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 the non-reportable segment, are summarized as follows:


	Three Months Ended				Six Months Ended
(In thousands)	August 29, 2014		August 30, 2013		August 29, 2014		August 30, 2013
Royalty revenue	$	4,923	$	6,412	$	10,861	$	12,918
Royalty expenses
Material, labor and other production costs	$	1,491	$	1,551	$	3,035	$	3,498
Selling, distribution and marketing expenses		1,699		1,936		3,275		3,184
Administrative and general expenses		309		441		781		901

	$	3,499	$	3,928	$	7,091	$	7,583