6. Commitments and Contingencies	3 Months Ended
Oct. 26, 2013
Notes
6. Commitments and Contingencies	6. 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. In October 2013, Wakefern, as the policy holder, filed suit against the carrier seeking payment of claims due for all Wakefern members. Settlement discussions are currently ongoing. 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 is involved in other 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. The Company has rental obligations for several years remaining on the Morris Plains store, which closed in November 2013. These obligations include base rent of approximately $2.5 million over the remaining lease term. The Company is also constructing another replacement store expected to open in late fiscal 2014, for which we will also have additional rental obligations remaining on the existing store. If we are unable to otherwise mitigate the rental obligations, we will record a charge to operating and administrative expense for the remaining base rent obligation, net of estimated sublease income, in the fiscal quarter in which we cease using the respective properties.

6. Commitments and Contingencies

3 Months Ended

Oct. 26, 2013

6. 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. In October 2013, Wakefern, as the policy holder, filed suit against the carrier seeking payment of claims due for all Wakefern members. Settlement discussions are currently ongoing. 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 is involved in other 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.

The Company has rental obligations for several years remaining on the Morris Plains store, which closed in November 2013. These obligations include base rent of approximately $2.5 million over the remaining lease term. The Company is also constructing another replacement store expected to open in late fiscal 2014, for which we will also have additional rental obligations remaining on the existing store. If we are unable to otherwise mitigate the rental obligations, we will record a charge to operating and administrative expense for the remaining base rent obligation, net of estimated sublease income, in the fiscal quarter in which we cease using the respective properties.

- Definition

The entire disclosure for commitments and contingencies.

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