Investments

6 Months Ended

Jun. 25, 2011

Investments

Investments

(9) Investments

Investments include investment-grade bonds and mortgage-backed securities having maturities of up to five years (the "bond portfolio"). Investments in the bond portfolio are reported as available-for-sale and are carried at fair value. Investments maturing less than one year from the balance sheet date are included in short-term investments and investments maturing more than one year from the balance sheet date are included in other assets in the consolidated balance sheets. Management has performed an analysis of the nature of the unrealized losses on available-for-sale investments to determine whether such losses are other-than-temporary. Unrealized losses, representing the excess of the purchase price of an investment over its fair value as of the end of a period, considered to be other-than-temporary are to be included as a charge in the statement of income while unrealized losses considered to be temporary are to be included as a component of equity. Investments whose values are based on quoted market prices in active markets are classified within Level 1. Investments that trade in markets that are not considered to be active, but are valued based on quoted market prices, are classified within Level 2. As Level 2 investments include positions that are not traded in active markets, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information. Transfers between levels are recognized as of the beginning of the period. Fair value of the bond portfolio was determined using Level 1 inputs related to U.S. Treasury obligations and money market investments and Level 2 inputs related to investment-grade corporate bonds, mortgage-backed securities and direct obligations of government agencies. Net unrealized gains on the investments in the bond portfolio were $1,214,000 and $760,000 at June 25, 2011 and December 25, 2010, respectively.

The amortized cost and fair market values of available-for-sale investments are as follows at June 25, 2011 and December 25, 2010 (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
June 25, 2011
Money market investments	$	1,536	$	—	$	—	$	1,536
Mortgage-backed securities		3,105		91		—		3,196
Corporate bonds and direct obligations of government agencies		53,717		1,107		8		54,816
U.S. Treasury obligations		13,008		24		—		13,032
Total	$	71,366	$	1,222	$	8	$	72,580
December 25, 2010
Money market investments	$	535	$	—	$	—	$	535
Mortgage-backed securities		3,458		64		8		3,514
Corporate bonds and direct obligations of government agencies		60,330		872		151		61,051
U.S. Treasury obligations		12,584		6		23		12,567
Total	$	76,907	$	942	$	182	$	77,667

For those available-for-sale investments with unrealized losses at June 25, 2011 and December 25, 2010, the following table summarizes the duration of the unrealized loss (in thousands):

	Less than 12 months				12 months or longer				Total
	Fair Market Value		Unrealized Loss		Fair Market Value		Unrealized Loss		Fair Market Value		Unrealized Loss
June 25, 2011
Corporate bonds and direct obligations of government agencies	$	2,143	$	8	$	—	$	—	$	2,143	$	8
December 25, 2010
Mortgage-backed securities	$	225	$	8	$	—	$	—	$	225	$	8
Corporate bonds and direct obligations of government agencies		11,615		151		—		—		11,615		151
U.S. Treasury obligations		774		23		—		—		774		23
Total	$	12,614	$	182	$	—	$	—	$	12,614	$	182