Business Segment Information

3 Months Ended

May 31, 2013

Segment Reporting [Abstract]

Business Segment Information

Note 17 – 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 merchandising as the primary channel. At May 31, 2013, the Retail Operations segment operated 396 card and gift retail stores in the United Kingdom. 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.

(In thousands)	Three Months Ended
Total Revenue:	May 31, 2013		May 25, 2012
North American Social Expression Products		$328,287		$308,559
International Social Expression Products		70,801		62,680
Intersegment items		11,092		-
Net		59,709		62,680
Retail Operations		74,718		-
AG Interactive		14,700		15,496
Non-reportable segments		19,889		6,371
		$497,303		$393,106
(In thousands)	Three Months Ended
Segment Earnings (Loss) Before Tax:	May 31, 2013		May 25, 2012
North American Social Expression Products		$ 66,347		$ 56,218
International Social Expression Products		2,544		(22,557)
Intersegment items		2,214		-
Net		330		(22,557)
Retail Operations		(3,452)		-
AG Interactive		3,313		3,773
Non-reportable segments		7,382		(58)
Unallocated
Interest expense		(4,312)		(4,376)
Profit-sharing expense		(3,981)		(2,980)
Stock-based compensation expense		(2,475)		(1,869)
Corporate overhead expense		(10,606)		(17,731)
		(21,374)		(26,956)
		$ 52,546		$ 10,420

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

Refer to Note 4 for segment information related to certain prior year charges associated with activities and transactions in connection with Clinton Cards that do not have comparative amounts in the current 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, $6.0 million and $5.0 million at May 31, 2013, February 28, 2013 and May 25, 2012, 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.