Jack In The Box 2008 Annual Report Download - page 72

Future cash flows — Our policy is to fund our plans at or above the minimum required by law. Contributions
expected to be paid in the next fiscal year and the projected benefit payments for each of the next five fiscal years
and the total aggregate amount for the subsequent five fiscal years are as follows (in thousands):
Defined
Benefit
Pension
Plans Postretirement Health Plans(1)
Estimated net contributions during fiscal 2009 ..................... $14,950 $ 877
Estimated future year benefit payments during fiscal years:
2009 .................................................... $ 7,538 $ 877
2010 .................................................... 8,192 933
2011 .................................................... 8,770 984
2012 .................................................... 9,501 1,024
2013 .................................................... 10,456 1,080
2014-2018 ............................................... 73,889 6,260
(1) Net of Medicare Part D Subsidy.
We will continue to evaluate contributions to our defined benefit plans based on changes in pension assets as a
result of asset performance in the current market and economic environment. Expected benefit payments are based
on the same assumptions used to measure our benefit obligation at September 28, 2008 and include estimated future
employee service.
9. SHARE-BASED EMPLOYEE COMPENSATION
Stock incentive plans — We offer share-based compensation plans to attract, retain, and motivate key officers,
non-employee directors, and employees to work toward the financial success of the Company.
Our stock incentive plans are administered by the Compensation Committee of the Board of Directors and
have been approved by the stockholders of the Company. The terms and conditions of our share-based awards are
determined by the Compensation Committee on each award date and may include provisions for the exercise price,
expirations, vesting, restriction on sales and forfeitures, as applicable. We issue new shares to satisfy stock issuances
under our stock incentive plans.
Our Amended and Restated 2004 Stock Incentive Plan authorizes the issuance of up to 6,500,000 common
shares in connection with the granting of stock options, stock appreciation rights, restricted stock purchase rights,
restricted stock bonuses, restricted stock units or performance units to key employees and directors. No more than
1,300,000 shares may be granted under this Plan as restricted stock or performance-based awards. As of
September 28, 2008, 1,513,519 shares of common stock were available for future issuance under this Plan.
There are four other plans under which we can no longer issue awards, although awards outstanding under
these plans may still vest and be exercised: the 1992 Employee Stock Incentive Plan, the 1993 Stock Option Plan,
the 2002 Stock Incentive Plan, and the Non-Employee Director Stock Option Plan.
We also maintain a deferred compensation plan for non-management directors under which those who are
eligible to receive fees or retainers may choose to defer receipt of their compensation. The amounts deferred are
converted into stock equivalents at the then current market price of our common stock. Effective November 9, 2006,
the deferred compensation plan was amended to eliminate a 25% company match of such deferred amounts and
require settlement in shares of our common stock based on the number of stock equivalents at the time of a
participant’s separation from the Board of Directors. As a result of changing the method of settlement from cash to
stock, the deferred compensation obligation was reclassified from accrued liabilities to capital in excess of par value
in the accompanying consolidated balance sheet as of September 30, 2007. This plan provides for the issuance of up
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JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)