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LEASES | 12 Months Ended
--- | ---
Jul. 27, 2024
Leases [Abstract] |
LEASES | LEASES Description of leasing arrangements The Company leases 30 retail stores, as well as a commissary, the corporate headquarters and equipment at July 27, 2024. The majority of initial lease terms range from 20 to 30 years. Most of the Company’s leases contain renewal options at increased rents of five years each at the Company’s sole discretion. These options enable Village to retain the use of facilities in desirable operating areas. The composition of total lease cost is as follows:
|  |  | Years ended
| Consolidated Statement of Operations Classification |  | July 27, 2024 |  | July 29, 2023
Operating lease cost | Operating and administrative expense |  | $ | 36,989 |  |  | $ | 36,146 |
Finance lease cost |  |  |  |  |
Amortization of leased assets | Depreciation and amortization |  | 947 |  |  | 947 |
Interest on lease liabilities | Interest expense |  | 1,802 |  |  | 1,874 |
Variable lease cost | Operating and administrative expense |  | 22,044 |  |  | 21,275 |
Total lease cost |  |  | $ | 61,782 |  |  | $ | 60,242 |
As of July 27, 2024 and July 29, 2023, finance lease right-of-use assets of $9,964 and $10,912, respectively, are included in property, equipment and fixtures, net in the Company's consolidated balance sheet. Maturities of operating and finance lease liabilities, including options to extend lease terms that are reasonably certain of being exercised. The Company's lease liabilities mature as follows as of July 27, 2024:
|  | Operating leases |  | Finance leases |  | Total
2025 |  | $ | 32,806 |  |  | $ | 2,601 |  |  | $ | 35,407 |
2026 |  | 35,194 |  |  | 2,893 |  |  | 38,087 |
2027 |  | 34,781 |  |  | 2,893 |  |  | 37,674 |
2028 |  | 33,380 |  |  | 2,893 |  |  | 36,273 |
2029 |  | 32,294 |  |  | 2,893 |  |  | 35,187 |
Thereafter |  | 189,437 |  |  | 17,507 |  |  | 206,944 |
Total lease payments |  | 357,892 |  |  | 31,680 |  |  | 389,572 |
Less amount representing interest |  | 80,519 |  |  | 11,276 |  |  | 91,795 |
Present value of lease liabilities |  | $ | 277,373 |  |  | $ | 20,404 |  |  | $ | 297,777 |
The Company has approximately $21,359 of future payment obligations related to lease agreements that have not yet commenced but have been executed as of July 27, 2024. As of July 27, 2024, the Company's lease terms and discount rates are as follows:
| July 27, 2024 |  | July 29, 2023
Weighted-average remaining lease term (years) |  |  |
Operating leases | 12.0 |  | 12.6
Finance leases | 11.5 |  | 12.4
Weighted-average discount rate |  |  |
Operating leases | 4.3 | % |  | 4.2 | %
Finance leases | 8.5 | % |  | 8.5 | %
Supplemental cash flow information related to leases is as follows:
|  | Years ended
|  | July 27, 2024 |  | July 29, 2023
Cash paid for amounts in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 35,618 |  |  | $ | 34,442 |
Operating cash flows from finance leases |  | 1,802 |  |  | 1,874 |
Financing cash flows from finance leases |  | 887 |  |  | 815 |
Lease obligations obtained in exchange for right-of-use assets (non-cash) |  | 12,727 |  |  | 5,724 |
Related party leases The Company leases a supermarket from a realty firm 30% owned by certain officers of Village. The Company paid rent to related parties under this lease of $735 in both fiscal 2024 and 2023, and has a related lease obligation of $1,144 at July 27, 2024. This lease expires in fiscal 2026 with options to extend at increasing annual rent. The Company has ownership interests in four real estate partnerships. Village paid aggregate rents to three of these partnerships for leased stores of $1,827 and $1,568 in fiscal 2024 and 2023, respectively, and has related aggregate lease obligations of $15,733 at July 27, 2024. One of these partnerships is a variable interest entity, which is not consolidated as Village is not the primary beneficiary. This partnership owns one property, a stand-alone supermarket leased to the Company since 1974. Village is a general partner entitled to 33% of the partnership's profits and losses. The Company subleased the Vineland store from Wakefern under a sublease agreement which provided for annual rent of $413 in fiscal 2023. The sublease contained normal periodic rent increases and options to extend the lease. The sublease agreement was terminated upon the acquisition of the Vineland store shopping center in fiscal 2023.
LEASES | LEASES Description of leasing arrangements The Company leases 30 retail stores, as well as a commissary, the corporate headquarters and equipment at July 27, 2024. The majority of initial lease terms range from 20 to 30 years. Most of the Company’s leases contain renewal options at increased rents of five years each at the Company’s sole discretion. These options enable Village to retain the use of facilities in desirable operating areas. The composition of total lease cost is as follows:
|  |  | Years ended
| Consolidated Statement of Operations Classification |  | July 27, 2024 |  | July 29, 2023
Operating lease cost | Operating and administrative expense |  | $ | 36,989 |  |  | $ | 36,146 |
Finance lease cost |  |  |  |  |
Amortization of leased assets | Depreciation and amortization |  | 947 |  |  | 947 |
Interest on lease liabilities | Interest expense |  | 1,802 |  |  | 1,874 |
Variable lease cost | Operating and administrative expense |  | 22,044 |  |  | 21,275 |
Total lease cost |  |  | $ | 61,782 |  |  | $ | 60,242 |
As of July 27, 2024 and July 29, 2023, finance lease right-of-use assets of $9,964 and $10,912, respectively, are included in property, equipment and fixtures, net in the Company's consolidated balance sheet. Maturities of operating and finance lease liabilities, including options to extend lease terms that are reasonably certain of being exercised. The Company's lease liabilities mature as follows as of July 27, 2024:
|  | Operating leases |  | Finance leases |  | Total
2025 |  | $ | 32,806 |  |  | $ | 2,601 |  |  | $ | 35,407 |
2026 |  | 35,194 |  |  | 2,893 |  |  | 38,087 |
2027 |  | 34,781 |  |  | 2,893 |  |  | 37,674 |
2028 |  | 33,380 |  |  | 2,893 |  |  | 36,273 |
2029 |  | 32,294 |  |  | 2,893 |  |  | 35,187 |
Thereafter |  | 189,437 |  |  | 17,507 |  |  | 206,944 |
Total lease payments |  | 357,892 |  |  | 31,680 |  |  | 389,572 |
Less amount representing interest |  | 80,519 |  |  | 11,276 |  |  | 91,795 |
Present value of lease liabilities |  | $ | 277,373 |  |  | $ | 20,404 |  |  | $ | 297,777 |
The Company has approximately $21,359 of future payment obligations related to lease agreements that have not yet commenced but have been executed as of July 27, 2024. As of July 27, 2024, the Company's lease terms and discount rates are as follows:
| July 27, 2024 |  | July 29, 2023
Weighted-average remaining lease term (years) |  |  |
Operating leases | 12.0 |  | 12.6
Finance leases | 11.5 |  | 12.4
Weighted-average discount rate |  |  |
Operating leases | 4.3 | % |  | 4.2 | %
Finance leases | 8.5 | % |  | 8.5 | %
Supplemental cash flow information related to leases is as follows:
|  | Years ended
|  | July 27, 2024 |  | July 29, 2023
Cash paid for amounts in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 35,618 |  |  | $ | 34,442 |
Operating cash flows from finance leases |  | 1,802 |  |  | 1,874 |
Financing cash flows from finance leases |  | 887 |  |  | 815 |
Lease obligations obtained in exchange for right-of-use assets (non-cash) |  | 12,727 |  |  | 5,724 |
Related party leases The Company leases a supermarket from a realty firm 30% owned by certain officers of Village. The Company paid rent to related parties under this lease of $735 in both fiscal 2024 and 2023, and has a related lease obligation of $1,144 at July 27, 2024. This lease expires in fiscal 2026 with options to extend at increasing annual rent. The Company has ownership interests in four real estate partnerships. Village paid aggregate rents to three of these partnerships for leased stores of $1,827 and $1,568 in fiscal 2024 and 2023, respectively, and has related aggregate lease obligations of $15,733 at July 27, 2024. One of these partnerships is a variable interest entity, which is not consolidated as Village is not the primary beneficiary. This partnership owns one property, a stand-alone supermarket leased to the Company since 1974. Village is a general partner entitled to 33% of the partnership's profits and losses. The Company subleased the Vineland store from Wakefern under a sublease agreement which provided for annual rent of $413 in fiscal 2023. The sublease contained normal periodic rent increases and options to extend the lease. The sublease agreement was terminated upon the acquisition of the Vineland store shopping center in fiscal 2023.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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