COMMITMENTS AND CONTINGENCIES

12 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Leases

The Company is obligated under non-cancelable operating leases, primarily for manufacturing equipment, buildings and office equipment. Leases for buildings occupied by IEC expire in September 2018. These operating leases generally contain renewal options and require the Company to pay executory costs such as taxes, insurance and maintenance. 

A summary of minimum lease obligations through the remainder of the lease terms follows:

Future Rental Obligations	Contractual Lease Payments
(in thousands)
Twelve months ended September 30,
2015	$	333
2016	328
2017	287
2018	276
2019	5

Rent expense during the three months ended and years endedSeptember 30, 2014 and September 30, 2013 follows:

	Three Months Ended				Years Ended
Rent Expense	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
(in thousands)
Rent expense	$	118	$	161	$	457	$	1,107

Purchase Commitments

During August 2011, one of IEC’s operating units entered into a five-year agreement with one of its suppliers to purchase a minimum volume of materials in exchange for receiving favorable pricing on the unit’s purchases.  In the event the unit’s cumulative purchases do not equal or exceed stated minimums, the supplier has a right to terminate the agreement and the IEC unit would be obligated to pay an early termination fee that declines from $365 thousand to zero over the term of the agreement.  As of the date of this Form 10-K, the Company expects to exceed minimum purchase requirements under the agreement, thereby avoiding any termination fee.