Sprouts Farmers Market 2013 Annual Report Download - page 120

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Table of Contents
Prior to the Henry’s transaction, S&F purchased third-party insurance for general liability under which Henry’s was covered.
Medical
The Company is self-insured for medical claims up to certain stop-loss limits. Such costs are accrued based on known claims
and an estimate of IBNR claims. IBNR claims are estimated using historical claim information, demographic factors, severity factors
and other actuarial assumptions. At December 29, 2013 and December 30, 2012, the Company had recorded a receivable for stop-
loss payments from its medical insurance carriers of $1.1 million and $1.3 million, respectively, relating to the portion of the
recorded liability that is expected to be recovered through those payments. The Company received payment for the 2012
receivable during 2013.
The estimated accruals for the self-insurance liabilities could be significantly affected if future occurrences and claims differ
from historical trends.
16. Defined Contribution Plan
The Company maintains the Sprouts Farmers Market, Inc. Employee 401(k) Savings Plan (the “Plan”), which is a defined
contribution plan covering all eligible team members. Under the provisions of the Plan, participants may direct the Company to
defer a portion of their compensation to the Plan, subject to the Internal Revenue Code limitations. The Company provides for an
employer matching contribution equal to 50% of each dollar contributed by the participants up to 6% of their eligible compensation.
During 2011, prior to the Henry’s Transaction, Henry’s employees participated in the Markets Retirement 401(k) Savings Plan
(“Henry’s 401(k) Plan”), which allowed participants to contribute up to 95% of their eligible compensation, subject to certain
maximums. In 2011 the Company matched 50% of each dollar contributed up to the first 4% of the participant’s eligible
compensation and then matched 25% of each dollar contributed up to an additional 2% of the participant’s eligible compensation.
In conjunction with the Henry’s Transaction, the Company acquired the Henry’s 401(k) Plan, which was merged into the Plan
effective January 1, 2012. Participants in the Henry’s 401(k) Plan are eligible for the same employer matching contribution as those
under the Plan effective January 1, 2012.
Total expense recorded for the matching under all defined contribution plans:
115
Year Ended
December 29,
2013
December 30,
2012
January 1,
2012
$1,583
$1,128
$723