Commitment and Contingencies

12 Months Ended

Apr. 30, 2017

Commitment and Contingencies [Abstract]

Note 14 - Commitment and Contingencies

The following schedule shows the composition of rent expense for operating leases (in thousands):

	2017	2016	2015
Minimum Rental	$35,464	$37,206	$39,748
Less: Sublease Rentals	(626)	(597)	(639)
Total	$34,838	$36,609	$39,109

Future minimum payments under operating leases were $280.9 million at April 30, 2017. Annual minimum payments under these leases for fiscal years 2018 through 2022 are approximately $23.8 million, $28.8 million, $27.1 million, $24.3 million and $19.6 million, respectively. Rent expense associated with operating leases that include scheduled rent increases and tenant incentives, such as rent holidays or leasehold improvement allowances, are recorded on a straight-line basis over the term of the lease.

The Company is involved in routine litigation in the ordinary course of its business. A provision for litigation is accrued when information available to the Company indicates that it is probable a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment may be required to determine both the probability and estimates of loss. When the amount of the loss can only be estimated within a range, the most likely outcome within that range is accrued. If no amount within the range is a better estimate than any other amount, the minimum amount within the range is accrued. When uncertainties exist related to the probable outcome of litigation and/or the amount or range of loss, the Company does not record a liability, but discloses facts related to the nature of the contingency and possible losses if management considers the information to be material. Reserves for legal defense costs are recorded when management believes such future costs will be material. The accruals for loss contingencies and legal costs are reviewed regularly and may be adjusted to reflect updated information on the status of litigation and advice of legal counsel. In the opinion of management, the ultimate resolution of all pending litigation as of April 30, 2017 will not have a material effect upon the financial condition or results of operations of the Company.

Over the past few years, the Company has from time to time faced claims from photographers or agencies that the Company has used photographs without licenses or beyond licensed permissions. The Company has insurance coverage for a significant portion of such claims. The Company does not believe that its exposure to such claims either individually or in the aggregate is material.