Note 6 – Other Income and Expense

Other Operating Income – Net


	Three Months Ended						Six Months Ended
(In thousands)	August 29, 2014			August 30, 2013			August 29, 2014			August 30, 2013
Gain on sale of AGI In-Store	$	(38,803	)	$	—		$	(38,803	)	$	—
Clinton Cards secured debt recovery		—			(428	)		(3,390	)		(2,428	)
Loss (gain) on asset disposal		15,710			122			15,733			(113	)
Miscellaneous		(735	)		(655	)		664			(1,738	)

Other operating income – net	$	(23,828	)	$	(961	)	$	(25,796	)	$	(4,279	)

During the quarter ended August 29, 2014, the Corporation recognized a gain on the sale of AGI In-Store of $38.8 million. The cash proceeds of $73.7 million from the sale are included in “Proceeds from sale of AGI In-Store” on the Consolidated Statement of Cash Flows. See Note 4 for further information.

“Loss (gain) on asset disposal” during the three and six month periods ended August 29, 2014 included a non-cash loss of $15.5 million related to the sale of the Corporation’s current world headquarters location. The cash proceeds of $13.5 million are included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows. See Note 4 for further information.

During the first quarter of 2015, the Corporation recorded an impairment recovery of $3.4 million related to the senior secured debt of Clinton Cards that the Corporation acquired in May 2012 and subsequently impaired. This recovery, which was based on current estimated recovery information provided by the bankruptcy administrators of the Clinton Cards liquidation (“Administrators”), represents the final amount of a full recovery of the prior impairment. The liquidation process is expected to be completed during fiscal 2015.

During the three and six month periods ended August 30, 2013 the impairment of the secured debt of Clinton Cards, based on updated recovery information provided by the Administrators, was also adjusted, resulting in a gain of $0.4 million and $2.4 million, respectively.

Other Non-Operating Income – Net


	Three Months Ended						Six Months Ended
(In thousands)	August 29, 2014			August 30, 2013			August 29, 2014			August 30, 2013
Gain related to Party City investment	$	—		$	(3,262	)	$	—		$	(3,262	)
Foreign exchange gain		(63	)		(360	)		(523	)		(1,275	)
Rental income		(216	)		(402	)		(755	)		(886	)
Miscellaneous		7			(1	)		(101	)		25

Other non-operating income – net	$	(272	)	$	(4,025	)	$	(1,379	)	$	(5,398	)

During the three months ended August 30, 2013, the Corporation recognized a gain totaling $3.3 million related to a cash distribution on its minority investment in the common stock of Party City Holdings, Inc. (“Party City”).