Marketable Securities

3 Months Ended

Mar. 29, 2025

Marketable Securities.

Marketable Securities

(3) Marketable Securities

The Company’s marketable securities are all classified as available-for-sale within “Current Assets” in the Company’s Condensed Consolidated Balance Sheets. The 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.

WEIS MARKETS, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

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. Unrealized gains and losses on debt securities are recognized in “Accumulated other comprehensive income (loss)” on the Company’s Condensed Consolidated Balance Sheets. 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 Condensed Consolidated Statements of Income. The Company recognized investment income of $4.8 million in the thirteen weeks ended March 29, 2025, which included an unrealized gain in equity securities of $1.1 million. In the thirteen weeks ended March 30, 2024, the Company recognized investment income of $4.1 million, which included an unrealized gain in equity securities of $234 thousand.

Marketable securities, as of March 29, 2025 and December 28, 2024, consisted of:

			Gross		Gross
(amounts in thousands)	Amortized		Unrealized		Unrealized		Fair
March 29, 2025	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	6,995
Level 2
Corporate and municipal bonds	$	153,734	$	2,657	$	(7,165)		149,226
Commercial paper		13,634		82		—		13,716
Total	$	167,368	$	2,739	$	(7,165)	$	169,937

			Gross		Gross
(amounts in thousands)	Amortized		Unrealized		Unrealized		Fair
December 28, 2024	Cost		Holding Gains		Holding Losses		Value
Available-for-sale:
Level 1
Equity securities							$	5,930
Level 2
Corporate and municipal bonds	$	171,258	$	2,525	$	(6,583)		167,201
Commercial paper		18,671		169		—		18,840
Total	$	189,930	$	2,695	$	(6,583)	$	191,971

WEIS MARKETS, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Maturities of marketable securities classified as available-for-sale at March 29, 2025, were as follows:

	Amortized		Fair
(amounts in thousands)	Cost		Value
Available-for-sale:
Due within one year	$	42,941	$	43,236
Due after one year through five years		62,834		60,574
Due after five years through ten years		11,959		11,220
Due after ten years		49,634		47,912
Total	$	167,368	$	162,942

SERP Investments

The Company also maintains a non-qualified supplemental executive retirement plan for certain of its employees 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 Condensed 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 Condensed Consolidated Statements of Income. The Company recognized an investment loss of $357 thousand and investment income of $1.4 million in the thirteen weeks ended March 29, 2025 and March 30, 2024, respectively. The changes in the underlying liability to the employees are recorded in “Other income (expense).”