NOTE 4 – OTHER INCOME AND EXPENSE

Other Operating Income - Net


	2016			2015			2014
Gain on sale of Strawberry Shortcake	$	(61,234	)	$	—		$	—
Adjustment to gain (gain) on sale of AGI In-Store		1,073			(35,004	)		—
Clinton Cards secured debt recovery		—			(3,390	)		(4,910	)
State tax credits		(9,141	)		—			—
Net loss on disposal of fixed assets		179			15,983			560
Miscellaneous		(3,735	)		(1,263	)		(3,368	)

Other operating income – net	$	(72,858	)	$	(23,674	)	$	(7,718	)

During 2016, the Corporation recognized a gain of $61,234 from the sale of Strawberry Shortcake. See Note 3 for further information.

The Corporation recognized income of $9,141 during 2016 related to non-income based tax credits received from the State of Ohio for certain incentive programs made available to the Corporation in connection with the relocation of its world headquarters within Ohio.

During 2015, the Corporation recognized a gain of $35,004 from the sale of AGI In-Store. In 2016, the Corporation recorded an adjustment to reduce the gain by $1,073 in accordance with the contractual terms of the sale. See Note 3 for further information.

During 2013, the Corporation acquired all of the outstanding senior secured debt of Clinton Cards (“Clintons”), a UK-based retailer and important customer to the Corporation’s international business for $56,560 (£35,000). Clintons was subsequently placed into administration, a process similar to Chapter 11 bankruptcy in the United States. As part of the administration process, the Corporation acquired certain assets of Clintons that were deemed to constitute a viable ongoing business in exchange for $37,168 (£23,000) of Clinton’s then outstanding senior secured debt owed to the Corporation. Recovery of the remaining investment in the senior secured debt was subject to the proceeds received by the administrators (“Administrators”) from the liquidation of the Clintons’ stores and assets that were not acquired by the Corporation. Based on the initial recovery estimates provided by the Administrators, the Corporation impaired its remaining investment in the senior secured debt and recognized a valuation loss of $8,106 in 2013. Over the course of the administration process, which was completed in 2015, updated recovery estimates provided by the Administrators combined with liquidation proceeds periodically received from the Administrators resulted in impairment loss reversals of $3,390 and $4,910 during 2015 and 2014, respectively.

In July 2014, the Corporation sold its current world headquarters location. Net of transaction costs, the Corporation received cash proceeds of $13,535 from the sale, and recorded a non-cash loss on disposal of $15,544, which is reflected within “Net loss on disposal of fixed assets” in the table above. See Note 3 for further information.

Other Non-Operating Expense (Income) - Net


	2016			2015			2014
Foreign exchange loss (gain)	$	1,800		$	1,522		$	(280	)
Rental income		(567	)		(1,089	)		(1,714	)
Impairment of investment in Schurman		—			—			1,935
Gain related to investment in third party		—			—			(3,262	)
Miscellaneous		(40	)		(114	)		25

Other non-operating expense (income) – net	$	1,193		$	319		$	(3,296	)

In 2014, the Corporation realized a gain of $3,262 from its equity investment in a third party and an impairment loss of $1,935 associated with its investment in Schurman. See Note 1 - Consolidation for further information.