10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 31, 2013

EMMIS COMMUNICATIONS CORPORATION

(Exact name of registrant as specified in its charter)

INDIANA

(State of incorporation or organization)

0-23264

(Commission file number)

35-1542018

(I.R.S. Employer Identification No.)

ONE EMMIS PLAZA

40 MONUMENT CIRCLE, SUITE 700

INDIANAPOLIS, INDIANA 46204

(Address of principal executive offices)

(317) 266-0100

(Registrant’s Telephone Number, Including Area Code)

NOT APPLICABLE

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” and “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	o	Accelerated filer	ý
Non-accelerated filer	o  (Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  ý

The number of shares outstanding of each of Emmis Communications Corporation’s classes of common stock, as of October 3, 2013, was:

37,087,493	Shares of Class A Common Stock, $.01 Par Value
4,697,684	Shares of Class B Common Stock, $.01 Par Value
—	Shares of Class C Common Stock, $.01 Par Value

INDEX

	Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements	3
Condensed Consolidated Statements of Operations for the three-month and six-month periods ended August 31, 2012 and 2013	3
Condensed Consolidated Statements of Comprehensive Income for the three-month and six-month periods ended August 31, 2012 and 2013	5
Condensed Consolidated Balance Sheets as of February 28, 2013 and August 31, 2013	6
Condensed Consolidated Statement of Changes in Equity for the six-month period ended August 31, 2013	8
Condensed Consolidated Statements of Cash Flows for the six-month periods ended August 31, 2012 and 2013	9
Notes to Condensed Consolidated Financial Statements	11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3. Quantitative and Qualitative Disclosures about Market Risk	38
Item 4. Controls and Procedures	39
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 6. Exhibits	41
Signatures	42

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PART I — FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

	Three Months Ended   August 31,						Six Months Ended   August 31,
	2012			2013			2012			2013
NET REVENUES	$	52,929		$	54,967		$	101,897		$	105,553
OPERATING EXPENSES:
Station operating expenses excluding depreciation and amortization expense of $680, $665, $1,344 and $1,321, respectively	39,778			41,938			80,350			79,650
Corporate expenses excluding depreciation and amortization expense of $489, $548, $950 and $1,068, respectively	4,161			5,070			9,133			9,470
Hungary license litigation and related expenses	210			1,043			414			1,295
Impairment loss on intangible assets	—			—			10,971			—
Depreciation and amortization	1,169			1,213			2,294			2,389
Gain on sale of assets	(6		)	(1		)	(10,006		)	(1		)
Total operating expenses	45,312			49,263			93,156			92,803
OPERATING INCOME	7,617			5,704			8,741			12,750
OTHER EXPENSE:
Interest expense	(6,878		)	(1,808		)	(12,645		)	(3,729		)
Loss on debt extinguishment	(601		)	—			(1,085		)	—
Other (expense) income, net	(215		)	33			(17		)	40
Total other expense	(7,694		)	(1,775		)	(13,747		)	(3,689		)
(LOSS) INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS	(77		)	3,929			(5,006		)	9,061
(BENEFIT) PROVISION FOR INCOME TAXES	(1,509		)	4			(5,924		)	179
INCOME FROM CONTINUING OPERATIONS	1,432			3,925			918			8,882
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX	38,776			—			36,417			—
CONSOLIDATED NET INCOME	40,208			3,925			37,335			8,882
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	1,217			1,354			2,479			2,835
NET INCOME ATTRIBUTABLE TO THE COMPANY	38,991			2,571			34,856			6,047
GAIN ON EXTINGUISHMENT OF PREFERRED STOCK	—			76			—			325
PREFERRED STOCK DIVIDENDS	(910		)	—			(1,806		)	—
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	38,081		$	2,647		$	33,050		$	6,372

The accompanying notes are an integral part of these unaudited condensed consolidated statements.

-3-

EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(Unaudited)

(In thousands, except per share data)

	Three Months Ended   August 31,					Six Months Ended   August 31,
	2012			2013		2012			2013
Amounts attributable to common shareholders for basic earnings per share:
Continuing operations	$	(695	)	$	2,647	$	(3,367	)	$	6,372
Discontinued operations	38,776			—		36,417			—
Net income attributable to common shareholders	$	38,081		$	2,647	$	33,050		$	6,372
Amounts attributable to common shareholders for diluted earnings per share:
Continuing operations	$	(695	)	$	2,571	$	(3,367	)	$	6,047
Discontinued operations	38,776			—		36,417			—
Net income attributable to common shareholders	$	38,081		$	2,571	$	33,050		$	6,047
Basic net (loss) income per share attributable to common shareholders:
Continuing operations	$	(0.02	)	$	0.06	$	(0.09	)	$	0.15
Discontinued operations, net of tax	1.00			—		0.94			—
Net income per share attributable to common shareholders	$	0.98		$	0.06	$	0.85		$	0.15
Basic weighted average common shares outstanding	38,859			41,451		38,819			41,313
Diluted net (loss) income per share attributable to common shareholders:
Continuing operations	$	(0.02	)	$	0.05	$	(0.09	)	$	0.13
Discontinued operations, net of tax	1.00			—		0.94			—
Net income per share attributable to common shareholders	$	0.98		$	0.05	$	0.85		$	0.13
Diluted weighted average common shares outstanding	38,859			46,937		38,819			46,361

The accompanying notes are an integral part of these unaudited condensed consolidated statements.

-4-

EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)

	Three Months Ended   August 31,					Six Months Ended   August 31,
	2012			2013		2012			2013
CONSOLIDATED NET INCOME	$	40,208		$	3,925	$	37,335		$	8,882
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAXES:
Change in value of derivative instrument and related income tax effects	—			4		—			48
Cumulative translation adjustment	(540		)	22		(311		)	(8		)
COMPREHENSIVE INCOME	39,668			3,951		37,024			8,922
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	1,135			1,365		2,420			2,816
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	38,533		$	2,586	$	34,604		$	6,106

The accompanying notes are an integral part of these unaudited condensed consolidated statements.

-5-

EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	February 28, 2013		August 31, 2013
			(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	8,735	$	6,821
Accounts receivable, net	28,126		34,796
Prepaid expenses	7,674		8,491
Other current assets	5,411		3,803
Current assets — discontinued operations	762		465
Total current assets	50,708		54,376
PROPERTY AND EQUIPMENT, NET	32,553		32,032
INTANGIBLE ASSETS (Note 3):
Indefinite-lived intangibles	150,522		150,558
Goodwill	12,639		12,639
Other intangibles, net	225		214
Total intangible assets	163,386		163,411
OTHER ASSETS, NET	14,977		16,345
Total assets	$	261,624	$	266,164

The accompanying notes are an integral part of these unaudited condensed consolidated statements.

-6-

EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(In thousands, except share data)

	February 28, 2013			August 31, 2013
				(Unaudited)
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	8,301		$	8,019
Current maturities of long-term debt (Note 4)	12,126			12,331
Accrued salaries and commissions	7,535			8,670
Accrued interest	396			389
Deferred revenue	10,862			12,059
Other current liabilities	3,518			5,745
Current liabilities — discontinued operations	2,169			90
Total current liabilities	44,907			47,303
LONG-TERM DEBT, NET OF CURRENT MATURITIES (NOTE 4)	131,494			125,530
OTHER NONCURRENT LIABILITIES	10,052			8,566
DEFERRED INCOME TAXES	38,072			39,360
Total liabilities	224,525			220,759
COMMITMENTS AND CONTINGENCIES
EQUITY:
Class A common stock, $.01 par value; authorized 170,000,000 shares; issued and outstanding 35,907,925 shares at February 28, 2013 and 36,794,152 shares at August 31, 2013	359			368
Class B common stock, $.01 par value; authorized 30,000,000 shares; issued and outstanding 4,722,684 shares at February 28, 2013 and August 31, 2013	47			47
Series A non-cumulative convertible preferred stock, $.01 par value; $50.00 liquidation preference per share, aggregate liquidation preference and redemption amount of $46,882 at February 28, 2013 and $46,450 at August 31, 2013; authorized 2,875,000 shares; issued and outstanding 1,337,641 shares at February 28, 2013 and 1,328,991 at August 31, 2013, which includes 400,000 shares in trust	9			9
Additional paid-in capital	578,555			579,746
Accumulated deficit	(588,836		)	(582,789		)
Accumulated other comprehensive loss	(118		)	(59		)
Total shareholders’ deficit	(9,984		)	(2,678		)
NONCONTROLLING INTERESTS	47,083			48,083
Total equity	37,099			45,405
Total liabilities and equity	$	261,624		$	266,164

The accompanying notes are an integral part of these unaudited condensed consolidated statements.

-7-

EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Unaudited)

(In thousands, except share data)

	Class A Common Stock			Class B Common Stock			Series A Preferred Stock				Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Noncontrolling Interests			Total Equity
	Shares	Amount		Shares	Amount		Shares		Amount
Balance, February 28, 2013	35,907,925	$	359	4,722,684	$	47	937,641		$	9	$	578,555		$	(588,836	)	$	(118	)	$	47,083		$	37,099
Net income														6,047						2,835			8,882
Issuance of Common Stock to employees and officers	711,727	7									1,174												1,181
Exercise of stock options	174,500	2									124												126
Payments of dividends and distributions to noncontrolling interests																				(1,816		)	(1,816		)
Purchase of preferred stock							(8,650	)			(107		)										(107		)
Change in value of derivative instrument																	48						48
Cumulative translation adjustment																	11			(19		)	(8		)
Balance, August 31, 2013	36,794,152	$	368	4,722,684	$	47	928,991		$	9	$	579,746		$	(582,789	)	$	(59	)	$	48,083		$	45,405

The accompanying notes are an integral part of these unaudited condensed consolidated statements.

-8-

EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

	Six Months Ended August 31,
	2012			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$	37,335		$	8,882
Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities -
Discontinued operations	(36,417		)	—
Impairment loss	10,971			—
Depreciation and amortization	2,294			2,389
Noncash accretion of debt instruments to interest expense	8,939			450
Loss on debt extinguishment	1,085			—
Provision for bad debts	280			338
(Benefit) provision for deferred income taxes	(6,062		)	1,288
Noncash compensation	954			3,082
Gain on sale of assets	(10,006		)	(1		)
Other	—			(75		)
Changes in assets and liabilities -
Accounts receivable	(4,251		)	(6,880		)
Prepaid expenses and other current assets	436			229
Other assets	(1,334		)	(1,167		)
Accounts payable and accrued liabilities	(2,810		)	266
Deferred revenue	(1,011		)	1,197
Income taxes	(604		)	(322		)
Other liabilities	(6,609		)	294
Net cash used in operating activities — discontinued operations	(371		)	(68		)
Net cash (used in) provided by operating activities	(7,181		)	9,902
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(956		)	(1,857		)
Cash paid for investments, net of distributions	(3,989		)	(220		)
Proceeds from the sale of assets	10,006			1
Other	42			—
Net cash provided by (used in) investing activities — discontinued operations	85,463			(1,650		)
Net cash provided by (used in) investing activities	90,566			(3,726		)

The accompanying notes are an integral part of these unaudited condensed consolidated statements.

-9-

EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)

(Dollars in thousands)

	Six Months Ended August 31,
	2012			2013
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt	(165,951		)	(12,015		)
Proceeds from long-term debt	92,198			6,000
Debt-related costs	(3,495		)	(137		)
Payments of dividends and distributions to noncontrolling interests	(2,158		)	(1,816		)
Proceeds from the exercise of stock options	134			126
Purchase of preferred stock	—			(107		)
Settlement of tax withholding obligations on stock issued to employees	—			(133		)
Net cash used in financing activities	(79,272		)	(8,082		)
Effect of exchange rates on cash and cash equivalents	(200		)	(8		)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	3,913			(1,914		)
CASH AND CASH EQUIVALENTS:
Beginning of period	5,619			8,735
End of period	$	9,532		$	6,821
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	$	15,377		$	3,285
Cash paid (refund from) income taxes, net	731			(804		)
Noncash financing transactions-
Value of stock issued to employees under stock compensation program and to satisfy accrued incentives	954			1,307

The accompanying notes are an integral part of these unaudited condensed consolidated statements.

-10-

EMMIS COMMUNICATIONS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(DOLLARS IN THOUSANDS UNLESS INDICATED OTHERWISE, EXCEPT SHARE DATA)

August 31, 2013

(Unaudited)

Note 1. Summary of Significant Accounting Policies

Preparation of Interim Financial Statements

Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), the condensed consolidated interim financial statements included herein have been prepared, without audit, by Emmis Communications Corporation (“ECC”) and its subsidiaries (collectively, “our,” “us,” “we,” “Emmis” or the “Company”). As permitted under the applicable rules and regulations of the SEC, certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, Emmis believes that the disclosures are adequate to make the information presented not misleading. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in the Annual Report for Emmis filed on Form 10-K for the year ended February 28, 2013. The Company’s results are subject to seasonal fluctuations. Therefore, results shown on an interim basis are not necessarily indicative of results for a full year.

In the opinion of Emmis, the accompanying condensed consolidated interim financial statements contain all material adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position of Emmis at August 31, 2013, and the results of its operations for the three-month and six-month periods ended August 31, 2012 and 2013, and cash flows for the six-month periods ended August 31, 2012 and 2013.

Basic and Diluted Net (Loss) Income Per Common Share

Basic net (loss) income per common share is computed by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net (loss) income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Potentially dilutive securities at August 31, 2012 and 2013 consisted of stock options, restricted stock awards and the 6.25% Series A convertible preferred stock (the “Preferred Stock”).

The following table sets forth the calculation of basic and diluted net (loss) income per share from continuing operations:

	Six Months Ended
	August 31, 2012							August 31, 2013
	Net Loss			Shares	Net Loss Per Share			Net Income			Shares	Net Income Per Share
	(amounts in 000’s, except per share data)
Basic net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(3,367	)	38,819	$	(0.09	)	$	6,372		41,313	$	0.15
Impact of equity awards	—			—	—			—			2,770	—
Impact of conversion of preferred stock into common stock	—			—	—			(325		)	2,278	—
Diluted net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(3,367	)	38,819	$	(0.09	)	$	6,047		46,361	$	0.13

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	Three Months Ended
	August 31, 2012							August 31, 2013
	Net Loss			Shares	Net Loss Per Share			Net Income			Shares	Net Income Per Share
	(amounts in 000’s, except per share data)
Basic net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(695	)	38,859	$	(0.02	)	$	2,647		41,451	$	0.06
Impact of equity awards	—			—	—			—			3,217	—
Impact of conversion of preferred stock into common stock	—			—	—			(76		)	2,269	—
Diluted net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(695	)	38,859	$	(0.02	)	$	2,571		46,937	$	0.05

Shares excluded from the calculation as the effect of their conversion into shares of our common stock would be antidilutive were as follows:

	Three Months Ended August 31,		Six Months Ended August 31,
	2012	2013	2012	2013
	(shares in 000’s )
6.25% Series A convertible preferred stock	2,288	—	2,288	—
Stock options and restricted stock awards	7,274	1,929	6,898	1,980
Antidilutive common share equivalents	9,562	1,929	9,186	1,980

Discontinued Operations – Summary of results

The results of operations and related disposal costs, gains and losses for business units that the Company has sold are classified in discontinued operations for all periods presented.

A summary of the income from discontinued operations is presented below:

	Three Months Ended August 31,					Six Months Ended August 31,
	2012			2013		2012			2013
Income (loss) from operations:
KXOS-FM (Radio)	$	32,675		$	—	$	32,534		$	—
Emmis Interactive Inc. (Radio)	(1,466		)	—		(2,193		)	—
Slovakia Radio Network (Radio)	756			—		763			—
Bulgaria Radio Network (Radio)	(146		)	—		(453		)	—
Sampler Publications (Publishing)	(202		)	—		(86		)	—
Total	31,617			—		30,565			—
Benefit from income taxes	(7,159		)	—		(5,852		)	—
Total income from operations, net of tax	$	38,776		$	—	$	36,417		$	—

Discontinued Operation – KXOS-FM

On August 23, 2012, Emmis completed the sale of KXOS-FM in Los Angeles for $85.5 million in cash. In connection with the sale, Emmis recorded a gain on sale of assets of approximately $32.8 million. KXOS-FM had previously been operating pursuant to a local programming and marketing agreement, which is discussed in more detail below.

In accordance with the provisions of Accounting Standards Codification (“ASC”) 205-20-45, the Company allocated interest expense associated with the portion of term loans required to be repaid as a result of the sale of KXOS-FM to its operations for all periods presented.

-12-

The operations of KXOS-FM had historically been included in the radio segment. The following table summarizes certain operating results of KXOS-FM for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,581	$	—	$	3,331	$	—
Station operating expenses, excluding depreciation and amortization expense	7		—		27		—
Depreciation and amortization expense	65		—		169		—
Interest expense	1,591		—		3,358		—
Gain on sale of station	32,757		—		32,757		—
Benefit from income taxes	7,572		—		6,476		—

Discontinued Operation — Emmis Interactive

On October 31, 2012, Emmis completed the sale of Emmis Interactive Inc., a subsidiary of Emmis that provided a content management system, data analytic tools and related services, to Marketron Broadcast Solutions, LLC (“Marketron”) for no net proceeds. The sale of Emmis Interactive Inc. allowed Emmis to mitigate expected future operating losses and more clearly focus on core radio and publishing operating strategies. Marketron had assumed operating control of Emmis Interactive, Inc., on October 4, 2012. In connection with the sale, Emmis recorded a loss on sale of assets of approximately $0.7 million, which was primarily related to severance for former employees.

The operations of Emmis Interactive Inc. had historically been included in the radio segment. The following table summarizes certain operating results of Emmis Interactive Inc. for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,144	$	—	$	2,383	$	—
Station operating expenses, excluding depreciation and amortization expense	1,754		—		3,716		—
Depreciation and amortization	120		—		257		—
Impairment loss	737		—		737		—
Other income	1		—		134		—

Discontinued Operation – Country Sampler, Smart Retailer and related publications

On October 1, 2012, Emmis completed the sale of Country Sampler magazine, Smart Retailer magazine, and related publications (altogether the “Sampler Publications”) and certain real estate used in their operations to subsidiaries of DRG Holdings, LLC. Emmis believed the sale of the Sampler Publications, which were niche crafting publications, would enable it to more clearly focus on its core city and regional publications. Emmis received gross proceeds from the sale of $8.7 million, incurred approximately $0.2 million in transaction expenses and tax obligations, and used the remaining $8.5 million to repay term loans under the Company’s 2006 Credit Agreement. In connection with the sale, Emmis recorded a gain on sale of assets of approximately $0.7 million.

In accordance with the provisions of Accounting Standards Codification (“ASC”) 205-20-45, the Company allocated interest expense associated with the estimate of term loans required to be repaid as a result of the sale of the Sampler Publications to its operations for all periods presented.

-13-

The operations of the Sampler Publications had historically been included in the publishing segment. The following table summarizes certain operating results of the Sampler Publications for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,620	$	—	$	3,939	$	—
Station operating expenses, excluding depreciation and amortization expense	1,612		—		3,604		—
Depreciation and amortization	22		—		44		—
Interest expense	188		—		377		—
Provision for income taxes	130		—		259		—

Discontinued Operation –Slovakia Radio

On February 25, 2013, Emmis completed the sale of its Slovakian radio network to Bauer Ausland 1 GMBH for $21.2 million in cash. Emmis believed the sale of its international radio properties would better enable the Company to focus its efforts on its domestic radio stations. In connection with the sale, Emmis recorded a gain on sale of assets of approximately $14.8 million.

The operations of our Slovakian radio network had historically been included in the radio segment. The following table summarizes certain operating results of our Slovakian radio network for all periods presented:

	Three Months Ended August 31,					Six Months Ended August 31,
	2012			2013		2012		2013
Net revenues	$	3,172		$	—	$	5,449	$	—
Station operating expenses, excluding depreciation and amortization expense	1,863			—		3,528		—
Depreciation and amortization	174			—		354		—
Interest expense	399			—		799		—
Other (income) expense, net	(20		)	—		5		—
Provision for income taxes	283			—		365		—

Discontinued Operation – Bulgaria Radio

On January 3, 2013, Emmis completed the sale of its Bulgarian radio network to Reflex Media EEOD for $1.7 million in cash. Emmis believed the sale of its international radio properties would better enable the Company to focus its efforts on its domestic radio stations. In connection with the sale, Emmis recorded a loss on sale of assets of approximately $1.3 million. The loss on disposal primarily resulted from the reclassification of accumulated currency translation adjustments.

The operations of our Bulgarian radio network had historically been included in the radio segment. The following table summarizes certain operating results of our Bulgarian radio network for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	324	$	—	$	558	$	—
Station operating expenses, excluding depreciation and amortization expense	442		—		871		—
Depreciation and amortization	27		—		137		—
Other expense, net	1		—		3		—

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Summary of Assets and Liabilities of Discontinued Operations:

	As of February 28, 2013		As of  August 31, 2013
Current assets:
Cash and cash equivalents	$	579	$	465
Accounts receivable, net	128		—
Prepaid expenses	17		—
Other	38		—
Total current assets	$	762	$	465
Current liabilities:
Accounts payable and accrued expenses	$	2,169	$	90
Total current liabilities	$	2,169	$	90

Local Programming and Marketing Agreement Fees

The Company from time to time enters into local programming and marketing agreements (“LMAs”) in connection with acquisitions or dispositions of radio stations, typically pending regulatory approval of transfer of the FCC licenses. In such cases where the Company enters into an LMA in connection with a disposition, the Company generally receives specified periodic payments in exchange for the counterparty receiving the right to program and sell advertising for a specified portion of the station’s inventory of broadcast time. Nevertheless, as the holder of the FCC license, the Company retains control and responsibility for the operation of the station, including responsibility over all programming broadcast on the station.

On April 26, 2012, Emmis entered into an LMA with a subsidiary of Disney Enterprises, Inc. for 98.7FM in New York (formerly WRKS-FM and now WEPN-FM, hereinafter referred to as “98.7FM”). The LMA for this station started on April 30, 2012 and will continue until August 31, 2024. During the three months ended August 31, 2012 and 2013, Emmis recognized $2.6 million and $2.6 million, respectively, of LMA fees, recorded as net revenues in the accompanying condensed consolidated statements of operations, related to the 98.7FM LMA. During the six months ended August 31, 2012 and 2013, Emmis recognized LMA fee revenue of $3.4 million and $5.2 million, respectively.

Grupo Radio Centro, S.A.B. de C.V (“GRC”), a Mexican broadcasting company, provided programming and sold advertising for KXOS-FM in Los Angeles pursuant to an LMA from April 2009 until affiliates of GRC consummated the purchase of KXOS-FM on August 23, 2012. Emmis recognized $1.6 million and $3.3 million of LMA fees, recorded as income from discontinued operations, net of tax, related to the KXOS-FM LMA during the three months and six months ended August 31, 2012, respectively.

Note 2. Share Based Payments

The amounts recorded as share based compensation expense consist of stock option and restricted stock grants, common stock issued to employees and directors in lieu of cash payments, and Preferred Stock contributed to the 2012 Retention Plan.

Stock Option Awards

The Company has granted options to purchase its common stock to employees and directors of the Company under various stock option plans at no less than the fair market value of the underlying stock on the date of grant. These options are granted for a term not exceeding 10 years and are forfeited, except in certain circumstances, in the event the employee or director terminates his or her employment or relationship with the Company. Generally, these options either vest annually over 3 years (one-third each year for 3 years), or cliff vest at the end of 3 years. The Company issues new shares upon the exercise of stock options.

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The fair value of each option awarded is estimated on the date of grant using a Black-Scholes option-pricing model and expensed on a straight-line basis over the vesting period. Expected volatilities are based on historical volatility of the Company’s stock. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. The Company includes estimated forfeitures in its compensation cost and updates the estimated forfeiture rate through the final vesting date of awards. The risk-free interest rate for periods within the life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following assumptions were used to calculate the fair value of the Company’s options on the date of grant during the six months ended August 31, 2012 and 2013:

	Six Months Ended August 31,
	2012	2013
Risk-Free Interest Rate:	0.7%	0.6% – 1.3%
Expected Dividend Yield:	0%	0%
Expected Life (Years):	4.2	4.3
Expected Volatility:	129.5% – 131.4%	108.9% – 115.9%

The following table presents a summary of the Company’s stock options outstanding at August 31, 2013, and stock option activity during the six months ended August 31, 2013 (“Price” reflects the weighted average exercise price per share):

	Options	Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding, beginning of period	7,132,459	$	4.31
Granted	381,219	1.77
Exercised (1)	169,500	0.71
Forfeited	15,000	0.70
Expired	551,220	10.91
Outstanding, end of period	6,777,958	3.71		6.4	$	12,380
Exercisable, end of period	3,658,269	6.04		4.5	$	5,525

(1) The Company did not record an income tax benefit related to option exercises in the six months ended August 31, 2012 and 2013.

The weighted average grant date fair value of options granted during the six months ended August 31, 2012 and 2013, was $0.71 and $1.36, respectively.

A summary of the Company’s nonvested options at August 31, 2013, and changes during the six months ended August 31, 2013, is presented below:

	Options	Weighted Average Grant Date Fair Value
Nonvested, beginning of period	3,188,104	$	0.76
Granted	381,219	1.36
Vested	434,634	0.98
Forfeited	15,000	0.57
Nonvested, end of period	3,119,689	0.80

There were 3.8 million shares available for future grants under the Company’s various equity plans at August 31, 2013. The vesting dates of outstanding options at August 31, 2013 range from September 2013 to March 2017, and expiration dates range from March 2014 to July 2023.

Restricted Stock Awards

The Company grants restricted stock awards to directors annually, and periodically grants restricted stock to employees in connection with employment agreements. Awards to directors are granted on the date of our annual meeting of shareholders and

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vest on the earlier of (i) the completion of the director’s 3-year term or (ii) the third anniversary of the date of grant. Restricted stock award grants are granted out of the Company’s 2012 Equity Compensation Plan. The Company may also award, out of the Company’s 2012 Equity Compensation Plan, stock to settle certain bonuses and other compensation that otherwise would be paid in cash. Any restrictions on these shares may be immediately lapsed on the grant date.

The following table presents a summary of the Company’s restricted stock grants outstanding at August 31, 2013, and restricted stock activity during the six months ended August 31, 2013 (“Price” reflects the weighted average share price at the date of grant):

	Awards	Price
Grants outstanding, beginning of period	537,405	$	1.72
Granted	802,711	1.60
Vested (restriction lapsed)	286,126	1.46
Forfeited	181	1.73
Grants outstanding, end of period	1,053,809	1.70

The total grant date fair value of shares vested during the six months ended August 31, 2012 and 2013, was less than $0.1 million and $0.4 million, respectively.

Preferred Stock and the 2012 Retention Plan

On April 2, 2012, the shareholders of the Company approved the 2012 Retention Plan and Trust Agreement (the “Trust” or the “2012 Retention Plan”) at a special meeting of shareholders. The Company contributed 400,000 shares of its Preferred Stock to the Trust in connection with the approval of the 2012 Retention Plan. Awards granted under the 2012 Retention Plan entitle the participants to receive a distribution two years from the date of shareholder approval of the plan, provided the participant is still an employee and was an employee upon inception of the plan. Distributions may be in the form of Class A common stock if the Company elects to convert the Preferred Stock to common stock at the then-current conversion ratio prior to distribution. The initial Trustee of the plan is Jeffrey H. Smulyan, our Chairman of the Board, President and Chief Executive Officer.

As of the Trust’s inception and August 31, 2013, no preferred shares have been allocated to individual employees, nor is any individual entitled to any minimum number of shares. As a result, the service inception date for these awards precedes the grant date, and the Company is accounting for the 2012 Retention Plan as a liability plan, using variable accounting. Prior to establishment of a grant date, the Company will estimate the fair value of the shares at each reporting period, and will recognize the compensation expense over a two-year period that began on April 2, 2012. Upon the second anniversary of the Trust’s inception, the Trust’s governance will allocate the shares to individual employees, at which point fully vested shares will be distributed to employees. The Trust is consolidated by the Company and both the assets and deferred compensation obligation of the Trust are accounted for within the applicable preferred stock classification in the accompanying condensed consolidated balance sheets. The Company recognized approximately $0.5 million and $1.5 million of compensation expense related to the 2012 Retention Plan during the six months ended August 31, 2012 and 2013, respectively.

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Recognized Non-Cash Compensation Expense

The following table summarizes stock-based compensation expense and related tax benefits recognized by the Company in the three and six months ended August 31, 2012 and 2013:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Station operating expenses	$	296	$	1,213	$	447	$	1,466
Corporate expenses	269		1,206		507		1,616
Stock-based compensation expense included in operating expenses	565		2,419		954		3,082
Tax benefit	—		—		—		—
Recognized stock-based compensation expense, net of tax	$	565	$	2,419	$	954	$	3,082

As of August 31, 2013, there was $3.0 million of unrecognized compensation cost, net of estimated forfeitures, related to nonvested share-based compensation arrangements. The cost is expected to be recognized over a weighted average period of approximately 1.2 years.

Note 3. Intangible Assets and Goodwill

Valuation of Indefinite-lived Broadcasting Licenses

In accordance with ASC Topic 350, Intangibles—Goodwill and Other, the Company’s Federal Communications Commission (“FCC”) licenses are considered indefinite-lived intangibles. These assets, which the Company determined were its only indefinite-lived intangibles, are not subject to amortization, but are tested for impairment at least annually as discussed below.

The carrying amounts of the Company’s FCC licenses were $150.5 million as of February 28, 2013 and $150.6 million as of August 31, 2013. Pursuant to Emmis’ accounting policy, stations in a geographic market cluster are considered a single unit of accounting, provided that they are not being operated under an LMA by another broadcaster. As of February 29, 2012, our two stations in New York were considered a single unit of accounting. In connection with the execution of the LMA discussed in Note 1, the Company separated the two New York stations into separate units of accounting. The Company performed an interim impairment test of the 98.7FM license as of May 1, 2012 which resulted in an impairment charge of $11.0 million. The carrying value of the 98.7FM license subsequent to the impairment charge is $60.5 million, which approximates its fair value.

The Company generally performs its annual impairment test of indefinite-lived intangibles as of December 1 of each year. When indicators of impairment are present, as was the case with 98.7FM as noted above, the Company will perform an interim impairment test. These impairment tests may result in impairment charges in future periods.

Fair value of our FCC licenses is estimated to be the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. To determine the fair value of our FCC licenses, the Company uses an income valuation method when it performs its impairment tests. Under this method, the Company projects cash flows that would be generated by each of its units of accounting assuming the unit of accounting was commencing operations in its respective market at the beginning of the valuation period. This cash flow stream is discounted to arrive at a value for the FCC license. The Company assumes the competitive situation that exists in each market remains unchanged, with the exception that its unit of accounting commenced operations at the beginning of the valuation period. In doing so, the Company extracts the value of going concern and any other assets acquired, and strictly values the FCC license. Major assumptions involved in this analysis include market revenue, market revenue growth rates, unit of accounting audience share, unit of accounting revenue share and discount rate. Each of these assumptions may change in the future based upon changes in general economic conditions, audience behavior, consummated transactions, and numerous other variables that may be beyond our control. When evaluating our radio broadcasting licenses for impairment, the testing is performed at the unit of accounting level as determined by ASC Topic 350-30-35. In our case, radio stations in a geographic market cluster are considered a single unit of accounting, provided that they are not being operated under an LMA.

Valuation of Goodwill

ASC Topic 350-20-35 requires the Company to test goodwill for impairment at least annually using a two-step process. The first step is a screen for potential impairment, while the second step measures the amount of impairment. The Company conducts the two-step impairment test on December 1 of each fiscal year, unless indications of impairment exist during an

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interim period. During the quarter ended August 31, 2013, no new or additional impairment indicators emerged; hence, no interim impairment testing was warranted. When assessing its goodwill for impairment, the Company uses an enterprise valuation approach to determine the fair value of each of the Company’s reporting units (radio stations grouped by market and magazines on an individual basis). Management determines enterprise value for each of its reporting units by multiplying the two-year average station operating income generated by each reporting unit (current year based on actual results and the next year based on budgeted results) by an estimated market multiple. The Company uses a blended station operating income trading multiple of publicly traded radio operators as a benchmark for the multiple it applies to its radio reporting units. There are no publicly traded publishing companies that are focused predominantly on city and regional magazines as is our publishing segment. Therefore, the market multiple used as a benchmark for our publishing reporting units has been based on recently completed transactions within the city and regional magazine industry or analyst reports that include valuations of magazine divisions within publicly traded media conglomerates. Management believes this methodology for valuing radio and publishing properties is a common approach and believes that the multiples used in the valuation are reasonable given our peer comparisons and recent market transactions. To corroborate the step-one reporting unit fair values determined using the market approach described above, management also uses an income approach, which is a discounted cash flow method to determine the fair value of the reporting unit.

This enterprise valuation is compared to the carrying value of the reporting unit for the first step of the goodwill impairment test. If the reporting unit exhibits impairment, the Company proceeds to the second step of the goodwill impairment test. For its step-two testing, the enterprise value is allocated among the tangible assets, indefinite-lived intangible assets (FCC licenses valued using a direct-method valuation approach) and unrecognized intangible assets, such as customer lists, with the residual amount representing the implied fair value of the goodwill. To the extent the carrying amount of the goodwill exceeds the implied fair value of the goodwill, the difference is recorded as an impairment charge in the statement of operations.

As of February 28, 2013 and August 31, 2013, the carrying amount of the Company’s goodwill was $12.6 million. Approximately $4.6 million of our goodwill was attributable to our radio division as of February 28, 2013 and August 31, 2013. Approximately $8.0 million of our goodwill was attributable to our publishing division as of February 28, 2013 and August 31, 2013.

Definite-lived intangibles

The Company’s definite-lived intangible assets consist of trademarks which are amortized over the period of time the assets are expected to contribute directly or indirectly to the Company’s future cash flows. The trademarks have a weighted average remaining useful life of 11.9 years. Amortization expense related to trademarks is expected to be less than $0.1 million in each of the next five successive fiscal years.

Note 4. Long-term Debt

Long-term debt was comprised of the following at February 28, 2013 and August 31, 2013:

	As of February 28, 2013			As of August 31, 2013
2012 Credit Agreement debt :
Revolver	$	5,000		$	5,000
Term Loan	62,000			58,000
Total 2012 Credit Agreement debt	67,000			63,000
98.7FM nonrecourse debt	79,068			77,053
Current maturities	(12,126		)	(12,331		)
Unamortized original issue discount	(2,448		)	(2,192		)
Total long-term debt	$	131,494		$	125,530

2012 Credit Agreement Debt and Related Amendment

On December 28, 2012, Emmis Operating Company (“EOC”), a wholly owned subsidiary of Emmis, entered into a credit facility (the “2012 Credit Agreement”) to provide for total borrowings of up to $100 million, including (i) an $80 million term loan and (ii) a $20 million revolver, of which $5 million may be used for letters of credit.

A portion of the proceeds under the 2012 Credit Agreement were used to repay (i) EOC’s indebtedness under and terminate the 2006 Credit Agreement, for which Bank of America, N.A. acted as administrative agent and (ii) the Notes issued

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under the Note Purchase Agreement dated as of November 11, 2011 between Emmis Communications Corporation, as Issuer, and Zell Credit Opportunities Master Fund, L.P., as Purchaser, as amended, (“Senior Unsecured Notes”).

In addition to repaying in full the 2006 Credit Agreement and the Senior Unsecured Notes, the proceeds of the borrowings under the 2012 Credit Agreement were used for working capital needs and other general corporate purposes of Emmis, and certain other transactions permitted under the 2012 Credit Agreement.

All outstanding amounts under the 2012 Credit Agreement bear interest, at the option of EOC, at a rate equal to the Eurodollar Rate or an alternative base rate (as defined in the 2012 Credit Agreement) plus a margin. The margin over the Eurodollar Rate or the alternative base rate varies (ranging from 2.50% to 5.00%), depending on Emmis’ ratio of consolidated total debt to consolidated EBITDA, as defined in the agreement. Interest is due on a calendar month basis under the alternative base rate and at least every three months under the Eurodollar Rate. Beginning 60 days after closing, the 2012 Credit Agreement required Emmis to maintain fixed interest rates, for at least one year, on a minimum of 50% of its total outstanding debt, as defined. See Note 7 for more discussion of our interest rate swap agreement.

The term loan and revolver both mature on December 28, 2017. Beginning on April 1, 2013, the borrowings under the term loan are payable in quarterly installments equal to 2.50% of the original balance of the term loan, with the remaining balance payable December 28, 2017. Proceeds from raising additional equity, issuing additional subordinated debt or from asset sales, as well as excess cash flow, subject to certain exceptions, are required to be used to repay amounts outstanding under the 2012 Credit Agreement.

Approximately $0.5 million of transaction fees related to the 2012 Credit Agreement were capitalized and are being amortized over the life of the 2012 Credit Agreement. These deferred debt costs are included in other assets, net in the condensed consolidated balance sheets. The 2012 Credit Agreement is carried on our condensed consolidated balance sheets net of an original issue discount. The original issue discount, which was $2.5 million as of the issuance of the debt on December 28, 2012 and $2.2 million as of August 31, 2013, is being amortized as additional interest expense over the life of the 2012 Credit Agreement.

Borrowing under the 2012 Credit Agreement depends upon our continued compliance with certain operating covenants and financial ratios, including leverage and fixed charge coverage as specifically defined. The operating covenants and other restrictions with which we must comply include, among others, restrictions on additional indebtedness, incurrence of liens, engaging in businesses other than our primary business, paying certain dividends, redeeming or repurchasing capital stock of Emmis, acquisitions and asset sales. No default or event of default has occurred or is continuing. The 2012 Credit Agreement provides that an event of default will occur if there is a “change in control” of Emmis, as defined. The payment of principal, premium and interest under the 2012 Credit Agreement is fully and unconditionally guaranteed, jointly and severally, by ECC and most of its existing wholly-owned domestic subsidiaries. Substantially all of Emmis’ assets, including the stock of most of Emmis’ wholly-owned, domestic subsidiaries are pledged to secure the 2012 Credit Agreement.

On August 9, 2013, Emmis entered into the First Amendment to Credit Agreement, Security Agreement and Subsidiary Guarantee (“First Amendment”) which allowed for the formation of NextRadio LLC, a wholly-owned subsidiary of Emmis, as an excluded subsidiary under the Credit Agreement and facilitated the transactions contemplated by the agreement with Sprint dated August 9, 2013 (see Note 5). No financial covenants were impacted by the First Amendment and total costs were less than $0.1 million.

We were in compliance with all financial and non-financial covenants as of August 31, 2013. Our Senior Leverage Ratio, Total Leverage Ratio and Minimum Fixed Charge Coverage Ratio (each as defined in the 2012 Credit Agreement) requirements and actual amounts as of August 31, 2013 were as follows:

	As of August 31, 2013
	Covenant Requirement	Actual Results
Maximum Senior Leverage Ratio	4.00 : 1.00	3.12 : 1.00
Maximum Total Leverage Ratio	4.75 : 1.00	3.12 : 1.00
Minimum Fixed Charge Coverage Ratio	1.25 : 1.00	1.42 : 1.00

98.7FM Nonrecourse Debt

On May 30, 2012, the Company, through wholly-owned, newly-created subsidiaries, issued $82.2 million of nonrecourse notes. Teachers Insurance and Annuity Association of America (“TIAA”), through a participation agreement with Wells Fargo

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Bank Northwest, National Association (“Wells Fargo”), is entitled to receive payments made on the notes. The notes are obligations only of the newly-created subsidiaries, are non-recourse to the rest of the Company’s subsidiaries and are secured by the assets of the newly-created subsidiaries, including the payments made to the newly-created subsidiary related to the 98.7FM LMA, which are guaranteed by Disney Enterprises, Inc. The notes bear interest at 4.1%.

Based on amounts outstanding at August 31, 2013, mandatory principal payments of long-term debt for the next five years and thereafter are summarized below:

	2012 Credit Agreement
Year Ended	Revolver		Term Loan		98.7FM Debt		Total
February 28 (29),	Amortization		Amortization		Amortization		Amortization
2014	$	—	$	4,000	$	2,111	$	6,111
2015	—		8,000		4,541		12,541
2016	—		8,000		4,990		12,990
2017	—		8,000		5,453		13,453
2018	5,000		30,000		6,039		41,039
Thereafter	—		—		53,919		53,919
Total	$	5,000	$	58,000	$	77,053	$	140,053

Note 5. Significant Events

Next Radio LLC - Sprint Agreement

On August 9, 2013, NextRadio LLC entered into an agreement with Sprint/United Management Company (“Sprint”) whereby Sprint agreed to pre-load the Company's smartphone application, NextRadio, in a minimum of 30 million FM-enabled wireless devices on the Sprint wireless network over a three-year period. In return, NextRadio LLC agreed to pay Sprint $15 million per year in equal quarterly installments over the three year term and to share with Sprint certain revenue generated by the NextRadio app. Emmis has not guaranteed NextRadio LLC's performance under this agreement and Sprint does not have recourse to any Emmis-related entity other than NextRadio LLC. Additionally, the agreement does not limit the ability of NextRadio LLC to place the NextRadio app on FM-enabled devices on other wireless networks.

Nearly all of the largest radio broadcasters and many smaller radio broadcasters have expressed support for NextRadio LLC's agreement with Sprint. Accordingly, NextRadio LLC has entered into a number of funding agreements with radio broadcasters and other participants in the radio industry to collect and remit cash to Sprint to fulfill the quarterly payment obligation. As part of some of these funding agreements, Emmis agreed to certain limitations on the operation of its NextRadio and TagStation businesses, including assurances of access to the NextRadio app and to TagStation (the cloud-based engine that provides data to the NextRadio app), and limitations on sale of the businesses to potential competitors of the U.S. radio industry. Emmis also granted the U.S. radio industry (as defined in the funding agreements) a call option on substantially all of the assets used in the NextRadio and TagStation businesses in the United States. The call option may be exercised in August 2017 or August 2019 by paying Emmis a purchase price equal to the greater of (i) the appraised fair market value of the NextRadio and TagStation businesses, or (ii) two times Emmis' cumulative investments in the development of the businesses. If the call option is exercised, the businesses will continue to be subject to the operating limitations applicable today, and no radio operator will be permitted to own more than 30% of the NextRadio and TagStation businesses.

NextRadio LLC made the first $3.75 million quarterly payment to Sprint on August 9, 2013. Emmis paid $0.8 million of the first quarterly payment amount, which is being expensed over the three-month period ending November 8, 2013. Emmis has determined that NextRadio LLC is a variable interest entity (VIE) and that Emmis is the primary beneficiary because the Company has the power to direct substantially all of the activities of NextRadio LLC, and because the Company may absorb certain losses and receive certain benefits from the operations of the VIE. Emmis does not record any revenue or expense related to the amounts that are collected and remitted to Sprint except the portion of any payment to Sprint that was actually contributed to NextRadio LLC by Emmis, which is recorded as station operating expenses, excluding depreciation and amortization expense. As of August 31, 2013, the carrying value of assets within NextRadio LLC totaled $0.6 million, which represents the balance of Emmis' prepaid asset.  NextRadio LLC had no liabilities at August 31, 2013.  

Note 6. Liquidity

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The Company continually projects its anticipated cash needs, which include its operating needs, capital needs, and principal and interest payments on its indebtedness. As of the filing of this Form 10-Q, management believes the Company can meet its liquidity needs through the end of fiscal year 2014 with cash and cash equivalents on hand and projected cash flows from operations. Based on these projections, management also believes the Company will be in compliance with its debt covenants through the end of fiscal year 2014.

Note 7. Derivative Instruments and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage interest rate exposure with the following objectives:

• manage current and forecasted interest rate risk while maintaining optimal financial flexibility and solvency

• proactively manage the Company’s cost of capital to ensure the Company can effectively manage operations and execute its business strategy, thereby maintaining a competitive advantage and enhancing shareholder value

• comply with covenant requirements in the Company’s credit facility

Cash Flow Hedges of Interest Rate Risk

The Company utilizes interest rate derivatives to add stability to cash payments for interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Under the terms of its 2012 Credit Agreement, the Company is required to fix or cap the interest rate on at least 50% of its Term Loan exposure for a two-year period ending December 28, 2014. The requirement to fix or cap interest rates can be reduced to a one-year period provided the Company’s Senior Leverage Ratio (as defined in the 2012 Credit Agreement) is at or under 2.50:1.00 as of May 31, 2014.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company’s interest rate derivatives are used to hedge the interest payment cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not record any hedge ineffectiveness in earnings during the three months and six months ended August 31, 2012 and 2013. Amounts reported in accumulated other comprehensive loss related to derivatives are reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During fiscal 2014, the Company estimates that less than $0.1 million will be reclassified as an increase to interest expense.

In February 2013, the Company entered into a two-year interest rate exchange agreement (a “Swap”), whereby the Company pays a fixed rate of 0.42% on $40 million of notional principal to Fifth Third Bank, and Fifth Third Bank pays to the Company a variable rate on the same amount of notional principal based on the one-month London Interbank Offered Rate (“LIBOR”). This agreement was the Company’s only interest rate derivative designated as a cash flow hedge of interest rate risk outstanding as of August 31, 2013.

The Company does not generally use derivatives for trading or speculative purposes.

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The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet as of February 28, 2013 and August 31, 2013. The accumulated other comprehensive loss balance related to our derivative instruments at August 31, 2013 was less than $0.1 million. The fair value of the derivative instruments was estimated by obtaining quotations from the financial institution that was the counterparty to the instrument. The fair value was an estimate of the net amount that the Company would have been required to pay on August 31, 2013, if the agreement was transferred to another party or canceled by the Company, as further adjusted by a credit adjustment required by ASC Topic 820, Fair Value Measurements and Disclosures, as discussed below. For the three months and six months ended August 31, 2013, this credit adjustment was immaterial.

	Tabular Disclosure of Fair Values of Derivative Instruments Liability Derivatives
	As of February 28, 2013			As of August 31, 2013
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest Rate Swap Agreements (Long- Term Portion)	Other Noncurrent Liabilities	107		Other Noncurrent Liabilities	59
Total derivatives designated as hedging instruments		$	107		$	59

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months and six months ended August 31, 2012 and 2013.

	For the Six Months Ended August 31,
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2013			2012		2013				2012		2013
Interest Rate Swap
Agreements	$	—	$	93	Interest expense	$	—	$	(45	)	N/A	$	—	$	—
Total	$	—	$	93		$	—	$	(45	)		$	—	$	—
	For the Three Months Ended August 31,
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2013			2012		2013				2012		2013
Interest Rate Swap
Agreements	$	—	$	27	Interest expense	$	—	$	(23	)	N/A	$	—	$	—
Total	$	—	$	27		$	—	$	(23	)		$	—	$	—

Credit-risk-related Contingent Features

The Company manages its counterparty risk by entering into derivative instruments with financial institutions where it believes the risk of credit loss resulting from nonperformance by the counterparty is low. As discussed above, the Company’s counterparty to its interest rate swap is Fifth Third Bank.

In accordance with ASC Topic 820, the Company makes a Credit Value Adjustment (CVA) to adjust the valuation of a derivative to account for our own credit risk with respect to all derivative liability positions. The CVA is accounted for as a decrease to the derivative position with the corresponding increase or decrease reflected in other comprehensive income (loss) for derivatives designated as cash flow hedges. The CVA also accounts for nonperformance risk of our counterparties in the fair value measurement of all derivative asset positions, when appropriate. As of August 31, 2013, this CVA was immaterial to the fair value of our derivative instrument.

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The Company’s interest rate swap agreement with Fifth Third Bank incorporates the loan covenant provisions of the Company’s 2012 Credit Agreement. Fifth Third Bank is a lender under the Company’s 2012 Credit Agreement. Failure to comply with the loan covenant provisions of the 2012 Credit Agreement could result in the Company being in default of its obligations under the interest rate swap agreement.

As of August 31, 2013, the Company has not posted any collateral related to the interest rate swap agreement.

Note 8. Fair Value Measurements

As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).

Recurring Fair Value Measurements

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of February 28, 2013 and August 31, 2013. The financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

	As of August 31, 2013
	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
Available for sale securities	$	—	$	—	$	6,739	$	6,739
Total assets measured at fair value on a recurring basis	$	—	$	—	$	6,739	$	6,739
Interest rate swap agreement	$	—	$	59	$	—	$	59
Total liabilities measured at fair value on a recurring basis	$	—	$	59	$	—	$	59
	As of February 28, 2013
	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
Available for sale securities	$	—	$	—	$	6,489	$	6,489
Total assets measured at fair value on a recurring basis	$	—	$	—	$	6,489	$	6,489
Interest rate swap agreement	$	—	$	107	$	—	$	107
Total liabilities measured at fair value on a recurring basis	$	—	$	107	$	—	$	107

Available for sale securities — Emmis’ available for sale securities are investments in preferred stock of companies that are not traded in active markets. The investments are recorded at fair value, which is generally estimated using significant unobservable market parameters, resulting in a level 3 categorization. At February 28, 2013 and August 31, 2013, the investments are carried at their cost basis, which management believes approximates fair value, due to the recent purchase of these investments and recent third party transactions that corroborate Emmis’ carrying value approximates current fair value.

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Interest rate swap agreement — Emmis’ derivative financial instruments consisted solely of an interest rate cash flow hedge in which the Company pays a fixed rate and receives a variable interest rate that was observable based upon a forward interest rate curve and is therefore considered a level 2 measurement.

The following table shows a reconciliation of the beginning and ending balances for fair value measurements using significant unobservable inputs:

	For the Six Months Ended August 31,
	2012		2013
	Available For Sale Securities		Available For Sale Securities		Derivative Instruments
Beginning Balance	$	160	$	6,489	$	107
Purchases	3,989		250		—
Unrealized gains in other comprehensive income	—		—		(48		)
Ending Balance	$	4,149	$	6,739	$	59

Non-Recurring Fair Value Measurements

The Company has certain assets that are measured at fair value on a non-recurring basis under circumstances and events that include those described in Note 3, Intangible Assets and Goodwill, and are adjusted to fair value only when the carrying values are more than the fair values. The categorization of the framework used to price the assets is considered a Level 3 measurement due to the subjective nature of the unobservable inputs used to determine the fair value (see Note 3 for more discussion).

Fair Value of Other Financial Instruments

The estimated fair value of financial instruments is determined using the best available market information and appropriate valuation methodologies. Considerable judgment is necessary, however, in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange, or the value that ultimately will be realized upon maturity or disposition. The use of different market assumptions may have a material effect on the estimated fair value amounts.

The following methods and assumptions were used to estimate the fair value of financial instruments:

- Cash and cash equivalents, accounts receivable and accounts payable, including accrued liabilities: The carrying amount of these assets and liabilities approximates fair value because of the short maturity of these instruments.

- Long-term debt: The Company’s long-term debt is not actively traded and is considered a level 3 measurement. The Company believes the current carrying value of its long-term debt approximates its fair value.

Note 9. Segment Information

The Company’s operations are aligned into two business segments: (i) Radio and (ii) Publishing. These business segments are consistent with the Company’s management of these businesses and its financial reporting structure. Corporate expenses are not allocated to reportable segments. The results of operations of various sold businesses have been classified as discontinued operations and have been excluded from the segment disclosures below. See Note 1 for more discussion of our discontinued operations. The Company’s segments operate exclusively in the United States.

The accounting policies as described in the summary of significant accounting policies included in the Company’s Annual Report filed on Form 10-K, for the year ended February 28, 2013, and in Note 1 to these condensed consolidated financial statements, are applied consistently across segments.

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Three Months Ended August 31, 2013	Radio			Publishing			Corporate			Consolidated
Net revenues	$	41,259		$	13,708		$	—		$	54,967
Station operating expenses excluding depreciation and amortization expense	28,000			13,938			—			41,938
Corporate expenses excluding depreciation and amortization expense	—			—			5,070			5,070
Hungary license litigation and related expenses	1,043			—			—			1,043
Depreciation and amortization	604			61			548			1,213
Gain of sale of fixed assets	(1		)	—			—			(1		)
Operating income (loss)	$	11,613		$	(291	)	$	(5,618	)	$	5,704

Three Months Ended August 31, 2012	Radio			Publishing			Corporate			Consolidated
Net revenues	$	39,964		$	12,965		$	—		$	52,929
Station operating expenses excluding depreciation and amortization expense	25,988			13,790			—			39,778
Corporate expenses excluding depreciation and amortization expense	—			—			4,161			4,161
Hungary license litigation and related expenses	210			—			—			210
Depreciation and amortization	598			82			489			1,169
Gain on sale of fixed assets	(3		)	(3		)	—			(6		)
Operating income (loss)	$	13,171		$	(904	)	$	(4,650	)	$	7,617

Six Months Ended August 31, 2013	Radio			Publishing			Corporate			Consolidated
Net revenues	$	78,185		$	27,368		$	—		$	105,553
Station operating expenses excluding depreciation and amortization expense	50,911			28,739			—			79,650
Corporate expenses excluding depreciation and amortization expense	—			—			9,470			9,470
Hungary license litigation and related expenses	1,295			—			—			1,295
Depreciation and amortization	1,198			123			1,068			2,389
Gain on sale of fixed assets	(1		)	—			—			(1		)
Operating income (loss)	$	24,782		$	(1,494	)	$	(10,538	)	$	12,750

Six Months Ended August 31, 2012	Radio			Publishing			Corporate			Consolidated
Net revenues	$	74,840		$	27,057		$	—		$	101,897
Station operating expenses excluding depreciation and amortization expense	52,308			28,042			—			80,350
Corporate expenses excluding depreciation and amortization expense	—			—			9,133			9,133
Hungary license litigation and related expenses	414			—			—			414
Impairment loss	10,971			—			—			10,971
Depreciation and amortization	1,176			168			950			2,294
Gain on sale of fixed assets	(10,003		)	(3		)	—			(10,006		)
Operating income (loss)	$	19,974		$	(1,150	)	$	(10,083	)	$	8,741

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			As of February 28, 2013
	Radio		Publishing		Corporate		Consolidated
Assets — continuing operations	$	209,721	$	21,005	$	30,136	$	260,862
Assets — discontinued operations	630		132		—		762
Total assets	$	210,351	$	21,137	$	30,136	$	261,624
			As of August 31, 2013
	Radio		Publishing		Corporate		Consolidated
Assets — continuing operations	$	215,736	$	21,033	$	28,930	$	265,699
Assets — discontinued operations	465		—		—		465
Total assets	$	216,201	$	21,033	$	28,930	$	266,164

Note 10. Regulatory, Legal and Other Matters

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

Emmis and certain of its officers and directors were named as defendants in a lawsuit filed April 16, 2012 by certain holders of Preferred Stock (the “Lock-Up Group”) in the United States District Court for the Southern District of Indiana entitled Corre Opportunities Fund, LP, et al. v. Emmis Communications Corporation, et al. The plaintiffs alleged, among other things, that Emmis and the other defendants violated various provisions of the federal securities laws and breached fiduciary duties in connection with Emmis’ entry into total return swap agreements and voting agreements with certain holders of Emmis Preferred Stock, as well as by issuing shares of Preferred Stock to Emmis’ 2012 Retention Plan and Trust (the “Trust”) and entering into a voting agreement with the trustee of the Trust. The plaintiffs also alleged that Emmis violated certain provisions of Indiana corporate law by directing the voting of the shares of Preferred Stock subject to the total return swap agreements (the “Swap Shares”) and the shares of Preferred Stock held by the Trust (the “Trust Shares”) in favor of certain amendments to Emmis’ Articles of Incorporation.

Emmis filed an answer denying the material allegations of the complaint, and filed a counterclaim seeking a declaratory judgment that Emmis could legally direct the voting of the Swap Shares and the Trust Shares in favor of the proposed amendments.

On August 31, 2012, the U.S. District Court denied plaintiffs request for a preliminary injunction. Plaintiffs subsequently filed an amended complaint seeking monetary damages and dismissing all claims against the individual officer and director defendants. Pending a ruling on motions for summary judgment filed by the Company and by plaintiffs, the matter is currently set for trial in January 2014. Emmis is defending this lawsuit vigorously.

Certain individuals and groups have challenged applications for renewal of the FCC licenses of certain of the Company’s stations. The challenges to the license renewal applications are currently pending before the FCC. Emmis does not expect the challenges to result in the denial of any license renewals.

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Note: Certain statements included in this report or in the financial statements contained herein which are not statements of historical fact, including but not limited to those identified with the words “expect,” “should,” “will” or “look” are intended to be, and are, by this Note, identified as “forward-looking statements,” as defined in the Securities and Exchange Act of 1934, as amended. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statement. Such factors include, among others:

• general economic and business conditions;

• fluctuations in the demand for advertising and demand for different types of advertising media;

• our ability to service our outstanding debt;

• loss of key personnel;

• increased competition in our markets and the broadcasting industry;

• our ability to attract and secure programming, on-air talent, writers and photographers;

• inability to obtain (or to obtain timely) necessary approvals for purchase or sale transactions or to complete the transactions for other reasons generally beyond our control;

• increases in the costs of programming, including on-air talent;

• new or changing regulations of the Federal Communications Commission or other governmental agencies;

• changes in radio audience measurement methodologies;

• competition from new or different technologies;

• war, terrorist acts or political instability; and other factors mentioned in other documents filed by the Company with the Securities and Exchange Commission.

For a more detailed discussion of these and other risk factors, see the Risk Factors section of our Annual Report on Form 10-K, for the year ended February 28, 2013.Emmis does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

GENERAL

We are a diversified media company. We own and operate radio and publishing properties located primarily in the United States. Our revenues are mostly affected by the advertising rates our entities charge, as advertising sales represent approximately 70% of our consolidated revenues. These rates are in large part based on our entities’ ability to attract audiences/subscribers in demographic groups targeted by their advertisers. Arbitron Inc. generally measures radio station ratings in our domestic markets on a weekly basis using a passive digital system of measuring listening (the Portable People Meter^™). Because audience ratings in a station’s local market are critical to the station’s financial success, our strategy is to use market research and advertising and promotion to attract and retain audiences in each station’s chosen demographic target group.

Our revenues vary throughout the year. As is typical in the broadcasting industry, our revenues and operating income are usually lowest in our fourth fiscal quarter.

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In addition to the sale of advertising time for cash, stations typically exchange advertising time for goods or services, which can be used by the station in its business operations. These barter transactions are recorded at the estimated fair value of the product or service received. We generally confine the use of such trade transactions to promotional items or services for which we would otherwise have paid cash. In addition, it is our general policy not to pre-empt advertising spots paid for in cash with advertising spots paid for in trade.

The following table summarizes the sources of our revenues for the three-month and six-month periods ended August 31, 2012 and 2013. All revenues generated by our international radio properties are included in the “Local” category. The category “Non Traditional” principally consists of ticket sales and sponsorships of events our stations and magazines conduct in their local markets. The category “Other” includes, among other items, revenues generated by the websites of our entities and barter.

	Three Months Ended August 31,								Six Months Ended August 31,
	2012		% of Total		2013		% of Total		2012		% of Total		2013		% of Total
	(Dollars in thousands)
Net revenues:
Local	$	25,503	48.2	%	$	27,265	49.6	%	$	53,335	52.3	%	$	56,102	53.2	%
National	8,076		15.3	%	8,360		15.2	%	16,238		15.9	%	16,214		15.4	%
Political	237		0.4	%	32		0.1	%	1,100		1.1	%	240		0.2	%
Publication Sales	1,491		2.8	%	1,536		2.8	%	3,043		3.0	%	3,100		2.9	%
Non Traditional	8,749		16.5	%	8,696		15.8	%	11,867		11.6	%	12,069		11.4	%
LMA Fees	2,582		4.9	%	2,639		4.8	%	3,443		3.4	%	5,240		5.0	%
Other	6,291		11.9	%	6,439		11.7	%	12,871		12.7	%	12,588		11.9	%
Total net revenues	$	52,929			$	54,967			$	101,897			$	105,553

As previously mentioned, we derive approximately 70% of our net revenues from advertising sales. Our radio stations derive a higher percentage of their advertising revenues from local sales than our publishing entities. In the six-month period ended August 31, 2013, local sales, excluding political revenues, represented approximately 81% and 66% of our advertising revenues for our radio and publishing divisions, respectively.

No customer represents more than 10% of our consolidated net revenues. Our top ten categories for radio represent approximately 62% of our radio division’s total advertising net revenues for the six-month periods ended August 31, 2012 and 2013. The automotive industry was the largest category for our radio division for the six-month periods ended August 31, 2012 and 2013, representing approximately 11% and 12% of our radio net revenues, respectively.

The majority of our expenses are fixed in nature, principally consisting of salaries and related employee benefit costs, office and tower rent, utilities, property and casualty insurance and programming-related expenses. However, approximately 20% of our expenses vary in connection with changes in revenues. These variable expenses primarily relate to sales commissions and bad debt reserves. In addition, costs related to our marketing and promotions department are highly discretionary and incurred primarily to maintain and/or increase our audience and market share.

KNOWN TRENDS AND UNCERTAINTIES

Although advertising revenues have stabilized following the recent global recession, radio revenue growth remains challenged. Management believes this is principally the result of two factors: (1) the proliferation of advertising inventory caused by the emergence of new media, such as various media distributed via the Internet, telecommunication companies and cable interconnects, as well as social networks and social coupon sites, all of which are gaining advertising share against radio and other traditional media and (2) the perception of investors and advertisers that satellite radio and portable media players diminish the effectiveness of radio advertising.

The Company and the radio industry have begun several initiatives to address these issues. The radio industry is working aggressively to increase the number of portable digital media devices that contain an FM tuner, including smartphones and music players. In many countries, FM tuners are common features in portable digital media devices. Including FM as a feature on these devices has the potential to increase radio listening and improve perception of the radio industry while offering network providers the benefits of a proven emergency notification system, reduced network congestion from audio streaming services, and a host of new revenue generating applications. Emmis is at the leading edge of this initiative and has developed TagStation^®, a cloud-based software platform that allows a broadcaster to manage album art, meta data and enhanced advertising on its various broadcasts, and NextRadio^®, a hybrid radio smartphone application, as an industry solution to make the user experience of listening to free over-the-air radio broadcasts on their enabled smartphones a rich experience. In August

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2013, Sprint began enabling FM tuners and pre-loading the NextRadio^® application on certain models of smartphones. The radio industry continues to work with other leading United States network providers, device manufacturers, regulators and legislators to ensure that FM tuners are included in future portable digital media devices.

The Company has also aggressively worked to harness the power of broadband and mobile media distribution in the development of emerging business opportunities by becoming one of the fifteen largest streaming audio providers in the United States, developing highly interactive websites with content that engages our listeners, using SMS texting and delivering real-time traffic to navigation devices.

Along with the rest of the radio industry, the majority of our stations have deployed HD Radio^®. HD Radio^® offers listeners advantages over standard analog broadcasts, including improved sound quality and additional digital channels. To make the rollout of HD Radio^® more efficient, a consortium of broadcasters representing a majority of the radio stations in nearly all of our markets have agreed to work together in each radio market to ensure the most diverse consumer offering possible and to accelerate the rollout of HD Radio^® receivers, particularly in automobiles. In addition to offering secondary channels, the HD Radio^® spectrum allows broadcasters to transmit other forms of data. We are participating in a joint venture with other broadcasters to provide the bandwidth that a third party uses to transmit location-based data to hand-held and in-car navigation devices. It is unclear what impact HD Radio^® will have on the markets in which we operate.

The results of our radio operations are heavily dependent on the results of our stations in the New York and Los Angeles markets. These markets account for nearly 50% of our radio net revenues. During the six months ended August 31, 2013, KPWR-FM in Los Angeles experienced revenue growth that was better than its overall market, but revenue growth at WQHT-FM in New York lagged its overall market growth. Our results in New York and Los Angeles are often more volatile than our larger competitors due to our lack of scale in these markets. Relative to our competitors, we are overly dependent on the performance of one station in each of these markets, and as the competitive environment shifts, our ability to adapt is limited. Furthermore, some of our competitors that operate larger station clusters in New York and Los Angeles are able to leverage their market share to extract a greater percentage of available advertising revenue through discounting unit rates and may be able to realize operating efficiencies by programming multiple stations in these markets.

As part of our business strategy, we continually evaluate potential acquisitions of radio stations, publishing properties and other businesses that we believe hold promise for long-term appreciation in value and leverage our strengths. However, Emmis Operating Company’s 2012 Credit Agreement substantially limits our ability to make acquisitions. We also regularly review our portfolio of assets and may opportunistically dispose of assets when we believe it is appropriate to do so. See Note 1 to our condensed consolidated financial statements for a discussion of various dispositions.

CRITICAL ACCOUNTING POLICIES

Critical accounting policies are defined as those that encompass significant judgments and uncertainties, and potentially lead to materially different results under different assumptions and conditions. We believe that our critical accounting policies are those described below.

Revenue Recognition

Broadcasting revenue is recognized as advertisements are aired. Publication revenue is recognized in the month of delivery of the publication. Both broadcasting revenue and publication revenue recognition is subject to meeting certain conditions such as persuasive evidence that an arrangement exists and collection is reasonably assured. LMA fee revenue is recognized on a straight-line basis over the term of the LMA. These criteria are generally met at the time the advertisement is aired for broadcasting revenue and upon delivery of the publication for publication revenue. Advertising revenues presented in the financial statements are reflected on a net basis, after the deduction of advertising agency fees, usually at a rate of 15% of gross revenues.

Allowance for Doubtful Accounts

An allowance for doubtful accounts is recorded based on management’s judgment of the collectability of receivables. When assessing the collectability of receivables, management considers, among other things, historical loss experience and existing economic conditions.

FCC Licenses and Goodwill

We have made acquisitions in the past for which a significant amount of the purchase price was allocated to FCC licenses and goodwill assets. As of August 31, 2013, we have recorded approximately $163.2 million in goodwill and FCC licenses, which represents approximately 61% of our total assets.

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In the case of our U.S. radio stations, we would not be able to operate the properties without the related FCC license for each property. FCC licenses are renewed every eight years; consequently, we continually monitor our stations’ compliance with the various regulatory requirements. Historically, all of our FCC licenses have been renewed at the end of their respective periods, and we expect that all FCC licenses will continue to be renewed in the future. We consider our FCC licenses to be indefinite-lived intangibles.

We do not amortize goodwill or other indefinite-lived intangible assets, but rather test for impairment at least annually or more frequently if events or circumstances indicate that an asset may be impaired. When evaluating our radio broadcasting licenses for impairment, the testing is performed at the unit of accounting level as determined by Accounting Standards Codification (“ASC”) Topic 350-30-35. In our case, radio stations in a geographic market cluster are considered a single unit of accounting, provided that they are not being operated under an LMA by another broadcaster.

We complete our annual impairment tests on December 1 of each year and perform additional interim impairment testing whenever triggering events suggest such testing is warranted.

Valuation of Indefinite-lived Broadcasting Licenses

Fair value of our FCC licenses is estimated to be the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. To determine the fair value of our FCC licenses, the Company uses an income valuation method when it performs its impairment tests. Under this method, the Company projects cash flows that would be generated by each of its units of accounting assuming the unit of accounting was commencing operations in its respective market at the beginning of the valuation period. This cash flow stream is discounted to arrive at a value for the FCC license. The Company assumes the competitive situation that exists in each market remains unchanged, with the exception that its unit of accounting commenced operations at the beginning of the valuation period. In doing so, the Company extracts the value of going concern and any other assets acquired, and strictly values the FCC license. Major assumptions involved in this analysis include market revenue, market revenue growth rates, unit of accounting audience share, unit of accounting revenue share and discount rate. Each of these assumptions may change in the future based upon changes in general economic conditions, audience behavior, consummated transactions, and numerous other variables that may be beyond our control.

Valuation of Goodwill

ASC Topic 350 requires the Company to test goodwill for impairment at least annually using a two-step process. The first step is a screen for potential impairment, while the second step measures the amount of impairment. The Company conducts the two-step impairment test on December 1 of each fiscal year, unless indications of impairment exist during an interim period. When assessing its goodwill for impairment, the Company uses an enterprise valuation approach to determine the fair value of each of the Company’s reporting units (radio stations grouped by market and magazines on an individual basis). Management determines enterprise value for each of its reporting units by multiplying the two-year average station operating income generated by each reporting unit (current year based on actual results and the next year based on budgeted results) by an estimated market multiple. The Company uses a blended station operating income trading multiple of publicly traded radio operators as a benchmark for the multiple it applies to its radio reporting units. There are no publicly traded publishing companies that are focused predominantly on city and regional magazines as is our publishing segment. Therefore, the market multiple used as a benchmark for our publishing reporting units is based on recently completed transactions within the city and regional magazine industry or analyst reports that include valuations of magazine divisions within publicly traded media conglomerates. Management believes this methodology for valuing radio and publishing properties is a common approach and believes that the multiples used in the valuation are reasonable given our peer comparisons and recent market transactions. To corroborate the step-one reporting unit fair values determined using the market approach described above, management also uses an income approach, which is a discounted cash flow method to determine the fair value of the reporting unit.

This enterprise valuation is compared to the carrying value of the reporting unit for the first step of the goodwill impairment test. If the reporting unit exhibits impairment, the Company proceeds to the second step of the goodwill impairment test. For its step-two testing, the enterprise value is allocated among the tangible assets, indefinite-lived intangible assets (FCC licenses valued using a direct-method valuation approach) and unrecognized intangible assets, such as customer lists, with the residual amount representing the implied fair value of the goodwill. To the extent the carrying amount of the goodwill exceeds the implied fair value of the goodwill, the difference is recorded as an impairment charge in the statement of operations.

Deferred Taxes

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequence of events that have been recognized in the Company’s financial statements or income tax returns. Income taxes are recognized during the year in which the underlying transactions are reflected in the consolidated statements of operations. Deferred taxes are provided for temporary differences between

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amounts of assets and liabilities as recorded for financial reporting purposes and amounts recorded for income tax purposes. After determining the total amount of deferred tax assets, the Company determines whether it is more likely than not that some portion of the deferred tax assets will not be realized. If the Company determines that a deferred tax asset is not likely to be realized, a valuation allowance will be established against that asset to record it at its expected realizable value.

Estimate of Effective Tax Rates

We estimate the effective tax rates and associated liabilities or assets for each legal entity within Emmis. These estimates are based upon our interpretation of United States and local tax laws as they apply to our legal entities and our overall tax structure. Audits by local tax jurisdictions, including the United States Government, could yield different interpretations from our own and cause the Company to owe more taxes than originally recorded. We utilize advisors in the various tax jurisdictions to evaluate our position and to assist in our calculation of our tax expense and related assets and liabilities.

Results of Operations for the Three-month and Six-Month Periods Ended August 31, 2013, Compared to August 31, 2012

Net revenues:

	For the Three Months Ended August 31,								For the Six Months Ended August 31,
	2012		2013		$ Change		% Change		2012		2013		$ Change		% Change
	(As reported, amounts in thousands)
Net revenues:
Radio	$	39,964	$	41,259	$	1,295	3.2	%	$	74,840	$	78,185	$	3,345	4.5	%
Publishing	12,965		13,708		743		5.7	%	27,057		27,368		311		1.1	%
Total net revenues	$	52,929	$	54,967	$	2,038	3.9	%	$	101,897	$	105,553	$	3,656	3.6	%

Radio net revenues increased during the three-month and six-month periods ended August 31, 2013 as compared to the same period of the prior year due to strong station performance in most of the markets in which we operate. We typically monitor the performance of our domestic stations against the aggregate performance of the markets in which we operate based on reports for the periods prepared by Miller Kaplan. Miller Kaplan reports are generally prepared on a gross revenues basis and exclude revenues from barter arrangements. Miller Kaplan reported gross revenues for our domestic radio markets increased 4.2% for the six-month period ended August 31, 2013 as compared to the same period of the prior year. Our gross revenues as reported to Miller Kaplan increased 5.3% for the six-month period ended August 31, 2013 as compared to the same period of the prior year. For the six-month period ending August 31, 2013, our gross revenues exceeded the market average in all of our markets except New York. Miller Kaplan does not report gross revenue market data for our Terre Haute market. For the six-month period ended August 31, 2013 as compared to the same period of the prior year, our average rate per minute for our domestic radio stations was up 4.9%, and our minutes sold were down 0.2%.

Publishing net revenues increased in the three-month and six-month periods ended August 31, 2013 as compared to the same period of the prior year mostly due to increased advertising demand in the second quarter. All but one of our titles reported revenue growth for the three months ended August 31, 2013 as compared to the same period of the prior year.

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Station operating expenses excluding depreciation and amortization expense:

	For the Three Months Ended August 31,								For the Six Months Ended August 31,
	2012		2013		$ Change		% Change		2012		2013		$ Change			% Change
	(As reported, amounts in thousands)
Station operating expenses excluding depreciation and amortization expense:
Radio	$	25,988	$	28,000	$	2,012	7.7	%	$	52,308	$	50,911	$	(1,397	)	(2.7	)%
Publishing	13,790		13,938		148		1.1	%	28,042		28,739		697			2.5	%
Total station operating expenses excluding depreciation and amortization expense	$	39,778	$	41,938	$	2,160	5.4	%	$	80,350	$	79,650	$	(700	)	(0.9	)%

The increase in station operating expenses, excluding depreciation and amortization expense, for our radio division for the three months ended August 31, 2013 was predominately due to $0.6 million of expenses related to our smartphone application ($0.4 million of which related to development and application roll-out related costs and $0.2 million of which related to amortization of the first quarterly fee paid to Sprint) and a $0.6 million increase in noncash compensation expenses, most of which related to the 2012 Retention Trust Plan. Excluding these items, radio operating expenses excluding depreciation and amortization expense would have increased $0.9 million or 3.5%. The decrease in station operating expenses excluding depreciation and amortization expense for our radio division for the six months ended August 31, 2013 is mainly attributable to the execution of the LMA of 98.7FM on April 26, 2012, which significantly reduced ongoing operating expenses related to 98.7FM. Furthermore, we incurred approximately $3.4 million of severance and contract termination costs associated with the transaction. Excluding the effects of the 98.7FM LMA and related severance and contract termination costs, station operating expenses excluding depreciation and amortization expense would have increased approximately 4.5% in the six-month period ended August 31, 2013 largely due to increased noncash compensation expense and expenses related to our smartphone application as discussed above.

Station operating expenses excluding depreciation and amortization expense for publishing increased during the three months and six months ended August 31, 2013 mostly due to the increased print production costs, increased noncash compensation expense, and continued strategic investments in sales, marketing and digital initiatives.

Corporate expenses excluding depreciation and amortization expense:

	For the Three Months Ended August 31,								For the Six Months Ended August 31,
	2012		2013		$ Change		% Change		2012		2013		$ Change		% Change
	(As reported, amounts in thousands)
Corporate expenses excluding depreciation and amortization expense	$	4,161	$	5,070	$	909	21.8	%	$	9,133	$	9,470	$	337	3.7	%

Corporate expenses excluding depreciation and amortization expense increased during the three months ended August 31, 2013 primarily due to higher noncash compensation expense related to the 2012 Retention Trust Plan and contractual bonuses that were paid in stock. Corporate expenses excluding depreciation and amortization also increased for the six months ended August 31, 2013 as compared to the same period of the prior year due to increased noncash compensation expense as discussed above.

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Hungary license litigation and related expenses:

	For the Three Months Ended August 31,								For the Six Months Ended August 31,
	2012		2013		$ Change		% Change		2012		2013		$ Change		% Change
	(As reported, amounts in thousands)
Hungary license litigation and related expenses	$	210	$	1,043	$	833	396.7	%	$	414	$	1,295	$	881	212.8	%

On October 28, 2009, the Hungarian National Radio and Television Board (ORTT) announced that it was awarding to another bidder the national radio license then held by our majority-owned subsidiary, Slager. Slager ceased broadcasting effective November 19, 2009. The Company believes that the awarding of the license to the other bidder was unlawful. In October 2011, Emmis filed for arbitration with the International Centre for Settlement of Investment Disputes (“ICSID”) seeking resolution of its claim. A jurisdictional hearing has been scheduled by the ICSID in December 2013, and the Company believes that final resolution of its claim may take several years. The increase in expenses for the three months and six months ended August 31, 2013 is mostly due to legal costs incurred in connection with our preparation for the December 2013 ICSID hearing.

Impairment loss:

	For the Three Months Ended August 31,							For the Six Months Ended August 31,
	2012		2013		$ Change		% Change	2012		2013		$ Change			% Change
	(As reported, amounts in thousands)
Impairment loss:
Radio	$	—	$	—	$	—	N/A	$	10,971	$	—	$	(10,971	)	N/A

Pursuant to the Company’s accounting policy, a station operating under an LMA is considered a single unit of accounting. In connection with the execution of the 98.7FM LMA during the three months ended May 31, 2012, the Company determined that the 98.7FM FCC License, considered a single unit of accounting due to the execution of an LMA, was impaired, and recorded an $11.0 million impairment charge.

Depreciation and amortization:

	For the Three Months Ended August 31,									For the Six Months Ended August 31,
	2012		2013		$ Change			% Change		2012		2013		$ Change			% Change
	(As reported, amounts in thousands)
Depreciation and amortization:
Radio	$	598	$	604	$	6		1.0	%	$	1,176	$	1,198	$	22		1.9	%
Publishing	82		61		(21		)	(25.6	)%	168		123		(45		)	(26.8	)%
Corporate	489		548		59			12.1	%	950		1,068		118			12.4	%
Total depreciation and amortization	$	1,169	$	1,213	$	44		3.8	%	$	2,294	$	2,389	$	95		4.1	%

The increase in depreciation and amortization is mostly due to corporate depreciation and amortization expense increases related to new computer equipment and software.

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Gain on sale of assets:

	For the Three Months Ended August 31,										For the Six Months Ended August 31,
	2012			2013			$ Change		% Change		2012			2013			$ Change		% Change
	(As reported, amounts in thousands)
Gain on sale of assets:
Radio	$	(3	)	$	(1	)	$	2	(66.7	)%	$	(10,003	)	$	(1	)	$	10,002	(100.0	)%
Publishing	(3		)	—			3		(100.0	)%	(3		)	—			$	3	(100.0	)%
Total gain on sale of assets	$	(6	)	$	(1	)	$	5	(83.3	)%	$	(10,006	)	$	(1	)	$	10,005	(100.0	)%

In April 2012, Emmis sold the intellectual property of WRKS-FM in New York for $10.0 million.

Operating income:

	For the Three Months Ended August 31,											For the Six Months Ended August 31,
	2012			2013			$ Change			% Change		2012			2013			$ Change			% Change
	(As reported, amounts in thousands)
Operating income:
Radio	$	13,171		$	11,613		$	(1,558	)	(11.8	)%	$	19,974		$	24,782		$	4,808		24.1	%
Publishing	(904		)	(291		)	613			67.8	%	(1,150		)	(1,494		)	(344		)	(29.9	)%
Corporate	(4,650		)	(5,618		)	(968		)	(20.8	)%	(10,083		)	(10,538		)	(455		)	(4.5	)%
Total operating income:	$	7,617		$	5,704		$	(1,913	)	(25.1	)%	$	8,741		$	12,750		$	4,009		45.9	%

Radio operating income decreased in the three months ended August 31, 2013 principally due to additional expenses related to our 2012 Retention Trust Plan, our smartphone application and the ongoing Hungarian litigation. Radio operating income increased in the six months ended August 31, 2013 principally due to the 98.7FM LMA, which greatly reduced our operating expenses in New York, coupled with strong revenue performance at most of our markets as discussed earlier.

Publishing operating loss decreased in the three months ended August 31, 2013 as advertising revenues for our magazines accelerated in our second fiscal quarter. Publishing operating loss increased in the six months ended August 31, 2013 as growth in advertising revenues in the second fiscal quarter could not fully offset weak performance in our first fiscal quarter.

Corporate operating losses increased in the three months ended August 31, 2013 mostly due to increased noncash compensation expense as previously discussed. The operating loss for the six months ended August 31, 2013 was relatively flat as the increased noncash compensation expenses was largely offset by reduced expenses related to our ongoing preferred stock litigation.

Interest expense:

	For the Three Months Ended August 31,										For the Six Months Ended August 31,
	2012			2013			$ Change		% Change		2012			2013			$ Change		% Change
	(As reported, amounts in thousands)
Interest expense	$	(6,878	)	$	(1,808	)	$	5,070	(73.7	)%	$	(12,645	)	$	(3,729	)	$	8,916	(70.5	)%

Interest expense decreased due to significant repayments of long-term debt throughout fiscal 2013, coupled with lower interest rates on long-term debt as a result of our refinancing activity in December 2012.

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Loss on debt extinguishment:

	For the Three Months Ended August 31,									For the Six Months Ended August 31,
	2012			2013		$ Change		% Change		2012			2013		$ Change		% Change
	(As reported, amounts in thousands)
Loss on debt extinguishment	$	(601	)	$	—	$	601	(100.0	)%	$	(1,085	)	$	—	$	1,085	(100.0	)%

In the prior year the Company recorded a loss on debt extinguishment related to the write-off of debt fees associated with term loans it repaid and with the permanent reduction of revolver capacity under our former credit agreement.

(Benefit) provision for income taxes:

	For the Three Months Ended August 31,									For the Six Months Ended August 31,
	2012			2013		$ Change		% Change		2012			2013		$ Change		% Change
	(As reported, amounts in thousands)
(Benefit) provision for income taxes	$	(1,509	)	$	4	$	1,513	100.3	%	$	(5,924	)	$	179	$	6,103	104.0	%

The Company is recording a valuation allowance for its net deferred tax assets, including its net operating loss carryforwards, but excluding deferred tax liabilities related to indefinite-lived intangibles. The provision associated with deferred tax liabilities related to indefinite-lived intangibles is estimated to be approximately $2.6 million in the fiscal year ending February 2014. During the three months ended August 31, 2013, the Company recorded a benefit of approximately $0.7 million related to the favorable settlement of a state tax dispute. During the three months ended May 31, 2013, the Company recorded a benefit of approximately $0.5 million related to lower than expected state tax liabilities on asset dispositions.

The benefit in the six months ended August 31, 2012 principally relates to the tax benefit associated with our impairment loss on the 98.7FM FCC License.

Income from discontinued operations, net of tax:

	For the Three Months Ended August 31,									For the Six Months Ended August 31,
	2012		2013		$ Change			% Change		2012		2013		$ Change			% Change
	(As reported, amounts in thousands)
Income from discontinued operations, net of tax	$	38,776	$	—	$	(38,776	)	(100.0	)%	$	36,417	$	—	$	(36,417	)	(100.0	)%

Our international radio operations in Hungary, Slovakia and Bulgaria, our Emmis Interactive operations, our operations of KXOS-FM and our Country Sampler operations were classified as discontinued operations in the accompanying condensed consolidated statements. These operations all ceased prior to February 28, 2013. The income from discontinued operations, net of tax for the three and six months ended August 31, 2012 mostly relates to the gain on sale recorded in connection with the sale of KXOS-FM.

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Consolidated net income:

	For the Three Months Ended August 31,									For the Six Months Ended August 31,
	2012		2013		$ Change			% Change		2012		2013		$ Change			% Change
	(As reported, amounts in thousands)
Consolidated net income	$	40,208	$	3,925	$	(36,283	)	(90.2	)%	$	37,335	$	8,882	$	(28,453	)	(76.2	)%

Consolidated net income decreased due to the gain on sale recorded in connection with the sale of KXOS-FM in the prior year.

Gain on extinguishment of preferred stock:

	For the Three Months Ended August 31,							For the Six Months Ended August 31,
	2012		2013		$ Change		% Change	2012		2013		$ Change		% Change
	(As reported, amounts in thousands)
Gain on extinguishment of preferred stock	$	—	$	76	$	76	N/A	$	—	$	325	$	325	N/A

During the three months ended August 31, 2013, the Company purchased 2,000 shares of its preferred stock for $12.00 per share. During the six months ended August 31, 2013, the Company purchased 8,650 shares of its preferred stock for an average price of $12.38 per share. Emmis recognized a gain on extinguishment of the preferred stock equal to the difference of the acquisition price and the liquidation preference of $50 per share.

Liquidity and Capital Resources

Our primary sources of liquidity are cash provided by operations and cash available through revolver borrowings under our 2012 Credit Agreement. Our primary uses of capital during the past few years have been, and are expected to continue to be, capital expenditures, working capital, debt service requirements and the repayment of debt.

At August 31, 2013, we had cash and cash equivalents of $6.8 million and net working capital of $7.1 million. At February 28, 2013, we had cash and cash equivalents of $8.7 million and net working capital of $5.8 million. Cash and cash equivalents held at various European banking institutions at February 28, 2013 and August 31, 2013 was $6.3 million and $2.6 million, respectively. We intend to use the cash held internationally to fund costs of our ongoing litigation related to our former broadcasting license in Hungary.

In recent years, the Company has recorded significant impairment charges, mostly attributable to our FCC licenses. These impairment charges have had no impact on our liquidity or compliance with debt covenants.

Operating Activities

Cash provided by operating activities was $9.9 million for the six months ended August 31, 2013 as compared to cash used in operating activities of $7.2 million for the six months ended August 31, 2012. The increase in cash provided by operating activities is mostly due to a decrease in cash paid for interest as a result of the Company’s substantial debt repayments and lower interest rates on outstanding debt.

Investing Activities

Cash provided by investing activities was $90.6 million for the six months ended August 31, 2012 as compared to cash used in investing activities of $3.7 million for the six months ended August 31, 2013. During the six months ended August 31, 2012, the Company sold KXOS-FM in Los Angeles for $85.5 million in cash and received $10.0 million for the intellectual property of WRKS-FM in New York. Partially offsetting the proceeds of asset sales during the six months ended August 31, 2012 is cash used by the Company for investment purposes of $4.0 million, $3.5 million of which related to the Company’s investment in Courseload, Inc., a company that provides online access to textbooks and other material. Cash used in investing

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activities during the six months ended August 31, 2013 mostly consisted of $1.9 million of capital expenditures, $1.7 million related to the settlement of transaction fees and working capital adjustments associated with the sale of our Bulgarian and Slovakian radio operations which are included in discontinued operations and $0.2 million of additional investments, net of distributions from investments.

We expect capital expenditures related to continuing operations to be approximately $3 million in the current fiscal year, compared to $3.4 million in fiscal 2013. We expect that future requirements for capital expenditures will include capital expenditures incurred during the ordinary course of business. We expect to fund future investing activities with cash generated from operating activities and borrowings under our 2012 Credit Agreement.

Financing Activities

Cash used in financing activities was $79.3 million and $8.1 million for the six months ended August 31, 2012 and 2013, respectively. Cash used in financing activities in the six months ended August 31, 2012 primarily relates to the net debt repayments of $73.8 million, $3.5 million of debt related costs incurred in connection with the issuance of the 98.7FM nonrecourse debt and amendments to our debt agreement, and $2.2 million used to pay distributions to noncontrolling interests. Cash used in financing activities in the six months ended August 31, 2013 primarily relates to $6.0 million of net borrowings and $1.8 million used to pay distributions to noncontrolling interests.

As of August 31, 2013, Emmis had $63.0 million of borrowings under the 2012 Credit Agreement ($8.0 million current and $55.0 million long-term), $77.1 million of non-recourse debt ($4.3 million current and $72.8 million long-term) and $46.4 million of Preferred Stock liquidation preference. Borrowings under the 2012 Credit Agreement debt bear interest, at our option, at a rate equal to the Eurodollar rate or an alternative Base Rate plus a margin. The non-recourse debt bears interest at 4.1% per annum. As of August 31, 2013, our weighted average borrowing rate under our 2012 Credit Agreement was approximately 4.47%.

The debt service requirements of Emmis over the next twelve-month period are expected to be $8.0 million for mandatory repayment of term notes under our 2012 Credit Agreement, $7.4 million related to our 98.7FM non-recourse debt ($4.3 million of principal repayments and $3.1 million of interest payments) and $1.8 million of fixed interest as the result of our interest rate exchange agreement. The Company expects that proceeds from the 98.7FM LMA will be sufficient to pay all debt service related to the 98.7FM non-recourse debt. The remainder of the 2012 Credit Agreement debt bears interest at variable rates and is not included in the debt service requirements previously discussed.

At October 3, 2013, we had $15.0 million available for additional borrowing under our credit agreement. No letters of credit were outstanding. Availability under the credit agreement depends upon our continued compliance with certain operating covenants and financial ratios. Emmis was in compliance with these covenants as of August 31, 2013. As part of our business strategy, we continually evaluate potential acquisitions of radio stations, publishing properties and other businesses that we believe hold promise for long-term appreciation in value and leverage our strengths. However, Emmis Operating Company’s Credit Agreement substantially limits our ability to make acquisitions. We also regularly review our portfolio of assets and may opportunistically dispose of assets when we believe it is appropriate to do so.

On August 9, 2013, NextRadio LLC entered into an agreement with Sprint whereby Sprint agreed to pre-load the Company's smartphone application, NextRadio, in a minimum of 30 million FM-enabled wireless devices on the Sprint wireless network over a three-year period. In return, NextRadio LLC agreed to pay Sprint $15 million per year in equal quarterly installments over the three year term and to share with Sprint certain revenue generated by the NextRadio app. Emmis has not guaranteed NextRadio LLC's performance under this agreement and Sprint does not have recourse to any Emmis-related entity other than NextRadio LLC. Additionally, the agreement does not limit the ability of NextRadio LLC to place the NextRadio app on FM-enabled devices on other wireless networks.

Nearly all of the largest radio broadcasters and many smaller radio broadcasters have expressed support for NextRadio LLC's agreement with Sprint. Accordingly, NextRadio LLC has entered into a number of funding agreements with radio broadcasters and other participants in the radio industry to collect and remit cash to Sprint to fulfill the quarterly payment obligation. As part of some of these funding agreements, Emmis agreed to certain limitations on the operation of its NextRadio and TagStation businesses, including assurances of access to the NextRadio app and to TagStation (the cloud-based engine that provides data to the NextRadio app), and limitations on sale of the businesses to potential competitors of the U.S. radio industry. Emmis also granted the U.S. radio industry (as defined in the funding agreements) a call option on substantially all of the assets used in the NextRadio and TagStation businesses in the United States. The call option may be exercised in August 2017 or August 2019 by paying Emmis a purchase price equal to the greater of (i) the appraised fair market value of the NextRadio and TagStation businesses, or (ii) two times Emmis' cumulative investments in the development of the businesses. If

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the call option is exercised, the businesses will continue to be subject to the operating limitations applicable today, and no radio operator will be permitted to own more than 30% of the NextRadio and TagStation businesses.

NextRadio LLC made the first $3.75 million quarterly payment to Sprint on August 9, 2013. NextRadio LLC continues to execute funding agreements with radio broadcasters to help fund its quarterly commitment to Sprint. Emmis paid $0.8 million of the first quarterly payment amount, which is being expensed over the three-month period ending November 8, 2013, and may pay additional amounts related to future quarterly payments that are not funded by radio broadcasters and other participants in the radio industry. Emmis does not record any revenue or expense related to the amounts that are collected and remitted to Sprint except the portion of any payment to Sprint that was actually contributed to NextRadio LLC by Emmis, which is recorded as station operating expenses, excluding depreciation and amortization expense.

Intangibles

Approximately 61% of our total assets consisted of intangible assets, such as FCC broadcast licenses and goodwill, the value of which depends significantly upon the operational results of our businesses. In the case of our U.S. radio stations, we would not be able to operate the properties without the related FCC license for each property. FCC licenses are renewed every eight years; consequently, we continually monitor our stations’ compliance with the various regulatory requirements. Historically, all of our FCC licenses have been renewed at the end of their respective periods, and we expect that all FCC licenses will continue to be renewed in the future.

Regulatory, Legal and Other Matters

Emmis is a party to various legal proceedings arising in the ordinary course of business. In the opinion of management of the company, however, there are no legal proceedings pending against the company that we believe are likely to have a material adverse effect on the company.

On October 28, 2009, the Hungarian National Radio and Television Board (ORTT) announced that it was awarding to another bidder the national radio license then held by our majority-owned subsidiary, Slager. Slager ceased broadcasting effective November 19, 2009. The Company believes that the awarding of the license to the other bidder was unlawful. In October 2011, Emmis filed for arbitration with the International Centre for Settlement of Investment Disputes (“ICSID”) seeking resolution of its claim. During the six months ended August 31, 2012 and 2013, the Company incurred Hungary license litigation expenses of approximately $0.4 million and $1.3 million, respectively.

Emmis and certain of its officers and directors were named as defendants in a lawsuit filed April 16, 2012 by certain holders of Preferred Stock (the “Lock-Up Group”) in the United States District Court for the Southern District of Indiana entitled Corre Opportunities Fund, LP, et al. v. Emmis Communications Corporation, et al. The plaintiffs alleged, among other things, that Emmis and the other defendants violated various provisions of the federal securities laws and breached fiduciary duties in connection with Emmis’ entry into total return swap agreements and voting agreements with certain holders of Emmis Preferred Stock, as well as by issuing shares of Preferred Stock to Emmis’ 2012 Retention Plan and Trust (the “Trust”) and entering into a voting agreement with the trustee of the Trust. The plaintiffs also alleged that Emmis violated certain provisions of Indiana corporate law by directing the voting of the shares of Preferred Stock subject to the total return swap agreements (the “Swap Shares”) and the shares of Preferred Stock held by the Trust (the “Trust Shares”) in favor of certain amendments to Emmis’ Articles of Incorporation.

Emmis filed an answer denying the material allegations of the complaint, and filed a counterclaim seeking a declaratory judgment that Emmis could legally direct the voting of the Swap Shares and the Trust Shares in favor of the proposed amendments.

On August 31, 2012, the U.S. District Court denied plaintiffs request for a preliminary injunction. Plaintiffs subsequently filed an amended complaint seeking monetary damages and dismissing all claims against the individual officer and director defendants. Pending a ruling on motions for summary judgment filed by the Company and by plaintiffs, the matter is currently set for trial in January 2014. Emmis is defending this lawsuit vigorously.

Certain individuals and groups have challenged applications for renewal of the FCC licenses of certain of the Company’s stations. The challenges to the license renewal applications are currently pending before the FCC. Emmis does not expect the challenges to result in the denial of any license renewals.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

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General

Market risk represents the risk of loss that may impact the financial position, results of operations or cash flows of Emmis due to adverse changes in financial and commodity market prices and rates. Emmis is exposed to market risk from changes in domestic and international interest rates (i.e. prime and LIBOR). To manage interest-rate exposure, Emmis periodically enters into interest-rate derivative agreements. Emmis does not use financial instruments for trading and is not a party to any leveraged derivatives.

Interest Rates

Under the terms of its 2012 Credit Agreement, the Company is required to fix or cap the interest rate on at least 50% of its Term Loan exposure for a two-year period ending December 28, 2014. The requirement to fix or cap interest rates can be reduced to a one-year period provided the Company’s Senior Leverage Ratio (as defined in the 2012 Credit Agreement) is at or under 2.50:1:00 as of May 31, 2014. In February 2013, the Company entered into a two-year interest rate exchange agreement (a “Swap”), whereby the Company pays a fixed rate of 0.42% on $40 million of notional principal to Fifth Third Bank, and Fifth Third Bank pays to the Company a variable rate on the same amount of notional principal based on the one-month London Interbank Offered Rate (“LIBOR”).

Based on amounts outstanding at August 31, 2013, if the interest rate on our variable debt were to increase by 1.0%, our annual interest expense would increase by approximately $0.2 million.

Item 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this quarterly report, the Company evaluated the effectiveness of the design and operation of its “disclosure controls and procedures” (“Disclosure Controls”). This evaluation (the “Controls Evaluation”) was performed under the supervision and with the participation of management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”).

Based upon the Controls Evaluation, our CEO and CFO concluded that as of August 31, 2013 our Disclosure Controls are effective to provide reasonable assurance that information relating to Emmis Communications Corporation and Subsidiaries that is required to be disclosed by us in the reports that we file or submit, is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms, and is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During the period covered by this quarterly report, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

It should be noted that any control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met.

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PART II — OTHER INFORMATION

Item 1.    Legal Proceedings

Refer to Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a discussion of various legal proceedings pending against the Company.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended August 31, 2013, there was withholding of shares of common stock upon vesting of restricted stock to cover withholding tax obligations. The following table provides information on our repurchases during the three months ended August 31, 2013:

Period	(a) Total Number of Shares Purchased	(b) Average Price Paid Per Share	(c) Total Number  of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in 000’s)
Class A Common Stock
June 1, 2013 — June 30, 2013	—	N/A	—	$	—
July 1, 2013 — July 31, 2013	—	N/A	—	$	—
August 1, 2013 — August 31, 2013	—	N/A	—	$	—
	—		—
Series A Non-Cumulative Convertible Preferred Stock
June 1, 2013 — June 30, 2013	—	N/A	—	$	416,875
July 1, 2013 — July 31, 2013	2,000	$12.00	2,000	$	392,875
August 1, 2013 — August 31, 2013	—	N/A	—	$	392,875
	2,000		2,000

-40-

Item 6.    Exhibits

(a) Exhibits.

The following exhibits are filed or incorporated by reference as a part of this report:

Exhibit		Filed Herewith	Incorporated by Reference
Number	Exhibit Description		Form	Period Ending	Exhibit	Filing Date
3.1	Second Amended and Restated Articles of Incorporation of Emmis Communications Corporation, as amended effective September 4, 2012		10-Q	8/31/2012	3.1	10/11/2012
3.2	Second Amended and Restated Bylaws of Emmis Communications Corporation		10-K	2/28/2013	3.2	5/8/2013
4.1	Form of stock certificate for Class A common stock		S-1		3.5	12/22/1993
10.1	First Amendment to Credit Agreement, Security Agreement and Subsidiary Guaranty	X
31.1	Certification of Principal Executive Officer of Emmis Communications Corporation pursuant to Rule 13a-14(a) under the Exchange Act	X
31.2	Certification of Principal Financial Officer of Emmis Communications Corporation pursuant to Rule 13a-14(a) under the Exchange Act	X
32.1	Certification of Principal Executive Officer of Emmis Communications Corporation pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
32.2	Certification of Principal Financial Officer of Emmis Communications Corporation pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	X
101.INS	XBRL Instance Document *	X
101.SCH	XBRL Taxonomy Extension Schema Document *	X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document *	X
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document *	X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document *	X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document *	X

* Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.

-41-

SIGNATURES

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 thereunto duly authorized.

	EMMIS COMMUNICATIONS CORPORATION
Date: October 10, 2013	By:	/s/ PATRICK M. WALSH
		Patrick M. Walsh
		Executive Vice President, Chief Financial Officer and Chief Operating Officer

-42-

EX-10.1

FIRST AMENDMENT TO CREDIT AGREEMENT, SECURITY AGREEMENT AND SUBSIDIARY GUARANTY

This FIRSTAMENDMENT TO CREDIT AGREEMENT, SECURITY AGREEMENT AND SUBSIDIARY GUARANTY, dated as of August 9, 2013 (this “Amendment”), is by and among (a) EMMIS COMMUNICATIONS CORPORATION (the “Parent”), an Indiana corporation, (b) EMMIS OPERATING COMPANY (the “Borrower”), an Indiana corporation, (c) JPMORGAN CHASE BANK, N.A., as administrative agent (the “Administrative Agent”) and (d) certain Lenders (as defined in the Credit Agreement defined below) party to that certain Credit Agreement, dated December 28, 2012 (the “Credit Agreement”) and to that certain Security Agreement, dated December 28, 2012 (the “Security Agreement”). Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Credit Agreement, and if not defined therein, in the Security Agreement.

WHEREAS, the Borrower and the Parent desire to modify certain terms and conditions of the Credit Agreement, the Security Agreement and the Subsidiary Guaranty as specifically set forth in this Amendment;

WHEREAS, the Credit Parties have formed TAGSTATION, LLC, an Indiana limited liability company (“TagStation” or the “New Subsidiary”) as a Wholly-Owned Subsidiary;

WHEREAS, the Credit Parties have formed NEXTRADIO, LLC, an Indiana limited liability company and desire to designate such entity as an Excluded Subsidiary;

WHEREAS, the parties hereto desire to add the New Subsidiary as a “Subsidiary Guarantor” under the Credit Agreement, as a “Grantor” under the Security Agreement, as a “Guarantor” under the Subsidiary Guaranty and as a “Pledgor” under the Pledge Agreement; and

WHEREAS, the Borrower and certain of its Affiliates desire to license certain intellectual property to be contributed to TagStation through one or more Affiliates for the purpose of enabling radio broadcasting and related advertising services on certain smartphone or other mobile devices.

NOW THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Borrower, the Parent and the Lenders hereby agree as follows:

§1.Amendments to Credit Agreement. The Credit Agreement is hereby amended as follows:

A.The defined term “Excluded Subsidiaries” in Section 1.01 of the Credit Agreement is hereby amended by replacing “Emmis New York Radio License LLC and Emmis New York Radio LLC,” in clause (b) thereof with “Emmis New York Radio License LLC, Emmis New York Radio LLC and any NextRadio License Subsidiary,”

B.The defined term “Financial Subsidiaries” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

“Financial Subsidiaries” means any Subsidiary of the Borrower (including, without limitation, the Excluded Subsidiaries) other than (i) Emmis Radio License Corporation of New York, a California corporation, and each of its Subsidiaries and (ii) any NextRadio License Subsidiary. Notwithstanding anything to the contrary contained herein and for

the avoidance of doubt, it is understood and agreed that with respect to any financial or numerical calculation herein (including, without limitation, Consolidated Net Income) in reference to Financial Subsidiaries, such calculation with respect to the Austin Partnership, RAM and any other Non-Wholly Owned Subsidiary shall be calculated only to the extent of the Borrower’s and the Subsidiaries’ aggregate equity percentage of ownership in the Austin Partnership, RAM or such Non-Wholly Owned Subsidiary, as applicable.

C.Section 1.01 of the Credit Agreement is hereby amended by adding the following defined terms in appropriate alphabetical order:

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

“Excluded Swap Obligation” means, with respect to any Subsidiary Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Subsidiary Guarantor of, or the grant by such Subsidiary Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) (a) by virtue of such Subsidiary Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guarantee of such Subsidiary Guarantor or the grant of such security interest becomes or would become effective with respect to such Swap Obligation or (b) in the case of a Swap Obligation subject to a clearing requirement pursuant to Section 2(h) of the Commodity Exchange Act (or any successor provision thereto), because such Subsidiary Guarantor is a “financial entity,” as defined in Section 2(h)(7)(C)(i) the Commodity Exchange Act (or any successor provision thereto), at the time the Guarantee of such Subsidiary Guarantor becomes or would become effective with respect to such related Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.

“NextRadio License Agreements” means any intellectual property license agreement entered into between TagStation, LLC and a NextRadio License Subsidiary from time to time, in form and substance reasonably satisfactory to the Administrative Agent (provided that a license agreement substantially in the form attached hereto as Exhibit B shall be deemed to be reasonably satisfactory to the Administrative Agent), providing for a non-exclusive, non-transferrable license from TagStation, LLC to such NextRadio License Subsidiary to use the TagStation IP within the United States of America, including its territories and possessions.

“NextRadio License Subsidiary” means NextRadio, LLC, an Indiana limited liability company, and any other subsidiary of TagStation, LLC formed for the purpose of entering into a NextRadio License Agreement as licensee thereunder.

“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Subsidiary Guarantor that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes or would become effective with respect

to such Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

“Swap Obligation” means, with respect to any Subsidiary Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

“TagStation Transaction Documents” means, collectively, the NextRadio License Agreements, the TagStation International License Agreements, the TagStation IP Escrow Agreement, the TagStation Call Option Agreement and any other documents or instruments executed in connection therewith.

“TagStation Call Option Agreement” means any agreement, in form and substance reasonably satisfactory to the Administrative Agent (provided that a call option agreement the terms of which are substantially in accordance with the governance plan attached hereto as Exhibit C shall be deemed to be reasonably satisfactory to the Administrative Agent), whereby Emmis Radio, LLC grants certain members of the United States radio industry a right, but not the obligation, to purchase all of the equity interests owned by Emmis Radio, LLC in TagStation, LLC at a price equal to the greater of (i) the fair market value (determined by an appraisal process) of such equity interests in TagStation, LLC, net of payments made or to be made by members of the United States radio industry to fund payments to wireless carriers for enabling FM receivers in wireless devices or (ii) two times the costs incurred by Emmis Radio, LLC and its affiliates (prior to the second anniversary of the commencement of the first agreement between a NextRadio License Subsidiary and a wireless carrier) in connection with the creation and operation of the TagStation Software, the NextRadio App, TagStation, LLC and the NextRadio License Subsidiaries (as determined by an appraisal process based upon evidence provided by Emmis Radio, LLC).

“TagStation International License Agreements” means any intellectual property license agreement entered into between TagStation, LLC and any Subsidiary (including, without limitation, Foreign Subsidiaries) from time to time, in form and substance reasonably satisfactory to the Administrative Agent, providing for an exclusive, royalty-free, perpetual license from Tag Station, LLC to such Subsidiary to use the TagStation IP outside the United States of America, including its territories and possessions.

“TagStation IP” means any and all intellectual property contributed to or otherwise owned by TagStation, LLC related to the software program and related business commonly known as TagStation, and the software application and related businesses commonly known as NextRadio.

“TagStation IP Escrow Agreement” means any agreement between TagStation, LLC and a third-party intellectual property warehousing provider, in form and substance reasonably satisfactory to the Administrative Agent, providing for the warehousing of the TagStation IP Source Code for the benefit of certain parties under the TagStation Transaction Documents on terms reasonably customary for such third-party intellectual property escrow agreements.

“TagStation IP Source Code” means any computer source code comprising part of the TagStation IP.

D.The defined term “Obligations” in Section 1.01 of the Credit Agreement is hereby amended by adding the following proviso at the end of such definition:

“provided, however, that the definition of ‘Obligations’ shall not create any guarantee by any Subsidiary Guarantor of (or grant of security interest by any Subsidiary Guarantor to support, as applicable) any Excluded Swap Obligations of such Subsidiary Guarantor for purposes of determining any obligations of any Subsidiary Guarantor.”

E.The defined term “Permitted Encumbrances” in Section 1.01 of the Credit Agreement is hereby amended by replacing the “; and” at the end of clause (g) thereof with “;”, replacing the “.” at the end of clause (h) thereof with “;” and adding two new clauses (i) and (j) to the end thereof read as follows:

“(i) Liens, licenses, or other restrictions or encumbrances on the TagStation IP Source Code pursuant to the TagStation IP Escrow Agreement; and”

“(j) Liens, licenses, or other restrictions or encumbrances pursuant to the TagStation Call Option Agreement.”

F.Section 6.03(c) of the Credit Agreement is hereby amended by replacing the “; and” at the end of clause (iii) thereof with “;”, replacing the “.” at the end of clause (iv) thereof with “; and” and adding a new clause (v) thereof to read as follows:

“(v) Asset Dispositions pursuant to the TagStation Call Option Agreement; provided that true and complete copies of the executed TagStation International License Agreements have been delivered to the Administrative Agent prior to any such Asset Disposition; provided, further, for the avoidance of doubt, it is understood and agreed that all such Asset Dispositions (and any Asset Dispositions of the TagStation IP) shall be subject to Section 2.11(c)(i)”

G.Section 6.08 of the Credit Agreement is hereby amended by replacing the word “and” at the end of clause (d) thereof with “;”, replacing the “.” at the end of clause (e) thereof with “;” and inserting a new clause (f) at the end thereof as follows:

“(f) transactions pursuant to the TagStation Transaction Documents.”

§2.Amendment to Security Agreement. The Security Agreement is hereby amended as follows:

A.The defined term “Excluded Assets” in Section 1 of the Security Agreement is hereby amended and restated in its entirety as:

“Excluded Assets” means (i) any lease, license, permit or any other contract, document, instrument or agreement (collectively, “Contracts Collateral”) to which a Grantor is a party or any of its rights or interests thereunder if and for so long as the grant of such security interest shall constitute or result in (a) the abandonment, invalidation or unenforceability of any right, title or interest of the Grantor therein, (b) a violation of a

valid and enforceable restriction in respect of such Contracts Collateral (1) contained in the documents evidencing or constituting such Contracts Collateral, in favor of the other party to such Contracts Collateral or (2) under any law, regulation, permit, order or decree of any Governmental Authority, in each case unless and until all required material consents shall have been obtained or (c) a breach or termination (or result in any party thereto having the right to terminate) pursuant to the terms of, or a default under, such Contracts Collateral (other than, in each case, to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code or any other applicable law or principles of equity), provided, however, that such security interest shall attach immediately at such time as the condition causing such abandonment, invalidation, unenforceability or breach or termination, as the case may be, shall be remedied and, to the extent severable, shall attach immediately to any portion of such Contracts Collateral that does not result in any of the consequences specified in the immediately preceding clause (a), (b) or (c) including, without limitation, any proceeds of such Contracts Collateral and (ii) the TagStation IP.

B.Section 4.7 of the Security Agreement is hereby amended by adding the following proviso at the end thereof:

“Notwithstanding the foregoing, amounts received from any Credit Party that is not a Qualified ECP Guarantor shall not be applied to the Secured Obligations that are Excluded Swap Obligations.”

§3.Amendment to Subsidiary Guaranty. The Subsidiary Guaranty is hereby amended as follows:

A.The following new Section 24 is hereby inserted in the Subsidiary Guaranty that reads as follows:

24. Keepwell. Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Guarantor to honor all of its obligations under this Guaranty in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 24 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 24 or otherwise under this Guaranty voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this Section 24 shall remain in full force and effect until payment in full of all Liabilities (other than contingent indemnity obligations which have not been asserted) and other amounts payable under this Guaranty and until the Facility Documents are no longer in effect. Each Qualified ECP Guarantor intends that this Section 24 constitute, and this Section 24 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

§4.Conditions to Effectiveness. This Amendment shall become effective as of the date set forth above upon the receipt subject to the satisfaction or waiver by the Administrative Agent on behalf of the Required Lenders of the following conditions precedent (the “Amendment Effective Date”):

A.each of the representations and warranties set forth in Section 4 of this Amendment shall be true and correct in all material respects as of the date of this Amendment;

B.the Administrative Agent shall have received a counterpart signature page to this Amendment, duly executed and delivered by the Borrower, the Parent, each Subsidiary Guarantor and the Required Lenders;

C.the Administrative Agent shall have received an amendment fee letter, duly executed and delivered by the Borrower, in form and substance satisfactory to the Administrative Agent;

D.the Administrative Agent shall have received a final executed copy of the Wireless Data and Application Agreement entered into between Sprint/United Management Company and NextRadio LLC, such agreement to be in form and substance reasonably satisfactory to the Administrative Agent;

E.the Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the New Subsidiary, the authorization of the transactions contemplated hereunder and under the Credit Documents, the incumbency of their respective authorized officers and any other legal matters relating to the New Subsidiary, this Amendment or the transactions contemplated hereunder and under the Credit Documents, all in form and substance satisfactory to the Administrative Agent and its counsel;

F.the Administrative Agent shall have received the results of a recent Lien search in the jurisdictions where assets of the New Subsidiary are located, and such searches shall reveal no Liens on any of the assets of the New Subsidiary except for Liens permitted by Section 6.02 of the Credit Agreement;

G.the execution and delivery by the Subsidiary Guarantors of an Affirmation of Guaranty and Collateral Documents in the form of Exhibit A hereto; and

H.the Administrative Agent shall have received evidence, satisfactory to the Administrative Agent, that the Borrower has paid all fees and, to the extent billed, expenses payable by the Borrower hereunder on the Amendment Effective Date.

§5.New Subsidiary Covenant. The Borrower shall comply (or cause the New Subsidiary to comply) with the provisions of Section 5.13 of the Credit Agreement applicable to newly formed Subsidiaries and execute and deliver the documentation required pursuant thereto (including, without limitation, executing and delivering a joinder to the Credit Agreement, Security Agreement, Pledge Agreement and Subsidiary Guaranty) on or before August 11, 2013, all such documentation in form and substance reasonably satisfactory to the Administrative Agent. Failure to comply with this Section 5 shall be an immediate Event of Default.

§6.Representations and Warranties. The Parent and the Borrower each hereby represents and warrants to the Administrative Agent and the Lenders as follows:

A.Representations and Warranties. Each of the representations and warranties contained in Article III of the Credit Agreement and Section 2 of the Security Agreement were true and correct in all material respects (except to the extent such representations

and warranties are already qualified by materiality, in which case, such representations and warranties were true and correct in all respects) when made, and, after giving effect to this Amendment, are true and correct in all material respects on and as of the date hereof (except to the extent such representations and warranties are already qualified by materiality, in which case, such representations and warranties are true and correct in all respects), except to the extent that such representations and warranties relate specifically to a prior date, then such representations and warranties are true and correct in all material respects on and as such earlier date (except to the extent such representations and warranties are already qualified by materiality, in which case, such representations and warranties are true and correct in all respects).

B.Enforceability. The execution and delivery by the Borrower and the Parent of this Amendment, and the performance by the Borrower and the Parent of this Amendment, the Credit Agreement and the Security Agreement are within the corporate authority of each of the Borrower and the Parent and have been duly authorized by all necessary corporate proceedings. This Amendment, the Credit Agreement and the Security Agreement constitute valid and legally binding obligations of each of the Borrower and the Parent, enforceable against it in accordance with their terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights in general.

C.No Default or Event of Default. No Default or Event of Default has occurred and is continuing, and after giving effect to this Amendment, no Default or Event of Default will result from the execution, delivery and performance by the Parent and the Borrower of this Amendment or from the consummation of the transactions contemplated herein.

§7.No Other Amendments, etc. Except as expressly provided in this Amendment, (a) all of the terms and conditions of the Credit Agreement and the other Credit Documents remain unchanged and (b) all of the terms and conditions of the Credit Agreement and the other Credit Documents are hereby ratified and confirmed and remain in full force and effect. Nothing herein shall be construed to be an amendment, consent or a waiver of any requirements of the Parent, the Borrower or of any other Person under the Credit Agreement and the other Credit Documents except as expressly set forth herein. Nothing in this Amendment shall be construed to imply any willingness on the part of any Lender to grant any similar or future amendment, consent or waiver of any of the terms and conditions of the Credit Agreement and the other Credit Documents. Upon the effectiveness of this Amendment, each reference in the Credit Agreement, the Security Agreement and the Subsidiary Guaranty to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Credit Agreement, the Security Agreement and the Subsidiary Guaranty, as applicable, as amended hereby. For the avoidance of doubt, this Amendment shall constitute a “Credit Document” under the Credit Agreement and each other Credit Document.

§8.Costs and Expenses. The Borrower hereby affirms its obligation under Section 9.03(a) of the Credit Agreement to reimburse the Administrative Agent for all reasonable out-of-pocket expenses incurred by the Administrative Agent in connection with the preparation, negotiation, execution and delivery of this Amendment, including but not limited to the reasonable fees, charges and disbursements of attorneys for the Administrative Agent with respect thereto.

§9.Execution in Counterparts. This Amendment may be executed in any number of counterparts and by each party on a separate counterpart, each of which when so executed and

delivered shall be an original, but all of which together shall constitute one instrument. In proving this Amendment, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought.

§10.Successors and Assigns. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

§11.Governing Law; Captions. This Amendment shall for all purposes be construed in accordance with and governed by the laws of the State of New York. The captions in this Amendment are for convenience of reference only and shall not define or limit the provisions hereof.

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as of the date first set forth above.

The Borrower:
EMMIS OPERATING COMPANY
By:	/s/ J. Scott Enright
	Name:	J. Scott Enright
	Title:	Executive Vice President,
		General Counsel and Secretary

The Parent:
EMMIS COMMUNICATIONS CORPORATION
By:	/s/ J. Scott Enright
	Name:	J. Scott Enright
	Title:	Executive Vice President,
		General Counsel and Secretary

Required Lenders:
JPMORGAN CHASE BANK, N.A.
By:	/s/ Thomas W. Harrison
	Name:	Thomas W. Harrison
	Title:	Senior Vice President
		Authorized Officer

GENERAL ELECTRIC CAPITAL CORPORATION
By:	/s/ Marshall T. Mangum, III
	Name:	Marshall T. Mangum, III
	Title:	Duly Authorized Signatory

FIFTH THIRD BANK
By:	/s/ William Krummen
	Name:	William Krummen
	Title:	Vice President

ADMINISTRATIVE AGENT
JP MORGAN CHASE BANK, N.A.
By:	/s/ Thomas W. Harrison
	Name:	Thomas W. Harrison
	Title:	Senior Vice President
		Authorized Officer

EXHIBIT A

AFFIRMATION OF GUARANTY AND COLLATERAL DOCUMENTS

Each of the undersigned (collectively, the “Subsidiary Guarantors”) acknowledges receipt of a copy of that certain First Amendment to Credit Agreement, Security Agreement and Subsidiary Guaranty dated as of the date hereof (the “Amendment”) relating to the Credit Agreement dated as of December 28, 2012, the “Credit Agreement”) referred to therein, consents to the Amendment and each of the transactions referenced therein, hereby reaffirms its obligations under the Subsidiary Guaranty and each Collateral Document to which it is a party and agrees that all references in any such other Credit Document to the “Credit Agreement” shall mean and be a reference to the Credit Agreement as amended by the Amendment. Capitalized terms used herein, but not otherwise defined herein, shall have the meanings ascribed to such terms in the Credit Agreement, as amended by the Amendment. Although the Subsidiary Guarantors have been informed of the matters set forth herein and have acknowledged and consented to same, each Subsidiary Guarantor understands that neither the Administrative Agent nor any Lender has any obligation to inform the Subsidiary Guarantors of such matters in the future or to seek any Subsidiary Guarantor’s acknowledgment or consent to future amendments or waivers, and nothing herein shall create such a duty.

Dated as of August 9, 2013.

Subsidiary Guarantors:EMMIS INDIANA BROADCASTING, L.P.,

EMMIS RADIO LICENSE, LLC,
EMMIS RADIO, LLC,
EMMIS LICENSE CORPORATION OF NEW YORK,
EMMIS RADIO LICENSE CORPORATION OF NEW YORK,
EMMIS INTERNATIONAL BROADCASTING CORPORATION,
EMMIS RADIO HOLDING CORPORATION, EMMIS RADIO HOLDING II CORPORATION,
EMMIS PUBLISHING CORPORATION,
LOS ANGELES MAGAZINE HOLDING COMPANY, INC.,
MEDIATEX COMMUNICATIONS CORPORATION,
EMMIS PUBLISHING, L.P.,
ORANGE COAST KOMMUNICATIONS, INC.

By:	/s/ J. Scott Enright
	Name:	J. Scott Enright
	Title:	Executive Vice President,
		General Counsel and Secretary

EXHIBIT B

CHI:2758801.8

EXHIBIT C

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Jeffrey H. Smulyan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Emmis Communications Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 10, 2013
	/s/ JEFFREY H. SMULYAN
	Jeffrey H. Smulyan
	Chairman of the Board, President and
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Patrick M. Walsh, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Emmis Communications Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 10, 2013
	/s/ PATRICK M. WALSH
	Patrick M. Walsh
	Executive Vice President, Chief Financial Officer and
	Chief Operating Officer

EX-32.1

Exhibit 32.1

SECTION 1350 CERTIFICATION

The undersigned hereby certifies, in accordance with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in his capacity as an officer of Emmis Communications Corporation (the “Company”), that, to his knowledge:

(1) the Quarterly Report of the Company on Form 10-Q for the period ended August 31, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 10, 2013
	/s/ JEFFREY H. SMULYAN
	Jeffrey H. Smulyan
	Chairman of the Board, President and
	Chief Executive Officer

EX-32.2

Exhibit 32.2

SECTION 1350 CERTIFICATION

The undersigned hereby certifies, in accordance with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in his capacity as an officer of Emmis Communications Corporation (the “Company”), that, to his knowledge:

(1) the Quarterly Report of the Company on Form 10-Q for the period ended August 31, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 10, 2013
	/s/ PATRICK M. WALSH
	Patrick M. Walsh
	Executive Vice President, Chief Financial Officer and
	Chief Operating Officer

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Segment Information

6 Months Ended

Aug. 31, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s operations are aligned into two business segments: (i) Radio and (ii) Publishing. These business segments are consistent with the Company’s management of these businesses and its financial reporting structure. Corporate expenses are not allocated to reportable segments. The results of operations of various sold businesses have been classified as discontinued operations and have been excluded from the segment disclosures below. See Note 1 for more discussion of our discontinued operations. The Company’s segments operate exclusively in the United States.

The accounting policies as described in the summary of significant accounting policies included in the Company’s Annual Report filed on Form 10-K, for the year ended February 28, 2013, and in Note 1 to these condensed consolidated financial statements, are applied consistently across segments.

Three Months Ended August 31, 2013	Radio			Publishing			Corporate			Consolidated
Net revenues	$	41,259		$	13,708		$	—		$	54,967
Station operating expenses excluding depreciation and amortization expense	28,000			13,938			—			41,938
Corporate expenses excluding depreciation and amortization expense	—			—			5,070			5,070
Hungary license litigation and related expenses	1,043			—			—			1,043
Depreciation and amortization	604			61			548			1,213
Gain of sale of fixed assets	(1		)	—			—			(1		)
Operating income (loss)	$	11,613		$	(291	)	$	(5,618	)	$	5,704

Three Months Ended August 31, 2012	Radio			Publishing			Corporate			Consolidated
Net revenues	$	39,964		$	12,965		$	—		$	52,929
Station operating expenses excluding depreciation and amortization expense	25,988			13,790			—			39,778
Corporate expenses excluding depreciation and amortization expense	—			—			4,161			4,161
Hungary license litigation and related expenses	210			—			—			210
Depreciation and amortization	598			82			489			1,169
Gain on sale of fixed assets	(3		)	(3		)	—			(6		)
Operating income (loss)	$	13,171		$	(904	)	$	(4,650	)	$	7,617

Six Months Ended August 31, 2013	Radio			Publishing			Corporate			Consolidated
Net revenues	$	78,185		$	27,368		$	—		$	105,553
Station operating expenses excluding depreciation and amortization expense	50,911			28,739			—			79,650
Corporate expenses excluding depreciation and amortization expense	—			—			9,470			9,470
Hungary license litigation and related expenses	1,295			—			—			1,295
Depreciation and amortization	1,198			123			1,068			2,389
Gain on sale of fixed assets	(1		)	—			—			(1		)
Operating income (loss)	$	24,782		$	(1,494	)	$	(10,538	)	$	12,750

Six Months Ended August 31, 2012	Radio			Publishing			Corporate			Consolidated
Net revenues	$	74,840		$	27,057		$	—		$	101,897
Station operating expenses excluding depreciation and amortization expense	52,308			28,042			—			80,350
Corporate expenses excluding depreciation and amortization expense	—			—			9,133			9,133
Hungary license litigation and related expenses	414			—			—			414
Impairment loss	10,971			—			—			10,971
Depreciation and amortization	1,176			168			950			2,294
Gain on sale of fixed assets	(10,003		)	(3		)	—			(10,006		)
Operating income (loss)	$	19,974		$	(1,150	)	$	(10,083	)	$	8,741

			As of February 28, 2013
	Radio		Publishing		Corporate		Consolidated
Assets — continuing operations	$	209,721	$	21,005	$	30,136	$	260,862
Assets — discontinued operations	630		132		—		762
Total assets	$	210,351	$	21,137	$	30,136	$	261,624
			As of August 31, 2013
	Radio		Publishing		Corporate		Consolidated
Assets — continuing operations	$	215,736	$	21,033	$	28,930	$	265,699
Assets — discontinued operations	465		—		—		465
Total assets	$	216,201	$	21,033	$	28,930	$	266,164

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
CONSOLIDATED NET INCOME	$ 3,925	$ 40,208	$ 8,882	$ 37,335
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAXES:
Change in value of derivative instrument and related income tax effects	4	0	48	0
Cumulative translation adjustment	22	(540)	(8)	(311)
COMPREHENSIVE INCOME	3,951	39,668	8,922	37,024
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	1,365	1,135	2,816	2,420
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 2,586	$ 38,533	$ 6,106	$ 34,604

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Share Based Payments

6 Months Ended

Aug. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share Based Payments

Share Based Payments

The amounts recorded as share based compensation expense consist of stock option and restricted stock grants, common stock issued to employees and directors in lieu of cash payments, and Preferred Stock contributed to the 2012 Retention Plan.

Stock Option Awards

The Company has granted options to purchase its common stock to employees and directors of the Company under various stock option plans at no less than the fair market value of the underlying stock on the date of grant. These options are granted for a term not exceeding 10 years and are forfeited, except in certain circumstances, in the event the employee or director terminates his or her employment or relationship with the Company. Generally, these options either vest annually over 3 years (one-third each year for 3 years), or cliff vest at the end of 3 years. The Company issues new shares upon the exercise of stock options.

The fair value of each option awarded is estimated on the date of grant using a Black-Scholes option-pricing model and expensed on a straight-line basis over the vesting period. Expected volatilities are based on historical volatility of the Company’s stock. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. The Company includes estimated forfeitures in its compensation cost and updates the estimated forfeiture rate through the final vesting date of awards. The risk-free interest rate for periods within the life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following assumptions were used to calculate the fair value of the Company’s options on the date of grant during the six months ended August 31, 2012 and 2013:

	Six Months Ended August 31,
	2012	2013
Risk-Free Interest Rate:	0.7%	0.6% – 1.3%
Expected Dividend Yield:	0%	0%
Expected Life (Years):	4.2	4.3
Expected Volatility:	129.5% – 131.4%	108.9% – 115.9%

The following table presents a summary of the Company’s stock options outstanding at August 31, 2013, and stock option activity during the six months ended August 31, 2013 (“Price” reflects the weighted average exercise price per share):

	Options	Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding, beginning of period	7,132,459	$	4.31
Granted	381,219	1.77
Exercised (1)	169,500	0.71
Forfeited	15,000	0.70
Expired	551,220	10.91
Outstanding, end of period	6,777,958	3.71		6.4	$	12,380
Exercisable, end of period	3,658,269	6.04		4.5	$	5,525

(1) The Company did not record an income tax benefit related to option exercises in the six months ended August 31, 2012 and 2013.

The weighted average grant date fair value of options granted during the six months ended August 31, 2012 and 2013, was $0.71 and $1.36, respectively.

A summary of the Company’s nonvested options at August 31, 2013, and changes during the six months ended August 31, 2013, is presented below:

	Options	Weighted Average Grant Date Fair Value
Nonvested, beginning of period	3,188,104	$	0.76
Granted	381,219	1.36
Vested	434,634	0.98
Forfeited	15,000	0.57
Nonvested, end of period	3,119,689	0.80

There were 3.8 million shares available for future grants under the Company’s various equity plans at August 31, 2013. The vesting dates of outstanding options at August 31, 2013 range from September 2013 to March 2017, and expiration dates range from March 2014 to July 2023.

Restricted Stock Awards

The Company grants restricted stock awards to directors annually, and periodically grants restricted stock to employees in connection with employment agreements. Awards to directors are granted on the date of our annual meeting of shareholders and vest on the earlier of (i) the completion of the director’s 3-year term or (ii) the third anniversary of the date of grant. Restricted stock award grants are granted out of the Company’s 2012 Equity Compensation Plan. The Company may also award, out of the Company’s 2012 Equity Compensation Plan, stock to settle certain bonuses and other compensation that otherwise would be paid in cash. Any restrictions on these shares may be immediately lapsed on the grant date.

The following table presents a summary of the Company’s restricted stock grants outstanding at August 31, 2013, and restricted stock activity during the six months ended August 31, 2013 (“Price” reflects the weighted average share price at the date of grant):

	Awards	Price
Grants outstanding, beginning of period	537,405	$	1.72
Granted	802,711	1.60
Vested (restriction lapsed)	286,126	1.46
Forfeited	181	1.73
Grants outstanding, end of period	1,053,809	1.70

The total grant date fair value of shares vested during the six months ended August 31, 2012 and 2013, was less than $0.1 million and $0.4 million, respectively.

Preferred Stock and the 2012 Retention Plan

On April 2, 2012, the shareholders of the Company approved the 2012 Retention Plan and Trust Agreement (the “Trust” or the “2012 Retention Plan”) at a special meeting of shareholders. The Company contributed 400,000 shares of its Preferred Stock to the Trust in connection with the approval of the 2012 Retention Plan. Awards granted under the 2012 Retention Plan entitle the participants to receive a distribution two years from the date of shareholder approval of the plan, provided the participant is still an employee and was an employee upon inception of the plan. Distributions may be in the form of Class A common stock if the Company elects to convert the Preferred Stock to common stock at the then-current conversion ratio prior to distribution. The initial Trustee of the plan is Jeffrey H. Smulyan, our Chairman of the Board, President and Chief Executive Officer.

As of the Trust’s inception and August 31, 2013, no preferred shares have been allocated to individual employees, nor is any individual entitled to any minimum number of shares. As a result, the service inception date for these awards precedes the grant date, and the Company is accounting for the 2012 Retention Plan as a liability plan, using variable accounting. Prior to establishment of a grant date, the Company will estimate the fair value of the shares at each reporting period, and will recognize the compensation expense over a two-year period that began on April 2, 2012. Upon the second anniversary of the Trust’s inception, the Trust’s governance will allocate the shares to individual employees, at which point fully vested shares will be distributed to employees. The Trust is consolidated by the Company and both the assets and deferred compensation obligation of the Trust are accounted for within the applicable preferred stock classification in the accompanying condensed consolidated balance sheets. The Company recognized approximately $0.5 million and $1.5 million of compensation expense related to the 2012 Retention Plan during the six months ended August 31, 2012 and 2013, respectively.

Recognized Non-Cash Compensation Expense

The following table summarizes stock-based compensation expense and related tax benefits recognized by the Company in the three and six months ended August 31, 2012 and 2013:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Station operating expenses	$	296	$	1,213	$	447	$	1,466
Corporate expenses	269		1,206		507		1,616
Stock-based compensation expense included in operating expenses	565		2,419		954		3,082
Tax benefit	—		—		—		—
Recognized stock-based compensation expense, net of tax	$	565	$	2,419	$	954	$	3,082

As of August 31, 2013, there was $3.0 million of unrecognized compensation cost, net of estimated forfeitures, related to nonvested share-based compensation arrangements. The cost is expected to be recognized over a weighted average period of approximately 1.2 years.

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Fair Value Measurements (Tables)

6 Months Ended

Aug. 31, 2013

Fair Value Disclosures [Abstract]

Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

	As of August 31, 2013
	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
Available for sale securities	$	—	$	—	$	6,739	$	6,739
Total assets measured at fair value on a recurring basis	$	—	$	—	$	6,739	$	6,739
Interest rate swap agreement	$	—	$	59	$	—	$	59
Total liabilities measured at fair value on a recurring basis	$	—	$	59	$	—	$	59
	As of February 28, 2013
	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
Available for sale securities	$	—	$	—	$	6,489	$	6,489
Total assets measured at fair value on a recurring basis	$	—	$	—	$	6,489	$	6,489
Interest rate swap agreement	$	—	$	107	$	—	$	107
Total liabilities measured at fair value on a recurring basis	$	—	$	107	$	—	$	107

Reconciliation of Beginning and Ending Balances for Fair Value Measurements using Significant Unobservable Inputs

The following table shows a reconciliation of the beginning and ending balances for fair value measurements using significant unobservable inputs:

	For the Six Months Ended August 31,
	2012		2013
	Available For Sale Securities		Available For Sale Securities		Derivative Instruments
Beginning Balance	$	160	$	6,489	$	107
Purchases	3,989		250		—
Unrealized gains in other comprehensive income	—		—		(48		)
Ending Balance	$	4,149	$	6,739	$	59

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Regulatory, Legal and Other Matters

6 Months Ended

Aug. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Regulatory, Legal and Other Matters

Regulatory, Legal and Other Matters

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

Emmis and certain of its officers and directors were named as defendants in a lawsuit filed April 16, 2012 by certain holders of Preferred Stock (the “Lock-Up Group”) in the United States District Court for the Southern District of Indiana entitled Corre Opportunities Fund, LP, et al. v. Emmis Communications Corporation, et al. The plaintiffs alleged, among other things, that Emmis and the other defendants violated various provisions of the federal securities laws and breached fiduciary duties in connection with Emmis’ entry into total return swap agreements and voting agreements with certain holders of Emmis Preferred Stock, as well as by issuing shares of Preferred Stock to Emmis’ 2012 Retention Plan and Trust (the “Trust”) and entering into a voting agreement with the trustee of the Trust. The plaintiffs also alleged that Emmis violated certain provisions of Indiana corporate law by directing the voting of the shares of Preferred Stock subject to the total return swap agreements (the “Swap Shares”) and the shares of Preferred Stock held by the Trust (the “Trust Shares”) in favor of certain amendments to Emmis’ Articles of Incorporation.

Emmis filed an answer denying the material allegations of the complaint, and filed a counterclaim seeking a declaratory judgment that Emmis could legally direct the voting of the Swap Shares and the Trust Shares in favor of the proposed amendments.

On August 31, 2012, the U.S. District Court denied plaintiffs request for a preliminary injunction. Plaintiffs subsequently filed an amended complaint seeking monetary damages and dismissing all claims against the individual officer and director defendants. Pending a ruling on motions for summary judgment filed by the Company and by plaintiffs, the matter is currently set for trial in January 2014. Emmis is defending this lawsuit vigorously.

Certain individuals and groups have challenged applications for renewal of the FCC licenses of certain of the Company’s stations. The challenges to the license renewal applications are currently pending before the FCC. Emmis does not expect the challenges to result in the denial of any license renewals.

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Fair Value Measurements Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Feb. 28, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	$ 6,739	$ 6,489
Total assets measured at fair value on a recurring basis	6,739	6,489
Interest rate swap agreement	59	107
Total liabilities measured at fair value on a recurring basis	59	107
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities
Total assets measured at fair value on a recurring basis
Interest rate swap agreement
Total liabilities measured at fair value on a recurring basis
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities
Total assets measured at fair value on a recurring basis
Interest rate swap agreement	59	107
Total liabilities measured at fair value on a recurring basis	59	107
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	6,739	6,489
Total assets measured at fair value on a recurring basis	6,739	6,489
Interest rate swap agreement
Total liabilities measured at fair value on a recurring basis

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Share Based Payments Stock-Based Compensation Expense and Related Tax Benefits Recognized (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 2,419	$ 565	$ 3,082	$ 954
Tax benefit	0	0	0	0
Recognized stock-based compensation expense, net of tax	2,419	565	3,082	954
Station operating expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	1,213	296	1,466	447
Corporate expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 1,206	$ 269	$ 1,616	$ 507

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Summary of Significant Accounting Policies Shares Excluded from Calculation as Effect of Conversion into Shares of Common Stock (Details) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents (in shares)	1,929	9,562	1,980	9,186
Stock options and restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents (in shares)	1,929	7,274	1,980	6,898
Series A preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive common share equivalents (in shares)	0	2,288	0	2,288

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Summary of Significant Accounting Policies Calculation of Basic and Diluted Net Income Per Share from Continuing Operations (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Basic net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$ 2,647	$ (695)	$ 6,372	$ (3,367)
Impact of equity awards
Impact of conversion of preferred stock into common stock	(76)		(325)
Diluted net (loss) income per common share:
Net income available to common shareholders from continuing operations	$ 2,571	$ (695)	$ 6,047	$ (3,367)
Basic shares:
Basic weighted average common shares outstanding (in shares)	41,451	38,859	41,313	38,819
Impact of equity awards (in shares)	3,217		2,770
Impact of conversion of preferred stock into common stock (in shares)	2,269		2,278
Diluted shares:
Diluted weighted average common shares outstanding (in shares)	46,937	38,859	46,361	38,819
Basic net income per common share:
Net income available to common shareholders from continuing operations, per basic shares (in dollars per share)	$ 0.06	$ (0.02)	$ 0.15	$ (0.09)
Impact of equity awards (in dollars per share)
Impact of conversion of preferred stock into common stock (in dollars per share)
Diluted net income per common share:
Net income available to common shareholders from continuing operations, per dilutive shares (in dollars per share)	$ 0.05	$ (0.02)	$ 0.13	$ (0.09)

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Fair Values of Derivative Instruments (Detail) (Derivatives designated as hedging instruments, USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Feb. 28, 2013
Derivatives, Fair Value [Line Items]
Liability Derivative Fair Value	$ 59	$ 107
Interest Rate Swap Agreements (Long-Term Portion)
Derivatives, Fair Value [Line Items]
Liability Derivative Fair Value	$ 59	$ 107

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Share Based Payments - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended		0 Months Ended	6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012	Apr. 02, 2012 2012 Retention Plan	Aug. 31, 2013 2012 Retention Plan	Aug. 31, 2012 2012 Retention Plan	Aug. 31, 2013 Minimum	Aug. 31, 2013 Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted, term			10 years
Stock options vesting period			3 years
Annual percentage over three years			33.33%
Stock options weighted average grant date fair value			$ 1.36	$ 0.71
Shares available for future grants	3,800,000		3,800,000
Vesting dates of outstanding options								2013-07	2017-03
Expiration dates of options								2014-03	2023-03
Restricted stock awards requisite service period			3 years
Grant date fair value of shares vested			$ 400,000	$ 100,000
Preferred stock contributed by company					400,000
Compensation expenses	2,419,000	565,000	3,082,000	954,000		1,500,000	500,000
Unrecognized compensation cost	$ 3,000,000		$ 3,000,000
Compensation cost of weighted average period			1 year 2 months 12 days

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Long-Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Feb. 28, 2013	Dec. 28, 2012
Debt Instrument [Line Items]
Total Credit Agreement debt	$ 140,053
98.7FM nonrecourse debt	77,053	79,068
Current maturities	(12,331)	(12,126)
Unamortized original issue discount	(2,192)	(2,448)
Total long-term debt	125,530	131,494
Revolver
Debt Instrument [Line Items]
Total Credit Agreement debt	5,000
Term Loan
Debt Instrument [Line Items]
Total Credit Agreement debt	58,000
2012 Credit Agreement
Debt Instrument [Line Items]
Total Credit Agreement debt	63,000	67,000
Unamortized original issue discount	(2,200)		(2,500)
2012 Credit Agreement | Revolver
Debt Instrument [Line Items]
Total Credit Agreement debt	5,000	5,000
2012 Credit Agreement | Term Loan
Debt Instrument [Line Items]
Total Credit Agreement debt	$ 58,000	$ 62,000

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Fair Value Measurements Reconciliation of Beginning and Ending Balances for Fair Value Measurements using Significant Unobservable Inputs (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012
Available For Sale Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 6,489	$ 160
Purchases	250	3,989
Unrealized gains in other comprehensive income
Ending Balance	6,739	4,149
Derivative Instruments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	107
Purchases
Unrealized gains in other comprehensive income	(48)
Ending Balance	$ 59

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Operating Results of Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Station operating expenses, excluding depreciation and amortization expense	$ 41,938	$ 39,778	$ 79,650	$ 80,350
Depreciation and amortization	1,213	1,169	2,389	2,294
Interest expense	1,808	6,878	3,729	12,645
Other (income) expense, net	(33)	215	(40)	17
KXOS-FM (Radio)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	0	1,581	0	3,331
Station operating expenses, excluding depreciation and amortization expense	0	7	0	27
Depreciation and amortization	0	65	0	169
Interest expense	0	1,591	0	3,358
Gain on sale of station	0	32,757	0	32,757
Benefit from income taxes	0	7,572	0	6,476
Emmis Interactive Inc. (Radio)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	0	1,144	0	2,383
Station operating expenses, excluding depreciation and amortization expense	0	1,754	0	3,716
Depreciation and amortization	0	120	0	257
Impairment loss	0	737	0	737
Other income	0	1	0	134
Sampler Publications
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	0	1,620	0	3,939
Station operating expenses, excluding depreciation and amortization expense	0	1,612	0	3,604
Depreciation and amortization	0	22	0	44
Interest expense	0	188	0	377
Benefit from income taxes	0	130	0	259
Slovakia Radio Network (Radio)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	0	3,172	0	5,449
Station operating expenses, excluding depreciation and amortization expense	0	1,863	0	3,528
Depreciation and amortization	0	174	0	354
Interest expense	0	399	0	799
Other (income) expense, net	0	(20)	0	5
Provision for income taxes	0	283	0	365
Bulgaria Radio Network (Radio)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues	0	324	0	558
Station operating expenses, excluding depreciation and amortization expense	0	442	0	871
Depreciation and amortization	0	27	0	137
Other expense, net	$ 0	$ 1	$ 0	$ 3

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Summary of Long-Term Debt Principal Repayments (Detail) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013
Debt Instrument [Line Items]
2014	$ 6,111
2015	12,541
2016	12,990
2017	13,453
2018	41,039
Thereafter	53,919
Total	140,053
Revolver
Debt Instrument [Line Items]
2014	0
2015	0
2016	0
2017	0
2018	5,000
Thereafter	0
Total	5,000
Term Loan
Debt Instrument [Line Items]
2014	4,000
2015	8,000
2016	8,000
2017	8,000
2018	30,000
Thereafter	0
Total	58,000
98.7 FM nonrecourse debt
Debt Instrument [Line Items]
2014	2,111
2015	4,541
2016	4,990
2017	5,453
2018	6,039
Thereafter	53,919
Total	$ 77,053

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Segment Information (Tables)

6 Months Ended

Aug. 31, 2013

Segment Reporting [Abstract]

Results of Operations of Business Segments

Three Months Ended August 31, 2013	Radio			Publishing			Corporate			Consolidated
Net revenues	$	41,259		$	13,708		$	—		$	54,967
Station operating expenses excluding depreciation and amortization expense	28,000			13,938			—			41,938
Corporate expenses excluding depreciation and amortization expense	—			—			5,070			5,070
Hungary license litigation and related expenses	1,043			—			—			1,043
Depreciation and amortization	604			61			548			1,213
Gain of sale of fixed assets	(1		)	—			—			(1		)
Operating income (loss)	$	11,613		$	(291	)	$	(5,618	)	$	5,704

Three Months Ended August 31, 2012	Radio			Publishing			Corporate			Consolidated
Net revenues	$	39,964		$	12,965		$	—		$	52,929
Station operating expenses excluding depreciation and amortization expense	25,988			13,790			—			39,778
Corporate expenses excluding depreciation and amortization expense	—			—			4,161			4,161
Hungary license litigation and related expenses	210			—			—			210
Depreciation and amortization	598			82			489			1,169
Gain on sale of fixed assets	(3		)	(3		)	—			(6		)
Operating income (loss)	$	13,171		$	(904	)	$	(4,650	)	$	7,617

Six Months Ended August 31, 2013	Radio			Publishing			Corporate			Consolidated
Net revenues	$	78,185		$	27,368		$	—		$	105,553
Station operating expenses excluding depreciation and amortization expense	50,911			28,739			—			79,650
Corporate expenses excluding depreciation and amortization expense	—			—			9,470			9,470
Hungary license litigation and related expenses	1,295			—			—			1,295
Depreciation and amortization	1,198			123			1,068			2,389
Gain on sale of fixed assets	(1		)	—			—			(1		)
Operating income (loss)	$	24,782		$	(1,494	)	$	(10,538	)	$	12,750

Six Months Ended August 31, 2012	Radio			Publishing			Corporate			Consolidated
Net revenues	$	74,840		$	27,057		$	—		$	101,897
Station operating expenses excluding depreciation and amortization expense	52,308			28,042			—			80,350
Corporate expenses excluding depreciation and amortization expense	—			—			9,133			9,133
Hungary license litigation and related expenses	414			—			—			414
Impairment loss	10,971			—			—			10,971
Depreciation and amortization	1,176			168			950			2,294
Gain on sale of fixed assets	(10,003		)	(3		)	—			(10,006		)
Operating income (loss)	$	19,974		$	(1,150	)	$	(10,083	)	$	8,741

			As of February 28, 2013
	Radio		Publishing		Corporate		Consolidated
Assets — continuing operations	$	209,721	$	21,005	$	30,136	$	260,862
Assets — discontinued operations	630		132		—		762
Total assets	$	210,351	$	21,137	$	30,136	$	261,624
			As of August 31, 2013
	Radio		Publishing		Corporate		Consolidated
Assets — continuing operations	$	215,736	$	21,033	$	28,930	$	265,699
Assets — discontinued operations	465		—		—		465
Total assets	$	216,201	$	21,033	$	28,930	$	266,164

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Aug. 31, 2013	Feb. 28, 2013
Class A Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	170,000,000	170,000,000
Common stock, shares issued	36,794,152	35,907,925
Common stock, shares outstanding	36,794,152	35,907,925
Class B Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	4,722,684	4,722,684
Common stock, shares outstanding	4,722,684	4,722,684
Series A preferred stock
Series A non-cumulative convertible preferred stock, par value	$ 0.01	$ 0.01
Series A non-cumulative convertible preferred stock, liquidation preference	$ 50.00	$ 50.00
Series A non-cumulative convertible preferred stock, aggregate liquidation preference and redemption amount	$ 46,450	$ 46,882
Series A non-cumulative convertible preferred stock, shares authorized	2,875,000	2,875,000
Series A non-cumulative convertible preferred stock, shares issued	1,328,991	1,337,641
Series A non-cumulative convertible preferred stock, shares outstanding	1,328,991	1,337,641
Shares in trust
Series A non-cumulative convertible preferred stock, shares in trust	400,000	400,000

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$ 8,882	$ 37,335
Adjustments to reconcile consolidated net income to net cash (used in) provided by operating activities -
Discontinued operations	0	(36,417)
Impairment loss	0	10,971
Depreciation and amortization	2,389	2,294
Noncash accretion of debt instruments to interest expense	450	8,939
Loss on debt extinguishment	0	1,085
Provision for bad debts	338	280
(Benefit) provision for deferred income taxes	1,288	(6,062)
Noncash compensation	3,082	954
Gain on sale of assets	(1)	(10,006)
Other	(75)	0
Changes in assets and liabilities -
Accounts receivable	(6,880)	(4,251)
Prepaid expenses and other current assets	229	436
Other assets	(1,167)	(1,334)
Accounts payable and accrued liabilities	266	(2,810)
Deferred revenue	1,197	(1,011)
Income taxes	(322)	(604)
Other liabilities	294	(6,609)
Net cash used in operating activities — discontinued operations	(68)	(371)
Net cash (used in) provided by operating activities	9,902	(7,181)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(1,857)	(956)
Cash paid for investments, net of distributions	(220)	(3,989)
Proceeds from the sale of assets	1	10,006
Other	0	42
Net cash provided by (used in) investing activities — discontinued operations	(1,650)	85,463
Net cash provided by (used in) investing activities	(3,726)	90,566
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt	(12,015)	(165,951)
Proceeds from long-term debt	6,000	92,198
Debt-related costs	(137)	(3,495)
Payments of dividends and distributions to noncontrolling interests	(1,816)	(2,158)
Proceeds from the exercise of stock options	126	134
Purchase of preferred stock	(107)	0
Settlement of tax withholding obligations on stock issued to employees	(133)	0
Net cash used in financing activities	(8,082)	(79,272)
Effect of exchange rates on cash and cash equivalents	(8)	(200)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,914)	3,913
CASH AND CASH EQUIVALENTS:
Beginning of period	8,735	5,619
End of period	6,821	9,532
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	3,285	15,377
Cash paid (refund from) income taxes, net	(804)	731
Noncash financing transactions -
Value of stock issued to employees under stock compensation program and to satisfy accrued incentives	$ 1,307	$ 954

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Intangible Assets and Goodwill

6 Months Ended

Aug. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Valuation of Indefinite-lived Broadcasting Licenses

In accordance with ASC Topic 350, Intangibles—Goodwill and Other, the Company’s Federal Communications Commission (“FCC”) licenses are considered indefinite-lived intangibles. These assets, which the Company determined were its only indefinite-lived intangibles, are not subject to amortization, but are tested for impairment at least annually as discussed below.

The carrying amounts of the Company’s FCC licenses were $150.5 million as of February 28, 2013 and $150.6 million as of August 31, 2013. Pursuant to Emmis’ accounting policy, stations in a geographic market cluster are considered a single unit of accounting, provided that they are not being operated under an LMA by another broadcaster. As of February 29, 2012, our two stations in New York were considered a single unit of accounting. In connection with the execution of the LMA discussed in Note 1, the Company separated the two New York stations into separate units of accounting. The Company performed an interim impairment test of the 98.7FM license as of May 1, 2012 which resulted in an impairment charge of $11.0 million. The carrying value of the 98.7FM license subsequent to the impairment charge is $60.5 million, which approximates its fair value.

The Company generally performs its annual impairment test of indefinite-lived intangibles as of December 1 of each year. When indicators of impairment are present, as was the case with 98.7FM as noted above, the Company will perform an interim impairment test. These impairment tests may result in impairment charges in future periods.

Fair value of our FCC licenses is estimated to be the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. To determine the fair value of our FCC licenses, the Company uses an income valuation method when it performs its impairment tests. Under this method, the Company projects cash flows that would be generated by each of its units of accounting assuming the unit of accounting was commencing operations in its respective market at the beginning of the valuation period. This cash flow stream is discounted to arrive at a value for the FCC license. The Company assumes the competitive situation that exists in each market remains unchanged, with the exception that its unit of accounting commenced operations at the beginning of the valuation period. In doing so, the Company extracts the value of going concern and any other assets acquired, and strictly values the FCC license. Major assumptions involved in this analysis include market revenue, market revenue growth rates, unit of accounting audience share, unit of accounting revenue share and discount rate. Each of these assumptions may change in the future based upon changes in general economic conditions, audience behavior, consummated transactions, and numerous other variables that may be beyond our control. When evaluating our radio broadcasting licenses for impairment, the testing is performed at the unit of accounting level as determined by ASC Topic 350-30-35. In our case, radio stations in a geographic market cluster are considered a single unit of accounting, provided that they are not being operated under an LMA.

Valuation of Goodwill

ASC Topic 350-20-35 requires the Company to test goodwill for impairment at least annually using a two-step process. The first step is a screen for potential impairment, while the second step measures the amount of impairment. The Company conducts the two-step impairment test on December 1 of each fiscal year, unless indications of impairment exist during an interim period. During the quarter ended August 31, 2013, no new or additional impairment indicators emerged; hence, no interim impairment testing was warranted. When assessing its goodwill for impairment, the Company uses an enterprise valuation approach to determine the fair value of each of the Company’s reporting units (radio stations grouped by market and magazines on an individual basis). Management determines enterprise value for each of its reporting units by multiplying the two-year average station operating income generated by each reporting unit (current year based on actual results and the next year based on budgeted results) by an estimated market multiple. The Company uses a blended station operating income trading multiple of publicly traded radio operators as a benchmark for the multiple it applies to its radio reporting units. There are no publicly traded publishing companies that are focused predominantly on city and regional magazines as is our publishing segment. Therefore, the market multiple used as a benchmark for our publishing reporting units has been based on recently completed transactions within the city and regional magazine industry or analyst reports that include valuations of magazine divisions within publicly traded media conglomerates. Management believes this methodology for valuing radio and publishing properties is a common approach and believes that the multiples used in the valuation are reasonable given our peer comparisons and recent market transactions. To corroborate the step-one reporting unit fair values determined using the market approach described above, management also uses an income approach, which is a discounted cash flow method to determine the fair value of the reporting unit.

This enterprise valuation is compared to the carrying value of the reporting unit for the first step of the goodwill impairment test. If the reporting unit exhibits impairment, the Company proceeds to the second step of the goodwill impairment test. For its step-two testing, the enterprise value is allocated among the tangible assets, indefinite-lived intangible assets (FCC licenses valued using a direct-method valuation approach) and unrecognized intangible assets, such as customer lists, with the residual amount representing the implied fair value of the goodwill. To the extent the carrying amount of the goodwill exceeds the implied fair value of the goodwill, the difference is recorded as an impairment charge in the statement of operations.

As of February 28, 2013 and August 31, 2013, the carrying amount of the Company’s goodwill was $12.6 million. Approximately $4.6 million of our goodwill was attributable to our radio division as of February 28, 2013 and August 31, 2013. Approximately $8.0 million of our goodwill was attributable to our publishing division as of February 28, 2013 and August 31, 2013.

Definite-lived intangibles

The Company’s definite-lived intangible assets consist of trademarks which are amortized over the period of time the assets are expected to contribute directly or indirectly to the Company’s future cash flows. The trademarks have a weighted average remaining useful life of 11.9 years. Amortization expense related to trademarks is expected to be less than $0.1 million in each of the next five successive fiscal years.

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Summary of Significant Accounting Policies

6 Months Ended

Aug. 31, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Preparation of Interim Financial Statements

Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), the condensed consolidated interim financial statements included herein have been prepared, without audit, by Emmis Communications Corporation (“ECC”) and its subsidiaries (collectively, “our,” “us,” “we,” “Emmis” or the “Company”). As permitted under the applicable rules and regulations of the SEC, certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, Emmis believes that the disclosures are adequate to make the information presented not misleading. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in the Annual Report for Emmis filed on Form 10-K for the year ended February 28, 2013. The Company’s results are subject to seasonal fluctuations. Therefore, results shown on an interim basis are not necessarily indicative of results for a full year.

In the opinion of Emmis, the accompanying condensed consolidated interim financial statements contain all material adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position of Emmis at August 31, 2013, and the results of its operations for the three-month and six-month periods ended August 31, 2012 and 2013, and cash flows for the six-month periods ended August 31, 2012 and 2013.

Basic and Diluted Net (Loss) Income Per Common Share

Basic net (loss) income per common share is computed by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net (loss) income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Potentially dilutive securities at August 31, 2012 and 2013 consisted of stock options, restricted stock awards and the 6.25% Series A convertible preferred stock (the “Preferred Stock”).

The following table sets forth the calculation of basic and diluted net (loss) income per share from continuing operations:

	Six Months Ended
	August 31, 2012							August 31, 2013
	Net Loss			Shares	Net Loss Per Share			Net Income			Shares	Net Income Per Share
	(amounts in 000’s, except per share data)
Basic net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(3,367	)	38,819	$	(0.09	)	$	6,372		41,313	$	0.15
Impact of equity awards	—			—	—			—			2,770	—
Impact of conversion of preferred stock into common stock	—			—	—			(325		)	2,278	—
Diluted net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(3,367	)	38,819	$	(0.09	)	$	6,047		46,361	$	0.13

	Three Months Ended
	August 31, 2012							August 31, 2013
	Net Loss			Shares	Net Loss Per Share			Net Income			Shares	Net Income Per Share
	(amounts in 000’s, except per share data)
Basic net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(695	)	38,859	$	(0.02	)	$	2,647		41,451	$	0.06
Impact of equity awards	—			—	—			—			3,217	—
Impact of conversion of preferred stock into common stock	—			—	—			(76		)	2,269	—
Diluted net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(695	)	38,859	$	(0.02	)	$	2,571		46,937	$	0.05

Shares excluded from the calculation as the effect of their conversion into shares of our common stock would be antidilutive were as follows:

	Three Months Ended August 31,		Six Months Ended August 31,
	2012	2013	2012	2013
	(shares in 000’s )
6.25% Series A convertible preferred stock	2,288	—	2,288	—
Stock options and restricted stock awards	7,274	1,929	6,898	1,980
Antidilutive common share equivalents	9,562	1,929	9,186	1,980

Discontinued Operations – Summary of results

The results of operations and related disposal costs, gains and losses for business units that the Company has sold are classified in discontinued operations for all periods presented.

A summary of the income from discontinued operations is presented below:

	Three Months Ended August 31,					Six Months Ended August 31,
	2012			2013		2012			2013
Income (loss) from operations:
KXOS-FM (Radio)	$	32,675		$	—	$	32,534		$	—
Emmis Interactive Inc. (Radio)	(1,466		)	—		(2,193		)	—
Slovakia Radio Network (Radio)	756			—		763			—
Bulgaria Radio Network (Radio)	(146		)	—		(453		)	—
Sampler Publications (Publishing)	(202		)	—		(86		)	—
Total	31,617			—		30,565			—
Benefit from income taxes	(7,159		)	—		(5,852		)	—
Total income from operations, net of tax	$	38,776		$	—	$	36,417		$	—

Discontinued Operation – KXOS-FM

On August 23, 2012, Emmis completed the sale of KXOS-FM in Los Angeles for $85.5 million in cash. In connection with the sale, Emmis recorded a gain on sale of assets of approximately $32.8 million. KXOS-FM had previously been operating pursuant to a local programming and marketing agreement, which is discussed in more detail below.

In accordance with the provisions of Accounting Standards Codification (“ASC”) 205-20-45, the Company allocated interest expense associated with the portion of term loans required to be repaid as a result of the sale of KXOS-FM to its operations for all periods presented.

The operations of KXOS-FM had historically been included in the radio segment. The following table summarizes certain operating results of KXOS-FM for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,581	$	—	$	3,331	$	—
Station operating expenses, excluding depreciation and amortization expense	7		—		27		—
Depreciation and amortization expense	65		—		169		—
Interest expense	1,591		—		3,358		—
Gain on sale of station	32,757		—		32,757		—
Benefit from income taxes	7,572		—		6,476		—

Discontinued Operation — Emmis Interactive

On October 31, 2012, Emmis completed the sale of Emmis Interactive Inc., a subsidiary of Emmis that provided a content management system, data analytic tools and related services, to Marketron Broadcast Solutions, LLC (“Marketron”) for no net proceeds. The sale of Emmis Interactive Inc. allowed Emmis to mitigate expected future operating losses and more clearly focus on core radio and publishing operating strategies. Marketron had assumed operating control of Emmis Interactive, Inc., on October 4, 2012. In connection with the sale, Emmis recorded a loss on sale of assets of approximately $0.7 million, which was primarily related to severance for former employees.

The operations of Emmis Interactive Inc. had historically been included in the radio segment. The following table summarizes certain operating results of Emmis Interactive Inc. for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,144	$	—	$	2,383	$	—
Station operating expenses, excluding depreciation and amortization expense	1,754		—		3,716		—
Depreciation and amortization	120		—		257		—
Impairment loss	737		—		737		—
Other income	1		—		134		—

Discontinued Operation – Country Sampler, Smart Retailer and related publications

On October 1, 2012, Emmis completed the sale of Country Sampler magazine, Smart Retailer magazine, and related publications (altogether the “Sampler Publications”) and certain real estate used in their operations to subsidiaries of DRG Holdings, LLC. Emmis believed the sale of the Sampler Publications, which were niche crafting publications, would enable it to more clearly focus on its core city and regional publications. Emmis received gross proceeds from the sale of $8.7 million, incurred approximately $0.2 million in transaction expenses and tax obligations, and used the remaining $8.5 million to repay term loans under the Company’s 2006 Credit Agreement. In connection with the sale, Emmis recorded a gain on sale of assets of approximately $0.7 million.

In accordance with the provisions of Accounting Standards Codification (“ASC”) 205-20-45, the Company allocated interest expense associated with the estimate of term loans required to be repaid as a result of the sale of the Sampler Publications to its operations for all periods presented.

The operations of the Sampler Publications had historically been included in the publishing segment. The following table summarizes certain operating results of the Sampler Publications for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,620	$	—	$	3,939	$	—
Station operating expenses, excluding depreciation and amortization expense	1,612		—		3,604		—
Depreciation and amortization	22		—		44		—
Interest expense	188		—		377		—
Provision for income taxes	130		—		259		—

Discontinued Operation –Slovakia Radio

On February 25, 2013, Emmis completed the sale of its Slovakian radio network to Bauer Ausland 1 GMBH for $21.2 million in cash. Emmis believed the sale of its international radio properties would better enable the Company to focus its efforts on its domestic radio stations. In connection with the sale, Emmis recorded a gain on sale of assets of approximately $14.8 million.

The operations of our Slovakian radio network had historically been included in the radio segment. The following table summarizes certain operating results of our Slovakian radio network for all periods presented:

	Three Months Ended August 31,					Six Months Ended August 31,
	2012			2013		2012		2013
Net revenues	$	3,172		$	—	$	5,449	$	—
Station operating expenses, excluding depreciation and amortization expense	1,863			—		3,528		—
Depreciation and amortization	174			—		354		—
Interest expense	399			—		799		—
Other (income) expense, net	(20		)	—		5		—
Provision for income taxes	283			—		365		—

Discontinued Operation – Bulgaria Radio

On January 3, 2013, Emmis completed the sale of its Bulgarian radio network to Reflex Media EEOD for $1.7 million in cash. Emmis believed the sale of its international radio properties would better enable the Company to focus its efforts on its domestic radio stations. In connection with the sale, Emmis recorded a loss on sale of assets of approximately $1.3 million. The loss on disposal primarily resulted from the reclassification of accumulated currency translation adjustments.

The operations of our Bulgarian radio network had historically been included in the radio segment. The following table summarizes certain operating results of our Bulgarian radio network for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	324	$	—	$	558	$	—
Station operating expenses, excluding depreciation and amortization expense	442		—		871		—
Depreciation and amortization	27		—		137		—
Other expense, net	1		—		3		—

Summary of Assets and Liabilities of Discontinued Operations:

	As of February 28, 2013		As of  August 31, 2013
Current assets:
Cash and cash equivalents	$	579	$	465
Accounts receivable, net	128		—
Prepaid expenses	17		—
Other	38		—
Total current assets	$	762	$	465
Current liabilities:
Accounts payable and accrued expenses	$	2,169	$	90
Total current liabilities	$	2,169	$	90

Local Programming and Marketing Agreement Fees

The Company from time to time enters into local programming and marketing agreements (“LMAs”) in connection with acquisitions or dispositions of radio stations, typically pending regulatory approval of transfer of the FCC licenses. In such cases where the Company enters into an LMA in connection with a disposition, the Company generally receives specified periodic payments in exchange for the counterparty receiving the right to program and sell advertising for a specified portion of the station’s inventory of broadcast time. Nevertheless, as the holder of the FCC license, the Company retains control and responsibility for the operation of the station, including responsibility over all programming broadcast on the station.

On April 26, 2012, Emmis entered into an LMA with a subsidiary of Disney Enterprises, Inc. for 98.7FM in New York (formerly WRKS-FM and now WEPN-FM, hereinafter referred to as “98.7FM”). The LMA for this station started on April 30, 2012 and will continue until August 31, 2024. During the three months ended August 31, 2012 and 2013, Emmis recognized $2.6 million and $2.6 million, respectively, of LMA fees, recorded as net revenues in the accompanying condensed consolidated statements of operations, related to the 98.7FM LMA. During the six months ended August 31, 2012 and 2013, Emmis recognized LMA fee revenue of $3.4 million and $5.2 million, respectively.

Grupo Radio Centro, S.A.B. de C.V (“GRC”), a Mexican broadcasting company, provided programming and sold advertising for KXOS-FM in Los Angeles pursuant to an LMA from April 2009 until affiliates of GRC consummated the purchase of KXOS-FM on August 23, 2012. Emmis recognized $1.6 million and $3.3 million of LMA fees, recorded as income from discontinued operations, net of tax, related to the KXOS-FM LMA during the three months and six months ended August 31, 2012, respectively.

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Long-Term Debt - Additional Information (Detail) (USD $)				6 Months Ended			6 Months Ended			6 Months Ended			0 Months Ended
	Aug. 31, 2013	Feb. 28, 2013	May 30, 2012	Aug. 31, 2013 2012 Credit Agreement	Dec. 28, 2012 2012 Credit Agreement	Aug. 31, 2013 2012 Credit Agreement Minimum	Aug. 31, 2013 2012 Credit Agreement Maximum	Aug. 31, 2013 2012 Credit Agreement Term Loan	Dec. 28, 2012 2012 Credit Agreement Term Loan	Aug. 31, 2013 2012 Credit Agreement Revolver	Dec. 28, 2012 2012 Credit Agreement Revolver	Dec. 28, 2012 2012 Credit Agreement Letter of Credit	Aug. 09, 2013 First Amendment to Credit Agreement Maximum
Debt Instrument [Line Items]
Maximum borrowing capacity under credit facility					$ 100,000,000				$ 80,000,000		$ 20,000,000	$ 5,000,000
Credit agreement bear interest rate						2.50%	5.00%
Period after closing to begin maintaining fixed rates							60 days
Minimum period to maintain fix rates				1 year
Minimum fixed interest rates for at least one year				50.00%
Debt instrument maturity date								Dec. 28, 2017		Dec. 28, 2017
Loan repayment commencement date										Apr. 01, 2013
Quarterly payment of term loan percentage								2.50%
Transaction fees related to the issuance of note				500,000
Original issue discount of issuance of debt	2,192,000	2,448,000		2,200,000	2,500,000
First amendment total costs													100,000
Principal amount of nonrecourse notes issued			$ 82,200,000
Interest rate during period			4.10%

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Summary of Significant Accounting Policies Shares Excluded from Calculation as Effect of Conversion into Shares of Common Stock (Parenthetical) (Detail) (Details) (Series A preferred stock)	6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012
Series A preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Series A convertible preferred stock, dividend rate	6.25%	6.25%

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Summary of Assets and Liabilities of Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Feb. 28, 2013
Current assets:
Cash and cash equivalents	$ 465	$ 579
Accounts receivable, net	0	128
Prepaid expenses	0	17
Other	0	38
Total current assets	465	762
Current liabilities:
Accounts payable and accrued expenses	90	2,169
Total current liabilities	$ 90	$ 2,169

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Share Based Payments Summary of Restricted Stock Grants Outstanding and Activity (Detail) (Restricted Stock, USD $)	6 Months Ended
	Aug. 31, 2013
Restricted Stock
Awards
Grants outstanding, beginning of year	537,405
Granted	802,711
Vested (restriction lapsed)	286,126
Forfeited	181
Grants outstanding, end of year	1,053,809
Price
Grants outstanding, beginning of year	$ 1.72
Granted	$ 1.60
Vested (restriction lapsed)	$ 1.46
Forfeited	$ 1.73
Grants outstanding, end of year	$ 1.70

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Segment Information Results of Operations of Business Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012	Feb. 28, 2013
Segment Reporting Information [Line Items]
Net revenues	$ 54,967	$ 52,929	$ 105,553	$ 101,897
Station operating expenses, excluding depreciation and amortization expense	41,938	39,778	79,650	80,350
Corporate expenses excluding depreciation and amortization expense	5,070	4,161	9,470	9,133
Hungary license litigation and related expenses	1,043	210	1,295	414
Impairment loss				10,971
Depreciation and amortization	1,213	1,169	2,389	2,294
Gain on sale of fixed assets	(1)	(6)	(1)	(10,006)
OPERATING INCOME	5,704	7,617	12,750	8,741
Total Assets	266,164		266,164		261,624
Continuing Operations
Segment Reporting Information [Line Items]
Total Assets	265,699		265,699		260,862
Discontinued Operations
Segment Reporting Information [Line Items]
Total Assets	465		465		762
Radio
Segment Reporting Information [Line Items]
Net revenues	41,259	39,964	78,185	74,840
Station operating expenses, excluding depreciation and amortization expense	28,000	25,988	50,911	52,308
Corporate expenses excluding depreciation and amortization expense
Hungary license litigation and related expenses	1,043	210	1,295	414
Impairment loss				10,971
Depreciation and amortization	604	598	1,198	1,176
Gain on sale of fixed assets	(1)	(3)	(1)	(10,003)
OPERATING INCOME	11,613	13,171	24,782	19,974
Total Assets	216,201		216,201		210,351
Radio | Continuing Operations
Segment Reporting Information [Line Items]
Total Assets	215,736		215,736		209,721
Radio | Discontinued Operations
Segment Reporting Information [Line Items]
Total Assets	465		465		630
Publishing
Segment Reporting Information [Line Items]
Net revenues	13,708	12,965	27,368	27,057
Station operating expenses, excluding depreciation and amortization expense	13,938	13,790	28,739	28,042
Corporate expenses excluding depreciation and amortization expense
Hungary license litigation and related expenses
Impairment loss
Depreciation and amortization	61	82	123	168
Gain on sale of fixed assets		(3)		(3)
OPERATING INCOME	(291)	(904)	(1,494)	(1,150)
Total Assets	21,033		21,033		21,137
Publishing | Continuing Operations
Segment Reporting Information [Line Items]
Total Assets	21,033		21,033		21,005
Publishing | Discontinued Operations
Segment Reporting Information [Line Items]
Total Assets					132
Corporate
Segment Reporting Information [Line Items]
Net revenues
Station operating expenses, excluding depreciation and amortization expense
Corporate expenses excluding depreciation and amortization expense	5,070	4,161	9,470	9,133
Hungary license litigation and related expenses
Impairment loss
Depreciation and amortization	548	489	1,068	950
Gain on sale of fixed assets
OPERATING INCOME	(5,618)	(4,650)	(10,538)	(10,083)
Total Assets	28,930		28,930		30,136
Corporate | Continuing Operations
Segment Reporting Information [Line Items]
Total Assets	28,930		28,930		30,136
Corporate | Discontinued Operations
Segment Reporting Information [Line Items]
Total Assets

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Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended		1 Months Ended	6 Months Ended
	Aug. 31, 2013	Aug. 31, 2013 Interest Rate Cap	Feb. 28, 2013 Fixed to Floating Interest Rate Swap	Aug. 31, 2013 Maximum
Interest Rate Risk [Abstract]
Percentage of term loan portion required to fix interest rate swap		50.00%
Period which required to fix or cap interest rates	2 years
Period which requirement to fix or cap rates can be reduced to	1 year
Senior leverage ratio by May 31, 2014 to reduce the requirement to fix or cap interest rate to one year period		2.50
Increase in interest expense				$ 0.1
Interest rate swap term			2 years
Fixed rate payable on interest rate swap			0.42%
Interest Rate Swap Notional Principal Amount			40
Accumulated other comprehensive loss balance related to derivative instruments				$ 0.1

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Depreciation and amortization expense excluded from station operating expenses	$ 665	$ 680	$ 1,321	$ 1,344
Depreciation and amortization expenses excluded from corporate expenses	$ 548	$ 489	$ 1,068	$ 950

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Liquidity

6 Months Ended

Aug. 31, 2013

Debt Disclosure [Abstract]

Liquidity

Liquidity

The Company continually projects its anticipated cash needs, which include its operating needs, capital needs, and principal and interest payments on its indebtedness. As of the filing of this Form 10-Q, management believes the Company can meet its liquidity needs through the end of fiscal year 2014 with cash and cash equivalents on hand and projected cash flows from operations. Based on these projections, management also believes the Company will be in compliance with its debt covenants through the end of fiscal year 2014.

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013	Feb. 28, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 6,821	$ 8,735
Accounts receivable, net	34,796	28,126
Prepaid expenses	8,491	7,674
Other current assets	3,803	5,411
Current assets - discontinued operations	465	762
Total current assets	54,376	50,708
PROPERTY AND EQUIPMENT, NET	32,032	32,553
INTANGIBLE ASSETS (Note 3):
Indefinite-lived intangibles	150,558	150,522
Goodwill	12,639	12,639
Other intangibles, net	214	225
Total intangible assets	163,411	163,386
OTHER ASSETS, NET	16,345	14,977
Total assets	266,164	261,624
CURRENT LIABILITIES:
Accounts payable and accrued expenses	8,019	8,301
Current maturities of long-term debt (Note 4)	12,331	12,126
Accrued salaries and commissions	8,670	7,535
Accrued interest	389	396
Deferred revenue	12,059	10,862
Other current liabilities	5,745	3,518
Current liabilities - discontinued operations	90	2,169
Total current liabilities	47,303	44,907
LONG-TERM DEBT, NET OF CURRENT MATURITIES (NOTE 4)	125,530	131,494
OTHER NONCURRENT LIABILITIES	8,566	10,052
DEFERRED INCOME TAXES	39,360	38,072
Total liabilities	220,759	224,525
COMMITMENTS AND CONTINGENCIES
EQUITY:
Additional paid-in capital	579,746	578,555
Accumulated deficit	(582,789)	(588,836)
Accumulated other comprehensive loss	(59)	(118)
Total shareholders' deficit	(2,678)	(9,984)
NONCONTROLLING INTERESTS	48,083	47,083
Total equity	45,405	37,099
Total liabilities and equity	266,164	261,624
Class A common stock, $.01 par value; authorized 170,000,000 shares; issued and outstanding 35,907,925 shares at February 28, 2013 and 36,794,152 shares at August 31, 2013
EQUITY:
Common Stock	368	359
Class B common stock, $.01 par value; authorized 30,000,000 shares; issued and outstanding 4,722,684 shares at February 28, 2013 and August 31, 2013
EQUITY:
Common Stock	47	47
Series A preferred stock
EQUITY:
Series A non-cumulative convertible preferred stock, $.01 par value; $50.00 liquidation preference per share, aggregate liquidation preference and redemption amount of $46,882 at February 28, 2013 and $46,450 at August 31, 2013; authorized 2,875,000 shares; issued and outstanding 1,337,641 shares at February 28, 2013 and 1,328,991 at August 31, 2013, which includes 400,000 shares in trust	$ 9	$ 9

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
NET REVENUES	$ 54,967	$ 52,929	$ 105,553	$ 101,897
OPERATING EXPENSES:
Station operating expenses excluding depreciation and amortization expense of $680, $665, $1,344 and $1,321, respectively	41,938	39,778	79,650	80,350
Corporate expenses excluding depreciation and amortization expense of $489, $548, $950 and $1,068, respectively	5,070	4,161	9,470	9,133
Hungary license litigation and related expenses	1,043	210	1,295	414
Impairment loss on intangible assets	0	0	0	10,971
Depreciation and amortization	1,213	1,169	2,389	2,294
Gain on sale of assets	(1)	(6)	(1)	(10,006)
Total operating expenses	49,263	45,312	92,803	93,156
OPERATING INCOME	5,704	7,617	12,750	8,741
OTHER EXPENSE:
Interest expense	(1,808)	(6,878)	(3,729)	(12,645)
Loss on debt extinguishment	0	(601)	0	(1,085)
Other income, net	33	(215)	40	(17)
Total other expense	(1,775)	(7,694)	(3,689)	(13,747)
(LOSS) INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS	3,929	(77)	9,061	(5,006)
(BENEFIT) PROVISION FOR INCOME TAXES	4	(1,509)	179	(5,924)
INCOME FROM CONTINUING OPERATIONS	3,925	1,432	8,882	918
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX	0	38,776	0	36,417
CONSOLIDATED NET INCOME	3,925	40,208	8,882	37,335
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	1,354	1,217	2,835	2,479
NET INCOME ATTRIBUTABLE TO THE COMPANY	2,571	38,991	6,047	34,856
GAIN ON EXTINGUISHMENT OF PREFERRED STOCK	76	0	325	0
PREFERRED STOCK DIVIDENDS	0	(910)	0	(1,806)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	2,647	38,081	6,372	33,050
Amounts attributable to common shareholders for basic and diluted earnings per share:
Continuing operations	2,647	(695)	6,372	(3,367)
Discontinued operations	0	38,776	0	36,417
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	2,647	38,081	6,372	33,050
Amounts attributable to common shareholders for diluted earnings per share:
Continuing operations	2,571	(695)	6,047	(3,367)
Discontinued operations	0	38,776	0	36,417
Net income attributable to common shareholders	$ 2,571	$ 38,081	$ 6,047	$ 33,050
Basic net (loss) income per share attributable to common shareholders:
Continuing operations	$ 0.06	$ (0.02)	$ 0.15	$ (0.09)
Discontinued operations, net of tax	$ 0.00	$ 1.00	$ 0.00	$ 0.94
Net income per share attributable to common shareholders	$ 0.06	$ 0.98	$ 0.15	$ 0.85
Basic weighted average common shares outstanding	41,451	38,859	41,313	38,819
Diluted net (loss) income per share attributable to common shareholders:
Continuing operations	$ 0.05	$ (0.02)	$ 0.13	$ (0.09)
Discontinued operations, net of tax	$ 0.00	$ 1.00	$ 0.00	$ 0.94
Net income per share attributable to common shareholders	$ 0.05	$ 0.98	$ 0.13	$ 0.85
Diluted weighted average common shares outstanding	46,937	38,859	46,361	38,819

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Summary of Income from Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012	Aug. 31, 2013	Aug. 31, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from operations	$ 0	$ 31,617	$ 0	$ 30,565
Provision for income taxes	0	(7,159)	0	(5,852)
Total loss from operations, net of tax	0	38,776	0	36,417
KXOS-FM (Radio)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from operations	0	32,675	0	32,534
Emmis Interactive Inc. (Radio)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from operations	0	(1,466)	0	(2,193)
Slovakia Radio Network (Radio)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from operations	0	756	0	763
Bulgaria Radio Network (Radio)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from operations	0	(146)	0	(453)
Sampler Publications
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from operations	$ 0	$ (202)	$ 0	$ (86)

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Aug. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instrument

For the three months and six months ended August 31, 2013, this credit adjustment was immaterial.

	Tabular Disclosure of Fair Values of Derivative Instruments Liability Derivatives
	As of February 28, 2013			As of August 31, 2013
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest Rate Swap Agreements (Long- Term Portion)	Other Noncurrent Liabilities	107		Other Noncurrent Liabilities	59
Total derivatives designated as hedging instruments		$	107		$	59

Derivative Financial Instrument Effect on Consolidated Statement of Operations

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months and six months ended August 31, 2012 and 2013.

	For the Six Months Ended August 31,
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2013			2012		2013				2012		2013
Interest Rate Swap
Agreements	$	—	$	93	Interest expense	$	—	$	(45	)	N/A	$	—	$	—
Total	$	—	$	93		$	—	$	(45	)		$	—	$	—
	For the Three Months Ended August 31,
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2013			2012		2013				2012		2013
Interest Rate Swap
Agreements	$	—	$	27	Interest expense	$	—	$	(23	)	N/A	$	—	$	—
Total	$	—	$	27		$	—	$	(23	)		$	—	$	—

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Significant Events - Additional Information (Details) (USD $)	0 Months Ended
	Aug. 09, 2013	Aug. 31, 2013
Long-term Purchase Commitment [Line Items]
Call option, maximum ownership interest allowed to be exercised by radio operator	30.00%
Period for payment to be expensed	3 months
NextRadio LLC
Long-term Purchase Commitment [Line Items]
Agreement amount	$ 15,000,000
Period of agreement	3 years
Agreement, quarterly payment	3,750,000
Variable interest entity, consolidated, carrying amount of assets		600,000
Variable interest entity, liabilities		0
Emmis
Long-term Purchase Commitment [Line Items]
Agreement, quarterly payment	$ 800,000
Minimum | NextRadio LLC
Long-term Purchase Commitment [Line Items]
Minimum number of devices with pre-loaded smartphone application	30,000,000

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Intangible Assets and Goodwill - Additional Information (Detail) (USD $)	0 Months Ended	6 Months Ended				0 Months Ended	6 Months Ended				6 Months Ended
	Feb. 29, 2012 Segment	Aug. 31, 2012	Aug. 31, 2013	Feb. 28, 2013	Aug. 31, 2013 Maximum	May 01, 2012 Licensing Agreements	Aug. 31, 2013 Trademarks	Aug. 31, 2012 Radio	Aug. 31, 2013 Radio	Feb. 28, 2013 Radio	Aug. 31, 2012 Publishing	Aug. 31, 2013 Publishing	Feb. 28, 2013 Publishing
Intangible Assets And Goodwill [Line Items]
Carrying amount of indefinite-lived intangibles			$ 150,600,000	$ 150,500,000
Number of stations in New York considered as single unit of accounting	2
Impairment charges		10,971,000				11,000,000		10,971,000
Carrying amount of indefinite-lived intangibles			150,558,000	150,522,000		60,500,000
Goodwill			12,639,000	12,639,000					4,600,000	4,600,000		8,000,000	8,000,000
Weighted average remaining useful life							11 years 10 months 16 days
2014					100,000
2015					100,000
2016					100,000
2017					100,000
2018					$ 100,000

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Share Based Payments Summary of Stock Options Outstanding and Activity (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Aug. 31, 2013
Options
Outstanding, beginning of period	7,132,459
Granted	381,219
Exercised	169,500	[1]
Forfeited	15,000
Expired	551,220
Outstanding, end of period	6,777,958
Exercisable, end of period	3,658,269
Price
Outstanding, beginning of period	$ 4.31
Granted	$ 1.77
Exercised	$ 0.71	[1]
Forfeited	$ 0.70
Expired or exchanged	$ 10.91
Outstanding, end of period	$ 3.71
Exercisable, end of period	$ 6.04
Outstanding	6 years 4 months 24 days
Exercisable, end of period	4 years 6 months
Outstanding, end of period	$ 12,380
Exercisable, end of period	$ 5,525

[1] The Company did not record an income tax benefit related to option exercises in the six months ended August 31, 2012 and 2013.

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Share Based Payments Summary of Nonvested Options and Changes (Detail) (USD $)	6 Months Ended
	Aug. 31, 2013
Options
Nonvested, beginning of period	3,188,104
Granted	381,219
Vested	434,634
Forfeited	15,000
Nonvested, end of period	3,119,689
Weighted Average Grant Date Fair Value
Nonvested, beginning of period	$ 0.76
Granted	$ 1.36
Vested	$ 0.98
Forfeited	$ 0.57
Nonvested, end of period	$ 0.80

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Significant Events

6 Months Ended

Aug. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Significant Events

Significant Events

Next Radio LLC - Sprint Agreement

On August 9, 2013, NextRadio LLC entered into an agreement with Sprint/United Management Company (“Sprint”) whereby Sprint agreed to pre-load the Company's smartphone application, NextRadio, in a minimum of 30 million FM-enabled wireless devices on the Sprint wireless network over a three-year period. In return, NextRadio LLC agreed to pay Sprint $15 million per year in equal quarterly installments over the three year term and to share with Sprint certain revenue generated by the NextRadio app. Emmis has not guaranteed NextRadio LLC's performance under this agreement and Sprint does not have recourse to any Emmis-related entity other than NextRadio LLC. Additionally, the agreement does not limit the ability of NextRadio LLC to place the NextRadio app on FM-enabled devices on other wireless networks.

Nearly all of the largest radio broadcasters and many smaller radio broadcasters have expressed support for NextRadio LLC's agreement with Sprint. Accordingly, NextRadio LLC has entered into a number of funding agreements with radio broadcasters and other participants in the radio industry to collect and remit cash to Sprint to fulfill the quarterly payment obligation. As part of some of these funding agreements, Emmis agreed to certain limitations on the operation of its NextRadio and TagStation businesses, including assurances of access to the NextRadio app and to TagStation (the cloud-based engine that provides data to the NextRadio app), and limitations on sale of the businesses to potential competitors of the U.S. radio industry. Emmis also granted the U.S. radio industry (as defined in the funding agreements) a call option on substantially all of the assets used in the NextRadio and TagStation businesses in the United States. The call option may be exercised in August 2017 or August 2019 by paying Emmis a purchase price equal to the greater of (i) the appraised fair market value of the NextRadio and TagStation businesses, or (ii) two times Emmis' cumulative investments in the development of the businesses. If the call option is exercised, the businesses will continue to be subject to the operating limitations applicable today, and no radio operator will be permitted to own more than 30% of the NextRadio and TagStation businesses.

NextRadio LLC made the first $3.75 million quarterly payment to Sprint on August 9, 2013. Emmis paid $0.8 million of the first quarterly payment amount, which is being expensed over the three-month period ending November 8, 2013. Emmis has determined that NextRadio LLC is a variable interest entity (VIE) and that Emmis is the primary beneficiary because the Company has the power to direct substantially all of the activities of NextRadio LLC, and because the Company may absorb certain losses and receive certain benefits from the operations of the VIE. Emmis does not record any revenue or expense related to the amounts that are collected and remitted to Sprint except the portion of any payment to Sprint that was actually contributed to NextRadio LLC by Emmis, which is recorded as station operating expenses, excluding depreciation and amortization expense. As of August 31, 2013, the carrying value of assets within NextRadio LLC totaled $0.6 million, which represents the balance of Emmis' prepaid asset.  NextRadio LLC had no liabilities at August 31, 2013.

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	0 Months Ended	3 Months Ended	6 Months Ended	0 Months Ended				3 Months Ended		6 Months Ended
	Aug. 23, 2012 KXOS-FM (Radio)	Aug. 31, 2012 KXOS-FM (Radio) Collaborative Arrangement [Member]	Aug. 31, 2012 KXOS-FM (Radio) Collaborative Arrangement [Member]	Oct. 31, 2012 Emmis Interactive Inc. (Radio)	Oct. 01, 2012 Sampler Publications	Feb. 25, 2013 Slovakia Radio Network (Radio)	Jan. 03, 2013 Bulgaria Radio Network (Radio)	Aug. 31, 2013 98.7 FM [Member] Collaborative Arrangement [Member]	Aug. 31, 2012 98.7 FM [Member] Collaborative Arrangement [Member]	Aug. 31, 2013 98.7 FM [Member] Collaborative Arrangement [Member]	Aug. 31, 2012 98.7 FM [Member] Collaborative Arrangement [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Selling cash price of land, towers and other equipment	$ 85.5				$ 8.7	$ 21.2	$ 1.7
Gain (loss) on sale of business	32.8			(0.7)	0.7	14.8	(1.3)
Transaction expenses and tax obligations					0.2
Repayment of term loans under credit agreement					8.5
Annual license fees received		$ 1.6	$ 3.3					$ 2.6	$ 2.6	$ 5.2	$ 3.4

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Senior Leverage Ratio and Total Leverage Ratio Requirements and Actual Amounts (Detail)	Aug. 31, 2013
Covenant Requirement | Maximum
Line of Credit Facility [Line Items]
Maximum Senior Leverage Ratio	4.00
Maximum Total Leverage Ratio	4.75
Covenant Requirement | Minimum
Line of Credit Facility [Line Items]
Minimum Fixed Charge Coverage Ratio	1.25
Actual | Maximum
Line of Credit Facility [Line Items]
Maximum Senior Leverage Ratio	3.12
Maximum Total Leverage Ratio	3.12
Actual | Minimum
Line of Credit Facility [Line Items]
Minimum Fixed Charge Coverage Ratio	1.42

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Fair Value Measurements

6 Months Ended

Aug. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).

Recurring Fair Value Measurements

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of February 28, 2013 and August 31, 2013. The financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

	As of August 31, 2013
	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
Available for sale securities	$	—	$	—	$	6,739	$	6,739
Total assets measured at fair value on a recurring basis	$	—	$	—	$	6,739	$	6,739
Interest rate swap agreement	$	—	$	59	$	—	$	59
Total liabilities measured at fair value on a recurring basis	$	—	$	59	$	—	$	59
	As of February 28, 2013
	Level 1		Level 2		Level 3
	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
Available for sale securities	$	—	$	—	$	6,489	$	6,489
Total assets measured at fair value on a recurring basis	$	—	$	—	$	6,489	$	6,489
Interest rate swap agreement	$	—	$	107	$	—	$	107
Total liabilities measured at fair value on a recurring basis	$	—	$	107	$	—	$	107

Available for sale securities — Emmis’ available for sale securities are investments in preferred stock of companies that are not traded in active markets. The investments are recorded at fair value, which is generally estimated using significant unobservable market parameters, resulting in a level 3 categorization. At February 28, 2013 and August 31, 2013, the investments are carried at their cost basis, which management believes approximates fair value, due to the recent purchase of these investments and recent third party transactions that corroborate Emmis’ carrying value approximates current fair value.

Interest rate swap agreement — Emmis’ derivative financial instruments consisted solely of an interest rate cash flow hedge in which the Company pays a fixed rate and receives a variable interest rate that was observable based upon a forward interest rate curve and is therefore considered a level 2 measurement.

The following table shows a reconciliation of the beginning and ending balances for fair value measurements using significant unobservable inputs:

	For the Six Months Ended August 31,
	2012		2013
	Available For Sale Securities		Available For Sale Securities		Derivative Instruments
Beginning Balance	$	160	$	6,489	$	107
Purchases	3,989		250		—
Unrealized gains in other comprehensive income	—		—		(48		)
Ending Balance	$	4,149	$	6,739	$	59

Non-Recurring Fair Value Measurements

The Company has certain assets that are measured at fair value on a non-recurring basis under circumstances and events that include those described in Note 3, Intangible Assets and Goodwill, and are adjusted to fair value only when the carrying values are more than the fair values. The categorization of the framework used to price the assets is considered a Level 3 measurement due to the subjective nature of the unobservable inputs used to determine the fair value (see Note 3 for more discussion).

Fair Value of Other Financial Instruments

The estimated fair value of financial instruments is determined using the best available market information and appropriate valuation methodologies. Considerable judgment is necessary, however, in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange, or the value that ultimately will be realized upon maturity or disposition. The use of different market assumptions may have a material effect on the estimated fair value amounts.

The following methods and assumptions were used to estimate the fair value of financial instruments:

- Cash and cash equivalents, accounts receivable and accounts payable, including accrued liabilities: The carrying amount of these assets and liabilities approximates fair value because of the short maturity of these instruments.

- Long-term debt: The Company’s long-term debt is not actively traded and is considered a level 3 measurement. The Company believes the current carrying value of its long-term debt approximates its fair value.

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Long-term Debt

6 Months Ended

Aug. 31, 2013

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt

Long-term debt was comprised of the following at February 28, 2013 and August 31, 2013:

	As of February 28, 2013			As of August 31, 2013
2012 Credit Agreement debt :
Revolver	$	5,000		$	5,000
Term Loan	62,000			58,000
Total 2012 Credit Agreement debt	67,000			63,000
98.7FM nonrecourse debt	79,068			77,053
Current maturities	(12,126		)	(12,331		)
Unamortized original issue discount	(2,448		)	(2,192		)
Total long-term debt	$	131,494		$	125,530

2012 Credit Agreement Debt and Related Amendment

On December 28, 2012, Emmis Operating Company (“EOC”), a wholly owned subsidiary of Emmis, entered into a credit facility (the “2012 Credit Agreement”) to provide for total borrowings of up to $100 million, including (i) an $80 million term loan and (ii) a $20 million revolver, of which $5 million may be used for letters of credit.

A portion of the proceeds under the 2012 Credit Agreement were used to repay (i) EOC’s indebtedness under and terminate the 2006 Credit Agreement, for which Bank of America, N.A. acted as administrative agent and (ii) the Notes issued under the Note Purchase Agreement dated as of November 11, 2011 between Emmis Communications Corporation, as Issuer, and Zell Credit Opportunities Master Fund, L.P., as Purchaser, as amended, (“Senior Unsecured Notes”).

In addition to repaying in full the 2006 Credit Agreement and the Senior Unsecured Notes, the proceeds of the borrowings under the 2012 Credit Agreement were used for working capital needs and other general corporate purposes of Emmis, and certain other transactions permitted under the 2012 Credit Agreement.

All outstanding amounts under the 2012 Credit Agreement bear interest, at the option of EOC, at a rate equal to the Eurodollar Rate or an alternative base rate (as defined in the 2012 Credit Agreement) plus a margin. The margin over the Eurodollar Rate or the alternative base rate varies (ranging from 2.50% to 5.00%), depending on Emmis’ ratio of consolidated total debt to consolidated EBITDA, as defined in the agreement. Interest is due on a calendar month basis under the alternative base rate and at least every three months under the Eurodollar Rate. Beginning 60 days after closing, the 2012 Credit Agreement required Emmis to maintain fixed interest rates, for at least one year, on a minimum of 50% of its total outstanding debt, as defined. See Note 7 for more discussion of our interest rate swap agreement.

The term loan and revolver both mature on December 28, 2017. Beginning on April 1, 2013, the borrowings under the term loan are payable in quarterly installments equal to 2.50% of the original balance of the term loan, with the remaining balance payable December 28, 2017. Proceeds from raising additional equity, issuing additional subordinated debt or from asset sales, as well as excess cash flow, subject to certain exceptions, are required to be used to repay amounts outstanding under the 2012 Credit Agreement.

Approximately $0.5 million of transaction fees related to the 2012 Credit Agreement were capitalized and are being amortized over the life of the 2012 Credit Agreement. These deferred debt costs are included in other assets, net in the condensed consolidated balance sheets. The 2012 Credit Agreement is carried on our condensed consolidated balance sheets net of an original issue discount. The original issue discount, which was $2.5 million as of the issuance of the debt on December 28, 2012 and $2.2 million as of August 31, 2013, is being amortized as additional interest expense over the life of the 2012 Credit Agreement.

Borrowing under the 2012 Credit Agreement depends upon our continued compliance with certain operating covenants and financial ratios, including leverage and fixed charge coverage as specifically defined. The operating covenants and other restrictions with which we must comply include, among others, restrictions on additional indebtedness, incurrence of liens, engaging in businesses other than our primary business, paying certain dividends, redeeming or repurchasing capital stock of Emmis, acquisitions and asset sales. No default or event of default has occurred or is continuing. The 2012 Credit Agreement provides that an event of default will occur if there is a “change in control” of Emmis, as defined. The payment of principal, premium and interest under the 2012 Credit Agreement is fully and unconditionally guaranteed, jointly and severally, by ECC and most of its existing wholly-owned domestic subsidiaries. Substantially all of Emmis’ assets, including the stock of most of Emmis’ wholly-owned, domestic subsidiaries are pledged to secure the 2012 Credit Agreement.

On August 9, 2013, Emmis entered into the First Amendment to Credit Agreement, Security Agreement and Subsidiary Guarantee (“First Amendment”) which allowed for the formation of NextRadio LLC, a wholly-owned subsidiary of Emmis, as an excluded subsidiary under the Credit Agreement and facilitated the transactions contemplated by the agreement with Sprint dated August 9, 2013 (see Note 5). No financial covenants were impacted by the First Amendment and total costs were less than $0.1 million.

We were in compliance with all financial and non-financial covenants as of August 31, 2013. Our Senior Leverage Ratio, Total Leverage Ratio and Minimum Fixed Charge Coverage Ratio (each as defined in the 2012 Credit Agreement) requirements and actual amounts as of August 31, 2013 were as follows:

	As of August 31, 2013
	Covenant Requirement	Actual Results
Maximum Senior Leverage Ratio	4.00 : 1.00	3.12 : 1.00
Maximum Total Leverage Ratio	4.75 : 1.00	3.12 : 1.00
Minimum Fixed Charge Coverage Ratio	1.25 : 1.00	1.42 : 1.00

98.7FM Nonrecourse Debt

On May 30, 2012, the Company, through wholly-owned, newly-created subsidiaries, issued $82.2 million of nonrecourse notes. Teachers Insurance and Annuity Association of America (“TIAA”), through a participation agreement with Wells Fargo Bank Northwest, National Association (“Wells Fargo”), is entitled to receive payments made on the notes. The notes are obligations only of the newly-created subsidiaries, are non-recourse to the rest of the Company’s subsidiaries and are secured by the assets of the newly-created subsidiaries, including the payments made to the newly-created subsidiary related to the 98.7FM LMA, which are guaranteed by Disney Enterprises, Inc. The notes bear interest at 4.1%.

Based on amounts outstanding at August 31, 2013, mandatory principal payments of long-term debt for the next five years and thereafter are summarized below:

	2012 Credit Agreement
Year Ended	Revolver		Term Loan		98.7FM Debt		Total
February 28 (29),	Amortization		Amortization		Amortization		Amortization
2014	$	—	$	4,000	$	2,111	$	6,111
2015	—		8,000		4,541		12,541
2016	—		8,000		4,990		12,990
2017	—		8,000		5,453		13,453
2018	5,000		30,000		6,039		41,039
Thereafter	—		—		53,919		53,919
Total	$	5,000	$	58,000	$	77,053	$	140,053

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) In Thousands, except Share data	Total		Class A Common Stock	Class B Common Stock	Series A preferred stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Noncontrolling Interests
Beginning Balance at Feb. 28, 2013	$ 37,099		$ 359	$ 47	$ 9	$ 578,555	$ (588,836)	$ (118)	$ 47,083
Beginning Balance (In shares) at Feb. 28, 2013			35,907,925	4,722,684	937,641
Net income	8,882						6,047		2,835
Issuance of Common Stock to employees and officers	1,181		7			1,174
Issuance of Common Stock to employees and officers (In shares)			711,727
Exercise of stock options	126		2			124
Exercise of stock options (In shares)	169,500	[1]	174,500
Payments of dividends and distributions to noncontrolling interests	(1,816)								(1,816)
Purchase of preferred stock	(107)					(107)
Purchase of preferred stock (In shares)					(8,650)
Change in value of derivative instrument	48							48
Cumulative translation adjustment	(8)							11	(19)
Ending Balance at Aug. 31, 2013	$ 45,405		$ 368	$ 47	$ 9	$ 579,746	$ (582,789)	$ (59)	$ 48,083
Ending Balance (In Shares) at Aug. 31, 2013			36,794,152	4,722,684	928,991

[1] The Company did not record an income tax benefit related to option exercises in the six months ended August 31, 2012 and 2013.

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Effect of Derivative Financial Instruments on Consolidated Statement of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Aug. 31, 2013	Aug. 31, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on derivative (effective portion)	$ 27	$ 93
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(23)	(45)
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Interest Rate Swap Agreements
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on derivative (effective portion)	27	93
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Interest expense	Interest expense
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	$ (23)	$ (45)
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	N/A	N/A

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Share Based Payments Assumptions used to Calculate Fair Value of Options on Date of Grant (Detail)	6 Months Ended
	Aug. 31, 2013	Aug. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-Free Interest Rate:		0.70%
Expected Dividend Yield:	0.00%	0.00%
Expected Life (Years):	4 years 3 months 18 days	4 years 2 months 12 days
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-Free Interest Rate:	0.60%
Expected Volatility:	108.90%	129.50%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-Free Interest Rate:	1.30%
Expected Volatility:	115.90%	131.40%

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Aug. 31, 2013

Accounting Policies [Abstract]

Preparation of Interim Financial Statements

Preparation of Interim Financial Statements

Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), the condensed consolidated interim financial statements included herein have been prepared, without audit, by Emmis Communications Corporation (“ECC”) and its subsidiaries (collectively, “our,” “us,” “we,” “Emmis” or the “Company”). As permitted under the applicable rules and regulations of the SEC, certain information and footnote disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, Emmis believes that the disclosures are adequate to make the information presented not misleading. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in the Annual Report for Emmis filed on Form 10-K for the year ended February 28, 2013. The Company’s results are subject to seasonal fluctuations. Therefore, results shown on an interim basis are not necessarily indicative of results for a full year.

In the opinion of Emmis, the accompanying condensed consolidated interim financial statements contain all material adjustments (consisting only of normal recurring adjustments) necessary to present fairly the consolidated financial position of Emmis at August 31, 2013, and the results of its operations for the three-month and six-month periods ended August 31, 2012 and 2013, and cash flows for the six-month periods ended August 31, 2012 and 2013.

Basic and Diluted Net (Loss) Income Per Common Share

Basic and Diluted Net (Loss) Income Per Common Share

Basic net (loss) income per common share is computed by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net (loss) income per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Potentially dilutive securities at August 31, 2012 and 2013 consisted of stock options, restricted stock awards and the 6.25% Series A convertible preferred stock (the “Preferred Stock”).

Discontinued Operations-Summary of results

Discontinued Operations – Summary of results

The results of operations and related disposal costs, gains and losses for business units that the Company has sold are classified in discontinued operations for all periods presented.

A summary of the income from discontinued operations is presented below:

	Three Months Ended August 31,					Six Months Ended August 31,
	2012			2013		2012			2013
Income (loss) from operations:
KXOS-FM (Radio)	$	32,675		$	—	$	32,534		$	—
Emmis Interactive Inc. (Radio)	(1,466		)	—		(2,193		)	—
Slovakia Radio Network (Radio)	756			—		763			—
Bulgaria Radio Network (Radio)	(146		)	—		(453		)	—
Sampler Publications (Publishing)	(202		)	—		(86		)	—
Total	31,617			—		30,565			—
Benefit from income taxes	(7,159		)	—		(5,852		)	—
Total income from operations, net of tax	$	38,776		$	—	$	36,417		$	—

Discontinued Operation – KXOS-FM

On August 23, 2012, Emmis completed the sale of KXOS-FM in Los Angeles for $85.5 million in cash. In connection with the sale, Emmis recorded a gain on sale of assets of approximately $32.8 million. KXOS-FM had previously been operating pursuant to a local programming and marketing agreement, which is discussed in more detail below.

In accordance with the provisions of Accounting Standards Codification (“ASC”) 205-20-45, the Company allocated interest expense associated with the portion of term loans required to be repaid as a result of the sale of KXOS-FM to its operations for all periods presented.

The operations of KXOS-FM had historically been included in the radio segment. The following table summarizes certain operating results of KXOS-FM for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,581	$	—	$	3,331	$	—
Station operating expenses, excluding depreciation and amortization expense	7		—		27		—
Depreciation and amortization expense	65		—		169		—
Interest expense	1,591		—		3,358		—
Gain on sale of station	32,757		—		32,757		—
Benefit from income taxes	7,572		—		6,476		—

Discontinued Operation — Emmis Interactive

On October 31, 2012, Emmis completed the sale of Emmis Interactive Inc., a subsidiary of Emmis that provided a content management system, data analytic tools and related services, to Marketron Broadcast Solutions, LLC (“Marketron”) for no net proceeds. The sale of Emmis Interactive Inc. allowed Emmis to mitigate expected future operating losses and more clearly focus on core radio and publishing operating strategies. Marketron had assumed operating control of Emmis Interactive, Inc., on October 4, 2012. In connection with the sale, Emmis recorded a loss on sale of assets of approximately $0.7 million, which was primarily related to severance for former employees.

The operations of Emmis Interactive Inc. had historically been included in the radio segment. The following table summarizes certain operating results of Emmis Interactive Inc. for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,144	$	—	$	2,383	$	—
Station operating expenses, excluding depreciation and amortization expense	1,754		—		3,716		—
Depreciation and amortization	120		—		257		—
Impairment loss	737		—		737		—
Other income	1		—		134		—

Discontinued Operation – Country Sampler, Smart Retailer and related publications

On October 1, 2012, Emmis completed the sale of Country Sampler magazine, Smart Retailer magazine, and related publications (altogether the “Sampler Publications”) and certain real estate used in their operations to subsidiaries of DRG Holdings, LLC. Emmis believed the sale of the Sampler Publications, which were niche crafting publications, would enable it to more clearly focus on its core city and regional publications. Emmis received gross proceeds from the sale of $8.7 million, incurred approximately $0.2 million in transaction expenses and tax obligations, and used the remaining $8.5 million to repay term loans under the Company’s 2006 Credit Agreement. In connection with the sale, Emmis recorded a gain on sale of assets of approximately $0.7 million.

In accordance with the provisions of Accounting Standards Codification (“ASC”) 205-20-45, the Company allocated interest expense associated with the estimate of term loans required to be repaid as a result of the sale of the Sampler Publications to its operations for all periods presented.

The operations of the Sampler Publications had historically been included in the publishing segment. The following table summarizes certain operating results of the Sampler Publications for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,620	$	—	$	3,939	$	—
Station operating expenses, excluding depreciation and amortization expense	1,612		—		3,604		—
Depreciation and amortization	22		—		44		—
Interest expense	188		—		377		—
Provision for income taxes	130		—		259		—

Discontinued Operation –Slovakia Radio

On February 25, 2013, Emmis completed the sale of its Slovakian radio network to Bauer Ausland 1 GMBH for $21.2 million in cash. Emmis believed the sale of its international radio properties would better enable the Company to focus its efforts on its domestic radio stations. In connection with the sale, Emmis recorded a gain on sale of assets of approximately $14.8 million.

The operations of our Slovakian radio network had historically been included in the radio segment. The following table summarizes certain operating results of our Slovakian radio network for all periods presented:

	Three Months Ended August 31,					Six Months Ended August 31,
	2012			2013		2012		2013
Net revenues	$	3,172		$	—	$	5,449	$	—
Station operating expenses, excluding depreciation and amortization expense	1,863			—		3,528		—
Depreciation and amortization	174			—		354		—
Interest expense	399			—		799		—
Other (income) expense, net	(20		)	—		5		—
Provision for income taxes	283			—		365		—

Discontinued Operation – Bulgaria Radio

On January 3, 2013, Emmis completed the sale of its Bulgarian radio network to Reflex Media EEOD for $1.7 million in cash. Emmis believed the sale of its international radio properties would better enable the Company to focus its efforts on its domestic radio stations. In connection with the sale, Emmis recorded a loss on sale of assets of approximately $1.3 million. The loss on disposal primarily resulted from the reclassification of accumulated currency translation adjustments.

The operations of our Bulgarian radio network had historically been included in the radio segment. The following table summarizes certain operating results of our Bulgarian radio network for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	324	$	—	$	558	$	—
Station operating expenses, excluding depreciation and amortization expense	442		—		871		—
Depreciation and amortization	27		—		137		—
Other expense, net	1		—		3		—

Summary of Assets and Liabilities of Discontinued Operations:

	As of February 28, 2013		As of  August 31, 2013
Current assets:
Cash and cash equivalents	$	579	$	465
Accounts receivable, net	128		—
Prepaid expenses	17		—
Other	38		—
Total current assets	$	762	$	465
Current liabilities:
Accounts payable and accrued expenses	$	2,169	$	90
Total current liabilities	$	2,169	$	90

Local Programming and Marketing Agreement Fees

Local Programming and Marketing Agreement Fees

The Company from time to time enters into local programming and marketing agreements (“LMAs”) in connection with acquisitions or dispositions of radio stations, typically pending regulatory approval of transfer of the FCC licenses. In such cases where the Company enters into an LMA in connection with a disposition, the Company generally receives specified periodic payments in exchange for the counterparty receiving the right to program and sell advertising for a specified portion of the station’s inventory of broadcast time. Nevertheless, as the holder of the FCC license, the Company retains control and responsibility for the operation of the station, including responsibility over all programming broadcast on the station.

On April 26, 2012, Emmis entered into an LMA with a subsidiary of Disney Enterprises, Inc. for 98.7FM in New York (formerly WRKS-FM and now WEPN-FM, hereinafter referred to as “98.7FM”). The LMA for this station started on April 30, 2012 and will continue until August 31, 2024. During the three months ended August 31, 2012 and 2013, Emmis recognized $2.6 million and $2.6 million, respectively, of LMA fees, recorded as net revenues in the accompanying condensed consolidated statements of operations, related to the 98.7FM LMA. During the six months ended August 31, 2012 and 2013, Emmis recognized LMA fee revenue of $3.4 million and $5.2 million, respectively.

Grupo Radio Centro, S.A.B. de C.V (“GRC”), a Mexican broadcasting company, provided programming and sold advertising for KXOS-FM in Los Angeles pursuant to an LMA from April 2009 until affiliates of GRC consummated the purchase of KXOS-FM on August 23, 2012. Emmis recognized $1.6 million and $3.3 million of LMA fees, recorded as income from discontinued operations, net of tax, related to the KXOS-FM LMA during the three months and six months ended August 31, 2012, respectively.

Valuation of Indefinite-lived Broadcasting Licenses

Valuation of Indefinite-lived Broadcasting Licenses

In accordance with ASC Topic 350, Intangibles—Goodwill and Other, the Company’s Federal Communications Commission (“FCC”) licenses are considered indefinite-lived intangibles. These assets, which the Company determined were its only indefinite-lived intangibles, are not subject to amortization, but are tested for impairment at least annually as discussed below.

The carrying amounts of the Company’s FCC licenses were $150.5 million as of February 28, 2013 and $150.6 million as of August 31, 2013. Pursuant to Emmis’ accounting policy, stations in a geographic market cluster are considered a single unit of accounting, provided that they are not being operated under an LMA by another broadcaster. As of February 29, 2012, our two stations in New York were considered a single unit of accounting. In connection with the execution of the LMA discussed in Note 1, the Company separated the two New York stations into separate units of accounting. The Company performed an interim impairment test of the 98.7FM license as of May 1, 2012 which resulted in an impairment charge of $11.0 million. The carrying value of the 98.7FM license subsequent to the impairment charge is $60.5 million, which approximates its fair value.

The Company generally performs its annual impairment test of indefinite-lived intangibles as of December 1 of each year. When indicators of impairment are present, as was the case with 98.7FM as noted above, the Company will perform an interim impairment test. These impairment tests may result in impairment charges in future periods.

Fair value of our FCC licenses is estimated to be the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. To determine the fair value of our FCC licenses, the Company uses an income valuation method when it performs its impairment tests. Under this method, the Company projects cash flows that would be generated by each of its units of accounting assuming the unit of accounting was commencing operations in its respective market at the beginning of the valuation period. This cash flow stream is discounted to arrive at a value for the FCC license. The Company assumes the competitive situation that exists in each market remains unchanged, with the exception that its unit of accounting commenced operations at the beginning of the valuation period. In doing so, the Company extracts the value of going concern and any other assets acquired, and strictly values the FCC license. Major assumptions involved in this analysis include market revenue, market revenue growth rates, unit of accounting audience share, unit of accounting revenue share and discount rate. Each of these assumptions may change in the future based upon changes in general economic conditions, audience behavior, consummated transactions, and numerous other variables that may be beyond our control. When evaluating our radio broadcasting licenses for impairment, the testing is performed at the unit of accounting level as determined by ASC Topic 350-30-35. In our case, radio stations in a geographic market cluster are considered a single unit of accounting, provided that they are not being operated under an LMA.

Valuation of Goodwill

Valuation of Goodwill

ASC Topic 350-20-35 requires the Company to test goodwill for impairment at least annually using a two-step process. The first step is a screen for potential impairment, while the second step measures the amount of impairment. The Company conducts the two-step impairment test on December 1 of each fiscal year, unless indications of impairment exist during an interim period. During the quarter ended August 31, 2013, no new or additional impairment indicators emerged; hence, no interim impairment testing was warranted. When assessing its goodwill for impairment, the Company uses an enterprise valuation approach to determine the fair value of each of the Company’s reporting units (radio stations grouped by market and magazines on an individual basis). Management determines enterprise value for each of its reporting units by multiplying the two-year average station operating income generated by each reporting unit (current year based on actual results and the next year based on budgeted results) by an estimated market multiple. The Company uses a blended station operating income trading multiple of publicly traded radio operators as a benchmark for the multiple it applies to its radio reporting units. There are no publicly traded publishing companies that are focused predominantly on city and regional magazines as is our publishing segment. Therefore, the market multiple used as a benchmark for our publishing reporting units has been based on recently completed transactions within the city and regional magazine industry or analyst reports that include valuations of magazine divisions within publicly traded media conglomerates. Management believes this methodology for valuing radio and publishing properties is a common approach and believes that the multiples used in the valuation are reasonable given our peer comparisons and recent market transactions. To corroborate the step-one reporting unit fair values determined using the market approach described above, management also uses an income approach, which is a discounted cash flow method to determine the fair value of the reporting unit.

This enterprise valuation is compared to the carrying value of the reporting unit for the first step of the goodwill impairment test. If the reporting unit exhibits impairment, the Company proceeds to the second step of the goodwill impairment test. For its step-two testing, the enterprise value is allocated among the tangible assets, indefinite-lived intangible assets (FCC licenses valued using a direct-method valuation approach) and unrecognized intangible assets, such as customer lists, with the residual amount representing the implied fair value of the goodwill. To the extent the carrying amount of the goodwill exceeds the implied fair value of the goodwill, the difference is recorded as an impairment charge in the statement of operations.

As of February 28, 2013 and August 31, 2013, the carrying amount of the Company’s goodwill was $12.6 million. Approximately $4.6 million of our goodwill was attributable to our radio division as of February 28, 2013 and August 31, 2013. Approximately $8.0 million of our goodwill was attributable to our publishing division as of February 28, 2013 and August 31, 2013.

Definite-lived intangibles

Definite-lived intangibles

The Company’s definite-lived intangible assets consist of trademarks which are amortized over the period of time the assets are expected to contribute directly or indirectly to the Company’s future cash flows. The trademarks have a weighted average remaining useful life of 11.9 years. Amortization expense related to trademarks is expected to be less than $0.1 million in each of the next five successive fiscal years.

Fair Value Measurements and Disclosure

Available for sale securities — Emmis’ available for sale securities are investments in preferred stock of companies that are not traded in active markets. The investments are recorded at fair value, which is generally estimated using significant unobservable market parameters, resulting in a level 3 categorization. At February 28, 2013 and August 31, 2013, the investments are carried at their cost basis, which management believes approximates fair value, due to the recent purchase of these investments and recent third party transactions that corroborate Emmis’ carrying value approximates current fair value.

Interest rate swap agreement — Emmis’ derivative financial instruments consisted solely of an interest rate cash flow hedge in which the Company pays a fixed rate and receives a variable interest rate that was observable based upon a forward interest rate curve and is therefore considered a level 2 measurement.

Non-Recurring Fair Value Measurements

The Company has certain assets that are measured at fair value on a non-recurring basis under circumstances and events that include those described in Note 3, Intangible Assets and Goodwill, and are adjusted to fair value only when the carrying values are more than the fair values. The categorization of the framework used to price the assets is considered a Level 3 measurement due to the subjective nature of the unobservable inputs used to determine the fair value (see Note 3 for more discussion).

Fair Value of Other Financial Instruments

The estimated fair value of financial instruments is determined using the best available market information and appropriate valuation methodologies. Considerable judgment is necessary, however, in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange, or the value that ultimately will be realized upon maturity or disposition. The use of different market assumptions may have a material effect on the estimated fair value amounts.

The following methods and assumptions were used to estimate the fair value of financial instruments:

- Cash and cash equivalents, accounts receivable and accounts payable, including accrued liabilities: The carrying amount of these assets and liabilities approximates fair value because of the short maturity of these instruments.

- Long-term debt: The Company’s long-term debt is not actively traded and is considered a level 3 measurement. The Company believes the current carrying value of its long-term debt approximates its fair value.

As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).

Recurring Fair Value Measurements

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of February 28, 2013 and August 31, 2013. The financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

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Derivative Instruments and Hedging Activities

6 Months Ended

Aug. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage interest rate exposure with the following objectives:

• manage current and forecasted interest rate risk while maintaining optimal financial flexibility and solvency

• proactively manage the Company’s cost of capital to ensure the Company can effectively manage operations and execute its business strategy, thereby maintaining a competitive advantage and enhancing shareholder value

• comply with covenant requirements in the Company’s credit facility

Cash Flow Hedges of Interest Rate Risk

The Company utilizes interest rate derivatives to add stability to cash payments for interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Under the terms of its 2012 Credit Agreement, the Company is required to fix or cap the interest rate on at least 50% of its Term Loan exposure for a two-year period ending December 28, 2014. The requirement to fix or cap interest rates can be reduced to a one-year period provided the Company’s Senior Leverage Ratio (as defined in the 2012 Credit Agreement) is at or under 2.50:1.00 as of May 31, 2014.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company’s interest rate derivatives are used to hedge the interest payment cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not record any hedge ineffectiveness in earnings during the three months and six months ended August 31, 2012 and 2013. Amounts reported in accumulated other comprehensive loss related to derivatives are reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During fiscal 2014, the Company estimates that less than $0.1 million will be reclassified as an increase to interest expense.

In February 2013, the Company entered into a two-year interest rate exchange agreement (a “Swap”), whereby the Company pays a fixed rate of 0.42% on $40 million of notional principal to Fifth Third Bank, and Fifth Third Bank pays to the Company a variable rate on the same amount of notional principal based on the one-month London Interbank Offered Rate (“LIBOR”). This agreement was the Company’s only interest rate derivative designated as a cash flow hedge of interest rate risk outstanding as of August 31, 2013.

The Company does not generally use derivatives for trading or speculative purposes.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet as of February 28, 2013 and August 31, 2013. The accumulated other comprehensive loss balance related to our derivative instruments at August 31, 2013 was less than $0.1 million. The fair value of the derivative instruments was estimated by obtaining quotations from the financial institution that was the counterparty to the instrument. The fair value was an estimate of the net amount that the Company would have been required to pay on August 31, 2013, if the agreement was transferred to another party or canceled by the Company, as further adjusted by a credit adjustment required by ASC Topic 820, Fair Value Measurements and Disclosures, as discussed below. For the three months and six months ended August 31, 2013, this credit adjustment was immaterial.

	Tabular Disclosure of Fair Values of Derivative Instruments Liability Derivatives
	As of February 28, 2013			As of August 31, 2013
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest Rate Swap Agreements (Long- Term Portion)	Other Noncurrent Liabilities	107		Other Noncurrent Liabilities	59
Total derivatives designated as hedging instruments		$	107		$	59

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months and six months ended August 31, 2012 and 2013.

	For the Six Months Ended August 31,
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2013			2012		2013				2012		2013
Interest Rate Swap
Agreements	$	—	$	93	Interest expense	$	—	$	(45	)	N/A	$	—	$	—
Total	$	—	$	93		$	—	$	(45	)		$	—	$	—
	For the Three Months Ended August 31,
Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)				Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2013			2012		2013				2012		2013
Interest Rate Swap
Agreements	$	—	$	27	Interest expense	$	—	$	(23	)	N/A	$	—	$	—
Total	$	—	$	27		$	—	$	(23	)		$	—	$	—

Credit-risk-related Contingent Features

The Company manages its counterparty risk by entering into derivative instruments with financial institutions where it believes the risk of credit loss resulting from nonperformance by the counterparty is low. As discussed above, the Company’s counterparty to its interest rate swap is Fifth Third Bank.

In accordance with ASC Topic 820, the Company makes a Credit Value Adjustment (CVA) to adjust the valuation of a derivative to account for our own credit risk with respect to all derivative liability positions. The CVA is accounted for as a decrease to the derivative position with the corresponding increase or decrease reflected in other comprehensive income (loss) for derivatives designated as cash flow hedges. The CVA also accounts for nonperformance risk of our counterparties in the fair value measurement of all derivative asset positions, when appropriate. As of August 31, 2013, this CVA was immaterial to the fair value of our derivative instrument.

The Company’s interest rate swap agreement with Fifth Third Bank incorporates the loan covenant provisions of the Company’s 2012 Credit Agreement. Fifth Third Bank is a lender under the Company’s 2012 Credit Agreement. Failure to comply with the loan covenant provisions of the 2012 Credit Agreement could result in the Company being in default of its obligations under the interest rate swap agreement.

As of August 31, 2013, the Company has not posted any collateral related to the interest rate swap agreement.

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Long-term Debt (Tables)

6 Months Ended

Aug. 31, 2013

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt was comprised of the following at February 28, 2013 and August 31, 2013:

	As of February 28, 2013			As of August 31, 2013
2012 Credit Agreement debt :
Revolver	$	5,000		$	5,000
Term Loan	62,000			58,000
Total 2012 Credit Agreement debt	67,000			63,000
98.7FM nonrecourse debt	79,068			77,053
Current maturities	(12,126		)	(12,331		)
Unamortized original issue discount	(2,448		)	(2,192		)
Total long-term debt	$	131,494		$	125,530

Leverage Ratio Requirements

We were in compliance with all financial and non-financial covenants as of August 31, 2013. Our Senior Leverage Ratio, Total Leverage Ratio and Minimum Fixed Charge Coverage Ratio (each as defined in the 2012 Credit Agreement) requirements and actual amounts as of August 31, 2013 were as follows:

	As of August 31, 2013
	Covenant Requirement	Actual Results
Maximum Senior Leverage Ratio	4.00 : 1.00	3.12 : 1.00
Maximum Total Leverage Ratio	4.75 : 1.00	3.12 : 1.00
Minimum Fixed Charge Coverage Ratio	1.25 : 1.00	1.42 : 1.00

Summary of Long-Term Debt Principal Repayments

Based on amounts outstanding at August 31, 2013, mandatory principal payments of long-term debt for the next five years and thereafter are summarized below:

	2012 Credit Agreement
Year Ended	Revolver		Term Loan		98.7FM Debt		Total
February 28 (29),	Amortization		Amortization		Amortization		Amortization
2014	$	—	$	4,000	$	2,111	$	6,111
2015	—		8,000		4,541		12,541
2016	—		8,000		4,990		12,990
2017	—		8,000		5,453		13,453
2018	5,000		30,000		6,039		41,039
Thereafter	—		—		53,919		53,919
Total	$	5,000	$	58,000	$	77,053	$	140,053

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Aug. 31, 2013

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Calculation of Basic and Diluted Net (loss) Income Per Share from Continuing Operations

The following table sets forth the calculation of basic and diluted net (loss) income per share from continuing operations:

	Six Months Ended
	August 31, 2012							August 31, 2013
	Net Loss			Shares	Net Loss Per Share			Net Income			Shares	Net Income Per Share
	(amounts in 000’s, except per share data)
Basic net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(3,367	)	38,819	$	(0.09	)	$	6,372		41,313	$	0.15
Impact of equity awards	—			—	—			—			2,770	—
Impact of conversion of preferred stock into common stock	—			—	—			(325		)	2,278	—
Diluted net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(3,367	)	38,819	$	(0.09	)	$	6,047		46,361	$	0.13

	Three Months Ended
	August 31, 2012							August 31, 2013
	Net Loss			Shares	Net Loss Per Share			Net Income			Shares	Net Income Per Share
	(amounts in 000’s, except per share data)
Basic net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(695	)	38,859	$	(0.02	)	$	2,647		41,451	$	0.06
Impact of equity awards	—			—	—			—			3,217	—
Impact of conversion of preferred stock into common stock	—			—	—			(76		)	2,269	—
Diluted net (loss) income per common share:
Net (loss) income available to common shareholders from continuing operations	$	(695	)	38,859	$	(0.02	)	$	2,571		46,937	$	0.05

Shares Excluded from Calculation as Effect of Conversion into Shares of Common Stock would be Antidilutive

Shares excluded from the calculation as the effect of their conversion into shares of our common stock would be antidilutive were as follows:

	Three Months Ended August 31,		Six Months Ended August 31,
	2012	2013	2012	2013
	(shares in 000’s )
6.25% Series A convertible preferred stock	2,288	—	2,288	—
Stock options and restricted stock awards	7,274	1,929	6,898	1,980
Antidilutive common share equivalents	9,562	1,929	9,186	1,980

Summary of Income from Discontinued Operations

A summary of the income from discontinued operations is presented below:

	Three Months Ended August 31,					Six Months Ended August 31,
	2012			2013		2012			2013
Income (loss) from operations:
KXOS-FM (Radio)	$	32,675		$	—	$	32,534		$	—
Emmis Interactive Inc. (Radio)	(1,466		)	—		(2,193		)	—
Slovakia Radio Network (Radio)	756			—		763			—
Bulgaria Radio Network (Radio)	(146		)	—		(453		)	—
Sampler Publications (Publishing)	(202		)	—		(86		)	—
Total	31,617			—		30,565			—
Benefit from income taxes	(7,159		)	—		(5,852		)	—
Total income from operations, net of tax	$	38,776		$	—	$	36,417		$	—

Summary of Assets and Liabilities of Discontinued Operations

Summary of Assets and Liabilities of Discontinued Operations:

	As of February 28, 2013		As of  August 31, 2013
Current assets:
Cash and cash equivalents	$	579	$	465
Accounts receivable, net	128		—
Prepaid expenses	17		—
Other	38		—
Total current assets	$	762	$	465
Current liabilities:
Accounts payable and accrued expenses	$	2,169	$	90
Total current liabilities	$	2,169	$	90

KXOS-FM (Radio)

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results of Discontinued Operations

The operations of KXOS-FM had historically been included in the radio segment. The following table summarizes certain operating results of KXOS-FM for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,581	$	—	$	3,331	$	—
Station operating expenses, excluding depreciation and amortization expense	7		—		27		—
Depreciation and amortization expense	65		—		169		—
Interest expense	1,591		—		3,358		—
Gain on sale of station	32,757		—		32,757		—
Benefit from income taxes	7,572		—		6,476		—

Emmis Interactive Inc. (Radio)

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results of Discontinued Operations

The operations of Emmis Interactive Inc. had historically been included in the radio segment. The following table summarizes certain operating results of Emmis Interactive Inc. for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,144	$	—	$	2,383	$	—
Station operating expenses, excluding depreciation and amortization expense	1,754		—		3,716		—
Depreciation and amortization	120		—		257		—
Impairment loss	737		—		737		—
Other income	1		—		134		—

Sampler Publications

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results of Discontinued Operations

The operations of the Sampler Publications had historically been included in the publishing segment. The following table summarizes certain operating results of the Sampler Publications for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	1,620	$	—	$	3,939	$	—
Station operating expenses, excluding depreciation and amortization expense	1,612		—		3,604		—
Depreciation and amortization	22		—		44		—
Interest expense	188		—		377		—
Provision for income taxes	130		—		259		—

Slovakia Radio Network (Radio)

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results of Discontinued Operations

The operations of our Slovakian radio network had historically been included in the radio segment. The following table summarizes certain operating results of our Slovakian radio network for all periods presented:

	Three Months Ended August 31,					Six Months Ended August 31,
	2012			2013		2012		2013
Net revenues	$	3,172		$	—	$	5,449	$	—
Station operating expenses, excluding depreciation and amortization expense	1,863			—		3,528		—
Depreciation and amortization	174			—		354		—
Interest expense	399			—		799		—
Other (income) expense, net	(20		)	—		5		—
Provision for income taxes	283			—		365		—

Bulgaria Radio Network (Radio)

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating Results of Discontinued Operations

The operations of our Bulgarian radio network had historically been included in the radio segment. The following table summarizes certain operating results of our Bulgarian radio network for all periods presented:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Net revenues	$	324	$	—	$	558	$	—
Station operating expenses, excluding depreciation and amortization expense	442		—		871		—
Depreciation and amortization	27		—		137		—
Other expense, net	1		—		3		—

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Document and Entity Information	6 Months Ended
	Aug. 31, 2013	Oct. 03, 2013 Class A Common Stock	Oct. 03, 2013 Class B Common Stock	Oct. 03, 2013 Class C Common Stock
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2013
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Trading Symbol	EMMS
Entity Registrant Name	EMMIS COMMUNICATIONS CORP
Entity Central Index Key	0000783005
Current Fiscal Year End Date	--02-28
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		37,087,493	4,697,684	0

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Share Based Payments (Tables)

6 Months Ended

Aug. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Assumptions used to Calculate Fair Value of Options on Date of Grant

The following assumptions were used to calculate the fair value of the Company’s options on the date of grant during the six months ended August 31, 2012 and 2013:

	Six Months Ended August 31,
	2012	2013
Risk-Free Interest Rate:	0.7%	0.6% – 1.3%
Expected Dividend Yield:	0%	0%
Expected Life (Years):	4.2	4.3
Expected Volatility:	129.5% – 131.4%	108.9% – 115.9%

Summary of Stock Options Outstanding and Activity

The following table presents a summary of the Company’s stock options outstanding at August 31, 2013, and stock option activity during the six months ended August 31, 2013 (“Price” reflects the weighted average exercise price per share):

	Options	Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding, beginning of period	7,132,459	$	4.31
Granted	381,219	1.77
Exercised (1)	169,500	0.71
Forfeited	15,000	0.70
Expired	551,220	10.91
Outstanding, end of period	6,777,958	3.71		6.4	$	12,380
Exercisable, end of period	3,658,269	6.04		4.5	$	5,525

(1) The Company did not record an income tax benefit related to option exercises in the six months ended August 31, 2012 and 2013.

Summary of Nonvested Options and Changes

A summary of the Company’s nonvested options at August 31, 2013, and changes during the six months ended August 31, 2013, is presented below:

	Options	Weighted Average Grant Date Fair Value
Nonvested, beginning of period	3,188,104	$	0.76
Granted	381,219	1.36
Vested	434,634	0.98
Forfeited	15,000	0.57
Nonvested, end of period	3,119,689	0.80

Summary of Restricted Stock Grants Outstanding and Activity

The following table presents a summary of the Company’s restricted stock grants outstanding at August 31, 2013, and restricted stock activity during the six months ended August 31, 2013 (“Price” reflects the weighted average share price at the date of grant):

	Awards	Price
Grants outstanding, beginning of period	537,405	$	1.72
Granted	802,711	1.60
Vested (restriction lapsed)	286,126	1.46
Forfeited	181	1.73
Grants outstanding, end of period	1,053,809	1.70

Stock-Based Compensation Expense and Related Tax Benefits Recognized

The following table summarizes stock-based compensation expense and related tax benefits recognized by the Company in the three and six months ended August 31, 2012 and 2013:

	Three Months Ended August 31,				Six Months Ended August 31,
	2012		2013		2012		2013
Station operating expenses	$	296	$	1,213	$	447	$	1,466
Corporate expenses	269		1,206		507		1,616
Stock-based compensation expense included in operating expenses	565		2,419		954		3,082
Tax benefit	—		—		—		—
Recognized stock-based compensation expense, net of tax	$	565	$	2,419	$	954	$	3,082