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Other Commitments and Contingencies
12 Months Ended
Feb. 28, 2019
Commitments And Contingencies Disclosure [Abstract]  
OTHER COMMITMENTS AND CONTINGENCIES

11. OTHER COMMITMENTS AND CONTINGENCIES

a. Commitments

The Company has various commitments under the following types of material contracts: (i) operating leases; (ii) employment agreements and (iii) other contracts with annual commitments (mostly contractual services for audience measurement information) at February 28, 2019 as follows:

 

Year ending February 28 (29),

 

Operating

Leases

 

 

Employment

Agreements

 

 

Other

Contracts

 

 

Total

 

2020

 

$

5,547

 

 

$

10,062

 

 

$

3,955

 

 

$

19,564

 

2021

 

 

5,305

 

 

 

3,009

 

 

 

763

 

 

 

9,077

 

2022

 

 

5,284

 

 

 

1,223

 

 

 

526

 

 

 

7,033

 

2023

 

 

5,186

 

 

 

123

 

 

 

 

 

 

5,309

 

2024

 

 

3,666

 

 

 

123

 

 

 

 

 

 

3,789

 

Thereafter

 

 

13,118

 

 

 

 

 

 

 

 

 

13,118

 

Total

 

$

38,106

 

 

$

14,540

 

 

$

5,244

 

 

$

57,890

 

 

Emmis leases certain office space, tower space, equipment and automobiles under operating leases expiring at various dates through March 2032. Some of the lease agreements contain renewal options and annual rental escalation clauses, as well as provisions for payment of utilities and maintenance costs. The Company recognizes escalated rents on a straight-line basis over the term of the lease agreement. Rental expense during the years ended February 2017, 2018 and 2019 was approximately $8.3 million, $6.0 million and $5.0 million, respectively. The Company recognized approximately $0.3 million, less than $0.1 million and $0.2 million of sublease income as a reduction of rent expense for the years ended February 2017, 2018, and 2019 respectively.

The total minimum sublease rentals to be received in the future under noncancelable subleases as of February 28, 2019 were as follows:

 

Year ending February 28 (29),

 

Noncancelable

Sublease rentals

 

2020

 

$

441

 

2021

 

 

276

 

2022

 

 

129

 

2023

 

 

126

 

2024

 

 

88

 

Total

 

$

1,060

 

 

b. Litigation

The Company is a party to various legal proceedings arising in the ordinary course of business. In the opinion of management of the Company, there are no legal proceedings pending against the Company likely to have a material adverse effect on the Company.

Emmis filed suit against Illinois National Insurance Company (“INIC”) in 2015 related to INIC’s decision to not cover Emmis’ defense costs under Emmis’ directors and officers insurance policy in a lawsuit related to the Company’s preferred stock in which Emmis was the defendant (the “Prior Litigation”). On March 21, 2018, Emmis was granted summary judgment entitling it to coverage of its defense costs in the Prior Litigation. On October 10, 2018, Emmis and INIC agreed that the amount of Emmis’ damages are $3.5 million. On November 7, 2018, INIC appealed the District Court’s summary judgment determination that the insurance policy covers Emmis’ defense costs. The United States Court of Appeals for the Seventh Circuit is scheduled to hear oral arguments by both parties on May 30, 2019. Accordingly, Emmis cannot estimate the amount or timing of a recovery, if any.