Note 5 – Royalty Revenue and Related Expenses

The Corporation has agreements for licensing certain 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 28, 2015		August 29, 2014		August 28, 2015		August 29, 2014
Royalty revenue	$	1,975	$	4,923	$	3,104	$	10,861

Royalty expenses:
Material, labor and other production costs	$	1,241	$	1,491	$	2,175	$	3,035
Selling, distribution and marketing expenses		988		1,699		1,691		3,275
Administrative and general expenses		344		309		711		781

	$	2,573	$	3,499	$	4,577	$	7,091

As disclosed in Note 4, the Corporation completed the sale of Strawberry Shortcake in March 2015. As such, royalty revenue and expenses related to Strawberry Shortcake for the prior year three and six month periods do not have comparative amounts in the current year.