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FAIR VALUE
 9 Months Ended
Sep. 28, 2024
FAIR VALUE  
FAIR VALUE

B.       FAIR VALUE

We apply the provisions of ASC 820, Fair Value Measurements and Disclosures, to assets and liabilities measured at fair value. Assets measured at fair value are as follows (in thousands):

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September 28, 2024

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December 30, 2023

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Quoted

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Prices with

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Quoted

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Prices with

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Prices in

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Other

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Prices with

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Prices in

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Other

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Prices with

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Active

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Observable

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Unobservable

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Active

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Observable

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Unobservable

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Markets

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Inputs

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Inputs

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Markets

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Inputs

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Inputs

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(Level 1)

    

(Level 2)

    

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(Level 3)

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Total

    

(Level 1)

    

(Level 2)

    

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(Level 3)

    

Total

Money market funds

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$

398,475

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$

16,048

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$

—

    

$

414,523

    

$

492,800

    

$

6,133

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$

—

    

$

498,933

Fixed income funds

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5,324

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26,034

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—

 

 

31,358

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5,112

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18,976

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—

 

 

24,088

Treasury securities

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344

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—

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—

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344

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344

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—

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—

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344

Equity securities

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16,893

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—

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22,000

 

 

38,893

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16,411

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—

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10,500

 

 

26,911

Alternative investments

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—

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—

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4,033

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4,033

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—

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—

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4,052

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​

4,052

Mutual funds:

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​

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​

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​

​

​

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​

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Domestic stock funds

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16,860

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—

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—

 

 

16,860

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13,330

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—

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—

 

 

13,330

International stock funds

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704

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—

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—

 

 

704

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509

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—

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—

 

 

509

Target funds

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10

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—

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—

 

 

10

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9

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—

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—

 

 

9

Bond funds

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6

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—

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—

 

 

6

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5

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—

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—

 

 

5

Alternative funds

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482

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—

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—

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482

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474

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—

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—

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474

Total mutual funds

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18,062

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—

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—

 

 

18,062

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14,327

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—

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—

 

 

14,327

Total

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$

439,098

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$

42,082

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$

26,033

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$

507,213

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$

528,994

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$

25,109

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$

14,552

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$

568,655

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From the assets measured at fair value as of September 28, 2024, listed in the table above, $413.6 million of money market funds are held in Cash and Cash Equivalents, $38.9 million of mutual funds, equity securities, and alternative investments are held in Investments, $22.0 million of equity securities are held in Other Assets, $0.1 million of money market and mutual funds are held in Other Assets for our deferred compensation plan, and $31.7 million of fixed income funds and $0.9 million of money market funds are held in Restricted Investments. As of December 30, 2023, $498.5 million of money market funds were held in Cash and Cash Equivalents, $34.8 million of mutual funds, equity securities, and alternative investments were held in Investments, $10.5 million of equity securities were held in Other Assets, $0.1 million of money market and mutual funds were held in Other Assets for our deferred compensation plan, and $24.4 million of fixed income funds and $0.4 million of money market funds were held in Restricted Investments.

We maintain money market, mutual funds, bonds, and/or equity securities in our non-qualified deferred compensation plan, our wholly owned licensed captive insurance company, and assets held in financial institutions. These funds are valued at prices quoted in an active exchange market and are included in “Cash and Cash Equivalents”, “Investments”, “Other Assets”, and “Restricted Investments”. We have elected not to apply the fair value option under ASC 825, Financial Instruments, to any of our financial instruments except for those expressly required by U.S. GAAP.

We have $22.0 million of investments through our Innov8 Fund, which is designed to invest in emerging projects, services, and technologies. These investments are valued as Level 3 assets and are categorized as “Equity securities.”

In accordance with our investment policy, our wholly-owned captive, Ardellis Insurance Ltd. (“Ardellis”), maintains an investment portfolio, totaling $70.6 million and $59.2 million as of September 28, 2024 and December 30, 2023, respectively, which has been included in the aforementioned table of total investments. This portfolio consists of domestic and international equity securities, alternative investments, and fixed income bonds.

Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands):

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September 28, 2024

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December 30, 2023

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Unrealized

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Unrealized

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Cost

    

Gain (Loss)

    

Fair Value

    

Cost

    

Gain (Loss)

    

Fair Value

Fixed income

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$

32,069

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$

(711)

  

$

31,358

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$

25,514

    

$

(1,426)

  

$

24,088

Treasury securities

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​

344

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—

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​

344

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344

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—

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344

Equity

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12,914

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3,979

  

 

16,893

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13,523

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2,888

  

 

16,411

Mutual funds

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14,676

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3,333

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18,009

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12,348

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1,934

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14,282

Alternative investments

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3,293

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740

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4,033

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3,211

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841

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4,052

Total

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$

63,296

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$

7,341

  

$

70,637

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$

54,940

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$

4,237

  

$

59,177

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Our fixed income investments consist of a blend of US Government and Agency bonds and investment grade corporate bonds with varying maturities. Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. Our mutual fund investments consist of domestic and international stock. Our alternative investments consist of a private real estate income trust which is valued as a Level 3 asset. The net pre-tax unrealized gain of the portfolio was $7.3 million and $4.2 million as of September 28, 2024 and December 30, 2023, respectively. Carrying amounts above are recorded in the Investments and Restricted Investments line items within the balance sheet as of September 28, 2024 and December 30, 2023.