Royalty Revenue and Related Expenses

9 Months Ended

Nov. 25, 2011

Royalty Revenue and Related Expenses [Abstract]

Royalty Revenue and Related Expenses

Note 5—Royalty Revenue and Related Expenses

The Corporation has agreements for licensing the Care Bears and Strawberry Shortcake characters and other intellectual property. These license agreements provide for royalty revenue to the Corporation, which is recorded in “Other revenue.” These license agreements may include the receipt of upfront advances, which are recorded as deferred revenue and earned during the period of the agreement. Revenues and expenses associated with the servicing of these agreements, primarily relating to the licensing activities included in non-reportable segments, are summarized as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	November 25, 2011		November 26, 2010		November 25, 2011		November 26, 2010
Royalty revenue	$	6,401	$	8,058	$	20,785	$	21,624
Royalty expenses
Material, labor and other production costs	$	2,789	$	2,784	$	7,781	$	7,932
Selling, distribution and marketing expenses		2,621		3,507		7,345		9,231
Administrative and general expenses		431		445		1,292		1,300
	$	5,841	$	6,736	$	16,418	$	18,463