Marketable Securities

9 Months Ended

Sep. 28, 2013

Marketable Securities [Abstract]

Marketable Securities

(3) Marketable Securities
The Company's marketable securities are all classified as available-for-sale. FASB has established three levels of inputs that may be used to measure fair value:
Level 1 Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2 Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and
Level 3 Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.
The Company's marketable securities valued using Level 1 inputs include highly liquid equity securities, for which quoted market prices are available. The Company's bond portfolio is valued using Level 2 inputs. The Company's bonds are valued using a combination of pricing for similar securities, recently executed transactions, cash flow models with yield curves and other pricing models utilizing observable inputs, which are considered Level 2 inputs.

For Level 2 investment valuation, the Company utilizes standard pricing procedures of its investment brokerage firm(s) which include various third party pricing services. These procedures also require specific price monitoring practices as well as pricing review reports, valuation oversight and pricing challenge procedures to maintain the most accurate representation of investment fair market value. In addition, the Company engages an independent firm to value a sample of the Company's municipal bond holdings in order to validate the investment's assigned fair value.

Marketable securities, as of September 28, 2013 and December 29, 2012, consisted of:

				Gross		Gross
				Unrealized		Unrealized
(dollars in thousands)		Amortized		Holding		Holding		Fair
September 28, 2013		Cost		Gains		Losses		Value
Available-for-sale:
Level 1
Equity securities	$	970	$	6,894	$	---	$	7,864
Level 2
Municipal bonds		66,697		709		(1,581)		65,825
	$	67,667	$	7,603	$	(1,581)	$	73,689

				Gross		Gross
				Unrealized		Unrealized
(dollars in thousands)		Amortized		Holding		Holding		Fair
December 29, 2012		Cost		Gains		Losses		Value
Available-for-sale:
Level 1
Equity securities	$	1,136	$	7,714	$	---	$	8,850
Level 2
Municipal bonds		72,840		1,308		(497)		73,651
	$	73,976	$	9,022	$	(497)	$	82,501

Maturities of marketable securities classified as available-for-sale at September 28, 2013, were as follows:

		Amortized		Fair
(dollars in thousands)		Cost		Value
Available-for-sale:
Due within one year	$	5,431	$	5,140
Due after one year through five years		43,044		42,529
Due after five years through ten years		16,720		16,654
Due after ten years		1,502		1,502
Equity securities		970		7,864
	$	67,667	$	73,689