<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One):
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
--- EXCHANGE ACT OF 1934.
For the fiscal year ended December 31, 1997
-----------------
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
--- EXCHANGE ACT OF 1934.
For the transition period from to
-------------------- --------------------
Commission file number 1-9390
--------------
FOODMAKER, INC. EASY$AVER PLUS PLAN
(Full title of the Plan)
FOODMAKER, INC.
(Name of issuer of the securities held pursuant to the Plan)
9330 Balboa Avenue
San Diego, CA 92123
(Address of principal executive offices)
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Financial Statements and Schedules
December 31, 1997 and 1996
(With Independent Auditors' Report Thereon)
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
December 31, 1997 and 1996
TABLE OF CONTENTS
Page Number
-----------
Independent Auditors' Report 1
Statement of Net Assets Available for Benefits With Fund Information
as of December 31, 1997 2
Statement of Net Assets Available for Benefits With Fund Information
as of December 31, 1996 4
Statement of Changes in Net Assets Available for Benefits
With Fund Information for the year ended December 31, 1997 6
Statement of Changes in Net Assets Available for Benefits
With Fund Information for the year ended December 31, 1996 8
Notes to Financial Statements 11
Schedule I - Line 27a - Schedule of Assets Held for Investment Purposes 17
Schedule II - Line 27d - Schedule of Reportable Transactions 19
<PAGE>
Independent Auditors' Report
----------------------------
The Participants and the
Administrative Committee
Foodmaker, Inc. Easy$aver Plus Plan:
We have audited the accompanying statements of net assets available for benefits
of the Foodmaker, Inc. Easy$aver Plus Plan as of December 31, 1997 and 1996, and
the related statements of changes in net assets available for benefits for each
of the years in the two-year period ended December 31, 1997. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1997 and 1996, and the changes in net assets available for benefits
for each of the years in the two-year period ended December 31, 1997, in
conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules I and II are
presented for the purpose of additional analysis and are not a required part of
the basic financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. These schedules are the
responsibility of the Plan's management. The fund information in the statements
of net assets available for benefits with fund information and the statements of
changes in net assets available for benefits with fund information is presented
for purposes of additional analysis rather than to present the net assets
available for benefits and changes in net assets available for benefits of each
fund. The supplemental schedules and fund information have been subjected to
the auditing procedures applied in the audits of the basic financial statements
and, in our opinion, are fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
KPMG PEAT MARWICK LLP
San Diego, California
June 15, 1998
-1-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Net Assets Available for Benefits With Fund Information
December 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Dreyfus
Certus Dreyfus Dreyfus Dreyfus Lifetime Dreyfus Neuberger
Stable Short/Int Disciplined Lifetime Growth & Lifetime & Berman
Value Govt Stock Income Income Growth Gaurdian Sub
Fund Fund Fund Fund Fund Fund Trust Total
---- ---- ---- ---- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value:
Common/collective trust funds $ - - - - - - - -
Common stocks - - - - - - - -
Mutual funds 6,254 1,018 7,537 244 10,529 938 966 27,486
Participant notes receivable - - - - - - - -
------- ------- ------- ------- ------- ------- ------- -------
6,254 1,018 7,537 244 10,529 938 966 27,486
Investments, at contract value:
Guaranteed investment contracts 5,347 - - - - - - 5,347
------- ------- ------- ------- ------- ------- ------- -------
Total investments 11,601 1,018 7,537 244 10,529 938 966 32,833
------- ------- ------- ------- ------- ------- ------- -------
Receivables:
Due from broker - 2 10 1 26 10 3 52
Interest 69 - - - - - - 69
------- ------- ------- ------- ------- ------- ------- -------
69 2 10 1 26 10 3 121
------- ------- ------- ------- ------- ------- ------- -------
Cash 1,613 - - - - - - 1,613
------- ------- ------- ------- ------- ------- ------- -------
Total assets 13,283 1,020 7,547 245 10,555 948 969 34,567
------- ------- ------- ------- ------- ------- ------- -------
Liabilities
Accrued expenses 24 - - - - - - 24
Due to broker - - - - - - - -
------- ------- ------- ------- ------- ------- ------- -------
24 - - - - - - 24
------- ------- ------- ------- ------- ------- ------- -------
Net assets available for benefits $13,259 1,020 7,547 245 10,555 948 969 34,543
======= ======= ======= ======= ======= ======= ======= =======
(Cont-
inued)
</TABLE>
-2-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Net Assets Available for Benefits With Fund Information, Continued
December 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Warburg
Crabbe Crabbe Pincus Foodmaker,
Huson Heartland Huson Intl. Inc. Participant
Sub Equity Value Special Equity Common Notes
Total Fund Fund Fund Fund Stock Receivable Total
----- ---- ---- ---- ---- ----- ---------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value:
Common/collective trust funds $ - - - - - 48 - 48
Common stocks - - - - - 4,118 - 4,118
Mutual funds 27,486 394 1,301 198 439 - - 29,818
Participant notes receivable - - - - - - 3,801 3,801
------- ------- ------- ------- ------- ------- ------- -------
27,486 394 1,301 198 439 4,166 3,801 37,785
Investments, at contract value:
Guaranteed investment contracts 5,347 - - - - - - 5,347
------- ------- ------- ------- ------- ------- ------- -------
Total investments 32,833 394 1,301 198 439 4,166 3,801 43,132
------- ------- ------- ------- ------- ------- ------- -------
Receivables:
Due from broker 52 1 9 - 1 57 - 120
Interest 69 - - - - - - 69
------- ------- ------- ------- ------- ------- ------- -------
121 1 9 - 1 57 - 189
------- ------- ------- ------- ------- ------- ------- -------
Cash 1,613 - - - - - - 1,613
------- ------- ------- ------- ------- ------- ------- -------
Total assets 34,567 395 1,310 198 440 4,223 3,801 44,934
------- ------- ------- ------- ------- ------- ------- -------
Liabilities
Accrued expenses 24 - - - - - - 24
Due to broker - - - - - 22 - 22
------- ------- ------- ------- ------- ------- ------- -------
24 - - - - 22 - 46
------- ------- ------- ------- ------- ------- ------- -------
Net assets available for benefits $34,543 395 1,310 198 440 4,201 3,801 44,888
======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Net Assets Available for Benefits With Fund Information
December 31, 1996
(in thousands)
<TABLE>
<CAPTION>
Dreyfus
Certus Dreyfus Dreyfus Dreyfus Lifetime Dreyfus Neuberger
Stable Short/Int Disciplined Lifetime Growth & Lifetime & Berman
Value Govt Stock Income Income Growth Gaurdian Sub
Fund Fund Fund Fund Fund Fund Trust Total
---- ---- ---- ---- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value:
Common/collective trust funds $ 41 9 24 4 30 8 8 124
Common stocks - - - - - - - -
Mutual funds 3,554 918 5,355 106 8,954 300 396 19,583
Participant notes receivable - - - - - - - -
------- ------- ------- ------- ------- ------- ------- -------
3,595 927 5,379 110 8,984 308 404 19,707
Investments, at contract value:
Guaranteed investment contracts 9,896 - - - - - - 9,896
------- ------- ------- ------- ------- ------- ------- -------
Total investments 13,491 927 5,379 110 8,984 308 404 29,603
------- ------- ------- ------- ------- ------- ------- -------
Receivables:
Due from broker - 8 43 - 48 1 2 102
Interest 67 - - - - - - 67
------- ------- ------- ------- ------- ------- ------- -------
67 8 43 - 48 1 2 169
------- ------- ------- ------- ------- ------- ------- -------
Total assets 13,558 935 5,422 110 9,032 309 406 29,772
------- ------- ------- ------- ------- ------- ------- -------
Liabilities
Accrued expenses 12 - - - - - - 12
Due to broker - - - - - - - -
------- ------- ------- ------- ------- ------- ------- -------
12 - - - - - - 12
------- ------- ------- ------- ------- ------- ------- -------
Net assets available for benefits $13,546 935 5,422 110 9,032 309 406 29,760
======= ======= ======= ======= ======= ======= ======= =======
(Cont-
inued)
</TABLE>
-4-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Net Assets Available for Benefits
With Fund Information, Continued
December 31, 1996
(in thousands)
<TABLE>
<CAPTION>
Warburg
Crabbe Crabbe Pincus Foodmaker,
Huson Heartland Huson Intl. Inc. Participant
Sub Equity Value Special Equity Common Notes
Total Fund Fund Fund Fund Stock Receivable Total
----- ---- ---- ---- ---- ----- ---------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value:
Common/collective trust funds $ 124 4 7 2 4 12 - 153
Common stocks - - - - - 2,288 - 2,288
Mutual funds 19,583 169 575 89 222 - - 20,638
Participant notes receivable - - - - - - 3,231 3,231
------- ------- ------- ------- ------- ------- ------- -------
19,707 173 582 91 226 2,300 3,231 26,310
Investments, at contract value:
Guaranteed investment contracts 9,896 - - - - - - 9,896
------- ------- ------- ------- ------- ------- ------- -------
Total investments 29,603 173 582 91 226 2,300 3,231 36,206
------- ------- ------- ------- ------- ------- ------- -------
Receivables:
Due from broker 102 2 2 1 - 8 - 115
Interest 67 - - - - - - 67
------- ------- ------- ------- ------- ------- ------- -------
169 2 2 1 - 8 - 182
------- ------- ------- ------- ------- ------- ------- -------
Total assets 29,772 175 584 92 226 2,308 3,231 36,388
------- ------- ------- ------- ------- ------- ------- -------
Liabilities
Accrued expenses 12 - - - - - - 12
Due to broker - - - - - 3 - 3
------- ------- ------- ------- ------- ------- ------- -------
12 - - - - 3 - 15
------- ------- ------- ------- ------- ------- ------- -------
Net assets available for benefits $29,760 175 584 92 226 2,305 3,231 36,373
======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
-5-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Changes in Net Assets Available for Benefits
With Fund Information
Year ended December 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Dreyfus
Certus Dreyfus Dreyfus Dreyfus Lifetime Dreyfus Neuberger
Stable Short/Int Disciplined Lifetime Growth & Lifetime & Berman
Value Govt Stock Income Income Growth Gaurdian Sub
Fund Fund Fund Fund Fund Fund Trust Total
---- ---- ---- ---- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ - (1) 1,702 8 1,461 109 74 3,353
Interest 819 - - - - - - 819
Dividends - 57 50 12 354 25 4 502
------- ------- ------- ------- ------- ------- ------- -------
819 56 1,752 20 1,815 134 78 4,674
------- ------- ------- ------- ------- ------- ------- -------
Contributions:
Participants' 949 198 615 108 731 275 241 3,117
Employer's 317 60 172 34 218 73 59 933
------- ------- ------- ------- ------- ------- ------- -------
1,266 258 787 142 949 348 300 4,050
------- ------- ------- ------- ------- ------- ------- -------
Total additions 2,085 314 2,539 162 2,764 482 378 8,724
------- ------- ------- ------- ------- ------- ------- -------
Deductions:
Deductions in net assets attributed to:
Benefits paid to participants 1,018 148 578 24 819 31 43 2,661
Administrative expenses 54 2 7 1 9 1 1 75
------- ------- ------- ------- ------- ------- ------- -------
Total deductions 1,072 150 585 25 828 32 44 2,736
------- ------- ------- ------- ------- ------- ------- -------
Net increase prior to
interfund transfers 1,013 164 1,954 137 1,936 450 334 5,988
Interfund transfers (1,300) (79) 171 (2) (413) 189 229 (1,205)
------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) (287) 85 2,125 135 1,523 639 563 4,783
Net assets available for benefits:
Beginning of year 13,546 935 5,422 110 9,032 309 406 29,760
------- ------- ------- ------- ------- ------- ------- -------
End of year $13,259 1,020 7,547 245 10,555 948 969 34,543
======= ======= ======= ======= ======= ======= ======= =======
(Cont-
inued)
</TABLE>
-6-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Changes in Net Assets Available for Benefits
With Fund Information, Continued
Year ended December 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Warburg
Crabbe Crabbe Pincus Foodmaker,
Huson Heartland Huson Intl. Inc. Participant
Sub Equity Value Special Equity Common Notes
Total Fund Fund Fund Fund Stock Receivable Total
----- ---- ---- ---- ---- ----- ---------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 3,353 54 177 8 (38) 1,665 - 5,219
Interest 819 - - - - 2 308 1,129
Dividends 502 1 6 2 6 - - 517
------- ------- ------- ------- ------- ------- ------- -------
4,674 55 183 10 (32) 1,667 308 6,865
------- ------- ------- ------- ------- ------- ------- -------
Contributions:
Participants' 3,117 124 236 64 126 381 - 4,048
Employer's 933 29 55 14 26 103 - 1,160
------- ------- ------- ------- ------- ------- ------- -------
4,050 153 291 78 152 484 - 5,208
------- ------- ------- ------- ------- ------- ------- -------
Total additions 8,724 208 474 88 120 2,151 308 12,073
------- ------- ------- ------- ------- ------- ------- -------
Deductions:
Deductions in net assets attributed to:
Benefits paid to participants 2,661 22 36 16 18 491 232 3,476
Administrative expenses 75 1 1 - 1 4 - 82
------- ------- ------- ------- ------- ------- ------- -------
Total deductions 2,736 23 37 16 19 495 232 3,558
------- ------- ------- ------- ------- ------- ------- -------
Net increase prior to
interfund transfers 5,988 185 437 72 101 1,656 76 8,515
Interfund transfers (1,205) 35 289 34 113 240 494 -
------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) 4,783 220 726 106 214 1,896 570 8,515
Net assets available for benefits:
Beginning of year 29,760 175 584 92 226 2,305 3,231 36,373
------- ------- ------- ------- ------- ------- ------- -------
End of year $34,543 395 1,310 198 440 4,201 3,801 44,888
======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
-7-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Changes in Net Assets Available for Benefits
With Fund Information
Year ended December 31, 1996
(in thousands)
<TABLE>
<CAPTION>
Fidelity Twentieth Certus Dreyfus Dreyfus
Equity Fixed Century Stable Short/Int Disciplined
Income Income Select Value Govt Stock Sub
Fund Fund Fund Fund Fund Fund Total
---- ---- ---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Additions
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 380 - 139 - (17) 689 1,191
Interest 1 147 1 611 11 - 771
Dividends 179 - - - 38 49 266
------- ------- ------- ------- ------- ------- -------
560 147 140 611 32 738 2,228
------- ------- ------- ------- ------- ------- -------
Contributions:
Participants' 174 288 113 753 231 429 1,988
Employer's 52 97 32 259 65 125 630
------- ------- ------- ------- ------- ------- -------
226 385 145 1,012 296 554 2,618
------- ------- ------- ------- ------- ------- -------
Total additions 786 532 285 1,623 328 1,292 4,846
------- ------- ------- ------- ------- ------- -------
Deductions
Deductions in net assets attributed to:
Benefits paid to participants 431 1,025 246 634 47 164 2,547
Administrative expenses 7 37 6 47 8 8 113
------- ------- ------- ------- ------- ------- -------
Total deductions 438 1,062 252 681 55 172 2,660
------- ------- ------- ------- ------- ------- -------
Net increase (decrease) prior to
interfund transfers 348 (530) 33 942 273 1,120 2,186
Interfund transfers (9,371) (13,944) (3,055) 12,604 (40) 4,302 (9,504)
------- ------- ------- ------- ------- ------- -------
Net increase (decrease) (9,023) (14,474) (3,022) 13,546 233 5,422 (7,318)
Net assets available for benefits:
Beginning of year 9,023 14,474 3,022 - 702 - 27,221
------- ------- ------- ------- ------- ------- -------
End of year $ - - - 13,546 935 5,422 19,903
======= ======= ======= ======= ======= ======= =======
(Cont-
inued)
</TABLE>
-8-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Changes in Net Assets Available for Benefits
With Fund Information, Continued
Year ended December 31, 1996
(in thousands)
<TABLE>
<CAPTION>
Dreyfus
Dreyfus Lifetime Dreyfus Neuberger Crabbe
Lifetime Growth & Lifetime & Berman Huson
Sub Income Income Growth Guardian Equity Sub
Total Fund Fund Fund Trust Fund Total
----- ---- ---- ---- ----- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Additions
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 1,191 (1) 667 19 38 14 1,928
Interest 771 - 1 - - - 772
Dividends 266 5 190 5 2 1 469
------- ------- ------- ------- ------- ------- -------
2,228 4 858 24 40 15 3,169
Contributions:
Participants' 1,988 78 578 159 125 77 3,005
Employer's 630 24 177 46 33 20 930
------- ------- ------- ------- ------- ------- -------
2,618 102 755 205 158 97 3,935
------- ------- ------- ------- ------- ------- -------
Total additions 4,846 106 1,613 229 198 112 7,104
------- ------- ------- ------- ------- ------- -------
Deductions
Deductions in net assets attributed to:
Benefits paid to participants 2,547 6 440 10 2 2 3,007
Administrative expenses 113 1 12 1 - - 127
------- ------- ------- ------- ------- ------- -------
Total deductions 2,660 7 452 11 2 2 3,134
------- ------- ------- ------- ------- ------- -------
Net increase (decrease) prior to
interfund transfers 2,186 99 1,161 218 196 110 3,970
Interfund transfers (9,504) 11 7,871 91 210 65 (1,256)
------- ------- ------- ------- ------- ------- -------
Net increase (decrease) (7,318) 110 9,032 309 406 175 2,714
Net assets available for benefits:
Beginning of year 27,221 - - - - - 27,221
------- ------- ------- ------- ------- ------- -------
End of year $19,903 110 9,032 309 406 175 29,935
======= ======= ======= ======= ======= ======= =======
(Cont-
inued)
</TABLE>
-9-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Changes in Net Assets Available for Benefits
With Fund Information, Continued
Year ended December 31, 1996
(in thousands)
<TABLE>
<CAPTION>
Warburg
Crabbe Pincus Foodmaker,
Heartland Huson Intl. Inc. Participant
Sub Value Special Equity Common Notes
Total Fund Fund Fund Stock Receivable Total
----- ---- ---- ---- ----- ---------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Additions
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 1,928 39 4 2 689 - 2,662
Interest 772 - - - 1 228 1,001
Dividends 469 1 1 5 - - 476
------- ------- ------- ------- ------- ------- -------
3,169 40 5 7 690 228 4,139
Contributions:
Participants' 3,005 125 43 67 275 - 3,515
Employer's 930 31 11 18 78 - 1,068
------- ------- ------- ------- ------- ------- -------
3,935 156 54 85 353 - 4,583
------- ------- ------- ------- ------- ------- -------
Total additions 7,104 196 59 92 1,043 228 8,722
------- ------- ------- ------- ------- ------- -------
Deductions
Deductions in net assets attributed to:
Benefits paid to participants 3,007 2 1 1 163 233 3,407
Administrative expenses 127 - - - 2 - 129
------- ------- ------- ------- ------- ------- -------
Total deductions 3,134 2 1 1 165 233 3,536
------- ------- ------- ------- ------- ------- -------
Net increase (decrease) prior to
interfund transfers 3,970 194 58 91 878 (5) 5,186
Interfund transfers (1,256) 390 34 135 4 693 -
------- ------- ------- ------- ------- ------- -------
Net increase (decrease) 2,714 584 92 226 882 688 5,186
Net assets available for benefits:
Beginning of year 27,221 - - - 1,423 2,543 31,187
------- ------- ------- ------- ------- ------- -------
End of year $29,935 584 92 226 2,305 3,231 36,373
======= ======= ======= ======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
-10-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1997 and 1996
1. DESCRIPTION OF THE PLAN
The following brief description of the Foodmaker, Inc. Easy$aver Plus Plan
(the "Plan") is provided for general information purposes only. Participants
should refer to the Plan document for a more complete description of the Plan's
provisions.
a. General:
The Plan was established effective April 1, 1983 for the purpose of
enabling employees to enhance their long-range financial security through
regular savings with the benefit of Foodmaker, Inc. (the "Company")
contributions. The benefits provided under the Plan are intended to supplement
the retirement benefits provided under other plans sponsored by the Company.
The Plan is subject to certain provisions of the Employee Retirement Income
Security Act of 1974 ("ERISA"); however, benefits under the Plan are not
eligible for plan termination insurance provided by the Pension Benefit Guaranty
Corporation under Title IV of ERISA.
The Company, as plan sponsor, makes contributions to the Plan and pays a
portion of the administrative costs. Subject to certain restrictions, the plan
sponsor also has the authority and responsibility for the general administration
of the Plan. The Chairperson of the Company's Board of Directors is authorized
to appoint the members of the Administrative Committee (the "Committee").
Mellon Bank, N.A. has become successor trustee to Northern Trust Company, and
has the authority to hold, manage and protect the assets of the Plan in
accordance with the provisions of the Plan. Beginning in April 1996,
recordkeeping administrative services are performed by Dreyfus Service
Corporation. In connection with this change in recordkeeper, the Plan offers
daily investment trading and has increased the number of investment choices to
twelve.
The Plan covers substantially all regular administrative, clerical,
warehouse and distribution employees, and maintenance and equipment technicians
of the Company who have completed one year of service, receive regular
compensation from a payroll in the United States, and have attained age 21. For
employees hired on or after April 1, 1996, the one year of service requirement
was changed to one year of service in which the employee is credited with at
least 1000 hours of service. Participation by eligible employees is voluntary.
-11-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1997 and 1996
(Continued)
1. DESCRIPTION OF THE PLAN (Continued)
b. Contributions:
Participants can elect to have the Company contribute to the Plan any
amount from 2% to 12% of their compensation in 1% increments through payroll
deductions not to exceed $9,500. This deferral is referred to as a pre-tax
deferral, i.e., it is not subject to income taxes in the year deferred. Except
as described below, the Company has made matching contributions equal to 50% of
each participant's first 4% of base compensation deferred. Effective April 3,
1995, the Company temporarily suspended matching contributions. Effective
October 2, 1995, the Company reinstated matching contributions. Prior to
January 1, 1989, participants who deferred at least 4% of compensation could
have elected to contribute an additional 1% to 10% of compensation, in 1%
increments, on an after-tax basis. Beginning January 1, 1989, after-tax
contributions could have been made whether or not the participant had elected to
make any pre-tax deferrals. Effective April 1, 1991, participants were no
longer able to make after-tax contributions to the Plan.
c. Vesting:
Participants have a fully vested interest in their pre-tax deferrals and
after-tax contributions plus actual earnings thereon. Company contributions
vest at the rate of 25 percent for each year of service by the participant or
upon attainment of age sixty-five, disability, death or termination of the Plan.
The vested amount in a participant's account normally is distributed upon
termination of employment. The amount of the Company's contribution that is not
vested with respect to any participant is forfeited upon termination of
employment, but is restored if the participant becomes an eligible employee
within five years after termination. Forfeitures are used to reduce employer
contributions. During the year, no forfeitures were used to reduce employer
contributions. As of December 31, 1997, plan assets included $34,247 of
unallocated forfeitures.
d. Participant Accounts:
As of December 31, 1997, the trustee maintains twelve investment funds.
Effective March 31, 1996, the Fidelity Equity Income Fund and the Twentieth
Century Select Fund were discontinued. Participant balances were reinvested on
April 1, 1996 in the Dreyfus Lifetime Growth & Income Fund and the Dreyfus
Disciplined Stock Fund, respectively. Also effective April 1, 1996, the Fixed
Income Fund was renamed the Certus Stable Value Fund and investment management
duties previously performed by State Street Bank are now performed by Certus.
Participants may direct their pre-tax deferrals, after-tax and Company matching
contributions to be placed in any of the twelve investment funds allocated in
multiples of 10% to any combination of these investment funds. Earnings derived
from the assets of any investment fund are reinvested in the fund to which they
relate.
-12-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1997 and 1996
(Continued)
1. DESCRIPTION OF THE PLAN (Continued)
d. Participant Accounts (continued):
Participants may elect to transfer all or any multiple of 10% of the value
of their accounts among funds on any market trading day. Pending investment of
the assets in an investment fund, the trustee may temporarily make certain
short-term investments.
The Plan permits voluntary withdrawals by participants of their after-tax
contributions and related earnings no more than once every six months. Because
of certain Internal Revenue Service regulations, participants may, with
Committee approval, withdraw pre-tax deferrals (exclusive of earnings for
withdrawals after December 31, 1989), Company matching contributions (if the
participant is fully vested) and related earnings only in the event of a
financial hardship. The Plan permits participants to borrow from the investment
funds. Loans are subject to such rules and regulations as the Committee may
adopt, including but not limited to the following: (1) the amount of the loan
is subject to certain limitations, (2) the loan bears interest at prevailing
rates and repayments are to be made through payroll deductions, and (3) the
payment of a processing fee is required. Amounts loaned to participants are
treated as invested in such loans and, to the extent unpaid, do not generate any
earnings other than interest thereon.
e. Use of Estimates:
The Plan sponsor and administrator have made a number of estimates and
assumptions relating to the reporting of net assets available for benefits and
changes in net assets available for benefits to prepare the financial statements
in conformity with generally accepted accounting principles. Actual results
could differ from those estimates.
f. Reclassifications:
Certain 1996 balances have been reclassified to conform to 1997
presentation.
2. SUMMARY OF ACCOUNTING POLICIES
The financial statements of the Plan are prepared using the accrual method
of accounting.
The Plan's common/collective trust funds are stated at fair value. The
Plan's investments in common stocks and mutual funds are stated at fair value,
which is determined by quoted market prices. Purchases and sales of securities
are recorded on a trade-date basis. All receivables and liabilities are valued
at cost, which approximates fair value.
-13-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1997 and 1996
(Continued)
2. SUMMARY OF ACCOUNTING POLICIES (Continued)
The Plan's guaranteed investment contracts with insurance companies are
recorded at contract value. Contract value represents contributions made under
the contract, plus interest at the contract rate, less Plan withdrawals and
certain expenses (See Note 4).
3. INVESTMENTS
Investments consist of the following at December 31, 1997 and 1996:
<TABLE>
<CAPTION>
December 31, 1997 December 31, 1996
---------------------------- -----------------------------
Contract Fair Contract Fair
Description of Investment Cost Value Value Cost Value Value
- ------------------------- ---- ----- ----- ---- ----- -----
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
TBC, Inc. Pooled Employee Fund $ 48 - 48 153 - 153
Guaranteed Investment Contracts 5,347 5,347 - 9,896 9,896 -
Dreyfus Certus Stable Value Fund
(net asset value $1.00
in 1997 and 1996) 6,254 - 6,254 3,554 - 3,554
Dreyfus Short-Intermediate
Government Fund (net asset
value $11.14 and $10.87
in 1997 and 1996, respectively) 1,046 - 1,018 918 - 918
Dreyfus Disciplined Stock Fund
(net asset value $26.91
and $26.40 in 1997 and
1996, respectively) 6,518 - 7,537 5,031 - 5,355
Dreyfus Lifetime Income Fund
(net asset value $13.40 and
$12.78 in 1997 and 1996,
respectively) 254 - 244 110 - 106
Dreyfus Lifetime Growth
& Income Fund
(net asset value $15.17
and $15.51 in 1997 and
1996, respectively) 10,169 - 10,529 8,497 - 8,954
</TABLE>
-14-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1997 and 1996
(Continued)
3. INVESTMENTS (Continued)
<TABLE>
<CAPTION>
December 31, 1997 December 31, 1996
---------------------------- -----------------------------
Contract Fair Contract Fair
Description of Investment Cost Value Value Cost Value Value
- ------------------------- ---- ----- ----- ---- ----- -----
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
Dreyfus Lifetime Growth Fund
(net asset value $17.30
and $16.26 in 1997 and 1996,
respectively) 1,045 - 938 302 - 300
Neuberger & Berman Guardian Trust
(net asset value $17.14 and
$15.87 in 1997 and 1996,
respectively) 957 - 966 366 - 396
Crabbe Huson Equity Fund
(net asset value $20.41 and
$18.85 in 1997 and 1996,
respectively) 429 - 394 169 - 169
Heartland Value Fund
(net asset value $34.55 and
$31.65 in 1997 and 1996,
respectively) 1,327 - 1,301 569 - 575
Crabbe Huson Special Fund
(net asset value $15.48 and
$14.33 in 1997 and 1996,
respectively) 219 - 198 86 - 89
Warburg Pincus International
Equity Fund (net asset value
$20.75 and $20.84 in 1997
and 1996, respectively) 536 - 439 223 - 222
Foodmaker, Inc. Common Stock 2,806 - 4,118 1,895 - 2,288
Participant notes receivable 3,801 - 3,801 3,231 - 3,231
------- ------- ------- ------- ------- -------
$40,756 5,347 37,785 35,000 9,896 26,310
======= ======= ======= ======= ======= =======
</TABLE>
4. INVESTMENT CONTRACTS WITH INSURANCE COMPANIES
The Certus Stable Value Fund includes various guaranteed investment
contracts ("GIC's") with insurance companies. These GIC's guarantee a fixed
rate of interest over a specified period of time. Funds may be withdrawn from
any GIC by the Plan, prior to the maturity of the GIC, in order to meet the
withdrawal elections by the Plan participants from the Certus Stable Value Fund.
The average yield on these contracts was 6.4% and 6.2% for the plan years ended
December 31, 1997 and 1996, respectively. The crediting interest rates on these
contracts approximated the average yield as of December 31, 1997 and 1996.
-15-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1997 and 1996
(Continued)
5. FEDERAL INCOME TAXES
The Internal Revenue Service (IRS) has determined and informed the Company
by a letter dated April 1, 1987, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code. The Plan was
amended and restated thereafter effective January 1, 1988 and January 1, 1989.
On November 28, 1995, the IRS issued a favorable tax determination letter
related to these restatements. The Plan was further restated effective
January 1, 1996. The Plan sponsor believes that the Plan continues to qualify
and to operate as designed, and the related trust is tax exempt.
-16-
<PAGE>
Schedule I
----------
FOODMAKER, INC. EASY$AVER PLUS PLAN
Line 27a-Schedule of Assets Held for Investment Purposes
(in thousands)
<TABLE>
<CAPTION>
December 31, 1997 December 31, 1996
------------------------------------ ------------------------------------
Number of Current Number of Current
Description of Investment Shares/Units Cost Value Shares/Units Cost Value
- ------------------------- ------------ ---- ------- ------------ ---- -------
<S> <C> <C> <C> <C> <C> <C>
Common/Collective Trust Funds:
* TBC, Inc. Pooled Employee Fund 48 $ 48 48 153 $ 153 153
------- ------- ------- -------
48 48 153 153
------- ------- ------- -------
Guaranteed Investment Contracts:
Metropolitan, 6.10% matures 6/30/97 - - - - 701 701
NY Life, 5.03% matures 6/30/98 - 312 312 - 591 591
Principal Mutual, 5.02% matures
12/31/97 - - - - 502 502
Hartford, 4.79% matures 12/31/97 - - - - 337 337
Provident, 4.18% matures 6/30/97 - - - - 312 312
Hartford, 4.76% matures 6/30/97 - - - - 550 550
NY Life, 6.22% matures 12/31/98 - 280 280 - 524 524
Principal Mutual, 6.86% matures
6/30/99 - 665 665 - 1,249 1,249
Life of VA, 7.76% matures
12/31/99 - 865 865 - 800 800
Hancock, 7.61% matures
quarterly through 12/31/99 - 562 562 - 675 675
Transamerica, 5.49% matures
9/30/98 - 666 666 - 1,262 1,262
Metropolitan, 7.28% matures
12/31/99 - 1,104 1,104 - 1,135 1,135
NY Life, 6.05% matures
9/30/98 and 12/31/98 - 893 893 - 1,258 1,258
------- ------- ------- -------
5,347 5,347 9,896 9,896
------- ------- ------- -------
(Continued)
</TABLE>
-17-
<PAGE>
Schedule I (Continued)
----------------------
FOODMAKER, INC. EASY$AVER PLUS PLAN
Line 27a-Schedule of Assets Held for Investment Purposes
(in thousands)
<TABLE>
<CAPTION>
December 31, 1997 December 31, 1996
------------------------------------ ------------------------------------
Number of Current Number of Current
Description of Investment Shares/Units Cost Value Shares/Units Cost Value
- ------------------------- ------------ ---- ------- ------------ ---- -------
<S> <C> <C> <C> <C> <C> <C>
Mutual Funds:
* Dreyfus Certus Stable Value Fund
(net asset value $1.00 in 1997
and 1996) 6,253.18 6,254 6,254 3,553.76 3,554 3,554
* Dreyfus Short-Intermediate Government
Fund (net asset value $11.14 and
$10.87 in 1997 and 1996, respectively) 93.91 1,046 1,018 84.45 918 918
* Dreyfus Disciplined Stock Fund
(net asset value $26.91 and $26.40 in
1997 and 1996, respectively) 242.20 6,518 7,537 202.86 5,031 5,355
* Dreyfus Lifetime Income Fund
(net asset value $13.40 and $12.78 in
1997 and 1996, respectively) 18.94 254 244 8.27 110 106
* Dreyfus Lifetime Growth & Income Fund
(net asset value $15.17 and $15.51 in
1997 and 1996, respectively) 670.35 10,169 10,529 577.32 8,497 8,954
* Dreyfus Lifetime Growth Fund
(net asset value $17.30 and $16.26 in
1997 and 1996, respectively) 60.39 1,045 938 18.48 302 300
Neuberger & Berman Guardian Trust
(net asset value $17.14 and $15.87 in
1997 and 1996, respectively) 55.81 957 966 24.92 366 396
Crabbe Huson Equity Fund
(net asset value $20.41 and $18.85 in
1997 and 1996, respectively) 21.03 429 394 8.97 169 169
Heartland Value Fund
(net asset value $34.55 and $31.65 in
1997 and 1996, respectively) 38.40 1,327 1,301 18.16 569 575
Crabbe Huson Special Fund
(net asset value $15.48 and $14.33 in
1997 and 1996, respectively) 14.16 219 198 6.17 86 89
Warburg Pincus International Equity
Fund (net asset value $20.75 and
$20.84 in 1997 and 1996, respectively) 25.83 536 439 10.62 223 222
------- ------- ------- -------
28,754 29,818 19,825 20,638
* Foodmaker, Inc. Common Stock 273.39 2,806 4,118 257.23 1,895 2,288
* Participant notes receivable - 3,801 3,801 - 3,231 3,231
------- ------- ------- -------
$40,756 43,132 35,000 36,206
======= ======= ======= =======
* Party-in-interest
</TABLE>
See accompanying Independent Auditors' Report.
-18-
<PAGE>
Schedule II
-----------
FOODMAKER, INC. EASY$AVER PLUS PLAN
Line 27d-Schedule of Reportable Transactions
Year ended December 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Current
Value
of Asset on
Identity of Party Description Purchase Selling Cost of Transaction Net
Involved of Asset Price Price Asset Date Gain
-------- -------- ----- ----- ----- ---- ----
<S> <S> <C> <C> <C> <C> <C>
The Dreyfus Corporation Dreyfus Lifetime Portfolio $1,914 - 1,914 1,914 -
Growth & Income - 1,844 1,597 1,844 247
Income Fund
The Dreyfus Corporation Dreyfus Disciplined 2,118 - 2,118 2,118 -
Portfolio Stock Fund
Foodmaker, Inc. Common Stock 1,904 - 1,904 1,904 -
The Boston Company TBC, Inc. Pooled 8,622 - 8,622 8,622 -
Employee Fund - 8,766 8,766 8,766 -
Certus Asset Advisors Certus Stable Value 6,337 - 6,337 6,337 -
Fund - 3,626 3,626 3,626 -
</TABLE>
See accompanying Independent Auditors' Report.
-19-
<PAGE>
EXHIBITS
1. Consent of KPMG Peat Marwick LLP.
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
FOODMAKER, INC. EASY$AVER
PLUS PLAN
Date: June 15, 1998 By:LAWRENCE E. SCHAUF
------------------
Lawrence E. Schauf
Member, Administrative Committee
-20-
<PAGE>
Exhibit 1
Independent Auditors' Consent
-----------------------------
The Board of Directors
Foodmaker, Inc.:
We consent to incorporation by reference in the registration statement (No.
33-54602) on Form S-8 of Foodmaker, Inc. of our report dated June 15, 1998,
relating to the statements of net assets available for benefits of the
Foodmaker, Inc. Easy$aver Plus Plan as of December 31, 1997 and 1996, and the
related statements of changes in net assets available for benefits for each of
the years in the two-year period ended December 31, 1997, and all related
schedules, which report appears in the December 31, 1997 annual report on Form
11-K of the Foodmaker, Inc. Easy$aver Plus Plan.
KPMG PEAT MARWICK LLP
San Diego, California
June 15, 1998
