Business Segment Information

9 Months Ended

Nov. 23, 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 November 23, 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						Nine Months Ended
(In thousands)	November 23, 2012			November 25, 2011			November 23, 2012			November 25, 2011
Total Revenue:
North American Social Expression Products	$	333,852		$	333,305		$	908,267		$	902,333
International Social Expression Products		101,972			103,352			239,486			249,448
Intersegment items		(25,538	)		—			(39,080	)		—
Net		76,434			103,352			200,406			249,448
Retail Operations		67,635			—			107,519			—
AG Interactive		15,982			16,878			47,255			49,664
Non-reportable segments		12,911			11,472			30,309			37,452
	$	506,814		$	465,007		$	1,293,756		$	1,238,897
Segment (Loss) Earnings:
North American Social Expression Products	$	22,099		$	28,016		$	98,757		$	113,009
International Social Expression Products		3,413			9,537			(18,855	)		15,308
Intersegment items		(4,123	)		—			(11,525	)		—
Net		(710	)		9,537			(30,380	)		15,308
Retail Operations		(11,473	)		—			(16,579	)		—
AG Interactive		5,331			3,737			13,713			10,970
Non-reportable segments		3,259			2,368			5,501			17,467
Unallocated
Interest expense		(4,504	)		(5,853	)		(13,314	)		(17,708	)
Profit-sharing plan expense		(423	)		(1,078	)		(3,852	)		(6,308	)
Stock-based compensation expense		(2,965	)		(2,676	)		(7,806	)		(8,038	)
Corporate overhead expense		(12,713	)		(4,351	)		(43,790	)		(19,257	)
		(20,605	)		(13,958	)		(68,762	)		(51,311	)
	$	(2,099	)	$	29,700		$	2,250		$	105,443

Consolidated operating results include the operating results of the Retail Operations segment from the acquisition date of June 6, 2012 until October 27, 2012, the end of the segment’s third 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 $4.7 million, $6.8 million and $3.8 million at November 23, 2012, February 29, 2012 and November 25, 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.