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Note 11

3 Months Ended

Dec. 26, 2015

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 11

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.

Marketable securities held to maturity and available for sale consist primarily 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 December 26, 2015 are summarized as follows:

						Gross				Gross				Fair
		Amortized				Unrealized				Unrealized				Market
		Cost				Gains				Losses				Value
		(in thousands)

Corporate Bonds		$	87,772			$	14			$	1,534			$	86,252
Total investment securities held to maturity		$	87,772			$	14			$	1,534			$	86,252

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at December 26, 2015 are summarized as follows:

						Gross				Gross				Fair
		Amortized				Unrealized				Unrealized				Market
		Cost				Gains				Losses				Value
		(in thousands)

Mutual Funds		$	18,733			$	-			$	1,262			$	17,471
Preferred Stock			20,473				17				453				20,037
Total investment securities available for sale		$	39,206			$	17			$	1,715			$	37,508

The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration. The unrealized losses of $1.3 million are spread over 4 funds with total fair market value of $17.5 million. The Fixed-to-Floating Perpetual Preferred Stock generate 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 mutual funds and Fixed-to-Floating Perpetual Preferred Stock 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 corporate bonds generate fixed income to maturity dates in 2017 through 2021, with $65 million maturing within 3 years. 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 December 26, 2015 and September 26, 2015 are summarized as follows:

		December 26, 2015								September 26, 2015

						Fair								Fair
		Amortized				Market				Amortized				Market
		Cost				Value				Cost				Value
		(in thousands)
Due in one year or less		$	-			$	-			$	-			$	-
Due after one year through five years			86,685				85,191				63,522				63,010
Due after five years through ten years			1,087				1,061				3,138				3,002
Total held to maturity securities		$	87,772			$	86,252			$	66,660			$	66,012
Less current portion			-				-				-				-
Long term held to maturity securities		$	87,772			$	86,252			$	66,660			$	66,012

Proceeds from the redemption and sale of marketable securities were $1,198,000 and $11,601,000 in the three months ended December 26, 2015 and December 27, 2014, respectively, with a loss of $109,000 recorded in the three months ended December 26, 2015 and $509,000 recorded in the three months ended December 27, 2014. We use the specific identification method to determine the cost of securities sold.

The entire disclosure for investments in certain debt and equity securities.

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