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					Nine Months Ended
(In thousands)	November 27, 2015		November 28, 2014			November 27, 2015		November 28, 2014
Royalty revenue	$	2,956	$	5,666		$	6,060	$	16,527


Royalty expenses:
Material, labor and other production costs (credit)	$	801	$	(1,527	)	$	2,976	$	1,508
Selling, distribution and marketing expenses		601		1,562			2,292		4,837
Administrative and general expenses		381		447			1,092		1,228

	$	1,783	$	482		$	6,360	$	7,573

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 nine month periods do not have comparative amounts in the current year.