OTHER COMMITMENTS AND CONTINGENCIES

a. Commitments

The Company has various commitments under the following types of material contracts: (i) operating leases; (ii) employment agreements and (iii) other contracts with annual commitments (mostly contractual services for audience measurement information) at February 28, 2018 as follows:



Year ending February 28 (29),	Operating Leases		Employment Agreements		Other Contracts		Total
2019	$	5,991	$	13,283	$	11,076	$	30,350
2020	5,898		5,365		3,769		15,032
2021	5,715		403		577		6,695
2022	5,500		373		485		6,358
2023	5,157		383		—		5,540
Thereafter	15,404		—		—		15,404
Total	$	43,665	$	19,807	$	15,907	$	79,379

Emmis leases certain office space, tower space, equipment and automobiles under operating leases expiring at various dates through March 2032. Some of the lease agreements contain renewal options and annual rental escalation clauses, as well as provisions for payment of utilities and maintenance costs. The Company recognizes escalated rents on a straight-line basis over the term of the lease agreement. Rental expense during the years ended February 2016, 2017 and 2018 was approximately $8.9 million, $8.3 million and $6.0 million, respectively. The Company recognized approximately $0.3 million, $0.3 million and less than $0.1 million of sublease income as a reduction of rent expense for the years ended February 2016, 2017, and 2018 respectively. The total minimum sublease rentals to be received in the future under noncancelable subleases as of February 28, 2018 were as follows:



Year ending February 28 (29),	Noncancelable Sublease rentals
2019	$	222
2020	228
2021	226
2022	10
2023	—
Total	$	686

b. Litigation

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

In connection with Emmis’ sale of four magazines to Hour Media on February 28, 2017, ten percent of the purchase price, or $0.65 million, was placed in escrow to secure Emmis’ post-closing indemnification obligations in the asset purchase agreement and was scheduled to be released six months after the closing of the transaction. Hour Media has claimed that Emmis breached the asset purchase agreement and will not consent to the release of the $0.65 million in escrow. Emmis filed a lawsuit against Hour Media for breach of the asset purchase agreement and Hour Media has filed a counterclaim against Emmis. Emmis believes that substantially all of Hour Media’s claims are without merit.

Emmis filed suit against Illinois National Insurance Company (“INIC”) in 2015 related to INIC’s decision to not cover Emmis’ defense costs under Emmis’ directors and officers insurance policy in a lawsuit related to the Company’s preferred stock in which Emmis was the defendant (the “Prior Litigation”). On March 21, 2018, Emmis was granted summary judgment entitling it to coverage of its defense costs in the Prior Litigation, but the amount Emmis should recover has not yet been determined and all final decisions by the U.S. District Court are subject to appeal. Emmis incurred approximately $4.1 million of costs defending the Prior Litigation, subject to a $1.0 million deductible. Emmis is seeking to recover these costs plus applicable accrued interest less the applicable deductible from INIC. However, Emmis cannot reasonably estimate the amount or timing of such recovery.