10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 28, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 1-13859

AMERICAN GREETINGS CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	34-0065325
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One American Road, Cleveland, Ohio	44144
(Address of principal executive offices)	(Zip Code)

(216) 252-7300

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ¨    No  x

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

All of the outstanding capital stock of the registrant is held by Century Intermediate Holding Company. As of January 9, 2015, 100 shares of the registrant’s common stock, par value $0.01 per share, were outstanding.

AMERICAN GREETINGS CORPORATION

INDEX

			Page Number
PART I - FINANCIAL INFORMATION
	Item 1.	Financial Statements		3
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		33
	Item 4.	Controls and Procedures		34
PART II - OTHER INFORMATION
	Item 1.	Legal Proceedings		36
	Item 6.	Exhibits		37
SIGNATURES				38
EXHIBITS

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

AMERICAN GREETINGS CORPORATION

CONSOLIDATED STATEMENT OF INCOME

(Thousands of dollars)

	(Unaudited)
	Three Months Ended						Nine Months Ended
	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Net sales	$	508,006		$	502,107		$	1,432,370		$	1,406,319
Other revenue		6,052			5,409			17,697			18,921
Total revenue		514,058			507,516			1,450,067			1,425,240
Material, labor and other production costs		249,518			244,829			630,413			625,340
Selling, distribution and marketing expenses		175,039			177,154			513,132			502,500
Administrative and general expenses		64,829			74,814			200,974			228,578
Other operating income – net		(699	)		(2,368	)		(26,495	)		(6,647	)
Operating income		25,371			13,087			132,043			75,469
Interest expense		9,533			8,454			27,782			18,199
Interest income		(2,517	)		(29	)		(2,658	)		(222	)
Other non-operating expense (income) – net		833			1,047			(546	)		(4,351	)
Income before income tax expense		17,522			3,615			107,465			61,843
Income tax expense		6,261			310			29,625			30,366
Net income	$	11,261		$	3,305		$	77,840		$	31,477

See notes to consolidated financial statements (unaudited).

3

AMERICAN GREETINGS CORPORATION

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

	(Unaudited)
	Three Months Ended					Nine Months Ended
	November 28, 2014			November 29, 2013		November 28, 2014			November 29, 2013
Net income	$	11,261		$	3,305	$	77,840		$	31,477
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(15,662	)		9,996		(15,917	)		8,336
Pension and postretirement benefit adjustments		173			192		287			1,009
Unrealized loss on securities		—			—		—			(4	)
Other comprehensive (loss) income, net of tax		(15,489	)		10,188		(15,630	)		9,341
Comprehensive (loss) income	$	(4,228	)	$	13,493	$	62,210		$	40,818

See notes to consolidated financial statements (unaudited).

4

AMERICAN GREETINGS CORPORATION

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Thousands of dollars except share and per share amounts)

	(Unaudited)			(Note 1)		(Unaudited)
	November 28, 2014			February 28, 2014		November 29, 2013
ASSETS
Current assets
Cash and cash equivalents	$	31,431		$	63,963	$	15,775
Trade accounts receivable, net		173,691			97,925		201,392
Inventories		286,190			254,761		291,372
Deferred and refundable income taxes		46,247			46,996		47,252
Prepaid expenses and other		144,086			146,164		151,277
Total current assets		681,645			609,809		707,068
Other assets		501,392			542,766		421,326
Deferred and refundable income taxes		91,905			74,103		98,646
Property, plant and equipment – at cost		810,526			855,141		848,233
Less accumulated depreciation		443,761			479,376		468,015
Property, plant and equipment – net		366,765			375,765		380,218
	$	1,641,707		$	1,602,443	$	1,607,258
LIABILITIES AND SHAREHOLDER’S EQUITY
Current liabilities
Debt due within one year	$	23,800		$	20,000	$	20,000
Accounts payable		122,637			120,568		124,163
Accrued liabilities		60,125			68,838		64,792
Accrued compensation and benefits		63,596			74,017		63,910
Income taxes payable		21,835			14,866		2,745
Deferred revenue		22,961			31,288		25,438
Other current liabilities		67,450			85,785		68,408
Total current liabilities		382,404			415,362		369,456
Long-term debt		570,232			539,114		622,328
Other liabilities		311,265			301,815		231,585
Deferred income taxes and noncurrent income taxes payable		12,303			18,705		19,921
Shareholder’s equity
Common shares – par value $.01 per share:
100 shares issued and outstanding		—			—		—
Capital in excess of par value		240,000			240,000		240,000
Accumulated other comprehensive (loss) income		(14,878	)		752		(7,792	)
Retained earnings		140,381			86,695		131,760
Total shareholder’s equity		365,503			327,447		363,968
	$	1,641,707		$	1,602,443	$	1,607,258

See notes to consolidated financial statements (unaudited).

5

AMERICAN GREETINGS CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS

(Thousands of dollars)

	(Unaudited)
	Nine Months Ended
	November 28, 2014			November 29, 2013
OPERATING ACTIVITIES:
Net income	$	77,840		$	31,477
Adjustments to reconcile net income to cash flows from operating activities:
Stock-based compensation		—			8,091
Net gain on sale of AGI In-Store		(38,663	)		—
Net loss on disposal of fixed assets		15,823			559
Depreciation and intangible assets amortization		45,581			40,450
Clinton Cards secured debt recovery		(3,390	)		(4,232	)
Interest on Clinton Cards secured debt		(2,507	)		—
Provision for doubtful accounts		767			513
Deferred income taxes		(15,716	)		10,988
Gain related to Party City investment		—			(3,262	)
Other non-cash charges		5,039			2,090
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Trade accounts receivable		(83,981	)		(94,636	)
Inventories		(57,791	)		(43,588	)
Other current assets		(185	)		14,817
Receivable from parent and related parties		95			—
Income taxes		886			6,465
Deferred costs – net		(1,376	)		15,021
Accounts payable and other liabilities		(23,688	)		(21,935	)
Other – net		4,216			4,052
Total Cash Flows From Operating Activities		(77,050	)		(33,130	)
INVESTING ACTIVITIES:
Property, plant and equipment additions		(70,263	)		(45,336	)
Proceeds from sale of fixed assets		23,811			1,630
Proceeds from sale of AGI In-Store		73,659			—
Proceeds from Clinton Cards administration		11,926			4,982
Proceeds related to Party City investment		—			12,105
Total Cash Flows From Investing Activities		39,133			(26,619	)
FINANCING ACTIVITIES:
Proceeds from revolving lines of credit		347,200			311,336
Repayments on revolving lines of credit		(299,900	)		(295,236	)
Proceeds from term loan		—			339,250
Repayments on term loan		(15,000	)		—
Issuance, exercise or settlement of share-based payment awards		—			(4,487	)
Tax benefit from share-based payment awards		—			279
Contribution from parent		—			240,000
Payments to shareholders to effect merger		—			(568,303	)
Dividends to shareholders		(24,154	)		(27,809	)
Financing fees		(1,065	)		(6,545	)
Total Cash Flows From Financing Activities		7,081			(11,515	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(1,696	)		980
DECREASE IN CASH AND CASH EQUIVALENTS		(32,532	)		(70,284	)
Cash and Cash Equivalents at Beginning of Year		63,963			86,059
Cash and Cash Equivalents at End of Period	$	31,431		$	15,775

See notes to consolidated financial statements (unaudited).

6

AMERICAN GREETINGS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Three and Nine Months Ended November 28, 2014 and November 29, 2013

Note 1 – Basis of Presentation

The accompanying unaudited consolidated financial statements of American Greetings Corporation and its subsidiaries (the “Corporation”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present financial position, results of operations and cash flows for the periods have been included. On August 9, 2013, the Corporation completed a merger whereby the Corporation was acquired by Century Intermediate Holding Company, a company that was formed by the Chairman of the Board, the Co-Chief Executive Officers of the Corporation and certain other members of the Weiss family and related entities (the “Merger”). As a result of the Merger, the Corporation’s equity is no longer publicly traded. As such, earnings per share information is not required.

The Corporation’s fiscal year ends on February 28 or 29. References to a particular year refer to the fiscal year ending in February of that year. For example, 2014 refers to the year ended February 28, 2014. The Corporation’s subsidiary, AG Retail Cards Limited is consolidated on a one-month lag corresponding with its fiscal year-end of January 31 for 2015.

These interim financial statements should be read in conjunction with the Corporation’s financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended February 28, 2014, from which the Consolidated Statement of Financial Position at February 28, 2014, presented herein, has been derived.

The Corporation’s investments in less than majority-owned companies in which it has the ability to exercise significant influence over the operation and financial policies are accounted for using the equity method except when they qualify as variable interest entities (“VIE”) and the Corporation is the primary beneficiary, in which case, the investments are consolidated in accordance with Accounting Standards Codification (“ASC”) Topic 810 (“ASC 810”), “Consolidation.” Investments that do not meet the above criteria are accounted for under the cost method.

Prior to the fourth quarter of 2014, the Corporation held an approximate 15% equity interest in Schurman Fine Papers (“Schurman”) which is a VIE as defined in ASC 810. Schurman owns and operates specialty card and gift retail stores in the United States and Canada. The stores are primarily located in malls and strip shopping centers. During the third quarter of 2014, the Corporation determined that, due to continued operating losses, shareholders’ deficit and lack of return on the Corporation’s investment, the cost method investment was permanently impaired. As a result, the Corporation recorded an impairment charge in the amount of $1.9 million which reduced the carrying amount of the investment to zero. In addition, during the fourth quarter of 2014, in order to mitigate ongoing risks to the Corporation that may arise from retaining an equity interest in Schurman, the Corporation transferred to Schurman its 15% equity interest and, as a result, no longer has an equity interest in Schurman.

The Corporation provides Schurman limited credit support through the provision of a liquidity guaranty (“Liquidity Guaranty”) in favor of the lenders under Schurman’s senior revolving credit facility (the “Senior Credit Facility”). Pursuant to the terms of the Liquidity Guaranty, the Corporation has guaranteed the repayment of up to $10.0 million of Schurman’s borrowings under the Senior Credit Facility to help ensure that Schurman has sufficient borrowing availability under this facility. The Liquidity Guaranty is required to be backed by a letter of credit for the term of the Liquidity Guaranty, which expires in July 2016. The Corporation’s obligations under the Liquidity Guaranty generally may not be triggered unless Schurman’s lenders under its Senior Credit Facility have substantially completed the liquidation of the collateral under Schurman’s Senior Credit Facility, or 91 days after the liquidation is started, whichever is earlier, and will be limited to the deficiency, if any, between the amount owed and the amount collected in connection with the liquidation. There was no triggering event or liquidation of collateral as of November 28, 2014 requiring the use of the Liquidity Guaranty.

7

During the current quarter, the Corporation assessed the variable interests in Schurman and determined that a third party holder of variable interests has the controlling financial interest in the VIE and thus, the third party, not the Corporation, is the primary beneficiary. In completing this assessment, the Corporation identified the activities that it considers most significant to the future economic success of the VIE and determined that it does not have the power to direct those activities. As such, Schurman is not consolidated in the Corporation’s results. The Corporation’s maximum exposure to loss as it relates to Schurman as of November 28, 2014 includes:

• Liquidity Guaranty of Schurman’s indebtedness of $10.0 million;

• normal course of business trade and other receivables due from Schurman of $33.8 million, the balance of which fluctuates throughout the year due to the seasonal nature of the business; and

• the retail store operating leases currently subleased to Schurman, the aggregate lease payments for the remaining life of which was $5.1 million, $7.1 million and $8.5 million as of November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

Correction of Immaterial Errors

During the first quarter of 2015, the Corporation identified and corrected errors in the accounting for income taxes that related to the year ended February 28, 2014. These errors primarily related to the Corporation’s failure to consider all sources of available taxable income when assessing the need for a valuation allowance against certain deferred tax assets and the recognition of a liability for an uncertain tax position. These errors were the result of the significant complexity created as a result of the Merger and related transactions. The impact of correcting these items had a non-cash effect, decreasing tax expense and increasing net income by $4.1 million. Based on its evaluation as discussed more fully below, the Corporation concluded that the corrections to the financial statements were immaterial to its financial results for the year ended February 28, 2014 and its expected financial results for the year ending February 28, 2015.

In accordance with ASC Topic 250, Accounting Changes and Error Corrections, the Corporation evaluated the effects of the errors on its financial statements for the year ended February 28, 2014 and the expected full year financial results for the year ending February 28, 2015 and concluded that the results of operations for these periods are not materially misstated. In reaching its conclusion, the Corporation considered numerous qualitative and quantitative factors, including but not limited to the following:

• In evaluating the financial and operational performance, the Corporation’s shareholder and debt holders focus on performance metrics such as earnings before interest, taxes, depreciation and amortization (“EBITDA”), operating income and cash flows from operations, none of which were impacted by the correction of the errors,

• The numeric impact of the error on the Corporation’s results of operations, including the net dollar impact, the impact as a percentage of period earnings, the impact on financial trends, and the impact on non-GAAP measures such as adjusted operating income the Corporation presents in quarterly public debt holder conference calls, which were deemed immaterial, particularly in light of the Corporation’s stakeholders’ focus on EBITDA, operating income and cash flows from operations, and

• The absence of any impact on the Corporation’s compliance with its debt covenants, management compensation or segment reporting.

Based on its evaluation, the Corporation concluded that it is not probable that the judgment of a reasonable person relying on the financial statements would have been changed or influenced by the error or correction of the error.

8

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.

Note 3 – Recent Accounting Pronouncements

In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Corporation does not expect that the adoption of this standard will have a material effect on its financial statements.

In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers”. The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 for public companies. Early adoption is not permitted. The standard permits the use of either a retrospective or modified retrospective (cumulative effect) transition method. The Corporation is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements nor decided upon the method of adoption.

In April 2014, the FASB issued ASU No. 2014-08 (“ASU 2014-08”), “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the new guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results and is disposed of or classified as held for sale. The standard also introduces several new disclosures. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. ASU 2014-08 is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. The Corporation adopted ASU 2014-08 on August 29, 2014 in connection with the disposition of A.G. Industries, Inc. See Note 4 for further information.

In July 2013, the FASB issued ASU No. 2013-11 (“ASU 2013-11”), “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. ASU 2013-11 is effective for annual and interim periods beginning after December 15, 2013 for public companies, with early adoption permitted. The Corporation adopted ASU 2013-11 on March 1, 2014.

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Note 4 – Dispositions

On July 1, 2014, the Corporation sold its current world headquarters location and entered into an operating lease arrangement with the new owner of the building. The Corporation expects to remain in this current location until the completion of the new world headquarters, which the Corporation anticipates will occur in calendar year 2016. Net of transaction costs, the Corporation received $13.5 million cash from the sale, and recorded a non-cash loss on disposal of $15.5 million in the Corporation’s second fiscal quarter, which loss is included in “Other operating income – net” on the Consolidated Statement of Income.

On August 29, 2014, the Corporation completed the sale of its wholly-owned display fixtures business, A.G. Industries, Inc. (dba AGI In-Store “AGI In-Store”), to Rock-Tenn Company for $73.7 million in cash, subject to closing date working capital adjustments. A net gain of $38.7 million has been recognized from the sale during the nine month period ended November 28, 2014 and is included in “Other operating income – net” on the Consolidated Statement of Income. AGI In-Store, which is included in the non-reportable segment, had operating income of $0.1 million for the current fiscal year through the date of sale ($18.6 million of operating income for the nine month period ended November 29, 2013).

Note 5 – Royalty Revenue and Related Expenses

The Corporation has agreements for licensing the Care Bears and Strawberry Shortcake characters and other intellectual property. These license agreements provide for royalty revenue to the Corporation, which is recorded in “Other revenue” on the Consolidated Statement of Income. These license agreements may include the receipt of upfront advances, which are recorded as deferred revenue and earned during the period of the agreement. Revenues and expenses associated with the servicing of these agreements, primarily relating to the licensing activities included in the non-reportable segment, are summarized as follows:

	Three Months Ended					Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013		November 28, 2014		November 29, 2013
Royalty revenue	$	5,666		$	5,046	$	16,527	$	17,964
Royalty expenses
Material, labor and other production (credit) costs	$	(1,527	)	$	1,954	$	1,508	$	5,453
Selling, distribution and marketing expenses		1,562			1,431		4,837		4,615
Administrative and general expenses		447			421		1,228		1,322
	$	482		$	3,806	$	7,573	$	11,390

Note 6 – Other Income and Expense

Other Operating Income – Net

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Gain adjustment (gain) on sale of AGI In-Store	$	139		$	—		$	(38,663	)	$	—
Clinton Cards secured debt recovery		—			(1,804	)		(3,390	)		(4,232	)
Loss on asset disposal		90			672			15,823			559
Miscellaneous		(928	)		(1,236	)		(265	)		(2,974	)
Other operating income – net	$	(699	)	$	(2,368	)	$	(26,495	)	$	(6,647	)

During the nine months ended November 28, 2014, the Corporation recognized a net gain of $38.7 million from the sale of AGI In-Store, which included a second quarter gain of $38.8 million and an adjustment to the gain in the third quarter of $0.1 million. The cash proceeds of $73.7 million from the sale are included in “Proceeds from sale of AGI In-Store” on the Consolidated Statement of Cash Flows. See Note 4 for further information.

10

“Loss on asset disposal” during the nine month period ended November 28, 2014 included a non-cash loss of $15.5 million related to the sale of the Corporation’s current world headquarters location during the current year second quarter. The cash proceeds of $13.5 million are included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows. See Note 4 for further information.

During the first quarter of 2015, the Corporation recorded an impairment recovery of $3.4 million related to the senior secured debt of Clinton Cards that the Corporation acquired in May 2012 and subsequently impaired. This recovery, which was based on current estimated recovery information provided by the bankruptcy administrators of the Clinton Cards liquidation (“Administrators”), represented the final amount of a full recovery of the prior impairment. During the third quarter of 2015, as part of the liquidation process, the Corporation received a distribution of $11.3 million which included the full recovery of the remaining senior secured debt claim as well as accumulated interest that was previously not expected to be received. The interest of $2.5 million is included in “Interest income” on the Consolidated Statement of Income.

During the three and nine month periods ended November 29, 2013 the impairment of the secured debt of Clinton Cards, based on updated recovery information provided by the Administrators, was also adjusted, resulting in a gain of $1.8 million and $4.2 million, respectively.

Other Non-Operating Expense (Income) - Net

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Impairment of investment in Schurman	$	—		$	1,935		$	—		$	1,935
Gain related to Party City investment		—			—			—			(3,262	)
Foreign exchange loss (gain)		955			(454	)		432			(1,729	)
Rental income		(122	)		(408	)		(877	)		(1,294	)
Miscellaneous		—			(26	)		(101	)		(1	)
Other non-operating expense (income)– net	$	833		$	1,047		$	(546	)	$	(4,351	)

During the three months ended November 29, 2013, the Corporation recognized an impairment loss of $1.9 million associated with its investment in Schurman. See Note 1 for further information.

In July 2013, the Corporation recognized a gain totaling $3.3 million related to a cash distribution on its minority investment in the common stock of Party City Holdings, Inc. (“Party City”).

Note 7 – Accumulated Other Comprehensive (Loss) Income

The changes in accumulated other comprehensive income (loss) are as follows.

(In thousands)	Foreign Currency Translation Adjustments			Pensions and Other Postretirement Benefits			Total
Balance at February 28, 2014	$	25,139		$	(24,387	)	$	752
Other comprehensive loss before reclassifications		(15,917	)		(158	)		(16,075	)
Amounts reclassified from accumulated other comprehensive income (loss)		—			445			445
Net current period other comprehensive (loss) income		(15,917	)		287			(15,630	)
Balance at November 28, 2014	$	9,222		$	(24,100	)	$	(14,878	)

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The reclassifications out of accumulated other comprehensive income (loss) are as follows.

(In thousands)	Nine Months Ended November 28, 2014			Consolidated Statement of Income Classification
Amortization of pension and other postretirement benefits items
Actuarial losses, net	$	(1,060	)	Administrative and general expenses
Prior service credit, net		394		Administrative and general expenses
		(666	)
Tax benefit		221		Income tax expense
Total, net of tax		(445	)
Total reclassifications	$	(445	)

Note 8 – Customer Allowances and Discounts

Trade accounts receivable is reported net of certain allowances and discounts. The most significant of these are as follows:

(In thousands)	November 28, 2014		February 28, 2014		November 29, 2013
Allowance for seasonal sales returns	$	26,651	$	26,613	$	30,028
Allowance for outdated products		9,624		9,692		9,848
Allowance for doubtful accounts		1,752		2,488		3,934
Allowance for marketing funds		33,155		28,277		28,416
Allowance for rebates		31,987		27,369		29,191
	$	103,169	$	94,439	$	101,417

Certain customer allowances and discounts are settled in cash. These accounts, primarily rebates, which are classified as “Accrued liabilities” on the Consolidated Statement of Financial Position, totaled $16.1 million, $16.5 million and $15.4 million as of November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

Note 9 – Inventories

(In thousands)	November 28, 2014		February 28, 2014		November 29, 2013
Raw materials	$	11,668	$	20,915	$	22,447
Work in process		6,404		8,093		8,178
Finished products		343,460		287,481		323,204
		361,532		316,489		353,829
Less LIFO reserve		84,132		82,140		85,617
		277,400		234,349		268,212
Display materials and factory supplies		8,790		20,412		23,160
	$	286,190	$	254,761	$	291,372

The valuation of inventory under the Last-In, First-Out (“LIFO”) method is made at the end of each fiscal year based on inventory levels and costs at that time. Accordingly, interim LIFO calculations, by necessity, are based on estimates of expected fiscal year-end inventory levels and costs, and are subject to final fiscal year-end LIFO inventory calculations.

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Inventory held on location for retailers with scan-based trading arrangements, which is included in finished products, totaled $88.5 million, $66.8 million and $82.0 million as of November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

Note 10 – Deferred Costs

Deferred costs and future payment commitments for retail supply agreements are included in the following financial statement captions:

(In thousands)	November 28, 2014			February 28, 2014			November 29, 2013
Prepaid expenses and other	$	107,729		$	100,282		$	103,173
Other assets		389,533			428,090			301,844
Deferred cost assets		497,262			528,372			405,017
Other current liabilities		(66,007	)		(84,860	)		(64,652	)
Other liabilities		(136,111	)		(149,190	)		(83,100	)
Deferred cost liabilities		(202,118	)		(234,050	)		(147,752	)
Net deferred costs	$	295,144		$	294,322		$	257,265

The Corporation maintains an allowance for deferred costs related to supply agreements of $2.6 million, $4.1 million and $5.6 million at November 28, 2014, February 28, 2014 and November 29, 2013, respectively. This allowance is included in “Other assets” on the Consolidated Statement of Financial Position.

Note 11 – Other Liabilities

Included in “Other liabilities” on the Consolidated Statement of Financial Position is a deferred lease obligation related to an operating lease with H L & L Property Company (“H L & L”), for a building that will function as the future American Greetings world headquarters. The building is currently being constructed and expected to be available for occupancy in calendar year 2016.

H L & L is an indirect affiliate of American Greetings as it is indirectly owned by members of the Weiss family. Due to, among other things, the Corporation’s involvement in the construction of the building, the Corporation is required to be treated, for accounting purposes only, as the “deemed owner” of the new world headquarters building during the construction period. Accordingly, the Corporation has recorded an asset and associated offsetting liability during the construction of the building, even though the Corporation does not own the asset and is not the obligor on the corresponding construction debt. As of November 28, 2014, the asset and corresponding liability was $19.0 million.

Note 12 – Debt

Debt due within one year was as follows:

(In thousands)	November 28, 2014		February 28, 2014		November 29, 2013
Current portion of term loan	$	20,000	$	20,000	$	20,000
Accounts receivable facility		3,800		—		—
	$	23,800	$	20,000	$	20,000

Long-term debt and their related calendar year due dates were as follows:

(In thousands)	November 28, 2014			February 28, 2014			November 29, 2013
Term loan, due 2019	$	325,000		$	340,000		$	350,000
7.375% senior notes, due 2021		225,000			225,000			225,000
Revolving credit facility, due 2018		48,000			4,500			77,300
6.10% senior notes, due 2028		181			181			181
Unamortized financing fees		(7,949	)		(10,567	)		(10,153	)
		590,232			559,114			642,328
Current portion of term loan		(20,000	)		(20,000	)		(20,000	)
	$	570,232		$	539,114		$	622,328

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At November 28, 2014, the balances outstanding on the term loan facility, the revolving credit facility and accounts receivable facility bear interest at a rate of approximately 2.7%, 2.7% and 0.6%, respectively. The revolving credit facility and accounts receivable facility provide the Corporation with funding of up to $250 million and $50 million, respectively. Outstanding letters of credit, which reduce the total credit available under the revolving credit and the accounts receivable facilities, totaled $27.7 million at November 28, 2014.

The total fair value of the Corporation’s publicly traded debt, which was considered a Level 1 valuation as it was based on quoted market prices, was $238.0 million (at a carrying value of $225.2 million), $234.7 million (at a carrying value of $225.2 million) and $228.8 million (at a carrying value of $225.2 million) at November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

The total fair value of the Corporation’s non-publicly traded debt, which was considered a Level 2 valuation as it was based on comparable privately traded debt prices, was $369.6 million (at a principal carrying value of $373.0 million), $344.5 million (at a principal carrying value of $344.5 million), and $427.3 million (at a principal carrying value of $427.3 million) at November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

On September 5, 2014, the Corporation amended the Credit Agreement which provides for the term loan facility and revolving credit facility. The amendment modifies the Credit Agreement to, among other things: (i) reduce the interest rates applicable to the term loan and revolving loans, (ii) eliminate the LIBOR floor interest rate used in the determination of interest charged on Eurodollar revolving loans, (iii) reduce the commitment fee applicable to unused revolving commitments and (iv) reset the usage term of the general restricted payment basket with effect from September 5, 2014. As a result of this amendment and certain changes in the syndicated lending group, the Corporation expensed $1.9 million of unamortized financing fees and capitalized $1.1 million of new fees in the quarter ended November 28, 2014.

On August 8, 2014, the Corporation amended its accounts receivable facility. The amendment modified the accounts receivable facility to, among other things: (i) extend the scheduled termination date to August 7, 2015 and (ii) reduce the fees associated with this facility.

At November 28, 2014, the Corporation was in compliance with the financial covenants under its borrowing agreements.

Note 13 – Retirement Benefits

The components of periodic benefit cost for the Corporation’s defined benefit pension and postretirement benefits plans are as follows:

	Defined Benefit Pension Plans
	Three Months Ended						Nine Months Ended
	November 28,			November 29,			November 28,			November 29,
(In thousands)	2014			2013			2014			2013
Service cost	$	144		$	315		$	433		$	955
Interest cost		1,833			1,766			5,516			5,244
Expected return on plan assets		(1,617	)		(1,577	)		(4,868	)		(4,718	)
Amortization of prior service cost		582			68			584			170
Amortization of actuarial loss		710			871			2,136			2,701
	$	1,652		$	1,443		$	3,801		$	4,352

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	Postretirement Benefits
	Three Months Ended						Nine Months Ended
	November 28,			November 29,			November 28,			November 29,
(In thousands)	2014			2013			2014			2013
Service cost	$	76		$	48		$	276		$	323
Interest cost		559			572			1,909			1,797
Expected return on plan assets		(762	)		(775	)		(2,162	)		(2,300	)
Amortization of prior service credit		(328	)		(327	)		(978	)		(977	)
Amortization of actuarial gain		(626	)		(357	)		(1,076	)		(782	)
	$	(1,081	)	$	(839	)	$	(2,031	)	$	(1,939	)

The Corporation has a discretionary profit-sharing plan with a 401(k) provision covering most of its United States employees. The profit-sharing plan expense for the nine months ended November 28, 2014 was $7.5 million, compared to $4.9 million in the prior year period. The Corporation also matches a portion of 401(k) employee contributions. The expenses recognized for the three and nine month periods ended November 28, 2014 were $0.9 million and $3.6 million ($1.3 million and $4.0 million for the three and nine month periods ended November 29, 2013), respectively. The profit-sharing plan and 401(k) matching expenses for the nine month periods are estimates as actual contributions are determined after fiscal year-end.

At November 28, 2014, February 28, 2014 and November 29, 2013, the liability for postretirement benefits other than pensions was $20.6 million, $17.9 million and $18.6 million, respectively, and is included in “Other liabilities” on the Consolidated Statement of Financial Position. At November 28, 2014, February 28, 2014 and November 29, 2013, the long-term liability for pension benefits was $74.8 million, $77.3 million and $81.0 million, respectively, and is included in “Other liabilities” on the Consolidated Statement of Financial Position.

Note 14 – Fair Value Measurements

Assets and liabilities measured at fair value are classified using the fair value hierarchy based upon the transparency of inputs as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. The three levels are defined as follows:

• Level 1 – Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 – Valuation is based upon unobservable inputs that are significant to the fair value measurement.

The following table summarizes the assets and liabilities measured at fair value as of November 28, 2014:

(In thousands)	November 28, 2014		Level 1		Level 2		Level 3
Assets measured on a recurring basis:
Deferred compensation plan assets	$	12,840	$	10,932	$	1,908	$	—
Liabilities measured on a recurring basis:
Deferred compensation plan liabilities	$	13,783	$	10,932	$	2,851	$	—

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The following table summarizes the assets and liabilities measured at fair value as of February 28, 2014:

(In thousands)	February 28, 2014		Level 1		Level 2		Level 3
Assets measured on a recurring basis:
Deferred compensation plan assets	$	12,285	$	10,289	$	1,996	$	—
Liabilities measured on a recurring basis:
Deferred compensation plan liabilities	$	13,230	$	10,289	$	2,941	$	—

The following table summarizes the assets and liabilities measured at fair value as of November 29, 2013:

(In thousands)	November 29, 2013		Level 1		Level 2		Level 3
Assets measured on a recurring basis:
Deferred compensation plan assets	$	12,129	$	8,814	$	3,315	$	—
Liabilities measured on a recurring basis:
Deferred compensation plan liabilities	$	13,295	$	8,814	$	4,481	$	—

The deferred compensation plan includes investments in mutual funds and a money market fund. Assets held in mutual funds are recorded at fair value, which is considered a Level 1 valuation as it is based on each fund’s quoted market value per share in an active market. The money market fund is classified as Level 2 as substantially all of the fund’s investments are determined using amortized cost. The fair value of the deferred compensation plan liabilities is based on the fair value of: (i) the plan’s assets for invested deferrals and (ii) hypothetical investments for unfunded deferrals resulting from the conversion of deferred restricted stock units to future cash-settled obligations pursuant to the Merger. Prior to the Merger, the assets and related obligation associated with deferred restricted stock units were carried at cost in equity and offset each other.

Note 15 – Contingency

The Corporation is presently involved in various judicial, administrative, regulatory and arbitration proceedings concerning matters arising in the ordinary course of business, including but not limited to, employment, commercial disputes and other contractual matters, one of which is described below. These matters are inherently subject to many uncertainties regarding the possibility of a loss to the Corporation. These uncertainties will ultimately be resolved when one or more future events occur or fail to occur, confirming the incurrence of a liability or reduction of a liability. In accordance with ASC Topic 450, “Contingencies,” the Corporation accrues for these contingencies by a charge to income when it is both probable that one or more future events will occur confirming the fact of a loss and the amount of the loss can be reasonably estimated. Due to this uncertainty, the actual amount of any loss may ultimately prove to be larger or smaller than the amounts reflected in the Corporation’s Consolidated Financial Statements. Some of these proceedings are at preliminary stages and some of these cases seek an indeterminate amount of damages.

On June 4, 2014, Al Smith and Jeffrey Hourcade, former fixture installation crew members for special projects, individually and on behalf of those similarly situated, filed a putative class action lawsuit against American Greetings Corporation in the U.S. District Court for the Northern District of California, San Francisco Division. Plaintiffs claim that the Corporation violated certain rules under the Fair Labor Standards Act and California law, including the California Labor Code, Industrial Welfare Commission Wage Orders. For themselves and the proposed classes, plaintiffs seek an unspecified amount of general and special damages, including but not limited to minimum wages, agreed upon wages and overtime wages, statutory liquidated damages, statutory penalties (including penalties under the California Labor Code Private Attorney General Act of 2004 (“PAGA”), unpaid benefits, reasonable attorneys’ fees and costs, and interest). In addition, plaintiffs request disgorgement of all funds the Corporation acquired by means of any act or practice that constitutes unfair competition and restoration of such funds to the plaintiffs and the proposed classes. On November 6, 2014, plaintiffs filed a Second Amended Complaint to add claims for reimbursement of business expenses and failure to provide meal periods in violation of California Law and on December 12, 2014, amended their PAGA notice to include the newly added claims.

Although the proceeding is in the early stages and there are significant factual issues to be resolved, management does not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on the Corporation’s financial condition, although the outcome could be material to the Corporation’s operating results for any particular period, depending, in part, upon the operating results for such period. Please refer to Item 1. Legal Proceedings included in Part II – Other Information of this Form 10-Q for a description of the Smith and Hourcade lawsuit.

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Note 16 – Income Taxes

The Corporation’s provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against income before income tax expense for the period. In addition, non-recurring or discrete items are recorded during the period in which they occur. The magnitude of the impact that discrete items have on the Corporation’s quarterly effective tax rate is dependent on the level of income in the period. The effective tax rate was 35.7% and 27.6% for the three and nine months ended November 28, 2014, respectively, and 8.6% and 49.1% for the three and nine months ended November 29, 2013, respectively. The lower than statutory rate for the nine months ended November 28, 2014 was due to both the recording of a net $4.1 million federal tax refund and related interest attributable to fiscal 2000 and the error corrections identified in the current year first quarter and recorded in accordance with ASC Topic 250, Accounting Changes and Error Corrections. The net impact of the error corrections was a reduction to income tax expense of $4.1 million. During the first quarter of fiscal 2015, the Corporation identified and corrected errors in the accounting for income taxes that related to the year ended February 28, 2014. These errors primarily related to the Corporation’s failure to consider all sources of available taxable income when assessing the need for a valuation allowance against certain deferred tax assets and the recognition of a liability for an uncertain tax position. These errors were the result of the significant complexity created as a result of the Merger and related transactions in fiscal 2014. See Note 1 for further information. The lower than statutory rate for the three months ended November 29, 2013 was due primarily to the release of reserves upon lapse of the applicable statutes and related to positions that had been effectively settled under audit. The higher than statutory rate for the nine months ended November 29, 2013 was due primarily to the recording of an $8.0 million valuation allowance against certain net operating loss and foreign tax credit carryforwards which the Corporation believed at the time would expire unused as a result of the Merger.

At November 28, 2014, the Corporation had unrecognized tax benefits of $21.6 million that, if recognized, would have a favorable effect on the Corporation’s income tax expense of $19.1 million. During the nine months ended November 28, 2014, the Corporation’s unrecognized tax benefits increased $2.6 million as a result of uncertain tax positions taken in the Corporation’s most recently filed tax returns and error corrections related to the uncertain tax position as discussed above. It is reasonably possible that the Corporation’s unrecognized tax positions as of November 28, 2014 could decrease $3.0 million during the next twelve months due to anticipated settlements and resulting cash payments related to tax years which are open to examination.

The Corporation recognizes interest and penalties accrued on unrecognized tax benefits and refundable income taxes as a component of income tax expense. During the nine months ended November 28, 2014, the Corporation recognized a net benefit of $3.8 million for interest and penalties on unrecognized tax benefits and refundable income taxes. As of November 28, 2014, the total amount of gross accrued interest and penalties related to unrecognized tax benefits less refundable income taxes was a net payable of $0.6 million.

The Corporation is subject to examination by the IRS for tax years 2010 to the present and various U.S. state and local jurisdictions for tax years 2001 to the present. The Corporation is also subject to tax examination in various international tax jurisdictions, including Canada, the United Kingdom, Australia, Italy, Mexico and New Zealand for tax years 2006 to the present.

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

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2013 to resume the project and, on March 26, 2014, the Corporation purchased from Crocker Park, LLC, the owner of the Crocker Park Development, 14.48 acres of land at the south end of the Crocker Park Development (the “Crocker Park Site”) on which the new world headquarters will be built. The purchase price for the land was $7.4 million (based on a per acre price of $510 thousand). Morry Weiss, the Chairman of the board of the Corporation, Zev Weiss and Jeffrey Weiss, directors and the Co-Chief Executive Officers of the Corporation, and Gary and Elie Weiss, directors and non-executive officers of the Corporation, together with members of their family (collectively, the “Weiss Family”), indirectly own a minority stake in Crocker Park, LLC through their indirect ownership of approximately 37% of the membership interests in Crocker Park, LLC. In addition, Morry Weiss and other members of the Weiss Family have guaranteed certain of Crocker Park, LLC’s obligations, and are expected to guarantee additional obligations of Crocker Park, LLC, incurred in connection with the Crocker Park Development. The authority to conduct, manage and control the business of Crocker Park, LLC, including operating the Crocker Park Development and the decision whether to sell the Crocker Park Site to American Greetings, was reserved to the manager of Crocker Park, LLC, who is not an affiliate of the Weiss Family and that is an affiliate of Stark Enterprises, Inc.

The Corporation is leasing a portion of the Crocker Park Site to H L & L, which will construct the new world headquarters on the Crocker Park Site and sublease the new world headquarters back to the Corporation. The Corporation has also entered into an operating lease with H L & L for the use of the new world headquarters building, anticipated to be available for occupancy in calendar year 2016. The initial lease term is fifteen years and will begin upon occupancy. The annual rent is expected to be approximately $9.5 million. See Note 11 for further information. Please refer to the Corporation’s Annual Report on Form 10-K for the fiscal year ended February 28, 2014 for a description of the transactions associated with the world headquarters relocation.

Transactions with Parent Companies and Other Affiliated Companies

From time to time employees of the Corporation may provide services to its parent companies as well as companies that are owned or controlled by members of the Weiss family, in each case provided that such services do not interfere with the Corporation’s employees’ ability to perform services on its behalf. When providing such services, the affiliated companies reimburse the Corporation for such services, based on the costs of employing the individual (including salary and benefits) and the amount of time spent by such employee in providing services to the affiliated company.

During the nine months ended November 28, 2014, the Corporation paid cash dividends in the aggregate amount of $24.2 million to Century Intermediate Holding Company, its parent and sole shareholder, $14.3 million of which was for the purpose of paying interest on the $285.0 million aggregate principal amount 9.75%/10.50% Senior PIK Toggle Notes due 2019, which were issued by Century Intermediate Holding Company 2, an indirect parent of American Greetings. In addition, H L & L paid $9.9 million to the Corporation to acquire certain assets previously purchased by the Corporation related to the new world headquarters project, which is included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows.

Note 18 – Business Segment Information

The Corporation has North American Social Expression Products, International Social Expression Products, Retail Operations, AG Interactive and non-reportable segments. The North American Social Expression Products and International Social Expression Products segments primarily design, manufacture and sell greeting cards and other related products through various channels of distribution with mass merchandising as the primary channel. At November 28, 2014, the Retail Operations segment operated 415 card and gift retail stores in the United Kingdom. The stores sell products purchased from the International Social Expression Products segment as well as products purchased from other vendors. AG Interactive distributes social expression products, including electronic greetings and a broad range of graphics and digital services and products, through a variety of electronic channels, including Web sites, Internet portals and electronic mobile devices. The Corporation’s non-reportable operating segment primarily includes licensing activities and the design, manufacture and sale of display fixtures. The display fixtures business was sold on the last day of the second quarter ended August 29, 2014. See Note 4 for further information.

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	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Total Revenue:
North American Social Expression Products	$	360,704		$	342,185		$	966,751		$	932,166
International Social Expression Products		96,424			94,639			239,914			228,812
Intersegment items		(28,234	)		(24,200	)		(49,533	)		(44,029	)
Net		68,190			70,439			190,381			184,783
Retail Operations		64,398			64,875			213,303			202,325
AG Interactive		15,149			15,935			44,093			45,139
Non-reportable segment		5,617			14,082			35,539			60,827
	$	514,058		$	507,516		$	1,450,067		$	1,425,240

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Segment Earnings (Loss):
North American Social Expression Products	$	37,613		$	22,894		$	134,807		$	124,286
International Social Expression Products		8,547			8,539			12,303			13,278
Intersegment items		(5,362	)		(2,297	)		(7,102	)		(6,022	)
Net		3,185			6,242			5,201			7,256
Retail Operations		(16,578	)		(12,825	)		(35,181	)		(25,261	)
AG Interactive		6,131			3,477			17,507			9,955
Non-reportable segment		5,080			5,710			7,789			23,151
Unallocated
Interest expense		(9,533	)		(8,454	)		(27,782	)		(18,199	)
Profit-sharing plan expense		(2,041	)		(407	)		(7,509	)		(4,872	)
Stock-based compensation expense		—			—			—			(13,596	)
Corporate overhead expense		(6,335	)		(13,022	)		12,633			(40,877	)
		(17,909	)		(21,883	)		(22,658	)		(77,544	)
	$	17,522		$	3,615		$	107,465		$	61,843

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For the nine months ended November 29, 2013, stock-based compensation in the table above includes non-cash stock-based compensation prior to the Merger and the impact of the settlement of stock options and the cancellation or modification of outstanding restricted stock units and performance shares concurrent with the Merger, a portion of which was non-cash. There is no stock-based compensation subsequent to the Merger as these plans were converted into cash compensation plans at the time of the Merger.

“Corporate overhead expense” includes costs associated with corporate operations including, among other costs, senior management, corporate finance, legal, and insurance programs.

For the nine months ended November 28, 2014, “Corporate overhead expense” included a net gain on sale of AGI In-Store of $38.7 million. See Note 4 for further information.

For both the three and nine month periods ended November 28, 2014, “Corporate overhead expense” included interest income of $2.5 million related to the Clinton Cards liquidation. See Note 6 for further information.

During the current year second quarter, the Corporation sold its current world headquarters location and incurred a non-cash loss on disposal of $15.5 million, of which $13.3 million was recorded within the North American Social Expression Products segment and $2.2 million was recorded in “Corporate overhead expense”. See Note 4 for further information

For the nine months ended November 29, 2013, “Corporate overhead expense” included non-recurring Merger-related transaction costs of approximately $17.4 million and a gain totaling $3.3 million related to a cash distribution received in connection with the Corporation’s minority investment in the common stock of Party City.

Termination Benefits

Termination benefits are primarily considered part of an ongoing benefit arrangement, accounted for in accordance with ASC Topic 712, “Compensation – Nonretirement Postemployment Benefits,” and are recorded when payment of the benefits is probable and can be reasonably estimated.

The balance of the severance accrual was $4.5 million, $4.0 million and $2.5 million at November 28, 2014, February 28, 2014 and November 29, 2013, respectively. The payments expected within the next twelve months are included in “Accrued liabilities” while the remaining payments beyond the next twelve months are included in “Other liabilities” on the Consolidated Statement of Financial Position.

Note 19 – Subsequent Event

From time to time the Corporation grants to third parties rights in its intellectual property, including rights to utilize intellectual property as well as rights to receive royalties and other revenue generated by the intellectual property. In order to secure complete control and ownership over the rights in certain character properties that the Corporation previously granted to a third party (the “Character Property Rights”), on December 18, 2014, the Corporation paid $37.7 million to purchase these Character Property Rights. In addition to the $37.7 million paid for these rights, in the event of a future sale of these Character Property Rights and the associated character properties, the Corporation may be required, depending on the proceeds of such sale, to pay up to an additional $4.0 million of the proceeds that it receives from any such sale.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited consolidated financial statements. This discussion and analysis, and other statements made in this Report, contain forward-looking statements, see “Factors That May Affect Future Results” at the end of this discussion and analysis for a description of the uncertainties, risks and assumptions associated with these statements. Unless otherwise indicated or the context otherwise requires, the “Corporation,” “we,” “our,” “us” and “American Greetings” are used in this Report to refer to the businesses of American Greetings Corporation and its consolidated subsidiaries.

Overview

Third Quarter Results of Operations

Total revenue for the current year third quarter was $514.1 million, an increase of $6.5 million or 1.3% compared to the prior year period. This improvement was primarily the result of increased sales of greeting cards and higher sales of gift wrap, party goods and other ancillary product, primarily within the North American Social Expression Products segment. These improvements were partially offset by lower revenues from our fixtures business which was sold at the end of the current year second quarter as well as the impact of unfavorable foreign currency movements.

While Christmas seasonal cards sales within our third quarter results were down compared to the prior year, we are encouraged by positive trends that we are seeing from preliminary point of sale (“POS”) data that we are receiving subsequent to quarter end from some of our North American customers related to Christmas seasonal cards. Based on the preliminary POS data that we have received from customers representing approximately 90% of our North American greeting cards sales for Christmas as measured against prior year Christmas sales, we believe that our North American Christmas greeting card sales are trending favorably versus the prior Christmas season at about a 6% increase. While we are cautiously optimistic given this early information, these estimates of sales performance are based on preliminary POS data provided by our customers, which are not subject to accounting controls and are therefore subject to change based on our actual results for the 2014 Christmas seasonal card program.

Third quarter operating income was $25.4 million, an increase of $12.3 million compared to the prior period. The improvement was achieved within the North American Social Expression Products and AG Interactive segments, partially offset by lower earnings from the International Social Expression Products and Retail Operations segments.

The current year third quarter includes the unfavorable impact of approximately $1 million related to scan-based trading (“SBT”) implementations, which was flat compared to the prior year third quarter. The current year nine month period includes the unfavorable impact of approximately $6 million related to SBT implementations, which was approximately $2 million higher than the prior year.

Fiscal 2015 Transactions

Our financial results for the nine month period ended November 28, 2014 were significantly impacted by the following transactions.

On July 1, 2014, we sold our current world headquarters location and entered into an operating lease arrangement with the new owner of the building. We expect to remain in our current location until the completion of our new world headquarters, which we anticipate will occur in calendar year 2016. Net of transaction costs, we received $13.5 million cash from the sale, and recorded a non-cash loss on disposal of $15.5 million during our second fiscal quarter, of which $13.3 million was recorded within the North American Social Expression segment and $2.2 million was recorded within the Unallocated segment.

On August 29, 2014, we completed the sale of our wholly-owned display fixtures business, A.G. Industries, Inc. (dba AGI In-Store “AGI In-Store”), to Rock-Tenn Company for $73.7 million in cash, subject to closing date working capital adjustments. We recognized a net gain of $38.7 million from the sale, which was recorded within the Unallocated segment.

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Results of Operations

Three months ended November 28, 2014 and November 29, 2013

Net income was $11.3 million in the third quarter compared to $3.3 million in the prior year period.

Our results for the three months ended November 28, 2014 and November 29, 2013 are summarized below:

(Dollars in thousands)	2014			% Total Revenue			2013			% Total Revenue
Net sales	$	508,006			98.8%		$	502,107			98.9%
Other revenue		6,052			1.2%			5,409			1.1%
Total revenue		514,058			100.0%			507,516			100.0%
Material, labor and other production costs		249,518			48.5%			244,829			48.2%
Selling, distribution and marketing expenses		175,039			34.1%			177,154			34.9%
Administrative and general expenses		64,829			12.6%			74,814			14.7%
Other operating income – net		(699	)		(0.1%	)		(2,368	)		(0.4%	)
Operating income		25,371			4.9%			13,087			2.6%
Interest expense		9,533			1.8%			8,454			1.7%
Interest income		(2,517	)		(0.5%	)		(29	)		(0.0%	)
Other non-operating expense – net		833			0.2%			1,047			0.2%
Income before income tax expense		17,522			3.4%			3,615			0.7%
Income tax expense		6,261			1.2%			310			0.0%
Net income	$	11,261			2.2%		$	3,305			0.7%

For the three months ended November 28, 2014, consolidated net sales were $508.0 million, up from $502.1 million in the prior year third quarter. This 1.2%, or $5.9 million, increase was driven by higher sales of greeting cards of approximately $11 million, increased sales of gift packaging and party goods of approximately $3 million and higher sales of other ancillary products of approximately $4 million. These increases were partially offset by lower sales of fixtures of approximately $9 million due to the sale of the display fixtures business in the current year second quarter. In addition, foreign currency translation had an unfavorable impact on net sales of approximately $3 million.

Other revenue, primarily royalty revenue from our Strawberry Shortcake and Care Bears properties, increased $0.6 million during the three months ended November 28, 2014.

Wholesale Unit and Pricing Analysis for Greeting Cards

Unit and pricing comparatives (on a sales less returns basis), excluding intercompany eliminations, for the three months ended November 28, 2014 and November 29, 2013 are summarized below:

	Increase (Decrease) From the Prior Year
	Everyday Cards					Seasonal Cards					Total Greeting Cards
	2014		2013			2014			2013		2014		2013
Unit volume		2.0%		(4.5%	)		(4.3%	)		8.2%		0.5%		(1.7%	)
Selling prices		4.8%		2.5%			(2.6%	)		0.0%		3.0%		1.9%
Overall increase / (decrease)		6.9%		(2.1%	)		(6.8%	)		8.2%		3.6%		0.2%

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During the third quarter, combined everyday and seasonal greeting card sales less returns increased 3.6% compared to the prior year quarter, including increases in selling prices of 3.0% and unit volume of 0.5%. The overall increase in selling price was driven by everyday greeting cards in both our North American Social Expression Products and International Social Expression Products segments.

Everyday card sales less returns for the third quarter increased 6.9% due to increases in selling prices of 4.8% and improvement in unit volume of 2.0%. The selling price increase was driven by general price increases and favorable product mix within the core product line, which more than offset the continued unfavorable shift to a higher proportion of value cards. The unit volume improvement was primarily driven by additional distribution to new customers in our North American Social Expression Products segment.

Seasonal card sales less returns decreased 6.8% during the third quarter, including a 2.6% decrease in selling prices and a decrease in unit volume of 4.3%. The decrease in both the selling prices and unit volume for the quarter was driven by our Christmas program in both our North American Social Expression Products and International Social Expression Products segments.

Expense Overview

Material, labor and other production costs (“MLOPC”) for the three months ended November 28, 2014 were $249.5 million, compared to $244.8 million in the prior year three months. As a percentage of total revenue, these costs were 48.5% in the current period compared to 48.2% for the three months ended November 29, 2013. The $4.7 million dollar increase was primarily due to the impact of higher sales and unfavorable product mix in the current year third quarter. Partially offsetting these increases were lower costs related to product display material costs and the elimination of costs related to the display fixtures business that was sold in the current year second quarter

Selling, distribution and marketing (“SDM”) expenses for the three months ended November 28, 2014 were $175.0 million, decreasing $2.2 million from $177.2 million in the prior year third quarter. As a percentage of total revenue, these costs were 34.1% in the current period compared to 34.9% for the prior year period. The dollar decrease in the current year second quarter was driven by lower sales, marketing and product management expenses of approximately $1 million and the favorable impact of foreign currency translation of approximately $1 million.

Administrative and general expenses were $64.8 million for the three months ended November 28, 2014, a decrease of $10.0 million from $74.8 million for the three months ended November 29, 2013. This decrease was driven primarily by lower variable compensation expense. The prior year quarter included approximately $10 million of higher variable compensation expense related to a combination of an adjustment to the prior year expected variable compensation program payout and the establishment during the prior year third quarter of a long-term incentive program to replace the prior stock-based compensation programs. The adjustment to the prior year variable compensation program was necessary as it was probable, based on the year-to-date operating results, that we would exceed previously established performance targets. Higher technology costs of approximately $2 million were offset by other general cost savings, of which no items were individually significant, of approximately $2 million.

Other operating income – net was $0.7 million for the three months ended November 28, 2014 compared to $2.4 million for the prior year third quarter. In the prior year third quarter, based on updated estimated recovery information provided in connection with the Clinton Cards bankruptcy administration, we recorded an adjustment to the Clinton Cards debt impairment resulting in a gain of $1.8 million.

Interest income was $2.5 million for the three months ended November 28, 2014 compared to $29.0 thousand for the quarter ended November 29, 2013. During the third quarter of the current year, as part of the Clinton Cards bankruptcy administration, we received a cash distribution as part of the liquidation process that included $2.5 million of interest on our senior secured debt of Clinton Cards that was previously not expected to be received.

The effective tax rate was 35.7% and 8.6% for the three months ended November 28, 2014 and November 29, 2013, respectively. The significantly lower than statutory rate for the prior year quarter was due primarily to the release of reserves upon lapse of the applicable statutes and related to positions that had been effectively settled under audit.

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Results of Operations

Nine months ended November 28, 2014 and November 29, 2013

Net income was $77.8 million in the nine months ended November 28, 2014 compared to $31.5 million in the prior year nine months.

Our results for the nine months ended November 28, 2014 and November 29, 2013 are summarized below:

(Dollars in thousands)	2014			% Total Revenue			2013			% Total Revenue
Net sales	$	1,432,370			98.8%		$	1,406,319			98.7%
Other revenue		17,697			1.2%			18,921			1.3%
Total revenue		1,450,067			100.0%			1,425,240			100.0%
Material, labor and other production costs		630,413			43.5%			625,340			43.9%
Selling, distribution and marketing expenses		513,132			35.4%			502,500			35.3%
Administrative and general expenses		200,974			13.8%			228,578			16.0%
Other operating income – net		(26,495	)		(1.8%	)		(6,647	)		(0.5%	)
Operating income		132,043			9.1%			75,469			5.3%
Interest expense		27,782			1.9%			18,199			1.3%
Interest income		(2,658	)		(0.2%	)		(222	)		(0.0%	)
Other non-operating income – net		(546	)		(0.0%	)		(4,351	)		(0.3%	)
Income before income tax expense		107,465			7.4%			61,843			4.3%
Income tax expense		29,625			2.0%			30,366			2.1%
Net income	$	77,840			5.4%		$	31,477			2.2%

For the nine months ended November 28, 2014, consolidated net sales were $1.43 billion, up from $1.41 billion in the prior year nine months. This 1.9%, or $26.1 million, increase was driven by higher sales of greeting cards of approximately $37 million, increased sales of gift packaging and party goods of approximately $4 million and the favorable impact of foreign currency of approximately $15 million. These increases were partially offset by lower sales from our display fixtures business, which was sold in the current year second quarter, of approximately $24 million, decreased sales of other ancillary products of approximately $3 million and the unfavorable impact of SBT implementations of approximately $2 million.

Other revenue, primarily royalty revenue from our Strawberry Shortcake and Care Bears properties, decreased $1.2 million in the nine months ended November 28, 2014 compared to the same period in the prior year.

Wholesale Unit and Pricing Analysis for Greeting Cards

Unit and pricing comparatives (on a sales less returns basis), excluding intercompany eliminations, for the nine months ended November 28, 2014 and November 29, 2013 are summarized below:

	Increase (Decrease) From the Prior Year
	Everyday Cards						Seasonal Cards					Total Greeting Cards
	2014			2013			2014		2013			2014		2013
Unit volume		(0.3%	)		(1.0%	)		0.8%		3.7%			0.0%		0.2%
Selling prices		4.9%			2.6%			1.9%		(0.1%	)		4.1%		1.9%
Overall increase / (decrease)		4.5%			1.6%			2.7%		3.6%			4.0%		2.2%

During the nine months ended November 28, 2014, combined everyday and seasonal greeting card sales less returns increased 4.0% compared to the prior year nine months. The overall increase was primarily driven by increases in selling prices from our everyday and seasonal greeting cards in our North American Social Expression Products segment and everyday greeting cards in our International Social Expression Products segment.

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Everyday card sales less returns were up 4.5% compared to the prior year nine months, as a result of increases in selling prices of 4.9%, partially offset by a decline in unit volume of 0.3%. The increase in selling prices was driven by general price increases and favorable product mix within the core product line, which more than offset the continued unfavorable shift to a higher proportion of value cards. The unit volume decline was primarily driven by soft sales within our International Social Expression Products segment.

Seasonal card sales less returns increased 2.7%, with unit volume growth of 0.8% and selling price increases of 1.9%. The increase in unit volume was attributable to our Mother’s Day program, partially offset by our Christmas program, in both our North American Social Expression Products and International Social Expression Products segments and our Easter program within our North American Social Expression Products segment. The increase in selling prices was driven by our Father’s Day and Graduation programs in our North American Social Expression Products segment.

Expense Overview

MLOPC for the nine months ended November 28, 2014 were $630.4 million, an increase of $5.1 million from $625.3 million for the comparable period in the prior year. As a percentage of total revenue, these costs were 43.5% in the current period compared to 43.9% for the nine months ended November 29, 2013. The dollar increase was primarily due to the impact of higher sales and unfavorable product mix in the current year nine months as well as the unfavorable impact of foreign currency translation of approximately $8 million. Partially offsetting these increases were lower product display material costs and the elimination of costs related to the display fixtures business that was sold in the current year second quarter.

SDM expenses for the nine months ended November 28, 2014 were $513.1 million, increasing $10.6 million from $502.5 million for the comparable period in the prior year. As a percentage of total revenue, these costs were 35.4% in the current period compared to 35.3% for the prior year period. The increase was primarily driven by higher supply chain costs of approximately $4 million, increased retail store expenses of approximately $2 million and the unfavorable impact of foreign currency translation of approximately $10 million. Partially offsetting these increases were lower sales, marketing and product management expenses of approximately $4 million.

Administrative and general expenses were $201.0 million for the nine months ended November 28, 2014, a decrease of $27.6 million from $228.6 million in the prior year period. This decrease was driven primarily by prior year costs and fees related to the going private transaction (See Note 1, “Basis of Presentation,” to the Consolidated Financial Statements for further information) of approximately $27 million that did not recur in the current year, lower costs in the AG Interactive segment driven by prior year cost savings initiatives and other general cost savings of approximately $2 million. In addition, the prior year included approximately $6 million of higher variable compensation expense primarily related to an adjustment to the prior year expected variable compensation program payout. The adjustment was necessary as it was probable, based on the year-to-date operating results, that we would exceed previously established performance targets. These decreases were partially offset by higher technology costs of approximately $6 million, increased costs in the Retail Operations segment and the unfavorable impact of foreign currency translation of approximately $2 million.

Other operating income – net was $26.5 million for the nine months ended November 28, 2014 compared to $6.6 million for the prior year nine month period. The increase was driven primarily by the net gain on the sale of AGI In-Store of $38.7 million, partially offset by a non-cash loss recorded upon sale of our current world headquarters location of $15.5 million, both of which occurred in the current year second quarter. In addition, in both the current year and prior year nine month periods, based on updated estimated recovery information provided in connection with the Clinton Cards bankruptcy administration, we recorded an impairment recovery related to the senior secured debt of Clinton Cards that we acquired in May 2012 and subsequently impaired. The recovery was $3.4 million for the nine months ended November 28, 2014 and $4.2 million for nine months ended November 29, 2013. The current year recovery represents the final amount of a full recovery of the impairment. The income related to the impairment recovery in the current year was partially offset by other expenses of $2.1 million related to the Clinton Cards bankruptcy administration.

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Interest income was $2.7 million for the nine months ended November 28, 2014 compared to $0.2 million for the nine months ended November 29, 2013. During the third quarter of the current year, as part of the Clinton Cards bankruptcy administration, we received a cash distribution as part of the liquidation process that included $2.5 million of interest on our senior secured debt of Clinton Cards that was previously not expected to be received.

Other non-operating income – net for the nine months ended November 28, 2014 was $0.5 million, decreasing $3.9 million from $4.4 million in the prior year nine month period. The decrease was driven primarily by a gain of approximately $3.3 million in the prior year third quarter related to the Corporation’s investment in Party City that did not recur in the current year period.

The effective tax rate was 27.6% and 49.1% for the nine months ended November 28, 2014 and November 29, 2013, respectively. The lower than statutory rate in the current period is due to both the recording of a net $4.1 million federal tax refund and related interest attributable to fiscal 2000 and the error corrections identified in the current year first quarter and recorded in accordance with Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. The net impact of the error corrections was a reduction to income tax expense of $4.1 million. During the first quarter of fiscal 2015, we identified and corrected errors in the accounting for income taxes that related primarily to the year ended February 28, 2014. These errors primarily related to our failure to consider all sources of available taxable income when assessing the need for a valuation allowance against certain deferred tax assets and the recognition of a liability for an uncertain tax position. These errors were the result of the significant complexity created as a result of the going private transaction in fiscal 2014. See Note 1, “Basis of Presentation,” to the Consolidated Financial Statements for further information. The higher than statutory rate in the prior period was due primarily to the recording of an $8.0 million valuation allowance against certain net operating loss and foreign tax credit carryforwards which we believed at the time would expire unused as a result of the going private transaction.

Segment Information

Our operations are organized and managed according to a number of factors, including product categories, geographic locations and channels of distribution. Our North American Social Expression Products and International Social Expression Products segments primarily design, manufacture and sell greeting cards and other related products through various channels of distribution, with mass retailers as the primary channel. As permitted under ASC Topic 280 (“ASC 280”), “Segment Reporting,” certain operating segments have been aggregated into the International Social Expression Products segment. The aggregated operating divisions have similar economic characteristics, products, production processes, types of customers and distribution methods. At November 28, 2014, we operated 415 card and gift retail stores in the United Kingdom (“UK”) through our Retail Operations segment. These stores sell products purchased from the International Social Expression Products segment as well as products purchased from other vendors. The AG Interactive segment 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 Non-reportable segment primarily includes licensing activities and the design, manufacture and sales of display fixtures. The display fixtures business was sold on the last day of the quarter ended August 29, 2014. See Note 4, “Dispositions,” to the Consolidated Financial Statements for further information.

Segment results are reported using actual foreign exchange rates for the periods presented. Refer to Note 18, “Business Segment Information,” to the Consolidated Financial Statements for further information and a reconciliation of total segment revenue to consolidated “Total revenue” and total segment earnings (loss) before tax to consolidated “Income before income tax expense.”

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North American Social Expression Products Segment

(Dollars in thousands)	Three Months Ended November				% Change			Nine months Ended November				% Change
	28, 2014		29, 2013					28, 2014		29, 2013
Total revenue	$	360,704	$	342,185		5.4	%	$	966,751	$	932,166		3.7	%
Segment earnings		37,613		22,894		64.3	%		134,807		124,286		8.5	%

Total revenue of our North American Social Expression Products segment increased $18.5 million for the three months ended November 28, 2014 and increased $34.6 million for the nine months ended November 28, 2014 compared to the prior year periods. The increase during the current quarter was primarily driven by higher sales of greeting cards of approximately $11 million, higher sales of gift packaging and party goods of approximately $3 million and increased sales of other ancillary products of approximately $7 million. These increases were partially offset by the unfavorable impact of foreign currency translation of approximately $2 million. The increase in total revenue for the nine months ended November 28, 2014 was primarily driven by higher sales of greeting cards of approximately $35 million, higher sales of gift packaging and party goods of approximately $5 million and increased sales of other ancillary products of approximately $3 million. These increases for the nine month period were partially offset by the unfavorable impacts of foreign currency translation and SBT implementations of approximately $5 million and $3 million, respectively.

Segment earnings increased $14.7 million in the current three months compared to the three months ended November 29, 2013. The increase was driven primarily by the impact of higher revenue, partially offset by unfavorable product mix as well as lower costs related to variable compensation expense (as noted above) of approximately $7 million. In addition, higher technology costs were offset by lower sales, marketing and product management expenses.

Segment earnings increased $10.5 million in the nine month period ended November 28, 2014 compared to the prior year period. The increase was driven primarily by the impact of higher revenue as well as lower costs related to variable compensation expense (as noted above) of approximately $3 million. These increases were partially offset by a non-cash loss related to the sale of our current world headquarters location, of which approximately $13 million of the total loss of $15.5 million was recorded within the North American Social Expression Products segment, higher supply chain costs of approximately $5 million and increased technology costs of approximately $6 million.

International Social Expression Products Segment

(Dollars in thousands)	Three Months Ended November				% Change			Nine months Ended November				% Change
	28, 2014		29, 2013					28, 2014		29, 2013
Total revenue	$	68,190	$	70,439		(3.2	%)	$	190,381	$	184,783		3.0	%
Segment earnings		3,185		6,242		(49.0	%)		5,201		7,256		(28.3	%)

Total revenue of our International Social Expression Products segment decreased $2.2 million for the three months ended November 28, 2014 and increased $5.6 million for the nine months ended November 28, 2014, compared to the prior year periods. The decrease during the current quarter was due primarily to lower sales of greeting cards of approximately $2 million. The increase for the current year nine month period was primarily due to the favorable impact of foreign currency translation of approximately $7 million and the favorable impact of fewer SBT implementations of approximately $1 million. Partially offsetting these increases were lower sales of greeting cards of approximately $1 million and decreased sales of other ancillary products of approximately $1 million compared to the prior year.

Segment earnings decreased $3.1 million in the three months ended November 28, 2014 compared to the prior year period. The decreased earnings were primarily driven by the impact on earnings from decreased greeting card sales, unfavorable product mix and upfront expenses related to cost savings initiatives.

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Segment earnings decreased $2.1 million in the nine months ended November 28, 2014, compared to the nine months ended November 29, 2013. The decreased earnings were primarily driven by the impact on earnings from unfavorable product mix and upfront expenses related to cost savings initiatives, partially offset by slightly lower supply chain and general and administrative costs.

Retail Operations Segment

(Dollars in thousands)	Three Months Ended November						% Change			Nine months Ended November						% Change
	28, 2014			29, 2013						28, 2014			29, 2013
Total revenue	$	64,398		$	64,875			(0.7	%)	$	213,303		$	202,325			5.4	%
Segment loss		(16,578	)		(12,825	)		(29.3	%)		(35,181	)		(25,261	)		(39.3	%)

Total revenue of our Retail Operations segment decreased slightly for the three months ended November 28, 2014. For the nine month period ended November 28, 2014, revenue increased $11.0 million compared to the prior year period. The increase was driven by the impact of favorable foreign exchange translation of approximately $13 million for the nine month period. During the three and nine month periods ended November 28, 2014, net sales at stores open one year or more were down approximately 0.7% and 1.7%, respectively, compared to the same periods in the prior year.

Segment earnings decreased $3.8 million and $9.9 million in the three and nine months ended November 28, 2014, respectively, compared to the prior year periods. The lower segment earnings were the result of lower gross margins driven by promotional pricing activities and higher store operating costs.

AG Interactive Segment

(Dollars in thousands)	Three Months Ended November				% Change			Nine months Ended November				% Change
	28, 2014		29, 2013					28, 2014		29, 2013
Total revenue	$	15,149	$	15,935		(4.9	%)	$	44,093	$	45,139		(2.3	%)
Segment earnings		6,131		3,477		76.3	%		17,507		9,955		75.9	%

Total revenue of AG Interactive decreased slightly for both the three and nine months ended November 28, 2014. This decrease in revenue was driven primarily by lower subscription revenue compared to the prior year. At the end of the third quarter of fiscal 2015, AG Interactive had approximately 3.5 million online paid subscriptions compared to 3.7 million at the end of the same period in the prior year.

Segment earnings increased $2.7 million and $7.6 million for the three and nine months ended November 28, 2014, respectively, primarily due to cost savings initiatives initiated in the prior year.

Non-reportable Segment

(Dollars in thousands)	Three Months Ended November				% Change			Nine months Ended November				% Change
	28, 2014		29, 2013					28, 2014		29, 2013
Total revenue	$	5,617	$	14,082		(60.1	%)	$	35,539	$	60,827		(41.6	%)
Segment earnings		5,080		5,710		(11.0	%)		7,789		23,151		(66.4	%)

Total revenue from our Non-reportable segment decreased $8.5 million and $25.3 million for the three and nine months ended November 28, 2014, respectively, compared to the prior year periods. The decrease in revenue for the current year third quarter was due primarily to the sale of the display fixtures business in the current year second quarter. Revenue in the prior year third quarter for the fixtures business was $9.5 million. For the nine months ended November 28, 2014, in addition to the impact on revenue from the sale of our fixtures business, revenue decreased due to a prior year contract to supply fixtures to a large consumer electronics company that did not recur in the current year. This contract, which was completed during the second quarter of the prior year, contributed approximately $26 million of revenue in the prior year. This decrease in revenue for the nine month period was partially offset by other fixtures business revenue growth prior to the sale.

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Segment earnings decreased $0.6 million and $15.4 million for the three and nine months ended November 28, 2014, respectively, compared to the prior year periods. This decrease for the nine month period was primarily driven by the display fixtures business, due to lower sales volume, unfavorable product mix and higher operating costs during the first half of the year. As noted above, the fixtures business was sold in the current year second quarter.

Unallocated Items

Centrally incurred and managed costs are not allocated back to the operating segments. The unallocated items include interest expense for centrally-incurred debt, domestic profit-sharing expense, and for the nine months ended November 29, 2013, stock-based compensation expense. Unallocated items also included costs associated with corporate operations such as the senior management, corporate finance, legal and insurance programs.

	Three Months Ended November						Nine months Ended November
(Dollars in thousands)	28, 2014			29, 2013			28, 2014			29, 2013
Interest expense	$	(9,533	)	$	(8,454	)	$	(27,782	)	$	(18,199	)
Profit-sharing expense		(2,041	)		(407	)		(7,509	)		(4,872	)
Stock-based compensation expense		—			—			—			(13,596	)
Corporate overhead expense		(6,335	)		(13,022	)		12,633			(40,877	)
Total Unallocated	($	17,909	)	$	(21,883	)	$	(22,658	)	$	(77,544	)

For the nine months ended November 29, 2013, stock-based compensation in the table above includes non-cash stock-based compensation prior to closing of the going private transaction and the impact of the settlement of stock options and the cancellation or modification of outstanding restricted stock units and performance shares concurrent with the closing of the going private transaction, a portion of which was non-cash. There is no stock-based compensation subsequent to the closing of the going private transaction as these plans were converted into cash compensation plans.

For the nine months ended November 28, 2014, “Corporate overhead expense” included the net gain on sale of AGI In-Store of $38.7 million. See Note 4, “Dispositions,” to the Consolidated Financial Statements for further information.

For both the three and nine month periods ended November 28, 2014, “Corporate overhead expense” included interest income of $2.5 million related to the Clinton Cards liquidation. See Note 6, “Other Income and Expense,” to the Consolidated Financial Statements for further information.

During the current year second quarter, we sold our world headquarters location and incurred a non-cash loss on disposal of $15.5 million, of which $2.2 million was recorded within the Unallocated segment. See Note 4, “Dispositions,” to the Consolidated Financial Statements for further information.

For the nine months ended November 29, 2013, “Corporate overhead expense” included non-recurring costs related to the going private transaction of approximately $17.4 million and a gain totaling $3.3 million related to a cash distribution received in connection with our minority investment in the common stock of Party City.

Liquidity and Capital Resources

The seasonal nature of our business precludes a useful comparison of the current period and the fiscal year-end financial statements; therefore, a Consolidated Statement of Financial Position as of November 29, 2013, has been included.

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Operating Activities

Operating activities used $77.1 million of cash during the nine months ended November 28, 2014, compared to using $33.1 million in the prior year period.

Accounts receivable used $84.0 million of cash during the nine months ended November 28, 2014, compared to using $94.6 million of cash during the prior year period. The year-over-year increase in cash flow of $10.6 million occurred primarily within our North American Social Expression segment due primarily to the timing of collections from, or credits issued to, certain customers occurring in a different pattern in the current year period compared to the prior year period.

Inventory used $57.8 million of cash during the nine months ended November 28, 2014, compared to using $43.6 million in the prior year nine months. Historically, the first nine months of our fiscal year is a period of inventory build, and thus a use of cash, in preparation for the winter seasonal holidays. In addition to the normal seasonal inventory build, the current year includes an inventory increase related to a new party goods product launch and inventory growth in our Retail Operations segment to align inventory to more normalized levels.

Other current assets used $0.2 million of cash during the nine months ended November 28, 2014, compared to providing $14.8 million during the prior year nine months. The variance between years is due to the change in the balance of prepaid rents in our Retail Operations segment, primarily driven by year-over-year timing differences.

Deferred costs - net generally represents payments under agreements with retailers net of the related amortization of those payments. During the nine months ended November 28, 2014, payments exceeded amortization by $1.4 million. During the nine months ended November 29, 2013, amortization exceeded payments by $15.0 million. See Note 10, “Deferred Costs,” to the Consolidated Financial Statements for further detail of deferred costs related to customer agreements.

Accounts payable and other liabilities used $23.7 million of cash during the nine months ended November 28, 2014, compared to using $21.9 million in the prior year period.

Investing Activities

Investing activities provided $39.1 million of cash during the nine months ended November 28, 2014, compared to using $26.6 million in the prior year period. The current year includes proceeds received from the sale of AGI In-Store and the sale of our current world headquarters of $73.7 million and $13.5 million, respectively. See Note 4, “Dispositions,” to the Consolidated Financial Statements for further information. In addition, the current year includes proceeds received from H L & L Property Company, an indirect affiliate of American Greetings (“H L & L”) of $9.9 million related to the sale of certain assets previously purchased by us related to the new world headquarters. The current year also includes proceeds from Clinton Cards administration of $11.9 million. Partially offsetting these cash inflows was cash paid for capital expenditures of $70.3 million during the current year nine month period.

In the prior year period, the cash usage was primarily driven by $45.3 million of cash paid for capital expenditures. The prior year also included the receipt of a cash distribution of $12.1 million related to our investment in Party City.

Financing Activities

Financing activities provided $7.1 million of cash during the current year nine months, compared to using $11.5 million in the prior year nine month period. During the current year, this source of cash was primarily driven by borrowings, net of repayments, under our revolving credit facility and accounts receivable securitization facility of $47.3 million. Partially offsetting these cash inflows were cash dividend payments of $24.2 million and payments in the aggregate of $15.0 million on our term loan.

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The primary net use of cash in the prior year was in connection with activities related to the going private transaction. These activities included borrowings under our new credit agreement, net of repayments and debt issuance costs, which provided cash of $348.8 million, the contribution from Century Intermediate Holding Company (“CIHC”), our parent and sole shareholder, which provided cash of $240.0 million and payment of cash of $568.3 million to complete the going private transaction and cancel outstanding shares. In addition, we paid cash dividends of $27.8 million, of which $9.6 million was paid to common shareholders prior to the going private transaction and $18.2 million was paid to CIHC after the going private transaction.

Credit Sources

Substantial credit sources are available to us. In total, we had available sources of credit of approximately $625 million at November 28, 2014, which included $325 million outstanding on our term loan facility, a $250 million revolving credit facility and a $50 million accounts receivable securitization facility, of which $220.5 million in the aggregate was unused as of November 28, 2014. Borrowings under the accounts receivable securitization facility are limited based on our eligible receivables outstanding. At November 28, 2014, we had $48.0 million of borrowings outstanding under our revolving credit facility and we had $3.8 million of borrowings outstanding under our accounts receivable securitization facility. We had, in the aggregate, $27.7 million outstanding under letters of credit, which reduced the total credit availability thereunder as of November 28, 2014.

Please refer to the discussion of our borrowing arrangements as disclosed in the “Credit Sources” section under Part II, Item 7 of our Annual Report on Form 10-K for the year ended February 28, 2014 for further information.

At November 28, 2014, we were in compliance with our financial covenants under the borrowing agreements described above.

Capital Deployment and Investments

On February 10, 2014, Century Intermediate Holding Company 2 (“CIHC2”), an indirect parent of American Greetings, issued $285 million aggregate principal amount of 9.75%/10.50% Senior PIK Toggle Notes due 2019 (the “PIK Notes”). Excluding the first and last interest payment periods, which must be paid in cash, CIHC2 may elect to either accrue or pay cash interest on the PIK Notes. The PIK Notes carry a cash interest rate of 9.75%. Prior to the payment of interest by CIHC2, it is expected that we will provide CIHC2 with the cash flow for CHIC2 to pay interest on the PIK Notes. Assuming interest is paid regularly in cash, rather than accrued, the annual cash required to pay the interest is expected to be approximately $27.8 million while the entire issuance of PIK Notes are outstanding. For further information, refer to the discussion of the PIK Notes as disclosed in “Transactions with Parent Companies and Other Affiliated Companies” in Note 18, “Related Party Information,” to the Consolidated Financial Statements under Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended February 28, 2014.

Throughout fiscal 2015 and thereafter, we will continue to consider all options for capital deployment including growth opportunities, acquisitions and other investments in third parties, expanding customer relationships, expenditures or investments related to our current product leadership initiatives or other future strategic initiatives, capital expenditures, the information technology systems refresh project, paying down debt, paying dividends and, as appropriate, preserving cash. Our future operating cash flow and borrowing availability under our credit agreement and our accounts receivable securitization facility are expected to meet these and other currently anticipated funding requirements. The seasonal nature of our business results in peak working capital requirements that may be financed through short-term borrowings when cash on hand is insufficient.

Over roughly the next five or six years, we expect to allocate resources, including capital, to refresh our information technology systems by modernizing our systems, redesigning and deploying new processes, and evolving new organization structures, all of which are intended to drive efficiencies within the business and add new capabilities. Amounts that we spend could be material in any fiscal year and over the life of the project. The total amount spent through fiscal 2014 on this project was approximately $109 million. During the nine months ended November 28, 2014, we spent approximately $15 million, including capital of approximately $11 million and expense of approximately $4 million, on these information technology systems. We currently expect to spend a total of at least

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an additional $150 million on these information technology systems over the remaining life of the project, the majority of which we expect will be capital expenditures. We believe these investments are important to our business, helping us drive further efficiencies and add new capabilities; however, there can be no assurance that we will not spend more or less than $150 million over the remaining life of the project, or that we will achieve the anticipated efficiencies or any cost savings.

In May 2011, we announced plans to relocate our world headquarters to the Crocker Park mixed use development in Westlake, Ohio, 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, we announced plans in October 2013 to resume the project and on March 26, 2014, we purchased the land on which the new world headquarters will be built. We are leasing a portion of the real property to H L & L, which will build the new world headquarters on the site. We have also entered into an operating lease with H L & L for the use of the new world headquarters building, which we expect to be ready for occupancy in calendar year 2016. The initial lease term is fifteen years and will begin upon occupancy. The annual rent is expected to be approximately $9.5 million. Further details of the relocation undertaking are provided in Note 18, “Related Party Information,” to the Consolidated Financial Statements under Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended February 28, 2014 and Note 17, “Related Party Information,” to the Consolidated Financial Statements of this Form 10-Q.

During the nine months ended November 28, 2014, we paid cash dividends in the aggregate amount of $24.2 million to CIHC, our parent and sole shareholder, $14.3 million of which was for the purpose of paying interest on the PIK Notes. In addition, H L & L paid to us $9.9 million to acquire certain assets previously purchased by us related to the new world headquarters project.

Contractual Purchase Obligations

In connection with the sale of AGI In-Store, effective August 29, 2014, we entered into a long-term supply agreement whereby we are committed to purchase a significant portion of our North American display fixtures requirements from Rock-Tenn Company. The supply agreement has an initial term of five years. The Corporation is committed to purchase $180 million of display fixture related products, accessories and/or services over the initial term of the agreement.

Critical Accounting Policies

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Please refer to the discussion of our Critical Accounting Policies under Part II, Item 7 of our Annual Report on Form 10-K for the year ended February 28, 2014.

Factors That May Affect Future Results

Certain statements in this report may constitute forward-looking statements within the meaning of the Federal securities laws. These statements can be identified by the fact that they do not relate strictly to historic or current facts. They use such words as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. These forward-looking statements are based on currently available information, but are subject to a variety of uncertainties, unknown risks and other factors concerning our operations and business environment, which are difficult to predict and may be beyond our control. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect our future financial performance, include, but are not limited to, the following:

• a weak retail environment and general economic conditions;

• the loss of one or more retail customers and/or retail consolidations, acquisitions and bankruptcies, including the possibility of resulting adverse changes to retail contract terms;

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• competitive terms of sale offered to customers, including costs and other terms associated with new and expanded customer relationships;

• risks associated with leasing substantial amounts of space for our retail stores;

• the timing and impact of expenses incurred and investments made to support new retail or product strategies, as well as new product introductions and achieving the desired benefits from those investments;

• the potential impact of any working capital adjustment associated with the sale of AGI In-Store;

• unanticipated expenses we may be required to incur relating to our world headquarters project;

• our ability to qualify for state and local incentives offered to assist us in the development of a new world headquarters;

• the timing of investments in, together with the ability to successfully implement or achieve the desired benefits and cost savings associated with, any information systems refresh we may implement;

• our inability to remediate the material weakness related to our internal control over the accounting for income taxes;

• the timing and impact of converting customers to a scan-based trading model;

• Schurman Fine Papers’ ability to successfully operate its retail operations and satisfy its obligations to us;

• consumer demand for social expression products generally, shifts in consumer shopping behavior, and consumer acceptance of products as priced and marketed, including the success of advertising and marketing efforts, such as our online efforts through Cardstore.com;

• the impact and availability of technology, including social media, on product sales;

• escalation in the cost of providing employee health care;

• the ability to comply with our debt covenants;

• our ability to adequately maintain the security of our electronic and other confidential information;

• fluctuations in the value of currencies in major areas where we operate, including the U.S. Dollar, Euro, UK Pound Sterling and Canadian Dollar; and

• the outcome of any legal claims, known or unknown.

The risks and uncertainties identified above are not the only risks we face. Additional risks and uncertainties not presently known to us or that we believe to be immaterial also may adversely affect us. Should any known or unknown risks or uncertainties develop into actual events, or underlying assumptions prove inaccurate, these developments could have material adverse effects on our business, financial condition and results of operations. For further information concerning the risks we face and issues that could materially affect our financial performance related to forward-looking statements, refer to our periodic filings with the Securities and Exchange Commission, including the “Risk Factors” section included in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended February 28, 2014.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For further information, refer to our Annual Report on Form 10-K for the year ended February 28, 2014. There were no material changes in market risk, specifically interest rate and foreign currency exposure, for us from February 28, 2014, the end of our preceding fiscal year, to November 28, 2014, the end of our most recent fiscal quarter.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls

American Greetings maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms and that such information is accumulated and communicated to the Corporation’s management, including its Co-Chief Executive Officers and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

American Greetings carries out a variety of on-going procedures, under the supervision and with the participation of the Corporation’s management, including its Co-Chief Executive Officers and Chief Financial Officer, to evaluate the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures. Based upon the procedures performed during the current fiscal quarter, our Co-Chief Executive Officers and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report because of the material weakness described below, which has not been remediated as of such date.

As previously reported in the “Controls and Procedures” section included in Part II, Item 9A of our Annual Report on Form 10-K for the fiscal year ended February 28, 2014, we identified a material weakness in internal control over financial reporting surrounding our accounting for income taxes. The principal factors contributing to the material weakness in accounting for income taxes were as follows:

• the significant complexity created as a result of the going private transaction;

• insufficient tax resources to properly execute the Corporation’s review procedures required to maintain effective controls and ensure complete and accurate tax accounting, which was caused by staff turnover including during the year-end closing cycle.

Planned Remediation Efforts to Address Material Weakness

In order to remediate this material weakness and further strengthen the overall controls surrounding our accounting for income taxes, the following steps have been or will be taken to improve the overall processes and controls in our tax function:

• review tax procedures and make recommendations to improve processes;

• add tax resources to facilitate the execution of the Corporation’s review procedures;

• utilize external advisors regarding complex tax issues to supplement knowledge that may not be available internally.

Specifically related to the preparation of the tax accounts for the quarters ended May 30, 2014, August 29, 2014 and November 28, 2014 and to ensure that the consolidated financial statements filed with those quarterly reports on Form 10-Q are presented fairly in accordance with U.S. generally accepted accounting principles, we utilized external resources and advisors as discussed above. In utilizing the external resources and advisors, we identified additional errors which were corrected during the quarter ended May 30, 2014. See Note 1, “Basis of Presentation,” to the Consolidated Financial Statements for further information.

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We intend that the remediation of the material weakness related to controls over the accounting for income taxes will be completed as of the end of fiscal 2015, however, it will not be considered remediated until the remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We cannot make any assurances that we will successfully remediate this material weakness within the anticipated timeframe and thus reduce to remote the likelihood that material misstatements concerning accounting for income taxes will not be prevented or detected in a timely manner.

Changes in Internal Control over Financial Reporting

Except for the remedial actions taken to date with respect to the material weakness described above, there has been no change in the Corporation’s internal control over financial reporting during the Corporation’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

On June 4, 2014, Al Smith and Jeffrey Hourcade, former fixture installation crew members for special projects, individually and on behalf of those similarly situated, filed a lawsuit against American Greetings Corporation in the U.S. District Court for the Northern District of California, San Francisco Division. Plaintiffs claim that the Corporation (1) failed to pay overtime wages and minimum wages in violation of the Fair Labor Standards Act (“FLSA”) and the California Labor Code, Industrial Welfare Commission Wage Orders (“California Law”); (2) failed to make payments within the required time in violation of California Law; (3) failed to provide properly itemized wage statements in violation of the California law; and (4) engaged in unfair competition in violation of California’s Business and Professions Code. Plaintiffs claim to represent a class of all persons who, at any time since June 4, 2010, were employed by the Corporation in California as non-exempt employees and certify subclasses therein with respect to the California Law violations detailed above. In addition, plaintiffs claim to assert a nationwide collective action under the FLSA. For themselves and the proposed classes, plaintiffs seek an unspecified amount of general and special damages, including but not limited to minimum wages, agreed upon wages and overtime wages, statutory liquidated damages, statutory penalties (including penalties under the California Labor Code Private Attorney General Act of 2004 (“PAGA”), unpaid benefits, reasonable attorneys’ fees and costs, and interest. In addition, plaintiffs request disgorgement of all funds the Corporation acquired by means of any act or practice that constitutes unfair competition and restoration of such funds to the plaintiffs and the proposed classes.

The Corporation was served with the Complaint on July 16, 2014 and on July 31, 2014, the Corporation filed a Motion to Dismiss. On August 3, 2014, prior to the Court ruling on the defendant’s Motion to Dismiss, plaintiffs filed their First Amended Complaint. The Corporation vacated its Motion to Dismiss and filed its answer to the First Amended Complaint on August 21, 2014. On November 6, 2014, plaintiffs filed a Second Amended Complaint to add claims for reimbursement of business expenses and failure to provide meal periods in violation of California Law and on December 12, 2014, amended their PAGA notice to include the newly added claims.

In addition to the foregoing, we are involved in various judicial, administrative, regulatory and arbitration proceedings concerning matters arising in the ordinary course of business operations, including, but not limited to, employment, commercial disputes and other contractual matters. We, however, do not believe that based on currently available information any of the litigation in which we are currently engaged, either individually or in the aggregate, will have a material adverse effect on the Corporation’s financial condition, although the outcome could be material to the Corporation’s operating results for any particular period, depending, in part, upon the operating results for such period.

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Item 6. Exhibits

Exhibits required by Item 601 of Regulation S-K

Exhibit Number	Description
10.1	Letter from American Greetings Corporation to Jeffrey Weiss, dated October 7, 2014 regarding Modification of Supplemental Executive Retirement Plan Benefit
31(a)	Certification of Co-Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31(b)	Certification of Co-Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31(c)	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification of Co-Chief Executive Officers and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Corporation’s quarterly report on Form 10-Q for the quarter ended November 28, 2014, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statement of Income for the quarters ended November 28, 2014, and November 29, 2013, (ii) Consolidated Statement of Comprehensive Income (Loss) for the quarters ended November 28, 2014, and November 29, 2013, (iii) Consolidated Statement of Financial Position at November 28, 2014, February 28, 2014 and November 29, 2013, (iv) Consolidated Statement of Cash Flows for the nine months ended November 28, 2014 and November 29, 2013 and (v) Notes to the Consolidated Financial Statements for the quarter ended November 28, 2014.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AMERICAN GREETINGS CORPORATION
By:	/s/ Robert D. Tyler
	Robert D. Tyler
	Corporate Controller and
	Chief Accounting Officer *

January 9, 2015

* (Signing on behalf of Registrant as a duly authorized officer of the Registrant and signing as the chief accounting officer of the Registrant.)

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EX-10.1

EXHIBIT 10.1

Jeffrey Weiss October 7, 2014        

American Greetings Corporation

One American Road

Cleveland, Ohio 44114

Re: Modification of Supplemental Executive Retirement Plan Benefit

Dear Jeffrey,

As you are aware, American Greetings Corporation maintains a Supplemental Executive Retirement Plan (as amended and restated, the “SERP”), of which you are a participant. The retirement income provided under this plan is calculated using a formula consisting of your length of service (to a maximum of twenty years) and your final average earnings (the average of the two highest years of base salary earnings, plus one-half of your annual bonus at target). As you are aware, this program was frozen effective December 31, 2013. As such, benefits earned as of that date were vested; however, the vested benefit amounts will be calculated using each participant’s years of service and earnings as of that date.

On August 1, 2013, you were promoted to Co-Chief Executive Officer of American Greetings. Prior to that change, your base salary was $772,622 and your annual cash bonus target was 90%. With this promotion, your salary was increased to $987,067, and your bonus target was increased to 100% — identical to the base salary and bonus target granted to Mr. Zev Weiss, also Co-Chief Executive Officer. However, because your SERP benefit was frozen and calculated based on your compensation prior to December 31, 2013, we recognized that your SERP benefit, which is calculated using actual base salary earnings and target bonus percentage, will be lower than what it would have been had your compensation been at the Chief Executive Officer level during the SERP calculation period. In consideration of the many years of service that you have provided to American Greetings at a Chief Executive Officer level, this letter confirms that for purposes of calculating your SERP benefit, the benefit will be calculated based on base salary earnings and target bonus percentages that you would have earned had you been compensated at the same level as Mr. Zev Weiss during 2012 and 2013. The effect of this revision is that your SERP benefit at retirement will be based on a base salary of $987,067, and a target bonus percentage of 100%, resulting in a monthly benefit (at age 65) of $24,677. All other terms of the SERP will continue to apply and nothing in this letter is intended to amend or otherwise change the terms of the SERP except as expressly set forth herein.

American Greetings thanks you for your years of service and dedication to American Greetings.

AMERICAN GREETINGS CORPORATION

By: /s/ Brian McGrath                                                

Brian McGrath, Senior Vice President,

Human Resources

EX-31.(A)

Exhibit 31 (a)

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Zev Weiss, certify that:

1. I have reviewed this quarterly report on Form 10-Q of American Greetings Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of American Greetings Corporation as of, and for, the periods presented in this report;

4. American Greetings Corporation’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for American Greetings Corporation and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to American Greetings Corporation, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of American Greetings Corporation’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in American Greetings Corporation’s internal control over financial reporting that occurred during American Greetings Corporation’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, American Greetings Corporation’s internal control over financial reporting; and

5. American Greetings Corporation’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to American Greetings Corporation’s auditors and the audit committee of American Greetings Corporation’s board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect American Greetings Corporation’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in American Greetings Corporation’s internal control over financial reporting.

January 9, 2015	/s/ Zev Weiss
	Zev Weiss
	Co-Chief Executive Officer
	(principal executive officer)

EX-31.(B)

Exhibit 31 (b)

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jeffrey Weiss, certify that:

1. I have reviewed this quarterly report on Form 10-Q of American Greetings Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of American Greetings Corporation as of, and for, the periods presented in this report;

4. American Greetings Corporation’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for American Greetings Corporation and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to American Greetings Corporation, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of American Greetings Corporation’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in American Greetings Corporation’s internal control over financial reporting that occurred during American Greetings Corporation’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, American Greetings Corporation’s internal control over financial reporting; and

5. American Greetings Corporation’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to American Greetings Corporation’s auditors and the audit committee of American Greetings Corporation’s board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect American Greetings Corporation’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in American Greetings Corporation’s internal control over financial reporting.

January 9, 2015	/s/ Jeffrey Weiss
	Jeffrey Weiss
	Co-Chief Executive Officer
	(principal executive officer)

EX-31.(C)

Exhibit 31 (c)

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Gregory M. Steinberg, certify that:

1. I have reviewed this quarterly report on Form 10-Q of American Greetings Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of American Greetings Corporation as of, and for, the periods presented in this report;

4. American Greetings Corporation’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for American Greetings Corporation and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to American Greetings Corporation, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of American Greetings Corporation’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in American Greetings Corporation’s internal control over financial reporting that occurred during American Greetings Corporation’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, American Greetings Corporation’s internal control over financial reporting; and

5. American Greetings Corporation’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to American Greetings Corporation’s auditors and the audit committee of American Greetings Corporation’s board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect American Greetings Corporation’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in American Greetings Corporation’s internal control over financial reporting.

January 9, 2015	/s/ Gregory M. Steinberg
	Gregory M. Steinberg
	Chief Financial Officer
	(principal financial officer)

EX-32

Exhibit 32

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with this quarterly report of American Greetings Corporation on Form 10-Q as filed with the Securities and Exchange Commission on the date therein specified (the “Report”), each of the undersigned certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of American Greetings Corporation.

January 9, 2015

/s/ Zev Weiss

Zev Weiss

Co-Chief Executive Officer

(principal executive officer)

/s/ Jeffrey Weiss

Jeffrey Weiss

Co-Chief Executive Officer

(principal executive officer)

/s/ Gregory M. Steinberg

Gregory M. Steinberg

Chief Financial Officer

(principal financial officer)

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Royalty Revenue and Related Expenses - Revenues and Expenses Associated with Servicing of Agreements (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Royalty expenses
Material, labor and other production (credit) costs	$ 249,518	$ 244,829	$ 630,413	$ 625,340
Selling, distribution and marketing expenses	175,039	177,154	513,132	502,500
Administrative and general expenses	64,829	74,814	200,974	228,578
AG Intellectual Properties [Member]
Segment Reporting Information [Line Items]
Royalty revenue	5,666	5,046	16,527	17,964
Royalty expenses
Material, labor and other production (credit) costs	(1,527)	1,954	1,508	5,453
Selling, distribution and marketing expenses	1,562	1,431	4,837	4,615
Administrative and general expenses	447	421	1,228	1,322
Expenses associated with royalty revenue, Total	$ 482	$ 3,806	$ 7,573	$ 11,390

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Debt - Long-Term Debt (Parenthetical) (Detail)	9 Months Ended		12 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Feb. 28, 2014
Term Loan [Member]
Debt Disclosure [Line Items]
Due year	2019	2019	2019
7.375% Senior Notes, Due 2021 [Member]
Debt Disclosure [Line Items]
Interest rate of debt	7.375%	7.375%	7.375%
Due year	2021	2021	2021
Revolving Credit Facility, Due 2018 [Member]
Debt Disclosure [Line Items]
Due year	2018	2018	2018
6.10% Senior Notes, Due 2028 [Member]
Debt Disclosure [Line Items]
Interest rate of debt	6.10%	6.10%	6.10%
Due year	2028	2028	2028

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Inventories - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Inventory Disclosure [Abstract]
Inventory held on location for retailers with scan-based trading arrangements, which is included in finished products	$ 88.5	$ 66.8	$ 82.0

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Debt - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended	9 Months Ended
	Sep. 05, 2014	Nov. 28, 2014	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Debt Disclosure [Line Items]
Letters of credit outstanding		$ 27,700,000	27,700,000
Carrying value of Corporation's non-publicly traded debt		325,000,000	325,000,000	340,000,000	350,000,000
Amendment [Member]
Debt Disclosure [Line Items]
Credit facility amendment description	(i) reduce the interest rates applicable to the term loan and revolving loans, (ii) eliminate the LIBOR floor interest rate used in the determination of interest charged on Eurodollar revolving loans, (iii) reduce the commitment fee applicable to unused revolving commitments and (iv) reset the usage term of the general restricted payment basket with effect from September 5, 2014.
Unamortized financing fees written off		1,900,000
Capitalized new fees		1,100,000
Current Portion of Term Loan [Member]
Debt Disclosure [Line Items]
Interest on credit facility borrowings			2.70%
Revolving Credit Facility [Member]
Debt Disclosure [Line Items]
Interest on credit facility borrowings			2.70%
Current borrowing capacity		250,000,000	250,000,000
Accounts Receivable Facility [Member]
Debt Disclosure [Line Items]
Interest on credit facility borrowings			0.60%
Available financing of receivables		50,000,000	50,000,000
Publicly Traded [Member]
Debt Disclosure [Line Items]
Carrying value of Corporation's publicly traded debt		225,200,000	225,200,000	225,200,000	225,200,000
Publicly Traded [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Debt Disclosure [Line Items]
Fair value of Corporation's publicly and non-publicly traded debt		238,000,000	238,000,000	234,700,000	228,800,000
Non Publicly Traded [Member]
Debt Disclosure [Line Items]
Carrying value of Corporation's non-publicly traded debt		373,000,000	373,000,000	344,500,000	427,300,000
Non Publicly Traded [Member] | Level 2 [Member]
Debt Disclosure [Line Items]
Fair value of Corporation's publicly and non-publicly traded debt		$ 369,600,000	369,600,000	$ 344,500,000	$ 427,300,000

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Customer Allowances and Discounts - Additional Information (Detail) (Allowance for Rebates [Member], USD $) In Millions, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Allowance for Rebates [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Trade allowances and discounts settled in cash	$ 16.1	$ 16.5	$ 15.4

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Debt (Tables)

9 Months Ended

Nov. 28, 2014

Debt Disclosure [Abstract]

Summary of Debt Due Within One Year

Debt due within one year was as follows:

(In thousands)	November 28, 2014		February 28, 2014		November 29, 2013
Current portion of term loan	$	20,000	$	20,000	$	20,000
Accounts receivable facility		3,800		—		—
	$	23,800	$	20,000	$	20,000

Long-Term Debt

Long-term debt and their related calendar year due dates were as follows:

(In thousands)	November 28, 2014			February 28, 2014			November 29, 2013
Term loan, due 2019	$	325,000		$	340,000		$	350,000
7.375% senior notes, due 2021		225,000			225,000			225,000
Revolving credit facility, due 2018		48,000			4,500			77,300
6.10% senior notes, due 2028		181			181			181
Unamortized financing fees		(7,949	)		(10,567	)		(10,153	)
		590,232			559,114			642,328
Current portion of term loan		(20,000	)		(20,000	)		(20,000	)
	$	570,232		$	539,114		$	622,328

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Retirement Benefits - Additional Information (Detail) (USD $)	9 Months Ended		3 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013	Feb. 28, 2014
Defined Contribution Plan Disclosure [Line Items]
Liability for postretirement benefits other than pensions	$ 20,600,000	$ 18,600,000	$ 20,600,000	$ 18,600,000	$ 17,900,000
Long-term liability for pension benefits	74,800,000	81,000,000	74,800,000	81,000,000	77,300,000
Profit-Sharing Plan [Member]
Defined Contribution Plan Disclosure [Line Items]
Corporate contributions to the profit-sharing plan	7,500,000	4,900,000
401 (k) [Member] | United States [Member]
Defined Contribution Plan Disclosure [Line Items]
Corporate contributions to the 401(k) employee contribution plan	$ 3,600,000	$ 4,000,000	$ 900,000	$ 1,300,000

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Subsequent Event

9 Months Ended

Nov. 28, 2014

Subsequent Events [Abstract]

Subsequent Event

Note 19 – Subsequent Event

From time to time the Corporation grants to third parties rights in its intellectual property, including rights to utilize intellectual property as well as rights to receive royalties and other revenue generated by the intellectual property. In order to secure complete control and ownership over the rights in certain character properties that the Corporation previously granted to a third party (the “Character Property Rights”), on December 18, 2014, the Corporation paid $37.7 million to purchase these Character Property Rights. In addition to the $37.7 million paid for these rights, in the event of a future sale of these Character Property Rights and the associated character properties, the Corporation may be required, depending on the proceeds of such sale, to pay up to an additional $4.0 million of the proceeds that it receives from any such sale.

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Deferred Costs - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Deferred Costs [Abstract]
Allowance for deferred costs related to supply agreements	$ 2.6	$ 4.1	$ 5.6

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Other Income and Expense - Other Non-Operating (Income) Expense - Net (Detail) (USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2013	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Other Income and Expenses [Abstract]
Impairment of investment in Schurman			$ 1,935		$ 1,935
Gain related to Party City investment	(3,300)				(3,262)
Foreign exchange loss (gain)		955	(454)	432	(1,729)
Rental income		(122)	(408)	(877)	(1,294)
Miscellaneous			(26)	(101)	(1)
Other non-operating expense (income)- net		$ 833	$ 1,047	$ (546)	$ (4,351)

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Basis of Presentation - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended
	Nov. 29, 2013	Nov. 29, 2013	Nov. 28, 2014	Feb. 28, 2014
Basis Of Presentation And Significant Accounting Policies [Line Items]
Equity interest holdings in Schurman Fine Papers	15.00%
Investment impairment charge	$ 1,935,000	$ 1,935,000
Forfeiture of equity interest in cost method investment				15.00%
Adjustments for Error Correction [Member]
Basis Of Presentation And Significant Accounting Policies [Line Items]
Increase in net income due to decrease in tax expense			4,100,000
Schurman [Member]
Basis Of Presentation And Significant Accounting Policies [Line Items]
Investment impairment charge	1,900,000
Carrying amount of the investment	0	0
Schurman [Member] | Liquidity Guaranty [Member]
Basis Of Presentation And Significant Accounting Policies [Line Items]
Number of days after Schurman's lenders commence liquidation of collateral under Senior Credit Facility			91 days
Expiration period of liquidity guaranty			2016-07
Maximum exposure to loss, amount			10,000,000
Schurman [Member] | Business Trade and Other Receivables [Member]
Basis Of Presentation And Significant Accounting Policies [Line Items]
Maximum exposure to loss, amount			33,800,000
Schurman [Member] | Operating Leases Subleased to Schurman [Member]
Basis Of Presentation And Significant Accounting Policies [Line Items]
Maximum exposure to loss, amount	$ 8,500,000	$ 8,500,000	$ 5,100,000	7,100,000

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Debt - Summary of Debt Due Within One Year (Detail) (USD $) In Thousands, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Debt Disclosure [Line Items]
Debt due within one year	$ 23,800	$ 20,000	$ 20,000
Term Loan [Member]
Debt Disclosure [Line Items]
Debt due within one year	20,000	20,000	20,000
Accounts Receivable Facility [Member]
Debt Disclosure [Line Items]
Debt due within one year	$ 3,800

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Income Taxes [Line Items]
Income tax expense benefit computation description			The Corporation's provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against income before income tax expense for the period. In addition, non-recurring or discrete items are recorded during the period in which they occur.
Effective tax rate	35.70%	8.60%	27.60%	49.10%
Federal tax refund			$ 4.1
Adjustment to valuation allowance attributable to certain net operating loss and foreign tax credit carryforwards				8.0
Unrecognized tax benefits	21.6		21.6
Income tax expenses affected by unrecognized tax benefits if recognized	19.1		19.1
Unrecognized tax benefits increased			2.6
Decrease in unrecognized tax benefits	3.0		3.0
Unrecognized tax benefits income tax penalties and interest accrued description			The Corporation recognizes interest and penalties accrued on unrecognized tax benefits and refundable income taxes as a component of income tax expense.
Interest and penalties on unrecognized tax benefits and refundable income taxes			3.8
Accrued Interest and penalties on unrecognized tax benefit	0.6		0.6
Open tax years by major tax jurisdiction			The Corporation is subject to examination by the IRS for tax years 2010 to the present and various U.S. state and local jurisdictions for tax years 2001 to the present. The Corporation is also subject to tax examination in various international tax jurisdictions, including Canada, the United Kingdom, Australia, Italy, Mexico and New Zealand for tax years 2006 to the present.
Adjustments for Error Correction [Member]
Income Taxes [Line Items]
Reduction in income tax expense			$ 4.1

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Inventories - Schedule of Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 11,668	$ 20,915	$ 22,447
Work in process	6,404	8,093	8,178
Finished products	343,460	287,481	323,204
Gross inventory	361,532	316,489	353,829
Less LIFO reserve	84,132	82,140	85,617
Inventory net of last in first out reserve	277,400	234,349	268,212
Display materials and factory supplies	8,790	20,412	23,160
Net inventory	$ 286,190	$ 254,761	$ 291,372

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Recent Accounting Pronouncements

9 Months Ended

Nov. 28, 2014

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 3 – Recent Accounting Pronouncements

In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Corporation does not expect that the adoption of this standard will have a material effect on its financial statements.

In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers”. The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 for public companies. Early adoption is not permitted. The standard permits the use of either a retrospective or modified retrospective (cumulative effect) transition method. The Corporation is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements nor decided upon the method of adoption.

In April 2014, the FASB issued ASU No. 2014-08 (“ASU 2014-08”), “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the new guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results and is disposed of or classified as held for sale. The standard also introduces several new disclosures. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. ASU 2014-08 is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. The Corporation adopted ASU 2014-08 on August 29, 2014 in connection with the disposition of A.G. Industries, Inc. See Note 4 for further information.

In July 2013, the FASB issued ASU No. 2013-11 (“ASU 2013-11”), “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. ASU 2013-11 is effective for annual and interim periods beginning after December 15, 2013 for public companies, with early adoption permitted. The Corporation adopted ASU 2013-11 on March 1, 2014.

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Related Party Information - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	0 Months Ended	9 Months Ended
	Mar. 26, 2014 acre	Nov. 28, 2014
Related Party Transaction [Line Items]
Cash dividends paid to parent		$ 24.2
Senior PIK Toggle Notes [Member] | Century Intermediate Holding Company [Member]
Related Party Transaction [Line Items]
Parent company interest payment funded by dividends paid to parent		14.3
Aggregate principal amount of an indirect parent company's Senior PIK Toggle notes		285.0
Cash interest rate percentage		9.75%
PIK interest rate percentage		10.50%
HL and L Property Company [Member] | Century Intermediate Holding Company [Member]
Related Party Transaction [Line Items]
Proceeds from sale of assets to affiliated company		9.9
WHQ Development [Member]
Related Party Transaction [Line Items]
Purchase price of land	7.4
Area of land purchased	14.48
Purchase price of land per acre	510,000
Equity interest held by unconsolidated related party in development project owner	37.00%
Anticipated year of completion for new world headquarters building		2016
Initial lease term		15 years
Expected annual lease rent		$ 9.5

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Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ 752
Other comprehensive loss before reclassifications			(16,075)
Amounts reclassified from accumulated other comprehensive income (loss)			445
Other comprehensive (loss) income, net of tax	(15,489)	10,188	(15,630)	9,341
Ending Balance	(14,878)	(7,792)	(14,878)	(7,792)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			25,139
Other comprehensive loss before reclassifications			(15,917)
Amounts reclassified from accumulated other comprehensive income (loss)
Other comprehensive (loss) income, net of tax			(15,917)
Ending Balance	9,222		9,222
Pension and Other Postretirement Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(24,387)
Other comprehensive loss before reclassifications			(158)
Amounts reclassified from accumulated other comprehensive income (loss)			445
Other comprehensive (loss) income, net of tax			287
Ending Balance	$ (24,100)		$ (24,100)

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Accumulated Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Nov. 28, 2014

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) are as follows.

(In thousands)	Foreign Currency Translation Adjustments			Pensions and Other Postretirement Benefits			Total
Balance at February 28, 2014	$	25,139		$	(24,387	)	$	752
Other comprehensive loss before reclassifications		(15,917	)		(158	)		(16,075	)
Amounts reclassified from accumulated other comprehensive income (loss)		—			445			445
Net current period other comprehensive (loss) income		(15,917	)		287			(15,630	)
Balance at November 28, 2014	$	9,222		$	(24,100	)	$	(14,878	)

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The reclassifications out of accumulated other comprehensive income (loss) are as follows.

(In thousands)	Nine Months Ended November 28, 2014			Consolidated Statement of Income Classification
Amortization of pension and other postretirement benefits items
Actuarial losses, net	$	(1,060	)	Administrative and general expenses
Prior service credit, net		394		Administrative and general expenses
		(666	)
Tax benefit		221		Income tax expense
Total, net of tax		(445	)
Total reclassifications	$	(445	)

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Other Income and Expense (Tables)

9 Months Ended

Nov. 28, 2014

Other Income and Expenses [Abstract]

Other Operating (Income) Expense - Net

Other Operating Income – Net

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Gain adjustment (gain) on sale of AGI In-Store	$	139		$	—		$	(38,663	)	$	—
Clinton Cards secured debt recovery		—			(1,804	)		(3,390	)		(4,232	)
Loss on asset disposal		90			672			15,823			559
Miscellaneous		(928	)		(1,236	)		(265	)		(2,974	)
Other operating income – net	$	(699	)	$	(2,368	)	$	(26,495	)	$	(6,647	)

Other Non-Operating (Income) Expense - Net

Other Non-Operating Expense (Income) - Net

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Impairment of investment in Schurman	$	—		$	1,935		$	—		$	1,935
Gain related to Party City investment		—			—			—			(3,262	)
Foreign exchange loss (gain)		955			(454	)		432			(1,729	)
Rental income		(122	)		(408	)		(877	)		(1,294	)
Miscellaneous		—			(26	)		(101	)		(1	)
Other non-operating expense (income)– net	$	833		$	1,047		$	(546	)	$	(4,351	)

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Retirement Benefits - Components of Periodic Benefit Cost for Corporation's Defined Benefit Pension and Postretirement Benefit Plans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Defined Benefit Pension Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 144	$ 315	$ 433	$ 955
Interest cost	1,833	1,766	5,516	5,244
Expected return on plan assets	(1,617)	(1,577)	(4,868)	(4,718)
Amortization of prior service cost (credit)	582	68	584	170
Amortization of actuarial loss (gain)	710	871	2,136	2,701
Defined benefit plan, net periodic benefit cost, total	1,652	1,443	3,801	4,352
Postretirement Benefits Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	76	48	276	323
Interest cost	559	572	1,909	1,797
Expected return on plan assets	(762)	(775)	(2,162)	(2,300)
Amortization of prior service cost (credit)	(328)	(327)	(978)	(977)
Amortization of actuarial loss (gain)	(626)	(357)	(1,076)	(782)
Defined benefit plan, net periodic benefit cost, total	$ (1,081)	$ (839)	$ (2,031)	$ (1,939)

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Accumulated Other Comprehensive (Loss) Income - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Administrative and general expenses	$ (64,829)	$ (74,814)	$ (200,974)	$ (228,578)
Income (loss) before income tax expense (benefit)	17,522	3,615	107,465	61,843
Income tax expense	(6,261)	(310)	(29,625)	(30,366)
Total reclassifications	11,261	3,305	77,840	31,477
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications			(445)
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Pension and Other Postretirement Benefit Plans [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (loss) before income tax expense (benefit)			(666)
Income tax expense			221
Total reclassifications			(445)
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Pension and Other Postretirement Benefit Plans [Member] | Actuarial Losses, Net [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Administrative and general expenses			(1,060)
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Pension and Other Postretirement Benefit Plans [Member] | Prior Service Credit, Net [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Administrative and general expenses			$ 394

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Customer Allowances and Discounts (Tables)

9 Months Ended

Nov. 28, 2014

Text Block [Abstract]

Allowances and Discounts Trade Accounts Receivable

Trade accounts receivable is reported net of certain allowances and discounts. The most significant of these are as follows:

(In thousands)	November 28, 2014		February 28, 2014		November 29, 2013
Allowance for seasonal sales returns	$	26,651	$	26,613	$	30,028
Allowance for outdated products		9,624		9,692		9,848
Allowance for doubtful accounts		1,752		2,488		3,934
Allowance for marketing funds		33,155		28,277		28,416
Allowance for rebates		31,987		27,369		29,191
	$	103,169	$	94,439	$	101,417

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Inventories (Tables)

9 Months Ended

Nov. 28, 2014

Inventory Disclosure [Abstract]

Schedule of Inventories

(In thousands)	November 28, 2014		February 28, 2014		November 29, 2013
Raw materials	$	11,668	$	20,915	$	22,447
Work in process		6,404		8,093		8,178
Finished products		343,460		287,481		323,204
		361,532		316,489		353,829
Less LIFO reserve		84,132		82,140		85,617
		277,400		234,349		268,212
Display materials and factory supplies		8,790		20,412		23,160
	$	286,190	$	254,761	$	291,372

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Seasonal Nature of Business

9 Months Ended

Nov. 28, 2014

Text Block [Abstract]

Seasonal Nature of Business

Note 2 – Seasonal Nature of Business

A significant portion of the Corporation’s business is seasonal in nature. Therefore, the results of operations for interim periods are not necessarily indicative of the results for the fiscal year taken as a whole.

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Deferred Costs (Tables)

9 Months Ended

Nov. 28, 2014

Text Block [Abstract]

Deferred Costs and Future Payment Commitments

Deferred costs and future payment commitments for retail supply agreements are included in the following financial statement captions:

(In thousands)	November 28, 2014			February 28, 2014			November 29, 2013
Prepaid expenses and other	$	107,729		$	100,282		$	103,173
Other assets		389,533			428,090			301,844
Deferred cost assets		497,262			528,372			405,017
Other current liabilities		(66,007	)		(84,860	)		(64,652	)
Other liabilities		(136,111	)		(149,190	)		(83,100	)
Deferred cost liabilities		(202,118	)		(234,050	)		(147,752	)
Net deferred costs	$	295,144		$	294,322		$	257,265

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Other Income and Expense - Other Operating (Income) Expense - Net (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Other Income and Expenses [Abstract]
Gain adjustment (gain) on sale of AGI In-Store	$ 139		$ (38,663)
Clinton Cards secured debt recovery		(1,804)	(3,390)	(4,232)
Loss on asset disposal	90	672	15,823	559
Miscellaneous	(928)	(1,236)	(265)	(2,974)
Other operating income - net	$ (699)	$ (2,368)	$ (26,495)	$ (6,647)

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Debt - Long-Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Debt Disclosure [Line Items]
Term loan, due 2019	$ 325,000	$ 340,000	$ 350,000
Revolving credit facility, due 2018	48,000	4,500	77,300
Unamortized financing fees	(7,949)	(10,567)	(10,153)
Long-term debt	590,232	559,114	642,328
Long-term debt	590,232	559,114	642,328
Current portion of term loan	(23,800)	(20,000)	(20,000)
Long-term debt, Non current	570,232	539,114	622,328
Term Loan [Member]
Debt Disclosure [Line Items]
Current portion of term loan	(20,000)	(20,000)	(20,000)
7.375% Senior Notes, Due 2021 [Member]
Debt Disclosure [Line Items]
Notes	225,000	225,000	225,000
6.10% Senior Notes, Due 2028 [Member]
Debt Disclosure [Line Items]
Notes	$ 181	$ 181	$ 181

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Consolidated Statement of Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Income Statement [Abstract]
Net sales	$ 508,006	$ 502,107	$ 1,432,370	$ 1,406,319
Other revenue	6,052	5,409	17,697	18,921
Total revenue	514,058	507,516	1,450,067	1,425,240
Material, labor and other production costs	249,518	244,829	630,413	625,340
Selling, distribution and marketing expenses	175,039	177,154	513,132	502,500
Administrative and general expenses	64,829	74,814	200,974	228,578
Other operating income - net	(699)	(2,368)	(26,495)	(6,647)
Operating income	25,371	13,087	132,043	75,469
Interest expense	9,533	8,454	27,782	18,199
Interest income	(2,517)	(29)	(2,658)	(222)
Other non-operating expense (income) - net	833	1,047	(546)	(4,351)
Income before income tax expense	17,522	3,615	107,465	61,843
Income tax expense	6,261	310	29,625	30,366
Net income	$ 11,261	$ 3,305	$ 77,840	$ 31,477

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Customer Allowances and Discounts - Allowances and Discounts Trade Accounts Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances and discounts on trade accounts receivables	$ 103,169	$ 94,439	$ 101,417
Allowance for Seasonal Sales Returns [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances and discounts on trade accounts receivables	26,651	26,613	30,028
Allowance for Outdated Products [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances and discounts on trade accounts receivables	9,624	9,692	9,848
Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances and discounts on trade accounts receivables	1,752	2,488	3,934
Allowance for Marketing Funds [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances and discounts on trade accounts receivables	33,155	28,277	28,416
Allowance for Rebates [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Allowances and discounts on trade accounts receivables	$ 31,987	$ 27,369	$ 29,191

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Consolidated Statement of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013
OPERATING ACTIVITIES:
Net income	$ 77,840	$ 31,477
Adjustments to reconcile net income to cash flows from operating activities:
Stock-based compensation		8,091
Net gain on sale of AGI In-Store	(38,663)
Loss on asset disposal	15,823	559
Depreciation and intangible assets amortization	45,581	40,450
Clinton Cards secured debt recovery	(3,390)	(4,232)
Interest on Clinton Cards secured debt	(2,507)
Provision for doubtful accounts	767	513
Deferred income taxes	(15,716)	10,988
Gain related to Party City investment		(3,262)
Other non-cash charges	5,039	2,090
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Trade accounts receivable	(83,981)	(94,636)
Inventories	(57,791)	(43,588)
Other current assets	(185)	14,817
Receivable from parent and related parties	95
Income taxes	886	6,465
Deferred costs - net	(1,376)	15,021
Accounts payable and other liabilities	(23,688)	(21,935)
Other - net	4,216	4,052
Total Cash Flows From Operating Activities	(77,050)	(33,130)
INVESTING ACTIVITIES:
Property, plant and equipment additions	(70,263)	(45,336)
Proceeds from sale of fixed assets	23,811	1,630
Proceeds from sale of AGI In-Store	73,659
Proceeds from Clinton Cards administration	11,926	4,982
Proceeds related to Party City investment		12,105
Total Cash Flows From Investing Activities	39,133	(26,619)
FINANCING ACTIVITIES:
Proceeds from revolving lines of credit	347,200	311,336
Repayments on revolving lines of credit	(299,900)	(295,236)
Proceeds from term loan		339,250
Repayments on term loan	(15,000)
Issuance, exercise or settlement of share-based payment awards		(4,487)
Tax benefit from share-based payment awards		279
Contribution from parent		240,000
Payments to shareholders to effect merger		(568,303)
Dividends to shareholders	(24,154)	(27,809)
Financing fees	(1,065)	(6,545)
Total Cash Flows From Financing Activities	7,081	(11,515)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(1,696)	980
DECREASE IN CASH AND CASH EQUIVALENTS	(32,532)	(70,284)
Cash and Cash Equivalents at Beginning of Year	63,963	86,059
Cash and Cash Equivalents at End of Period	$ 31,431	$ 15,775

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Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value as of Measurement Date (Detail) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Deferred Compensation Plan Assets [Member]
Assets measured on a recurring basis:
Assets measured on a recurring basis	$ 12,840	$ 12,285	$ 12,129
Deferred Compensation Plan Liabilities [Member]
Liabilities measured on a recurring basis:
Liabilities measured on a recurring basis	13,783	13,230	13,295
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Deferred Compensation Plan Assets [Member]
Assets measured on a recurring basis:
Assets measured on a recurring basis	10,932	10,289	8,814
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Deferred Compensation Plan Liabilities [Member]
Liabilities measured on a recurring basis:
Liabilities measured on a recurring basis	10,932	10,289	8,814
Level 2 [Member] | Deferred Compensation Plan Assets [Member]
Assets measured on a recurring basis:
Assets measured on a recurring basis	1,908	1,996	3,315
Level 2 [Member] | Deferred Compensation Plan Liabilities [Member]
Liabilities measured on a recurring basis:
Liabilities measured on a recurring basis	$ 2,851	$ 2,941	$ 4,481

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Fair Value Measurements (Tables)

9 Months Ended

Nov. 28, 2014

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Measured at Fair Value as of Measurement Date

The following table summarizes the assets and liabilities measured at fair value as of November 28, 2014:

(In thousands)	November 28, 2014		Level 1		Level 2		Level 3
Assets measured on a recurring basis:
Deferred compensation plan assets	$	12,840	$	10,932	$	1,908	$	—
Liabilities measured on a recurring basis:
Deferred compensation plan liabilities	$	13,783	$	10,932	$	2,851	$	—

The following table summarizes the assets and liabilities measured at fair value as of February 28, 2014:

(In thousands)	February 28, 2014		Level 1		Level 2		Level 3
Assets measured on a recurring basis:
Deferred compensation plan assets	$	12,285	$	10,289	$	1,996	$	—
Liabilities measured on a recurring basis:
Deferred compensation plan liabilities	$	13,230	$	10,289	$	2,941	$	—

The following table summarizes the assets and liabilities measured at fair value as of November 29, 2013:

(In thousands)	November 29, 2013		Level 1		Level 2		Level 3
Assets measured on a recurring basis:
Deferred compensation plan assets	$	12,129	$	8,814	$	3,315	$	—
Liabilities measured on a recurring basis:
Deferred compensation plan liabilities	$	13,295	$	8,814	$	4,481	$	—

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Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], Character Property Rights [Member], USD $)	0 Months Ended
	Dec. 18, 2014
Subsequent Event [Member] | Character Property Rights [Member]
Subsequent Event [Line Items]
Purchase these Character Property Rights	$ 37,700,000
Additional consideration payable for resale of property rights	$ 4,000,000

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Income Taxes

9 Months Ended

Nov. 28, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Note 16 – Income Taxes

The Corporation’s provision for income taxes in interim periods is computed by applying its estimated annual effective tax rate against income before income tax expense for the period. In addition, non-recurring or discrete items are recorded during the period in which they occur. The magnitude of the impact that discrete items have on the Corporation’s quarterly effective tax rate is dependent on the level of income in the period. The effective tax rate was 35.7% and 27.6% for the three and nine months ended November 28, 2014, respectively, and 8.6% and 49.1% for the three and nine months ended November 29, 2013, respectively. The lower than statutory rate for the nine months ended November 28, 2014 was due to both the recording of a net $4.1 million federal tax refund and related interest attributable to fiscal 2000 and the error corrections identified in the current year first quarter and recorded in accordance with ASC Topic 250, Accounting Changes and Error Corrections. The net impact of the error corrections was a reduction to income tax expense of $4.1 million. During the first quarter of fiscal 2015, the Corporation identified and corrected errors in the accounting for income taxes that related to the year ended February 28, 2014. These errors primarily related to the Corporation’s failure to consider all sources of available taxable income when assessing the need for a valuation allowance against certain deferred tax assets and the recognition of a liability for an uncertain tax position. These errors were the result of the significant complexity created as a result of the Merger and related transactions in fiscal 2014. See Note 1 for further information. The lower than statutory rate for the three months ended November 29, 2013 was due primarily to the release of reserves upon lapse of the applicable statutes and related to positions that had been effectively settled under audit. The higher than statutory rate for the nine months ended November 29, 2013 was due primarily to the recording of an $8.0 million valuation allowance against certain net operating loss and foreign tax credit carryforwards which the Corporation believed at the time would expire unused as a result of the Merger.

At November 28, 2014, the Corporation had unrecognized tax benefits of $21.6 million that, if recognized, would have a favorable effect on the Corporation’s income tax expense of $19.1 million. During the nine months ended November 28, 2014, the Corporation’s unrecognized tax benefits increased $2.6 million as a result of uncertain tax positions taken in the Corporation’s most recently filed tax returns and error corrections related to the uncertain tax position as discussed above. It is reasonably possible that the Corporation’s unrecognized tax positions as of November 28, 2014 could decrease $3.0 million during the next twelve months due to anticipated settlements and resulting cash payments related to tax years which are open to examination.

The Corporation recognizes interest and penalties accrued on unrecognized tax benefits and refundable income taxes as a component of income tax expense. During the nine months ended November 28, 2014, the Corporation recognized a net benefit of $3.8 million for interest and penalties on unrecognized tax benefits and refundable income taxes. As of November 28, 2014, the total amount of gross accrued interest and penalties related to unrecognized tax benefits less refundable income taxes was a net payable of $0.6 million.

The Corporation is subject to examination by the IRS for tax years 2010 to the present and various U.S. state and local jurisdictions for tax years 2001 to the present. The Corporation is also subject to tax examination in various international tax jurisdictions, including Canada, the United Kingdom, Australia, Italy, Mexico and New Zealand for tax years 2006 to the present.

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Business Segment Information (Tables)

9 Months Ended

Nov. 28, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Total Revenue:
North American Social Expression Products	$	360,704		$	342,185		$	966,751		$	932,166
International Social Expression Products		96,424			94,639			239,914			228,812
Intersegment items		(28,234	)		(24,200	)		(49,533	)		(44,029	)
Net		68,190			70,439			190,381			184,783
Retail Operations		64,398			64,875			213,303			202,325
AG Interactive		15,149			15,935			44,093			45,139
Non-reportable segment		5,617			14,082			35,539			60,827
	$	514,058		$	507,516		$	1,450,067		$	1,425,240

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Segment Earnings (Loss):
North American Social Expression Products	$	37,613		$	22,894		$	134,807		$	124,286
International Social Expression Products		8,547			8,539			12,303			13,278
Intersegment items		(5,362	)		(2,297	)		(7,102	)		(6,022	)
Net		3,185			6,242			5,201			7,256
Retail Operations		(16,578	)		(12,825	)		(35,181	)		(25,261	)
AG Interactive		6,131			3,477			17,507			9,955
Non-reportable segment		5,080			5,710			7,789			23,151
Unallocated
Interest expense		(9,533	)		(8,454	)		(27,782	)		(18,199	)
Profit-sharing plan expense		(2,041	)		(407	)		(7,509	)		(4,872	)
Stock-based compensation expense		—			—			—			(13,596	)
Corporate overhead expense		(6,335	)		(13,022	)		12,633			(40,877	)
		(17,909	)		(21,883	)		(22,658	)		(77,544	)
	$	17,522		$	3,615		$	107,465		$	61,843

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Business Segment Information

9 Months Ended

Nov. 28, 2014

Segment Reporting [Abstract]

Business Segment Information

Note 18 – Business Segment Information

The Corporation has North American Social Expression Products, International Social Expression Products, Retail Operations, AG Interactive and non-reportable segments. The North American Social Expression Products and International Social Expression Products segments primarily design, manufacture and sell greeting cards and other related products through various channels of distribution with mass merchandising as the primary channel. At November 28, 2014, the Retail Operations segment operated 415 card and gift retail stores in the United Kingdom. The stores sell products purchased from the International Social Expression Products segment as well as products purchased from other vendors. AG Interactive distributes social expression products, including electronic greetings and a broad range of graphics and digital services and products, through a variety of electronic channels, including Web sites, Internet portals and electronic mobile devices. The Corporation’s non-reportable operating segment primarily includes licensing activities and the design, manufacture and sale of display fixtures. The display fixtures business was sold on the last day of the second quarter ended August 29, 2014. See Note 4 for further information.

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Total Revenue:
North American Social Expression Products	$	360,704		$	342,185		$	966,751		$	932,166
International Social Expression Products		96,424			94,639			239,914			228,812
Intersegment items		(28,234	)		(24,200	)		(49,533	)		(44,029	)
Net		68,190			70,439			190,381			184,783
Retail Operations		64,398			64,875			213,303			202,325
AG Interactive		15,149			15,935			44,093			45,139
Non-reportable segment		5,617			14,082			35,539			60,827
	$	514,058		$	507,516		$	1,450,067		$	1,425,240

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Segment Earnings (Loss):
North American Social Expression Products	$	37,613		$	22,894		$	134,807		$	124,286
International Social Expression Products		8,547			8,539			12,303			13,278
Intersegment items		(5,362	)		(2,297	)		(7,102	)		(6,022	)
Net		3,185			6,242			5,201			7,256
Retail Operations		(16,578	)		(12,825	)		(35,181	)		(25,261	)
AG Interactive		6,131			3,477			17,507			9,955
Non-reportable segment		5,080			5,710			7,789			23,151
Unallocated
Interest expense		(9,533	)		(8,454	)		(27,782	)		(18,199	)
Profit-sharing plan expense		(2,041	)		(407	)		(7,509	)		(4,872	)
Stock-based compensation expense		—			—			—			(13,596	)
Corporate overhead expense		(6,335	)		(13,022	)		12,633			(40,877	)
		(17,909	)		(21,883	)		(22,658	)		(77,544	)
	$	17,522		$	3,615		$	107,465		$	61,843

For the nine months ended November 29, 2013, stock-based compensation in the table above includes non-cash stock-based compensation prior to the Merger and the impact of the settlement of stock options and the cancellation or modification of outstanding restricted stock units and performance shares concurrent with the Merger, a portion of which was non-cash. There is no stock-based compensation subsequent to the Merger as these plans were converted into cash compensation plans at the time of the Merger.

“Corporate overhead expense” includes costs associated with corporate operations including, among other costs, senior management, corporate finance, legal, and insurance programs.

For the nine months ended November 28, 2014, “Corporate overhead expense” included a net gain on sale of AGI In-Store of $38.7 million. See Note 4 for further information.

For both the three and nine month periods ended November 28, 2014, “Corporate overhead expense” included interest income of $2.5 million related to the Clinton Cards liquidation. See Note 6 for further information.

During the current year second quarter, the Corporation sold its current world headquarters location and incurred a non-cash loss on disposal of $15.5 million, of which $13.3 million was recorded within the North American Social Expression Products segment and $2.2 million was recorded in “Corporate overhead expense”. See Note 4 for further information

For the nine months ended November 29, 2013, “Corporate overhead expense” included non-recurring Merger-related transaction costs of approximately $17.4 million and a gain totaling $3.3 million related to a cash distribution received in connection with the Corporation’s minority investment in the common stock of Party City.

Termination Benefits

Termination benefits are primarily considered part of an ongoing benefit arrangement, accounted for in accordance with ASC Topic 712, “Compensation – Nonretirement Postemployment Benefits,” and are recorded when payment of the benefits is probable and can be reasonably estimated.

The balance of the severance accrual was $4.5 million, $4.0 million and $2.5 million at November 28, 2014, February 28, 2014 and November 29, 2013, respectively. The payments expected within the next twelve months are included in “Accrued liabilities” while the remaining payments beyond the next twelve months are included in “Other liabilities” on the Consolidated Statement of Financial Position.

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Basis of Presentation

9 Months Ended

Nov. 28, 2014

Accounting Policies [Abstract]

Basis of Presentation

Note 1 – Basis of Presentation

The accompanying unaudited consolidated financial statements of American Greetings Corporation and its subsidiaries (the “Corporation”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present financial position, results of operations and cash flows for the periods have been included. On August 9, 2013, the Corporation completed a merger whereby the Corporation was acquired by Century Intermediate Holding Company, a company that was formed by the Chairman of the Board, the Co-Chief Executive Officers of the Corporation and certain other members of the Weiss family and related entities (the “Merger”). As a result of the Merger, the Corporation’s equity is no longer publicly traded. As such, earnings per share information is not required.

The Corporation’s fiscal year ends on February 28 or 29. References to a particular year refer to the fiscal year ending in February of that year. For example, 2014 refers to the year ended February 28, 2014. The Corporation’s subsidiary, AG Retail Cards Limited is consolidated on a one-month lag corresponding with its fiscal year-end of January 31 for 2015.

These interim financial statements should be read in conjunction with the Corporation’s financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended February 28, 2014, from which the Consolidated Statement of Financial Position at February 28, 2014, presented herein, has been derived.

The Corporation’s investments in less than majority-owned companies in which it has the ability to exercise significant influence over the operation and financial policies are accounted for using the equity method except when they qualify as variable interest entities (“VIE”) and the Corporation is the primary beneficiary, in which case, the investments are consolidated in accordance with Accounting Standards Codification (“ASC”) Topic 810 (“ASC 810”), “Consolidation.” Investments that do not meet the above criteria are accounted for under the cost method.

Prior to the fourth quarter of 2014, the Corporation held an approximate 15% equity interest in Schurman Fine Papers (“Schurman”) which is a VIE as defined in ASC 810. Schurman owns and operates specialty card and gift retail stores in the United States and Canada. The stores are primarily located in malls and strip shopping centers. During the third quarter of 2014, the Corporation determined that, due to continued operating losses, shareholders’ deficit and lack of return on the Corporation’s investment, the cost method investment was permanently impaired. As a result, the Corporation recorded an impairment charge in the amount of $1.9 million which reduced the carrying amount of the investment to zero. In addition, during the fourth quarter of 2014, in order to mitigate ongoing risks to the Corporation that may arise from retaining an equity interest in Schurman, the Corporation transferred to Schurman its 15% equity interest and, as a result, no longer has an equity interest in Schurman.

The Corporation provides Schurman limited credit support through the provision of a liquidity guaranty (“Liquidity Guaranty”) in favor of the lenders under Schurman’s senior revolving credit facility (the “Senior Credit Facility”). Pursuant to the terms of the Liquidity Guaranty, the Corporation has guaranteed the repayment of up to $10.0 million of Schurman’s borrowings under the Senior Credit Facility to help ensure that Schurman has sufficient borrowing availability under this facility. The Liquidity Guaranty is required to be backed by a letter of credit for the term of the Liquidity Guaranty, which expires in July 2016. The Corporation’s obligations under the Liquidity Guaranty generally may not be triggered unless Schurman’s lenders under its Senior Credit Facility have substantially completed the liquidation of the collateral under Schurman’s Senior Credit Facility, or 91 days after the liquidation is started, whichever is earlier, and will be limited to the deficiency, if any, between the amount owed and the amount collected in connection with the liquidation. There was no triggering event or liquidation of collateral as of November 28, 2014 requiring the use of the Liquidity Guaranty.

During the current quarter, the Corporation assessed the variable interests in Schurman and determined that a third party holder of variable interests has the controlling financial interest in the VIE and thus, the third party, not the Corporation, is the primary beneficiary. In completing this assessment, the Corporation identified the activities that it considers most significant to the future economic success of the VIE and determined that it does not have the power to direct those activities. As such, Schurman is not consolidated in the Corporation’s results. The Corporation’s maximum exposure to loss as it relates to Schurman as of November 28, 2014 includes:

• Liquidity Guaranty of Schurman’s indebtedness of $10.0 million;

• normal course of business trade and other receivables due from Schurman of $33.8 million, the balance of which fluctuates throughout the year due to the seasonal nature of the business; and

• the retail store operating leases currently subleased to Schurman, the aggregate lease payments for the remaining life of which was $5.1 million, $7.1 million and $8.5 million as of November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

Correction of Immaterial Errors

During the first quarter of 2015, the Corporation identified and corrected errors in the accounting for income taxes that related to the year ended February 28, 2014. These errors primarily related to the Corporation’s failure to consider all sources of available taxable income when assessing the need for a valuation allowance against certain deferred tax assets and the recognition of a liability for an uncertain tax position. These errors were the result of the significant complexity created as a result of the Merger and related transactions. The impact of correcting these items had a non-cash effect, decreasing tax expense and increasing net income by $4.1 million. Based on its evaluation as discussed more fully below, the Corporation concluded that the corrections to the financial statements were immaterial to its financial results for the year ended February 28, 2014 and its expected financial results for the year ending February 28, 2015.

In accordance with ASC Topic 250, Accounting Changes and Error Corrections, the Corporation evaluated the effects of the errors on its financial statements for the year ended February 28, 2014 and the expected full year financial results for the year ending February 28, 2015 and concluded that the results of operations for these periods are not materially misstated. In reaching its conclusion, the Corporation considered numerous qualitative and quantitative factors, including but not limited to the following:

• In evaluating the financial and operational performance, the Corporation’s shareholder and debt holders focus on performance metrics such as earnings before interest, taxes, depreciation and amortization (“EBITDA”), operating income and cash flows from operations, none of which were impacted by the correction of the errors,

• The numeric impact of the error on the Corporation’s results of operations, including the net dollar impact, the impact as a percentage of period earnings, the impact on financial trends, and the impact on non-GAAP measures such as adjusted operating income the Corporation presents in quarterly public debt holder conference calls, which were deemed immaterial, particularly in light of the Corporation’s stakeholders’ focus on EBITDA, operating income and cash flows from operations, and

• The absence of any impact on the Corporation’s compliance with its debt covenants, management compensation or segment reporting.

Based on its evaluation, the Corporation concluded that it is not probable that the judgment of a reasonable person relying on the financial statements would have been changed or influenced by the error or correction of the error.

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Consolidated Statement of Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 11,261	$ 3,305	$ 77,840	$ 31,477
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(15,662)	9,996	(15,917)	8,336
Pension and postretirement benefit adjustments	173	192	287	1,009
Unrealized loss on securities				(4)
Other comprehensive (loss) income, net of tax	(15,489)	10,188	(15,630)	9,341
Comprehensive (loss) income	$ (4,228)	$ 13,493	$ 62,210	$ 40,818

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Other Liabilities

9 Months Ended

Nov. 28, 2014

Other Liabilities Disclosure [Abstract]

Other Liabilities

Note 11 – Other Liabilities

Included in “Other liabilities” on the Consolidated Statement of Financial Position is a deferred lease obligation related to an operating lease with H L & L Property Company (“H L & L”), for a building that will function as the future American Greetings world headquarters. The building is currently being constructed and expected to be available for occupancy in calendar year 2016.

H L & L is an indirect affiliate of American Greetings as it is indirectly owned by members of the Weiss family. Due to, among other things, the Corporation’s involvement in the construction of the building, the Corporation is required to be treated, for accounting purposes only, as the “deemed owner” of the new world headquarters building during the construction period. Accordingly, the Corporation has recorded an asset and associated offsetting liability during the construction of the building, even though the Corporation does not own the asset and is not the obligor on the corresponding construction debt. As of November 28, 2014, the asset and corresponding liability was $19.0 million.

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Document and Entity Information	9 Months Ended
	Nov. 28, 2014	Jan. 09, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 28, 2014
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	AM
Entity Registrant Name	AMERICAN GREETINGS CORP
Entity Central Index Key	0000005133
Current Fiscal Year End Date	--02-28
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		100

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Debt

9 Months Ended

Nov. 28, 2014

Debt Disclosure [Abstract]

Debt

Note 12 – Debt

Debt due within one year was as follows:

(In thousands)	November 28, 2014		February 28, 2014		November 29, 2013
Current portion of term loan	$	20,000	$	20,000	$	20,000
Accounts receivable facility		3,800		—		—
	$	23,800	$	20,000	$	20,000

Long-term debt and their related calendar year due dates were as follows:

(In thousands)	November 28, 2014			February 28, 2014			November 29, 2013
Term loan, due 2019	$	325,000		$	340,000		$	350,000
7.375% senior notes, due 2021		225,000			225,000			225,000
Revolving credit facility, due 2018		48,000			4,500			77,300
6.10% senior notes, due 2028		181			181			181
Unamortized financing fees		(7,949	)		(10,567	)		(10,153	)
		590,232			559,114			642,328
Current portion of term loan		(20,000	)		(20,000	)		(20,000	)
	$	570,232		$	539,114		$	622,328

At November 28, 2014, the balances outstanding on the term loan facility, the revolving credit facility and accounts receivable facility bear interest at a rate of approximately 2.7%, 2.7% and 0.6%, respectively. The revolving credit facility and accounts receivable facility provide the Corporation with funding of up to $250 million and $50 million, respectively. Outstanding letters of credit, which reduce the total credit available under the revolving credit and the accounts receivable facilities, totaled $27.7 million at November 28, 2014.

The total fair value of the Corporation’s publicly traded debt, which was considered a Level 1 valuation as it was based on quoted market prices, was $238.0 million (at a carrying value of $225.2 million), $234.7 million (at a carrying value of $225.2 million) and $228.8 million (at a carrying value of $225.2 million) at November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

The total fair value of the Corporation’s non-publicly traded debt, which was considered a Level 2 valuation as it was based on comparable privately traded debt prices, was $369.6 million (at a principal carrying value of $373.0 million), $344.5 million (at a principal carrying value of $344.5 million), and $427.3 million (at a principal carrying value of $427.3 million) at November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

On September 5, 2014, the Corporation amended the Credit Agreement which provides for the term loan facility and revolving credit facility. The amendment modifies the Credit Agreement to, among other things: (i) reduce the interest rates applicable to the term loan and revolving loans, (ii) eliminate the LIBOR floor interest rate used in the determination of interest charged on Eurodollar revolving loans, (iii) reduce the commitment fee applicable to unused revolving commitments and (iv) reset the usage term of the general restricted payment basket with effect from September 5, 2014. As a result of this amendment and certain changes in the syndicated lending group, the Corporation expensed $1.9 million of unamortized financing fees and capitalized $1.1 million of new fees in the quarter ended November 28, 2014.

On August 8, 2014, the Corporation amended its accounts receivable facility. The amendment modified the accounts receivable facility to, among other things: (i) extend the scheduled termination date to August 7, 2015 and (ii) reduce the fees associated with this facility.

At November 28, 2014, the Corporation was in compliance with the financial covenants under its borrowing agreements.

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Consolidated Statement of Financial Position (USD $) In Thousands, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Current assets
Cash and cash equivalents	$ 31,431	$ 63,963	$ 15,775
Trade accounts receivable, net	173,691	97,925	201,392
Inventories	286,190	254,761	291,372
Deferred and refundable income taxes	46,247	46,996	47,252
Prepaid expenses and other	144,086	146,164	151,277
Total current assets	681,645	609,809	707,068
Other assets	501,392	542,766	421,326
Deferred and refundable income taxes	91,905	74,103	98,646
Property, plant and equipment - at cost	810,526	855,141	848,233
Less accumulated depreciation	443,761	479,376	468,015
Property, plant and equipment - net	366,765	375,765	380,218
Total assets	1,641,707	1,602,443	1,607,258
Current liabilities
Debt due within one year	23,800	20,000	20,000
Accounts payable	122,637	120,568	124,163
Accrued liabilities	60,125	68,838	64,792
Accrued compensation and benefits	63,596	74,017	63,910
Income taxes payable	21,835	14,866	2,745
Deferred revenue	22,961	31,288	25,438
Other current liabilities	67,450	85,785	68,408
Total current liabilities	382,404	415,362	369,456
Long-term debt	570,232	539,114	622,328
Other liabilities	311,265	301,815	231,585
Deferred income taxes and noncurrent income taxes payable	12,303	18,705	19,921
Shareholder's equity
Common shares - par value $.01 per share: 100 shares issued and outstanding	0	0	0
Capital in excess of par value	240,000	240,000	240,000
Accumulated other comprehensive (loss) income	(14,878)	752	(7,792)
Retained earnings	140,381	86,695	131,760
Total shareholder's equity	365,503	327,447	363,968
Total liabilities and stockholders equity	$ 1,641,707	$ 1,602,443	$ 1,607,258

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Other Income and Expense

9 Months Ended

Nov. 28, 2014

Other Income and Expenses [Abstract]

Other Income and Expense

Note 6 – Other Income and Expense

Other Operating Income – Net

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Gain adjustment (gain) on sale of AGI In-Store	$	139		$	—		$	(38,663	)	$	—
Clinton Cards secured debt recovery		—			(1,804	)		(3,390	)		(4,232	)
Loss on asset disposal		90			672			15,823			559
Miscellaneous		(928	)		(1,236	)		(265	)		(2,974	)
Other operating income – net	$	(699	)	$	(2,368	)	$	(26,495	)	$	(6,647	)

During the nine months ended November 28, 2014, the Corporation recognized a net gain of $38.7 million from the sale of AGI In-Store, which included a second quarter gain of $38.8 million and an adjustment to the gain in the third quarter of $0.1 million. The cash proceeds of $73.7 million from the sale are included in “Proceeds from sale of AGI In-Store” on the Consolidated Statement of Cash Flows. See Note 4 for further information.

“Loss on asset disposal” during the nine month period ended November 28, 2014 included a non-cash loss of $15.5 million related to the sale of the Corporation’s current world headquarters location during the current year second quarter. The cash proceeds of $13.5 million are included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows. See Note 4 for further information.

During the first quarter of 2015, the Corporation recorded an impairment recovery of $3.4 million related to the senior secured debt of Clinton Cards that the Corporation acquired in May 2012 and subsequently impaired. This recovery, which was based on current estimated recovery information provided by the bankruptcy administrators of the Clinton Cards liquidation (“Administrators”), represented the final amount of a full recovery of the prior impairment. During the third quarter of 2015, as part of the liquidation process, the Corporation received a distribution of $11.3 million which included the full recovery of the remaining senior secured debt claim as well as accumulated interest that was previously not expected to be received. The interest of $2.5 million is included in “Interest income” on the Consolidated Statement of Income.

During the three and nine month periods ended November 29, 2013 the impairment of the secured debt of Clinton Cards, based on updated recovery information provided by the Administrators, was also adjusted, resulting in a gain of $1.8 million and $4.2 million, respectively.

Other Non-Operating Expense (Income) - Net

	Three Months Ended						Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013			November 28, 2014			November 29, 2013
Impairment of investment in Schurman	$	—		$	1,935		$	—		$	1,935
Gain related to Party City investment		—			—			—			(3,262	)
Foreign exchange loss (gain)		955			(454	)		432			(1,729	)
Rental income		(122	)		(408	)		(877	)		(1,294	)
Miscellaneous		—			(26	)		(101	)		(1	)
Other non-operating expense (income)– net	$	833		$	1,047		$	(546	)	$	(4,351	)

During the three months ended November 29, 2013, the Corporation recognized an impairment loss of $1.9 million associated with its investment in Schurman. See Note 1 for further information.

In July 2013, the Corporation recognized a gain totaling $3.3 million related to a cash distribution on its minority investment in the common stock of Party City Holdings, Inc. (“Party City”).

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Royalty Revenue and Related Expenses

9 Months Ended

Nov. 28, 2014

Text Block [Abstract]

Royalty Revenue and Related Expenses

Note 5 – Royalty Revenue and Related Expenses

The Corporation has agreements for licensing the Care Bears and Strawberry Shortcake characters and other intellectual property. These license agreements provide for royalty revenue to the Corporation, which is recorded in “Other revenue” on the Consolidated Statement of Income. These license agreements may include the receipt of upfront advances, which are recorded as deferred revenue and earned during the period of the agreement. Revenues and expenses associated with the servicing of these agreements, primarily relating to the licensing activities included in the non-reportable segment, are summarized as follows:

	Three Months Ended					Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013		November 28, 2014		November 29, 2013
Royalty revenue	$	5,666		$	5,046	$	16,527	$	17,964
Royalty expenses
Material, labor and other production (credit) costs	$	(1,527	)	$	1,954	$	1,508	$	5,453
Selling, distribution and marketing expenses		1,562			1,431		4,837		4,615
Administrative and general expenses		447			421		1,228		1,322
	$	482		$	3,806	$	7,573	$	11,390

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Related Party Information

9 Months Ended

Nov. 28, 2014

Related Party Transactions [Abstract]

Related Party Information

Note 17 – Related Party Information

World headquarters relocation

In May 2011, the Corporation announced that it will be relocating its world headquarters to a new location in the City of Westlake, Ohio, in a mixed-use development known as Crocker Park (the “Crocker Park Development”), which offers a vibrant urban setting, with retail stores and restaurants, offices and apartments. After putting the project on hold pending the outcome of the going private transaction, the Corporation announced plans in October 2013 to resume the project and, on March 26, 2014, the Corporation purchased from Crocker Park, LLC, the owner of the Crocker Park Development, 14.48 acres of land at the south end of the Crocker Park Development (the “Crocker Park Site”) on which the new world headquarters will be built. The purchase price for the land was $7.4 million (based on a per acre price of $510 thousand). Morry Weiss, the Chairman of the board of the Corporation, Zev Weiss and Jeffrey Weiss, directors and the Co-Chief Executive Officers of the Corporation, and Gary and Elie Weiss, directors and non-executive officers of the Corporation, together with members of their family (collectively, the “Weiss Family”), indirectly own a minority stake in Crocker Park, LLC through their indirect ownership of approximately 37% of the membership interests in Crocker Park, LLC. In addition, Morry Weiss and other members of the Weiss Family have guaranteed certain of Crocker Park, LLC’s obligations, and are expected to guarantee additional obligations of Crocker Park, LLC, incurred in connection with the Crocker Park Development. The authority to conduct, manage and control the business of Crocker Park, LLC, including operating the Crocker Park Development and the decision whether to sell the Crocker Park Site to American Greetings, was reserved to the manager of Crocker Park, LLC, who is not an affiliate of the Weiss Family and that is an affiliate of Stark Enterprises, Inc.

The Corporation is leasing a portion of the Crocker Park Site to H L & L, which will construct the new world headquarters on the Crocker Park Site and sublease the new world headquarters back to the Corporation. The Corporation has also entered into an operating lease with H L & L for the use of the new world headquarters building, anticipated to be available for occupancy in calendar year 2016. The initial lease term is fifteen years and will begin upon occupancy. The annual rent is expected to be approximately $9.5 million. See Note 11 for further information. Please refer to the Corporation’s Annual Report on Form 10-K for the fiscal year ended February 28, 2014 for a description of the transactions associated with the world headquarters relocation.

Transactions with Parent Companies and Other Affiliated Companies

From time to time employees of the Corporation may provide services to its parent companies as well as companies that are owned or controlled by members of the Weiss family, in each case provided that such services do not interfere with the Corporation’s employees’ ability to perform services on its behalf. When providing such services, the affiliated companies reimburse the Corporation for such services, based on the costs of employing the individual (including salary and benefits) and the amount of time spent by such employee in providing services to the affiliated company.

During the nine months ended November 28, 2014, the Corporation paid cash dividends in the aggregate amount of $24.2 million to Century Intermediate Holding Company, its parent and sole shareholder, $14.3 million of which was for the purpose of paying interest on the $285.0 million aggregate principal amount 9.75%/10.50% Senior PIK Toggle Notes due 2019, which were issued by Century Intermediate Holding Company 2, an indirect parent of American Greetings. In addition, H L & L paid $9.9 million to the Corporation to acquire certain assets previously purchased by the Corporation related to the new world headquarters project, which is included in “Proceeds from sale of fixed assets” on the Consolidated Statement of Cash Flows.

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Retirement Benefits

9 Months Ended

Nov. 28, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement Benefits

Note 13 – Retirement Benefits

The components of periodic benefit cost for the Corporation’s defined benefit pension and postretirement benefits plans are as follows:

	Defined Benefit Pension Plans
	Three Months Ended						Nine Months Ended
	November 28,			November 29,			November 28,			November 29,
(In thousands)	2014			2013			2014			2013
Service cost	$	144		$	315		$	433		$	955
Interest cost		1,833			1,766			5,516			5,244
Expected return on plan assets		(1,617	)		(1,577	)		(4,868	)		(4,718	)
Amortization of prior service cost		582			68			584			170
Amortization of actuarial loss		710			871			2,136			2,701
	$	1,652		$	1,443		$	3,801		$	4,352

	Postretirement Benefits
	Three Months Ended						Nine Months Ended
	November 28,			November 29,			November 28,			November 29,
(In thousands)	2014			2013			2014			2013
Service cost	$	76		$	48		$	276		$	323
Interest cost		559			572			1,909			1,797
Expected return on plan assets		(762	)		(775	)		(2,162	)		(2,300	)
Amortization of prior service credit		(328	)		(327	)		(978	)		(977	)
Amortization of actuarial gain		(626	)		(357	)		(1,076	)		(782	)
	$	(1,081	)	$	(839	)	$	(2,031	)	$	(1,939	)

The Corporation has a discretionary profit-sharing plan with a 401(k) provision covering most of its United States employees. The profit-sharing plan expense for the nine months ended November 28, 2014 was $7.5 million, compared to $4.9 million in the prior year period. The Corporation also matches a portion of 401(k) employee contributions. The expenses recognized for the three and nine month periods ended November 28, 2014 were $0.9 million and $3.6 million ($1.3 million and $4.0 million for the three and nine month periods ended November 29, 2013), respectively. The profit-sharing plan and 401(k) matching expenses for the nine month periods are estimates as actual contributions are determined after fiscal year-end.

At November 28, 2014, February 28, 2014 and November 29, 2013, the liability for postretirement benefits other than pensions was $20.6 million, $17.9 million and $18.6 million, respectively, and is included in “Other liabilities” on the Consolidated Statement of Financial Position. At November 28, 2014, February 28, 2014 and November 29, 2013, the long-term liability for pension benefits was $74.8 million, $77.3 million and $81.0 million, respectively, and is included in “Other liabilities” on the Consolidated Statement of Financial Position.

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Inventories

9 Months Ended

Nov. 28, 2014

Inventory Disclosure [Abstract]

Inventories

Note 9 – Inventories

(In thousands)	November 28, 2014		February 28, 2014		November 29, 2013
Raw materials	$	11,668	$	20,915	$	22,447
Work in process		6,404		8,093		8,178
Finished products		343,460		287,481		323,204
		361,532		316,489		353,829
Less LIFO reserve		84,132		82,140		85,617
		277,400		234,349		268,212
Display materials and factory supplies		8,790		20,412		23,160
	$	286,190	$	254,761	$	291,372

The valuation of inventory under the Last-In, First-Out (“LIFO”) method is made at the end of each fiscal year based on inventory levels and costs at that time. Accordingly, interim LIFO calculations, by necessity, are based on estimates of expected fiscal year-end inventory levels and costs, and are subject to final fiscal year-end LIFO inventory calculations.

Inventory held on location for retailers with scan-based trading arrangements, which is included in finished products, totaled $88.5 million, $66.8 million and $82.0 million as of November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

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Contingency - Additional Information (Detail)	9 Months Ended
	Nov. 28, 2014
Commitments and Contingencies Disclosure [Abstract]
Contingencies description	In accordance with ASC Topic 450, "Contingencies," the Corporation accrues for these contingencies by a charge to income when it is both probable that one or more future events will occur confirming the fact of a loss and the amount of the loss can be reasonably estimated.

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Accumulated Other Comprehensive (Loss) Income

9 Months Ended

Nov. 28, 2014

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

Note 7 – Accumulated Other Comprehensive (Loss) Income

The changes in accumulated other comprehensive income (loss) are as follows.

(In thousands)	Foreign Currency Translation Adjustments			Pensions and Other Postretirement Benefits			Total
Balance at February 28, 2014	$	25,139		$	(24,387	)	$	752
Other comprehensive loss before reclassifications		(15,917	)		(158	)		(16,075	)
Amounts reclassified from accumulated other comprehensive income (loss)		—			445			445
Net current period other comprehensive (loss) income		(15,917	)		287			(15,630	)
Balance at November 28, 2014	$	9,222		$	(24,100	)	$	(14,878	)

The reclassifications out of accumulated other comprehensive income (loss) are as follows.

(In thousands)	Nine Months Ended November 28, 2014			Consolidated Statement of Income Classification
Amortization of pension and other postretirement benefits items
Actuarial losses, net	$	(1,060	)	Administrative and general expenses
Prior service credit, net		394		Administrative and general expenses
		(666	)
Tax benefit		221		Income tax expense
Total, net of tax		(445	)
Total reclassifications	$	(445	)

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Customer Allowances and Discounts

9 Months Ended

Nov. 28, 2014

Text Block [Abstract]

Customer Allowances and Discounts

Note 8 – Customer Allowances and Discounts

Trade accounts receivable is reported net of certain allowances and discounts. The most significant of these are as follows:

(In thousands)	November 28, 2014		February 28, 2014		November 29, 2013
Allowance for seasonal sales returns	$	26,651	$	26,613	$	30,028
Allowance for outdated products		9,624		9,692		9,848
Allowance for doubtful accounts		1,752		2,488		3,934
Allowance for marketing funds		33,155		28,277		28,416
Allowance for rebates		31,987		27,369		29,191
	$	103,169	$	94,439	$	101,417

Certain customer allowances and discounts are settled in cash. These accounts, primarily rebates, which are classified as “Accrued liabilities” on the Consolidated Statement of Financial Position, totaled $16.1 million, $16.5 million and $15.4 million as of November 28, 2014, February 28, 2014 and November 29, 2013, respectively.

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Deferred Costs

9 Months Ended

Nov. 28, 2014

Text Block [Abstract]

Deferred Costs

Note 10 – Deferred Costs

Deferred costs and future payment commitments for retail supply agreements are included in the following financial statement captions:

(In thousands)	November 28, 2014			February 28, 2014			November 29, 2013
Prepaid expenses and other	$	107,729		$	100,282		$	103,173
Other assets		389,533			428,090			301,844
Deferred cost assets		497,262			528,372			405,017
Other current liabilities		(66,007	)		(84,860	)		(64,652	)
Other liabilities		(136,111	)		(149,190	)		(83,100	)
Deferred cost liabilities		(202,118	)		(234,050	)		(147,752	)
Net deferred costs	$	295,144		$	294,322		$	257,265

The Corporation maintains an allowance for deferred costs related to supply agreements of $2.6 million, $4.1 million and $5.6 million at November 28, 2014, February 28, 2014 and November 29, 2013, respectively. This allowance is included in “Other assets” on the Consolidated Statement of Financial Position.

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Business Segment Information - Schedule of Segment Reporting Information by Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013
Segment Reporting Information [Line Items]
Total Revenue	$ 514,058	$ 507,516	$ 1,450,067	$ 1,425,240
Segment Earnings (Loss)	17,522	3,615	107,465	61,843
Interest expense	(9,533)	(8,454)	(27,782)	(18,199)
Intersegment Items [Member]
Segment Reporting Information [Line Items]
Total Revenue	(28,234)	(24,200)	(49,533)	(44,029)
Segment Earnings (Loss)	(5,362)	(2,297)	(7,102)	(6,022)
Unallocated Segment [Member]
Segment Reporting Information [Line Items]
Interest expense	(9,533)	(8,454)	(27,782)	(18,199)
Profit-sharing plan expense	(2,041)	(407)	(7,509)	(4,872)
Stock-based compensation expense				(13,596)
Corporate overhead expense	(6,335)	(13,022)	12,633	(40,877)
Unallocated expense, total	(17,909)	(21,883)	(22,658)	(77,544)
North American Social Expression Products [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	360,704	342,185	966,751	932,166
Segment Earnings (Loss)	37,613	22,894	134,807	124,286
International Social Expression Products [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	96,424	94,639	239,914	228,812
Segment Earnings (Loss)	8,547	8,539	12,303	13,278
International Social Expression Products and Intersegment Items, Net [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	68,190	70,439	190,381	184,783
Segment Earnings (Loss)	3,185	6,242	5,201	7,256
Retail Operations [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	64,398	64,875	213,303	202,325
Segment Earnings (Loss)	(16,578)	(12,825)	(35,181)	(25,261)
AG Interactive [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	15,149	15,935	44,093	45,139
Segment Earnings (Loss)	6,131	3,477	17,507	9,955
Non-Reportable Segments [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenue	5,617	14,082	35,539	60,827
Segment Earnings (Loss)	$ 5,080	$ 5,710	$ 7,789	$ 23,151

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Business Segment Information - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended		3 Months Ended
	Jul. 31, 2013	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013	Aug. 29, 2014	Feb. 28, 2014
Segment Reporting Information [Line Items]
Net gain on sale of the AGI In-Store business		$ (139,000)		$ 38,663,000
Interest income		2,517,000	29,000	2,658,000	222,000
Non-cash loss on disposal of fixed assets		90,000	672,000	15,823,000	559,000
Gain related to Party City investment	3,300,000				3,262,000
Compensation termination benefits description				Termination benefits are primarily considered part of an ongoing benefit arrangement, accounted for in accordance with ASC Topic 712, "Compensation - Nonretirement Postemployment Benefits," and are recorded when payment of the benefits is probable and can be reasonably estimated.
Severance accrual		4,500,000	2,500,000	4,500,000	2,500,000		4,000,000
Clinton Cards [Member]
Segment Reporting Information [Line Items]
Interest income		2,500,000
WHQ Location [Member]
Segment Reporting Information [Line Items]
Non-cash loss on disposal of fixed assets				15,500,000		15,500,000
Unallocated Segment [Member] | Clinton Cards [Member]
Segment Reporting Information [Line Items]
Interest income		2,500,000		2,500,000
Unallocated Segment [Member] | AGI In-Store [Member]
Segment Reporting Information [Line Items]
Net gain on sale of the AGI In-Store business				38,700,000
Unallocated Segment [Member] | WHQ Location [Member]
Segment Reporting Information [Line Items]
Non-cash loss on disposal of fixed assets				2,200,000
Retail Operations [Member] | United Kingdom [Member]
Segment Reporting Information [Line Items]
Number of card and gift retail stores		415		415
North American Social Expression Products [Member] | WHQ Location [Member]
Segment Reporting Information [Line Items]
Non-cash loss on disposal of fixed assets				13,300,000
Unallocated Segment [Member]
Segment Reporting Information [Line Items]
Non-recurring merger-related transaction costs					17,400,000
Gain related to Party City investment					$ 3,300,000

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Retirement Benefits (Tables)

9 Months Ended

Nov. 28, 2014

Compensation and Retirement Disclosure [Abstract]

Components of Periodic Benefit Cost for Corporation's Defined Benefit Pension and Postretirement Benefits Plans

The components of periodic benefit cost for the Corporation’s defined benefit pension and postretirement benefits plans are as follows:

	Defined Benefit Pension Plans
	Three Months Ended						Nine Months Ended
	November 28,			November 29,			November 28,			November 29,
(In thousands)	2014			2013			2014			2013
Service cost	$	144		$	315		$	433		$	955
Interest cost		1,833			1,766			5,516			5,244
Expected return on plan assets		(1,617	)		(1,577	)		(4,868	)		(4,718	)
Amortization of prior service cost		582			68			584			170
Amortization of actuarial loss		710			871			2,136			2,701
	$	1,652		$	1,443		$	3,801		$	4,352

	Postretirement Benefits
	Three Months Ended						Nine Months Ended
	November 28,			November 29,			November 28,			November 29,
(In thousands)	2014			2013			2014			2013
Service cost	$	76		$	48		$	276		$	323
Interest cost		559			572			1,909			1,797
Expected return on plan assets		(762	)		(775	)		(2,162	)		(2,300	)
Amortization of prior service credit		(328	)		(327	)		(978	)		(977	)
Amortization of actuarial gain		(626	)		(357	)		(1,076	)		(782	)
	$	(1,081	)	$	(839	)	$	(2,031	)	$	(1,939	)

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Other Liabilities - Additional Information (Detail) (WHQ Development [Member], USD $) In Millions, unless otherwise specified	9 Months Ended
	Nov. 28, 2014
WHQ Development [Member]
Schedule Of Other Liabilities [Line Items]
Anticipated year of completion for new world headquarters building	2016
New World Headquarters construction costs to date	$ 19.0
Offsetting liability	$ 19.0

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Contingency

9 Months Ended

Nov. 28, 2014

Commitments and Contingencies Disclosure [Abstract]

Contingency

Note 15 – Contingency

The Corporation is presently involved in various judicial, administrative, regulatory and arbitration proceedings concerning matters arising in the ordinary course of business, including but not limited to, employment, commercial disputes and other contractual matters, one of which is described below. These matters are inherently subject to many uncertainties regarding the possibility of a loss to the Corporation. These uncertainties will ultimately be resolved when one or more future events occur or fail to occur, confirming the incurrence of a liability or reduction of a liability. In accordance with ASC Topic 450, “Contingencies,” the Corporation accrues for these contingencies by a charge to income when it is both probable that one or more future events will occur confirming the fact of a loss and the amount of the loss can be reasonably estimated. Due to this uncertainty, the actual amount of any loss may ultimately prove to be larger or smaller than the amounts reflected in the Corporation’s Consolidated Financial Statements. Some of these proceedings are at preliminary stages and some of these cases seek an indeterminate amount of damages.

On June 4, 2014, Al Smith and Jeffrey Hourcade, former fixture installation crew members for special projects, individually and on behalf of those similarly situated, filed a putative class action lawsuit against American Greetings Corporation in the U.S. District Court for the Northern District of California, San Francisco Division. Plaintiffs claim that the Corporation violated certain rules under the Fair Labor Standards Act and California law, including the California Labor Code, Industrial Welfare Commission Wage Orders. For themselves and the proposed classes, plaintiffs seek an unspecified amount of general and special damages, including but not limited to minimum wages, agreed upon wages and overtime wages, statutory liquidated damages, statutory penalties (including penalties under the California Labor Code Private Attorney General Act of 2004 (“PAGA”), unpaid benefits, reasonable attorneys’ fees and costs, and interest). In addition, plaintiffs request disgorgement of all funds the Corporation acquired by means of any act or practice that constitutes unfair competition and restoration of such funds to the plaintiffs and the proposed classes. On November 6, 2014, plaintiffs filed a Second Amended Complaint to add claims for reimbursement of business expenses and failure to provide meal periods in violation of California Law and on December 12, 2014, amended their PAGA notice to include the newly added claims.

Although the proceeding is in the early stages and there are significant factual issues to be resolved, management does not believe, based on currently available information, that the outcome of this proceeding will have a material adverse effect on the Corporation’s financial condition, although the outcome could be material to the Corporation’s operating results for any particular period, depending, in part, upon the operating results for such period. Please refer to Item 1. Legal Proceedings included in Part II – Other Information of this Form 10-Q for a description of the Smith and Hourcade lawsuit.

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Recent Accounting Pronouncements (Policies)

9 Months Ended

Nov. 28, 2014

Accounting Changes and Error Corrections [Abstract]

Issued Accounting Standards Update of Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern

In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern”. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Corporation does not expect that the adoption of this standard will have a material effect on its financial statements.

Issued Accounting Standards Update of Revenue from Contracts with Customers

In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers”. The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016 for public companies. Early adoption is not permitted. The standard permits the use of either a retrospective or modified retrospective (cumulative effect) transition method. The Corporation is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements nor decided upon the method of adoption.

Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity

In April 2014, the FASB issued ASU No. 2014-08 (“ASU 2014-08”), “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. Under the new guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results and is disposed of or classified as held for sale. The standard also introduces several new disclosures. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. ASU 2014-08 is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. The Corporation adopted ASU 2014-08 on August 29, 2014 in connection with the disposition of A.G. Industries, Inc. See Note 4 for further information.

Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists

In July 2013, the FASB issued ASU No. 2013-11 (“ASU 2013-11”), “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and not combined with deferred tax assets. ASU 2013-11 is effective for annual and interim periods beginning after December 15, 2013 for public companies, with early adoption permitted. The Corporation adopted ASU 2013-11 on March 1, 2014.

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Deferred Costs - Deferred Costs and Future Payment Commitments (Detail) (USD $) In Thousands, unless otherwise specified	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Deferred Costs [Abstract]
Prepaid expenses and other	$ 107,729	$ 100,282	$ 103,173
Other assets	389,533	428,090	301,844
Deferred cost assets	497,262	528,372	405,017
Other current liabilities	(66,007)	(84,860)	(64,652)
Other liabilities	(136,111)	(149,190)	(83,100)
Deferred cost liabilities	(202,118)	(234,050)	(147,752)
Net deferred costs	$ 295,144	$ 294,322	$ 257,265

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Other Income and Expense - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended		3 Months Ended		6 Months Ended
	Jul. 31, 2013	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013	May 30, 2014	Aug. 29, 2014	Aug. 29, 2014
Other Income And Expense [Line Items]
Net gain on sale of the AGI In-Store business		$ (139,000)		$ 38,663,000
Proceeds from sale of AGI In-Store				73,659,000
Non-cash loss on disposal of fixed assets		90,000	672,000	15,823,000	559,000
Clinton Cards secured debt recovery			1,804,000	3,390,000	4,232,000
Distribution received				11,926,000	4,982,000
Interest income		2,517,000	29,000	2,658,000	222,000
Investment impairment charge			1,935,000		1,935,000
Gain related to Party City investment	3,300,000				3,262,000
Clinton Cards [Member]
Other Income And Expense [Line Items]
Clinton Cards secured debt recovery						3,400,000
Distribution received		11,300,000
Interest income		2,500,000
WHQ Location [Member]
Other Income And Expense [Line Items]
Non-cash loss on disposal of fixed assets				15,500,000			15,500,000
Cash received from sale of property				13,500,000			13,500,000
AGI In-Store [Member]
Other Income And Expense [Line Items]
Net gain on sale of the AGI In-Store business		(100,000)		38,700,000			38,800,000
Proceeds from sale of AGI In-Store				73,700,000				73,700,000
Clinton Cards [Member]
Other Income And Expense [Line Items]
Clinton Cards secured debt recovery			$ 1,800,000		$ 4,200,000

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Consolidated Statement of Financial Position (Parenthetical) (USD $)	Nov. 28, 2014	Feb. 28, 2014	Nov. 29, 2013
Statement of Financial Position [Abstract]
Common shares, par value	$ 0.01	$ 0.01	$ 0.01
Common shares, issued	100	100	100
Common shares, outstanding	100	100	100

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Dispositions

9 Months Ended

Nov. 28, 2014

Discontinued Operations and Disposal Groups [Abstract]

Dispositions

Note 4 – Dispositions

On July 1, 2014, the Corporation sold its current world headquarters location and entered into an operating lease arrangement with the new owner of the building. The Corporation expects to remain in this current location until the completion of the new world headquarters, which the Corporation anticipates will occur in calendar year 2016. Net of transaction costs, the Corporation received $13.5 million cash from the sale, and recorded a non-cash loss on disposal of $15.5 million in the Corporation’s second fiscal quarter, which loss is included in “Other operating income – net” on the Consolidated Statement of Income.

On August 29, 2014, the Corporation completed the sale of its wholly-owned display fixtures business, A.G. Industries, Inc. (dba AGI In-Store “AGI In-Store”), to Rock-Tenn Company for $73.7 million in cash, subject to closing date working capital adjustments. A net gain of $38.7 million has been recognized from the sale during the nine month period ended November 28, 2014 and is included in “Other operating income – net” on the Consolidated Statement of Income. AGI In-Store, which is included in the non-reportable segment, had operating income of $0.1 million for the current fiscal year through the date of sale ($18.6 million of operating income for the nine month period ended November 29, 2013).

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Fair Value Measurements - Additional Information (Detail)	9 Months Ended
	Nov. 28, 2014
Fair Value Disclosures [Abstract]
Fair value measurements description	Assets and liabilities measured at fair value are classified using the fair value hierarchy based upon the transparency of inputs as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. The three levels are defined as follows: • 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.

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Royalty Revenue and Related Expenses (Tables)

9 Months Ended

Nov. 28, 2014

Text Block [Abstract]

Revenues and Expenses Associated with Servicing of Agreements

Revenues and expenses associated with the servicing of these agreements, primarily relating to the licensing activities included in the non-reportable segment, are summarized as follows:

	Three Months Ended					Nine Months Ended
(In thousands)	November 28, 2014			November 29, 2013		November 28, 2014		November 29, 2013
Royalty revenue	$	5,666		$	5,046	$	16,527	$	17,964
Royalty expenses
Material, labor and other production (credit) costs	$	(1,527	)	$	1,954	$	1,508	$	5,453
Selling, distribution and marketing expenses		1,562			1,431		4,837		4,615
Administrative and general expenses		447			421		1,228		1,322
	$	482		$	3,806	$	7,573	$	11,390

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Dispositions - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended	6 Months Ended
	Nov. 28, 2014	Nov. 29, 2013	Nov. 28, 2014	Nov. 29, 2013	Aug. 29, 2014	Aug. 29, 2014
Significant Acquisitions and Disposals [Line Items]
Non-cash loss on disposal of fixed assets	$ 90,000	$ 672,000	$ 15,823,000	$ 559,000
Proceeds from sale of AGI In-Store			73,659,000
Net gain on sale of the AGI In-Store business	(139,000)		38,663,000
Operating income	25,371,000	13,087,000	132,043,000	75,469,000
AGI In-Store [Member]
Significant Acquisitions and Disposals [Line Items]
Proceeds from sale of AGI In-Store			73,700,000			73,700,000
Net gain on sale of the AGI In-Store business	(100,000)		38,700,000		38,800,000
Operating income			100,000	18,600,000
WHQ Location [Member]
Significant Acquisitions and Disposals [Line Items]
Cash received from sale of property			13,500,000		13,500,000
Non-cash loss on disposal of fixed assets			$ 15,500,000		$ 15,500,000
WHQ Development [Member]
Significant Acquisitions and Disposals [Line Items]
Anticipated year of completion for new world headquarters building			2016

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Fair Value Measurements

9 Months Ended

Nov. 28, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 14 – Fair Value Measurements

Assets and liabilities measured at fair value are classified using the fair value hierarchy based upon the transparency of inputs as of the measurement date. The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. The three levels are defined as follows:

• Level 1 – Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 – Valuation is based upon unobservable inputs that are significant to the fair value measurement.

The following table summarizes the assets and liabilities measured at fair value as of November 28, 2014:

(In thousands)	November 28, 2014		Level 1		Level 2		Level 3
Assets measured on a recurring basis:
Deferred compensation plan assets	$	12,840	$	10,932	$	1,908	$	—
Liabilities measured on a recurring basis:
Deferred compensation plan liabilities	$	13,783	$	10,932	$	2,851	$	—

The following table summarizes the assets and liabilities measured at fair value as of February 28, 2014:

(In thousands)	February 28, 2014		Level 1		Level 2		Level 3
Assets measured on a recurring basis:
Deferred compensation plan assets	$	12,285	$	10,289	$	1,996	$	—
Liabilities measured on a recurring basis:
Deferred compensation plan liabilities	$	13,230	$	10,289	$	2,941	$	—

The following table summarizes the assets and liabilities measured at fair value as of November 29, 2013:

(In thousands)	November 29, 2013		Level 1		Level 2		Level 3
Assets measured on a recurring basis:
Deferred compensation plan assets	$	12,129	$	8,814	$	3,315	$	—
Liabilities measured on a recurring basis:
Deferred compensation plan liabilities	$	13,295	$	8,814	$	4,481	$	—

The deferred compensation plan includes investments in mutual funds and a money market fund. Assets held in mutual funds are recorded at fair value, which is considered a Level 1 valuation as it is based on each fund’s quoted market value per share in an active market. The money market fund is classified as Level 2 as substantially all of the fund’s investments are determined using amortized cost. The fair value of the deferred compensation plan liabilities is based on the fair value of: (i) the plan’s assets for invested deferrals and (ii) hypothetical investments for unfunded deferrals resulting from the conversion of deferred restricted stock units to future cash-settled obligations pursuant to the Merger. Prior to the Merger, the assets and related obligation associated with deferred restricted stock units were carried at cost in equity and offset each other.