Jack In The Box 2008 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2008 Jack In The Box annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

Assumptions — We determine our actuarial assumptions on an annual basis. In determining the present values
of our benefit obligations and net periodic benefit costs as of and for the fiscal years ended September 28, 2008,
September 30, 2007 and October 1, 2006, respectively, we used the following weighted-average assumptions:
2008 2007 2006
Assumptions used to determine benefit obligations(1):
Qualified pension plans:
Discount rate ............................................. 7.30% 6.50% 6.60%
Rate of future compensation increases ........................... 3.50 3.50 3.50
Non-qualified pension plan:
Discount rate ............................................. 7.30% 6.50% 6.60%
Rate of future compensation increases ........................... 5.00 5.00 5.00
Postretirement health plans:
Discount rate ............................................. 7.30% 6.50% 6.60%
Assumptions used to determine net periodic benefit cost(2):
Qualified pension plans:
Discount rate ............................................. 6.50% 6.60% 5.50%
Long-term rate of return on assets . ............................. 7.75 7.75 7.75
Rate of future compensation increases ........................... 3.50 3.50 3.50
Non-qualified pension plan:
Discount rate ............................................. 6.50% 6.60% 5.50%
Rate of future compensation increases ........................... 5.00 5.00 5.00
Postretirement health plans:
Discount rate ............................................. 6.50% 6.60% 5.50%
(1) Determined as of end of year.
(2) Determined as of beginning of year.
The assumed discount rate was determined by considering the average of pension yield curves constructed of a
population of high-quality bonds with a Moody’s or Standard and Poor’s rating of “AA” or better meeting certain
other criteria. The resulting discount rate reflects the matching of plan liability cash flows to the yield curves.
The assumed expected long-term rate of return on assets is the weighted average rate of earnings expected on
the funds invested or to be invested to provide for the pension obligations. The long-term rate of return on assets was
determined taking into consideration our projected asset allocation and economic forecasts prepared with the
assistance of our actuarial consultants. Our five-year actual rate of return on plan assets was approximately 7.5% as
of September 30, 2008.
The assumed average rate of compensation increase is the average annual compensation increase expected
over the remaining employment periods for the participating employees.
F-24
JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)