes in the carrying amount of the Corporation’s net deferred costs during the years ended February 28, 2011, 2010 and 2009 is as follows:

Balance at February 29, 2008	$	338,124
Payments		105,952
Amortization		(133,548	)
Currency translation and other		(7,521	)
Balance at February 28, 2009		303,007
Payments		84,345
Amortization		(102,750	)
Currency translation and other		3,363
Balance at February 28, 2010		287,965
Payments		83,919
Amortization		(98,181	)
Currency translation and other		1,543
Balance at February 28, 2011	$	275,246