Note C - Investment Securities

12 Months Ended

Sep. 28, 2013

Investments, Debt and Equity Securities [Abstract]

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 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 September 28, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
	(in thousands)
US Government Agency Debt	$	2,000	$	-	$	50	$	1,950
Certificates of Deposit		256		-		-		256
	$	2,256	$	-	$	50	$	2,206

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 available for sale at September 28, 2013 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
	(in thousands)
Mutual Funds	$	109,891	$	254	$	2,481	$	107,664
	$	109,891	$	254	$	2,481	$	107,664

The mutual funds are primarily fixed income funds that seek current income with an emphasis on maintaining low volatility and overall moderate duration. The funds 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 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 September 28, 2013 and September 29, 2012 are summarized as follows:

	September 28, 2013				September 29, 2012
	Amortized Cost		Fair Market Value		Amortized Cost		Fair Market Value
	(in thousands)
Due in one year or less	$	256	$	256	$	1,214	$	1,214
Due after one year through five years		-		-		-		-
Due after five years through ten years		2,000		1,950		24,998		25,124
Total held to maturity securities	$	2,256	$	2,206	$	26,212	$	26,338
Less current portion		256		256		1,214		1,214
Long term held to maturity securities	$	2,000	$	1,950	$	24,998	$	25,124

Proceeds from the sale and redemption of marketable securities were $25,307,000, $109,744,000 and $37,568,000 in the years ended September 28, 2013, September 29, 2012 and September 24, 2011, respectively; with a loss of $108,000 recorded in 2013 and no gain or loss recorded in 2012 and 2011. We use the specific identification method to determine the cost of securities sold.