10-K

UNITED STATES

SECURITIES & EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-K

Annual Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934.

For the fiscal year ended:  July 27, 2013

COMMISSION FILE NUMBER:   0-33360

VILLAGE SUPER MARKET, INC.

(Exact name of registrant as specified in its charter)

NEW JERSEY	22-1576170
(State or other jurisdiction of incorporation or organization)	(I. R. S. Employer Identification No.)
733 MOUNTAIN AVENUE, SPRINGFIELD, NEW JERSEY	07081
(Address of principal executive offices)	(Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (973)467-2200
Securities registered pursuant to Section 12(b) of the Act:
Class A common stock, no par value	The NASDAQ Stock Market
(Title of Class)	(Name of exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act:  NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes  o   No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  x   No  o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§299.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer x
Non-accelerated filer o (Do not check if a smaller reporting company)	Smaller reporting company o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  o   No  x

The aggregate market value of the Class A common stock of Village Super Market, Inc. held by non-affiliates was approximately $168.5 million and the aggregate market value of the Class B common stock held by non-affiliates was approximately $2.1 million based upon the closing price of the Class A shares on the NASDAQ on January 26, 2013, the last business day of the second fiscal quarter.  There are no other classes of voting stock outstanding.

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of latest practicable date.

Class	Outstanding at October 4, 2013
Class A common stock, no par value	9,470,537 Shares
Class B common stock, no par value	4,374,912 Shares

DOCUMENTS INCORPORATED BY REFERENCE

Information contained in the 2013 definitive Proxy Statement to be filed with the Commission and delivered to security holders in connection with the Annual Meeting scheduled to be held on December 13, 2013 are incorporated by reference into this Form 10-K at Part II, Item 5 and Part III.

PART I

ITEM I.   BUSINESS

 (All dollar amounts in this report are in thousands, except per square foot data).

GENERAL

Village Super Market, Inc. (the “Company” or “Village”) was founded in 1937.   Village operates a chain of twenty-nine ShopRite supermarkets, eighteen of which are located in northern New Jersey, eight in southern New Jersey, two in Maryland and one in northeastern Pennsylvania.   The Company is a member of Wakefern Food Corporation ("Wakefern"), the nation's largest retailer-owned food cooperative and owner of the ShopRite name.  This relationship provides Village many of the economies of scale in purchasing, distribution, private label products, advanced retail technology, marketing and advertising associated with chains of greater size and geographic coverage.

Village seeks to generate high sales volume by offering a wide variety of high quality products at consistently low prices with superior customer service.  During fiscal 2013, sales per store were $50,912 and sales per selling square foot were $1,140.  The Company gives ongoing attention to the décor and format of its stores and tailors each store's product mix to the preferences of the local community.  

On January 29, 2012, Village acquired the store fixtures, lease and other assets of the ShopRite in Old Bridge, New Jersey (40,000 sq. ft.) for $3,250 plus inventory and other working capital for $1,116.  On July 7, 2011, Village acquired the store fixtures, leases and pharmacy lists of locations in Silver Spring (64,000 sq.ft.) and Timonium, Maryland (57,000 sq.ft.) for $6,595 from SuperFresh.  Village opened the Maryland stores as ShopRites on July 28, 2011 after remodeling.  

Village opened a 62,700 sq. ft. replacement store in Washington, New Jersey on February 21, 2010 and a new 67,600 sq. ft. store in Marmora, New Jersey on May 31, 2009.   Below is a summary of the range of store sizes at July 27, 2013:

Total Square Feet	Number of Stores
Greater than 60,000	13
50,001 to 60,000	7
40,001 to 50,000	7
Less than 40,000	2
Total	29

These larger store sizes enable the Company’s stores to provide a “one-stop” shopping experience and to feature expanded higher margin specialty departments such as home meal replacement, an on-site bakery, an expanded delicatessen including prepared foods, a variety of natural and organic foods, ethnic and international foods and a fresh seafood section.  Larger stores also offer an expanded selection of non-food items such as cut flowers, health and beauty aids, greeting cards, small appliances and, in most cases, a pharmacy.   Recently remodeled and new stores emphasize a Power Alley, which features high margin, fresh, convenience offerings such as salad bars, bakery and Bistro Street home meal replacement in an area within the store that provides quick customer entry and exit for those customers shopping for today's lunch or dinner.  In 2012, we introduced the Village Food Garden as our next generation Power Alley in the remodeled Livingston store.  This concept features a centralized kitchen, and several kiosks offering a wide range of store prepared specialty foods for both in-store and take-home dining.  An expanded Village Food Garden will be included in our new store in Hanover Township, which will open in fall 2013.  In the last three years, Village added on-site registered dieticians in twelve stores to consult with customers on healthy meals and proper nutrition, as well as leading health related events both in store and in the community as part of the Live Right with ShopRite program.  

1

The following table shows the percentage of the Company's sales allocable to various product categories during each of the periods indicated:

Product Categories
	2013			2012			2011
Groceries		37.9	%		38.3	%		38.4	%
Dairy and Frozen		17.8			17.8			17.6
Meats		10.5			10.5			10.4
Non-Foods		8.0			7.9			7.9
Produce		11.5			11.3			11.5
Appetizers and prepared food		5.6			5.4			5.4
Seafood		2.5			2.5			2.4
Pharmacy		4.1			4.3			4.4
Bakery		2.1			2.0			2.0
		100	%		100	%		100	%

A variety of factors affect the profitability of each of the Company's stores, including local competitors, size, access and parking, lease terms, management supervision, and the strength of the ShopRite trademark in the local community.  Village continually evaluates individual stores to determine if they should be closed.

DEVELOPMENT AND EXPANSION

The Company has an ongoing program to upgrade and expand its supermarket chain.  This program has included store remodels as well as the opening or acquisition of additional stores.  When remodeling, Village has sought, whenever possible, to increase the amount of selling space in its stores.

Village has budgeted $35 million for capital expenditures for fiscal 2014. This includes the construction of two replacement stores, one of which began in fiscal 2013.

In fiscal 2013, Village began construction of a replacement store in Hanover Township, New Jersey and completed three major remodels.

In fiscal 2012, Village completed several smaller remodels and the installation of solar panels on one store.  In addition, on January 29, 2012, Village acquired the store fixtures, lease and other assets of the ShopRite in Old Bridge, New Jersey.

In fiscal 2011, Village purchased the land for a replacement store and completed several small remodels.  In addition, on July 7, 2011, Village acquired the store fixtures, leases and pharmacy lists of locations in Silver Spring and Timonium, Maryland.

In fiscal 2010, Village completed the construction of the replacement store in Washington, New Jersey.

In fiscal 2009, Village completed construction of a new store in Marmora, NJ which opened May 31, 2009, and began construction of the replacement store in Washington.

Additional store remodels and sites for new stores are in various stages of development.  Village will also consider additional acquisitions should appropriate opportunities arise.

WAKEFERN FOOD CORPORATION

The Company is the second largest member of Wakefern and owns 13.7% of Wakefern’s outstanding stock as of July 27, 2013.  Wakefern, which was organized in 1946, is the nation’s largest retailer-owned food cooperative.  Wakefern and its 49 shareholder members operate 304 supermarkets and other retail formats, including 85 stores operated by Wakefern.  Only Wakefern and its members are entitled to use the ShopRite name and trademark, and to participate in ShopRite advertising and promotional programs.

2

The principal benefits to the Company from its relationship with Wakefern are the use of the ShopRite name and trademark, volume purchasing, ShopRite private label products, distribution and warehousing economies of scale, ShopRite advertising and promotional programs, including the ShopRite Price Plus card, and the development of advanced retail technology.  The Company believes that the ShopRite name is widely recognized by its customers and is a factor in their decisions about where to shop. ShopRite private label products accounted for approximately 12.5% of sales in fiscal 2013.

Wakefern distributes as a "patronage dividend" to each of its stockholders a share of substantially all of its earnings in proportion to the dollar volume of purchases by the stockholder from Wakefern during each fiscal year.

While Wakefern has a substantial professional staff, it operates as a member owned cooperative.  Executives of most members make contributions of time to the business of Wakefern.  Executives of the Company spend a significant amount of their time working on various Wakefern committees, which oversee and direct Wakefern purchasing, merchandising and other programs.  James Sumas, the Company’s Chief Executive Officer, is Vice Chairman of Wakefern, and a member of the Wakefern Board of Directors.

Most of the Company's advertising is developed and placed by Wakefern's professional advertising staff.  Wakefern is responsible for all television, radio and major newspaper advertisements. Wakefern bills its members using various formulas which allocate advertising costs in accordance with the estimated proportional benefits to each member from such advertising.  The Company also places Wakefern developed materials with local newspapers.  In addition, Wakefern and its affiliates provide the Company with other services including liability and property insurance, supplies, certain equipment purchasing, coupon processing, certain financial accounting applications, and retail technology support.

Wakefern operates warehouses and distribution facilities in Elizabeth, Keasbey, Whitehouse, Dayton, Carteret, Newark and Jamesburg, New Jersey and Gouldsboro and Breinigsville, Pennsylvania.  The Company and all other members of Wakefern are parties to the Wakefern Stockholder’s Agreement which provides for certain commitments by, and restrictions on, all shareholders of Wakefern.  This agreement extends until ten years from the date that stockholders representing 75% of Wakefern sales notify Wakefern that those stockholders request the Wakefern Stockholder Agreement be terminated.  Each member is obligated to purchase from Wakefern a minimum of 85% of its requirements for products offered by Wakefern.  If this purchase obligation is not met, the member is required to pay Wakefern's profit contribution shortfall attributable to this failure.  The Company fulfilled this obligation in fiscal 2013, 2012 and 2011.  This agreement also requires that in the event of unapproved changes in control of the Company or a sale of the Company or of individual Company stores, except to a qualified successor, the Company in such cases must pay Wakefern an amount equal to the annual profit contribution shortfall attributable to the sale of a store or change in control.  No payments are required if the volume lost by a shareholder as a result of the sale of a store is replaced by such shareholder by increased volume in existing or new stores.  A "qualified successor" must be, or agree to become, a member of Wakefern, and may not own or operate any supermarkets, other than ShopRite supermarkets, in the states of New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Connecticut, Massachusetts, Rhode Island, Vermont, New Hampshire, Maine or the District of Columbia, or own or operate more than twenty-five non-ShopRite supermarkets in any other locations in the United States.

Wakefern, under circumstances specified in its bylaws, may refuse to sell merchandise to, and may repurchase the Wakefern stock of, any member.  Such circumstances include a members bankruptcy filing, certain unapproved transfers by a member of its supermarket business or its capital stock in Wakefern, unapproved acquisition by a member of certain supermarket or grocery wholesale supply businesses, the material breach by a member of any provision of the bylaws of Wakefern or any agreement with Wakefern, or a failure to fulfill financial obligations to Wakefern.

Any material change in Wakefern's method of operation or a termination or material modification of the Company's relationship with Wakefern following termination of the above agreements, or otherwise, might have an adverse impact on the conduct of the Company's business and could involve additional expense for the Company.  The failure of any Wakefern member to fulfill its obligations under these agreements or a member's insolvency or withdrawal from Wakefern could result in increased costs to remaining members.

Wakefern does not prescribe geographical franchise areas to its members.  The specific locations at which the Company, other members of Wakefern, or Wakefern itself, may open new units under the ShopRite name are, however, subject to the approval of Wakefern's Site Development Committee.  This committee is composed of persons who are not employees or members of Wakefern.  Committee decisions to deny a site application may be appealed to the Wakefern Board of Directors.  Wakefern assists its members in their site selection by providing appropriate demographic data, volume projections and estimates of the impact of the proposed store on existing member supermarkets in the area.

Each of Wakefern's members is required to make capital contributions to Wakefern based on the number of stores operated by that member and the purchases generated by those stores.  As additional stores are opened or acquired by a member, additional capital must be contributed by it to Wakefern.  The Company’s investment in Wakefern and affiliates was $24,355 at July 27, 2013.  The total amount of debt outstanding from all capital pledges to Wakefern is $2,319 at July 27, 2013.  The maximum per store capital contribution increased from $800 to $825 in fiscal 2013, resulting in an additional $949 capital pledge, which was paid in fiscal 2013.

3

As required by the Wakefern bylaws, the Company’s investment in Wakefern is pledged to Wakefern to secure the Company’s obligation to Wakefern.  In addition, four members of the Sumas family have guaranteed the Company’s obligations to Wakefern.  These personal guarantees are required of any 5% shareholder of the Company who is active in the operation of the Company.  Wakefern does not own any securities of the Company or its subsidiaries.  The Company’s investment in Wakefern entitles the Company to enough votes to elect one member to the Wakefern Board of Directors due to cumulative voting rights.

TECHNOLOGY

The Company considers automation and information technology important to its operations and competitive position.    Village completed the replacement of its point of sale systems in fiscal 2010 to improve the checkout experience and reduce training costs.  Electronic payment options are offered at all checkout locations.  In recent years, we have upgraded our communication network, which is used for secure, reliable, high speed processing of electronic payments and transmission of data.

The Company’s commitment to advanced point of sale and communication systems enables it to participate in Price Plus, ShopRite’s preferred customer program.  Customers receive electronic discounts by presenting a scannable Price Plus card.  This technology also enables Village to offer continuity programs and focus on target marketing initiatives. 

Wakefern and Village have responded to customers increased use of the internet by creating a smart phone app and shoprite.com to provide weekly advertising and other shopping information.  In addition, on-line shopping is available in eleven store locations with store pick-up and delivery options.

Eighteen stores use self-checkout systems to provide improved customer service, especially during peak periods, and reduce operating costs.   RFID readers are installed in all checkout lanes to enable contactless payment options for customers to quicken checkout times.

Village utilizes a computer generated ordering system, which is designed to reduce inventory levels and out of stock conditions, enhance shelf space utilization, and reduce labor costs. This system is also utilized to reduce the cost of taking periodic inventories. The Company utilizes a direct store delivery system, consisting of personal computers and advanced hand held scanners, for product not purchased through Wakefern to provide equivalent cost and retail price control over these products.

Village seeks to design its stores to use energy efficiently, including recycling waste heat generated by refrigeration equipment for heating and other purposes.  Most stores utilize computerized energy management systems.  The Company installed solar panels on the roof of one store in 2010 and a second store in 2012, reducing both carbon emissions and energy costs.  Certain in-store department records are computerized, including the records of all pharmacy departments.  In all stores, meat, seafood, delicatessen, and bakery prices are maintained on computer for automatic weighing and pricing. 

The Company has installed computer based training systems in all stores to assist in the training of associates.  Village utilizes a time and attendance system and labor scheduling system to improve scheduling and reduce labor. Automated cash handling systems are utilized in the store back office to improve accuracy and reduce costs.

In fiscal 2010, Village upgraded its digital surveillance systems, which are integrated with the cashier monitoring systems, in all stores to aid shrink reduction, increase productivity and assist in accident investigations.  These systems include electronic monitoring of the bottom of carts to reduce shrink.

The Company utilizes a division of Wakefern for data processing services, including financial accounting support.

COMPETITION

The supermarket industry is highly competitive and characterized by narrow profit margins.  The Company competes directly with multiple retail formats, including national, regional and local supermarket chains as well as warehouse clubs, supercenters, drug stores, discount general merchandise stores, fast food chains, restaurants, dollar stores and convenience stores.  Village competes by using low pricing, superior customer service, and a broad range of consistently available quality products, including ShopRite private labeled products.  The ShopRite Price Plus card also strengthens customer loyalty.

Some of the Company's principal competitors include Pathmark, A&P, Stop & Shop, Acme, Kings, Wal-Mart, Target, Wegmans, Whole Foods, Costco, BJ’s, Giant, Safeway and Foodtown.  Some of these competitors have financial resources substantially greater than those of the Company, and some are non-union.

4

LABOR

As of October 1, 2013, the Company employed approximately 6,050 persons with approximately 74% working part-time.  Approximately 91% of the Company’s employees are covered by collective bargaining agreements. Contracts with the Company’s seven unions expire between October 2013 and July 2016.  Approximately 49% of our associates are represented by unions whose contracts have already expired or expire within one year.  Most of the Company’s competitors are similarly unionized.

AVAILABLE INFORMATION

As a member of the Wakefern cooperative, Village relies upon our customer focused website, www.shoprite.com, for interaction with customers and prospective employees.  This website is maintained by Wakefern for the benefit of all ShopRite supermarkets, and therefore, does not contain any financial information related to the Company.

The Company will provide paper copies of the annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and press releases free of charge upon request to any shareholder.  In addition, electronic copies of these filings can be obtained at www.sec.gov.

REGULATORY ENVIRONMENT

The Company’s business requires various licenses and the registration of facilities with state and federal health and drug regulatory agencies.  These licenses and registration requirements obligate the Company to observe certain rules and regulations, and a violation of these rules and regulations could result in a suspension or revocation of licenses or registrations.  In addition, most licenses require periodic renewals.  The Company has not experienced material difficulties with respect to obtaining or retaining licenses and registrations. 

ITEM 1A.   RISK FACTORS

COMPETITIVE ENVIRONMENT

The supermarket business is highly competitive and characterized by narrow profit margins.  Results of operations may be materially adversely impacted by competitive pricing and promotional programs, industry consolidation and competitor store openings.  Village competes with national and regional supermarkets, local supermarkets, warehouse club stores, supercenters, drug stores, convenience stores, dollar stores, discount merchandisers, restaurants and other local retailers. Competition with these outlets is based on price, store location, promotion, product assortment, quality and service.  Some of these competitors have greater financial resources, lower merchandise acquisition costs and lower operating expenses than we do.  In addition, Village made investments in lower prices in fiscal 2013 to combat nontraditional competitors.

GEOGRAPHIC CONCENTRATION AND NEW TRADE AREA

The Company’s stores are concentrated in New Jersey, with one store in northeastern Pennsylvania and two in Maryland. We are vulnerable to economic downturns in New Jersey in addition to those that may affect the country as a whole.  Economic conditions such as inflation, deflation, interest rates, energy costs and unemployment rates may adversely affect our sales and profits.  Further, since our store base is concentrated in densely populated metropolitan areas, opportunities for future store expansion may be limited, which may adversely affect our business and results of operations.

Village acquired two stores in July 2011 in Maryland, a new market for Village where the ShopRite name is less known than in New Jersey.  Marketing and other costs are higher in Maryland than in established markets as Village attempts to build market share and brand awareness.  In addition, sales for these two stores are initially expected to be lower than the typical Company store.  Potentially higher costs and sales results lower than the Company’s expectations could have a material adverse effect on the Company’s results of operations.

WAKEFERN RELATIONSHIP

Village purchases substantially all of its merchandise from Wakefern.  In addition, Wakefern provides the Company with support services in numerous areas including supplies, advertising, liability and property insurance, technology support and other store services.  Further, Village receives patronage dividends and other product incentives from Wakefern.

Any material change in Wakefern’s method of operation or a termination or material modification of Village’s relationship with Wakefern could have an adverse impact on the conduct of the Company’s business and could involve additional expense for Village.  The failure of any Wakefern member to fulfill its obligations to Wakefern or a member’s insolvency or withdrawal from Wakefern could result in increased costs to the Company.  Additionally, an adverse change in Wakefern’s results of operations could have an adverse affect on Village’s results of operations.

5

LABOR RELATIONS

Approximately 91% of the Company’s employees are covered by collective bargaining agreements with unions. Contracts with the Company’s seven unions expire between October 2013 and July 2016.  Approximately 49% of our associates are represented by unions whose contracts have already expired or expire within one year.  In future negotiations with labor unions, we expect that rising health care and pension costs, among other issues, will continue to be important topics for negotiation.  Upon the expiration of our collective bargaining agreements, work stoppages by the affected workers could occur if we are unable to negotiate acceptable contracts with labor unions.  This could significantly disrupt our operations or have an adverse impact on our financial results.  Further, if we are unable to control health care and pension costs provided for in the collective bargaining agreement, we may experience increased operating costs and an adverse impact on our results of operations.

HEALTHCARE LEGISLATION

We provide health benefits to a large number of our employees, primarily through multi-employer health plans.  Effective January 1, 2015, the Patient Protection and Affordable Care Act will impose new mandates on employers that could significantly increase the number of employees receiving benefits and our required contributions to these multi-employer health plans.  We are not able at this time to determine the impact of the law, as it will depend on many factors, including finalization of rules implementing the law, the number of additional employees that we will be required to provide health benefits, and negotiation of collective bargaining agreements, which could be material to our results of operations.

FOOD SAFETY

The Company could be adversely affected if consumers lose confidence in the safety and quality of the food supply chain.  Adverse publicity about these types of concerns, whether or not valid, could discourage consumers from buying our products.  The real or perceived sale of contaminated food products by us could result in a loss of consumer confidence and product liability claims, which could have a material adverse effect on our sales and operations.

REPLACEMENT STORES

The Company is constructing two replacement stores.  At the time the replacement stores are expected to open, we will have rental obligations for several years remaining on the existing stores.  If we are unable to sublease the existing stores on terms similar to the current rent or otherwise mitigate the rental obligations, we may incur charges for these obligations at the time the existing stores are closed.

MULTI-EMPLOYER PENSION PLANS

The Company is required to make contributions to multi-employer pension plans in amounts established under collective bargaining agreements.  Pension expense for these plans is recognized as contributions are funded.  Benefits generally are based on a fixed amount for each year of service.   Based on the most recent information available to us, certain of these multi-employer plans are underfunded.  As a result, we expect that contributions to these plans may increase.  Additionally, the benefit levels and related items will be issues in the negotiation of our collective bargaining agreements.  Under current law, an employer that withdraws or partially withdraws from a multi-employer pension plan may incur a withdrawal liability to the plan, which represents the portion of the plan’s underfunding that is allocable to the withdrawing employer under complex actuarial and allocation rules.  The failure of a withdrawing employer to fund these obligations can impact remaining employers.   The amount of any increase or decrease in our required contributions to these multi-employer pension plans will depend upon the outcome of collective bargaining, actions taken by trustees who manage the plans, government regulations and the actual return on assets held in the plans, among other factors. See Note 8 to the Consolidated Financial Statements for more information relating to our participation in multi-employer pension plans.

CURRENT ECONOMIC CONDITIONS

During the last few years, the supermarket industry was impacted by changing consumer behavior due to the weak economy, high gas prices and high unemployment.  Consumers continue to spend cautiously by trading down to lower priced items, including private label, and concentrating their buying on sale items.   Our sales and results of operations may be adversely affected if the above trends continue.  Also, the Company estimates that product prices overall experienced substantial inflation in the first half of fiscal 2012, with only modest inflation in the second half of fiscal 2012 and during fiscal 2013.  

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IMPAIRMENT OF LONG-LIVED ASSETS

Our long-lived assets, primarily stores, are subject to periodic testing for impairment. Failure of our asset groups to achieve sufficient levels of cash flow could result in impairment charges on long-lived assets.

TAXES

The Company’s effective tax rate may be impacted by the results of tax examinations and changes in tax laws, including the disputes with the state of New Jersey described in Note 5 to the Consolidated Financial Statements.

INFORMATION TECHNOLOGY

Wakefern provides all members of the cooperative with information technology support that enables us to effectively manage our business data, customer transactions, ordering, communications and other business processes. The failure of our information technology to perform as we anticipate or a breach of these systems could disrupt our business or result in the compromise of confidential customer data. Any such event could damage our reputation, expose us to potential litigation from outside parties and have a material adverse impact on our results of operations.

ITEM 1B.   UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 2.   PROPERTIES

As of July 27, 2013, Village owns the sites of five of its supermarkets (containing 335,000 square feet of total space), all of which are freestanding stores, except the Egg Harbor store, which is part of a shopping center.  The remaining twenty four supermarkets (containing 1,309,000 square feet of total space) and the corporate headquarters are leased, with initial lease terms generally ranging from twenty to thirty years, usually with renewal options.  Sixteen of these leased stores are located in shopping centers and the remaining eight are freestanding stores.  In addition to the above, the Company owns the land and building of the old Washington store, which is currently available for sale, and owns the property on which the Hanover Township store is currently being constructed.

The annual rent, including capitalized leases, for all of the Company's leased facilities for the year ended July 27, 2013 was approximately $16,436.

Village is a limited partner in two partnerships, one of which owns a shopping center in which one of our leased stores is located.  The Company is also a general partner in a partnership that is a lessor of one of the Company's freestanding stores.

ITEM 3.   LEGAL PROCEEDINGS

The state of New Jersey audited the Company’s tax returns for fiscal 2002 through 2005 and has assessed two separate tax deficiencies related to nexus and the deductibility of certain payments between subsidiaries. The Company contested both these assessments through the state’s conference and appeals process. During fiscal 2011, Village received two determinations that the Company’s protests were denied. The Company has filed two complaints in Tax Court against the New Jersey Division of Taxation contesting these decisions. In addition, during fiscal 2012 the state of New Jersey audited the Company’s tax returns for fiscal 2006 through 2009 and has assessed a tax deficiency related to the same issue as above. The Company is currently contesting this assessment through the state’s conference and appeals process.  A trial limited to the nexus dispute was conducted in June 2013 and no decision has been rendered.  The ultimate resolution of these matters could materially impact our results of operations and cash flows.

In addition, the Company, in the ordinary course of business, is involved in various legal proceedings.  Village does not believe the outcome of these proceedings will have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

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PART II

ITEM 5.   MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERSAND ISSUER PURCHASES  OF EQUITY SECURITIES

Stock Price and Dividend Information

The Class A common stock of Village Super Market, Inc. is traded on the NASDAQ Global Select Market under the symbol “VLGEA.” The table below sets forth the high and low last reported sales price for the fiscal quarter indicated.

2013	High		Low
4th Quarter	$	38.47	$	32.88
3rd Quarter		35.11		31.79
2nd Quarter		37.66		30.09
1st Quarter		37.95		32.87
2012	High		Low
4th Quarter	$	36.20	$	24.29
3rd Quarter		33.69		27.09
2nd Quarter		31.93		28.02
1st Quarter		29.42		21.68

As of October 1, 2013, there were approximately 765 holders of Class A common stock.

During fiscal 2013, Village paid cash dividends of $24,048. Dividends in fiscal 2013 consist of $2.00 per Class A common share and $1.30 per Class B common share. These amounts include $12,009 of special dividends paid in December 2012, comprised of $1.00 per Class A common share and $0.65 per Class B common share.

During fiscal 2012, the Company declared cash dividends of $0.85 per Class A common share and $0.5525 per Class B common share.

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Performance Graph

Set forth below is a graph comparing the cumulative total return on the Company’s Class A stock against the cumulative total return of the S&P 500 Composite Stock Index and the NASDAQ Retail Trade index for the Company’s last five fiscal years.

	July-08		July-09		July-10		July-11		July-12		July-13
Village Super Market, Inc.	$	100	$	141	$	137	$	143	$	193	$	213
S&P 500	$	100	$	80	$	91	$	109	$	119	$	149
NASDAQ Retail Trade	$	100	$	102	$	130	$	198	$	227	$	286

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ITEM 6.   SELECTED FINANCIAL DATA

Selected Financial Data

(Dollars in thousands except per share and square feet data)

Fiscal 2010 contains 53 weeks. All other fiscal years contain 52 weeks.
 

	July 27,			July 28,			July 30,			July 31,			July 25,
For year	2013			2012			2011			2010			2009
Sales	$	1,476,457		$	1,422,243		$	1,298,928		$	1,261,825		$	1,208,097
Net income		25,784			31,445			20,982			25,381			27,255
Net income as a % of sales		1.75	%		2.21	%		1.62	%		2.01	%		2.26	%
Net income per share:
Class A common stock:
Basic	$	2.18		$	2.74		$	1.86		$	2.28		$	2.46
Diluted		1.85			2.28			1.54			1.88			2.02
Class B common stock:
Basic		1.36			1.78			1.21			1.48			1.60
Diluted		1.36			1.77			1.21			1.47			1.59
Cash dividends per share
Class A		2.000			0.850			1.700			0.970			0.765
Class B		1.300			0.553			1.105			0.631			0.498
At year-end
Total assets	$	427,412		$	409,538		$	386,190		$	357,129		$	338,810
Long-term debt		42,738			43,149			43,147			41,831			32,581
Working capital		94,299			71,672			44,448			41,201			30,856
Shareholders’ equity		244,560			230,311			208,157			205,775			187,398
Book value per share		17.66			16.74			15.22			15.35			14.03
Other data
Same store sales increase (decrease)		2.9	%		4.9	%		4.0	%		(0.7	)%		4.8	%
Total square feet		1,644,000			1,644,000			1,604,000			1,483,000			1,462,000
Average total sq. ft. per store		57,000			57,000			57,000			57,000			56,000
Selling square feet		1,295,000			1,295,000			1,264,000			1,171,000			1,155,000
Sales per average square foot of selling space (1)	$	1,140		$	1,112		$	1,109		$	1,085		$	1,070
Number of stores		29			29			28			26			26
Sales per average number of stores (1)	$	50,912		$	49,903		$	49,959		$	48,532		$	47,376
Capital expenditures and acquisitions		21,888			20,852			19,941			20,204			26,625

(1)Amounts for the year ended July 30, 2011 exclude results of the two stores acquired in Maryland in July 2011.

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Unaudited Quarterly Financial Data

(Dollars in thousands except per share amounts)

	First	Second	Third	Fourth	Fiscal
	Quarter	Quarter	Quarter	Quarter	Year
2013
Sales	$       358,151	$       382,175	$       359,808	$       376,323	$    1,476,457
Gross profit	95,637	102,920	97,314	101,890	397,761
Net income	5,855	9,104	4,622	6,203	25,784
Net income per share:
Class A common stock:
Basic	0.52	0.76	0.38	0.51	2.18
Diluted	0.42	0.65	0.33	0.44	1.85
Class B common stock:
Basic	0.30	0.49	0.25	0.33	1.36
Diluted	0.30	0.49	0.25	0.33	1.36
2012
Sales	$       342,737	$       362,638	$       347,009	$       369,859	$    1,422,243
Gross profit	92,876	99,504	95,248	101,199	388,827
Net income	6,736	9,147	6,543	9,019	31,445
Net income per share:
Class A common stock:
Basic	0.59	0.80	0.57	0.78	2.74
Diluted	0.49	0.66	0.47	0.65	2.28
Class B common stock:
Basic	0.38	0.52	0.37	0.51	1.78
Diluted	0.38	0.52	0.37	0.51	1.77

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 (Dollars in thousands except per share and per square foot data)

OVERVIEW

Village Super Market, Inc. (the “Company” or “Village”) operates a chain of 29 ShopRite supermarkets in New Jersey, Maryland and northeastern Pennsylvania. On January 29, 2012, Village acquired the store fixtures, lease and other assets of the ShopRite in Old Bridge, New Jersey (40,000 sq. ft.) for $3,250 plus inventory and other working capital for $1,116.  On July 7, 2011, Village acquired the store fixtures, leases and pharmacy lists of locations in Silver Spring, Maryland (64,000 sq.ft.) and Timonium, Maryland (57,000 sq.ft.) for $6,595 from Super Fresh.   These stores opened as ShopRites on July 28, 2011 after remodeling.

Village is the second largest member of Wakefern Food Corporation (“Wakefern”), the nation’s largest retailer-owned food cooperative and owner of the ShopRite name. This ownership interest in Wakefern provides Village many of the economies of scale in purchasing, distribution, advanced retail technology, marketing and advertising associated with larger chains.

The Company’s stores, five of which are owned, average 57,000 total square feet. Larger store sizes enable Village to offer the specialty departments that customers desire for one-stop shopping, including pharmacies, natural and organic departments, ethnic and international foods, and home meal replacement. During fiscal 2013, sales per store were $50,912 and sales per square foot of selling space were $1,140. Management believes these figures are among the highest in the supermarket industry. 

The supermarket industry is highly competitive. The Company competes directly with multiple retail formats, including national, regional and local supermarket chains as well as warehouse clubs, supercenters, drug stores, discount general merchandise stores, fast food chains, restaurants, dollar stores and convenience stores. Village competes by using low pricing, superior customer service, and a broad range of consistently available quality products, including ShopRite private labeled products. The ShopRite Price Plus card also strengthens customer loyalty.

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We consider a variety of indicators to evaluate our performance, such as same store sales, percentage of total sales by department (mix); shrink; departmental gross profit percentage; sales per labor hour; and hourly labor rates.

During the last few years, the supermarket industry was impacted by changing consumer behavior due to the weak economy and high unemployment. Consumers continue to spend cautiously by trading down to lower priced items, including private label, and concentrating their buying on sale items.  Also, the Company estimates that product prices overall experienced substantial inflation in the first half of fiscal 2012, with only modest inflation in the second half of fiscal 2012 and during fiscal 2013.  

Hurricane Sandy devastated our area on October 29, 2012, two days after the end of our first fiscal quarter.  The storm increased sales in the last week of our first quarter of fiscal 2013 as customers prepared for the storm. Sales in the first week of the second quarter of fiscal 2013 were negatively impacted by the closure of almost all of our stores for periods of time ranging from a few hours to eight days. However, this impact was partially offset by improved sales in stores that reopened quickly and by higher sales in most stores in subsequent weeks as customers restocked after their power was restored.  In addition, Village disposed of substantial amounts of perishable product due to the loss of power, and also incurred repair, labor and other costs in connection with the storm.  The Company has property, casualty and business interruption insurance, subject to deductibles and coverage limits.  During the second quarter of fiscal 2013, Village began the process of working with our insurers to recover the damages and has recorded estimated insurance recoveries.  Final resolution of our insurance claim related to the storm is expected in fiscal 2014, which could have a material impact on our results of operations.

The Company utilizes a 52 - 53 week fiscal year, ending on the last Saturday in the month of July. Fiscal 2013, 2012 and 2011 contain 52 weeks.

RESULTS OF OPERATIONS

The following table sets forth the components of the Consolidated Statements of Operations of the Company as a percentage of sales:

	July 27, 2013			July 28, 2012			July 30, 2011
Sales		100.00	%		100.00	%		100.00	%
Cost of sales		73.06			72.66			73.04
Gross profit		26.94			27.34			26.96
Operating and administrative expense		22.57			22.04			22.57
Depreciation and amortization		1.38			1.39			1.43
Operating income		2.99			3.91			2.96
Income from partnerships		0.10			-			-
Interest expense		(0.26	)		(0.31	)		(0.33	)
Interest income		0.19			0.18			0.17
Income before income taxes		3.02			3.78			2.80
Income taxes		1.27			1.57			1.18
Net income		1.75	%		2.21	%		1.62	%

SALES

Sales were $1,476,457 in fiscal 2013, an increase of $54,214, or 3.8% from the prior year.  Sales increased due to the acquisition of a store in Old Bridge, NJ on January 29, 2012 and a same store sales increase of 2.9%.  Same store sales increased due to higher sales as customers prepared for hurricane Sandy, improved sales at the stores that reopened quickly after that storm and higher sales in the two stores in Maryland.  Sales continued to be impacted by economic weakness, high gas prices and high unemployment, which has resulted in increased sale item penetration and trading down.  New stores and replacement stores are included in same store sales in the quarter after the store has been in operation for four full quarters.  Store renovations are included in same store sales immediately.

Sales were $1,422,243 in fiscal 2012, an increase of $123,315, or 9.5% from the prior year.  Sales increased due to the opening of two new stores in Maryland on July 28, 2011, the acquisition of a store in Old Bridge, NJ on January 29, 2012 and a same store sales increase of 4.9%.  Same stores sales increased due to higher sales in seven stores due to store closings by competitors, inflation, increased customer counts, and improved sales in the Washington and Marmora stores, which opened in recent fiscal years.  Although Village experienced inflation in fiscal 2012, there was minimal change in the average transaction size during the year.  As expected, the impact of the competitive store closures that began in the second half of fiscal 2011 and inflation both moderated beginning in the third quarter of fiscal 2012, resulting in a fourth quarter same store sales increase of 1.8%.  Sales continue to be impacted by economic weakness, high gas prices and high unemployment, which has resulted in increased sale item penetration and trading down.

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GROSS PROFIT

Gross profit as a percentage of sales decreased .40% in fiscal 2013 compared to the prior year primarily due to decreased departmental gross margin percentages (.47%), partially offset by improved product mix (.06%).  Gross margins declined in several departments primarily due to investments in lower prices to combat nontraditional competitors.

Gross profit as a percentage of sales increased .38% in fiscal 2012 compared to the prior year primarily due to increased departmental gross margin percentages (.15%), decreased warehouse assessment charges from Wakefern (.16%) and higher patronage dividends (.11%).  These improvements were partially offset by higher promotional spending (.06%).

OPERATING AND ADMINISTRATIVE EXPENSE

Operating and administrative expense as a percentage of sales increased .53% in fiscal 2013 compared to the prior year primarily due to higher payroll (.15%) and fringe benefit (.27%) costs, a charge from settlement of a dispute with a landlord (.04%), and the prior fiscal year included a favorable settlement of a pension withdrawal liability (.04%).  These increases were partially offset by income from settlement of the national credit card lawsuit (.08%) in the current fiscal year.  Payroll costs increased due to efforts to enhance the customer experience and provide additional services, including our first Village Food Garden at the remodeled Livingston store and the addition of ShopRite from Home in several stores.  Fringe benefit costs increased due to higher costs for health, pension and workers compensation.

Operating and administrative expense as percentage of sales decreased .53% in fiscal 2012 compared to the prior year due to the prior year including a $7,028 charge for the withdrawal liability from a multi-employer defined benefit plan (.54%).  In addition, fiscal 2012 benefitted from operating leverage from the 4.9% same store sales increase, partially offset by higher operating costs as a percentage of sales for the two new Maryland stores, including store opening costs.

DEPRECIATION AND AMORTIZATION

Depreciation and amortization expense was $20,354, $19,759 and $18,621 in fiscal 2013, 2012 and 2011, respectively. Depreciation and amortization expense increased in fiscal 2013 and 2012 compared to the prior years due to depreciation related to fixed asset additions.

INCOME FROM PARTNERSHIPS

Income from partnerships in fiscal 2013 of $1,450 are distributions received from two partnerships that exceeded the invested amounts.  The Company’s partnership interests resulted from its leasing of supermarkets in two shopping centers.  The Company remains a tenant in one of these shopping centers.

INTEREST EXPENSE

Interest expense was $3,771, $4,415 and $4,280, in fiscal 2013, 2012 and 2011, respectively. Interest expense decreased in fiscal 2013 compared to the prior year due to interest costs capitalized in the current fiscal year, and the prior fiscal year including interest incurred on a pension withdrawal liability that was paid in fiscal 2012.

INTEREST INCOME

Interest income was $2,783, $2,571 and $2,207 in fiscal 2013, 2012 and 2011, respectively. Interest income increased in fiscal 2013 and 2012 compared to the prior years due to higher amounts invested.

INCOME TAXES

The Company’s effective income tax rate was 42.2%, 41.5% and 42.1% in fiscal 2013, 2012 and 2011, respectively.

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NET INCOME

Net income was $25,784 in fiscal 2013 compared to $31,445 in fiscal 2012.  Fiscal 2013 includes income from partnership distributions of $840 (net of tax), income from the national credit card lawsuit of $693 (net of tax) and a charge for the settlement of a landlord dispute of $376 (net of tax), while fiscal 2012 includes a favorable settlement of a pension withdrawal liability of $374 (net of tax).   Excluding these items from both fiscal years, net income in fiscal 2013 declined 21% compared to the prior year primarily due to lower gross profit percentages and higher operating expenses as a percentage of sales, partially offset by reduced losses in the two Maryland stores compared to the prior year, which was their initial year of operations.  Maryland stores sales and operating performance remain lower than expected as we continue to build market share and brand awareness.

Net income was $31,445 in fiscal 2012 compared to $20,982 in the prior year.  Excluding a $4,241 (net of tax) charge for the withdrawal liability from a multi-employer pension plan in the prior year, net income increased 25%.  Net income increased primarily due to improved same store sales and increased gross profit percentages.  Net income increased despite losses in the two new Maryland stores as sales in Maryland are lower than expected and we continue to build market share and brand awareness.

CRITICAL ACCOUNTING POLICIES

Critical accounting policies are those accounting policies that management believes are important to the portrayal of the Company’s financial condition and results of operations. These policies require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

IMPAIRMENT

The Company reviews the carrying values of its long-lived assets, such as property, equipment and fixtures for possible impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. Such review analyzes the undiscounted estimated future cash flows from asset groups at the store level to determine if the carrying value of such assets are recoverable from their respective cash flows. If impairment is indicated, it is measured by comparing the fair value of the long-lived asset groups held for use to their carrying value.

Goodwill is tested for impairment at the end of each fiscal year, or more frequently if circumstances dictate. The Company utilizes valuation techniques, such as earnings multiples, in addition to the Company’s market capitalization to assess goodwill for impairment. Calculating the fair value of a reporting unit requires the use of estimates. Management believes the fair value of Village’s one reporting unit exceeds its carrying value at July 27, 2013. Should the Company’s carrying value of its one reporting unit exceed its fair value, the amount of any resulting goodwill impairment may be material to the Company’s financial position and results of operations.

PATRONAGE DIVIDENDS

As a stockholder of Wakefern, Village earns a share of Wakefern’s earnings, which are distributed as a “patronage dividend” (see Note 3). This dividend is based on a distribution of substantially all of Wakefern’s operating profits for its fiscal year (which ends September 30) in proportion to the dollar volume of purchases by each member from Wakefern during that fiscal year. Patronage dividends are recorded as a reduction of cost of sales as merchandise is sold. Village accrues estimated patronage dividends due from Wakefern quarterly based on an estimate of the annual Wakefern patronage dividend and an estimate of Village’s share of this annual dividend based on Village’s estimated proportional share of the dollar volume of business transacted with Wakefern that year. The amount of patronage dividends receivable based on these estimates were $11,810 and $10,774 at July 27, 2013 and July 28, 2012, respectively.

PENSION PLANS

The determination of the Company’s obligation and expense for Company-sponsored pension plans is dependent, in part, on Village’s selection of assumptions used by actuaries in calculating those amounts. These assumptions are described in Note 8 and include, among others, the discount rate, the expected long-term rate of return on plan assets and the rate of increase in compensation costs. Actual results that differ from the Company’s assumptions are accumulated and amortized over future periods and, therefore, generally affect recognized expense in future periods. While management believes that its assumptions are appropriate, significant differences in actual experience or significant changes in the Company’s assumptions may materially affect cash flows, pension obligations and future expense.

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The objective of the discount rate assumption is to reflect the rate at which the Company’s pension obligations could be effectively settled based on the expected timing and amounts of benefits payable to participants under the plans. Our methodology for selecting the discount rate as of July 27, 2013 was to match the plans cash flows to that of a yield curve on high-quality fixed-income investments. Based on this method, we utilized a weighted-average discount rate of 4.43% at July 27, 2013 compared to 3.59% at July 28, 2012. The .84% increase in the discount rate, and a change in the mortality table utilized, decreased the projected benefit obligation at July 27, 2013 by approximately $10,077. Village evaluated the expected long-term rate of return on plan assets of 7.5% and the expected increase in compensation costs of 4 to 4.5% and concluded no changes in these assumptions were necessary in estimating pension plan obligations and expense.

Sensitivity to changes in the major assumptions used in the calculation of the Company’s pension plans is as follows:

	Percentage  point change		Projected benfit  obligation decrease  (increase)		Expense decrease  (increase)
Discount rate		+ / - 1.0%	$	5,379    $  (6,481)	$	34       $  (36)
Expected return on assets		+ / - 1.0%		---	$	365      $  (365)

Village contributed $3,254 and $3,227 in fiscal 2013 and 2012, respectively, to these Company-sponsored pension plans. Village expects to contribute $3,000 in fiscal 2014 to these plans. The 2013, 2012 and expected 2014 contributions are substantially all voluntary contributions.

The Company also contributes to several multi-employer pension plans based on obligations arising from collective bargaining agreements.  These plans provide retirement benefits to participants based on their service to contributing employers.  We recognize expense in connection with these plans as contributions are funded.  

SHARE-BASED EMPLOYEE COMPENSATION

All share-based payments to employees are recognized in the financial statements as compensation expense based on the fair market value on the date of grant. Village determines the fair market value of stock option awards using the Black-Scholes option pricing model. This option pricing model incorporates certain assumptions, such as a risk-free interest rate, expected volatility, expected dividend yield and expected life of options, in order to arrive at a fair value estimate.

UNCERTAIN TAX POSITIONS

The Company is subject to periodic audits by various taxing authorities. These audits may challenge certain of the Company’s tax positions such as the timing and amount of deductions and the allocation of income to various tax jurisdictions. Accounting for these uncertain tax positions requires significant management judgment. Actual results could materially differ from these estimates and could significantly affect the effective tax rate and cash flows in future years.

LIQUIDITY and CAPITAL RESOURCES

CASH FLOWS

Net cash provided by operating activities was $51,273 in fiscal 2013 compared to $43,432 in the corresponding period of the prior year.  This increase is primarily attributable to the prior year including a settlement of a $7,028 pension liability and changes in the timing of payables.

During fiscal 2013 Village used cash to fund capital expenditures of $21,888 and dividends of $24,048.  Capital expenditures include substantial remodels of three stores and the site work and beginning of construction of a replacement store.  Dividends paid include $12,009 of special dividends.

Net cash provided by operating activities was $43,432 in fiscal 2012 compared to $64,144 in the corresponding period of the prior year.  This decrease is primarily attributable to settlement of a $7,028 pension withdrawal liability in fiscal 2012, a decrease in payables in the current fiscal year as compared to an increase in the prior fiscal year, and the prior year including a refund of cash the Company had placed in escrow to fund a property acquisition.   These decreases were partially offset by higher net income in the current fiscal year.

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During fiscal 2012, Village used cash to fund capital expenditures of $16,729, the acquisition of the Old Bridge ShopRite of $4,123 and dividends of $9,758.  Capital expenditures include remodeling and equipment for the acquired Maryland stores, the installation of solar panels in one store and several small remodels.

LIQUIDITY and DEBT

Working capital was $94,299, $71,672, and $44,448 at July 27, 2013, July 28, 2012 and July 30, 2011, respectively.  Working capital ratios at the same dates were 1.85, 1.72, and 1.41 to one, respectively.  The Company’s working capital needs are reduced since inventory is generally sold before payments to Wakefern and other suppliers are due.

Village has budgeted approximately $35,000 for capital expenditures in fiscal 2014. Planned expenditures include the construction of two replacement stores, one of which began in fiscal 2013. The Company’s primary sources of liquidity in fiscal 2014 are expected to be cash and cash equivalents on hand at July 27, 2013 and operating cash flow generated in fiscal 2014.

At July 27, 2013, the Company had a $22,421 note receivable due from Wakefern earning a fixed rate of 7%. Previously, this 15-month note was automatically extended for additional, recurring 90-day periods, unless, not later than one year prior to the due date, the Company notified Wakefern requesting payment on the due date. Wakefern has the right to prepay this note at any time and notified the Company that they intend to prepay the note on February 15, 2014.

Village has an unsecured revolving credit agreement providing a maximum amount available for borrowing of $25,000.  This loan agreement expires on December 31, 2014. The revolving credit line can be used for general corporate purposes. Indebtedness under this agreement bears interest at the prime rate, or at the Eurodollar rate, at the Company’s option, plus applicable margins based on the Company’s fixed charge coverage ratio. There were no amounts outstanding at July 27, 2013 or July 28, 2012 under this facility.

The revolving loan agreement contains covenants that, among other conditions, require a maximum liabilities to tangible net worth ratio, a minimum fixed charge coverage ratio and a positive net income. At July 27, 2013, the Company was in compliance with all terms and covenants of the revolving loan agreement. Under the above covenants, Village had approximately $138,104 of net worth available at July 27, 2013 for the payment of dividends.

During fiscal 2013, Village paid cash dividends of $24,048. Dividends in fiscal 2013 consist of $2.00 per Class A common share and $1.30 per Class B common share. These amounts include $12,009 of special dividends paid in December 2012, comprised of $1.00 per Class A common share and $0.65 per Class B common share.

During fiscal 2012, Village paid cash dividends of $9,758. Dividends in fiscal 2012 consist of $.85 per Class A common share and $.5525 per Class B common share.

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CONTRACTUAL OBLIGATIONS AND COMMITMENTS

The table below presents significant contractual obligations of the Company at July 27, 2013:

	Payments due by fiscal period
	2014		2015		2016		2017		2018		Thereafter		Total
Capital and financing leases (2)	$	4,285	$	4,476	$	4,491	$	4,491	$	4,576	$	79,631	$	101,950
Operating leases (2)		11,204		10,904		9,610		6,928		5,793		43,552		87,991
Notes payable to Related Party		600		667		518		446		88		-		2,319
	$	16,089	$	16,047	$	14,619	$	11,865	$	10,457	$	123,183	$	192,260

(1)	In addition, the Company is obligated to purchase 85% of its primary merchandise requirements from Wakefern (see Note 3).
(2)	The above amounts for capital, financing and operating leases include interest, but do not include certain obligations under these leases for other charges. These charges consisted of the following in fiscal 2013: Real estate taxes - $4,504; common area maintenance - $1,973; insurance - $270; and contingent rentals - $960.
(3)	Pension plan funding requirements are excluded from the above table as estimated contribution amounts for future years are uncertain. Required future contributions will be determined by, among other factors, actual investment performance of plan assets, interest rates required to be used to calculate pension obligations, and changes in legislation. The Company expects to contribute $3,000 in fiscal 2014 to fund Company-sponsored defined benefit pension plans compared to actual contributions of $3,254 in fiscal 2013. The table also excludes contributions under various multi-employer pension plans, which totaled $5,046 in fiscal 2013.
(4)	The amount of unrecognized tax benefits of $11,466 at July 27, 2013 has been excluded from this table because a reasonable estimate of the timing of future tax settlements cannot be determined.

OUTLOOK

This annual report contains certain forward-looking statements about Village’s future performance. These statements are based on management’s assumptions and beliefs in light of information currently available. Such statements relate to, for example: economic conditions; uninsured losses; expected pension plan contributions; projected capital expenditures; expected dividend payments; cash flow requirements; inflation expectations; and legal matters; and are indicated by words such as “will,” “expect,” “should,” “intend,” “anticipates,” “believes” and similar words or phrases. The Company cautions the reader that there is no assurance that actual results or business conditions will not differ materially from the results expressed, suggested or implied by such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof.

· We expect same store sales to increase from 1.5% to 3.5% in fiscal 2014.

· During the last few years, the supermarket industry was impacted by changing consumer behavior due to the weak economy and high unemployment.  Consumers continue to spend cautiously by trading down to lower priced items, including private label, and concentrating their buying on sale items.  Management expects these trends to continue in fiscal 2014.

· We expect modest retail price inflation in fiscal 2014.

· We have budgeted $35,000 for capital expenditures in fiscal 2014. This amount includes the construction of two replacement stores, one of which began in fiscal 2013.

· The Board’s current intention is to continue to pay quarterly dividends in 2014 at the most recent rate of $.25 per Class A and $.1625 per Class B share.

· We believe cash flow from operations and other sources of liquidity will be adequate to meet anticipated requirements for working capital, capital expenditures and debt payments for the foreseeable future.

· We expect our effective income tax rate in fiscal 2014 to be 41.5% - 42.5%.

· We expect operating expenses will be affected by increased costs in certain areas, such as medical and pension costs.

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Various uncertainties and other factors could cause actual results to differ from the forward-looking statements contained in this report. These include:

· The supermarket business is highly competitive and characterized by narrow profit margins. Results of operations may be materially adversely impacted by competitive pricing and promotional programs, industry consolidation and competitor store openings. Village competes with national and regional supermarkets, local supermarkets, warehouse club stores, supercenters, drug stores, convenience stores, dollar stores, discount merchandisers, restaurants and other local retailers. Some of these competitors have greater financial resources, lower merchandise acquisition costs and lower operating expenses than we do.

· The Company’s stores are concentrated in New Jersey, with one store in northeastern Pennsylvania and two in Maryland. We are vulnerable to economic downturns in New Jersey in addition to those that may affect the country as a whole. Economic conditions such as inflation, deflation, interest rates, energy costs and unemployment rates may adversely affect our sales and profits.

· Village acquired two stores in July 2011 in Maryland, a new market for Village where the ShopRite name is less known than in New Jersey. Marketing and other costs are higher than in established markets as Village attempts to build market share and brand awareness. In addition, sales for these two stores are initially expected to be lower than the typical Company store. Potentially higher costs and sales results lower than the Company’s expectations could have a material adverse effect on Village’s results of operations.

· Village purchases substantially all of its merchandise from Wakefern. In addition, Wakefern provides the Company with support services in numerous areas including supplies, advertising, liability and property insurance, technology support and other store services. Further, Village receives patronage dividends and other product incentives from Wakefern. Any material change in Wakefern’s method of operation or a termination or material modification of Village’s relationship with Wakefern could have an adverse impact on the conduct of the Company’s business and could involve additional expense for Village. The failure of any Wakefern member to fulfill its obligations to Wakefern or a member’s insolvency or withdrawal from Wakefern could result in increased costs to the Company. Additionally, an adverse change in Wakefern’s results of operations could have an adverse effect on Village’s results of operations.

· Approximately 91% of our employees are covered by collective bargaining agreements. Contracts with the Company’s seven unions expire between October 2013 and July 2016.  Approximately 49% of our associates are represented by unions whose contracts have already expired or expire within one year.  Any work stoppages could have an adverse impact on our financial results. If we are unable to control health care and pension costs provided for in the collective bargaining agreements, we may experience increased operating costs.

· Village could be adversely affected if consumers lose confidence in the safety and quality of the food supply chain. The real or perceived sale of contaminated food products by us could result in a loss of consumer confidence and product liability claims, which could have a material adverse effect on our sales and operations.

· The Company is constructing two replacement stores.  At the time the replacement stores are expected to open, we will have rental obligations for several years remaining on the existing stores.  If we are unable to sublease the existing stores on terms similar to the current rent or otherwise mitigate the rental obligations, we may incur charges for these obligations at the time the existing stores are closed.

· Certain of the multi-employer plans to which we contribute are underfunded. As a result, we expect that contributions to these plans may increase. Additionally, the benefit levels and related items will be issues in the negotiation of our collective bargaining agreements. Under current law, an employer that withdraws or partially withdraws from a multi-employer pension plan may incur a withdrawal liability to the plan, which represents the portion of the plan’s underfunding that is allocable to the withdrawing employer under very complex actuarial and allocation rules. The failure of a withdrawing employer to fund these obligations can impact remaining employers. The amount of any increase or decrease in our required contributions to these multi-employer pension plans will depend upon the outcome of collective bargaining, actions taken by trustees who manage the plans, government regulations and the actual return on assets held in the plans, among other factors.

· Our long-lived assets, primarily stores, are subject to periodic testing for impairment. Failure of our asset groups to achieve sufficient levels of cash flow could result in impairment charges on long-lived assets.

· Our effective tax rate may be impacted by the results of tax examinations and changes in tax laws, including the disputes with the state of New Jersey described in note 5 of the accompanying notes to the consolidated financial statements.

18

RELATED PARTY TRANSACTIONS

The Company holds an investment in Wakefern, its principal supplier. Village purchases substantially all of its merchandise from Wakefern in accordance with the Wakefern Stockholder Agreement. As part of this agreement, Village is required to purchase certain amounts of Wakefern common stock. At July 27, 2013, the Company’s indebtedness to Wakefern for the outstanding amount of this stock subscription was $2,319. The maximum per store investment, which is currently $825, increased by $25 in both fiscal 2013 and 2012, resulting in additional investments of $949 and $622, respectively. Wakefern distributes as a “patronage dividend” to each member a share of its earnings in proportion to the dollar volume of purchases by the member from Wakefern during the year. Wakefern provides the Company with support services in numerous areas including advertising, supplies, liability and property insurance, technology support and other store services. Additional information is provided in Note 3 to the consolidated financial statements.

At July 27, 2013, the Company had a $22,421 note receivable due from Wakefern earning a fixed rate of 7%. Previously, this 15-month note was automatically extended for additional, recurring 90-day periods, unless, not later than one year prior to the due date, the Company notified Wakefern requesting payment on the due date. Wakefern has the right to prepay this note at any time and notified the Company that they intend to prepay the note on February 15, 2014.

At July 27, 2013, Village had demand deposits invested at Wakefern in the amount of $85,222. These deposits earn overnight money market rates.

The Company subleases the Galloway and Vineland stores from Wakefern at combined current annual rents of $1,237. Both leases contain normal periodic rent increases and options to extend the lease.

Village leases a supermarket from a realty firm partly owned by certain officers of Village. The Company paid rent to this related party of $640, $640 and $615 in fiscal years 2013, 2012 and 2011, respectively. This lease expires in fiscal 2016 with options to extend at increasing annual rents.

The Company has ownership interests in three real estate partnerships. Village paid aggregate rents to two of these partnerships for leased stores of approximately $834, $801 and $764 in fiscal years 2013, 2012 and 2011, respectively. In fiscal 2013, the Company recognized income from partnerships of $1,450 resulting from distributions received from two of these partnerships that exceeded the invested amounts.

ITEM 7A.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

IMPACT OF INFLATION AND CHANGING PRICES

Although the Company cannot accurately determine the precise effect of inflation or deflation on its operations, it estimates that product prices overall experienced slight inflation in fiscal 2013 as compared to substantial inflation in fiscal 2012. The Company recorded a pre-tax LIFO benefit of $56 in fiscal 2013, compared to pre-tax LIFO charges of $601 and $412 in fiscal 2012 and 2011, respectively. The Company calculates LIFO based on CPI indices published by the Department of Labor, which indicated weighted-average CPI changes of (0.1%), 2.1% and 1.3%, in fiscal 2013, 2012 and 2011, respectively.

MARKET RISK

At July 27, 2013, the Company had demand deposits of $85,222 at Wakefern earning interest at overnight money market rates, which are exposed to the impact of interest rate changes.

At July 27, 2013, the Company had a $22,421 note receivable due from Wakefern earning a fixed rate of 7%. Previously, this 15-month note was automatically extended for additional, recurring 90-day periods, unless, not later than one year prior to the due date, the Company notified Wakefern requesting payment on the due date. Wakefern has the right to prepay this note at any time and notified the Company that they intend to prepay the note on February 15, 2014.

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ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 (In thousands)

	July 27, 2013			July 28, 2012
ASSETS
Current Assets
Cash and cash equivalents	$	109,571		$	103,103
Merchandise inventories		41,515			40,599
Patronage dividend receivable		11,810			10,774
Note receivable from Wakefern		22,421			-
Other current assets		20,047			17,102
Total current assets		205,364			171,578
Note receivable from Wakefern		-			20,918
Property, equipment and fixtures, net		176,981			172,420
Investment in Wakefern		24,355			23,406
Goodwill		12,057			12,057
Other assets		8,655			9,159
Total assets	$	427,412		$	409,538
LIABILITIES and SHAREHOLDERS’ EQUITY
Current Liabilities
Capital and financing lease obligations	$	10		$	-
Notes payable to Wakefern		600			473
Accounts payable to Wakefern		59,465			55,441
Accounts payable and accrued expenses		16,999			16,056
Accrued wages and benefits		14,710			12,802
Income taxes payable		19,281			15,134
Total current liabilities		111,065			99,906
Long-term Debt
Capital and financing lease obligations		41,019			40,792
Notes payable to Wakefern		1,719			2,357
Total long-term debt		42,738			43,149
Pension liabilities		20,062			29,763
Other liabilities		8,987			6,409
Commitments and Contingencies (Notes 3, 4, 5, 6, 8 and 9)
Shareholders' Equity
Preferred stock, no par value: Authorized 10,000 shares, none issued		—			—
Class A common stock, no par value: Authorized 20,000 shares; issued 9,440 shares at July 27, 2013 and 7,883 shares at July 28, 2012		44,543			39,570
Class B common stock, no par value: Authorized 20,000 shares; issued and outstanding 4,780 shares at July 27, 2013 and 6,335 shares at July 28, 2012		776			1,028
Retained earnings		211,109			209,373
Accumulated other comprehensive loss		(8,467	)		(15,474	)
Less treasury stock, Class A, at cost (375 shares at July 27, 2013 and 461 shares at July 28, 2012)		(3,401	)		(4,186	)
Total shareholders’ equity		244,560			230,311
Total liabilities and shareholders' equity	$	427,412		$	409,538

See notes to consolidated financial statements.

20

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 (In thousands, except per share amounts)

[

	Years ended
	July 27,  2013			July 28, 2012			July 30,  2011
Sales	$	1,476,457		$	1,422,243		$	1,298,928
Cost of sales		1,078,696			1,033,416			948,769
Gross profit		397,761			388,827			350,159
Operating and administrative expense		333,230			313,516			293,222
Depreciation and amortization		20,354			19,759			18,621
Operating income		44,177			55,552			38,316
Income from partnerships		1,450			-			-
Interest expense		(3,771	)		(4,415	)		(4,280	)
Interest income		2,783			2,571			2,207
Income before income taxes		44,639			53,708			36,243
Income taxes		18,855			22,263			15,261
Net income	$	25,784		$	31,445		$	20,982
Net income per share:
Class A common stock:
Basic	$	2.18		$	2.74		$	1.86
Diluted	$	1.85		$	2.28		$	1.54
Class B common stock:
Basic	$	1.36		$	1.78		$	1.21
Diluted	$	1.36		$	1.77		$	1.21

See notes to consolidated financial statements.

21

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 (in thousands)

	Years ended
	July 27, 2013		July 28, 2012			July 30, 2011
Net income	$	25,784	$	31,445		$	20,982
Other comprehensive income (loss):
Amortization of pension actuarial loss, net of tax (1)		1,309		780			991
Pension adjustment to funded status, net of tax (2)		5,698		(5,112	)		(1,712	)
Total other comprehensive income (loss)		7,007		(4,332	)		(721	)
Comprehensive income	$	32,791	$	27,113		$	20,261
(1) Amounts are net of tax of $872, $519 and $660 for 2013, 2012 and 2011, respectively.
(2) Amounts are net of tax of $3,800, $3,429 and $1,140 for 2013, 2012 and 2011, respectively.

See notes to consolidated financial statements.

22

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in thousands)

Years ended July 27, 2013, July 28, 2012, and July 30, 2011

	Class A Common Stock					Class B Common Stock						Retained			Accumulated other comprehensive			Treasury Stock Class A						Total  shareholders'
	Shares Issued		Amount			Shares Issued			Amount			Earnings			income (loss)			Shares			Amount			equity
Balance, July 31, 2010		7,541	$	32,434			6,376		$	1,035		$	185,790		$	(10,421	)		513		$	(3,063	)	$	205,775
Net income		-		-			-			-			20,982			-			-			-			20,982
Other comprehensive loss, net of tax of $480		-		-			-			-			-			(721	)		-			-			(721	)
Dividends		-		-			-			-			(19,086	)		-			-			-			(19,086	)
Exercise of stock options		-		300			-			-			-			-			(59	)		427			727
Treasury stock purchases		-		-			-			-			-			-			76			(2,171	)		(2,171	)
Share-based compensation expense		292		3,007			-			-			-			-			-			-			3,007
Net tax deficit from exercise of stock options and restricted share vesting		-		(356	)		-			-			-			-			-			-			(356	)
Balance, July 30, 2011		7,833		35,385			6,376			1,035			187,686			(11,142	)		530			(4,807	)		208,157
Net income		-		-			-			-			31,445			-			-			-			31,445
Other comprehensive loss, net of tax of $2,910		-		-			-			-			-			(4,332	)		-			-			(4,332	)
Dividends		-		-			-			-			(9,758	)		-			-			-			(9,758	)
Exercise of stock options		-		723			-			-			-			-			(69	)		630			1,353
Treasury stock purchases		-		-			-			-			-			-			-			(9	)		(9	)
Share-based compensation expense		9		3,180			-			-			-			-			-			-			3,180
Excess tax benefits from exercise of stock options and restricted share vesting		-		275			-			-			-			-			-			-			275
Conversion of Class B shares to Class A shares		41		7			(41	)		(7	)		-			-			-			-			-
Balance, July 28, 2012		7,883		39,570			6,335			1,028			209,373			(15,474	)		461			(4,186	)		230,311
Net income		-		-			-			-			25,784			-			-			-			25,784
Other comprehensive income, net of tax of $4,672		-		-			-			-			-			7,007			-			-			7,007
Dividends		-		-			-			-			(24,048	)		-			-			-			(24,048	)
Exercise of stock options		-		957			-			-			-			-			(86	)		785			1,742
Share-based compensation expense		2		3,222			-			-			-			-			-			-			3,222
Excess tax benefits from exercise of stock options and restricted share vesting		-		542			-			-			-			-			-			-			542
Conversion of Class B shares to Class A shares		1,555		252			(1,555	)		(252	)		-			-			-			-			-
Balance, July 27, 2013		9,440	$	44,543			4,780		$	776		$	211,109		$	(8,467	)		375		$	(3,401	)	$	244,560

See notes to consolidated financial statements.

23

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Years ended
	July 27, 2013			July 28, 2012			July 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	25,784		$	31,445		$	20,982
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,354			19,759			18,621
Non-cash share-based compensation		3,222			3,180			3,007
Deferred taxes		(3,499	)		1,089			(1,543	)
Provision to value inventories at LIFO		(56	)		601			412
Income from partnerships		(1,450	)		-			-
Changes in assets and liabilities, net of effects of stores acquired:
Merchandise inventories		(860	)		(1,423	)		(2,703	)
Patronage dividend receivable		(1,036	)		(1,756	)		(260	)
Accounts payable to Wakefern		4,024			32			8,321
Accounts payable and accrued expenses		(1,778	)		643			2,408
Accrued wages and benefits		1,908			(6,415	)		7,269
Income taxes payable		4,147			(2,745	)		2,268
Other assets and liabilities		513			(978	)		5,362
Net cash provided by operating activities		51,273			43,432			64,144
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(21,888	)		(16,729	)		(13,346	)
Investment in note receivable from Wakefern		(1,503	)		(1,406	)		(1,308	)
Store acquisitions		-			(4,123	)		(6,595	)
Proceeds from partnerships		1,980			-			-
Net cash used in investing activities		(21,411	)		(22,258	)		(21,249	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options		1,742			1,353			727
Excess tax benefit related to share-based compensation		542			275			703
Principal payments of long-term debt		(1,630	)		(1,294	)		(749	)
Dividends		(24,048	)		(9,758	)		(19,086	)
Treasury stock purchases		-			(9	)		(2,171	)
Net cash used in financing activities		(23,394	)		(9,433	)		(20,576	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		6,468			11,741			22,319
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		103,103			91,362			69,043
CASH AND CASH EQUIVALENTS, END OF YEAR	$	109,571		$	103,103		$	91,362
SUPPLEMENTAL DISCLOSURES OF CASH PAYMENTS MADE FOR:
Interest	$	4,012		$	4,116		$	4,280
Income taxes		17,665			23,076			12,095
NONCASH SUPPLEMENTAL DISCLOSURES:
Investment in Wakefern	$	-		$	323		$	1,550

See notes to consolidated financial statements.

24

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(All amounts are in thousands, except per share data)

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of operations

Village Super Market, Inc. (the “Company” or “Village”) operates a chain of 29 ShopRite supermarkets in New Jersey, eastern Pennsylvania and Maryland. On January 29, 2012, Village acquired store fixtures, leasehold interests and other assets of the ShopRite in Old Bridge, NJ for $3,250 plus inventory and other working capital for $1,116.  In July 2011, Village acquired the store fixtures, leases and other assets of two locations in Maryland for $6,595 from SuperFresh.  These stores opened as ShopRites on July 28, 2011 after remodeling.The Company is a member of Wakefern Food Corporation (“Wakefern”), the largest retailer-owned food cooperative in the United States.

Principles of consolidation

The consolidated financial statements include the accounts of Village Super Market, Inc. and its subsidiaries, which are wholly owned. Intercompany balances and transactions have been eliminated.

Fiscal year

The Company and its subsidiaries utilize a 52-53 week fiscal year ending on the last Saturday in the month of July. Fiscal 2013, 2012 and 2011 contain 52 weeks.

Industry segment

The Company consists of one operating segment, the retail sale of food and nonfood products.

Revenue recognition

Merchandise sales are recognized at the point of sale to the customer. Sales tax is excluded from revenue. Discounts provided to customers through ShopRite coupons and loyalty programs are recognized as a reduction of sales as the products are sold.

Cash and cash equivalents

The Company considers all highly liquid investments purchased with a maturity of three months or less and proceeds due from credit and debit card transactions with settlement terms of less than five days to be cash equivalents. Included in cash and cash equivalents at July 27, 2013 and July 28, 2012 are $85,222 and $82,294, respectively, of demand deposits invested at Wakefern at overnight money market rates.

Merchandise inventories

Approximately 65% of merchandise inventories are stated at the lower of LIFO (last-in, first-out) cost or market. If the FIFO (first-in, first-out) method had been used, inventories would have been $14,786 and $14,842 higher than reported in fiscal 2013 and 2012, respectively. All other inventories are stated at the lower of FIFO cost or market.

Vendor allowances and rebates

The Company receives vendor allowances and rebates, including the patronage dividend and amounts received as a pass through from Wakefern, related to the Company’s buying and merchandising activities. Vendor allowances and rebates are recognized as a reduction in cost of sales when the related merchandise is sold or when the required contractual terms are completed.

Property, equipment and fixtures

Property, equipment and fixtures are recorded at cost. Interest cost incurred to finance construction is capitalized as part of the cost of the asset. Maintenance and repairs are expensed as incurred.

Depreciation is provided on a straight-line basis over estimated useful lives of thirty years for buildings, ten years for store fixtures and equipment, and three years for vehicles. Leasehold improvements are amortized over the shorter of the related lease terms or the estimated useful lives of the related assets.

25

When assets are sold or retired, their cost and accumulated depreciation are removed from the accounts, and any gain or loss is reflected in the consolidated financial statements.

Investments

The Company’s investments in its principal supplier, Wakefern, and a Wakefern affiliate, Insure-Rite, Ltd., are stated at cost (see Note 3). Village evaluates its investments in Wakefern and Insure-Rite, Ltd. for impairment through consideration of previous, current and projected levels of profit of those entities.

The Company’s 20%-50% investments in certain real estate partnerships are accounted for under the equity method. One of these partnerships is a variable interest entity which does not require consolidation as Village is not the primary beneficiary (see Note 6).

Store opening and closing costs

All store opening costs are expensed as incurred. The Company records a liability for the future minimum lease payments and related costs for closed stores from the date of closure to the end of the remaining lease term, net of estimated cost recoveries that may be achieved through subletting, discounted using a risk-adjusted interest rate.

Leases

Leases that meet certain criteria are classified as capital leases, and assets and liabilities are recorded at amounts equal to the lesser of the present value of the minimum lease payments or the fair value of the leased properties at the inception of the respective leases. Such assets are amortized on a straight- line basis over the shorter of the related lease terms or the estimated useful lives of the related assets. Amounts representing interest expense relating to the lease obligations are recorded to effect constant rates of interest over the terms of the leases. Leases that do not qualify as capital leases are classified as operating leases. The Company accounts for rent holidays, escalating rent provisions, and construction allowances on a straight-line basis over the term of the lease.

For leases in which the Company is involved with the construction of the store, if Village concludes that it has substantively all of the risks of ownership during construction of the leased property and therefore is deemed the owner of the project for accounting purposes, an asset and related financing obligation are recorded for the costs paid by the landlord. Once construction is complete, the Company considers the requirements for sale-leaseback treatment. If the arrangement does not qualify for sale-leaseback treatment, the Company amortizes the financing obligation and depreciates the building over the lease term.

Advertising

Advertising costs are expensed as incurred. Advertising expense was $11,018, $10,952 and $9,294 in fiscal 2013, 2012 and 2011, respectively.

Income taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.

The Company recognizes a tax benefit for uncertain tax positions if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority having full knowledge of all relevant information.

Use of estimates

In conformity with U.S. generally accepted accounting principles, management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates are patronage dividends, pension accounting assumptions, share-based compensation assumptions, accounting for uncertain tax positions, accounting for contingencies and the impairment of long-lived assets and goodwill. Actual results could differ from those estimates.

Fair value

Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels within the hierarchy range from Level 1 having the highest priority to Level 3 having the lowest.

26

Cash and cash equivalents, patronage dividends receivable, accounts payable and accrued expenses are reflected in the consolidated financial statements at carrying value, which approximates fair value because of the short-term maturity of these instruments. The carrying values of the Company’s notes receivable from Wakefern and short and long-term notes payable approximate their fair value based on the short duration of these instruments. As the Company’s investments in Wakefern can only be sold to Wakefern at amounts that approximate the Company’s cost, it is not practicable to estimate the fair value of such investments.

Long-lived assets

The Company reviews long-lived assets, such as property, equipment and fixtures on an individual store basis for impairment when circumstances indicate the carrying amount of an asset group may not be recoverable. Such review analyzes the undiscounted estimated future cash flows from such assets to determine if the carrying value of such assets are recoverable from their respective cash flows. If impairment is indicated, it is measured by comparing the fair value of the long-lived assets to their carrying value.

Goodwill

Goodwill is tested at the end of each fiscal year, or more frequently if circumstances dictate, for impairment. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. Village operates as a single reporting unit for purposes of evaluating goodwill for impairment and primarily considers earnings multiples and other valuation techniques to measure fair value, in addition to the value of the Company’s stock.

During fiscal 2012, the Company recorded additional goodwill related to the acquisition of the ShopRite in Old Bridge, NJ of $1,452, all of which is deductible for tax purposes.

Net income per share

The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time.

The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method.

Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for- share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock.

27

The tables below reconcile the numerators and denominators of basic and diluted net income per share for all periods presented.

	2013					2012					2011
	Class A		Class B			Class A		Class B			Class A		Class B
Numerator:
Net income allocated, basic	$	18,089	$	7,053		$	19,314	$	11,317		$	12,752	$	7,741
Conversion of Class B to Class A shares		7,053		-			11,317		-			7,741		-
Effect of share-based compensation on allocated net income		6		(5	)		94		(54	)		8		(6	)
Net income allocated, diluted	$	25,148	$	7,048		$	30,725	$	11,263		$	20,501	$	7,735
Denominator:
Weighted average shares outstanding, basic		8,297		5,197			7,045		6,358			6,873		6,376
Conversion of Class B to Class A shares		5,197		-			6,358		-			6,376		-
Dilutive effect of share-based compensation		112		-			81		-			106		-
Weighted average shares outstanding, diluted		13,606		5,197			13,484		6,358			13,355		6,376

Net income per share is as follows:

	2013				2012				2011
	Class   A		Class   B		Class   A		Class   B		Class   A		Class   B
Basic	$	2.18	$	1.36	$	2.74	$	1.78	$	1.86	$	1.21
Diluted	$	1.85	$	1.36	$	2.28	$	1.77	$	1.54	$	1.21

Outstanding stock options to purchase Class A shares of 5, 222 and 246 were excluded from the calculation of diluted net income per share at July 27, 2013, July 28, 2012 and July 30, 2011, respectively, as a result of their anti-dilutive effect. In addition, 299, 299 and 292 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at July 27, 2013, July 28, 2012 and July 30, 2011, respectively, due to their anti-dilutive effect.

Share-based compensation

All share-based payments to employees are recognized in the financial statements as compensation costs based on the fair market value on the date of the grant.

Benefit plans

The Company recognizes the funded status of its Company sponsored retirement plans on the consolidated balance sheet. Actuarial gains or losses, prior service costs or credits and transition obligations not previously recognized are recorded as a component of Accumulated Other Comprehensive Income (Loss).

The Company also contributes to several multi-employer pension plans under the terms of collective bargaining agreements that cover certain union-represented employees.  Pension expense for these plans is recognized as contributions are made.

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NOTE 2 — PROPERTY, EQUIPMENT and FIXTURES

Property, equipment and fixtures are comprised as follows:

	July 27, 2013			July 28, 2012
Land and buildings	$	78,786		$	78,946
Store fixtures and equipment		190,957			178,589
Leasehold improvements		82,523			79,429
Leased property under capital leases		21,686			21,686
Construction in progress		12,231			4,053
Vehicles		2,581			2,342
Total property, equipment and fixtures		388,764			365,045
Accumulated depreciation		(207,161	)		(188,722	)
Accumulated amortization of property under capital leases		(4,622	)		(3,903	)
Property, equipment and fixtures, net	$	176,981		$	172,420

Amortization of leased property under capital and financing leases is included in depreciation and amortization expense.

NOTE 3 — RELATED PARTY INFORMATION - WAKEFERN

The Company’s ownership interest in its principal supplier, Wakefern, which is operated on a cooperative basis for its stockholder members, is 13.7% of the outstanding shares of Wakefern at July 27, 2013. The investment is pledged as collateral for any obligations to Wakefern. In addition, all obligations to Wakefern are personally guaranteed by certain shareholders of Village.

The Company is obligated to purchase 85% of its primary merchandise requirements from Wakefern until ten years from the date that stockholders representing 75% of Wakefern sales notify Wakefern that those stockholders request that the Wakefern Stockholder Agreement be terminated. If this purchase obligation is not met, Village is required to pay Wakefern’s profit contribution shortfall attributable to this failure. Similar payments are due if Wakefern loses volume by reason of the sale of Company stores or a merger with another entity. Village fulfilled the above obligation in fiscal 2013, 2012 and 2011. The Company also has an investment of approximately 8.1% in Insure-Rite, Ltd., a Wakefern affiliated company, that provides Village with liability and property insurance coverage.

Wakefern has increased from time to time the required investment in its common stock for each supermarket owned by a member, with the exact amount per store computed based on the amount of each store’s purchases from Wakefern. At July 27, 2013, the Company’s indebtedness to Wakefern for the outstanding amount of these stock subscriptions was $2,319. Installment payments are due as follows:  2014 - $600; 2015 - $667; 2016 - $518; 2017 - $446; 2018 - $88 and none thereafter. The maximum per store investment, which is currently $825, increased by $25 in both fiscal 2013 and 2012, resulting in additional investments of $949 and $622, respectively. Village receives additional shares of common stock to the extent paid for at the end of each fiscal year (September 30) of Wakefern calculated at the then book value of such shares. The payments, together with any stock issued thereunder, at the option of Wakefern, may be null and void and all payments on this subscription shall become the property of Wakefern in the event the Company does not complete the payment of this subscription in a timely manner.

Village purchases substantially all of its merchandise from Wakefern. Wakefern distributes as a “patronage dividend” to each member a share of substantially all of its earnings in proportion to the dollar volume of purchases by the member from Wakefern during the year. Patronage dividends and other vendor allowances and rebates amounted to $24,779, $23,953 and $17,724 in fiscal 2013, 2012 and 2011, respectively.

Wakefern provides the Company with support services in numerous areas including advertising, supplies, liability and property insurance, technology support and other store services. Village incurred charges of $29,973, $27,991 and $23,453, from Wakefern in fiscal 2013, 2012 and 2011, respectively, for these services, which are reflected in operating and administrative expense in the consolidated statements of operations. Additionally, the Company has certain related party leases (see Note 6) with Wakefern.

At July 27, 2013, the Company had a $22,421 note receivable due from Wakefern earning a fixed rate of 7%. Previously, this 15-month note was automatically extended for additional, recurring 90-day periods, unless, not later than one year prior to the due date, the Company notified Wakefern requesting payment on the due date. Wakefern has the right to prepay this note at any time and notified the Company that they intend to prepay the note on February 15, 2014.

29

At July 27, 2013, the Company had demand deposits invested at Wakefern in the amount of $85,222. These deposits earn overnight money market rates.

Interest income earned on investments with Wakefern was $2,783, $2,571 and $2,207, in fiscal 2013, 2012 and 2011, respectively.

NOTE 4 — DEBT

Village has an unsecured revolving credit agreement providing a maximum amount available for borrowing of $25,000.   This loan agreement expires on December 31, 2014.  The revolving credit line can be used for general corporate purposes. Indebtedness under this agreement bears interest at the prime rate, or at the Eurodollar rate, at the Company’s option, plus applicable margins based on the Company’s fixed charge coverage ratio. There were no amounts outstanding at July 27, 2013 or July 28, 2012 under this facility.

The revolving loan agreement provides for up to $3,000 of letters of credit ($2,461  outstanding at July 27, 2013), which secure obligations for self-insured workers’ compensation claims and construction performance guarantees to municipalities.

This loan agreement contains covenants that, among other conditions, require a maximum liabilities to tangible net worth ratio, a minimum fixed charge coverage ratio and a positive net income. At July 27, 2013, the Company was in compliance with all covenants of the revolving loan agreement. Under the above covenants, Village had approximately $138,104 of net worth available at July 27, 2013 for the payment of dividends.

NOTE 5 — INCOME TAXES

The components of the provision for income taxes are:

	2013			2012		2011
Federal:
Current	$	17,215		$	16,009	$	12,539
Deferred		(3,021	)		931		(952	)
State:
Current		5,139			5,165		4,265
Deferred		(478	)		158		(591	)
	$	18,855		$	22,263	$	15,261

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Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	July 27, 2013		July 28, 2012
Deferred tax assets:
Leasing activities	$	5,747	$	4,893
Federal benefit of uncertain tax positions		8,028		6,681
Compensation related costs		6,256		4,344
Pension costs		5,644		10,316
Other		1,868		1,656
Total deferred tax assets		27,543		27,890
Deferred tax liabilities:
Tax over book depreciation		17,352		17,826
Patronage dividend receivable		4,903		4,392
Investment in partnerships		1,411		950
Other		491		163
Total deferred tax liabilities		24,157		23,331
Net deferred tax asset	$	3,386	$	4,559

Deferred income tax assets (liabilities) are included in the following captions on the consolidated balance sheets at July 27, 2013 and July 28, 2012:

	2013			2012
Other current assets	$	5,053		$	4,154
Other assets		1,211			1,644
Accounts payable and accrued expenses		(838	)		(714	)
Other liabilities		(2,040	)		(525	)

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. In management’s opinion, in view of the Company’s previous, current and projected taxable income and reversal of deferred tax liabilities, such tax assets will more likely than not be fully realized. Accordingly, no valuation allowance was deemed to be required at July 27, 2013 and July 28, 2012.

The effective income tax rate differs from the statutory federal income tax rate as follows:

	2013			2012			2011
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		6.8			6.4			6.6
Other		0.4			0.1			0.5
Effective income tax rate		42.2	%		41.5	%		42.1	%

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A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

	2013		2012
Balance at beginning of year	$	14,895	$	12,476
Additions based on tax positions related to the current year		2,745		2,419
Balance at end of year	$	17,640	$	14,895

Unrecognized tax benefits at July 27, 2013 and July 28, 2012 include tax positions of $11,466 and $9,682 (net of federal benefit), respectively, that would reduce the Company’s effective income tax rate, if recognized in future periods.

The Company recognizes interest and penalties on income taxes in income tax expense. The Company recognized $1,211, $1,008 and $817, related to interest and penalties on income taxes in fiscal 2013, 2012 and 2011, respectively. The amount of accrued interest and penalties included in the consolidated balance sheet was $5,820 and $4,609 at July 27, 2013 and July 28, 2012, respectively.

The state of New Jersey audited the Company’s tax returns for fiscal 2002 through 2005 and has assessed two separate tax deficiencies related to nexus and the deductibility of certain payments between subsidiaries. The Company contested both these assessments through the state’s conference and appeals process. During fiscal 2011, Village received two determinations that the Company’s protests were denied. The Company has filed two complaints in Tax Court against the New Jersey Division of Taxation contesting these decisions. In addition, during fiscal 2012 the state of New Jersey audited the Company’s tax returns for fiscal 2006 through 2009 and has assessed a tax deficiency related to the same issue as above. The Company is currently contesting this assessment through the state’s conference and appeals process.  A trial limited to the nexus dispute was conducted in June 2013 and no decision has been rendered.  The ultimate resolution of these matters could significantly increase or decrease the total amount of the Company’s unrecognized tax benefits and could materially impact our results of operations and cash flows. An examination of the Company’s fiscal 2009 federal tax return was completed in fiscal 2011 with no change.

NOTE 6 — LEASES

Description of leasing arrangements

The Company leased twenty-four stores at July 27, 2013, including five that are capitalized for financial reporting purposes. 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. These options enable Village to retain the use of facilities in desirable operating areas. Management expects that in the normal course of business, most leases will be renewed or replaced by other leases. The Company is obligated under all leases to pay for real estate taxes, utilities and liability insurance, and under certain leases to pay additional amounts based on maintenance and a percentage of sales in excess of stipulated amounts.

Future minimum lease payments by year and in the aggregate for all non-cancelable leases with initial terms of one year or more consist of the following at July 27, 2013:

	Capital and financing leases		Operating  Leases
2014	$	4,285	$	11,204
2015		4,476		10,904
2016		4,491		9,610
2017		4,491		6,928
2018		4,576		5,793
Thereafter		79,631		43,552
Minimum lease payments		101,950	$	87,991
Less amount representing interest		60,921
Present value of minimum lease payments		41,029
Less current portion		10
	$	41,019

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The following schedule shows the composition of total rental expense for the following years:

	2013		2012		2011
Minimum rentals	$	11,192	$	10,625	$	8,625
Contingent rentals		960		882		881
	$	12,152	$	11,507	$	9,506

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 $640, $640 and $615 in fiscal 2013, 2012 and 2011, respectively. This lease expires in fiscal 2016 with options to extend at increasing annual rents.

The Company has ownership interests in three real estate partnerships. Village paid aggregate rents to two of these partnerships for leased stores of $834, $801 and $764 in fiscal 2013, 2012 and 2011, respectively.  In November 2012, the Company received $1,980 in cash distributions from two partnerships.  Income from partnerships in fiscal 2013 of $1,450 represents proceeds received in excess of invested amounts.

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 partnerships profits and losses.

The Company leases the Galloway and Vineland stores from Wakefern under sublease agreements which provide for combined annual rent of $1,237. Both leases contain normal periodic rent increases and options to extend the lease.

NOTE 7 — SHAREHOLDERS’ EQUITY

The Company has two classes of common stock. Class A common stock is entitled to one vote per share and to cash dividends as declared 54% greater than those paid on Class B common stock. Class B common stock is entitled to 10 votes per share. Class A and Class B common stock share equally on a per share basis in any distributions in liquidation. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time. Class B common stock is not transferable except to another holder of Class B common stock or by will or under the laws of intestacy or pursuant to a resolution of the Board of Directors of the Company approving the transfer. As a result of this voting structure, the holders of the Class B common stock control greater than 50% of the total voting power of the shareholders of the Company and control the election of the Board of Directors.

The Company has authorized 10,000 shares of preferred stock. No shares have been issued. The Board of Directors is authorized to designate series, preferences, powers and participations of any preferred stock issued.

Village has three share-based compensation plans, which are described below. The compensation cost charged against income for these plans was $3,222, $3,180 and $3,007 in fiscal 2013, 2012 and 2011,  respectively. Total income tax benefit recognized in the consolidated statements of operations for share-based compensation arrangements was $1,140, $1,126 and $1,001 in fiscal 2013, 2012 and 2011, respectively.

The 1997 Incentive and Non-Statutory Stock Option Plan (the “1997 Plan”) provided for the granting of options to purchase up to 1,000 shares of the Company’s Class A common stock by officers, employees and directors of the Company as designated by the Board of Directors. The Plan requires incentive stock options to be granted at exercise prices equal to the  fair value of Village’s stock at the date of grant (110% if the optionee holds more than 10% of the voting stock of the Company), while nonqualified options may be granted at an exercise price less than fair value. All options granted under this plan were at fair value, vest over a one-year service period and are exercisable up to ten years from the date of grant. There are no shares remaining for future grants under the 1997 Plan.

The Village Super Market, Inc. 2004 Stock Plan (the “2004 Plan”) provides for awards of incentive and nonqualified stock options and restricted stock. There are 1,200 shares of Class A common stock authorized for issuance to employees and directors under the 2004 Plan. Terms and conditions of awards are determined by the Board of Directors. Option awards are primarily granted at the fair value of the Company’s stock at the date of grant, cliff vest three years from the grant date and are exercisable up to ten years from the date of grant. Restricted stock awards primarily cliff vest three years from the grant date. There are no shares remaining for future grants under the 2004 Plan.

On December 17, 2010, the shareholder’s of the Company approved the Village Super Market, Inc. 2010 Stock Plan (the “2010 Plan”) under which awards of incentive and non qualified stock options and restricted stock may be made. There are 1,200 shares of Class A common stock authorized for issuance to employees and directors under the 2010 Plan. Terms and conditions of awards are determined by the Board of Directors. Option awards granted to date were granted at the fair value of the Company stock on the date of grant, primarily cliff vest three years from the grant date and are exercisable up to ten years from the grant date. Restricted stock awards primarily cliff vest three years from the date of grant.

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The following table summarizes option activity under all plans for the following years:

	2013					2012					2011
	Shares			Weighted-average  exercise price		Shares			Weighted-average exercise price		Shares			Weighted-average exercise price
Outstanding at beginning of year		474		$	24.03		555		$	23.34		404		$	19.56
Granted		8			33.91		-			-		218			27.51
Exercised		(86	)		20.19		(69	)		19.50		(59	)		12.32
Forfeited		(16	)		28.86		(12	)		18.40		(8	)		27.58
Outstanding at end of year		380		$	24.91		474		$	24.03		555		$	23.34
Options exercisable at end of year		169		$	21.50		234		$	20.48		297		$	19.82

As of July 27, 2013, the weighted-average remaining contractual term of options outstanding and options exercisable was 6.1 years and 4.1 years, respectively. As of July 27, 2013, the aggregate intrinsic value of options outstanding and options exercisable was $3,775 and $2,261, respectively. The weighted-average grant date fair value of options granted was $7.30 and $5.78 per share in fiscal 2013 and 2011, respectively. The total intrinsic value of options exercised was $1,344, $685 and $1,009 in fiscal 2013, 2012 and 2011, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Pricing Model using the weighted-average assumptions in the following table. The Company uses historical data for similar groups of employees in order to estimate the expected life of options granted. Expected volatility is based on the historical volatility of the Company’s stock for a period of years corresponding to the expected life of the option. The risk free interest rate is based on the U.S. Treasury yield curve at the time of grant for securities with a maturity period similar to the expected life of the option.    

	2013			2011
Expected life (years)		5.0			5.0
Expected volatility		33.0	%		32.2	%
Expected dividend yield		3.0	%		3.6	%
Risk-free interest rate		0.8	%		2.0	%

The following table summarizes restricted stock activity under the 2004 and 2010 Plans for fiscal 2013, 2012 and 2011:

	2013					2012					2011
	Shares			Weighted-average grant date  fair value		Shares			Weighted-average  grant date  fair value		Shares			Weighted-average  grant date  fair value
Nonvested at beginning of year		299		$	27.57		293		$	27.56		257		$	25.65
Granted		2			33.73		9			29.46		292			27.55
Vested		(2	)		28.25		(3	)		32.25		(256	)		25.64
Forfeited		-			-		-			-		-			-
Nonvested at end of year		299		$	27.60		299		$	27.57		293		$	27.56

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The total fair value of restricted shares vested during fiscal 2013, 2012 and 2011 was $60, $89 and $7,328, respectively.  As of July 27, 2013, there was $2,074 of total unrecognized compensation costs related to nonvested stock options and restricted stock granted under the above plans. That cost is expected to be recognized over a weighted-average period of 0.7 years.

Cash received from option exercises under all share-based compensation arrangements was $1,742, $1,353 and $727 in fiscal 2013, 2012 and 2011, respectively. The actual tax benefit realized for tax deductions from option exercises under share-based compensation arrangements was $537, $280 and $385 in fiscal 2013, 2012 and 2011, respectively.

The Company declared and paid cash dividends on common stock as follows:

	2013		2012		2011
Per share:
Class A common stock	$	2.000	$	0.850	$	1.700
Class B common stock		1.300		0.553		1.105
Aggregate:
Class A common stock	$	17,486	$	6,247	$	12,040
Class B common stock		6,562		3,511		7,046
	$	24,048	$	9,758	$	19,086

Dividends paid in fiscal 2013 include special dividends totaling $12,009 paid in the second quarter, comprised of $1.00 per Class A common share and $.65 per Class B common share.  Dividends paid in fiscal 2011 include special dividends totaling $14,005 paid in the second quarter, comprised of $1.25 per Class A common share and $.8125 per Class B common share.

NOTE 8 — PENSION PLANS

Company-Sponsored Pension Plans

The Company sponsors four defined benefit pension plans. Two are tax-qualified plans covering members of unions. Benefits under these two plans are based on a fixed amount for each year of service. One is a tax-qualified plan covering nonunion associates. Benefits under this plan are based upon percentages of annual compensation. Funding for these plans is based on an analysis of the specific requirements and an evaluation of the assets and liabilities of each plan. The fourth plan is an unfunded, nonqualified plan providing supplemental pension benefits to certain executives. The Company uses its fiscal year-end date as the measurement date for these plans.

Net periodic pension cost for the four plans include the following components:

	2013			2012			2011
Service cost	$	3,279		$	2,694		$	2,903
Interest cost on projected benefit obligation		2,479			2,701			2,575
Expected return on plan assets		(2,706	)		(2,538	)		(2,067	)
Amortization of gains and losses		2,173			1,371			1,709
Amortization of prior service costs		8			8			8
Net periodic pension cost	$	5,233		$	4,236		$	5,128

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The changes in benefit obligations and the reconciliation of the funded status of the Company’s plans to the consolidated balance sheets were as follows:

	2013			2012
Changes in Benefit Obligation:
Benefit obligation at beginning of year	$	67,179		$	55,480
Service cost		3,279			2,694
Interest cost		2,479			2,701
Benefits paid		(2,422	)		(1,023	)
Actuarial (gain) loss		(6,871	)		7,327
Benefit obligation at end of year	$	63,644		$	67,179
Changes in Plan Assets:
Fair value of plan assets at beginning of year	$	37,416		$	33,967
Actual return on plan assets		5,334			1,245
Employer contributions		3,254			3,227
Benefits paid		(2,422	)		(1,023	)
Fair value of plan assets at end of year		43,582			37,416
Funded status at end of year	$	(20,062	)	$	(29,763	)
Amounts recognized in the consolidated balance sheets:
Pension liabilities	$	(20,062	)	$	(29,763	)
Accumulated other comprehensive loss, net of income taxes		8,467			15,474
Amounts included in Accumulated other comprehensive loss (pre-tax):
Net actuarial loss	$	14,111		$	25,783
Prior service cost		-			8
	$	14,111		$	25,791

The Company expects approximately $804 of the net actuarial loss to be recognized as a component of net periodic benefit costs in fiscal 2014.

The accumulated benefit obligations of the four plans were $53,034 and $55,873 at July 27, 2013 and July 28, 2012, respectively.  The following information is presented for those plans with an accumulated benefit obligation in excess of plan assets:

	2013		2012
Projected benefit obligation	$	14,943	$	67,179
Accumulated benefit obligation		14,943		55,873
Fair value of plan assets		3,695		37,416

Weighted average assumptions used to determine benefit obligations and net periodic pension cost for the Company’s defined benefit plans were as follows:

	2013			2012			2011
Assumed discount rate — net periodic pension cost		3.59	%		4.99	%		5.19	%
Assumed discount rate — benefit obligation		4.43	%		3.59	%		4.99	%
Assumed rate of increase in compensation levels		4 - 4.5	%		4 - 4.5	%		4 - 4.5	%
Expected rate of return on plan assets		7.50	%		7.50	%		7.50	%

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Investments in the pension trusts are overseen by the trustees of the plans, who are officers of Village. The Company’s overall investment strategy is to maintain a broadly diversified portfolio of stocks, bonds and money market instruments that, along with periodic plan contributions, provide the necessary funds for ongoing benefit obligations. Expected rates of return on plan assets are developed by determining projected stock and bond returns and then applying these returns to the target asset allocations of the trusts, resulting in a weighted-average rate of return on plan assets. Equity returns were based primarily on historical returns of the S&P 500 Index. Fixed-income projected returns were based primarily on historical returns for the broad U.S. bond market. The target allocations for plan assets are 50-70% equity securities, 25-40% fixed income securities and 0-10% cash. Asset allocations are reviewed periodically and appropriate rebalancing is performed.

Equity securities include investments in large-cap, small-cap and mid-cap companies located both in and outside the United States. Fixed income securities include U.S. treasuries, mortgage-backed securities and corporate bonds of companies from diversified industries. Investments in securities are made both directly and through mutual funds. In addition, one plan held Class A common stock of Village in the amount of $837 and $804 at July 27, 2013 and July 28, 2012, respectively.

Risk management is accomplished through diversification across asset classes and fund strategies, multiple investment portfolios and investment guidelines. The plans do not allow for investments in derivative instruments.

The fair value of the pension assets, all of which are valued on quoted prices in active markets for identical assets (Level 1), were as follows:

	July 27, 2013		July 28, 2012
Asset Category
Cash	$	1,747	$	607
Equity securities:
Company stock		837		804
U.S large cap (1)		16,385		13,488
U.S. small/mid cap (2)		6,762		5,438
International (3)		4,580		3,697
Emerging markets (4)		1,074		1,010
Fixed income securities:
U.S treasuries (5)		7,966		7,657
Mortgage-backed (5)		1,877		1,952
Corporate bonds (5)		1,766		2,763
Emerging markets (6)		588		-
Total	$	43,582	$	37,416

(1)	Includes directly owned securities and mutual funds, primarily low-cost equity index funds not actively managed that track the S&P 500.
(2)	Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded U.S. common stocks of small and medium cap companies.
(3)	Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded common stocks of large, non-U.S. companies.
(4)	Consists of mutual and exchange traded funds which invest in non-U.S. stocks in emerging markets.
(5)	Includes directly owned securities, mutual funds and exchange traded funds.
(6)	Consists of exchange traded funds which invest in non-U.S. bonds in emerging markets.

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Based on actuarial assumptions, estimated future defined benefit payments, which may be significantly impacted by participant elections related to retirement dates and forms of payment, are as follows:

Fiscal Year
2014	$	1,027
2015		3,774
2016		1,400
2017		1,572
2018		9,673
2019 - 2023		13,867

The Company expects to contribute $3,000 in cash to all defined benefit pension plans in fiscal 2014.

Multi-Employer Plans

The Company contributes to three multi-employer pension plans under collective bargaining agreements covering union-represented employees.  These plans provide benefits to participants that are generally based on a fixed amount for each year of service.  Based on the most recent information available, certain of these multi-employer plans are underfunded. The amount of any increase or decrease in Village’s required contributions to these multi- employer pension plans will depend upon the outcome of collective bargaining, actions taken by trustees who manage the plans, government regulations and the actual return on assets held in the plans, among other factors.

The risks of participating in multi-employer pension plans are different from the risks of participating in single-employer pension plans in the following respects:

· Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.

· If a participating employer stops contributing to the plan, the unfunded obligations of the plan allocable to such withdrawing employer may be borne by the remaining participating employers.

· If the Company stops participating in some of its multi-employer pension plans, the Company may be required to pay those plans an amount based on its allocable share of the underfunded status of the plan, referred to as a withdrawal liability.

The Company’s participation in these plans is outlined in the following tables.  The “EIN / Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit pension plan number.  The most recent “Pension Protection Act Zone Status” available in 2012 and 2011 is for the plan’s year-end at December 31, 2012 and December 31, 2011, respectively, unless otherwise noted.  Among other factors, generally, plans in the red zone are less than 65 percent funded, plans in the yellow zone are between 65 and 80 percent funded and plans in the green zone are at least 80 percent funded.  The “FIP/RP Status Pending / Implemented” column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. 

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			Pension Protection Act Zone Status		FIP/RP Status	Contributions for the year ended (5)							Expiration date of Collective
Pension Fund	EIN / Pension Plan Number		2012	2011	Pending /  Implemented	July 27, 2013		July 28,  2012		July 30, 2011		Surcharge  Imposed (6)	-Bargaining Agreement
Pension Plan of Local 464A (1)		22-6051600-001	Green	Green	N/A	$	532	$	499	$	481	N/A	June 2016
UFCW Local 1262 & Employers Pension Fund (2), (4)		22-6074414-001	Red	Red	Implemented		3,350		3,463		3,357	No	October 2013
UFCW Regional Pension Plan (3), (4)		16-6062287-074	Red	Red	Implemented		1,164		1,073		1,044	No	December 2014
Total Contributions						$	5,046	$	5,035	$	4,882

(1)	The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2012 and December 31, 2011.
(2)	The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2011 and December 31, 2010.
(3)	The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at September 30, 2012 and September 30, 2011.
(4)	This plan has elected to utilize special amortization provisions provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.  There were no changes to the plan’s zone status as a result of this election.
(5)	The Company’s contributions represent more than 5% of the total contributions received by each applicable pension fund for all periods presented.
(6)	Under the Pension Protection Act, a surcharge may be imposed when employers make contributions under a collective bargaining agreement that is not in compliance with a rehabilitation plan.  As of July 27, 2013, the collective bargaining agreements under which the Company was making contributions were in compliance with rehabilitation plans adopted by each applicable pension fund.

On April 15, 2011, Village, along with all of the other individual employers trading as ShopRite, permanently withdrew from participating in the United Food and Commercial Workers Local 152 Retail Meat Pension Fund (“the Fund”), effective the end of April 2011. The Fund is a multi-employer defined benefit plan that includes other supermarket operators. Village, along with the other affiliated ShopRite operators, determined to withdraw from the Fund due to exposures to market risks associated with all defined benefit plans and the inability to partition ShopRite’s liabilities from those of the other participating supermarket operators. Prior to withdrawal in April 2011, Village contributed $644 to the Fund in fiscal 2011.  Village now provides affected associates with a defined contribution plan for future service, which eliminates market risks and the exposure to shared liabilities of other operators, and is estimated to be less costly than the defined benefit plan in the future, while ensuring that our associates are provided a secure benefit. The Company recorded a pre-tax charge of $7,028 in fiscal 2011 for this withdrawal liability, which represented our estimate of the liability based on calculations provided by the Fund actuary. The Company settled this obligation in January 2012, resulting in a pre-tax benefit of $646 in fiscal 2012.

Other Postretirement Benefit Plans

The Company also contributes to various other multi-employer benefit plans that provide health and welfare benefits to active and retired participants. Total contributions made by the Company to these other multi-employer benefit plans were approximately $22,421, $20,062 and $18,007 in fiscal 2013, 2012 and 2011, respectively.

Defined Contribution Plans

The Company sponsors a 401(k) savings plan for certain eligible associates. Company contributions under that plan, which are based on specified percentages of associate contributions, were $377, $331 and $309 in fiscal 2013, 2012 and 2011, respectively.   The Company also contributes to union sponsored defined contribution plans for certain eligible associates.  Company contributions under these plans were $802, $690 and $539 in fiscal 2013, 2012 and 2011, respectively.

39

NOTE 9 — COMMITMENTS and CONTINGENCIES

Hurricane Sandy devastated our area on October 29, 2012 and resulted in the closure of almost all of our stores for periods of time ranging from a few hours to eight days. Village disposed of substantial amounts of perishable product due to the loss of power, and also incurred repair, labor and other costs in connection with the storm.  The Company has property, casualty and business interruption insurance, subject to deductibles and coverage limits.  During the second quarter of fiscal 2013, Village began the process of working with our insurers to recover the damages and has recorded estimated insurance recoveries.  Final resolution of our insurance claim related to the storm is expected in fiscal 2014, which could have a material impact on our results of operations.

Approximately 91% of our employees are covered by collective bargaining agreements. Contracts with the Company’s seven unions expire between October 2013 and July 2016.  Approximately 49% of our associates are represented by unions whose contracts have already expired or expire within one year.  Any work stoppages could have an adverse impact on our financial results.

The Company is involved in litigation incidental to the normal course of business. Excluding the tax litigation with the State of New Jersey as described in Note 5, Company management is of the opinion that the ultimate resolution of these legal proceedings should not have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company.

40

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Village Super Market, Inc.:

We have audited the accompanying consolidated balance sheets of Village Super Market, Inc. and subsidiaries as of July 27, 2013 and July 28, 2012, and the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for the years ended July 27, 2013, July 28, 2012 and July 30, 2011. We also have audited Village Super Market, Inc.’s internal control over financial reporting as of July 27, 2013, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Village Super Market, Inc.’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Village Super Market, Inc. and subsidiaries as of July 27, 2013 and July 28, 2012, and the results of their operations and their cash flows for the years ended July 27, 2013, July 28, 2012 and July 30, 2011, in conformity with U.S. generally accepted accounting principles. Also in our opinion, Village Super Market, Inc. maintained, in all material respects, effective internal control over financial reporting as of July 27, 2013, based on criteria established in Internal Control – Integrated Framework issued by COSO.

/s/ KPMG LLP

Short Hills, New Jersey

October 8, 2013

41

ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.   CONTROLS AND PROCEDURES

As required by Rule 13a-15 of the Exchange Act, the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures at the end of the period covered by this report.  This evaluation was carried out under the supervision, and with the participation, of the Company’s management, including the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer.  Based upon that evaluation, the Company’s Chief Executive Officer, along with the Company’s Chief Financial Officer, concluded that the Company’s disclosure controls and procedures are effective.  

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in Company reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Company reports filed under the Exchange Act is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. With the participation of the Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework and criteria established in Internal Control - Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management has concluded that the Company’s internal control over financial reporting was effective as of July 27, 2013.

The Company’s independent registered public accounting firm has audited the accompanying consolidated financial statements and the Company’s internal control over financial reporting, as stated in their report, which is included in Item 8 of this Form 10-K.
 

James Sumas	Kevin R. Begley
Chairman of the Board and	Chief Financial Officer
Chief Executive Officer

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no changes in internal controls over financial reporting during the fourth quarter of fiscal 2013 that have materially, or are reasonably likely to materially effect, the Company’s internal control over financial reporting.

42

PART III

ITEM 10.   DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item 10 is incorporated by reference from the Company's definitive Proxy Statement to be filed on or before October 28, 2013, in connection with its Annual Meeting scheduled to be held on December 13, 2013.

 ITEM 11.    EXECUTIVE COMPENSATION

The information required by this Item 11 is incorporated by reference from the Company's definitive Proxy Statement to be filed on or before October 28, 2013, in connection with its Annual Meeting scheduled to be held on December 13, 2013.

ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information in the table below is as of July 27, 2013.  All data relates to the Village Super Market, Inc. 1997 Stock Option Plan, 2004 Stock Plan and 2010 Stock Plan as described in Item 8 of this Form 10-K.

Plan category	Number of securities to be  issued upon exercise of outstanding options		Weighted-average  exercise price  of outstanding  options		Number of securities  remaining available  for future issuance under equity compensation plans  (excluding securities  reflected in column (a))
	(a)		(b)		(c)
Equity compensation plans approved by security holders		380,103	$	24.91		868,465
Equity compensation plans not approved by security holders	__		__		___

Additional information required by this Item 12 is incorporated by reference from the Company's definitive Proxy Statement to be filed on or before October 28, 2013, in connection with its annual meeting scheduled to be held on December 13, 2013.

ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this Item 13 is incorporated by reference from the Company's definitive Proxy Statement to be filed on or before October 28, 2013, in connection with its annual meeting scheduled to be held on December 13, 2013.

ITEM 14.   PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this Item 14 is incorporated by reference from the Company’s definitive Proxy Statement to be filed on or before October 28, 2013, in connection with its annual meeting scheduled to be held on December 13, 2013.

43

PART IV

ITEM 15.    EXHIBITS, FINANCIAL STATEMENTS SCHEDULES

(a)(1)	Financial Statements:
	Consolidated Balance Sheets –July 27, 2013 and July 28, 2012
	Consolidated Statements of Operations - years ended July 27, 2013, July 28, 2012 and July 30, 2011
	Consolidated Statements of Comprehensive Income - years ended July 27, 2013, July 28, 2012 and July 30, 2011
	Consolidated Statements of Shareholders' Equity – years ended July 27, 2013, July 28, 2012 and July 30, 2011
	Consolidated Statements of Cash Flows - years ended July 27, 2013, July 28, 2012 and July 30, 2011
	Notes to consolidated financial statements
	Report of Independent Registered Public Accounting Firm

(a)(2)	Financial Statement Schedules:
	All schedules are omitted because they are not applicable, or not required, or because the required information is included in the consolidated financial statements or the notes hereto.

(a)(3)	Exhibits
3.1	Certificate of Incorporation*
3.2	By-laws*
4.6	Loan Agreement dated September 16, 1999*
4.7	First Amendment to Loan Agreement*
4.8	Second Amendment to Loan Agreement*
10.1	Wakefern By-Laws*
10.2	Stockholders Agreement dated February 20, 1992  between the Company and Wakefern Food Corp.*
10.6	Employment Agreement dated May 28, 2004*
10.7	Supplemental Executive Retirement Plan*
10.8	2004 Stock Plan*
10.9	2010 Stock Plan*
14	Code of Ethics
21	Subsidiaries of Registrant
23	Consent of KPMG LLP
31.1	Certification
31.2	Certification
32.1	Certification (furnished, not filed)
32.2	Certification (furnished, not filed)
101 INS	XBRL Instance Document**
101 SCH	XBRL Schema Document**
101 CAL	XBRL Calculation Linkbase Document**
101 DEF	XBRL Definition Linkbase Document**
101 LAB	XBRL Labels Linkbase Document**
101 PRE	XBRL Presentation Linkbase Document**
**	The XBRL related information in Exhibit 101 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except

* The following exhibits are incorporated by reference from the following previous filings:

Form 10-Q for January 2013: 10.1

Form 10-Q for January 2009: 4.8

Form 10-K for 2004: 3.2, 4.7, 10.7

DEF 14A proxy statement filed October 25, 2004: 10.8

Form 10-Q for April 2004: 10.6

Form 10-K for 1999: 4.6

Form 10-K for 1993: 3.1 and 10.2

DEF 14A Proxy Statement filed November 1, 2010: 10.9

44

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	VILLAGE SUPER MARKET, INC.
By:	/s/ James Sumas	/s/ Kevin Begley
	James Sumas	Kevin Begley
	Chief Executive Officer and	Chief Financial Officer
	Chairman of the Board

Date: October 8, 2013           

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on dates indicated:

/s/ James Sumas	/s/ Stephen Rooney
James Sumas, Director	Stephen Rooney, Director
October 8, 2013	October 8, 2013
/s/ Robert Sumas	/s/ William Sumas
Robert Sumas, Director	William Sumas, Director
October 8, 2013	October 8, 2013
/s/ John P. Sumas	/s/ Peter Lavoy
John P. Sumas, Director	Peter Lavoy, Director
October 8, 2013	October 8, 2013
/s/ David C. Judge	/s/ Steven Crystal
David C. Judge, Director	Steven Crystal, Director
October 8, 2013	October 8, 2013
/s/ John J. Sumas	/s/ Nicholas J. Sumas
John J. Sumas, Director	Nicholas J. Sumas, Director
October 8, 2013	October 8, 2013
/s/ Kevin Begley	/s/ John L. Van Orden
Kevin Begley, Chief Financial Officer &	John L. Van Orden, Controller
Director (Principal Financial Officer)	(Principal Accounting Officer)
October 8, 2013	October 8, 2013

45

EX-14

Exhibit 14

VILLAGE SUPER MARKET, INC .

CODE OF ETHICS

In my role as a Director of Village Super Market, Inc., I recognize that I hold an important and elevated role in corporate governance. I am uniquely capable and empowered to ensure that stakeholders’ interests are appropriately balanced, protected and preserved. Accordingly, this Code provides principles to which I am expected to adhere and advocate. The Code embodies rules regarding individual and peer responsibilities, as well as responsibilities to the company, the public and other stakeholders.

I certify to you that I adhere to and advocate the following principles and responsibilities governing my professional and ethical conduct.

To the best of my knowledge and ability:

1.	I act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationships.
2.	I provide constituents with information that is accurate, complete, objective, relevant, timely and understandable.
3.	I comply with rules and regulations of federal, state, provincial and local governments, and other appropriate private and public regulatory agencies.
4.	I act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing my independent judgment to be subordinated.
5.	I respect the confidentiality of information acquired in the course of my work except when authorized or otherwise legally obligated to disclose. Confidential information acquired in the course of my work is not used for personal advantage.
6.	I share knowledge and maintain skills important and relevant to my constituents’ needs.
7.	I proactively promote ethical behavior as a responsible partner among peers in my work environment and community.
8.	I achieve responsible use of and control over all assets and resources employed or entrusted to me.
9.	In addition, I comply with all aspects of the Village Super Market, Inc. Code of Conduct.
10.	I also agree that, if I should become aware of any violation of law or of this code by the Company or anyone acting on behalf of the Company, it is my responsibility to report the violation promptly to the Company's Chief Financial Officer, General Counsel, Chief Executive Officer or the Audit Committee whistleblower hotline, as appropriate. I understand that although the Company seeks to address any such matters internally, nothing in this Code prevents me from reporting any illegal activity to the appropriate legal authority. I also understand that the Company will not discriminate or retaliate against me if I in good faith report such violation, and that I will not discriminate or retaliate against other employees who report violations. Further, I understand that this Code does not prohibit me from testifying or otherwise participating in any proceeding or investigation that may follow.
11.	I acknowledge that violations of this code may subject me to disciplinary action, which could include termination.

EX-21

Exhibit 21

SUBSIDIARIES OF REGISTRANT

The Company has four wholly-owned subsidiaries at July 27, 2013. Village Super Market of PA, Inc. is organized under the laws of Pennsylvania. Village Super Market of NJ, LP and Hanover and Horsehill Development, LLC are organized under the laws of New Jersey. Village Super Market of Maryland, LLC is organized under the laws of Maryland.

The financial statements of all subsidiaries are included in the Company’s consolidated financial statements.

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Village Super Market, Inc.:

We consent to the incorporation by reference in the Registration Statements (No. 2-86320, No. 333-172673 and No. 333-57315) on Form S-8 of Village Super Market, Inc. of our report dated October 8, 2013, with respect to the consolidated balance sheets of Village Super Market, Inc. and subsidiaries as of July 27, 2013 and July 28, 2012, and the related consolidated statements of operations, comprehensive income, shareholders' equity, and cash flows for the years ended July 27, 2013, July 28, 2012 and July 30, 2011, and the effectiveness of internal control over financial reporting as of July 27, 2013, which report appears in the July 27, 2013 annual report on Form 10-K of Village Super Market, Inc.

/s/ KPMG LLP

Short Hills, New Jersey

October 8, 2013

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, James Sumas, certify that:

1.   I have reviewed this annual report on Form 10-K of Village Super Market, Inc.

2.  Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ James Sumas

James Sumas

Chief Executive Officer and

Chairman of the Board

October 8, 2013

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Kevin Begley, certify that:

1.   I have reviewed this annual report on Form 10-K of Village Super Market, Inc.

2.  Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Kevin Begley

Kevin Begley

Chief Financial Officer

October 8, 2013

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Village Super Market, Inc. (the “Company”) on Form 10-K for the period ended July 27, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James Sumas certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James Sumas

James Sumas

Chief Executive Officer and

Chairman of the Board

October 8, 2013

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Village Super Market, Inc. (the “Company”) on Form 10-K for the period ended July 27, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin Begley certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Kevin Begley

Kevin Begley

Chief Financial Officer

October 8, 2013

XML

Note 8 - Pension Plans: Schedule of Amounts Recognized in Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Details
Pension liabilities	$ (20,062)	$ (29,763)
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax	$ 8,467	$ 15,474

XML

Note 6 - Leases: Schedule of Future Minimum Lease Payments for Capital Leases (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013
Details
Capital Leases, Future Minimum Payments Due, Next Twelve Months	$ 4,285
Operating Leases, Future Minimum Payments Due, Next Twelve Months	11,204
Capital Leases, Future Minimum Payments, Due in Rolling Year Two	4,476
Operating Leases, Future Minimum Payments, Due in Rolling Year Two	10,904
Capital Leases, Future Minimum Payments, Due in Rolling Year Three	4,491
Operating Leases, Future Minimum Payments, Due in Rolling Year Three	9,610
Capital Leases, Future Minimum Payments, Due in Rolling Year Four	4,491
Operating Leases, Future Minimum Payments, Due in Rolling Year Four	6,928
Capital Leases, Future Minimum Payments, Due in Rolling Year Five	4,576
Operating Leases, Future Minimum Payments, Due in Rolling Year Five	5,793
Capital Leases, Future Minimum Payments Due Thereafter	79,631
Operating Leases, Future Minimum Payments, Due Thereafter	43,552
Capital Leases, Future Minimum Payments Due	101,950
Operating Leases, Future Minimum Payments Due	87,991
Capital Leases, Future Minimum Payments, Interest Included in Payments	60,921
Capital and financing lease obligations	10
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments	$ 41,019

XML

Note 6 - Leases (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2010
Details
Rent Paid To Related Parties	$ 640	$ 640	$ 615
Rent Paid To Related Partnership	834	801	764
Proceeds from partnerships	1,980
Income from partnerships	(1,450)
Rent Paid To Wakefern Under Sublease Agreement	$ 1,237

XML

Note 8 - Pension Plans: Schedule of Expected Benefit Payments (Details) (USD $) In Thousands, unless otherwise specified	Jul. 31, 2018	Jul. 27, 2013
Details
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months		$ 1,027
Defined Benefit Plan, Expected Future Benefit Payments, Year Two		3,774
Defined Benefit Plan, Expected Future Benefit Payments, Year Three		1,400
Defined Benefit Plan, Expected Future Benefit Payments, Year Four		1,572
Defined Benefit Plan, Expected Future Benefit Payments, Year Five		9,673
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter	$ 13,867

XML

Note 9 - Commitments and Contingencies

12 Months Ended

Jul. 27, 2013

Notes

Note 9 - Commitments and Contingencies

NOTE 9 — COMMITMENTS and CONTINGENCIES

Hurricane Sandy devastated our area on October 29, 2012 and resulted in the closure of almost all of our stores for periods of time ranging from a few hours to eight days. Village disposed of substantial amounts of perishable product due to the loss of power, and also incurred repair, labor and other costs in connection with the storm.  The Company has property, casualty and business interruption insurance, subject to deductibles and coverage limits.  During the second quarter of fiscal 2013, Village began the process of working with our insurers to recover the damages and has recorded estimated insurance recoveries.  Final resolution of our insurance claim related to the storm is expected in fiscal 2014, which could have a material impact on our results of operations.

Approximately 91% of our employees are covered by collective bargaining agreements. Contracts with the Company’s seven unions expire between October 2013 and July 2016.  Approximately 49% of our associates are represented by unions whose contracts have already expired or expire within one year.  Any work stoppages could have an adverse impact on our financial results.

The Company is involved in litigation incidental to the normal course of business. Excluding the tax litigation with the State of New Jersey as described in Note 5, Company management is of the opinion that the ultimate resolution of these legal proceedings should not have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company.

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Note 8 - Pension Plans: Schedule of Amounts Recognized in Balance Sheet (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Amounts Recognized in Balance Sheet

Amounts recognized in the consolidated balance sheets:
Pension liabilities	$                    (20,062)	$                    (29,763)
Accumulated other comprehensive loss, net of income taxes	8,467	15,474

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Revenue
Sales	$ 1,476,457	$ 1,422,243	$ 1,298,928
Cost of sales	1,078,696	1,033,416	948,769
Gross profit	397,761	388,827	350,159
Operating and administrative expense	333,230	313,516	293,222
Depreciation and amortization	20,354	19,759	18,621
Operating income	44,177	55,552	38,316
Income from partnerships	1,450
Interest expense	(3,771)	(4,415)	(4,280)
Interest income	2,783	2,571	2,207
Income before income taxes	44,639	53,708	36,243
Income taxes	18,855	22,263	15,261
Net income	$ 25,784	$ 31,445	$ 20,982
Class A Common Stock
Revenue
Basic net income per share	$ 2.18	$ 2.74	$ 1.86
Diluted net income per share	$ 1.85	$ 2.28	$ 1.54
Class B Common Stock
Revenue
Basic net income per share	$ 1.36	$ 1.78	$ 1.21
Diluted net income per share	$ 1.36	$ 1.77	$ 1.21

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Note 2 - Property, Equipment and Fixtures

12 Months Ended

Jul. 27, 2013

Notes

Note 2 - Property, Equipment and Fixtures

NOTE 2 — PROPERTY, EQUIPMENT and FIXTURES

Property, equipment and fixtures are comprised as follows:

	July 27, 2013	July 28, 2012
Land and buildings	$                      78,786	$                      78,946
Store fixtures and equipment	190,957	178,589
Leasehold improvements	82,523	79,429
Leased property under capital leases	21,686	21,686
Construction in progress	12,231	4,053
Vehicles	2,581	2,342
Total property, equipment and fixtures	388,764	365,045
Accumulated depreciation	(207,161)	(188,722)
Accumulated amortization of property under capital leases	(4,622)	(3,903)
Property, equipment and fixtures, net	$                    176,981	$                    172,420

Amortization of leased property under capital and financing leases is included in depreciation and amortization expense.

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Note 1 - Summary of Significant Accounting Policies: Merchandise Inventories (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Merchandise Inventories

Merchandise inventories

Approximately 65% of merchandise inventories are stated at the lower of LIFO (last-in, first-out) cost or market. If the FIFO (first-in, first-out) method had been used, inventories would have been $14,786 and $14,842 higher than reported in fiscal 2013 and 2012, respectively. All other inventories are stated at the lower of FIFO cost or market.

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Note 2 - Property, Equipment and Fixtures: Property, Plant and Equipment (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Details
Land and Buildings	$ 78,786	$ 78,946
Fixtures and Equipment, Gross	190,957	178,589
Leasehold Improvements, Gross	82,523	79,429
Capital Leased Assets, Gross	21,686	21,686
Construction in Progress, Gross	12,231	4,053
Vehicles	2,581	2,342
Property, Plant and Equipment, Gross	388,764	365,045
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Excluding Capital Leased Assets	(207,161)	(188,722)
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	(4,622)	(3,903)
Property, equipment and fixtures, net	$ 176,981	$ 172,420

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Note 8 - Pension Plans: Schedule of Assumptions Used (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Assumptions Used

	2013	2012	2011
Assumed discount rate — net periodic pension cost	3.59%	4.99%	5.19%
Assumed discount rate — benefit obligation	4.43%	3.59%	4.99%
Assumed rate of increase in compensation levels	4 - 4.5 %	4 - 4.5 %	4 - 4.5 %
Expected rate of return on plan assets	7.50%	7.50%	7.50%

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Note 1 - Summary of Significant Accounting Policies: Nature of Operations (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Nature of Operations

Nature of operations

Village Super Market, Inc. (the “Company” or “Village”) operates a chain of 29 ShopRite supermarkets in New Jersey, eastern Pennsylvania and Maryland. On January 29, 2012, Village acquired store fixtures, leasehold interests and other assets of the ShopRite in Old Bridge, NJ for $3,250 plus inventory and other working capital for $1,116.  In July 2011, Village acquired the store fixtures, leases and other assets of two locations in Maryland for $6,595 from SuperFresh.  These stores opened as ShopRites on July 28, 2011 after remodeling.  The Company is a member of Wakefern Food Corporation (“Wakefern”), the largest retailer-owned food cooperative in the United States. 

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Note 8 - Pension Plans: Schedule of Amounts Recognized In Plan Assets and Benefit Obligations Recognized (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Details
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax	$ 14,111	$ 25,783
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax		8
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax	$ 14,111	$ 25,791

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Note 7 - Shareholders' Equity: Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity

	2013		2012		2011
	Shares	Weighted-average exercise price	Shares	Weighted-average exercise price	Shares	Weighted-average exercise price
Outstanding at beginning of year	474	$                24.03	555	$                23.34	404	$                19.56
Granted	8	33.91	-	-	218	27.51
Exercised	(86)	20.19	(69)	19.50	(59)	12.32
Forfeited	(16)	28.86	(12)	18.40	(8)	27.58
Outstanding at end of year	380	$                24.91	474	$                24.03	555	$                23.34
Options exercisable at end of year	169	$                21.50	234	$                20.48	297	$                19.82

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Note 7 - Shareholders' Equity: Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	474	555	404
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 24.03	$ 23.34	$ 19.56
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	8		218
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 33.91		$ 27.51
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 20.19	$ 19.50	$ 12.32
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(16)	(12)	(8)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 28.86	$ 18.40	$ 27.58
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	380	474	555
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$ 24.91	$ 24.03	$ 23.34
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	169	234	297
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 21.50	$ 20.48	$ 19.82
Treasury Stock
Exercise of stock options - shares	(86)	(69)	(59)

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Note 8 - Pension Plans: Schedule of Allocation of Plan Assets (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Allocation of Plan Assets

	July 27, 2013	July 28, 2012
Asset Category
Cash	$                        1,747	$                           607
Equity securities:
Company stock	837	804
U.S large cap (1)	16,385	13,488
U.S. small/mid cap (2)	6,762	5,438
International (3)	4,580	3,697
Emerging markets (4)	1,074	1,010
Fixed income securities:
U.S treasuries (5)	7,966	7,657
Mortgage-backed (5)	1,877	1,952
Corporate bonds (5)	1,766	2,763
Emerging markets (6)	588	-
Total	$                      43,582	$                      37,416

(1)                 Includes directly owned securities and mutual funds, primarily low-cost equity index funds not actively managed that track the S&P 500.

(2)                 Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded U.S. common stocks of small and medium cap companies.

(3)                 Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded common stocks of large, non-U.S. companies.

(4)                 Consists of mutual and exchange traded funds which invest in non-U.S. stocks in emerging markets.

(5)                 Includes directly owned securities, mutual funds and exchange traded funds.

(6)                 Consists of exchange traded funds which invest in non-U.S. bonds in emerging markets.

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Note 1 - Summary of Significant Accounting Policies: Pension and Other Postretirement Plans, Pensions, Policy (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Pension and Other Postretirement Plans, Pensions, Policy

Benefit plans

The Company recognizes the funded status of its Company sponsored retirement plans on the consolidated balance sheet. Actuarial gains or losses, prior service costs or credits and transition obligations not previously recognized are recorded as a component of Accumulated Other Comprehensive Income (Loss).

The Company also contributes to several multi-employer pension plans under the terms of collective bargaining agreements that cover certain union-represented employees.  Pension expense for these plans is recognized as contributions are made.

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Note 1 - Summary of Significant Accounting Policies: Investments (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Investments

Investments

The Company’s investments in its principal supplier, Wakefern, and a Wakefern affiliate, Insure-Rite, Ltd., are stated at cost (see Note 3). Village evaluates its investments in Wakefern and Insure-Rite, Ltd. for impairment through consideration of previous, current and projected levels of profit of those entities.

The Company’s 20%-50% investments in certain real estate partnerships are accounted for under the equity method. One of these partnerships is a variable interest entity which does not require consolidation as Village is not the primary beneficiary (see Note 6).

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Note 1 - Summary of Significant Accounting Policies: Property, Equipment and Fixtures (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Property, Equipment and Fixtures

Property, equipment and fixtures

Property, equipment and fixtures are recorded at cost. Interest cost incurred to finance construction is capitalized as part of the cost of the asset. Maintenance and repairs are expensed as incurred.

Depreciation is provided on a straight-line basis over estimated useful lives of thirty years for buildings, ten years for store fixtures and equipment, and three years for vehicles. Leasehold improvements are amortized over the shorter of the related lease terms or the estimated useful lives of the related assets.

When assets are sold or retired, their cost and accumulated depreciation are removed from the accounts, and any gain or loss is reflected in the consolidated financial statements.

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Note 6 - Leases: Schedule of Future Minimum Lease Payments for Capital Leases (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Future Minimum Lease Payments for Capital Leases

	Capital and financing leases	Operating Leases
2014	$                        4,285	$                      11,204
2015	4,476	10,904
2016	4,491	9,610
2017	4,491	6,928
2018	4,576	5,793
Thereafter	79,631	43,552
Minimum lease payments	101,950	$                      87,991
Less amount representing interest	60,921
Present value of minimum lease payments	41,029
Less current portion	10
	$                      41,019

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Note 1 - Summary of Significant Accounting Policies: Long-lived Assets (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Long-lived Assets

Long-lived assets

The Company reviews long-lived assets, such as property, equipment and fixtures on an individual store basis for impairment when circumstances indicate the carrying amount of an asset group may not be recoverable. Such review analyzes the undiscounted estimated future cash flows from such assets to determine if the carrying value of such assets are recoverable from their respective cash flows. If impairment is indicated, it is measured by comparing the fair value of the long-lived assets to their carrying value.

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Note 2 - Property, Equipment and Fixtures: Property, Plant and Equipment (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Property, Plant and Equipment

	July 27, 2013	July 28, 2012
Land and buildings	$                      78,786	$                      78,946
Store fixtures and equipment	190,957	178,589
Leasehold improvements	82,523	79,429
Leased property under capital leases	21,686	21,686
Construction in progress	12,231	4,053
Vehicles	2,581	2,342
Total property, equipment and fixtures	388,764	365,045
Accumulated depreciation	(207,161)	(188,722)
Accumulated amortization of property under capital leases	(4,622)	(3,903)
Property, equipment and fixtures, net	$                    176,981	$                    172,420

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Note 7 - Shareholders' Equity: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

	2013		2011
Expected life (years)	5.0		5.0
Expected volatility	33.0	%	32.2	%
Expected dividend yield	3.0	%	3.6	%
Risk-free interest rate	0.8	%	2.0	%

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Note 1 - Summary of Significant Accounting Policies: Income Taxes (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Income Taxes

Income taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.

The Company recognizes a tax benefit for uncertain tax positions if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority having full knowledge of all relevant information.

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Note 1 - Summary of Significant Accounting Policies: Goodwill (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 28, 2012
Details
Goodwill, Acquired During Period	$ 1,452

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Note 5 - Income Taxes: Deferred Income Tax Assets And Liabilities Included on Consolidated Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Details
Deferred Tax Assets, Net, Current	$ 5,053	$ 4,154
Deferred Tax Assets, Net, Noncurrent	1,211	1,644
Deferred Tax Liabilities, Net, Current	(838)	(714)
Deferred Tax Liabilities, Net, Noncurrent	$ (2,040)	$ (525)

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Note 1 - Summary of Significant Accounting Policies: Advertising (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Advertising Expense	$ 11,018	$ 10,952	$ 9,294

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Note 5 - Income Taxes: Deferred Income Tax Assets And Liabilities Included on Consolidated Balance Sheet (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Deferred Income Tax Assets And Liabilities Included on Consolidated Balance Sheet

	2013	2012
Other current assets	$                            5,053	$                            4,154
Other assets	1,211	1,644
Accounts payable and accrued expenses	(838)	(714)
Other liabilities	(2,040)	(525)

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Note 4 - Debt (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Details
Line of Credit Facility, Maximum Borrowing Capacity	$ 25,000
Line Of Credit Facility Amount Outstanding	0	0
Line Of Credit Facility Capacity Available For Specific Purpose Other Than Trade Purchases	3,000
LettersOfCreditOutstandingAmount	2,461
Net Worth Available For The Payment Of Dividends	$ 138,104

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Note 8 - Pension Plans: Schedule of Multiemployer Plans (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
PensionPlanOfLocal464AMember
Entity Tax Identification Number	226051600
Multiemployer Plans, Certified Zone Status		Green	Green
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan	NA
Multiemployer Plans, Plan Contributions	$ 532	$ 499	$ 481
Multiemployer Plans, Surcharge	NA
Multiemployer Plans, Collective-Bargaining Arrangement, Description	June 2016
UFCWLocal1262EmployersPensionFundMember1Member
Entity Tax Identification Number	226074414
Multiemployer Plans, Certified Zone Status		Red	Red
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan	Implemented
Multiemployer Plans, Plan Contributions	3,350	3,463	3,357
Multiemployer Plans, Surcharge	No
Multiemployer Plans, Collective-Bargaining Arrangement, Description	October 2013
UFCWRegionalPensionPlanMember
Entity Tax Identification Number	166062287
Multiemployer Plans, Certified Zone Status		Red	Red
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan	Implemented
Multiemployer Plans, Plan Contributions	1,164	1,073	1,044
Multiemployer Plans, Surcharge	No
Multiemployer Plans, Collective-Bargaining Arrangement, Description	December 2014
TotalContributionsMember
Multiemployer Plans, Plan Contributions	$ 5,046	$ 5,035	$ 4,882

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Note 9 - Commitments and Contingencies (Details)	12 Months Ended
	Jul. 27, 2013
Workforce Subject to Collective Bargaining Arrangements
Employees Covered By Collective Bargaining Agreement	91.00%
Workforce Subject to Collective Bargaining Arrangements Expiring within One Year
Associates Represented By Unions	49.00%

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Note 1 - Summary of Significant Accounting Policies: Vendor Allowances and Rebates (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Vendor Allowances and Rebates

Vendor allowances and rebates

The Company receives vendor allowances and rebates, including the patronage dividend and amounts received as a pass through from Wakefern, related to the Company’s buying and merchandising activities. Vendor allowances and rebates are recognized as a reduction in cost of sales when the related merchandise is sold or when the required contractual terms are completed.

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (USD $) In Thousands	Class A Common Stock	Class B Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock	Total
Balance at Jul. 31, 2010	$ 32,434	$ 1,035	$ 185,790	$ (10,421)	$ (3,063)	$ 205,775
Balance - Shares at Jul. 31, 2010	7,541	6,376			513
Net income			20,982			20,982
Other comprehensive loss, net of tax				(721)		(721)	[1]
Dividends			(19,086)			(19,086)
Exercise of stock options	300				427	727
Exercise of stock options - shares					(59)
Treasury stock purchases					(2,171)	(2,171)
Treasury stock purchases - shares					76
Share-based compensation expense	3,007					3,007
Share-based compensation expense - shares	292
Net tax deficit from exercise of stock options and restricted share vesting	(356)					(356)
Balance at Jul. 30, 2011	35,385	1,035	187,686	(11,142)	(4,807)	208,157
Balance - Shares at Jul. 30, 2011	7,833	6,376			530
Net income			31,445			31,445
Other comprehensive loss, net of tax				(4,332)		(4,332)	[2]
Dividends			(9,758)			(9,758)
Exercise of stock options	723				630	1,353
Exercise of stock options - shares					(69)
Treasury stock purchases					(9)	(9)
Share-based compensation expense	3,180					3,180
Share-based compensation expense - shares	9
Excess tax benefit related to share-based compensation	275					275
Conversion of Class B shares to Class A shares	7	(7)
Conversion of Class B shares to Class A shares - shares	41	(41)
Balance at Jul. 28, 2012	39,570	1,028	209,373	(15,474)	(4,186)	230,311
Balance - Shares at Jul. 28, 2012	7,883	6,335			461
Net income			25,784			25,784
Other comprehensive loss, net of tax				7,007		7,007	[3]
Dividends			(24,048)			(24,048)
Exercise of stock options	957				785	1,742
Exercise of stock options - shares					(86)
Share-based compensation expense	3,222					3,222
Share-based compensation expense - shares	2
Excess tax benefit related to share-based compensation	542					542
Conversion of Class B shares to Class A shares	252	(252)
Conversion of Class B shares to Class A shares - shares	1,555	(1,555)
Balance at Jul. 27, 2013	$ 44,543	$ 776	$ 211,109	$ (8,467)	$ (3,401)	$ 244,560
Balance - Shares at Jul. 27, 2013	9,440	4,780			375

[1] Net of tax of $480

[2] Net of tax of $2,910

[3] Net of tax of $4,672

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 25,784	$ 31,445	$ 20,982
Depreciation and amortization	20,354	19,759	18,621
Non-cash share-based compensation	3,222	3,180	3,007
Deferred taxes	(3,499)	1,089	(1,543)
Provision to value inventories at LIFO	(56)	601	412
Income from partnerships	(1,450)
Change in merchandise inventories	(860)	(1,423)	(2,703)
Change in patronage dividend receivable	(1,036)	(1,756)	(260)
Change in accounts payable to Wakefern	4,024	32	8,321
Change in accounts payable and accrued expenses	(1,778)	643	2,408
Change in accrued wages and benefits	1,908	(6,415)	7,269
Change in income taxes payable	4,147	(2,745)	2,268
Change in other assets and liabilities	513	(978)	5,362
Net cash provided by operating activities	51,273	43,432	64,144
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(21,888)	(16,729)	(13,346)
Maturity of (investment in) note receivable from Wakefern	(1,503)	(1,406)	(1,308)
Store acquisitions		(4,123)	(6,595)
Proceeds from partnerships	1,980
Net cash used in investing activities	(21,411)	(22,258)	(21,249)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	1,742	1,353	727
Excess tax benefit related to share-based compensation	542	275	703
Principal payments of long-term debt	(1,630)	(1,294)	(749)
Dividends	(24,048)	(9,758)	(19,086)
Treasury stock purchases		(9)	(2,171)
Net cash used in financing activities	(23,394)	(9,433)	(20,576)
NET INCREASE IN CASH AND CASH EQUIVALENTS	6,468	11,741	22,319
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	103,103	91,362	69,043
CASH AND CASH EQUIVALENTS, END OF YEAR	109,571	103,103	91,362
SUPPLEMENTAL DISCLOSURES OF CASH PAYMENTS MADE FOR:
Cash payments for interest	4,012	4,116	4,280
Cash payments for income taxes	17,665	23,076	12,095
Non-cash investment in Wakefern		$ 323	$ 1,550

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Note 3 - Related Party Information - Wakefern

12 Months Ended

Jul. 27, 2013

Notes

Note 3 - Related Party Information - Wakefern

NOTE 3 — RELATED PARTY INFORMATION - WAKEFERN

The Company’s ownership interest in its principal supplier, Wakefern, which is operated on a cooperative basis for its stockholder members, is 13.7% of the outstanding shares of Wakefern at July 27, 2013. The investment is pledged as collateral for any obligations to Wakefern. In addition, all obligations to Wakefern are personally guaranteed by certain shareholders of Village.

The Company is obligated to purchase 85% of its primary merchandise requirements from Wakefern until ten years from the date that stockholders representing 75% of Wakefern sales notify Wakefern that those stockholders request that the Wakefern Stockholder Agreement be terminated. If this purchase obligation is not met, Village is required to pay Wakefern’s profit contribution shortfall attributable to this failure. Similar payments are due if Wakefern loses volume by reason of the sale of Company stores or a merger with another entity. Village fulfilled the above obligation in fiscal 2013, 2012 and 2011. The Company also has an investment of approximately 8.1% in Insure-Rite, Ltd., a Wakefern affiliated company, that provides Village with liability and property insurance coverage.

Wakefern has increased from time to time the required investment in its common stock for each supermarket owned by a member, with the exact amount per store computed based on the amount of each store’s purchases from Wakefern. At July 27, 2013, the Company’s indebtedness to Wakefern for the outstanding amount of these stock subscriptions was $2,319. Installment payments are due as follows:  2014 - $600; 2015 - $667; 2016 - $518; 2017 - $446; 2018 - $88and none thereafter. The maximum per store investment, which is currently $825, increased by $25 in both fiscal 2013 and 2012, resulting in additional investments of $949 and $622, respectively. Village receives additional shares of common stock to the extent paid for at the end of each fiscal year (September 30) of Wakefern calculated at the then book value of such shares. The payments, together with any stock issued thereunder, at the option of Wakefern, may be null and void and all payments on this subscription shall become the property of Wakefern in the event the Company does not complete the payment of this subscription in a timely manner.

Village purchases substantially all of its merchandise from Wakefern. Wakefern distributes as a “patronage dividend” to each member a share of substantially all of its earnings in proportion to the dollar volume of purchases by the member from Wakefern during the year. Patronage dividends and other vendor allowances and rebates amounted to $24,779, $23,953 and $17,724 in fiscal 2013, 2012 and 2011, respectively.

Wakefern provides the Company with support services in numerous areas including advertising, supplies, liability and property insurance, technology support and other store services. Village incurred charges of $29,973, $27,991 and $23,453, from Wakefern in fiscal 2013, 2012 and 2011, respectively, for these services, which are reflected in operating and administrative expense in the consolidated statements of operations. Additionally, the Company has certain related party leases (see Note 6) with Wakefern.

At July 27, 2013, the Company had a $22,421 note receivable due from Wakefern earning a fixed rate of 7%. Previously, this 15-month note was automatically extended for additional, recurring 90-day periods, unless, not later than one year prior to the due date, the Company notified Wakefern requesting payment on the due date. Wakefern has the right to prepay this note at any time and notified the Company that they intend to prepay the note on February 15, 2014.  

At July 27, 2013, the Company had demand deposits invested at Wakefern in the amount of $85,222. These deposits earn overnight money market rates.

Interest income earned on investments with Wakefern was $2,783, $2,571 and $2,207, in fiscal 2013, 2012 and 2011, respectively.

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Note 5 - Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Deferred Tax Assets, Valuation Allowance	$ 0	$ 0
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	11,466	9,682
Unrecognized Tax Benefits, Interest on Income Taxes Expense	1,211	1,008	817
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	$ 5,820	$ 4,609

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Note 1 - Summary of Significant Accounting Policies

12 Months Ended

Jul. 27, 2013

Notes

Note 1 - Summary of Significant Accounting Policies

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of operations

Village Super Market, Inc. (the “Company” or “Village”) operates a chain of 29 ShopRite supermarkets in New Jersey, eastern Pennsylvania and Maryland. On January 29, 2012, Village acquired store fixtures, leasehold interests and other assets of the ShopRite in Old Bridge, NJ for $3,250 plus inventory and other working capital for $1,116.  In July 2011, Village acquired the store fixtures, leases and other assets of two locations in Maryland for $6,595 from SuperFresh.  These stores opened as ShopRites on July 28, 2011 after remodeling.  The Company is a member of Wakefern Food Corporation (“Wakefern”), the largest retailer-owned food cooperative in the United States. 

Principles of consolidation

The consolidated financial statements include the accounts of Village Super Market, Inc. and its subsidiaries, which are wholly owned. Intercompany balances and transactions have been eliminated.

Fiscal year

The Company and its subsidiaries utilize a 52-53 week fiscal year ending on the last Saturday in the month of July. Fiscal 2013, 2012 and 2011 contain 52 weeks.

Industry segment 

The Company consists of one operating segment, the retail sale of food and nonfood products.

Revenue recognition

Merchandise sales are recognized at the point of sale to the customer. Sales tax is excluded from revenue. Discounts provided to customers through ShopRite coupons and loyalty programs are recognized as a reduction of sales as the products are sold.

Cash and cash equivalents

The Company considers all highly liquid investments purchased with a maturity of three months or less and proceeds due from credit and debit card transactions with settlement terms of less than five days to be cash equivalents. Included in cash and cash equivalents at July 27, 2013 and July 28, 2012 are $85,222 and $82,294, respectively, of demand deposits invested at Wakefern at overnight money market rates.

Merchandise inventories

Approximately 65% of merchandise inventories are stated at the lower of LIFO (last-in, first-out) cost or market. If the FIFO (first-in, first-out) method had been used, inventories would have been $14,786 and $14,842 higher than reported in fiscal 2013 and 2012, respectively. All other inventories are stated at the lower of FIFO cost or market.

Vendor allowances and rebates

The Company receives vendor allowances and rebates, including the patronage dividend and amounts received as a pass through from Wakefern, related to the Company’s buying and merchandising activities. Vendor allowances and rebates are recognized as a reduction in cost of sales when the related merchandise is sold or when the required contractual terms are completed.

Property, equipment and fixtures

Property, equipment and fixtures are recorded at cost. Interest cost incurred to finance construction is capitalized as part of the cost of the asset. Maintenance and repairs are expensed as incurred.

Depreciation is provided on a straight-line basis over estimated useful lives of thirty years for buildings, ten years for store fixtures and equipment, and three years for vehicles. Leasehold improvements are amortized over the shorter of the related lease terms or the estimated useful lives of the related assets.

When assets are sold or retired, their cost and accumulated depreciation are removed from the accounts, and any gain or loss is reflected in the consolidated financial statements.

Investments

The Company’s investments in its principal supplier, Wakefern, and a Wakefern affiliate, Insure-Rite, Ltd., are stated at cost (see Note 3). Village evaluates its investments in Wakefern and Insure-Rite, Ltd. for impairment through consideration of previous, current and projected levels of profit of those entities.

The Company’s 20%-50% investments in certain real estate partnerships are accounted for under the equity method. One of these partnerships is a variable interest entity which does not require consolidation as Village is not the primary beneficiary (see Note 6).

Store opening and closing costs

All store opening costs are expensed as incurred. The Company records a liability for the future minimum lease payments and related costs for closed stores from the date of closure to the end of the remaining lease term, net of estimated cost recoveries that may be achieved through subletting, discounted using a risk-adjusted interest rate.

Leases

Leases that meet certain criteria are classified as capital leases, and assets and liabilities are recorded at amounts equal to the lesser of the present value of the minimum lease payments or the fair value of the leased properties at the inception of the respective leases. Such assets are amortized on a straight- line basis over the shorter of the related lease terms or the estimated useful lives of the related assets. Amounts representing interest expense relating to the lease obligations are recorded to effect constant rates of interest over the terms of the leases. Leases that do not qualify as capital leases are classified as operating leases. The Company accounts for rent holidays, escalating rent provisions, and construction allowances on a straight-line basis over the term of the lease.

For leases in which the Company is involved with the construction of the store, if Village concludes that it has substantively all of the risks of ownership during construction of the leased property and therefore is deemed the owner of the project for accounting purposes, an asset and related financing obligation are recorded for the costs paid by the landlord. Once construction is complete, the Company considers the requirements for sale-leaseback treatment. If the arrangement does not qualify for sale-leaseback treatment, the Company amortizes the financing obligation and depreciates the building over the lease term.

Advertising

Advertising costs are expensed as incurred. Advertising expense was $11,018, $10,952 and $9,294 in fiscal 2013, 2012 and 2011, respectively.

Income taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.

The Company recognizes a tax benefit for uncertain tax positions if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with a taxing authority having full knowledge of all relevant information.

Use of estimates

In conformity with U.S. generally accepted accounting principles, management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates are patronage dividends, pension accounting assumptions, share-based compensation assumptions, accounting for uncertain tax positions, accounting for contingencies and the impairment of long-lived assets and goodwill. Actual results could differ from those estimates.

Fair value

Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels within the hierarchy range from Level 1 having the highest priority to Level 3 having the lowest.

Cash and cash equivalents, patronage dividends receivable, accounts payable and accrued expenses are reflected in the consolidated financial statements at carrying value, which approximates fair value because of the short-term maturity of these instruments. The carrying values of the Company’s notes receivable from Wakefern and short and long-term notes payable approximate their fair value based on the short duration of these instruments. As the Company’s investments in Wakefern can only be sold to Wakefern at amounts that approximate the Company’s cost, it is not practicable to estimate the fair value of such investments.

Long-lived assets

The Company reviews long-lived assets, such as property, equipment and fixtures on an individual store basis for impairment when circumstances indicate the carrying amount of an asset group may not be recoverable. Such review analyzes the undiscounted estimated future cash flows from such assets to determine if the carrying value of such assets are recoverable from their respective cash flows. If impairment is indicated, it is measured by comparing the fair value of the long-lived assets to their carrying value.

Goodwill

Goodwill is tested at the end of each fiscal year, or more frequently if circumstances dictate, for impairment. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. Village operates as a single reporting unit for purposes of evaluating goodwill for impairment and primarily considers earnings multiples and other valuation techniques to measure fair value, in addition to the value of the Company’s stock.

During fiscal 2012, the Company recorded additional goodwill related to the acquisition of the ShopRite in Old Bridge, NJ of $1,452, all of which is deductible for tax purposes. 

Net income per share

The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time.

The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method.

Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for- share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock.

The tables below reconcile the numerators and denominators of basic and diluted net income per share for all periods presented.

	2013		2012		2011
	Class A	Class B	Class A	Class B	Class A	Class B
Numerator:
Net income allocated, basic	$     18,089	$       7,053	$     19,314	$     11,317	$     12,752	$       7,741
Conversion of Class B to Class A shares	7,053	-	11,317	-	7,741	-
Effect of share-based compensation on allocated net income	6	(5)	94	(54)	8	(6)
Net income allocated, diluted	$     25,148	$       7,048	$     30,725	$     11,263	$     20,501	$       7,735
Denominator:
Weighted average shares outstanding, basic	8,297	5,197	7,045	6,358	6,873	6,376
Conversion of Class B to Class A shares	5,197	-	6,358	-	6,376	-
Dilutive effect of share-based compensation	112	-	81	-	106	-
Weighted average shares outstanding, diluted	13,606	5,197	13,484	6,358	13,355	6,376

Net income per share is as follows:

	2013		2012		2011
	Class   A	Class   B	Class   A	Class   B	Class   A	Class   B
Basic	$         2.18	$         1.36	$         2.74	$         1.78	$         1.86	$         1.21
Diluted	$         1.85	$         1.36	$         2.28	$         1.77	$         1.54	$         1.21

Outstanding stock options to purchase Class A shares of 5, 222 and 246 were excluded from the calculation of diluted net income per share at July 27, 2013, July 28, 2012 and July 30, 2011, respectively, as a result of their anti-dilutive effect. In addition, 299, 299 and 292 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at July 27, 2013, July 28, 2012 and July 30, 2011, respectively, due to their anti-dilutive effect.

Share-based compensation

All share-based payments to employees are recognized in the financial statements as compensation costs based on the fair market value on the date of the grant.

Benefit plans

The Company recognizes the funded status of its Company sponsored retirement plans on the consolidated balance sheet. Actuarial gains or losses, prior service costs or credits and transition obligations not previously recognized are recorded as a component of Accumulated Other Comprehensive Income (Loss).

The Company also contributes to several multi-employer pension plans under the terms of collective bargaining agreements that cover certain union-represented employees.  Pension expense for these plans is recognized as contributions are made. 

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Note 5 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Components of Income Tax Expense (Benefit)

	2013	2012	2011
Federal:
Current	$                      17,215	$                      16,009	$                      12,539
Deferred	(3,021)	931	(952)
State:
Current	5,139	5,165	4,265
Deferred	(478)	158	(591)
	$                      18,855	$                      22,263	$                      15,261

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Note 1 - Summary of Significant Accounting Policies: Store Opening and Closing Costs (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Store Opening and Closing Costs

Store opening and closing costs

All store opening costs are expensed as incurred. The Company records a liability for the future minimum lease payments and related costs for closed stores from the date of closure to the end of the remaining lease term, net of estimated cost recoveries that may be achieved through subletting, discounted using a risk-adjusted interest rate.

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Note 1 - Summary of Significant Accounting Policies: Use of Estimates (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Use of Estimates

Use of estimates

In conformity with U.S. generally accepted accounting principles, management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates are patronage dividends, pension accounting assumptions, share-based compensation assumptions, accounting for uncertain tax positions, accounting for contingencies and the impairment of long-lived assets and goodwill. Actual results could differ from those estimates.

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Note 5 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Details
Deferred Tax Asset Tax Deferred Leasing Activities	$ 5,747	$ 4,893
Deferred Tax Asset Tax Deferred Uncertain Tax Position	8,028	6,681
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits	6,256	4,344
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Pensions	5,644	10,316
Deferred Tax Assets, Tax Deferred Expense, Other	1,868	1,656
Deferred Tax Assets, Gross	27,543	27,890
Deferred Tax Liabilities, Property, Plant and Equipment	17,352	17,826
Deferred Tax Liabilities Patronage Dividend Receivable	4,903	4,392
Deferred Tax Liabilities, Investment in Noncontrolled Affiliates	1,411	950
Deferred Tax Liabilities, Other	491	163
Deferred Tax Liabilities, Gross, Current	24,157	23,331
Deferred Tax Assets, Net of Valuation Allowance	$ 3,386	$ 4,559

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Note 1 - Summary of Significant Accounting Policies: Share-based Compensation (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Share-based Compensation

Share-based compensation

All share-based payments to employees are recognized in the financial statements as compensation costs based on the fair market value on the date of the grant.

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Note 5 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Federal Income Tax Expense (Benefit), Continuing Operations	$ 17,215	$ 16,009	$ 12,539
Deferred Federal Income Tax Expense (Benefit)	(3,021)	931	(952)
State and Local Income Tax Expense (Benefit), Continuing Operations	5,139	5,165	4,265
Deferred State and Local Income Tax Expense (Benefit)	(478)	158	(591)
Income taxes	$ 18,855	$ 22,263	$ 15,261

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Note 8 - Pension Plans: Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

	2013	2012
Projected benefit obligation	$                   14,943	$                   67,179
Accumulated benefit obligation	14,943	55,873
Fair value of plan assets	3,695	37,416

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Note 7 - Shareholders' Equity: Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

	2013		2012		2011
	Shares	Weighted-average grant date fair value	Shares	Weighted-average grant date fair value	Shares	Weighted-average grant date fair value
Nonvested at beginning of year	299	$             27.57	293	$             27.56	257	$             25.65
Granted	2	33.73	9	29.46	292	27.55
Vested	(2)	28.25	(3)	32.25	(256)	25.64
Forfeited	-	-	-	-	-	-
Nonvested at end of year	299	$             27.60	299	$             27.57	293	$             27.56

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Note 5 - Income Taxes: Schedule of Unrecognized Tax Benefits Roll Forward (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Unrecognized Tax Benefits Roll Forward

	2013	2012
Balance at beginning of year	$                      14,895	$                      12,476
Additions based on tax positions related to the current year	2,745	2,419
Balance at end of year	$                      17,640	$                      14,895

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CONSOLIDATED BALANCE SHEETS PARENTHETICAL In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Preferred stock shares authorized	10,000	10,000
Class A Common Stock
Common stock shares authorized	20,000	20,000
Common stock shares issued	9,440	7,883
Treasury shares	375	461
Class B Common Stock
Common stock shares authorized	20,000	20,000
Common stock shares issued	4,780	6,335
Common stock shares outstanding	4,780	6,335

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Note 6 - Leases

12 Months Ended

Jul. 27, 2013

Notes

Note 6 - Leases

NOTE 6 — LEASES

Description of leasing arrangements

The Company leased twenty-four stores at July 27, 2013, including five that are capitalized for financial reporting purposes. 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. These options enable Village to retain the use of facilities in desirable operating areas. Management expects that in the normal course of business, most leases will be renewed or replaced by other leases. The Company is obligated under all leases to pay for real estate taxes, utilities and liability insurance, and under certain leases to pay additional amounts based on maintenance and a percentage of sales in excess of stipulated amounts.

Future minimum lease payments by year and in the aggregate for all non-cancelable leases with initial terms of one year or more consist of the following at July 27, 2013:

	Capital and financing leases	Operating Leases
2014	$                        4,285	$                      11,204
2015	4,476	10,904
2016	4,491	9,610
2017	4,491	6,928
2018	4,576	5,793
Thereafter	79,631	43,552
Minimum lease payments	101,950	$                      87,991
Less amount representing interest	60,921
Present value of minimum lease payments	41,029
Less current portion	10
	$                      41,019

The following schedule shows the composition of total rental expense for the following years:

	2013	2012	2011
Minimum rentals	$                      11,192	$                      10,625	$                        8,625
Contingent rentals	960	882	881
	$                      12,152	$                      11,507	$                        9,506

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 $640, $640 and $615 in fiscal 2013, 2012 and 2011, respectively. This lease expires in fiscal 2016 with options to extend at increasing annual rents.

The Company has ownership interests in three real estate partnerships. Village paid aggregate rents to two of these partnerships for leased stores of $834, $801 and $764 in fiscal 2013, 2012 and 2011, respectively.  In November 2012, the Company received $1,980 in cash distributions from two partnerships.  Income from partnerships in fiscal 2013 of $1,450 represents proceeds received in excess of invested amounts. 

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 partnerships profits and losses.

The Company leases the Galloway and Vineland stores from Wakefern under sublease agreements which provide for combined annual rent of $1,237. Both leases contain normal periodic rent increases and options to extend the lease.

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CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013		Jul. 28, 2012		Jul. 30, 2011
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 25,784		$ 31,445		$ 20,982
Amortization of pension actuarial loss, net of tax (1)	1,309	[1]	780	[1]	991	[1]
Pension adjustment to funded status, net of tax (2)	5,698	[2]	(5,112)	[2]	(1,712)	[2]
Total other comprehensive income (loss)	7,007		(4,332)		(721)
Comprehensive income	$ 32,791		$ 27,113		$ 20,261

[1] Amounts are net of tax of $872, $519 and $660 for 2013, 2012 and 2011, respectively.

[2] Amounts are net of tax of $3,800, $3,429 and $1,140 for 2013, 2012 and 2011, respectively.

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Note 8 - Pension Plans: Schedule of Expected Benefit Payments (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Expected Benefit Payments

Fiscal Year
2014	$              1,027
2015	3,774
2016	1,400
2017	1,572
2018	9,673
2019 - 2023	13,867

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Current assets
Cash and cash equivalents	$ 109,571	$ 103,103
Merchandise inventories	41,515	40,599
Patronage dividend receivable	11,810	10,774
Note receivable from Wakefern	22,421
Other current assets	20,047	17,102
Total current assets	205,364	171,578
Note receivable from Wakefern		20,918
Property, equipment and fixtures, net	176,981	172,420
Investment in Wakefern	24,355	23,406
Goodwill	12,057	12,057
Other assets	8,655	9,159
TOTAL ASSETS	427,412	409,538
Current liabilities
Capital and financing lease obligations	10
Notes payable to Wakefern	600	473
Accounts payable to Wakefern	59,465	55,441
Accounts payable and accrued expenses	16,999	16,056
Accrued wages and benefits	14,710	12,802
Income taxes payable	19,281	15,134
Total current liabilities	111,065	99,906
Long-term Debt
Capital and financing lease obligations	41,019	40,792
Notes payable to Wakefern	1,719	2,357
Total long-term debt	42,738	43,149
Pension liabilities	20,062	29,763
Other liabilities	8,987	6,409
Commitments and Contingencies (Notes 3, 4, 5, 6, 8 and 9)
Shareholders' Equity
Preferred stock, no par value: Authorized 10,000 shares, none issued
Retained earnings	211,109	209,373
Accumulated other comprehensive loss	(8,467)	(15,474)
Total shareholders' equity	244,560	230,311
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	427,412	409,538
Class A Common Stock
Shareholders' Equity
Common Stock	44,543	39,570
Treasury Stock	(3,401)	(4,186)
Class B Common Stock
Shareholders' Equity
Common Stock	$ 776	$ 1,028

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Note 7 - Shareholders' Equity: Schedule of dividends declared and paid (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of dividends declared and paid

	2013	2012	2011
Per share:
Class A common stock	$                        2.000	$                        0.850	$                        1.700
Class B common stock	1.300	0.553	1.105
Aggregate:
Class A common stock	$                      17,486	$                        6,247	$                      12,040
Class B common stock	6,562	3,511	7,046
	$                      24,048	$                        9,758	$                      19,086

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Note 7 - Shareholders' Equity (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Preferred stock shares authorized	10,000	10,000
Allocated Share-based Compensation Expense	$ 3,222	$ 3,180	$ 3,007
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	1,140	1,126	1,001
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	6 years 1 month 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	4 years 1 month 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	3,775
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	2,261
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 7.30		$ 5.78
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	1,344	685	1,009
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	60	89	7,328
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	2,074
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	8 months 12 days
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options	1,742	1,353	727
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	537	280	385
Special Dividends	$ 12,009		$ 14,005
Special Dividends Per Share Class A	$ 1.00		$ 1.25
SpecialDividendsPerShareClassB	$ 0.65		$ 0.8125

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Note 5 - Income Taxes: Schedule of Unrecognized Tax Benefits Roll Forward (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012
Details
Unrecognized Tax Benefits, Beginning Balance	$ 14,895	$ 12,476
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions	2,745	2,419
Unrecognized Tax Benefits, Ending Balance	$ 17,640	$ 14,895

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Note 1 - Summary of Significant Accounting Policies: Leases (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Leases

Leases

Leases that meet certain criteria are classified as capital leases, and assets and liabilities are recorded at amounts equal to the lesser of the present value of the minimum lease payments or the fair value of the leased properties at the inception of the respective leases. Such assets are amortized on a straight- line basis over the shorter of the related lease terms or the estimated useful lives of the related assets. Amounts representing interest expense relating to the lease obligations are recorded to effect constant rates of interest over the terms of the leases. Leases that do not qualify as capital leases are classified as operating leases. The Company accounts for rent holidays, escalating rent provisions, and construction allowances on a straight-line basis over the term of the lease.

For leases in which the Company is involved with the construction of the store, if Village concludes that it has substantively all of the risks of ownership during construction of the leased property and therefore is deemed the owner of the project for accounting purposes, an asset and related financing obligation are recorded for the costs paid by the landlord. Once construction is complete, the Company considers the requirements for sale-leaseback treatment. If the arrangement does not qualify for sale-leaseback treatment, the Company amortizes the financing obligation and depreciates the building over the lease term.

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Note 1 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Cash and Cash Equivalents

Cash and cash equivalents

The Company considers all highly liquid investments purchased with a maturity of three months or less and proceeds due from credit and debit card transactions with settlement terms of less than five days to be cash equivalents. Included in cash and cash equivalents at July 27, 2013 and July 28, 2012 are $85,222 and $82,294, respectively, of demand deposits invested at Wakefern at overnight money market rates.

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Note 5 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Effective Income Tax Rate Reconciliation

	2013		2012		2011
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	6.8		6.4		6.6
Other	0.4		0.1		0.5
Effective income tax rate	42.2	%	41.5	%	42.1	%

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Note 6 - Leases: Schedule of Rent Expense (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Operating Leases, Rent Expense, Minimum Rentals	$ 11,192	$ 10,625	$ 8,625
Operating Leases, Rent Expense, Contingent Rentals	960	882	881
Operating Leases, Rent Expense, Net	$ 12,152	$ 11,507	$ 9,506

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Note 8 - Pension Plans: Schedule of Amounts Recognized In Plan Assets and Benefit Obligations Recognized (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Amounts Recognized In Plan Assets and Benefit Obligations Recognized

Amounts included in Accumulated other comprehensive loss (pre-tax):
Net actuarial loss	$                      14,111	$                      25,783
Prior service cost	-	8
	$                      14,111	$                      25,791

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Note 1 - Summary of Significant Accounting Policies: Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Class A Common Stock
Net Income (Loss) Available to Common Stockholders, Basic	$ 18,089	$ 19,314	$ 12,752
Two Class Income Allocation Class B Conversion to Class A	7,053	11,317	7,741
Two Class Income Distribution Share Based Compensation	6	94	8
Net Income (Loss) Available to Common Stockholders, Diluted	25,148	30,725	20,501
Weighted Average Number of Shares Outstanding, Basic	8,297	7,045	6,873
Two Class Share Allocation Class B Conversion to Class A	5,197	6,358	6,376
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	112	81	106
Weighted Average Number of Shares Outstanding, Diluted	13,606	13,484	13,355
Basic net income per share	$ 2.18	$ 2.74	$ 1.86
Diluted net income per share	$ 1.85	$ 2.28	$ 1.54
Class B Common Stock
Net Income (Loss) Available to Common Stockholders, Basic	7,053	11,317	7,741
Two Class Income Distribution Share Based Compensation	(5)	(54)	(6)
Net Income (Loss) Available to Common Stockholders, Diluted	$ 7,048	$ 11,263	$ 7,735
Weighted Average Number of Shares Outstanding, Basic	5,197	6,358	6,376
Weighted Average Number of Shares Outstanding, Diluted	5,197	6,358	6,376
Basic net income per share	$ 1.36	$ 1.78	$ 1.21
Diluted net income per share	$ 1.36	$ 1.77	$ 1.21

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Note 1 - Summary of Significant Accounting Policies: Schedule of Earnings Per Share, Basic and Diluted (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Earnings Per Share, Basic and Diluted

	2013		2012		2011
	Class A	Class B	Class A	Class B	Class A	Class B
Numerator:
Net income allocated, basic	$     18,089	$       7,053	$     19,314	$     11,317	$     12,752	$       7,741
Conversion of Class B to Class A shares	7,053	-	11,317	-	7,741	-
Effect of share-based compensation on allocated net income	6	(5)	94	(54)	8	(6)
Net income allocated, diluted	$     25,148	$       7,048	$     30,725	$     11,263	$     20,501	$       7,735
Denominator:
Weighted average shares outstanding, basic	8,297	5,197	7,045	6,358	6,873	6,376
Conversion of Class B to Class A shares	5,197	-	6,358	-	6,376	-
Dilutive effect of share-based compensation	112	-	81	-	106	-
Weighted average shares outstanding, diluted	13,606	5,197	13,484	6,358	13,355	6,376

Net income per share is as follows:

	2013		2012		2011
	Class   A	Class   B	Class   A	Class   B	Class   A	Class   B
Basic	$         2.18	$         1.36	$         2.74	$         1.78	$         1.86	$         1.21
Diluted	$         1.85	$         1.36	$         2.28	$         1.77	$         1.54	$         1.21

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Note 1 - Summary of Significant Accounting Policies: Goodwill (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Goodwill

Goodwill

Goodwill is tested at the end of each fiscal year, or more frequently if circumstances dictate, for impairment. An impairment loss is recognized to the extent that the carrying amount of goodwill exceeds its implied fair value. Village operates as a single reporting unit for purposes of evaluating goodwill for impairment and primarily considers earnings multiples and other valuation techniques to measure fair value, in addition to the value of the Company’s stock.

During fiscal 2012, the Company recorded additional goodwill related to the acquisition of the ShopRite in Old Bridge, NJ of $1,452, all of which is deductible for tax purposes. 

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Note 1 - Summary of Significant Accounting Policies: Net Income Per Share (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Net Income Per Share

Net income per share

The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time.

The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method.

Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for- share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock.

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Note 5 - Income Taxes

12 Months Ended

Jul. 27, 2013

Notes

Note 5 - Income Taxes

NOTE 5 — INCOME TAXES

The components of the provision for income taxes are:

	2013	2012	2011
Federal:
Current	$                      17,215	$                      16,009	$                      12,539
Deferred	(3,021)	931	(952)
State:
Current	5,139	5,165	4,265
Deferred	(478)	158	(591)
	$                      18,855	$                      22,263	$                      15,261

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	July 27, 2013	July 28, 2012
Deferred tax assets:
Leasing activities	$                       5,747	$                       4,893
Federal benefit of uncertain tax positions	8,028	6,681
Compensation related costs	6,256	4,344
Pension costs	5,644	10,316
Other	1,868	1,656
Total deferred tax assets	27,543	27,890
Deferred tax liabilities:
Tax over book depreciation	17,352	17,826
Patronage dividend receivable	4,903	4,392
Investment in partnerships	1,411	950
Other	491	163
Total deferred tax liabilities	24,157	23,331
Net deferred tax asset	$                       3,386	$                       4,559

Deferred income tax assets (liabilities) are included in the following captions on the consolidated balance sheets at July 27, 2013 and July 28, 2012:

	2013	2012
Other current assets	$                            5,053	$                            4,154
Other assets	1,211	1,644
Accounts payable and accrued expenses	(838)	(714)
Other liabilities	(2,040)	(525)

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. In management’s opinion, in view of the Company’s previous, current and projected taxable income and reversal of deferred tax liabilities, such tax assets will more likely than not be fully realized. Accordingly, no valuation allowance was deemed to be required at July 27, 2013 and July 28, 2012.

The effective income tax rate differs from the statutory federal income tax rate as follows:

	2013		2012		2011
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	6.8		6.4		6.6
Other	0.4		0.1		0.5
Effective income tax rate	42.2	%	41.5	%	42.1	%

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

	2013	2012
Balance at beginning of year	$                      14,895	$                      12,476
Additions based on tax positions related to the current year	2,745	2,419
Balance at end of year	$                      17,640	$                      14,895

Unrecognized tax benefits at July 27, 2013 and July 28, 2012 include tax positions of $11,466 and $9,682 (net of federal benefit), respectively, that would reduce the Company’s effective income tax rate, if recognized in future periods.

The Company recognizes interest and penalties on income taxes in income tax expense. The Company recognized $1,211, $1,008 and $817, related to interest and penalties on income taxes in fiscal 2013, 2012 and 2011, respectively. The amount of accrued interest and penalties included in the consolidated balance sheet was $5,820 and $4,609 at July 27, 2013 and July 28, 2012, respectively.

The state of New Jersey audited the Company’s tax returns for fiscal 2002 through 2005 and has assessed two separate tax deficiencies related to nexus and the deductibility of certain payments between subsidiaries. The Company contested both these assessments through the state’s conference and appeals process. During fiscal 2011, Village received two determinations that the Company’s protests were denied. The Company has filed two complaints in Tax Court against the New Jersey Division of Taxation contesting these decisions. In addition, during fiscal 2012 the state of New Jersey audited the Company’s tax returns for fiscal 2006 through 2009 and has assessed a tax deficiency related to the same issue as above. The Company is currently contesting this assessment through the state’s conference and appeals process.  A trial limited to the nexus dispute was conducted in June 2013 and no decision has been rendered.  The ultimate resolution of these matters could significantly increase or decrease the total amount of the Company’s unrecognized tax benefits and could materially impact our results of operations and cash flows. An examination of the Company’s fiscal 2009 federal tax return was completed in fiscal 2011 with no change.

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Note 1 - Summary of Significant Accounting Policies: Merchandise Inventories (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Details
Percentage of LIFO Inventory	65.00%
Inventory, LIFO Reserve	$ 14,786	$ 14,842

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Note 8 - Pension Plans: Schedule of Assumptions Used (Details)	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	3.59%	4.99%	5.19%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	4.43%	3.59%	4.99%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets	7.50%	7.50%	7.50%
Minimum
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	4.00%	4.00%	4.00%
Maximum
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	4.50%	4.50%	4.50%

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Note 1 - Summary of Significant Accounting Policies: Advertising (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Advertising

Advertising

Advertising costs are expensed as incurred. Advertising expense was $11,018, $10,952 and $9,294 in fiscal 2013, 2012 and 2011, respectively.

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Note 5 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Deferred Tax Assets and Liabilities

	July 27, 2013	July 28, 2012
Deferred tax assets:
Leasing activities	$                       5,747	$                       4,893
Federal benefit of uncertain tax positions	8,028	6,681
Compensation related costs	6,256	4,344
Pension costs	5,644	10,316
Other	1,868	1,656
Total deferred tax assets	27,543	27,890
Deferred tax liabilities:
Tax over book depreciation	17,352	17,826
Patronage dividend receivable	4,903	4,392
Investment in partnerships	1,411	950
Other	491	163
Total deferred tax liabilities	24,157	23,331
Net deferred tax asset	$                       3,386	$                       4,559

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Note 8 - Pension Plans

12 Months Ended

Jul. 27, 2013

Notes

Note 8 - Pension Plans

NOTE 8 — PENSION PLANS

Company-Sponsored Pension Plans

The Company sponsors four defined benefit pension plans. Two are tax-qualified plans covering members of unions. Benefits under these two plans are based on a fixed amount for each year of service. One is a tax-qualified plan covering nonunion associates. Benefits under this plan are based upon percentages of annual compensation. Funding for these plans is based on an analysis of the specific requirements and an evaluation of the assets and liabilities of each plan. The fourth plan is an unfunded, nonqualified plan providing supplemental pension benefits to certain executives. The Company uses its fiscal year-end date as the measurement date for these plans.

Net periodic pension cost for the four plans include the following components:

	2013	2012	2011
Service cost	$                        3,279	$                        2,694	$                        2,903
Interest cost on projected benefit obligation	2,479	2,701	2,575
Expected return on plan assets	(2,706)	(2,538)	(2,067)
Amortization of gains and losses	2,173	1,371	1,709
Amortization of prior service costs	8	8	8
Net periodic pension cost	$                        5,233	$                        4,236	$                        5,128

The changes in benefit obligations and the reconciliation of the funded status of the Company’s plans to the consolidated balance sheets were as follows:

	2013	2012
Changes in Benefit Obligation:
Benefit obligation at beginning of year	$                      67,179	$                      55,480
Service cost	3,279	2,694
Interest cost	2,479	2,701
Benefits paid	(2,422)	(1,023)
Actuarial (gain) loss	(6,871)	7,327
Benefit obligation at end of year	$                      63,644	$                      67,179
Changes in Plan Assets:
Fair value of plan assets at beginning of year	$                      37,416	$                      33,967
Actual return on plan assets	5,334	1,245
Employer contributions	3,254	3,227
Benefits paid	(2,422)	(1,023)
Fair value of plan assets at end of year	43,582	37,416
Funded status at end of year	$                    (20,062)	$                    (29,763)

Amounts recognized in the consolidated balance sheets:
Pension liabilities	$                    (20,062)	$                    (29,763)
Accumulated other comprehensive loss, net of income taxes	8,467	15,474

Amounts included in Accumulated other comprehensive loss (pre-tax):
Net actuarial loss	$                      14,111	$                      25,783
Prior service cost	-	8
	$                      14,111	$                      25,791

The Company expects approximately $804 of the net actuarial loss to be recognized as a component of net periodic benefit costs in fiscal 2014.

The accumulated benefit obligations of the four plans were $53,034 and $55,873 at July 27, 2013 and July 28, 2012, respectively.  The following information is presented for those plans with an accumulated benefit obligation in excess of plan assets:

	2013	2012
Projected benefit obligation	$                   14,943	$                   67,179
Accumulated benefit obligation	14,943	55,873
Fair value of plan assets	3,695	37,416

Weighted average assumptions used to determine benefit obligations and net periodic pension cost for the Company’s defined benefit plans were as follows:

	2013	2012	2011
Assumed discount rate — net periodic pension cost	3.59%	4.99%	5.19%
Assumed discount rate — benefit obligation	4.43%	3.59%	4.99%
Assumed rate of increase in compensation levels	4 - 4.5 %	4 - 4.5 %	4 - 4.5 %
Expected rate of return on plan assets	7.50%	7.50%	7.50%

Investments in the pension trusts are overseen by the trustees of the plans, who are officers of Village. The Company’s overall investment strategy is to maintain a broadly diversified portfolio of stocks, bonds and money market instruments that, along with periodic plan contributions, provide the necessary funds for ongoing benefit obligations. Expected rates of return on plan assets are developed by determining projected stock and bond returns and then applying these returns to the target asset allocations of the trusts, resulting in a weighted-average rate of return on plan assets. Equity returns were based primarily on historical returns of the S&P 500 Index. Fixed-income projected returns were based primarily on historical returns for the broad U.S. bond market. The target allocations for plan assets are 50-70% equity securities, 25-40% fixed income securities and 0-10% cash. Asset allocations are reviewed periodically and appropriate rebalancing is performed.

Equity securities include investments in large-cap, small-cap and mid-cap companies located both in and outside the United States. Fixed income securities include U.S. treasuries, mortgage-backed securities and corporate bonds of companies from diversified industries. Investments in securities are made both directly and through mutual funds. In addition, one plan held Class A common stock of Village in the amount of $837 and $804 at July 27, 2013 and July 28, 2012, respectively.

Risk management is accomplished through diversification across asset classes and fund strategies, multiple investment portfolios and investment guidelines. The plans do not allow for investments in derivative instruments.

The fair value of the pension assets, all of which are valued on quoted prices in active markets for identical assets (Level 1), were as follows:

	July 27, 2013	July 28, 2012
Asset Category
Cash	$                        1,747	$                           607
Equity securities:
Company stock	837	804
U.S large cap (1)	16,385	13,488
U.S. small/mid cap (2)	6,762	5,438
International (3)	4,580	3,697
Emerging markets (4)	1,074	1,010
Fixed income securities:
U.S treasuries (5)	7,966	7,657
Mortgage-backed (5)	1,877	1,952
Corporate bonds (5)	1,766	2,763
Emerging markets (6)	588	-
Total	$                      43,582	$                      37,416

(1)                 Includes directly owned securities and mutual funds, primarily low-cost equity index funds not actively managed that track the S&P 500.

(2)                 Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded U.S. common stocks of small and medium cap companies.

(3)                 Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded common stocks of large, non-U.S. companies.

(4)                 Consists of mutual and exchange traded funds which invest in non-U.S. stocks in emerging markets.

(5)                 Includes directly owned securities, mutual funds and exchange traded funds.

(6)                 Consists of exchange traded funds which invest in non-U.S. bonds in emerging markets.

Based on actuarial assumptions, estimated future defined benefit payments, which may be significantly impacted by participant elections related to retirement dates and forms of payment, are as follows:

Fiscal Year
2014	$              1,027
2015	3,774
2016	1,400
2017	1,572
2018	9,673
2019 - 2023	13,867

The Company expects to contribute $3,000 in cash to all defined benefit pension plans in fiscal 2014.

Multi-Employer Plans

The Company contributes to three multi-employer pension plans under collective bargaining agreements covering union-represented employees.  These plans provide benefits to participants that are generally based on a fixed amount for each year of service.  Based on the most recent information available, certain of these multi-employer plans are underfunded. The amount of any increase or decrease in Village’s required contributions to these multi- employer pension plans will depend upon the outcome of collective bargaining, actions taken by trustees who manage the plans, government regulations and the actual return on assets held in the plans, among other factors.

The risks of participating in multi-employer pension plans are different from the risks of participating in single-employer pension plans in the following respects:

·                     Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.

·                     If a participating employer stops contributing to the plan, the unfunded obligations of the plan allocable to such withdrawing employer may be borne by the remaining participating employers.

·                     If the Company stops participating in some of its multi-employer pension plans, the Company may be required to pay those plans an amount based on its allocable share of the underfunded status of the plan, referred to as a withdrawal liability.

The Company’s participation in these plans is outlined in the following tables.  The “EIN / Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit pension plan number.  The most recent “Pension Protection Act Zone Status” available in 2012 and 2011 is for the plan’s year-end at December 31, 2012 and December 31, 2011, respectively, unless otherwise noted.  Among other factors, generally, plans in the red zone are less than 65 percent funded, plans in the yellow zone are between 65 and 80 percent funded and plans in the green zone are at least 80 percent funded.  The “FIP/RP Status Pending / Implemented” column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented.   

		Pension Protection Act Zone Status		FIP/RP Status Pending / Implemented	Contributions for the year ended (5)			Surcharge Imposed (6)	Expiration date of Collective-Bargaining Agreement
Pension Fund	EIN / Pension Plan Number	2012	2011		July 27, 2013	July 28, 2012	July 30, 2011
Pension Plan of Local 464A (1)	226051600	Green	Green	NA	$ 532	$ 499	$ 481	NA	June 2016
UFCW Local 1262 & Employers Pension Fund (2), (4)	226074414	Red	Red	Implemented	3,350	3,463	3,357	No	October 2013
UFCW Regional Pension Plan (3), (4)	166062287	Red	Red	Implemented	1,164	1,073	1,044	No	December 2014
Total Contributions					$ 5,046	$ 5,035	$ 4,882

(1)                 The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2012 and December 31, 2011.

(2)                 The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2011 and December 31, 2010.

(3)                 The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at September 30, 2012 and September 30, 2011.

(4)                 This plan has elected to utilize special amortization provisions provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.  There were no changes to the plan’s zone status as a result of this election.

(5)                 The Company’s contributions represent more than 5% of the total contributions received by each applicable pension fund for all periods presented.

(6)                 Under the Pension Protection Act, a surcharge may be imposed when employers make contributions under a collective bargaining agreement that is not in compliance with a rehabilitation plan.  As of July 27, 2013, the collective bargaining agreements under which the Company was making contributions were in compliance with rehabilitation plans adopted by each applicable pension fund.

On April 15, 2011, Village, along with all of the other individual employers trading as ShopRite, permanently withdrew from participating in the United Food and Commercial Workers Local 152 Retail Meat Pension Fund (“the Fund”), effective the end of April 2011. The Fund is a multi-employer defined benefit plan that includes other supermarket operators. Village, along with the other affiliated ShopRite operators, determined to withdraw from the Fund due to exposures to market risks associated with all defined benefit plans and the inability to partition ShopRite’s liabilities from those of the other participating supermarket operators. Prior to withdrawal in April 2011, Village contributed $644 to the Fund in fiscal 2011.  Village now provides affected associates with a defined contribution plan for future service, which eliminates market risks and the exposure to shared liabilities of other operators, and is estimated to be less costly than the defined benefit plan in the future, while ensuring that our associates are provided a secure benefit. The Company recorded a pre-tax charge of $7,028 in fiscal 2011 for this withdrawal liability, which represented our estimate of the liability based on calculations provided by the Fund actuary. The Company settled this obligation in January 2012, resulting in a pre-tax benefit of $646 in fiscal 2012. 

Other Postretirement Benefit Plans

The Company also contributes to various other multi-employer benefit plans that provide health and welfare benefits to active and retired participants. Total contributions made by the Company to these other multi-employer benefit plans were approximately $22,421, $20,062 and $18,007 in fiscal 2013, 2012 and 2011, respectively. 

Defined Contribution Plans

The Company sponsors a 401(k) savings plan for certain eligible associates. Company contributions under that plan, which are based on specified percentages of associate contributions, were $377, $331 and $309 in fiscal 2013, 2012 and 2011, respectively.  The Company also contributes to union sponsored defined contribution plans for certain eligible associates.  Company contributions under these plans were $802, $690 and $539 in fiscal 2013, 2012 and 2011, respectively.

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Note 8 - Pension Plans: Schedule of Allocation of Plan Assets (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013		Jul. 28, 2012
Details
Pension asset - cash	$ 1,747		$ 607
Pension asset - equity securities - company stock	837		804
Pension asset - equity securities - U.S. large cap	16,385	[1]	13,488	[1]
Pension asset - equity securities - U.S. small/mid cap	6,762	[2]	5,438	[2]
Pension asset - equity securities - international	4,580	[3]	3,697	[3]
Pension asset - equity securities - emerging markets	1,074	[4]	1,010	[4]
Pension asset - fixed income securities - u.s. treasuries	7,966	[5]	7,657	[5]
Pension asset - fixed income securities - mortgage backed	1,877	[5]	1,952	[5]
Pension asset - fixed income securities - corporate bonds	1,766	[5]	2,763	[5]
Pension asset - fixed income securities - emerging markets	588	[6]
Pension asset - total	$ 43,582		$ 37,416

[1] Includes directly owned securities and mutual funds, primarily low-cost equity index funds not actively managed that track the S&P 500.

[2] Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded U.S. common stocks of small and medium cap companies.

[3] Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded common stocks of large, non-U.S. companies.

[4] Consists of mutual and exchange traded funds which invest in non-U.S. stocks in emerging markets.

[5] Includes directly owned securities and mutual funds.

[6] Consists of exchange traded funds which invest in non-U.S. bonds in emerging markets.

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Note 5 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%	35.00%	35.00%
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent	6.80%	6.40%	6.60%
Effective Income Tax Rate Reconciliation, Deduction, Other, Percent	0.40%	0.10%	0.50%
Effective Income Tax Rate Reconciliation, Percent	42.20%	41.50%	42.10%

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Note 4 - Debt

12 Months Ended

Jul. 27, 2013

Notes

Note 4 - Debt

NOTE 4 — DEBT

Village has an unsecured revolving credit agreement providing a maximum amount available for borrowing of $25,000.   This loan agreement expires on December 31, 2014.  The revolving credit line can be used for general corporate purposes. Indebtedness under this agreement bears interest at the prime rate, or at the Eurodollar rate, at the Company’s option, plus applicable margins based on the Company’s fixed charge coverage ratio. There were no amounts outstanding at July 27, 2013 or July 28, 2012 under this facility.

The revolving loan agreement provides for up to $3,000 of letters of credit ($2,461 outstanding at July 27, 2013), which secure obligations for self-insured workers’ compensation claims and construction performance guarantees to municipalities. 

This loan agreement contains covenants that, among other conditions, require a maximum liabilities to tangible net worth ratio, a minimum fixed charge coverage ratio and a positive net income. At July 27, 2013, the Company was in compliance with all covenants of the revolving loan agreement. Under the above covenants, Village had approximately $138,104 of net worth available at July 27, 2013 for the payment of dividends.

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME PARENTHETICAL (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME PARENTHETICAL
Tax associated with other comprehensive loss	$ 4,672	$ 2,910	$ 480

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Note 8 - Pension Plans: Note 8 Target Allocations (Details)	12 Months Ended
	Jul. 27, 2013
Equity Securities
DefinedBenefitPlanTargetPlanAssetAllocationsPercentageFixedIncomeSecuritiesRangeMinimum	50.00%
DefinedBenefitPlanTargetPlanAssetAllocationsPercentageFixedIncomeSecuritiesRangeMaximum	70.00%
Fixed Income Funds
DefinedBenefitPlanTargetPlanAssetAllocationsPercentageFixedIncomeSecuritiesRangeMinimum	25.00%
DefinedBenefitPlanTargetPlanAssetAllocationsPercentageFixedIncomeSecuritiesRangeMaximum	40.00%
Cash and Cash Equivalents
DefinedBenefitPlanTargetPlanAssetAllocationsPercentageFixedIncomeSecuritiesRangeMinimum	0.00%
DefinedBenefitPlanTargetPlanAssetAllocationsPercentageFixedIncomeSecuritiesRangeMaximum	10.00%

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Note 8 - Pension Plans: Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

	2013	2012
Changes in Benefit Obligation:
Benefit obligation at beginning of year	$                      67,179	$                      55,480
Service cost	3,279	2,694
Interest cost	2,479	2,701
Benefits paid	(2,422)	(1,023)
Actuarial (gain) loss	(6,871)	7,327
Benefit obligation at end of year	$                      63,644	$                      67,179
Changes in Plan Assets:
Fair value of plan assets at beginning of year	$                      37,416	$                      33,967
Actual return on plan assets	5,334	1,245
Employer contributions	3,254	3,227
Benefits paid	(2,422)	(1,023)
Fair value of plan assets at end of year	43,582	37,416
Funded status at end of year	$                    (20,062)	$                    (29,763)

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Note 6 - Leases: Schedule of Rent Expense (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Rent Expense

	2013	2012	2011
Minimum rentals	$                      11,192	$                      10,625	$                        8,625
Contingent rentals	960	882	881
	$                      12,152	$                      11,507	$                        9,506

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Note 7 - Shareholders' Equity: Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Beginning Balance	299	293	257
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance	$ 27.57	$ 27.56	$ 25.65
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	2	9	292
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 33.73	$ 29.46	$ 27.55
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(2)	(3)	(256)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 28.25	$ 32.25	$ 25.64
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Ending Balance	299	299	293
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance	$ 27.60	$ 27.57	$ 27.56

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Note 1 - Summary of Significant Accounting Policies: Fair Value (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Fair Value

Fair value

Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels within the hierarchy range from Level 1 having the highest priority to Level 3 having the lowest.

Cash and cash equivalents, patronage dividends receivable, accounts payable and accrued expenses are reflected in the consolidated financial statements at carrying value, which approximates fair value because of the short-term maturity of these instruments. The carrying values of the Company’s notes receivable from Wakefern and short and long-term notes payable approximate their fair value based on the short duration of these instruments. As the Company’s investments in Wakefern can only be sold to Wakefern at amounts that approximate the Company’s cost, it is not practicable to estimate the fair value of such investments.

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Note 7 - Shareholders' Equity: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	12 Months Ended
	Jul. 27, 2013	Jul. 30, 2011
Details
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years	5 years
Fair Value Assumptions, Expected Volatility Rate	33.00%	32.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	3.00%	3.60%
Fair Value Assumptions, Risk Free Interest Rate	0.80%	2.00%

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Note 8 - Pension Plans: Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Details
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation	$ 14,943	$ 67,179
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation	14,943	55,873
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets	$ 3,695	$ 37,416

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Note 1 - Summary of Significant Accounting Policies (Details) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5	222	246
Non-vested Restricted Shares Excluded From Diluted Net Income Per Share	299	299	292

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Note 8 - Pension Plans: Schedule of Multiemployer Plans (Tables)

12 Months Ended

Jul. 27, 2013

Tables/Schedules

Schedule of Multiemployer Plans

		Pension Protection Act Zone Status		FIP/RP Status Pending / Implemented	Contributions for the year ended (5)			Surcharge Imposed (6)	Expiration date of Collective-Bargaining Agreement
Pension Fund	EIN / Pension Plan Number	2012	2011		July 27, 2013	July 28, 2012	July 30, 2011
Pension Plan of Local 464A (1)	226051600	Green	Green	NA	$ 532	$ 499	$ 481	NA	June 2016
UFCW Local 1262 & Employers Pension Fund (2), (4)	226074414	Red	Red	Implemented	3,350	3,463	3,357	No	October 2013
UFCW Regional Pension Plan (3), (4)	166062287	Red	Red	Implemented	1,164	1,073	1,044	No	December 2014
Total Contributions					$ 5,046	$ 5,035	$ 4,882

(1)                 The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2012 and December 31, 2011.

(2)                 The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2011 and December 31, 2010.

(3)                 The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at September 30, 2012 and September 30, 2011.

(4)                 This plan has elected to utilize special amortization provisions provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.  There were no changes to the plan’s zone status as a result of this election.

(5)                 The Company’s contributions represent more than 5% of the total contributions received by each applicable pension fund for all periods presented.

(6)                 Under the Pension Protection Act, a surcharge may be imposed when employers make contributions under a collective bargaining agreement that is not in compliance with a rehabilitation plan.  As of July 27, 2013, the collective bargaining agreements under which the Company was making contributions were in compliance with rehabilitation plans adopted by each applicable pension fund.

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Note 7 - Shareholders' Equity: Schedule of dividends declared and paid (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Dividends	$ 24,048	$ 9,758	$ 19,086
Class A Common Stock
Common Stock, Dividends, Per Share, Cash Paid	$ 2.000	$ 0.850	$ 1.700
Dividends, Cash	17,486	6,247	12,040
Class B Common Stock
Common Stock, Dividends, Per Share, Cash Paid	$ 1.300	$ 0.553	$ 1.105
Dividends, Cash	$ 6,562	$ 3,511	$ 7,046

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Note 1 - Summary of Significant Accounting Policies: Principles of Consolidation (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Principles of Consolidation

Principles of consolidation

The consolidated financial statements include the accounts of Village Super Market, Inc. and its subsidiaries, which are wholly owned. Intercompany balances and transactions have been eliminated.

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Note 7 - Shareholders' Equity

12 Months Ended

Jul. 27, 2013

Notes

Note 7 - Shareholders' Equity

NOTE 7 — SHAREHOLDERS’ EQUITY

The Company has two classes of common stock. Class A common stock is entitled to one vote per share and to cash dividends as declared 54% greater than those paid on Class B common stock. Class B common stock is entitled to 10 votes per share. Class A and Class B common stock share equally on a per share basis in any distributions in liquidation. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time. Class B common stock is not transferable except to another holder of Class B common stock or by will or under the laws of intestacy or pursuant to a resolution of the Board of Directors of the Company approving the transfer. As a result of this voting structure, the holders of the Class B common stock control greater than 50% of the total voting power of the shareholders of the Company and control the election of the Board of Directors. 

The Company has authorized 10,000 shares of preferred stock. No shares have been issued. The Board of Directors is authorized to designate series, preferences, powers and participations of any preferred stock issued.

Village has three share-based compensation plans, which are described below. The compensation cost charged against income for these plans was $3,222, $3,180 and $3,007 in fiscal 2013, 2012 and 2011,  respectively. Total income tax benefit recognized in the consolidated statements of operations for share-based compensation arrangements was $1,140, $1,126 and $1,001 in fiscal 2013, 2012 and 2011, respectively. 

The 1997 Incentive and Non-Statutory Stock Option Plan (the “1997 Plan”) provided for the granting of options to purchase up to 1,000 shares of the Company’s Class A common stock by officers, employees and directors of the Company as designated by the Board of Directors. The Plan requires incentive stock options to be granted at exercise prices equal to the  fair value of Village’s stock at the date of grant (110% if the optionee holds more than 10% of the voting stock of the Company), while nonqualified options may be granted at an exercise price less than fair value. All options granted under this plan were at fair value, vest over a one-year service period and are exercisable up to ten years from the date of grant. There are no shares remaining for future grants under the 1997 Plan.

The Village Super Market, Inc. 2004 Stock Plan (the “2004 Plan”) provides for awards of incentive and nonqualified stock options and restricted stock. There are 1,200 shares of Class A common stock authorized for issuance to employees and directors under the 2004 Plan. Terms and conditions of awards are determined by the Board of Directors. Option awards are primarily granted at the fair value of the Company’s stock at the date of grant, cliff vest three years from the grant date and are exercisable up to ten years from the date of grant. Restricted stock awards primarily cliff vest three years from the grant date. There are no shares remaining for future grants under the 2004 Plan.

On December 17, 2010, the shareholder’s of the Company approved the Village Super Market, Inc. 2010 Stock Plan (the “2010 Plan”) under which awards of incentive and non qualified stock options and restricted stock may be made. There are 1,200 shares of Class A common stock authorized for issuance to employees and directors under the 2010 Plan. Terms and conditions of awards are determined by the Board of Directors. Option awards granted to date were granted at the fair value of the Company stock on the date of grant, primarily cliff vest three years from the grant date and are exercisable up to ten years from the grant date. Restricted stock awards primarily cliff vest three years from the date of grant.

The following table summarizes option activity under all plans for the following years:

	2013		2012		2011
	Shares	Weighted-average exercise price	Shares	Weighted-average exercise price	Shares	Weighted-average exercise price
Outstanding at beginning of year	474	$                24.03	555	$                23.34	404	$                19.56
Granted	8	33.91	-	-	218	27.51
Exercised	(86)	20.19	(69)	19.50	(59)	12.32
Forfeited	(16)	28.86	(12)	18.40	(8)	27.58
Outstanding at end of year	380	$                24.91	474	$                24.03	555	$                23.34
Options exercisable at end of year	169	$                21.50	234	$                20.48	297	$                19.82

As of July 27, 2013, the weighted-average remaining contractual term of options outstanding and options exercisable was 6.1 years and 4.1 years, respectively. As of July 27, 2013, the aggregate intrinsic value of options outstanding and options exercisable was $3,775 and $2,261, respectively. The weighted-average grant date fair value of options granted was $7.30 and $5.78 per share in fiscal 2013 and 2011, respectively. The total intrinsic value of options exercised was $1,344, $685 and $1,009 in fiscal 2013, 2012 and 2011, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Pricing Model using the weighted-average assumptions in the following table. The Company uses historical data for similar groups of employees in order to estimate the expected life of options granted. Expected volatility is based on the historical volatility of the Company’s stock for a period of years corresponding to the expected life of the option. The risk free interest rate is based on the U.S. Treasury yield curve at the time of grant for securities with a maturity period similar to the expected life of the option.                   

	2013		2011
Expected life (years)	5.0		5.0
Expected volatility	33.0	%	32.2	%
Expected dividend yield	3.0	%	3.6	%
Risk-free interest rate	0.8	%	2.0	%

The following table summarizes restricted stock activity under the 2004 and 2010 Plans for fiscal 2013, 2012 and 2011:

	2013		2012		2011
	Shares	Weighted-average grant date fair value	Shares	Weighted-average grant date fair value	Shares	Weighted-average grant date fair value
Nonvested at beginning of year	299	$             27.57	293	$             27.56	257	$             25.65
Granted	2	33.73	9	29.46	292	27.55
Vested	(2)	28.25	(3)	32.25	(256)	25.64
Forfeited	-	-	-	-	-	-
Nonvested at end of year	299	$             27.60	299	$             27.57	293	$             27.56

The total fair value of restricted shares vested during fiscal 2013, 2012 and 2011 was $60, $89 and $7,328, respectively.  As of July 27, 2013, there was $2,074 of total unrecognized compensation costs related to nonvested stock options and restricted stock granted under the above plans. That cost is expected to be recognized over a weighted-average period of 0.7 years.

Cash received from option exercises under all share-based compensation arrangements was $1,742, $1,353 and $727 in fiscal 2013, 2012 and 2011, respectively. The actual tax benefit realized for tax deductions from option exercises under share-based compensation arrangements was $537, $280 and $385 in fiscal 2013, 2012 and 2011, respectively.

The Company declared and paid cash dividends on common stock as follows:

	2013	2012	2011
Per share:
Class A common stock	$                        2.000	$                        0.850	$                        1.700
Class B common stock	1.300	0.553	1.105
Aggregate:
Class A common stock	$                      17,486	$                        6,247	$                      12,040
Class B common stock	6,562	3,511	7,046
	$                      24,048	$                        9,758	$                      19,086

Dividends paid in fiscal 2013 include special dividends totaling $12,009 paid in the second quarter, comprised of $1.00 per Class A common share and $.65 per Class B common share.  Dividends paid in fiscal 2011 include special dividends totaling $14,005 paid in the second quarter, comprised of $1.25 per Class A common share and $.8125 per Class B common share.

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Note 3 - Related Party Information - Wakefern (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Ownership interest in Wakefern	13.70%
Investment in Insure-Rite, Ltd	8.10%
Indebtedness to Wakefern	$ 2,319
Installment payments current	600
Installment payments year two	667
Installment payments year three	518
Installment payments year four	446
Installment payments year five	88
Maximum per store investment	825
Per store investment increase	25	25
Additional investment	949	622
Vendor allowances and rebates	24,779	23,953	17,724
Support services incurred charges	29,973	27,991	23,453
Note receivable related party	22,421
Note receivable rate related party	7.00%
Deposits Invested At Wakefern	85,222
Interest income earned on investments related entity	$ 2,783	$ 2,571	$ 2,207

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Note 1 - Summary of Significant Accounting Policies: Revenue Recognition (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Revenue Recognition

Revenue recognition

Merchandise sales are recognized at the point of sale to the customer. Sales tax is excluded from revenue. Discounts provided to customers through ShopRite coupons and loyalty programs are recognized as a reduction of sales as the products are sold.

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Note 1 - Summary of Significant Accounting Policies: Fiscal Year (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Fiscal Year

Fiscal year

The Company and its subsidiaries utilize a 52-53 week fiscal year ending on the last Saturday in the month of July. Fiscal 2013, 2012 and 2011 contain 52 weeks.

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Document and Entity Information (USD $)	12 Months Ended
	Jul. 27, 2013	Oct. 04, 2013	Jan. 26, 2013
Entity Registrant Name	VILLAGE SUPER MARKET INC
Document Type	10-K
Document Period End Date	Jul. 27, 2013
Amendment Flag	false
Entity Central Index Key	0000103595
Current Fiscal Year End Date	--07-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Common Stock, Shares Outstanding		13,845,449
Entity Public Float			$ 170,600,000

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Note 8 - Pension Plans (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2014	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Defined Benefit Plan, Service Cost		$ 3,279	$ 2,694	$ 2,903
Defined Benefit Plan, Interest Cost		2,479	2,701	2,575
Defined Benefit Plan, Expected Return on Plan Assets		(2,706)	(2,538)	(2,067)
Defined Benefit Plan Amortization Of (Gains) Losses		2,173	1,371	1,709
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)		8	8	8
Defined Benefit Plan, Net Periodic Benefit Cost		5,233	4,236	5,128
Defined Benefit Plan, Future Amortization of Gain (Loss)	804
Defined Benefit Plan, Accumulated Benefit Obligation		53,034	55,873
Defined Benefit Plan, Amount of Employer and Related Party Securities Included in Plan Assets		837	804
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	3,000
United Food and Commercial Workers Local 152 Retail Meat Pension Fund Contribution				644
Multiemployer Plans, Withdrawal Obligation				7,028
United Food And Commercial Workers Local 152 Retail Meat Pension Fund Pre-tax Benefit			646
Other Postretirement Multiemployer Benefit Plans Contributions		22,421	20,062	18,007
Defined Contribution Plan, Cost Recognized		377	331	309
Union sponsored defined contribution		$ 802	$ 690	$ 539

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Note 1 - Summary of Significant Accounting Policies: Industry Segment (Policies)

12 Months Ended

Jul. 27, 2013

Policies

Industry Segment

Industry segment 

The Company consists of one operating segment, the retail sale of food and nonfood products.

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Note 1 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jul. 28, 2012
Details
Demand deposits invested at related party Wakefern	$ 85,222	$ 82,294

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Note 1 - Summary of Significant Accounting Policies: Nature of Operations (Details) (USD $) In Thousands, unless otherwise specified	Jul. 27, 2013	Jan. 29, 2012	Jul. 30, 2011
Details
Number of Stores	29
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets		$ 3,250
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory		1,116
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds			$ 6,595

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Note 8 - Pension Plans: Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Jul. 27, 2013	Jul. 28, 2012	Jul. 30, 2011
Details
Defined Benefit Plan, Benefit Obligation, Beginning Balance	$ 67,179	$ 55,480
Defined Benefit Plan, Service Cost	3,279	2,694	2,903
Defined Benefit Plan, Interest Cost	2,479	2,701	2,575
Defined Benefit Plan, Benefits Paid	(2,422)	(1,023)
Defined Benefit Plan Actuarial (Gains) Losses	(6,871)	7,327
Defined Benefit Plan, Benefit Obligation, Ending Balance	63,644	67,179	55,480
Defined Benefit Plan, Fair Value of Plan Assets, Beginning Balance	37,416	33,967
Defined Benefit Plan, Actual Return on Plan Assets	5,334	1,245
Defined Benefit Plan, Contributions by Employer	3,254	3,227
Defined Benefit Plan, Fair Value of Plan Assets, Ending Balance	43,582	37,416	33,967
Defined Benefit Plan, Funded Status of Plan	$ (20,062)	$ (29,763)