Marketable Securities | (3) Marketable Securities The Company’s marketable securities are all classified as available-for-sale within “Current Assets” in the Company’s Consolidated Balance Sheets. FASB has established three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 The Company’s marketable securities valued using Level 1 inputs include highly liquid equity securities, for which quoted market prices are available. The Company’s municipal bond portfolio is valued using Level 2 inputs. The Company’s municipal bonds are valued using a combination of pricing for similar securities, recently executed transactions, cash flow models with yield curves and other pricing models utilizing observable inputs, which are considered Level 2 inputs. For Level 2 investment valuation, the Company utilizes standard pricing procedures of its investment advisory firm which includes various third-party pricing services. These procedures also require specific price monitoring practices as well as pricing review reports, valuation oversight and pricing challenge procedures to maintain the most accurate representation of investment fair market value. The Company accrues interest on its bond portfolio throughout the life of each bond held. Dividends from the equity securities are recognized as received. Interest, dividends and unrealized gains and losses on equity securities are recognized in “Investment income (loss) and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment income of $318 thousand in the thirteen weeks ended June 26, 2021, which included an unrealized loss in equity securities of $320 thousand. In the thirteen weeks ended June 27, 2020, the Company recognized investment income of $458 thousand, which included an unrealized loss in equity securities of $91 thousand. In the twenty-six weeks ended June 26, 2021, the Company recognized investment income of thousand. In the twenty-six weeks ended June 27, 2020, the Company recognized investment losses of Marketable securities, as of June 26, 2021 and December 26, 2020, consisted of: Gross Gross (amounts in thousands) Amortized Unrealized Unrealized Fair June 26, 2021 Cost Holding Gains Holding Losses Value Available-for-sale: Level 1 Equity securities $ 7,328 Level 2 Corporate and municipal bonds $ 104,437 $ 5,040 $ (1,264) 108,213 $ 104,437 $ 5,040 $ (1,264) $ 115,541 Gross Gross (amounts in thousands) Amortized Unrealized Unrealized Fair December 26, 2020 Cost Holding Gains Holding Losses Value Available-for-sale: Level 1 Equity securities $ 7,410 Level 2 Corporate and municipal bonds $ 99,861 $ 5,723 $ (1,139) 104,445 $ 99,861 $ 5,723 $ (1,139) $ 111,855 Maturities of marketable securities classified as available-for-sale at June 26, 2021, were as follows: Amortized Fair (amounts in thousands) Cost Value Available-for-sale: Due within one year $ 7,086 $ 7,123 Due after one year through five years 45,031 46,693 Due after five years through ten years 52,320 54,397 $ 104,437 $ 108,213 SERP Investments The Company also maintains a non-qualified supplemental executive retirement plan for certain of its associates which allows them to defer income to future periods. Participants in the plans earn a return on their deferrals based on mutual fund investments. The Company chooses to invest in the underlying mutual fund investments to offset the liability associated with the non-qualified deferred compensation plans. Such investments are reported on the Company’s Consolidated Balance Sheets as “SERP investment,” are classified as trading securities and are measured at fair value using Level 1 inputs with gains and losses included in “Investment income (loss) and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment income of $1.8 million in the thirteen weeks ended June 26, 2021, and investment income of $2.6 million in the same period in 2020. The Company recognized investment income of $2.6 million and investment loss of $58 thousand in the twenty-six weeks ended June 26, 2021, and June 27, 2020, respectively. The changes in the underlying liability to the associates are recorded in “Other income (expense).” |