Note B - Commitments and Facilities
|12 Months Ended|
Sep. 30, 2018
|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, 2018,
2016,total rent expense was
$658,000respectively. Rent expense includes operating expenses, insurance, and related taxes.
September 30, 2018,the future minimum lease payments required under operating lease agreements are as follows:
Share Repurchase Program: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
$8,000,000of its outstanding shares of common stock. On
April 25, 2017,the Board of Directors increased the repurchase authorization by
$12,000,000of common stock. The program does
notobligate 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, 2018,the Company
mayrepurchase up to
$5,409,326of its outstanding shares of common stock.
The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef