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Marketable Securities | 12 Months Ended
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Dec. 30, 2017
Investments, Debt and Equity Securities [Abstract] |
Marketable Securities | 3. Marketable Securities The FASB ASC topic entitled Fair Value Measurements and Disclosures defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The accounting guidance classifies the inputs used to measure fair value into the following hierarchy:
| Level 1 | Unadjusted quoted prices in active markets for identical assets or liability
| Level 2 | Observable inputs for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability
| Level 3 | Unobservable inputs for the asset or liability
The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Valuation is based on prices obtained from an independent pricing vendor using both market and income approaches. The primary inputs to the valuation include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, and credit spreads. The method described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Available-for-sale securities measured at fair value on a recurring basis are summarized below:
|  | Fair Value Measurements as of December 30, 2017 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
U.S. Treasury securities |  | $ | 19,337 |  |  | $ | - |  |  | $ | 19,337 |  |  | $ | - |
Agency securities |  |  | 43,361 |  |  |  | - |  |  |  | 43,361 |  |  |  | - |
Mortgage-backed securities |  |  | 174,615 |  |  |  | - |  |  |  | 174,615 |  |  |  | - |
Corporate securities |  |  | 816,793 |  |  |  | - |  |  |  | 816,793 |  |  |  | - |
Municipal securities |  |  | 186,105 |  |  |  | - |  |  |  | 186,105 |  |  |  | - |
Other |  |  | 181,509 |  |  |  | - |  |  |  | 181,509 |  |  |  | - |
Total |  | $ | 1,421,720 |  |  | $ | - |  |  | $ | 1,421,720 |  |  | $ | - |
|  | Fair Value Measurements as of December 31, 2016 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
U.S. Treasury securities |  | $ | 29,034 |  |  | $ | - |  |  | $ | 29,034 |  |  | $ | - |
Agency securities |  |  | 59,541 |  |  |  | - |  |  |  | 59,541 |  |  |  | - |
Mortgage-backed securities |  |  | 230,823 |  |  |  | - |  |  |  | 230,823 |  |  |  | - |
Corporate securities |  |  | 893,725 |  |  |  | - |  |  |  | 893,725 |  |  |  | - |
Municipal securities |  |  | 176,168 |  |  |  | - |  |  |  | 176,168 |  |  |  | - |
Other |  |  | 90,946 |  |  |  | - |  |  |  | 90,946 |  |  |  | - |
Total |  | $ | 1,480,237 |  |  | $ | - |  |  | $ | 1,480,237 |  |  | $ | - |
Marketable securities classified as available-for-sale securities are summarized below:
|  | Available-For-Sale Securities as of December 30, 2017 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Treasury securities |  | $ | 19,591 |  |  | $ | - |  |  | $ | (254 | ) |  | $ | 19,337 |
Agency securities |  |  | 44,191 |  |  |  | 1 |  |  |  | (831 | ) |  |  | 43,361 |
Mortgage-backed securities |  |  | 180,470 |  |  |  | 13 |  |  |  | (5,868 | ) |  |  | 174,615 |
Corporate securities |  |  | 830,447 |  |  |  | 136 |  |  |  | (13,790 | ) |  |  | 816,793 |
Municipal securities |  |  | 187,999 |  |  |  | 110 |  |  |  | (2,004 | ) |  |  | 186,105 |
Other |  |  | 183,730 |  |  |  | 2 |  |  |  | (2,223 | ) |  |  | 181,509 |
Total |  | $ | 1,446,428 |  |  | $ | 262 |  |  | $ | (24,970 | ) |  | $ | 1,421,720 |
|  | Available-For-Sale Securities as of December 31, 2016 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Treasury securities |  | $ | 29,291 |  |  | $ | 31 |  |  | $ | (288 | ) |  | $ | 29,034 |
Agency securities |  |  | 60,513 |  |  |  | 19 |  |  |  | (991 | ) |  |  | 59,541 |
Mortgage-backed securities |  |  | 236,354 |  |  |  | 41 |  |  |  | (5,572 | ) |  |  | 230,823 |
Corporate securities |  |  | 914,028 |  |  |  | 252 |  |  |  | (20,555 | ) |  |  | 893,725 |
Municipal securities |  |  | 178,804 |  |  |  | 224 |  |  |  | (2,859 | ) |  |  | 176,169 |
Other |  |  | 90,934 |  |  |  | 20 |  |  |  | (9 | ) |  |  | 90,945 |
Total |  | $ | 1,509,924 |  |  | $ | 587 |  |  | $ | (30,274 | ) |  | $ | 1,480,237 |
The Company’s investment policy targets low risk investments with the objective of minimizing the potential risk of principal loss. The fair value of our securities varies from period to period due to changes in interest rates, in the performance of the underlying collateral and in the credit performance of the underlying issuer, among other factors. The Company does not intend to sell the securities that have an unrealized loss shown in the table above, and it is not more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis, which may be maturity. The Company recognizes the credit component of other-than-temporary impairments of debt securities in "Other Income" and the noncredit component in "Other comprehensive income (loss)" for those securities that we do not intend to sell and for which it is not more likely than not that we will be required to sell before recovery. During 2017 and 2016, the Company did not record any material impairment charges on its outstanding securities. The amortized cost and fair value of the securities at an unrealized loss position at December 30, 2017 were $1,348,777 and $1,323,807 respectively. Approximately 80% of securities in our portfolio were at an unrealized loss position at December 30, 2017. We have the ability to hold these securities until maturity or their value is recovered. We do not consider these unrealized losses to be other than temporary credit losses because there has been no material deterioration in credit quality and no change in the cash flows of the underlying securities. We do not intend to sell the securities and it is not more likely than not that we will be required to sell the securities; therefore, no material impairment has been recorded in the accompanying condensed consolidated statement of income. The cost of securities sold is based on the specific identification method. The following tables display additional information regarding gross unrealized losses and fair value by major security type for available-for-sale securities in an unrealized loss position as of December 30, 2017 and December 31, 2016.
|  | As of December 30, 2017 |
|  | Less than 12 Consecutive Months |  |  | 12 Consecutive Months or Longer |
|  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Treasury securities |  | $ | (111 | ) |  | $ | 12,966 |  |  | $ | (143 | ) |  | $ | 6,371 |
Agency securities |  |  | (168 | ) |  |  | 16,097 |  |  |  | (663 | ) |  |  | 25,972 |
Mortgage-backed securities |  |  | (503 | ) |  |  | 19,628 |  |  |  | (5,365 | ) |  |  | 153,835 |
Corporate securities |  |  | (4,562 | ) |  |  | 439,174 |  |  |  | (9,228 | ) |  |  | 347,052 |
Municipal securities |  |  | (1,027 | ) |  |  | 125,819 |  |  |  | (977 | ) |  |  | 38,167 |
Other |  |  | (2,219 | ) |  |  | 136,147 |  |  |  | (4 | ) |  |  | 2,579 |
Total |  | $ | (8,590 | ) |  | $ | 749,831 |  |  | $ | (16,380 | ) |  | $ | 573,976 |
|  | As of December 31, 2016 |
|  | Less than 12 Consecutive Months |  |  | 12 Consecutive Months or Longer |
|  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Treasury securities |  | $ | (288 | ) |  | $ | 24,260 |  |  | $ | - |  |  | $ | - |
Agency securities |  |  | (991 | ) |  |  | 49,255 |  |  |  | - |  |  |  | - |
Mortgage-backed securities |  |  | (3,702 | ) |  |  | 159,665 |  |  |  | (1,870 | ) |  |  | 64,645 |
Corporate securities |  |  | (18,856 | ) |  |  | 765,712 |  |  |  | (1,699 | ) |  |  | 40,910 |
Municipal securities |  |  | (2,762 | ) |  |  | 130,994 |  |  |  | (97 | ) |  |  | 6,326 |
Other |  |  | (3 | ) |  |  | 4,058 |  |  |  | (6 | ) |  |  | 6,919 |
Total |  | $ | (26,602 | ) |  | $ | 1,133,944 |  |  | $ | (3,672 | ) |  | $ | 118,800 |
The amortized cost and fair value of marketable securities at December 30, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
|  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 162,045 |  |  | $ | 161,687 |
Due after one year through five years |  |  | 1,108,172 |  |  |  | 1,089,840 |
Due after five years through ten years |  |  | 160,967 |  |  |  | 155,354 |
Due after ten years |  |  | 15,244 |  |  |  | 14,839 |
|  | $ | 1,446,428 |  |  | $ | 1,421,720 |

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