Business Segment Information

9 Months Ended

Nov. 25, 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						Nine Months Ended
(In thousands)	November 25, 2011			November 26, 2010			November 25, 2011			November 26, 2010
Total Revenue:
North American Social Expression Products	$	331,913		$	317,521		$	898,193		$	877,988
International Social Expression Products		103,352			80,103			249,448			192,412
AG Interactive		16,878			19,233			49,664			55,954
Non-reportable segments		11,472			13,281			37,452			42,911
	$	463,615		$	430,138		$	1,234,757		$	1,169,265
Segment Earnings (Loss):
North American Social Expression Products	$	28,016		$	51,098		$	113,009		$	143,788
International Social Expression Products		9,537			9,982			15,308			14,141
AG Interactive		3,737			5,135			10,970			10,393
Non-reportable segments		2,368			1,438			17,467			6,907
Unallocated
Interest expense		(5,853	)		(6,190	)		(17,708	)		(19,078	)
Profit sharing expense		(1,078	)		(2,978	)		(6,308	)		(7,429	)
Stock-based compensation expense		(2,676	)		(3,474	)		(8,038	)		(9,735	)
Corporate overhead expense		(4,351	)		(3,468	)		(19,257	)		(19,414	)
		(13,958	)		(16,110	)		(51,311	)		(55,656	)
	$	29,700		$	51,543		$	105,443		$	119,573

“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 $3.8 million, $8.0 million and $6.2 million at November 25, 2011, February 28, 2011 and November 26, 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.