Jack In The Box 2009 Annual Report Download - page 65

Table of Contents


Future cash flows — Our policy is to fund our plans at or above the minimum required by law. Contributions expected to be paid
in the next fiscal year and the projected benefit payments for each of the next five fiscal years and the total aggregate amount for the
subsequent five fiscal years are as follows (in thousands):
 
 
Estimated net contributions during fiscal 2010 $ 24,827 $ 1,053
Estimated future year benefit payments during fiscal years:
2010 $ 8,851 $ 1,053
2011 9,150 1,117
2012 9,561 1,169
2013 10,136 1,221
2014 10,786 1,296
2015-2019 86,371 7,765
(1) Net of Medicare Part D Subsidy.
We will continue to evaluate contributions to our defined benefit plans based on changes in pension assets as a result of asset
performance in the current market and economic environment. Expected benefit payments are based on the same assumptions used to
measure our benefit obligation at September 27, 2009 and include estimated future employee service.
 
Stock incentive plans — We offer share-based compensation plans to attract, retain, and motivate key officers, non-employee
directors, and employees to work toward the financial success of the Company.
Our stock incentive plans are administered by the Compensation Committee of the Board of Directors and have been approved by
the stockholders of the Company. The terms and conditions of our share-based awards are determined by the Compensation Committee
on each award date and may include provisions for the exercise price, expirations, vesting, restriction on sales and forfeitures, as
applicable. We issue new shares to satisfy stock issuances under our stock incentive plans.
Our Amended and Restated 2004 Stock Incentive Plan authorizes the issuance of up to 6,500,000 common shares in connection with
the granting of stock options, stock appreciation rights, restricted stock purchase rights, restricted stock bonuses, restricted stock units
or performance units to key employees and directors. No more than 1,300,000 shares may be granted under this Plan as restricted stock
or performance-based awards. As of September 27, 2009, 1,341,660 shares of common stock were available for future issuance under
this Plan.
There are four other plans under which we can no longer issue awards, although awards outstanding under these plans may still
vest and be exercised: the 1992 Employee Stock Incentive Plan, the 1993 Stock Option Plan, the 2002 Stock Incentive Plan, and the
Non-Employee Director Stock Option Plan.
We also maintain a deferred compensation plan for non-management directors under which those who are eligible to receive fees or
retainers may choose to defer receipt of their compensation. The deferred amounts are converted to stock equivalents. The plan requires
settlement in shares of our common stock based on the number of stock equivalents at the time of a participant’s separation from the
Board of Directors. This plan provides for the issuance of up to 350,000 shares of common stock in connection with the crediting of
stock equivalents. As of September 27, 2009, 263,424 shares of common stock were available for future issuance under this plan.
In February 2006, the stockholders of the Company approved an employee stock purchase plan (“ESPP”) for all eligible employees
to purchase shares of common stock at 95% of the fair market value on the date of purchase. Employees may authorize us to withhold
up to 15% of their base compensation during any offering period, subject
F-26