Investments (Notes)

9 Months Ended

Sep. 24, 2022

Investments, Debt and Equity Securities [Abstract]

Investments [Text Block]

Investments

(a)Debt Securities

Following is a summary of debt securities as of September 24, 2022 and December 25, 2021:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Amounts are in thousands)
September 24, 2022
Taxable bonds	$	9,345,448		167		881,631	8,463,984
Tax exempt bonds	97,135			5		669	96,471
Restricted investments	170,200			—		3,811	166,389
	$	9,612,783		172		886,111	8,726,844
December 25, 2021
Taxable bonds	$	9,644,692		108,697		108,906	9,644,483
Tax exempt bonds	268,899			2,351		—	271,250
Restricted investments	170,769			7,629		359	178,039
	$	10,084,360		118,677		109,265	10,093,772

The Company maintains restricted investments primarily for the benefit of the Company’s insurance carrier related to self-insurance reserves. These investments are held as collateral and not used for claim payments.

The cost and fair value of debt securities by expected maturity as of September 24, 2022 and December 25, 2021 are as follows:

	September 24, 2022				December 25, 2021
	Cost		Fair Value		Cost		Fair Value
	(Amounts are in thousands)
Due in one year or less	$	536,267		533,339		875,740	883,066
Due after one year through five years	7,477,381			6,827,732		6,353,221	6,403,573
Due after five years through ten years	1,596,773			1,363,457		2,852,531	2,804,131
Due after ten years	2,362			2,316		2,868	3,002
	$	9,612,783		8,726,844		10,084,360	10,093,772

The Company had no debt securities with credit losses as of September 24, 2022 and December 25, 2021.

Following is a summary of debt securities with other unrealized losses by the time period impaired as of September 24, 2022 and December 25, 2021:

	Less Than 12 Months				12 Months or Longer			Total
	Fair Value		Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
	(Amounts are in thousands)
September 24, 2022
Taxable bonds	$	5,240,412		422,826	3,094,972		458,805	8,335,384		881,631
Tax exempt bonds	92,896			669	—		—	92,896		669
Restricted investments	166,389			3,811	—		—	166,389		3,811
	$	5,499,697		427,306	3,094,972		458,805	8,594,669		886,111
December 25, 2021
Taxable bonds	$	4,225,323		72,862	1,131,942		36,044	5,357,265		108,906
Restricted investments	17,115			359	—		—	17,115		359
	$	4,242,438		73,221	1,131,942		36,044	5,374,380		109,265

There are 456 debt securities contributing to the total unrealized losses of $886,111,000 as of September 24, 2022. Unrealized losses related to debt securities are primarily due to increases in interest rates that occurred since the debt securities were purchased. The Company continues to receive scheduled principal and interest payments on these debt securities.

(b)Equity Securities

Equity securities are measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). The fair value of equity securities was $2,479,761,000 and $3,557,705,000 as of September 24, 2022 and December 25, 2021, respectively.

(c)Investment Income (Loss)

Net realized gain or loss on investments represents the difference between the cost and the proceeds from the sale of debt and equity securities. The net realized gain or loss on investments excludes the net gain or loss on the sale of equity securities previously recognized through the fair value adjustment, which is presented separately in the following table.

Following is a summary of investment income (loss) for the three and nine months ended September 24, 2022 and September 25, 2021:

		Three Months Ended					Nine Months Ended
	September 24, 2022			September 25, 2021		September 24, 2022		September 25, 2021
	(Amounts are in thousands)
Interest and dividend income		$	61,455		48,992		172,973		143,618
Net realized (loss) gain on investments		(2,534)			8,391		(1,316)		32,376
		58,921			57,383		171,657		175,994
Fair value adjustment, due to net unrealized (loss) gain, on equity securities held at end of period		(556,315)			72,945		(1,495,275)		986,756
Net gain on sale of equity securities previously recognized through fair value adjustment		—			—		—		(9,441)
		$	(497,394)		130,328		(1,323,618)		1,153,309