XML 32 R10.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Note C - Investment Securities | 12 Months Ended
--- | ---
Sep. 24, 2016
Notes to Financial Statements |
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 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.
Our marketable securities held to maturity and available for sale consist of investments in mutual funds, preferred stock and corporate bonds. The fair values of mutual funds are based on quoted market prices in active markets and are classified within Level 1 of the fair value hierarchy. The fair values of preferred stock and corporate bonds are based on quoted prices for identical or similar instruments in markets that are not active. As a result, preferred stock and corporate bonds are classified within Level 2 of the fair value hierarchy. The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 24, 2016 are summarized as follows:
|  |  |  |  |  | Gross |  |  | Gross |  |  | Fair |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Market |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
|  | (in thousands) |
Corporate Bonds |  | $ | 103,311 |  |  | $ | 734 |  |  | $ | 138 |  |  | $ | 103,907 |
Certificates of Deposit |  |  | 960 |  |  |  | 11 |  |  |  | - |  |  |  | 971 |
Total investment securities held to maturity |  | $ | 104,271 |  |  | $ | 745 |  |  | $ | 138 |  |  | $ | 104,878 |
The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 24, 2016 are summarized as follows:
|  |  |  |  |  | Gross |  |  | Gross |  |  | Fair |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Market |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
|  | (in thousands) |
Mutual Funds |  | $ | 13,003 |  |  | $ | - |  |  | $ | 520 |  |  | $ | 12,483 |
Preferred Stock |  |  | 16,791 |  |  |  | 273 |  |  |  | 82 |  |  |  | 16,982 |
Total investment securities available for sale |  | $ | 29,794 |  |  | $ | 273 |  |  | $ | 602 |  |  | $ | 29,465 |
The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration. We have reduced our investments in mutual funds over the past year to $13 million at September 2016 from $19 million at September 2015 and $128 million at September 2014. The remaining unrealized losses of $520,000 are spread over 4 funds with total fair market value of $12.5 million. The remaining mutual funds presently generate income of 4.9 % per year. We have invested $17 million in Fixed-to-Floating Perpetual Preferred Stock which generates fixed income to call dates in 2018, 2019 and 2025 and then income is based on a spread above LIBOR if the securities are not called. The annual yield from these investments is presently 5.5%, of which 70% is not subject to income tax. The mutual funds and the Fixed-to-Floating Perpetual Preferred Stock investment securities 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. W e have invested $103 million in corporate bonds which generate fixed income to maturity dates in 2017 through 2021, with $67 million maturing prior to the end of our fiscal year 2018. The bonds presently generate income of about 2.2% per year. Our expectation is that we will hold the corporate bonds to their maturity dates and redeem them at our amortized cost. The amortized cost, unrealized gains and losses, and fair market values of our investment securities held to maturity at September 26, 2015 are summarized as follows:
|  |  |  |  |  | Gross |  |  | Gross |  |  | Fair |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Market |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
|  | (in thousands) |
Corporate Bonds |  | $ | 66,660 |  |  | $ | 15 |  |  | $ | 663 |  |  | $ | 66,012 |
Total investment securities held to maturity |  | $ | 66,660 |  |  | $ | 15 |  |  | $ | 663 |  |  | $ | 66,012 |
The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 26, 2015 are summarized as follows:
|  |  |  |  |  | Gross |  |  | Gross |  |  | Fair |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Market |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
|  | (in thousands) |
Mutual Funds |  | $ | 20,041 |  |  | $ | - |  |  | $ | 827 |  |  | $ | 19,214 |
Preferred Stock |  |  | 20,473 |  |  |  | 114 |  |  |  | 163 |  |  |  | 20,424 |
Total investment securities available for sale |  | $ | 40,514 |  |  | $ | 114 |  |  | $ | 990 |  |  | $ | 39,638 |
The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at September 24, 2016 and September 26, 2015 are summarized as follows:
|  | September 24, 2016 |  |  | September 26, 2015 |
|  |  |  |  |  | Fair |  |  |  |  |  |  | Fair |
|  | Amortized |  |  | Market |  |  | Amortized |  |  | Market |
|  | Cost |  |  | Value |  |  | Cost |  |  | Value |
|  | (in thousands) |
Due in one year or less |  | $ | 13,539 |  |  | $ | 13,552 |  |  | $ | - |  |  | $ | - |
Due after one year through five years |  |  | 90,732 |  |  |  | 91,326 |  |  |  | 63,522 |  |  |  | 63,010 |
Due after five years through ten years |  |  | - |  |  |  | - |  |  |  | 3,138 |  |  |  | 3,002 |
Total held to maturity securities |  | $ | 104,271 |  |  | $ | 104,878 |  |  | $ | 66,660 |  |  | $ | 66,012 |
Less current portion |  |  | 13,539 |  |  |  | 13,552 |  |  |  | - |  |  |  | - |
Long term held to maturity securities |  | $ | 90,732 |  |  | $ | 91,326 |  |  | $ | 66,660 |  |  | $ | 66,012 |
Proceeds from the sale and redemption of marketable securities were $13,224,000, $110,117,000 and $7,245,000 in the years ended September 24, 2016, September 26, 2015 and September 27, 2014, respectively; with losses of $661,000, $4,319,000 and $361,000 recorded in 2016, 2015 and 2014, respectively. We use the specific identification method to determine the cost of securities sold.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration