NOTE 3 – OTHER INCOME AND EXPENSE

Other Operating Expense (Income)—Net


	2013			2012			2011
Impairment of Clinton Cards debt	$	8,106		$	—		$	—
Gain on sale of intellectual properties		—			(4,500	)		—
Termination of certain agency agreements		2,125			—			—
Loss (gain) on asset disposals		631			(461	)		(3,463	)
Gain on disposition of party goods product lines		—			—			(254	)
Miscellaneous		(6,532	)		(3,239	)		(2,952	)

Other operating expense (income) – net	$	4,330		$	(8,200	)	$	(6,669	)

The Corporation recorded an impairment of $8,106 during 2013 related to the senior secured debt of Clinton Cards that the Corporation acquired during the first quarter. See Note 2 for further information.

In May 2012, the Corporation recorded expenses totaling $2,125 related to the termination of certain agency agreements associated with its licensing business.

“Miscellaneous” in 2013 included, among other things, a gain recognized on the sale of an insignificant non-card product line within the International Social Expression Products segment of $1,432 and a gain recognized on the disposition of assets within the AG Interactive segment of $1,134.

In October 2011, the Corporation sold the land and buildings relating to its party goods product lines in the North American Social Expression Products segment that were previously included in “Assets held for sale” on the Consolidated Statement of Financial Position and recorded a gain of approximately $393. The cash proceeds of $6,000 received from the sale of the assets are included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows.

In June 2011, the Corporation sold the land, building and certain equipment associated with a distribution facility in the International Social Expression Products segment that were previously included in “Assets held for sale” on the Consolidated Statement of Financial Position and recorded a gain of approximately $500. The cash proceeds of approximately $2,400 received from the sale of the assets are included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows.

Also in June 2011, the Corporation sold certain minor character properties and recognized a gain of $4,500. The proceeds of $4,500 are included in “Proceeds from sale of intellectual properties” on the Consolidated Statement of Cash Flows.

The Corporation sold the land and building associated with its Mexican operations within the North American Social Expression Products segment in August 2010 and a manufacturing facility within the International Social Expression Products segment in January 2011, and recorded gains upon disposal of approximately $1,000 and $2,819, respectively. The cash proceeds received from the sale of the Mexican assets and the manufacturing facility of $2,000 and $9,952, respectively, are included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows.

In 2010, the Corporation entered into an asset purchase agreement under which it sold certain assets, equipment and processes used in the manufacture and distribution of party goods in the North American Social Expression Products segment to Party City for a purchase price of $24,880. Pursuant to the sale of these assets, equipment and processes, the Corporation recorded a gain of $34,178. An additional gain of $254 was recorded in 2011 as amounts previously estimated were finalized. Cash proceeds of $24,880, which were held in escrow and recorded as a receivable at February 28, 2010, were received in 2011 and are included in “Proceeds from escrow related to party goods transaction” on the Consolidated Statement of Cash Flows.

The 2012 and 2011 amounts included in “Loss (gain) on asset disposals” were reclassified to “other operating expense (income)—net” from “other non-operating (income) expense—net”.

Other Non-Operating (Income) Expense—Net


	2013			2012			2011
Gain on sale of Party City investment	$	(4,293	)	$	—		$	—
Foreign exchange (gain) loss		(2,783	)		1,314			224
Rental income		(1,919	)		(1,217	)		(1,232	)
Miscellaneous		(179	)		24			(1,369	)

Other non-operating (income) expense – net	$	(9,174	)	$	121		$	(2,377	)

During 2013, the Corporation recorded a gain of $4,293 associated with the sale of a portion of its investment in Party City. See Note 1 for further information.

“Miscellaneous” in 2011 included, among other things, $1,300 of dividend income related to the Corporation’s investment in Party City.