Customer Allowances and Discounts

12 Months Ended

Feb. 29, 2012

Customer Allowances and Discounts [Abstract]

CUSTOMER ALLOWANCES AND DISCOUNTS

NOTE 6 – CUSTOMER ALLOWANCES AND DISCOUNTS

In the normal course of business, the Corporation enters into agreements with certain customers for the supply of greeting cards and related products. The agreements are negotiated individually to meet competitive situations and, therefore, while some aspects of the agreements may be similar, important contractual terms may vary. Under these agreements, the customer may receive allowances and discounts including rebates, marketing allowances and various other allowances and discounts. These amounts are recorded as reductions of gross accounts receivable or included in accrued liabilities and are recognized as reductions of net sales when earned. These amounts are earned by the customer as product is purchased from the Corporation and are recorded based on the terms of individual customer contracts.

Trade accounts receivable are reported net of certain allowances and discounts. The most significant of these are as follows:

	February 29, 2012		February 28, 2011
Allowance for seasonal sales returns	$	34,285	$	34,058
Allowance for outdated products		10,976		8,264
Allowance for doubtful accounts		4,480		5,374
Allowance for marketing funds		26,679		25,631
Allowance for rebates		27,648		24,920
	$	104,068	$	98,247

Certain customer allowances and discounts are settled in cash. These accounts, primarily rebates, which are classified as “Accrued liabilities” on the Consolidated Statement of Financial Position, totaled $13,698 and $11,913 as of February 29, 2012 and February 28, 2011, respectively.