10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

X     Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the period ended December 26, 2015

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number:     0-14616

J & J SNACK FOODS CORP.

(Exact name of registrant as specified in its charter)

New Jersey	22-1935537
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

6000 Central Highway, Pennsauken, NJ 08109

(Address of principal executive offices)

Telephone (856) 665-9533

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

               X     Yes                              No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

               X     Yes                              No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated filer (X)	Accelerated filer ( )
Non-accelerated filer ( )	Smaller reporting company ( )
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

                    Yes                         X     No

As of January 20, 2016, there were 18,686,216 shares of the Registrant’s Common Stock outstanding.

1 

INDEX

			Page
			Number
Part I.	Financial Information
	Item l.	Consolidated Financial Statements
		Consolidated Balance Sheets – December 26, 2015 (unaudited) and September 26, 2015	3
		Consolidated Statements of Earnings (unaudited) - Three Months Ended December 26, 2015 and December 27, 2014	4
		Consolidated Statements of Comprehensive Income (unaudited)– Three Months Ended December 26, 2015 and December 27, 2014	5
		Consolidated Statements of Cash Flows (unaudited) – Three Months Ended December 26, 2015 and December 27, 2014	6
		Notes to the Consolidated Financial Statements (unaudited)	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
	Item 4.	Controls and Procedures	24
Part II.	Other Information
	Item 6.	Exhibits	25

2

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

	December 26,			September 26,
	2015			2015
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	111,922		$	133,689
Accounts receivable, net		92,180			102,649
Inventories		94,503			82,657
Prepaid expenses and other		3,409			6,557
Deferred income taxes		3,239			3,266
Total current assets		305,253			328,818
Property, plant and equipment, at cost
Land		2,496			2,496
Buildings		26,741			26,741
Plant machinery and equipment		217,229			210,728
Marketing equipment		269,455			266,047
Transportation equipment		6,878			6,866
Office equipment		20,898			20,586
Improvements		33,637			28,725
Construction in progress		5,764			9,486
Total Property, plant and equipment, at cost		583,098			571,675
Less accumulated depreciation and amortization		406,452			399,621
Property, plant and equipment, net		176,646			172,054
Other assets
Goodwill		86,442			86,442
Other intangible assets, net		44,490			45,819
Marketable securities held to maturity		87,772			66,660
Marketable securities available for sale		37,508			39,638
Other		3,527			3,504
Total other assets		259,739			242,063
Total Assets	$	741,638		$	742,935
Liabilities and Stockholder's Equity
Current Liabilities
Current obligations under capital leases	$	276		$	273
Accounts payable		56,875			59,206
Accrued insurance liability		10,487			10,231
Accrued income taxes		3,465			-
Accrued liabilities		4,916			5,365
Accrued compensation expense		10,908			15,318
Dividends payable		7,284			6,723
Total current liabilities		94,211			97,116
Long-term obligations under capital leases		1,126			1,196
Deferred income taxes		43,719			43,789
Other long-term liabilities		888			915
Stockholders' Equity
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued		-			-
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 18,677,000 and 18,676,000 respectively		29,695			31,653
Accumulated other comprehensive loss		(12,359	)		(10,897	)
Retained Earnings		584,358			579,163
Total stockholders' equity		601,694			599,919
Total Liabilities and Stockholder's Equity	$	741,638		$	742,935

The accompanying notes are an integral part of these statements.

3

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(in thousands, except per share amounts)

	Three months ended
	December 26,			December 27,
	2015			2014
Net Sales	$	222,850		$	212,752
Cost of goods sold(1)		159,015			151,651
Gross Profit		63,835			61,101
Operating expenses
Marketing (2)		19,629			19,487
Distribution (3)		18,256			17,521
Administrative (4)		7,690			7,525
Other general income		(100	)		(42	)
Total Operating Expenses		45,475			44,491
Operating Income		18,360			16,610
Other income (expense)
Investment income		1,160			1,354
Interest expense & other		(32	)		(24	)
Earnings before income taxes		19,488			17,940
Income taxes		7,009			6,684
NET EARNINGS	$	12,479		$	11,256
Earnings per diluted share	$	0.66		$	0.60
Weighted average number of diluted shares		18,839			18,801
Earnings per basic share	$	0.67		$	0.60
Weighted average number of basic shares		18,687			18,669

(1) Includes share-based compensation expense of $133 and $112 for the three months ended December 26, 2015 and December 27, 2014, respectively.

(2) Includes share-based compensation expense of $201 and $172 for the three months ended December 26, 2015 and December 27, 2014, respectively.

(3) Includes share-based compensation expense of $11 and $11 for the three months ended December 26, 2015 and December 27, 2014, respectively.

(4) Includes share-based compensation expense of $173 and $229 for the three months ended December 26, 2015 and December 27, 2014, respectively.

The accompanying notes are an integral part of these statements.

4

J&J SNACK FOODS CORP. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)

	Three months ended
	December 26,			December 27,
	2015			2014
Net Earnings	$	12,479		$	11,256
Foreign currency translation adjustments		(640	)		(1,955	)
Unrealized holding loss on marketable securities		(822	)		(1,922	)
Total Other Comprehensive(Loss)Income, net of tax		(1,462	)		(3,877	)
Comprehensive Income	$	11,017		$	7,379
All amounts are net of tax.

The accompanying notes are an integral part of these statements.

5

J & J SNACK FOODS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (in thousands)

	Three months ended
	December 26,			December 27,
	2015			2014
Operating activities:
Net earnings	$	12,479		$	11,256
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of fixed assets		8,170			7,981
Amortization of intangibles and deferred costs		1,455			1,434
Share-based compensation		518			526
Deferred income taxes		(36	)		(208	)
Loss on sale of marketable securities		109			509
Other		89			(58	)
Changes in assets and liabilities net of effects from purchase of companies
Decrease in accounts receivable		10,527			16,023
Increase in inventories		(12,073	)		(10,522	)
Decrease(increase)in prepaid expenses		3,141			(115	)
Decrease in accounts payable and accrued liabilities		(3,461	)		(2,895	)
Net cash provided by operating activities		20,918			23,931
Investing activities:
Purchases of property, plant and equipment		(13,304	)		(9,674	)
Purchases of marketable securities		(21,329	)		(11,639	)
Proceeds from redemption and sales of marketable securities		1,198			11,601
Proceeds from disposal of property and equipment		581			197
Other		(72	)		(47	)
Net cash used in investing activities		(32,926	)		(9,562	)
Financing activities:
Payments to repurchase common stock		(3,115	)		(1,670	)
Proceeds from issuance of stock		640			1,098
Payments on capitalized lease obligations		(67	)		(39	)
Payment of cash dividend		(6,723	)		(5,972	)
Net cash used in financing activities		(9,265	)		(6,583	)
Effect of exchange rate on cash and cash equivalents		(494	)		(1,471	)
Net (decrease) increase in cash and cash equivalents		(21,767	)		6,315
Cash and cash equivalents at beginning of period		133,689			91,760
Cash and cash equivalents at end of period	$	111,922		$	98,075

The accompanying notes are an integral part of these statements.

6

J & J SNACK FOODS CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1 In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position and the results of operations and cash flows. Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net earnings.

The results of operations for the three months ended December 26, 2015 and December 27, 2014 are not necessarily indicative of results for the full year. Sales of our frozen beverages and frozen juice bars and ices are generally higher in the third and fourth quarters due to warmer weather.

While we believe that the disclosures presented are adequate to make the information not misleading, it is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 26, 2015.

Note 2 We recognize revenue from our products when the products are shipped to our customers. Repair and maintenance equipment service revenue is recorded when it is performed provided the customer terms are that the customer is to be charged on a time and material basis or on a straight-line basis over the term of the contract when the customer has signed a service contract. Revenue is recognized only where persuasive evidence of an arrangement exists, our price is fixed or estimable and collectability is reasonably assured. We record offsets to revenue for allowances, end-user pricing adjustments, trade spending, coupon redemption costs and returned product. Customers generally do not have the right to return product unless it is damaged or defective. We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors. The allowance for doubtful receivables was $324,000 and $304,000 at December 26, 2015 and September 26, 2015, respectively.

7

Note 3 Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter. Licenses and rights, customer relationships and non-compete agreements arising from acquisitions are amortized by the straight-line method over periods ranging from 3 to 20 years. Depreciation expense was $8,170,000 and $7,981,000 for the three months ended December 26, 2015 and December 27, 2014, respectively.

Note 4 Basic earnings per common share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows:

	Three Months Ended December 26, 2015
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	12,479		18,687	$	0.67
Effect of Dilutive Securities
Options		-		152		(0.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	12,479		18,839	$	0.66

8

	Three Months Ended December 27, 2014
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	11,256		18,669	$	0.60
Effect of Dilutive Securities
Options		-		132		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	11,256		18,801	$	0.60

Note 5 At December 26, 2015, the Company has three stock-based employee compensation plans. Share-based compensation was recognized as follows:

	Three months ended
	December 26,		December 27,
	2015		2014
	(in thousands, except per share amounts)
Stock Options	$	250	$	284
Stock purchase plan		92		147
Restricted stock issued to an employee		1		1
Total share-based compensation	$	343	$	432
The above compensation is net of tax benefits	$	175	$	92

The Company anticipates that share-based compensation will not exceed $1.8 million net of tax benefits for the fiscal year ending September 24, 2016.

The Company did not grant any stock options during the 2016 and 2015 three month period.

Expected volatility is based on the historical volatility of the price of our common shares over the past 49 months for 5 year options and 10 years for 10 year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures.

9

Note 6 We account for our income taxes under the liability method. Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse.  Deferred tax expense is the result of changes in deferred tax assets and liabilities.

Additionally, we recognize a liability for income taxes and associated penalties and interest for tax positions taken or expected to be taken in a tax return which are more likely than not to be overturned by taxing authorities (“uncertain tax positions”).  We have not recognized a tax benefit in our financial statements for these uncertain tax positions.

The total amount of gross unrecognized tax benefits is $339,000 and $334,000 on December 26, 2015 and September 26, 2015, respectively, all of which would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to income tax matters as a part of the provision for income taxes. As of December 26, 2015 and September 26, 2015, respectively, the Company has $204,000 and $199,000 of accrued interest and penalties.

In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax with virtually all open for examination for three to four years.

Note 7 In May 2014, the FASB issued guidance on revenue recognition which says that we should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which we expect to be entitled in exchange for those goods or services.  This guidance is effective for our fiscal year ending September 2019.  Early application is permitted.  We anticipate that the impact of this guidance on our consolidated financial statements will not be material.

10 

In September 2015, the FASB issued guidance on accounting for business combinations which require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.  This guidance eliminates the requirement to retrospectively account for these adjustments.  This guidance is effective for our fiscal year ended September 2018.  Early adoption is permitted.  This guidance did not impact amounts and disclosures related to previous business combinations; therefore, the adoption of this guidance in the current quarter did not impact our consolidated financial statements.

In July 2015, the FASB issued guidance which requires an entity to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.  This guidance will simplify the subsequent measurement of inventory, as current guidance requires an entity to measure inventory at the lower of cost or market. Under current guidance, market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin.    This guidance is effective for our fiscal year ended September 2018.  Early adoption is permitted.  The adoption of this guidance in the current quarter did not have a material impact on our consolidated financial statements.

In November 2015, the FASB issued guidance on the balance sheet classification of deferred taxes which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet and now requires entities to classify all deferred tax assets and liabilities as noncurrent. This guidance is effective for our fiscal year ended September 2018.  Early adoption is permitted.   We anticipate that the impact of this guidance on our consolidated financial statements will not be material.

11

Note 8 Inventories consist of the following:

	December 26,		September 26,
	2015		2015
	(unaudited)
	(in thousands)
Finished goods	$	42,338	$	34,258
Raw materials		18,881		17,000
Packaging materials		7,300		5,949
Equipment parts and other		25,984		25,450
Total Inventories	$	94,503	$	82,657
The above inventories are net of reserves	$	2,443	$	2,627

Note 9 We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Makers.

Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income (loss). These segments are described below.

Food Service

The primary products sold by the food service group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods. Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale.

12

Retail Supermarkets

The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and dough enrobed handheld products including PATIO burritos. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

We sell frozen beverages and related products to the food service industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance service to customers for customers’ owned equipment.

13

The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

	Three months ended
	December 26,			December 27,
	2015			2014
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	38,699		$	40,718
Frozen juices and ices		8,315			8,201
Churros		13,936			12,967
Handhelds		6,146			5,158
Bakery		76,601			74,431
Other		3,055			2,086
Total Food Service	$	146,752		$	143,561
Retail Supermarket
Soft pretzels	$	8,740		$	9,200
Frozen juices and ices		9,064			9,155
Handhelds		3,875			4,879
Coupon redemption		(574	)		(1,073	)
Other		155			226
Total Retail Supermarket	$	21,260		$	22,387
Frozen Beverages
Beverages	$	28,070		$	25,510
Repair and maintenance service		17,763			15,310
Machines sales		8,732			5,747
Other		273			237
Total Frozen Beverages	$	54,838		$	46,804
Consolidated Sales	$	222,850		$	212,752
Depreciation and Amortization:
Food Service	$	5,385		$	5,190
Retail Supermarket		286			316
Frozen Beverages		3,954			3,909
Total Depreciation and Amortization	$	9,625		$	9,415
Operating Income :
Food Service	$	15,902		$	15,493
Retail Supermarket		1,090			666
Frozen Beverages		1,368			451
Total Operating Income	$	18,360		$	16,610
Capital Expenditures:
Food Service	$	8,084		$	6,133
Retail Supermarket		156			23
Frozen Beverages		5,064			3,518
Total Capital Expenditures	$	13,304		$	9,674
Assets:
Food Service	$	546,264		$	521,702
Retail Supermarket		23,099			22,610
Frozen Beverages		172,275			158,552
Total Assets	$	741,638		$	702,864

14

Note 10 Our three reporting units, which are also reportable segments, are Food Service, Retail Supermarkets and Frozen Beverages.

The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverage segments as of December 26, 2015 and September 26, 2015 are as follows:

	December 26, 2015				September 26, 2015
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	13,072	$	-	$	13,072	$	-
Amortized intangible assets
Non compete agreements		592		545		592		538
Customer relationships		40,797		34,487		40,797		33,584
License and rights		3,606		2,826		3,606		2,802
TOTAL FOOD SERVICE	$	58,067	$	37,858	$	58,067	$	36,924
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	7,206	$	-	$	7,206	$	-
Amortized Intangible Assets
Non compete agreements		160		132		160		114
Customer relationships		7,979		1,420		7,979		1,220
TOTAL RETAIL SUPERMARKETS	$	15,345	$	1,552	$	15,345	$	1,334
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade Names	$	9,315	$	-	$	9,315	$	-
Amortized intangible assets
Non compete agreements		198		198		198		198
Customer relationships		6,678		6,234		6,678		6,075
Licenses and rights		1,601		872		1,601		854
TOTAL FROZEN BEVERAGES	$	17,792	$	7,304	$	17,792	$	7,127
CONSOLIDATED	$	91,204	$	46,714	$	91,204	$	45,385

15

Amortized intangible assets are being amortized by the straight-line method over periods ranging from 3 to 20 years and amortization expense is reflected throughout operating expenses. There were no intangible assets acquired in the three months ended December 26, 2015. Aggregate amortization expense of intangible assets for the three months ended December 26, 2015 and December 27, 2014 was $1,329,000 and $1,355,000 respectively.

Estimated amortization expense for the next five fiscal years is approximately $5,100,000 in 2016, $2,600,000 in 2017, $1,800,000 in 2018, $1,700,000 in 2019 and $1,400,000 in 2020. The weighted average amortization period of the intangible assets is 10.0 years.

Goodwill

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:

			Retail		Frozen
	Food		Service		Supermarket		Beverages
Total	(in thousands)
Balance at December 26, 2015	$	46,832	$	3,670	$	35,940	$	86,442
Balance at September 26, 2015	$	46,832	$	3,670	$	35,940	$	86,442

There was no goodwill acquired in the three months ended December 26, 2015.  

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;

16

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 26, 2015 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	87,772	$	14	$	1,534	$	86,252
Total investment securities held to maturity	$	87,772	$	14	$	1,534	$	86,252

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at December 26, 2015 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	18,733	$	-	$	1,262	$	17,471
Preferred Stock		20,473		17		453		20,037
Total investment securities available for sale	$	39,206	$	17	$	1,715	$	37,508

The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration. The unrealized losses of $1.3 million are spread over 4 funds with total fair market value of $17.5 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.

17

The corporate bonds generate fixed income to maturity dates in 2017 through 2021, with $65 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 26, 2015 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	66,660	$	15	$	663	$	66,012
Total investment securities held to maturity	$	66,660	$	15	$	663	$	66,012

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 26, 2015 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	20,041	$	-	$	827	$	19,214
Preferred Stock		20,473		114		163		20,424
Total investment securities available for sale	$	40,514	$	114	$	990	$	39,638

18

The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at December 26, 2015 and September 26, 2015 are summarized as follows:

	December 26, 2015				September 26, 2015
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
	(in thousands)
Due in one year or less	$	-	$	-	$	-	$	-
Due after one year through five years		86,685		85,191		63,522		63,010
Due after five years through ten years		1,087		1,061		3,138		3,002
Total held to maturity securities	$	87,772	$	86,252	$	66,660	$	66,012
Less current portion		-		-		-		-
Long term held to maturity securities	$	87,772	$	86,252	$	66,660	$	66,012

Proceeds from the redemption and sale of marketable securities were $1,198,000 and $11,601,000 in the three months ended December 26, 2015 and December 27, 2014, respectively, with a loss of $109,000 recorded in the three months ended December 26, 2015 and $509,000 recorded in the three months ended December 27, 2014. We use the specific identification method to determine the cost of securities sold.

19

Note 12 Changes to the components of other accumulated comprehensive loss are as follows:

	Three Months ended December 26, 2015
	(unaudited)
	(in thousands)
				Unrealized Holding
	Foreign Currency			Loss on
	Translation Adjustments			Marketable Securities			Total
Beginning Balance	$	(10,021	)	$	(876	)	$	(10,897	)
Other comprehensive (loss) income before reclassifications		(640	)		(892	)		(1,532	)
Amounts reclassified from accumulated other comprehensive income		-			70			70
Ending Balance	$	(10,661	)	$	(1,698	)	$	(12,359	)

All amounts are net of tax.

	Three Months ended December 27, 2014
	(unaudited)
	(in thousands)
				Unrealized Holding
	Foreign Currency			Loss on
	Translation Adjustments			Marketable Securities			Total
Beginning Balance	$	(4,632	)	$	(1,356	)	$	(5,988	)
Other comprehensive (loss) income before reclassifications		(1,955	)		(2,138	)		(4,093	)
Amounts reclassified from accumulated other comprehensive income		-			216			216
Ending Balance	$	(6,587	)	$	(3,278	)	$	(9,865	)

All amounts are net of tax.

20

Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

Liquidity and Capital Resources

Our current cash and cash equivalents balances and cash expected to be provided by future operations are our primary sources of liquidity. We believe that these sources, along with our borrowing capacity, are sufficient to fund future growth and expansion. See Note 11 to these financial statements for a discussion of our investment securities.

The Company’s Board of Directors declared a regular quarterly cash dividend of $.39 per share of its common stock payable on January 7, 2016, to shareholders of record as of the close of business on December 22, 2015.

In our fiscal year ended September 26, 2015, we purchased and retired 72,698 shares of our common stock at a cost of $8,011,118. In the quarter ended December 26, 2015, we purchased and retired 27,083 shares of our common stock at a cost of $3,115,439. On November 8, 2012 the Company’s Board of Directors authorized the purchase and retirement of 500,000 shares of the Company’s common stock; 162,392 shares remain to be purchased under this authorization.

In the three months ended December 26, 2015 and December 27, 2014 fluctuations in the valuation of the Mexican and Canadian currencies and the resulting translation of the net assets of our Mexican and Canadian subsidiaries caused an increase of $640,000 in accumulated other comprehensive loss in the 2016 first quarter and an increase of $1,955,000 in accumulated other comprehensive loss in the 2015 first quarter.

Our general-purpose bank credit line which expires in December 2016 provides for up to a $50,000,000 revolving credit facility. The agreement contains restrictive covenants and requires commitment fees in accordance with standard banking practice. There were no outstanding balances under this facility at December 26, 2015.

Results of Operations

Net sales increased $10,098,000 or 5% to $222,850,000 for the three months ended December 26, 2015 compared to the three months ended December 27, 2014.

FOOD SERVICE

Sales to food service customers increased $3,191,000 or 2% in the first quarter to $146,752,000.  Soft pretzel sales to the food service market decreased 5% to $38,699,000 in the first quarter due primarily to lower sales to school food service, warehouse club stores and restaurant chains.

21

Frozen juices and ices sales for the quarter were up 1% to $8,315,000 with sales increases and decreases throughout our customer base. Churro sales to food service customers increased 7% to $13,936,000 in the first quarter with sales increases and decreases throughout our customer base.

Sales of bakery products increased $2,170,000 or 3% in the first quarter to $76,601,000 as sales increases to two customers and school food service accounted for all of the sales increase.

     Sales of handhelds increased $988,000, or 19%, with sales to one customer accounting for all of the increase. Sales of funnel cake products increased $1,009,000, or 58%, primarily due to increased sales to school food service.

Sales of new products in the first twelve months since their introduction were approximately $2.2 million in this quarter. Price increases accounted for approximately $4.0 million of sales in the quarter and net volume decreases, including new product sales as defined above, accounted for approximately $800,000 of sales decline in the quarter.

Operating income in our Food Service segment increased from $15,493,000 to $15,902,000 in the quarter. Operating income for the quarter increased primarily because of lower marketing expenses.

RETAIL SUPERMARKETS

Sales of products to retail supermarkets decreased $1,127,000 or 5% to $21,260,000 in the first quarter. Soft pretzel sales for the first quarter were down 5% to $8,740,000 due primarily to the discontinuance of SUPERPRETZEL BAVARIAN Soft Pretzel Bread which was introduced in the year ago quarter. Sales of frozen juices and ices decreased $91,000 or 1% to $9,064,000 in the first quarter. Coupon redemption costs, a reduction of sales, decreased 47% or about $499,000 for the quarter. Handheld sales to retail supermarket customers decreased 21% to $3,875,000 in the quarter with a sales decrease to one customer and trade spending for the introduction of new products accounting for about 2/3 of the decrease.

Sales of new products in the first twelve months since their introduction were approximately $300,000 in the quarter. Price increases accounted for approximately $650,000 of sales in the quarter and net volume decreases, including new product sales as defined above and net of decreased coupon costs, accounted for approximately $1.8 million of the sales decrease in this quarter. Operating income in our Retail Supermarkets segment increased from $666,000 to $1,090,000 in the quarter primarily because of lower coupon and advertising expenses, which were higher a year ago to introduce our SUPERPRETZEL BAVARIAN Soft Pretzel Bread.

22

FROZEN BEVERAGES

Frozen beverage and related product sales increased 17% to $54,838,000 in the first quarter. Beverage related sales alone were up 10% in the quarter.   Gallon sales were up 11% for the quarter with about 2/3 of the increase coming from movie theater chains. Service revenue increased 16% to $17,763,000 in the first quarter with sales increases and decreases throughout our customer base.

Sales of beverage machines, which tend to fluctuate from year to year while following no specific trend, were $8,732,000 or 52% higher in the three month period. The approximate number of company owned frozen beverage dispensers was 53,800 and 53,100 at December 26, 2015 and September 26, 2015, respectively. Operating income in our Frozen Beverage segment was $1,368,000 in this year’s quarter compared to $451,000 last year as higher sales in all areas of the business contributed to the improvement in operating income.

CONSOLIDATED

Gross profit as a percentage of sales was about the same at 28.64% in this year’s three month period and 28.72% last year.

Total operating expenses increased $984,000 in this quarter but as a percentage of sales decreased from 20.9% percent to 20.4%. Marketing expenses decreased to 8.81% of sales from 9.16%, distribution expenses decreased to 8.19% of sales from 8.24% and administrative expenses decreased to 3.45% of sales from 3.54%. Marketing expenses decreased as a percent of sales because of the much higher frozen beverage sales relative to marketing expenses and generally lower marketing expenses in our food service segment.      

Operating income increased $1,750,000 or 11% to $18,360,000 in the first quarter as a result of the aforementioned items.      

Investment income decreased by $194,000 in the quarter due primarily to lower yields on our investments as we have decreased our holdings of mutual funds and reinvested the proceeds into corporate bonds.

23

The effective income tax rate has been estimated at 36% for this year’s quarter and 37% for last year’s quarter. We are estimating an effective income tax rate of approximately 36% for the year. Last year’s quarter’s rate was impacted by a low tax benefit on share based compensation and by realized losses on sales of investment securities that are not deductible. 

Net earnings increased $1,223,000 or 11% in the current three month period to $12,479,000 as a result of the aforementioned items.

There are many factors which can impact our net earnings from year to year and in the long run, among which are the supply and cost of raw materials and labor, insurance costs, factors impacting sales as noted above, the continuing consolidation of our customers, our ability to manage our manufacturing, marketing and distribution activities, our ability to make and integrate acquisitions and changes in tax laws and interest rates.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There has been no material change in the Company’s assessment of its sensitivity to market risk since its presentation set forth, in item 7a. “Quantitative and Qualitative Disclosures About Market Risk,” in its 2015 annual report on Form 10-K filed with the SEC.

Item 4. Controls and Procedures

The Chief Executive Officer and the Chief Financial Officer of the Company (its principal executive officer and principal financial officer, respectively) have concluded, based on their evaluation as of December 26, 2015, that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports filed or submitted by it under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

24

There has been no change in the Company’s internal control over financial reporting during the quarter ended December 26, 2015, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 6.	Exhibits
	Exhibit No.
	31.1 & 31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	99.5 & 99.6	Certification Pursuant to the 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
	101.1	The following financial information from J&J Snack Foods Corp.'s Quarterly Report on Form 10-Q for the quarter ended December 26, 2015, formatted in XBRL (eXtensible Business Reporting Language):
		(i) Consolidated Balance Sheets,
		(ii) Consolidated Statements of Earnings,
		(iii) Consolidated Statements of Comprehensive Income,
		(iv) Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements

25

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	J & J SNACK FOODS CORP.
Dated: January 25, 2016	/s/ Gerald B. Shreiber
	Gerald B. Shreiber
	Chairman of the Board,
	President, Chief Executive Officer and Director
	(Principal Executive Officer)

Dated: January 25, 2016	/s/ Dennis G. Moore
	Dennis G. Moore, Senior Vice President, Chief Financial Officer and Director
	(Principal Financial Officer)
	(Principal Accounting Officer)

26

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Dennis G. Moore, certify that:

1.     I have reviewed this report on Form 10-Q of J & J Snack Foods Corp.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls and procedures for financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     designed such internal controls and procedures for financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)     all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: January 25, 2016
	/s/ Dennis G. Moore
	Dennis G. Moore, Senior Vice President, Chief Financial Officer and Director
	(Principal Financial Officer)
	(Principal Accounting Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Gerald B. Shreiber, certify that:

1.     I have reviewed this report on Form 10-Q of J & J Snack Foods Corp.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls and procedures for financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)     designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)     designed such internal controls and procedures for financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)     evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)     disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)     all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)     any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: January 25, 2016
	/s/ Gerald B. Shreiber
	Gerald B. Shreiber
	Chairman of the Board, President, Chief Executive Officer and Director
	(Principal Executive Officer)

EX-99.5

Exhibit 99.5

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), each of the undersigned officers of J & J Snack Foods Corp. (the “Company”), does hereby certify with respect to the Quarterly Report of the Company on Form 10-Q for the quarter ended December 26, 2015 (the “Report”) that:

(1)     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: January 25, 2016
	/s/ Dennis G. Moore
	Dennis G. Moore, Senior Vice President, Chief Financial Officer and Director
	(Principal Financial Officer)
	(Principal Accounting Officer)

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

EX-99.6

Exhibit 99.6

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), each of the undersigned officers of J & J Snack Foods Corp. (the “Company”), does hereby certify with respect to the Quarterly Report of the Company on Form 10-Q for the quarter ended December 26, 2015 (the “Report”) that:

(1)     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: January 25, 2016
	/s/ Gerald B. Shreiber
	Gerald B. Shreiber
	Chairman of the Board, President, Chief Executive Officer and Director
	(Principal Executive Officer)

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

XML

Document And Entity Information - shares	3 Months Ended
	Dec. 26, 2015	Jan. 20, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	J&J SNACK FOODS CORP
Trading Symbol	jjsf
Document Type	10-Q
Current Fiscal Year End Date	--09-24
Entity Common Stock, Shares Outstanding		18,686,216
Amendment Flag	false
Entity Central Index Key	0000785956
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Document Period End Date	Dec. 26, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Dec. 26, 2015	Sep. 26, 2015
Current assets
Cash and cash equivalents	$ 111,922	$ 133,689
Accounts receivable, net	92,180	102,649
Inventories	94,503	82,657
Prepaid expenses and other	3,409	6,557
Deferred income taxes	3,239	3,266
Total current assets	305,253	328,818
Property, plant and equipment, at cost
Property, plant and equipment gross	583,098	571,675
Less accumulated depreciation and amortization	406,452	399,621
Property, plant and equipment, net	176,646	172,054
Other assets
Goodwill	86,442	86,442
Other intangible assets, net	44,490	45,819
Marketable securities held to maturity	87,772	66,660
Marketable securities available for sale	37,508	39,638
Other	3,527	3,504
Total other assets	259,739	242,063
Total Assets	741,638	742,935
Current Liabilities
Current obligations under capital leases	276	273
Accounts payable	56,875	59,206
Accrued insurance liability	10,487	10,231
Accrued income taxes	3,465
Accrued liabilities	4,916	5,365
Accrued compensation expense	10,908	15,318
Dividends payable	7,284	6,723
Total current liabilities	94,211	97,116
Long-term obligations under capital leases	1,126	1,196
Deferred income taxes	43,719	43,789
Other long-term liabilities	888	915
Stockholders' Equity
Preferred stock, $1 par value; authorized 10,000,000 shares; none issued	0	0
Common stock, no par value; authorized, 50,000,000 shares; issued and outstanding 18,677,000 and 18,676,000 respectively	29,695	31,653
Accumulated other comprehensive loss	(12,359)	(10,897)
Retained Earnings	584,358	579,163
Total stockholders' equity	601,694	599,919
Total Liabilities and Stockholder's Equity	741,638	742,935
Land [Member]
Property, plant and equipment, at cost
Property, plant and equipment gross	2,496	2,496
Building [Member]
Property, plant and equipment, at cost
Property, plant and equipment gross	26,741	26,741
Plant, Machinery and Equipment [Member]
Property, plant and equipment, at cost
Property, plant and equipment gross	217,229	210,728
Marketing Equipment [Member]
Property, plant and equipment, at cost
Property, plant and equipment gross	269,455	266,047
Transportation Equipment [Member]
Property, plant and equipment, at cost
Property, plant and equipment gross	6,878	6,866
Office Equipment [Member]
Property, plant and equipment, at cost
Property, plant and equipment gross	20,898	20,586
Improvements [Member]
Property, plant and equipment, at cost
Property, plant and equipment gross	33,637	28,725
Construction in Progress [Member]
Property, plant and equipment, at cost
Property, plant and equipment gross	$ 5,764	$ 9,486

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Dec. 26, 2015	Sep. 26, 2015
Preferred, par value (in Dollars per share)	$ 1	$ 1
Preferred, shares authorized	10,000,000	10,000,000
Preferred, shares issued	0	0
Common stock, par value (in Dollars per share)	$ 0	$ 0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	18,677,000	18,676,000
Common stock, shares outstanding	18,677,000	18,676,000

XML

Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 26, 2015		Dec. 27, 2014
Net Sales	$ 222,850		$ 212,752
Cost of goods sold(1)	159,015	[1]	151,651
Gross Profit	63,835		61,101
Operating expenses
Marketing (2)	19,629	[2]	19,487
Distribution (3)	18,256	[3]	17,521
Administrative (4)	7,690	[4]	7,525
Other general income	(100)		(42)
Total Operating Expenses	45,475		44,491
Operating Income	18,360		16,610
Other income (expense)
Investment income	1,160		1,354
Interest expense & other	(32)		(24)
Earnings before income taxes	19,488		17,940
Income taxes	7,009		6,684
NET EARNINGS	$ 12,479		$ 11,256
Earnings per diluted share (in Dollars per share)	$ 0.66		$ 0.60
Weighted average number of diluted shares (in Shares)	18,839		18,801
Earnings per basic share (in Dollars per share)	$ 0.67		$ 0.60
Weighted average number of basic shares (in Shares)	18,687		18,669

[1] Includes share-based compensation expense of $133 and $112 for the three months ended December 26, 2015 and December 27, 2014, respectively.

[2] Includes share-based compensation expense of $201 and $172 for the three months ended December 26, 2015 and December 27, 2014, respectively.

[3] Includes share-based compensation expense of $11 and $11 for the three months ended December 26, 2015 and December 27, 2014, respectively.

[4] Includes share-based compensation expense of $173 and $229 for the three months ended December 26, 2015 and December 27, 2014, respectively.

XML

Consolidated Statements of Earnings (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2015	Dec. 27, 2014
Allocated Share Based Compensation	$ 343	$ 432
Cost Of Goods Sold [Member]
Allocated Share Based Compensation	133	112
Marketing [Member]
Allocated Share Based Compensation	201	172
Distribution [Member]
Allocated Share Based Compensation	11	11
Administrative [Member]
Allocated Share Based Compensation	$ 173	$ 229

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2015	Dec. 27, 2014
Net Earnings	$ 12,479	$ 11,256
Foreign currency translation adjustments	(640)	(1,955)
Unrealized holding loss on marketable securities	(822)	(1,922)
Total Other Comprehensive(Loss)Income, net of tax	(1,462)	(3,877)
Comprehensive Income	$ 11,017	$ 7,379

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Dec. 26, 2015	Dec. 27, 2014
Operating activities:
Net earnings	$ 12,479,000	$ 11,256,000
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of fixed assets	8,170,000	7,981,000
Amortization of intangibles and deferred costs	1,455,000	1,434,000
Share-based compensation	518,000	526,000
Deferred income taxes	(36,000)	(208,000)
Loss on sale of marketable securities	109,000	509,000
Other	89,000	(58,000)
Changes in assets and liabilities net of effects from purchase of companies
Decrease in accounts receivable	10,527,000	16,023,000
Increase in inventories	(12,073,000)	(10,522,000)
Decrease(increase)in prepaid expenses	3,141,000	(115,000)
Decrease in accounts payable and accrued liabilities	(3,461,000)	(2,895,000)
Net cash provided by operating activities	20,918,000	23,931,000
Investing activities:
Purchases of property, plant and equipment	(13,304,000)	(9,674,000)
Purchases of marketable securities	(21,329,000)	(11,639,000)
Proceeds from redemption and sales of marketable securities	1,198,000	11,601,000
Proceeds from disposal of property and equipment	581,000	197,000
Other	(72,000)	(47,000)
Net cash used in investing activities	(32,926,000)	(9,562,000)
Financing activities:
Payments to repurchase common stock	(3,115,000)	(1,670,000)
Proceeds from issuance of stock	640,000	1,098,000
Payments on capitalized lease obligations	(67,000)	(39,000)
Payment of cash dividend	(6,723,000)	(5,972,000)
Net cash used in financing activities	(9,265,000)	(6,583,000)
Effect of exchange rate on cash and cash equivalents	(494,000)	(1,471,000)
Net (decrease) increase in cash and cash equivalents	(21,767,000)	6,315,000
Cash and cash equivalents at beginning of period	133,689,000	91,760,000
Cash and cash equivalents at end of period	$ 111,922,000	$ 98,075,000

XML

Note 1

3 Months Ended

Dec. 26, 2015

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position and the results of operations and cash flows. Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net earnings.

The results of operations for the three months ended December 26, 2015 and December 27, 2014 are not necessarily indicative of results for the full year. Sales of our frozen beverages and frozen juice bars and ices are generally higher in the third and fourth quarters due to warmer weather.

While we believe that the disclosures presented are adequate to make the information not misleading, it is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 26, 2015.

XML

Note 2

3 Months Ended

Dec. 26, 2015

Revenue [Abstract]

Revenue [Text Block]

Note 2 We recognize revenue from our products when the products are shipped to our customers. Repair and maintenance equipment service revenue is recorded when it is performed provided the customer terms are that the customer is to be charged on a time and material basis or on a straight-line basis over the term of the contract when the customer has signed a service contract. Revenue is recognized only where persuasive evidence of an arrangement exists, our price is fixed or estimable and collectability is reasonably assured. We record offsets to revenue for allowances, end-user pricing adjustments, trade spending, coupon redemption costs and returned product. Customers generally do not have the right to return product unless it is damaged or defective. We provide an allowance for doubtful receivables after taking into consideration historical experience and other factors. The allowance for doubtful receivables was $324,000 and $304,000 at December 26, 2015 and September 26, 2015, respectively.

XML

Note 3

3 Months Ended

Dec. 26, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 3 Depreciation of equipment and buildings is provided for by the straight-line method over the assets’ estimated useful lives. Amortization of improvements is provided for by the straight-line method over the term of the lease or the assets’ estimated useful lives, whichever is shorter. Licenses and rights, customer relationships and non-compete agreements arising from acquisitions are amortized by the straight-line method over periods ranging from 3 to 20 years. Depreciation expense was $8,170,000 and $7,981,000 for the three months ended December 26, 2015 and December 27, 2014, respectively.

XML

Note 4

3 Months Ended

Dec. 26, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 4 Basic earnings per common share (EPS) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS takes into consideration the potential dilution that could occur if securities (stock options) or other contracts to issue common stock were exercised and converted into common stock. Our calculation of EPS is as follows:

	Three Months Ended December 26, 2015
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	12,479		18,687	$	0.67
Effect of Dilutive Securities
Options		-		152		(0.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	12,479		18,839	$	0.66

	Three Months Ended December 27, 2014
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	11,256		18,669	$	0.60
Effect of Dilutive Securities
Options		-		132		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	11,256		18,801	$	0.60

XML

Note 5

3 Months Ended

Dec. 26, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 5 At December 26, 2015, the Company has three stock-based employee compensation plans. Share-based compensation was recognized as follows:

	Three months ended
	December 26,		December 27,
	2015		2014
	(in thousands, except per share amounts)
Stock Options	$	250	$	284
Stock purchase plan		92		147
Restricted stock issued to an employee		1		1
Total share-based compensation	$	343	$	432
The above compensation is net of tax benefits	$	175	$	92

The Company anticipates that share-based compensation will not exceed $1.8 million net of tax benefits for the fiscal year ending September 24, 2016.

The Company did not grant any stock options during the 2016 and 2015 three month period.

Expected volatility is based on the historical volatility of the price of our common shares over the past 49 months for 5 year options and 10 years for 10 year options. We use historical information to estimate expected life and forfeitures within the valuation model. The expected term of awards represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation cost is recognized using a straight-line method over the vesting or service period and is net of estimated forfeitures.

XML

Note 6

3 Months Ended

Dec. 26, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 6 We account for our income taxes under the liability method. Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse.  Deferred tax expense is the result of changes in deferred tax assets and liabilities.

Additionally, we recognize a liability for income taxes and associated penalties and interest for tax positions taken or expected to be taken in a tax return which are more likely than not to be overturned by taxing authorities (“uncertain tax positions”).  We have not recognized a tax benefit in our financial statements for these uncertain tax positions.

The total amount of gross unrecognized tax benefits is $339,000 and $334,000 on December 26, 2015 and September 26, 2015, respectively, all of which would impact our effective tax rate over time, if recognized. We recognize interest and penalties related to income tax matters as a part of the provision for income taxes. As of December 26, 2015 and September 26, 2015, respectively, the Company has $204,000 and $199,000 of accrued interest and penalties.

In addition to our federal tax return and tax returns for Mexico and Canada, we file tax returns in all states that have a corporate income tax with virtually all open for examination for three to four years.

XML

Note 7

3 Months Ended

Dec. 26, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Note 7 In May 2014, the FASB issued guidance on revenue recognition which says that we should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which we expect to be entitled in exchange for those goods or services.  This guidance is effective for our fiscal year ending September 2019.  Early application is permitted.  We anticipate that the impact of this guidance on our consolidated financial statements will not be material.

In September 2015, the FASB issued guidance on accounting for business combinations which require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.  This guidance eliminates the requirement to retrospectively account for these adjustments.  This guidance is effective for our fiscal year ended September 2018.  Early adoption is permitted.  This guidance did not impact amounts and disclosures related to previous business combinations; therefore, the adoption of this guidance in the current quarter did not impact our consolidated financial statements.

In July 2015, the FASB issued guidance which requires an entity to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.  This guidance will simplify the subsequent measurement of inventory, as current guidance requires an entity to measure inventory at the lower of cost or market. Under current guidance, market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin.    This guidance is effective for our fiscal year ended September 2018.  Early adoption is permitted.  The adoption of this guidance in the current quarter did not have a material impact on our consolidated financial statements.

In November 2015, the FASB issued guidance on the balance sheet classification of deferred taxes which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet and now requires entities to classify all deferred tax assets and liabilities as noncurrent. This guidance is effective for our fiscal year ended September 2018.  Early adoption is permitted.   We anticipate that the impact of this guidance on our consolidated financial statements will not be material.

XML

Note 8

3 Months Ended

Dec. 26, 2015

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note 8 Inventories consist of the following:

	December 26,		September 26,
	2015		2015
	(unaudited)
	(in thousands)
Finished goods	$	42,338	$	34,258
Raw materials		18,881		17,000
Packaging materials		7,300		5,949
Equipment parts and other		25,984		25,450
Total Inventories	$	94,503	$	82,657
The above inventories are net of reserves	$	2,443	$	2,627

XML

Note 9

3 Months Ended

Dec. 26, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 9 We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Makers.

Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income (loss). These segments are described below.

Food Service

The primary products sold by the food service group are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods. Our customers in the food service industry include snack bars and food stands in chain, department and discount stores; malls and shopping centers; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale.

Retail Supermarkets

The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL, frozen juice treats and desserts including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and dough enrobed handheld products including PATIO burritos. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

Frozen Beverages

We sell frozen beverages and related products to the food service industry primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE in the United States, Mexico and Canada. We also provide repair and maintenance service to customers for customers’ owned equipment.

The Chief Operating Decision Maker for Food Service and Retail Supermarkets and the Chief Operating Decision Maker for Frozen Beverages monthly review detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. In addition, the Chief Operating Decision Makers review and evaluate depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

	Three months ended
	December 26,			December 27,
	2015			2014
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	38,699		$	40,718
Frozen juices and ices		8,315			8,201
Churros		13,936			12,967
Handhelds		6,146			5,158
Bakery		76,601			74,431
Other		3,055			2,086
Total Food Service	$	146,752		$	143,561
Retail Supermarket
Soft pretzels	$	8,740		$	9,200
Frozen juices and ices		9,064			9,155
Handhelds		3,875			4,879
Coupon redemption		(574	)		(1,073	)
Other		155			226
Total Retail Supermarket	$	21,260		$	22,387
Frozen Beverages
Beverages	$	28,070		$	25,510
Repair and maintenance service		17,763			15,310
Machines sales		8,732			5,747
Other		273			237
Total Frozen Beverages	$	54,838		$	46,804
Consolidated Sales	$	222,850		$	212,752
Depreciation and Amortization:
Food Service	$	5,385		$	5,190
Retail Supermarket		286			316
Frozen Beverages		3,954			3,909
Total Depreciation and Amortization	$	9,625		$	9,415
Operating Income :
Food Service	$	15,902		$	15,493
Retail Supermarket		1,090			666
Frozen Beverages		1,368			451
Total Operating Income	$	18,360		$	16,610
Capital Expenditures:
Food Service	$	8,084		$	6,133
Retail Supermarket		156			23
Frozen Beverages		5,064			3,518
Total Capital Expenditures	$	13,304		$	9,674
Assets:
Food Service	$	546,264		$	521,702
Retail Supermarket		23,099			22,610
Frozen Beverages		172,275			158,552
Total Assets	$	741,638		$	702,864

XML

Note 10

3 Months Ended

Dec. 26, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 10 Our three reporting units, which are also reportable segments, are Food Service, Retail Supermarkets and Frozen Beverages.

The carrying amounts of acquired intangible assets for the Food Service, Retail Supermarkets and Frozen Beverage segments as of December 26, 2015 and September 26, 2015 are as follows:

	December 26, 2015				September 26, 2015
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	13,072	$	-	$	13,072	$	-
Amortized intangible assets
Non compete agreements		592		545		592		538
Customer relationships		40,797		34,487		40,797		33,584
License and rights		3,606		2,826		3,606		2,802
TOTAL FOOD SERVICE	$	58,067	$	37,858	$	58,067	$	36,924
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	7,206	$	-	$	7,206	$	-
Amortized Intangible Assets
Non compete agreements		160		132		160		114
Customer relationships		7,979		1,420		7,979		1,220
TOTAL RETAIL SUPERMARKETS	$	15,345	$	1,552	$	15,345	$	1,334
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade Names	$	9,315	$	-	$	9,315	$	-
Amortized intangible assets
Non compete agreements		198		198		198		198
Customer relationships		6,678		6,234		6,678		6,075
Licenses and rights		1,601		872		1,601		854
TOTAL FROZEN BEVERAGES	$	17,792	$	7,304	$	17,792	$	7,127
CONSOLIDATED	$	91,204	$	46,714	$	91,204	$	45,385

Amortized intangible assets are being amortized by the straight-line method over periods ranging from 3 to 20 years and amortization expense is reflected throughout operating expenses. There were no intangible assets acquired in the three months ended December 26, 2015. Aggregate amortization expense of intangible assets for the three months ended December 26, 2015 and December 27, 2014 was $1,329,000 and $1,355,000 respectively.

Estimated amortization expense for the next five fiscal years is approximately $5,100,000 in 2016, $2,600,000 in 2017, $1,800,000 in 2018, $1,700,000 in 2019 and $1,400,000 in 2020. The weighted average amortization period of the intangible assets is 10.0 years.

Goodwill

The carrying amounts of goodwill for the Food Service, Retail Supermarket and Frozen Beverage segments are as follows:

			Retail		Frozen
	Food		Service		Supermarket		Beverages
Total	(in thousands)
Balance at December 26, 2015	$	46,832	$	3,670	$	35,940	$	86,442
Balance at September 26, 2015	$	46,832	$	3,670	$	35,940	$	86,442

There was no goodwill acquired in the three months ended December 26, 2015.  

XML

Note 11

3 Months Ended

Dec. 26, 2015

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [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 26, 2015 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	87,772	$	14	$	1,534	$	86,252
Total investment securities held to maturity	$	87,772	$	14	$	1,534	$	86,252

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at December 26, 2015 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	18,733	$	-	$	1,262	$	17,471
Preferred Stock		20,473		17		453		20,037
Total investment securities available for sale	$	39,206	$	17	$	1,715	$	37,508

The mutual funds seek current income with an emphasis on maintaining low volatility and overall moderate duration. The unrealized losses of $1.3 million are spread over 4 funds with total fair market value of $17.5 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 $65 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 26, 2015 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	66,660	$	15	$	663	$	66,012
Total investment securities held to maturity	$	66,660	$	15	$	663	$	66,012

The amortized cost, unrealized gains and losses, and fair market values of our investment securities available for sale at September 26, 2015 are summarized as follows:

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	20,041	$	-	$	827	$	19,214
Preferred Stock		20,473		114		163		20,424
Total investment securities available for sale	$	40,514	$	114	$	990	$	39,638

The amortized cost and fair value of the Company’s held to maturity securities by contractual maturity at December 26, 2015 and September 26, 2015 are summarized as follows:

	December 26, 2015				September 26, 2015
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
	(in thousands)
Due in one year or less	$	-	$	-	$	-	$	-
Due after one year through five years		86,685		85,191		63,522		63,010
Due after five years through ten years		1,087		1,061		3,138		3,002
Total held to maturity securities	$	87,772	$	86,252	$	66,660	$	66,012
Less current portion		-		-		-		-
Long term held to maturity securities	$	87,772	$	86,252	$	66,660	$	66,012

Proceeds from the redemption and sale of marketable securities were $1,198,000 and $11,601,000 in the three months ended December 26, 2015 and December 27, 2014, respectively, with a loss of $109,000 recorded in the three months ended December 26, 2015 and $509,000 recorded in the three months ended December 27, 2014. We use the specific identification method to determine the cost of securities sold.

XML

Note 12

3 Months Ended

Dec. 26, 2015

Disclosure Text Block [Abstract]

Comprehensive Income (Loss) Note [Text Block]

Note 12 Changes to the components of other accumulated comprehensive loss are as follows:

	Three Months ended December 26, 2015
	(unaudited)
	(in thousands)
				Unrealized Holding
	Foreign Currency			Loss on
	Translation Adjustments			Marketable Securities			Total
Beginning Balance	$	(10,021	)	$	(876	)	$	(10,897	)
Other comprehensive (loss) income before reclassifications		(640	)		(892	)		(1,532	)
Amounts reclassified from accumulated other comprehensive income		-			70			70
Ending Balance	$	(10,661	)	$	(1,698	)	$	(12,359	)

All amounts are net of tax.

	Three Months ended December 27, 2014
	(unaudited)
	(in thousands)
				Unrealized Holding
	Foreign Currency			Loss on
	Translation Adjustments			Marketable Securities			Total
Beginning Balance	$	(4,632	)	$	(1,356	)	$	(5,988	)
Other comprehensive (loss) income before reclassifications		(1,955	)		(2,138	)		(4,093	)
Amounts reclassified from accumulated other comprehensive income		-			216			216
Ending Balance	$	(6,587	)	$	(3,278	)	$	(9,865	)

All amounts are net of tax.

XML

Note 4 (Tables)

3 Months Ended

Dec. 26, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended December 26, 2015
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	12,479		18,687	$	0.67
Effect of Dilutive Securities
Options		-		152		(0.01	)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	12,479		18,839	$	0.66

	Three Months Ended December 27, 2014
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount
	(in thousands, except per share amounts)
Basic EPS
Net Earnings available to common stockholders	$	11,256		18,669	$	0.60
Effect of Dilutive Securities
Options		-		132		-
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions	$	11,256		18,801	$	0.60

XML

Note 5 (Tables)

3 Months Ended

Dec. 26, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

	Three months ended
	December 26,		December 27,
	2015		2014
	(in thousands, except per share amounts)
Stock Options	$	250	$	284
Stock purchase plan		92		147
Restricted stock issued to an employee		1		1
Total share-based compensation	$	343	$	432
The above compensation is net of tax benefits	$	175	$	92

XML

Note 8 (Tables)

3 Months Ended

Dec. 26, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

	December 26,		September 26,
	2015		2015
	(unaudited)
	(in thousands)
Finished goods	$	42,338	$	34,258
Raw materials		18,881		17,000
Packaging materials		7,300		5,949
Equipment parts and other		25,984		25,450
Total Inventories	$	94,503	$	82,657
The above inventories are net of reserves	$	2,443	$	2,627

XML

Note 9 (Tables)

3 Months Ended

Dec. 26, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three months ended
	December 26,			December 27,
	2015			2014
	(unaudited)
	(in thousands)
Sales to External Customers:
Food Service
Soft pretzels	$	38,699		$	40,718
Frozen juices and ices		8,315			8,201
Churros		13,936			12,967
Handhelds		6,146			5,158
Bakery		76,601			74,431
Other		3,055			2,086
Total Food Service	$	146,752		$	143,561
Retail Supermarket
Soft pretzels	$	8,740		$	9,200
Frozen juices and ices		9,064			9,155
Handhelds		3,875			4,879
Coupon redemption		(574	)		(1,073	)
Other		155			226
Total Retail Supermarket	$	21,260		$	22,387
Frozen Beverages
Beverages	$	28,070		$	25,510
Repair and maintenance service		17,763			15,310
Machines sales		8,732			5,747
Other		273			237
Total Frozen Beverages	$	54,838		$	46,804
Consolidated Sales	$	222,850		$	212,752
Depreciation and Amortization:
Food Service	$	5,385		$	5,190
Retail Supermarket		286			316
Frozen Beverages		3,954			3,909
Total Depreciation and Amortization	$	9,625		$	9,415
Operating Income :
Food Service	$	15,902		$	15,493
Retail Supermarket		1,090			666
Frozen Beverages		1,368			451
Total Operating Income	$	18,360		$	16,610
Capital Expenditures:
Food Service	$	8,084		$	6,133
Retail Supermarket		156			23
Frozen Beverages		5,064			3,518
Total Capital Expenditures	$	13,304		$	9,674
Assets:
Food Service	$	546,264		$	521,702
Retail Supermarket		23,099			22,610
Frozen Beverages		172,275			158,552
Total Assets	$	741,638		$	702,864

XML

Note 10 (Tables)

3 Months Ended

Dec. 26, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

	December 26, 2015				September 26, 2015
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(in thousands)
FOOD SERVICE
Indefinite lived intangible assets
Trade Names	$	13,072	$	-	$	13,072	$	-
Amortized intangible assets
Non compete agreements		592		545		592		538
Customer relationships		40,797		34,487		40,797		33,584
License and rights		3,606		2,826		3,606		2,802
TOTAL FOOD SERVICE	$	58,067	$	37,858	$	58,067	$	36,924
RETAIL SUPERMARKETS
Indefinite lived intangible assets
Trade Names	$	7,206	$	-	$	7,206	$	-
Amortized Intangible Assets
Non compete agreements		160		132		160		114
Customer relationships		7,979		1,420		7,979		1,220
TOTAL RETAIL SUPERMARKETS	$	15,345	$	1,552	$	15,345	$	1,334
FROZEN BEVERAGES
Indefinite lived intangible assets
Trade Names	$	9,315	$	-	$	9,315	$	-
Amortized intangible assets
Non compete agreements		198		198		198		198
Customer relationships		6,678		6,234		6,678		6,075
Licenses and rights		1,601		872		1,601		854
TOTAL FROZEN BEVERAGES	$	17,792	$	7,304	$	17,792	$	7,127
CONSOLIDATED	$	91,204	$	46,714	$	91,204	$	45,385

Schedule of Goodwill [Table Text Block]

			Retail		Frozen
	Food		Service		Supermarket		Beverages
Total	(in thousands)
Balance at December 26, 2015	$	46,832	$	3,670	$	35,940	$	86,442
Balance at September 26, 2015	$	46,832	$	3,670	$	35,940	$	86,442

XML

Note 11 (Tables)

3 Months Ended

Dec. 26, 2015

Investments, Debt and Equity Securities [Abstract]

Unrealized Gain (Loss) on Investments [Table Text Block]

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	87,772	$	14	$	1,534	$	86,252
Total investment securities held to maturity	$	87,772	$	14	$	1,534	$	86,252

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	18,733	$	-	$	1,262	$	17,471
Preferred Stock		20,473		17		453		20,037
Total investment securities available for sale	$	39,206	$	17	$	1,715	$	37,508

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Corporate Bonds	$	66,660	$	15	$	663	$	66,012
Total investment securities held to maturity	$	66,660	$	15	$	663	$	66,012

			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(in thousands)
Mutual Funds	$	20,041	$	-	$	827	$	19,214
Preferred Stock		20,473		114		163		20,424
Total investment securities available for sale	$	40,514	$	114	$	990	$	39,638

Investments Classified by Contractual Maturity Date [Table Text Block]

	December 26, 2015				September 26, 2015
			Fair				Fair
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
	(in thousands)
Due in one year or less	$	-	$	-	$	-	$	-
Due after one year through five years		86,685		85,191		63,522		63,010
Due after five years through ten years		1,087		1,061		3,138		3,002
Total held to maturity securities	$	87,772	$	86,252	$	66,660	$	66,012
Less current portion		-		-		-		-
Long term held to maturity securities	$	87,772	$	86,252	$	66,660	$	66,012

XML

Note 12 (Tables)

3 Months Ended

Dec. 26, 2015

Disclosure Text Block [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Three Months ended December 26, 2015
	(unaudited)
	(in thousands)
				Unrealized Holding
	Foreign Currency			Loss on
	Translation Adjustments			Marketable Securities			Total
Beginning Balance	$	(10,021	)	$	(876	)	$	(10,897	)
Other comprehensive (loss) income before reclassifications		(640	)		(892	)		(1,532	)
Amounts reclassified from accumulated other comprehensive income		-			70			70
Ending Balance	$	(10,661	)	$	(1,698	)	$	(12,359	)

	Three Months ended December 27, 2014
	(unaudited)
	(in thousands)
				Unrealized Holding
	Foreign Currency			Loss on
	Translation Adjustments			Marketable Securities			Total
Beginning Balance	$	(4,632	)	$	(1,356	)	$	(5,988	)
Other comprehensive (loss) income before reclassifications		(1,955	)		(2,138	)		(4,093	)
Amounts reclassified from accumulated other comprehensive income		-			216			216
Ending Balance	$	(6,587	)	$	(3,278	)	$	(9,865	)

XML

Note 2 (Details) - USD ($)	Dec. 26, 2015	Sep. 26, 2015
Revenue [Abstract]
Allowance for Doubtful Accounts Receivable	$ 324,000	$ 304,000

XML

Note 3 (Details) - USD ($)	3 Months Ended
	Dec. 26, 2015	Dec. 27, 2014
Note 3 (Details) [Line Items]
Depreciation	$ 8,170,000	$ 7,981,000
Minimum [Member]
Note 3 (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum [Member]
Note 3 (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years

XML

Note 4 (Details) - Calculation of EPS - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 26, 2015	Dec. 27, 2014
Basic EPS
Net Earnings available to common stockholders (in Dollars)	$ 12,479	$ 11,256
Net Earnings available to common stockholders	18,687	18,669
Net Earnings available to common stockholders (in Dollars per share)	$ 0.67	$ 0.60
Effect of Dilutive Securities
Options	152	132
Options (in Dollars per share)	$ (0.01)
Diluted EPS
Net Earnings available to common stockholders plus assumed conversions (in Dollars)	$ 12,479	$ 11,256
Net Earnings available to common stockholders plus assumed conversions	18,839	18,801
Net Earnings available to common stockholders plus assumed conversions (in Dollars per share)	$ 0.66	$ 0.60

XML

Note 5 (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Sep. 24, 2016
Note 5 (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0
Scenario, Forecast [Member]
Note 5 (Details) [Line Items]
Anticipated Share-based Compensation, Net of Tax Benefits (in Dollars)			$ 1.8
5 year options [Member]
Note 5 (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Volatility Calculation Term	49 months
10 year options [Member]
Note 5 (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Volatility Calculation Term	10 years

XML

Note 5 (Details) - Share-based Compensation - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2015	Dec. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 343	$ 432
The above compensation is net of tax benefits	175	92
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	250	284
Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	92	147
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1	$ 1

XML

Note 6 (Details) - USD ($)	Dec. 26, 2015	Sep. 26, 2015
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 339,000	$ 334,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 204,000	$ 199,000

XML

Note 8 (Details) - Inventories - USD ($) $ in Thousands	Dec. 26, 2015	Sep. 26, 2015
Inventories [Abstract]
Finished goods	$ 42,338	$ 34,258
Raw materials	18,881	17,000
Packaging materials	7,300	5,949
Equipment parts and other	25,984	25,450
Total Inventories	94,503	82,657
The above inventories are net of reserves	$ 2,443	$ 2,627

XML

Note 9 (Details)	3 Months Ended
	Dec. 26, 2015
Segment Reporting [Abstract]
Number of Operating Segments	3
Number of Reportable Segments	3

XML

Note 9 (Details) - Reportable Segments Operations Information - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2015	Dec. 27, 2014	Sep. 26, 2015
Food Service
Sales to External Customers	$ 222,850	$ 212,752
Depreciation and Amortization:
Depreciation and Amortization	9,625	9,415
Operating Income :
Operating Income	18,360	16,610
Capital Expenditures:
Capital Expenditures	13,304	9,674
Assets:
Assets	741,638	702,864	$ 742,935
Food Service [Member]
Food Service
Sales to External Customers	146,752	143,561
Depreciation and Amortization:
Depreciation and Amortization	5,385	5,190
Operating Income :
Operating Income	15,902	15,493
Capital Expenditures:
Capital Expenditures	8,084	6,133
Assets:
Assets	546,264	521,702
Food Service [Member] | Soft Pretzels [Member]
Food Service
Sales to External Customers	38,699	40,718
Food Service [Member] | Frozen Juices And Ices [Member]
Food Service
Sales to External Customers	8,315	8,201
Food Service [Member] | Churros [Member]
Food Service
Sales to External Customers	13,936	12,967
Food Service [Member] | Handhelds [Member]
Food Service
Sales to External Customers	6,146	5,158
Food Service [Member] | Bakery [Member]
Food Service
Sales to External Customers	76,601	74,431
Food Service [Member] | Other [Member]
Food Service
Sales to External Customers	3,055	2,086
Retail Supermarket [Member]
Food Service
Sales to External Customers	21,260	22,387
Depreciation and Amortization:
Depreciation and Amortization	286	316
Operating Income :
Operating Income	1,090	666
Capital Expenditures:
Capital Expenditures	156	23
Assets:
Assets	23,099	22,610
Retail Supermarket [Member] | Soft Pretzels [Member]
Food Service
Sales to External Customers	8,740	9,200
Retail Supermarket [Member] | Frozen Juices And Ices [Member]
Food Service
Sales to External Customers	9,064	9,155
Retail Supermarket [Member] | Handhelds [Member]
Food Service
Sales to External Customers	3,875	4,879
Retail Supermarket [Member] | Other [Member]
Food Service
Sales to External Customers	155	226
Retail Supermarket [Member] | Coupon Redemtion [Member]
Food Service
Sales to External Customers	(574)	(1,073)
Frozen Beverages [Member]
Food Service
Sales to External Customers	54,838	46,804
Depreciation and Amortization:
Depreciation and Amortization	3,954	3,909
Operating Income :
Operating Income	1,368	451
Capital Expenditures:
Capital Expenditures	5,064	3,518
Assets:
Assets	172,275	158,552
Frozen Beverages [Member] | Other [Member]
Food Service
Sales to External Customers	273	237
Frozen Beverages [Member] | Beverages [Member]
Food Service
Sales to External Customers	28,070	25,510
Frozen Beverages [Member] | Repair And Maintenance Service [Member]
Food Service
Sales to External Customers	17,763	15,310
Frozen Beverages [Member] | Machines Sales [Member]
Food Service
Sales to External Customers	$ 8,732	$ 5,747

XML

Note 10 (Details)	3 Months Ended
	Dec. 26, 2015 USD ($)	Dec. 27, 2014 USD ($)
Note 10 (Details) [Line Items]
Number of Reportable Segments	3
Indefinite-lived Intangible Assets Acquired	$ 0
Amortization of Intangible Assets	1,329,000	$ 1,355,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	5,100,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	2,600,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	1,800,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	1,700,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 1,400,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Goodwill, Acquired During Period	$ 0
Minimum [Member]
Note 10 (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Maximum [Member]
Note 10 (Details) [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years

XML

Note 10 (Details) - Intangible Assets by Reporting Segment - USD ($) $ in Thousands	Dec. 26, 2015	Sep. 26, 2015
Amortized intangible assets
Gross Carrying Amount	$ 91,204	$ 91,204
Accumulated Amortization	46,714	45,385
Food Service [Member]
Amortized intangible assets
Gross Carrying Amount	58,067	58,067
Accumulated Amortization	37,858	36,924
Retail Supermarket [Member]
Amortized intangible assets
Gross Carrying Amount	15,345	15,345
Accumulated Amortization	1,552	1,334
Frozen Beverages [Member]
Amortized intangible assets
Gross Carrying Amount	17,792	17,792
Accumulated Amortization	7,304	7,127
Trade Names [Member] | Food Service [Member]
Indefinite lived intangible assets
Gross Carrying Amount	13,072	13,072
Trade Names [Member] | Retail Supermarket [Member]
Indefinite lived intangible assets
Gross Carrying Amount	7,206	7,206
Trade Names [Member] | Frozen Beverages [Member]
Indefinite lived intangible assets
Gross Carrying Amount	9,315	9,315
Noncompete Agreements [Member] | Food Service [Member]
Amortized intangible assets
Gross Carrying Amount	592	592
Accumulated Amortization	545	538
Noncompete Agreements [Member] | Retail Supermarket [Member]
Amortized intangible assets
Gross Carrying Amount	160	160
Accumulated Amortization	132	114
Noncompete Agreements [Member] | Frozen Beverages [Member]
Amortized intangible assets
Gross Carrying Amount	198	198
Accumulated Amortization	198	198
Customer Relationships [Member] | Food Service [Member]
Amortized intangible assets
Gross Carrying Amount	40,797	40,797
Accumulated Amortization	34,487	33,584
Customer Relationships [Member] | Retail Supermarket [Member]
Amortized intangible assets
Gross Carrying Amount	7,979	7,979
Accumulated Amortization	1,420	1,220
Customer Relationships [Member] | Frozen Beverages [Member]
Amortized intangible assets
Gross Carrying Amount	6,678	6,678
Accumulated Amortization	6,234	6,075
License and Rights [Member] | Food Service [Member]
Amortized intangible assets
Gross Carrying Amount	3,606	3,606
Accumulated Amortization	2,826	2,802
License and Rights [Member] | Frozen Beverages [Member]
Amortized intangible assets
Gross Carrying Amount	1,601	1,601
Accumulated Amortization	$ 872	$ 854

XML

Note 10 (Details) - Goodwill - USD ($) $ in Thousands	Dec. 26, 2015	Sep. 26, 2015
Goodwill [Line Items]
Balance	$ 86,442	$ 86,442
Food Service [Member]
Goodwill [Line Items]
Balance	46,832	46,832
Retail Supermarket [Member]
Goodwill [Line Items]
Balance	3,670	3,670
Frozen Beverages [Member]
Goodwill [Line Items]
Balance	$ 35,940	$ 35,940

XML

Note 11 (Details)	3 Months Ended
	Dec. 26, 2015 USD ($)	Dec. 27, 2014 USD ($)	Sep. 26, 2015 USD ($)
Note 11 (Details) [Line Items]
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	$ 1,715,000		$ 990,000
Held-to-maturity Securities	87,772,000		66,660,000
Proceeds from Sale and Maturity of Marketable Securities	1,198,000	$ 11,601,000
Marketable Securities, Gain (Loss)	(109,000)	$ (509,000)
Four Mutual Funds [Member]
Note 11 (Details) [Line Items]
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	$ 1,300,000
Number of Funds	4
Marketable Securities	$ 17,500,000
Mutual Funds [Member]
Note 11 (Details) [Line Items]
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax			$ 827,000
Classification of Noncurrent Asset, Mutual Funds, Period	1 year
Corporate Bond Securities [Member]
Note 11 (Details) [Line Items]
Held-to-maturity Securities	$ 65,000,000
Investment Securities, Maturity Term	3 years

XML

Note 11 (Details) - Summary of Investment Securities - USD ($) $ in Thousands	Dec. 26, 2015	Sep. 26, 2015
Note 11 (Details) - Summary of Investment Securities [Line Items]
Held to Maturity - Amortized Cost	$ 87,772	$ 66,660
Held to Maturity - Gross Unrealized Gains	14	15
Held to Maturity - Gross Unrealized Losses	1,534	663
Held to Maturity - Fair Market Value	86,252	66,012
Availabe for Sale - Amortized Cost	39,206	40,514
Availabe for Sale - Gross Unrealized Gains	17	114
Availabe for Sale - Gross Unrealized Losses	1,715	990
Availabe for Sale - Fair Market Value	37,508	39,638
Corporate Bond Securities [Member]
Note 11 (Details) - Summary of Investment Securities [Line Items]
Held to Maturity - Amortized Cost	87,772	66,660
Held to Maturity - Gross Unrealized Gains	14	15
Held to Maturity - Gross Unrealized Losses	1,534	663
Held to Maturity - Fair Market Value	86,252	66,012
Mutual Funds [Member]
Note 11 (Details) - Summary of Investment Securities [Line Items]
Held to Maturity - Amortized Cost	18,733
Held to Maturity - Gross Unrealized Losses	1,262
Held to Maturity - Fair Market Value	17,471
Availabe for Sale - Amortized Cost		20,041
Availabe for Sale - Gross Unrealized Losses		827
Availabe for Sale - Fair Market Value		19,214
Preferred Stock [Member]
Note 11 (Details) - Summary of Investment Securities [Line Items]
Availabe for Sale - Amortized Cost	20,473	20,473
Availabe for Sale - Gross Unrealized Gains	17	114
Availabe for Sale - Gross Unrealized Losses	453	163
Availabe for Sale - Fair Market Value	$ 20,037	$ 20,424

XML

Note 11 (Details) - Held to Maturity Securities by Contractual Maturity - USD ($) $ in Thousands	Dec. 26, 2015	Sep. 26, 2015
Held to Maturity Securities by Contractual Maturity [Abstract]
Due after one year through five years	$ 86,685	$ 63,522
Due after one year through five years	85,191	63,010
Due after five years through ten years	1,087	3,138
Due after five years through ten years	1,061	3,002
Total held to maturity securities	87,772	66,660
Total held to maturity securities	86,252	66,012
Long term held to maturity securities	87,772	66,660
Long term held to maturity securities	$ 86,252	$ 66,012

XML

Note 12 (Details) - Changes to the Components of Other Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Dec. 26, 2015	Dec. 27, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (10,897)	$ (5,988)
Other comprehensive (loss) income before reclassifications	(1,532)	(4,093)
Amounts reclassified from accumulated other comprehensive income	70	216
Ending Balance	(12,359)	(9,865)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(10,021)	(4,632)
Other comprehensive (loss) income before reclassifications	(640)	(1,955)
Ending Balance	(10,661)	(6,587)
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(876)	(1,356)
Other comprehensive (loss) income before reclassifications	(892)	(2,138)
Amounts reclassified from accumulated other comprehensive income	70	216
Ending Balance	$ (1,698)	$ (3,278)