Jack In The Box 2010 Annual Report Download - page 65

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Table of Contents


The assumed health care cost trend rate represents our estimate of the annual rates of change in the costs of the health care benefits
currently provided by our postretirement plans. The health care cost trend rate implicitly considers estimates of health care inflation,
changes in health care utilization and delivery patterns, technological advances and changes in the health status of the plan
participants. The health care cost trend rate assumption has a significant effect on the amounts reported. For example, a 1.0% change
in the assumed health care cost trend rate would have the following effect :
 
 
Total interest and service cost $ 211 $(178)
Postretirement benefit obligation $ 3,727 $ (3,155)
Plan assets Our investment philosophy is to (1) protect the corpus of the fund; (2) establish investment objectives that will allow
the market value to exceed the present value of the vested and unvested liabilities over time; while (3) obtaining adequate investment
returns to protect benefits promised to the participants and their beneficiaries. Our asset allocation strategy utilizes multiple
investment managers in order to maximize the plan’s return while minimizing risk. We regularly monitor our asset allocation, and
senior financial management and the Finance Committee of the Board of Directors review performance results at least semi-annually.
Our plan asset allocation at the end of 2010 and target allocations are as follows:

 
   
Large cap equity 26% 25% 15% 35%
Small cap equity 15% 15% 5% 25%
International equity 17% 15% 5% 25%
Core fixed funds 27% 25% 15% 35%
Real return bonds 6% 5% 0% 10%
Alternative investments 6% 5% 0% 10%
Real estate 3% 10% 0% 10%
100% 100%
F-25