Marketable Securities

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

(3) Marketable Securities

The Company’s marketable securities are all classified as available-for-sale within “Current Assets” in the Company’s Consolidated Balance Sheets. FASB has established three levels of inputs that may be used to measure fair value:

Level 1Observable inputs such as quoted prices in active markets for identical assets or liabilities;

Level 2Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and

Level 3Unobservable 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 and commercial paper portfolio is 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 advisory firm which includes 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.

The Company accrues interest on its bond and commercial paper portfolio throughout the life of each bond and commercial paper held. Dividends from the equity securities are recognized as received. Interest, dividends and unrealized gains and losses on equity securities are recognized in “Investment income (loss) and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment gain of $2.2 million in the thirteen weeks ended September 30, 2023, which included an unrealized loss in equity securities of $437 thousand. In the thirteen weeks ended September 24, 2022, the Company recognized investment loss of $261 thousand, which included an unrealized loss in equity securities of $1.4 million. In the thirty-nine weeks ended September 30, 2023, the Company recognized investment income of $6.3 million, which included an unrealized loss in equity securities of $815 thousand. In the thirty-nine weeks ended September 24, 2022, the Company recognized investment income of $1.4 million, which included an unrealized loss in equity securities of $1.6 million.

Marketable securities, as of September 30, 2023 and December 31, 2022, consisted of:

			Gross		Gross
(amounts in thousands)	Amortized		Unrealized		Unrealized		Fair
September 30, 2023	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	4,370
Level 2
Corporate and municipal bonds	$	172,623	$	1,609	$	(10,168)		164,063
Commercial Paper		50,666		618		—		51,285
Total	$	223,289	$	2,227	$	(10,168)	$	219,718

			Gross		Gross
(amounts in thousands)	Amortized		Unrealized		Unrealized		Fair
December 31, 2022	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	5,185
Level 2
Corporate and municipal bonds	$	190,025	$	2,110	$	(10,901)		181,234
Total	$	190,025	$	2,110	$	(10,901)	$	186,419

Maturities of marketable securities classified as available-for-sale at September 30, 2023, were as follows:

	Amortized		Fair
(amounts in thousands)	Cost		Value
Available-for-sale:
Due within one year	$	88,980	$	89,498
Due after one year through five years		83,664		79,256
Due after five years through ten years		17,957		15,904
Due after ten years		32,688		30,690
Total	$	223,289	$	215,348

SERP Investments

The Company also maintains a non-qualified supplemental executive retirement plan for certain of its associates which allows them to defer income to future periods. Participants in the plans earn a return on their deferrals based on mutual fund investments. The Company chooses to invest in the underlying mutual fund investments to offset the liability associated with the non-qualified deferred compensation plans. Such investments are reported on the Company’s Consolidated Balance Sheets as “SERP investment,” are classified as trading securities and are measured at fair value using Level 1 inputs with gains and losses included in “Investment income (loss) and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment loss of $774 thousand in the thirteen weeks ended September 30, 2023, and investment loss of $1.2 million in the same period in 2022. The Company recognized investment income of $1.4 million and investment loss of $4.8 million in the thirty-nine weeks ended September 30, 2023, and September 24, 2022, respectively. The changes in the underlying liability to the associates are recorded in “Other income (expense).”