What was the net periodic benefit cost for Del Taco's SERP in 2023?
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 net periodic benefit cost for the Supplemental Executive Retirement Plan (SERP) in 2023 was $3,886. This figure represents the total cost to Del Taco for providing retirement benefits to its executives under the SERP plan for that year.
The net periodic benefit cost is calculated by combining several factors, including interest cost, actuarial loss, and amortization of unrecognized prior service cost. For 2023, these components totaled $3,149 for interest cost, $718 for actuarial loss, and $19 for amortization of unrecognized prior service cost, resulting in the total net periodic benefit cost of $3,886.
This information is relevant for prospective Del Taco franchisees as it provides insight into the company's financial obligations and how it manages its executive retirement benefits. While it may not directly impact the day-to-day operations of a franchise, it contributes to the overall financial health and stability of the Del Taco brand, which can indirectly affect franchisees. Understanding these costs can help franchisees assess the long-term viability and management practices of the company.