RESTRICTED CASH AND INVESTMENTS

9 Months Ended

Sep. 24, 2023

Restricted Cash and Investments [Abstract]

The following is a summary of the carrying value of our restricted cash and investments:


(in thousands)	September 24, 2023		December 25, 2022
Cash collateral held by insurance carriers	$	24,727	$	29,567
Cash and cash equivalents held in Trust	17,842		30,857
Investments held in Trust	125,379		123,678

Company-owned life insurance policies	30,005		26,479
Other restricted cash and cash equivalents	876		3,153
Total restricted cash and investments	$	198,829	$	213,734

Held-to-maturity

Restricted cash and investments include collateral that has been provided or pledged to insurance carriers for workers’ compensation and state workers’ compensation programs. Our insurance carriers and certain state workers’ compensation programs require us to collateralize a portion of our workers’ compensation obligation. The collateral typically takes the form of cash and cash equivalents and highly rated investment grade securities, primarily in debt and asset-backed securities. The majority of our collateral obligations are held in a trust at the Bank of New York Mellon (“Trust”).

The amortized cost and estimated fair value of our held-to-maturity investments held in Trust, aggregated by investment category as of September 24, 2023 and December 25, 2022, were as follows:


	September 24, 2023
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Municipal debt securities	$	34,783	$	—	$	(717)	$	34,066
Corporate debt securities	80,759		—		(3,458)		77,301
Agency mortgage-backed securities	8,839		—		(88)		8,751
U.S. government and agency securities	998		—		(66)		932
Total held-to-maturity investments	$	125,379	$	—	$	(4,329)	$	121,050


	December 25, 2022
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Municipal debt securities	$	42,892	$	2	$	(463)	$	42,431
Corporate debt securities	79,736		4		(3,643)		76,097
Agency mortgage-backed securities	50		—		(2)		48
U.S. government and agency securities	1,000		—		(51)		949
Total held-to-maturity investments	$	123,678	$	6	$	(4,159)	$	119,525

The amortized cost and fair value by contractual maturity of our held-to-maturity investments are as follows:


	September 24, 2023
(in thousands)	Amortized cost		Fair value
Due in one year or less	$	32,068	$	31,617
Due after one year through five years	85,528		81,848
Due after five years through ten years	7,783		7,585
Total held-to-maturity investments	$	125,379	$	121,050

Actual maturities may differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without penalty. We have no significant concentrations of counterparties in our held-to-maturity investment portfolio.

Company-owned life insurance policies

We hold company-owned life insurance policies to support our deferred compensation liability. During the thirteen and thirty-nine weeks ended September 24, 2023, we received proceeds from company-owned life insurance policies of $1.7 million, of which $1.4 million was in excess of the cash surrender value of the related policies and recognized in selling, general and administrative (“SG&A”) expense on our Consolidated Statements of Operations and Comprehensive Income (Loss). Unrealized gains and losses related to investments still held at September 24, 2023 and September 25, 2022, which are included in SG&A expense on our Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows:


	Thirteen weeks ended				Thirty-nine weeks ended
(in thousands)	September 24, 2023		September 25, 2022		September 24, 2023		September 25, 2022
Unrealized gains (losses)	$	(493)	$	(1,516)	$	1,482	$	(7,076)