B.FAIR VALUE

We apply the provisions of ASC 820, Fair Value Measurements and Disclosures, to assets and liabilities measured at fair value. Assets and liabilities measured at fair value are as follows:


	December 29, 2018								December 30, 2017
	Quoted		Prices with						Quoted		Prices with
	Prices in		Other			Prices with			Prices in		Other
	Active		Observable			Unobservable			Active		Observable
	Markets		Inputs			Inputs			Markets		Inputs
(in thousands)	(Level 1)		(Level 2)			(Level 3)	Total		(Level 1)		(Level 2)		Total
Money market funds	$	56	$	5,267	$	—	$	5,323	$	64	$	3,071	$	3,135
Fixed income funds		3,387		9,738		—		13,125		1,182		6,974		8,156
Equity securities		7,262		—		—		7,262		10,710		—		10,710
Hedge funds		—		—		1,756		1,756
Mutual funds:
Domestic stock funds		2,846		—		—		2,846		367		—		367
International stock funds		937		—		—		937		91		—		91
Target funds		237		—		—		237		270		—		270
Bond funds		796		—		—		796		209		—		209
Alternative funds		1,318		—		—		1,318
Total mutual funds		6,134		—		—		6,134		937		—		937
Total	$	16,839	$	15,005		1,756	$	33,600	$	12,893	$	10,045	$	22,938
Assets at fair value	$	16,839	$	15,005		1,756	$	33,600	$	12,893	$	10,045	$	22,938

We maintain money market, mutual funds, bonds, and/or stocks in our non-qualified deferred compensation plan and our wholly owned licensed captive insurance company. These funds are valued at prices quoted in an active exchange market and are included in "Cash and Cash Equivalents", "Investments", and "Other Assets". We have elected not to apply the fair value option under ASC 825, Financial Instruments, to any of our financial instruments except for those expressly required by U.S. GAAP.

The valuations of the Level 2 assets or liabilities rely on quoted prices in markets that are not active or observable inputs over the full term of the asset or liability.

During 2018, we purchased a private real estate income trust which will be valued as a Level 3 asset. We did not maintain any Level 3 assets or liabilities at December 30, 2017.

In 2017, our wholly-owned captive, Ardellis Insurance Ltd. (“Ardellis”) transferred fixed income securities to a newly formed collateral trust account in line with regulatory requirements in the State of Michigan to allow Ardellis to act as an admitted carrier in the State. These funds are intended to safeguard the insureds of the Michigan Branch of Ardellis. The funds are classified as “Restricted Investments”.

In accordance with our investment policy, our wholly-owned company, Ardellis Insurance Ltd. ("Ardellis"), maintains an investment portfolio, totaling $27.4 million as of December 29, 2018, consisting of mutual funds, domestic and international stocks, and fixed income bonds.

Ardellis’ available for sale investment portfolio consists of the following:


	December 29,2018						December 30,2017
			Unrealized						Unrealized
	Cost		Gain/(Loss)		Fair Value		Cost		Gain/(Loss)		Fair Value
Fixed Income	$	13,301	$	(176)	$	13,125	$	8,170	$	(14)	$	8,156
Equity		7,141		121		7,262		9,185		1,524		10,709
Mutual Funds		5,815		(567)		5,248		—		—		—
Hedge Funds		1,722		34		1,756		—		—		—
Total	$	27,979	$	(588)	$	27,391	$	17,355	$	1,510	$	18,865

Our fixed income investments consist of a blend of US Government and Agency bonds and investment grade corporate bonds with varying maturities. Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. Our hedge funds consist of the private real estate income trust which is valued as a Level 3 asset. The net pre-tax unrealized loss was $0.5 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of December 29, 2018.