Note 6 - Lease Commitments

3 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Leases of Lessee Disclosure [Text Block]

6.

Lease Commitments

Capital and financing lease obligations as of

December

31,

2016

and

September

30,

2016,

were as follows, dollars in thousands:

	As of
	December 31, 2016			September 30, 201 6
Capital lease finance obligations, due in monthly installments through fiscal year 2032	$	26,631			25,619
Capital lease obligations, due in monthly installments through fiscal year 2041		5,162			5,213
Capital lease finance obligations for assets under construction, due in monthly installments through fiscal year 2032		—			1,075
Total capital and financing lease obligations		31,793			31,907
Less current portion		(484	)		(478	)
Total capital and financing lease obligations, net of current portion	$	31,309			31,429

On

October

7,

2016,

the Company consummated a sale-leaseback transaction with an unrelated

third

party for a store building. Concurrently with the Company’s sale of the building, the Company entered into an agreement to lease the building back from the purchaser over an initial lease term of

15

years. The sale resulted in proceeds to the Company of approximately

$2.6

million and a loss to the Company of approximately

$0.5

million. Such loss has been deferred by the Company and will be amortized over the initial lease term.

The Company classified the lease as operating and considers the transaction as a normal leaseback with no continuing involvement under the provisions of FASB Accounting Standards Codification Topic

840,

Leases

.