Business Segment Information

6 Months Ended

Aug. 26, 2011

Business Segment Information [Abstract]

Business Segment Information

Note 17 — Business Segment Information

The Corporation has North American Social Expression Products, International Social Expression Products, AG Interactive and non-reportable segments. The North American Social Expression Products and International Social Expression Products segments primarily design, manufacture and sell greeting cards and other related products through various channels of distribution with mass merchandise retailers as the primary channel. AG Interactive distributes social expression products, including electronic greetings and a broad range of graphics and digital services and products, through a variety of electronic channels, including Web sites, Internet portals, instant messaging services and electronic mobile devices. The Corporation’s non-reportable operating segments primarily include licensing activities and the design, manufacture and sale of display fixtures.

During the current year, certain items that were previously considered corporate expenses are now included in the calculation of segment earnings for the North American Social Expression Products segment. This change is the result of modifications to organizational structures, and is intended to better align the segment financial results with the responsibilities of segment management and the way management evaluates the Corporation’s operations. In addition, segment results are now reported using actual foreign exchange rates for the periods presented. Previously, segment results were reported at constant exchange rates to eliminate the impact of foreign currency fluctuations. Prior year segment results have been presented to be consistent with the current methodologies.

	Three Months Ended						Six Months Ended
(In thousands)	August 26, 2011			August 27, 2010			August 26, 2011			August 27, 2010
Total Revenue:
North American Social Expression Products	$	262,944		$	252,158		$	566,280		$	560,467
International Social Expression Products		75,891			54,736			146,096			112,309
AG Interactive		16,177			18,167			32,786			36,721
Non-reportable segments		13,781			17,758			25,980			29,630
	$	368,793		$	342,819		$	771,142		$	739,127
Segment Earnings (Loss):
North American Social Expression Products	$	25,699		$	28,627		$	84,993		$	92,690
International Social Expression Products		2,468			1,325			5,771			4,159
AG Interactive		4,597			2,886			7,233			5,258
Non-reportable segments		10,493			3,317			15,099			5,469
Unallocated
Interest expense		(5,748	)		(6,700	)		(11,855	)		(12,888	)
Profit sharing expense		(1,543	)		(921	)		(5,230	)		(4,451	)
Stock-based compensation expense		(2,700	)		(3,611	)		(5,362	)		(6,261	)
Corporate overhead expense		(8,313	)		(7,910	)		(14,906	)		(15,946	)
		(18,304	)		(19,142	)		(37,353	)		(39,546	)
	$	24,953		$	17,013		$	75,743		$	68,030

“Corporate overhead expense” includes costs associated with corporate operations including, among other costs, senior management, corporate finance, legal and insurance programs.

Termination Benefits

Termination benefits are primarily considered part of an ongoing benefit arrangement, accounted for in accordance with ASC Topic 712, “Compensation — Nonretirement Postemployment Benefits,” and are recorded when payment of the benefits is probable and can be reasonably estimated.

The balance of the severance accrual was $4.2 million, $8.0 million and $9.0 million at August 26, 2011, February 28, 2011 and August 27, 2010, respectively. The payments expected within the next twelve months are included in “Accrued liabilities” while the remaining payments beyond the next twelve months are included in “Other liabilities” on the Consolidated Statement of Financial Position.