Note B - Commitments and Facilities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||
| 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 Minnesota and Mexico for its ongoing operations, which expire at various dates through February 2024. 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, 2017,
2016, and 2015, total rent expense was $768,000, $658,000 and $630,000 respectively. Rent expense includes operating expenses, insurance, and related taxes.As of September 30, 2017, the future minimum lease payments required under operating lease agreements are as follows:
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. On April 25, 2017, the Board of Directors increased the repurchase authorization by $4,000,000 to $12,000,000 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, 2017, the Company may repurchase up to $7,169,768 of its outstanding shares of common stock. |
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