Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 29, 2019 | Oct. 31, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | UNIFI INC | |
Entity Central Index Key | 0000100726 | |
Entity File Number | 1-10542 | |
Entity Tax Identification Number | 11-2165495 | |
Trading Symbol | UFI | |
Entity Incorporation, State or Country Code | NY | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 18,495,907 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Security Exchange Name | NYSE | |
Entity Address, Address Line One | 7201 West Friendly Avenue | |
Entity Address, City or Town | Greensboro | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27410 | |
City Area Code | 336 | |
Local Phone Number | 294-4410 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 34,118 | $ 22,228 |
Receivables, net | 85,598 | 88,884 |
Inventories | 129,447 | 133,781 |
Income taxes receivable | 3,605 | 4,373 |
Other current assets | 16,440 | 16,356 |
Total current assets | 269,208 | 265,622 |
Property, plant and equipment, net | 205,374 | 206,787 |
Operating lease assets | 8,718 | |
Deferred income taxes | 2,520 | 2,581 |
Investments in unconsolidated affiliates | 102,601 | 114,320 |
Other non-current assets | 2,619 | 2,841 |
Total assets | 591,040 | 592,151 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 41,131 | 41,796 |
Accrued expenses | 16,162 | 16,849 |
Income taxes payable | 657 | 569 |
Current operating lease liabilities | 2,791 | |
Current portion of long-term debt | 14,738 | 15,519 |
Total current liabilities | 75,479 | 74,733 |
Long-term debt | 106,754 | 111,541 |
Noncurrent operating lease liabilities | 6,224 | |
Other long-term liabilities | 6,465 | 6,185 |
Deferred income taxes | 6,111 | 6,847 |
Total liabilities | 201,033 | 199,306 |
Commitments and contingencies | ||
Common stock, $0.10 par value (500,000,000 shares authorized; 18,489,842 and 18,462,296 shares issued and outstanding as of September 29, 2019 and June 30, 2019, respectively) | 1,849 | 1,846 |
Capital in excess of par value | 59,663 | 59,560 |
Retained earnings | 378,380 | 374,668 |
Accumulated other comprehensive loss | (49,885) | (43,229) |
Total shareholders’ equity | 390,007 | 392,845 |
Total liabilities and shareholders’ equity | $ 591,040 | $ 592,151 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 29, 2019 | Jun. 30, 2019 |
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) | 18,489,842 | 18,462,296 |
Common stock, shares outstanding (in shares) | 18,489,842 | 18,462,296 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 179,949 | $ 181,611 |
Cost of sales | 162,506 | 161,592 |
Gross profit | 17,443 | 20,019 |
Selling, general and administrative expenses | 10,980 | 14,411 |
Provision for bad debts | 9 | 131 |
Other operating expense (income), net | 108 | (240) |
Operating income | 6,346 | 5,717 |
Interest income | (210) | (147) |
Interest expense | 1,257 | 1,467 |
Equity in loss (earnings) of unconsolidated affiliates | 866 | (239) |
Income before income taxes | 4,433 | 4,636 |
Provision for income taxes | 721 | 2,824 |
Net income | $ 3,712 | $ 1,812 |
Net income per common share: | ||
Basic | $ 0.20 | $ 0.10 |
Diluted | $ 0.20 | $ 0.10 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Net income | $ 3,712 | $ 1,812 |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (6,158) | (3,495) |
Changes in interest rate swaps | (328) | 228 |
Other comprehensive loss, net | (6,656) | (2,922) |
Comprehensive loss | (2,944) | (1,110) |
Unconsolidated Affiliates [Member] | ||
Other comprehensive loss: | ||
Foreign currency translation adjustments | $ (170) | $ 345 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Statement Of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of period | $ 22,228 | $ 44,890 |
Operating activities: | ||
Net income | 3,712 | 1,812 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Equity in loss (earnings) of unconsolidated affiliates | 866 | (239) |
Distributions received from unconsolidated affiliates | 10,437 | 504 |
Depreciation and amortization expense | 5,685 | 6,036 |
Non-cash compensation expense | 187 | 998 |
Deferred income taxes | (760) | 909 |
Other, net | (127) | (201) |
Changes in assets and liabilities: | ||
Receivables, net | 1,543 | (1,636) |
Inventories | 1,981 | (15,079) |
Other current assets | (486) | (857) |
Income taxes | 814 | 6,591 |
Accounts payable and accrued expenses | (119) | (3,835) |
Other, net | 89 | 39 |
Net cash provided by (used in) operating activities | 23,822 | (4,958) |
Investing activities: | ||
Capital expenditures | (4,585) | (6,384) |
Other, net | (21) | 15 |
Net cash used in investing activities | (4,606) | (6,369) |
Financing activities: | ||
Proceeds from ABL Revolver | 23,000 | 34,000 |
Payments on ABL Revolver | (25,400) | (19,900) |
Payments on ABL Term Loan | (2,500) | (2,500) |
Payments on finance lease obligations | (1,608) | (1,790) |
Proceeds from stock option exercises | 29 | 244 |
Other | (44) | (646) |
Net cash (used in) provided by financing activities | (6,523) | 9,408 |
Effect of exchange rate changes on cash and cash equivalents | (803) | (776) |
Net increase (decrease) in cash and cash equivalents | 11,890 | (2,695) |
Cash and cash equivalents at end of period | $ 34,118 | $ 42,195 |
Background
Background | 3 Months Ended |
Sep. 29, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Background | 1. Background 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 filament 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”), polyester polymer beads (“Chip”) and staple fiber. 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. |
Basis of Presentation; Condense
Basis of Presentation; Condensed Notes | 3 Months Ended |
Sep. 29, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation; Condensed Notes | 2. Basis of Presentation; Condensed Notes The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) for interim financial information. As contemplated by the instructions of the Securities and Exchange Commission (the “SEC”) to Form 10-Q, the following notes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to UNIFI’s year-end audited consolidated financial statements and related notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended June 30, 2019 (the “2019 Form 10-K”). The financial information included in this report has been prepared by UNIFI, without audit. In the opinion of management, all adjustments, which consist of normal, recurring adjustments, considered necessary for a fair statement of the results for interim periods have been included. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the amounts reported and certain financial statement disclosures. Actual results may vary from these estimates. All amounts, except per share amounts, are presented in thousands (000s), except as otherwise noted. The fiscal quarter for each of Unifi, Inc., its primary domestic operating subsidiaries and its subsidiary in El Salvador ended on September 29, 2019, the Sunday nearest to September 30, 2019. Unifi, Inc.’s remaining material operating subsidiaries’ fiscal quarter ended on September 30, 2019. There were no significant transactions or events that occurred between Unifi, Inc.’s fiscal quarter end and such wholly owned subsidiaries’ subsequent fiscal quarter end. The three-month period ended September 29, 2019 consisted of 13 weeks for the primary subsidiaries in the U.S. and Central America. The three-month period ended September 30, 2018 consisted of 14 weeks for the primary subsidiaries in the U.S. and Central America. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Sep. 29, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Issued and Pending Adoption In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses Recently Adopted In February 2016 Leases (Topic 842) Relating to the transition to ASU No. 2016-02, PAL expects to adopt the new lease guidance in its fiscal year 2021 ending on January 1, 2022. PAL is currently evaluating the impact of the new lease guidance. In fiscal 2019, UNIFI adopted the new revenue recognition guidance prescribed by ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . See Note 5, Revenue Recognition,” for further detail regarding adoption and additional disclosures. Under the guidance in the SEC Staff Announcement on July 20, 2017 relating to the transition to ASU No. 2014-09, due to its status as a significant subsidiary of Unifi, Inc., PAL expects to adopt the new revenue recognition guidance in its fiscal year 2019 ending on December 28, 2019. PAL is currently evaluating the impact of the new revenue recognition guidance. Based on UNIFI’s review of ASUs issued since the filing of the 2019 Form 10-K, 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. |
Leases
Leases | 3 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Leases | 4. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) UNIFI adopted the following practical expedients and elected the following accounting policies related to this standard update: • carry forward of historical lease classifications and accounting treatment for existing land easements; • not to reassess whether any expired or existing contracts are or contain leases; • not to reassess initial direct costs for any existing leases; • the use of hindsight; • short-term lease accounting policy election allowing lessees to not recognize right-of-use assets and liabilities for leases with a term of 12 months or less and to recognize lease payments on a straight-line basis over the lease term and variable payments in the period the obligation is incurred; and • the option to not separate lease and non-lease components for the transportation equipment asset class. 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. The lease terms range from 1 to 15 years with various options for renewal. There are no residual value guarantees or sub-leases related to these leases. The adoption of this standard resulted in the recognition of operating lease right-of-use assets of $9,802 and corresponding lease liabilities of $10,105 with the difference adjusting prepayments and accruals on the consolidated balance sheet as of July 1, 2019. UNIFI’s accounting for finance leases remained substantially unchanged. The standard did not materially impact operating results or liquidity. Disclosures related to the amount, timing and uncertainty of cash flows arising from leases are included below. The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at September 29, 2019: Classification Balance Sheet Location September 29, 2019 Lease Assets Operating lease assets Operating lease assets $ 8,718 Finance lease assets Property, plant & equipment, net 27,601 Total lease assets $ 36,319 Lease Liabilities Current operating lease liabilities Current operating lease liabilities $ 2,791 Current finance lease liabilities Current portion of long-term debt 4,738 Total current lease liabilities $ 7,529 Noncurrent operating lease liabilities Noncurrent operating lease liabilities $ 6,224 Noncurrent finance lease liabilities Long-term debt 5,649 Total noncurrent lease liabilities $ 11,873 Total lease liabilities $ 19,402 The following table sets forth the components of UNIFI’s total lease cost for the three months ended September 29, 2019: For the Three Months Ended Lease Cost September 29, 2019 Operating lease cost $ 853 Variable lease cost 90 Finance lease cost: Amortization of lease assets 527 Interest on lease liabilities 100 Short-term lease cost 341 Total lease cost $ 1,911 As of September 29, 2019, UNIFI was committed to commence leasing certain transportation equipment during the second quarter of fiscal 2020. UNIFI anticipates this equipment will qualify as an estimated $5,400 in additional finance leases and will replace approximately $1,600 of existing operating lease assets under a penalty-free early termination agreement. The following table presents supplemental information related to leases at September 29, 2019: For the Three Months Ended Other Information September 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 853 Financing cash flows used by finance leases $ 1,608 Non-cash activities: Leased assets obtained in exchange for new operating lease liabilities $ 85 Leased assets obtained in exchange for new finance lease liabilities $ 878 UNIFI calculates its operating lease liabilities and finance lease liabilities entered into after the adoption of the new lease standard based upon UNIFI’s incremental borrowing rate (the “IBR”). When determining the IBR, we consider our centralized treasury function and our current credit profile. We then make adjustments to this rate for securitization, the length of the lease term, and leases denominated in foreign currencies. Generally, the IBR for each jurisdiction is the specific risk-free rate for the respective jurisdiction incremented for UNIFI’s corporate credit risk. The following table sets forth UNIFI's weighted average remaining lease term in years and discount rate percentage used in the calculation of its outstanding lease liabilities as of September 29, 2019: Weighted Average Remaining Lease Term and Discount Rate September 29, 2019 Weighted average remaining lease term (years): Operating leases 4.1 Finance leases 3.1 Weighted average discount rate: Operating leases 3.7 % Finance leases 3.8 % Lease Maturity Analysis Future minimum finance lease payments and future minimum payments under non-cancelable operating leases (with initial lease terms in excess of one year) under Topic 842 as of September 29, 2019 by fiscal year were: Maturity of Lease Liabilities Finance Leases Operating Leases Fiscal 2020 (excluding the three months ended September 29, 2019) $ 4,274 $ 2,330 Fiscal 2021 3,011 2,709 Fiscal 2022 2,706 1,679 Fiscal 2023 331 1,247 Fiscal 2024 331 1,110 Fiscal years thereafter 1,015 680 Total minimum lease payments $ 11,668 $ 9,755 Less estimated executory costs (626 ) — Less interest (655 ) (740 ) Present value of net minimum lease payments 10,387 9,015 Less current portion of lease obligations (4,738 ) (2,791 ) Long-term portion of lease obligations $ 5,649 $ 6,224 Prior year disclosure As reported in the 2019 Form 10-K (under the previous accounting guidance), 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 were: 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 the 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 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Sep. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 5. Revenue Recognition The following table presents disaggregated revenues for UNIFI: For the Three Months Ended September 29, 2019 September 30, 2018 Third-party manufacturer $ 178,020 $ 179,321 Service 1,929 2,290 Net sales $ 179,949 $ 181,611 Third-Party Manufacturer Third-party 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 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 method, 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. |
Receivables, Net
Receivables, Net | 3 Months Ended |
Sep. 29, 2019 | |
Receivables [Abstract] | |
Receivables, Net | 6. Receivables, Net Receivables, net consists of the following: September 29, 2019 June 30, 2019 Customer receivables $ 85,693 $ 89,495 Allowance for uncollectible accounts (2,205 ) (2,338 ) Reserves for quality claims (1,011 ) (961 ) Net customer receivables 82,477 86,196 Other receivables 3,121 2,688 Total receivables, net $ 85,598 $ 88,884 There have been no material changes in UNIFI’s allowance for uncollectible accounts or reserves for yarn quality claims since June 30, 2019. |
Inventories
Inventories | 3 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories consists of the following: September 29, 2019 June 30, 2019 Raw materials $ 50,228 $ 55,531 Supplies 9,107 9,020 Work in process 8,412 8,510 Finished goods 63,880 63,111 Gross inventories 131,627 136,172 Inventory reserves (2,180 ) (2,391 ) Total inventories $ 129,447 $ 133,781 |
Other Current Assets
Other Current Assets | 3 Months Ended |
Sep. 29, 2019 | |
Other Assets Current [Abstract] | |
Other Current Assets | 8. Other Current Assets Other current assets consists of the following: September 29, 2019 June 30, 2019 Contract assets $ 6,975 $ 7,794 Vendor deposits 4,832 4,187 Value-added taxes receivable 3,051 2,519 Prepaid expenses 1,582 1,856 Total other current assets $ 16,440 $ 16,356 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 | 3 Months Ended |
Sep. 29, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 9. Property, Plant and Equipment, Net Property, plant and equipment (“PP&E”), net consists of the following: September 29, 2019 June 30, 2019 Land $ 3,100 $ 3,138 Land improvements 15,511 15,249 Buildings and improvements 160,581 161,566 Assets under finance leases 27,601 31,897 Machinery and equipment 610,057 603,950 Computers, software and office equipment 22,429 23,011 Transportation equipment 5,838 5,809 Construction in progress 6,550 6,483 Gross PP&E 851,667 851,103 Less: accumulated depreciation (639,679 ) (636,135 ) Less: accumulated amortization – finance leases (6,614 ) (8,181 ) Total PP&E, net $ 205,374 $ 206,787 Depreciation expense and repair and maintenance expenses were as follows: For the Three Months Ended September 29, 2019 September 30, 2018 Depreciation expense $ 5,410 $ 5,663 Repair and maintenance expenses 4,474 5,860 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Sep. 29, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 10. Accrued Expenses Accrued expenses consists of the following: September 29, 2019 June 30, 2019 Payroll and fringe benefits $ 7,185 $ 9,775 Severance 1,702 2,058 Other 7,275 5,016 Total accrued expenses $ 16,162 $ 16,849 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 11. 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 September 29, 2019 September 29, 2019 June 30, 2019 ABL Revolver December 2023 3.5% $ 17,000 $ 19,400 ABL Term Loan (1) December 2023 3.5% 95,000 97,500 Finance lease obligations (2) 3.6% 10,387 11,118 Total debt 122,387 128,018 Current ABL Term Loan (10,000 ) (10,000 ) Current portion of finance lease obligations (4,738 ) (5,519 ) Unamortized debt issuance costs (895 ) (958 ) Total long-term debt $ 106,754 $ 111,541 (1) Includes the effects of interest rate swaps. (2) Scheduled maturity dates for finance lease obligations range from December 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 this ABL Term Loan reset were used to pay down the amount outstanding on the ABL Revolver. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the remainder of fiscal 2020, the following four fiscal years and thereafter: Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Thereafter ABL Revolver $ — $ — $ — $ — $ 17,000 $ — ABL Term Loan 7,500 10,000 10,000 10,000 57,500 — Finance lease obligations 3,978 2,738 2,536 214 222 699 Total $ 11,478 $ 12,738 $ 12,536 $ 10,214 $ 74,722 $ 699 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Sep. 29, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 12. Other Long-Term Liabilities Other long-term liabilities consists of the following: September 29, 2019 June 30, 2019 Supplemental post-employment plan $ 2,711 $ 2,695 Uncertain tax positions 1,084 1,043 Interest rate swaps 975 647 Other 1,695 1,800 Total other long-term liabilities $ 6,465 $ 6,185 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The provision for income taxes and effective tax rate were as follows: For the Three Months Ended September 29, 2019 September 30, 2018 Provision for income taxes $ 721 $ 2,824 Effective tax rate 16.3 % 60.9 % Income Tax Expense UNIFI’s provision for income taxes for the three months ended September 29, 2019 and September 30, 2018 was calculated by applying an estimate of the annual effective tax rate for the full fiscal year to year-to-date income. Tax effects of significant and unusual, or infrequently occurring, items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. The effective tax rate for the three months ended September 29, 2019 was lower than the U.S. federal statutory rate primarily due to the use of foreign tax credits generated in both current and prior tax years. These benefits were partially offset by earnings taxed at higher rates in foreign jurisdictions, U.S. tax on Global Intangible Low-Tax Income (“GILTI”), and foreign withholding taxes. The effective tax rate for the three months ended September 30, 2018 was higher than the U.S. federal statutory rate primarily due to earnings taxed at higher rates in foreign jurisdictions, losses in tax jurisdictions for which no tax benefit could be recognized, the effects of the GILTI provisions, and non-deductible executive compensation. UNIFI regularly assesses the outcomes of both completed and ongoing examinations to ensure that its provision for income taxes is sufficient. Certain returns that remain open to examination have utilized carryforward tax attributes generated in prior tax years, including net operating losses, which could potentially be revised upon examination. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Sep. 29, 2019 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 14. Shareholders’ Equity Shareholders’ equity for the three months ended September 29, 2019 was as follows: Shares Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity Balance at June 30, 2019 18,462 $ 1,846 $ 59,560 $ 374,668 $ (43,229 ) $ 392,845 Options exercised 10 1 28 — — 29 Conversion of restricted stock units 18 2 (2 ) — — — Stock-based compensation — — 121 — — 121 Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions — — (44 ) — — (44 ) Other comprehensive loss, net of tax — — — — (6,656 ) (6,656 ) Net income — — — 3,712 — 3,712 Balance at September 29, 2019 18,490 $ 1,849 $ 59,663 $ 378,380 $ (49,885 ) $ 390,007 Shareholders’ equity for the three months ended September 30, 2018 was as follows: Shares Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity Balance at June 24, 2018 18,353 $ 1,835 $ 56,726 $ 371,753 $ (40,533 ) $ 389,781 Options exercised 16 2 242 — — 244 Conversion of restricted stock units 14 1 (1 ) — — — Stock-based compensation 1 — 872 — — 872 Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (4 ) — (133 ) — — (133 ) Other comprehensive loss, net of tax — — — — (2,922 ) (2,922 ) Adoption of the new revenue recognition guidance — — — 459 — 459 Net income — — — 1,812 — 1,812 Balance at September 30, 2018 18,380 $ 1,838 $ 57,706 $ 374,024 $ (43,455 ) $ 390,113 No dividends were paid during the three months ended September 29, 2019 or in the two most recently completed fiscal years. Share Repurchase Program 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 or 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. UNIFI made no repurchases of its shares of common stock during the three months ended September 29, 2019. As of September 29, 2019, $50,000 remained available for repurchase under the 2018 SRP. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Sep. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 15. 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 (subject to certain increases in the event outstanding awards issued under the Amended 2013 Plan terminate unexercised) 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 September 29, 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 153 Less: Awards granted to employees (308 ) Less: Awards granted to non-employee directors (89 ) Available for issuance under the Amended 2013 Plan 1,006 During the three months ended September 29, 2019 and September 30, 2018, UNIFI granted stock options to purchase 15 and 0 shares of common stock, respectively. During the three months ended September 29, 2019 and September 30, 2018, UNIFI granted 28 and 0 restricted stock units, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 3 Months Ended |
Sep. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 16. Fair Value of Financial Instruments and Non-Financial Assets and Liabilities 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. The following table presents details regarding UNIFI’s hedging activities: For the Three Months Ended September 29, 2019 September 30, 2018 Interest expense $ 1,257 $ 1,467 Decrease (increase) in fair value of interest rate swaps 328 (228 ) Impact of interest rate swaps on interest expense (63 ) (34 ) For the three months ended September 29, 2019 and September 30, 2018, there were no significant changes to UNIFI’s assets and liabilities measured at fair value, and there were no transfers into or out of the levels of the fair value hierarchy. 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Sep. 29, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 17. 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 30, 2019 $ (42,729 ) $ (500 ) $ (43,229 ) Other comprehensive loss (6,328 ) (328 ) (6,656 ) Balance at September 29, 2019 $ (49,057 ) $ (828 ) $ (49,885 ) A summary of the after-tax effects of the components of other comprehensive loss, net for the three-month periods ended September 29, 2019 and September 30, 2018 is included in the accompanying condensed consolidated statements of comprehensive loss. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 18. Earnings Per Share The components of the calculation of earnings per share (“EPS”) are as follows: For the Three Months Ended September 29, 2019 September 30, 2018 Net income $ 3,712 $ 1,812 Basic weighted average shares 18,481 18,368 Net potential common share equivalents 245 335 Diluted weighted average shares 18,726 18,703 Excluded from diluted weighted average shares: Anti-dilutive common share equivalents 340 116 The calculation of EPS is based on the weighted average number of Unifi, Inc.’s common shares outstanding for the applicable period. The calculation of diluted EPS 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. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates and Variable Interest Entities | 3 Months Ended |
Sep. 29, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates and Variable Interest Entities | 19. Investments in Unconsolidated Affiliates and Variable Interest Entities UNIFI currently maintains investments in three entities classified as unconsolidated affiliates: PAL; U.N.F. Industries, Ltd. (“UNF”); and UNF America LLC (“UNFA”). As of September 29, 2019, UNIFI’s investment in PAL was $100,616 and UNIFI’s combined investments in UNF and UNFA were $1,985, each of which is reflected within investments in unconsolidated affiliates in the accompanying condensed consolidated balance sheets. Parkdale America, LLC PAL is a limited liability company treated as a partnership for income tax reporting purposes. UNIFI accounts for its investment in PAL using the equity method of accounting. 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. The derivative instruments used are listed and traded on an exchange and are valued using quoted prices classified within Level 1 of the fair value hierarchy. As of September 29, 2019, PAL had no futures contracts designated as cash flow hedges. The reconciliation between UNIFI’s share of the underlying equity of PAL and its investment is as follows: Underlying equity as of September 29, 2019 $ 118,707 Initial excess capital contributions 53,363 Impairment charge recorded by UNIFI in fiscal 2007 (74,106 ) Anti-trust lawsuit against PAL in which UNIFI did not participate 2,652 Investment as of September 29, 2019 $ 100,616 U.N.F. Industries, Ltd. Raw material and production services for UNF are provided by Nilit Ltd. 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 Raw material and production services for UNFA are provided by Nilit America Inc. 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 supply agreement has no stated minimum purchase quantities and pricing is negotiated every six months, based on market rates. As of September 29, 2019, UNIFI’s open purchase orders related to this supply agreement were $3,143. UNIFI’s raw material purchases under this supply agreement consist of the following: For the Three Months Ended September 29, 2019 September 30, 2018 UNF $ 495 $ 486 UNFA 4,448 5,530 Total $ 4,943 $ 6,016 As of September 29, 2019 and June 30, 2019, UNIFI had combined accounts payable due to UNF and UNFA of $1,708 and $1,728, respectively. UNIFI has determined that UNF and UNFA are variable interest entities and that UNIFI is the primary beneficiary of these entities, based on the terms of the supply agreement discussed above. 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. 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 tables below. PAL is defined as significant and its information is separately disclosed. PAL does not meet the criteria for segment reporting. As of September 29, 2019 As of June 30, 2019 PAL Other Total PAL Other Total Current assets $ 268,804 $ 6,311 $ 275,115 $ 299,610 $ 7,218 $ 306,828 Noncurrent assets 159,813 648 160,461 158,304 696 159,000 Current liabilities 76,280 2,991 79,271 70,875 4,069 74,944 Noncurrent liabilities 3,201 — 3,201 3,252 — 3,252 Shareholders’ equity and capital accounts 349,136 3,968 353,104 383,787 3,845 387,632 UNIFI’s portion of undistributed earnings 31,732 995 32,727 43,343 821 44,164 For the Three Months Ended September 29, 2019 For the Three Months Ended September 30, 2018 PAL Other Total PAL Other Total Net sales $ 199,167 $ 4,661 $ 203,828 $ 210,502 $ 5,765 $ 216,267 Gross profit 1,071 541 1,612 4,508 954 5,462 (Loss) income from operations (3,275 ) 112 (3,163 ) 632 513 1,145 Net (loss) income (3,455 ) 124 (3,331 ) (49 ) 526 477 Depreciation and amortization 10,631 47 10,678 10,474 48 10,522 Cash received by PAL under cotton rebate program 3,693 — 3,693 2,318 — 2,318 Earnings recognized by PAL for cotton rebate program 3,588 — 3,588 3,214 — 3,214 Distributions received 10,437 — 10,437 4 500 504 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 29, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. 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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 29, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 21. Related Party Transactions For details regarding the nature of certain related party relationships, see Note 25, “Related Party Transactions,” to the consolidated financial statements in the 2019 Form 10-K. There were no related party receivables as of September 29, 2019 or June 30, 2019. Related party payables consists of the following: September 29, 2019 June 30, 2019 Salem Leasing Corporation (included within accounts payable) $ 351 $ 634 Salem Leasing Corporation (operating lease obligations) 3,625 — Salem Leasing Corporation (finance lease obligations) 1,663 806 Total related party payables $ 5,639 $ 1,440 Related party transactions in excess of $120 include: For the Three Months Ended Affiliated Entity Transaction Type September 29, 2019 September 30, 2018 Salem Leasing Corporation Transportation equipment costs and finance lease debt service $ 1,008 $ 1,021 |
Business Segment Information
Business Segment Information | 3 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | 22. 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 the organization which were relied upon in making the determination of reportable segments include the nature of the products sold, the organization’s internal 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 ’s operating segments are aggregated into four reportable segments (the Polyester Segment, the Nylon Segment, the Brazil Segment and the Asia Segment) based on similarities between the operating segments’ economic characteristics, nature of products sold, type of customer, methods of distribution and regulatory environment. • 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 (“NAFTA”) and the Dominican Republic—Central America Free Trade Agreement (“CAFTA-DR”) (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 addition to UNIFI’s reportable segments, the selected financial information presented below includes an All Other category. All Other consists primarily of for-hire transportation services. For-hire transportation services revenue is derived from performing common carrier services utilizing UNIFI’s fleet of transportation equipment. 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 plus segment depreciation expense. This measurement of segment profit 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 Three Months Ended September 29, 2019 Polyester Nylon Brazil Asia All Other Total Net sales $ 88,695 $ 20,202 $ 24,172 $ 45,957 $ 923 $ 179,949 Cost of sales 80,900 19,024 20,013 41,675 894 162,506 Gross profit 7,795 1,178 4,159 4,282 29 17,443 Segment depreciation expense 4,041 491 375 — 39 4,946 Segment Profit $ 11,836 $ 1,669 $ 4,534 $ 4,282 $ 68 $ 22,389 For the Three Months Ended September 30, 2018 Polyester Nylon Brazil Asia All Other Total Net sales $ 100,131 $ 27,949 $ 26,913 $ 25,440 $ 1,178 $ 181,611 Cost of sales 92,330 25,805 20,495 21,908 1,054 161,592 Gross profit 7,801 2,144 6,418 3,532 124 20,019 Segment depreciation expense 4,252 561 359 — 75 5,247 Segment Profit $ 12,053 $ 2,705 $ 6,777 $ 3,532 $ 199 $ 25,266 The reconciliations of segment gross profit to consolidated income before income taxes are as follows: For the Three Months Ended September 29, 2019 September 30, 2018 Polyester $ 7,795 $ 7,801 Nylon 1,178 2,144 Brazil 4,159 6,418 Asia 4,282 3,532 All Other 29 124 Segment gross profit 17,443 20,019 Selling, general and administrative expenses 10,980 14,411 Provision for bad debts 9 131 Other operating expense (income), net 108 (240 ) Operating income 6,346 5,717 Interest income (210 ) (147 ) Interest expense 1,257 1,467 Equity in loss (earnings) of unconsolidated affiliates 866 (239 ) Income before income taxes $ 4,433 $ 4,636 The reconciliations of segment total assets to consolidated total assets are as follows: September 29, 2019 June 30, 2019 Polyester $ 294,163 $ 287,608 Nylon 54,947 57,055 Brazil 65,598 67,490 Asia 40,599 35,219 Segment total assets 455,307 447,372 Other current assets 8,857 10,327 Other PP&E 19,278 18,664 Other non-current operating lease assets 3,366 — Other non-current assets 1,631 1,468 Investments in unconsolidated affiliates 102,601 114,320 Total assets $ 591,040 $ 592,151 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Sep. 29, 2019 | |
Additional Cash Flow Elements And Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 23. Supplemental Cash Flow Information Cash payments (refunds) for interest and taxes consist of the following: For the Three Months Ended September 29, 2019 September 30, 2018 Interest, net of capitalized interest of $31 and $59, respectively $ 1,290 $ 1,627 Income tax payments (refunds), net 1,275 (4,204 ) Cash payments for taxes shown above consist primarily of income and withholding tax payments made by UNIFI in both U.S. and foreign jurisdictions, net of refunds. Cash refunds of taxes shown above consist primarily of refunds received in the U.S. Non-Cash Investing and Financing Activities As of September 29, 2019 and June 30, 2019, $847 and $1,329, respectively, were included in accounts payable for unpaid capital expenditures. As of September 30, 2018 and June 24, 2018, $1,607 and $3,187, respectively, were included in accounts payable for unpaid capital expenditures. Non-cash investing and financing activities related to leases have been disclosed in Note 4, “Leases.” |
Basis of Presentation; Conden_2
Basis of Presentation; Condensed Notes (Policies) | 3 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Period | The fiscal quarter for each of Unifi, Inc., its primary domestic operating subsidiaries and its subsidiary in El Salvador ended on September 29, 2019, the Sunday nearest to September 30, 2019. Unifi, Inc.’s remaining material operating subsidiaries’ fiscal quarter ended on September 30, 2019. There were no significant transactions or events that occurred between Unifi, Inc.’s fiscal quarter end and such wholly owned subsidiaries’ subsequent fiscal quarter end. The three-month period ended September 29, 2019 consisted of 13 weeks for the primary subsidiaries in the U.S. and Central America. The three-month period ended September 30, 2018 consisted of 14 weeks for the primary subsidiaries in the U.S. and Central America. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Schedule of Balance Sheet Location and Values of Company’s Lease Assets and Lease Liabilities | The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at September 29, 2019: Classification Balance Sheet Location September 29, 2019 Lease Assets Operating lease assets Operating lease assets $ 8,718 Finance lease assets Property, plant & equipment, net 27,601 Total lease assets $ 36,319 Lease Liabilities Current operating lease liabilities Current operating lease liabilities $ 2,791 Current finance lease liabilities Current portion of long-term debt 4,738 Total current lease liabilities $ 7,529 Noncurrent operating lease liabilities Noncurrent operating lease liabilities $ 6,224 Noncurrent finance lease liabilities Long-term debt 5,649 Total noncurrent lease liabilities $ 11,873 Total lease liabilities $ 19,402 |
Schedule of Components of Lease Cost | The following table sets forth the components of UNIFI’s total lease cost for the three months ended September 29, 2019: For the Three Months Ended Lease Cost September 29, 2019 Operating lease cost $ 853 Variable lease cost 90 Finance lease cost: Amortization of lease assets 527 Interest on lease liabilities 100 Short-term lease cost 341 Total lease cost $ 1,911 |
Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases | The following table presents supplemental information related to leases at September 29, 2019: For the Three Months Ended Other Information September 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 853 Financing cash flows used by finance leases $ 1,608 Non-cash activities: Leased assets obtained in exchange for new operating lease liabilities $ 85 Leased assets obtained in exchange for new finance lease liabilities $ 878 |
Schedule of Weighted-Average Remaining Lease Term and Discount Rate for Operating Leases and Finance Leases | The following table sets forth UNIFI's weighted average remaining lease term in years and discount rate percentage used in the calculation of its outstanding lease liabilities as of September 29, 2019: Weighted Average Remaining Lease Term and Discount Rate September 29, 2019 Weighted average remaining lease term (years): Operating leases 4.1 Finance leases 3.1 Weighted average discount rate: Operating leases 3.7 % Finance leases 3.8 % |
Schedule of Future Minimum Lease Payments for Finance Leases and Operating Leases | Future minimum finance lease payments and future minimum payments under non-cancelable operating leases (with initial lease terms in excess of one year) under Topic 842 as of September 29, 2019 by fiscal year were: Maturity of Lease Liabilities Finance Leases Operating Leases Fiscal 2020 (excluding the three months ended September 29, 2019) $ 4,274 $ 2,330 Fiscal 2021 3,011 2,709 Fiscal 2022 2,706 1,679 Fiscal 2023 331 1,247 Fiscal 2024 331 1,110 Fiscal years thereafter 1,015 680 Total minimum lease payments $ 11,668 $ 9,755 Less estimated executory costs (626 ) — Less interest (655 ) (740 ) Present value of net minimum lease payments 10,387 9,015 Less current portion of lease obligations (4,738 ) (2,791 ) Long-term portion of lease obligations $ 5,649 $ 6,224 |
Schedule of Future Minimum Capital Lease Payments and Future Minimum Lease Payments Under Non-Cancelable Operating Leases | As reported in the 2019 Form 10-K (under the previous accounting guidance), 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 were: 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 Rent Expense | Rental expenses incurred under the 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 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenues for UNIFI | The following table presents disaggregated revenues for UNIFI: For the Three Months Ended September 29, 2019 September 30, 2018 Third-party manufacturer $ 178,020 $ 179,321 Service 1,929 2,290 Net sales $ 179,949 $ 181,611 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables, net consists of the following: September 29, 2019 June 30, 2019 Customer receivables $ 85,693 $ 89,495 Allowance for uncollectible accounts (2,205 ) (2,338 ) Reserves for quality claims (1,011 ) (961 ) Net customer receivables 82,477 86,196 Other receivables 3,121 2,688 Total receivables, net $ 85,598 $ 88,884 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories Components | Inventories consists of the following: September 29, 2019 June 30, 2019 Raw materials $ 50,228 $ 55,531 Supplies 9,107 9,020 Work in process 8,412 8,510 Finished goods 63,880 63,111 Gross inventories 131,627 136,172 Inventory reserves (2,180 ) (2,391 ) Total inventories $ 129,447 $ 133,781 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Other Assets Current [Abstract] | |
Schedule of Other Current Assets | Other current assets consists of the following: September 29, 2019 June 30, 2019 Contract assets $ 6,975 $ 7,794 Vendor deposits 4,832 4,187 Value-added taxes receivable 3,051 2,519 Prepaid expenses 1,582 1,856 Total other current assets $ 16,440 $ 16,356 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment Components | Property, plant and equipment (“PP&E”), net consists of the following: September 29, 2019 June 30, 2019 Land $ 3,100 $ 3,138 Land improvements 15,511 15,249 Buildings and improvements 160,581 161,566 Assets under finance leases 27,601 31,897 Machinery and equipment 610,057 603,950 Computers, software and office equipment 22,429 23,011 Transportation equipment 5,838 5,809 Construction in progress 6,550 6,483 Gross PP&E 851,667 851,103 Less: accumulated depreciation (639,679 ) (636,135 ) Less: accumulated amortization – finance leases (6,614 ) (8,181 ) Total PP&E, net $ 205,374 $ 206,787 |
Schedule of Depreciation Expense and Repair and Maintenance Expense | Depreciation expense and repair and maintenance expenses were as follows: For the Three Months Ended September 29, 2019 September 30, 2018 Depreciation expense $ 5,410 $ 5,663 Repair and maintenance expenses 4,474 5,860 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consists of the following: September 29, 2019 June 30, 2019 Payroll and fringe benefits $ 7,185 $ 9,775 Severance 1,702 2,058 Other 7,275 5,016 Total accrued expenses $ 16,162 $ 16,849 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Sep. 29, 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 September 29, 2019 September 29, 2019 June 30, 2019 ABL Revolver December 2023 3.5% $ 17,000 $ 19,400 ABL Term Loan (1) December 2023 3.5% 95,000 97,500 Finance lease obligations (2) 3.6% 10,387 11,118 Total debt 122,387 128,018 Current ABL Term Loan (10,000 ) (10,000 ) Current portion of finance lease obligations (4,738 ) (5,519 ) Unamortized debt issuance costs (895 ) (958 ) Total long-term debt $ 106,754 $ 111,541 (1) Includes the effects of interest rate swaps. (2) Scheduled maturity dates for finance lease obligations range from December 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 remainder of fiscal 2020, the following four fiscal years and thereafter: Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Thereafter ABL Revolver $ — $ — $ — $ — $ 17,000 $ — ABL Term Loan 7,500 10,000 10,000 10,000 57,500 — Finance lease obligations 3,978 2,738 2,536 214 222 699 Total $ 11,478 $ 12,738 $ 12,536 $ 10,214 $ 74,722 $ 699 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities Components | Other long-term liabilities consists of the following: September 29, 2019 June 30, 2019 Supplemental post-employment plan $ 2,711 $ 2,695 Uncertain tax positions 1,084 1,043 Interest rate swaps 975 647 Other 1,695 1,800 Total other long-term liabilities $ 6,465 $ 6,185 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes and Effective Tax Rate | The provision for income taxes and effective tax rate were as follows: For the Three Months Ended September 29, 2019 September 30, 2018 Provision for income taxes $ 721 $ 2,824 Effective tax rate 16.3 % 60.9 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Stockholders Equity Note [Abstract] | |
Schedule of Stockholders' Equity | Shareholders’ equity for the three months ended September 29, 2019 was as follows: Shares Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity Balance at June 30, 2019 18,462 $ 1,846 $ 59,560 $ 374,668 $ (43,229 ) $ 392,845 Options exercised 10 1 28 — — 29 Conversion of restricted stock units 18 2 (2 ) — — — Stock-based compensation — — 121 — — 121 Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions — — (44 ) — — (44 ) Other comprehensive loss, net of tax — — — — (6,656 ) (6,656 ) Net income — — — 3,712 — 3,712 Balance at September 29, 2019 18,490 $ 1,849 $ 59,663 $ 378,380 $ (49,885 ) $ 390,007 Shareholders’ equity for the three months ended September 30, 2018 was as follows: Shares Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity Balance at June 24, 2018 18,353 $ 1,835 $ 56,726 $ 371,753 $ (40,533 ) $ 389,781 Options exercised 16 2 242 — — 244 Conversion of restricted stock units 14 1 (1 ) — — — Stock-based compensation 1 — 872 — — 872 Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (4 ) — (133 ) — — (133 ) Other comprehensive loss, net of tax — — — — (2,922 ) (2,922 ) Adoption of the new revenue recognition guidance — — — 459 — 459 Net income — — — 1,812 — 1,812 Balance at September 30, 2018 18,380 $ 1,838 $ 57,706 $ 374,024 $ (43,455 ) $ 390,113 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 29, 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 September 29, 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 153 Less: Awards granted to employees (308 ) Less: Awards granted to non-employee directors (89 ) Available for issuance under the Amended 2013 Plan 1,006 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Hedging Activities | The following table presents details regarding UNIFI’s hedging activities: For the Three Months Ended September 29, 2019 September 30, 2018 Interest expense $ 1,257 $ 1,467 Decrease (increase) in fair value of interest rate swaps 328 (228 ) Impact of interest rate swaps on interest expense (63 ) (34 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Sep. 29, 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 30, 2019 $ (42,729 ) $ (500 ) $ (43,229 ) Other comprehensive loss (6,328 ) (328 ) (6,656 ) Balance at September 29, 2019 $ (49,057 ) $ (828 ) $ (49,885 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) Per Share | The components of the calculation of earnings per share (“EPS”) are as follows: For the Three Months Ended September 29, 2019 September 30, 2018 Net income $ 3,712 $ 1,812 Basic weighted average shares 18,481 18,368 Net potential common share equivalents 245 335 Diluted weighted average shares 18,726 18,703 Excluded from diluted weighted average shares: Anti-dilutive common share equivalents 340 116 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates and Variable Interest Entities (Tables) | 3 Months Ended |
Sep. 29, 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 Three Months Ended September 29, 2019 September 30, 2018 UNF $ 495 $ 486 UNFA 4,448 5,530 Total $ 4,943 $ 6,016 |
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 tables below. PAL is defined as significant and its information is separately disclosed. PAL does not meet the criteria for segment reporting. As of September 29, 2019 As of June 30, 2019 PAL Other Total PAL Other Total Current assets $ 268,804 $ 6,311 $ 275,115 $ 299,610 $ 7,218 $ 306,828 Noncurrent assets 159,813 648 160,461 158,304 696 159,000 Current liabilities 76,280 2,991 79,271 70,875 4,069 74,944 Noncurrent liabilities 3,201 — 3,201 3,252 — 3,252 Shareholders’ equity and capital accounts 349,136 3,968 353,104 383,787 3,845 387,632 UNIFI’s portion of undistributed earnings 31,732 995 32,727 43,343 821 44,164 |
Income Statement Information [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates | For the Three Months Ended September 29, 2019 For the Three Months Ended September 30, 2018 PAL Other Total PAL Other Total Net sales $ 199,167 $ 4,661 $ 203,828 $ 210,502 $ 5,765 $ 216,267 Gross profit 1,071 541 1,612 4,508 954 5,462 (Loss) income from operations (3,275 ) 112 (3,163 ) 632 513 1,145 Net (loss) income (3,455 ) 124 (3,331 ) (49 ) 526 477 Depreciation and amortization 10,631 47 10,678 10,474 48 10,522 Cash received by PAL under cotton rebate program 3,693 — 3,693 2,318 — 2,318 Earnings recognized by PAL for cotton rebate program 3,588 — 3,588 3,214 — 3,214 Distributions received 10,437 — 10,437 4 500 504 |
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 September 29, 2019 $ 118,707 Initial excess capital contributions 53,363 Impairment charge recorded by UNIFI in fiscal 2007 (74,106 ) Anti-trust lawsuit against PAL in which UNIFI did not participate 2,652 Investment as of September 29, 2019 $ 100,616 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Payables | Related party payables consists of the following: September 29, 2019 June 30, 2019 Salem Leasing Corporation (included within accounts payable) $ 351 $ 634 Salem Leasing Corporation (operating lease obligations) 3,625 — Salem Leasing Corporation (finance lease obligations) 1,663 806 Total related party payables $ 5,639 $ 1,440 |
Schedule of Related Party Transactions | Related party transactions in excess of $120 include: For the Three Months Ended Affiliated Entity Transaction Type September 29, 2019 September 30, 2018 Salem Leasing Corporation Transportation equipment costs and finance lease debt service $ 1,008 $ 1,021 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Segment Reporting [Abstract] | |
Selected Financial Information for Polyester, Nylon, International and Other Segments | Selected financial information is presented below: For the Three Months Ended September 29, 2019 Polyester Nylon Brazil Asia All Other Total Net sales $ 88,695 $ 20,202 $ 24,172 $ 45,957 $ 923 $ 179,949 Cost of sales 80,900 19,024 20,013 41,675 894 162,506 Gross profit 7,795 1,178 4,159 4,282 29 17,443 Segment depreciation expense 4,041 491 375 — 39 4,946 Segment Profit $ 11,836 $ 1,669 $ 4,534 $ 4,282 $ 68 $ 22,389 For the Three Months Ended September 30, 2018 Polyester Nylon Brazil Asia All Other Total Net sales $ 100,131 $ 27,949 $ 26,913 $ 25,440 $ 1,178 $ 181,611 Cost of sales 92,330 25,805 20,495 21,908 1,054 161,592 Gross profit 7,801 2,144 6,418 3,532 124 20,019 Segment depreciation expense 4,252 561 359 — 75 5,247 Segment Profit $ 12,053 $ 2,705 $ 6,777 $ 3,532 $ 199 $ 25,266 |
Reconciliations of Segment Gross Profit to Consolidated Income Before Income Taxes | The reconciliations of segment gross profit to consolidated income before income taxes are as follows: For the Three Months Ended September 29, 2019 September 30, 2018 Polyester $ 7,795 $ 7,801 Nylon 1,178 2,144 Brazil 4,159 6,418 Asia 4,282 3,532 All Other 29 124 Segment gross profit 17,443 20,019 Selling, general and administrative expenses 10,980 14,411 Provision for bad debts 9 131 Other operating expense (income), net 108 (240 ) Operating income 6,346 5,717 Interest income (210 ) (147 ) Interest expense 1,257 1,467 Equity in loss (earnings) of unconsolidated affiliates 866 (239 ) Income before income taxes $ 4,433 $ 4,636 |
Reconciliation of Segment Total Assets to Consolidated Total Assets | The reconciliations of segment total assets to consolidated total assets are as follows: September 29, 2019 June 30, 2019 Polyester $ 294,163 $ 287,608 Nylon 54,947 57,055 Brazil 65,598 67,490 Asia 40,599 35,219 Segment total assets 455,307 447,372 Other current assets 8,857 10,327 Other PP&E 19,278 18,664 Other non-current operating lease assets 3,366 — Other non-current assets 1,631 1,468 Investments in unconsolidated affiliates 102,601 114,320 Total assets $ 591,040 $ 592,151 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Sep. 29, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Payments for Interest and Taxes | Cash payments (refunds) for interest and taxes consist of the following: For the Three Months Ended September 29, 2019 September 30, 2018 Interest, net of capitalized interest of $31 and $59, respectively $ 1,290 $ 1,627 Income tax payments (refunds), net 1,275 (4,204 ) |
Background - Additional Informa
Background - Additional Information (Details) | Sep. 29, 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% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Jul. 01, 2019 | |
Lessee Lease Description [Line Items] | ||
Operating lease assets | $ 8,718 | $ 9,802 |
Operating Lease Liabilities | 9,015 | $ 10,105 |
Property, Plant & Equipment, Net [Member] | ||
Lessee Lease Description [Line Items] | ||
Addition in finance lease assets | 5,400 | |
Decrease in operating lease assets | $ 1,600 | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
LesseeOperatingAndFinanceLeaseTermOfContract | 1 year | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
LesseeOperatingAndFinanceLeaseTermOfContract | 15 years |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Location and Values of Company's Lease Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 29, 2019 | Jul. 01, 2019 |
Lease Assets | ||
Operating lease assets | $ 8,718 | $ 9,802 |
Total lease assets | 36,319 | |
Lease Liabilities | ||
Current operating lease liabilities | 2,791 | |
Current finance lease liabilities | 4,738 | |
Total current lease liabilities | 7,529 | |
Noncurrent operating lease liabilities | 6,224 | |
Noncurrent finance lease liabilities | 5,649 | |
Total noncurrent lease liabilities | 11,873 | |
Total lease liabilities | 19,402 | |
Property, Plant & Equipment, Net [Member] | ||
Lease Assets | ||
Finance lease assets | 27,601 | |
Current Portion of Long-term Debt [Member] | ||
Lease Liabilities | ||
Current finance lease liabilities | 4,738 | |
Long-term debt [Member] | ||
Lease Liabilities | ||
Noncurrent finance lease liabilities | $ 5,649 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Detail) $ in Thousands | 3 Months Ended |
Sep. 29, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 853 |
Variable lease cost | 90 |
Finance lease cost: | |
Amortization of lease assets | 527 |
Interest on lease liabilities | 100 |
Short-term lease cost | 341 |
Total lease cost | $ 1,911 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||
Operating cash flows used by operating leases | $ 853 | |
Financing cash flows used by finance leases | 1,608 | $ 1,790 |
Non-cash activities: | ||
Leased assets obtained in exchange for new operating lease liabilities | 85 | |
Leased assets obtained in exchange for new finance lease liabilities | $ 878 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Discount Rate for Operating Leases and Finance Leases (Detail) | Sep. 29, 2019 |
Leases [Abstract] | |
Operating leases | 4 years 1 month 6 days |
Finance leases | 3 years 1 month 6 days |
Operating leases | 3.70% |
Finance leases | 3.80% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Finance Leases and Operating Leases (Detail) - USD ($) $ in Thousands | Sep. 29, 2019 | Jul. 01, 2019 | Jun. 30, 2019 |
Finance Leases | |||
Fiscal 2020 (excluding the three months ended September 29, 2019) | $ 4,274 | ||
Fiscal 2021 | 3,011 | ||
Fiscal 2022 | 2,706 | ||
Fiscal 2023 | 331 | ||
Fiscal 2024 | 331 | ||
Fiscal years thereafter | 1,015 | ||
Total minimum lease payments | 11,668 | ||
Less estimated executory costs | (626) | ||
Less interest | (655) | ||
Present value of net minimum lease payments | 10,387 | $ 11,118 | |
Less current portion of lease obligations | (4,738) | ||
Noncurrent finance lease liabilities | 5,649 | ||
Operating Leases | |||
Fiscal 2020 (excluding the three months ended September 29, 2019) | 2,330 | ||
Fiscal 2021 | 2,709 | ||
Fiscal 2022 | 1,679 | ||
Fiscal 2023 | 1,247 | ||
Fiscal 2024 | 1,110 | ||
Fiscal years thereafter | 680 | ||
Total minimum lease payments | 9,755 | ||
Less interest | (740) | ||
Present value of net minimum lease payments | 9,015 | $ 10,105 | |
Less current portion of lease obligations | (2,791) | ||
Noncurrent operating lease liabilities | $ 6,224 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Capital Lease Payments and Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [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 |
Total minimum lease payments | 12,405 |
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 |
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 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Leases [Abstract] | |||
Rental expenses | $ 4,915 | $ 4,835 | $ 4,357 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues for UNIFI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 179,949 | $ 181,611 |
Third-Party Manufacturer [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 178,020 | 179,321 |
Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 1,929 | $ 2,290 |
Receivables, Net - Schedule of
Receivables, Net - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 |
Receivables [Abstract] | ||
Customer receivables | $ 85,693 | $ 89,495 |
Allowance for uncollectible accounts | (2,205) | (2,338) |
Reserves for quality claims | (1,011) | (961) |
Net customer receivables | 82,477 | 86,196 |
Other receivables | 3,121 | 2,688 |
Total receivables, net | $ 85,598 | $ 88,884 |
Inventories - Inventories Compo
Inventories - Inventories Components (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 50,228 | $ 55,531 |
Supplies | 9,107 | 9,020 |
Work in process | 8,412 | 8,510 |
Finished goods | 63,880 | 63,111 |
Gross inventories | 131,627 | 136,172 |
Inventory reserves | (2,180) | (2,391) |
Total inventories | $ 129,447 | $ 133,781 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 |
Other Assets Current [Abstract] | ||
Contract assets | $ 6,975 | $ 7,794 |
Vendor deposits | 4,832 | 4,187 |
Value-added taxes receivable | 3,051 | 2,519 |
Prepaid expenses | 1,582 | 1,856 |
Total other current assets | $ 16,440 | $ 16,356 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment Components (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 |
Property Plant And Equipment [Line Items] | ||
Gross PP&E | $ 851,667 | $ 851,103 |
Less: accumulated depreciation | (639,679) | (636,135) |
Less: accumulated amortization – finance leases | (6,614) | (8,181) |
Total PP&E, net | 205,374 | 206,787 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 3,100 | 3,138 |
Land Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 15,511 | 15,249 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 160,581 | 161,566 |
Assets under Finance Leases [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 27,601 | 31,897 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 610,057 | 603,950 |
Computers, Software and Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 22,429 | 23,011 |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 5,838 | 5,809 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | $ 6,550 | $ 6,483 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Schedule of Depreciation Expense and Repair and Maintenance Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 5,410 | $ 5,663 |
Repair and maintenance expenses | $ 4,474 | $ 5,860 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 |
Payables And Accruals [Abstract] | ||
Payroll and fringe benefits | $ 7,185 | $ 9,775 |
Severance | 1,702 | 2,058 |
Other | 7,275 | 5,016 |
Total accrued expenses | $ 16,162 | $ 16,849 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Components (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 29, 2019 | Jun. 30, 2019 | ||
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 10,387 | $ 11,118 | |
Total debt | 122,387 | 128,018 | |
Current portion of finance lease obligations | (4,738) | (5,519) | |
Unamortized debt issuance costs | (895) | (958) | |
Total long-term debt | $ 106,754 | 111,541 | |
Finance Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.60% | ||
ABL Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | 2023-12 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.50% | ||
Long-term Debt | $ 17,000 | 19,400 | |
ABL Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | [1] | 2023-12 | |
Weighted average interest rate | [1] | 3.50% | |
Outstanding balances of term loan | [1] | $ 95,000 | 97,500 |
Current ABL Term Loan | $ (10,000) | $ (10,000) | |
[1] | Includes the effects of interest rate swaps. |
Long-Term Debt - Long-Term De_2
Long-Term Debt - Long-Term Debt Components (Details) (Parenthetical) | 3 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Finance lease obligations, scheduled maturity start date | 2019-12 |
Finance lease obligations, scheduled maturity end date | 2027-11 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - ABL Facility [Member] - Credit Agreement [Member] - USD ($) | Dec. 18, 2018 | Dec. 17, 2018 |
Debt Instrument [Line Items] | ||
Debt agreement maximum borrowing capacity | $ 200,000,000 | |
Principal amount of term loan | $ 100,000,000 | $ 80,000,000 |
Debt instrument maturity date | Dec. 18, 2023 | Mar. 26, 2020 |
Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Decrease in the applicable margin rate percentage | 0.25% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Outstanding Debt Obligations (Details) $ in Thousands | Sep. 29, 2019USD ($) |
Debt Instrument Redemption [Line Items] | |
Fiscal 2020 | $ 11,478 |
Fiscal 2021 | 12,738 |
Fiscal 2022 | 12,536 |
Fiscal 2023 | 10,214 |
Fiscal 2024 | 74,722 |
Thereafter | 699 |
Finance Lease Obligations [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2020 | 3,978 |
Fiscal 2021 | 2,738 |
Fiscal 2022 | 2,536 |
Fiscal 2023 | 214 |
Fiscal 2024 | 222 |
Thereafter | 699 |
ABL Revolver [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2024 | 17,000 |
ABL Term Loan [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2020 | 7,500 |
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 | Sep. 29, 2019 | Jun. 30, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Supplemental post-employment plan | $ 2,711 | $ 2,695 |
Uncertain tax positions | 1,084 | 1,043 |
Interest rate swaps | 975 | 647 |
Other | 1,695 | 1,800 |
Total other long-term liabilities | $ 6,465 | $ 6,185 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes and Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 721 | $ 2,824 |
Effective tax rate | 16.30% | 60.90% |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Stockholders Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Stockholders Equity [Line Items] | ||
Beginning Balance | $ 392,845 | $ 389,781 |
Beginning Balance (in shares) | 18,462,296 | |
Options exercised | $ 29 | 244 |
Stock-based compensation | 121 | 872 |
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (44) | (133) |
Other comprehensive income (loss), net of tax | (6,656) | (2,922) |
Net income | 3,712 | 1,812 |
Ending Balance | $ 390,007 | 390,113 |
Ending Balance (in shares) | 18,489,842 | |
ASU No. 2014-09 [Member] | ||
Stockholders Equity [Line Items] | ||
Adoption of the New Revenue Recognition Guidance | 459 | |
Common Stock [Member] | ||
Stockholders Equity [Line Items] | ||
Beginning Balance | $ 1,846 | $ 1,835 |
Beginning Balance (in shares) | 18,462,000 | 18,353,000 |
Options exercised | $ 1 | $ 2 |
Options exercised (in shares) | 10,000 | 16,000 |
Conversion of restricted stock units | $ 2 | $ 1 |
Conversion of restricted stock units (in shares) | 18,000 | 14,000 |
Stock-based compensation (in shares) | 1,000 | |
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions, (in shares) | (4,000) | |
Ending Balance | $ 1,849 | $ 1,838 |
Ending Balance (in shares) | 18,490,000 | 18,380,000 |
Capital in Excess of Par Value [Member] | ||
Stockholders Equity [Line Items] | ||
Beginning Balance | $ 59,560 | $ 56,726 |
Options exercised | 28 | 242 |
Conversion of restricted stock units | (2) | (1) |
Stock-based compensation | 121 | 872 |
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (44) | (133) |
Ending Balance | 59,663 | 57,706 |
Retained Earnings [Member] | ||
Stockholders Equity [Line Items] | ||
Beginning Balance | 374,668 | 371,753 |
Net income | 3,712 | 1,812 |
Ending Balance | 378,380 | 374,024 |
Retained Earnings [Member] | ASU No. 2014-09 [Member] | ||
Stockholders Equity [Line Items] | ||
Adoption of the New Revenue Recognition Guidance | 459 | |
Accumulated Other Comprehensive Loss [Member] | ||
Stockholders Equity [Line Items] | ||
Beginning Balance | (43,229) | (40,533) |
Other comprehensive income (loss), net of tax | (6,656) | (2,922) |
Ending Balance | $ (49,885) | $ (43,455) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | Oct. 31, 2018 | Sep. 29, 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 Stock Repurchase Program [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Share Repurchase Program, Authorized Amount | $ 50,000,000 | |||||
Share repurchased during period, shares | 806,000 | |||||
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 | |||||
2014 Stock Repurchase Program [Member] | Common Stock [Member] | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Share repurchased during period, shares | 0 | |||||
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) - shares | 3 Months Ended | |||
Sep. 29, 2019 | Sep. 30, 2018 | Oct. 24, 2018 | Oct. 23, 2013 | |
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 | 15,000 | 0 | ||
Restricted Stock Units (RSUs) [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 | 28,000 | 0 | ||
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 | 1,006,000 | 1,250,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Number of Securities Remaining Available for Future Issuance (Details) - Amended 2013 Plan [Member] - shares | 3 Months Ended | |
Sep. 29, 2019 | Oct. 24, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Authorized under the Amended 2013 Plan | 1,250,000 | |
Available for issuance under the Amended 2013 Plan | 1,006,000 | 1,250,000 |
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 | 153,000 | |
Awards Granted to Employees [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Less: Awards granted to employees | (308,000) | |
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) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Schedule of Hedging Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||
Interest expense | $ 1,257 | $ 1,467 |
Decrease (increase) in fair value of interest rate swaps | 328 | (228) |
Impact of interest rate swaps on interest expense | $ (63) | $ (34) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||
Fair value assets and liabilities amount transfers into or out of the levels | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at June 30, 2019 | $ (43,229) | |
Other comprehensive loss | (6,656) | $ (2,922) |
Balance at September 29, 2019 | (49,885) | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at June 30, 2019 | (42,729) | |
Other comprehensive loss | (6,328) | |
Balance at September 29, 2019 | (49,057) | |
Changes in Interest Rate Swaps [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at June 30, 2019 | (500) | |
Other comprehensive loss | (328) | |
Balance at September 29, 2019 | $ (828) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 3,712 | $ 1,812 |
Basic weighted average shares | 18,481 | 18,368 |
Net potential common share equivalents | 245 | 335 |
Diluted weighted average shares | 18,726 | 18,703 |
Excluded from diluted weighted average shares: | ||
Anti-dilutive common share equivalents | 340 | 116 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates and Variable Interest Entities - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019USD ($)EntityFuturesContract | Jun. 30, 2019USD ($) | |
Schedule Of Equity Method Investments [Line Items] | ||
Unconsolidated Entities, Number | Entity | 3 | |
Equity method investments | $ 102,601 | $ 114,320 |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 100,616 | |
Number of futures contracts designated as cash flow hedges | FuturesContract | 0 | |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 1,985 | |
Purchase commitment, remaining minimum amount committed | 3,143 | |
Accounts payable, related parties | $ 1,708 | $ 1,728 |
Percentage of current and total assets and total liabilities accounted 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 | Sep. 29, 2019 | Jun. 30, 2019 |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 102,601 | $ 114,320 |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Underlying equity as of September 29, 2019 | 118,707 | |
Equity method investments | 100,616 | |
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 | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
UNF [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | $ 495 | $ 486 |
UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | 4,448 | 5,530 |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | $ 4,943 | $ 6,016 |
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 | Sep. 29, 2019 | Jun. 30, 2019 |
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | $ 275,115 | $ 306,828 |
Noncurrent assets | 160,461 | 159,000 |
Current liabilities | 79,271 | 74,944 |
Noncurrent liabilities | 3,201 | 3,252 |
Shareholders’ equity and capital accounts | 353,104 | 387,632 |
UNIFI’s portion of undistributed earnings | 32,727 | 44,164 |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 268,804 | 299,610 |
Noncurrent assets | 159,813 | 158,304 |
Current liabilities | 76,280 | 70,875 |
Noncurrent liabilities | 3,201 | 3,252 |
Shareholders’ equity and capital accounts | 349,136 | 383,787 |
UNIFI’s portion of undistributed earnings | 31,732 | 43,343 |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 6,311 | 7,218 |
Noncurrent assets | 648 | 696 |
Current liabilities | 2,991 | 4,069 |
Shareholders’ equity and capital accounts | 3,968 | 3,845 |
UNIFI’s portion of undistributed earnings | $ 995 | $ 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 | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Schedule Of Equity Method Investments [Line Items] | ||
Net sales | $ 203,828 | $ 216,267 |
Gross profit | 1,612 | 5,462 |
(Loss) income from operations | (3,163) | 1,145 |
Net (loss) income | (3,331) | 477 |
Depreciation and amortization | 10,678 | 10,522 |
Cash received by PAL under cotton rebate program | 3,693 | 2,318 |
Earnings recognized by PAL for cotton rebate program | 3,588 | 3,214 |
Distributions received | 10,437 | 504 |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Net sales | 199,167 | 210,502 |
Gross profit | 1,071 | 4,508 |
(Loss) income from operations | (3,275) | 632 |
Net (loss) income | (3,455) | (49) |
Depreciation and amortization | 10,631 | 10,474 |
Cash received by PAL under cotton rebate program | 3,693 | 2,318 |
Earnings recognized by PAL for cotton rebate program | 3,588 | 3,214 |
Distributions received | 10,437 | 4 |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Net sales | 4,661 | 5,765 |
Gross profit | 541 | 954 |
(Loss) income from operations | 112 | 513 |
Net (loss) income | 124 | 526 |
Depreciation and amortization | $ 47 | 48 |
Distributions received | $ 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 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | |
Sep. 29, 2019 | Jun. 30, 2019 | |
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 |
Related Party Transactions - Re
Related Party Transactions - Related Party Receivables and Payables (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jul. 01, 2019 | Jun. 30, 2019 |
Related Party Transaction [Line Items] | |||
Operating Lease Liabilities | $ 9,015 | $ 10,105 | |
Finance lease obligations | 10,387 | $ 11,118 | |
Total related party payables | 5,639 | 1,440 | |
Salem Leasing Corporation [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable, related parties | 351 | 634 | |
Operating Lease Liabilities | 3,625 | ||
Finance lease obligations | $ 1,663 | $ 806 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Salem Leasing Corporation [Member] | ||
Related Party Transaction [Line Items] | ||
Expenses with related party | $ 1,008 | $ 1,021 |
Business Segment Information -
Business Segment Information - Additional Information (Details) | 3 Months Ended |
Sep. 29, 2019Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 4 |
Business Segment Information _2
Business Segment Information - Selected Financial Information for Polyester, Nylon, International and Other Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 179,949 | $ 181,611 |
Cost of sales | 162,506 | 161,592 |
Gross profit | 17,443 | 20,019 |
Segment depreciation expense | 4,946 | 5,247 |
Segment Profit | 22,389 | 25,266 |
Polyester [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 88,695 | 100,131 |
Cost of sales | 80,900 | 92,330 |
Gross profit | 7,795 | 7,801 |
Segment depreciation expense | 4,041 | 4,252 |
Segment Profit | 11,836 | 12,053 |
Nylon [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 20,202 | 27,949 |
Cost of sales | 19,024 | 25,805 |
Gross profit | 1,178 | 2,144 |
Segment depreciation expense | 491 | 561 |
Segment Profit | 1,669 | 2,705 |
Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 24,172 | 26,913 |
Cost of sales | 20,013 | 20,495 |
Gross profit | 4,159 | 6,418 |
Segment depreciation expense | 375 | 359 |
Segment Profit | 4,534 | 6,777 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 45,957 | 25,440 |
Cost of sales | 41,675 | 21,908 |
Gross profit | 4,282 | 3,532 |
Segment Profit | 4,282 | 3,532 |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 923 | 1,178 |
Cost of sales | 894 | 1,054 |
Gross profit | 29 | 124 |
Segment depreciation expense | 39 | 75 |
Segment Profit | $ 68 | $ 199 |
Business Segment Information _3
Business Segment Information - Reconciliations of Segment Gross Profit to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | $ 17,443 | $ 20,019 |
Selling, general and administrative expenses | 10,980 | 14,411 |
Provision for bad debts | 9 | 131 |
Other operating expense (income), net | 108 | (240) |
Operating income | 6,346 | 5,717 |
Interest income | (210) | (147) |
Interest expense | 1,257 | 1,467 |
Equity in loss (earnings) of unconsolidated affiliates | 866 | (239) |
Income before income taxes | 4,433 | 4,636 |
Polyester [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | 7,795 | 7,801 |
Nylon [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | 1,178 | 2,144 |
Brazil [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | 4,159 | 6,418 |
Asia [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | 4,282 | 3,532 |
Other Segments [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit | $ 29 | $ 124 |
Business Segment Information _4
Business Segment Information - Reconciliation of Segment Total Assets to Consolidated Total Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2019 | Jun. 30, 2019 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 591,040 | $ 592,151 |
Other current assets | 16,440 | 16,356 |
Other non-current assets | 2,619 | 2,841 |
Investments in unconsolidated affiliates | 102,601 | 114,320 |
Operating Segments [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 455,307 | 447,372 |
Operating Segments [Member] | Polyester [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 294,163 | 287,608 |
Operating Segments [Member] | Nylon [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 54,947 | 57,055 |
Operating Segments [Member] | Brazil [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 65,598 | 67,490 |
Operating Segments [Member] | Asia [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 40,599 | 35,219 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Other current assets | 8,857 | 10,327 |
Other PP&E | 19,278 | 18,664 |
Other non-current operating lease assets | 3,366 | |
Other non-current assets | 1,631 | 1,468 |
Investments in unconsolidated affiliates | $ 102,601 | $ 114,320 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest, net of capitalized interest of $31 and $59, respectively | $ 1,290 | $ 1,627 |
Income tax payments (refunds), net | $ 1,275 | $ (4,204) |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest capitalized | $ 31 | $ 59 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 24, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||||
Capital expenditures incurred but not yet paid | $ 847 | $ 1,607 | $ 1,329 | $ 3,187 |