Note 2    Marketable Securities

The Company’s marketable securities are all classified as available-for-sale within “Current Assets” in the Company’s Consolidated Balance Sheets. Financial Accounting Standards Board (FASB) has established three levels of inputs that may be used to measure fair value:

Level 1Observable inputs such as quoted prices in active markets for identical assets or liabilities;

Level 2Observable inputs, other than Level 1 inputs in active markets, that are observable either directly or indirectly; and

Level 3Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Company’s marketable securities are valued using Level 1 inputs for the periods presented and included four public company equity securities, for which quoted market prices are available. The Company’s bond and commercial paper portfolio is valued using Level 2 inputs. The Company’s corporate and municipal bonds and commercial paper are valued using a combination of pricing for similar securities, recently executed transactions, cash flow models with yield curves and other pricing models utilizing observable inputs, which are considered Level 2 inputs.

For Level 2 investment valuation, the Company utilizes standard pricing procedures of its investment advisory firm(s), which include various third-party pricing services. These procedures also require specific price monitoring practices as well as pricing review reports, valuation oversight and pricing challenge procedures to maintain the most accurate representation of investment fair market value.

The Company accrues interest on its bond and commercial paper portfolio throughout the life of each bond and commercial paper held. Dividends from the equity securities are recognized as received. Both interest and dividends are recognized in “Investment income and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment income of $10.3 million, $18.6 million and $9.5 million which included an unrealized gain in equity securities of $1.3 million, an unrealized gain in equity securities of $1.0 million, and an unrealized loss in equity securities of $275 thousand in the fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023, respectively. As noted above, the Company divested a portion of its marketable securities portfolio selling $7.2 million in equity securities and $24.4 million in corporate and municipal bonds. Consequently, the Company realized capital gains of $6.0 million from these transactions. As of December 27, 2025, the Company held no equity securities and the marketable securities portfolio consisting of high grade corporate and municipal bonds and commercial paper totaled $97.1 million.

Marketable securities, as of December 27, 2025, and December 28, 2024, consisted of:

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Note 2    Marketable Securities (continued)

Maturities of marketable securities classified as available-for-sale at December 27, 2025, were as follows:

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SERP Investments

The Company also maintains a non-qualified supplemental executive retirement plan (SERP) for certain of its employees which allows them to defer income to future periods. Participants in the plans earn a return on their deferrals based on mutual fund investments. The Company chooses to invest in the underlying mutual fund investments to offset the liability associated with the non-qualified deferred compensation plans. Such investments are reported on the Company’s Consolidated Balance Sheets as “SERP investment,” are classified as trading securities and are measured at fair value using Level 1 inputs with gains and losses included in “Investment income and interest expense” on the Company’s Consolidated Statements of Income. The Company recognized investment income of $4.4 million in the fiscal year ended December 27, 2025, investment income of $3.4 million in the fiscal year ended December 28, 2024, and investment income of $3.7 million in the fiscal year ended December 30, 2023, respectively. The changes in the underlying liability to the employees are recorded in “Other income (expense).”