XML 68 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
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.