FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 24, 2020

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis as of June 24, 2020 and December 25, 2019, and indicate the classification within the fair value hierarchy.

Cash, Cash Equivalents and Marketable Securities

The following tables summarize our cash, cash equivalents and marketable securities by significant investment categories as of June 24, 2020 and December 25, 2019:


		June 24, 2020
			Cost Basis			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value			Cash and Cash Equivalents			Marketable Securities
Cash			$	173,984		$	—		$	—		$	173,984		$	173,984		$	—
Level 1:
	Money market funds	—			—			—			—			—			—
	Mutual funds	16,783			50			—			16,833			—			16,833


Total			$	190,767		$	50		$	—		$	190,817		$	173,984		$	16,833


		December 25, 2019
			Cost Basis			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value			Cash and Cash Equivalents			Marketable Securities
Cash			$	32,094		$	—		$	—		$	32,094		$	32,094		$	—
Level 1:
	Money market funds	5,005			—			—			5,005			5,005			—
	Mutual funds	36,436			72			—			36,508			—			36,508


Total			$	73,535		$	72		$	—		$	73,607		$	37,099		$	36,508

A summary of other income (loss) from equity securities recognized during the thirteen and twenty-six weeks ended June 24, 2020 and June 26, 2019 is as follows:


		Thirteen Weeks Ended												Twenty-Six Weeks Ended
				June 24 2020				June 26 2019				June 24 2020				June 26 2019
Equity securities:
	Dividend income	$	66			$	351			$	250			$	743

	Realized gain (loss) on sale of investments	—				36				79				22
	Unrealized gain (loss) on equity securities	334				74				(22)				231
Total				$	400			$	461			$	307			$	996

A summary of equity securities sold and gross realized gains and losses recognized during the thirteen and twenty-six weeks ended June 24, 2020 and June 26, 2019 is as follows:


		Thirteen Weeks Ended									Twenty-Six Weeks Ended
				June 24 2020			June 26 2019			June 24 2020			June 26 2019
Equity securities:
	Gross proceeds from sales and redemptions	$	—		$	12,000		$	20,000		$	27,000
	Cost basis of sales and redemptions	—			11,964			19,921			26,978
	Gross realized gains included in net income (loss)	—			36			79			36
	Gross realized losses included in net income (loss)	—			—			—			(14)

Realized gains and losses are determined on a specific identification method and are included in other income, net on the Condensed Consolidated Statements of Income (Loss). As of June 24, 2020 and December 25, 2019, there was no decline in the market value of our marketable securities investment portfolio.

Other Financial Instruments

The carrying value of our other financial instruments, including accounts receivable, accounts payable, and accrued expenses as of June 24, 2020 and December 25, 2019 approximated their fair value due to the short-term nature of these financial instruments.

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Assets and liabilities that are measured at fair value on a non-recurring basis include our long-lived assets, operating lease right-of-use assets and indefinite-lived intangible assets. During the twenty-six weeks ended June 24, 2020, we recognized an impairment charge of $1,132 at one location. Of the total impairment charge, $736 was attributed to property and equipment held and used, $383 was attributed to operating lease right-of-use assets, and $13 was attributed to finance lease right-of-use assets. The asset impairment charge is included in Impairment and loss on disposal of assets on the Condensed Consolidated Statement of Income (Loss). The fair values of assets were determined using an income-based approach and are classified as Level 3 within the fair value hierarchy. Significant inputs include projections of future cash flows, discount rates, Shack sales and profitability. There were no impairment charges recognized during the thirteen weeks ended June 24, 2020.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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