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 26, 2016		August 28, 2015		August 26, 2016		August 28, 2015
Royalty revenue	$	1,922	$	1,975	$	3,684	$	3,104

Royalty expenses:
Material, labor and other production costs	$	702	$	1,241	$	1,315	$	2,175
Selling, distribution and marketing expenses		942		988		1,498		1,691
Administrative and general expenses		212		344		492		711

	$	1,856	$	2,573	$	3,305	$	4,577