Note 6 – Other Income and Expense

Other Operating Income – Net


	Three Months Ended						Nine Months Ended
(In thousands)	November 27, 2015			November 28, 2014			November 27, 2015			November 28, 2014
Gain adjustment (gain) on sale of Strawberry Shortcake	$	391		$	—		$	(61,234	)	$	—
Gain adjustment (gain) on sale of AGI In-Store		1,073			139			1,073			(38,663	)
Clinton Cards secured debt recovery		—			—			—			(3,390	)
State tax credits		(975	)		—			(7,516	)		—
Loss on asset disposal		41			90			108			15,823
Miscellaneous		(1,011	)		(928	)		(2,641	)		(265	)

Other operating income – net	$	(481	)	$	(699	)	$	(70,210	)	$	(26,495	)

During the nine months ended November 27, 2015, the Corporation recognized a net gain of $61.2 million from the sale of Strawberry Shortcake, which included a first quarter gain of $61.7 million and an adjustment to the gain of $0.1 million and $0.4 million in the second and third quarters, respectively. See Note 4 for further information.

During the three and nine months ended November 27, 2015, the Corporation recognized income of $1.0 million and $7.5 million, respectively, from tax credits received from the State of Ohio under certain incentive programs made available to the Corporation in connection with its decision to maintain its world headquarters in the state of Ohio.

During the three and nine months ended November 27, 2015, the Corporation recorded an adjustment to reduce the gain by $1.1 million in accordance with the contractual terms of the sale of AGI In-Store in the prior year second quarter. 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. 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. See Note 4 for further information.

During the prior year first quarter, 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 prior year third quarter, 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 portion of the final distribution amounted to $2.5 million and is included in “Interest income” on the Consolidated Statement of Income.

Other Non-Operating Expense (Income) – Net


	Three Months Ended						Nine Months Ended
(In thousands)	November 27, 2015			November 28, 2014			November 27, 2015			November 28, 2014
Foreign exchange loss (gain)	$	1,758		$	955		$	1,085		$	432
Rental income		(148	)		(122	)		(430	)		(877	)
Miscellaneous		(1	)		—			(38	)		(101	)

Other non-operating expense (income) – net	$	1,609		$	833		$	617		$	(546	)