Sprouts Farmers Market 2013 Annual Report Download - page 121

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Table of Contents
17. Closed Store Reserves
A summary of closed store reserve activity is as follows:
Store closure and exit costs for 2013 include charges related to the closure of a former Sunflower warehouse, and
adjustments to sublease estimates for stores and facilities already closed. Store closure and exit costs for 2012 include charges
related to the closure of a former Sunflower administrative facility and one store offset by a $2.0 million favorable adjustment to the
store closure reserve resulting from sublease rents in excess of original estimates and a $1.3 million favorable adjustment resulting
from a lessor’s voluntary termination of a lease obligation previously reserved.
18. Income Taxes
Through the April 17, 2011, the Company’s consolidated financial statements reflect a charge for federal and state income
taxes as if Henry’s had been subject to tax on a separate company basis during the periods presented. Subsequent to April 17,
2011, the Company’s (provision) benefit for income taxes is based on the new tax return filing group.
In July 2013, in connection with the IPO, the Company converted from a limited liability company to a C-corporation. During
the period from April 17, 2011 until the corporate conversion, the Company had elected to be taxed as a corporation for income tax
purposes.
Income Tax (Provision) Benefit
Income tax (provision) benefit consists of the following:
116
As Of
December 29,
2013
December 30,
2012
Beginning balance
$
5,243
$
5,427
Additions
363
4,343
Usage
(1,728
)
(1,645
)
Adjustments
835
(2,882
)
Ending balance
$
4,713
$
5,243
Year Ended
December 29,
2013
December 30,
2012
January 1,
2012
U.S. Federal—current
$
(15,684
)
$
(309
)
$
(1,433
)
U.S. Federal—deferred
(12,203
)
(12,687
)
17,496
U.S. Federal—total
(27,887
)
(12,996
)
16,063
State—current
(3,299
)
(1,105
)
(588
)
State—deferred
(1,555
)
(1,166
)
2,256
State
—
total
(4,854
)
(2,271
)
1,668
Total (provision) benefit
$
(32,741
)
$
(15,267
)
$
17,731