What was the actuarial loss (gain) for Qualifi-related benefits for Del Taco in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 for each fiscal year (in thousands):
| Qualifi | ed I | Plan | SERP | Postretirement I | Health Plans | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||
| Change in benefit obligation: | ||||||||||
| Obligation at beginning of year | $ 266,345 | $ | 293,342 | $ | 53,513 | $ 56,891 | $ | 11,891 | $ | 12,577 |
| Interest cost | 15,791 | 16,068 | 3,188 | 3,149 | 711 | 700 | ||||
| Participant contributions | _ | _ | _ | _ | 102 | 101 | ||||
| Actuarial loss (gain) | 29,769 | (13,792) | 5,199 | (1,287) | 1,186 | (383) | ||||
| Benefits paid | (13,985) | (14,884) | (4,803) | (5,240) | (1,268) | (1,145) | ||||
| Settlements and other | _ | (14,389) | _ | _ | 32 | 41 | ||||
| Obligation at end of year | $ 297,920 | $ | 266,345 | $ | 57,097 | $ 53,513 | $ | 12,654 | $ | 11,891 |
| Change in plan assets: | ||||||||||
| Fair value at beginning of year | $ 275,143 | $ | 303,951 | $ | _ | $ _ | $ | _ | $ | _ |
| Actual return on plan assets | 41,281 | 465 | _ | _ | _ | |||||
| Participant contributions | _ | _ | _ | _ | 102 | 101 | ||||
| Employer contributions | _ | _ | 4,803 | 5,240 | 1,134 | 1,002 | ||||
| Benefits paid | (13,985) | (14,884) | (4,803) | (5,240) | (1,268) | (1,145) | ||||
| Settlements and other | _ | (14,389) | _ | _ | 32 | 42 | ||||
| Fair value at end of year | $ 302,439 | $ | 275,143 | $ | $ _ | $ | _ | $ | ||
| Funded (unfunded) status at end of year | $ 4,519 | $ | 8,798 | $ | (57,097) | $ (53,513) | $ | (12,654) | $ | (11,891) |
| Amounts recognized on the balance sheet: | ||||||||||
| Noncurrent assets | $ 4,519 | $ | 8,798 | $ | _ | $ _ | $ | _ | $ | |
| Current liabilities | _ | _ | (5,124) | (5,138) | (1,111) | (1,072) | ||||
| Noncurrent liabilities | _ | _ | (51,973) | (48,375) | (11,543) | (10,819) | ||||
| Total asset (liability) recognized | $ 4,519 | $ | 8,798 | $ | (57,097) | $ (53,513) | $ | (12,654) | $ | (11,891) |
| Amounts in AOCI not yet reflected in net periodic benefit cost: | ||||||||||
| Unamortized actuarial loss (gain), net | $ 100,938 | $ | 99,871 | $ | 18,542 | $ 13,974 | $ | (8,132) | $ | (10,232) |
| Unamortized prior service cost | _ | _ | _ | 15 | _ | _ | ||||
| Total | $ 100,938 | $ | 99,871 | $ | 18,542 | $ 13,989 | $ | (8,132) | $ | (10,232) |
| Other changes in plan assets and benefit obligations recognized in OCI: | ||||||||||
| Net actuarial loss (gain) | $ 3,470 | $ | 848 | $ | 5,199 | $ (1,287) | $ | 1,186 | $ | (383) |
| Amortization of actuarial (loss) gain | (2,403) | (2,349) | (632) | (718) | 914 | 932 | ||||
| Amortization of prior service cost | (14) | (19) | ||||||||
| Total recognized in OCI | 1,067 | (1,501) | 4,553 | (2,024) | 2,100 | 549 | ||||
| Net periodic benefit (credit) cost | 3,212 | 3,312 | 3,834 | 3,886 | (203) | (232) | ||||
| Total recognized in comprehensive income | $ 4,279 | $ | 1,811 | $ | 8,3 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the actuarial loss for Qualifi-related benefits in 2024 was $29,769. This figure represents the change in the benefit obligation due to actuarial assumptions regarding factors like employee demographics, mortality rates, and healthcare costs.
For a prospective Del Taco franchisee, understanding these figures is crucial because they reflect the overall financial health and stability of the company's benefit plans. Actuarial gains or losses can impact the company's financial statements and, potentially, the resources available for supporting franchisees. A significant actuarial loss might indicate future increases in benefit costs, which could indirectly affect the franchisor's financial decisions and support services.
It's important to note that this actuarial loss is just one component of the overall change in benefit obligation. Other factors, such as interest costs, participant contributions, and benefits paid, also contribute to the total obligation. Franchisees should consider these figures in the context of the company's overall financial performance and consult with a financial advisor to understand the potential implications for their investment.