WORKERS' COMPENSATION INSURANCE AND RESERVES

12 Months Ended

Dec. 28, 2025

Workers' Compensation Insurance and Reserves [Abstract]

WORKERS' COMPENSATION INSURANCE AND RESERVES

We provide workers’ compensation insurance for our associates and permanent employees. The majority of our current workers’ compensation insurance policies cover claims for a particular event above our $5.0 million deductible limit, on a “per occurrence” basis. This results in our being substantially self-insured.

Our workers’ compensation reserve for claims below the deductible limit is discounted to its estimated net present value. The discount rates used to estimate net present value are based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred and the weighted average duration of the payments against the self-insured claims. Payments made against self-insured claims are made over a weighted average period of approximately 3 years as of

December 28, 2025. The weighted average discount rate was 3.1% and 2.7% at December 28, 2025 and December 29, 2024, respectively.

The following table presents a reconciliation of the undiscounted workers’ compensation reserve to the discounted workers’ compensation reserve for the periods presented:


(in thousands)	December 28, 2025		December 29, 2024
Undiscounted workers’ compensation reserve (1)	$	107,480	$	152,803
Less discount on workers’ compensation reserve	10,736		13,011
Workers’ compensation reserve, net of discount	96,744		139,792
Less current portion	24,193		34,729
Long-term portion	$	72,551	$	105,063

(1)Amounts shown are net of discount related to claims above our self-insured limits (“excess claims”).

Payments made against self-insured claims were $45.3 million, $42.1 million and $45.0 million for the fiscal years ended December 28, 2025, December 29, 2024 and December 31, 2023, respectively.

Our workers’ compensation reserve includes estimated expenses related to claims above our self-insured limits (“excess claims”), and we record a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance carriers. We discount this reserve and corresponding receivable to its estimated net present value using the discount rates based on average returns of “risk-free” U.S. Treasury instruments available during the year in which the liability was incurred and the weighted average duration of the payments against the excess claims. The rates used to discount excess claims incurred during the fiscal years ended December 28, 2025 and December 29, 2024 were 3.9% and 4.4%, respectively. The discounted workers’ compensation reserve for excess claims were $25.7 million and $38.6 million, as of December 28, 2025 and December 29, 2024, respectively. The discounted receivables from insurance companies, net of allowance for credit loss, were $25.7 million and $38.3 million as of December 28, 2025 and December 29, 2024, respectively.

The table below presents the estimated future payout of our discounted workers’ compensation claims reserve for the next five years and thereafter as of December 28, 2025:


(in thousands)
2026	$	24,193
2027	13,059
2028	7,237
2029	4,563
2030	3,199
Thereafter	18,793
Sub-total	71,044
Excess claims (1)	25,700
Total	$	96,744

(1)Estimated expenses related to claims above our self-insured limits for which we have a corresponding receivable for the insurance coverage based on contractual policy agreements.

Workers’ compensation cost consists primarily of changes in self-insurance reserves net of changes in discount, monopolistic jurisdictions’ premiums, insurance premiums and other miscellaneous expenses. Workers’ compensation cost of $21.6 million, $7.4 million and $20.1 million was recorded in cost of services on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal years ended December 28, 2025, December 29, 2024 and December 31, 2023, respectively.