Note D – Marketable Debt Securities

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


	November 17, 2018
(in thousands)	Amortized Cost Basis			Gross Unrealized Gains			Gross Unrealized Losses				Fair Value

Corporate debt securities		$	46,378		$	–		$	(751	)		$	45,627
Government bonds			30,376			4			(219	)			30,161
Mortgage-backed securities			2,902			–			(81	)			2,821
Asset-backed securities and other			50,484			–			(151	)			50,333

		$	130,140		$	4		$	(1,202	)		$	128,942


	August 25, 2018
(in thousands)	Amortized Cost Basis			Gross Unrealized Gains			Gross Unrealized Losses				Fair Value

Corporate debt securities		$	50,306		$	–		$	(684	)		$	49,622
Government bonds			28,777			–			(173	)			28,604
Mortgage-backed securities			3,248			–			(90	)			3,158
Asset-backed securities and other			53,445			–			(153	)			53,292

		$	135,776		$	–		$	(1,100	)		$	134,676

The debt securities held at November 17, 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 debt securities during the twelve week period ended November 17, 2018.

The Company holds 111 securities that are in an unrealized loss position of approximately $1.2 million at November 17, 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 debt securities are $85.9 million of marketable debt 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.