Royalty Revenue and Related Expenses

3 Months Ended

May 25, 2012

Royalty Revenue and Related Expenses [Abstract]

Royalty Revenue and Related Expenses

Note 4 – 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
(In thousands)	May 25, 2012		May 27, 2011
Royalty revenue	$	3,729	$	5,419
Royalty expenses
Material, labor and other production costs	$	2,328	$	2,426
Selling, distribution and marketing expenses		656		1,345
Administrative and general expenses		422		389
	$	3,406	$	4,160

In addition to the expenses disclosed above, the Corporation incurred charges of $2.1 million associated with our licensing business. See Note 5 for further information.