Investments

9 Months Ended

Jul. 06, 2011

Investments, Debt and Equity Securities [Abstract]

Investments

7. Investments

Investments consisted of the following:

	July 6,			September 29,
	2011			2010
Cost	$       108,039			$           34,412
Gross unrealized gains		9,004			657
Gross unrealized losses	(300		)	(2,546		)
Fair value	$       116,743			$           32,523

Unrealized losses of marketable equity securities at July 6, 2011 relate to securities that have been in an unrealized loss position for less than 12 months. We consider several factors in determining other-than-temporary impairment losses including the current and long-term business prospects of these issuers, the length of time and relative magnitude of the price decline and our ability and intent to hold the investment until the price recovers.

Investment gains/losses are recognized when investments are sold (as determined on a specific identification basis) or as otherwise required by GAAP. The timing of realized gains and losses from sales can have a material effect on periodic earnings. However, such realized gains or losses usually have little, if any, impact on total Shareholders’ equity because the investments are carried at fair value with any unrealized gains/losses included as a component of Accumulated other comprehensive income in Shareholders’ equity.

Realized investment gains/losses were as follows:

	Twelve Weeks Ended				Forty Weeks Ended
	July 6,		July 7,		July 6,		July 7,
	2011		2010		2011		2010
Gross realized gains on sales	$         1,444		$            989		$         4,694		$         1,823
Gross realized losses on sales	$             (11	)	$               (3	)	$             (17	)	$               (3	)

From time to time, the Company enters into certain derivative options as part of its investment strategy. In accordance with FASB ASC 815, Accounting for Derivative Instruments and Hedging Activities, these options are marked to market for each reporting period and this fair value adjustment is recorded as a gain or loss in the condensed consolidated Statement of Earnings. We believe that realized investment gains/losses are often meaningless in terms of understanding reported results. Short term investment gains/losses have caused and may continue to cause significant volatility in our results.

The Company has entered into short sales on certain equity securities, that is, a transaction in which the Company sells securities it does not own. The Company’s use of short sales involves the risk that the price of the security in the open market may be higher when it is purchased in order to close out the Company’s short position, resulting in a loss to the Company. Such a loss is theoretically limitless because there are no restrictions on the potential increase in the price of a security, or any guarantee as to the price at which the Company would be able to purchase the security in the open market. Securities sold in short sale transactions and the interest and dividends payable on such securities, if any, are reflected as a liability in Accrued expenses in the condensed consolidated Balance Sheet. As of July 6, 2011, the total liability of the securities in short position was $6,407 (exclusive of short sales held by our consolidated affiliated partnerships). We had no outstanding short sales at September 29, 2010.

For the twelve weeks ended July 6, 2011, the Company recorded investment losses of $499 related to the change in fair value of securities sold short, an act which impacts earnings even though losses were not realized. For the forty weeks ended July 6, 2011, the Company recorded investment losses of $292 related to the change in fair value of derivatives and securities sold short. For the twelve and forty weeks ended July 7, 2010, the Company recorded investment gains from marking derivatives to market of $176