COMMITMENTS AND CONTINGENCIES

12 Months Ended

Sep. 30, 2016

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

(9)   COMMITMENTS AND CONTINGENCIES

Sevcon is involved in various legal proceedings in the ordinary course of business but believes that it is remote that the outcome will be material to operations.

The Company maintains a directors' retirement plan which provides for certain retirement benefits to non-employee directors. Effective January 1997 the plan was frozen and no further benefits are being accrued. While the cost of the plan has been fully expensed, the plan is not separately funded. The estimated maximum liability which has been recorded based on the cost of buying deferred annuities at September 30, 2016 and September 30, 2015 was $144,000 and $153,000 respectively.

Minimum rental commitments under all non-cancelable leases are as follows for the years ended September 30: 2017 - $610,000 2018 - $586,000; 2019 - $542,000; 2020 - $498,000; 2021 - $498,000 and $2,211,000 thereafter. Net rentals of certain land, buildings and equipment expensed were $497,000 in 2016 and $248,000 in 2015.

The U.K. subsidiaries of the Company have given to RBS NatWest Bank a security interest in certain leasehold and freehold property assets as security for overdraft facilities of $1,200,000. The facilities were unused at September 30, 2016 and at September 30, 2015.