Business Segment Information

9 Months Ended

Nov. 29, 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 November 29, 2013, the Retail Operations segment operated 403 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						Nine Months Ended
(In thousands)	November 29, 2013			November 23, 2012			November 29, 2013			November 23, 2012
Total Revenue:
North American Social Expression Products	$	342,185		$	333,852		$	932,166		$	908,267
International Social Expression Products		94,639			101,972			228,812			239,486
Intersegment items		(24,200	)		(25,538	)		(44,029	)		(39,080	)
Net		70,439			76,434			184,783			200,406
Retail Operations		64,875			67,635			202,325			107,519
AG Interactive		15,935			15,982			45,139			47,255
Non-reportable segments		14,082			12,911			60,827			30,309
	$	507,516		$	506,814		$	1,425,240		$	1,293,756

	Three Months Ended						Nine Months Ended
(In thousands)	November 29, 2013			November 23, 2012			November 29, 2013			November 23, 2012
Segment Earnings (Loss):
North American Social Expression Products	$	22,894		$	22,099		$	124,286		$	98,757
International Social Expression Products		8,539			3,413			13,278			(18,855	)
Intersegment items		(2,297	)		(4,123	)		(6,022	)		(11,525	)
Net		6,242			(710	)		7,256			(30,380	)
Retail Operations		(12,825	)		(11,473	)		(25,261	)		(16,579	)
AG Interactive		3,477			5,331			9,955			13,713
Non-reportable segments		5,710			3,259			23,151			5,501
Unallocated
Interest expense		(8,454	)		(4,504	)		(18,199	)		(13,314	)
Profit-sharing plan expense		(407	)		(423	)		(4,872	)		(3,852	)
Stock-based compensation expense		—			(2,965	)		(13,596	)		(7,806	)
Corporate overhead expense		(13,022	)		(12,713	)		(40,877	)		(43,790	)
		(21,883	)		(20,605	)		(77,544	)		(68,762	)
	$	3,615		$	(2,099	)	$	61,843		$	2,250

For the nine months ended November 29, 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 to Note 3 for 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 $2.5 million, $6.0 million and $4.7 million at November 29, 2013, February 28, 2013 and November 23, 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.