Note 5 – 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” on the Consolidated Statement of Income. 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 31, 2013		May 25, 2012
Royalty revenue		$ 6,506		$ 3,729

Royalty expenses
Material, labor and other production costs		$ 1,947		$ 2,328
Selling, distribution and marketing expenses		1,248		656
Administrative and general expenses		460		422

		$ 3,655		$ 3,406


In addition to the expenses disclosed above, during the three months ended May 25, 2012 the Corporation incurred charges of $2.1 million associated with our licensing business. See Note 6 for further information.