Note 12

6 Months Ended

Jun. 23, 2012

Fair Value Disclosures [Text Block]

Note 12          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 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.

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 June 23, 2012 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
	(in thousands)
US Government Agency Debt	$	53,479	$	117	$	38	$	53,558
Certificate of Deposit		1,454		-		-		1,454
	$	54,933	$	117	$	38	$	55,012

All of the certificates of deposit are within the FDIC limits for insurance coverage. Included in the certificates of deposit are $1.2 million pledged as collateral to a municipal sewer district.

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
Certificate 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 June 23, 2012 and September 24, 2011 are summarized as follows:

	June 23, 2012				September 24, 2011
	(in thousands)
	Amortized Cost		Fair Market Value		Amortized Cost		Fair Market Value
Due in one year or less	$	15,454	$	15,454	$	25,506	$	25,525
Due after one year through five years		-		-		6,000		6,014
Due after 5 years through 10 years		39,479		39,558		36,000		35,976
Due after 10 years through 15 years		-		-		-		-
Total held to maturity securities	$	54,933	$	55,012	$	67,506	$	67,515
Less current portion		15,454		15,454		25,506		25,525
Long term held to maturity securities	$	39,479	$	39,558	$	42,000	$	41,990

Proceeds from the redemption and sale of marketable securities were $21,000,000 and $81,023,000 in the three months and nine months ended June 23, 2012, respectively; and $2,022,000 and $27,547,000 in the three and nine months ended June 25, 2011, respectively, with no gain or loss recorded.  We use the specific identification method to determine the cost of securities sold.