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Investment Securities
3 Months Ended
Mar. 27, 2022
Investments Debt And Equity Securities [Abstract]  
Investment Securities

Note 3. Investment Securities

The following table summarizes the Company’s available-for-sale investment securities as of March 27, 2022:

 

 

 

Amortized Cost

 

 

Unrealized Losses

 

 

Fair Value

 

   U.S. Corporate Bonds and U.S. Dollar

   Denominated Foreign Bonds

 

$

66,270

 

 

$

(1,371

)

 

$

64,899

 

   Commercial Paper

 

 

1,000

 

 

 

 

 

 

1,000

 

   U.S. Treasury

 

 

1,177

 

 

 

(25

)

 

 

1,152

 

Total

 

$

68,447

 

 

$

(1,396

)

 

$

67,051

 

The following table summarizes the Company’s available-for-sale investment securities as of December 26, 2021:

 

 

 

Amortized Cost

 

 

Unrealized Losses

 

 

Fair Value

 

   U.S. Corporate Bonds and U.S. Dollar

   Denominated Foreign Bonds

 

$

64,816

 

 

$

(364

)

 

$

64,452

 

   Commercial Paper

 

 

2,999

 

 

 

 

 

 

2,999

 

   U.S. Treasury

 

 

1,177

 

 

 

(7

)

 

 

1,170

 

Total

 

$

68,992

 

 

$

(371

)

 

$

68,621

 

 

The securities incurred unrealized losses of $1,026 and related tax benefit of $242 for the 13-weeks ended March 27, 2022. The unrealized losses in our U.S. corporate bond portfolio consist of losses on 89 diversified issuances with credit ratings ranging from BBB to AAA.  There are no individual bonds with unrealized losses exceeding $65 and only three issuances have been in a loss position greater than 12 months with aggregate unrealized losses of $124.  

The decline in fair value has resulted primarily from rising interest rates over the last 12 months and we do not believe there has been any significant decline in the creditworthiness of the issuers. We also do not believe it is likely that the bonds will be called early given the current interest rate environment and we do not have current liquidity needs that would necessitate a sale of the investments prior to maturity.  Therefore, we have not recorded an allowance for credit losses on the investment securities as of March 27, 2022.

Actual maturities may differ from contractual maturities because some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities of investment securities as of March 27, 2022 are as follows:

 

 

 

Amortized Cost

 

 

Fair Value

 

Due within one year

 

$

20,640

 

 

$

20,541

 

Due in 1-5 years

 

 

47,807

 

 

 

46,510

 

Total available-for-sale

 

$

68,447

 

 

$

67,051

 

 

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis for the periods presented:

 

 

Fair Value Measurements as of March 27, 2022, Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. Corporate Bonds and U.S. Dollar

   Denominated Foreign Bonds

 

$

 

 

$

64,899

 

 

$

 

 

$

64,899

 

   Commercial Paper

 

 

 

 

 

1,000

 

 

 

 

 

 

1,000

 

   Money Market

 

 

19,431

 

 

 

 

 

 

 

 

 

19,431

 

   U.S. Treasury

 

 

 

 

 

1,152

 

 

 

 

 

 

1,152

 

Total assets measured at fair value

 

$

19,431

 

 

$

67,051

 

 

$

 

 

$

86,482

 

 

 

 

Fair Value Measurements as of December 26, 2021, Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. Corporate Bonds and U.S. Dollar

   Denominated Foreign Bonds

 

$

 

 

$

64,452

 

 

$

 

 

$

64,452

 

   Commercial Paper

 

 

 

 

 

2,999

 

 

 

 

 

 

2,999

 

   Money Market

 

 

20,101

 

 

 

 

 

 

 

 

 

20,101

 

   U.S. Treasury

 

 

 

 

 

1,170

 

 

 

 

 

 

1,170

 

Total assets measured at fair value

 

$

20,101

 

 

$

68,621

 

 

$

 

 

$

88,722