Investments Available for Sale

9 Months Ended

Sep. 29, 2023

Investments, Debt and Equity Securities [Abstract]

Note 2 — Investments Available for Sale

During the second half of 2022, the Company started to invest its cash in slightly higher yielding securities. Investments available for sale (“AFS”) and the related fair value measurement consisted of the following (dollars in thousands):


	September 29, 2023
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	17,102	$	1	$	(5	)	$	17,098	$	—	$	17,098
Certificates of deposit		4,080		1		(2	)		4,079		—		4,079
U.S. Treasury securities		24,828		—		(188	)		24,640		24,640		—
U.S. agency securities		9,771		—		(21	)		9,750		—		9,750
Corporate debt securities		18,812		2		(73	)		18,741		—		18,741
Total investments AFS	$	74,593	$	4	$	(289	)	$	74,308	$	24,640	$	49,668

	December 30, 2022
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	44,054	$	11	$	(62	)	$	44,003	$	—	$	44,003
Certificates of deposit		17,355		4		(75	)		17,284		—		17,284
U.S. Treasury securities		21,847		3		(15	)		21,835		21,835		—
U.S. agency securities		10,688		16		(3	)		10,701		—		10,701
Corporate debt securities		45,522		4		(288	)		45,238		—		45,238
Total investments AFS	$	139,466	$	38	$	(443	)	$	139,061	$	21,835	$	117,226

The Company obtains the fair value from third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers and other industry and economic events.

Note 2 — Investments Available for Sale (Continued)

The Company assessed each debt security with gross unrealized losses for impairment. As part of that assessment, the Company concluded that it does not intend to sell and it is more-likely-than-not that the Company will not be required to sell, prior to the recovery of the amortized cost basis. The Company did not recognize impairment for the three and nine months ended September 29, 2023.

The following table shows the fair value of investments AFS by contractual maturity (dollars in thousands):


	As of September 29, 2023
	Within one year		After one year through five years		Total
Commercial paper	$	17,098	$	—	$	17,098
Certificates of deposit		4,079		—		4,079
U.S. Treasury securities		14,855		9,785		24,640
U.S. agency securities		9,354		396		9,750
Corporate debt securities		15,295		3,446		18,741
Total investments AFS	$	60,681	$	13,627	$	74,308

During the nine months ended September 29, 2023, the Company sold $600,000 in securities during the first quarter of 2023 due to a downgraded credit rating. The Company recognized a realized gain upon sale of $2,000 during the nine months ended September 29, 2023.