As filed with the Securities and Exchange Commission on June 30, 1999
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, 1998
-----------------
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
- --- EXCHANGE ACT OF 1934.
For the transition period from to
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Commission file number 1-9390
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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, 1998 and 1997
(With Independent Auditors' Report Thereon)
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
December 31, 1998 and 1997
TABLE OF CONTENTS
Page Number
-----------
Independent Auditors' Report 1
Statement of Net Assets Available for Benefits With Fund Information
as of December 31, 1998 2
Statement of Net Assets Available for Benefits With Fund Information
as of December 31, 1997 4
Statement of Changes in Net Assets Available for Benefits
With Fund Information for the year ended December 31, 1998 6
Statement of Changes in Net Assets Available for Benefits
With Fund Information for the year ended December 31, 1997 8
Notes to Financial Statements 10
Schedule I - Line 27a - Schedule of Assets Held for Investment Purposes 16
Schedule II - Line 27d - Schedule of Reportable Transactions 18
<PAGE>
Independent Auditors' Report
----------------------------
The Participants and the Administrative Committee
Foodmaker, Inc. Easy$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, 1998 and 1997, 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, 1998. 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, 1998 and 1997, and the changes in net assets available for benefits
for each of the years in the two-year period ended December 31, 1998, 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 of assets
held for investment purposes and reportable transactions 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 supplemental
schedules are the responsibility of the Plan's management. The Fund Information
in the statements of net assets available for benefits and the statements of
changes in net assets available for benefits 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 LLP
San Diego, California
June 11, 1999
-1-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Net Assets Available for Benefits With Fund Information
December 31, 1998
(in thousands)
<TABLE>
<CAPTION>
Dreyfus 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 $10,840 - - - - - - 10,840
Common stocks - - - - - - - -
Mutual funds - 1,290 10,320 417 12,367 1,397 1,252 27,043
Participant notes receivable - - - - - - - -
------- ------- ------- ------- ------- ------- ------- -------
10,840 1,290 10,320 417 12,367 1,397 1,252 37,883
Investments, at contract value:
Guaranteed investment contracts 2,195 - - - - - - 2,195
------- ------- ------- ------- ------- ------- ------- -------
Total investments 13,035 1,290 10,320 417 12,367 1,397 1,252 40,078
------- ------- ------- ------- ------- ------- ------- -------
Receivables:
Due from broker - - - - - - - -
Interest and dividends 63 20 22 - - - 2 107
------- ------- ------- ------- ------- ------- ------- -------
63 20 22 - - - 2 107
------- ------- ------- ------- ------- ------- ------- -------
Cash 942 - - - - - - 942
------- ------- ------- ------- ------- ------- ------- -------
Total assets 14,040 1,310 10,342 417 12,367 1,397 1,254 41,127
------- ------- ------- ------- ------- ------- ------- -------
Liabilities
Accrued expenses (99) - - - - - - (99)
Due to broker - (2) (59) (1) (126) (2) (3) (193)
------- ------- ------- ------- ------- ------- ------- -------
(99) (2) (59) (1) (126) (2) (3) (292)
------- ------- ------- ------- ------- ------- ------- -------
Net assets available for benefits $13,941 1,308 10,283 416 12,241 1,395 1,251 40,835
======= ======= ======= ======= ======= ======= ======= =======
(Continued)
</TABLE>
-2-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Net Assets Available for Benefits With Fund Information, Continued
December 31, 1998
(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 $10,840 - - - - 30 - 10,870
Common stocks - - - - - 6,142 - 6,142
Mutual funds 27,043 469 1,258 149 594 - - 29,513
Participant notes receivable - - - - - - 4,283 4,283
------- ------- ------- ------- ------- ------- ------- -------
37,883 469 1,258 149 594 6,172 4,283 50,808
Investments, at contract value:
Guaranteed investment contracts 2,195 - - - - - - 2,195
------- ------- ------- ------- ------- ------- ------- -------
Total investments 40,078 469 1,258 149 594 6,172 4,283 53,003
------- ------- ------- ------- ------- ------- ------- -------
Receivables:
Due from broker - - - - - 48 - 48
Interest and dividends 107 - 2 - - - - 109
------- ------- ------- ------- ------- ------- ------- -------
107 - 2 - - 48 - 157
------- ------- ------- ------- ------- ------- ------- -------
Cash 942 - - - - - - 942
------- ------- ------- ------- ------- ------- ------- -------
Total assets 41,127 469 1,260 149 594 6,220 4,283 54,102
------- ------- ------- ------- ------- ------- ------- -------
Liabilities
Accrued expenses (99) - - - - - - (99)
Due to broker (193) (1) (9) - - (29) - (232)
------- ------- ------- ------- ------- ------- ------- -------
(292) (1) (9) - - (29) - (331)
------- ------- ------- ------- ------- ------- ------- -------
Net assets available for benefits $40,835 468 1,251 149 594 6,191 4,283 53,771
======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Net Assets Available for Benefits With Fund Information
December 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Dreyfus 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 $ 6,254 - - - - - - 6,254
Common stocks - - - - - - - -
Mutual funds - 1,018 7,537 244 10,529 938 966 21,232
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 and dividends 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 $13,259 1,020 7,547 245 10,555 948 969 34,543
======= ======= ======= ======= ======= ======= ======= =======
(Continued)
</TABLE>
-4-
<PAGE>
FOODMAKER, INC. EASY$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 $ 6,254 - - - - 48 - 6,302
Common stocks - - - - - 4,118 - 4,118
Mutual funds 21,232 394 1,301 198 439 - - 23,564
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 and dividends 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 $34,543 395 1,310 198 440 4,201 3,801 44,888
======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
-5-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Changes in Net Assets Available for Benefits With Fund Information
Year ended December 31, 1998
(in thousands)
<TABLE>
<CAPTION>
Dreyfus 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 $ - (10) 2,033 19 1,447 196 17 3,702
Interest 813 - 1 - 2 1 1 818
Dividends - 97 79 19 419 29 7 650
------- ------- ------- ------- ------- ------- ------- -------
813 87 2,113 38 1,868 226 25 5,170
------- ------- ------- ------- ------- ------- ------- -------
Contributions:
Participants' 901 191 674 124 684 292 236 3,102
Employer's 264 58 184 36 205 80 57 884
------- ------- ------- ------- ------- ------- ------- -------
1,165 249 858 160 889 372 293 3,986
------- ------- ------- ------- ------- ------- ------- -------
Total additions 1,978 336 2,971 198 2,757 598 318 9,156
------- ------- ------- ------- ------- ------- ------- -------
Deductions
Deductions in net assets attributed to:
Benefits paid to participants (1,202) (72) (481) (46) (786) (126) (116) (2,829)
Administrative expenses (83) (2) (7) (1) (9) (2) (1) (105)
------- ------- ------- ------- ------- ------- ------- -------
Total deductions (1,285) (74) (488) (47) (795) (128) (117) (2,934)
------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) prior to
interfund transfers 693 262 2,483 151 1,962 470 201 6,222
Interfund transfers (11) 26 253 20 (276) (23) 81 70
------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) 682 288 2,736 171 1,686 447 282 6,292
Net assets available for benefits:
Beginning of year 13,259 1,020 7,547 245 10,555 948 969 34,543
------- ------- ------- ------- ------- ------- ------- -------
End of year $13,941 1,308 10,283 416 12,241 1,395 1,251 40,835
======= ======= ======= ======= ======= ======= ======= =======
(Continued)
</TABLE>
-6-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Changes in Net Assets Available for Benefits With Fund
Information, Continued
Year ended December 31, 1998
(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 $ 3,702 (40) (152) (86) 17 2,071 - 5,512
Interest 818 - 1 - - 2 344 1,165
Dividends 650 3 7 - - - - 660
------- ------- ------- ------- ------- ------- ------- -------
5,170 (37) (144) (86) 17 2,073 344 7,337
------- ------- ------- ------- ------- ------- ------- -------
Contributions:
Participants' 3,102 138 246 58 115 478 - 4,137
Employer's 884 33 60 14 29 134 - 1,154
------- ------- ------- ------- ------- ------- ------- -------
3,986 171 306 72 144 612 - 5,291
------- ------- ------- ------- ------- ------- ------- -------
Total additions 9,156 134 162 (14) 161 2,685 344 12,628
------- ------- ------- ------- ------- ------- ------- -------
Deductions
Deductions in net assets attributed to:
Benefits paid to participants (2,829) (38) (135) (10) (33) (258) (328) (3,631)
Administrative expenses (105) (1) (2) - (1) (5) - (114)
------- ------- ------- ------- ------- ------- ------- -------
Total deductions (2,934) (39) (137) (10) (34) (263) (328) (3,745)
------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) prior to
interfund transfers 6,222 95 25 (24) 127 2,422 16 8,883
Interfund transfers 70 (22) (84) (25) 27 (432) 466 -
------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease) 6,292 73 (59) (49) 154 1,990 482 8,883
Net assets available for benefits:
Beginning of year 34,543 395 1,310 198 440 4,201 3,801 44,888
------- ------- ------- ------- ------- ------- ------- -------
End of year $40,835 468 1,251 149 594 6,191 4,283 53,771
======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
-7-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Changes in Net Assets Available for Benefits With Fund Information
Year ended December 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Dreyfus 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 - 1 - - - - 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 $13,259 1,020 7,547 245 10,555 948 969 34,543
======= ======= ======= ======= ======= ======= ======= =======
(Continued)
</TABLE>
-8-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Statement of Changes in Net Assets Available for Benefits With Fund
Information, Continued
Year ended December 31, 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 $34,543 395 1,310 198 440 4,201 3,801 44,888
======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
-9-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
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. The recordkeeping administrative
services are performed by Dreyfus Service Corporation.
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.
Effective 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 1,000 hours of
service. Participation by eligible employees is voluntary.
-10-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(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 $10,000 in 1998 and $9,500 in 1997. 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 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, forfeitures in the amount of $51,517 were
used to reduce employer contributions. As of December 31, 1998, plan assets
included $3,743 of unallocated forfeitures.
d. Participant Accounts:
As of December 31, 1998, the trustee maintains twelve investment funds.
Participants may direct their pre-tax deferrals, after-tax and Company matching
contributions to be placed in any of the twelve investment funds allocated in
multiples of 10% to any combination of these investment funds. Earnings derived
from the assets of any investment fund are reinvested in the fund to which they
relate.
-11-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(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 ("IRS") 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 assets, liabilities and changes
therein, and disclosures of contingent assets and liabilities to prepare the
financial statements in conformity with generally accepted accounting
principles. Actual results could differ from those estimates.
f. Reclassifications:
Certain 1997 balances have been reclassified to conform to 1998
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.
-12-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(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, 1998 and 1997:
<TABLE>
<CAPTION>
December 31, 1998 December 31, 1997
----------------------------- -----------------------------
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 $ 30 - 30 48 - 48
Guaranteed Investment Contracts 2,195 2,195 - 5,347 5,347 -
Dreyfus Certus Stable Value Fund
(net asset value $1.00 in 1998 and 1997) 10,840 - 10,840 6,254 - 6,254
Dreyfus Short-Intermediate Government
Fund (net asset value $11.03 and
$11.14 in 1998 and 1997, respectively) 1,320 - 1,290 1,046 - 1,018
Dreyfus Disciplined Stock Fund
(net asset value $28.75 and $26.91 in
1998 and 1997, respectively) 7,920 - 10,320 6,518 - 7,537
Dreyfus Lifetime Income Fund
(net asset value $13.52 and $13.40 in
1998 and 1997, respectively) 420 - 417 254 - 244
Dreyfus Lifetime Growth & Income Fund
(net asset value $15.42 and $15.17 in
1998 and 1997, respectively) 10,974 - 12,367 10,169 - 10,529
</TABLE>
-13-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(Continued)
3.INVESTMENTS (Continued)
<TABLE>
<CAPTION>
December 31, 1998 December 31, 1997
-------------------------- --------------------------
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 $ 1,346 - 1,397 1,045 - 938
Neuberger & Berman Guardian Trust 1,332 - 1,252 957 - 966
Crabbe Huson Equity Fund 549 - 469 429 - 394
Heartland Value Fund 1,444 - 1,258 1,327 - 1,301
Crabbe Huson Special Fund 238 - 149 219 - 198
Warburg Pincus International Equity Fund 662 - 594 536 - 439
Foodmaker, Inc. Common Stock 3,290 - 6,142 2,806 - 4,118
Participant Notes Receivable 4,283 - 4,283 3,801 - 3,801
------- ------- ------- ------- ------- -------
$46,843 2,195 50,808 40,756 5,347 37,785
======= ======= ======= ======= ======= =======
</TABLE>
4. INVESTMENT CONTRACTS WITH INSURANCE COMPANIES
The Certus Stable Value Fund includes various guaranteed investment
contracts ("GIC's") with insurance companies. These GIC's guarantee a fixed
rate of interest over a specified period of time. Funds may be withdrawn from
any GIC by the Plan, prior to the maturity of the GIC, in order to meet the
withdrawal elections by the Plan participants from the Certus Stable Value
Fund. The average yield on these contracts was 6.3% and 6.4% for the plan years
ended December 31, 1998 and 1997, respectively. The crediting interest rates on
these contracts approximated the average yield as of December 31, 1998 and 1997.
-14-
<PAGE>
FOODMAKER, INC. EASY$AVER PLUS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(Continued)
5. FEDERAL INCOME TAXES
The 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.
-15-
<PAGE>
Schedule I
FOODMAKER, INC. EASY$AVER PLUS PLAN
EIN: 95-2698708
Plan Number: 003
Line 27a-Schedule of Assets Held for Investment Purposes
As of December 31, 1998
(in thousands)
<TABLE>
<CAPTION>
(c)
(b) Description of Investment Including
Identity of Issue, Borrower Maturity Date, Rate of Interest, (d) (e)
(a) Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Common/Collective Trust Funds:
The Boston Company 30 shares of TBC, Inc. Pooled Employee Fund $ 30 30
* Certus Asset Advisors 10,840 shares of Dreyfus Certus Stable Value Fund 10,840 10,840
------- -------
10,870 10,870
Guaranteed Investment Contracts:
Principal Life Insurance Co. Principal Mutual, 6.86% matures 6/30/99 716 716
GE Capital Life of VA, 7.76% matures 12/31/99 623 623
J. Hancock Mutual Life Ins. Co. Hancock, 7.61% matures quarterly through 12/31/99 320 320
Metropolitan Life Insurance Co. Metropolitan, 7.28% matures 12/31/99 536 536
------- -------
2,195 2,195
(Continued)
</TABLE>
-16-
<PAGE>
Schedule I (Continued)
FOODMAKER, INC. EASY$AVER PLUS PLAN
EIN: 95-2698708
Plan Number: 003
Line 27a-Schedule of Assets Held for Investment Purposes
As of December 31, 1998
(in thousands)
<TABLE>
<CAPTION>
(c)
(b) Description of Investment Including
Identity of Issue, Borrower Maturity Date, Rate of Interest, (d) (e)
(a) Lessor, or Similar Party Collateral, Par or Maturity Value Cost Current Value
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mutual Funds:
* The Dreyfus Corporation 119.68 shares of Dreyfus Short-Intermediate
Government Fund 1,320 1,290
* The Dreyfus Corporation 275.52 shares of Dreyfus Disciplined Stock Fund 7,920 10,320
* The Dreyfus Corporation 31.08 shares of Dreyfus Lifetime Income Fund 420 417
* The Dreyfus Corporation 711.54 shares of Dreyfus Lifetime Growth &
Income Fund 10,974 12,367
* The Dreyfus Corporation 79.04 shares of Dreyfus Lifetime Growth Fund 1,346 1,397
Neuberger & Berman Mgmt., Inc. 77.50 shares of Neuberger & Berman Guardian Trust 1,332 1,252
Liberty Financial Companies 28.58 shares of Crabbe Huson Equity Fund 549 469
Heartland Advisors 42.94 shares of Heartland Value Fund 1,444 1,258
Liberty Financial Companies 18.63 shares of Crabbe Huson Special Fund 238 149
Warburg, Pincus & Co., LLC 33.37 shares of Warburg Pincus International
Equity Fund 662 594
------- -------
26,205 29,513
* Foodmaker, Inc. 278.52 shares of Foodmaker, Inc. Common Stock 3,290 6,142
* Participant Notes Receivable 4,283 4,283
------- -------
$46,843 53,003
======= =======
</TABLE>
* Party-in-interest as defined by ERISA.
See accompanying Independent Auditors' Report.
-17-
<PAGE>
Schedule II
FOODMAKER, INC. EASY$AVER PLUS PLAN
EIN: 95-2698708
Plan Number: 003
Line 27d-Schedule of Reportable Transactions
Year ended December 31, 1998
(in thousands)
<TABLE>
<CAPTION>
(c) (d)
Trans- Trans- (f) (h) (i)
actions actions Expenses Current Value Net
(a) (b) Number of Aggregate Aggregate (e) Incurred (g) of Asset on Gain
Identity of Description Trans- Purchase Sale Lease With Cost of Transaction or
Party Involved of Securities actions Price Price Rental Transaction Asset Date Loss
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
The Dreyfus Dreyfus Lifetime 61 $1,972 - - - 1,972 1,972 -
Corporation Growth & Income Fund 114 - 1,312 - - 1,195 1,312 117
The Dreyfus Dreyfus Disciplined 106 1,770 - - - 1,770 1,770 -
Corporation Stock Fund 92 - 1,046 - - 826 1,046 220
Foodmaker, Inc. Common Stock 124 1,282 - - - 1,282 1,282 -
152 - 1,322 - - 800 1,322 522
The Boston TBC, Inc. Pooled 208 5,064 - - - 5,064 5,064 -
Company Employee Fund 190 - 5,089 - - 5,089 5,089 -
Certus Asset Dreyfus Certus Stable 73 6,176 - - - 6,176 6,176 -
Advisors Value Fund 109 - 2,086 - - 2,086 2,086 -
See accompanying Independent Auditors' Report.
</TABLE>
-18-
<PAGE>
EXHIBITS
1. Consent of KPMG LLP.
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
FOODMAKER, INC. EASY$AVER
PLUS PLAN
Date: June 28, 1999 By: LAWRENCE E. SCHAUF
------------------
Lawrence E. Schauf
Member, Administrative Committee
-19-
<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 11, 1999,
relating to the statements of net assets available for benefits of the
Foodmaker, Inc. Easy$aver Plus Plan as of December 31, 1998 and 1997, and the
related statements of changes in net assets available for benefits for each of
the years in the two-year period ended December 31, 1998, and all related
schedules, which report appears in the December 31, 1998, annual report on Form
11-K of the Foodmaker, Inc. Easy$aver Plus Plan.
KPMG LLP
San Diego, California
June 28, 1999
