Business Segment Information

3 Months Ended

May. 29, 2015

Segment Reporting [Abstract]

Business Segment Information

Note 18 – Business Segment Information

The Corporation has North American Social Expression Products, International Social Expression Products, Retail Operations, AG Interactive and Non-reportable segments. The North American Social Expression Products and International Social Expression Products segments primarily design, manufacture and sell greeting cards and other related products through various channels of distribution with mass merchandising as the primary channel. At May 29, 2015, the Retail Operations segment operated 410 card and gift retail stores in the United Kingdom. The stores sell products purchased from the International Social Expression Products segment as well as products purchased from other vendors. AG Interactive distributes social expression products, including electronic greetings and a broad range of graphics and digital services and products, through a variety of electronic channels, including Web sites, Internet portals and electronic mobile devices. For the three months ended May 29, 2015, the Corporation’s Non-reportable segment primarily includes licensing activities. For the three months ended May 30, 2014, the Non-reportable segment also included the design, manufacture and sale of display fixtures. The display fixtures business was sold on the last day of the prior year second quarter. See Note 4 for further information.

(In thousands)	Three Months Ended
	May 29, 2015			May 30, 2014
Total Revenue:
North American Social Expression Products	$	335,604		$	329,057
International Social Expression Products		62,168			75,039
Intersegment items		(10,313	)		(10,065	)
Net		51,855			64,974
Retail Operations		71,808			79,164
AG Interactive		13,430			14,499
Non-reportable segment		746			15,890
	$	473,443		$	503,584

(In thousands)	Three Months Ended
	May 29, 2015			May 30, 2014
Segment Earnings (Loss) Before Tax:
North American Social Expression Products	$	73,127		$	69,364
International Social Expression Products		(5,010	)		3,762
Intersegment items		751			(2,310	)
Net		(4,259	)		1,452
Retail Operations		(8,143	)		(4,040	)
AG Interactive		4,871			5,412
Non-reportable segment		60,347			4,015
Unallocated
Interest expense		(8,113	)		(8,994	)
Profit-sharing plan expense		(1,675	)		(4,079	)
Corporate overhead expense		(4,822	)		(7,694	)
		(14,610	)		(20,767	)
	$	111,333		$	55,436

“Corporate overhead expense” includes costs associated with corporate operations including, among other costs, senior management, corporate finance, legal, and insurance programs.

For the three months ended May 29, 2015, Non-reportable segment earnings includes a gain of $61.7 million from the sale of Strawberry Shortcake. See Note 4 for further information.

Termination Benefits

Termination benefits are primarily considered part of an ongoing benefit arrangement, accounted for in accordance with ASC Topic 712, “Compensation – Nonretirement Postemployment Benefits,” and are recorded when payment of the benefits is probable and can be reasonably estimated.

The balance of the severance accrual was $3.3 million, $4.3 million and $3.9 million at May 29, 2015, February 28, 2015 and May 30, 2014, respectively. The payments expected within the next twelve months are included in “Accrued liabilities” while the remaining payments beyond the next twelve months are included in “Other liabilities” on the Consolidated Statement of Financial Position.