Sprouts Farmers Market 2013 Annual Report Download - page 112

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Table of Contents
8. Intangible Assets
A summary of the activity and balances in intangible assets is as follows:
Amortization expense was $1.3 million, $1.1 million and $32.7 million for 2013, 2012 and 2011, respectively.
Amortization expense for 2011 includes $32.2 million of amortization expense for the amortization of the Henry’s trade name
and capitalized software including acceleration. In connection with the Henry’s Transaction, the Henry’s stores were rebranded as
Sprouts Farmers Market. The estimated useful lives related to the Henry’s trade names and capitalized software were reevaluated
and it was determined that amortization of these assets should be accelerated over their estimated remaining useful lives through
January 1, 2012. The accelerated amortization was recorded in the statements of operations as Amortization of Henry’s trade
names and capitalized software. The net book values of these assets were zero as of January 1, 2012 which were written off.
107
Balance at
January 1,
2012
Additions
Other
(a)
Balance at
December 30,
2012
Gross Intangible Assets
Indefinite
-
lived trade names
$
182,937
$
—
$
—
$
182,937
Indefinite-lived liquor licenses
971
1,070
(5
)
2,036
Finite-lived trade names —
1,800
—
1,800
Finite-lived leasehold interests
8,028
4,546
—
12,574
Total intangible assets
$
191,936
$
7,416
$
(5
)
$
199,347
Accumulated Amortization
Finite-lived trade names
$
—
$
(
105
)
$
—
$
(
105
)
Finite-lived leasehold interests
(1,513
)
(957
)
—
(
2,470
)
Total accumulated amortization
$
(1,513
)
$
(1,062
)
$
—
$
(
2,575
)
Balance at
December 30,
2012
Additions
Other
(a)
Balance at
December 29,
2013
Gross Intangible Assets
Indefinite-lived trade names
$
182,937
$
—
$
—
$
182,937
Indefinite-lived liquor licenses
2,036
—
(
13
)
2,023
Finite-lived trade names
1,800
—
—
1,800
Finite-lived leasehold interests
12,574
—
—
12,574
Total intangible assets
$
199,347
$
—
$
(
13
)
$
199,334
Accumulated Amortization
Finite-lived trade names
$
(105
)
$
(180
)
$
—
$
(
285
)
Finite-lived leasehold interests
(2,470
)
(1,112
)
—
(
3,582
)
Total accumulated amortization
$
(2,575
)
$
(1,292
)
$
—
$
(
3,867
)
a)
The Company sold one liquor license obtained in the Sunflower Transaction in 2013 and two licenses in 2012.