Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 26, 2016 | Oct. 07, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 26, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AM | |
Entity Registrant Name | AMERICAN GREETINGS CORP | |
Entity Central Index Key | 5,133 | |
Current Fiscal Year End Date | --02-28 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 374,748 | $ 418,611 | $ 811,935 | $ 890,503 |
Other revenue | 2,265 | 2,417 | 4,386 | 3,968 |
Total revenue | 377,013 | 421,028 | 816,321 | 894,471 |
Material, labor and other production costs | 159,214 | 177,985 | 338,114 | 373,459 |
Selling, distribution and marketing expenses | 142,061 | 153,641 | 295,589 | 317,400 |
Administrative and general expenses | 55,797 | 59,365 | 119,815 | 117,586 |
Other operating income - net | (1,741) | (7,309) | (3,631) | (69,729) |
Operating income | 21,682 | 37,346 | 66,434 | 155,755 |
Interest expense | 5,940 | 6,486 | 11,537 | 14,599 |
Interest income | (230) | (84) | (335) | (183) |
Other non-operating expense (income) - net | 698 | (54) | 710 | (992) |
Income before income tax expense | 15,274 | 30,998 | 54,522 | 142,331 |
Income tax expense | 4,970 | 6,518 | 17,748 | 45,087 |
Net income | $ 10,304 | $ 24,480 | $ 36,774 | $ 97,244 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,304 | $ 24,480 | $ 36,774 | $ 97,244 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (12,152) | (2,351) | (5,342) | (4,379) |
Pension and postretirement benefit adjustments | 227 | 505 | 230 | 721 |
Unrealized gain (loss) on equity securities | 8,252 | (10,133) | 16,110 | 34,477 |
Other comprehensive (loss) income, net of tax | (3,673) | (11,979) | 10,998 | 30,819 |
Comprehensive income | $ 6,631 | $ 12,501 | $ 47,772 | $ 128,063 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - USD ($) $ in Thousands | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Current assets | |||
Cash and cash equivalents | $ 25,236 | $ 100,893 | $ 33,501 |
Trade accounts receivable, net | 77,875 | 94,392 | 104,690 |
Inventories | 288,644 | 227,456 | 297,338 |
Deferred and refundable income taxes | 4,782 | 8,056 | 45,082 |
Prepaid expenses and other | 132,907 | 129,071 | 131,635 |
Total current assets | 529,444 | 559,868 | 612,246 |
Other assets | 509,564 | 473,100 | 535,436 |
Deferred and refundable income taxes | 90,268 | 99,512 | 60,897 |
Property, plant and equipment - at cost | 999,723 | 945,059 | 878,035 |
Less accumulated depreciation | 489,355 | 477,349 | 467,304 |
Property, plant and equipment - net | 510,368 | 467,710 | 410,731 |
Total assets | 1,639,644 | 1,600,190 | 1,619,310 |
Current liabilities | |||
Accounts payable | 115,262 | 109,014 | 116,450 |
Accrued liabilities | 51,675 | 79,873 | 69,196 |
Accrued compensation and benefits | 40,024 | 101,014 | 63,301 |
Income taxes payable | 28,684 | 11,151 | 14,398 |
Deferred revenue | 22,235 | 26,271 | 23,044 |
Other current liabilities | 77,908 | 50,617 | 67,850 |
Total current liabilities | 335,788 | 377,940 | 354,239 |
Long-term debt | 418,962 | 403,058 | 458,155 |
Other liabilities | 411,093 | 379,769 | 359,427 |
Deferred income taxes and noncurrent income taxes payable | 10,628 | 10,129 | 10,824 |
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 | (8,660) | (19,658) | 6,416 |
Retained earnings | 231,833 | 208,952 | 190,249 |
Total shareholder's equity | 463,173 | 429,294 | 436,665 |
Total liabilities and stockholders equity | $ 1,639,644 | $ 1,600,190 | $ 1,619,310 |
Consolidated Statement of Fina5
Consolidated Statement of Financial Position (Parenthetical) - $ / shares | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
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 (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 26, 2016 | Aug. 28, 2015 | |
OPERATING ACTIVITIES: | ||
Net income | $ 36,774 | $ 97,244 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Gain on sale of Strawberry Shortcake | (61,625) | |
Net loss on disposal of fixed assets | 28 | 66 |
Depreciation and intangible assets amortization | 25,305 | 28,114 |
Provision for doubtful accounts | 231 | 367 |
Deferred income taxes | 4,469 | 8,076 |
Other non-cash charges | 2,057 | 3,614 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Trade accounts receivable | 17,918 | (3,431) |
Inventories | (65,528) | (49,866) |
Other current assets | (3,416) | (7,193) |
Net payable/receivable with related parties | (754) | (1,698) |
Income taxes | 15,625 | (7,554) |
Deferred costs - net | 17,470 | 19,377 |
Accounts payable and other liabilities | (83,462) | (91,698) |
Other - net | 1,277 | 680 |
Total Cash Flows From Operating Activities | (32,006) | (65,527) |
INVESTING ACTIVITIES: | ||
Property, plant and equipment additions | (46,005) | (31,735) |
Proceeds from sale of fixed assets | 813 | 55 |
Cash paid for acquired character property rights | (2,800) | |
Adjustment to proceeds from sale of AGI In-Store | (3,200) | |
Proceeds from sale of Strawberry Shortcake | 105,000 | |
Proceeds from surrender of corporate-owned life insurance policies | 24,068 | |
Total Cash Flows From Investing Activities | (45,192) | 91,388 |
FINANCING ACTIVITIES: | ||
Proceeds from revolving line of credit | 73,275 | 191,200 |
Repayments on revolving line of credit | (58,275) | (139,500) |
Dividends to shareholder | (13,894) | (20,724) |
Repayments on term loan | (65,000) | |
Total Cash Flows From Financing Activities | 1,106 | (34,024) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 435 | (1,663) |
DECREASE IN CASH AND CASH EQUIVALENTS | (75,657) | (9,826) |
Cash and Cash Equivalents at Beginning of Year | 100,893 | 43,327 |
Cash and Cash Equivalents at End of Period | $ 25,236 | $ 33,501 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Aug. 26, 2016 | |
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. 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, 2016 refers to the year ended February 29, 2016. The Corporation’s subsidiary, AG Retail Cards Limited is consolidated on a one-month lag corresponding with its fiscal year-end of January 28 for 2017. 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 29, 2016, from which the Consolidated Statement of Financial Position at February 29, 2016, presented herein, has been derived. Certain amounts in the prior year financial statements have been reclassified to conform to the 2017 presentation. These reclassifications had no material impact on financial position, earnings or cash flows. The Corporation’s investments in less than majority-owned companies in which it has the ability to exercise significant influence over the operating 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.” The Corporation provides limited credit support to 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. This limited credit support is provided 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 January 2019. 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 August 26, 2016 requiring the use of the Liquidity Guaranty. During the current period, 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 August 26, 2016 includes: • Liquidity Guaranty of Schurman’s indebtedness of $10.0 million; • normal course of business trade and other receivables due from Schurman of $31.3 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 $1.8 million as of August 26, 2016. |
Seasonal Nature of Business
Seasonal Nature of Business | 6 Months Ended |
Aug. 26, 2016 | |
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 Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Aug. 26, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 3 – Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, “Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments.” The objective of ASU 2016-15 is to eliminate the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. For public business entities, ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented, unless deemed impracticable, in which case, prospective application is permitted. The Corporation is currently evaluating the new guidance and has not determined the impact this standards update may have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public business entities, ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using the modified-retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. The Corporation is currently evaluating the new guidance and has not determined the impact this standards update may have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” ASU 2016-02 will require lessees to recognize a right-of-use right-of-use In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. In particular, this ASU requires equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017. The Corporation is currently evaluating the new guidance and has not determined the impact this standards update may have on its consolidated financial statements. In August 2014, the FASB issued ASU No. 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 standards update will impact its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” Subsequent accounting standards updates have been issued which amend and/or clarify the application of ASU 2014-09. The objective of ASU 2014-09, and its related amendments and clarifications, 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 the new guidance 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. More detailed disclosures will also be required to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. For public business entities, the new revenue recognition guidance will be effective for annual and interim reporting periods beginning after December 15, 2017. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2016. The new guidance permits the use of either a retrospective or modified-retrospective transition method. The Corporation is currently evaluating the new guidance and has not determined the impact it may have on its consolidated financial statements, nor the preferred method of adoption. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Aug. 26, 2016 | |
Text Block [Abstract] | |
Acquisitions and Dispositions | Note 4 – Acquisitions and Dispositions Sale of Strawberry Shortcake As reported in its Annual Report on Form 10-K for the year ended February 29, 2016, in March 2015, the Corporation completed the sale of its Strawberry Shortcake property and related intangible assets and licensing agreements (“Strawberry Shortcake”) and received cash proceeds of $105.0 million, which are reflected in “Proceeds from sale of Strawberry Shortcake” within “Investing Activities” on the Consolidated Statement of Cash Flows for the six months ended August 28, 2015. The Corporation also recognized a net gain of $61.6 million from the sale, which is included in “Other operating income – net” on the Consolidated Statement of Income for the six months ended August 28, 2015. Character Property Rights Acquisition As reported in its Annual Report on Form 10-K for the year ended February 29, 2016, in conjunction with and based on the proceeds resulting from the March 2015 sale of Strawberry Shortcake, the Corporation paid an additional $2.8 million for character property rights associated with Strawberry Shortcake, that were previously purchased from a third party during 2015. This payment is included in “Cash paid for acquired character property rights” within “Investing Activities” on the Consolidated Statement of Cash Flows for the six months ended August 28, 2015. Sale of AGI In-Store As reported in its Annual Report on Form 10-K for the year ended February 29, 2016, in March 2015, the Corporation finalized the working capital adjustments related to the 2015 sale of its wholly-owned display fixtures business, AGI In-Store, which resulted in a payment of $3.2 million to the buyer. This payment is included in “Adjustment to proceeds from sale of AGI In-Store” within “Investing Activities” on the Consolidated Statement of Cash Flows for the six months ended August 28, 2015. Surrender of Certain Corporate-Owned Life Insurance Policies As reported in its Annual Report on Form 10-K for the year ended February 29, 2016, in March 2015, in connection with the 2015 surrender of certain corporate-owned life insurance policies, the Corporation received proceeds of $24.1 million that are included in “Proceeds from surrender of corporate-owned life insurance policies” within “Investing Activities” on the Consolidated Statement of Cash Flows for the six months ended August 28, 2015. |
Royalty Revenue and Related Exp
Royalty Revenue and Related Expenses | 6 Months Ended |
Aug. 26, 2016 | |
Text Block [Abstract] | |
Royalty Revenue and Related Expenses | Note 5 – Royalty Revenue and Related Expenses The Corporation has agreements for licensing certain characters and other intellectual property. These license agreements provide for royalty revenue to the Corporation, which is recorded in “Other revenue” on the Consolidated Statement of Income. These license agreements may include the receipt of upfront advances, which are recorded as deferred revenue and earned during the period of the agreement. Revenues and expenses associated with the servicing of these agreements, primarily relating to the licensing activities included in the Non-reportable segment, are summarized as follows: Three Months Ended Six Months Ended (In thousands) August 26, August 28, August 26, August 28, Royalty revenue $ 1,922 $ 1,975 $ 3,684 $ 3,104 Royalty expenses: Material, labor and other production costs $ 702 $ 1,241 $ 1,315 $ 2,175 Selling, distribution and marketing expenses 942 988 1,498 1,691 Administrative and general expenses 212 344 492 711 $ 1,856 $ 2,573 $ 3,305 $ 4,577 |
Other Income and Expense
Other Income and Expense | 6 Months Ended |
Aug. 26, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income and Expense | Note 6 – Other Income and Expense Other Operating Income – Net Three Months Ended Six Months Ended (In thousands) August 26, August 28, August 26, August 28, State tax credits $ (1,050 ) $ (6,541 ) $ (2,100 ) $ (6,541 ) Gain adjustment (gain) on sale of Strawberry Shortcake — 41 — (61,625 ) Loss on asset disposal 31 57 28 66 Miscellaneous (722 ) (866 ) (1,559 ) (1,629 ) Other operating income – net $ (1,741 ) $ (7,309 ) $ (3,631 ) $ (69,729 ) During the three and six months ended August 26, 2016, the Corporation recognized income of $1.1 million and $2.1 million, respectively, from tax credits received from the State of Ohio under certain incentive programs made available to the Corporation in connection with its decision to maintain its world headquarters in the state of Ohio. Tax credits of $6.5 million were recognized in the quarter ended August 28, 2015. During the six months ended August 28, 2015, the Corporation recognized a net gain of $61.6 million from the sale of Strawberry Shortcake, which included a first quarter gain of $61.7 million and an adjustment to the gain in the second quarter of approximately $0.1 million. See Note 4 for further information. Other Non-Operating Expense (Income) – Net Three Months Ended Six Months Ended (In thousands) August 26, August 28, August 26, August 28, Foreign exchange loss (gain) $ 842 $ 111 $ 1,002 $ (673 ) Rental income (142 ) (129 ) (290 ) (281 ) Miscellaneous (2 ) (36 ) (2 ) (38 ) Other non-operating expense (income) – net $ 698 $ (54 ) $ 710 $ (992 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Aug. 26, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Note 7 – Accumulated Other Comprehensive (Loss) Income The changes in accumulated other comprehensive (loss) income are as follows: (In thousands) Foreign Pensions and Unrealized Total Balance at February 29, 2016 $ (13,535 ) $ (26,628 ) $ 20,505 $ (19,658 ) Other comprehensive income (loss) before reclassifications (5,660 ) (222 ) 16,110 10,228 Amounts reclassified from accumulated other comprehensive income (loss) 318 452 — 770 Other comprehensive income (loss), net of tax (5,342 ) 230 16,110 10,998 Balance at August 26, 2016 $ (18,877 ) $ (26,398 ) $ 36,615 $ (8,660 ) The reclassifications out of accumulated other comprehensive (loss) income are as follows: (In thousands) Six Months Ended Pensions and Postretirement Benefits: Amortization of pensions and postretirement benefits items Actuarial losses, net $ (1,043 )(1) Prior service credit, net 347 (1) (696 ) Tax benefit 244 (2) Total, net of tax (452 ) Foreign Currency Translation Adjustments: Loss upon dissolution of business (318 )(3) Total reclassifications $ (770 ) Classification on Consolidated Statement of Income: (1) Administrative and general expenses (2) Income tax expense (3) Other operating income – net |
Customer Allowances and Discoun
Customer Allowances and Discounts | 6 Months Ended |
Aug. 26, 2016 | |
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) August 26, 2016 February 29, 2016 August 28, 2015 Allowance for seasonal sales returns $ 17,707 $ 21,518 $ 16,437 Allowance for outdated products 10,396 8,372 10,109 Allowance for doubtful accounts 1,827 1,628 1,814 Allowance for marketing funds 27,273 26,371 23,495 Allowance for rebates 16,203 24,373 21,465 $ 73,406 $ 82,262 $ 73,320 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 $9.7 million, $16.0 million and $13.9 million as of August 26, 2016, February 29, 2016 and August 28, 2015, respectively. |
Inventories
Inventories | 6 Months Ended |
Aug. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 9 – Inventories (In thousands) August 26, 2016 February 29, 2016 August 28, 2015 Raw materials $ 15,277 $ 13,516 $ 19,861 Work in process 10,410 8,116 12,869 Finished products 336,014 277,480 337,344 361,701 299,112 370,074 Less LIFO reserve 80,860 80,159 81,659 280,841 218,953 288,415 Display materials and factory supplies 7,803 8,503 8,923 $ 288,644 $ 227,456 $ 297,338 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 $65.3 million, $63.5 million and $64.2 million as of August 26, 2016, February 29, 2016 and August 28, 2015, respectively. |
Deferred Costs
Deferred Costs | 6 Months Ended |
Aug. 26, 2016 | |
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) August 26, 2016 February 29, 2016 August 28, 2015 Prepaid expenses and other $ 93,622 $ 92,639 $ 89,305 Other assets 392,139 378,223 411,909 Deferred cost assets 485,761 470,862 501,214 Other current liabilities (74,458 ) (47,142 ) (64,117 ) Other liabilities (152,324 ) (145,856 ) (160,558 ) Deferred cost liabilities (226,782 ) (192,998 ) (224,675 ) Net deferred costs $ 258,979 $ 277,864 $ 276,539 The Corporation maintains an allowance for deferred costs related to supply agreements of $3.2 million, $3.6 million and $3.5 million at August 26, 2016, February 29, 2016 and August 28, 2015, respectively. This allowance is included in “Other assets” on the Consolidated Statement of Financial Position. |
Other Liabilities
Other Liabilities | 6 Months Ended |
Aug. 26, 2016 | |
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 Corporation’s world headquarters. The relocation to the building will be completed in the third quarter of fiscal 2017. H L & L is an indirect affiliate of the Corporation as it is indirectly owned by members of the Weiss Family (as defined in Note 17). 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. The asset included in “Property, plant and equipment – at cost” and corresponding liability included in “Other liabilities” on the Consolidated Statement of Financial Position, was $117.7 million, $94.7 million and $57.4 million as of August 26, 2016, February 29, 2016 and August 28, 2015, respectively. See Note 17 for further information. |
Debt
Debt | 6 Months Ended |
Aug. 26, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 12 – Debt Long-term debt and their related calendar year due dates as of August 26, 2016, February 29, 2016 and August 28, 2015, respectively, were as follows: (In thousands) August 26, 2016 February 29, 2016 August 28, 2015 Term loan, due 2019 $ 185,000 $ 185,000 $ 185,000 7.375% senior notes, due 2021 225,000 225,000 225,000 Revolving credit facility, due 2018 15,000 — 56,000 6.10% senior notes, due 2028 181 181 181 Unamortized financing fees (6,219 ) (7,123 ) (8,026 ) $ 418,962 $ 403,058 $ 458,155 At August 26, 2016, the balances outstanding on the term loan facility and revolving credit facility each bear interest at a rate of approximately 3.0%. The revolving credit facility provides the Corporation with funding of up to $250 million. The Corporation is also a party to an accounts receivable facility that provides funding of up to $50 million, under which there were no borrowings outstanding as of August 26, 2016, February 29, 2016 and August 28, 2015, respectively. Outstanding letters of credit, which reduce the total credit available under the revolving credit and the accounts receivable facilities, totaled $25.9 million at August 26, 2016. On July 27, 2016, 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 July 27, 2018 and (ii) revise the bases upon which fees are assessed under this facility. In March 2015 the Corporation made a voluntary prepayment of $65.0 million on the term loan facility, thereby eliminating all future quarterly installment payments prior to its August 9, 2019 maturity date. During the six months ended August 28, 2015, the Corporation expensed an additional $1.8 million of unamortized financing fees as a result of the prepayment. 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 $235.5 million (at a carrying value of $225.2 million), $229.6 million (at a carrying value of $225.2 million) and $234.1 million (at a carrying value of $225.2 million) at August 26, 2016, February 29, 2016 and August 28, 2015, respectively. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” ASU 2015-03 requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt, similar to the presentation of debt discounts. The Corporation adopted ASU 2015-03 effective March 1, 2016, on a retrospective basis, and accordingly, debt issuance costs of $3.3 million and $3.6 million were reclassified from “Other assets” to “Long-term debt” on the Consolidated Statements of Financial Position at February 29, 2016 and August 28, 2015, 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 $200.0 million (at a principal carrying value of $200.0 million), $185.0 million (at a principal carrying value of $185.0 million), and $240.5 million (at a principal carrying value of $241.0 million) at August 26, 2016, February 29, 2016 and August 28, 2015, respectively. At August 26, 2016, the Corporation was in compliance with the financial covenants under its borrowing agreements. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Aug. 26, 2016 | |
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 Six Months Ended August 26, August 28, August 26, August 28, (In thousands) 2016 2015 2016 2015 Service cost $ 219 $ 159 $ 405 $ 318 Interest cost 1,588 1,550 3,181 3,108 Expected return on plan assets (1,500 ) (1,659 ) (3,028 ) (3,327 ) Amortization of prior service cost 1 1 2 2 Amortization of actuarial loss 904 846 1,777 1,694 $ 1,212 $ 897 $ 2,337 $ 1,795 Postretirement Benefits Plan Three Months Ended Six Months Ended August 26, August 28, August 26, August 28, (In thousands) 2016 2015 2016 2015 Service cost $ 86 $ 125 $ 172 $ 250 Interest cost 527 525 1,055 1,050 Expected return on plan assets (582 ) (675 ) (1,164 ) (1,350 ) Amortization of prior service credit (174 ) (175 ) (349 ) (350 ) Amortization of actuarial gain (367 ) (300 ) (734 ) (600 ) $ (510 ) $ (500 ) $ (1,020 ) $ (1,000 ) As reported in its Annual Report on Form 10-K for the year ended February 29, 2016, prior to January 1, 2016, the Corporation sponsored a discretionary profit-sharing plan with a contributory 401(k) provision covering most of its United States employees. Under this arrangement, the Corporation made separate discretionary profit-sharing and 401(k) matching contributions annually, after fiscal year-end, depending on its financial results. Effective January 1, 2016, the existing profit-sharing and 401(k) retirement savings plan was replaced with a safe harbor 401(k) arrangement. Pursuant to the new arrangement, the matching contributions became non-discretionary, were increased, and are now made throughout the year, rather than on an annual basis. The increased matching contributions effectively replace the Corporation’s discretionary profit-sharing contributions, which were discontinued for fiscal years ending after February 29, 2016. The 401(k) matching contributions for the three and six month periods ended August 26, 2016 were $3.4 million and $8.5 million, respectively, as compared to the combined expense attributable to the profit-sharing and 401(k) matching contributions for the three and six month periods ended August 28, 2015 of $3.0 million and $5.9 million, respectively. At August 26, 2016, February 29, 2016 and August 28, 2015, the liability for postretirement benefits other than pensions was $18.9 million, $17.8 million and $19.2 million, respectively, and is included in “Other liabilities” on the Consolidated Statement of Financial Position. At August 26, 2016, February 29, 2016 and August 28, 2015, the long-term liability for pension benefits was $77.9 million, $80.2 million and $78.6 million, respectively, and is included in “Other liabilities” on the Consolidated Statement of Financial Position. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 26, 2016 | |
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 financial assets and liabilities measured at fair value as of August 26, 2016: (In thousands) August 26, 2016 Level 1 Level 2 Level 3 Assets measured on a recurring basis: Deferred compensation plan assets $ 11,914 $ 10,683 $ 1,231 $ — Investment in equity securities 59,338 59,338 — — $ 71,252 $ 70,021 $ 1,231 $ — Liabilities measured on a recurring basis: Deferred compensation plan liabilities $ 12,935 $ 10,683 $ 2,252 $ — The following table summarizes the assets and liabilities measured at fair value as of February 29, 2016: (In thousands) February 29, 2016 Level 1 Level 2 Level 3 Assets measured on a recurring basis: Deferred compensation plan assets $ 11,158 $ 9,936 $ 1,222 $ — Investment in equity securities 33,230 33,230 — — $ 44,388 $ 43,166 $ 1,222 $ — Liabilities measured on a recurring basis: Deferred compensation plan liabilities $ 12,064 $ 9,936 $ 2,128 $ — The following table summarizes the assets and liabilities measured at fair value as of August 28, 2015: (In thousands) August 28, 2015 Level 1 Level 2 Level 3 Assets measured on a recurring basis: Deferred compensation plan assets $ 11,514 $ 10,236 $ 1,278 $ — Investment in equity securities 56,482 56,482 — — $ 67,996 $ 66,718 $ 1,278 $ — Liabilities measured on a recurring basis: Deferred compensation plan liabilities $ 12,425 $ 10,236 $ 2,189 $ — 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. The investment in equity securities is considered a Level 1 valuation as it is based upon a quoted price in an active market. |
Contingency
Contingency | 6 Months Ended |
Aug. 26, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingency | Note 15 - Contingency The Corporation is presently involved in various judicial, administrative, and regulatory proceedings concerning matters arising in the ordinary course of business, including but not limited to, employment and commercial disputes. 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. This accrual is included in “Accrued liabilities” on the Consolidated Statement of Financial Position. 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 proceedings seek an indeterminate amount of damages. |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 26, 2016 | |
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 32.5% and 32.6% for the three and six months ended August 26, 2016, respectively, and 21.0% and 31.7% for the three and six months ended August 28, 2015, respectively. The lower than U.S. statutory rate for the three and six month periods ended August 26, 2016 is primarily related to the domestic production activities deduction, tax treatment of corporate-owned life insurance and lower tax rates in foreign jurisdictions, partially offset by state income tax rates on U.S. income, net of federal benefit. The lower than statutory rate in the prior period is primarily related to the release of a $4.3 million unrecognized tax benefit due to the issuance of regulations that clarified the law and the expiration of a statute of limitations, as well as the impact of lower tax rates in foreign jurisdictions, domestic production activities deduction and the tax treatment of corporate-owned life insurance. As reported in its Annual Report on Form 10-K for the year ended February 29, 2016, a previously nonmarketable investment established a readily determinable fair value as the result of the investment’s successfully completed initial public offering. Therefore, the Corporation began recording adjustments to mark-to-market the value of this investment. Consequently, a decrease in the Corporation’s deferred tax assets in the amount of $10.0 million and $22.0 million was recognized in other comprehensive income for the six month periods ended August 26, 2016 and August 28, 2015, respectively. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The Corporation early adopted ASU 2015-17 during the fourth quarter of 2016 on a prospective basis. Adoption of ASU 2015-17 resulted in a reclassification of the Corporation’s net current deferred tax asset to the net non-current deferred tax asset in the Corporation’s Consolidated Statement of Financial Position as of February 29, 2016. No prior periods were retrospectively adjusted. As of August 26, 2016, the Corporation had unrecognized tax benefits of $17.1 million that, if recognized, would have a favorable effect on the Corporation’s income tax expense of $15.4 million. It is reasonably possible that the Corporation’s unrecognized tax positions as of August 26, 2016 could decrease $1.4 million during the next twelve months due to the expiration of the statute of limitations. The Corporation recognizes interest and penalties accrued on unrecognized tax benefits and refundable income taxes as a component of income tax expense. During the six months ended August 26, 2016, the Corporation recognized a net expense of $0.2 million for interest and penalties on unrecognized tax benefits and refundable income taxes. As of August 26, 2016, the total amount of gross accrued interest and penalties related to unrecognized tax benefits less refundable income taxes was a net payable of $1.8 million. With few exceptions, the Corporation is subject to examination in the U.S. and various state and local jurisdictions for tax years 2010 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 2011 to the present. |
Related Party Information
Related Party Information | 6 Months Ended |
Aug. 26, 2016 | |
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 $0.5 million). 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, including obligations 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 the Corporation, was reserved to the manager of Crocker Park, LLC. The manager of Crocker Park, LLC is not an affiliate of the Weiss Family, but is an affiliate of Stark Enterprises, Inc. The Corporation is leasing a portion of the Crocker Park Site to H L & L, which is constructing the new world headquarters building on the Crocker Park Site, and beginning in the third quarter of fiscal 2017 will lease the new world headquarters building back to the Corporation. In addition, to accommodate additional office needs, H L & L is constructing an additional approximately 60,000 square foot building (“Tech West” and, together with the world headquarters building, the “Creative Studios Buildings”) adjacent to the world headquarters building and a surface parking lot (“Surface Lot”) on land that it is leasing from the Corporation. The Corporation has also entered into an operating lease to lease the Tech West building and Surface Lot from H L & L, also beginning in the third quarter of fiscal 2017. The initial lease terms are fifteen years and the annual rent is expected to be approximately $10.6 million. See Note 11 for further information. Although the majority of the costs to construct the new world headquarters was financed through H L & L, due to the inherent difficulty in estimating costs associated with projects of this scale and nature, the costs associated with this project may have been higher than expected and the Corporation may have had to dedicate additional funds to the project, including providing additional funds to H L & L. As a result, effective as of December 1, 2014, the Corporation entered into a loan agreement with H L & L under which the Corporation may from time to time make revolving loans to H L & L. Loans made to H L & L under this agreement may only be used to fund construction costs associated with the world headquarters project and the maximum principal and market-rate interest that may be outstanding as of any given time under this loan agreement may not exceed $9.0 million. There were no amounts outstanding under this loan agreement as of August 26, 2016, February 29, 2016 and August 28, 2015. 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. The Corporation paid cash dividends in the aggregate amount of $13.9 million to Century Intermediate Holding Company (“Parent”), its parent and sole shareholder during the six months ended August 26, 2016, for the sole purpose of paying interest on the $285.0 million aggregate principal amount 9.750%/10.500% Senior PIK Toggle Notes due 2019, (the “PIK” notes) which were issued by Century Intermediate Holding Company 2, an indirect parent of the Corporation. The Corporation, Parent and certain of their subsidiaries and affiliates, file a consolidated U.S. federal income tax return. The Corporation pays all taxes on behalf of the group included in this consolidated federal income tax return. Pursuant to this tax sharing arrangement, there was $0.3 million due from affiliates at August 26, 2016 and February 29, 2016 and no amounts due to or due from affiliates as of August 28, 2015. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Aug. 26, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 18 – Business Segment Information The Corporation operates in five business segments: North American Social Expression Products, International Social Expression Products, Retail Operations, AG Interactive and Non-reportable. The North American Social Expression Products segment primarily designs, manufactures and sells greeting cards and other related products through various channels of distribution with mass merchandising as the primary channel. The International Social Expression Products segment primarily designs and sells greeting cards and other related products through various channels of distribution and is located principally in the United Kingdom, Australia and New Zealand. At August 26, 2016, the Retail Operations segment operated 393 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. Three Months Ended Six Months Ended (In thousands) August 26, August 28, August 26, August 28, Total Revenue: North American Social Expression Products $ 270,769 $ 285,556 $ 593,229 $ 621,160 International Social Expression Products 48,296 65,858 98,882 128,026 Intersegment items (11,753 ) (11,286 ) (25,334 ) (21,599 ) Net 36,543 54,572 73,548 106,427 Retail Operations 55,149 65,503 120,561 137,311 AG Interactive 13,112 13,736 26,043 27,166 Non-reportable 1,440 1,661 2,940 2,407 $ 377,013 $ 421,028 $ 816,321 $ 894,471 Three Months Ended Six Months Ended (In thousands) August 26, August 28, August 26, August 28, Segment Earnings (Loss) Before Tax: North American Social Expression Products $ 37,627 $ 46,209 $ 97,772 $ 119,336 International Social Expression Products (1,394 ) (49 ) (2,505 ) (5,059 ) Intersegment items 148 879 (526 ) 1,630 Net (1,246 ) 830 (3,031 ) (3,429 ) Retail Operations (10,693 ) (12,615 ) (18,155 ) (20,758 ) AG Interactive 3,926 5,276 8,134 10,147 Non-reportable (438 ) (934 ) (374 ) 59,413 Unallocated Interest expense (5,940 ) (6,486 ) (11,537 ) (14,599 ) 401(k) match and profit-sharing expense (3,425 ) (3,020 ) (8,486 ) (5,931 ) Corporate overhead expense (4,537 ) 1,738 (9,801 ) (1,848 ) (13,902 ) (7,768 ) (29,824 ) (22,378 ) $ 15,274 $ 30,998 $ 54,522 $ 142,331 “Corporate overhead expense” includes costs associated with corporate operations including, among other costs, senior management, corporate finance, legal, and insurance programs. For the three and six month periods ended August 26, 2016, this includes income recognized from state tax credits of $1.1 million and $2.1 million, respectively, as compared to $6.5 million for both the three and six month periods ended August 28, 2015. See Note 6 for further information. For the six months ended August 28, 2015, Non-reportable segment earnings included a gain of $61.6 million from the sale of Strawberry Shortcake. See Note 4 for further information. 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 $2.6 million, $3.5 million and $2.1 million at August 26, 2016, February 29, 2016 and August 28, 2015, 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Aug. 26, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Consolidation, Policy | The Corporation’s investments in less than majority-owned companies in which it has the ability to exercise significant influence over the operating 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.” |
Recent Accounting Pronouncements | In August 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, “Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments.” The objective of ASU 2016-15 is to eliminate the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. For public business entities, ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented, unless deemed impracticable, in which case, prospective application is permitted. The Corporation is currently evaluating the new guidance and has not determined the impact this standards update may have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. For public business entities, ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and the guidance is to be applied using the modified-retrospective approach. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. The Corporation is currently evaluating the new guidance and has not determined the impact this standards update may have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” ASU 2016-02 will require lessees to recognize a right-of-use right-of-use In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. In particular, this ASU requires equity investments (except those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for interim and annual periods beginning after December 15, 2017. The Corporation is currently evaluating the new guidance and has not determined the impact this standards update may have on its consolidated financial statements. In August 2014, the FASB issued ASU No. 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 standards update will impact its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” Subsequent accounting standards updates have been issued which amend and/or clarify the application of ASU 2014-09. The objective of ASU 2014-09, and its related amendments and clarifications, 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 the new guidance 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. More detailed disclosures will also be required to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. For public business entities, the new revenue recognition guidance will be effective for annual and interim reporting periods beginning after December 15, 2017. Earlier adoption is permitted for annual and interim reporting periods beginning after December 15, 2016. The new guidance permits the use of either a retrospective or modified-retrospective transition method. The Corporation is currently evaluating the new guidance and has not determined the impact it may have on its consolidated financial statements, nor the preferred method of adoption. |
Contingencies, Policy | 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, Policy | 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. |
Termination Benefits, Policy | 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. |
Royalty Revenue and Related E26
Royalty Revenue and Related Expenses (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
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 Six Months Ended (In thousands) August 26, August 28, August 26, August 28, Royalty revenue $ 1,922 $ 1,975 $ 3,684 $ 3,104 Royalty expenses: Material, labor and other production costs $ 702 $ 1,241 $ 1,315 $ 2,175 Selling, distribution and marketing expenses 942 988 1,498 1,691 Administrative and general expenses 212 344 492 711 $ 1,856 $ 2,573 $ 3,305 $ 4,577 |
Other Income and Expense (Table
Other Income and Expense (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
Other Income and Expenses [Abstract] | |
Other Operating Income - Net | Other Operating Income – Net Three Months Ended Six Months Ended (In thousands) August 26, August 28, August 26, August 28, State tax credits $ (1,050 ) $ (6,541 ) $ (2,100 ) $ (6,541 ) Gain adjustment (gain) on sale of Strawberry Shortcake — 41 — (61,625 ) Loss on asset disposal 31 57 28 66 Miscellaneous (722 ) (866 ) (1,559 ) (1,629 ) Other operating income – net $ (1,741 ) $ (7,309 ) $ (3,631 ) $ (69,729 ) |
Other Non-Operating Expense (Income) - Net | Other Non-Operating Expense (Income) – Net Three Months Ended Six Months Ended (In thousands) August 26, August 28, August 26, August 28, Foreign exchange loss (gain) $ 842 $ 111 $ 1,002 $ (673 ) Rental income (142 ) (129 ) (290 ) (281 ) Miscellaneous (2 ) (36 ) (2 ) (38 ) Other non-operating expense (income) – net $ 698 $ (54 ) $ 710 $ (992 ) |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income | The changes in accumulated other comprehensive (loss) income are as follows: (In thousands) Foreign Pensions and Unrealized Total Balance at February 29, 2016 $ (13,535 ) $ (26,628 ) $ 20,505 $ (19,658 ) Other comprehensive income (loss) before reclassifications (5,660 ) (222 ) 16,110 10,228 Amounts reclassified from accumulated other comprehensive income (loss) 318 452 — 770 Other comprehensive income (loss), net of tax (5,342 ) 230 16,110 10,998 Balance at August 26, 2016 $ (18,877 ) $ (26,398 ) $ 36,615 $ (8,660 ) |
Reclassifications Out of Accumulated Other Comprehensive (Loss) Income | The reclassifications out of accumulated other comprehensive (loss) income are as follows: (In thousands) Six Months Ended Pensions and Postretirement Benefits: Amortization of pensions and postretirement benefits items Actuarial losses, net $ (1,043 )(1) Prior service credit, net 347 (1) (696 ) Tax benefit 244 (2) Total, net of tax (452 ) Foreign Currency Translation Adjustments: Loss upon dissolution of business (318 )(3) Total reclassifications $ (770 ) Classification on Consolidated Statement of Income: (1) Administrative and general expenses (2) Income tax expense (3) Other operating income – net |
Customer Allowances and Disco29
Customer Allowances and Discounts (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
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) August 26, 2016 February 29, 2016 August 28, 2015 Allowance for seasonal sales returns $ 17,707 $ 21,518 $ 16,437 Allowance for outdated products 10,396 8,372 10,109 Allowance for doubtful accounts 1,827 1,628 1,814 Allowance for marketing funds 27,273 26,371 23,495 Allowance for rebates 16,203 24,373 21,465 $ 73,406 $ 82,262 $ 73,320 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In thousands) August 26, 2016 February 29, 2016 August 28, 2015 Raw materials $ 15,277 $ 13,516 $ 19,861 Work in process 10,410 8,116 12,869 Finished products 336,014 277,480 337,344 361,701 299,112 370,074 Less LIFO reserve 80,860 80,159 81,659 280,841 218,953 288,415 Display materials and factory supplies 7,803 8,503 8,923 $ 288,644 $ 227,456 $ 297,338 |
Deferred Costs (Tables)
Deferred Costs (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
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) August 26, 2016 February 29, 2016 August 28, 2015 Prepaid expenses and other $ 93,622 $ 92,639 $ 89,305 Other assets 392,139 378,223 411,909 Deferred cost assets 485,761 470,862 501,214 Other current liabilities (74,458 ) (47,142 ) (64,117 ) Other liabilities (152,324 ) (145,856 ) (160,558 ) Deferred cost liabilities (226,782 ) (192,998 ) (224,675 ) Net deferred costs $ 258,979 $ 277,864 $ 276,539 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt and their related calendar year due dates as of August 26, 2016, February 29, 2016 and August 28, 2015, respectively, were as follows: (In thousands) August 26, 2016 February 29, 2016 August 28, 2015 Term loan, due 2019 $ 185,000 $ 185,000 $ 185,000 7.375% senior notes, due 2021 225,000 225,000 225,000 Revolving credit facility, due 2018 15,000 — 56,000 6.10% senior notes, due 2028 181 181 181 Unamortized financing fees (6,219 ) (7,123 ) (8,026 ) $ 418,962 $ 403,058 $ 458,155 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
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 Six Months Ended August 26, August 28, August 26, August 28, (In thousands) 2016 2015 2016 2015 Service cost $ 219 $ 159 $ 405 $ 318 Interest cost 1,588 1,550 3,181 3,108 Expected return on plan assets (1,500 ) (1,659 ) (3,028 ) (3,327 ) Amortization of prior service cost 1 1 2 2 Amortization of actuarial loss 904 846 1,777 1,694 $ 1,212 $ 897 $ 2,337 $ 1,795 Postretirement Benefits Plan Three Months Ended Six Months Ended August 26, August 28, August 26, August 28, (In thousands) 2016 2015 2016 2015 Service cost $ 86 $ 125 $ 172 $ 250 Interest cost 527 525 1,055 1,050 Expected return on plan assets (582 ) (675 ) (1,164 ) (1,350 ) Amortization of prior service credit (174 ) (175 ) (349 ) (350 ) Amortization of actuarial gain (367 ) (300 ) (734 ) (600 ) $ (510 ) $ (500 ) $ (1,020 ) $ (1,000 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value as of Measurement Date | The following table summarizes the financial assets and liabilities measured at fair value as of August 26, 2016: (In thousands) August 26, 2016 Level 1 Level 2 Level 3 Assets measured on a recurring basis: Deferred compensation plan assets $ 11,914 $ 10,683 $ 1,231 $ — Investment in equity securities 59,338 59,338 — — $ 71,252 $ 70,021 $ 1,231 $ — Liabilities measured on a recurring basis: Deferred compensation plan liabilities $ 12,935 $ 10,683 $ 2,252 $ — The following table summarizes the assets and liabilities measured at fair value as of February 29, 2016: (In thousands) February 29, 2016 Level 1 Level 2 Level 3 Assets measured on a recurring basis: Deferred compensation plan assets $ 11,158 $ 9,936 $ 1,222 $ — Investment in equity securities 33,230 33,230 — — $ 44,388 $ 43,166 $ 1,222 $ — Liabilities measured on a recurring basis: Deferred compensation plan liabilities $ 12,064 $ 9,936 $ 2,128 $ — The following table summarizes the assets and liabilities measured at fair value as of August 28, 2015: (In thousands) August 28, 2015 Level 1 Level 2 Level 3 Assets measured on a recurring basis: Deferred compensation plan assets $ 11,514 $ 10,236 $ 1,278 $ — Investment in equity securities 56,482 56,482 — — $ 67,996 $ 66,718 $ 1,278 $ — Liabilities measured on a recurring basis: Deferred compensation plan liabilities $ 12,425 $ 10,236 $ 2,189 $ — |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Aug. 26, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Three Months Ended Six Months Ended (In thousands) August 26, August 28, August 26, August 28, Total Revenue: North American Social Expression Products $ 270,769 $ 285,556 $ 593,229 $ 621,160 International Social Expression Products 48,296 65,858 98,882 128,026 Intersegment items (11,753 ) (11,286 ) (25,334 ) (21,599 ) Net 36,543 54,572 73,548 106,427 Retail Operations 55,149 65,503 120,561 137,311 AG Interactive 13,112 13,736 26,043 27,166 Non-reportable 1,440 1,661 2,940 2,407 $ 377,013 $ 421,028 $ 816,321 $ 894,471 Three Months Ended Six Months Ended (In thousands) August 26, August 28, August 26, August 28, Segment Earnings (Loss) Before Tax: North American Social Expression Products $ 37,627 $ 46,209 $ 97,772 $ 119,336 International Social Expression Products (1,394 ) (49 ) (2,505 ) (5,059 ) Intersegment items 148 879 (526 ) 1,630 Net (1,246 ) 830 (3,031 ) (3,429 ) Retail Operations (10,693 ) (12,615 ) (18,155 ) (20,758 ) AG Interactive 3,926 5,276 8,134 10,147 Non-reportable (438 ) (934 ) (374 ) 59,413 Unallocated Interest expense (5,940 ) (6,486 ) (11,537 ) (14,599 ) 401(k) match and profit-sharing expense (3,425 ) (3,020 ) (8,486 ) (5,931 ) Corporate overhead expense (4,537 ) 1,738 (9,801 ) (1,848 ) (13,902 ) (7,768 ) (29,824 ) (22,378 ) $ 15,274 $ 30,998 $ 54,522 $ 142,331 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - Schurman [Member] | 6 Months Ended |
Aug. 26, 2016USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
End period of liquidity guaranty | 2019-01 |
Guarantee of Indebtedness of Others [Member] | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Number of days after Schurman's lenders commence liquidation of collateral under Senior Credit Facility | 91 days |
Maximum exposure to loss, amount | $ 10,000,000 |
Collectibility of Receivables [Member] | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Maximum exposure to loss, amount | 31,300,000 |
Operating Leases Subleased to Schurman [Member] | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Maximum exposure to loss, amount | $ 1,800,000 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Sale of Strawberry Shortcake) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2015 | Aug. 28, 2015 | May 29, 2015 | Aug. 28, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of Strawberry Shortcake | $ 105,000 | |||
Net gain on sale of Strawberry Shortcake | $ (41) | 61,625 | ||
Strawberry Shortcake [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of Strawberry Shortcake | $ 105,000 | |||
Net gain on sale of Strawberry Shortcake | $ 100 | $ 61,700 | $ 61,600 |
Acquisitions and Dispositions38
Acquisitions and Dispositions (Character Property Rights Acquisition) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Aug. 28, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Purchase of intangible assets | $ 2,800 | |
Character Property Rights [Member] | Strawberry Shortcake [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Purchase of intangible assets | $ 2,800 |
Acquisitions and Dispositions39
Acquisitions and Dispositions (Sale of AGI In-Store) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Aug. 28, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Payment for working capital adjustments | $ 3,200 | |
AGI In-Store [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Payment for working capital adjustments | $ 3,200 |
Acquisitions and Dispositions40
Acquisitions and Dispositions (Surrender of Certain Corporate-Owned Life Insurance Policies) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Aug. 28, 2015 | |
Investments, All Other Investments [Abstract] | ||
Proceeds from surrender of corporate-owned life insurance policies | $ 24,100 | $ 24,068 |
Royalty Revenue and Related E41
Royalty Revenue and Related Expenses - Revenues and Expenses Associated with Servicing of Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Segment Reporting Information [Line Items] | ||||
Material, labor and other production costs | $ 159,214 | $ 177,985 | $ 338,114 | $ 373,459 |
Selling, distribution and marketing expenses | 142,061 | 153,641 | 295,589 | 317,400 |
Administrative and general expenses | 55,797 | 59,365 | 119,815 | 117,586 |
AG Intellectual Properties [Member] | Non-Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Royalty revenue | 1,922 | 1,975 | 3,684 | 3,104 |
Material, labor and other production costs | 702 | 1,241 | 1,315 | 2,175 |
Selling, distribution and marketing expenses | 942 | 988 | 1,498 | 1,691 |
Administrative and general expenses | 212 | 344 | 492 | 711 |
Expenses associated with royalty revenue, Total | $ 1,856 | $ 2,573 | $ 3,305 | $ 4,577 |
Other Income and Expense - Othe
Other Income and Expense - Other Operating Income - Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Other Income and Expenses [Abstract] | ||||
State tax credits | $ (1,050) | $ (6,541) | $ (2,100) | $ (6,541) |
Gain adjustment (gain) on sale of Strawberry Shortcake | 41 | (61,625) | ||
Loss on asset disposal | 31 | 57 | 28 | 66 |
Miscellaneous | (722) | (866) | (1,559) | (1,629) |
Other operating income - net | $ (1,741) | $ (7,309) | $ (3,631) | $ (69,729) |
Other Income and Expense - Addi
Other Income and Expense - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 26, 2016 | Aug. 28, 2015 | May 29, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Other Income And Expense [Line Items] | |||||
State tax credits | $ 1,050 | $ 6,541 | $ 2,100 | $ 6,541 | |
Net gain on sale of disposal group | (41) | 61,625 | |||
Ohio [Member] | |||||
Other Income And Expense [Line Items] | |||||
State tax credits | $ 1,100 | 6,500 | $ 2,100 | 6,500 | |
Strawberry Shortcake [Member] | |||||
Other Income And Expense [Line Items] | |||||
Net gain on sale of disposal group | $ 100 | $ 61,700 | $ 61,600 |
Other Income and Expense - Ot44
Other Income and Expense - Other Non-Operating Expense (Income) - Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange loss (gain) | $ 842 | $ 111 | $ 1,002 | $ (673) |
Rental income | (142) | (129) | (290) | (281) |
Miscellaneous | (2) | (36) | (2) | (38) |
Other non-operating expense (income) - net | $ 698 | $ (54) | $ 710 | $ (992) |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning Balance | $ 429,294 | |||
Other comprehensive (loss) income, net of tax | $ (3,673) | $ (11,979) | 10,998 | $ 30,819 |
Ending Balance | 463,173 | $ 436,665 | 463,173 | $ 436,665 |
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning Balance | (13,535) | |||
Other comprehensive income (loss) before reclassifications | (5,660) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 318 | |||
Other comprehensive (loss) income, net of tax | (5,342) | |||
Ending Balance | (18,877) | (18,877) | ||
Pensions and Postretirement Benefits [Member] | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning Balance | (26,628) | |||
Other comprehensive income (loss) before reclassifications | (222) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 452 | |||
Other comprehensive (loss) income, net of tax | 230 | |||
Ending Balance | (26,398) | (26,398) | ||
Unrealized Investment Gain [Member] | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning Balance | 20,505 | |||
Other comprehensive income (loss) before reclassifications | 16,110 | |||
Other comprehensive (loss) income, net of tax | 16,110 | |||
Ending Balance | 36,615 | 36,615 | ||
Accumulated Other Comprehensive (Loss) Income [Member] | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Beginning Balance | (19,658) | |||
Other comprehensive income (loss) before reclassifications | 10,228 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 770 | |||
Other comprehensive (loss) income, net of tax | 10,998 | |||
Ending Balance | $ (8,660) | $ (8,660) |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive (Loss) Income - Reclassifications Out of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Administrative and general expenses | $ (55,797) | $ (59,365) | $ (119,815) | $ (117,586) |
Income (loss) before income tax benefit (expense) | 15,274 | 30,998 | 54,522 | 142,331 |
Income tax benefit (expense) | (4,970) | (6,518) | (17,748) | (45,087) |
Net income | $ 10,304 | $ 24,480 | 36,774 | $ 97,244 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (770) | |||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Administrative and general expenses | (1,043) | |||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Administrative and general expenses | 347 | |||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Pensions and Postretirement Benefits [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) before income tax benefit (expense) | (696) | |||
Income tax benefit (expense) | 244 | |||
Net income | (452) | |||
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Foreign Currency Translation Adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss upon dissolution of business | $ (318) |
Customer Allowances and Disco47
Customer Allowances and Discounts - Allowances and Discounts Trade Accounts Receivable (Detail) - USD ($) $ in Thousands | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | $ 73,406 | $ 82,262 | $ 73,320 |
Allowance for Seasonal Sales Returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | 17,707 | 21,518 | 16,437 |
Allowance for Outdated Products [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | 10,396 | 8,372 | 10,109 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | 1,827 | 1,628 | 1,814 |
Allowance for Marketing Funds [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | 27,273 | 26,371 | 23,495 |
Allowance for Rebates [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Allowances and discounts on trade accounts receivables | $ 16,203 | $ 24,373 | $ 21,465 |
Customer Allowances and Disco48
Customer Allowances and Discounts - Additional Information (Detail) - USD ($) $ in Millions | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Allowance for Rebates [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Trade allowances and discounts settled in cash | $ 9.7 | $ 16 | $ 13.9 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 15,277 | $ 13,516 | $ 19,861 |
Work in process | 10,410 | 8,116 | 12,869 |
Finished products | 336,014 | 277,480 | 337,344 |
Gross inventory | 361,701 | 299,112 | 370,074 |
Less LIFO reserve | 80,860 | 80,159 | 81,659 |
Inventory net of last in first out reserve | 280,841 | 218,953 | 288,415 |
Display materials and factory supplies | 7,803 | 8,503 | 8,923 |
Net inventory | $ 288,644 | $ 227,456 | $ 297,338 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Inventory Disclosure [Abstract] | |||
Inventory held on location for retailers with scan-based trading arrangements, which is included in finished products | $ 65.3 | $ 63.5 | $ 64.2 |
Deferred Costs - Deferred Costs
Deferred Costs - Deferred Costs and Future Payment Commitments (Detail) - USD ($) $ in Thousands | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Deferred Costs [Abstract] | |||
Prepaid expenses and other | $ 93,622 | $ 92,639 | $ 89,305 |
Other assets | 392,139 | 378,223 | 411,909 |
Deferred cost assets | 485,761 | 470,862 | 501,214 |
Other current liabilities | (74,458) | (47,142) | (64,117) |
Other liabilities | (152,324) | (145,856) | (160,558) |
Deferred cost liabilities | (226,782) | (192,998) | (224,675) |
Net deferred costs | $ 258,979 | $ 277,864 | $ 276,539 |
Deferred Costs - Additional Inf
Deferred Costs - Additional Information (Detail) - USD ($) $ in Millions | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Deferred Costs [Abstract] | |||
Allowance for deferred costs related to supply agreements | $ 3.2 | $ 3.6 | $ 3.5 |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - New World Headquarters [Member] - USD ($) $ in Millions | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Schedule Of Other Liabilities [Line Items] | |||
New World Headquarters construction costs to date | $ 117.7 | $ 94.7 | $ 57.4 |
Construction costs liability to lessor | $ 117.7 | $ 94.7 | $ 57.4 |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Debt Disclosure [Line Items] | |||
Revolving credit facility, due 2018 | $ 15,000 | $ 56,000 | |
Unamortized financing fees | (6,219) | $ (7,123) | (8,026) |
Long-term debt | 418,962 | 403,058 | 458,155 |
Term Loan [Member] | |||
Debt Disclosure [Line Items] | |||
Term loan, due 2019 | 185,000 | 185,000 | 185,000 |
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 - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended | |
Aug. 26, 2016 | Aug. 28, 2015 | Feb. 29, 2016 | |
Term Loan [Member] | |||
Debt Disclosure [Line Items] | |||
Due year | 2,019 | 2,019 | 2,019 |
7.375% Senior Notes, Due 2021 [Member] | |||
Debt Disclosure [Line Items] | |||
Interest rate of debt | 7.375% | 7.375% | 7.375% |
Due year | 2,021 | 2,021 | 2,021 |
Revolving Credit Facility, Due 2018 [Member] | |||
Debt Disclosure [Line Items] | |||
Due year | 2,018 | 2,018 | 2,018 |
6.10% Senior Notes, Due 2028 [Member] | |||
Debt Disclosure [Line Items] | |||
Interest rate of debt | 6.10% | 6.10% | 6.10% |
Due year | 2,028 | 2,028 | 2,028 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Mar. 31, 2015 | Aug. 28, 2015 | Aug. 26, 2016 | Feb. 29, 2016 | |
Debt Disclosure [Line Items] | ||||
Unamortized financing fees written off | $ 1,800 | |||
Debt issuance costs | 8,026 | $ 6,219 | $ 7,123 | |
Term Loan Facility [Member] | ||||
Debt Disclosure [Line Items] | ||||
Interest on credit facility borrowings | 3.00% | |||
Voluntary prepayments on term loan facility | $ 65,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Disclosure [Line Items] | ||||
Interest on credit facility borrowings | 3.00% | |||
Current borrowing capacity | $ 250,000 | |||
Letters of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Amount of letters of credit outstanding under revolving credit facilities | 25,900 | |||
Non Publicly Traded [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Fair value of traded debt | 240,500 | 200,000 | 185,000 | |
Carrying value of Corporation's non-publicly traded debt | 241,000 | 200,000 | 185,000 | |
Accounting Standards Update 2015-03 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt issuance costs | 3,600 | 3,300 | ||
Accounts Receivable Facility [Member] | ||||
Debt Disclosure [Line Items] | ||||
Current borrowing capacity | 50,000 | |||
Publicly Traded [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Debt Disclosure [Line Items] | ||||
Fair value of traded debt | 234,100 | 235,500 | 229,600 | |
Carrying value of Corporation's publicly traded debt | $ 225,200 | $ 225,200 | $ 225,200 |
Retirement Benefits - Component
Retirement Benefits - Components of Periodic Benefit Cost for Corporation's Defined Benefit Pension and Postretirement Benefits Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Defined Benefit Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 219 | $ 159 | $ 405 | $ 318 |
Interest cost | 1,588 | 1,550 | 3,181 | 3,108 |
Expected return on plan assets | (1,500) | (1,659) | (3,028) | (3,327) |
Amortization of prior service cost (credit) | 1 | 1 | 2 | 2 |
Amortization of actuarial loss (gain) | 904 | 846 | 1,777 | 1,694 |
Defined benefit plan, net periodic benefit cost, total | 1,212 | 897 | 2,337 | 1,795 |
Postretirement Benefits Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 86 | 125 | 172 | 250 |
Interest cost | 527 | 525 | 1,055 | 1,050 |
Expected return on plan assets | (582) | (675) | (1,164) | (1,350) |
Amortization of prior service cost (credit) | (174) | (175) | (349) | (350) |
Amortization of actuarial loss (gain) | (367) | (300) | (734) | (600) |
Defined benefit plan, net periodic benefit cost, total | $ (510) | $ (500) | $ (1,020) | $ (1,000) |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | Feb. 29, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
Liability for postretirement benefits other than pensions | $ 18.9 | $ 19.2 | $ 18.9 | $ 19.2 | $ 17.8 |
Long-term liability for pension benefits | 77.9 | 78.6 | 77.9 | 78.6 | $ 80.2 |
Profit-Sharing and Benefit Plan 401 (k) [Member] | United States [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Employer's contributions to a defined contribution retirement plan | $ 3.4 | $ 3 | $ 8.5 | $ 5.9 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value as of Measurement Date (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Assets measured on a recurring basis: | |||
Deferred compensation plan assets | $ 11,914 | $ 11,158 | $ 11,514 |
Investment in equity securities | 59,338 | 33,230 | 56,482 |
Assets measured on a recurring basis | 71,252 | 44,388 | 67,996 |
Liabilities measured on a recurring basis: | |||
Deferred compensation plan liabilities | 12,935 | 12,064 | 12,425 |
Fair Value, Inputs, Level 1 [Member] | |||
Assets measured on a recurring basis: | |||
Deferred compensation plan assets | 10,683 | 9,936 | 10,236 |
Investment in equity securities | 59,338 | 33,230 | 56,482 |
Assets measured on a recurring basis | 70,021 | 43,166 | 66,718 |
Liabilities measured on a recurring basis: | |||
Deferred compensation plan liabilities | 10,683 | 9,936 | 10,236 |
Fair Value, Inputs, Level 2 [Member] | |||
Assets measured on a recurring basis: | |||
Deferred compensation plan assets | 1,231 | 1,222 | 1,278 |
Assets measured on a recurring basis | 1,231 | 1,222 | 1,278 |
Liabilities measured on a recurring basis: | |||
Deferred compensation plan liabilities | $ 2,252 | $ 2,128 | $ 2,189 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 32.50% | 21.00% | 32.60% | 31.70% |
Unrecognized tax benefit due to the issuance of regulations that clarified the law and the expiration of statute | $ 4.3 | $ 4.3 | ||
Tax on unrealized investment gains (losses) accounted for in other comprehensive income | $ 10 | $ 22 | ||
Unrecognized tax benefits | $ 17.1 | 17.1 | ||
Effect on income tax expense if unrecognized tax benefits are recognized | 15.4 | 15.4 | ||
Decrease in unrecognized tax benefits | 1.4 | 1.4 | ||
Accrued Interest and penalties on unrecognized tax benefit | $ 1.8 | 1.8 | ||
Net expense for Interest and penalties on unrecognized tax benefits and refundable income taxes | $ 0.2 |
Related Party Information (Worl
Related Party Information (World Headquarters Relocation) - Additional Information (Detail) - WHQ Development [Member] | Mar. 26, 2014USD ($)a | Aug. 26, 2016USD ($)ft² | Feb. 29, 2016USD ($) | Aug. 28, 2015USD ($) |
Related Party Transaction [Line Items] | ||||
Purchase price of land | $ 7,400,000 | |||
Area of land purchased | a | 14.48 | |||
Purchase price of land per acre | $ 500,000 | |||
Equity interest held by unconsolidated related party in development project owner | 37.00% | |||
Additional square feet building leased | ft² | 60,000 | |||
Initial lease term | 15 years | |||
Annual lease rent | $ 10,600,000 | |||
Construction Loans [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revolving loan agreement, amount outstanding | 0 | $ 0 | $ 0 | |
Maximum [Member] | Construction Loans [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revolving loan agreement, maximum funding commitment | $ 9,000,000 |
Related Party Information (Tran
Related Party Information (Transactions with Parent Companies and Other Affiliated Companies) - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Feb. 29, 2016 | |
Related Party Transaction [Line Items] | |||
Cash dividends paid to parent | $ 13,894,000 | $ 20,724,000 | |
Century Intermediate Holding Company [Member] | |||
Related Party Transaction [Line Items] | |||
Tax sharing arrangement, net amounts due from affiliates | 300,000 | 0 | $ 300,000 |
Tax sharing arrangement, net amounts due to affiliates | $ 0 | ||
Century Intermediate Holding Company [Member] | Senior Payment In Kind Toggle Notes [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate principal amount of an indirect parent company's Senior PIK Toggle notes | $ 285,000,000 | ||
Cash interest rate percentage | 9.75% | ||
PIK interest rate percentage | 10.50% | ||
Cash dividends paid to parent | $ 13,900,000 | ||
Due year | 2,019 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 26, 2016USD ($)Store | Aug. 28, 2015USD ($) | May 29, 2015USD ($) | Aug. 26, 2016USD ($)StoreSegments | Aug. 28, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of business segments | Segments | 5 | ||||
State tax credits | $ 1,050 | $ 6,541 | $ 2,100 | $ 6,541 | |
Net gain on sale of disposal group | (41) | 61,625 | |||
Strawberry Shortcake [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net gain on sale of disposal group | 100 | $ 61,700 | 61,600 | ||
Ohio [Member] | |||||
Segment Reporting Information [Line Items] | |||||
State tax credits | $ 1,100 | $ 6,500 | $ 2,100 | $ 6,500 | |
Retail Operations [Member] | United Kingdom [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Number of card and gift retail stores | Store | 393 | 393 |
Business Segment Information 64
Business Segment Information - Schedule of Segment Reporting Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 26, 2016 | Aug. 28, 2015 | Aug. 26, 2016 | Aug. 28, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total Revenue | $ 377,013 | $ 421,028 | $ 816,321 | $ 894,471 |
Segment Earnings (Loss) before Tax | 15,274 | 30,998 | 54,522 | 142,331 |
Interest expense | (5,940) | (6,486) | (11,537) | (14,599) |
Intersegment Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | (11,753) | (11,286) | (25,334) | (21,599) |
Segment Earnings (Loss) before Tax | 148 | 879 | (526) | 1,630 |
Unallocated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense | (5,940) | (6,486) | (11,537) | (14,599) |
401(k) match and profit-sharing expense | (3,425) | (3,020) | (8,486) | (5,931) |
Corporate overhead expense | (4,537) | 1,738 | (9,801) | (1,848) |
Unallocated expense, total | (13,902) | (7,768) | (29,824) | (22,378) |
North American Social Expression Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 270,769 | 285,556 | 593,229 | 621,160 |
Segment Earnings (Loss) before Tax | 37,627 | 46,209 | 97,772 | 119,336 |
International Social Expression Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 48,296 | 65,858 | 98,882 | 128,026 |
Segment Earnings (Loss) before Tax | (1,394) | (49) | (2,505) | (5,059) |
International Social Expression Products and Intersegment Items, Net [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 36,543 | 54,572 | 73,548 | 106,427 |
Segment Earnings (Loss) before Tax | (1,246) | 830 | (3,031) | (3,429) |
Retail Operations [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 55,149 | 65,503 | 120,561 | 137,311 |
Segment Earnings (Loss) before Tax | (10,693) | (12,615) | (18,155) | (20,758) |
AG Interactive [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 13,112 | 13,736 | 26,043 | 27,166 |
Segment Earnings (Loss) before Tax | 3,926 | 5,276 | 8,134 | 10,147 |
Non-Reportable Segment [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 1,440 | 1,661 | 2,940 | 2,407 |
Segment Earnings (Loss) before Tax | $ (438) | $ (934) | $ (374) | $ 59,413 |
Business Segment Information 65
Business Segment Information (Termination Benefits ) - Additional Information (Detail) - USD ($) $ in Millions | Aug. 26, 2016 | Feb. 29, 2016 | Aug. 28, 2015 |
Segment Reporting [Abstract] | |||
Severance accrual | $ 2.6 | $ 3.5 | $ 2.1 |