Sprouts Farmers Market 2014 Annual Report Download - page 80

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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:
2014 2013 2012
Perishables ............................................. 50.8% 50.1% 49.1%
Non-Perishables ........................................ 49.2% 49.9% 50.9%
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 2014, 2013, and 2012 ended on December 28, 2014,
December 29, 2013 and December 30, 2012, respectively, and included 52-weeks. Fiscal years 2014,
2013, and 2012 are referred to as 2014, 2013, and 2012.
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
accounting 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 credit and
debit card transactions are also classified as cash and cash equivalents. The amounts due from banks for
these transactions at each reporting date were as follows:
As Of
December 28,
2014
December 29,
2013
Due from banks for debit and credit card
transactions ............................. $31,750 $20,463
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