Fair Value Measurements

12 Months Ended

Dec. 31, 2025

Note 10 — Fair Value Measurements

The Company’s current assets and current liabilities are financial instruments and most of these items (other than marketable securities, restricted marketable securities, inventories and supplies and the short-term portion of deferred compensation assets and liabilities) are recorded at cost in the Consolidated Balance Sheets. The estimated fair value of these financial instruments approximates their carrying value due to their short-term nature. The carrying value of the Company’s line of credit represents the outstanding amount of the borrowings, which approximates fair value. The Company’s financial assets that are measured at fair value on a recurring basis are its marketable securities, restricted marketable securities and deferred compensation funding. The recorded values of all of the financial instruments approximate their current fair values because of their nature, stated interest rates and respective maturity dates or durations.

The Company’s marketable securities and restricted marketable securities are held by the Company’s captive insurance company to satisfy capital requirements of the state regulator related to captive insurance companies. Restricted marketable securities are held by the Company’s captive insurance company as collateral for certain insurance coverages. Such securities are primarily comprised of municipal bonds, treasury notes, corporate bonds and other government bonds which are classified as available-for-sale and are reported at fair value. Unrealized gains and losses associated with these investments are included in Unrealized gain (loss) on available-for-sale marketable securities, net of taxes within the Consolidated Statements of Comprehensive Income. Marketable securities and restricted marketable securities are classified within Level 2 of the fair value hierarchy, as these securities are measured using quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable. Such valuations are determined by a third-party pricing service. For the years ended December 31, 2025, 2024 and 2023, the Company recorded unrealized gains, net of taxes of $1.9 million, unrealized losses, net of taxes of $0.5 million and unrealized gains, net of taxes of $1.6 million on marketable securities, respectively.

For the years ended December 31, 2025, 2024 and 2023, the Company received total proceeds, less the amount of interest received, of $23.2 million, $67.0 million and $2.0 million, respectively, from sales of available-for-sale securities. These sales resulted in realized gains of $0.2 million for the year ended December 31, 2025 and realized losses of $0.4 million and less than $0.1 million for the years ended December 31, 2024 and 2023, respectively. Such gains and losses were recorded in Investment and other income, net in the Consolidated Statements of Comprehensive Income. The basis for the sale of these securities was the specific identification of each security sold during the period.

As part of a prior period acquisition of a prepackaged meal manufacturer, the Company agreed to pay royalties to the seller on all future product sales. The Company records a liability for the expected future payments within Other long-term liabilities on the Consolidated Balance Sheets. The fair value of this liability is measured using forecasted sales models (Level 3). For the years ended December 31, 2025, 2024 and 2023, the Company recorded realized gains of $0.4 million, $0.6 million and $1.1 million, respectively, within Costs of services provided in the Consolidated Statements of Comprehensive Income related to the measurement of the liability at each balance sheet date.

The investments under the deferred compensation plan are accounted for as trading securities and unrealized gains or losses are recorded within Investment and other income, net in the Consolidated Statements of Comprehensive Income. The fair values of these investments are determined based on quoted market prices (Level 1) or the net asset value (“NAV”) of underlying share investments (Level 2). For the years ended December 31, 2025, 2024 and 2023, the Company recorded unrealized gains of $7.3 million, $8.3 million and $6.6 million, respectively, related to trading securities still held at the respective reporting dates.

The following table summarizes the contractual maturities of debt securities held as of December 31, 2025 and 2024 which are classified within “Marketable securities, at fair value” and “Restricted marketable securities, at fair value” in the Consolidated Balance Sheets:


	Debt Securities — Available-for-Sale
Contractual maturity:	December 31, 2025		December 31, 2024

Marketable securities, at fair value
Maturing in one year or less	$	4,424	$	653
Maturing in second year through fifth year	10,850		23,341
Maturing in sixth year through tenth year	21,962		13,113
Maturing after ten years	5,538		13,428
Total marketable securities, at fair value	$	42,774	$	50,535
Restricted marketable securities, at fair value
Maturing in one year or less	$	4,635	$	2,474
Maturing in second year through fifth year	15,011		15,774
Maturing in sixth year through tenth year	9,653		5,837
Maturing after ten years	1,053		1,020
Total restricted marketable securities, at fair value	$	30,352	$	25,105
Total debt securities — available-for-sale	$	73,126	$	75,640

The following tables provide fair value measurement information for the Company’s financial assets, including marketable securities, restricted marketable securities and deferred compensation fund investments as of December 31, 2025 and 2024:


	As of December 31, 2025
					Fair Value Measurement Using:
(amounts in thousands)	Carrying Amount		Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Marketable securities
Municipal bonds — taxable	$	4,046	$	4,046	$	—	$	4,046	$	—
Municipal bonds — non-taxable	38,728		38,728		—		38,728		—
Total marketable securities	$	42,774	$	42,774	$	—	$	42,774	$	—

Restricted marketable securities
U.S. treasury bonds	$	10,037	$	10,037	$	—	$	10,037	$	—
U.S. government agency bonds	1,215		1,215		—		1,215		—
International fixed income bonds	736		736		—		736		—
Corporate bonds	8,858		8,858		—		8,858		—
Municipal bonds — taxable	9,506		9,506		—		9,506		—
Total restricted marketable securities	$	30,352	$	30,352	$	—	$	30,352	$	—

Deferred compensation plan
Money market1	$	1,965	$	1,965	$	—	$	1,965	$	—
Commodities	361		361		361		—		—
Fixed income	5,190		5,190		5,190		—		—
International	6,320		6,320		6,320		—		—
Large cap blend	8,513		8,513		8,513		—		—
Large cap growth	20,425		20,425		20,425		—		—
Large cap value	7,485		7,485		7,485		—		—
Mid cap blend	4,059		4,059		4,059		—		—
Real estate	389		389		389		—		—
Small cap blend	3,438		3,438		3,438		—		—
Deferred compensation plan2	$	58,145	$	58,145	$	56,180	$	1,965	$	—


	As of December 31, 2024
					Fair Value Measurement Using:
(amounts in thousands)	Carrying Amount		Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Marketable securities
Municipal bonds — taxable	$	9,600	$	9,600	$	—	$	9,600	$	—
Municipal bonds — non-taxable	40,935		40,935		—		40,935		—
Total marketable securities	$	50,535	$	50,535	$	—	$	50,535	$	—

Restricted marketable securities
U.S. treasury bonds	$	7,309	$	7,309	$	—	$	7,309	$	—
U.S. government agency bonds	1,218		1,218		—		1,218		—
International fixed income bonds	652		652		—		652		—
Corporate bonds	6,796		6,796		—		6,796		—
Municipal bonds — taxable	9,130		9,130		—		9,130		—
Total restricted marketable securities	$	25,105	$	25,105	$	—	$	25,105	$	—

Deferred compensation plan
Money Market1	$	1,961	$	1,961	$	—	$	1,961	$	—
Commodities	295		295		295		—		—
Fixed income	4,417		4,417		4,417		—		—
International	4,999		4,999		4,999		—		—
Large cap blend	6,669		6,669		6,669		—		—
Large cap growth	18,524		18,524		18,524		—		—
Large cap value	6,964		6,964		6,964		—		—
Mid cap blend	3,957		3,957		3,957		—		—
Real estate	372		372		372		—		—
Small cap blend	2,980		2,980		2,980		—		—
Deferred compensation plan2	$	51,138	$	51,138	$	49,177	$	1,961	$	—

1.The fair value of the money market is based on the NAV of the shares held by the plan at the end of the period. The money market fund includes short-term United States dollar denominated money market instruments and the NAV is determined by the custodian of the fund. The money market fund can be redeemed at its NAV at the measurement date as there are no significant restrictions on the ability to sell this investment.

2.The deferred compensation plan carrying amounts and total fair value amounts as of December 31, 2025 and 2024 are inclusive of $2.2 million and $1.5 million, respectively, of holdings expected to be paid to former employees within the next twelve months which were recorded under Prepaid expenses and other assets in the Company’s Consolidated Balance Sheets.

The following table shows the amortized cost, unrealized gains and losses, and estimated fair value of the Company’s debt securities as of December 31, 2025 and 2024:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Credit Impairment Losses1
December 31, 2025	(in thousands)
Type of security:
Marketable securities




Municipal bonds — taxable	$	4,115	$	1	$	(70)	$	4,046	$	—
Municipal bonds — non-taxable	39,827		124		(1,223)		38,728		—
Total marketable securities	$	43,942	$	125	$	(1,293)	$	42,774	$	—
Restricted marketable securities
U.S. treasury bonds	$	9,904	$	148	$	(15)	$	10,037	$	—
U.S. government agency bonds	1,210		5		—		1,215		—
International fixed income bonds	733		3		—		736		—
Corporate bonds	8,682		177		(1)		8,858		—
Municipal bonds — taxable	9,222		284		—		9,506		—

Total restricted marketable securities	29,751		617		(16)		30,352		—
Total debt securities — available-for-sale	$	73,693	$	742	$	(1,309)	$	73,126	$	—

December 31, 2024
Type of security:
Marketable securities
Municipal bonds — taxable	$	10,276	$	—	$	(676)	$	9,600	$	—
Municipal bonds — non-taxable	43,255		—		(2,320)		40,935		—
Total marketable securities	$	53,531	$	—	$	(2,996)	$	50,535	$	—
Restricted marketable securities
U.S. treasury bonds	$	7,276	$	38	$	(5)	$	7,309	$	—
U.S. government agency bonds	1,208		10		—		1,218		—
International fixed income bonds	647		5		—		652		—
Corporate bonds	6,780		30		(14)		6,796		—
Municipal bonds — taxable	9,131		40		(41)		9,130		—
Total restricted marketable securities	$	25,042	$	123	$	(60)	$	25,105	$	—
Total debt securities — available-for-sale	$	78,573	$	123	$	(3,056)	$	75,640	$	—

1.The Company performs a credit impairment loss assessment quarterly on an individual security basis. As of December 31, 2025 and 2024, no allowance for credit loss has been recognized as the issuers of these securities have not established a cause for default and various rating agencies have reaffirmed each security’s investment grade status. The fair value of these securities have fluctuated since the purchase date as market interest rates fluctuate. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell before the recovery of the securities’ amortized cost basis.