Lease Obligations

12 Months Ended

Feb. 28, 2014

Leases of Lessee Disclosure [Text Block]


	Lease Obligations

During 1996, the Company entered into a 30-year capital lease for a building with its principal stockholder and current chairman, which was the headquarters of the discontinued Cellular operation. Payments on the capital lease were based upon the construction costs of the building and the then-current interest rates. The effective interest rate on the capital lease obligation is 8%. This lease was refinanced in December 2006 and expires on November 30, 2026. The Company currently subleases the building to Airtyme Communications LLC for monthly payments of $60 for a term of three years, terminating on October 15, 2015. Total rental income earned from the sublease of this building for the years ended February 28, 2014, February 28, 2013 and February 29, 2012 was $634, $573 and $531, respectively. We also lease another facility from our principal stockholder which expires on November 30, 2016.

The Company leases certain facilities from its principal stockholder. At February 28, 2014, minimum annual rental payments on these related party leases, including capital lease payments, which are included in the table below, are as follows:



2015	$	1,377
2016	1,402
2017	1,223
2018	631
2019	631
Thereafter	5,206
Total	$	10,470

Total lease payments required under all related party leases for the five-year period ending February 28, 2019 are $5,264.

At February 28, 2014, the Company was obligated under non-cancellable capital and operating leases for equipment and warehouse facilities for minimum annual rental payments as follows:



	Capital Lease		Operating Leases
2015	$	574	$	7,705
2016	574		3,246
2017	588		2,063
2018	1,260		400
2019	1,261		282
Thereafter	5,206		676
Total minimum lease payments	9,463		$	14,372
Less: minimum sublease income	1,200
Net	8,263
Less: amount representing interest	1,919
Present value of net minimum lease payments	6,344
Less: current installments included in accrued expenses and other current liabilities	230
Long-term capital obligation	$	6,114

Rental expense for the above-mentioned operating lease agreements and other leases on a month-to-month basis was $5,474, $5,531 and $4,797 for the years ended February 28, 2014, February 28, 2013 and February 29, 2012, respectively.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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