What was the interest cost for SERP-related benefits for Del Taco in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Accumulated benefit obligation | $ 57,097 | $ 53,513 | | Fair value of plan assets | $ _ | $ |
Net periodic benefit cost — The components of the fiscal year net periodic benefit cost were as follows (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Qualified Plan: | |||
| Interest cost | $ 15,791 | $ 16,068 | $ 12,506 |
| Expected return on plan assets | (14,982) | (15,105) | (18,103) |
| Actuarial loss | 2,403 | 2,349 | 2,193 |
| Net periodic benefit (credit) cost | $ 3,212 | $ 3,312 | $ (3,404) |
| SERP: | |||
| Interest cost | $ 3,188 | $ 3,149 | $ 2,173 |
| Actuarial loss | 632 | 718 | 1,666 |
| Amortization of unrecognized prior service cost | 14 | 19 | 19 |
| Net periodic benefit cost | $ 3,834 | $ 3,886 | $ 3, |
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 SERP (Supplemental Executive Retirement Plan) benefits for the fiscal year 2024 was $3,188. This figure represents the cost of interest accrued on the SERP obligations during that year.
In addition to the interest cost, the net periodic benefit cost for SERP includes other components such as actuarial loss and amortization of unrecognized prior service cost. For 2024, these were $632 and $14, respectively, resulting in a total net periodic benefit cost of $3,834 for SERP.
Prospective franchisees should note that these figures relate to Del Taco's corporate-level financial obligations and do not directly impact the operation of a franchised restaurant. However, understanding the overall financial health and obligations of the franchisor can provide valuable context for assessing the stability and long-term viability of the franchise system.