Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7a. Quantitative and Qualitative Disclosures about Market Risk:
(dollars in thousands)
Expected Maturity Dates
Fair Value
December 26, 2020
2021
2022
2023
2024
2025
Thereafter
Total
Dec. 26, 2020
Rate sensitive assets:
Fixed interest rate securities
$
9,715
$
6,815
$
11,535
$
11,060
$
11,665
$
41,669
$
92,459
$
104,445
Average interest rate
1.40
%
2.10
%
1.96
%
2.03
%
2.16
%
2.03
%
1.98
%
Other Relevant Market Risks
The Company’s equity securities at December 26, 2020 had a fair value of $7.4 million. The dividend yield realized on these equity investments was 6.1% in 2020. By their nature, both the fixed interest rate securities and the equity investments inherently expose the holders to market risk. The extent of the Company’s interest rate and other market risk is not quantifiable or predictable with precision due to the variability of future interest rates and other changes in market conditions. However, the Company believes that its exposure in this area is not material.
The Company’s revolving credit agreement is exposed to interest rate fluctuations to the extent of changes in the LIBOR rate. The Company believes this exposure is not material due to availability of liquid assets to eliminate the outstanding credit facility.
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