Jack In The Box 2006 Annual Report Download - page 69

JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
F-19
8. RETIREMENT AND SAVINGS PLANS (continued)
As of June 30, 2006, the qualified plans’ fair market value of plan assets exceeded the respective accumulated
benefit obligations. As of June 30, 2005, the accumulated benefit obligation under one of the qualified plans of
$161,910 exceeded the fair market value of plan assets totaling $145,208. The non-qualified plan is an unfunded
plan and, as such, had no plan assets as of June 30, 2006 and June 30, 2005.
2006 2005
Qualified plans:
Projected benefit obligation ............................................................................................. $ 196,031 $ 210,363
Accumulated benefit obligation....................................................................................... 164,548 174,869
Fair value of plan assets .................................................................................................. 185,540 158,928
Non-qualified plan:
Projected benefit obligation ............................................................................................. $ 36,753 $ 37,544
Accumulated benefit obligation....................................................................................... 33,362 34,100
Fair value of plan assets .................................................................................................. — —
Net periodic pension cost — The components of the fiscal year net defined benefit pension cost are as follows:
Qualified plans Non-qualified plan
2006 2005 2004 2006 2005 2004
Service cost ..................................................... $ 12,042 $ 8,393 $ 8,170 $ 771 $ 644 $ 536
Interest cost ..................................................... 12,258 10,053 8,943 2,067 2,043 1,941
Expected return on plan assets ........................ (12,428) (9,438) (7,040) — — —
Recognized actuarial loss ................................ 8,416 4,072 6,272 735 442 603
Amortization of unrecognized prior service
cost ................................................................ 124 124 124 671 652 648
Amortization of unrecognized net transition
obligation....................................................... — — — 95 95 95
Net periodic pension cost ................................ $ 20,412 $ 13,204 $ 16,469 $ 4,339 $ 3,876 $ 3,823
Assumptions — We determine our actuarial assumptions on an annual basis. In determining the present values of
the Company’ s benefit obligations and net periodic pension costs as of and for the fiscal years ended October 1,
2006, October 2, 2005 and October 3, 2004, respectively, we used the following weighted-average assumptions:
Qualified plans Non-qualified plan
2006 2005 2004 2006 2005 2004
Assumptions used to determine benefit
obligations (1):
Discount rate.............................................. 6.60% 5.50% 6.45% 6.60% 5.50% 6.45%
Long-term rate of return on assets............. 7.75 7.50 7.50 N/A N/A N/A
Rate of future compensation increases ...... 3.50 3.50 3.50 5.00 5.00 5.00
Assumptions used to determine net
periodic pension cost (2):
Discount rate.............................................. 5.50% 6.45% 6.15% 5.50% 6.45% 6.15%
Long-term rate of return on assets............. 7.75 7.50 7.50 N/A N/A N/A
Rate of future compensation increases ...... 3.50 3.50 3.50 5.00 5.00 5.00
____________
(1) Determined as of end of year.
(2) Determined as of beginning of year.