Note 11

3 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 1 1 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, corporate bonds and certificates of deposit are based on quoted prices for identical or similar instruments in markets that are

not

active.  As a result, preferred stock, corporate bonds and certificates of deposit 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 30, 2017

are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	125,591	$	165	$	551	$	125,205
Certificates of Deposit		5,920		8		-		5,928
Total marketable securities held to maturity	$	131,511	$	173	$	551	$	131,133

The amortized cost, unrealized gains and losses, and fair market values of our

investment securities available for sale at

December 30, 2017

are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	13,003	$	58	$	237	$	12,824
Preferred Stock		16,791		608		73		17,326
Total marketable securities available for sale	$	29,794	$	666	$	310	$	30,150

The mutual funds seek current income with an emphasis on maintaining low volatility

and overall moderate duration. 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

$123

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 30, 2017

are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	114,101	$	424	$	155	$	114,370
Certificates of Deposit		5,920		18		1		5,937
Total marketable securities held to maturity	$	120,021	$	442	$	156	$	120,307

The amortized cost, unrealized gains and losses, and fair market values of our

investment securities available for sale at

September 30, 2017

are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	13,003	$	77	$	240	$	12,840
Preferred Stock		16,791		711		82		17,420
Total marketable securities available for sale	$	29,794	$	788	$	322	$	30,260

The amortized cost and fair value of the Company

’s held to maturity securities by contractual maturity at

December 30, 2017

and

September 30, 2017

are summarized as follows:

September 24, 2011	December 30, 2017				September 30, 2017
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
			(in thousands)
Due in one year or less	$	49,445	$	49,444	$	59,113	$	59,194
Due after one year through five years		82,066		81,689		60,908		61,113
Due after five years through ten years						-		-
Total held to maturity securities	$	131,511	$	131,133	$	120,021	$	120,307
Less current portion		49,445		49,444		59,113		59,194
Long term held to maturity securities	$	82,066	$	81,689	$	60,908	$	61,113

Proceeds from

the redemption and sale of marketable securities were

$19,096,000

in the

three

months ended

December 30, 2017

and

$475,000

in the

three

ended

December 24, 2016,

respectively. Gains of

$7,558

were recorded in the

three

months ended

December 30, 2017

and

no

gains or losses were recorded in the

three

months ended

December 24, 2016.

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