Jack In The Box 2012 Annual Report Download - page 59

for fiscal years 2009 and forward.
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We sponsor programs that provide retirement benefits to most of our employees. These programs include defined contribution plans, defined benefit pension
plans and postretirement healthcare plans.
Defined contribution plans — We maintain a qualified savings plan pursuant to Section 401(k) of the Internal Revenue Code, which allow administrative
and clerical employees who have satisfied the service requirements and reached age 21 to defer a percentage of their pay on a pre-tax basis. We match 50% of
the first 4% of compensation deferred by the participant. Our contributions under these plans were $1.2 million in both 2012 and 2011, and $1.5 million in
2010. We also maintain unfunded, non-qualified deferred compensation plans for key executives and other members of management who are excluded from
participation in the qualified savings plans. These plans allow participants to defer up to 50% of their salary and 100% of their bonus, on a pre-tax basis. We
match 100% of the first 3% contributed by the participant. Effective January 1, 2007, our supplemental executive retirement plan (“Non-Qualified Plan”) was
closed to new participants. To compensate executives no longer eligible to participate in the Non-Qualified Plan, we also contribute a supplemental amount
equal to 4% of an eligible employee’s salary and bonus for a period of ten years in such eligible position. Our contributions under the non-qualified deferred
compensation plans were $1.1 million in both 2012 and 2011, and $1.3 million in 2010. In all plans, a participant’s right to Company contributions vests at
a rate of 25% per year of service.
Defined benefit pension plans — We sponsor a defined benefit pension plan (our “Qualified Plan”) covering substantially all full-time employees. In fiscal
2010, the Board of Directors approved changes to our Qualified Plan whereby participants no longer accrue benefits effective December 31, 2015 and the plan
was closed to new and rehired employees effective January 1, 2011. This change was accounted for as a plan “curtailment” in accordance with the
authoritative guidance issued by the FASB. Our Non-Qualified Plan is an unfunded supplemental executive retirement plan which provides certain employees
additional pension benefits. Benefits under both plans are based on the employees’ years of service and compensation over defined periods of employment.
In April 2012, we announced a voluntary early retirement program to eligible employees. The offering period for participation in the VERP ended during the
third quarter of fiscal 2012. In connection with the VERP, we were required to re-measure the liability for our Qualified Plan as of June 30, 2012. As a result,
we incurred a charge and an increase to our pension benefit obligation (“PBO”) in fiscal 2012 of $6.2 million for enhanced retirement benefits under our
Qualified Plan.
Postretirement healthcare plans — We also sponsor healthcare plans that provide postretirement medical benefits to certain employees who meet minimum
age and service requirements. The plans are contributory, with retiree contributions adjusted annually, and contain other cost-sharing features such as
deductibles and coinsurance.
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