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LEASES

12 Months Ended

Jul. 26, 2025

Description of leasing arrangements

The Company leases 28 retail stores, as well as a commissary, the corporate headquarters and equipment at July 26, 2025. 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 26, 2025		July 27, 2024
Operating lease cost	Operating and administrative expense	$	36,075	$	36,989
Finance lease cost
Amortization of leased assets	Depreciation and amortization	947		947
Interest on lease liabilities	Interest expense	1,719		1,802
Variable lease cost	Operating and administrative expense	21,423		22,044

Total lease cost		$	60,164	$	61,782

As of July 26, 2025 and July 27, 2024, finance lease right-of-use assets of $9,017 and $9,964, 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 26, 2025:


	Operating leases		Finance leases		Total
2026	$	32,966	$	2,657	$	35,623
2027	35,540		2,893		38,433
2028	34,143		2,893		37,036
2029	33,008		2,893		35,901
2030	31,324		3,046		34,370
Thereafter	179,631		14,461		194,092
Total lease payments	346,612		28,843		375,455
Less amount representing interest	83,811		9,563		93,374

Present value of lease liabilities	$	262,801	$	19,280	$	282,081

The Company has no future payment obligations related to lease agreements that have not yet commenced but have been executed as of July 26, 2025.

As of July 26, 2025, the Company's lease terms and discount rates are as follows:


	July 26, 2025		July 27, 2024
Weighted-average remaining lease term (years)
Operating leases	12.1		12.0
Finance leases	10.6		11.5
Weighted-average discount rate
Operating leases	4.5	%	4.3	%
Finance leases	8.6	%	8.5	%

Supplemental cash flow information related to leases is as follows:


	Years ended
	July 26, 2025		July 27, 2024
Cash paid for amounts in the measurement of lease liabilities
Operating cash flows from operating leases	$	35,303	$	35,618
Operating cash flows from finance leases	1,719		1,802
Financing cash flows from finance leases	1,138		887
Lease obligations obtained in exchange for right-of-use assets (non-cash)	13,918		12,727

Related party leases

The Company leases a supermarket from a realty firm 30% owned by certain Village officers and members of the Board of Directors. The Company paid rent to related parties under this lease of $735 in both fiscal 2025 and 2024, and has a related lease obligation of $425 at July 26, 2025. 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 $2,159 and $1,827 in fiscal 2025 and 2024, respectively, and has related aggregate lease obligations of $15,050 at July 26, 2025.

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.

LEASES