Jack In The Box 2009 Annual Report Download - page 60

Table of Contents
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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 state tax audits and possible favorable settlement of appeal
with the Internal Revenue Service.
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 2006 remains open at this time. The statute of limitations for state
taxing jurisdictions, which could have a material impact, namely California and Texas, has not expired for tax years 2000 and 2004,
respectively. Generally, the statutes of limitations for the other state jurisdictions have not expired for tax years 2005 and forward.
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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, $2.0 million and $1.9 million in 2009, 2008 and 2007, 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 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 $1.1 million, $1.3 million
and $1.2 million in 2009, 2008 and 2007, 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 a defined benefit pension plan (“qualified pension plan”) 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.
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