Business Segment Information

6 Months Ended

Aug. 30, 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 August 30, 2013, the Retail Operations segment operated 401 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.

	Three Months Ended						Six Months Ended
(In thousands)	August 30, 2013			August 24, 2012			August 30, 2013			August 24, 2012
Total Revenue:
North American Social Expression Products	$	261,694		$	265,856		$	589,981		$	574,415
International Social Expression Products		63,372			74,834			134,173			137,514
Intersegment items		(8,737	)		(13,542	)		(19,829	)		(13,542	)
Net		54,635			61,292			114,344			123,972
Retail Operations		62,732			39,884			137,450			39,884
AG Interactive		14,504			15,777			29,204			31,273
Non-reportable segments		26,856			11,027			46,745			17,398
	$	420,421		$	393,836		$	917,724		$	786,942

	Three Months Ended						Six Months Ended
(In thousands)	August 30, 2013			August 24, 2012			August 30, 2013			August 24, 2012
Segment Earnings (Loss):
North American Social Expression Products	$	35,045		$	20,440		$	101,392		$	76,658
International Social Expression Products		2,195			289			4,739			(22,268	)
Intersegment items		(1,511	)		(7,402	)		(3,725	)		(7,402	)
Net		684			(7,113	)		1,014			(29,670	)
Retail Operations		(8,984	)		(5,106	)		(12,436	)		(5,106	)
AG Interactive		3,165			4,609			6,478			8,382
Non-reportable segments		10,059			2,300			17,441			2,242
Unallocated
Interest expense		(5,433	)		(4,434	)		(9,745	)		(8,810	)
Profit-sharing plan expense		(484	)		(449	)		(4,465	)		(3,429	)
Stock-based compensation expense		(11,121	)		(2,972	)		(13,596	)		(4,841	)
Corporate overhead expense		(17,249	)		(13,346	)		(27,855	)		(31,077	)
		(34,287	)		(21,201	)		(55,661	)		(48,157	)
	$	5,682		$	(6,071	)	$	58,228		$	4,349

For the three and six month periods ended August 30, 2013, stock-based compensation in the table above includes non-cash stock-based compensation prior to the Merger and the impact of the settlement of stock options and the cancellation or modification of outstanding restricted stock units and performance shares concurrent with the Merger, a portion of which is non-cash. There is no stock-based compensation subsequent to the Merger as these plans were converted into cash compensation plans at the time of the Merger. See Note 3 for further information.

“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 the acquisition of Clinton Cards that do not have comparative amounts in the current year; and current year charges associated with the Merger 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 $2.9 million, $6.0 million and $4.5 million at August 30, 2013, February 28, 2013 and August 24, 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.