Sprouts Farmers Market 2013 Annual Report Download - page 97

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Table of Contents
At April 18, 2011, certain assets and liabilities, including certain property and equipment, liabilities and deferred taxes, of
Henry’s were contributed from S&F, which is reflected as a net contribution through equity, totaling $14.1 million.
The Company’s consolidated financial statements include the financial position, results of operations and cash flows of
Sunflower commencing on May 29, 2012.
The Company has one reportable and one operating segment. The Company’s Chief Executive Officer is the Chief Operating
Decision Maker (“CODM”). The CODM bears ultimate responsibility for, and is actively engaged in, the allocation of resources and
the evaluation of the Company’s operating and financial results.
The Company categorizes its products as perishable and non-perishable. Perishable product categories include produce,
meat, seafood, deli and bakery. Non-perishable product categories include grocery, vitamins and supplements, bulk items, dairy
and dairy alternatives, frozen foods, beer and wine, and natural health and body care. The following is a breakdown of the
Company’s perishable and non-perishable sales mix:
All dollar amounts are in thousands, unless otherwise noted.
3. Significant Accounting Policies
Fiscal Years
The Company reports its results of operations on a 52- or 53-week fiscal calendar ending on the Sunday closest to
December 31. Fiscal years 2013, 2012, and 2011 ended on December 29, 2013, December 30, 2012 and January 1, 2012,
respectively, and included 52-weeks. Fiscal years 2013, 2012, and 2011 are referred to as 2013, 2012, and 2011.
Significant Accounting Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions.
Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
The Company’s critical estimates included, but are not limited to: inventory valuations, lease assumptions, sublease assumptions
for closed stores, self-insurance reserves, goodwill and intangible assets, impairment of long-lived assets, fair values of equity-
based awards and income taxes. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash
equivalents. The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America.
Deposits in these financial institutions may, from time to time, exceed the Federal Deposit Insurance Corporation’s (“FDIC”)
federally insured limits. All
92
2013
2012
2011
Perishables
50.1
%
49.1
%
49.2
%
Non-Perishables
49.9
%
50.9
%
50.8
%