Marketable Securities

8 Months Ended

May 05, 2018

Investments, Debt and Equity Securities [Abstract]

Note D – Marketable Securities

The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” Unrealized gains (losses) on marketable securities are recorded in Accumulated other comprehensive loss. The Company’s available-for-sale marketable securities consisted of the following:


	May 5, 2018
(in thousands)	Amortized Cost Basis			Gross Unrealized Gains			Gross Unrealized Losses				Fair Value

Corporate securities		$	60,405		$	–		$	(849	)		$	59,556
Government bonds			27,165			1			(195	)			26,971
Mortgage-backed securities			3,689			–			(103	)			3,586
Asset-backed securities and other			20,304			–			(209	)			20,095

		$	111,563		$	1		$	(1,356	)		$	110,208


	August 26, 2017
(in thousands)	Amortized Cost Basis			Gross Unrealized Gains			Gross Unrealized Losses				Fair Value

Corporate securities		$	39,917		$	73		$	(13	)		$	39,977
Government bonds			31,076			49			(74	)			31,051
Mortgage-backed securities			4,850			2			(42	)			4,810
Asset-backed securities and other			25,042			28			(35	)			25,035

		$	100,885		$	152		$	(164	)		$	100,873

The debt securities held at May 5, 2018, had effective maturities ranging from less than one year to approximately three years. The Company did not realize any material gains or losses on its marketable securities during the thirty-six week period ended May 5, 2018.

The Company holds 122 securities that are in an unrealized loss position of approximately $1.4 million at May 5, 2018. The Company has the intent and ability to hold these investments until recovery of fair value or maturity, and does not deem the investments to be impaired on an other than temporary basis. In evaluating whether the securities are deemed to be impaired on an other than temporary basis, the Company considers factors such as the duration and severity of the loss position, the credit worthiness of the investee, the term to maturity and the intent and ability to hold the investments until maturity or until recovery of fair value.

Included above in total marketable securities are $84.9 million of marketable securities transferred by the Company’s insurance captive to a trust account to secure its obligations to an insurance company related to future workers’ compensation and casualty losses.