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					Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013		November 28, 2014		November 29, 2013
Royalty revenue	$	5,666		$	5,046	$	16,527	$	17,964
Royalty expenses
Material, labor and other production (credit) costs	$	(1,527	)	$	1,954	$	1,508	$	5,453
Selling, distribution and marketing expenses		1,562			1,431		4,837		4,615
Administrative and general expenses		447			421		1,228		1,322

	$	482		$	3,806	$	7,573	$	11,390