Sprouts Farmers Market 2013 Annual Report Download - page 126

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Table of Contents
earnings of Henry’s, certain operational billings and payments/receipts between Henry’
s and S&F, centralized cash management by
S&F and general corporate and tax allocations from S&F.
A summary of the activity in the “Net transactions with S&F” in the equity account is as follows:
A summary of the related party transactions between Henry’s and S&F and its subsidiaries included in the table above is as
follows:
Pursuant to the Transaction, S&F entered into a Transition Services Agreement (“TSA”), under which S&F received
compensation for providing certain post-transaction support services to the Company for a period up to 180 days after the closing
of the Henry’s Transaction. These services include warehousing and distribution, information technology support, human resources
and payroll support as well as various other administrative support services. Total expenses incurred in connection with the TSA
during 2011 amounted to $4.7 million.
Transactions with Other Related Parties
The Company incurred costs related to its use of a private aircraft owned by a member of senior management. During 2012
and 2011, fees paid in connection with the use of the aircraft were $0.6 million and $0.4 million, respectively. During 2012, the
Company purchased the aircraft for $3.2 million.
Two stockholders are investors in a company that is a supplier of coffee to the Company. During 2013, 2012 and 2011,
purchases from this company were $7.9 million, $5.6 million and $3.4 million, respectively. As of December 29, 2013, the Company
had no receivable recorded from this vendor. As of December 30, 2012, the Company had recorded $0.4 million of accounts
receivable due from this vendor related to vendor rebates. As of December 29, 2013 and December 30, 2012, the Company had
recorded accounts payable due to this vendor of $0.7 million and $0.4 million, respectively.
On August 30, 2007, Sprouts Arizona entered into a services agreement with an outsourced service provider who is a
stockholder of the Company, to perform substantially all of the Company’s bookkeeping services, including among other matters,
general ledger maintenance, payroll processing, accounts payable processing, accounts receivable processing, and management
reporting. The initial
121
Year Ended
January 1,
2012
Transactions with related parties
$
(54,057
)
Centralized cash management
40,111
Income taxes
1,214
Total
$
(12,732
)
As of
January 1,
2012
Cost of product shipped to affiliate
$
(62,683
)
Distribution costs associated with product shipped to affiliate
(4,266
)
Cost of product received from affiliate
1,893
Distribution costs associated with product received from affiliate
10,999
Total
$
(54,057
)