Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 16, 2019 | Dec. 28, 2018 | |
Document Document And Entity Information [Abstract] | |||
Entity Registrant Name | UNIFI INC | ||
Entity Central Index Key | 0000100726 | ||
Trading Symbol | UFI | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 18,489,842 | ||
Entity Public Float | $ 326,065,472 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 1-10542 | ||
Entity Tax Identification Number | 112165495 | ||
Entity Address, Address Line One | 7201 West Friendly Avenue | ||
Entity Address, City or Town | Greensboro | ||
Entity Address, State or Province | North Carolina | ||
Entity Address, Postal Zip Code | 27410 | ||
City Area Code | 336 | ||
Local Phone Number | 294-4410 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 22,228 | $ 44,890 |
Receivables, net | 88,884 | 86,273 |
Inventories | 133,781 | 126,311 |
Income taxes receivable | 4,373 | 10,291 |
Other current assets | 16,356 | 6,529 |
Total current assets | 265,622 | 274,294 |
Property, plant and equipment, net | 206,787 | 205,516 |
Deferred income taxes | 2,581 | 3,288 |
Intangible assets, net | 2,170 | 2,990 |
Investments in unconsolidated affiliates | 114,320 | 112,639 |
Other non-current assets | 671 | 3,080 |
Total assets | 592,151 | 601,807 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 41,796 | 48,970 |
Accrued expenses | 16,849 | 17,720 |
Income taxes payable | 569 | 1,317 |
Current portion of long-term debt | 15,519 | 16,996 |
Total current liabilities | 74,733 | 85,003 |
Long-term debt | 111,541 | 113,553 |
Other long-term liabilities | 6,185 | 5,337 |
Income taxes payable | 470 | |
Deferred income taxes | 6,847 | 7,663 |
Total liabilities | 199,306 | 212,026 |
Commitments and contingencies | ||
Common stock, $0.10 par value (500,000,000 shares authorized; 18,462,296 and 18,352,824 shares issued and outstanding as of June 30, 2019 and June 24, 2018, respectively) | 1,846 | 1,835 |
Capital in excess of par value | 59,560 | 56,726 |
Retained earnings | 374,668 | 371,753 |
Accumulated other comprehensive loss | (43,229) | (40,533) |
Total Unifi, Inc. shareholders’ equity | 392,845 | 389,781 |
Total shareholders’ equity | 392,845 | 389,781 |
Total liabilities and shareholders’ equity | $ 592,151 | $ 601,807 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 24, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 18,462,296 | 18,352,824 |
Common stock, shares outstanding (in shares) | 18,462,296 | 18,352,824 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |||||||||
Income Statement [Abstract] | |||||||||||||||||||
Net sales | $ 179,493 | [1] | $ 179,989 | [1] | $ 167,711 | [1] | $ 181,611 | [1] | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 708,804 | $ 678,912 | $ 647,270 | ||||
Cost of sales | 642,496 | 592,484 | 553,106 | ||||||||||||||||
Gross profit | 18,342 | [2] | 13,791 | [2] | 14,156 | [2] | 20,019 | [2] | 23,904 | [3] | 16,556 | [3] | 22,676 | [3] | 23,292 | [3] | 66,308 | 86,428 | 94,164 |
Selling, general and administrative expenses | 52,690 | 56,077 | 50,829 | ||||||||||||||||
Provision (benefit) for bad debts | 308 | (38) | (123) | ||||||||||||||||
Other operating expense (income), net | 2,350 | 1,590 | (310) | ||||||||||||||||
Operating income | 10,960 | 28,799 | 43,768 | ||||||||||||||||
Interest income | (628) | (560) | (517) | ||||||||||||||||
Interest expense | 5,414 | 4,935 | 3,578 | ||||||||||||||||
Loss on extinguishment of debt | 131 | ||||||||||||||||||
Loss on sale of business | 1,662 | ||||||||||||||||||
Equity in earnings of unconsolidated affiliates | (3,968) | (5,787) | (4,230) | ||||||||||||||||
Income before income taxes | 10,011 | 30,211 | 43,275 | ||||||||||||||||
Provision (benefit) for income taxes | 7,555 | (1,491) | 10,898 | ||||||||||||||||
Net income including non-controlling interest | 2,456 | 31,702 | 32,377 | ||||||||||||||||
Less: net loss attributable to non-controlling interest | (498) | ||||||||||||||||||
Net income attributable to Unifi, Inc. | $ 1,002 | [4] | $ (1,529) | [4] | $ 1,171 | [4] | $ 1,812 | [4] | $ 10,764 | [5] | $ 176 | [5] | $ 11,802 | [5] | $ 8,960 | [5] | $ 2,456 | $ 31,702 | $ 32,875 |
Net income attributable to Unifi, Inc. per common share: | |||||||||||||||||||
Basic | $ 0.05 | [6] | $ (0.08) | [6] | $ 0.06 | [6] | $ 0.10 | [6] | $ 0.59 | [6] | $ 0.01 | [6] | $ 0.65 | [6] | $ 0.49 | [6] | $ 0.13 | $ 1.73 | $ 1.81 |
Diluted | $ 0.05 | [6] | $ (0.08) | [6] | $ 0.06 | [6] | $ 0.10 | [6] | $ 0.58 | [6] | $ 0.01 | [6] | $ 0.63 | [6] | $ 0.48 | [6] | $ 0.13 | $ 1.70 | $ 1.78 |
[1] | The fiscal quarter ended September 30, 2018 is comprised of fourteen weeks. | ||||||||||||||||||
[2] | Gross profit for the fiscal quarter ended December 30, 2018 includes the adverse impact of a raw material cost spike that could not be effectively offset with timely corresponding selling price increases. Gross profit for the fiscal quarters ended December 30, 2018, March 31, 2019 and June 30, 2019 includes the adverse impact of significant competitive pressure caused by elevated levels of polyester textured yarn imports. | ||||||||||||||||||
[3] | Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with timely corresponding selling price increases. | ||||||||||||||||||
[4] | Net income for the fiscal quarter ended June 30, 2019 includes severance charges for involuntary terminations. | ||||||||||||||||||
[5] | Net income for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain income applicable to fiscal 2015. Net income for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs. | ||||||||||||||||||
[6] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Net income including non-controlling interest | $ 2,456 | $ 31,702 | $ 32,377 |
Other comprehensive loss: | |||
Foreign currency translation adjustments | (681) | (9,250) | (2,936) |
Changes in interest rate swaps, net of tax of $671, $824 and $299, respectively | (2,235) | 2,243 | (438) |
Other comprehensive loss, net | (2,696) | (7,653) | (3,129) |
Comprehensive (loss) income including non-controlling interest | (240) | 24,049 | 29,248 |
Less: comprehensive loss attributable to non-controlling interest | (498) | ||
Comprehensive (loss) income attributable to Unifi, Inc. | (240) | 24,049 | 29,746 |
Unconsolidated Affiliates [Member] | |||
Other comprehensive loss: | |||
Foreign currency translation adjustments | $ 220 | $ (646) | $ 245 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Changes in interest rate swaps, tax | $ 671 | $ 824 | $ 299 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total Unifi, Inc. Shareholders' Equity [Member] | Non-controlling Interest [Member] |
Balance at Jun. 26, 2016 | $ 326,945 | $ 1,785 | $ 45,932 | $ 307,065 | $ (29,751) | $ 325,031 | $ 1,914 |
Balance (in shares) at Jun. 26, 2016 | 17,847,000 | ||||||
Options exercised | 2,787 | $ 31 | 2,756 | 2,787 | |||
Options exercised (in shares) | 313,000 | ||||||
Stock-based compensation | 2,182 | 2,182 | 2,182 | ||||
Conversion of restricted stock units | $ 7 | (7) | |||||
Conversion of restricted stock units (in shares) | 70,000 | ||||||
Excess tax benefit on stock- based compensation plans | 1,060 | 1,060 | 1,060 | ||||
Other comprehensive loss, net of tax | (3,129) | (3,129) | (3,129) | ||||
Deconsolidation for sale of business | (1,416) | (1,416) | |||||
Net income (loss) | 32,377 | ||||||
Net income (loss) attributable to Unifi, Inc. | 32,875 | 32,875 | 32,875 | ||||
Net income (loss) attributable to non-controlling interest | (498) | $ (498) | |||||
Balance at Jun. 25, 2017 | 360,806 | $ 1,823 | 51,923 | 339,940 | (32,880) | 360,806 | |
Balance (in shares) at Jun. 25, 2017 | 18,230,000 | ||||||
Options exercised | 219 | $ 9 | 210 | 219 | |||
Options exercised (in shares) | 86,000 | ||||||
Stock-based compensation | 5,075 | 5,075 | 5,075 | ||||
Stock-based compensation (in shares) | 4,000 | ||||||
Conversion of restricted stock units | $ 4 | (4) | |||||
Conversion of restricted stock units (in shares) | 47,000 | ||||||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (479) | $ (1) | (478) | (479) | |||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (in shares) | (14,000) | ||||||
Other comprehensive loss, net of tax | (7,653) | (7,653) | (7,653) | ||||
Adoption of ASU No.2018-02 | Accounting Standards Update No. 2018-02 [Member] | 111 | 111 | 111 | ||||
Net income (loss) | 31,702 | ||||||
Net income (loss) attributable to Unifi, Inc. | 31,702 | 31,702 | 31,702 | ||||
Balance at Jun. 24, 2018 | $ 389,781 | $ 1,835 | 56,726 | 371,753 | (40,533) | 389,781 | |
Balance (in shares) at Jun. 24, 2018 | 18,352,824 | 18,353,000 | |||||
Options exercised | $ 483 | $ 6 | 477 | 483 | |||
Options exercised (in shares) | 69,000 | 61,000 | |||||
Stock-based compensation | $ 2,892 | $ 1 | 2,891 | 2,892 | |||
Stock-based compensation (in shares) | 10,000 | ||||||
Conversion of restricted stock units | $ 6 | (6) | |||||
Conversion of restricted stock units (in shares) | 61,000 | ||||||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (530) | $ (2) | (528) | (530) | |||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (in shares) | (23,000) | ||||||
Other comprehensive loss, net of tax | (2,696) | (2,696) | (2,696) | ||||
Adoption of the new revenue recognition guidance | ASU No. 2014-09 [Member] | 459 | 459 | 459 | ||||
Net income (loss) | 2,456 | ||||||
Net income (loss) attributable to Unifi, Inc. | 2,456 | 2,456 | 2,456 | ||||
Balance at Jun. 30, 2019 | $ 392,845 | $ 1,846 | $ 59,560 | $ 374,668 | $ (43,229) | $ 392,845 | |
Balance (in shares) at Jun. 30, 2019 | 18,462,296 | 18,462,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Cash and cash equivalents at beginning of year | $ 44,890 | $ 35,425 | $ 16,646 |
Operating activities: | |||
Net income including non-controlling interest | 2,456 | 31,702 | 32,377 |
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: | |||
Equity in earnings of unconsolidated affiliates | (3,968) | (5,787) | (4,230) |
Distributions received from unconsolidated affiliates | 2,647 | 12,236 | 2,322 |
Depreciation and amortization expense | 23,003 | 22,585 | 20,368 |
Loss on extinguishment of debt | 131 | ||
Loss on sale of business | 1,662 | ||
Non-cash compensation expense | 3,258 | 5,823 | 2,983 |
Excess tax benefit on stock-based compensation plans | (1,060) | ||
Deferred income taxes | 423 | (5,797) | 6,886 |
Other, net | (691) | (277) | (1,112) |
Changes in assets and liabilities: | |||
Receivables, net | (2,923) | (7,529) | 1,586 |
Inventories | (15,838) | (18,198) | (8,519) |
Other current assets | (1,331) | (382) | (1,824) |
Income taxes | 4,754 | (573) | (4,724) |
Accounts payable and accrued expenses | (5,813) | 8,674 | (1,207) |
Other non-current assets | 151 | (229) | (233) |
Other non-current liabilities | 1,025 | (4,913) | 787 |
Net cash provided by operating activities | 7,284 | 37,335 | 46,062 |
Investing activities: | |||
Capital expenditures | (24,871) | (25,029) | (33,190) |
Other, net | (65) | (1,846) | (192) |
Net cash used in investing activities | (24,936) | (26,875) | (33,382) |
Financing activities: | |||
Proceeds from ABL Revolver | 108,100 | 120,500 | 121,800 |
Payments on ABL Revolver | (116,800) | (101,700) | (118,700) |
Payments on ABL Term Loan | (7,500) | (10,000) | (9,750) |
Payments on capital lease obligations | (7,019) | (7,060) | (4,700) |
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (802) | (206) | |
Proceeds from stock option exercises | 483 | 219 | 2,787 |
Payments of debt financing fees | (720) | ||
Excess tax benefit on stock-based compensation plans | 1,060 | ||
Other | (368) | (450) | (493) |
Net cash (used in) provided by financing activities | (4,626) | 1,303 | 6,504 |
Effect of exchange rate changes on cash and cash equivalents | (384) | (2,298) | (405) |
Net (decrease) increase in cash and cash equivalents | (22,662) | 9,465 | 18,779 |
Cash and cash equivalents at end of year | 22,228 | $ 44,890 | 35,425 |
ABL Term Loan [Member] | |||
Financing activities: | |||
Proceeds from issuance of secured debt | $ 20,000 | $ 14,500 |
Background
Background | 12 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Background | Overview Unifi, Inc., a New York corporation formed in 1969 (together with its subsidiaries, “UNIFI,” the “Company,” “we,” “us” or “our”), is a multi-national company that manufactures and sells innovative recycled and synthetic products made from polyester and nylon primarily to other yarn manufacturers and knitters and weavers (UNIFI’s direct customers) that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial and other end-use markets (UNIFI’s indirect customers). We refer to these indirect customers as “brand partners.” Polyester yarns include partially oriented yarn (“POY”), textured, solution and package dyed, twisted, beamed and draw wound yarns, and each is available in virgin or recycled varieties. Recycled solutions, made from both pre-consumer and post-consumer waste, include plastic bottle flake (“Flake”) and polyester polymer beads (“Chip”). Nylon yarns include virgin or recycled textured, solution dyed and spandex covered yarns. UNIFI maintains one of the textile industry’s most comprehensive product offerings that include a range of specialized, premium value-added (“PVA”) and commodity solutions, with principal geographic markets in the Americas, Asia and Europe. UNIFI has direct manufacturing operations in four countries and participates in joint ventures with operations in Israel, Mexico and the United States (“U.S.”), the most significant of which is a 34% non-controlling partnership interest in Parkdale America, LLC (“PAL”), a significant unconsolidated affiliate that produces cotton and synthetic yarns for sale to the global textile industry and apparel market. All dollar amounts, except per share amounts, are presented in thousands (000s), unless otherwise noted. Fiscal Year The fiscal year for Unifi, Inc., its domestic subsidiaries and its subsidiary in El Salvador ends on the Sunday in June or July nearest June 30 of each year. During fiscal 2019, Unifi, Inc. changed its fiscal year end from the last Sunday in June to the Sunday in June or July nearest June 30 of each year. Unifi, Inc.’s fiscal 2019, 2018 and 2017 ended on June 30, 2019, June 24, 2018 and June 25, 2017, respectively. Unifi, Inc.’s remaining material operating subsidiaries’ fiscal years end on June 30. For fiscal 2018 and 2017, there were no significant transactions or events that occurred between Unifi, Inc.’s fiscal year end and such wholly owned subsidiaries’ subsequent fiscal year ends. Unifi, Inc.’s fiscal 2019 consisted of 53 weeks, while fiscal 2018 and 2017 each consisted of 52 weeks. Reclassifications Certain reclassifications of prior fiscal years’ data have been made to conform to the current presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Notes To Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies UNIFI follows U.S. generally accepted accounting principles (“GAAP”). The significant accounting policies described below, together with the other notes to the accompanying consolidated financial statements that follow, are an integral part of the consolidated financial statements. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Unifi, Inc. and its subsidiaries in which it maintains a controlling financial interest. All account balances and transactions between Unifi, Inc. and the subsidiaries which it controls have been eliminated. Investments in entities in which UNIFI is able to exercise significant influence, but not control, are accounted for using the equity method. For transactions with entities accounted for under the equity method, any intercompany profits on amounts still remaining are eliminated. Amounts originating from any deferral of intercompany profits are recorded within the account balance to which the transaction specifically relates (e.g., inventory). Only upon settlement of the intercompany transaction with a third party is the deferral of the intercompany profit recognized by UNIFI. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the period. UNIFI’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results may vary from these estimates. These estimates are reviewed periodically to determine if a change is required. Cash and Cash Equivalents Cash equivalents are defined as highly liquid, short-term investments having an original maturity of three months or less. Book overdrafts, for which the bank has not advanced cash, if any, are reclassified to accounts payable and reflected as an offset thereto within the accompanying consolidated statements of cash flows. Receivables Receivables are stated at their net realizable value. Allowances are provided for known and potential losses arising from quality claims and for amounts owed by customers. Reserves for quality claims are based on historical claim experience and known pending claims and are recorded as a reduction of net sales. The allowance for uncollectible accounts is recorded against operating income and reflects UNIFI’s best estimate of probable losses inherent in its accounts receivable portfolio determined on the basis of historical write off experience, aging of trade receivables, specific allowances for known troubled accounts and other currently available information. Customer accounts are written off against the allowance for uncollectible accounts when they are no longer deemed to be collectible. Inventories UNIFI’s inventories are valued at the lower of cost or net realizable value, with the cost for the majority of its inventory determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies are valued using the average cost method. UNIFI’s estimates for inventory reserves for obsolete, slow-moving or excess inventories are based upon many factors, including historical recovery rates, the aging of inventories on-hand, inventory turnover, the expected net realizable value of specific products, and current economic conditions. Debt Issuance Costs Debt issuance costs are recorded to long-term debt and amortized as additional interest expense following either the effective interest method or the straight-line method. In the event of any prepayment of its debt obligations, UNIFI accelerates the recognition of a pro-rata amount of issuance costs and records an extinguishment of debt. Property, Plant and Equipment Property, plant and equipment (“PP&E”) are stated at historical cost less accumulated depreciation. Plant and equipment under capital leases are stated at the present value of minimum lease payments less accumulated amortization. Additions or improvements that substantially extend the useful life of a particular asset are capitalized. Depreciation is calculated primarily utilizing the straight-line method over the following useful lives: Asset categories Useful lives in years Land improvements Five to Twenty Buildings and improvements Fifteen to Forty Machinery and equipment Two to Twenty-five Computer, software and office equipment Three to Seven Internal software development costs Three Transportation equipment Three to Fifteen Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining term of the lease. Assets under capital leases are amortized in a manner consistent with UNIFI’s normal depreciation policy if ownership is transferred by the end of the lease or if there is a bargain purchase option. If such ownership criteria are not met, amortization occurs over the shorter of the lease term or the asset’s useful life. UNIFI capitalizes its costs of developing internal software when the software is used as an integral part of its manufacturing or business processes and the technological feasibility has been established. Internal software costs are amortized over a period of three years and, in accordance with the nature of the project, charged to cost of sales or selling, general and administrative (“SG&A”) expenses. Fully depreciated assets are retained in cost and accumulated depreciation accounts until they are removed from service. In the case of disposals, asset costs and related accumulated depreciation amounts are removed from the accounts, and the net amounts, less proceeds from disposal, are included in the determination of net income and presented within other operating expense (income), net. Repair and maintenance costs related to PP&E, which do not significantly increase the useful life of an existing asset or do not significantly alter, modify or change the capabilities or production capacity of an existing asset, are expensed as incurred. Interest is capitalized for capital projects requiring a construction period. PP&E and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Long-lived assets to be disposed of by sale within one year are classified as held for sale and are reported at the lower of their carrying amount or fair value less cost to sell. Depreciation ceases for all assets classified as held for sale. Long-lived assets to be disposed of other than by sale are classified as held for use until they are disposed of and these assets are reported at the lower of their carrying amount or estimated fair value. Intangible Assets Finite-lived intangible assets, such as customer lists, non-compete agreements, licenses, trademarks and patents, are amortized over their estimated useful lives. UNIFI periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets are reviewed for impairment or obsolescence whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. UNIFI has no intangibles with indefinite lives. Investments in Unconsolidated Affiliates UNIFI evaluates its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Derivative Instruments All derivatives are carried on the balance sheet at fair value and are classified according to their asset or liability position and the expected timing of settlement. On the date the derivative contract is entered into, UNIFI may designate the derivative into one of the following categories: • Fair value hedge – a hedge of the fair value of a recognized asset or liability or a firm commitment. Changes in the fair value of derivatives designated and qualifying as fair value hedges, as well as the offsetting gains and losses on the hedged items, are reported in income in the same period. • Cash flow hedge – a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability. The effective portion of gains and losses on cash flow hedges are recorded in accumulated other comprehensive loss, until the underlying transactions are recognized in income. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to current period earnings on the same line item as the underlying transaction. • Net investment hedge – if a derivative is used as a foreign currency hedge of a net investment in a foreign operation, its changes in fair value, to the extent effective as a hedge, are recorded in foreign currency translation adjustments in accumulated other comprehensive loss. Derivatives that are not designated for hedge accounting are marked to market at the end of each period with the changes in fair value recognized in current period earnings. Settlements of any fair value or cash flow derivative contracts are classified as cash flows from operating activities. Fair Value Measurements The accounting guidance for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). Fair value is based on assumptions that market participants would use when pricing the asset or liability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. UNIFI uses the following to measure fair value for its assets and liabilities: • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either indirectly or directly. • Level 3 – Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different tax years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which these items are expected to reverse. UNIFI reviews deferred tax assets to determine if it is more-likely-than-not they will be realized. If UNIFI determines it is not more-likely-than-not that a deferred tax asset will be realized, it records a valuation allowance to reverse the previously recognized benefit. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. UNIFI recognizes tax benefits related to uncertain tax positions if it believes it is more-likely-than-not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. UNIFI accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Penalties and interest related to income tax expense, if incurred, is included in provision for income taxes. Stock-Based Compensation Compensation expense for stock awards is based on the grant date fair value and expensed over the applicable vesting period. UNIFI has a policy of issuing new shares to satisfy award exercises and conversions. For awards with a service condition and a graded vesting schedule, UNIFI has elected an accounting policy of recognizing compensation cost on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was, in-substance, multiple awards. Foreign Currency Translation Assets and liabilities of foreign subsidiaries whose functional currency is other than the U.S. Dollar (“USD”) are translated at exchange rates existing at the respective balance sheet dates. Translation gains and losses are not included in determining net income, but are presented in a separate component of accumulated other comprehensive loss. UNIFI translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Transaction gains and losses are included within other operating expense (income), net. Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which primarily occurs at a point in time, upon either shipment or delivery to the customer. Revenue is also recognized over time for certain contracts in which the associated inventory produced has no alternative use Cost of Sales The major components of cost of sales are: (i) materials and supplies, (ii) labor and fringe benefits, (iii) utility and overhead costs associated with manufactured products, (iv) cost of products purchased for resale, (v) shipping, handling and warehousing costs, (vi) research and development costs, (vii) depreciation expense and (viii) all other costs related to production or service activities. Shipping, Handling and Warehousing Costs Shipping, handling and warehousing costs include costs to store goods prior to shipment, prepare goods for shipment and physically move goods to customers. Research and Development Costs Research and development costs include employee costs, production costs related to customer samples, operating supplies, consulting fees and other miscellaneous costs. The cost of research and development is charged to expense as incurred. Research and development costs were as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Research and development costs $ 12,359 $ 7,792 $ 7,177 Selling, General and Administrative Expenses The major components of SG&A expenses are: (i) costs of UNIFI’s sales force, marketing and advertising efforts, and commissions, (ii) costs of maintaining UNIFI’s general and administrative support functions including executive management, information technology, human resources, legal and finance, (iii) amortization of intangible assets and (iv) all other costs required to be classified as SG&A expenses. Advertising Costs Advertising costs are expensed as incurred and included in SG&A expenses. UNIFI’s advertising costs include spending for items such as consumer marketing and branding initiatives, promotional items, trade shows, sponsorships and other programs. Advertising costs were as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Advertising costs $ 3,639 $ 3,439 $ 3,070 Self-Insurance UNIFI self-insures certain risks such as employee healthcare claims. Reserves for incurred but not reported healthcare claims are estimated using historical data, the timeliness of claims processing, medical trends, inflation and any changes, if applicable, in the nature or type of the plan. Contingencies At any point in time, UNIFI may be a party to various pending legal proceedings, claims or environmental actions. Accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and estimable. Any amounts accrued are not discounted. Legal costs such as outside counsel fees and expenses are charged to expense as incurred. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Issued and Pending Adoption In February Leases (Topic 842) Upon adoption, UNIFI expects to make an accounting policy election to not reflect leases with an initial term of 12 months or less in the consolidated balance sheets, recognizing those respective lease payments in the consolidated statements of operations on a straight-line basis over the respective lease term. UNIFI also plans to elect the package of transition practical expedients which would allow UNIFI to carry forward prior conclusions related to: (i) whether any expired or existing contracts are leases or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for existing leases. UNIFI does not expect to elect the hindsight practical expedient. The new lease guidance requires a modified retrospective transition approach and provides an optional transition method to either (a) record current existing leases as of the effective date or (b) record leases existing as of the earliest comparative period presented in the financial statements. UNIFI expects to adopt the new lease guidance utilizing the optional modified retrospective transition method, applied at the date of adoption, recording existing leases as of the effective date, July 1, 2019. Under this method, no adjustment to comparative prior periods is required and UNIFI expects no adjustment will be necessary to the opening retained earnings balance for fiscal 2020. Accordingly, financial statement information and disclosures required under the new lease guidance will not be provided for dates and periods prior to July 1, 2019. UNIFI continues to assess the effect the guidance will have on its existing accounting policies and the consolidated financial statements, and upon adoption, expects there will be approximately a 2% increase in total assets on the consolidated balance sheets due to the recognition of right-of-use assets and corresponding lease liabilities. Relating to the transition to ASU No. 2016-02, PAL expects to adopt the new lease guidance in its fiscal 2020. PAL is currently evaluating the impact of the new lease guidance. Recently Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . Subsequent ASUs were issued to provide clarity and to defer the effective date of the new guidance. The new revenue recognition guidance eliminates the transaction- and industry-specific revenue recognition guidance under current GAAP and replaces it with a principles-based approach. Upon adoption in fiscal 2019, UNIFI determined that the impact of the new revenue recognition guidance was immaterial. Accordingly, UNIFI utilized the modified retrospective method of adoption and recorded the impact of open contracts as of June 24, 2018 as an adjustment to the opening balance of fiscal 2019 retained earnings, and prior period balances were not adjusted. “ Revenue earned in fourth quarter fiscal 2018 related to contracts open at June 24, 2018 $ 8,593 Less associated cost of sales 7,992 Less associated income tax 142 Adjustment to retained earnings for contracts open at June 24, 2018 $ 459 In July 2015, the FASB issued ASU No. 2015-11, Inventory In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business There have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a significant impact on UNIFI’s consolidated financial statements. |
Sale of Renewables
Sale of Renewables | 12 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Sale of Renewables | 4. Sale of Renewables On December 23, 2016, UNIFI, through a wholly owned foreign subsidiary, entered into a Membership Interest Purchase Agreement (the “RR Agreement”) to sell its 60% equity ownership interest in Repreve Renewables, LLC (“Renewables”) to its existing third-party joint venture partner for $500 in cash and release of certain debt obligations (the “RR Sale”). UNIFI had no continuing involvement in the operations of Renewables subsequent to December 23, 2016. In connection with the RR Sale, UNIFI recognized a $1,662 loss on sale of business, reflecting the difference between the cash consideration received and UNIFI’s portion of Renewables’ net assets on the date of the RR Agreement. The operations of Renewables during the period of UNIFI’s ownership are not reflected as discontinued operations as (i) the enterprise did not have a major effect on UNIFI’s consolidated operations and financial results, (ii) the disposal did not represent a strategic shift and (iii) the enterprise was not an individually significant component. The operations of Renewables up to the date of the RR Sale are reflected in continuing operations within the accompanying consolidated statements of income. The loss on the sale of the business is not relevant to UNIFI’s core operations and is not reflective of the primary revenue or expense activity of UNIFI. Therefore, UNIFI has recorded the loss on the sale of Renewables below operating income within the accompanying consolidated statements of income. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 5. Revenue Recognition In fiscal 2019, UNIFI adopted the new revenue recognition guidance. Details surrounding the impact of adoption and the additional disclosures follow. The following table presents disaggregated revenues for UNIFI: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Third-party textile manufacturer $ 700,077 $ 670,239 $ 639,685 Service 8,727 8,673 7,585 Net sales $ 708,804 $ 678,912 $ 647,270 Third-Party Textile Manufacturer Third-party textile manufacturer revenue is primarily generated through sales to direct customers. Such sales represent satisfaction of UNIFI’s performance obligations required by the associated revenue contracts. Each of UNIFI’s reportable segments derives revenue from sales to third-party textile manufacturers. Service Revenue Service revenue is primarily generated, as services are rendered, through fulfillment of toll manufacturing of textile products or transportation services governed by written agreements. Such toll manufacturing and transportation services represent satisfaction of UNIFI’s performance obligations required by the associated revenue contracts. The Polyester Segment derives service revenue for toll manufacturing, and the All Other category derives service revenue for transportation services. Variable Consideration Volume-based incentives Volume-based incentives involve rebates or refunds of cash that are redeemable if the customer satisfies certain order volume thresholds during a defined time period. Under these incentive programs, UNIFI estimates the anticipated rebate to be paid and allocates a portion of the estimated cost of the rebate to each underlying sales transaction with the customer. Product claims UNIFI generally offers customers claims support or remuneration for defective products. UNIFI estimates the amount of its product sales that may be claimed as defective by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. For all variable consideration, where appropriate, UNIFI estimates the amount using the expected value, which takes into consideration historical experience, current contractual requirements, specific known market events and forecasted customer buying and payment patterns. Overall, these reserves reflect UNIFI’s best estimates of the amount of consideration to which the customer is entitled based on the terms of the contracts. Impact of adoption of new revenue recognition guidance The following table summarizes the impact of the adoption of the new revenue recognition guidance on UNIFI's applicable financial statement line items for fiscal 2019. Any impact to other financial statement line items is insignificant and excluded from the below. Financial Statement Line Item Treatment under previous Revenue Recognition Guidance Adjustments in connection with New Revenue Recognition Guidance As reported under New Revenue Recognition Guidance Revenue $ 709,538 $ (734 ) $ 708,804 Cost of sales $ 643,212 $ (716 ) $ 642,496 Gross profit (loss) $ 66,326 $ (18 ) $ 66,308 Inventory $ 141,012 $ (7,231 ) $ 133,781 Contract assets $ — $ 7,794 $ 7,794 Contract assets represents the estimated revenue attributable to UNIFI in connection with completed performance obligations under contracts with customers for which revenue is recognized over time. The contract assets are classified to receivables when the right to payment becomes unconditional. The $7,794 change in the contract assets balance from June 24, 2018 to June 30, 2019 represents the routine recognition of satisfied performance obligations, in connection with adoption of and treatment under the new revenue recognition guidance. |
Receivables, Net
Receivables, Net | 12 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Receivables, Net | 6. Receivables, Net Receivables, net consists of the following: June 30, 2019 June 24, 2018 Customer receivables $ 89,495 $ 87,633 Allowance for uncollectible accounts (2,338 ) (2,059 ) Reserves for quality claims (961 ) (564 ) Net customer receivables 86,196 85,010 Other receivables 2,688 1,263 Total receivables, net $ 88,884 $ 86,273 Other receivables includes refunds due for non-income related taxes and refunds due from vendors. The changes in UNIFI’s allowance for uncollectible accounts and reserves for quality claims were as follows: Allowance for Uncollectible Accounts Reserves for Quality Claims Balance at June 26, 2016 $ (2,839 ) $ (795 ) Credited (charged) to costs and expenses 123 (2,719 ) Translation activity 34 3 Deductions 460 2,233 Balance at June 25, 2017 $ (2,222 ) $ (1,278 ) Credited (charged) to costs and expenses 38 (821 ) Translation activity 125 (9 ) Deductions — 1,544 Balance at June 24, 2018 $ (2,059 ) $ (564 ) Charged to costs and expenses (308 ) (2,019 ) Translation activity (9 ) 5 Deductions 38 1,617 Balance at June 30, 2019 $ (2,338 ) $ (961 ) Amounts credited (charged) to costs and expenses for the allowance for uncollectible accounts are reflected in the provision (benefit) for bad debts and deductions represent amounts written off which were deemed to not be collectible, net of any recoveries. Amounts charged to costs and expenses for the reserves for quality claims are primarily reflected as a reduction of net sales and deductions represent adjustments to either increase or decrease claims based on negotiated amounts or actual versus estimated claim differences. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories consists of the following: June 30, 2019 June 24, 2018 Raw materials $ 55,531 $ 45,448 Supplies 9,020 7,314 Work in process 8,510 8,834 Finished goods 63,111 66,314 Gross inventories 136,172 127,910 Inventory reserves (2,391 ) (1,599 ) Total inventories $ 133,781 $ 126,311 The cost for the majority of UNIFI’s inventories is determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies of $45,122 and $39,870 as of June 30, 2019 and June 24, 2018, respectively, were valued under the average cost method. In connection with UNIFI’s utilization of the modified retrospective method of adopting the new revenue recognition guidance, prior period balances were not adjusted to reflect the impact that the new revenue recognition guidance would have had on prior periods. See Note 5, “Revenue Recognition,” for further detail regarding the impact of the new revenue recognition guidance to fiscal 2019. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Jun. 30, 2019 | |
Other Assets Current [Abstract] | |
Other Current Assets | 8. Other Current Assets Other current assets consists of the following: June 30, 2019 June 24, 2018 Contract assets $ 7,794 $ — Vendor deposits 4,187 3,703 Value-added taxes receivable 2,519 1,024 Prepaid expenses 1,856 1,802 Total other current assets $ 16,356 $ 6,529 Vendor deposits primarily relates to down payments made toward the purchase of inventory. Value-added taxes receivable relates to recoverable taxes associated with the sales and purchase activities of UNIFI’s foreign operations. Prepaid expenses consists of advance payments for routine operating expenses. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 9. Property, Plant and Equipment, Net PP&E, net consists of the following: June 30, 2019 June 24, 2018 Land $ 3,138 $ 2,860 Land improvements 15,249 15,118 Buildings and improvements 161,566 157,354 Assets under capital leases 31,897 34,568 Machinery and equipment 603,950 589,237 Computers, software and office equipment 23,011 19,723 Transportation equipment 5,809 5,029 Construction in progress 6,483 8,651 Gross PP&E 851,103 832,540 Less: accumulated depreciation (636,135 ) (619,654 ) Less: accumulated amortization – capital leases (8,181 ) (7,370 ) Total PP&E, net $ 206,787 $ 205,516 Assets under capital leases consists of the following: June 30, 2019 June 24, 2018 Machinery and equipment $ 22,991 $ 24,467 Transportation equipment 5,078 6,273 Building improvements 3,828 3,828 Gross assets under capital leases $ 31,897 $ 34,568 Depreciation expense and repair and maintenance expenses were as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Depreciation expense $ 21,602 $ 21,109 $ 18,483 Repair and maintenance expenses 21,226 19,761 18,319 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 10. Intangible Assets, Net Intangible assets, net consists of the following: June 30, 2019 June 24, 2018 Customer lists $ 23,615 $ 23,615 Non-compete agreements 1,875 1,925 Trademarks, licenses and other 416 185 Total intangible assets, gross 25,906 25,725 Accumulated amortization – customer lists (23,166 ) (22,527 ) Accumulated amortization – non-compete agreements (438 ) (108 ) Accumulated amortization – trademarks, licenses and other (132 ) (100 ) Total accumulated amortization (23,736 ) (22,735 ) Total intangible assets, net $ 2,170 $ 2,990 In fiscal 2007, UNIFI purchased certain texturing operations that are included in the Polyester Segment. The valuation of the customer list acquired was determined by estimating the discounted net earnings attributable to the customer relationships that were purchased after considering items such as possible customer attrition. Based on the length and trend of the projected cash flows, an estimated useful life of 13 years was determined. The customer list is amortized through December 2019, in a manner which reflects the expected economic benefit that will be received over its 13-year life. The non-compete agreement was fully amortized in fiscal 2018 and removed from the accompanying consolidated balance sheets accordingly. A customer list and a non-compete agreement were recorded in connection with a business combination in fiscal 2014, utilizing similar valuation methods as described in the above fiscal 2007 transaction. The customer list is amortized over a nine-year estimated useful life based on the expected economic benefit. The non-compete agreement was fully amortized in December 2018 and removed from the accompanying consolidated balance sheets accordingly. In fiscal 2018, UNIFI purchased certain dyeing assets that are included in the Polyester Segment. The associated non-compete agreement was valued at $1,875 and is amortized using the straight-line method over its five-year term. UNIFI capitalizes costs incurred to register trademarks for REPREVE ® Amortization expense for intangible assets consists of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Customer lists $ 639 $ 843 $ 1,020 Non-compete agreements 379 205 287 Trademarks, licenses and other 94 62 74 Total amortization expense $ 1,112 $ 1,110 $ 1,381 The following table presents the expected intangible asset amortization for the next five fiscal years: Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Expected amortization $ 831 $ 538 $ 473 $ 328 $ — |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Jun. 30, 2019 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | 11. Other Non-Current Assets Other non-current assets consists of the following: June 30, 2019 June 24, 2018 Interest rate swaps $ — $ 2,259 Other 671 821 Total other non-current assets $ 671 $ 3,080 On January 5, 2017, February 24, 2017 and June 1, 2017, UNIFI entered into three interest rate swaps with Wells Fargo Bank, N.A., with notional amounts of $20,000 (“Swap A”), $30,000 (“Swap B”) and $25,000 (“Swap C”), respectively. The combined designated hedges fix the London Interbank Offer Rate (“LIBOR”) at approximately 1.9% for $75,000 of variable rate borrowings through May 24, 2022. In accordance with hedge accounting, each swap is reflected on the accompanying consolidated balance sheets at fair value with a corresponding balance in accumulated other comprehensive loss, and impacts earnings commensurate with the forecasted transaction. As of June 30, 2019, the associated fair value of the swaps are reflected in other long-term liabilities. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jun. 30, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 12. Accrued Expenses Accrued expenses consists of the following: June 30, 2019 June 24, 2018 Payroll and fringe benefits $ 9,775 $ 10,833 Utilities 2,061 2,594 Severance 2,058 362 Property taxes 999 835 Current portion of supplemental post-employment plan 411 508 Other 1,545 2,588 Total accrued expenses $ 16,849 $ 17,720 Severance consists of payments due to former executives and employees pursuant to corresponding employment and severance agreements. Other consists primarily of employee-related claims and payments, interest, marketing expenses, freight expenses, rent, other non-income related taxes and deferred revenue. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 13. Long-Term Debt Debt Obligations The following table presents the total balances outstanding for UNIFI’s debt obligations, their scheduled maturity dates and the weighted average interest rates for borrowings as well as the applicable current portion of long-term debt: Weighted Average Scheduled Interest Rate as of Principal Amounts as of Maturity Date June 30, 2019 June 30, 2019 June 24, 2018 ABL Revolver December 2023 3.7% $ 19,400 $ 28,100 ABL Term Loan (1) December 2023 3.3% 97,500 85,000 Capital lease obligations (2) 3.9% 11,118 18,107 Total debt 128,018 131,207 Current ABL Term Loan (10,000 ) (10,000 ) Current portion of capital lease obligations (5,519 ) (6,996 ) Unamortized debt issuance costs (958 ) (658 ) Total long-term debt $ 111,541 $ 113,553 (1) Includes the effects of interest rate swaps. (2) Scheduled maturity dates for capital lease obligations range from August 2019 to November 2027. ABL Facility On December 18, 2018, Unifi, Inc. and certain of its subsidiaries entered into a Third Amendment to Amended and Restated Credit Agreement and Second Amendment to Amended and Restated Guaranty and Security Agreement (the “2018 Amendment”). The 2018 Amendment amended the Amended and Restated Credit Agreement, dated as of March 26, 2015, by and among Unifi, Inc. and a syndicate of lenders, as previously amended (as further amended by the 2018 Amendment, the “Credit Agreement”). The Credit Agreement provides for a $200,000 senior secured credit facility (the “ABL Facility”), including a $100,000 revolving credit facility (the “ABL Revolver”) and a term loan that can be reset up to a maximum amount of $100,000, once per fiscal year, if certain conditions are met (the “ABL Term Loan”). The ABL Facility has a maturity date of December 18, 2023. The 2018 Amendment made the following changes to the Credit Agreement, among others: (i) extended the maturity date from March 26, 2020 to December 18, 2023 and (ii) decreased the Applicable Margin (as defined in the Credit Agreement) pricing structure for Base Rate Loans (as defined in the Credit Agreement) and LIBOR Rate Loans (as defined in the Credit Agreement) by 25 basis points. In addition, in connection with the 2018 Amendment, the principal amount of the ABL Term Loan was reset from $80,000 to $100,000. Net proceeds from the ABL Term Loan reset were used to pay down the amount outstanding on the ABL Revolver. Additionally, the 2018 Amendment resulted in a loss on extinguishment of debt of $131 in connection with the write-off of certain unamortized debt issuance costs. The ABL Facility is secured by a first-priority perfected security interest in substantially all owned property and assets (together with all proceeds and products) of Unifi, Inc., Unifi Manufacturing, Inc. and certain subsidiary guarantors (collectively, the “Loan Parties”). It is also secured by a first-priority security interest in all (or 65% in the case of UNIFI’s first-tier controlled foreign subsidiary, as required by the lenders) of the stock of (or other ownership interests in) each of the Loan Parties (other than Unifi, Inc.) and certain subsidiaries of the Loan Parties, together with all proceeds and products thereof. If excess availability under the ABL Revolver falls below the defined Trigger Level (as defined in the Credit Agreement), a financial covenant requiring the Loan Parties to maintain a fixed charge coverage ratio on a quarterly basis of at least 1.05 to 1.00 becomes effective. The Trigger Level as of June 30, 2019 was $24,688. In addition, the ABL Facility contains restrictions on particular payments and investments, including certain restrictions on the payment of dividends and share repurchases. Subject to specific provisions, the ABL Term Loan may be prepaid at par, in whole or in part, at any time before the maturity date, at UNIFI’s discretion. ABL Facility borrowings bear interest at LIBOR plus an applicable margin of 1.25% to 1.75%, or the Base Rate (as defined below) plus an applicable margin of 0.25% to 0.75%, with interest currently being paid on a monthly basis. The applicable margin is based on (i) the excess availability under the ABL Revolver and (ii) the consolidated leverage ratio, calculated as of the end of each fiscal quarter. The Base Rate means the greater of (a) the prime lending rate as publicly announced from time to time by Wells Fargo Bank, National Association, (b) the Federal Funds Rate (as defined in the Credit Agreement) plus 0.5% and (c) LIBOR plus 1.0%. UNIFI’s ability to borrow under the ABL Revolver is limited to a borrowing base equal to specified percentages of eligible accounts receivable and inventories and is subject to certain conditions and limitations. There is also a monthly unused line fee under the ABL Revolver of 0.25%. As of June 30, 2019, UNIFI was in compliance with all financial covenants in the Credit Agreement and the excess availability under the ABL Revolver was $61,501. At June 30, 2019, the fixed charge coverage ratio was 1.22 to 1.00 and UNIFI had $400 of standby letters of credit, none of which had been drawn upon. Management maintains the capability to quickly and easily improve the fixed charge coverage ratio utilizing existing cash and cash equivalents. Capital Lease Obligations There were no significant capital leases established in fiscal 2019 or 2018. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the following five fiscal years and thereafter: Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Thereafter ABL Revolver $ — $ — $ — $ — $ 19,400 $ — ABL Term Loan 10,000 10,000 10,000 10,000 57,500 — Capital lease obligations 5,519 2,623 2,417 90 95 374 Total $ 15,519 $ 12,623 $ 12,417 $ 10,090 $ 76,995 $ 374 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 14. Other Long-Term Liabilities Other long-term liabilities consists of the following: June 30, 2019 June 24, 2018 Supplemental post-employment plan $ 2,695 $ 3,045 Uncertain tax positions 1,043 131 Interest rate swaps 647 — Other 1,800 2,161 Total other long-term liabilities $ 6,185 $ 5,337 UNIFI maintains an unfunded supplemental post-employment plan for certain management employees. Each employee’s account is credited annually based upon a percentage of the participant’s base salary, with each participant’s balance adjusted quarterly to reflect the returns of a money market fund. Amounts are paid to participants six months after termination of employment. On January 5, 2017, February 24, 2017 and June 1, 2017, UNIFI entered into Swap A, Swap B and Swap C. The combined designated hedges fix LIBOR at approximately 1.9% for $75,000 of variable rate borrowings through May 24, 2022. In accordance with hedge accounting, each swap is reflected on the accompanying consolidated balance sheets at fair value with a corresponding balance in accumulated other comprehensive loss, and impacts earnings commensurate with the forecasted transaction. As of June 30, 2019, the associated fair value of the swaps are reflected in other long-term liabilities. Other primarily includes certain retiree and post-employment medical and disability liabilities, deferred revenue and deferred energy incentive credits. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Components of Income Before Income Taxes The components of income before income taxes consist of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 U.S. $ (13,326 ) $ (7,852 ) $ 2,689 Foreign 23,337 38,063 40,586 Income before income taxes $ 10,011 $ 30,211 $ 43,275 Components of Provision (Benefit) for Income Taxes Provision (benefit) for income taxes consists of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Current: Federal $ (178 ) $ (4,918 ) $ (6,082 ) State 28 (416 ) (130 ) Foreign 7,282 9,639 10,224 Total current tax expense 7,132 4,305 4,012 Deferred: Federal (813 ) (5,315 ) 6,602 State 1,097 (872 ) 162 Foreign 139 391 122 Total deferred tax expense 423 (5,796 ) 6,886 Provision (benefit) for income taxes $ 7,555 $ (1,491 ) $ 10,898 U.S. Tax Reform On December 22, 2017, the U.S. government enacted comprehensive tax legislation H.R. 1, formerly known as the Tax Cuts and Jobs Act. H.R. 1 included significant changes to existing tax law, including a permanent reduction to the U.S. federal corporate income tax rate from 35% to 21%, additional limitations on the deductions for executive compensation and interest expense, and the transition of the U.S. international tax system from a worldwide tax to a territorial tax system. As a fiscal-year taxpayer, certain provisions of H.R. 1 impacted UNIFI in fiscal 2018, including the change in the U.S. federal corporate income tax rate and the one-time transition tax (“toll charge”), while other provisions became effective for UNIFI at the beginning of fiscal 2019. The enactment of H.R. 1 resulted in recording a total provisional tax benefit of $396 for fiscal 2018. For a full description of the impact of H.R. 1 for fiscal 2018, refer to Note 14, “Income Taxes,” in UNIFI’s Annual Report on Form 10-K for fiscal 2018. In fiscal 2019, UNIFI recorded an additional tax benefit of $843 related to the enactment of H.R. 1, which decreased the effective tax rate for the period by 8.4%. The total tax benefit related to the enactment of H.R. 1 was $1,239, primarily consisting of $3,986 of tax benefit related to the re-measurement of deferred tax balances, and $2,747 of tax expense related to the toll charge, net of foreign tax credits. Although UNIFI no longer considers these amounts provisional, the income tax effects of H.R. 1 may change following future legislation or further interpretation of H.R. 1 based on the publication of guidance from the U.S. Internal Revenue Service (the “IRS”) and state tax authorities. The Global Intangible Low-Taxed Income (“GILTI”) provisions included in H.R. 1 require that certain income earned by foreign subsidiaries must be currently included in the gross income of the U.S. shareholder. These provisions were effective for UNIFI in fiscal 2019. The GILTI provisions are complex and subject to continuing regulatory interpretation by the IRS. UNIFI has elected to recognize GILTI as a current-period expense. Under this policy, UNIFI has not provided deferred taxes related to temporary differences that, upon their reversal, will affect the amount of income subject to GILTI in the period. Utilization of Net Operating Loss Carryforwards Domestic deferred tax expense includes the utilization of federal net operating loss (“NOL”) carryforwards of $3,122 and $843 for fiscal 2019 and 2018, respectively. Foreign deferred tax expense includes the utilization of NOL carryforwards of $655, $773 and $756 for fiscal 2019, 2018 and 2017, respectively. State deferred tax expense includes the utilization of NOL carryforwards of $106, $116 and $26 for fiscal 2019, 2018 and 2017, respectively. Effective Tax Rate Reconciliation from the federal statutory tax rate to the effective tax rate is as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Federal statutory tax rate 21.0 % 28.3 % 35.0 % Foreign income taxed at different rates 16.1 (2.4 ) (10.2 ) Repatriation of foreign earnings and withholding taxes 20.3 1.8 1.4 Repatriation of foreign earnings due to tax reform 0.7 23.9 — Revaluation of U.S. deferred balances due to tax reform 3.1 (14.2 ) — U.S. tax on GILTI 32.5 — — Change in valuation allowance (1.5 ) (12.9 ) (0.5 ) Foreign tax credits (11.9 ) (11.0 ) — Domestic production activities deduction (5.6 ) 0.5 2.0 Research and other credits (7.7 ) (1.8 ) (5.1 ) State income taxes, net of federal tax benefit (0.6 ) (3.9 ) 0.2 Change in uncertain tax positions 8.2 (15.1 ) 1.8 Nondeductible compensation 5.1 1.6 — Nontaxable income (4.2 ) — — Nondeductible expenses and other — 0.3 0.6 Effective tax rate 75.5 % (4.9 )% 25.2 % Deferred Income Taxes The significant components of UNIFI’s deferred tax assets and liabilities consist of the following: June 30, 2019 June 24, 2018 Deferred tax assets: Investments, including unconsolidated affiliates $ 5,680 $ 5,429 Intangible assets 1,679 2,141 Accrued compensation and benefits 1,761 2,089 Tax credits 17,237 5,845 NOL carryforwards 4,381 10,008 Research and development costs 4,081 — Other items 5,555 4,847 Total gross deferred tax assets 40,374 30,359 Valuation allowance (26,020 ) (15,143 ) Net deferred tax assets 14,354 15,216 Deferred tax liabilities: PP&E (18,325 ) (19,375 ) Other (295 ) (216 ) Total deferred tax liabilities (18,620 ) (19,591 ) Net deferred tax liabilities $ (4,266 ) $ (4,375 ) Deferred Income Taxes – Valuation Allowance In assessing its ability to realize deferred tax assets, UNIFI considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. UNIFI considers the scheduled reversal of taxable temporary differences, taxable income in carryback years, projected future taxable income and tax planning strategies in making this assessment. Since UNIFI operates in multiple jurisdictions, the assessment is made on a jurisdiction-by-jurisdiction basis, taking into account the effects of local tax law. The balances and activity for UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Balance at beginning of year $ (15,143 ) $ (17,957 ) $ (13,550 ) (Increase) decrease in valuation allowance (10,877 ) 2,814 (4,407 ) Balance at end of year $ (26,020 ) $ (15,143 ) $ (17,957 ) Components of UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Investments, including unconsolidated affiliates $ (5,696 ) $ (5,522 ) $ (7,789 ) NOL carryforwards (1) (4,048 ) (4,191 ) (9,379 ) Tax credits (16,276 ) (5,430 ) (789 ) Total deferred tax valuation allowance $ (26,020 ) $ (15,143 ) $ (17,957 ) (1) Includes certain U.S. NOLs and capital losses outside the U.S. consolidated tax filing group. During fiscal 2019, UNIFI’s valuation allowance increased by $10,877. The increase was primarily driven by an increase in the valuation allowance on foreign tax credits and certain state NOLs and credit carryforwards. During fiscal 2018, UNIFI’s valuation allowance decreased by $2,814. The decrease was primarily driven by the release of a valuation allowance on NOLs outside the U.S. consolidated tax filing group that are now able to be utilized, and a decrease related to U.S. deferred tax assets to reflect the lower federal ending deferred tax rate. The decrease was partially offset by an increase related to foreign tax credit carryforwards for which no benefit can be realized. During fiscal 2017, UNIFI’s valuation allowance increased by $4,407. The increase consisted primarily of (i) $4,241 of foreign losses and (ii) $789 of foreign tax credit carryforwards for which no benefit can be recognized. The increase was partially offset by a net decrease of $582 related to UNIFI’s investment in PAL due to the timing of PAL’s taxable income versus book income. Unrecognized Tax Benefits A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Balance at beginning of year $ 166 $ 4,463 $ 4,254 Gross increases related to current period tax positions 26 26 124 Gross increases (decreases) related to tax positions in prior periods 980 (119 ) 524 Gross decreases related to settlements with tax authorities — (4,204 ) (439 ) Gross decreases related to lapse of applicable statute of limitations (89 ) — — Balance at end of year $ 1,083 $ 166 $ 4,463 Unrecognized tax benefits would generate a favorable impact of $1,043 on UNIFI’s effective tax rate when recognized. UNIFI does not expect material changes in uncertain tax positions within the next 12 months. Expense (benefit) for interest and penalties recognized by UNIFI within the provision for income taxes was $22, $(1,030) and $(42) for fiscal 2019, 2018 and 2017, respectively. UNIFI had $63, $41 and $772 accrued for interest and/or penalties related to uncertain tax positions as of June 30, 2019, June 24, 2018 and June 25, 2017, respectively. Expiration of Net Operating Loss Carryforwards and Foreign Tax Credits As of June 30, 2019, UNIFI had U.S. state NOL carryforwards of $46,189 and foreign NOL carryforwards of $9,204, offset by a full valuation allowance. The NOL carryforwards begin expiring in varying amounts in fiscal 2020. As of June 30, 2019, UNIFI had the following carryforward attributes held outside of the U.S. consolidated tax filing group: U.S. federal NOL carryforwards of $4,806, U.S. federal capital loss carryforwards of $4,489, and U.S. state NOL carryforwards of $12,279. The U.S. federal capital loss carryforwards are offset with a full valuation allowance and the U.S. state NOL carryforwards are partially offset by a valuation allowance. The NOL carryforwards held outside of the U.S. consolidated tax filing group begin expiring in fiscal 2020. As of June 30, 2019, UNIFI had U.S. federal foreign tax credit carryforwards of $13,477 and foreign tax credit carryforwards in foreign jurisdictions of $2,437, offset with a full valuation allowance. The foreign tax credit carryforwards begin expiring in varying amounts in fiscal 2021. Tax Years Subject to Examination Unifi, Inc. and its domestic subsidiaries file a consolidated federal income tax return, as well as income tax returns in multiple state and foreign jurisdictions. The tax years subject to examination vary by jurisdiction. UNIFI regularly assesses the outcomes of both completed and ongoing examinations to ensure that UNIFI’s provision for income taxes is sufficient. In fiscal 2019, the IRS initiated an audit for fiscal year 2015, 2016 and 2017. The audit was not concluded at the end of fiscal 2019. No material assessment is anticipated. In fiscal 2018, the IRS examined UNIFI’s federal income tax returns for fiscal 2014 and 2015, and re-examined the federal income tax return for fiscal 2013. The examination closed with no proposed adjustments. In fiscal 2016, the North Carolina Department of Revenue initiated an audit for fiscal year 2012 through 2015. The audit was not concluded at the end of fiscal 2019. No material assessment is anticipated. UNIFI is currently under appeal in Colombia for tax years 2006 and 2007. UNIFI believes it is more-likely-than-not to conclude the appeal with no material assessment. Statutes related to material foreign jurisdictions are open from January 1, 2014 and material state jurisdictions from June 29, 2015. Certain carryforward tax attributes generated in years prior remain subject to examination and could change in subsequent tax years. Indefinite Reinvestment Assertion As of June 30, 2019, U.S. income taxes and foreign withholding taxes were not provided for on a cumulative total of approximately $131,386 of undistributed earnings of UNIFI’s foreign subsidiaries. UNIFI intends to reinvest these earnings indefinitely in its foreign subsidiaries. If at a later date, these earnings were to be repatriated to the U.S., UNIFI would be required to accrue and pay state income and/or foreign local withholding taxes on these amounts. Determination of the amount of any unrecognized deferred tax liability on these undistributed earnings is not practicable. UNIFI will continue to assess the existing circumstances, including any changes in tax laws, and reevaluate the necessity for any deferred tax liability. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 30, 2019 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 16. Shareholders’ Equity On April 23, 2014, UNIFI announced that its Board of Directors (the “Board”) had approved a share repurchase program (the “2014 SRP”) under which UNIFI was authorized to acquire up to $50,000 of its common stock. Through October 31, 2018 (the date the 2014 SRP was terminated, as noted below), UNIFI had repurchased a total of 806 shares, at an average price of $27.79 (for a total of $22,409, inclusive of commission costs), pursuant to the 2014 SRP. On October 31, 2018, UNIFI announced that the Board had terminated the 2014 SRP and approved a new share repurchase program (the “2018 SRP”) under which UNIFI is authorized to acquire up to $50,000 of its common stock. Under the 2018 SRP, purchases will be made from time to time in the open market at prevailing market prices, through private transactions or block trades. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements and other factors. The share repurchase authorization is discretionary and has no expiration date. Repurchases, if any, are expected to be financed through cash generated from operations and borrowings under the ABL Revolver, and are subject to applicable limitations and restrictions as set forth in the ABL Facility. UNIFI may discontinue repurchases at any time that management determines additional purchases are not beneficial or advisable. As of June 30, 2019, $50,000 remained available for repurchase under the 2018 SRP. Repurchased shares are retired and have the status of authorized and unissued shares. The cost of the repurchased shares is recorded as a reduction to common stock to the extent of the par value of the shares acquired and the remainder is allocated between capital in excess of par value, on a pro rata basis, and retained earnings. No dividends were paid in the three most recent fiscal years. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 17. Stock-Based Compensation On October 23, 2013, UNIFI’s shareholders approved the Unifi, Inc. 2013 Incentive Compensation Plan (the “2013 Plan”). The 2013 Plan replaced the 2008 Unifi, Inc. Long-Term Incentive Plan (the “2008 LTIP”). No additional awards can be granted under the 2008 LTIP; however, prior awards outstanding under the 2008 LTIP remain subject to that plan’s provisions. The 2013 Plan authorized the issuance of 1,000 shares of common stock, subject to certain increases in the event outstanding awards under the 2008 LTIP expired, were forfeited or otherwise terminated unexercised. The 2013 Plan expired in accordance with its terms on October 24, 2018, and the Unifi, Inc. Amended and Restated 2013 Incentive Compensation Plan (the “Amended 2013 Plan”) became effective on that same day, upon approval by shareholders at UNIFI’s annual meeting of shareholders held on October 31, 2018. The Amended 2013 Plan increased the number of shares available for future issuance pursuant to awards granted under the Amended 2013 Plan to 1,250 and removed provisions no longer applicable due to the recent changes to Section 162(m) of the Internal Revenue Code of 1986, as amended. The material terms and provisions of the Amended 2013 Plan are otherwise similar to those of the 2013 Plan. No additional awards can be granted under the 2013 Plan; however, prior awards outstanding under the 2013 Plan remain subject to that plan’s provisions. The following table provides information as of June 30, 2019 with respect to the number of securities remaining available for future issuance under the Amended 2013 Plan: Authorized under the Amended 2013 Plan 1,250 Plus: Awards expired, forfeited or otherwise terminated unexercised 135 Less: Awards granted to employees (265 ) Less: Awards granted to non-employee directors (89 ) Available for issuance under the Amended 2013 Plan 1,031 Stock Options During fiscal 2019, 2018 and 2017, UNIFI granted stock options to purchase 190, 73 and 153 shares of its common stock, respectively, to certain key employees. The stock options vest ratably over the required three-year service period and have 10-year contractual terms. For fiscal 2019, 2018 and 2017, the weighted average exercise price of the stock options granted was $23.73, $32.61 and $28.82 per share, respectively. UNIFI used the Black-Scholes model to estimate the weighted average grant date fair value of $8.42, $11.14 and $10.13 per share, respectively. During fiscal 2019, UNIFI granted stock options to purchase 33 shares of its common stock to a member of the Board. The stock options became fully vested on the grant date and have 10-year contractual terms. The exercise price was $21.02 and the grant date fair value was $7.60. For stock options granted, the valuation models used the following assumptions: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Expected term (years) 5.5 5.2 5.0 Risk-free interest rate 2.9 % 2.0 % 1.4 % Volatility 32.6 % 34.3 % 37.9 % Dividend yield — — — UNIFI uses historical data to estimate the expected term and volatility. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant for periods corresponding with the expected term of the stock options. A summary of stock option activity for fiscal 2019 is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 24, 2018 405 $ 23.73 Granted 223 $ 23.33 Exercised (69 ) $ 10.05 Cancelled or forfeited (157 ) $ 25.74 Expired (25 ) $ 27.98 Outstanding at June 30, 2019 377 $ 24.88 6.8 $ 386 Vested and expected to vest as of June 30, 2019 377 $ 24.88 6.8 $ 386 Exercisable at June 30, 2019 241 $ 24.10 5.7 $ 386 At June 30, 2019, the remaining unrecognized compensation cost related to the unvested stock options was $568, which is expected to be recognized over a weighted average period of 1.7 years. For fiscal 2019, 2018 and 2017, the total intrinsic value of stock options exercised was $971, $2,703 and $5,802, respectively. The amount of cash received from the exercise of stock options was $483, $219 and $2,787 for fiscal 2019, 2018 and 2017, respectively. The tax benefit realized from stock options exercised was $61, $398 and $1,517 for fiscal 2019, 2018 and 2017, respectively. Restricted Stock Units and Vested Share Units During fiscal 2019, 2018 and 2017, UNIFI granted 75, 86 and 150 restricted stock units (“RSUs”), respectively, to certain key employees. The employee RSUs are subject to a vesting restriction and convey no rights of ownership in shares of Company common stock until such employee RSUs have vested and been distributed to the grantee in the form of Company common stock. The employee RSUs vest over a three-year period, and will be converted into an equivalent number of shares of Company common stock (for distribution to the grantee) on each vesting date, unless the grantee has elected to defer the receipt of the shares of stock until separation from service. UNIFI estimated the weighted average fair value of each employee RSU granted during fiscal 2019, 2018 and 2017 to be $23.58, $32.16 and $27.66 respectively. During fiscal 2019, UNIFI granted 47 vested share units (“VSUs”) to UNIFI’s non-employee directors. The director VSUs became fully vested on the grant date, but convey no rights of ownership in shares of Company common stock until such director VSUs have been distributed to the grantee in the form of Company common stock. The director VSUs will be converted into an equivalent number of shares of Company common stock and distributed to the grantee following the grantee’s termination of service as a member of the Board. UNIFI estimated the fair value of each director VSU granted during fiscal 2019 to be $23.27. During fiscal 2018 and 2017, UNIFI granted 30 and 31 RSUs, respectively, to UNIFI’s non-employee directors. The director RSUs became fully vested on the grant date. The director RSUs convey no rights of ownership in shares of Company common stock until such director RSUs have been distributed to the grantee in the form of Company common stock. The vested director RSUs will be converted into an equivalent number of shares of Company common stock and distributed to the grantee following the grantee’s termination of service as a member of the Board. With respect to the RSUs granted in fiscal 2017, the grantee may elect to defer receipt of the shares of Company common stock in accordance with the deferral options provided under the Unifi, Inc. Director Deferred Compensation Plan. UNIFI estimated the fair value of each director RSU granted during fiscal 2018 and 2017 to be $35.83 and $29.09, respectively. UNIFI estimates the fair value of RSUs and VSUs based on the market price of UNIFI’s common stock at the award grant date. A summary of RSU and VSU activity for fiscal 2019 is as follows: Non-vested Weighted Average Grant Date Fair Value Vested Total Weighted Average Grant Date Fair Value Outstanding at June 24, 2018 198 $ 29.50 148 346 $ 27.45 Granted 122 $ 23.46 — 122 $ 23.46 Vested (105 ) $ 26.39 105 — $ — Converted — $ — (61 ) (61 ) $ 28.21 Cancelled or forfeited (102 ) $ 26.86 — (102 ) $ 26.86 Outstanding at June 30, 2019 113 $ 27.50 192 305 $ 25.61 At June 30, 2019, the number of RSUs and VSUs vested and expected to vest was 305, with an aggregate intrinsic value of $5,543. The aggregate intrinsic value of the 192 vested RSUs and VSUs at June 30, 2019 was $3,496. The remaining unrecognized compensation cost related to the unvested RSUs at June 30, 2019 was $1,305, which is expected to be recognized over a weighted average period of 1.5 years. For fiscal 2019, 2018 and 2017, the total intrinsic value of RSUs converted was $1,427, $1,620 and $2,120, respectively. The tax benefit realized from the conversion of RSUs was $164, $247 and $806 for fiscal 2019, 2018 and 2017, respectively. Summary The total cost charged against income related to all stock-based compensation arrangements was as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Stock options $ 671 $ 884 $ 749 RSUs and VSUs 1,977 4,042 1,432 Total compensation cost $ 2,648 $ 4,926 $ 2,181 In fiscal 2019, UNIFI issued 10 shares of common stock for $244 of expense. The total income tax benefit recognized for stock-based compensation was $325, $442 and $599 for fiscal 2019, 2018 and 2017, respectively. As of June 30, 2019, total unrecognized compensation costs related to all unvested stock-based compensation arrangements were $1,873. The weighted average period over which these costs are expected to be recognized is 1.5 years. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Plan | 18. Defined Contribution Plan UNIFI matches employee contributions made to the Unifi, Inc. Retirement Savings Plan (the “401(k) Plan”), a 401(k) defined contribution plan, which covers eligible domestic salary and hourly employees. Under the terms of the 401(k) Plan, UNIFI matches 100% of the first 3% of eligible employee contributions and 50% of the next 2% of eligible contributions. The following table presents the employer matching contribution expense related to the 401(k) Plan: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Matching contribution expense $ 2,836 $ 2,643 $ 2,538 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 19. Fair Value of Financial Instruments and Non-Financial Assets and Liabilities Financial Instruments UNIFI may use derivative financial instruments such as foreign currency forward contracts or interest rate swaps to reduce its ongoing business exposures to fluctuations in foreign currency exchange rates or interest rates. UNIFI does not enter into derivative contracts for speculative purposes. Foreign Currency Forward Contracts UNIFI may enter into foreign currency forward contracts as economic hedges for exposures related to certain sales, inventory purchases and equipment purchases which are denominated in currencies that are not its functional currency. Foreign currency forward contracts are not designated as hedges by UNIFI and are marked to market each period and offset by the foreign exchange (gains) losses included in other operating expense (income), net resulting from the underlying exposures of the foreign currency denominated assets and liabilities. As of June 30, 2019 and June 24, 2018, there were no outstanding foreign currency forward contracts. However, UNIFI utilized a foreign currency forward contract during fiscal 2017, for which the impact to the consolidated financial statements was insignificant. Interest Rate Swaps UNIFI’s primary debt obligations utilize variable-rate LIBOR, exposing the Company to variability in interest payments due to changes in interest rates. Management enters into LIBOR-based interest rate swap agreements to manage fluctuations in cash flows resulting from changes in the benchmark LIBOR. Under the terms of the interest rate swaps, UNIFI effectively receives LIBOR-based variable interest rate payments and makes fixed interest rate payments, thereby fixing the variable rate cash flows on the notional amount of debt obligations. On January 5, 2017, February 24, 2017 and June 1, 2017, UNIFI entered into Swap A, Swap B and Swap C. The combined designated hedges fix LIBOR at approximately 1.9% for $75,000 of variable rate borrowings through May 24, 2022. In accordance with hedge accounting, each swap is reflected on the accompanying consolidated balance sheets at fair value with a corresponding balance in accumulated other comprehensive loss, and impacts earnings commensurate with the forecasted transaction. On May 18, 2012, UNIFI entered into a five-year, $50,000 interest rate swap (“Swap D”) with Wells Fargo Bank, N.A. to provide a hedge against the variability of cash flows related to LIBOR-based variable rate borrowings under the ABL Facility. On November 26, 2012, UNIFI de-designated Swap D as a cash flow hedge. Swap D allowed UNIFI to fix LIBOR at 1.06% and terminated on May 24, 2017. See Note 20, “Accumulated Other Comprehensive Loss,” for detail regarding the reclassifications of amounts from accumulated other comprehensive loss related to Swap D. Contingent Consideration In December 2013, UNIFI acquired certain draw-winding assets in a business combination and recorded a $2,500 contingent consideration liability (Level 3 classification in the fair value hierarchy). The related contingent consideration liability did not incur material fair value activity. The liability balance at June 24, 2018 was a result of the life-to-date payments made, which were completed during fiscal 2019. UNIFI’s financial assets and liabilities accounted for at fair value on a recurring basis and the level within the fair value hierarchy used to measure these items are as follows: As of June 30, 2019 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other long-term liabilities Level 2 $ 186 Swap B USD $ 30,000 Other long-term liabilities Level 2 $ 279 Swap C USD $ 25,000 Other long-term liabilities Level 2 $ 182 Contingent consideration — Accrued expenses Level 3 $ — As of June 24, 2018 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other non-current assets Level 2 $ 584 Swap B USD $ 30,000 Other non-current assets Level 2 $ 877 Swap C USD $ 25,000 Other non-current assets Level 2 $ 798 Contingent consideration — Accrued expenses Level 3 $ 529 Estimates for the fair value of UNIFI’s derivative contracts are obtained from month-end market quotes for contracts with similar terms. Swaps A, B and C, designated hedges, decreased interest expense for fiscal 2019 by $320, increased interest expense for fiscal 2018 by $319 and increased interest expense for fiscal 2017 by $42. Swap D, a de-designated hedge, increased interest expense for fiscal 2017 by $178. By entering into derivative contracts, UNIFI exposes itself to counterparty credit risk. UNIFI attempts to minimize this risk by selecting counterparties with investment grade credit ratings and regularly monitoring those ratings. UNIFI’s derivative instruments do not contain any credit-risk-related contingent features. UNIFI believes that there have been no significant changes to its credit risk profile or the interest rates available to UNIFI for debt issuances with similar terms and average maturities, and UNIFI estimates that the fair values of its debt obligations approximate the carrying amounts. Other financial instruments include cash and cash equivalents, receivables, accounts payable and accrued expenses. The financial statement carrying amounts of these items approximate the fair values due to their short-term nature. There were no transfers into or out of the levels of the fair value hierarchy for fiscal 2019, 2018 and 2017. Non-Financial Assets and Liabilities UNIFI did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-recurring basis. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 20. Accumulated Other Comprehensive Loss The components of and the changes in accumulated other comprehensive loss, net of tax, as applicable, consist of the following: Foreign Currency Translation Adjustments Changes in Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at June 26, 2016 $ (29,681 ) $ (70 ) $ (29,751 ) Other comprehensive loss, net of tax (2,691 ) (438 ) (3,129 ) Balance at June 25, 2017 $ (32,372 ) $ (508 ) $ (32,880 ) Other comprehensive (loss) income, net of tax (9,896 ) 2,243 (7,653 ) Balance at June 24, 2018 $ (42,268 ) $ 1,735 $ (40,533 ) Other comprehensive loss, net of tax (461 ) (2,235 ) (2,696 ) Balance at June 30, 2019 $ (42,729 ) $ (500 ) $ (43,229 ) A summary of other comprehensive (loss) income for fiscal 2019, 2018 and 2017 is provided as follows: Fiscal 2019 Fiscal 2018 Fiscal 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive (loss) income: Foreign currency translation adjustments $ (681 ) $ — $ (681 ) $ (9,250 ) $ — $ (9,250 ) $ (2,936 ) $ — $ (2,936 ) Foreign currency translation adjustments for an unconsolidated affiliate 220 — 220 (646 ) — (646 ) 245 — 245 Changes in interest rate swaps, net of reclassification adjustments (2,906 ) 671 (2,235 ) 3,067 (824 ) 2,243 (737 ) 299 (438 ) Other comprehensive loss, net $ (3,367 ) $ 671 $ (2,696 ) $ (6,829 ) $ (824 ) $ (7,653 ) $ (3,428 ) $ 299 $ (3,129 ) |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | 21. Computation of Earnings Per Share The computation of basic and diluted earnings per share (“EPS”) is as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Basic EPS Net income attributable to Unifi, Inc. $ 2,456 $ 31,702 $ 32,875 Weighted average common shares outstanding 18,395 18,294 18,136 Basic EPS $ 0.13 $ 1.73 $ 1.81 Diluted EPS Net income attributable to Unifi, Inc. $ 2,456 $ 31,702 $ 32,875 Weighted average common shares outstanding 18,395 18,294 18,136 Net potential common share equivalents – stock options and RSUs 300 343 307 Adjusted weighted average common shares outstanding 18,695 18,637 18,443 Diluted EPS $ 0.13 $ 1.70 $ 1.78 Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 314 118 390 Excluded from the calculation of diluted shares: Unvested stock options that vest upon achievement of certain market conditions — — — The calculation of earnings per common share is based on the weighted average number of UNIFI’s common shares outstanding for the applicable period. The calculation of diluted earnings per common share presents the effect of all potential dilutive common shares that were outstanding during the respective period, unless the effect of doing so is anti-dilutive. |
Other Operating Expense (Income
Other Operating Expense (Income), Net | 12 Months Ended |
Jun. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Other Operating Expense (Income), Net | 22. Other Operating Expense (Income), Net Other operating expense (income), net primarily consists of gains and losses on (i) foreign currency transactions and (ii) sale or disposal of assets, along with severance expenses related to former employees. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates and Variable Interest Entities | 12 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates and Variable Interest Entities | 23. Investments in Unconsolidated Affiliates and Variable Interest Entities Parkdale America, LLC In June 1997, UNIFI and Parkdale Mills, Inc. (“Mills”) entered into a Contribution Agreement that set forth the terms and conditions by which the two companies contributed all of the assets of their spun cotton yarn operations utilizing open-end and air-jet spinning technologies to create PAL. In exchange for its contribution, UNIFI received a 34% equity ownership interest in PAL, which is accounted for using the equity method of accounting. Effective January 1, 2012, Mills’ interest in PAL was assigned to Parkdale Incorporated. PAL is a limited liability company treated as a partnership for income tax reporting purposes. PAL is a producer of cotton and synthetic yarns for sale to the global textile industry and apparel market. Per PAL’s fiscal 2018 audited financial statements, PAL had 12 manufacturing facilities located primarily in the southeast region of the U.S. and in Mexico, and PAL’s five largest customers accounted for approximately 74% of total revenues and 71% of total gross accounts receivable outstanding. As PAL’s fiscal year end is the Saturday nearest to December 31 and its results are considered significant, UNIFI files an amendment to each Annual Report on Form 10-K on or before 90 days subsequent to PAL’s fiscal year end to provide PAL’s audited financial statements for PAL’s most recent fiscal year. UNIFI filed an amendment to its Annual Report on Form 10-K for fiscal 2018 on March 28, 2019 to provide PAL’s audited financial statements for PAL’s fiscal year ended December 29, 2018. UNIFI expects to file an amendment to this Annual Report on Form 10-K on or before March 27, 2020 to provide PAL’s audited financial statements for PAL’s fiscal year ended December 28, 2019. The U.S. federal government maintains a program providing economic adjustment assistance to domestic users of upland cotton (the “cotton rebate program”). The cotton rebate program offers a subsidy for cotton consumed in domestic production, and the subsidy is paid the month after the eligible cotton is consumed. To be completely earned, the subsidy must be used within 18 months after the marketing year in which it is earned to purchase qualifying capital expenditures in the U.S. for production of goods from upland cotton. The marketing year is from August 1 to July 31. The program provides a subsidy of up to three cents per pound. In December 2018, the U.S. federal government extended the program at the same rate through July 31, 2021, and for subsequent years, subject to funding available through annual appropriations. PAL recognizes its share of income for the cotton subsidy when the cotton has been consumed and the qualifying assets have been acquired, with an appropriate allocation methodology considering the dual criteria of the subsidy. PAL is subject to price risk related to anticipated fixed-price yarn sales. To protect the gross margin of these sales, PAL may enter into cotton futures to manage changes in raw material prices in order to protect the gross margin of fixed-priced yarn sales. The derivative instruments used are listed and traded on an exchange and are thus valued using quoted prices classified within Level 1 of the fair value hierarchy. As of June 30, 2019, PAL had no futures contracts designated as cash flow hedges. As of June 30, 2019, UNIFI’s investment in PAL was $112,398, which was reflected within investments in unconsolidated affiliates in the accompanying consolidated balance sheets. The reconciliation between UNIFI’s share of the underlying equity of PAL and its investment is as follows: Underlying equity as of June 30, 2019 $ 130,489 Initial excess capital contributions 53,363 Impairment charge recorded by UNIFI in 2007 (74,106 ) Anti-trust lawsuit against PAL in which UNIFI did not participate 2,652 Investment as of June 30, 2019 $ 112,398 U.N.F. Industries, Ltd. In September 2000, UNIFI and Nilit Ltd. (“Nilit”) formed a 50/50 joint venture, U.N.F. Industries Ltd. (“UNF”), for the purpose of operating nylon extrusion assets to manufacture nylon POY. Raw material and production services for UNF are provided by Nilit under separate supply and services agreements. UNF’s fiscal year end is December 31 and it is a registered Israeli private company located in Migdal Ha-Emek, Israel. UNF America, LLC In October 2009, UNIFI and Nilit America Inc. (“Nilit America”) formed a 50/50 joint venture, UNF America LLC (“UNFA”), for the purpose of operating a nylon extrusion facility which manufactures nylon POY. Raw material and production services for UNFA are provided by Nilit America under separate supply and services agreements. UNFA’s fiscal year end is December 31 and it is a limited liability company treated as a partnership for income tax reporting purposes located in Ridgeway, Virginia. In conjunction with the formation of UNFA, UNIFI entered into a supply agreement with UNF and UNFA whereby UNIFI agreed to purchase all of its first quality nylon POY requirements for texturing (subject to certain exceptions) from either UNF or UNFA. The agreement has no stated minimum purchase quantities and pricing is negotiated every six months, based on market rates. As of June 30, 2019, UNIFI’s open purchase orders related to this agreement were $2,919. UNIFI’s raw material purchases under this supply agreement consist of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 UNF $ 1,735 $ 1,800 $ 2,254 UNFA 23,089 21,731 20,493 Total $ 24,824 $ 23,531 $ 22,747 As of June 30, 2019 and June 24, 2018, UNIFI had combined accounts payable due to UNF and UNFA of $1,728 and $2,301, respectively. UNIFI has determined that UNF and UNFA are variable interest entities and has also determined that UNIFI is the primary beneficiary of these entities, based on the terms of the supply agreement. As a result, these entities should be consolidated with UNIFI’s financial results. As UNIFI purchases substantially all of the output from the two entities, the two entities’ balance sheets constitute 3% or less of UNIFI’s current assets, total assets and total liabilities, and such balances are not expected to comprise a larger portion in the future, UNIFI has not included the accounts of UNF and UNFA in its consolidated financial statements. As of June 30 2019, UNIFI’s combined investments in UNF and UNFA were $1,922 and are shown within investments in unconsolidated affiliates in the accompanying consolidated balance sheets. The financial results of UNF and UNFA are included in UNIFI’s consolidated financial statements with a one-month lag, using the equity method of accounting and with intercompany profits eliminated in accordance with UNIFI’s accounting policy. Other than the supply agreement discussed above, UNIFI does not provide any other commitments or guarantees related to either UNF or UNFA. Condensed balance sheet and income statement information for UNIFI’s unconsolidated affiliates (including reciprocal balances) is presented in the following tables. PAL is defined as significant and its information is separately disclosed. PAL does not meet the criteria for segment reporting. For UNIFI’s fiscal 2019, 2018 and 2017, PAL’s corresponding fiscal periods each consisted of 52 weeks. As of June 30, 2019 PAL Other Total Current assets $ 299,610 $ 7,218 $ 306,828 Noncurrent assets 158,304 696 159,000 Current liabilities 70,875 4,069 74,944 Noncurrent liabilities 3,252 — 3,252 Shareholders’ equity and capital accounts 383,787 3,845 387,632 UNIFI’s portion of undistributed earnings 43,343 821 44,164 As of June 24, 2018 PAL Other Total Current assets $ 289,683 $ 7,598 $ 297,281 Noncurrent assets 162,242 875 163,117 Current liabilities 71,026 3,722 74,748 Noncurrent liabilities 3,389 — 3,389 Shareholders’ equity and capital accounts 377,510 4,751 382,261 For the Fiscal Year Ended June 30, 2019 PAL Other Total Net sales $ 836,675 $ 25,621 $ 862,296 Gross profit 24,455 4,713 29,168 Income from operations 6,575 2,988 9,563 Net income 7,534 3,093 10,627 Depreciation and amortization 40,679 190 40,869 Cash received by PAL under cotton rebate program 13,367 — 13,367 Earnings recognized by PAL for cotton rebate program 12,896 — 12,896 Distributions received 647 2,000 2,647 For the Fiscal Year Ended June 24, 2018 PAL Other Total Net sales $ 796,010 $ 24,097 $ 820,107 Gross profit 31,112 4,646 35,758 Income from operations 12,032 2,917 14,949 Net income 12,990 2,961 15,951 Depreciation and amortization 39,404 190 39,594 Cash received by PAL under cotton rebate program 13,797 — 13,797 Earnings recognized by PAL for cotton rebate program 13,334 — 13,334 Distributions received 9,236 3,000 12,236 For the Fiscal Year Ended June 25, 2017 PAL Other Total Net sales $ 754,285 $ 22,905 $ 777,190 Gross profit 26,275 4,877 31,152 Income from operations 10,406 3,061 13,467 Net income 7,814 2,988 10,802 Depreciation and amortization 42,801 177 42,978 Cash received by PAL under cotton rebate program 14,293 — 14,293 Earnings recognized by PAL for cotton rebate program 13,491 — 13,491 Distributions received 822 1,500 2,322 As of the end of PAL’s corresponding 12-month fiscal periods ending in June, PAL’s amounts of deferred revenues related to the cotton rebate program were $0 for all periods. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 24. Commitments and Contingencies Collective Bargaining Agreements While employees of UNIFI’s Brazilian operations are unionized, none of the labor force employed by UNIFI’s domestic or other foreign subsidiaries is currently covered by a collective bargaining agreement. Environmental On September 30, 2004, Unifi Kinston, LLC (“UK”), a subsidiary of Unifi, Inc., completed its acquisition of polyester filament manufacturing assets located in Kinston, North Carolina from Invista S.a.r.l. (“INVISTA”). The land for the Kinston site was leased pursuant to a 99-year ground lease (the “Ground Lease”) with E.I. DuPont de Nemours (“DuPont”). Since 1993, DuPont has been investigating and cleaning up the Kinston site under the supervision of the U.S. Environmental Protection Agency and the North Carolina Department of Environmental Quality (“DEQ”) pursuant to the Resource Conservation and Recovery Act Corrective Action program. The program requires DuPont to identify all potential areas of environmental concern (“AOCs”), assess the extent of containment at the identified AOCs and remediate the AOCs to comply with applicable regulatory standards. Effective March 20, 2008, UK entered into a lease termination agreement associated with conveyance of certain assets at the Kinston site to DuPont. This agreement terminated the Ground Lease and relieved UK of any future responsibility for environmental remediation, other than participation with DuPont, if so called upon, with regard to UK’s period of operation of the Kinston site, which was from 2004 to 2008. At this time, UNIFI has no basis to determine if or when it will have any responsibility or obligation with respect to the AOCs or the extent of any potential liability for the same. UK continues to own property (the “Kentec site”) acquired in the 2004 transaction with INVISTA that has contamination from DuPont’s prior operations and is monitored by DEQ. The Kentec site has been remediated by DuPont, and DuPont has received authority from DEQ to discontinue further remediation, other than natural attenuation. Prior to transfer of responsibility to UK, DuPont and UK had a duty to monitor and report the environmental status of the Kentec site to DEQ. Effective April 10, 2019, UK assumed sole remediator responsibility of the Kentec site pursuant to its contractual obligations with INVISTA and received $180 of net monitoring and reporting costs due from DuPont. In connection with monitoring, UK expects to sample and report to DEQ annually. UNIFI expects no active site remediation will be required and has no basis to determine any costs that may be associated with active remediation. Leases UNIFI routinely leases sales and administrative office space, warehousing and distribution centers, manufacturing space, transportation equipment, manufacturing equipment, and other information technology and office equipment from third parties. Future minimum capital lease payments and future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of June 30, 2019 by fiscal year are: Capital leases Operating leases Fiscal 2020 $ 5,917 $ 3,164 Fiscal 2021 2,870 2,731 Fiscal 2022 2,565 1,492 Fiscal 2023 189 878 Fiscal 2024 189 755 Fiscal years thereafter 675 309 Total minimum lease payments $ 12,405 $ 9,329 Less estimated executory costs (644 ) Less interest (643 ) Present value of net minimum capital lease payments 11,118 Less current portion of capital lease obligations (5,519 ) Long-term portion of capital lease obligations $ 5,599 Rental expenses incurred under operating leases and included in operating income consist of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Rental expenses $ 4,915 $ 4,835 $ 4,357 Unconditional Obligations UNIFI is a party to unconditional obligations for certain utility and other purchase or service commitments. These commitments are non-cancelable, have remaining terms in excess of one year and qualify as normal purchases. On a fiscal year basis, the minimum payments expected to be made as part of such commitments are as follows: Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Thereafter Unconditional purchase obligations $ 7,831 $ 6,952 $ 6,771 $ 3,459 $ 5 $ 12 Unconditional service obligations 3,379 2,875 2,171 694 443 269 Total unconditional obligations $ 11,210 $ 9,827 $ 8,942 $ 4,153 $ 448 $ 281 For fiscal 2019, 2018 and 2017, total costs incurred under these commitments consisted of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Costs for unconditional purchase obligations $ 23,542 $ 24,777 $ 26,984 Costs for unconditional service obligations 5,169 2,454 2,575 Total $ 28,711 $ 27,231 $ 29,559 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 25. Related Party Transactions There were no related party receivables as of June 30, 2019 and June 24, 2018. Related party payables consist of the following: June 30, 2019 June 24, 2018 Salem Leasing Corporation (included within accounts payable) $ 634 $ 306 Salem Leasing Corporation (capital lease obligation) 806 875 Total related party payables $ 1,440 $ 1,181 Related party transactions in excess of $120 for the current or prior two fiscal years consist of the matters in the table below and the following paragraphs: For the Fiscal Year Ended Affiliated Entity Transaction Type June 30, 2019 June 24, 2018 June 25, 2017 Salem Leasing Corporation Transportation equipment costs and capital lease debt service $ 4,102 $ 3,979 $ 3,914 Salem Global Logistics, Inc. Freight service income — 147 128 Mr. Kenneth G. Langone, a member of the Board, is a director, shareholder and non-executive Chairman of the Board of Salem Holding Company. UNIFI leases tractors and trailers from Salem Leasing Corporation, a wholly owned subsidiary of Salem Holding Company. In addition to the monthly lease payments, UNIFI also incurs expenses for routine repair and maintenance, fuel and other expenses. These leases do not contain renewal options, purchase options or escalation clauses with respect to the minimum lease charges. Salem Global Logistics, Inc. is also a wholly owned subsidiary of Salem Holding Company. During fiscal 2018 and 2017, UNIFI earned income by providing for-hire freight services for Salem Global Logistics, Inc. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | 26. Business Segment Information UNIFI defines operating segments as components of the organization for which discrete financial information is available and operating results are evaluated on a regular basis by UNIFI’s principal executive officer, who is the chief operating decision maker (the “CODM”), in order to assess performance and allocate resources. Characteristics of UNIFI which were relied upon in making the determination of reportable segments include the nature of the products sold, the internal organizational structure, the trade policies in the geographic regions in which UNIFI operates, and the information that is regularly reviewed by the CODM for the purpose of assessing performance and allocating resources. UNIFI has four reportable segments. • The operations within the Polyester Segment exhibit similar long-term economic characteristics and primarily sell into an economic trading zone covered by the North American Free Trade Agreement and the Dominican Republic—Central America Free Trade Agreement (collectively, the regions comprising these economic trading zones are referred to as “NACA”) to similar customers utilizing similar methods of distribution. These operations derive revenues primarily from polyester-based products with sales primarily to other yarn manufacturers and knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, automotive, home furnishings, automotive, industrial and other end-use markets. The Polyester Segment consists of sales and manufacturing operations in the U.S. and El Salvador. • The operations within the Nylon Segment exhibit similar long-term economic characteristics and primarily sell into the NACA region to similar customers utilizing similar methods of distribution. These operations derive revenues primarily from nylon-based products with sales to knitters and weavers that produce fabric primarily for the apparel and hosiery markets. The Nylon Segment includes an immaterial operating segment in Colombia that sells similar nylon-based textile products to similar customers in Colombia and Mexico utilizing similar methods of distribution. The Nylon Segment consists of sales and manufacturing operations in the U.S. and Colombia. • The Brazil Segment primarily sells polyester-based products to knitters and weavers that produce fabric for the apparel, automotive, home furnishings, industrial and other end-use markets principally in South America. The Brazil Segment includes a manufacturing location and sales offices in Brazil. • The operations within the Asia Segment exhibit similar long-term economic characteristics and sell to similar customers utilizing similar methods of distribution primarily in Asia and Europe, which are outside of the NACA region. The Asia Segment primarily sells polyester-based products to knitters and weavers that produce fabric for the apparel, automotive, home furnishings, automotive, industrial and other end-use markets principally in Asia. The Asia Segment includes sales offices in China and Sri Lanka. In the fourth quarter of fiscal 2019, UNIFI increased from three to four reportable segments based on a change in the economic characteristics of the Asia Segment, which precludes aggregation with the Brazil Segment, based on expectations of differing annual sales growth rates and gross margins. The transition of UNIFI’s reportable segments has been applied retrospectively to fiscal 2018 and 2017. In connection with an intercompany agreement established in fiscal 2019 and consistent with an increased focus on a global, innovative supply chain, UNIFI’s operations within the Polyester Segment granted rights to the use of certain manufacturing know-how, processes and product technical information and design (“technologies”) to UNIFI’s operations in the Asia Segment. The technologies provide benefit to the Asia Segment by supporting its production and sale of differentiated products. Accordingly, the intercompany charge related to the agreement has been included in the calculation of segment profitability for fiscal 2019 and 2018 to align with the assessments and evaluations performed by, and information provided to, the CODM, in consideration of the impacts from intersegment technologies. Retrospective disclosure of the change in segment profitability has been applied beginning in the third quarter of fiscal 2018 such that cost of sales for the Polyester Segment includes an intersegment technologies credit, while cost of sales for the Asia Segment includes a corresponding intersegment technologies expense. Each such technologies credit or expense is recorded to the respective segment by fiscal year and fiscal quarter, following the methodology prescribed by the intercompany agreement in place. Such intersegment technologies amounts are integral to evaluating the underlying performance and trends of each segment, and such amounts eliminate in consolidation. The technologies credit (expense) reflected in the respective segments was $5,209 and $2,103 in fiscal 2019 and 2018, respectively. Per the applicable intercompany agreement, the intersegment technologies amounts were effective beginning January 1, 2018. Therefore, no intersegment technologies amounts are reflected in segment results for either the first half of fiscal 2018 or all of fiscal 2017. In addition to UNIFI’s reportable segments, an All Other category is included in the tables below. All Other consists primarily of for-hire transportation services and Renewables (up through December 23, 2016, the date of the sale by UNIFI of its 60% equity ownership interest in Renewables). For-hire transportation services revenue is derived from performing common carrier services utilizing UNIFI’s fleet of transportation equipment. Revenue for Renewables was primarily derived from (i) facilitating the use of miscanthus grass as bio-fuel through service agreements and (ii) delivering harvested miscanthus grass to poultry producers for animal bedding. The operations within All Other (i) are not subject to review by the CODM at a level consistent with UNIFI’s other operations, (ii) are not regularly evaluated using the same metrics applied to UNIFI’s other operations and (iii) do not qualify for aggregation with an existing reportable segment. Therefore, such operations are excluded from reportable segments. UNIFI evaluates the operating performance of its segments based upon Segment Profit, which represents segment gross profit (loss) plus segment depreciation expense. This measurement of segment profit or loss best aligns segment reporting with the current assessments and evaluations performed by, and information provided to, the CODM. The accounting policies for the segments are consistent with UNIFI’s accounting policies. Intersegment sales are omitted from segment disclosures, as they are (i) insignificant to UNIFI’s segments and eliminated from consolidated reporting and (ii) excluded from segment evaluations performed by the CODM. Selected financial information is presented below: For the Fiscal Year Ended June 30, 2019 Polyester Nylon Brazil Asia All Other Total Net sales $ 370,770 $ 98,127 $ 102,877 $ 132,866 $ 4,164 $ 708,804 Cost of sales 346,951 90,231 84,298 117,166 3,850 642,496 Gross profit 23,819 7,896 18,579 15,700 314 66,308 Segment depreciation expense 16,068 2,083 1,537 — 229 19,917 Segment Profit $ 39,887 $ 9,979 $ 20,116 $ 15,700 $ 543 $ 86,225 For the Fiscal Year Ended June 24, 2018 Polyester Nylon Brazil Asia All Other Total Net sales $ 364,169 $ 102,639 $ 110,587 $ 97,297 $ 4,220 $ 678,912 Cost of sales 330,975 92,155 84,726 80,677 3,951 592,484 Gross profit 33,194 10,484 25,861 16,620 269 86,428 Segment depreciation expense 15,893 2,197 1,648 — 256 19,994 Segment Profit $ 49,087 $ 12,681 $ 27,509 $ 16,620 $ 525 $ 106,422 For the Fiscal Year Ended June 25, 2017 Polyester Nylon Brazil Asia All Other Total Net sales $ 355,740 $ 112,704 $ 109,079 $ 64,607 $ 5,140 $ 647,270 Cost of sales 315,655 100,633 82,463 48,624 5,731 553,106 Gross profit (loss) 40,085 12,071 26,616 15,983 (591 ) 94,164 Segment depreciation expense 13,921 2,125 1,119 — 638 17,803 Segment Profit $ 54,006 $ 14,196 $ 27,735 $ 15,983 $ 47 $ 111,967 The reconciliations of segment gross profit (loss) to consolidated income before income taxes are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Polyester $ 23,819 $ 33,194 $ 40,085 Nylon 7,896 10,484 12,071 Brazil 18,579 25,861 26,616 Asia 15,700 16,620 15,983 All Other 314 269 (591 ) Segment gross profit 66,308 86,428 94,164 SG&A expenses 52,690 56,077 50,829 Provision (benefit) for bad debts 308 (38 ) (123 ) Other operating expense (income), net 2,350 1,590 (310 ) Operating income 10,960 28,799 43,768 Interest income (628 ) (560 ) (517 ) Interest expense 5,414 4,935 3,578 Loss on extinguishment of debt 131 — — Loss on sale of business — — 1,662 Equity in earnings of unconsolidated affiliates (3,968 ) (5,787 ) (4,230 ) Income before income taxes $ 10,011 $ 30,211 $ 43,275 The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Polyester $ 16,068 $ 15,893 $ 13,921 Nylon 2,083 2,197 2,125 Brazil 1,537 1,648 1,119 Asia — — — All Other 229 256 638 Segment depreciation expense 19,917 19,994 17,803 Other depreciation and amortization expense 3,086 2,591 2,565 Depreciation and amortization expense $ 23,003 $ 22,585 $ 20,368 The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Polyester $ 17,291 $ 16,605 $ 25,442 Nylon 624 1,366 1,247 Brazil 2,574 3,063 4,540 Asia 32 36 194 Segment capital expenditures 20,521 21,070 31,423 Other capital expenditures 4,350 3,959 1,767 Capital expenditures $ 24,871 $ 25,029 $ 33,190 The reconciliations of segment total assets to consolidated total assets are as follows: June 30, 2019 June 24, 2018 Polyester $ 287,608 $ 284,261 Nylon 57,055 57,378 Brazil 67,490 59,657 Asia 35,219 35,349 Segment total assets 447,372 436,645 Other current assets 10,327 30,945 Other PP&E 18,664 17,373 Other non-current assets 1,468 4,205 Investments in unconsolidated affiliates 114,320 112,639 Total assets $ 592,151 $ 601,807 Product sales (excluding the All Other category) are as follows. Polyester product sales are calculated by aggregating the sales of the Polyester, Brazil and Asia Segments. Nylon product sales represent sales for the Nylon Segment. For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Polyester $ 606,513 $ 572,053 $ 529,426 Nylon 98,127 102,639 112,704 Total $ 704,640 $ 674,692 $ 642,130 Geographic Data Geographic information is set forth below, beginning with net sales. For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 U.S. $ 426,725 $ 420,920 $ 424,490 Brazil 102,877 110,587 109,079 China 125,667 90,998 63,075 Remaining Foreign Countries 53,535 56,407 50,626 Total $ 708,804 $ 678,912 $ 647,270 Export sales from UNIFI’s U.S. operations to external customers $ 84,707 $ 94,205 $ 104,229 The net sales amounts are based on the operating locations from where the items were produced or distributed. Geographic information for long-lived assets is as follows: June 30, 2019 June 24, 2018 June 25, 2017 U.S. $ 305,483 $ 305,229 $ 304,696 Brazil 13,218 12,679 12,616 China 78 92 94 Remaining Foreign Countries 5,169 6,225 8,266 Total $ 323,948 $ 324,225 $ 325,672 Long-lived assets are comprised of PP&E, net; intangible assets, net; investments in unconsolidated affiliates; and other non-current assets. Geographic information for total assets is as follows: June 30, 2019 June 24, 2018 June 25, 2017 U.S. $ 457,571 $ 455,963 $ 445,947 Brazil 67,490 59,657 58,598 China 30,982 32,703 20,641 Remaining Foreign Countries 36,108 53,484 46,317 Total $ 592,151 $ 601,807 $ 571,503 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results (Unaudited) | 27. Quarterly Results (Unaudited) Quarterly financial data and selected highlights are as follows: For the Fiscal Quarter Ended September 30, 2018 December 30, 2018 March 31, 2019 June 30, 2019 Net sales (1) $ 181,611 $ 167,711 $ 179,989 $ 179,493 Gross profit ( 2 ) 20,019 14,156 13,791 18,342 Net income (loss) (3) 1,812 1,171 (1,529 ) 1,002 Net income (loss) per common share: Basic ( 4 ) $ 0.10 $ 0.06 $ (0.08 ) $ 0.05 Diluted ( 4 ) $ 0.10 $ 0.06 $ (0.08 ) $ 0.05 For the Fiscal Quarter Ended September 24, 2017 December 24, 2017 March 25, 2018 June 24, 2018 Net sales $ 164,242 $ 167,478 $ 165,867 $ 181,325 Gross profit ( 5 ) 23,292 22,676 16,556 23,904 Net income (6) 8,960 11,802 176 10,764 Net income per common share: Basic ( 4 ) $ 0.49 $ 0.65 $ 0.01 $ 0.59 Diluted ( 4 ) $ 0.48 $ 0.63 $ 0.01 $ 0.58 (1) The fiscal quarter ended September 30, 2018 is comprised of fourteen weeks . (2) Gross profit for the fiscal quarter ended December 30, 2018 includes the adverse impact of a raw material cost spike that could not be effectively offset with timely corresponding selling price increases. Gross profit for the fiscal quarters ended December 30, 2018, March 31, 2019 and June 30, 2019 includes the adverse impact of significant competitive pressure caused by elevated levels of polyester textured yarn imports. (3) Net income for the fiscal quarter ended June 30, 2019 includes severance charges for involuntary terminations. ( 4 ) Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. ( 5 ) Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with timely corresponding selling price increases. ( 6 ) Net income for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain income applicable to fiscal 2015. Net income for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jun. 30, 2019 | |
Additional Cash Flow Elements And Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 28. Supplemental Cash Flow Information Cash payments for interest and taxes consist of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Interest, net of capitalized interest of $219, $190 and $652, respectively $ 5,342 $ 4,459 $ 3,282 Income taxes, net of refunds 2,623 9,962 8,123 Non-Cash Investing and Financing Activities As of June 30, 2019, June 24, 2018 and June 25, 2017, $1,329, $3,187 and $3,234, respectively, were included in accounts payable for unpaid capital expenditures. During fiscal 2017, UNIFI recorded reclassification and non-cash activity relating to a construction financing arrangement. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Unifi, Inc. and its subsidiaries in which it maintains a controlling financial interest. All account balances and transactions between Unifi, Inc. and the subsidiaries which it controls have been eliminated. Investments in entities in which UNIFI is able to exercise significant influence, but not control, are accounted for using the equity method. For transactions with entities accounted for under the equity method, any intercompany profits on amounts still remaining are eliminated. Amounts originating from any deferral of intercompany profits are recorded within the account balance to which the transaction specifically relates (e.g., inventory). Only upon settlement of the intercompany transaction with a third party is the deferral of the intercompany profit recognized by UNIFI. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the period. UNIFI’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results may vary from these estimates. These estimates are reviewed periodically to determine if a change is required. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are defined as highly liquid, short-term investments having an original maturity of three months or less. Book overdrafts, for which the bank has not advanced cash, if any, are reclassified to accounts payable and reflected as an offset thereto within the accompanying consolidated statements of cash flows. |
Receivables | Receivables Receivables are stated at their net realizable value. Allowances are provided for known and potential losses arising from quality claims and for amounts owed by customers. Reserves for quality claims are based on historical claim experience and known pending claims and are recorded as a reduction of net sales. The allowance for uncollectible accounts is recorded against operating income and reflects UNIFI’s best estimate of probable losses inherent in its accounts receivable portfolio determined on the basis of historical write off experience, aging of trade receivables, specific allowances for known troubled accounts and other currently available information. Customer accounts are written off against the allowance for uncollectible accounts when they are no longer deemed to be collectible. |
Inventories | Inventories UNIFI’s inventories are valued at the lower of cost or net realizable value, with the cost for the majority of its inventory determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies are valued using the average cost method. UNIFI’s estimates for inventory reserves for obsolete, slow-moving or excess inventories are based upon many factors, including historical recovery rates, the aging of inventories on-hand, inventory turnover, the expected net realizable value of specific products, and current economic conditions. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are recorded to long-term debt and amortized as additional interest expense following either the effective interest method or the straight-line method. In the event of any prepayment of its debt obligations, UNIFI accelerates the recognition of a pro-rata amount of issuance costs and records an extinguishment of debt. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment (“PP&E”) are stated at historical cost less accumulated depreciation. Plant and equipment under capital leases are stated at the present value of minimum lease payments less accumulated amortization. Additions or improvements that substantially extend the useful life of a particular asset are capitalized. Depreciation is calculated primarily utilizing the straight-line method over the following useful lives: Asset categories Useful lives in years Land improvements Five to Twenty Buildings and improvements Fifteen to Forty Machinery and equipment Two to Twenty-five Computer, software and office equipment Three to Seven Internal software development costs Three Transportation equipment Three to Fifteen Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining term of the lease. Assets under capital leases are amortized in a manner consistent with UNIFI’s normal depreciation policy if ownership is transferred by the end of the lease or if there is a bargain purchase option. If such ownership criteria are not met, amortization occurs over the shorter of the lease term or the asset’s useful life. UNIFI capitalizes its costs of developing internal software when the software is used as an integral part of its manufacturing or business processes and the technological feasibility has been established. Internal software costs are amortized over a period of three years and, in accordance with the nature of the project, charged to cost of sales or selling, general and administrative (“SG&A”) expenses. Fully depreciated assets are retained in cost and accumulated depreciation accounts until they are removed from service. In the case of disposals, asset costs and related accumulated depreciation amounts are removed from the accounts, and the net amounts, less proceeds from disposal, are included in the determination of net income and presented within other operating expense (income), net. Repair and maintenance costs related to PP&E, which do not significantly increase the useful life of an existing asset or do not significantly alter, modify or change the capabilities or production capacity of an existing asset, are expensed as incurred. Interest is capitalized for capital projects requiring a construction period. PP&E and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Long-lived assets to be disposed of by sale within one year are classified as held for sale and are reported at the lower of their carrying amount or fair value less cost to sell. Depreciation ceases for all assets classified as held for sale. Long-lived assets to be disposed of other than by sale are classified as held for use until they are disposed of and these assets are reported at the lower of their carrying amount or estimated fair value. |
Intangible Assets | Intangible Assets Finite-lived intangible assets, such as customer lists, non-compete agreements, licenses, trademarks and patents, are amortized over their estimated useful lives. UNIFI periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets are reviewed for impairment or obsolescence whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. UNIFI has no intangibles with indefinite lives. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates UNIFI evaluates its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Derivative Instruments | Derivative Instruments All derivatives are carried on the balance sheet at fair value and are classified according to their asset or liability position and the expected timing of settlement. On the date the derivative contract is entered into, UNIFI may designate the derivative into one of the following categories: • Fair value hedge – a hedge of the fair value of a recognized asset or liability or a firm commitment. Changes in the fair value of derivatives designated and qualifying as fair value hedges, as well as the offsetting gains and losses on the hedged items, are reported in income in the same period. • Cash flow hedge – a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability. The effective portion of gains and losses on cash flow hedges are recorded in accumulated other comprehensive loss, until the underlying transactions are recognized in income. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to current period earnings on the same line item as the underlying transaction. • Net investment hedge – if a derivative is used as a foreign currency hedge of a net investment in a foreign operation, its changes in fair value, to the extent effective as a hedge, are recorded in foreign currency translation adjustments in accumulated other comprehensive loss. Derivatives that are not designated for hedge accounting are marked to market at the end of each period with the changes in fair value recognized in current period earnings. Settlements of any fair value or cash flow derivative contracts are classified as cash flows from operating activities. |
Fair Value Measurements | Fair Value Measurements The accounting guidance for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). Fair value is based on assumptions that market participants would use when pricing the asset or liability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. UNIFI uses the following to measure fair value for its assets and liabilities: • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either indirectly or directly. • Level 3 – Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different tax years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which these items are expected to reverse. UNIFI reviews deferred tax assets to determine if it is more-likely-than-not they will be realized. If UNIFI determines it is not more-likely-than-not that a deferred tax asset will be realized, it records a valuation allowance to reverse the previously recognized benefit. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. UNIFI recognizes tax benefits related to uncertain tax positions if it believes it is more-likely-than-not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. UNIFI accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Penalties and interest related to income tax expense, if incurred, is included in provision for income taxes. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense for stock awards is based on the grant date fair value and expensed over the applicable vesting period. UNIFI has a policy of issuing new shares to satisfy award exercises and conversions. For awards with a service condition and a graded vesting schedule, UNIFI has elected an accounting policy of recognizing compensation cost on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was, in-substance, multiple awards. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign subsidiaries whose functional currency is other than the U.S. Dollar (“USD”) are translated at exchange rates existing at the respective balance sheet dates. Translation gains and losses are not included in determining net income, but are presented in a separate component of accumulated other comprehensive loss. UNIFI translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Transaction gains and losses are included within other operating expense (income), net. |
Revenue Recognition | Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which primarily occurs at a point in time, upon either shipment or delivery to the customer. Revenue is also recognized over time for certain contracts in which the associated inventory produced has no alternative use |
Cost of Sales | Cost of Sales The major components of cost of sales are: (i) materials and supplies, (ii) labor and fringe benefits, (iii) utility and overhead costs associated with manufactured products, (iv) cost of products purchased for resale, (v) shipping, handling and warehousing costs, (vi) research and development costs, (vii) depreciation expense and (viii) all other costs related to production or service activities. |
Shipping, Handling and Warehousing Costs | Shipping, Handling and Warehousing Costs Shipping, handling and warehousing costs include costs to store goods prior to shipment, prepare goods for shipment and physically move goods to customers. |
Research and Development Costs | Research and Development Costs Research and development costs include employee costs, production costs related to customer samples, operating supplies, consulting fees and other miscellaneous costs. The cost of research and development is charged to expense as incurred. Research and development costs were as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Research and development costs $ 12,359 $ 7,792 $ 7,177 |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses The major components of SG&A expenses are: (i) costs of UNIFI’s sales force, marketing and advertising efforts, and commissions, (ii) costs of maintaining UNIFI’s general and administrative support functions including executive management, information technology, human resources, legal and finance, (iii) amortization of intangible assets and (iv) all other costs required to be classified as SG&A expenses. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in SG&A expenses. UNIFI’s advertising costs include spending for items such as consumer marketing and branding initiatives, promotional items, trade shows, sponsorships and other programs. Advertising costs were as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Advertising costs $ 3,639 $ 3,439 $ 3,070 |
Self Insurance | Self-Insurance UNIFI self-insures certain risks such as employee healthcare claims. Reserves for incurred but not reported healthcare claims are estimated using historical data, the timeliness of claims processing, medical trends, inflation and any changes, if applicable, in the nature or type of the plan. |
Contingencies | Contingencies At any point in time, UNIFI may be a party to various pending legal proceedings, claims or environmental actions. Accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and estimable. Any amounts accrued are not discounted. Legal costs such as outside counsel fees and expenses are charged to expense as incurred. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Useful Lives of Property Plant and Equipment | Depreciation is calculated primarily utilizing the straight-line method over the following useful lives: Asset categories Useful lives in years Land improvements Five to Twenty Buildings and improvements Fifteen to Forty Machinery and equipment Two to Twenty-five Computer, software and office equipment Three to Seven Internal software development costs Three Transportation equipment Three to Fifteen |
Schedule of Research and Development Costs | Research and development costs were as follows For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Research and development costs $ 12,359 $ 7,792 $ 7,177 |
Schedule of Advertising Costs | Advertising costs were as follows For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Advertising costs $ 3,639 $ 3,439 $ 3,070 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Schedule of Adjustment to Opening Balance of Fiscal 2019 Retained Earnings | Upon adoption in fiscal 2019, UNIFI determined that the impact of the new revenue recognition guidance was immaterial. Accordingly, UNIFI utilized the modified retrospective method of adoption and recorded the impact of open contracts as of June 24, 2018 as an adjustment to the opening balance of fiscal 2019 retained earnings, and prior period balances were not adjusted. “ Revenue earned in fourth quarter fiscal 2018 related to contracts open at June 24, 2018 $ 8,593 Less associated cost of sales 7,992 Less associated income tax 142 Adjustment to retained earnings for contracts open at June 24, 2018 $ 459 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenues for UNIFI | The following table presents disaggregated revenues for UNIFI: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Third-party textile manufacturer $ 700,077 $ 670,239 $ 639,685 Service 8,727 8,673 7,585 Net sales $ 708,804 $ 678,912 $ 647,270 |
Summary of Impact of Adoption of New Revenue Recognition Guidance | The following table summarizes the impact of the adoption of the new revenue recognition guidance on UNIFI's applicable financial statement line items for fiscal 2019. Any impact to other financial statement line items is insignificant and excluded from the below. Financial Statement Line Item Treatment under previous Revenue Recognition Guidance Adjustments in connection with New Revenue Recognition Guidance As reported under New Revenue Recognition Guidance Revenue $ 709,538 $ (734 ) $ 708,804 Cost of sales $ 643,212 $ (716 ) $ 642,496 Gross profit (loss) $ 66,326 $ (18 ) $ 66,308 Inventory $ 141,012 $ (7,231 ) $ 133,781 Contract assets $ — $ 7,794 $ 7,794 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables, net consists of the following: June 30, 2019 June 24, 2018 Customer receivables $ 89,495 $ 87,633 Allowance for uncollectible accounts (2,338 ) (2,059 ) Reserves for quality claims (961 ) (564 ) Net customer receivables 86,196 85,010 Other receivables 2,688 1,263 Total receivables, net $ 88,884 $ 86,273 |
Allowance for Credit Losses on Financing Receivables | The changes in UNIFI’s allowance for uncollectible accounts and reserves for quality claims were as follows: Allowance for Uncollectible Accounts Reserves for Quality Claims Balance at June 26, 2016 $ (2,839 ) $ (795 ) Credited (charged) to costs and expenses 123 (2,719 ) Translation activity 34 3 Deductions 460 2,233 Balance at June 25, 2017 $ (2,222 ) $ (1,278 ) Credited (charged) to costs and expenses 38 (821 ) Translation activity 125 (9 ) Deductions — 1,544 Balance at June 24, 2018 $ (2,059 ) $ (564 ) Charged to costs and expenses (308 ) (2,019 ) Translation activity (9 ) 5 Deductions 38 1,617 Balance at June 30, 2019 $ (2,338 ) $ (961 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories Components | Inventories consists of the following: June 30, 2019 June 24, 2018 Raw materials $ 55,531 $ 45,448 Supplies 9,020 7,314 Work in process 8,510 8,834 Finished goods 63,111 66,314 Gross inventories 136,172 127,910 Inventory reserves (2,391 ) (1,599 ) Total inventories $ 133,781 $ 126,311 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Assets Current [Abstract] | |
Schedule of Other Current Assets | Other current assets consists of the following: June 30, 2019 June 24, 2018 Contract assets $ 7,794 $ — Vendor deposits 4,187 3,703 Value-added taxes receivable 2,519 1,024 Prepaid expenses 1,856 1,802 Total other current assets $ 16,356 $ 6,529 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
PP&E Net Components | PP&E, net consists of the following: June 30, 2019 June 24, 2018 Land $ 3,138 $ 2,860 Land improvements 15,249 15,118 Buildings and improvements 161,566 157,354 Assets under capital leases 31,897 34,568 Machinery and equipment 603,950 589,237 Computers, software and office equipment 23,011 19,723 Transportation equipment 5,809 5,029 Construction in progress 6,483 8,651 Gross PP&E 851,103 832,540 Less: accumulated depreciation (636,135 ) (619,654 ) Less: accumulated amortization – capital leases (8,181 ) (7,370 ) Total PP&E, net $ 206,787 $ 205,516 |
Schedule of Capital Leased Assets | Assets under capital leases consists of the following: June 30, 2019 June 24, 2018 Machinery and equipment $ 22,991 $ 24,467 Transportation equipment 5,078 6,273 Building improvements 3,828 3,828 Gross assets under capital leases $ 31,897 $ 34,568 |
Schedule of Depreciation Expense and Repair and Maintenance Expense | Depreciation expense and repair and maintenance expenses were as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Depreciation expense $ 21,602 $ 21,109 $ 18,483 Repair and maintenance expenses 21,226 19,761 18,319 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets, Net | Intangible assets, net consists of the following: June 30, 2019 June 24, 2018 Customer lists $ 23,615 $ 23,615 Non-compete agreements 1,875 1,925 Trademarks, licenses and other 416 185 Total intangible assets, gross 25,906 25,725 Accumulated amortization – customer lists (23,166 ) (22,527 ) Accumulated amortization – non-compete agreements (438 ) (108 ) Accumulated amortization – trademarks, licenses and other (132 ) (100 ) Total accumulated amortization (23,736 ) (22,735 ) Total intangible assets, net $ 2,170 $ 2,990 |
Amortization Expense for Intangible Assets | Amortization expense for intangible assets consists of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Customer lists $ 639 $ 843 $ 1,020 Non-compete agreements 379 205 287 Trademarks, licenses and other 94 62 74 Total amortization expense $ 1,112 $ 1,110 $ 1,381 |
Expected Intangible Asset Amortization | The following table presents the expected intangible asset amortization for the next five fiscal years: Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Expected amortization $ 831 $ 538 $ 473 $ 328 $ — |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets, Noncurrent | Other non-current assets consists of the following: June 30, 2019 June 24, 2018 Interest rate swaps $ — $ 2,259 Other 671 821 Total other non-current assets $ 671 $ 3,080 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consists of the following: June 30, 2019 June 24, 2018 Payroll and fringe benefits $ 9,775 $ 10,833 Utilities 2,061 2,594 Severance 2,058 362 Property taxes 999 835 Current portion of supplemental post-employment plan 411 508 Other 1,545 2,588 Total accrued expenses $ 16,849 $ 17,720 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Components | The following table presents the total balances outstanding for UNIFI’s debt obligations, their scheduled maturity dates and the weighted average interest rates for borrowings as well as the applicable current portion of long-term debt: Weighted Average Scheduled Interest Rate as of Principal Amounts as of Maturity Date June 30, 2019 June 30, 2019 June 24, 2018 ABL Revolver December 2023 3.7% $ 19,400 $ 28,100 ABL Term Loan (1) December 2023 3.3% 97,500 85,000 Capital lease obligations (2) 3.9% 11,118 18,107 Total debt 128,018 131,207 Current ABL Term Loan (10,000 ) (10,000 ) Current portion of capital lease obligations (5,519 ) (6,996 ) Unamortized debt issuance costs (958 ) (658 ) Total long-term debt $ 111,541 $ 113,553 (1) Includes the effects of interest rate swaps. (2) Scheduled maturity dates for capital lease obligations range from August 2019 to November 2027. |
Scheduled Maturities of Outstanding Debt Obligations | The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the following five fiscal years and thereafter: Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Thereafter ABL Revolver $ — $ — $ — $ — $ 19,400 $ — ABL Term Loan 10,000 10,000 10,000 10,000 57,500 — Capital lease obligations 5,519 2,623 2,417 90 95 374 Total $ 15,519 $ 12,623 $ 12,417 $ 10,090 $ 76,995 $ 374 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities Components | Other long-term liabilities consists of the following: June 30, 2019 June 24, 2018 Supplemental post-employment plan $ 2,695 $ 3,045 Uncertain tax positions 1,043 131 Interest rate swaps 647 — Other 1,800 2,161 Total other long-term liabilities $ 6,185 $ 5,337 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Income Taxes | The components of income before income taxes consist of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 U.S. $ (13,326 ) $ (7,852 ) $ 2,689 Foreign 23,337 38,063 40,586 Income before income taxes $ 10,011 $ 30,211 $ 43,275 |
Schedule of Provision (Benefit) for Income Taxes | Provision (benefit) for income taxes consists of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Current: Federal $ (178 ) $ (4,918 ) $ (6,082 ) State 28 (416 ) (130 ) Foreign 7,282 9,639 10,224 Total current tax expense 7,132 4,305 4,012 Deferred: Federal (813 ) (5,315 ) 6,602 State 1,097 (872 ) 162 Foreign 139 391 122 Total deferred tax expense 423 (5,796 ) 6,886 Provision (benefit) for income taxes $ 7,555 $ (1,491 ) $ 10,898 |
Reconciliation from Federal Statutory Tax Rate to Effective Tax Rate | Reconciliation from the federal statutory tax rate to the effective tax rate is as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Federal statutory tax rate 21.0 % 28.3 % 35.0 % Foreign income taxed at different rates 16.1 (2.4 ) (10.2 ) Repatriation of foreign earnings and withholding taxes 20.3 1.8 1.4 Repatriation of foreign earnings due to tax reform 0.7 23.9 — Revaluation of U.S. deferred balances due to tax reform 3.1 (14.2 ) — U.S. tax on GILTI 32.5 — — Change in valuation allowance (1.5 ) (12.9 ) (0.5 ) Foreign tax credits (11.9 ) (11.0 ) — Domestic production activities deduction (5.6 ) 0.5 2.0 Research and other credits (7.7 ) (1.8 ) (5.1 ) State income taxes, net of federal tax benefit (0.6 ) (3.9 ) 0.2 Change in uncertain tax positions 8.2 (15.1 ) 1.8 Nondeductible compensation 5.1 1.6 — Nontaxable income (4.2 ) — — Nondeductible expenses and other — 0.3 0.6 Effective tax rate 75.5 % (4.9 )% 25.2 % |
Deferred Tax Assets and Liabilities | The significant components of UNIFI’s deferred tax assets and liabilities consist of the following: June 30, 2019 June 24, 2018 Deferred tax assets: Investments, including unconsolidated affiliates $ 5,680 $ 5,429 Intangible assets 1,679 2,141 Accrued compensation and benefits 1,761 2,089 Tax credits 17,237 5,845 NOL carryforwards 4,381 10,008 Research and development costs 4,081 — Other items 5,555 4,847 Total gross deferred tax assets 40,374 30,359 Valuation allowance (26,020 ) (15,143 ) Net deferred tax assets 14,354 15,216 Deferred tax liabilities: PP&E (18,325 ) (19,375 ) Other (295 ) (216 ) Total deferred tax liabilities (18,620 ) (19,591 ) Net deferred tax liabilities $ (4,266 ) $ (4,375 ) |
Deferred Tax Valuation Allowance Activities | The balances and activity for UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Balance at beginning of year $ (15,143 ) $ (17,957 ) $ (13,550 ) (Increase) decrease in valuation allowance (10,877 ) 2,814 (4,407 ) Balance at end of year $ (26,020 ) $ (15,143 ) $ (17,957 ) |
Schedule of Components of Deferred Tax Valuation Allowance | Components of UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Investments, including unconsolidated affiliates $ (5,696 ) $ (5,522 ) $ (7,789 ) NOL carryforwards (1) (4,048 ) (4,191 ) (9,379 ) Tax credits (16,276 ) (5,430 ) (789 ) Total deferred tax valuation allowance $ (26,020 ) $ (15,143 ) $ (17,957 ) (1) Includes certain U.S. NOLs and capital losses outside the U.S. consolidated tax filing group. |
Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits | A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Balance at beginning of year $ 166 $ 4,463 $ 4,254 Gross increases related to current period tax positions 26 26 124 Gross increases (decreases) related to tax positions in prior periods 980 (119 ) 524 Gross decreases related to settlements with tax authorities — (4,204 ) (439 ) Gross decreases related to lapse of applicable statute of limitations (89 ) — — Balance at end of year $ 1,083 $ 166 $ 4,463 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Number of Securities Remaining Available for Future Issuance | The following table provides information as of June 30, 2019 with respect to the number of securities remaining available for future issuance under the Amended 2013 Plan: Authorized under the Amended 2013 Plan 1,250 Plus: Awards expired, forfeited or otherwise terminated unexercised 135 Less: Awards granted to employees (265 ) Less: Awards granted to non-employee directors (89 ) Available for issuance under the Amended 2013 Plan 1,031 |
Stock Option Valuation Assumptions | For stock options granted, the valuation models used the following assumptions: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Expected term (years) 5.5 5.2 5.0 Risk-free interest rate 2.9 % 2.0 % 1.4 % Volatility 32.6 % 34.3 % 37.9 % Dividend yield — — — |
Summary of Stock Option Activity | A summary of stock option activity for fiscal 2019 is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 24, 2018 405 $ 23.73 Granted 223 $ 23.33 Exercised (69 ) $ 10.05 Cancelled or forfeited (157 ) $ 25.74 Expired (25 ) $ 27.98 Outstanding at June 30, 2019 377 $ 24.88 6.8 $ 386 Vested and expected to vest as of June 30, 2019 377 $ 24.88 6.8 $ 386 Exercisable at June 30, 2019 241 $ 24.10 5.7 $ 386 |
Summary of RSU and VSU Activity | A summary of RSU and VSU activity for fiscal 2019 is as follows: Non-vested Weighted Average Grant Date Fair Value Vested Total Weighted Average Grant Date Fair Value Outstanding at June 24, 2018 198 $ 29.50 148 346 $ 27.45 Granted 122 $ 23.46 — 122 $ 23.46 Vested (105 ) $ 26.39 105 — $ — Converted — $ — (61 ) (61 ) $ 28.21 Cancelled or forfeited (102 ) $ 26.86 — (102 ) $ 26.86 Outstanding at June 30, 2019 113 $ 27.50 192 305 $ 25.61 |
Stock Based Compensation Total Cost Charged Against Income | The total cost charged against income related to all stock-based compensation arrangements was as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Stock options $ 671 $ 884 $ 749 RSUs and VSUs 1,977 4,042 1,432 Total compensation cost $ 2,648 $ 4,926 $ 2,181 |
Defined Contribution Plan (Tabl
Defined Contribution Plan (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Employer Matching Contribution Expense Related to 401(k) Plan | The following table presents the employer matching contribution expense related to the 401(k) Plan: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Matching contribution expense $ 2,836 $ 2,643 $ 2,538 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities of Fair Value on Recurring Basis | UNIFI’s financial assets and liabilities accounted for at fair value on a recurring basis and the level within the fair value hierarchy used to measure these items are as follows: As of June 30, 2019 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other long-term liabilities Level 2 $ 186 Swap B USD $ 30,000 Other long-term liabilities Level 2 $ 279 Swap C USD $ 25,000 Other long-term liabilities Level 2 $ 182 Contingent consideration — Accrued expenses Level 3 $ — As of June 24, 2018 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other non-current assets Level 2 $ 584 Swap B USD $ 30,000 Other non-current assets Level 2 $ 877 Swap C USD $ 25,000 Other non-current assets Level 2 $ 798 Contingent consideration — Accrued expenses Level 3 $ 529 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax | The components of and the changes in accumulated other comprehensive loss, net of tax, as applicable, consist of the following: Foreign Currency Translation Adjustments Changes in Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at June 26, 2016 $ (29,681 ) $ (70 ) $ (29,751 ) Other comprehensive loss, net of tax (2,691 ) (438 ) (3,129 ) Balance at June 25, 2017 $ (32,372 ) $ (508 ) $ (32,880 ) Other comprehensive (loss) income, net of tax (9,896 ) 2,243 (7,653 ) Balance at June 24, 2018 $ (42,268 ) $ 1,735 $ (40,533 ) Other comprehensive loss, net of tax (461 ) (2,235 ) (2,696 ) Balance at June 30, 2019 $ (42,729 ) $ (500 ) $ (43,229 ) |
Summary of Other Comprehensive (Loss) Income | A summary of other comprehensive (loss) income for fiscal 2019, 2018 and 2017 is provided as follows: Fiscal 2019 Fiscal 2018 Fiscal 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive (loss) income: Foreign currency translation adjustments $ (681 ) $ — $ (681 ) $ (9,250 ) $ — $ (9,250 ) $ (2,936 ) $ — $ (2,936 ) Foreign currency translation adjustments for an unconsolidated affiliate 220 — 220 (646 ) — (646 ) 245 — 245 Changes in interest rate swaps, net of reclassification adjustments (2,906 ) 671 (2,235 ) 3,067 (824 ) 2,243 (737 ) 299 (438 ) Other comprehensive loss, net $ (3,367 ) $ 671 $ (2,696 ) $ (6,829 ) $ (824 ) $ (7,653 ) $ (3,428 ) $ 299 $ (3,129 ) |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share (“EPS”) is as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Basic EPS Net income attributable to Unifi, Inc. $ 2,456 $ 31,702 $ 32,875 Weighted average common shares outstanding 18,395 18,294 18,136 Basic EPS $ 0.13 $ 1.73 $ 1.81 Diluted EPS Net income attributable to Unifi, Inc. $ 2,456 $ 31,702 $ 32,875 Weighted average common shares outstanding 18,395 18,294 18,136 Net potential common share equivalents – stock options and RSUs 300 343 307 Adjusted weighted average common shares outstanding 18,695 18,637 18,443 Diluted EPS $ 0.13 $ 1.70 $ 1.78 Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 314 118 390 Excluded from the calculation of diluted shares: Unvested stock options that vest upon achievement of certain market conditions — — — |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates and Variable Interest Entities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |
Schedule of Raw Material Purchases under Supply Agreement | UNIFI’s raw material purchases under this supply agreement consist of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 UNF $ 1,735 $ 1,800 $ 2,254 UNFA 23,089 21,731 20,493 Total $ 24,824 $ 23,531 $ 22,747 |
Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates | Condensed balance sheet and income statement information for UNIFI’s unconsolidated affiliates (including reciprocal balances) is presented in the following tables. PAL is defined as significant and its information is separately disclosed. PAL does not meet the criteria for segment reporting. For UNIFI’s fiscal 2019, 2018 and 2017, PAL’s corresponding fiscal periods each consisted of 52 weeks. As of June 30, 2019 PAL Other Total Current assets $ 299,610 $ 7,218 $ 306,828 Noncurrent assets 158,304 696 159,000 Current liabilities 70,875 4,069 74,944 Noncurrent liabilities 3,252 — 3,252 Shareholders’ equity and capital accounts 383,787 3,845 387,632 UNIFI’s portion of undistributed earnings 43,343 821 44,164 As of June 24, 2018 PAL Other Total Current assets $ 289,683 $ 7,598 $ 297,281 Noncurrent assets 162,242 875 163,117 Current liabilities 71,026 3,722 74,748 Noncurrent liabilities 3,389 — 3,389 Shareholders’ equity and capital accounts 377,510 4,751 382,261 |
Income Statement Information [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates | For the Fiscal Year Ended June 30, 2019 PAL Other Total Net sales $ 836,675 $ 25,621 $ 862,296 Gross profit 24,455 4,713 29,168 Income from operations 6,575 2,988 9,563 Net income 7,534 3,093 10,627 Depreciation and amortization 40,679 190 40,869 Cash received by PAL under cotton rebate program 13,367 — 13,367 Earnings recognized by PAL for cotton rebate program 12,896 — 12,896 Distributions received 647 2,000 2,647 For the Fiscal Year Ended June 24, 2018 PAL Other Total Net sales $ 796,010 $ 24,097 $ 820,107 Gross profit 31,112 4,646 35,758 Income from operations 12,032 2,917 14,949 Net income 12,990 2,961 15,951 Depreciation and amortization 39,404 190 39,594 Cash received by PAL under cotton rebate program 13,797 — 13,797 Earnings recognized by PAL for cotton rebate program 13,334 — 13,334 Distributions received 9,236 3,000 12,236 For the Fiscal Year Ended June 25, 2017 PAL Other Total Net sales $ 754,285 $ 22,905 $ 777,190 Gross profit 26,275 4,877 31,152 Income from operations 10,406 3,061 13,467 Net income 7,814 2,988 10,802 Depreciation and amortization 42,801 177 42,978 Cash received by PAL under cotton rebate program 14,293 — 14,293 Earnings recognized by PAL for cotton rebate program 13,491 — 13,491 Distributions received 822 1,500 2,322 |
Parkdale America LLC [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Schedule of Reconciliation Between Share of Underlying Equity | The reconciliation between UNIFI’s share of the underlying equity of PAL and its investment is as follows: Underlying equity as of June 30, 2019 $ 130,489 Initial excess capital contributions 53,363 Impairment charge recorded by UNIFI in 2007 (74,106 ) Anti-trust lawsuit against PAL in which UNIFI did not participate 2,652 Investment as of June 30, 2019 $ 112,398 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Capital Lease Payments and Future Minimum Lease Payments Under Non-Cancelable Operating Leases | Future minimum capital lease payments and future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of June 30, 2019 by fiscal year are: Capital leases Operating leases Fiscal 2020 $ 5,917 $ 3,164 Fiscal 2021 2,870 2,731 Fiscal 2022 2,565 1,492 Fiscal 2023 189 878 Fiscal 2024 189 755 Fiscal years thereafter 675 309 Total minimum lease payments $ 12,405 $ 9,329 Less estimated executory costs (644 ) Less interest (643 ) Present value of net minimum capital lease payments 11,118 Less current portion of capital lease obligations (5,519 ) Long-term portion of capital lease obligations $ 5,599 |
Schedule of Rental Expenses Incurred Under Operating Leases and Included in Operating Income | Rental expenses incurred under operating leases and included in operating income consist of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Rental expenses $ 4,915 $ 4,835 $ 4,357 |
Schedule of Unconditional Purchase Obligations | On a fiscal year basis, the minimum payments expected to be made as part of such commitments are as follows: Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Thereafter Unconditional purchase obligations $ 7,831 $ 6,952 $ 6,771 $ 3,459 $ 5 $ 12 Unconditional service obligations 3,379 2,875 2,171 694 443 269 Total unconditional obligations $ 11,210 $ 9,827 $ 8,942 $ 4,153 $ 448 $ 281 |
Schedule of Costs Incurred Under Purchases and Services Obligations | For fiscal 2019, 2018 and 2017, total costs incurred under these commitments consisted of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Costs for unconditional purchase obligations $ 23,542 $ 24,777 $ 26,984 Costs for unconditional service obligations 5,169 2,454 2,575 Total $ 28,711 $ 27,231 $ 29,559 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Payables | Related party payables consist of the following: June 30, 2019 June 24, 2018 Salem Leasing Corporation (included within accounts payable) $ 634 $ 306 Salem Leasing Corporation (capital lease obligation) 806 875 Total related party payables $ 1,440 $ 1,181 |
Schedule of Related Party Transactions | Related party transactions in excess of $120 for the current or prior two fiscal years consist of the matters in the table below and the following paragraphs: For the Fiscal Year Ended Affiliated Entity Transaction Type June 30, 2019 June 24, 2018 June 25, 2017 Salem Leasing Corporation Transportation equipment costs and capital lease debt service $ 4,102 $ 3,979 $ 3,914 Salem Global Logistics, Inc. Freight service income — 147 128 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Selected Financial Information for Polyester, Nylon, International and Other Segments | Selected financial information is presented below: For the Fiscal Year Ended June 30, 2019 Polyester Nylon Brazil Asia All Other Total Net sales $ 370,770 $ 98,127 $ 102,877 $ 132,866 $ 4,164 $ 708,804 Cost of sales 346,951 90,231 84,298 117,166 3,850 642,496 Gross profit 23,819 7,896 18,579 15,700 314 66,308 Segment depreciation expense 16,068 2,083 1,537 — 229 19,917 Segment Profit $ 39,887 $ 9,979 $ 20,116 $ 15,700 $ 543 $ 86,225 For the Fiscal Year Ended June 24, 2018 Polyester Nylon Brazil Asia All Other Total Net sales $ 364,169 $ 102,639 $ 110,587 $ 97,297 $ 4,220 $ 678,912 Cost of sales 330,975 92,155 84,726 80,677 3,951 592,484 Gross profit 33,194 10,484 25,861 16,620 269 86,428 Segment depreciation expense 15,893 2,197 1,648 — 256 19,994 Segment Profit $ 49,087 $ 12,681 $ 27,509 $ 16,620 $ 525 $ 106,422 For the Fiscal Year Ended June 25, 2017 Polyester Nylon Brazil Asia All Other Total Net sales $ 355,740 $ 112,704 $ 109,079 $ 64,607 $ 5,140 $ 647,270 Cost of sales 315,655 100,633 82,463 48,624 5,731 553,106 Gross profit (loss) 40,085 12,071 26,616 15,983 (591 ) 94,164 Segment depreciation expense 13,921 2,125 1,119 — 638 17,803 Segment Profit $ 54,006 $ 14,196 $ 27,735 $ 15,983 $ 47 $ 111,967 |
Reconciliations of Segment Gross Profit (Loss) to Consolidated Income Before Income Taxes | The reconciliations of segment gross profit (loss) to consolidated income before income taxes are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Polyester $ 23,819 $ 33,194 $ 40,085 Nylon 7,896 10,484 12,071 Brazil 18,579 25,861 26,616 Asia 15,700 16,620 15,983 All Other 314 269 (591 ) Segment gross profit 66,308 86,428 94,164 SG&A expenses 52,690 56,077 50,829 Provision (benefit) for bad debts 308 (38 ) (123 ) Other operating expense (income), net 2,350 1,590 (310 ) Operating income 10,960 28,799 43,768 Interest income (628 ) (560 ) (517 ) Interest expense 5,414 4,935 3,578 Loss on extinguishment of debt 131 — — Loss on sale of business — — 1,662 Equity in earnings of unconsolidated affiliates (3,968 ) (5,787 ) (4,230 ) Income before income taxes $ 10,011 $ 30,211 $ 43,275 |
Reconciliation of Segment Depreciation and Amortization Expense to Consolidated Depreciation and Amortization Expense | The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Polyester $ 16,068 $ 15,893 $ 13,921 Nylon 2,083 2,197 2,125 Brazil 1,537 1,648 1,119 Asia — — — All Other 229 256 638 Segment depreciation expense 19,917 19,994 17,803 Other depreciation and amortization expense 3,086 2,591 2,565 Depreciation and amortization expense $ 23,003 $ 22,585 $ 20,368 |
Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures | The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Polyester $ 17,291 $ 16,605 $ 25,442 Nylon 624 1,366 1,247 Brazil 2,574 3,063 4,540 Asia 32 36 194 Segment capital expenditures 20,521 21,070 31,423 Other capital expenditures 4,350 3,959 1,767 Capital expenditures $ 24,871 $ 25,029 $ 33,190 |
Reconciliation of Segment Total Assets to Consolidated Total Assets | The reconciliations of segment total assets to consolidated total assets are as follows: June 30, 2019 June 24, 2018 Polyester $ 287,608 $ 284,261 Nylon 57,055 57,378 Brazil 67,490 59,657 Asia 35,219 35,349 Segment total assets 447,372 436,645 Other current assets 10,327 30,945 Other PP&E 18,664 17,373 Other non-current assets 1,468 4,205 Investments in unconsolidated affiliates 114,320 112,639 Total assets $ 592,151 $ 601,807 |
Product Sales Excluding All Other Category | Product sales (excluding the All Other category) are as follows. Polyester product sales are calculated by aggregating the sales of the Polyester, Brazil and Asia Segments. Nylon product sales represent sales for the Nylon Segment. For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Polyester $ 606,513 $ 572,053 $ 529,426 Nylon 98,127 102,639 112,704 Total $ 704,640 $ 674,692 $ 642,130 |
Geographic Information for Net Sales | Geographic information is set forth below, beginning with net sales. For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 U.S. $ 426,725 $ 420,920 $ 424,490 Brazil 102,877 110,587 109,079 China 125,667 90,998 63,075 Remaining Foreign Countries 53,535 56,407 50,626 Total $ 708,804 $ 678,912 $ 647,270 Export sales from UNIFI’s U.S. operations to external customers $ 84,707 $ 94,205 $ 104,229 |
Geographic Information for Long-lived Assets | Geographic information for long-lived assets is as follows: June 30, 2019 June 24, 2018 June 25, 2017 U.S. $ 305,483 $ 305,229 $ 304,696 Brazil 13,218 12,679 12,616 China 78 92 94 Remaining Foreign Countries 5,169 6,225 8,266 Total $ 323,948 $ 324,225 $ 325,672 |
Geographic Information for Total Assets | Geographic information for total assets is as follows: June 30, 2019 June 24, 2018 June 25, 2017 U.S. $ 457,571 $ 455,963 $ 445,947 Brazil 67,490 59,657 58,598 China 30,982 32,703 20,641 Remaining Foreign Countries 36,108 53,484 46,317 Total $ 592,151 $ 601,807 $ 571,503 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | Quarterly financial data and selected highlights are as follows: For the Fiscal Quarter Ended September 30, 2018 December 30, 2018 March 31, 2019 June 30, 2019 Net sales (1) $ 181,611 $ 167,711 $ 179,989 $ 179,493 Gross profit ( 2 ) 20,019 14,156 13,791 18,342 Net income (loss) (3) 1,812 1,171 (1,529 ) 1,002 Net income (loss) per common share: Basic ( 4 ) $ 0.10 $ 0.06 $ (0.08 ) $ 0.05 Diluted ( 4 ) $ 0.10 $ 0.06 $ (0.08 ) $ 0.05 For the Fiscal Quarter Ended September 24, 2017 December 24, 2017 March 25, 2018 June 24, 2018 Net sales $ 164,242 $ 167,478 $ 165,867 $ 181,325 Gross profit ( 5 ) 23,292 22,676 16,556 23,904 Net income (6) 8,960 11,802 176 10,764 Net income per common share: Basic ( 4 ) $ 0.49 $ 0.65 $ 0.01 $ 0.59 Diluted ( 4 ) $ 0.48 $ 0.63 $ 0.01 $ 0.58 (1) The fiscal quarter ended September 30, 2018 is comprised of fourteen weeks . (2) Gross profit for the fiscal quarter ended December 30, 2018 includes the adverse impact of a raw material cost spike that could not be effectively offset with timely corresponding selling price increases. Gross profit for the fiscal quarters ended December 30, 2018, March 31, 2019 and June 30, 2019 includes the adverse impact of significant competitive pressure caused by elevated levels of polyester textured yarn imports. (3) Net income for the fiscal quarter ended June 30, 2019 includes severance charges for involuntary terminations. ( 4 ) Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. ( 5 ) Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with timely corresponding selling price increases. ( 6 ) Net income for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain income applicable to fiscal 2015. Net income for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Payments for Interest and Taxes | Cash payments for interest and taxes consist of the following: For the Fiscal Year Ended June 30, 2019 June 24, 2018 June 25, 2017 Interest, net of capitalized interest of $219, $190 and $652, respectively $ 5,342 $ 4,459 $ 3,282 Income taxes, net of refunds 2,623 9,962 8,123 |
Background - Additional Informa
Background - Additional Information (Details) | Jun. 30, 2019Entity |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of countries in which entity operates | 4 |
Parkdale America LLC [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Equity method investment, ownership percentage | 34.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Land Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 5 years |
Land Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 20 years |
Building and Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 15 years |
Building and Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 25 years |
Computers, Software and Office Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 3 years |
Computers, Software and Office Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 7 years |
Internal Software Development Costs [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 3 years |
Transportation Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 3 years |
Transportation Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 15 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Accounting Policies [Line Items] | |
Indefinite-Lived intangible assets | $ 0 |
Internal Software Development Costs [Member] | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Research and Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Research And Development Expense [Abstract] | |||
Research and development costs | $ 12,359 | $ 7,792 | $ 7,177 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 3,639 | $ 3,439 | $ 3,070 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
ASU 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease to provision for income taxes for excess tax benefits | $ 230 | |
Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) [Member] | Scenario, Forecast [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease initial term | 12 months | |
Lease, package of transition practical expedients | true | |
Lease, hindsight practical expedient | false | |
Percentage of increase in total assets due to recognition of right-of-use assets and corresponding lease liabilities | 2.00% |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Schedule of Adjustment to Opening Balance of Fiscal 2019 Retained Earnings (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 30, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 |
Retained Earnings Adjustments [Line Items] | ||||||||||||||||
Revenue earned in fourth quarter fiscal 2018 related to contracts open at June 24, 2018 | $ 179,493 | $ 179,989 | $ 167,711 | $ 181,611 | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 708,804 | $ 678,912 | $ 647,270 | |||||
Less associated cost of sales | 642,496 | 592,484 | 553,106 | |||||||||||||
Less associated income tax | 7,555 | $ (1,491) | $ 10,898 | |||||||||||||
ASU No. 2014-09 [Member] | ||||||||||||||||
Retained Earnings Adjustments [Line Items] | ||||||||||||||||
Revenue earned in fourth quarter fiscal 2018 related to contracts open at June 24, 2018 | $ 8,593 | |||||||||||||||
Less associated cost of sales | 7,992 | |||||||||||||||
Less associated income tax | 142 | |||||||||||||||
Adjustment to retained earnings for contracts open at June 24, 2018 | $ 459 | $ 459 | ||||||||||||||
[1] | The fiscal quarter ended September 30, 2018 is comprised of fourteen weeks. |
Sale of Renewables - Additional
Sale of Renewables - Additional Information (Details) - USD ($) $ in Thousands | Dec. 23, 2016 | Jun. 25, 2017 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Loss on sale of business | $ 1,662 | |
Repreve Renewables LLC [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Majority equity ownership interest percentage by parent | 60.00% | |
Loss on sale of business | $ 1,662 | |
Repreve Renewables LLC [Member] | Third-Party Joint Venture Partner [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Sale of equity ownership to third party | $ 500 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues for UNIFI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 30, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||||||
Net sales | $ 179,493 | $ 179,989 | $ 167,711 | $ 181,611 | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 708,804 | $ 678,912 | $ 647,270 | ||||
Third-Party Textile Manufacturer [Member] | |||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||
Net sales | 700,077 | 670,239 | 639,685 | ||||||||||||
Service [Member] | |||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||
Net sales | $ 8,727 | $ 8,673 | $ 7,585 | ||||||||||||
[1] | The fiscal quarter ended September 30, 2018 is comprised of fourteen weeks. |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Impact of Adoption of New Revenue Recognition Guidance (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | ||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||||||||||
Revenue | $ 179,493 | [1] | $ 179,989 | [1] | $ 167,711 | [1] | $ 181,611 | [1] | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 708,804 | $ 678,912 | $ 647,270 | |||||
Cost of sales | 642,496 | 592,484 | 553,106 | |||||||||||||||||
Gross profit (loss) | 18,342 | [2] | $ 13,791 | [2] | $ 14,156 | [2] | $ 20,019 | [2] | 23,904 | [3] | $ 16,556 | [3] | $ 22,676 | [3] | $ 23,292 | [3] | 66,308 | 86,428 | $ 94,164 | |
Inventories | $ 126,311 | 133,781 | $ 126,311 | 133,781 | $ 126,311 | |||||||||||||||
Contract assets | 7,794 | 7,794 | ||||||||||||||||||
ASU No. 2014-09 [Member] | ||||||||||||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||||||||||
Revenue | 8,593 | |||||||||||||||||||
Cost of sales | $ 7,992 | |||||||||||||||||||
ASU No. 2014-09 [Member] | Treatment Under Previous Revenue Recognition Guidance [Member] | ||||||||||||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||||||||||
Revenue | 709,538 | |||||||||||||||||||
Cost of sales | 643,212 | |||||||||||||||||||
Gross profit (loss) | 66,326 | |||||||||||||||||||
Inventories | 141,012 | 141,012 | ||||||||||||||||||
ASU No. 2014-09 [Member] | Adjustments In Connection With New Revenue Recognition Guidance [Member] | ||||||||||||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||||||||||
Revenue | (734) | |||||||||||||||||||
Cost of sales | (716) | |||||||||||||||||||
Gross profit (loss) | (18) | |||||||||||||||||||
Inventories | (7,231) | (7,231) | ||||||||||||||||||
Contract assets | $ 7,794 | $ 7,794 | ||||||||||||||||||
[1] | The fiscal quarter ended September 30, 2018 is comprised of fourteen weeks. | |||||||||||||||||||
[2] | Gross profit for the fiscal quarter ended December 30, 2018 includes the adverse impact of a raw material cost spike that could not be effectively offset with timely corresponding selling price increases. Gross profit for the fiscal quarters ended December 30, 2018, March 31, 2019 and June 30, 2019 includes the adverse impact of significant competitive pressure caused by elevated levels of polyester textured yarn imports. | |||||||||||||||||||
[3] | Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with timely corresponding selling price increases. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Change in contract assets balance | $ 7,794 |
Receivables, Net - Schedule of
Receivables, Net - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Receivables [Abstract] | ||
Customer receivables | $ 89,495 | $ 87,633 |
Allowance for uncollectible accounts | (2,338) | (2,059) |
Reserves for quality claims | (961) | (564) |
Net customer receivables | 86,196 | 85,010 |
Other receivables | 2,688 | 1,263 |
Total receivables, net | $ 88,884 | $ 86,273 |
Receivables, Net - Allowance fo
Receivables, Net - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Allowance for Doubtful Accounts [Member] | |||
Balance at beginning of period | $ (2,059) | $ (2,222) | $ (2,839) |
Credited (charged) to costs and expenses | (308) | 38 | 123 |
Translation activity | (9) | 125 | 34 |
Deductions | 38 | 460 | |
Balance at end of period | (2,338) | (2,059) | (2,222) |
Reserve For Quality Claims [Member] | |||
Balance at beginning of period | (564) | (1,278) | (795) |
Credited (charged) to costs and expenses | (2,019) | (821) | (2,719) |
Translation activity | 5 | (9) | 3 |
Deductions | 1,617 | 1,544 | 2,233 |
Balance at end of period | $ (961) | $ (564) | $ (1,278) |
Inventories - Inventories Compo
Inventories - Inventories Components (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 55,531 | $ 45,448 |
Supplies | 9,020 | 7,314 |
Work in process | 8,510 | 8,834 |
Finished goods | 63,111 | 66,314 |
Gross inventories | 136,172 | 127,910 |
Inventory reserves | (2,391) | (1,599) |
Total inventories | $ 133,781 | $ 126,311 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Inventory Disclosure [Abstract] | ||
Foreign inventory valued at average cost | $ 45,122 | $ 39,870 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Other Assets Current [Abstract] | ||
Contract assets | $ 7,794 | |
Vendor deposits | 4,187 | $ 3,703 |
Value-added taxes receivable | 2,519 | 1,024 |
Prepaid expenses | 1,856 | 1,802 |
Total other current assets | $ 16,356 | $ 6,529 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - PP&E Net Components (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Property Plant And Equipment [Line Items] | ||
Gross PP&E | $ 851,103 | $ 832,540 |
Less: accumulated depreciation | (636,135) | (619,654) |
Less: accumulated amortization – capital leases | (8,181) | (7,370) |
Total PP&E, net | 206,787 | 205,516 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 3,138 | 2,860 |
Land Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 15,249 | 15,118 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 161,566 | 157,354 |
Assets under Capital Leases [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 31,897 | 34,568 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 603,950 | 589,237 |
Computers, Software and Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 23,011 | 19,723 |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 5,809 | 5,029 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | $ 6,483 | $ 8,651 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Schedule of Capital Leased Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Property Plant And Equipment [Line Items] | ||
Gross assets under capital leases | $ 31,897 | $ 34,568 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross assets under capital leases | 22,991 | 24,467 |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross assets under capital leases | 5,078 | 6,273 |
Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross assets under capital leases | $ 3,828 | $ 3,828 |
Property, Plant and Equipment_5
Property, Plant and Equipment, Net - Schedule of Depreciation Expense and Repair and Maintenance Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 21,602 | $ 21,109 | $ 18,483 |
Repair and maintenance expenses | $ 21,226 | $ 19,761 | $ 18,319 |
Intangible Assets, Net - Compon
Intangible Assets, Net - Components of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 25,906 | $ 25,725 |
Intangible assets, accumulated amortization | (23,736) | (22,735) |
Total intangible assets, net | 2,170 | 2,990 |
Customer Lists [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 23,615 | 23,615 |
Intangible assets, accumulated amortization | (23,166) | (22,527) |
Non-compete Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 1,875 | 1,925 |
Intangible assets, accumulated amortization | (438) | (108) |
Trademarks, Licenses and Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 416 | 185 |
Intangible assets, accumulated amortization | $ (132) | $ (100) |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 29, 2014 | Jun. 24, 2007 | |
Finite Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | $ 25,906 | $ 25,725 | ||
Customer Lists [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | $ 23,615 | 23,615 | ||
Trademarks [Member] | Maximum [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 3 years | |||
Non-compete Agreements [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | $ 1,875 | $ 1,925 | ||
Non-compete Agreements [Member] | Polyester [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years | |||
Intangible assets, gross | $ 1,875 | |||
Dillon Texturing Operations [Member] | Customer Lists [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 13 years | |||
Dillon Draw Winding [Member ] | Customer Lists [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 9 years |
Intangible Assets, Net - Amorti
Intangible Assets, Net - Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 1,112 | $ 1,110 | $ 1,381 |
Customer Lists [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | 639 | 843 | 1,020 |
Non-compete Agreements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | 379 | 205 | 287 |
Trademarks, Licenses and Other [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 94 | $ 62 | $ 74 |
Intangible Assets, Net - Expect
Intangible Assets, Net - Expected Intangible Asset Amortization (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Fiscal 2020 | $ 831 |
Fiscal 2021 | 538 |
Fiscal 2022 | 473 |
Fiscal 2023 | 328 |
Fiscal 2024 | $ 0 |
Other Non-Current Assets - Sche
Other Non-Current Assets - Schedule of Other Assets, Noncurrent (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Interest rate swaps | $ 2,259 | |
Other | $ 671 | 821 |
Total other non-current assets | $ 671 | $ 3,080 |
Other Non-Current Assets - Addi
Other Non-Current Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 01, 2017 | Feb. 24, 2017 | Jan. 05, 2017 | |
Swap A [Member] | ||||
Derivative, inception date | Jan. 5, 2017 | |||
Swap A [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 20,000,000 | |||
Swap B [Member] | ||||
Derivative, inception date | Feb. 24, 2017 | |||
Swap B [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 30,000,000 | |||
Swap C [Member] | ||||
Derivative, inception date | Jun. 1, 2017 | |||
Swap C [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 25,000,000 | |||
Swaps A, B and C [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 75,000,000 | |||
Swaps A, B and C [Member] | Designated Hedges [Member] | London Interbank Offer Rate ("LIBOR") [Member] | ||||
Derivative, average fixed interest rate | 1.90% |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Payables And Accruals [Abstract] | ||
Payroll and fringe benefits | $ 9,775 | $ 10,833 |
Utilities | 2,061 | 2,594 |
Severance | 2,058 | 362 |
Property taxes | 999 | 835 |
Current portion of supplemental post-employment plan | 411 | 508 |
Other | 1,545 | 2,588 |
Total accrued expenses | $ 16,849 | $ 17,720 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | ||
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 11,118 | $ 18,107 | |
Total debt | 128,018 | 131,207 | |
Current portion of capital lease obligations | (5,519) | (6,996) | |
Unamortized debt issuance costs | (958) | (658) | |
Total long-term debt | $ 111,541 | 113,553 | |
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.90% | ||
ABL Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | 2023-12 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.70% | ||
Long-term Debt | $ 19,400 | 28,100 | |
ABL Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | [1] | 2023-12 | |
Current ABL Term Loan | $ (10,000) | (10,000) | |
Weighted average interest rate | [1] | 3.30% | |
Outstanding balances of term loan | [1] | $ 97,500 | $ 85,000 |
[1] | Includes the effects of interest rate swaps. |
Long-Term Debt - Long-Term De_2
Long-Term Debt - Long-Term Debt Components (Details) (Parenthetical) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Capital lease obligations, scheduled maturity start date | 2019-08 |
Capital lease obligations, scheduled maturity end date | 2027-11 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Dec. 18, 2018 | Dec. 17, 2018 | Jun. 30, 2019 |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 131,000 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Annual interest rate added to federal funds rate | 0.50% | ||
Annual interest rate added to LIBOR rate | 1.00% | ||
Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 400,000 | ||
ABL Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt agreement maximum borrowing capacity | $ 200,000,000 | ||
Term loan maximum borrowing capacity | $ 100,000,000 | ||
Debt instrument maturity date | Dec. 18, 2023 | ||
Foreign capital stock, maximum voting stock of first tier foreign subsidiaries | 65.00% | ||
Fixed charge coverage ratio | 1.22 | ||
ABL Facility [Member] | Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity date | Dec. 18, 2023 | Mar. 26, 2020 | |
Principal amount of term loan | $ 100,000 | $ 80,000 | |
Loss on extinguishment of debt | $ 131,000 | ||
Minimum monthly fixed charge coverage ratio covenant | 1.05 | ||
ABL Facility [Member] | Credit Agreement [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Decrease in the applicable margin rate percentage | 0.25% | ||
ABL Facility [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||
Line of credit facility, remaining borrowing capacity | $ 61,501,000 | ||
ABL Facility [Member] | Revolving Credit Facility [Member] | Credit Agreement [Member] | Trigger Level [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, remaining borrowing capacity | $ 24,688,000 | ||
ABL Revolver [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.25% | ||
ABL Revolver [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.75% | ||
ABL Revolver [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.25% | ||
ABL Revolver [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.75% |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Outstanding Debt Obligations (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Debt Instrument Redemption [Line Items] | |
Fiscal 2020 | $ 15,519 |
Fiscal 2021 | 12,623 |
Fiscal 2022 | 12,417 |
Fiscal 2023 | 10,090 |
Fiscal 2024 | 76,995 |
Thereafter | 374 |
Capital Lease Obligations [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2020 | 5,519 |
Fiscal 2021 | 2,623 |
Fiscal 2022 | 2,417 |
Fiscal 2023 | 90 |
Fiscal 2024 | 95 |
Thereafter | 374 |
ABL Revolver [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2024 | 19,400 |
ABL Term Loan [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2020 | 10,000 |
Fiscal 2021 | 10,000 |
Fiscal 2022 | 10,000 |
Fiscal 2023 | 10,000 |
Fiscal 2024 | $ 57,500 |
Other Long-Term Liabilities - O
Other Long-Term Liabilities - Other Long-Term Liabilities Components (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Supplemental post-employment plan | $ 2,695 | $ 3,045 |
Uncertain tax positions | 1,043 | 131 |
Interest rate swaps | 647 | |
Other | 1,800 | 2,161 |
Total other long-term liabilities | $ 6,185 | $ 5,337 |
Other Long-Term Liabilities - A
Other Long-Term Liabilities - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 01, 2017 | Feb. 24, 2017 | Jan. 05, 2017 | |
Swap A [Member] | ||||
Derivative, inception date | Jan. 5, 2017 | |||
Swap A [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 20,000,000 | |||
Swap B [Member] | ||||
Derivative, inception date | Feb. 24, 2017 | |||
Swap B [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 30,000,000 | |||
Swap C [Member] | ||||
Derivative, inception date | Jun. 1, 2017 | |||
Swap C [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 25,000,000 | |||
Swaps A, B and C [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 75,000,000 | |||
Swaps A, B and C [Member] | Designated Hedges [Member] | London Interbank Offer Rate ("LIBOR") [Member] | ||||
Derivative, average fixed interest rate | 1.90% |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (13,326) | $ (7,852) | $ 2,689 |
Foreign | 23,337 | 38,063 | 40,586 |
Income before income taxes | $ 10,011 | $ 30,211 | $ 43,275 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Current: | |||
Federal | $ (178) | $ (4,918) | $ (6,082) |
State | 28 | (416) | (130) |
Foreign | 7,282 | 9,639 | 10,224 |
Total current tax expense | 7,132 | 4,305 | 4,012 |
Deferred: | |||
Federal | (813) | (5,315) | 6,602 |
State | 1,097 | (872) | 162 |
Foreign | 139 | 391 | 122 |
Total deferred tax expense | 423 | (5,796) | 6,886 |
Provision (benefit) for income taxes | $ 7,555 | $ (1,491) | $ 10,898 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Income Taxes [Line Items] | ||||
U.S. Federal corporate income tax rate | 35.00% | 21.00% | 28.30% | 35.00% |
Provisional tax benefit | $ 396 | |||
Additional tax benefit | $ 843 | |||
Decrease in effective tax rate | 8.40% | |||
Total tax benefit related to enactment | $ 1,239 | |||
Tax benefit related to re-measurement of deferred tax balances | 3,986 | |||
Tax expense, net of foreign tax credits | 2,747 | |||
U.S state net operating loss carryforwards | $ 46,189 | |||
Net operating loss carryforwards beginning expiration year | 2020 | |||
Foreign Losses [Member] | ||||
Income Taxes [Line Items] | ||||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ 4,241 | |||
Foreign Tax Credits [Member] | ||||
Income Taxes [Line Items] | ||||
Valuation allowance, deferred tax asset, increase (decrease), amount | 789 | |||
U.S federal net operating loss carry a full valuation allowance | $ 2,437 | |||
Equity method Investment in Parkdale America LLC [Member] | ||||
Income Taxes [Line Items] | ||||
Valuation allowance, deferred tax asset, increase (decrease), amount | (582) | |||
U.S. Federal Foreign Tax Credits [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards beginning expiration year | 2021 | |||
U.S federal net operating loss carry a full valuation allowance | $ 13,477 | |||
Earliest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
State deferred tax expense component, utilization of net operating loss carryforwards | 106 | 116 | 26 | |
Foreign deferred tax expense component, utilization of net operating loss carryforwards | 655 | 773 | 756 | |
Valuation allowance, deferred tax asset, increase (decrease), amount | 10,877 | 2,814 | 4,407 | |
Unrecognized tax benefits that would impact effective tax rate | 1,043 | |||
Unrecognized tax benefits, income tax penalties and interest expense | 22 | (1,030) | (42) | |
Unrecognized tax benefits, income tax penalties and interest accrued | 63 | 41 | $ 772 | |
Undistributed earnings of foreign subsidiaries | 131,386 | |||
U.S. Federal [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss | 3,122 | $ 843 | ||
U.S. Federal [Member] | Earliest Tax Year [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2014 | |||
Net Operating Loss Held Outside U.S Consolidated Tax Filing Group [Member] | ||||
Income Taxes [Line Items] | ||||
U.S state net operating loss carryforwards | $ 12,279 | |||
Net operating loss carryforwards beginning expiration year | 2020 | |||
Net Operating Loss Held Outside U.S Consolidated Tax Filing Group [Member] | U.S. Federal Capital Loss Carryforwards [Member] | ||||
Income Taxes [Line Items] | ||||
Capital loss carryforwards a full valuation allowance | $ 4,489 | |||
Net Operating Loss Held Outside U.S Consolidated Tax Filing Group [Member] | U.S. Federal NOL [Member] | ||||
Income Taxes [Line Items] | ||||
U.S federal net operating loss carryforwards | 4,806 | |||
Foreign Net Operating Loss Carry Forwards [Member] | ||||
Income Taxes [Line Items] | ||||
U.S federal net operating loss carry a full valuation allowance | $ 9,204 | |||
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | North Carolina Department of Revenue [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2014 | |||
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | North Carolina Department of Revenue [Member] | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2015 |
Income Taxes - Reconciliation f
Income Taxes - Reconciliation from Federal Statutory Tax Rate to Effective Tax Rate (Details) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | ||||
Federal statutory tax rate | 35.00% | 21.00% | 28.30% | 35.00% |
Foreign income taxed at different rates | 16.10% | (2.40%) | (10.20%) | |
Repatriation of foreign earnings and withholding taxes | 20.30% | 1.80% | 1.40% | |
Repatriation of foreign earnings due to tax reform | 0.70% | 23.90% | ||
Revaluation of U.S. deferred balances due to tax reform | 3.10% | (14.20%) | ||
U.S. tax on GILTI | 32.50% | |||
Change in valuation allowance | (1.50%) | (12.90%) | (0.50%) | |
Foreign tax credits | (11.90%) | (11.00%) | ||
Domestic production activities deduction | (5.60%) | 0.50% | 2.00% | |
Research and other credits | (7.70%) | (1.80%) | (5.10%) | |
State income taxes, net of federal tax benefit | (0.60%) | (3.90%) | 0.20% | |
Change in uncertain tax positions | 8.20% | (15.10%) | 1.80% | |
Nondeductible compensation | 5.10% | 1.60% | ||
Nontaxable income | (4.20%) | |||
Nondeductible expenses and other | 0.30% | 0.60% | ||
Effective tax rate | 75.50% | (4.90%) | 25.20% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | |||
Investments, including unconsolidated affiliates | $ 5,680 | $ 5,429 | |
Intangible assets | 1,679 | 2,141 | |
Accrued compensation and benefits | 1,761 | 2,089 | |
Tax credits | 17,237 | 5,845 | |
NOL carryforwards | 4,381 | 10,008 | |
Research and development costs | 4,081 | ||
Other items | 5,555 | 4,847 | |
Total gross deferred tax assets | 40,374 | 30,359 | |
Valuation allowance | (26,020) | (15,143) | $ (17,957) |
Net deferred tax assets | 14,354 | 15,216 | |
PP&E | (18,325) | (19,375) | |
Other | (295) | (216) | |
Total deferred tax liabilities | (18,620) | (19,591) | |
Net deferred tax liabilities | $ (4,266) | $ (4,375) |
Income Taxes - Deferred Tax Val
Income Taxes - Deferred Tax Valuation Allowance Activities (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ (15,143) | $ (17,957) | $ (13,550) |
(Increase) decrease in valuation allowance | (10,877) | 2,814 | (4,407) |
Balance at end of period | $ (26,020) | $ (15,143) | $ (17,957) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Valuation Allowance (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | $ (26,020) | $ (15,143) | $ (17,957) | |
Investments, Including Unconsolidated Affiliates [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | (5,696) | (5,522) | (7,789) | |
NOL Carryforwards [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | [1] | (4,048) | (4,191) | (9,379) |
ABL Facility [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | $ (16,276) | $ (5,430) | $ (789) | |
[1] | Includes certain U.S. NOLs and capital losses outside the U.S. consolidated tax filing group. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Income Tax Uncertainties [Abstract] | |||
Balance at beginning of year | $ 166 | $ 4,463 | $ 4,254 |
Gross increases related to current period tax positions | 26 | 26 | 124 |
Gross increases (decreases) related to tax positions in prior periods | 980 | (119) | 524 |
Gross decreases related to settlements with tax authorities | (4,204) | (439) | |
Gross decreases related to lapse of applicable statute of limitations | (89) | ||
Balance at end of year | $ 1,083 | $ 166 | $ 4,463 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands | Oct. 31, 2018 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | Oct. 31, 2018 | Apr. 23, 2014 |
Equity Class Of Treasury Stock [Line Items] | ||||||
Payments of Dividends | $ 0 | $ 0 | $ 0 | |||
2014 Share Repurchase Program [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Share Repurchase Program, Authorized Amount | $ 50,000,000 | |||||
Share repurchased during period, shares | 806 | |||||
Share repurchased, average price paid per share | $ 27.79 | |||||
Share repurchased during period, value | $ 22,409,000 | |||||
Share repurchase program termination date | Oct. 31, 2018 | |||||
2018 Share Repurchase Program [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Share Repurchase Program, Authorized Amount | $ 50,000,000 | $ 50,000,000 | ||||
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 50,000,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | Oct. 24, 2018 | Oct. 23, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 223,000 | ||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 23.33 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 1,873 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 6 months | ||||
Proceeds from stock options exercised | $ 483 | $ 219 | $ 2,787 | ||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ 325 | $ 442 | $ 599 | ||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 10,000 | ||||
Share-based compensation arrangement by share-based payment award, compensation expense | $ 244 | ||||
Stock Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | ||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 23.73 | $ 32.61 | $ 28.82 | ||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $ 8.42 | $ 11.14 | $ 10.13 | ||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 568 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 8 months 12 days | ||||
Share-based compensation arrangement by share-based payment award, options, exercises in period, intrinsic value | $ 971 | $ 2,703 | $ 5,802 | ||
Proceeds from stock options exercised | 483 | 219 | 2,787 | ||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ 61 | $ 398 | $ 1,517 | ||
Stock Options [Member] | Member of the Board [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | ||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 21.02 | ||||
Grant date fair value | $ 7.60 | ||||
Stock Options [Member] | Common Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 190,000 | 73,000 | 153,000 | ||
Stock Options [Member] | Common Stock [Member] | Member of the Board [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 33,000 | ||||
RSUs Issued to Key Employees [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 75,000 | 86,000 | 150,000 | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 23.58 | $ 32.16 | $ 27.66 | ||
VSUs Issued to Non-Employee Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 47,000 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 23.27 | ||||
RSUs Issued to Non-Employee Directors [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 30,000 | 31,000 | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 35.83 | $ 29.09 | |||
Restricted Stock Units (RSUs) and Vested Share Units (VSUs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested and expected to vest, number | 305,000 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, outstanding | $ 5,543 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested, number | 192,000 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, vested | $ 3,496 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 1,305 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 6 months | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, converted in period, aggregate intrinsic value | $ 1,427 | $ 1,620 | $ 2,120 | ||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ 164 | $ 247 | $ 806 | ||
The 2013 Incentive Compensation Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, Number of shares authorized | 1,000,000 | ||||
Expiration date | Oct. 24, 2018 | ||||
The Amended and Restated 2013 Incentive Compensation Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, Number of shares authorized | 1,250,000 | ||||
Number of shares available for future issuance | 1,031,000 | 1,250,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Number of Securities Remaining Available for Future Issuance (Details) - shares | 8 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Oct. 24, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Less: Awards granted to employees | (10,000) | ||
Amended 2013 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Authorized under the Amended 2013 Plan | 1,250,000 | 1,250,000 | |
Available for issuance under the Amended 2013 Plan | 1,031,000 | 1,031,000 | 1,250,000 |
Amended 2013 Plan [Member] | Awards Expired, Forfeited or Otherwise Terminated Unexercised [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Plus: Awards expired, forfeited or otherwise terminated unexercised | 135,000 | ||
Amended 2013 Plan [Member] | Awards Granted to Employees [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Less: Awards granted to employees | (265,000) | ||
Amended 2013 Plan [Member] | Awards Granted to Non-Employee Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Less: Awards granted to non-employee directors | (89,000) |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Valuation Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |||
Expected term (years) | 5 years 6 months | 5 years 2 months 12 days | 5 years |
Risk-free interest rate | 2.90% | 2.00% | 1.40% |
Volatility | 32.60% | 34.30% | 37.90% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |
Stock Options, Outstanding at June 26, 2016 | shares | 405 |
Stock Options, Granted | shares | 223 |
Stock Options, Exercised | shares | (69) |
Stock Options, Cancelled or forfeited | shares | (157) |
Stock Options, Expired | shares | (25) |
Stock Options, Outstanding at June 25, 2017 | shares | 377 |
Stock Options, Vested and expected to vest as of June 25, 2017 | shares | 377 |
Stock Options, Exercisable at June 25, 2017 | shares | 241 |
Weighted Average Exercise Price, Outstanding at June 24, 2018 | $ / shares | $ 23.73 |
Weighted Average Exercise Price, Granted | $ / shares | 23.33 |
Weighted Average Exercise Price, Exercised | $ / shares | 10.05 |
Weighted Average Exercise Price, Cancelled or forfeited | $ / shares | 25.74 |
Weighted Average Exercise Price, Expired | $ / shares | 27.98 |
Weighted Average Exercise Price, Outstanding at June 30, 2019 | $ / shares | 24.88 |
Weighted Average Exercise Price, Vested and expected to vest as of June 30, 2019 | $ / shares | 24.88 |
Weighted Average Exercise Price, Exercisable at June 30, 2019 | $ / shares | $ 24.10 |
Weighted Average Remaining Contractual Life (Years), Outstanding at June 30, 2019 | 6 years 9 months 18 days |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest as of June 30, 2019 | 6 years 9 months 18 days |
Weighted Average Remaining Contractual Life (Years), Exercisable at June 30, 2019 | 5 years 8 months 12 days |
Aggregate Intrinsic Value, Outstanding at June 30, 2019 | $ | $ 386 |
Aggregate Intrinsic Value, Vested and expected to vest as of June 30, 2019 | $ | 386 |
Aggregate Intrinsic Value, Exercisable at June 30, 2019 | $ | $ 386 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of RSU and VSU Activity (Details) - Restricted Stock Units (RSUs) and Vested Share Units (VSUs) [Member] shares in Thousands | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Nonvested [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding (in shares) | 198 |
Granted (in shares) | 122 |
Vested (in shares) | 105 |
Cancelled or forfeited (in shares) | (102) |
Outstanding (in shares) | 113 |
Outstanding (in dollars per share) | $ / shares | $ 29.50 |
Granted (in dollars per share) | $ / shares | 23.46 |
Vested (in dollars per share) | $ / shares | 26.39 |
Cancelled or forfeited (in dollars per share) | $ / shares | 26.86 |
Outstanding (in dollars per share) | $ / shares | $ 27.50 |
Vested [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding (in shares) | 148 |
Vested (in shares) | 105 |
Converted (in shares) | (61) |
Outstanding (in shares) | 192 |
Total Nonvested and Vested [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding (in shares) | 346 |
Granted (in shares) | 122 |
Converted (in shares) | (61) |
Cancelled or forfeited (in shares) | (102) |
Outstanding (in shares) | 305 |
Outstanding (in dollars per share) | $ / shares | $ 27.45 |
Granted (in dollars per share) | $ / shares | 23.46 |
Converted (in dollars per share) | $ / shares | 28.21 |
Cancelled or forfeited (in dollars per share) | $ / shares | 26.86 |
Outstanding (in dollars per share) | $ / shares | $ 25.61 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Based Compensation Total Cost Charged Against Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation cost | $ 2,648 | $ 4,926 | $ 2,181 |
Stock options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation cost | 671 | 884 | 749 |
RSUs and VSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation cost | $ 1,977 | $ 4,042 | $ 1,432 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Details) - Retirement Savings Plan [Member] | 12 Months Ended |
Jun. 30, 2019 | |
Contribution for the First 3% [Member] | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan, employer matching contribution percentage | 100.00% |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 3.00% |
Contribution for the Next 2% [Member] | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan, employer matching contribution percentage | 50.00% |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 2.00% |
Defined Contribution Plan - Sch
Defined Contribution Plan - Schedule of Employer Matching Contribution Expense Related to 401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |||
Matching contribution expense | $ 2,836 | $ 2,643 | $ 2,538 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Additional Information (Details) | May 18, 2012USD ($) | Jun. 30, 2019USD ($) | Jun. 24, 2018USD ($) | Jun. 25, 2017USD ($) | Jun. 01, 2017USD ($) | Feb. 24, 2017USD ($) | Jan. 05, 2017USD ($) | Dec. 31, 2013USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Fair value assets and liabilities amount transfers into or out of the levels | $ 0 | $ 0 | $ 0 | |||||
Non-financial assets or liabilities of fair value recurring or non-recurring basis | $ 0 | |||||||
Dilion [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Business combination, contingent consideration liability | $ 2,500,000 | |||||||
Swap A [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, inception date | Jan. 5, 2017 | |||||||
Swap A [Member] | Designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 20,000,000 | |||||||
Swap B [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, inception date | Feb. 24, 2017 | |||||||
Swap B [Member] | Designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 30,000,000 | |||||||
Swap C [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, inception date | Jun. 1, 2017 | |||||||
Swap C [Member] | Designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 25,000,000 | |||||||
Swaps A, B and C [Member] | Designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 75,000,000 | |||||||
Increase (decrease) in interest expense | $ (320,000) | $ 319,000 | 42,000 | |||||
Swaps A, B and C [Member] | Designated Hedges [Member] | LIBOR [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, average fixed interest rate | 1.90% | |||||||
Swap D [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Maximum length of time hedged in interest rate cash flow hedge | 5 years | |||||||
Derivative, fixed interest rate | 1.06% | |||||||
Swap D [Member] | Designated Hedges [Member] | Cash Flow Hedging [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 50,000,000 | |||||||
Derivative, inception date | May 18, 2012 | |||||||
Derivative, termination date | May 24, 2017 | |||||||
Swap D [Member] | Non-designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Increase (decrease) in interest expense | $ 178,000 | |||||||
Foreign Exchange Forward [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Number of foreign currency derivatives held | 0 | 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Schedule of Financial Assets and Liabilities of Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value | $ 2,259 | |
Fair Value | $ 647 | |
Accrued Expenses [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration | 529 | |
Swap A [Member] | Other Longterm Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 20,000 | |
Fair Value | 186 | |
Swap A [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 20,000 | |
Fair Value | 584 | |
Swap B [Member] | Other Longterm Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 30,000 | |
Fair Value | 279 | |
Swap B [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 30,000 | |
Fair Value | 877 | |
Swap C [Member] | Other Longterm Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 25,000 | |
Fair Value | $ 182 | |
Swap C [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 25,000 | |
Fair Value | $ 798 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (40,533) | $ (32,880) | $ (29,751) |
Other comprehensive (loss) income, net of tax | (2,696) | (7,653) | (3,129) |
Ending balance | (43,229) | (40,533) | (32,880) |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (42,268) | (32,372) | (29,681) |
Other comprehensive (loss) income, net of tax | (461) | (9,896) | (2,691) |
Ending balance | (42,729) | (42,268) | (32,372) |
Changes in Interest Rate Swaps [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 1,735 | (508) | (70) |
Other comprehensive (loss) income, net of tax | (2,235) | 2,243 | (438) |
Ending balance | $ (500) | $ 1,735 | $ (508) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments, Pre-tax | $ (681) | $ (9,250) | $ (2,936) |
Changes in interest rate swaps, net of reclassification adjustments, Pre-tax | (2,906) | 3,067 | (737) |
Other comprehensive loss, net, Pre-tax | (3,367) | (6,829) | (3,428) |
Changes in interest rate swaps, net of reclassification adjustments, Tax | 671 | (824) | 299 |
Other comprehensive loss, net, Tax | 671 | (824) | 299 |
Foreign currency translation adjustments | (681) | (9,250) | (2,936) |
Changes in interest rate swaps, net of reclassification adjustments, After-tax | (2,235) | 2,243 | (438) |
Other comprehensive loss, net | (2,696) | (7,653) | (3,129) |
Unconsolidated Affiliates [Member] | |||
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments, Pre-tax | 220 | (646) | 245 |
Foreign currency translation adjustments | $ 220 | $ (646) | $ 245 |
Computation of Earnings Per S_3
Computation of Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net income attributable to Unifi, Inc. | $ 1,002 | [1] | $ (1,529) | [1] | $ 1,171 | [1] | $ 1,812 | [1] | $ 10,764 | [2] | $ 176 | [2] | $ 11,802 | [2] | $ 8,960 | [2] | $ 2,456 | $ 31,702 | $ 32,875 |
Weighted average common shares outstanding (in shares) | 18,395 | 18,294 | 18,136 | ||||||||||||||||
Basic | $ 0.05 | [3] | $ (0.08) | [3] | $ 0.06 | [3] | $ 0.10 | [3] | $ 0.59 | [3] | $ 0.01 | [3] | $ 0.65 | [3] | $ 0.49 | [3] | $ 0.13 | $ 1.73 | $ 1.81 |
Net potential common share equivalents – stock options and RSUs (in shares) | 300 | 343 | 307 | ||||||||||||||||
Adjusted weighted average common shares outstanding (in shares) | 18,695 | 18,637 | 18,443 | ||||||||||||||||
Diluted | $ 0.05 | [3] | $ (0.08) | [3] | $ 0.06 | [3] | $ 0.10 | [3] | $ 0.58 | [3] | $ 0.01 | [3] | $ 0.63 | [3] | $ 0.48 | [3] | $ 0.13 | $ 1.70 | $ 1.78 |
Excluded from the calculation of common share equivalents: | |||||||||||||||||||
Anti-dilutive common share equivalents (in shares) | 314 | 118 | 390 | ||||||||||||||||
[1] | Net income for the fiscal quarter ended June 30, 2019 includes severance charges for involuntary terminations. | ||||||||||||||||||
[2] | Net income for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain income applicable to fiscal 2015. Net income for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs. | ||||||||||||||||||
[3] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates and Variable Interest Entities - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019USD ($)FuturesContract | Jun. 24, 2018USD ($) | Jun. 25, 2017USD ($) | Oct. 31, 2009 | Sep. 30, 2000 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 114,320 | $ 112,639 | |||
Parkdale America LLC [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 34.00% | ||||
Number of manufacturing facilities | 12 | ||||
Number of futures contracts designated as cash flow hedges | FuturesContract | 0 | ||||
Equity method investments | $ 112,398 | ||||
Parkdale America LLC [Member] | EAP Program [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Deferred revenue | 0 | $ 0 | $ 0 | ||
Parkdale America LLC [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Number of major customers | 5 | ||||
Parkdale America LLC [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Concentration risk, percentage | 74.00% | ||||
Parkdale America LLC [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Concentration risk, percentage | 71.00% | ||||
UNF [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | ||||
UNF America [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | ||||
UNF and UNF America [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investments | 1,922 | ||||
Purchase commitment, remaining minimum amount committed | 2,919 | ||||
Accounts payable, related parties | $ 1,728 | $ 2,301 | |||
Percentage of current and total assets and total liabilities ccounted for by equity method investments | 3.00% |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Reconciliation Between Share of Underlying Equity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 114,320 | $ 112,639 |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Underlying equity as of June 30, 2019 | 130,489 | |
Equity method investments | 112,398 | |
Parkdale America LLC [Member] | Initial Excess Capital Contributions [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment difference between carrying amount and underlying equity | 53,363 | |
Parkdale America LLC [Member] | Impairment Charge Recorded in 2007 [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment difference between carrying amount and underlying equity | (74,106) | |
Parkdale America LLC [Member] | Antitrust Lawsuit Against PAL [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment difference between carrying amount and underlying equity | $ 2,652 |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Raw Material Purchases under Supply Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
UNF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Raw material purchases under supply agreement | $ 1,735 | $ 1,800 | $ 2,254 |
UNF America [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Raw material purchases under supply agreement | 23,089 | 21,731 | 20,493 |
UNF and UNF America [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Raw material purchases under supply agreement | $ 24,824 | $ 23,531 | $ 22,747 |
Investments in Unconsolidated_6
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | $ 306,828 | $ 297,281 |
Noncurrent assets | 159,000 | 163,117 |
Current liabilities | 74,944 | 74,748 |
Noncurrent liabilities | 3,252 | 3,389 |
Shareholders’ equity and capital accounts | 387,632 | 382,261 |
UNIFI’s portion of undistributed earnings | 44,164 | |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 299,610 | 289,683 |
Noncurrent assets | 158,304 | 162,242 |
Current liabilities | 70,875 | 71,026 |
Noncurrent liabilities | 3,252 | 3,389 |
Shareholders’ equity and capital accounts | 383,787 | 377,510 |
UNIFI’s portion of undistributed earnings | 43,343 | |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 7,218 | 7,598 |
Noncurrent assets | 696 | 875 |
Current liabilities | 4,069 | 3,722 |
Shareholders’ equity and capital accounts | 3,845 | $ 4,751 |
UNIFI’s portion of undistributed earnings | $ 821 |
Investments in Unconsolidated_7
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Schedule Of Equity Method Investments [Line Items] | |||
Net sales | $ 862,296 | $ 820,107 | $ 777,190 |
Gross profit | 29,168 | 35,758 | 31,152 |
Income from operations | 9,563 | 14,949 | 13,467 |
Net income | 10,627 | 15,951 | 10,802 |
Depreciation and amortization | 40,869 | 39,594 | 42,978 |
Cash received by PAL under cotton rebate program | 13,367 | 13,797 | 14,293 |
Earnings recognized by PAL for cotton rebate program | 12,896 | 13,334 | 13,491 |
Distributions received | 2,647 | 12,236 | 2,322 |
Parkdale America LLC [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Net sales | 836,675 | 796,010 | 754,285 |
Gross profit | 24,455 | 31,112 | 26,275 |
Income from operations | 6,575 | 12,032 | 10,406 |
Net income | 7,534 | 12,990 | 7,814 |
Depreciation and amortization | 40,679 | 39,404 | 42,801 |
Cash received by PAL under cotton rebate program | 13,367 | 13,797 | 14,293 |
Earnings recognized by PAL for cotton rebate program | 12,896 | 13,334 | 13,491 |
Distributions received | 647 | 9,236 | 822 |
UNF and UNF America [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Net sales | 25,621 | 24,097 | 22,905 |
Gross profit | 4,713 | 4,646 | 4,877 |
Income from operations | 2,988 | 2,917 | 3,061 |
Net income | 3,093 | 2,961 | 2,988 |
Depreciation and amortization | 190 | 190 | 177 |
Distributions received | $ 2,000 | $ 3,000 | $ 1,500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Apr. 10, 2019 | Sep. 30, 2004 |
Commitments And Contingencies Disclosure [Abstract] | ||
The term of a former ground lease | 99 years | |
Net monitoring and reporting costs received | $ 180 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Capital Lease Payments and Future Minimum Lease Payments under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Fiscal 2020 | $ 5,917 | |
Fiscal 2021 | 2,870 | |
Fiscal 2022 | 2,565 | |
Fiscal 2023 | 189 | |
Fiscal 2024 | 189 | |
Fiscal years thereafter | 675 | |
Total minimum lease payments | 12,405 | |
Less estimated executory costs | (644) | |
Less interest | (643) | |
Present value of net minimum capital lease payments | 11,118 | $ 18,107 |
Less current portion of capital lease obligations | (5,519) | $ (6,996) |
Long-term portion of capital lease obligations | 5,599 | |
Fiscal 2020 | 3,164 | |
Fiscal 2021 | 2,731 | |
Fiscal 2022 | 1,492 | |
Fiscal 2023 | 878 | |
Fiscal 2024 | 755 | |
Fiscal years thereafter | 309 | |
Total minimum lease payments | $ 9,329 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Rental Expenses Incurred Under Operating Leases and Included in Operating Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rental expenses | $ 4,915 | $ 4,835 | $ 4,357 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Unconditional Purchase Obligations (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Fiscal 2020 | $ 11,210 |
Fiscal 2021 | 9,827 |
Fiscal 2022 | 8,942 |
Fiscal 2023 | 4,153 |
Fiscal 2024 | 448 |
Thereafter | 281 |
Purchase Obligations [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Fiscal 2020 | 7,831 |
Fiscal 2021 | 6,952 |
Fiscal 2022 | 6,771 |
Fiscal 2023 | 3,459 |
Fiscal 2024 | 5 |
Thereafter | 12 |
Service Obligations [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Fiscal 2020 | 3,379 |
Fiscal 2021 | 2,875 |
Fiscal 2022 | 2,171 |
Fiscal 2023 | 694 |
Fiscal 2024 | 443 |
Thereafter | $ 269 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Costs Incurred Under Purchases and Services Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Costs for unconditional purchase obligations | $ 23,542 | $ 24,777 | $ 26,984 |
Costs for unconditional service obligations | 5,169 | 2,454 | 2,575 |
Total | $ 28,711 | $ 27,231 | $ 29,559 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Related Party Transaction [Line Items] | |||
Related party receivables | $ 0 | $ 0 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Threshold for Individual Disclosure | $ 120,000 | $ 120,000 | $ 120,000 |
Related Party Transactions - Re
Related Party Transactions - Related Party Receivables and Payables (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 |
Related Party Transaction [Line Items] | ||
Capital lease obligations | $ 11,118 | $ 18,107 |
Total related party payables | 1,440 | 1,181 |
Salem Leasing Corporation [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable, related parties | 634 | 306 |
Capital lease obligations | $ 806 | $ 875 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Salem Leasing Corporation [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses with related party | $ 4,102 | $ 3,979 | $ 3,914 |
Salem Global Logistics Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues from related parties | $ 147 | $ 128 |
Business Segment Information -
Business Segment Information - Additional Information (Details) | 6 Months Ended | 12 Months Ended | |||
Dec. 24, 2017USD ($) | Jun. 30, 2019USD ($)Segment | Jun. 24, 2018USD ($)Segment | Jun. 25, 2017USD ($) | Dec. 23, 2016 | |
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | Segment | 4 | 3 | |||
Techologies credit (expense) | $ 5,209,000 | $ 2,103,000 | |||
Renewables [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Majority equity ownership interest percentage by parent | 60.00% | ||||
Intersegment Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Techologies credit (expense) | $ 0 | $ 0 |
Business Segment Information _2
Business Segment Information - Selected Financial Information for Polyester, Nylon, Brazil, Asia and Other Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 179,493 | [1] | $ 179,989 | [1] | $ 167,711 | [1] | $ 181,611 | [1] | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 708,804 | $ 678,912 | $ 647,270 | ||||
Cost of sales | 642,496 | 592,484 | 553,106 | ||||||||||||||||
Gross profit | $ 18,342 | [2] | $ 13,791 | [2] | $ 14,156 | [2] | $ 20,019 | [2] | $ 23,904 | [3] | $ 16,556 | [3] | $ 22,676 | [3] | $ 23,292 | [3] | 66,308 | 86,428 | 94,164 |
Segment depreciation expense | 19,917 | 19,994 | 17,803 | ||||||||||||||||
Segment Profit | 86,225 | 106,422 | 111,967 | ||||||||||||||||
Polyester [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 370,770 | 364,169 | 355,740 | ||||||||||||||||
Cost of sales | 346,951 | 330,975 | 315,655 | ||||||||||||||||
Gross profit | 23,819 | 33,194 | 40,085 | ||||||||||||||||
Segment depreciation expense | 16,068 | 15,893 | 13,921 | ||||||||||||||||
Segment Profit | 39,887 | 49,087 | 54,006 | ||||||||||||||||
Nylon [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 98,127 | 102,639 | 112,704 | ||||||||||||||||
Cost of sales | 90,231 | 92,155 | 100,633 | ||||||||||||||||
Gross profit | 7,896 | 10,484 | 12,071 | ||||||||||||||||
Segment depreciation expense | 2,083 | 2,197 | 2,125 | ||||||||||||||||
Segment Profit | 9,979 | 12,681 | 14,196 | ||||||||||||||||
Brazil [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 102,877 | 110,587 | 109,079 | ||||||||||||||||
Cost of sales | 84,298 | 84,726 | 82,463 | ||||||||||||||||
Gross profit | 18,579 | 25,861 | 26,616 | ||||||||||||||||
Segment depreciation expense | 1,537 | 1,648 | 1,119 | ||||||||||||||||
Segment Profit | 20,116 | 27,509 | 27,735 | ||||||||||||||||
Asia [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 132,866 | 97,297 | 64,607 | ||||||||||||||||
Cost of sales | 117,166 | 80,677 | 48,624 | ||||||||||||||||
Gross profit | 15,700 | 16,620 | 15,983 | ||||||||||||||||
Segment Profit | 15,700 | 16,620 | 15,983 | ||||||||||||||||
Other Segments [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 4,164 | 4,220 | 5,140 | ||||||||||||||||
Cost of sales | 3,850 | 3,951 | 5,731 | ||||||||||||||||
Gross profit | 314 | 269 | (591) | ||||||||||||||||
Segment depreciation expense | 229 | 256 | 638 | ||||||||||||||||
Segment Profit | $ 543 | $ 525 | $ 47 | ||||||||||||||||
[1] | The fiscal quarter ended September 30, 2018 is comprised of fourteen weeks. | ||||||||||||||||||
[2] | Gross profit for the fiscal quarter ended December 30, 2018 includes the adverse impact of a raw material cost spike that could not be effectively offset with timely corresponding selling price increases. Gross profit for the fiscal quarters ended December 30, 2018, March 31, 2019 and June 30, 2019 includes the adverse impact of significant competitive pressure caused by elevated levels of polyester textured yarn imports. | ||||||||||||||||||
[3] | Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with timely corresponding selling price increases. |
Business Segment Information _3
Business Segment Information - Reconciliations of Segment Gross Profit (Loss) to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2019 | [1] | Mar. 31, 2019 | [1] | Dec. 30, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 24, 2018 | [2] | Mar. 25, 2018 | [2] | Dec. 24, 2017 | [2] | Sep. 24, 2017 | [2] | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | $ 18,342 | $ 13,791 | $ 14,156 | $ 20,019 | $ 23,904 | $ 16,556 | $ 22,676 | $ 23,292 | $ 66,308 | $ 86,428 | $ 94,164 | ||||||||
SG&A expenses | 52,690 | 56,077 | 50,829 | ||||||||||||||||
Provision (benefit) for bad debts | 308 | (38) | (123) | ||||||||||||||||
Other operating expense (income), net | 2,350 | 1,590 | (310) | ||||||||||||||||
Operating income | 10,960 | 28,799 | 43,768 | ||||||||||||||||
Interest income | (628) | (560) | (517) | ||||||||||||||||
Interest expense | 5,414 | 4,935 | 3,578 | ||||||||||||||||
Loss on extinguishment of debt | 131 | ||||||||||||||||||
Loss on sale of business | 1,662 | ||||||||||||||||||
Equity in earnings of unconsolidated affiliates | (3,968) | (5,787) | (4,230) | ||||||||||||||||
Income before income taxes | 10,011 | 30,211 | 43,275 | ||||||||||||||||
Polyester [Member] | |||||||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | 23,819 | 33,194 | 40,085 | ||||||||||||||||
Nylon [Member] | |||||||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | 7,896 | 10,484 | 12,071 | ||||||||||||||||
Brazil [Member] | |||||||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | 18,579 | 25,861 | 26,616 | ||||||||||||||||
Asia [Member] | |||||||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | 15,700 | 16,620 | 15,983 | ||||||||||||||||
Other Segments [Member] | |||||||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | $ 314 | $ 269 | $ (591) | ||||||||||||||||
[1] | Gross profit for the fiscal quarter ended December 30, 2018 includes the adverse impact of a raw material cost spike that could not be effectively offset with timely corresponding selling price increases. Gross profit for the fiscal quarters ended December 30, 2018, March 31, 2019 and June 30, 2019 includes the adverse impact of significant competitive pressure caused by elevated levels of polyester textured yarn imports. | ||||||||||||||||||
[2] | Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with timely corresponding selling price increases. |
Business Segment Information _4
Business Segment Information - Reconciliation of Segment Depreciation and Amortization Expense to Consolidated Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | $ 23,003 | $ 22,585 | $ 20,368 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 19,917 | 19,994 | 17,803 |
Operating Segments [Member] | Polyester [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 16,068 | 15,893 | 13,921 |
Operating Segments [Member] | Nylon [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 2,083 | 2,197 | 2,125 |
Operating Segments [Member] | Brazil [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 1,537 | 1,648 | 1,119 |
Operating Segments [Member] | Other Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 229 | 256 | 638 |
Other Depreciation and Amortization Expense [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | $ 3,086 | $ 2,591 | $ 2,565 |
Business Segment Information _5
Business Segment Information - Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 24,871 | $ 25,029 | $ 33,190 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 20,521 | 21,070 | 31,423 |
Operating Segments [Member] | Polyester [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 17,291 | 16,605 | 25,442 |
Operating Segments [Member] | Nylon [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 624 | 1,366 | 1,247 |
Operating Segments [Member] | Brazil [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 2,574 | 3,063 | 4,540 |
Operating Segments [Member] | Asia [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 32 | 36 | 194 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 4,350 | $ 3,959 | $ 1,767 |
Business Segment Information _6
Business Segment Information - Reconciliation of Segment Total Assets to Consolidated Total Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 |
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | $ 592,151 | $ 601,807 | $ 571,503 |
Other current assets | 16,356 | 6,529 | |
Property, plant and equipment, net | 206,787 | 205,516 | |
Other non-current assets | 671 | 3,080 | |
Investments in unconsolidated affiliates | 114,320 | 112,639 | |
Operating Segments [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 447,372 | 436,645 | |
Operating Segments [Member] | Polyester [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 287,608 | 284,261 | |
Operating Segments [Member] | Nylon [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 57,055 | 57,378 | |
Operating Segments [Member] | Brazil [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 67,490 | 59,657 | |
Operating Segments [Member] | Asia [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 35,219 | 35,349 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Other current assets | 10,327 | 30,945 | |
Property, plant and equipment, net | 18,664 | 17,373 | |
Other non-current assets | 1,468 | 4,205 | |
Investments in unconsolidated affiliates | $ 114,320 | $ 112,639 |
Business Segment Information _7
Business Segment Information - Product Sales Excluding All Other Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Segment Reporting Information [Line Items] | |||
Total product sales | $ 708,804 | $ 678,912 | $ 647,270 |
Polyester [Member] | |||
Segment Reporting Information [Line Items] | |||
Total product sales | 606,513 | 572,053 | 529,426 |
Nylon [Member] | |||
Segment Reporting Information [Line Items] | |||
Total product sales | 98,127 | 102,639 | 112,704 |
Product sales (excluding the All Other category) [Member] | |||
Segment Reporting Information [Line Items] | |||
Total product sales | $ 704,640 | $ 674,692 | $ 642,130 |
Business Segment Information _8
Business Segment Information - Geographic Information for Net Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | $ 708,804 | $ 678,912 | $ 647,270 |
U.S. [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | 426,725 | 420,920 | 424,490 |
BRAZIL [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | 102,877 | 110,587 | 109,079 |
CHINA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | 125,667 | 90,998 | 63,075 |
All Other Foreign Countries [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | 53,535 | 56,407 | 50,626 |
Export Sales from US Operations [Member] | U.S. [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | $ 84,707 | $ 94,205 | $ 104,229 |
Business Segment Information _9
Business Segment Information - Geographic Information for Long-lived Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 323,948 | $ 324,225 | $ 325,672 |
U.S. [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 305,483 | 305,229 | 304,696 |
BRAZIL [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 13,218 | 12,679 | 12,616 |
CHINA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 78 | 92 | 94 |
All Other Foreign Countries [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 5,169 | $ 6,225 | $ 8,266 |
Business Segment Information_10
Business Segment Information - Geographic Information for Total Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 592,151 | $ 601,807 | $ 571,503 |
U.S. [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 457,571 | 455,963 | 445,947 |
BRAZIL [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 67,490 | 59,657 | 58,598 |
CHINA | |||
Segment Reporting Information [Line Items] | |||
Total assets | 30,982 | 32,703 | 20,641 |
All Other Foreign Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 36,108 | $ 53,484 | $ 46,317 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 30, 2018 | Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Net sales | $ 179,493 | [1] | $ 179,989 | [1] | $ 167,711 | [1] | $ 181,611 | [1] | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 708,804 | $ 678,912 | $ 647,270 | ||||
Gross profit | 18,342 | [2] | 13,791 | [2] | 14,156 | [2] | 20,019 | [2] | 23,904 | [3] | 16,556 | [3] | 22,676 | [3] | 23,292 | [3] | 66,308 | 86,428 | 94,164 |
Net income (loss) | $ 1,002 | [4] | $ (1,529) | [4] | $ 1,171 | [4] | $ 1,812 | [4] | $ 10,764 | [5] | $ 176 | [5] | $ 11,802 | [5] | $ 8,960 | [5] | $ 2,456 | $ 31,702 | $ 32,875 |
Basic | $ 0.05 | [6] | $ (0.08) | [6] | $ 0.06 | [6] | $ 0.10 | [6] | $ 0.59 | [6] | $ 0.01 | [6] | $ 0.65 | [6] | $ 0.49 | [6] | $ 0.13 | $ 1.73 | $ 1.81 |
Diluted | $ 0.05 | [6] | $ (0.08) | [6] | $ 0.06 | [6] | $ 0.10 | [6] | $ 0.58 | [6] | $ 0.01 | [6] | $ 0.63 | [6] | $ 0.48 | [6] | $ 0.13 | $ 1.70 | $ 1.78 |
[1] | The fiscal quarter ended September 30, 2018 is comprised of fourteen weeks. | ||||||||||||||||||
[2] | Gross profit for the fiscal quarter ended December 30, 2018 includes the adverse impact of a raw material cost spike that could not be effectively offset with timely corresponding selling price increases. Gross profit for the fiscal quarters ended December 30, 2018, March 31, 2019 and June 30, 2019 includes the adverse impact of significant competitive pressure caused by elevated levels of polyester textured yarn imports. | ||||||||||||||||||
[3] | Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with timely corresponding selling price increases. | ||||||||||||||||||
[4] | Net income for the fiscal quarter ended June 30, 2019 includes severance charges for involuntary terminations. | ||||||||||||||||||
[5] | Net income for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain income applicable to fiscal 2015. Net income for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs. | ||||||||||||||||||
[6] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Data (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 24, 2018 | Dec. 24, 2017 | |
Quarterly Financial Data [Line Items] | ||
Reversal of uncertain tax position | $ (3,380) | |
Historical NOLs [Member] | ||
Quarterly Financial Data [Line Items] | ||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (3,807) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest, net of capitalized interest of $219, $190 and $652, respectively | $ 5,342 | $ 4,459 | $ 3,282 |
Income taxes, net of refunds | $ 2,623 | $ 9,962 | $ 8,123 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest capitalized | $ 219 | $ 190 | $ 652 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Capital expenditures incurred but not yet paid | $ 1,329 | $ 3,187 | $ 3,234 |