Sprouts Farmers Market 2013 Annual Report Download - page 134

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Table of Contents
None.
Evaluation of Disclosure Controls and Procedures
We maintain a system of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) designed to
ensure that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act, is recorded,
processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and is accumulated and
communicated to our management, including our Chief Executive Officer (our principal executive officer) and our Chief Financial
Officer (our principal financial officer), as appropriate, to allow timely decisions regarding required disclosure.
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the
effectiveness of our disclosure controls and procedures under the Exchange Act as of December 29, 2013, the end of the period
covered by this Annual Report on Form 10-K. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer
have concluded that, as of such date, our disclosure controls and procedures were not effective because, as of December 29,
2013, we continued to have a material weakness related to our internal controls with respect to costing of non-perishable
inventories.
Management’s Annual Report on Internal Control Over Financial Reporting
This Annual Report on Form 10-K does not include a report of management’s assessment regarding internal control over
financial reporting or an attestation report of our registered public accounting firm due to a transition period established by the rules
of the SEC for newly public companies.
Changes in Internal Control Over Financial Reporting
During the quarterly period ended December 29, 2013, we further refined internal control procedures to address the previously
identified material weakness related to our internal controls with respect to costing of non-perishable inventories. These internal
control changes include the continued development and implementation of a system to automate the calculation of weighted-
average cost on a per unit basis that is designed to replace our statistical sampling method in the future. We will continue to use
statistical sampling and other estimation methods until we believe that the automated solution is in place for a sufficient period of
time and can be relied upon.
Except for the items described above, during the quarterly period ended December 29, 2013, there were no changes in our
internal control over financial reporting that materially affected, or were reasonably likely to materially affect, our internal control
over financial reporting.
Disclosure Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act
Apollo Global Management, LLC (referred to as “Apollo”) has provided notice to us that, as of October 24, 2013, certain
investment funds managed by affiliates of Apollo beneficially owned approximately 22% of the limited liability company interests of
CEVA Holdings, LLC (“CEVA”). Under the limited liability company agreement governing CEVA, certain investment funds managed
by
129
Item 9.
Changes In and Disagreements with Accountants on Auditing and Financial Disclosure
Item 9A.
Controls and Procedures
Item 9B.
Other Information