ArcMap crashes when performing a GeoProcessing Wizard Clip operation on an XY event layer

Description

You can use the ArcMap GeoProcessing Wizard to clip points, lines and polygons of various data types (shapefiles, geodatabase feature classes and coverages). When attempting to clip an XY event layer (a layer created by taking X and Y coordinates from a table) ArcMap fatals.

Workaround

1. Right-click the XY Event layer in the table of contents (TOC)
2. Select Data > Export Data
3. Click the browse button
4. Navigate to the folder where you want to save the data
5. Name the output file and click Save
6. Click OK