Sprouts Farmers Market 2013 Annual Report Download - page 130

Download and view the complete annual report

Please find page 130 of the 2013 Sprouts Farmers Market annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

Table of Contents
A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share calculations is as
follows (in thousands, except per share amounts):
Weighted average shares outstanding for periods prior to the Henry’s Transaction assume the same shares outstanding as
immediately after the transaction per accounting guidance.
The computation of diluted earnings per share for the year ended December 29, 2013 includes all options as no options were
antidilutive. The computation of diluted earnings per share for the year ended December 30, 2012 does not include 1,674,112
options as those options would have been antidilutive. For the year ended January 1, 2012 the computation of diluted loss per
share does not include 6,366,932 options as there was a net loss per share.
23. Equity-Based Compensation
2013 Incentive Plan
The Company’s board of directors adopted, and its equity holders approved, the Sprouts Farmers Market, Inc. 2013 Incentive
Plan (the “2013 Incentive Plan”). The 2013 Incentive Plan became effective July 31, 2013 in connection with the Company’s IPO
and replaced the 2011 Option Plan (except with respect to outstanding options under the 2011 Option Plan). The 2013 Incentive
Plan serves as the umbrella plan for the Company’s stock-based and cash-based incentive compensation programs for its
directors, officers and other team members.
Under the 2013 Incentive Plan, effective July 31, 2013 upon the pricing of the Company’s IPO, the Company granted to
certain officers and team members options to purchase 396,000 shares of common stock at an exercise price of $18.00 per share,
with grant date fair values of $4.65 to $5.92. The Company also granted to independent directors options to purchase 11,112
shares of common stock at an exercise price of $18.00 per share, with a grant date fair value of $4.65.
The aggregate number of shares of common stock that may be issued to team members and directors under the 2013
Incentive Plan may not exceed 10,089,072. Shares subject to awards granted under the 2013 Incentive Plan which are
subsequently forfeited, expire unexercised or are otherwise
125
Year Ended
December 29,
2013
December 30,
2012
January 1,
2012
Basic net income per share:
Net income (loss)
$
51,326
$
19,500
$
(27,445
)
Weighted average shares outstanding
134,622
119,427
96,954
Basic net income (loss) per share
$
0.38
$
0.16
$
(0.28
)
Diluted net income per share:
Net income (loss)
$
51,326
$
19,500
$
(27,445
)
Weighted average shares outstanding
134,622
119,427
96,954
Effect of dilutive options:
Assumed exercise of options to purchase shares
5,143
2,354
—
Weighted average shares and equivalent
shares outstanding
139,765
121,781
96,954
Diluted net income (loss) per share
$
0.37
$
0.16
$
(0.28
)