Jack In The Box 2011 Annual Report Download - page 67

Table of Contents
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The major jurisdictions in which the Company files income tax returns include the United States and states in which we operate that impose an income
tax. The federal statutes of limitations have not expired for fiscal years 2008 and forward. The statutes of limitations for California and Texas, which
constitute the Company’s major state tax jurisdictions, have not expired for fiscal years 2001 and 2007, respectively, and forward. Generally, the
statutes of limitations for the other state jurisdictions have not expired for fiscal years 2008 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 qualified 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 $1.2 million, $1.5 million and
$1.9 million in 2011, 2010 and 2009, respectively. We also maintain unfunded, non-qualified deferred compensation plans for key executives and other
members of management who are excluded from participation in the qualified savings plans. These plans allow 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 plans were $1.1 million, $1.3 million and $1.2 million in 2011, 2010 and 2009,
respectively. In all plans, 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 and rehired participants no longer accrue benefits
effective December 31, 2015 and the plan was 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. 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.
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.
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