Note 19 - Operating Leases

12 Months Ended

Oct. 03, 2015

Notes to Financial Statements

Leases of Lessee Disclosure [Text Block]

19

.  OPERATING LEASES

We lease truck equipment in South Carolina. In addition, we lease a 15,000 square foot distribution facility in Utah for $7,500 a month. The Utah facility lease is cancellable by either party with 60 days’ notice. Both leases require us to pay certain insurance and maintenance costs.

Rental expense for all operating leases was $373,000 in fiscal 2015, $375,000 in fiscal 2014, and $424,000 in fiscal 2013.

In connection with our acquisition of M.C. Healthcare on December 9, 2011, we signed a five-year commitment to lease old M.C. Healthcare’s 50,000 square foot manufacturing and showroom facility in Beamsville, Ontario

at CDN $265,000 per year. The lease includes a one-time option, exercisable in the last year of the initial lease term, to buy the property or renew the lease for an additional five years.