Note C – Marketable Debt Securities

The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” Unrealized

gains (losses) on marketable debt securities are recorded in Accumulated Other Comprehensive Loss. The Company’s available-for-sale marketable debt securities consisted of the following:

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The contractual maturities of the Company’s available for sale marketable debt securities are as follows:

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The marketable debt securities held at August 29, 2026, had effective maturities ranging from less than one year to approximately twenty-seven years. At August 29, 2026, the Company held 222 securities that are in an unrealized loss position of approximately $1.8 million. In evaluating whether a credit loss exists for the securities, the Company considers factors such as the severity of the loss position, the credit worthiness of the investee, the term to maturity and the intent and ability to hold the investments until maturity or until recovery of fair value. An allowance for credit losses was deemed unnecessary given consideration of the factors above. The Company did not realize any material gains or losses on its marketable debt securities during fiscal 2026, 2025 or 2024.

Included above in total marketable debt securities are $119.9 million and $117.4 million of marketable debt securities transferred by the Company’s insurance captive to a trust account to secure its obligations to an insurance company related to future workers’ compensation and casualty losses as of August 29, 2026, and August 30, 2025, respectively.