| Cash, Cash Equivalents, and Marketable Securities [Text Block] |
NOTE G - CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents. Cash equivalents include money market funds. The Company deposits its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits. Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820).
The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at estimated fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity. Highly liquid, tax-exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities.
At July 3, 2022 and December 31, 2021, cost for marketable securities was determined using the specific identification method. A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the periods presented is shown in the following table. All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.
| | | (In Thousands) | |
| | | MARKETABLE SECURITIES | |
| | | Amortized Cost | | | Fair Value | | | Gross Unrealized Gains | | | Gross Unrealized Losses | |
| July 3, 2022 | | | | | | | | | | | | | | | | |
| Fixed Rate Municipal Bonds | | $ | 18,125 | | | $ | 18,040 | | | $ | 4 | | | $ | 89 | |
| Variable Rate Demand Notes | | | 24,989 | | | | 24,989 | | | | - | | | | - | |
| Total Marketable Securities | | $ | 43,114 | | | $ | 43,029 | | | $ | 4 | | | $ | 89 | |
| | | | | | | | | | | | | | | | | |
| December 31, 2021 | | | | | | | | | | | | | | | | |
| Fixed Rate Municipal Bonds | | $ | 8,737 | | | $ | 8,763 | | | $ | 31 | | | $ | 5 | |
| Variable Rate Demand Notes | | | 25,427 | | | | 25,427 | | | | - | | | | - | |
| Total Marketable Securities | | $ | 34,164 | | | $ | 34,190 | | | $ | 31 | | | $ | 5 | |
Proceeds from maturities and sales of available-for-sale securities totaled $583,000 and $9,459,000 for the three month periods ended July 3, 2022 and July 4, 2021, respectively, and totaled $2,637,000 and $26,410,000 for the six month periods then ended, respectively. There were no gross gains or losses related to sales of marketable securities during the same periods. Net unrealized losses included in other comprehensive income were $33,000 and $44,000 before taxes for the three month periods ended July 3, 2022 and July 4, 2021, respectively, and were $111,000 and $106,000 before taxes for the six month periods then ended, respectively. No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods.
The contractual maturities of the marketable securities held at July 3, 2022 are as follows: $13,200,000 within one year; $4,839,000 beyond one year to five years; $3,736,000 beyond five years to ten years, and $21,254,000 beyond ten years. All of the instruments in the beyond five year ranges are variable rate demand notes which can be tendered for cash at par plus interest within seven days. Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable.
|
