For Del Taco, what is the classification of the non-qualified deferred compensation plan within the condensed consolidated balance sheets?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
requirements to defer a percentage of their pay on a pre-tax basis. Our contributions under these plans were $3.3 million, $2.3 million, and $2.1 million in each fiscal years 2024, 2023 and 2022, respectively.
We also maintain an unfunded, non-qualified deferred compensation plan for key executives and other members of management whose compensation deferrals or company matching contributions to the qualified savings plan are limited due to IRC rules. Effective January 1, 2016, this non-qualified plan was amended to replace the company matching contribution with an annual restoration match that is intended to "restore" up to the full match for participants whose elective deferrals (and related company matching contributions) to the qualified savings plan were limited due to IRC rules. A participant's right to the Company restoration match vests immediately. This plan allows participants to defer up to 50% of their salary and 85% of their bonus
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the company maintains an unfunded, non-qualified deferred compensation plan for key executives and other members of management. This plan is designed for individuals whose compensation deferrals or company matching contributions to the qualified savings plan are limited due to IRS rules. The plan was amended effective January 1, 2016, to replace the company matching contribution with an annual restoration match, ensuring participants receive the full match they would have received had their elective deferrals not been limited by IRS rules. Participants in this plan can defer up to 50% of their salary and 85% of their bonus on a pre-tax basis.
In fiscal year 2024, Del Taco's contributions to this non-qualified deferred compensation plan amounted to $0.2 million. In the preceding years, the contributions were $0.1 million in fiscal year 2023 and less than $0.1 million in fiscal year 2022. The document does not specify where the non-qualified deferred compensation plan is classified within the condensed consolidated balance sheets.
As the specific classification of the non-qualified deferred compensation plan within Del Taco's condensed consolidated balance sheets is not detailed in this excerpt, prospective franchisees should seek clarification from Del Taco regarding its exact accounting treatment and balance sheet presentation. Understanding how this plan is reflected in the financial statements can provide additional insight into the company's financial obligations and executive compensation structure.