Note 4 – 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 30, 2014		May 31, 2013
Royalty revenue	$	5,938	$	6,506
Royalty expenses:
Material, labor and other production costs	$	1,544	$	1,947
Selling, distribution and marketing expenses		1,576		1,248
Administrative and general expenses		472		460

	$	3,592	$	3,655