DOMINOS PIZZA 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
Payment of Plan Benefits
Distribution of Plan benefits begins when the earliest of the following have occurred: (1) within
60 days of the close of the Plan year in which the participant attains age 70
1
⁄
2
or (2) the participant terminates service with the Company. Participants may
also elect to make withdrawals at age 59
1
⁄
2
without tax penalty.
Plan benefits are distributed in the form of either a series of payments or a
lump-sum
payment as
elected by the participant.
Participant Withdrawals
Participants may withdraw funds from their accounts if the Trustee
determines that a withdrawal is necessary to avoid certain financial hardships, as permitted under the Code, or death, disability or for any reason after reaching age 59
1
⁄
2
.
Plan Termination
Although it has
not expressed any intent to do so, the Company has the right to amend, modify, terminate, withdraw from, or suspend contributions to the Plan at any time under the provisions of ERISA. In the event of termination of the Plan, all participant
accounts become fully vested and are distributed to the participants in accordance with the Plan document.
Notes Receivable from
Participants
Participants may borrow funds from their account balance. A note may not be less than $1.0 thousand and may not exceed the lesser of 50% of the vested portion of the participants total account balance or
$50.0 thousand. The Plan Administrator establishes the terms of the note agreement, secured by the balance in the participants account. The note agreement bears interest at rates that range from 4.25% to 11.00%, which are commensurate
with local prevailing rates as determined by the Plan Administrator. Notes must be repaid within five years. Principal and interest is paid ratably through
bi-weekly
payroll deductions.
Note 2
Summary of Significant Accounting Policies
Basis of Accounting
The financial statements have been prepared under the accrual method of accounting in conformity with
accounting principles generally accepted in the United States of America (GAAP).
Investment Valuation and Income
Recognition
The Plans investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The fair value of the Plans common collective trust funds is at Net Asset Value (NAV), which is calculated by the fund based on net assets. The fair value of the Plans mutual funds is based on quoted prices of the
shares held by the Plan. Shares of employer securities are valued based on quoted prices.
Purchases and sales of securities are recorded
on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend
date. Net appreciation includes the Plans gains and losses on investments bought and
sold as well as held during the year.
The Plan holds an investment in a common collective trust fund (the Fidelity Managed Income
Portfolio Class I or MIP). The investment in the MIP is presented at fair value, which reflects the NAV of the fund. The NAV of the MIP is based on the fair value of the underlying securities plus the contract value of the
fully benefit-responsive wrapper contract. The MIPs NAV represents the Plans fair value since this is the amount at which the Plan transacts with the fund. A participants ownership of the MIP is represented by units. Units are
issued and redeemed daily at the MIPs constant NAV of $1.00 per unit. Although it is the policy of the MIP to use its best efforts to maintain a stable NAV of $1.00 per unit, there is no guarantee that the MIP will be able to maintain that
value. The MIP allows for daily liquidity with no additional notice required for redemption.
6