Business Segment Information

6 Months Ended

Aug. 24, 2012

Business Segment Information

Note 16 – Business Segment Information

The Corporation has North American Social Expression Products, International Social Expression Products, Retail Operations, 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. At August 24, 2012, the Corporation operated approximately 400 card and gift retail stores in the United Kingdom through its Retail Operations segment. The stores sell products purchased from the International Social Expression Products segment as well as products purchased from other vendors. 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.

	Three Months Ended						Six Months Ended
(In thousands)	August 24, 2012			August 26, 2011			August 24, 2012			August 26, 2011
Total Revenue:
North American Social Expression Products	$	265,856		$	264,345		$	574,415		$	569,028
International Social Expression Products		74,834			75,891			137,514			146,096
Intersegment items		(13,542	)		—			(13,542	)		—
Net		61,292			75,891			123,972			146,096
Retail Operations		39,884			—			39,884			—
AG Interactive		15,777			16,177			31,273			32,786
Non-reportable segments		11,027			13,781			17,398			25,980
	$	393,836		$	370,194		$	786,942		$	773,890
Segment (Loss) Earnings:
North American Social Expression Products	$	20,440		$	25,699		$	76,658		$	84,993
International Social Expression Products		289			2,468			(22,268	)		5,771
Intersegment items		(7,402	)		—			(7,402	)		—
Net		(7,113	)		2,468			(29,670	)		5,771
Retail Operations		(5,106	)		—			(5,106	)		—
AG Interactive		4,609			4,597			8,382			7,233
Non-reportable segments		2,300			10,493			2,242			15,099
Unallocated
Interest expense		(4,434	)		(5,748	)		(8,810	)		(11,855	)
Profit-sharing plan expense		(449	)		(1,543	)		(3,429	)		(5,230	)
Stock-based compensation expense		(2,972	)		(2,700	)		(4,841	)		(5,362	)
Corporate overhead expense		(13,346	)		(8,313	)		(31,077	)		(14,906	)
		(21,201	)		(18,304	)		(48,157	)		(37,353	)
	$	(6,071	)	$	24,953		$	4,349		$	75,743

Consolidated operating results include the operating results of the Retail Operations segment from the acquisition date of June 6, 2012 until July 28, 2012, the end of the segment’s second fiscal quarter.

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

See Note 4 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 $4.5 million, $6.8 million and $4.2 million at August 24, 2012, February 29, 2012 and August 26, 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.