Jack In The Box 2005 Annual Report Download - page 64

JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
(continued)
9. POST RETIREMENT BENEFIT PLAN (continued)
Net periodic benefit cost – The components of the fiscal year net periodic post retirement benefit cost are as follows:
2005 2004 2003
Service cost.................................................................................... $ 292 $ 259 $ 322
Interest cost.................................................................................... 1,127 825 661
Recognized actuarial gain.............................................................. (376) (506) (914)
Amortization of prior service cost ................................................. 185 – –
Amortization of losses................................................................... 4 – –
Net periodic benefit cost................................................................ $ 1,232 $ 578 $ 69
Health care cost trend rates – For measurement purposes, the assumed health care cost trend rates were as follows:
Trend Rates
Health care cost trend rate for next year:
Participants under age 65 ....................................................................................................................... 10.00%
Participants age 65 or older.................................................................................................................... 10.42%
Rate to which the cost trend rate is assumed to decline............................................................................. 4.96%
Year the rate reaches the ultimate trend rate.............................................................................................. 2014
The health care cost trend rate assumption has a significant effect on the amounts reported. For example, increasing the
assumed health care cost trend rates by 1.0% in each year would increase the accumulated post retirement benefit
obligation as of October 2, 2005 by $3,439 and the aggregate of the service and interest cost components of net periodic
post retirement benefit cost for 2005 by $210. If the assumed health care cost trend rates decreased by 1.0% in each year,
the accumulated post retirement benefit obligation would decrease by $2,730 as of October 2, 2005, and the aggregate of
the service and interest components of net periodic post retirement benefit cost for 2005 would decrease by $166.
Future cash flows – During fiscal year 2006, we expect to contribute approximately $370 to our post retirement benefit
plans. The future benefits expected to be paid and the Medicare Part D Subsidy expected to be received are as follows:
Fiscal year
Gross
Payments
Act
Subsidy
2006............................................................................................................................... $ 485 $ 26
2007............................................................................................................................... 562 33
2008............................................................................................................................... 656 41
2009............................................................................................................................... 740 50
2010............................................................................................................................... 829 60
Thereafter ...................................................................................................................... 5,366 525
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