Marketable Debt Securities

3 Months Ended

Nov. 23, 2024

Marketable Debt Securities

Marketable Debt Securities

Note E – Marketable Debt Securities

Marketable debt securities are carried at fair value, with unrealized gains and losses, net of income taxes, recorded in Accumulated other comprehensive loss until realized, and any credit risk related losses are recognized in net income in the period incurred. The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.”

The Company’s available-for-sale marketable debt securities consisted of the following:

	November 23, 2024
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value
Corporate debt securities	$	34,366	$	57	$	(243)	$	34,180
Government bonds		50,628		274		(714)		50,188
Mortgage-backed securities		22,014		59		(279)		21,794
Asset-backed securities and other		14,481		34		(34)		14,481
	$	121,489	$	424	$	(1,270)	$	120,643

	August 31, 2024
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value
Corporate debt securities	$	32,355	$	183	$	(78)	$	32,460
Government bonds		50,251		483		(493)		50,241
Mortgage-backed securities		22,859		326		(95)		23,090
Asset-backed securities and other		16,327		66		(26)		16,367
	$	121,792	$	1,058	$	(692)	$	122,158

The contractual maturities of the Company’s available for sale marketable debt securities are as follows:

	November 23, 2024
	Amortized		Fair
(in thousands)	Cost Basis		Value
Due within one year	$	35,904	$	34,335
Due after one year through five years		50,134		51,471
Due after five years through ten years		18,540		18,085
Due after ten years		16,911		16,752
	$	121,489	$	120,643

At November 23, 2024, the Company held 92 securities that are in an unrealized loss position of approximately $1.3 million. In evaluating whether a credit loss exists for the securities, the Company considers factors such as the 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. An allowance for credit losses was deemed unnecessary given consideration of the factors above. The Company did not realize any material gains or losses on its marketable debt securities during the twelve week period ended November 23, 2024, and the comparable prior year period.

Included above in total available-for-sale marketable debt securities are $111.5 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 as of November 23, 2024, and August 31, 2024.