Annual report pursuant to Section 13 and 15(d)

Note B - Commitments and Facilities

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Note B - Commitments and Facilities
 12 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Leases of Lessee Disclosure [Text Block]
NOTE B – COMMITMENTS AND FACILITIES
 
Operating Leases:
The Company leases office and manufacturing facilities in Brooklyn Park, Minnesota for its ongoing operations. The lease term commenced on January 1, 2015. The Company also leases various pieces of office equipment. Certain of these leases have escalating rent payment provisions. We recognize rent expense under such leases on a straight-line basis over the term of the lease. For the years ended September 30, 2016, 2015 and 2014, total rent expense was $658,000, $630,000 and $505,000 respectively. Rent expense includes operating expenses, insurance, and related taxes.
 
As of September 30, 2016, the future minimum lease payments required under operating lease agreements are as follows:
 
Year ending September 30   Operating leases
2017   $ 442,070  
2018     373,409  
2019     382,746  
2020     392,318  
2021     402,123  
Thereafter     1,449,994  
Total minimum lease payments   $ 3,442,660  
 
Share Repurchase:
On November 13, 2014, the Company announced that its board of directors had approved a stock repurchase program under which it will purchase up to $8 million of its outstanding shares of common stock. The program does not obligate Clearfield to repurchase any particular amount of common stock during any period. The repurchase will be funded by cash on hand. The repurchase program is expected to continue indefinitely until the maximum dollar amount of shares has been repurchased or until the repurchase program is earlier modified, suspended or terminated by the board of directors. As of September 30, 2016, the Company may repurchase up to $6,817,082 of its outstanding shares of common stock.