AMERICAN GREETINGS CORP

CIK:0000005133|SEC Filings

Consolidated Statement of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 25, 2016	Nov. 27, 2015	Nov. 25, 2016	Nov. 27, 2015
Income Statement [Abstract]
Net sales	$ 442,699	$ 480,700	$ 1,254,634	$ 1,371,203
Other revenue	3,193	3,331	7,579	7,299
Total revenue	445,892	484,031	1,262,213	1,378,502
Material, labor and other production costs	218,887	238,496	557,001	611,955
Selling, distribution and marketing expenses	154,496	169,001	450,085	486,401
Administrative and general expenses	57,470	59,443	177,285	177,029
Other operating income - net	(4,060)	(481)	(7,691)	(70,210)
Operating income	19,099	17,572	85,533	173,327
Interest expense	8,524	6,467	20,061	21,066
Interest income	(57)	(64)	(392)	(247)
Other non-operating expense - net	2,421	1,609	3,131	617
Income before income tax expense	8,211	9,560	62,733	151,891
Income tax expense	2,136	3,010	19,884	48,097
Net income	$ 6,075	$ 6,550	$ 42,849	$ 103,794

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Nov. 25, 2016	Nov. 27, 2015
OPERATING ACTIVITIES:
Net income	$ 42,849	$ 103,794
Adjustments to reconcile net income to cash flows from operating activities:
Contract asset recovery		(853)
Net (gain) loss on disposal of fixed assets	(2,487)	108
Depreciation and intangible assets amortization	38,594	42,047
Provision for doubtful accounts	289	680
Deferred income taxes	29,313	9,736
Other non-cash charges	2,928	4,483
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Trade accounts receivable	(73,907)	(86,815)
Inventories	(58,325)	(34,275)
Other current assets	(5,082)	1,049
Net payable/receivable with related parties	8,980	8,289
Income taxes	17,354	(17,179)
Deferred costs - net	28,756	17,547
Accounts payable and other liabilities	(72,618)	(73,941)
Other - net	721	(4,469)
Total Cash Flows From Operating Activities	(77,343)	(89,960)
INVESTING ACTIVITIES:
Property, plant and equipment additions	(62,796)	(55,184)
Cash paid for acquired character property rights		(2,800)
Proceeds from sale of fixed assets	4,631	319
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
Net (lending)/repayments on loans to related parties	(756)	(1,319)
Total Cash Flows From Investing Activities	(58,921)	66,884
FINANCING ACTIVITIES:
Proceeds from revolving line of credit	237,350	441,470
Repayments on revolving line of credit	(181,250)	(353,970)
Repayments on term loan		(65,000)
Repayments on financing lease obligation	(373)
Dividends to shareholder	(13,894)	(20,724)
Total Cash Flows From Financing Activities	41,833	1,776
EFFECT OF EXCHANGE RATE CHANGES ON CASH	298	(1,613)
DECREASE IN CASH AND CASH EQUIVALENTS	(94,133)	(22,913)
Cash and Cash Equivalents at Beginning of Year	100,893	43,327
Cash and Cash Equivalents at End of Period	$ 6,760	20,414
Strawberry Shortcake [Member]
Adjustments to reconcile net income to cash flows from operating activities:
Adjustments to gain on sale of business		(61,234)
AGI In-Store [Member]
Adjustments to reconcile net income to cash flows from operating activities:
Adjustments to gain on sale of business		$ 1,073

Consolidated Statement of Financial Position - USD ($) $ in Thousands	Nov. 25, 2016	Feb. 29, 2016	Nov. 27, 2015
Current assets
Cash and cash equivalents	$ 6,760	$ 100,893	$ 20,414
Trade accounts receivable, net	167,010	94,392	186,433
Inventories	276,007	227,456	279,520
Deferred and refundable income taxes	6,724	8,056	46,077
Prepaid expenses and other	136,637	129,071	140,676
Total current assets	593,138	559,868	673,120
Other assets	485,972	473,100	503,729
Deferred and refundable income taxes	71,258	99,512	66,575
Property, plant and equipment - at cost	994,499	945,059	909,086
Less accumulated depreciation	487,549	477,349	473,291
Property, plant and equipment - net	506,950	467,710	435,795
Total assets	1,657,318	1,600,190	1,679,219
Current liabilities
Accounts payable	111,226	109,014	114,042
Accrued liabilities	56,152	79,873	78,552
Accrued compensation and benefits	45,976	101,014	76,071
Income taxes payable	2,619	11,151	6,262
Deferred revenue	20,301	26,271	21,391
Other current liabilities	84,860	50,617	75,144
Total current liabilities	321,134	377,940	371,462
Long-term debt	460,514	403,058	494,406
Other liabilities	403,610	379,769	370,703
Deferred income taxes and noncurrent income taxes payable	10,853	10,129	11,856
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	(16,700)	(19,658)	(6,007)
Retained earnings	237,907	208,952	196,799
Total shareholder's equity	461,207	429,294	430,792
Total liabilities and stockholders equity	$ 1,657,318	$ 1,600,190	$ 1,679,219