Fair Value Measurements

3 Months Ended

Mar. 28, 2023

Fair Value Measurements

Fair Value Measurements

(10) Fair Value Measurements

At March 28, 2023 and December 27, 2022, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximated their carrying values based on the short-term nature of these instruments. At December 27, 2022, the fair value of our credit facility approximated its carrying value since it is a variable rate credit facility (Level 2). There were no transfers among levels within the fair value hierarchy during the 13 weeks ended March 28, 2023.

The following table presents the fair values for our financial assets and liabilities measured on a recurring basis:

	Fair Value Measurements
	Level	March 28, 2023		December 27, 2022
Deferred compensation plan—assets	1	$	64,682	$	61,835
Deferred compensation plan—liabilities	1	$	(64,476)	$	(61,668)

We report the accounts of the deferred compensation plan in other assets and the corresponding liability in other liabilities in our unaudited condensed consolidated financial statements. These investments are considered trading securities and are reported at fair value based on quoted market prices. The realized and unrealized holding gains and losses related to these investments, as well as the offsetting compensation expense, are recorded in general and administrative expense in the unaudited condensed consolidated statements of income.

The following table presents the fair value of our assets measured on a nonrecurring basis:

	Fair Value Measurements
		March 28,		December 27,
	Level	2023		2022
Long-lived assets held for use	3	$	—	$	2,000

Long-lived assets held for use include the land and building for one underperforming restaurant that was impaired to fair value at December 27, 2022 using a Level 3 input.