Jack In The Box 2007 Annual Report Download - page 69

7. RETIREMENT PLANS
We sponsor programs that provide retirement benefits to most of our employees. These programs include
defined benefit contribution plans, defined benefit pension plans and postretirement healthcare plans.
Defined contribution plans — We maintain savings plans 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 $1.9 million, $1.9 million and $1.8 million in 2007,
2006 and 2005, respectively. We also maintain an unfunded, non-qualified deferred compensation plan for key
executives and other members of management who are excluded from participation in the qualified savings plan.
This plan allows 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, to compensate for changes
made to our supplemental executive retirement plan (“SERP”), 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 plan were $1.0 million, $1.2 million and $1.1 million in 2007, 2006
and 2005, respectively. In each plan, a participant’s right to Company contributions vests at a rate of 25% per year of
service.
Defined benefit pension plans — We sponsor defined benefit pension plans (“qualified pension plans”)
covering substantially all full-time employees. We also sponsor an unfunded supplemental executive retirement
plan (“non-qualified plan”) which provides certain employees additional pension benefits. Effective January 1,
2007, the SERP was closed to any new participants. Benefits under all plans are based on the employees’ years of
service and compensation over defined periods of employment.
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.
New accounting policy — As discussed in Note 1, Organization and Summary of Significant Accounting
Policies, effective September 30, 2007, we adopted the recognition and disclosure provisions of SFAS 158, which
required us to recognize the funded status (i.e., the difference between the fair value of plan assets and the projected
benefit obligations) of our pension and postretirement plans in our September 30, 2007 consolidated balance sheet,
with a corresponding adjustment to accumulated other comprehensive income (“AOCI”), net of tax. The adjustment
to AOCI at adoption represents the net unrecognized actuarial losses, unrecognized prior service costs, and
unrecognized transition obligations remaining from the initial adoption of SFAS 87, Employers’ Accounting for
Pensions. These amounts will be subsequently recognized as net periodic benefit costs pursuant to our historical
accounting policy for amortizing such amounts.
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JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)