Note 11

9 Months Ended

Jun. 29, 2013

Fair Value Disclosures [Text Block]

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 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 29, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
			(in thousands)
Guaranteed Investment Certificate	$	3,243	$	-	$	-	$	3,243
US Government Agency Debt		2,000		-		36		1,964
Certificates of Deposit		255		-		-		255
	$	5,498	$	-	$	36	$	5,462

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at June 29, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
			(in thousands)
Mutual Funds	$	110,000	$	70	$	2,558	$	107,512
	$	110,000	$	70	$	2,558	$	107,512

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

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 held to maturity at September 29, 2012 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
			(in thousands)
US Government Agency Debt	$	24,998	$	126	$	-	$	25,124
Certificates of Deposit		1,214		-		-		1,214
	$	26,212	$	126	$	-	$	26,338

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 29, 2013 and September 29, 2012 are summarized as follows:

	June 29, 2013				September 29, 2012
	Amortized Cost		Fair Market Value		Amortized Cost		Fair Market Value
			(in thousands)
Due in one year or less	$	3,498	$	3,498	$	1,214	$	1,214
Due after one year through five years		-		-		-		-
Due after five years through ten years		2,000		1,964		24,998		25,124
Total held to maturity securities	$	5,498	$	5,462	$	26,212	$	26,338
Less current portion		3,498		3,498		1,214		1,214
Long term held to maturity securities	$	2,000	$	1,964	$	24,998	$	25,124

Proceeds from the redemption and sale of marketable securities were $480,000 and $23,958,000 in the three months and nine months ended June 29, 2013, respectively; and $21,000,000 and $81,023,000 in the three months and nine months ended June 23, 2012, respectively, with no gain or loss recorded. We use the specific identification method to determine the cost of securities sold.