LONG-TERM LEASES AND COMMITMENTS

12 Months Ended

Feb. 28, 2014

Leases [Abstract]

LONG-TERM LEASES AND COMMITMENTS

NOTE 13 – LONG-TERM LEASES AND COMMITMENTS

The Corporation is committed under noncancelable operating leases for commercial properties (certain of which have been subleased) and equipment, terms of which are approximately 8 years. Rental expense under operating leases for the years ended 2014, 2013 and 2012 is as follows:

	2014			2013			2012
Gross rentals	$	83,790		$	66,840		$	30,641
Sublease rentals		(5,152	)		(7,758	)		(11,332	)
Net rental expense	$	78,638		$	59,082		$	19,309

At February 28, 2014, future minimum rental payments for noncancelable operating leases, net of aggregate future minimum noncancelable sublease rentals, are as follows:

Gross rentals:
2015	$	71,392
2016		66,446
2017		59,994
2018		50,840
2019		37,680
Later years		102,694
		389,046
Sublease rentals		(9,923	)
Net rentals	$	379,123

The table above includes approximately $360,000 of estimated future minimum rental payments for noncancelable operating leases related to the Clinton Cards business.

The majority of sublease rentals in the table above are being paid by Schurman. These amounts relate to retail stores acquired by Schurman that are being subleased to Schurman. The failure of Schurman to operate the retail stores successfully could have a material adverse effect on the Corporation, because if Schurman is not able to comply with its obligations under the subleases, the Corporation remains contractually obligated, as primary lessee, under those leases.