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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) May 11, 2000
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1-13859
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Commission File Number
AMERICAN GREETINGS CORPORATION
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(Exact name of registrant as specified in Charter)
Ohio 34-0065325
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
One American Road, Cleveland, Ohio 44144
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(Address of principal executive Offices) (Zip Code)
(216) 252-7300
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Registrant's telephone number, including area code
ITEM 5. OTHER EVENTS
In December 1999, the SEC issued Staff Accounting Bulletin No. 101 "Revenue
Recognition in Financial Statements" (SAB 101), which among other guidance,
clarifies the Staff's views on various revenue recognition and reporting
matters. During the first quarter of FY2001, the Corporation adopted a change in
its method of accounting for certain shipments of seasonal product which carry
implied acceptance provisions. The Corporation will now recognize revenue on
seasonal shipments at the date the merchandise is received by the customer and
not upon shipment from the distribution facility.
The implementation of this change will be accounted for as a change in
accounting principle and applied cumulatively as if the change occurred at March
1, 2000. The effect of the change will be a one-time non-cash reduction to the
Corporation's earnings of approximately $21 million or approximately $0.33
earnings per share, during the quarter ended May 31, 2000. Although this change
may impact future quarterly results, it will not impact the Corporation's
reported cash flows, and is not expected to have a material impact on FY2001
income before the cumulative effect or FY2001 net sales. Earnings per share will
be reported both before and after the cumulative effect of the accounting
change.
SIGNATURE
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 hereunto duly authorized.
AMERICAN GREETINGS CORPORATION
By: /s/ William S. Meyer
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William S. Meyer
Senior Vice President-
Chief Financial Officer
May 11, 2000
