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Note C - Investment Securities
 12 Months Ended
Sep. 29, 2012
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
NOTE C – INVESTMENT SECURITIES

We have classified our investment securities as marketable securities held to maturity.  The FASB defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the FASB has established three levels of inputs that may be used to measure fair value:

Level 1
Observable inputs such as quoted prices in active markets for identical assets or liabilities;

Level 2
Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and

Level 3
Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

We have concluded that the carrying value of certificates of deposit placed through the Certificate of Deposit Account Registry Service equals fair market value.  Other marketable securities held to maturity values are derived solely from level 1 inputs.

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 29, 2012 are summarized as follows:

   
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Market
Value
 
   
(in thousands)
 
US Government Agency Debt
  $ 24,998     $ 126     $ -     $ 25,124  
Certificates of Deposit
    1,214       -       -       1,214  
    $ 26,212     $ 126     $ -     $ 26,338  

All of the certificates of deposit are within the FDIC limits for insurance coverage. Included in the certificates of deposit are $960,000 pledged as collateral to a municipal sewer district.

On October 1, 2012, we purchased $30 million of securities which we will classify as available for sale.

The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 24, 2011 are summarized as follows:

   
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Market
Value
 
   
(in thousands)
 
US Government Agency Debt
  $ 42,000     $ 52     $ 62     $ 41,990  
FDIC Backed Corporate Debt
    8,015       18       -       8,033  
Certificates of Deposit
    17,491       1       -       17,492  
    $ 67,506     $ 71     $ 62     $ 67,515  

All of the certificates of deposit are within the FDIC limits for insurance coverage.

The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at September 29, 2012 and September 24, 2011 are summarized as follows:

   
September 29, 2012
   
September 24, 2011
 
   
Amortized
Cost
   
Fair
Market
Value
   
Amortized
Cost
   
Fair
Market
Value
 
    (in thousands)  
Due in one year or less
  $ 1,214     $ 1,214     $ 25,506     $ 25,525  
Due after one year through five years
    -       -       6,000       6,014  
Due after five years through ten years
    24,998       25,124       36,000       35,976  
                                 
Total held to maturity securities
  $ 26,212     $ 26,338     $ 67,506     $ 67,515  
Less current portion
    1,214       1,214       25,506       25,525  
Long term held to maturity securities
  $ 24,998     $ 25,124     $ 42,000     $ 41,990  

Proceeds from the sale and redemption of marketable securities were $109,744,000, $37,568,000 and $67,362,000 in the years ended September 29, 2012, September 24, 2011 and September 25, 2010, respectively, with no gain or loss recorded.  We use the specific identification method to determine the cost of securities sold.