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Note 11

3 Months Ended

Dec. 24, 2016

Notes to Financial Statements

Fair Value Disclosures [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

24,

2016

are summarized as follows:

						Gross				Gross				Fair
		Amortized				Unrealized				Unrealized				Market
		Cost				Gains				Losses				Value
		(in thousands)
Corporate Bonds		$	111,082			$	212			$	287			$	111,007
Certificates of Deposit			960				6				-				966
Total investment securities held to maturity		$	112,042			$	218			$	287			$	111,973

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at

December

24,

2016

are summarized as follows:

						Gross				Gross				Fair
		Amortized				Unrealized				Unrealized				Market
		Cost				Gains				Losses				Value
		(in thousands)
Mutual Funds		$	13,003			$	-			$	400			$	12,603
Preferred Stock			16,791				115				147				16,759
Total investment securities available for sale		$	29,794			$	115			$	547			$	29,362

The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration. The unrealized losses of

$400,000

are spread over

4

funds with total fair market value of

$12.6

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

$95

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

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 amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at

December

24,

2016

and

September

24,

2016

are summarized as follows:

		December 24, 2016								September 24, 2016
						Fair								Fair
		Amortized				Market				Amortized				Market
		Cost				Value				Cost				Value
		(in thousands)
Due in one year or less		$	26,017			$	25,976			$	13,539			$	13,552
Due after one year through five years			86,025				85,997				90,732				91,326
Due after five years through ten years											-				-
Total held to maturity securities		$	112,042			$	111,973			$	104,271			$	104,878
Less current portion			26,017				25,976				13,539				13,552
Long term held to maturity securities		$	86,025			$	85,997			$	90,732			$	91,326

Proceeds from the redemption and sale of marketable securities were

$475,000

and

$1,198,000

in the

three

months ended

December

24,

2016

and

December

26,

2015,

respectively, with

no

loss recorded in the

three

months ended

December

24,

2016

and

$109,000

recorded in the

three

months ended

December

26,

2015.

We use the specific identification method to determine the cost of securities sold.

X

- References

No definition available.

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- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611

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