Note 6 – Other Income and Expense

Other Operating Income – Net


	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Gain adjustment (gain) on sale of AGI In-Store	$	139		$	—		$	(38,663	)	$	—
Clinton Cards secured debt recovery		—			(1,804	)		(3,390	)		(4,232	)
Loss on asset disposal		90			672			15,823			559
Miscellaneous		(928	)		(1,236	)		(265	)		(2,974	)

Other operating income – net	$	(699	)	$	(2,368	)	$	(26,495	)	$	(6,647	)

During the nine months ended November 28, 2014, the Corporation recognized a net gain of $38.7 million from the sale of AGI In-Store, which included a second quarter gain of $38.8 million and an adjustment to the gain in the third quarter of $0.1 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 on asset disposal” during the nine month period ended November 28, 2014 included a non-cash loss of $15.5 million related to the sale of the Corporation’s current world headquarters location during the current year second quarter. 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”), represented the final amount of a full recovery of the prior impairment. During the third quarter of 2015, as part of the liquidation process, the Corporation received a distribution of $11.3 million which included the full recovery of the remaining senior secured debt claim as well as accumulated interest that was previously not expected to be received. The interest of $2.5 million is included in “Interest income” on the Consolidated Statement of Income.

During the three and nine month periods ended November 29, 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 $1.8 million and $4.2 million, respectively.

Other Non-Operating Expense (Income) - Net


	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Impairment of investment in Schurman	$	—		$	1,935		$	—		$	1,935
Gain related to Party City investment		—			—			—			(3,262	)
Foreign exchange loss (gain)		955			(454	)		432			(1,729	)
Rental income		(122	)		(408	)		(877	)		(1,294	)
Miscellaneous		—			(26	)		(101	)		(1	)

Other non-operating expense (income)– net	$	833		$	1,047		$	(546	)	$	(4,351	)

During the three months ended November 29, 2013, the Corporation recognized an impairment loss of $1.9 million associated with its investment in Schurman. See Note 1 for further information.

In July 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”).