Business Segment Information

3 Months Ended

May 25, 2012

Business Segment Information [Abstract]

Business Segment Information

Note 14 – 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 merchandising 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.

(In thousands)	Three Months Ended
Total Revenue:	May 25, 2012		May 27, 2011
North American Social Expression Products	$	308,559	$	304,684
International Social Expression Products		62,680		70,205
AG Interactive		15,496		16,608
Non-reportable segments		6,371		12,199
	$	393,106	$	403,696

(In thousands)	Three Months Ended
Segment Earnings (Loss) Before Tax:	May 25, 2012			May 27, 2011
North American Social Expression Products	$	56,218		$	59,294
International Social Expression Products		(22,557	)		3,303
AG Interactive		3,773			2,636
Non-reportable segments		(58	)		4,606
Unallocated
Interest expense		(4,376	)		(6,108	)
Profit sharing expense		(2,980	)		(3,687	)
Stock-based compensation expense		(1,869	)		(2,662	)
Corporate overhead expense		(17,731	)		(6,592	)
		(26,956	)		(19,049	)
	$	10,420		$	50,790

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

Refer to Note 1 for segment information related to certain charges associated with activities and transactions in connection with Clinton Cards that do not have comparative amounts in the prior year.

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 $5.0 million, $6.8 million and $5.8 million at May 25, 2012, February 29, 2012 and May 27, 2011, 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.