Sprouts Farmers Market 2013 Annual Report Download - page 128

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Table of Contents
As of December 29, 2013, future minimum lease payments required by all capital and financing leases during the initial lease
term are as follows:
The final payment under the financing lease obligations is a noncash payment which represents the conveyance of the
property to the buyer-lessor at the end of the lease term, described as balloon payment in the table above.
In connection with the acquisition of Sunflower, the Company recorded a purchase price allocation of $22.6 million for
financing lease obligations. In connection with the Henry’s Transaction, the Company recorded a purchase price allocation of $4.0
million and $63.2 million for the capital and financing lease obligations, respectively. The Company has recorded these liabilities at
their estimated fair values at date of acquisition.
Other Commitments and Contingencies
The Company is exposed to claims and litigation matters arising in the ordinary course of business and uses various methods
to resolve these matters that are believed to best serve the interests of the Company’s stakeholders. The Company’s primary
contingencies are associated with insurance and self-insurance obligations. Estimation of insurance and self-insurance liabilities
require significant judgments, and actual claim settlements and associated expenses may differ from the Company’s current
provisions for loss. See Note 15, “Self-Insurance Programs” for more information.
During 2012, the Company settled a trademark dispute for $2.7 million.
21. Capital stock
Common stock
On August 6, 2013, the Company completed its initial public offering of 21,275,000 shares of common stock of Sprouts
Farmers Market, Inc., including 2,775,000 shares of common stock issued as a result of the exercise in full of the underwriters’
option to purchase additional shares, at a price of $18.00 per share. The Company sold 20,477,215 shares of common stock,
including the additional shares, and certain stockholders sold the remaining 797,785 shares.
The Company received net proceeds from the IPO of approximately $344.1 million, after deducting underwriting discounts and
offering expenses.
On April 24, 2013, the Company paid a total distribution of $282.0 million to stockholders. Additionally, pursuant to the anti-
dilution provisions of the 2011 Option Plan (as defined in Note 23 “Equity-Based Compensation” below), the Company paid $13.9
million to certain vested option holders and reduced the exercise price on unvested and certain vested options.
123
Fiscal Year
Capital
Leases
Financing
Leases
2014
$
540
$
12,700
2015
538
13,440
2016
538
13,599
2017
538
13,411
2018
538
13,552
Thereafter
954
78,979
Total
3,646
145,681
Plus balloon payment (financing leases) —
68,053
Less amount representing interest
(978
)
(96,830
)
Net present value of capital and financing lease obligations
2,668
116,904
Less current portion
(315
)
(3,080
)
Total long-term
$
2,353
$
113,824