Jack In The Box 2008 Annual Report Download - page 66

From time to time, we may take positions for filing our tax returns, which may differ from the treatment of the
same item for financial reporting purposes. The ultimate outcome of these items will not be known until the Internal
Revenue Service has completed its examination or until the statute of limitations has expired.
It is reasonably possible that changes to the gross unrecognized tax benefits may be required within the next
twelve months of approximately $0.5 million. These changes relate to the possible settlement of Internal Revenue
Service audits for the Company’s 2006 tax year that is currently in process and expected to be completed within
twelve months, and also the expiration of the statute of limitations in various taxing jurisdictions.
The major jurisdictions in which the Company files income tax returns include the US and most US states that
impose an income tax. The federal statute of limitations for all tax years beginning with 2004 remains open at this
time. The statute of limitations for state taxing jurisdictions which could have a material impact, namely California
and Texas, have not expired for tax years 2000 and 2003 respectively. Generally, the statutes of limitations for the
other state jurisdictions have not expired for tax years 2001 and forward.
8. 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 $2.0 million, $1.9 million and $1.9 million in 2008,
2007 and 2006, 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 $1.3 million, $1.2 million and $1.2 million in 2008, 2007
and 2006, 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 and was closed to any
new participants effective January 1, 2007. 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.
Obligations and funded status — The following table provides a reconciliation of the changes in benefit
obligations, plan assets and funded status of our retirement plans as of June 30, 2008 and June 30, 2007. In
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JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)