Marketable Securities

12 Months Ended

Dec. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

Note 2    Marketable Securities

The Company’s marketable securities are all classified as available-for-sale within “Current Assets” in the Company’s Consolidated Balance Sheets. Financial Accounting Standards Board (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 four public company equity securities, for which quoted market prices are available. The Company’s bond and commercial paper portfolio is valued using Level 2 inputs. The Company’s corporate and municipal bonds and commercial paper 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 advisory 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.

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. Both interest and dividends are recognized in “Investment income and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment income of $9.5 million, $3.8 million and $1.6 million which included unrealized losses of $275 thousand, $1.3 million and $900 thousand in the fiscal years ended December 30, 2023, December 31, 2022 and December 25, 2021, respectively.

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

			Gross		Gross
(amounts in thousands)	Amortized		Unrealized		Unrealized		Fair
December 30, 2023	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	4,910
Level 2
Corporate and municipal bonds	$	177,972	$	3,853	$	(6,553)		175,272
Commercial Paper		44,732		1,076		—		45,808
Total	$	222,704	$	4,929	$	(6,553)	$	225,991

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 December 30, 2023, were as follows:

	Amortized		Fair
(amounts in thousands)	Cost		Value
Available-for-sale:
Due within one year	$	93,503	$	95,188
Due after one year through five years		77,187		74,573
Due after five years through ten years		16,308		15,351
Due after ten years		35,706		35,968
Total	$	222,704	$	221,080

SERP Investments

The Company also maintains a non-qualified supplemental executive retirement plan (SERP) 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 and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment income of $3.7 million in the fiscal year ended December 30, 2023, investment loss of $3.8 million in the fiscal year ended December 31, 2022 and investment income of $3.4 million in the fiscal year ended December 25, 2021, respectively. The changes in the underlying liability to the associates are recorded in “Other income (expense).”