Annual report pursuant to Section 13 and 15(d)

Note B - Commitments and Facilities

v3.10.0.1
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,
2017,
and
2016,
total rent expense was
$869,000,
$768,000
and
$658,000
respectively. Rent expense includes operating expenses, insurance, and related taxes.
 
As of
September 30, 2018,
the future minimum lease payments required under operating lease agreements are as follows:
 
Year ending September 30   Operating leases
  2019     $
593,586
  
  2020      
568,018
  
  2021      
402,123
  
  2022      
412,177
  
  2023      
422,481
  
  Thereafter      
615,336
  
  Total minimum lease payments     $
3,013,721
  
 
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
$8,000,000
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, 2018,
the Company
may
repurchase up to
$5,409,326
of its outstanding shares of common stock.