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Note C - Investment Securities
 12 Months Ended
Sep. 27, 2014
Investments, Debt and Equity Securities [Abstract]  
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 and available for sale. 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 input 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.


Our marketable securities held to maturity and available for sale 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 27, 2014 are summarized as follows:


           

Gross

   

Gross

   

Fair

 
   

Amortized

   

Unrealized

   

Unrealized

   

Market

 
   

Cost

   

Gains

   

Losses

   

Value

 

 

  (in thousands)  

US Government Agency Debt

  $ 2,000     $ -     $ 13     $ 1,987  
                                 

Total investment securities held to maturity

  $ 2,000     $ -     $ 13     $ 1,987  

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 27, 2014 are summarized as follows:


           

Gross

   

Gross

   

Fair

 
   

Amortized

   

Unrealized

   

Unrealized

   

Market

 
   

Cost

   

Gains

   

Losses

   

Value

 
   

(in thousands)

 
                                 

Mutual Funds

  $ 129,473     $ 760     $ 2,116     $ 128,117  
                                 

Total investment securities available for sale

  $ 129,473     $ 760     $ 2,116     $ 128,117  

The mutual funds are primarily fixed income funds that seek current income with an emphasis on maintaining low volatility and overall moderate duration. The funds do not have contractual maturities; however, we classify them as long term assets as it is our intent to hold them for a period of over one year, although we may sell some or all of them depending on presently unanticipated needs for liquidity or market conditions. The unrealized losses of $2,116,000 are spread over 29 funds with a total fair market value of $107,861,000. Of the funds with unrealized losses at September 27, 2014, 20 funds with a total fair market value of $71,806,000 and unrealized losses of $1,685,000 also had unrealized losses at September 27, 2013.


The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 28, 2013 are summarized as follows:


           

Gross

   

Gross

   

Fair

 
   

Amortized

   

Unrealized

   

Unrealized

   

Market

 
   

Cost

   

Gains

   

Losses

   

Value

 

 

  (in thousands)    

US Government Agency Debt

  $ 2,000     $ -     $ 50     $ 1,950  

Certificates of Deposit

    256       -       -       256  

Total investment securities held to maturity

  $ 2,256     $ -     $ 50     $ 2,206  

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


The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 28, 2013 are summarized as follows:


           

Gross

   

Gross

   

Fair

 
   

Amortized

   

Unrealized

   

Unrealized

   

Market

 
   

Cost

   

Gains

   

Losses

   

Value

 
    (in thousands)  

Mutual Funds

  $ 109,891     $ 254     $ 2,481     $ 107,664  
Total investment securities available for sale    $ 109,891     $ 254     $ 2,481     $ 107,664  

The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at September 27, 2014 and September 28, 2013 are summarized as follows:


   

September 27, 2014

   

September 28, 2013

 
                                 
           

Fair

           

Fair

 
   

Amortized

   

Market

   

Amortized

   

Market

 
   

Cost

   

Value

   

Cost

   

Value

 
    (in thousands)  

Due in one year or less

  $ -     $ -     $ 256     $ 256  

Due after one year through five years

    -       -       -       -  

Due after five years through ten years

    2,000       1,987       2,000       1,950  

Total held to maturity securities

  $ 2,000     $ 1,987     $ 2,256     $ 2,206  

Less current portion

    -       -       256       256  

Long term held to maturity securities

  $ 2,000     $ 1,987     $ 2,000     $ 1,950  

Proceeds from the sale and redemption of marketable securities were $7,245,000, $25,307,000 and $109,744,000 in the years ended September 27, 2014, September 28, 2013 and September 29, 2012, respectively; with losses of $361,000 and $108,000 recorded in 2014 and 2013 and no gain or loss recorded in 2012. We use the specific identification method to determine the cost of securities sold.