LEASES

12 Months Ended

Jul. 30, 2022

Leases [Abstract]

LEASES

LEASES

Description of leasing arrangements

The Company leases 31 retail stores, as well as a commissary, the corporate headquarters and equipment at July 30, 2022. The majority of initial lease terms range from 20 to 30 years. Most of the Company’s leases contain renewal options at increased rents of five years each at the Company’s sole discretion. These options enable Village to retain the use of facilities in desirable operating areas.

The composition of total lease cost is as follows:

		Years ended
	Consolidated Statement of Operations Classification	July 30, 2022		July 31, 2021
Operating lease cost	Operating and administrative expense	$	36,909	$	37,677
Finance lease cost
Amortization of leased assets	Depreciation and amortization	947		947
Interest on lease liabilities	Interest expense	1,939		2,000
Variable lease cost	Operating and administrative expense	20,483		19,479
Total lease cost		$	60,278	$	60,103

As of July 30, 2022 and July 31, 2021, finance lease right-of-use assets of $11,859 and $12,806, respectively, are included in property, equipment and fixtures, net in the Company's consolidated balance sheet. Maturities of operating and finance lease liabilities, including options to extend lease terms that are reasonably certain of being exercised. The Company's lease liabilities mature as follows as of July 30, 2022:

	Operating leases		Finance leases		Total
2023	$	32,455	$	2,470	$	34,925
2024	34,272		2,689		36,961
2025	33,206		2,820		36,026
2026	32,495		2,893		35,388
2027	31,809		2,893		34,702
Thereafter	233,521		23,294		256,815
Total lease payments	397,758		37,059		434,817
Less amount representing interest	93,107		14,953		108,060
Present value of lease liabilities	$	304,651	$	22,106	$	326,757

The Company has approximately $18,948 of future payment obligations related to lease agreements that have not yet commenced but have been executed as of July 30, 2022.

As of July 30, 2022, the Company's lease terms and discount rates are as follows:

	July 30, 2022		July 31, 2021
Weighted-average remaining lease term (years)
Operating leases	13.1		12.5
Finance leases	13.4		14.4
Weighted-average discount rate
Operating leases	4.1	%	3.9	%
Finance leases	8.5	%	8.5	%

Supplemental cash flow information related to leases is as follows:

	2022		2021
Cash paid for amounts in the measurement of lease liabilities
Operating cash flows from operating leases	$	35,730	$	34,768
Operating cash flows from finance leases	1,939		2,000
Financing cash flows from finance leases	750		689

Related party leases

The Company leases a supermarket from a realty firm 30% owned by certain officers of Village. The Company paid rent to related parties under this lease of $735 and $704 in fiscal 2022 and 2021, respectively, and has a related lease obligation of $2,545 at July 30, 2022. This lease expires in fiscal 2026 with options to extend at increasing annual rent.

The Company has ownership interests in four real estate partnerships. Village paid aggregate rents to two of these partnerships for leased stores of $1,556 and $1,579 in fiscal 2022 and 2021, respectively, and has related aggregate lease obligations of $12,340 at July 30, 2022.

One of these partnerships is a variable interest entity, which is not consolidated as Village is not the primary beneficiary. This partnership owns one property, a stand-alone supermarket leased to the Company since 1974. Village is a general partner entitled to 33% of the partnership's profits and losses.

The Company subleases the Galloway and Vineland stores from Wakefern under sublease agreements which provided for combined annual rents of $959 and $1,355 in fiscal 2022 and 2021, respectively, and has related aggregate lease obligations of $607 at July 30, 2022. Both leases contain normal periodic rent increases and options to extend the lease. On October 13, 2021, Village completed the acquisition of the Galloway store shopping center for $9,800.

LEASES

LEASES

Description of leasing arrangements

The Company leases 31 retail stores, as well as a commissary, the corporate headquarters and equipment at July 30, 2022. The majority of initial lease terms range from 20 to 30 years. Most of the Company’s leases contain renewal options at increased rents of five years each at the Company’s sole discretion. These options enable Village to retain the use of facilities in desirable operating areas.

The composition of total lease cost is as follows:

		Years ended
	Consolidated Statement of Operations Classification	July 30, 2022		July 31, 2021
Operating lease cost	Operating and administrative expense	$	36,909	$	37,677
Finance lease cost
Amortization of leased assets	Depreciation and amortization	947		947
Interest on lease liabilities	Interest expense	1,939		2,000
Variable lease cost	Operating and administrative expense	20,483		19,479
Total lease cost		$	60,278	$	60,103

As of July 30, 2022 and July 31, 2021, finance lease right-of-use assets of $11,859 and $12,806, respectively, are included in property, equipment and fixtures, net in the Company's consolidated balance sheet. Maturities of operating and finance lease liabilities, including options to extend lease terms that are reasonably certain of being exercised. The Company's lease liabilities mature as follows as of July 30, 2022:

	Operating leases		Finance leases		Total
2023	$	32,455	$	2,470	$	34,925
2024	34,272		2,689		36,961
2025	33,206		2,820		36,026
2026	32,495		2,893		35,388
2027	31,809		2,893		34,702
Thereafter	233,521		23,294		256,815
Total lease payments	397,758		37,059		434,817
Less amount representing interest	93,107		14,953		108,060
Present value of lease liabilities	$	304,651	$	22,106	$	326,757

The Company has approximately $18,948 of future payment obligations related to lease agreements that have not yet commenced but have been executed as of July 30, 2022.

As of July 30, 2022, the Company's lease terms and discount rates are as follows:

	July 30, 2022		July 31, 2021
Weighted-average remaining lease term (years)
Operating leases	13.1		12.5
Finance leases	13.4		14.4
Weighted-average discount rate
Operating leases	4.1	%	3.9	%
Finance leases	8.5	%	8.5	%

Supplemental cash flow information related to leases is as follows:

	2022		2021
Cash paid for amounts in the measurement of lease liabilities
Operating cash flows from operating leases	$	35,730	$	34,768
Operating cash flows from finance leases	1,939		2,000
Financing cash flows from finance leases	750		689

Related party leases

The Company leases a supermarket from a realty firm 30% owned by certain officers of Village. The Company paid rent to related parties under this lease of $735 and $704 in fiscal 2022 and 2021, respectively, and has a related lease obligation of $2,545 at July 30, 2022. This lease expires in fiscal 2026 with options to extend at increasing annual rent.

The Company has ownership interests in four real estate partnerships. Village paid aggregate rents to two of these partnerships for leased stores of $1,556 and $1,579 in fiscal 2022 and 2021, respectively, and has related aggregate lease obligations of $12,340 at July 30, 2022.

One of these partnerships is a variable interest entity, which is not consolidated as Village is not the primary beneficiary. This partnership owns one property, a stand-alone supermarket leased to the Company since 1974. Village is a general partner entitled to 33% of the partnership's profits and losses.

The Company subleases the Galloway and Vineland stores from Wakefern under sublease agreements which provided for combined annual rents of $959 and $1,355 in fiscal 2022 and 2021, respectively, and has related aggregate lease obligations of $607 at July 30, 2022. Both leases contain normal periodic rent increases and options to extend the lease. On October 13, 2021, Village completed the acquisition of the Galloway store shopping center for $9,800.