Jack In The Box 2010 Annual Report Download - page 61

Table of Contents
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state tax jurisdictions, have not expired for tax years 2000 and 2006, respectively, and forward. Generally, the statutes of limitations
for the other state jurisdictions have not expired for tax years 2007 and forward.
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We sponsor programs that provide retirement benefits to most of our employees. These programs include defined 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 $1.5 million, $1.9 million and $2.0 million in 2010, 2009 and 2008, 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, our supplemental executive
retirement plan (“SERP”) was closed to new participants. To compensate executives no longer eligible to participate in the 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 $1.2 million, $1.1 million and
$1.3 million in 2010, 2009 and 2008, 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 plan”) covering substantially all full-time
employees. In September 2010, the Board of Directors approved changes to our qualified plan whereby participants will no longer
accrue benefits effective December 31, 2015 and the plan will be closed to new participants effective January 1, 2011. This change
was accounted for as a plan “curtailment” in accordance with the authoritative guidance issued by the FASB. As a result of the
curtailment, our qualified plan benefit obligation decreased by approximately $16.5 million representing the effect of estimated
future pay increases which cease to be a part of the benefit obligation as of December 31, 2015. The curtailment impact to net
earnings in fiscal 2010 was immaterial. We also sponsor an unfunded supplemental executive retirement plan (“non-qualified plan”)
which provides certain employees additional pension benefits and has been closed to new participants since January 1, 2007. In
connection with the curtailment of the qualified plan, our non-qualified plan benefit obligation increased $0.2 million in 2010.
Benefits under both 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 October 3, 2010 and September 27, 2009. In fiscal 2009, we adopted the
measurement date provisions of the FASB guidance for retirement
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