If, instead, you use outDir.mkdirs()
(which creates the folders if they don't exist) then Emma will not complain about the line not being covered by tests.
If you wanted to be very thorough, the way you'd test your code would be to run it with the directory purposely missing and check it's created. Either delete the output folder as part of the test:
File outDir = new File("Out")
/* You will probably need something more complicated than
* this (to delete the directory's contents first). I'd
* suggest using FileUtils.deleteDirectory(dir) from
* Apache Commons-IO.
*/
outDir.delete();
// Prove that it's not there
assertFalse(outDir.exists());
createReport(...);
// Prove that it has been created
assertTrue(outDir.exists());
Or write the report into a temporary folder, if that option's available to you.