Village Super Market, Inc. (the “Company” or “Village”) was founded in 1937.  Village operates a chain of 29twenty-nine ShopRite supermarkets, eighteen of which arefive Fairway Markets and three Gourmet Garage specialty markets located in northern New Jersey, eight in southern New Jersey, two in MarylandYork, Pennsylvania and one in northeastern Pennsylvania.   Maryland.

The Company is a member of Wakefern Food Corporation ("Wakefern"), the nation's largest retailer-owned food cooperative and owner of the ShopRite, name.Fairway and Gourmet Garage names.  This relationship provides Village many of the economies of scale in purchasing, distribution, private labelown branded products, advanced retail technology, marketing and advertising associated with chains of greater size and geographic coverage.

During fiscal 2017,2021, sales per store were $55,330$52,713 and sales per average square foot of selling space were $1,186.  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.$1,349.  

Below is a summary of the range of store sizes at July 29, 2017:

 

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 an on-siteonsite bakery, an expanded delicatessen, a variety of natural and organic foods, ethnic and international foods, prepared foods and pharmacies. OurMany of our stores emphasize a Power Alley, which features high margin, fresh, convenience offerings in an area within the store that provides quick customer entry and exit for those customers shopping for today's lunch or dinner. Certain of our stores include a Village Food Garden, featuring a restaurant style kitchen and a wide variety of store prepared specialty foods

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

 

 

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

 

 

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 hasWe have budgeted $50 million$40,000 for capital expenditures forin fiscal 2018.2022.  Planned expenditures include the construction of a new store in the Bronx, New York, a replacement store, twothree major remodels, several smaller store remodels, the purchase of Galloway store shopping center, one new Gourmet Garage store, continued expansion of ShopRite from Home and self-checkout, and various merchandising, technology, upgrade projects.

 

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

 

The Company is the second largest member of Wakefern and owns 12.9%12.2% of Wakefern’s outstanding stock as of July 29, 2017.31, 2021.  Wakefern, which was organized in 1946, is the nation’s largest retailer-owned food cooperative.  Wakefern and its 4948 shareholder members operate 345362 supermarkets and other retail formats, including 9692 stores operated by Wakefern.  Only Wakefern and its members are entitled to use the ShopRite, nameFairway and trademark,Gourmet Garage names and trademarks, and to participate in ShopRiterelated advertising and promotional programs.

The principal benefits to the Company from its relationship with Wakefern are the use of the ShopRite, nameFairway and trademark,Gourmet Garage names and trademarks, volume purchasing, ShopRite private labelstore and own branded 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 isand Fairway names are widely recognized by its customers and is a factor in their decisions about where to shop. ShopRite private labelStore and own branded products accounted for approximately 11.5%12.4% of ShopRite sales in fiscal 2017.2021.

 

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.  In addition, Nicholas Sumas, the Company’s Chief Marketing Officer,Co-President, is 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 broadcast television, radio, print and major newspaperdigital 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 workers' compensation, liability and property insurance, supplies, certain equipment purchasing, coupon processing, certain financial accounting applications, retail technology support, including shoprite.com, and the ShopRite smart phone app,gourmetgarage.com, fairway.com, branded apps and other store services.

 

Wakefern operates warehouses and distribution facilities in Elizabeth, Keasbey, Whitehouse, Dayton, Newark and Jamesburg, New Jersey and Gouldsboro, Breinigsville and Breinigsville,Hatfield Pennsylvania.  The Company and all other members of Wakefern are parties to the Wakefern Stockholders' 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 Stockholders' 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 2017, 20162021 and 2015.2020.  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, PriceRite, or The Fresh Grocer, Fairway, Gourmet Garage or Dearborn Market 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 25 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 member's 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, PriceRite, and The Fresh Grocer, Fairway, Gourmet Garage or Dearborn Market names 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.

 

As required by the Wakefern bylaws, the Company’s investment in Wakefern is pledged to Wakefern to secure the Company’s obligations to Wakefern.  In addition, five 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.

 

As of July 29, 2017,31, 2021, the Company employed approximately 6,5527,268 persons with approximately 74%70% working part-time.  Approximately 91%89% of the Company’s employees are covered by collective bargaining agreements. Contracts with the Company’s seven unions have expiration dates between July 2017March 2020 and July 2021.August 2025.  Approximately 6%10% of our associates are represented by unions whose contracts have expired or will expire within one year.  MostMany of the Company’s competitors are similarly unionized.

 

The majority of our revenues are generally not seasonal in nature. However, revenues tend to be higher during the major holidays throughout the year.

 

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 and fines or penalties.  In addition, most licenses require periodic renewals.  The Company has not experienced material difficulties with respect to obtaining or retaining licenses and registrations. 

 

ForThe supermarket business is highly competitive and characterized by narrow profit margins.  Village competes directly with multiple retail formats both in-store and online, 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. Some of the disclosure related to our competition, see Item 1A under the heading “Competitive Environment.”Company's principal competitors include Acme, Aldi, Amazon/Whole Foods, BJs, Costco, Foodtown, Giant, Kings, Lidl, Safeway, Stop & Shop, Target, Trader Joe's, Wal-Mart, Wegmans and Weis. Competition with these outlets is based on price, store location, convenience, 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.

 

As a member of the Wakefern cooperative, Village relies upon our customer focused website,websites, shoprite.com, gourmetgarage.com and fairway.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 sec.gov.

 

 

 

 

Not applicable.

 

As of July 31, 2021, finance lease right-of-use assets of $12,806 are included in Washington, New Jersey for $900.property, equipment and fixtures, net in the Company's consolidated balance sheet.

The annual rent,rental payment, including capitalizedfinance leases, and closed stores, for all of the Company's leased facilities for the year ended July 29, 201731, 2021 was approximately $17,484.$37,457. For additional information on lease obligations, see Note 7 to the consolidated financial statements.

 

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.

Superstorm Sandy devastated ourVillage's trade 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 and also incurred repair, labor and other costs as a result of the storm. The Company has property, casualty and business interruption insurance, subject to deductibles and coverage limits. During fiscal 2013, Wakefern began the process of working with our insurers to recover the damages and Village recorded estimated insurance recoveries of $4,913. In October 2013, Wakefern, as the policy holder, filed suit against the carrier seeking payment of the remaining claims due for all Wakefern members. The suit was the result of different interpretations of policy terms, including whether the policy's named storm deductible applied. On October 29, 2014, the Court issued its opinion on the matter in favor of the carrier. Based on this decision and its related impact, the Company concluded that recovery of further proceeds was not probable and recorded a $2,270 charge to Operating and administrative expense in the first quarter of fiscal 2015 to write-off the remaining insurance receivable. Wakefern continues to pursue furtherhas pursued recovery of uncollected amounts frominsurance claims on behalf of all Wakefern members through litigation against the insurance carrier and other sources. As a result,others since October 2013. Litigation over this matter has ended and the Company received an additional $940$2,733 in insurance proceeds in February 2016the 4th quarter of fiscal 2020 which was recognized as a reduction in Operatingoperating and administrative expense in fiscal 2016. Any further proceeds recovered will be recognized as they are received. As of July 29, 2017,expense. Village has collected $3,583.received a total of $6,730 related to losses incurred as a result of Superstorm Sandy.

The Company is involved in other litigation incidental to the normal course of business. 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.

 

 

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

 

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.

 

As of October 1, 2017,2021, there were approximately 790278 holders of record of Class A common stock.

 

During fiscal 2017,2021, Village paid cash dividends of $12,788.$13,050.  Dividends in fiscal 20172021 consist of $1.00 per Class A common share and $.65 per Class B common share.

During fiscal 2016,2020, Village paid cash dividends of $12,634.$12,965.  Dividends in fiscal 20162020 consist of $1.00 per Class A common share and $.65 per Class B common share.

 

Selected Financial Data

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

 

Fiscal 20162021 contains 53 weeks, with the additional week included in the fourth quarter. All other fiscal years contain 52 weeks.

 

 

Unaudited Quarterly Financial Data

(Dollars in thousands except per share amounts).

 

SALES

 

Sales were $1,604,574$2,030,330 in fiscal 2017, a decrease2021, an increase of $30,330,$225,736, or 1.9%12.5% from fiscal 2016.2020. Sales decreasedincreased $35,433, or 2.0%, due primarily to fiscal 20162021 containing 53 weeks. Same store sales, excludingExcluding the impact of the 53rd week, in fiscal 2016, were flat. Samesales increased due to the Fairway acquisition completed on May 14, 2020, the opening of the Stroudsburg replacement store on November 1, 2019 and a same store sales increase of 1.8%. Excluding the impact of the 53rd week, same store sales increased 7.5% in fiscal 2021 on a two-year stacked basis compared to fiscal 2019.

Since the beginning of the COVID-19 pandemic, we have experienced higher average basket sizes and decreased transaction counts as customers have consolidated shopping trips. Additionally, both food inflation and increased Supplemental Nutrition Assistance Program ("SNAP") benefits positively impacted sales. Same store digital sales growth accelerated through both ShopRite from Home and partnerships with online grocery picking and delivery services, increasing 68% in fiscal 2021 compared to fiscal 2020 and 219% on a two-year stacked basis. During the COVID-19 pandemic, fiscal 2021 sales at Fairway and Gourmet Garage locations in Manhattan have been significantly negatively impacted due primarily to three competitor store closingsresidential population migration out of the city and sales growth in recently remodeledless commuter and expanded stores in Stirling and Chester. These increases were offset primarily by four competitor store openings and deflation, particularly in the meat, produce and dairy departments. tourist traffic.

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 and expansions are included in same store sales immediately.

GROSS PROFIT

 

Gross profit as a percentage of sales was flatdecreased to 27.83% in fiscal 20172021 compared to 28.07% in fiscal 2016. Increased departmental2020. Higher margins associated with Fairway increased gross margin percentages (.09%profit (.22%), despite higher costs as we transition and more favorable product mix (.02%) were offset by decreased patronage dividends (.07%) and higher promotional spending (.04%).

OPERATING AND ADMINISTRATIVE EXPENSE

 

Operating and administrative expense as a percentage of sales increased .11%decreased to 24.57% in fiscal 20172021 compared to 24.65% in fiscal 2016. Fiscal 2017 includes a non-recurring credit received related to multi-employer health and welfare benefits (.05%) and fiscal 2016 includes a gain for Superstorm Sandy insurance proceeds received (.06%). Excluding these items from both periods,2020. Adjusted operating and administrative expense as a percentage of sales increased .10%to 24.76% in fiscal 2021 compared to 24.63% in fiscal 20162020.

Adjusted operating and administrative expense increased due primarily to increased occupancy costs due primarily to higher payroll (.30%the Fairway acquisition (.56%) and increased external fees and transportation costs associated with digital sales (.42%), partially offset by decreased costs related to COVID-19, including enhanced wages and benefits, security and outside sanitation services (.62%) and lower payroll and fringe benefit costs (.11%(.24%). Payroll costs increasedand fringe benefits decreased primarily due primarily to reduced operating leverage as a result of flat same storefrom higher sales, and investmentsreductions in service departments, including the newly remodeled Chester store. Fringe benefit costs decreased due primarily to lower non-union pension expense (.15%)department offerings, labor shortages and lower healthcare costs (.08%).

DEPRECIATION AND AMORTIZATION

 

Depreciation and amortization expense was $24,482, $24,101$34,195 and $23,330$31,358 in fiscal 2017, 20162021 and 2015,2020, respectively. Depreciation and amortization expense increased in fiscal 2017 and 20162021 compared to the prior yearsyear due to depreciation related to capital expenditures.assets acquired as part of the Fairway acquisition.

 

Interest expense was $4,452, $4,495$3,943 and $4,535,$2,611 in fiscal 2017, 20162021 and 2015,2020, respectively. Interest expense was flatincreased in fiscal 20172021 compared to fiscal 2016 and fiscal 2015.2020 due primarily to interest expense related to the credit agreement entered into on May 6, 2020 (see note 7 to the consolidated financial statements).

 

INTEREST INCOME

 

Interest income was $2,841, $2,506$3,633 and $2,399$4,060 in fiscal 2017, 20162021 and 2015,2020, respectively. Interest income increaseddecreased in both fiscal 2017 and 20162021 compared to fiscal 20152020 due primarily to higherlower interest rates earned onfor amounts invested in variable rate investmentsnotes receivable from Wakefern and higher amounts invested.demand deposits invested at Wakefern.

 

INCOME TAXES

 

The Company’s effective income tax rate was 41.4%, 40.8%30.7% and 26.0%21.4% in fiscal 2017, 20162021 and 2015,2020, respectively.

Income taxes in fiscal 2015 includeFiscal 2020 includes a $2,512 benefit from a federal net operating loss carryback at a rate higher than the current statutory tax benefitrate. Excluding the impact of $6,452 related to the settlement with the New Jersey Division of Taxation, net of $841 of interest and penalties accrued prior to settlement. Excluding these items,adjustments, the effective income tax rate was 41.6%29.3% in fiscal 2015.2020. The increase in the effective income tax rate in fiscal 2016 was lower than both fiscal 2017 and 20152021 is due primarily to favorable return to provision adjustments in fiscal 2020 and increased Work Opportunity Tax Credits.state taxable income in higher tax rate jurisdictions.

NET INCOME

Net income was $22,921$19,994 in fiscal 20172021 compared to $25,044$24,939 in fiscal 2016.  Fiscal 2017 includes a $465 (net of tax) non-recurring credit received related to multi-employer health and welfare benefits. Fiscal 2016 includes estimated2020.  Adjusted net income of $280 duewas $18,914 in fiscal 2021 compared to the$23,087 in fiscal year including a 53rd week and a $545 (net of tax) gain due to the recovery of insurance receivables related to Superstorm Sandy. Excluding these items from both periods,2020. Adjusted net income decreased 7%18% in fiscal 2017 compared to fiscal 2016 due primarily to flat same store sales and increased operating expenses.

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 net 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 which include long-term leases, to their carrying value.

 

Goodwill isand indefinite-lived intangible assets are tested for impairment at the end of each fiscal year, or more frequently if circumstances dictate.dictate, for impairment. 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 29, 2017.31, 2021. 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. The fair value of indefinite-lived intangible assets are estimated based on the discounted cash flow model using the relief from royalty method.

 

PATRONAGE DIVIDENDS

 

As a stockholder of Wakefern, Village earns a share of Wakefern’s earnings, which are distributed as a “patronage dividend.” This dividend is based on a distribution of substantially all of Wakefern’s operating profits for its fiscal year (which ends on or about 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 patronage dividend receivable based on these estimates was $12,655$11,860 and $13,185$11,204 at July 29, 201731, 2021 and July 30, 2016,25, 2020, 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 89 to the Consolidated Financial Statementsconsolidated financial statements 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.

 

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 29, 201731, 2021 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 3.60%2.44% at July 29, 201731, 2021 compared to 3.08%2.26% at July 30, 2016.25, 2020. Changes in the discount rate and theupdated assumptions on mortality table utilized decreasedtables and improvement scales resulted in a net decrease in the projected benefit obligation by approximately $7,567$(1,206) at July 29, 2017.31, 2021. Village evaluated the expected increase in compensation costs of 4.50% and concluded no changes in this assumption was necessary in estimating pension plan obligations and expense. The Company utilizes a liability-driven investment ("LDI") strategy. A LDI strategy focuses on maintaining a close to fully-funded status over the long-term with minimal funded status risk.  This is achieved by investing more of the plan assets in fixed income instruments to more closely match the duration of the plan liability.  The investment allocation to fixed income instruments will increase as each plans' funded status increases.  Based on the Company’s LDI strategy, the Company assumed a weighted-average assumed long-term rate of return on plan assets of 7.5% and the expected increase3.36% in compensation costs of 4 to 4.5% and concluded no changes in these assumptions were necessary in estimating pension plan obligations and expense.fiscal 2021.

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

 

Village contributed $3,000made no contributions in both fiscal 2021 and $3,524 in fiscal 2017 and 2016, respectively,2020 to these Company-sponsored pension plans. In fiscal 2020 the Company began the process of terminating the Village expectsSuper Market, Inc. Employees’ Retirement Plan. Upon satisfaction of all regulatory requirements, which is expected to contribute $3,500occur during fiscal 2022, the Company will fully fund and liquidate all plan assets to purchase annuity contracts from an insurance company for all participants who do not elect a lump sum distribution. At the time of settlement, the Company will recognize a non-cash pre-tax charge representing the plan’s remaining unrecognized losses within accumulated other comprehensive loss as of the termination date. As of July 31, 2021, the funded status of this plan is a net liability of $3,844 and the pre-tax amount included in Accumulated other comprehensive loss is $15,155. Contributions to the remaining plans are expected to be immaterial in fiscal 2018 to these plans. Substantially all contributions in 2017 and 2016 are voluntary contributions.2022.

RECENTLY ISSUED ACCOUNTING STANDARDS

LIQUIDITY and CAPITAL RESOURCES

 

CASH FLOWS

 

Net cash provided by operating activities was $46,153$52,692 in fiscal 20172021 compared to $64,101$83,948 in fiscal 2016 and $17,4682020. The change in cash flows from operating activities in fiscal 2015. Net cash provided by operating activities2021 was generated primarily bydue to changes in working capital and net income adjusted for non-cash items including depreciation and amortization, share-based compensation, deferred taxes, andloss on pension settlements, the provision to value inventories at LIFO.LIFO and the gain on sale of prescription lists and property, equipment and fixtures.