Jack In The Box 2007 Annual Report Download - page 72

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Additional year-end pension plan information — The pension benefit obligation (“PBO”) is the actuarial
present value of benefits attributable to employee service rendered to date, including the effects of estimated future
pay increases. The accumulated benefit obligation (“ABO”) also reflects the actuarial present value of benefits
attributable to employee service rendered to date, but does not include the effects of estimated future pay increases.
Therefore, the ABO as compared to plan assets is an indication of the assets currently available to fund vested and
nonvested benefits accrued through the end of the fiscal year.
Prior to SFAS 158, the measure of whether a pension plan was underfunded for recognition of a liability under
financial accounting requirements was based on a comparison of the ABO to the fair value of plan assets and
amounts accrued for such benefits in the balance sheets. With the adoption of SFAS 158, the funded status is
measured as the difference between the fair value of a plan’s assets and its PBO.
As of June 30, 2007 and 2006, the qualified plans’ fair market value of plan assets exceeded the respective
accumulated benefit obligations. The non-qualified plan is an unfunded plan and, as such, had no plan assets as of
June 30, 2007 and 2006. The following sets forth the PBO, ABO and fair value of plan assets of our pension plans as
of the measurement date in each year (in thousands):
2007 2006
Qualified plans:
Projected benefit obligation ................................... $224,895 $196,031
Accumulated benefit obligation ................................ 190,866 164,548
Fair value of plan assets...................................... 216,679 185,540
Non-qualified plan:
Projected benefit obligation ................................... $ 39,628 $ 36,753
Accumulated benefit obligation ................................ 37,373 33,362
Fair value of plan assets...................................... — —
Since our nonqualified defined benefit pension plan is not funded, we were required to recognized a minimum
pension liability in our balance sheets prior to adopting SFAS 158. This minimum liability was $3.9 million at
October 1, 2006.
At the end of 2007 and prior to our adoption of SFAS 158, we recorded a minimum pension liability for our
non-qualified defined benefit pension plan for the amount by which the ABO exceeded the fair value of the plan
assets, after adjusting for the plan’s previously recorded accrued cost. We subsequently eliminated the minimum
pension liability balance related to our plan that had been recorded prior to adoption. The minimum liability
eliminated at September 30, 2007 was $6.5 million.
F-22
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)