XML 29 R14.htm IDEA: XBRL DOCUMENT
v3.24.3

Marketable Securities | 9 Months Ended
--- | ---
Sep. 28, 2024
Investments, Debt and Equity Securities [Abstract] |
Marketable Securities | 4. Marketable Securities Accounting Standards Codification Topic 820, 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 the identical asset 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 or liabilities in active markets, quoted prices for identical or similar assets or liabilities 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. Marketable securities classified as available-for-sale securities are summarized below:
|  | Available-For-Sale Securities as of September 28, 2024 |
|  | Fair Value Level |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Treasury securities |  | Level 2 |  | $ | 4,869 |  |  | $ | 20 |  |  | $ | — |  |  | $ | 4,889 |
Agency securities |  | Level 2 |  |  | 25,955 |  |  |  | 145 |  |  |  | (333 | ) |  |  | 25,767 |
Mortgage-backed securities |  | Level 2 |  |  | 34,910 |  |  |  | — |  |  |  | (3,605 | ) |  |  | 31,305 |
Corporate debt securities |  | Level 2 |  |  | 1,203,805 |  |  |  | 9,573 |  |  |  | (21,262 | ) |  |  | 1,192,116 |
Municipal securities |  | Level 2 |  |  | 274,323 |  |  |  | 508 |  |  |  | (10,435 | ) |  |  | 264,396 |
Other |  | Level 2 |  |  | 2,874 |  |  |  | — |  |  |  | (114 | ) |  |  | 2,760 |
Total |  |  |  | $ | 1,546,736 |  |  | $ | 10,246 |  |  | $ | (35,749 | ) |  | $ | 1,521,233 |
|  | Available-For-Sale Securities as of December 30, 2023 |
|  | Fair Value Level |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Treasury securities |  | Level 2 |  | $ | 2,971 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 2,972 |
Agency securities |  | Level 2 |  |  | 23,692 |  |  |  | 32 |  |  |  | (585 | ) |  |  | 23,139 |
Mortgage-backed securities |  | Level 2 |  |  | 38,743 |  |  |  | — |  |  |  | (4,731 | ) |  |  | 34,012 |
Corporate debt securities |  | Level 2 |  |  | 1,104,834 |  |  |  | 1,680 |  |  |  | (46,073 | ) |  |  | 1,060,441 |
Municipal securities |  | Level 2 |  |  | 294,240 |  |  |  | 98 |  |  |  | (18,430 | ) |  |  | 275,908 |
Other |  | Level 2 |  |  | 3,760 |  |  |  | — |  |  |  | (423 | ) |  |  | 3,337 |
Total |  |  |  | $ | 1,468,240 |  |  | $ | 1,811 |  |  | $ | (70,242 | ) |  | $ | 1,399,809 |
The primary objectives of the Company’s investment policy are to preserve capital, maintain an acceptable degree of liquidity, and maximize yield within the constraint of low credit risk. The fair value of securities varies from period to period due to changes in interest rates, the performance of the underlying collateral, and the credit performance of the underlying issuer, among other factors. Accrued interest receivable, which totale d $13,386 as of September 28, 2024, is excluded from both the fair value and amortized cost basis of available-for-sale securities and is included within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets. The Company writes off impaired accrued interest on a timely basis, generally within 30 days of the due date, by reversing interest income. No accrued interest was written off during the 39-week period ended September 28, 2024. The Company recognizes impairments relating to credit losses of available-for-sale securities through an allowance for credit losses and other income (expense) on the Company’s condensed consolidated statements of income. Impairment not relating to credit losses is recorded in accumulated other comprehensive income (loss) on the Company’s condensed consolidated balance sheets. The cost of securities sold is based on the specific identification method. Approximately 72% of securities in the Company’s portfolio were at an unrealized loss position as of September 28, 2024. 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 September 28, 2024 and December 30, 2023.
|  | As of September 28, 2024 |
|  | Less than 12 Consecutive Months |  |  | 12 Consecutive Months or Longer |  |  | Total |
|  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |
Agency securities |  | $ | — |  |  | $ | 1,000 |  |  | $ | (333 | ) |  | $ | 6,667 |  |  | $ | (333 | ) |  | $ | 7,667 |
Mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | (3,605 | ) |  |  | 31,305 |  |  |  | (3,605 | ) |  |  | 31,305 |
Corporate debt securities |  |  | (127 | ) |  |  | 36,935 |  |  |  | (21,135 | ) |  |  | 688,156 |  |  |  | (21,262 | ) |  |  | 725,091 |
Municipal securities |  |  | — |  |  |  | — |  |  |  | (10,435 | ) |  |  | 235,171 |  |  |  | (10,435 | ) |  |  | 235,171 |
Other |  |  | — |  |  |  | — |  |  |  | (114 | ) |  |  | 2,760 |  |  |  | (114 | ) |  |  | 2,760 |
Total |  | $ | (127 | ) |  | $ | 37,935 |  |  | $ | (35,622 | ) |  | $ | 964,059 |  |  | $ | (35,749 | ) |  | $ | 1,001,994 |
|  | As of December 30, 2023 |
|  | Less than 12 Consecutive Months |  |  | 12 Consecutive Months or Longer |  |  | Total |
|  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |
Agency securities |  | $ | (31 | ) |  | $ | 10,923 |  |  | $ | (554 | ) |  | $ | 6,446 |  |  | $ | (585 | ) |  | $ | 17,369 |
Mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | (4,731 | ) |  |  | 34,012 |  |  |  | (4,731 | ) |  |  | 34,012 |
Corporate debt securities |  |  | (702 | ) |  |  | 64,637 |  |  |  | (45,371 | ) |  |  | 889,785 |  |  |  | (46,073 | ) |  |  | 954,422 |
Municipal securities |  |  | (32 | ) |  |  | 2,654 |  |  |  | (18,398 | ) |  |  | 261,651 |  |  |  | (18,430 | ) |  |  | 264,305 |
Other |  |  | — |  |  |  | — |  |  |  | (423 | ) |  |  | 3,337 |  |  |  | (423 | ) |  |  | 3,337 |
Total |  | $ | (765 | ) |  | $ | 78,214 |  |  | $ | (69,477 | ) |  | $ | 1,195,231 |  |  | $ | (70,242 | ) |  | $ | 1,273,445 |
As of September 28, 2024 and December 30, 2023, the Company had no t recognized an allowance for credit losses on any securities in an unrealized loss position. The Company has no t recorded an allowance for credit losses and charge to other income (expense) for the unrealized losses on agency, mortgage-backed, corporate debt, municipal, and other securities presented above because the Company does not consider the declines in fair value to have resulted from credit losses. The Company has not observed a significant deterioration in credit quality of these securities, which are highly rated with moderate to low credit risk. Declines in value are largely attributable to current global economic conditions. The securities continue to make timely principal and interest payments, and the fair values are expected to recover as they approach maturity. Management does not intend to sell the securities, and it is not more likely than not that the Company will be required to sell the securities, before the respective recoveries of their amortized cost bases, which may be maturity. The amortized cost and fair value of marketable securities at September 28, 2024, by maturity, are shown below.
|  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 421,840 |  |  | $ | 414,701 |
Due after one year through five years |  |  | 1,108,518 |  |  |  | 1,092,026 |
Due after five years through ten years |  |  | 7,588 |  |  |  | 7,001 |
Due after ten years |  |  | 8,790 |  |  |  | 7,505 |
Total |  | $ | 1,546,736 |  |  | $ | 1,521,233 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/940-320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration