Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 28, 2014 | Jan. 09, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Nov-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AM | |
Entity Registrant Name | AMERICAN GREETINGS CORP | |
Entity Central Index Key | 5133 | |
Current Fiscal Year End Date | -26 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Income Statement [Abstract] | ||||
Net sales | $508,006 | $502,107 | $1,432,370 | $1,406,319 |
Other revenue | 6,052 | 5,409 | 17,697 | 18,921 |
Total revenue | 514,058 | 507,516 | 1,450,067 | 1,425,240 |
Material, labor and other production costs | 249,518 | 244,829 | 630,413 | 625,340 |
Selling, distribution and marketing expenses | 175,039 | 177,154 | 513,132 | 502,500 |
Administrative and general expenses | 64,829 | 74,814 | 200,974 | 228,578 |
Other operating income - net | -699 | -2,368 | -26,495 | -6,647 |
Operating income | 25,371 | 13,087 | 132,043 | 75,469 |
Interest expense | 9,533 | 8,454 | 27,782 | 18,199 |
Interest income | -2,517 | -29 | -2,658 | -222 |
Other non-operating expense (income) - net | 833 | 1,047 | -546 | -4,351 |
Income before income tax expense | 17,522 | 3,615 | 107,465 | 61,843 |
Income tax expense | 6,261 | 310 | 29,625 | 30,366 |
Net income | $11,261 | $3,305 | $77,840 | $31,477 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $11,261 | $3,305 | $77,840 | $31,477 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | -15,662 | 9,996 | -15,917 | 8,336 |
Pension and postretirement benefit adjustments | 173 | 192 | 287 | 1,009 |
Unrealized loss on securities | -4 | |||
Other comprehensive (loss) income, net of tax | -15,489 | 10,188 | -15,630 | 9,341 |
Comprehensive (loss) income | ($4,228) | $13,493 | $62,210 | $40,818 |
Consolidated_Statement_of_Fina
Consolidated Statement of Financial Position (USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Thousands, unless otherwise specified | |||
Current assets | |||
Cash and cash equivalents | $31,431 | $63,963 | $15,775 |
Trade accounts receivable, net | 173,691 | 97,925 | 201,392 |
Inventories | 286,190 | 254,761 | 291,372 |
Deferred and refundable income taxes | 46,247 | 46,996 | 47,252 |
Prepaid expenses and other | 144,086 | 146,164 | 151,277 |
Total current assets | 681,645 | 609,809 | 707,068 |
Other assets | 501,392 | 542,766 | 421,326 |
Deferred and refundable income taxes | 91,905 | 74,103 | 98,646 |
Property, plant and equipment - at cost | 810,526 | 855,141 | 848,233 |
Less accumulated depreciation | 443,761 | 479,376 | 468,015 |
Property, plant and equipment - net | 366,765 | 375,765 | 380,218 |
Total assets | 1,641,707 | 1,602,443 | 1,607,258 |
Current liabilities | |||
Debt due within one year | 23,800 | 20,000 | 20,000 |
Accounts payable | 122,637 | 120,568 | 124,163 |
Accrued liabilities | 60,125 | 68,838 | 64,792 |
Accrued compensation and benefits | 63,596 | 74,017 | 63,910 |
Income taxes payable | 21,835 | 14,866 | 2,745 |
Deferred revenue | 22,961 | 31,288 | 25,438 |
Other current liabilities | 67,450 | 85,785 | 68,408 |
Total current liabilities | 382,404 | 415,362 | 369,456 |
Long-term debt | 570,232 | 539,114 | 622,328 |
Other liabilities | 311,265 | 301,815 | 231,585 |
Deferred income taxes and noncurrent income taxes payable | 12,303 | 18,705 | 19,921 |
Shareholder's equity | |||
Common shares - par value $.01 per share: 100 shares issued and outstanding | 0 | 0 | 0 |
Capital in excess of par value | 240,000 | 240,000 | 240,000 |
Accumulated other comprehensive (loss) income | -14,878 | 752 | -7,792 |
Retained earnings | 140,381 | 86,695 | 131,760 |
Total shareholder's equity | 365,503 | 327,447 | 363,968 |
Total liabilities and stockholders equity | $1,641,707 | $1,602,443 | $1,607,258 |
Consolidated_Statement_of_Fina1
Consolidated Statement of Financial Position (Parenthetical) (USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
Statement of Financial Position [Abstract] | |||
Common shares, par value | $0.01 | $0.01 | $0.01 |
Common shares, issued | 100 | 100 | 100 |
Common shares, outstanding | 100 | 100 | 100 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 |
OPERATING ACTIVITIES: | ||
Net income | $77,840 | $31,477 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Stock-based compensation | 8,091 | |
Net gain on sale of AGI In-Store | -38,663 | |
Loss on asset disposal | 15,823 | 559 |
Depreciation and intangible assets amortization | 45,581 | 40,450 |
Clinton Cards secured debt recovery | -3,390 | -4,232 |
Interest on Clinton Cards secured debt | -2,507 | |
Provision for doubtful accounts | 767 | 513 |
Deferred income taxes | -15,716 | 10,988 |
Gain related to Party City investment | -3,262 | |
Other non-cash charges | 5,039 | 2,090 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Trade accounts receivable | -83,981 | -94,636 |
Inventories | -57,791 | -43,588 |
Other current assets | -185 | 14,817 |
Receivable from parent and related parties | 95 | |
Income taxes | 886 | 6,465 |
Deferred costs - net | -1,376 | 15,021 |
Accounts payable and other liabilities | -23,688 | -21,935 |
Other - net | 4,216 | 4,052 |
Total Cash Flows From Operating Activities | -77,050 | -33,130 |
INVESTING ACTIVITIES: | ||
Property, plant and equipment additions | -70,263 | -45,336 |
Proceeds from sale of fixed assets | 23,811 | 1,630 |
Proceeds from sale of AGI In-Store | 73,659 | |
Proceeds from Clinton Cards administration | 11,926 | 4,982 |
Proceeds related to Party City investment | 12,105 | |
Total Cash Flows From Investing Activities | 39,133 | -26,619 |
FINANCING ACTIVITIES: | ||
Proceeds from revolving lines of credit | 347,200 | 311,336 |
Repayments on revolving lines of credit | -299,900 | -295,236 |
Proceeds from term loan | 339,250 | |
Repayments on term loan | -15,000 | |
Issuance, exercise or settlement of share-based payment awards | -4,487 | |
Tax benefit from share-based payment awards | 279 | |
Contribution from parent | 240,000 | |
Payments to shareholders to effect merger | -568,303 | |
Dividends to shareholders | -24,154 | -27,809 |
Financing fees | -1,065 | -6,545 |
Total Cash Flows From Financing Activities | 7,081 | -11,515 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | -1,696 | 980 |
DECREASE IN CASH AND CASH EQUIVALENTS | -32,532 | -70,284 |
Cash and Cash Equivalents at Beginning of Year | 63,963 | 86,059 |
Cash and Cash Equivalents at End of Period | $31,431 | $15,775 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |||
Nov. 28, 2014 | ||||
Accounting Policies [Abstract] | ||||
Basis of Presentation | Note 1 – Basis of Presentation | |||
The accompanying unaudited consolidated financial statements of American Greetings Corporation and its subsidiaries (the “Corporation”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present financial position, results of operations and cash flows for the periods have been included. On August 9, 2013, the Corporation completed a merger whereby the Corporation was acquired by Century Intermediate Holding Company, a company that was formed by the Chairman of the Board, the Co-Chief Executive Officers of the Corporation and certain other members of the Weiss family and related entities (the “Merger”). As a result of the Merger, the Corporation’s equity is no longer publicly traded. As such, earnings per share information is not required. | ||||
The Corporation’s fiscal year ends on February 28 or 29. References to a particular year refer to the fiscal year ending in February of that year. For example, 2014 refers to the year ended February 28, 2014. The Corporation’s subsidiary, AG Retail Cards Limited is consolidated on a one-month lag corresponding with its fiscal year-end of January 31 for 2015. | ||||
These interim financial statements should be read in conjunction with the Corporation’s financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended February 28, 2014, from which the Consolidated Statement of Financial Position at February 28, 2014, presented herein, has been derived. | ||||
The Corporation’s investments in less than majority-owned companies in which it has the ability to exercise significant influence over the operation and financial policies are accounted for using the equity method except when they qualify as variable interest entities (“VIE”) and the Corporation is the primary beneficiary, in which case, the investments are consolidated in accordance with Accounting Standards Codification (“ASC”) Topic 810 (“ASC 810”), “Consolidation.” Investments that do not meet the above criteria are accounted for under the cost method. | ||||
Prior to the fourth quarter of 2014, the Corporation held an approximate 15% equity interest in Schurman Fine Papers (“Schurman”) which is a VIE as defined in ASC 810. Schurman owns and operates specialty card and gift retail stores in the United States and Canada. The stores are primarily located in malls and strip shopping centers. During the third quarter of 2014, the Corporation determined that, due to continued operating losses, shareholders’ deficit and lack of return on the Corporation’s investment, the cost method investment was permanently impaired. As a result, the Corporation recorded an impairment charge in the amount of $1.9 million which reduced the carrying amount of the investment to zero. In addition, during the fourth quarter of 2014, in order to mitigate ongoing risks to the Corporation that may arise from retaining an equity interest in Schurman, the Corporation transferred to Schurman its 15% equity interest and, as a result, no longer has an equity interest in Schurman. | ||||
The Corporation provides Schurman limited credit support through the provision of a liquidity guaranty (“Liquidity Guaranty”) in favor of the lenders under Schurman’s senior revolving credit facility (the “Senior Credit Facility”). Pursuant to the terms of the Liquidity Guaranty, the Corporation has guaranteed the repayment of up to $10.0 million of Schurman’s borrowings under the Senior Credit Facility to help ensure that Schurman has sufficient borrowing availability under this facility. The Liquidity Guaranty is required to be backed by a letter of credit for the term of the Liquidity Guaranty, which expires in July 2016. The Corporation’s obligations under the Liquidity Guaranty generally may not be triggered unless Schurman’s lenders under its Senior Credit Facility have substantially completed the liquidation of the collateral under Schurman’s Senior Credit Facility, or 91 days after the liquidation is started, whichever is earlier, and will be limited to the deficiency, if any, between the amount owed and the amount collected in connection with the liquidation. There was no triggering event or liquidation of collateral as of November 28, 2014 requiring the use of the Liquidity Guaranty. | ||||
During the current quarter, the Corporation assessed the variable interests in Schurman and determined that a third party holder of variable interests has the controlling financial interest in the VIE and thus, the third party, not the Corporation, is the primary beneficiary. In completing this assessment, the Corporation identified the activities that it considers most significant to the future economic success of the VIE and determined that it does not have the power to direct those activities. As such, Schurman is not consolidated in the Corporation’s results. The Corporation’s maximum exposure to loss as it relates to Schurman as of November 28, 2014 includes: | ||||
• | Liquidity Guaranty of Schurman’s indebtedness of $10.0 million; | |||
• | normal course of business trade and other receivables due from Schurman of $33.8 million, the balance of which fluctuates throughout the year due to the seasonal nature of the business; and | |||
• | the retail store operating leases currently subleased to Schurman, the aggregate lease payments for the remaining life of which was $5.1 million, $7.1 million and $8.5 million as of November 28, 2014, February 28, 2014 and November 29, 2013, respectively. | |||
Correction of Immaterial Errors | ||||
During the first quarter of 2015, the Corporation identified and corrected errors in the accounting for income taxes that related to the year ended February 28, 2014. These errors primarily related to the Corporation’s failure to consider all sources of available taxable income when assessing the need for a valuation allowance against certain deferred tax assets and the recognition of a liability for an uncertain tax position. These errors were the result of the significant complexity created as a result of the Merger and related transactions. The impact of correcting these items had a non-cash effect, decreasing tax expense and increasing net income by $4.1 million. Based on its evaluation as discussed more fully below, the Corporation concluded that the corrections to the financial statements were immaterial to its financial results for the year ended February 28, 2014 and its expected financial results for the year ending February 28, 2015. | ||||
In accordance with ASC Topic 250, Accounting Changes and Error Corrections, the Corporation evaluated the effects of the errors on its financial statements for the year ended February 28, 2014 and the expected full year financial results for the year ending February 28, 2015 and concluded that the results of operations for these periods are not materially misstated. In reaching its conclusion, the Corporation considered numerous qualitative and quantitative factors, including but not limited to the following: | ||||
• | In evaluating the financial and operational performance, the Corporation’s shareholder and debt holders focus on performance metrics such as earnings before interest, taxes, depreciation and amortization (“EBITDA”), operating income and cash flows from operations, none of which were impacted by the correction of the errors, | |||
• | The numeric impact of the error on the Corporation’s results of operations, including the net dollar impact, the impact as a percentage of period earnings, the impact on financial trends, and the impact on non-GAAP measures such as adjusted operating income the Corporation presents in quarterly public debt holder conference calls, which were deemed immaterial, particularly in light of the Corporation’s stakeholders’ focus on EBITDA, operating income and cash flows from operations, and | |||
• | The absence of any impact on the Corporation’s compliance with its debt covenants, management compensation or segment reporting. | |||
Based on its evaluation, the Corporation concluded that it is not probable that the judgment of a reasonable person relying on the financial statements would have been changed or influenced by the error or correction of the error. |
Seasonal_Nature_of_Business
Seasonal Nature of Business | 9 Months Ended |
Nov. 28, 2014 | |
Text Block [Abstract] | |
Seasonal Nature of Business | Note 2 – Seasonal Nature of Business |
A significant portion of the Corporation’s business is seasonal in nature. Therefore, the results of operations for interim periods are not necessarily indicative of the results for the fiscal year taken as a whole. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Nov. 28, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 3 – Recent Accounting Pronouncements |
In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Corporation does not expect that the adoption of this standard will have a material effect on its financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers”. The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 for public companies. Early adoption is not permitted. The standard permits the use of either a retrospective or modified retrospective (cumulative effect) transition method. The Corporation is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements nor decided upon the method of adoption. | |
In April 2014, the FASB issued ASU No. 2014-08 (“ASU 2014-08”), “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the new guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results and is disposed of or classified as held for sale. The standard also introduces several new disclosures. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. ASU 2014-08 is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. The Corporation adopted ASU 2014-08 on August 29, 2014 in connection with the disposition of A.G. Industries, Inc. See Note 4 for further information. | |
In July 2013, the FASB issued ASU No. 2013-11 (“ASU 2013-11”), “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. ASU 2013-11 is effective for annual and interim periods beginning after December 15, 2013 for public companies, with early adoption permitted. The Corporation adopted ASU 2013-11 on March 1, 2014. |
Dispositions
Dispositions | 9 Months Ended |
Nov. 28, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Note 4 – Dispositions |
On July 1, 2014, the Corporation sold its current world headquarters location and entered into an operating lease arrangement with the new owner of the building. The Corporation expects to remain in this current location until the completion of the new world headquarters, which the Corporation anticipates will occur in calendar year 2016. Net of transaction costs, the Corporation received $13.5 million cash from the sale, and recorded a non-cash loss on disposal of $15.5 million in the Corporation’s second fiscal quarter, which loss is included in “Other operating income – net” on the Consolidated Statement of Income. | |
On August 29, 2014, the Corporation completed the sale of its wholly-owned display fixtures business, A.G. Industries, Inc. (dba AGI In-Store “AGI In-Store”), to Rock-Tenn Company for $73.7 million in cash, subject to closing date working capital adjustments. A net gain of $38.7 million has been recognized from the sale during the nine month period ended November 28, 2014 and is included in “Other operating income – net” on the Consolidated Statement of Income. AGI In-Store, which is included in the non-reportable segment, had operating income of $0.1 million for the current fiscal year through the date of sale ($18.6 million of operating income for the nine month period ended November 29, 2013). |
Royalty_Revenue_and_Related_Ex
Royalty Revenue and Related Expenses | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Royalty Revenue and Related Expenses | Note 5 – Royalty Revenue and Related Expenses | ||||||||||||||||
The Corporation has agreements for licensing the Care Bears and Strawberry Shortcake 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 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Royalty revenue | $ | 5,666 | $ | 5,046 | $ | 16,527 | $ | 17,964 | |||||||||
Royalty expenses | |||||||||||||||||
Material, labor and other production (credit) costs | $ | (1,527 | ) | $ | 1,954 | $ | 1,508 | $ | 5,453 | ||||||||
Selling, distribution and marketing expenses | 1,562 | 1,431 | 4,837 | 4,615 | |||||||||||||
Administrative and general expenses | 447 | 421 | 1,228 | 1,322 | |||||||||||||
$ | 482 | $ | 3,806 | $ | 7,573 | $ | 11,390 | ||||||||||
Other_Income_and_Expense
Other Income and Expense | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||
Other Income and Expense | Note 6 – Other Income and Expense | ||||||||||||||||
Other Operating Income – Net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | November 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Gain adjustment (gain) on sale of AGI In-Store | $ | 139 | $ | — | $ | (38,663 | ) | $ | — | ||||||||
Clinton Cards secured debt recovery | — | (1,804 | ) | (3,390 | ) | (4,232 | ) | ||||||||||
Loss on asset disposal | 90 | 672 | 15,823 | 559 | |||||||||||||
Miscellaneous | (928 | ) | (1,236 | ) | (265 | ) | (2,974 | ) | |||||||||
Other operating income – net | $ | (699 | ) | $ | (2,368 | ) | $ | (26,495 | ) | $ | (6,647 | ) | |||||
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. The cash proceeds of $73.7 million from the sale are included in “Proceeds from sale of AGI In-Store” on the Consolidated Statement of Cash Flows. 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 during the current year second quarter. The cash proceeds of $13.5 million are included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows. See Note 4 for further information. | |||||||||||||||||
During the first quarter of 2015, 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 third quarter of 2015, 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 of $2.5 million is included in “Interest income” on the Consolidated Statement of Income. | |||||||||||||||||
During the three and nine month periods ended November 29, 2013 the impairment of the secured debt of Clinton Cards, based on updated recovery information provided by the Administrators, was also adjusted, resulting in a gain of $1.8 million and $4.2 million, respectively. | |||||||||||||||||
Other Non-Operating Expense (Income) - Net | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | November 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Impairment of investment in Schurman | $ | — | $ | 1,935 | $ | — | $ | 1,935 | |||||||||
Gain related to Party City investment | — | — | — | (3,262 | ) | ||||||||||||
Foreign exchange loss (gain) | 955 | (454 | ) | 432 | (1,729 | ) | |||||||||||
Rental income | (122 | ) | (408 | ) | (877 | ) | (1,294 | ) | |||||||||
Miscellaneous | — | (26 | ) | (101 | ) | (1 | ) | ||||||||||
Other non-operating expense (income)– net | $ | 833 | $ | 1,047 | $ | (546 | ) | $ | (4,351 | ) | |||||||
During the three months ended November 29, 2013, the Corporation recognized an impairment loss of $1.9 million associated with its investment in Schurman. See Note 1 for further information. | |||||||||||||||||
In July 2013, the Corporation recognized a gain totaling $3.3 million related to a cash distribution on its minority investment in the common stock of Party City Holdings, Inc. (“Party City”). |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Other Comprehensive (Loss) Income | Note 7 – Accumulated Other Comprehensive (Loss) Income | ||||||||||||
The changes in accumulated other comprehensive income (loss) are as follows. | |||||||||||||
(In thousands) | Foreign | Pensions and | Total | ||||||||||
Currency | Other | ||||||||||||
Translation | Postretirement | ||||||||||||
Adjustments | Benefits | ||||||||||||
Balance at February 28, 2014 | $ | 25,139 | $ | (24,387 | ) | $ | 752 | ||||||
Other comprehensive loss before reclassifications | (15,917 | ) | (158 | ) | (16,075 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 445 | 445 | ||||||||||
Net current period other comprehensive (loss) income | (15,917 | ) | 287 | (15,630 | ) | ||||||||
Balance at November 28, 2014 | $ | 9,222 | $ | (24,100 | ) | $ | (14,878 | ) | |||||
The reclassifications out of accumulated other comprehensive income (loss) are as follows. | |||||||||||||
(In thousands) | Nine Months Ended | Consolidated Statement of Income | |||||||||||
November 28, 2014 | |||||||||||||
Classification | |||||||||||||
Amortization of pension and other postretirement benefits items | |||||||||||||
Actuarial losses, net | $ | (1,060 | ) | Administrative and general expenses | |||||||||
Prior service credit, net | 394 | Administrative and general expenses | |||||||||||
(666 | ) | ||||||||||||
Tax benefit | 221 | Income tax expense | |||||||||||
Total, net of tax | (445 | ) | |||||||||||
Total reclassifications | $ | (445 | ) | ||||||||||
Customer_Allowances_and_Discou
Customer Allowances and Discounts | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Customer Allowances and Discounts | Note 8 – Customer Allowances and Discounts | ||||||||||||
Trade accounts receivable is reported net of certain allowances and discounts. The most significant of these are as follows: | |||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Allowance for seasonal sales returns | $ | 26,651 | $ | 26,613 | $ | 30,028 | |||||||
Allowance for outdated products | 9,624 | 9,692 | 9,848 | ||||||||||
Allowance for doubtful accounts | 1,752 | 2,488 | 3,934 | ||||||||||
Allowance for marketing funds | 33,155 | 28,277 | 28,416 | ||||||||||
Allowance for rebates | 31,987 | 27,369 | 29,191 | ||||||||||
$ | 103,169 | $ | 94,439 | $ | 101,417 | ||||||||
Certain customer allowances and discounts are settled in cash. These accounts, primarily rebates, which are classified as “Accrued liabilities” on the Consolidated Statement of Financial Position, totaled $16.1 million, $16.5 million and $15.4 million as of November 28, 2014, February 28, 2014 and November 29, 2013, respectively. |
Inventories
Inventories | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||
Inventories | Note 9 – Inventories | ||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Raw materials | $ | 11,668 | $ | 20,915 | $ | 22,447 | |||||||
Work in process | 6,404 | 8,093 | 8,178 | ||||||||||
Finished products | 343,460 | 287,481 | 323,204 | ||||||||||
361,532 | 316,489 | 353,829 | |||||||||||
Less LIFO reserve | 84,132 | 82,140 | 85,617 | ||||||||||
277,400 | 234,349 | 268,212 | |||||||||||
Display materials and factory supplies | 8,790 | 20,412 | 23,160 | ||||||||||
$ | 286,190 | $ | 254,761 | $ | 291,372 | ||||||||
The valuation of inventory under the Last-In, First-Out (“LIFO”) method is made at the end of each fiscal year based on inventory levels and costs at that time. Accordingly, interim LIFO calculations, by necessity, are based on estimates of expected fiscal year-end inventory levels and costs, and are subject to final fiscal year-end LIFO inventory calculations. | |||||||||||||
Inventory held on location for retailers with scan-based trading arrangements, which is included in finished products, totaled $88.5 million, $66.8 million and $82.0 million as of November 28, 2014, February 28, 2014 and November 29, 2013, respectively. |
Deferred_Costs
Deferred Costs | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Deferred Costs | Note 10 – Deferred Costs | ||||||||||||
Deferred costs and future payment commitments for retail supply agreements are included in the following financial statement captions: | |||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Prepaid expenses and other | $ | 107,729 | $ | 100,282 | $ | 103,173 | |||||||
Other assets | 389,533 | 428,090 | 301,844 | ||||||||||
Deferred cost assets | 497,262 | 528,372 | 405,017 | ||||||||||
Other current liabilities | (66,007 | ) | (84,860 | ) | (64,652 | ) | |||||||
Other liabilities | (136,111 | ) | (149,190 | ) | (83,100 | ) | |||||||
Deferred cost liabilities | (202,118 | ) | (234,050 | ) | (147,752 | ) | |||||||
Net deferred costs | $ | 295,144 | $ | 294,322 | $ | 257,265 | |||||||
The Corporation maintains an allowance for deferred costs related to supply agreements of $2.6 million, $4.1 million and $5.6 million at November 28, 2014, February 28, 2014 and November 29, 2013, respectively. This allowance is included in “Other assets” on the Consolidated Statement of Financial Position. |
Other_Liabilities
Other Liabilities | 9 Months Ended |
Nov. 28, 2014 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 11 – Other Liabilities |
Included in “Other liabilities” on the Consolidated Statement of Financial Position is a deferred lease obligation related to an operating lease with H L & L Property Company (“H L & L”), for a building that will function as the future American Greetings world headquarters. The building is currently being constructed and expected to be available for occupancy in calendar year 2016. | |
H L & L is an indirect affiliate of American Greetings as it is indirectly owned by members of the Weiss family. Due to, among other things, the Corporation’s involvement in the construction of the building, the Corporation is required to be treated, for accounting purposes only, as the “deemed owner” of the new world headquarters building during the construction period. Accordingly, the Corporation has recorded an asset and associated offsetting liability during the construction of the building, even though the Corporation does not own the asset and is not the obligor on the corresponding construction debt. As of November 28, 2014, the asset and corresponding liability was $19.0 million. |
Debt
Debt | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Debt | Note 12 – Debt | ||||||||||||
Debt due within one year was as follows: | |||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Current portion of term loan | $ | 20,000 | $ | 20,000 | $ | 20,000 | |||||||
Accounts receivable facility | 3,800 | — | — | ||||||||||
$ | 23,800 | $ | 20,000 | $ | 20,000 | ||||||||
Long-term debt and their related calendar year due dates were as follows: | |||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Term loan, due 2019 | $ | 325,000 | $ | 340,000 | $ | 350,000 | |||||||
7.375% senior notes, due 2021 | 225,000 | 225,000 | 225,000 | ||||||||||
Revolving credit facility, due 2018 | 48,000 | 4,500 | 77,300 | ||||||||||
6.10% senior notes, due 2028 | 181 | 181 | 181 | ||||||||||
Unamortized financing fees | (7,949 | ) | (10,567 | ) | (10,153 | ) | |||||||
590,232 | 559,114 | 642,328 | |||||||||||
Current portion of term loan | (20,000 | ) | (20,000 | ) | (20,000 | ) | |||||||
$ | 570,232 | $ | 539,114 | $ | 622,328 | ||||||||
At November 28, 2014, the balances outstanding on the term loan facility, the revolving credit facility and accounts receivable facility bear interest at a rate of approximately 2.7%, 2.7% and 0.6%, respectively. The revolving credit facility and accounts receivable facility provide the Corporation with funding of up to $250 million and $50 million, respectively. Outstanding letters of credit, which reduce the total credit available under the revolving credit and the accounts receivable facilities, totaled $27.7 million at November 28, 2014. | |||||||||||||
The total fair value of the Corporation’s publicly traded debt, which was considered a Level 1 valuation as it was based on quoted market prices, was $238.0 million (at a carrying value of $225.2 million), $234.7 million (at a carrying value of $225.2 million) and $228.8 million (at a carrying value of $225.2 million) at November 28, 2014, February 28, 2014 and November 29, 2013, respectively. | |||||||||||||
The total fair value of the Corporation’s non-publicly traded debt, which was considered a Level 2 valuation as it was based on comparable privately traded debt prices, was $369.6 million (at a principal carrying value of $373.0 million), $344.5 million (at a principal carrying value of $344.5 million), and $427.3 million (at a principal carrying value of $427.3 million) at November 28, 2014, February 28, 2014 and November 29, 2013, respectively. | |||||||||||||
On September 5, 2014, the Corporation amended the Credit Agreement which provides for the term loan facility and revolving credit facility. The amendment modifies the Credit Agreement to, among other things: (i) reduce the interest rates applicable to the term loan and revolving loans, (ii) eliminate the LIBOR floor interest rate used in the determination of interest charged on Eurodollar revolving loans, (iii) reduce the commitment fee applicable to unused revolving commitments and (iv) reset the usage term of the general restricted payment basket with effect from September 5, 2014. As a result of this amendment and certain changes in the syndicated lending group, the Corporation expensed $1.9 million of unamortized financing fees and capitalized $1.1 million of new fees in the quarter ended November 28, 2014. | |||||||||||||
On August 8, 2014, the Corporation amended its accounts receivable facility. The amendment modified the accounts receivable facility to, among other things: (i) extend the scheduled termination date to August 7, 2015 and (ii) reduce the fees associated with this facility. | |||||||||||||
At November 28, 2014, the Corporation was in compliance with the financial covenants under its borrowing agreements. |
Retirement_Benefits
Retirement Benefits | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Retirement Benefits | Note 13 – Retirement Benefits | ||||||||||||||||
The components of periodic benefit cost for the Corporation’s defined benefit pension and postretirement benefits plans are as follows: | |||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 28, | November 29, | November 28, | November 29, | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 144 | $ | 315 | $ | 433 | $ | 955 | |||||||||
Interest cost | 1,833 | 1,766 | 5,516 | 5,244 | |||||||||||||
Expected return on plan assets | (1,617 | ) | (1,577 | ) | (4,868 | ) | (4,718 | ) | |||||||||
Amortization of prior service cost | 582 | 68 | 584 | 170 | |||||||||||||
Amortization of actuarial loss | 710 | 871 | 2,136 | 2,701 | |||||||||||||
$ | 1,652 | $ | 1,443 | $ | 3,801 | $ | 4,352 | ||||||||||
Postretirement Benefits | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 28, | November 29, | November 28, | November 29, | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 76 | $ | 48 | $ | 276 | $ | 323 | |||||||||
Interest cost | 559 | 572 | 1,909 | 1,797 | |||||||||||||
Expected return on plan assets | (762 | ) | (775 | ) | (2,162 | ) | (2,300 | ) | |||||||||
Amortization of prior service credit | (328 | ) | (327 | ) | (978 | ) | (977 | ) | |||||||||
Amortization of actuarial gain | (626 | ) | (357 | ) | (1,076 | ) | (782 | ) | |||||||||
$ | (1,081 | ) | $ | (839 | ) | $ | (2,031 | ) | $ | (1,939 | ) | ||||||
The Corporation has a discretionary profit-sharing plan with a 401(k) provision covering most of its United States employees. The profit-sharing plan expense for the nine months ended November 28, 2014 was $7.5 million, compared to $4.9 million in the prior year period. The Corporation also matches a portion of 401(k) employee contributions. The expenses recognized for the three and nine month periods ended November 28, 2014 were $0.9 million and $3.6 million ($1.3 million and $4.0 million for the three and nine month periods ended November 29, 2013), respectively. The profit-sharing plan and 401(k) matching expenses for the nine month periods are estimates as actual contributions are determined after fiscal year-end. | |||||||||||||||||
At November 28, 2014, February 28, 2014 and November 29, 2013, the liability for postretirement benefits other than pensions was $20.6 million, $17.9 million and $18.6 million, respectively, and is included in “Other liabilities” on the Consolidated Statement of Financial Position. At November 28, 2014, February 28, 2014 and November 29, 2013, the long-term liability for pension benefits was $74.8 million, $77.3 million and $81.0 million, respectively, and is included in “Other liabilities” on the Consolidated Statement of Financial Position. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Note 14 – Fair Value Measurements | ||||||||||||||||
Assets and liabilities measured at fair value are classified using the fair value hierarchy based upon the transparency of inputs as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. The three levels are defined as follows: | |||||||||||||||||
• | Level 1 – Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||||||
• | Level 3 – Valuation is based upon unobservable inputs that are significant to the fair value measurement. | ||||||||||||||||
The following table summarizes the assets and liabilities measured at fair value as of November 28, 2014: | |||||||||||||||||
(In thousands) | November 28, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan assets | $ | 12,840 | $ | 10,932 | $ | 1,908 | $ | — | |||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan liabilities | $ | 13,783 | $ | 10,932 | $ | 2,851 | $ | — | |||||||||
The following table summarizes the assets and liabilities measured at fair value as of February 28, 2014: | |||||||||||||||||
(In thousands) | February 28, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan assets | $ | 12,285 | $ | 10,289 | $ | 1,996 | $ | — | |||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan liabilities | $ | 13,230 | $ | 10,289 | $ | 2,941 | $ | — | |||||||||
The following table summarizes the assets and liabilities measured at fair value as of November 29, 2013: | |||||||||||||||||
(In thousands) | November 29, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan assets | $ | 12,129 | $ | 8,814 | $ | 3,315 | $ | — | |||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan liabilities | $ | 13,295 | $ | 8,814 | $ | 4,481 | $ | — | |||||||||
The deferred compensation plan includes investments in mutual funds and a money market fund. Assets held in mutual funds are recorded at fair value, which is considered a Level 1 valuation as it is based on each fund’s quoted market value per share in an active market. The money market fund is classified as Level 2 as substantially all of the fund’s investments are determined using amortized cost. The fair value of the deferred compensation plan liabilities is based on the fair value of: (i) the plan’s assets for invested deferrals and (ii) hypothetical investments for unfunded deferrals resulting from the conversion of deferred restricted stock units to future cash-settled obligations pursuant to the Merger. Prior to the Merger, the assets and related obligation associated with deferred restricted stock units were carried at cost in equity and offset each other. |
Contingency
Contingency | 9 Months Ended |
Nov. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingency | Note 15 – Contingency |
The Corporation is presently involved in various judicial, administrative, regulatory and arbitration proceedings concerning matters arising in the ordinary course of business, including but not limited to, employment, commercial disputes and other contractual matters, one of which is described below. These matters are inherently subject to many uncertainties regarding the possibility of a loss to the Corporation. These uncertainties will ultimately be resolved when one or more future events occur or fail to occur, confirming the incurrence of a liability or reduction of a liability. In accordance with ASC Topic 450, “Contingencies,” the Corporation accrues for these contingencies by a charge to income when it is both probable that one or more future events will occur confirming the fact of a loss and the amount of the loss can be reasonably estimated. Due to this uncertainty, the actual amount of any loss may ultimately prove to be larger or smaller than the amounts reflected in the Corporation’s Consolidated Financial Statements. Some of these proceedings are at preliminary stages and some of these cases seek an indeterminate amount of damages. | |
On June 4, 2014, Al Smith and Jeffrey Hourcade, former fixture installation crew members for special projects, individually and on behalf of those similarly situated, filed a putative class action lawsuit against American Greetings Corporation in the U.S. District Court for the Northern District of California, San Francisco Division. Plaintiffs claim that the Corporation violated certain rules under the Fair Labor Standards Act and California law, including the California Labor Code, Industrial Welfare Commission Wage Orders. For themselves and the proposed classes, plaintiffs seek an unspecified amount of general and special damages, including but not limited to minimum wages, agreed upon wages and overtime wages, statutory liquidated damages, statutory penalties (including penalties under the California Labor Code Private Attorney General Act of 2004 (“PAGA”), unpaid benefits, reasonable attorneys’ fees and costs, and interest). In addition, plaintiffs request disgorgement of all funds the Corporation acquired by means of any act or practice that constitutes unfair competition and restoration of such funds to the plaintiffs and the proposed classes. On November 6, 2014, plaintiffs filed a Second Amended Complaint to add claims for reimbursement of business expenses and failure to provide meal periods in violation of California Law and on December 12, 2014, amended their PAGA notice to include the newly added claims. | |
Although the proceeding is in the early stages and there are significant factual issues to be resolved, management does not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on the Corporation’s financial condition, although the outcome could be material to the Corporation’s operating results for any particular period, depending, in part, upon the operating results for such period. Please refer to Item 1. Legal Proceedings included in Part II – Other Information of this Form 10-Q for a description of the Smith and Hourcade lawsuit. |
Income_Taxes
Income Taxes | 9 Months Ended |
Nov. 28, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16 – Income Taxes |
The Corporation’s provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against income before income tax expense for the period. In addition, non-recurring or discrete items are recorded during the period in which they occur. The magnitude of the impact that discrete items have on the Corporation’s quarterly effective tax rate is dependent on the level of income in the period. The effective tax rate was 35.7% and 27.6% for the three and nine months ended November 28, 2014, respectively, and 8.6% and 49.1% for the three and nine months ended November 29, 2013, respectively. The lower than statutory rate for the nine months ended November 28, 2014 was due to both the recording of a net $4.1 million federal tax refund and related interest attributable to fiscal 2000 and the error corrections identified in the current year first quarter and recorded in accordance with ASC Topic 250, Accounting Changes and Error Corrections. The net impact of the error corrections was a reduction to income tax expense of $4.1 million. During the first quarter of fiscal 2015, the Corporation identified and corrected errors in the accounting for income taxes that related to the year ended February 28, 2014. These errors primarily related to the Corporation’s failure to consider all sources of available taxable income when assessing the need for a valuation allowance against certain deferred tax assets and the recognition of a liability for an uncertain tax position. These errors were the result of the significant complexity created as a result of the Merger and related transactions in fiscal 2014. See Note 1 for further information. The lower than statutory rate for the three months ended November 29, 2013 was due primarily to the release of reserves upon lapse of the applicable statutes and related to positions that had been effectively settled under audit. The higher than statutory rate for the nine months ended November 29, 2013 was due primarily to the recording of an $8.0 million valuation allowance against certain net operating loss and foreign tax credit carryforwards which the Corporation believed at the time would expire unused as a result of the Merger. | |
At November 28, 2014, the Corporation had unrecognized tax benefits of $21.6 million that, if recognized, would have a favorable effect on the Corporation’s income tax expense of $19.1 million. During the nine months ended November 28, 2014, the Corporation’s unrecognized tax benefits increased $2.6 million as a result of uncertain tax positions taken in the Corporation’s most recently filed tax returns and error corrections related to the uncertain tax position as discussed above. It is reasonably possible that the Corporation’s unrecognized tax positions as of November 28, 2014 could decrease $3.0 million during the next twelve months due to anticipated settlements and resulting cash payments related to tax years which are open to examination. | |
The Corporation recognizes interest and penalties accrued on unrecognized tax benefits and refundable income taxes as a component of income tax expense. During the nine months ended November 28, 2014, the Corporation recognized a net benefit of $3.8 million for interest and penalties on unrecognized tax benefits and refundable income taxes. As of November 28, 2014, the total amount of gross accrued interest and penalties related to unrecognized tax benefits less refundable income taxes was a net payable of $0.6 million. | |
The Corporation is subject to examination by the IRS for tax years 2010 to the present and various U.S. state and local jurisdictions for tax years 2001 to the present. The Corporation is also subject to tax examination in various international tax jurisdictions, including Canada, the United Kingdom, Australia, Italy, Mexico and New Zealand for tax years 2006 to the present. |
Related_Party_Information
Related Party Information | 9 Months Ended |
Nov. 28, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Information | Note 17 – Related Party Information |
World headquarters relocation | |
In May 2011, the Corporation announced that it will be relocating its world headquarters to a new location in the City of Westlake, Ohio, in a mixed-use development known as Crocker Park (the “Crocker Park Development”), which offers a vibrant urban setting, with retail stores and restaurants, offices and apartments. After putting the project on hold pending the outcome of the going private transaction, the Corporation announced plans in October 2013 to resume the project and, on March 26, 2014, the Corporation purchased from Crocker Park, LLC, the owner of the Crocker Park Development, 14.48 acres of land at the south end of the Crocker Park Development (the “Crocker Park Site”) on which the new world headquarters will be built. The purchase price for the land was $7.4 million (based on a per acre price of $510 thousand). Morry Weiss, the Chairman of the board of the Corporation, Zev Weiss and Jeffrey Weiss, directors and the Co-Chief Executive Officers of the Corporation, and Gary and Elie Weiss, directors and non-executive officers of the Corporation, together with members of their family (collectively, the “Weiss Family”), indirectly own a minority stake in Crocker Park, LLC through their indirect ownership of approximately 37% of the membership interests in Crocker Park, LLC. In addition, Morry Weiss and other members of the Weiss Family have guaranteed certain of Crocker Park, LLC’s obligations, and are expected to guarantee additional obligations of Crocker Park, LLC, incurred in connection with the Crocker Park Development. The authority to conduct, manage and control the business of Crocker Park, LLC, including operating the Crocker Park Development and the decision whether to sell the Crocker Park Site to American Greetings, was reserved to the manager of Crocker Park, LLC, who is not an affiliate of the Weiss Family and that is an affiliate of Stark Enterprises, Inc. | |
The Corporation is leasing a portion of the Crocker Park Site to H L & L, which will construct the new world headquarters on the Crocker Park Site and sublease the new world headquarters back to the Corporation. The Corporation has also entered into an operating lease with H L & L for the use of the new world headquarters building, anticipated to be available for occupancy in calendar year 2016. The initial lease term is fifteen years and will begin upon occupancy. The annual rent is expected to be approximately $9.5 million. See Note 11 for further information. Please refer to the Corporation’s Annual Report on Form 10-K for the fiscal year ended February 28, 2014 for a description of the transactions associated with the world headquarters relocation. | |
Transactions with Parent Companies and Other Affiliated Companies | |
From time to time employees of the Corporation may provide services to its parent companies as well as companies that are owned or controlled by members of the Weiss family, in each case provided that such services do not interfere with the Corporation’s employees’ ability to perform services on its behalf. When providing such services, the affiliated companies reimburse the Corporation for such services, based on the costs of employing the individual (including salary and benefits) and the amount of time spent by such employee in providing services to the affiliated company. | |
During the nine months ended November 28, 2014, the Corporation paid cash dividends in the aggregate amount of $24.2 million to Century Intermediate Holding Company, its parent and sole shareholder, $14.3 million of which was for the purpose of paying interest on the $285.0 million aggregate principal amount 9.75%/10.50% Senior PIK Toggle Notes due 2019, which were issued by Century Intermediate Holding Company 2, an indirect parent of American Greetings. In addition, H L & L paid $9.9 million to the Corporation to acquire certain assets previously purchased by the Corporation related to the new world headquarters project, which is included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows. |
Business_Segment_Information
Business Segment Information | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Business Segment Information | Note 18 – Business Segment Information | ||||||||||||||||
The Corporation has North American Social Expression Products, International Social Expression Products, Retail Operations, AG Interactive and non-reportable segments. The North American Social Expression Products and International Social Expression Products segments primarily design, manufacture and sell greeting cards and other related products through various channels of distribution with mass merchandising as the primary channel. At November 28, 2014, the Retail Operations segment operated 415 card and gift retail stores in the United Kingdom. The stores sell products purchased from the International Social Expression Products segment as well as products purchased from other vendors. AG Interactive distributes social expression products, including electronic greetings and a broad range of graphics and digital services and products, through a variety of electronic channels, including Web sites, Internet portals and electronic mobile devices. The Corporation’s non-reportable operating segment primarily includes licensing activities and the design, manufacture and sale of display fixtures. The display fixtures business was sold on the last day of the second quarter ended August 29, 2014. See Note 4 for further information. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | November 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Total Revenue: | |||||||||||||||||
North American Social Expression Products | $ | 360,704 | $ | 342,185 | $ | 966,751 | $ | 932,166 | |||||||||
International Social Expression Products | 96,424 | 94,639 | 239,914 | 228,812 | |||||||||||||
Intersegment items | (28,234 | ) | (24,200 | ) | (49,533 | ) | (44,029 | ) | |||||||||
Net | 68,190 | 70,439 | 190,381 | 184,783 | |||||||||||||
Retail Operations | 64,398 | 64,875 | 213,303 | 202,325 | |||||||||||||
AG Interactive | 15,149 | 15,935 | 44,093 | 45,139 | |||||||||||||
Non-reportable segment | 5,617 | 14,082 | 35,539 | 60,827 | |||||||||||||
$ | 514,058 | $ | 507,516 | $ | 1,450,067 | $ | 1,425,240 | ||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | November 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Segment Earnings (Loss): | |||||||||||||||||
North American Social Expression Products | $ | 37,613 | $ | 22,894 | $ | 134,807 | $ | 124,286 | |||||||||
International Social Expression Products | 8,547 | 8,539 | 12,303 | 13,278 | |||||||||||||
Intersegment items | (5,362 | ) | (2,297 | ) | (7,102 | ) | (6,022 | ) | |||||||||
Net | 3,185 | 6,242 | 5,201 | 7,256 | |||||||||||||
Retail Operations | (16,578 | ) | (12,825 | ) | (35,181 | ) | (25,261 | ) | |||||||||
AG Interactive | 6,131 | 3,477 | 17,507 | 9,955 | |||||||||||||
Non-reportable segment | 5,080 | 5,710 | 7,789 | 23,151 | |||||||||||||
Unallocated | |||||||||||||||||
Interest expense | (9,533 | ) | (8,454 | ) | (27,782 | ) | (18,199 | ) | |||||||||
Profit-sharing plan expense | (2,041 | ) | (407 | ) | (7,509 | ) | (4,872 | ) | |||||||||
Stock-based compensation expense | — | — | — | (13,596 | ) | ||||||||||||
Corporate overhead expense | (6,335 | ) | (13,022 | ) | 12,633 | (40,877 | ) | ||||||||||
(17,909 | ) | (21,883 | ) | (22,658 | ) | (77,544 | ) | ||||||||||
$ | 17,522 | $ | 3,615 | $ | 107,465 | $ | 61,843 | ||||||||||
For the nine months ended November 29, 2013, stock-based compensation in the table above includes non-cash stock-based compensation prior to the Merger and the impact of the settlement of stock options and the cancellation or modification of outstanding restricted stock units and performance shares concurrent with the Merger, a portion of which was non-cash. There is no stock-based compensation subsequent to the Merger as these plans were converted into cash compensation plans at the time of the Merger. | |||||||||||||||||
“Corporate overhead expense” includes costs associated with corporate operations including, among other costs, senior management, corporate finance, legal, and insurance programs. | |||||||||||||||||
For the nine months ended November 28, 2014, “Corporate overhead expense” included a net gain on sale of AGI In-Store of $38.7 million. See Note 4 for further information. | |||||||||||||||||
For both the three and nine month periods ended November 28, 2014, “Corporate overhead expense” included interest income of $2.5 million related to the Clinton Cards liquidation. See Note 6 for further information. | |||||||||||||||||
During the current year second quarter, the Corporation sold its current world headquarters location and incurred a non-cash loss on disposal of $15.5 million, of which $13.3 million was recorded within the North American Social Expression Products segment and $2.2 million was recorded in “Corporate overhead expense”. See Note 4 for further information | |||||||||||||||||
For the nine months ended November 29, 2013, “Corporate overhead expense” included non-recurring Merger-related transaction costs of approximately $17.4 million and a gain totaling $3.3 million related to a cash distribution received in connection with the Corporation’s minority investment in the common stock of Party City. | |||||||||||||||||
Termination Benefits | |||||||||||||||||
Termination benefits are primarily considered part of an ongoing benefit arrangement, accounted for in accordance with ASC Topic 712, “Compensation – Nonretirement Postemployment Benefits,” and are recorded when payment of the benefits is probable and can be reasonably estimated. | |||||||||||||||||
The balance of the severance accrual was $4.5 million, $4.0 million and $2.5 million at November 28, 2014, February 28, 2014 and November 29, 2013, respectively. The payments expected within the next twelve months are included in “Accrued liabilities” while the remaining payments beyond the next twelve months are included in “Other liabilities” on the Consolidated Statement of Financial Position. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Nov. 28, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 19 – Subsequent Event |
From time to time the Corporation grants to third parties rights in its intellectual property, including rights to utilize intellectual property as well as rights to receive royalties and other revenue generated by the intellectual property. In order to secure complete control and ownership over the rights in certain character properties that the Corporation previously granted to a third party (the “Character Property Rights”), on December 18, 2014, the Corporation paid $37.7 million to purchase these Character Property Rights. In addition to the $37.7 million paid for these rights, in the event of a future sale of these Character Property Rights and the associated character properties, the Corporation may be required, depending on the proceeds of such sale, to pay up to an additional $4.0 million of the proceeds that it receives from any such sale. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Nov. 28, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Issued Accounting Standards Update of Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern | In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Corporation does not expect that the adoption of this standard will have a material effect on its financial statements. |
Issued Accounting Standards Update of Revenue from Contracts with Customers | In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers”. The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 for public companies. Early adoption is not permitted. The standard permits the use of either a retrospective or modified retrospective (cumulative effect) transition method. The Corporation is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements nor decided upon the method of adoption. |
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | In April 2014, the FASB issued ASU No. 2014-08 (“ASU 2014-08”), “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the new guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results and is disposed of or classified as held for sale. The standard also introduces several new disclosures. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. ASU 2014-08 is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. The Corporation adopted ASU 2014-08 on August 29, 2014 in connection with the disposition of A.G. Industries, Inc. See Note 4 for further information. |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | In July 2013, the FASB issued ASU No. 2013-11 (“ASU 2013-11”), “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. ASU 2013-11 is effective for annual and interim periods beginning after December 15, 2013 for public companies, with early adoption permitted. The Corporation adopted ASU 2013-11 on March 1, 2014. |
Royalty_Revenue_and_Related_Ex1
Royalty Revenue and Related Expenses (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Revenues and Expenses Associated with Servicing of Agreements | 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 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Royalty revenue | $ | 5,666 | $ | 5,046 | $ | 16,527 | $ | 17,964 | |||||||||
Royalty expenses | |||||||||||||||||
Material, labor and other production (credit) costs | $ | (1,527 | ) | $ | 1,954 | $ | 1,508 | $ | 5,453 | ||||||||
Selling, distribution and marketing expenses | 1,562 | 1,431 | 4,837 | 4,615 | |||||||||||||
Administrative and general expenses | 447 | 421 | 1,228 | 1,322 | |||||||||||||
$ | 482 | $ | 3,806 | $ | 7,573 | $ | 11,390 | ||||||||||
Other_Income_and_Expense_Table
Other Income and Expense (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||
Other Operating (Income) Expense - Net | Other Operating Income – Net | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | November 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Gain adjustment (gain) on sale of AGI In-Store | $ | 139 | $ | — | $ | (38,663 | ) | $ | — | ||||||||
Clinton Cards secured debt recovery | — | (1,804 | ) | (3,390 | ) | (4,232 | ) | ||||||||||
Loss on asset disposal | 90 | 672 | 15,823 | 559 | |||||||||||||
Miscellaneous | (928 | ) | (1,236 | ) | (265 | ) | (2,974 | ) | |||||||||
Other operating income – net | $ | (699 | ) | $ | (2,368 | ) | $ | (26,495 | ) | $ | (6,647 | ) | |||||
Other Non-Operating (Income) Expense - Net | Other Non-Operating Expense (Income) - Net | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | November 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Impairment of investment in Schurman | $ | — | $ | 1,935 | $ | — | $ | 1,935 | |||||||||
Gain related to Party City investment | — | — | — | (3,262 | ) | ||||||||||||
Foreign exchange loss (gain) | 955 | (454 | ) | 432 | (1,729 | ) | |||||||||||
Rental income | (122 | ) | (408 | ) | (877 | ) | (1,294 | ) | |||||||||
Miscellaneous | — | (26 | ) | (101 | ) | (1 | ) | ||||||||||
Other non-operating expense (income)– net | $ | 833 | $ | 1,047 | $ | (546 | ) | $ | (4,351 | ) | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) are as follows. | ||||||||||||
(In thousands) | Foreign | Pensions and | Total | ||||||||||
Currency | Other | ||||||||||||
Translation | Postretirement | ||||||||||||
Adjustments | Benefits | ||||||||||||
Balance at February 28, 2014 | $ | 25,139 | $ | (24,387 | ) | $ | 752 | ||||||
Other comprehensive loss before reclassifications | (15,917 | ) | (158 | ) | (16,075 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 445 | 445 | ||||||||||
Net current period other comprehensive (loss) income | (15,917 | ) | 287 | (15,630 | ) | ||||||||
Balance at November 28, 2014 | $ | 9,222 | $ | (24,100 | ) | $ | (14,878 | ) | |||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive income (loss) are as follows. | ||||||||||||
(In thousands) | Nine Months Ended | Consolidated Statement of Income | |||||||||||
November 28, 2014 | |||||||||||||
Classification | |||||||||||||
Amortization of pension and other postretirement benefits items | |||||||||||||
Actuarial losses, net | $ | (1,060 | ) | Administrative and general expenses | |||||||||
Prior service credit, net | 394 | Administrative and general expenses | |||||||||||
(666 | ) | ||||||||||||
Tax benefit | 221 | Income tax expense | |||||||||||
Total, net of tax | (445 | ) | |||||||||||
Total reclassifications | $ | (445 | ) | ||||||||||
Customer_Allowances_and_Discou1
Customer Allowances and Discounts (Tables) | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Allowances and Discounts Trade Accounts Receivable | Trade accounts receivable is reported net of certain allowances and discounts. The most significant of these are as follows: | ||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Allowance for seasonal sales returns | $ | 26,651 | $ | 26,613 | $ | 30,028 | |||||||
Allowance for outdated products | 9,624 | 9,692 | 9,848 | ||||||||||
Allowance for doubtful accounts | 1,752 | 2,488 | 3,934 | ||||||||||
Allowance for marketing funds | 33,155 | 28,277 | 28,416 | ||||||||||
Allowance for rebates | 31,987 | 27,369 | 29,191 | ||||||||||
$ | 103,169 | $ | 94,439 | $ | 101,417 | ||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||
Schedule of Inventories | |||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Raw materials | $ | 11,668 | $ | 20,915 | $ | 22,447 | |||||||
Work in process | 6,404 | 8,093 | 8,178 | ||||||||||
Finished products | 343,460 | 287,481 | 323,204 | ||||||||||
361,532 | 316,489 | 353,829 | |||||||||||
Less LIFO reserve | 84,132 | 82,140 | 85,617 | ||||||||||
277,400 | 234,349 | 268,212 | |||||||||||
Display materials and factory supplies | 8,790 | 20,412 | 23,160 | ||||||||||
$ | 286,190 | $ | 254,761 | $ | 291,372 | ||||||||
Deferred_Costs_Tables
Deferred Costs (Tables) | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Deferred Costs and Future Payment Commitments | Deferred costs and future payment commitments for retail supply agreements are included in the following financial statement captions: | ||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Prepaid expenses and other | $ | 107,729 | $ | 100,282 | $ | 103,173 | |||||||
Other assets | 389,533 | 428,090 | 301,844 | ||||||||||
Deferred cost assets | 497,262 | 528,372 | 405,017 | ||||||||||
Other current liabilities | (66,007 | ) | (84,860 | ) | (64,652 | ) | |||||||
Other liabilities | (136,111 | ) | (149,190 | ) | (83,100 | ) | |||||||
Deferred cost liabilities | (202,118 | ) | (234,050 | ) | (147,752 | ) | |||||||
Net deferred costs | $ | 295,144 | $ | 294,322 | $ | 257,265 | |||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||||||
Nov. 28, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Summary of Debt Due Within One Year | Debt due within one year was as follows: | ||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Current portion of term loan | $ | 20,000 | $ | 20,000 | $ | 20,000 | |||||||
Accounts receivable facility | 3,800 | — | — | ||||||||||
$ | 23,800 | $ | 20,000 | $ | 20,000 | ||||||||
Long-Term Debt | Long-term debt and their related calendar year due dates were as follows: | ||||||||||||
(In thousands) | November 28, 2014 | February 28, 2014 | November 29, 2013 | ||||||||||
Term loan, due 2019 | $ | 325,000 | $ | 340,000 | $ | 350,000 | |||||||
7.375% senior notes, due 2021 | 225,000 | 225,000 | 225,000 | ||||||||||
Revolving credit facility, due 2018 | 48,000 | 4,500 | 77,300 | ||||||||||
6.10% senior notes, due 2028 | 181 | 181 | 181 | ||||||||||
Unamortized financing fees | (7,949 | ) | (10,567 | ) | (10,153 | ) | |||||||
590,232 | 559,114 | 642,328 | |||||||||||
Current portion of term loan | (20,000 | ) | (20,000 | ) | (20,000 | ) | |||||||
$ | 570,232 | $ | 539,114 | $ | 622,328 | ||||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Components of Periodic Benefit Cost for Corporation's Defined Benefit Pension and Postretirement Benefits Plans | The components of periodic benefit cost for the Corporation’s defined benefit pension and postretirement benefits plans are as follows: | ||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 28, | November 29, | November 28, | November 29, | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 144 | $ | 315 | $ | 433 | $ | 955 | |||||||||
Interest cost | 1,833 | 1,766 | 5,516 | 5,244 | |||||||||||||
Expected return on plan assets | (1,617 | ) | (1,577 | ) | (4,868 | ) | (4,718 | ) | |||||||||
Amortization of prior service cost | 582 | 68 | 584 | 170 | |||||||||||||
Amortization of actuarial loss | 710 | 871 | 2,136 | 2,701 | |||||||||||||
$ | 1,652 | $ | 1,443 | $ | 3,801 | $ | 4,352 | ||||||||||
Postretirement Benefits | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 28, | November 29, | November 28, | November 29, | ||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 76 | $ | 48 | $ | 276 | $ | 323 | |||||||||
Interest cost | 559 | 572 | 1,909 | 1,797 | |||||||||||||
Expected return on plan assets | (762 | ) | (775 | ) | (2,162 | ) | (2,300 | ) | |||||||||
Amortization of prior service credit | (328 | ) | (327 | ) | (978 | ) | (977 | ) | |||||||||
Amortization of actuarial gain | (626 | ) | (357 | ) | (1,076 | ) | (782 | ) | |||||||||
$ | (1,081 | ) | $ | (839 | ) | $ | (2,031 | ) | $ | (1,939 | ) | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Summary of Financial Assets and Liabilities Measured at Fair Value as of Measurement Date | The following table summarizes the assets and liabilities measured at fair value as of November 28, 2014: | ||||||||||||||||
(In thousands) | November 28, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan assets | $ | 12,840 | $ | 10,932 | $ | 1,908 | $ | — | |||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan liabilities | $ | 13,783 | $ | 10,932 | $ | 2,851 | $ | — | |||||||||
The following table summarizes the assets and liabilities measured at fair value as of February 28, 2014: | |||||||||||||||||
(In thousands) | February 28, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan assets | $ | 12,285 | $ | 10,289 | $ | 1,996 | $ | — | |||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan liabilities | $ | 13,230 | $ | 10,289 | $ | 2,941 | $ | — | |||||||||
The following table summarizes the assets and liabilities measured at fair value as of November 29, 2013: | |||||||||||||||||
(In thousands) | November 29, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan assets | $ | 12,129 | $ | 8,814 | $ | 3,315 | $ | — | |||||||||
Liabilities measured on a recurring basis: | |||||||||||||||||
Deferred compensation plan liabilities | $ | 13,295 | $ | 8,814 | $ | 4,481 | $ | — | |||||||||
Business_Segment_Information_T
Business Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 28, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule of Segment Reporting Information by Segment | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | November 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Total Revenue: | |||||||||||||||||
North American Social Expression Products | $ | 360,704 | $ | 342,185 | $ | 966,751 | $ | 932,166 | |||||||||
International Social Expression Products | 96,424 | 94,639 | 239,914 | 228,812 | |||||||||||||
Intersegment items | (28,234 | ) | (24,200 | ) | (49,533 | ) | (44,029 | ) | |||||||||
Net | 68,190 | 70,439 | 190,381 | 184,783 | |||||||||||||
Retail Operations | 64,398 | 64,875 | 213,303 | 202,325 | |||||||||||||
AG Interactive | 15,149 | 15,935 | 44,093 | 45,139 | |||||||||||||
Non-reportable segment | 5,617 | 14,082 | 35,539 | 60,827 | |||||||||||||
$ | 514,058 | $ | 507,516 | $ | 1,450,067 | $ | 1,425,240 | ||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | November 28, | November 29, | November 28, | November 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Segment Earnings (Loss): | |||||||||||||||||
North American Social Expression Products | $ | 37,613 | $ | 22,894 | $ | 134,807 | $ | 124,286 | |||||||||
International Social Expression Products | 8,547 | 8,539 | 12,303 | 13,278 | |||||||||||||
Intersegment items | (5,362 | ) | (2,297 | ) | (7,102 | ) | (6,022 | ) | |||||||||
Net | 3,185 | 6,242 | 5,201 | 7,256 | |||||||||||||
Retail Operations | (16,578 | ) | (12,825 | ) | (35,181 | ) | (25,261 | ) | |||||||||
AG Interactive | 6,131 | 3,477 | 17,507 | 9,955 | |||||||||||||
Non-reportable segment | 5,080 | 5,710 | 7,789 | 23,151 | |||||||||||||
Unallocated | |||||||||||||||||
Interest expense | (9,533 | ) | (8,454 | ) | (27,782 | ) | (18,199 | ) | |||||||||
Profit-sharing plan expense | (2,041 | ) | (407 | ) | (7,509 | ) | (4,872 | ) | |||||||||
Stock-based compensation expense | — | — | — | (13,596 | ) | ||||||||||||
Corporate overhead expense | (6,335 | ) | (13,022 | ) | 12,633 | (40,877 | ) | ||||||||||
(17,909 | ) | (21,883 | ) | (22,658 | ) | (77,544 | ) | ||||||||||
$ | 17,522 | $ | 3,615 | $ | 107,465 | $ | 61,843 | ||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 29, 2013 | Nov. 29, 2013 | Nov. 28, 2014 | Feb. 28, 2014 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Equity interest holdings in Schurman Fine Papers | 15.00% | |||
Investment impairment charge | $1,935,000 | $1,935,000 | ||
Forfeiture of equity interest in cost method investment | 15.00% | |||
Adjustments for Error Correction [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Increase in net income due to decrease in tax expense | 4,100,000 | |||
Schurman [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Investment impairment charge | 1,900,000 | |||
Carrying amount of the investment | 0 | 0 | ||
Schurman [Member] | Liquidity Guaranty [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of days after Schurman's lenders commence liquidation of collateral under Senior Credit Facility | 91 days | |||
Expiration period of liquidity guaranty | 2016-07 | |||
Maximum exposure to loss, amount | 10,000,000 | |||
Schurman [Member] | Business Trade and Other Receivables [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Maximum exposure to loss, amount | 33,800,000 | |||
Schurman [Member] | Operating Leases Subleased to Schurman [Member] | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Maximum exposure to loss, amount | $8,500,000 | $8,500,000 | $5,100,000 | 7,100,000 |
Dispositions_Additional_Inform
Dispositions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | ||
Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 | Aug. 29, 2014 | Aug. 29, 2014 | |
Significant Acquisitions and Disposals [Line Items] | ||||||
Non-cash loss on disposal of fixed assets | $90,000 | $672,000 | $15,823,000 | $559,000 | ||
Proceeds from sale of AGI In-Store | 73,659,000 | |||||
Net gain on sale of the AGI In-Store business | -139,000 | 38,663,000 | ||||
Operating income | 25,371,000 | 13,087,000 | 132,043,000 | 75,469,000 | ||
AGI In-Store [Member] | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Proceeds from sale of AGI In-Store | 73,700,000 | 73,700,000 | ||||
Net gain on sale of the AGI In-Store business | -100,000 | 38,700,000 | 38,800,000 | |||
Operating income | 100,000 | 18,600,000 | ||||
WHQ Location [Member] | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Cash received from sale of property | 13,500,000 | 13,500,000 | ||||
Non-cash loss on disposal of fixed assets | $15,500,000 | $15,500,000 | ||||
WHQ Development [Member] | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Anticipated year of completion for new world headquarters building | 2016 |
Royalty_Revenue_and_Related_Ex2
Royalty Revenue and Related Expenses - Revenues and Expenses Associated with Servicing of Agreements (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Royalty expenses | ||||
Material, labor and other production (credit) costs | $249,518 | $244,829 | $630,413 | $625,340 |
Selling, distribution and marketing expenses | 175,039 | 177,154 | 513,132 | 502,500 |
Administrative and general expenses | 64,829 | 74,814 | 200,974 | 228,578 |
AG Intellectual Properties [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Royalty revenue | 5,666 | 5,046 | 16,527 | 17,964 |
Royalty expenses | ||||
Material, labor and other production (credit) costs | -1,527 | 1,954 | 1,508 | 5,453 |
Selling, distribution and marketing expenses | 1,562 | 1,431 | 4,837 | 4,615 |
Administrative and general expenses | 447 | 421 | 1,228 | 1,322 |
Expenses associated with royalty revenue, Total | $482 | $3,806 | $7,573 | $11,390 |
Other_Income_and_Expense_Other
Other Income and Expense - Other Operating (Income) Expense - Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Other Income and Expenses [Abstract] | ||||
Gain adjustment (gain) on sale of AGI In-Store | $139 | ($38,663) | ||
Clinton Cards secured debt recovery | -1,804 | -3,390 | -4,232 | |
Loss on asset disposal | 90 | 672 | 15,823 | 559 |
Miscellaneous | -928 | -1,236 | -265 | -2,974 |
Other operating income - net | ($699) | ($2,368) | ($26,495) | ($6,647) |
Other_Income_and_Expense_Addit
Other Income and Expense - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2013 | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 | 30-May-14 | Aug. 29, 2014 | Aug. 29, 2014 | |
Other Income And Expense [Line Items] | ||||||||
Net gain on sale of the AGI In-Store business | ($139,000) | $38,663,000 | ||||||
Proceeds from sale of AGI In-Store | 73,659,000 | |||||||
Non-cash loss on disposal of fixed assets | 90,000 | 672,000 | 15,823,000 | 559,000 | ||||
Clinton Cards secured debt recovery | 1,804,000 | 3,390,000 | 4,232,000 | |||||
Distribution received | 11,926,000 | 4,982,000 | ||||||
Interest income | 2,517,000 | 29,000 | 2,658,000 | 222,000 | ||||
Investment impairment charge | 1,935,000 | 1,935,000 | ||||||
Gain related to Party City investment | 3,300,000 | 3,262,000 | ||||||
Clinton Cards [Member] | ||||||||
Other Income And Expense [Line Items] | ||||||||
Clinton Cards secured debt recovery | 3,400,000 | |||||||
Distribution received | 11,300,000 | |||||||
Interest income | 2,500,000 | |||||||
WHQ Location [Member] | ||||||||
Other Income And Expense [Line Items] | ||||||||
Non-cash loss on disposal of fixed assets | 15,500,000 | 15,500,000 | ||||||
Cash received from sale of property | 13,500,000 | 13,500,000 | ||||||
AGI In-Store [Member] | ||||||||
Other Income And Expense [Line Items] | ||||||||
Net gain on sale of the AGI In-Store business | -100,000 | 38,700,000 | 38,800,000 | |||||
Proceeds from sale of AGI In-Store | 73,700,000 | 73,700,000 | ||||||
Clinton Cards [Member] | ||||||||
Other Income And Expense [Line Items] | ||||||||
Clinton Cards secured debt recovery | $1,800,000 | $4,200,000 |
Other_Income_and_Expense_Other1
Other Income and Expense - Other Non-Operating (Income) Expense - Net (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2013 | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Other Income and Expenses [Abstract] | |||||
Impairment of investment in Schurman | $1,935 | $1,935 | |||
Gain related to Party City investment | -3,300 | -3,262 | |||
Foreign exchange loss (gain) | 955 | -454 | 432 | -1,729 | |
Rental income | -122 | -408 | -877 | -1,294 | |
Miscellaneous | -26 | -101 | -1 | ||
Other non-operating expense (income)- net | $833 | $1,047 | ($546) | ($4,351) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $752 | |||
Other comprehensive loss before reclassifications | -16,075 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 445 | |||
Other comprehensive (loss) income, net of tax | -15,489 | 10,188 | -15,630 | 9,341 |
Ending Balance | -14,878 | -7,792 | -14,878 | -7,792 |
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 25,139 | |||
Other comprehensive loss before reclassifications | -15,917 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||
Other comprehensive (loss) income, net of tax | -15,917 | |||
Ending Balance | 9,222 | 9,222 | ||
Pension and Other Postretirement Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | -24,387 | |||
Other comprehensive loss before reclassifications | -158 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 445 | |||
Other comprehensive (loss) income, net of tax | 287 | |||
Ending Balance | ($24,100) | ($24,100) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive (Loss) Income - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Administrative and general expenses | ($64,829) | ($74,814) | ($200,974) | ($228,578) |
Income (loss) before income tax expense (benefit) | 17,522 | 3,615 | 107,465 | 61,843 |
Income tax expense | -6,261 | -310 | -29,625 | -30,366 |
Total reclassifications | 11,261 | 3,305 | 77,840 | 31,477 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications | -445 | |||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Pension and Other Postretirement Benefit Plans [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) before income tax expense (benefit) | -666 | |||
Income tax expense | 221 | |||
Total reclassifications | -445 | |||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Pension and Other Postretirement Benefit Plans [Member] | Actuarial Losses, Net [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Administrative and general expenses | -1,060 | |||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Pension and Other Postretirement Benefit Plans [Member] | Prior Service Credit, Net [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Administrative and general expenses | $394 |
Customer_Allowances_and_Discou2
Customer Allowances and Discounts - Allowances and Discounts Trade Accounts Receivable (Detail) (USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Thousands, unless otherwise specified | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | $103,169 | $94,439 | $101,417 |
Allowance for Seasonal Sales Returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | 26,651 | 26,613 | 30,028 |
Allowance for Outdated Products [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | 9,624 | 9,692 | 9,848 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | 1,752 | 2,488 | 3,934 |
Allowance for Marketing Funds [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | 33,155 | 28,277 | 28,416 |
Allowance for Rebates [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | $31,987 | $27,369 | $29,191 |
Customer_Allowances_and_Discou3
Customer Allowances and Discounts - Additional Information (Detail) (Allowance for Rebates [Member], USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Millions, unless otherwise specified | |||
Allowance for Rebates [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Trade allowances and discounts settled in cash | $16.10 | $16.50 | $15.40 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventories (Detail) (USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | |||
Raw materials | $11,668 | $20,915 | $22,447 |
Work in process | 6,404 | 8,093 | 8,178 |
Finished products | 343,460 | 287,481 | 323,204 |
Gross inventory | 361,532 | 316,489 | 353,829 |
Less LIFO reserve | 84,132 | 82,140 | 85,617 |
Inventory net of last in first out reserve | 277,400 | 234,349 | 268,212 |
Display materials and factory supplies | 8,790 | 20,412 | 23,160 |
Net inventory | $286,190 | $254,761 | $291,372 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Millions, unless otherwise specified | |||
Inventory Disclosure [Abstract] | |||
Inventory held on location for retailers with scan-based trading arrangements, which is included in finished products | $88.50 | $66.80 | $82 |
Deferred_Costs_Deferred_Costs_
Deferred Costs - Deferred Costs and Future Payment Commitments (Detail) (USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Thousands, unless otherwise specified | |||
Deferred Costs [Abstract] | |||
Prepaid expenses and other | $107,729 | $100,282 | $103,173 |
Other assets | 389,533 | 428,090 | 301,844 |
Deferred cost assets | 497,262 | 528,372 | 405,017 |
Other current liabilities | -66,007 | -84,860 | -64,652 |
Other liabilities | -136,111 | -149,190 | -83,100 |
Deferred cost liabilities | -202,118 | -234,050 | -147,752 |
Net deferred costs | $295,144 | $294,322 | $257,265 |
Deferred_Costs_Additional_Info
Deferred Costs - Additional Information (Detail) (USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Millions, unless otherwise specified | |||
Deferred Costs [Abstract] | |||
Allowance for deferred costs related to supply agreements | $2.60 | $4.10 | $5.60 |
Other_Liabilities_Additional_I
Other Liabilities - Additional Information (Detail) (WHQ Development [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Nov. 28, 2014 |
WHQ Development [Member] | |
Schedule Of Other Liabilities [Line Items] | |
Anticipated year of completion for new world headquarters building | 2016 |
New World Headquarters construction costs to date | $19 |
Offsetting liability | $19 |
Debt_Summary_of_Debt_Due_Withi
Debt - Summary of Debt Due Within One Year (Detail) (USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Thousands, unless otherwise specified | |||
Debt Disclosure [Line Items] | |||
Debt due within one year | $23,800 | $20,000 | $20,000 |
Term Loan [Member] | |||
Debt Disclosure [Line Items] | |||
Debt due within one year | 20,000 | 20,000 | 20,000 |
Accounts Receivable Facility [Member] | |||
Debt Disclosure [Line Items] | |||
Debt due within one year | $3,800 |
Debt_LongTerm_Debt_Detail
Debt - Long-Term Debt (Detail) (USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Thousands, unless otherwise specified | |||
Debt Disclosure [Line Items] | |||
Term loan, due 2019 | $325,000 | $340,000 | $350,000 |
Revolving credit facility, due 2018 | 48,000 | 4,500 | 77,300 |
Unamortized financing fees | -7,949 | -10,567 | -10,153 |
Long-term debt | 590,232 | 559,114 | 642,328 |
Long-term debt | 590,232 | 559,114 | 642,328 |
Current portion of term loan | -23,800 | -20,000 | -20,000 |
Long-term debt, Non current | 570,232 | 539,114 | 622,328 |
Term Loan [Member] | |||
Debt Disclosure [Line Items] | |||
Current portion of term loan | -20,000 | -20,000 | -20,000 |
7.375% Senior Notes, Due 2021 [Member] | |||
Debt Disclosure [Line Items] | |||
Notes | 225,000 | 225,000 | 225,000 |
6.10% Senior Notes, Due 2028 [Member] | |||
Debt Disclosure [Line Items] | |||
Notes | $181 | $181 | $181 |
Debt_LongTerm_Debt_Parenthetic
Debt - Long-Term Debt (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended | |
Nov. 28, 2014 | Nov. 29, 2013 | Feb. 28, 2014 | |
Term Loan [Member] | |||
Debt Disclosure [Line Items] | |||
Due year | 2019 | 2019 | 2019 |
7.375% Senior Notes, Due 2021 [Member] | |||
Debt Disclosure [Line Items] | |||
Interest rate of debt | 7.38% | 7.38% | 7.38% |
Due year | 2021 | 2021 | 2021 |
Revolving Credit Facility, Due 2018 [Member] | |||
Debt Disclosure [Line Items] | |||
Due year | 2018 | 2018 | 2018 |
6.10% Senior Notes, Due 2028 [Member] | |||
Debt Disclosure [Line Items] | |||
Interest rate of debt | 6.10% | 6.10% | 6.10% |
Due year | 2028 | 2028 | 2028 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 05, 2014 | Nov. 28, 2014 | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 | |
Debt Disclosure [Line Items] | |||||
Letters of credit outstanding | $27,700,000 | 27,700,000 | |||
Carrying value of Corporation's non-publicly traded debt | 325,000,000 | 325,000,000 | 340,000,000 | 350,000,000 | |
Amendment [Member] | |||||
Debt Disclosure [Line Items] | |||||
Credit facility amendment description | (i) reduce the interest rates applicable to the term loan and revolving loans, (ii) eliminate the LIBOR floor interest rate used in the determination of interest charged on Eurodollar revolving loans, (iii) reduce the commitment fee applicable to unused revolving commitments and (iv) reset the usage term of the general restricted payment basket with effect from September 5, 2014. | ||||
Unamortized financing fees written off | 1,900,000 | ||||
Capitalized new fees | 1,100,000 | ||||
Current Portion of Term Loan [Member] | |||||
Debt Disclosure [Line Items] | |||||
Interest on credit facility borrowings | 2.70% | ||||
Revolving Credit Facility [Member] | |||||
Debt Disclosure [Line Items] | |||||
Interest on credit facility borrowings | 2.70% | ||||
Current borrowing capacity | 250,000,000 | 250,000,000 | |||
Accounts Receivable Facility [Member] | |||||
Debt Disclosure [Line Items] | |||||
Interest on credit facility borrowings | 0.60% | ||||
Available financing of receivables | 50,000,000 | 50,000,000 | |||
Publicly Traded [Member] | |||||
Debt Disclosure [Line Items] | |||||
Carrying value of Corporation's publicly traded debt | 225,200,000 | 225,200,000 | 225,200,000 | 225,200,000 | |
Publicly Traded [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Debt Disclosure [Line Items] | |||||
Fair value of Corporation's publicly and non-publicly traded debt | 238,000,000 | 238,000,000 | 234,700,000 | 228,800,000 | |
Non Publicly Traded [Member] | |||||
Debt Disclosure [Line Items] | |||||
Carrying value of Corporation's non-publicly traded debt | 373,000,000 | 373,000,000 | 344,500,000 | 427,300,000 | |
Non Publicly Traded [Member] | Level 2 [Member] | |||||
Debt Disclosure [Line Items] | |||||
Fair value of Corporation's publicly and non-publicly traded debt | $369,600,000 | 369,600,000 | $344,500,000 | $427,300,000 |
Retirement_Benefits_Components
Retirement Benefits - Components of Periodic Benefit Cost for Corporation's Defined Benefit Pension and Postretirement Benefit Plans (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Defined Benefit Pension Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $144 | $315 | $433 | $955 |
Interest cost | 1,833 | 1,766 | 5,516 | 5,244 |
Expected return on plan assets | -1,617 | -1,577 | -4,868 | -4,718 |
Amortization of prior service cost (credit) | 582 | 68 | 584 | 170 |
Amortization of actuarial loss (gain) | 710 | 871 | 2,136 | 2,701 |
Defined benefit plan, net periodic benefit cost, total | 1,652 | 1,443 | 3,801 | 4,352 |
Postretirement Benefits Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 76 | 48 | 276 | 323 |
Interest cost | 559 | 572 | 1,909 | 1,797 |
Expected return on plan assets | -762 | -775 | -2,162 | -2,300 |
Amortization of prior service cost (credit) | -328 | -327 | -978 | -977 |
Amortization of actuarial loss (gain) | -626 | -357 | -1,076 | -782 |
Defined benefit plan, net periodic benefit cost, total | ($1,081) | ($839) | ($2,031) | ($1,939) |
Retirement_Benefits_Additional
Retirement Benefits - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | |||
Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 | Feb. 28, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
Liability for postretirement benefits other than pensions | $20,600,000 | $18,600,000 | $20,600,000 | $18,600,000 | $17,900,000 |
Long-term liability for pension benefits | 74,800,000 | 81,000,000 | 74,800,000 | 81,000,000 | 77,300,000 |
Profit-Sharing Plan [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Corporate contributions to the profit-sharing plan | 7,500,000 | 4,900,000 | |||
401 (k) [Member] | United States [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Corporate contributions to the 401(k) employee contribution plan | $3,600,000 | $4,000,000 | $900,000 | $1,300,000 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) | 9 Months Ended |
Nov. 28, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements description | Assets and liabilities measured at fair value are classified using the fair value hierarchy based upon the transparency of inputs as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. The three levels are defined as follows: b" Level 1 - Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities. b" Level 2 - Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. b" Level 3 - Valuation is based upon unobservable inputs that are significant to the fair value measurement. |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value as of Measurement Date (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Nov. 28, 2014 | Feb. 28, 2014 | Nov. 29, 2013 |
In Thousands, unless otherwise specified | |||
Deferred Compensation Plan Assets [Member] | |||
Assets measured on a recurring basis: | |||
Assets measured on a recurring basis | $12,840 | $12,285 | $12,129 |
Deferred Compensation Plan Liabilities [Member] | |||
Liabilities measured on a recurring basis: | |||
Liabilities measured on a recurring basis | 13,783 | 13,230 | 13,295 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Deferred Compensation Plan Assets [Member] | |||
Assets measured on a recurring basis: | |||
Assets measured on a recurring basis | 10,932 | 10,289 | 8,814 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Deferred Compensation Plan Liabilities [Member] | |||
Liabilities measured on a recurring basis: | |||
Liabilities measured on a recurring basis | 10,932 | 10,289 | 8,814 |
Level 2 [Member] | Deferred Compensation Plan Assets [Member] | |||
Assets measured on a recurring basis: | |||
Assets measured on a recurring basis | 1,908 | 1,996 | 3,315 |
Level 2 [Member] | Deferred Compensation Plan Liabilities [Member] | |||
Liabilities measured on a recurring basis: | |||
Liabilities measured on a recurring basis | $2,851 | $2,941 | $4,481 |
Contingency_Additional_Informa
Contingency - Additional Information (Detail) | 9 Months Ended |
Nov. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies description | In accordance with ASC Topic 450, "Contingencies," the Corporation accrues for these contingencies by a charge to income when it is both probable that one or more future events will occur confirming the fact of a loss and the amount of the loss can be reasonably estimated. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Income Taxes [Line Items] | ||||
Income tax expense benefit computation description | The Corporation's provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against income before income tax expense for the period. In addition, non-recurring or discrete items are recorded during the period in which they occur. | |||
Effective tax rate | 35.70% | 8.60% | 27.60% | 49.10% |
Federal tax refund | $4.10 | |||
Adjustment to valuation allowance attributable to certain net operating loss and foreign tax credit carryforwards | 8 | |||
Unrecognized tax benefits | 21.6 | 21.6 | ||
Income tax expenses affected by unrecognized tax benefits if recognized | 19.1 | 19.1 | ||
Unrecognized tax benefits increased | 2.6 | |||
Decrease in unrecognized tax benefits | 3 | 3 | ||
Unrecognized tax benefits income tax penalties and interest accrued description | The Corporation recognizes interest and penalties accrued on unrecognized tax benefits and refundable income taxes as a component of income tax expense. | |||
Interest and penalties on unrecognized tax benefits and refundable income taxes | 3.8 | |||
Accrued Interest and penalties on unrecognized tax benefit | 0.6 | 0.6 | ||
Open tax years by major tax jurisdiction | The Corporation is subject to examination by the IRS for tax years 2010 to the present and various U.S. state and local jurisdictions for tax years 2001 to the present. The Corporation is also subject to tax examination in various international tax jurisdictions, including Canada, the United Kingdom, Australia, Italy, Mexico and New Zealand for tax years 2006 to the present. | |||
Adjustments for Error Correction [Member] | ||||
Income Taxes [Line Items] | ||||
Reduction in income tax expense | $4.10 |
Related_Party_Information_Addi
Related Party Information - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Mar. 26, 2014 | Nov. 28, 2014 |
acre | ||
Related Party Transaction [Line Items] | ||
Cash dividends paid to parent | $24.20 | |
Senior PIK Toggle Notes [Member] | Century Intermediate Holding Company [Member] | ||
Related Party Transaction [Line Items] | ||
Parent company interest payment funded by dividends paid to parent | 14.3 | |
Aggregate principal amount of an indirect parent company's Senior PIK Toggle notes | 285 | |
Cash interest rate percentage | 9.75% | |
PIK interest rate percentage | 10.50% | |
HL and L Property Company [Member] | Century Intermediate Holding Company [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from sale of assets to affiliated company | 9.9 | |
WHQ Development [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase price of land | 7.4 | |
Area of land purchased | 14.48 | |
Purchase price of land per acre | 510,000 | |
Equity interest held by unconsolidated related party in development project owner | 37.00% | |
Anticipated year of completion for new world headquarters building | 2016 | |
Initial lease term | 15 years | |
Expected annual lease rent | $9.50 |
Business_Segment_Information_A
Business Segment Information - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||
Jul. 31, 2013 | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 | Aug. 29, 2014 | Feb. 28, 2014 | |
Segment Reporting Information [Line Items] | |||||||
Net gain on sale of the AGI In-Store business | ($139,000) | $38,663,000 | |||||
Interest income | 2,517,000 | 29,000 | 2,658,000 | 222,000 | |||
Non-cash loss on disposal of fixed assets | 90,000 | 672,000 | 15,823,000 | 559,000 | |||
Gain related to Party City investment | 3,300,000 | 3,262,000 | |||||
Compensation termination benefits description | Termination benefits are primarily considered part of an ongoing benefit arrangement, accounted for in accordance with ASC Topic 712, "Compensation - Nonretirement Postemployment Benefits," and are recorded when payment of the benefits is probable and can be reasonably estimated. | ||||||
Severance accrual | 4,500,000 | 2,500,000 | 4,500,000 | 2,500,000 | 4,000,000 | ||
Clinton Cards [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 2,500,000 | ||||||
WHQ Location [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Non-cash loss on disposal of fixed assets | 15,500,000 | 15,500,000 | |||||
Unallocated Segment [Member] | Clinton Cards [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Interest income | 2,500,000 | 2,500,000 | |||||
Unallocated Segment [Member] | AGI In-Store [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net gain on sale of the AGI In-Store business | 38,700,000 | ||||||
Unallocated Segment [Member] | WHQ Location [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Non-cash loss on disposal of fixed assets | 2,200,000 | ||||||
Retail Operations [Member] | United Kingdom [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of card and gift retail stores | 415 | 415 | |||||
North American Social Expression Products [Member] | WHQ Location [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Non-cash loss on disposal of fixed assets | 13,300,000 | ||||||
Unallocated Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Non-recurring merger-related transaction costs | 17,400,000 | ||||||
Gain related to Party City investment | $3,300,000 |
Business_Segment_Information_S
Business Segment Information - Schedule of Segment Reporting Information by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 28, 2014 | Nov. 29, 2013 | Nov. 28, 2014 | Nov. 29, 2013 |
Segment Reporting Information [Line Items] | ||||
Total Revenue | $514,058 | $507,516 | $1,450,067 | $1,425,240 |
Segment Earnings (Loss) | 17,522 | 3,615 | 107,465 | 61,843 |
Interest expense | -9,533 | -8,454 | -27,782 | -18,199 |
Intersegment Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | -28,234 | -24,200 | -49,533 | -44,029 |
Segment Earnings (Loss) | -5,362 | -2,297 | -7,102 | -6,022 |
Unallocated Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense | -9,533 | -8,454 | -27,782 | -18,199 |
Profit-sharing plan expense | -2,041 | -407 | -7,509 | -4,872 |
Stock-based compensation expense | -13,596 | |||
Corporate overhead expense | -6,335 | -13,022 | 12,633 | -40,877 |
Unallocated expense, total | -17,909 | -21,883 | -22,658 | -77,544 |
North American Social Expression Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 360,704 | 342,185 | 966,751 | 932,166 |
Segment Earnings (Loss) | 37,613 | 22,894 | 134,807 | 124,286 |
International Social Expression Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 96,424 | 94,639 | 239,914 | 228,812 |
Segment Earnings (Loss) | 8,547 | 8,539 | 12,303 | 13,278 |
International Social Expression Products and Intersegment Items, Net [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 68,190 | 70,439 | 190,381 | 184,783 |
Segment Earnings (Loss) | 3,185 | 6,242 | 5,201 | 7,256 |
Retail Operations [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 64,398 | 64,875 | 213,303 | 202,325 |
Segment Earnings (Loss) | -16,578 | -12,825 | -35,181 | -25,261 |
AG Interactive [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 15,149 | 15,935 | 44,093 | 45,139 |
Segment Earnings (Loss) | 6,131 | 3,477 | 17,507 | 9,955 |
Non-Reportable Segments [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 5,617 | 14,082 | 35,539 | 60,827 |
Segment Earnings (Loss) | $5,080 | $5,710 | $7,789 | $23,151 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], Character Property Rights [Member], USD $) | 0 Months Ended |
Dec. 18, 2014 | |
Subsequent Event [Member] | Character Property Rights [Member] | |
Subsequent Event [Line Items] | |
Purchase these Character Property Rights | $37,700,000 |
Additional consideration payable for resale of property rights | $4,000,000 |