What was the interest cost for Qualifi-related benefits for Del Taco in 2023?
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) | $ | (12,65 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the interest cost related to Qualifi benefits in 2023 was $16,068. This figure represents the cost of interest accrued on the benefit obligations associated with the Qualifi plan for that fiscal year.
For a prospective franchisee, understanding these figures provides insight into the financial obligations Del Taco has towards its employee benefit programs. While franchisees are not directly responsible for these costs, they reflect the overall financial health and stability of the Del Taco system. Knowing the interest costs associated with these benefits can help franchisees assess the long-term financial planning and management of the company.
It's important to note that these figures are part of the broader financial statements and should be considered in conjunction with other financial data to gain a comprehensive understanding of Del Taco's financial position. Franchisees should review the complete financial statements and consult with financial advisors to fully understand the implications of these figures.