Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jul. 03, 2022 | Aug. 29, 2022 | Dec. 26, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | UNIFI, INC. | ||
Entity Central Index Key | 0000100726 | ||
Trading Symbol | UFI | ||
Current Fiscal Year End Date | --07-03 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.10 per share | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding (in shares) | 18,000,052 | ||
Entity Public Float | $ 313,304,229 | ||
ICFR Auditor Attestation Flag | true | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 03, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 1-10542 | ||
Entity Tax Identification Number | 11-2165495 | ||
Entity Incorporation, State or Country Code | NY | ||
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 Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission in connection with the registrant’s 2022 Annual Meeting of Shareholders are incorporated by reference in Part III of this Form 10-K to the extent described herein. | ||
Auditor Firm ID | 185 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Greensboro, North Carolina |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 53,290 | $ 78,253 |
Receivables, net | 106,565 | 94,837 |
Inventories | 173,295 | 141,221 |
Income taxes receivable | 160 | 2,392 |
Other current assets | 18,956 | 12,364 |
Total current assets | 352,266 | 329,067 |
Property, plant and equipment, net | 216,338 | 201,696 |
Operating lease assets | 8,829 | 8,772 |
Deferred income taxes | 2,497 | 1,208 |
Other non-current assets | 8,788 | 14,625 |
Total assets | 588,718 | 555,368 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 73,544 | 54,259 |
Income taxes payable | 1,526 | 1,625 |
Current operating lease liabilities | 2,190 | 1,856 |
Current portion of long-term debt | 11,726 | 16,045 |
Other current liabilities | 19,806 | 31,638 |
Total current liabilities | 108,792 | 105,423 |
Long-term debt | 102,309 | 70,336 |
Non-current operating lease liabilities | 6,736 | 7,032 |
Deferred income taxes | 4,983 | 6,686 |
Other long-term liabilities | 4,449 | 7,472 |
Total liabilities | 227,269 | 196,949 |
Commitments and contingencies | ||
Common stock, $0.10 par value (500,000,000 shares authorized; 17,979,362 and 18,490,338 shares issued and outstanding as of July 3, 2022 and June 27, 2021, respectively) | 1,798 | 1,849 |
Capital in excess of par value | 66,120 | 65,205 |
Retained earnings | 353,136 | 344,797 |
Accumulated other comprehensive loss | (59,605) | (53,432) |
Total shareholders’ equity | 361,449 | 358,419 |
Total liabilities and shareholders’ equity | $ 588,718 | $ 555,368 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 03, 2022 | Jun. 27, 2021 |
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) | 17,979,362 | 18,490,338 |
Common stock, shares outstanding (in shares) | 17,979,362 | 18,490,338 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 03, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |||||||||
Income Statement [Abstract] | |||||||||||||||||||
Net sales | $ 217,576 | [1] | $ 200,780 | [1] | $ 201,410 | [1] | $ 195,992 | [1] | $ 184,445 | [2] | $ 178,866 | [2] | $ 162,776 | [2] | $ 141,505 | [2] | $ 815,758 | $ 667,592 | $ 606,509 |
Cost of sales | 735,273 | 574,098 | 567,469 | ||||||||||||||||
Gross profit | 18,354 | [3] | 19,144 | [3] | 16,890 | [3] | 26,097 | [3] | 27,404 | [4] | 25,595 | [4] | 25,934 | [4] | 14,561 | [4] | 80,485 | 93,494 | 39,040 |
Selling, general and administrative expenses | 52,489 | 51,334 | 43,814 | ||||||||||||||||
(Benefit) provision for bad debts | (445) | (1,316) | 1,739 | ||||||||||||||||
Other operating (income) expense, net | (158) | 4,865 | 2,308 | ||||||||||||||||
Operating income (loss) | 28,599 | 38,611 | (8,821) | ||||||||||||||||
Interest income | (1,524) | (603) | (722) | ||||||||||||||||
Interest expense | 3,085 | 3,323 | 4,779 | ||||||||||||||||
Equity in (earnings) loss of unconsolidated affiliates | (605) | (739) | 477 | ||||||||||||||||
Recovery of non-income taxes, net | 815 | (9,717) | |||||||||||||||||
Gain on sale of investment in unconsolidated affiliate | (2,284) | ||||||||||||||||||
Impairment of investment in unconsolidated affiliate | 45,194 | ||||||||||||||||||
Income (loss) before income taxes | 26,828 | 46,347 | (56,265) | ||||||||||||||||
Provision for income taxes | 11,657 | 17,274 | 972 | ||||||||||||||||
Net income (loss) | $ 3,496 | [5] | $ 2,066 | [5] | $ 929 | [5] | $ 8,680 | [5] | $ 13,419 | [6] | $ 4,758 | [6] | $ 7,464 | [6] | $ 3,432 | [6] | $ 15,171 | $ 29,073 | $ (57,237) |
Net income (loss) per common share: | |||||||||||||||||||
Basic | $ 0.19 | [7] | $ 0.11 | [7] | $ 0.05 | [7] | $ 0.47 | [7] | $ 0.73 | [7] | $ 0.26 | [7] | $ 0.40 | [7] | $ 0.19 | [7] | $ 0.82 | $ 1.57 | $ (3.10) |
Diluted | $ 0.19 | [7] | $ 0.11 | [7] | $ 0.05 | [7] | $ 0.46 | [7] | $ 0.70 | [7] | $ 0.25 | [7] | $ 0.40 | [7] | $ 0.18 | [7] | $ 0.80 | $ 1.54 | $ (3.10) |
[1] The fiscal quarter ending July 3, 2022 included an additional week of sales of approximately $8,700. Net sales for the fiscal quarters ended September 27, 2020 and December 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for our domestic operations for all fiscal quarters of fiscal 2022 includes adverse pressures from (i) higher raw material costs, (ii) rising input costs, and (iii) the weakening of labor productivity. Gross profit for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for the fiscal quarters ended December 27, 2020, March 28, 2021, and June 27, 2021 includes the benefit of exceptional performance by the Brazil Segment primarily due to higher conversion margin and market share capture due to agility and responsiveness during demand recovery in Brazil. Net income for our domestic operations for all fiscal quarters of fiscal 2022 includes the adverse pressures on gross profit. Net income for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Net income for the fiscal quarter ended June 27, 2021 includes a recovery of non-income taxes in Brazil due to the favorable conclusion of litigation related to excess social program taxes for multiple prior years. Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Net income (loss) | $ 15,171 | $ 29,073 | $ (57,237) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (7,125) | 9,368 | (21,027) |
Changes in interest rate swaps, net of tax of $282, $310 and $446, respectively | 952 | 1,006 | (1,458) |
Other comprehensive (loss) income, net | (6,173) | 10,374 | (20,577) |
Comprehensive income (loss) | $ 8,998 | $ 39,447 | (77,814) |
Unconsolidated Affiliates [Member] | |||
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | $ 1,908 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Changes in interest rate swaps, tax | $ 282 | $ 310 | $ (446) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Jun. 30, 2019 | $ 392,845 | $ 1,846 | $ 59,560 | $ 374,668 | $ (43,229) |
Balance (in shares) at Jun. 30, 2019 | 18,462,000 | ||||
Options exercised | 29 | $ 1 | 28 | ||
Options exercised (in shares) | 10,000 | ||||
Stock-based compensation | 3,611 | $ 1 | 3,610 | ||
Stock-based compensation (in shares) | 4,000 | ||||
Conversion of equity units | $ 8 | (8) | |||
Conversion of equity units (in shares) | 76,000 | ||||
Common stock repurchased and retired under publicly announced programs | (1,994) | $ (8) | (279) | (1,707) | |
Common stock repurchased and retired under publicly announced program (in shares) | (84,000) | ||||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (522) | $ (3) | (519) | ||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (in shares) | (22,000) | ||||
Other comprehensive income (loss), net of tax | (20,577) | (20,577) | |||
Net income (loss) | (57,237) | (57,237) | |||
Balance at Jun. 28, 2020 | 316,155 | $ 1,845 | 62,392 | 315,724 | (63,806) |
Balance (in shares) at Jun. 28, 2020 | 18,446,000 | ||||
Options exercised (in shares) | 1,000 | ||||
Stock-based compensation | 3,138 | $ 1 | 3,137 | ||
Stock-based compensation (in shares) | 4,000 | ||||
Conversion of equity units | $ 4 | (4) | |||
Conversion of equity units (in shares) | 45,000 | ||||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (321) | $ (1) | (320) | ||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (in shares) | (6,000) | ||||
Other comprehensive income (loss), net of tax | 10,374 | 10,374 | |||
Net income (loss) | 29,073 | 29,073 | |||
Balance at Jun. 27, 2021 | $ 358,419 | $ 1,849 | 65,205 | 344,797 | (53,432) |
Balance (in shares) at Jun. 27, 2021 | 18,490,338 | 18,490,000 | |||
Options exercised | $ 28 | $ 1 | 27 | ||
Options exercised (in shares) | 10,000 | 16,000 | |||
Stock-based compensation | $ 3,291 | $ 1 | 3,290 | ||
Stock-based compensation (in shares) | 5,000 | ||||
Conversion of equity units | $ 11 | (11) | |||
Conversion of equity units (in shares) | 107,000 | ||||
Common stock repurchased and retired under publicly announced programs | $ (9,151) | $ (62) | (2,257) | (6,832) | |
Common stock repurchased and retired under publicly announced program (in shares) | (701) | (617,000) | |||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | $ (136) | $ (2) | (134) | ||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (in shares) | (22,000) | ||||
Other comprehensive income (loss), net of tax | (6,173) | (6,173) | |||
Net income (loss) | 15,171 | 15,171 | |||
Balance at Jul. 03, 2022 | $ 361,449 | $ 1,798 | $ 66,120 | $ 353,136 | $ (59,605) |
Balance (in shares) at Jul. 03, 2022 | 17,979,362 | 17,979,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Statement Of Cash Flows [Abstract] | |||
Cash and cash equivalents at beginning of year | $ 78,253 | $ 75,267 | $ 22,228 |
Operating activities: | |||
Net income (loss) | 15,171 | 29,073 | (57,237) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in (earnings) loss of unconsolidated affiliates | (605) | (739) | 477 |
Distributions received from unconsolidated affiliates | 750 | 750 | 10,437 |
Depreciation and amortization expense | 26,207 | 25,528 | 23,653 |
Non-cash compensation expense | 3,555 | 3,462 | 3,999 |
Deferred income taxes | (3,119) | 5,087 | (4,011) |
Loss on disposal of assets | 48 | 2,809 | 160 |
Recovery of non-income taxes, net | 815 | (9,717) | |
Impairment of investment in unconsolidated affiliate | 45,194 | ||
Gain on sale of investment in unconsolidated affiliate | (2,284) | ||
Other, net | (99) | (495) | (444) |
Changes in assets and liabilities: | |||
Receivables, net | (13,533) | (40,059) | 29,964 |
Inventories | (34,749) | (28,069) | 15,792 |
Other current assets | (2,860) | 2,409 | 3,625 |
Income taxes | 2,193 | 2,978 | (113) |
Accounts payable and other current liabilities | 8,937 | 40,909 | (17,328) |
Other non-current assets | 360 | 139 | 46 |
Other non-current liabilities | (2,691) | 2,616 | 794 |
Net cash provided by operating activities | 380 | 36,681 | 52,724 |
Investing activities: | |||
Capital expenditures | (39,631) | (21,178) | (18,509) |
Purchases of intangible assets | (3,605) | ||
Proceeds from sale of investment in unconsolidated affiliate | 60,000 | ||
Other, net | (2,103) | 162 | 83 |
Net cash (used) provided by investing activities | (41,734) | (24,621) | 41,574 |
Financing activities: | |||
Proceeds from ABL Revolver | 158,000 | 122,200 | |
Payments on ABL Revolver | (116,700) | (141,600) | |
Payments on ABL Term Loan | (12,500) | (10,000) | (10,000) |
Proceeds from construction financing | 2,340 | 882 | |
Payments on finance lease obligations | (3,707) | (3,646) | (6,035) |
Common stock repurchased and retired under publicly announced program | (9,151) | (1,994) | |
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (345) | (111) | (522) |
Other | 28 | 29 | |
Net cash provided (used) by financing activities | 17,965 | (12,875) | (37,922) |
Effect of exchange rate changes on cash and cash equivalents | (1,574) | 3,801 | (3,337) |
Net (decrease) increase in cash and cash equivalents | (24,963) | 2,986 | 53,039 |
Cash and cash equivalents at end of year | $ 53,290 | $ 78,253 | $ 75,267 |
Background
Background | 12 Months Ended |
Jul. 03, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Background | 1. Background Overview Unifi, Inc., a New York corporation formed in 1969 (together with its subsidiaries, “UNIFI,” the “Company,” “we,” “us” or “our”), is a multinational 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 sometimes refer to these indirect customers as “brand partners.” Polyester products 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 products 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, value-added and commodity solutions, with principal geographic markets in the North America, Central America, South America, Asia, and Europe. UNIFI has direct manufacturing operations in four countries and participates in joint ventures with operations in Israel and the United States (“U.S.”). Fiscal Year The fiscal year for Unifi, Inc., its domestic subsidiaries and its subsidiary in El Salvador ends on the Sunday in June or July nearest to June 30 of each year. Unifi, Inc.’s fiscal 2022, 2021, and 2020 ended on July 3, 2022, June 27, 2021, and June 28, 2020, respectively. Unifi, Inc.’s remaining material operating subsidiaries’ fiscal years end on June 30. There have been no significant transactions or events that occurred between Unifi, Inc.’s fiscal year end and such wholly owned subsidiaries’ fiscal year ends. Unifi, Inc.’s fiscal 2022 consisted of 53 weeks, while fiscal 2021 and 2020 each consisted of 52 weeks. Current Economic Environment UNIFI evaluated GAAP requirements for the consideration of forecasted financial information, including, but not limited to, the carrying value of long-lived assets in context with the information reasonably available to UNIFI and the unknown future impacts of the economic environment as of July 3, 2022 and through the date of this filing. As a result of these evaluations, there were no impairments or material changes to asset balances that impacted UNIFI's consolidated financial statements as of and for the period ended July 3, 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 03, 2022 | |
Notes To Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies UNIFI follows U.S. generally accepted accounting principles (“GAAP”). The significant accounting policies described below, together with the other notes to the accompanying consolidated financial statements that follow, are an integral part of the consolidated financial statements. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Unifi, Inc. and its subsidiaries in which it maintains a controlling financial interest. All account balances and transactions between Unifi, Inc. and the subsidiaries which it controls have been eliminated. For transactions with entities accounted for under the equity method, any intercompany profits on amounts still remaining are eliminated. Amounts originating from any deferral of intercompany profits are recorded within the account balance to which the transaction specifically relates (e.g., inventory). Only upon settlement of the intercompany transaction with a third party is the deferral of the intercompany profit recognized by UNIFI. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the period. UNIFI’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results may vary from these estimates. Cash and Cash Equivalents Cash equivalents are defined as highly liquid, short-term investments having an original maturity of three months or less. Book overdrafts, for which the bank has not advanced cash, if any, are reclassified to accounts payable and reflected as an offset thereto within the accompanying consolidated statements of cash flows. Receivables Receivables are stated net of expected lifetime credit losses. Allowances are provided for known and potential losses arising from quality claims and for amounts owed by customers. Reserves for quality claims have not been material and are based on historical claim experience and known pending claims and are recorded as a reduction of net sales. The allowance for uncollectible accounts is recorded against operating income and reflects UNIFI’s best estimate of probable losses inherent in its accounts receivable portfolio determined on the basis of historical write off experience, aging of trade receivables, specific allowances for known troubled accounts, and other currently available information. Customer accounts are written off against the allowance for uncollectible accounts when they are no longer deemed to be collectible. Inventories UNIFI’s inventories are valued at the lower of cost or net realizable value, with the cost for the majority of its inventory determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies are valued using the average cost method. UNIFI’s estimates for net realizable value related to obsolete, slow-moving, or excess inventories are based upon many factors, including historical recovery rates, inventory age, the expected net realizable value of specific products, and current economic conditions. Debt Issuance Costs Debt issuance costs for revolving credit arrangements are immaterial. All other debt issuance costs are recorded against long-term debt and amortized as additional interest expense using the effective interest method. In the event of any prepayment of its debt obligations, UNIFI accelerates the recognition of a pro-rata amount of issuance costs. Property, Plant and Equipment Property, plant, and equipment (“PP&E”) are stated at historical cost less accumulated depreciation. Plant and equipment under finance leases are stated at the present value of minimum lease payments less accumulated amortization. Additions or improvements that substantially extend the useful life of a particular asset are capitalized. Depreciation is calculated primarily utilizing the straight-line method over the following useful lives: Asset categories Useful lives in years Land improvements 5 to 20 Buildings and improvements 10 to 40 Machinery and equipment 2 to 25 Computer, software and office equipment 3 to 7 Internal software development costs 3 Transportation equipment 3 to 15 Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining term of the lease. Assets under finance leases are amortized in a manner consistent with UNIFI’s normal depreciation policy if ownership is transferred by the end of the lease or if there is a bargain purchase option. If such ownership criteria are not met, amortization occurs over the shorter of the lease term or the asset’s useful life. UNIFI capitalizes its costs of developing internal software when the software is used as an integral part of its manufacturing or business processes and the technological feasibility has been established. Internal software costs are amortized over a period of three years and, in accordance with the nature of the project, charged to cost of sales or selling, general, and administrative expenses (“SG&A”). Fully depreciated assets are retained in cost and accumulated depreciation accounts until they are disposed. In the case of disposals, asset costs and related accumulated depreciation amounts are removed from the accounts, and the net amounts, less proceeds from disposal, are included in the determination of net income (loss) and presented within other operating (income) expense, net. Repair and maintenance costs related to PP&E, which do not significantly increase the useful life of an existing asset or do not significantly alter, modify or change the capabilities or production capacity of an existing asset, are expensed as incurred. Interest is capitalized for capital projects requiring a construction period. PP&E and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. Long-lived assets to be disposed of by sale within one year are classified as held for sale and are reported at the lower of their carrying amount or fair value less cost to sell. Depreciation ceases for all assets classified as held for sale. Long-lived assets to be disposed of other than by sale are classified as held for use until they are disposed of and these assets are reported at the lower of their carrying amount or estimated fair value. Intangible Assets Finite-lived intangible assets, such as customer lists, non-compete agreements, and trademarks are amortized over their estimated useful lives. UNIFI periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets (asset groups) are reviewed for impairment or obsolescence whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. UNIFI has no intangible assets with indefinite lives. Investments in Unconsolidated Affiliates UNIFI evaluates its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. During fiscal 2020, UNIFI owned a 34% interest in PAL (the “PAL Investment”) and Parkdale, Incorporated (“Parkdale”) owned the majority 66% interest. During March 2020, UNIFI commenced negotiations to sell the PAL Investment to Parkdale. Such negotiations indicated that the fair value of the PAL Investment was less than UNIFI’s carrying value and UNIFI no longer intended to hold the PAL Investment to allow recovery of the carrying value. UNIFI recorded an other-than-temporary impairment of $45,194 to adjust the PAL Investment to fair value. In April 2020, UNIFI and Parkdale finalized negotiations to sell UNIFI’s PAL Investment to Parkdale for $60,000. The transaction closed on April 29, 2020, and UNIFI received $60,000 in cash. Derivative Instruments All derivatives are carried on the balance sheet at fair value and are classified according to their asset or liability position and the expected timing of settlement. For cash flow hedges, the effective portion of gains and losses are recorded in accumulated other comprehensive loss until the underlying transactions are recognized in income. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to current period earnings on the same line item as the underlying transaction. Derivatives that are not designated for hedge accounting are marked to market at the end of each period with the changes in fair value recognized in current period earnings. Settlements of any cash flow derivative contracts are classified as cash flows from operating activities. There were no outstanding derivative instruments as of July 3, 2022. Fair Value Measurements The accounting guidance for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). Fair value is based on assumptions that market participants would use when pricing the asset or liability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. UNIFI uses the following to measure fair value for its assets and liabilities. • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either indirectly or directly. • Level 3 – Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. UNIFI believes that there have been no significant changes to its credit risk profile or the interest rates available to UNIFI for debt issuances with similar terms and average maturities, and UNIFI estimates that the fair values of its debt obligations approximate the carrying amounts. Other financial instruments include cash and cash equivalents, receivables, accounts payable, and accrued expenses. The financial statement carrying amounts of these items approximate the fair values due to their short-term nature. There were no transfers into or out of the levels of the fair value hierarchy for any years presented. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different tax years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which these items are expected to reverse. UNIFI reviews deferred tax assets to determine if it is more-likely-than-not they will be realized. If UNIFI determines it is not more-likely-than-not that a deferred tax asset will be realized, it records a valuation allowance to reverse the previously recognized benefit. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. UNIFI recognizes tax benefits related to uncertain tax positions if it believes it is more-likely-than-not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. UNIFI accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Penalties and interest related to income tax expense, if incurred, are included in provision for income taxes. Stock-Based Compensation Compensation expense for stock awards is based on the grant date fair value and expensed over the applicable vesting period. UNIFI has a policy of issuing new shares to satisfy award exercises and conversions. For awards with a service condition and a graded vesting schedule, UNIFI has elected an accounting policy of recognizing compensation cost on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was, in-substance, multiple awards. Foreign Currency Translation Assets and liabilities of foreign subsidiaries whose functional currency is other than the U.S. Dollar (“USD”) are translated at exchange rates existing at the respective balance sheet dates. Translation gains and losses are not included in determining net income (loss) but are presented in a separate component of accumulated other comprehensive loss. UNIFI translates the results of its foreign operations at the average exchange rates during the respective periods. Transaction gains and losses are included within other operating (income) expense, net. Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which primarily occurs at a point in time, upon either shipment or delivery to the customer. Revenue is recognized over time for contracts in which the associated inventory produced has no alternative use Cost of Sales The major components of cost of sales are: (i) materials and supplies, (ii) labor and fringe benefits, (iii) utility and overhead costs associated with manufactured products, (iv) shipping, handling and warehousing costs, (v) depreciation expense, and (vi) all other costs related to production or service activities. Shipping, Handling, and Warehousing Costs Shipping, handling, and warehousing costs include costs to store goods prior to shipment, prepare goods for shipment and physically move goods to customers. Research and Development Costs Research and development costs include employee costs, production costs related to customer samples, operating supplies, consulting fees and other miscellaneous costs. The cost of research and development is charged to expense as incurred. Research and development costs were as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Research and development costs $ 12,103 $ 11,483 $ 11,257 Selling, General, and Administrative Expenses The major components of SG&A expenses are: (i) costs of UNIFI’s sales organization, marketing and advertising efforts, and external commissions; (ii) costs of maintaining UNIFI’s general and administrative support functions including executive management, information technology, human resources, legal, and finance; (iii) amortization of intangible assets, and (iv) all other costs required to be classified as SG&A expenses. Advertising Costs Advertising costs are expensed as incurred and included in SG&A expenses. UNIFI’s advertising costs include spending for items such as consumer marketing and branding initiatives, promotional items, trade shows, sponsorships, and other programs. Advertising costs were as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Advertising costs $ 4,673 $ 2,919 $ 2,044 Self-Insurance UNIFI self-insures certain risks such as employee healthcare claims and maintains stop-loss coverage. Reserves for incurred but not reported healthcare claims are estimated using historical data, the timeliness of claims processing, medical trends, inflation, and any changes, if applicable, in the nature or type of the plan. Contingencies At any point in time, UNIFI may be a party to various pending legal proceedings, claims or environmental actions. Accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and estimable. Any amounts accrued are not discounted. Legal costs such as outside counsel fees and expenses are charged to expense as incurred. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jul. 03, 2022 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Issued and Pending Adoption There have been no newly issued accounting pronouncements that are expected to have a significant impact on UNIFI’s consolidated financial statements. Recently Adopted In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses |
Leases
Leases | 12 Months Ended |
Jul. 03, 2022 | |
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 not to 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, restrictions, covenants, or sub-leases related to these leases. Variable lease payments are determined as the amounts included in the lease payment that are based on the change in index or usage. UNIFI’s accounting for finance leases remained substantially unchanged. 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: Classification Balance Sheet Location July 3, 2022 June 27, 2021 Lease Assets Operating lease assets Operating lease assets $ 8,829 $ 8,772 Finance lease assets Property, plant & equipment, net 7,017 16,037 Total lease assets $ 15,846 $ 24,809 Lease Liabilities Current operating lease liabilities Current operating lease liabilities $ 2,190 $ 1,856 Current finance lease liabilities Current portion of long-term debt 1,726 3,545 Total current lease liabilities $ 3,916 $ 5,401 Non-current operating lease liabilities Non-current operating lease liabilities $ 6,736 $ 7,032 Non-current finance lease liabilities Long-term debt 5,535 4,930 Total non-current lease liabilities $ 12,271 $ 11,962 Total lease liabilities $ 16,187 $ 17,363 The following table sets forth the components of UNIFI’s total lease cost for fiscal 2022 and 2021: For The Fiscal Year For The Fiscal Year Lease Cost July 3, 2022 June 27, 2021 Operating lease cost $ 2,766 $ 2,465 Variable lease cost 502 503 Finance lease cost: Amortization of lease assets 1,981 1,998 Interest on lease liabilities 258 365 Short-term lease cost 967 1,007 Total lease cost $ 6,474 $ 6,338 As of July 3, 2022 and June 27, 2021, Unifi had not received any COVID-19 rent concessions. The following table presents supplemental information related to leases: For The Fiscal Year For The Fiscal Year Other Information July 3, 2022 June 27, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 2,766 $ 2,465 Financing cash flows used by finance leases $ 3,707 $ 3,646 Non-cash activities: Leased assets obtained in exchange for new operating lease liabilities $ 1,662 $ 2,606 Leased assets obtained in exchange for new finance lease liabilities $ 2,493 $ 740 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. UNIFI makes adjustments to this rate for securitization, the length of the lease term (tenure), and leases denominated in foreign currencies. Generally, the IBR for each jurisdiction approximates the specific risk-free rate for the respective jurisdiction incremented for UNIFI’s corporate credit risk and adjusted for tenure. 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: Weighted Average Remaining Lease Term and Discount Rate July 3, 2022 June 27, 2021 Weighted average remaining lease term (years): Operating leases 4.1 5.9 Finance leases 4.2 3.8 Weighted average discount rate (percentage): Operating leases 5.0 % 5.1 % Finance leases 3.6 % 3.6 % 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 July 3, 2022 by fiscal year were: Maturity of Lease Liabilities Finance Leases Operating Leases Fiscal 2023 $ 2,032 $ 2,595 Fiscal 2024 2,032 2,004 Fiscal 2025 1,880 1,498 Fiscal 2026 1,385 1,201 Fiscal 2027 821 971 Fiscal years thereafter 100 1,788 Total minimum lease payments $ 8,250 $ 10,057 Less estimated executory costs (413 ) — Less imputed interest (576 ) (1,131 ) Present value of net minimum lease payments 7,261 8,926 Less current portion of lease obligations (1,726 ) (2,190 ) Long-term portion of lease obligations $ 5,535 $ 6,736 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jul. 03, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 5. Revenue Recognition The following tables present net sales disaggregated by (i) classification of customer type and (ii) REPREVE Fiber sales: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Third-party manufacturer $ 808,655 $ 656,763 $ 598,510 Service 7,103 10,829 7,999 Net sales $ 815,758 $ 667,592 $ 606,509 For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 REPREVE ® $ 293,080 $ 245,832 $ 186,141 All other products and services 522,678 421,760 420,368 Net sales $ 815,758 $ 667,592 $ 606,509 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. REPREVE Fiber REPREVE Fiber represents our collection of fiber products on our recycled platform, with or without added technologies. Variable Consideration 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. Variable consideration has been immaterial to UNIFI’s financial statements for all years presented. 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. |
Receivables, Net
Receivables, Net | 12 Months Ended |
Jul. 03, 2022 | |
Receivables [Abstract] | |
Receivables, Net | 6. Receivables, Net Receivables, net consists of the following: July 3, 2022 June 27, 2021 Customer receivables $ 99,963 $ 81,921 Allowance for uncollectible accounts (1,498 ) (2,525 ) Reserves for quality claims (860 ) (703 ) Net customer receivables 97,605 78,693 Other receivables 8,960 16,144 Total receivables, net $ 106,565 $ 94,837 Other receivables includes $7,849 and $13,391 of banker’s acceptance notes (“BANs”) as of July 3, 2022 and June 27, 2021, respectively, in connection with the settlement of certain customer receivables generated from trade activity in the Asia Segment. The BANs are redeemable upon maturity from the drawing financial institutions, or earlier at a discount. The changes in UNIFI’s allowance for uncollectible accounts and reserves for quality claims were as follows: Allowance for Uncollectible Accounts Reserves for Quality Claims Balance at June 30, 2019 $ (2,338 ) $ (961 ) Charged to costs and expenses (1,739 ) (1,251 ) Translation activity 186 10 Deductions 95 1,274 Balance at June 28, 2020 $ (3,796 ) $ (928 ) Credited (charged) to costs and expenses 1,316 (1,085 ) Translation activity (89 ) (36 ) Deductions 44 1,346 Balance at June 27, 2021 $ (2,525 ) $ (703 ) Credited (charged) to costs and expenses 445 (1,065 ) Translation activity 40 12 Deductions 542 896 Balance at July 3, 2022 $ (1,498 ) $ (860 ) Amounts credited (charged) to costs and expenses for the allowance for uncollectible accounts are reflected in the (benefit) provision for bad debts and deductions represent amounts written off which were deemed to not be collectible, net of any recoveries. Amounts charged to costs and expenses for the reserves for quality claims are primarily reflected as a reduction of net sales and deductions represent adjustments to either increase or decrease claims based on negotiated amounts or actual versus estimated claim differences. |
Inventories
Inventories | 12 Months Ended |
Jul. 03, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories consists of the following: July 3, 2022 June 27, 2021 Raw materials $ 69,994 $ 54,895 Supplies 11,953 10,692 Work in process 10,358 7,516 Finished goods 84,477 70,525 Gross inventories 176,782 143,628 Net realizable value adjustment (3,487 ) (2,407 ) Total inventories $ 173,295 $ 141,221 The cost for the majority of UNIFI’s inventories is determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies of $53,793 and $58,468 as of July 3, 2022 and June 27, 2021, respectively, were valued under the average cost method. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Jul. 03, 2022 | |
Other Assets Current [Abstract] | |
Other Current Assets | 8. Other Current Assets Other current assets consists of the following: July 3, 2022 June 27, 2021 Vendor deposits $ 6,910 $ 3,341 Recovery of non-income taxes, net 6,770 3,456 Prepaid expenses and other 3,004 2,753 Value-added taxes receivable 1,987 2,484 Contract assets 285 330 Total other current assets $ 18,956 $ 12,364 Vendor deposits primarily relates to down payments made toward the purchase of inventory. Recovery of non-income taxes, net relates to favorable litigation results for UNIFI’s Brazilian operations in fiscal 2021, generating overpayments that resulted from excess social program taxes paid in prior fiscal years, as further described below. Prepaid expenses consists of advance payments for routine operating expenses. Value-added taxes receivable relates to recoverable taxes associated with the sales and purchase activities of UNIFI’s foreign operations. Contract assets represents the estimated revenue attributable to UNIFI in connection with completed performance obligations under contracts with customers for which revenue is recognized over time. The contract assets are classified to receivables when the right to payment becomes unconditional. Recovery of Non-Income Taxes, Net Brazilian companies are subject to various taxes on business operations, including turnover taxes used to fund social security and unemployment programs, commonly referred to as PIS/COFINS taxes. UNIFI, along with numerous other companies in Brazil, challenged the constitutionality of certain state taxes historically included in the PIS/COFINS tax base. On May 13, 2021, Brazil’s Supreme Federal Court (“SFC”) ruled in favor of taxpayers, and on July 7, 2021, the Brazilian Internal Revenue Service withdrew its existing appeal. Following the SFC decision, the federal government will not issue refunds for these taxes but will instead allow for the overpayments and associated interest to be applied as credits against future PIS/COFINS tax obligations. There are no limitations or restrictions on UNIFI’s ability to recover the associated overpayment claims as future income is generated. In fiscal 2021, UNIFI recorded $11,519 to reflect the current and non-current recovery of PIS/COFINS taxes and associated interest, with $942 of recoveries relating to fiscal 2021 included within net sales and $10,577 of recoveries relating to fiscal years prior to 2021, which is reduced by fees related to the recovery efforts to comprise $9,717 for recovery of non-income taxes. During fiscal 2022, UNIFI (i) reduced the estimated recovery by $815, based on additional clarity and review of the recovery process during the months following the associated SFC decision and (ii) updated the expected duration of claim recovery to the 12-month period following March 27, 2022. The remaining recovery amount was reclassed to current assets accordingly, with no amounts reflected in other non-current assets at July 3, 2022. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jul. 03, 2022 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 9. Property, Plant and Equipment, Net PP&E, net consists of the following: July 3, 2022 June 27, 2021 Land $ 3,160 $ 3,184 Land improvements 16,443 16,372 Buildings and improvements 164,252 160,122 Assets under finance leases 10,921 22,000 Machinery and equipment 635,699 609,414 Computers, software and office equipment 25,348 24,848 Transportation equipment 10,591 10,461 Construction in progress 20,397 17,834 Gross PP&E 886,811 864,235 Less: accumulated depreciation (666,569 ) (656,576 ) Less: accumulated amortization – finance leases (3,904 ) (5,963 ) Total PP&E, net $ 216,338 $ 201,696 Assets under finance leases consists of the following: July 3, 2022 June 27, 2021 Transportation equipment $ 8,276 $ 8,276 Machinery and equipment 2,645 9,897 Building improvements — 3,827 Gross assets under finance leases $ 10,921 $ 22,000 Depreciation and amortization expense and repair and maintenance expenses were as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Depreciation and amortization expense $ 24,509 $ 24,215 $ 22,551 Repair and maintenance expenses 20,076 18,118 18,093 |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Jul. 03, 2022 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | 10. Other Non-Current Assets Other non-current assets consists of the following: July 3, 2022 June 27, 2021 Intangible assets, net $ 2,500 $ 3,978 Grantor trust 2,196 — Investments in unconsolidated affiliates 2,072 2,159 Recovery of non-income taxes, net — 8,063 Other 2,020 425 Total other non-current assets $ 8,788 $ 14,625 Grantor Trust During fiscal 2022, UNIFI established a grantor (or “rabbi”) trust to facilitate the payment of obligations under the Unifi, Inc. Deferred Compensation Plan (the “DCP”), which was also established in fiscal 2022. In addition to providing certain key employees with the ability to defer earned cash incentive compensation into the DCP, participants can generally choose the form and timing of deferred amounts. The DCP assumed the participants, obligations, and major terms of the Unifi, Inc. Supplemental Key Employee Retirement Plan (together with amendments, the “SERP”), an unfunded plan established in 2006 for purposes of generating supplemental retirement income for key employees of UNIFI. The amounts credited to participant accounts are reflected in selling, general, and administrative expenses. The assets of the trust are subject to the claims of UNIFI’s creditors in the event of insolvency. Investments held for the DCP consist of mutual funds and are recorded based on market values. A change in the value of the trust assets would substantially be offset by a change in the liability to the participants, resulting in an immaterial net impact on our consolidated financial statements. The fair value of the investment assets held by the trust were approximately $2,196 and $0 as of July 3, 2022 and June 27, 2021, respectively, and are classified as trading securities within Other non-current assets. Trading gains and losses associated with these investments are recorded to Other operating expense, net. The associated DCP liability is recorded within Other current liabilities and Other long-term liabilities based on expected payment timing, and any increase or decrease in the liability is reflected as compensation in Selling, general and administrative expenses. During fiscal 2022, we recorded losses on investments held by the trust of $48. Recovery of Non-Income Taxes , Net As previously described in Note 8, “Other Current Assets,” UNIFI recorded a recovery of non-income taxes and reflected current and non-current assets accordingly. Intangible Assets Intangible assets, net consists of the following: July 3, 2022 June 27, 2021 Customer lists $ 5,220 $ 5,220 Non-compete agreement 1,875 1,875 Trademarks 104 411 Total intangible assets, gross 7,199 7,506 Accumulated amortization – customer lists (3,056 ) (2,049 ) Accumulated amortization – non-compete agreement (1,563 ) (1,188 ) Accumulated amortization – trademarks (80 ) (291 ) Total accumulated amortization (4,699 ) (3,528 ) Total intangible assets, net $ 2,500 $ 3,978 UNIFI capitalizes costs incurred to register trademarks primarily for REPREVE in various countries. UNIFI has determined that these trademarks have varying useful lives of up to three years and are being amortized using the straight-line method. Amortization expense for intangible assets consists of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Customer lists $ 1,007 $ 556 $ 326 Non-compete agreement 375 375 375 Trademarks 96 147 154 Total amortization expense $ 1,478 $ 1,078 $ 855 The following table presents the expected intangible asset amortization for the next five fiscal years: Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2027 Thereafter Expected amortization $ 1,291 $ 528 $ 108 $ 108 $ 108 $ 357 Investments in Unconsolidated Affiliates U.N.F. Industries, Ltd. In September 2000, UNIFI and Nilit Ltd. (“Nilit”) formed a 50/50 joint venture, U.N.F. Industries Ltd. (“UNF”), for the purpose of operating nylon extrusion assets to manufacture nylon POY. Raw material and production services for UNF are provided by Nilit under separate supply and services agreements. UNF’s fiscal year end is December 31 and it is a registered Israeli private company located in Migdal Ha-Emek, Israel. UNF America, LLC In October 2009, UNIFI and Nilit America Inc. (“Nilit America”) formed a 50/50 joint venture, UNF America LLC (“UNFA”), for the purpose of operating a nylon extrusion facility which manufactures nylon POY. Raw material and production services for UNFA are provided by Nilit America under separate supply and services agreements. UNFA’s fiscal year end is December 31 and it is a limited liability company located in Ridgeway, Virginia. UNFA is treated as a partnership for its income tax reporting. In conjunction with the formation of UNFA, UNIFI entered into a supply agreement with UNF and UNFA (collectively, “UNFs”) whereby UNIFI agreed to purchase all of its first quality nylon POY requirements for texturing (subject to certain exceptions) from either UNF or UNFA. The agreement has no stated minimum purchase quantities, and pricing is negotiated every six months based on market rates. As of July 3, 2022, UNIFI’s open purchase orders related to this agreement were $896. UNIFI’s raw material purchases under this supply agreement consist of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 UNFA $ 29,637 $ 18,932 $ 14,583 UNF 1,175 548 1,450 Total $ 30,812 $ 19,480 $ 16,033 As of July 3, 2022 and June 27, 2021, UNIFI had combined accounts payable due to UNF and UNFA of $5,565 and $2,955, respectively. UNIFI has determined that UNF and UNFA are variable interest entities and has also determined that UNIFI is the primary beneficiary of these entities, based on the terms of the supply agreement. As a result, these entities should be consolidated with UNIFI’s financial results. As (i) UNIFI purchases substantially all of the output from the two entities so all intercompany sales would be eliminated in consolidation, (ii) the two entities’ balance sheets constitute 3% or less of UNIFI’s current assets and total assets, and (iii) 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 and instead is accounting for these entities as equity investments. As of July 3, 2022, UNIFI’s combined investments in UNF and UNFA were $2,072. 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. Parkdale America, LLC In June 1997, UNIFI and Parkdale Mills, Inc. (“Mills”) entered into a Contribution Agreement that set forth the terms and conditions by which the two companies contributed all of the assets of their spun cotton yarn operations utilizing open-end and air-jet spinning technologies to create PAL, a producer of yarns for sale to the global textile industry and apparel market. In exchange for its contribution, UNIFI received a 34% equity ownership interest in the PAL Investment, accounted for using the equity method of accounting. Effective January 1, 2012, Mills’ interest in PAL was assigned to Parkdale. During March 2020, UNIFI commenced negotiations to sell the PAL Investment to Parkdale. Such negotiations indicated that the fair value of the PAL Investment was less than UNIFI’s carrying value, and UNIFI no longer intended to hold the PAL Investment to allow recovery of the carrying value. UNIFI recorded an other-than-temporary impairment of $45,194 to adjust the PAL Investment to fair value. In April 2020, UNIFI and Parkdale finalized negotiations to sell UNIFI’s PAL Investment to Parkdale for $60,000. The transaction closed on April 29, 2020, and UNIFI received $60,000 in cash. During UNIFI’s period of ownership, PAL was a limited liability company treated as a partnership for income tax reporting purposes. Per PAL’s fiscal 2020 unaudited financial statements, PAL had 10 manufacturing facilities located primarily in the southeast region of the U.S. and in Mexico, and PAL’s five largest customers accounted for approximately 69% of total revenues and 68% of total gross accounts receivable outstanding. Condensed balance sheet and income statement information for UNFs (including reciprocal balances) is presented in the following tables. Fiscal 2020 PAL Investment income statement activity is reported for the ten months of fiscal 2020 ownership ending April 29, 2020. July 3, 2022 June 27, 2021 Current assets $ 10,705 $ 7,931 Non-current assets 605 659 Current liabilities 8,056 3,967 Non-current liabilities — — Shareholders’ equity and capital accounts 3,254 4,623 UNIFI’s portion of undistributed earnings 2,013 2,100 July 3, 2022 June 27, 2021 Net sales $ 31,745 $ 19,649 Gross profit 1,928 3,423 Income from operations 148 1,777 Net income 127 1,782 Depreciation and amortization 121 151 Distributions received 750 750 For the Fiscal Year Ended June 28, 2020 PAL UNFs Total Net sales $ 544,006 $ 17,068 $ 561,074 Gross profit 7,592 2,056 9,648 (Loss) income from operations (7,484 ) 410 (7,074 ) Net (loss) income (2,823 ) 497 (2,326 ) Depreciation and amortization 33,455 135 33,590 Cash received by PAL under cotton rebate program 11,186 — 11,186 Earnings recognized by PAL for cotton rebate program 9,697 — 9,697 Distributions received 10,437 — 10,437 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jul. 03, 2022 | |
Other Liabilities Current [Abstract] | |
Other Current Liabilities | 11. Other Current Liabilities Other current liabilities consists of the following: July 3, 2022 June 27, 2021 Payroll and fringe benefits $ 9,414 $ 10,204 Incentive compensation 3,916 12,356 Utilities 2,287 2,347 Deferred revenue 1,694 2,691 Interest rate swaps — 1,234 Property taxes and other 2,495 2,806 Total other current liabilities $ 19,806 $ 31,638 13. Other Long-Term Liabilities Other long-term liabilities consists of the following: July 3, 2022 June 27, 2021 Nonqualified deferred compensation plan obligation $ 1,982 $ 2,090 Uncertain tax positions 1,575 3,045 Other 892 2,337 Total other long-term liabilities $ 4,449 $ 7,472 As further described in Note 10, “Other Non-Current Assets,” UNIFI maintains a nonqualified deferred compensation plan for certain key employees and reflects a long-term obligation for amounts due beyond twelve months. Other primarily includes certain retiree and post-employment medical and disability liabilities. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jul. 03, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 12. 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 July 3, 2022 July 3, 2022 June 27, 2021 ABL Revolver December 2023 3.2% $ 41,300 $ — ABL Term Loan December 2023 3.2% 65,000 77,500 Finance lease obligations (1) 3.6% 7,261 8,475 Construction financing (2) 1.9% 729 882 Total debt 114,290 86,857 Current ABL Term Loan (10,000 ) (12,500 ) Current portion of finance lease obligations (1,726 ) (3,545 ) Unamortized debt issuance costs (255 ) (476 ) Total long-term debt $ 102,309 $ 70,336 ( 1 ) Scheduled maturity dates for finance lease obligations range from March 2025 to November 2027. ( 2 ) Refer to the discussion below under the subheading “ Construction Financing 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 (together with all previous and subsequent amendments, 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 connection and concurrent with the sale of UNIFI’s 34% interest in PAL on April 29, 2020, UNIFI entered into the Fourth Amendment to Amended and Restated Credit Agreement (“Fourth Amendment”). The Fourth Amendment, among other things, revised the: (i) definition of permitted dispositions within the Credit Agreement to include the sale by Unifi Manufacturing, Inc. of its equity interest in PAL so long as the aggregate net cash proceeds received equaled or exceeded $60,000 and such sale occurred on or before May 15, 2020; (ii) terms of the Credit Agreement to allow the net cash proceeds from the sale of PAL to be applied to the outstanding principal amount of the ABL Revolver until paid in full with the remaining net cash proceeds retained by UNIFI, so long as certain conditions were met; and (iii) terms of the Credit Agreement to allow the lenders to make changes to the benchmark interest rate without further amendment should LIBOR temporarily or permanently cease to exist and a transition to a new benchmark interest rate such as the Secured Overnight Financing Rate (“SOFR”) be required for future ABL Facility borrowings. The Fourth Amendment generated no change in cash flows for the Credit Agreement and, accordingly, followed debt modification accounting. On February 5, 2021, UNIFI entered into the Fifth Amendment to Amended and Restated Agreement (“Fifth Amendment”). The Fifth Amendment primarily allowed for share repurchases of up to $5,000 to be completed from available domestic cash, through June 30, 2021. No such share repurchases were made. The ABL Facility is secured by a first-priority perfected security interest in substantially all owned property and assets (together with all proceeds and products) of Unifi, Inc., Unifi Manufacturing, Inc., and a certain subsidiary guarantor (collectively, the “Loan Parties”). It is also secured by a first-priority security interest in all (or 65% in the case of UNIFI’s first-tier controlled foreign subsidiary, as required by the lenders) of the stock of (or other ownership interests in) each of the Loan Parties (other than Unifi, Inc.) and certain subsidiaries of the Loan Parties, together with all proceeds and products thereof. If excess availability under the ABL Revolver falls below the Trigger Level (as defined in the Credit Agreement), a financial covenant requiring the Loan Parties to maintain a fixed charge coverage ratio on a quarterly basis of at least 1.05 to 1.00 becomes effective. The Trigger Level as of July 3, 2022 was $20,625. In addition, the ABL Facility contains restrictions on particular payments and investments, including certain restrictions on the payment of dividends and share repurchases. Subject to specific provisions, the ABL Term Loan may be prepaid at par, in whole or in part, at any time before the maturity date, at UNIFI’s discretion. ABL Facility borrowings bear interest at LIBOR plus an applicable margin of 1.25% to 1.75%, or the Base Rate (as defined below) plus an applicable margin of 0.25% to 0.75%, with interest currently being paid on a monthly basis. The applicable margin is based on (i) the excess availability under the ABL Revolver and (ii) the consolidated leverage ratio, calculated as of the end of each fiscal quarter. The Base Rate means the greater of (i) the prime lending rate as publicly announced from time to time by Wells Fargo Bank, National Association, (ii) the Federal Funds Rate (as defined in the Credit Agreement) plus 0.5%, and (iii) LIBOR plus 1.0%. UNIFI’s ability to borrow under the ABL Revolver is limited to a borrowing base equal to specified percentages of eligible accounts receivable and inventories and is subject to certain conditions and limitations. There is also a monthly unused line fee under the ABL Revolver of 0.25%. In 2017, UNIFI entered into three interest rate swaps with Wells Fargo Bank, N.A., with notional amounts of $20,000 (“Swap A”), $30,000 (“Swap B”) and $25,000 (“Swap C”), respectively. The combined designated hedges fixed LIBOR at approximately 1.9% for $75,000 of variable rate borrowings through May 24, 2022. Such swaps terminated in May 2022 and there were no material fair value or hedging impacts. As of July 3, 2022: UNIFI had $0 of standby letters of credit; excess availability under the ABL Revolver was $51,409; and the fixed charge coverage ratio was (0.24) to 1.00. Finance Lease Obligations During fiscal 2022, UNIFI entered into finance lease obligations totaling $2,493 for eAFK Evo texturing machines. The maturity dates of these obligations occur during fiscal 2027 with interest rates between 3.0% and 4.4%. During fiscal 2021, UNIFI entered into finance lease obligations totaling $740 for certain transportation equipment. The maturity date of these obligations is June 2025 During fiscal 2020, UNIFI entered into finance lease obligations totaling $6,301 for certain transportation equipment. The maturity date of these obligations range from March 2025 November 2026 Construction Financing In May 2021, UNIFI entered into an agreement with a third party lender that provides for construction-period financing for certain texturing machinery included in our capital allocation plans. UNIFI records project costs to construction in progress and the corresponding liability to construction financing (within long-term debt). The agreement provides for monthly, interest-only payments during the construction period, at a rate of SOFR plus 1.25%, and contains terms customary for a financing of this type. Each borrowing under the agreement provides for 60 monthly payments, which will commence upon the completion of the construction period with an interest rate of approximately 4.4%. In connection with this construction financing arrangement, UNIFI has borrowed a total of $3,222 and transitioned $2,493 of completed asset costs to finance lease obligations as of July 3, 2022. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the following five fiscal years and thereafter. Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2027 Thereafter ABL Revolver $ — $ 41,300 $ — $ — $ — $ — ABL Term Loan 10,000 55,000 — — — — Finance lease obligations 1,726 1,787 1,699 1,255 732 62 Total (1) $ 11,726 $ 98,087 $ 1,699 $ 1,255 $ 732 $ 62 (1) Total reported excludes $729 for construction financing, described above. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Jul. 03, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 11. Other Current Liabilities Other current liabilities consists of the following: July 3, 2022 June 27, 2021 Payroll and fringe benefits $ 9,414 $ 10,204 Incentive compensation 3,916 12,356 Utilities 2,287 2,347 Deferred revenue 1,694 2,691 Interest rate swaps — 1,234 Property taxes and other 2,495 2,806 Total other current liabilities $ 19,806 $ 31,638 13. Other Long-Term Liabilities Other long-term liabilities consists of the following: July 3, 2022 June 27, 2021 Nonqualified deferred compensation plan obligation $ 1,982 $ 2,090 Uncertain tax positions 1,575 3,045 Other 892 2,337 Total other long-term liabilities $ 4,449 $ 7,472 As further described in Note 10, “Other Non-Current Assets,” UNIFI maintains a nonqualified deferred compensation plan for certain key employees and reflects a long-term obligation for amounts due beyond twelve months. Other primarily includes certain retiree and post-employment medical and disability liabilities. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Components of Income (Loss) Before Income Taxes The components of income (loss) before income taxes consist of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 U.S. $ (18,364 ) $ (12,463 ) $ (74,905 ) Foreign 45,192 58,810 18,640 Income (loss) before income taxes $ 26,828 $ 46,347 $ (56,265 ) Components of Provision for Income Taxes Provision for income taxes consists of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Current: Federal $ (1,163 ) $ (577 ) $ 282 State 2 25 (118 ) Foreign 15,935 12,739 4,819 Total current tax expense 14,774 12,187 4,983 Deferred: Federal (630 ) (1,564 ) (3,783 ) State 33 131 116 Foreign (2,520 ) 6,520 (344 ) Total deferred tax expense (3,117 ) 5,087 (4,011 ) Provision for income taxes $ 11,657 $ 17,274 $ 972 On December 22, 2017, the U.S. government enacted comprehensive tax legislation H.R. 1, formerly known as the Tax Cuts and Jobs Act. The Global Intangible Low-Taxed Income (“GILTI”) provisions included in H.R. 1 require that certain income earned by foreign subsidiaries must be currently included in the gross income of the U.S. shareholder. UNIFI has elected to recognize GILTI as a current-period expense. Under this policy, UNIFI has not provided deferred taxes related to temporary differences that, upon their reversal, will affect the amount of income subject to GILTI in the period. On July 20, 2020, the U.S. Treasury issued and enacted final regulations related to GILTI that allow certain U.S. taxpayers to elect to exclude foreign income that is subject to a high effective tax rate from their GILTI inclusions. The GILTI high-tax exclusion is an annual election and is retroactively available for tax years beginning after December 31, 2017. Fiscal 2021 includes a tax benefit of $4,816 related to the retroactive election. Utilization of Net Operating Loss Carryforwards Domestic deferred tax expense includes the utilization of federal net operating loss (“NOL”) carryforwards of $110, $5,312 and $89 for fiscal 2022, 2021, and 2020, respectively. Foreign deferred tax expense includes the utilization of NOL carryforwards of $32, $441, and $702 for fiscal 2022, 2021, and 2020, respectively. State deferred tax expense includes the utilization of NOL carryforwards of $25, $167, and $20 for fiscal 2022, 2021, and 2020, respectively. Effective Tax Rate Reconciliation from the federal statutory tax rate to the effective tax rate is as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Change in valuation allowance 12.6 5.0 0.6 Foreign income taxed at different rates 10.7 9.0 (1.2 ) Tax expense on unremitted foreign earnings 5.5 7.0 (0.9 ) Repatriation of foreign earnings and withholding taxes 3.9 1.8 (2.0 ) Change in uncertain tax positions 2.4 0.5 (0.3 ) Nondeductible compensation 2.1 1.4 (0.8 ) U.S. tax on GILTI 0.2 3.9 (5.0 ) Nontaxable income (10.2 ) (2.4 ) 1.1 Research and other business credits (4.0 ) (3.7 ) 2.0 State income taxes, net of federal tax benefit (1.3 ) (0.2 ) 2.6 Foreign tax credits (0.5 ) (5.4 ) 0.9 Deemed repatriation of foreign earnings under Subpart F — 1.5 — Domestic production activities deduction — 0.6 — Rate benefit of U.S. federal NOL carryback — (2.8 ) — Valuation allowance related to loss on sale of investment in PAL — — (19.3 ) Nondeductible expenses and other 1.1 0.1 (0.4 ) Effective tax rate 43.5 % 37.3 % (1.7 )% Deferred Income Taxes The significant components of UNIFI’s deferred tax assets and liabilities consist of the following: July 3, 2022 June 27, 2021 Deferred tax assets: Capital loss carryforwards $ 16,318 $ 17,429 Tax credits 12,079 18,711 Research and development costs 7,409 6,934 NOL carryforwards 6,603 3,043 Accrued compensation 2,106 4,056 Other items 4,877 4,815 Total gross deferred tax assets 49,392 54,988 Valuation allowance (31,667 ) (36,980 ) Net deferred tax assets 17,725 18,008 Deferred tax liabilities: PP&E (14,952 ) (16,045 ) Unremitted earnings (5,253 ) (3,769 ) Recovery of non-income taxes 132 (3,664 ) Other (138 ) (8 ) Total deferred tax liabilities (20,211 ) (23,486 ) Net deferred tax liabilities $ (2,486 ) $ (5,478 ) Deferred Income Taxes – Valuation Allowance In assessing its ability to realize deferred tax assets, UNIFI considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. UNIFI considers the scheduled reversal of taxable temporary differences, taxable income in carryback years, cumulative losses in recent years, projected future taxable income, and tax planning strategies in making this assessment. Since UNIFI operates in multiple jurisdictions, the assessment is made on a jurisdiction-by-jurisdiction basis, taking into account the effects of local tax law. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of its deferred income tax asset balances to warrant the application of a full valuation allowance against the deferred tax assets of its U.S. consolidated group and certain foreign subsidiaries as of July 3, 2022. Components of UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Capital loss carryforwards $ (16,318 ) $ (17,429 ) $ (13,791 ) Tax credits (10,779 ) (17,215 ) (17,111 ) NOL carryforwards (4,570 ) (2,336 ) (2,542 ) Investments, including unconsolidated affiliates — — (3,995 ) Total deferred tax valuation allowance $ (31,667 ) $ (36,980 ) $ (37,439 ) During fiscal 2022, UNIFI’s valuation allowance decreased by $5,313. The decrease was primarily driven by a decrease in the valuation allowance on foreign tax credits and capital loss carryforwards, offset by an increase in the valuation allowance on federal net operating loss and research credits carryforwards. During fiscal 2021, UNIFI’s valuation allowance decreased by $459. The decrease was primarily driven by a decrease in the valuation allowance on investments in unconsolidated affiliates and foreign tax credits, offset by an increase in the valuation allowance on research credits and capital loss carryforwards. During fiscal 2020, UNIFI’s valuation allowance increased by $11,419. The increase was primarily driven by an increase in the valuation allowance on a capital loss generated by the sale of UNIFI’s interest in PAL. Unrecognized Tax Benefits A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Balance at beginning of year $ 2,590 $ 1,218 $ 1,083 Gross increases (decreases) related to current period tax positions 408 (24 ) 98 Gross (decreases) increases related to tax positions in prior periods (89 ) 1,396 37 Gross decreases related to settlements with tax authorities — — — Gross decreases related to lapse of applicable statute of limitations — — — Balance at end of year $ 2,909 $ 2,590 $ 1,218 Unrecognized tax benefits would generate a favorable impact of $4,746 on UNIFI’s effective tax rate when recognized. UNIFI does not expect material changes in uncertain tax positions within the next 12 months. Expense for interest and penalties recognized by UNIFI within the provision for income taxes was $287, $141, and $69 for fiscal 2022, 2021, and 2020, respectively. UNIFI had $559, and $273 accrued for interest and/or penalties related to uncertain tax positions as of July 3, 2022 and June 27, 2021, respectively. Expiration of Net Operating Loss Carryforwards and Tax Credit Carryforwards As of July 3, 2022, UNIFI had U.S. federal capital loss carryforwards of $71,105, U.S. federal NOL carryforwards of $16,731, U.S. state NOL carryforwards of $70,601 and foreign NOL carryforwards of $395. The NOL carryforwards begin expiring in varying amounts in fiscal 2023. As of July 3, 2022, UNIFI had the following carryforward attributes held outside of the U.S. consolidated tax filing group: U.S. federal NOL carryforwards of $2,340 and U.S. state NOL carryforwards of $14,421. The NOL carryforwards held outside of the U.S. consolidated tax filing group begin expiring in fiscal 2023. As of July 3, 2022, UNIFI had U.S. federal foreign tax credit carryforwards of $3,075 and foreign tax credit carryforwards in foreign jurisdictions of $3,170. The foreign tax credit carryforwards begin expiring in varying amounts in fiscal 2023. As of July 3, 2022, UNIFI had U.S. federal research tax credit carryforwards of $5,284, which begin expiring in fiscal 2039. Tax Years Subject to Examination Unifi, Inc. and its domestic subsidiaries file a consolidated federal income tax return, as well as income tax returns in multiple state and foreign jurisdictions. The tax years subject to examination vary by jurisdiction. UNIFI regularly assesses the outcomes of both completed and ongoing examinations to ensure that UNIFI’s provision for income taxes is sufficient. In fiscal 2019, the Internal Revenue Service (“IRS”) initiated an audit of UNIFI’s domestic operations for fiscal years 2016 and 2017. In fiscal 2020, the IRS expanded the audit to include fiscal 2018. In fiscal 2021, the IRS expanded the audit to include fiscal 2019. Fiscal years 2009 through 2014 remain open for certain foreign tax credit amendments and net operating loss and general business credit carrybacks. Statutes related to material foreign jurisdictions are open from January 1, 2017 and material state jurisdictions from June 30, 2019. Certain carryforward tax attributes generated in years prior remain subject to examination and could change in subsequent tax years. Indefinite Reinvestment Assertion UNIFI considers $26,253 of its unremitted foreign earnings to be permanently reinvested to fund working capital requirements and operations abroad and has therefore not recognized a deferred tax liability for the estimated future taxes that would be incurred upon repatriation. If these earnings were distributed in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, UNIFI could be subject to additional tax liabilities of approximately $6,046. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jul. 03, 2022 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 15. Shareholders’ Equity On October 31, 2018, UNIFI announced that the Board 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 may be made from time to time in the open market at prevailing market prices, through private transactions, or via block trades. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements, and other factors. The share repurchase authorization is discretionary and has no expiration date. Repurchases, if any, are expected to be financed through cash generated from operations and borrowings under the ABL Revolver, and are subject to applicable limitations and restrictions as set forth in the ABL Facility. UNIFI may discontinue repurchases at any time that management determines additional purchases are not beneficial or advisable. The following table summarizes UNIFI’s repurchases and retirements of its common stock under the 2018 SRP for the fiscal periods noted: Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs Fiscal 2019 — $ — $ 50,000 Fiscal 2020 84 $ 23.72 $ 48,008 Fiscal 2021 — $ — $ 48,008 Fiscal 2022 617 $ 14.84 $ 38,859 Total 701 $ 15.90 $ 38,859 As of July 3, 2022, $38,859 remained available for repurchase under the 2018 SRP. Repurchased shares are retired and have the status of authorized and unissued shares. The cost of the repurchased shares is recorded as a reduction to common stock to the extent of the par value of the shares acquired and the remainder is allocated between capital in excess of par value and retained earnings, on a pro rata basis. No dividends were paid in the three most recent fiscal years. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jul. 03, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 16. Stock-Based Compensation On October 23, 2013, UNIFI’s shareholders approved the Unifi, Inc. 2013 Incentive Compensation Plan (the “2013 Plan”). The 2013 Plan replaced the 2008 Unifi, Inc. Long-Term Incentive Plan (the “2008 LTIP”). No additional awards can be granted under the 2008 LTIP; however, prior awards outstanding under the 2008 LTIP remain subject to that plan’s provisions. The 2013 Plan authorized the issuance of 1,000 shares of common stock, subject to certain increases in the event outstanding awards under the 2008 LTIP expired, were forfeited or otherwise terminated unexercised. The 2013 Plan expired in accordance with its terms on October 24, 2018, and the Unifi, Inc. Amended and Restated 2013 Incentive Compensation Plan (the “Amended 2013 Plan”) became effective on that same day, upon approval by shareholders at UNIFI’s annual meeting of shareholders held on October 31, 2018. The Amended 2013 Plan increased the number of shares available for future issuance pursuant to awards granted under the Amended 2013 Plan to 1,250 and removed provisions no longer applicable due to the recent changes to Section 162(m) of the Internal Revenue Code of 1986, as amended. The material terms and provisions of the Amended 2013 Plan are otherwise similar to those of the 2013 Plan. On October 29, 2020, UNIFI’s shareholders approved the Unifi, Inc. Second Amended and Restated 2013 Incentive Compensation Plan (the “2020 Plan”). The 2020 Plan set the number of shares available for future issuance pursuant to awards granted under the 2020 Plan to 850. No additional awards can be granted under prior plans; however, awards outstanding under a respective prior plan remain subject to that plan’s provisions. The following table provides information as of July 3, 2022 with respect to the number of securities remaining available for future issuance under the 2020 Plan: Authorized under the 2020 Plan 850 Plus: Awards expired, forfeited or otherwise terminated unexercised 1 Less: Awards granted to employees (209 ) Less: Awards granted to non-employee directors (41 ) Available for issuance under the 2020 Plan 601 Stock Options A summary of UNIFI’s stock options granted to key employees and valued under the Black-Scholes model is as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Quantity — 155 143 Service Period (years) — 3.0 3.0 Weighted Average Exercise Price $ — $ 15.64 $ 19.95 Weighted Average Grant Date Fair Value $ — $ 6.75 $ 7.33 On May 1, 2020, excluded from the fiscal 2020 table above, UNIFI granted stock options to purchase 533 shares of its common stock to a key employee with an exercise price of $11.74 and 10-year contractual terms, as follows: • 100 • 100 • 100 • 233 The Black-Scholes model used the following weighted average assumptions for the above awards: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Expected term (years) — 5.5 5.5 Risk-free interest rate — 0.4 % 0.7 % Volatility — 49.0 % 43.2 % Dividend yield — — — UNIFI uses historical data to estimate the expected term and volatility. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant for periods corresponding with the expected term of the stock options. A summary of stock option activity for fiscal 2022 is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 27, 2021 1,114 $ 16.82 Granted — $ — Exercised (10 ) $ 11.09 Cancelled or forfeited (122 ) $ 25.45 Expired — $ — Outstanding at July 3, 2022 982 $ 15.81 7.2 $ 1,296 Vested and expected to vest as of July 3, 2022 982 $ 15.81 7.2 $ 1,296 Exercisable at July 3, 2022 380 $ 20.15 6.1 $ 285 At July 3, 2022, the remaining unrecognized compensation cost related to the unvested stock options was $904, which is expected to be recognized over a weighted average period of 1.7 years. For fiscal 2022, 2021, and 2020, the total intrinsic value of stock options exercised was $60, $85, and $147, respectively. The amount of cash received from the exercise of stock options was $28, $0 and $29 for fiscal 2022, 2021, and 2020, respectively. The tax benefit realized from stock options exercised was $8, $11, and $20 for fiscal 2022, 2021, and 2020, respectively. Stock Units and Share Units During fiscal 2022, 2021, and 2020, UNIFI granted 80, 73, and 127 restricted stock units (“RSUs”), respectively, to certain key employees. The employee RSUs are subject to a vesting restriction and convey no rights of ownership in shares of Company common stock until such employee RSUs have vested and been distributed to the grantee in the form of Company common stock. The employee RSUs vest over a three-year During fiscal 2022, 2021, and 2020, UNIFI granted 32 vested share units (“VSUs”), 37 RSUs, and 24 During fiscal 2022, UNIFI granted 53 performance share units (“PSUs”) to certain key employees. The employee PSUs are subject to a performance-based vesting restriction UNIFI estimates the fair value of RSUs, VSUs and PSUs based on the market price of UNIFI’s common stock at the award grant date. A summary of RSU, VSU and PSU activity for fiscal 2022 is as follows: Non-vested Weighted Average Grant Date Fair Value Vested Total Weighted Average Grant Date Fair Value Outstanding at June 27, 2021 162 $ 16.75 241 403 $ 20.82 Granted 166 $ 23.12 — 166 $ 23.12 Vested (92 ) $ 18.78 92 — $ 18.78 Converted — $ — (88 ) (88 ) $ 19.80 Cancelled or forfeited (2 ) $ 20.39 — (2 ) $ 20.39 Outstanding at July 3, 2022 234 $ 20.38 245 479 $ 21.80 At July 3, 2022, the number of RSUs, VSUs and PSUs vested and expected to vest was 426, with an aggregate intrinsic value of $5,972. The aggregate intrinsic value of the 245 vested RSUs, VSUs, and PSUs at July 3, 2022 was $3,434. The unrecognized compensation cost related to the unvested RSUs and PSUs at July 3, 2022 was $1,634, which is expected to be recognized over a weighted average period of 1.6 years. For fiscal 2022, 2021, and 2020, the total intrinsic value of RSUs, VSUs, and PSUs converted was $1,715, Summary The total cost charged against income related to all stock-based compensation arrangements was as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Stock options $ 928 $ 1,047 $ 1,265 RSUs and VSUs 2,253 2,015 2,245 Total compensation cost $ 3,181 $ 3,062 $ 3,510 In each of fiscal 2022, 2021, and fiscal 2020, UNIFI issued 5, 4, and 4 shares of common stock for $110, $75, and $100 of expense, respectively, in connection with Board compensation. The total income tax benefit recognized for stock-based compensation was $ 386 , $ 297 , and $ 178 for fiscal 2022, 2021 , and 20 20 , respectively. As of July 3, 2022, total unrecognized compensation costs related to all unvested stock-based compensation arrangements were $2,538. The weighted average period over which these costs are expected to be recognized is 1.6 years. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Jul. 03, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Plans | 17. Defined Contribution Plans 401(k) Plan UNIFI matches employee contributions made to the Unifi, Inc. Retirement Savings Plan (the “401(k) Plan”), a 401(k) defined contribution plan, which covers eligible U.S. salary and hourly employees. Under the terms of the 401(k) Plan, UNIFI matches 100% of the first 3% of eligible employee contributions and 50% of the next 2% of eligible contributions. The following table presents the employer matching contribution expense related to the 401(k) Plan: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Matching contribution expense $ 3,215 $ 2,578 $ 2,491 Non-qualified Deferred Compensation Plan The UNIFI, Inc. Deferred Compensation Plan (the “DCP”), established in fiscal 2022, is an unfunded non-qualified deferred compensation plan in which certain key employees are eligible to participate. Under the DCP, participants may elect to defer all or a portion of their annual cash incentive compensation to their account. The deferred amounts are paid in accordance with each participant’s elections. In addition to elective deferrals, the DCP assumed the obligations of the Unifi, Inc. Supplemental Key Employee Retirement Plan (the “SERP”), which includes amounts credited to eligible employees’ accounts based on a percentage of their annual base compensation. Amounts due within the next operating cycle are reflected in Other current liabilities and the remaining DCP obligation is reflected in Other long-term liabilities. The total DCP obligation as of July 3, 2022 and the predecessor SERP, as of June 27, 2021, was $2,359, and $3,177, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 12 Months Ended |
Jul. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 18. Fair Value of Financial Instruments and Non-Financial Assets and Liabilities Financial Instruments Grantor Trust The fair value of the investment assets held by the grantor trust established in connection with the DCP (as previously described in the preceding Notes) were approximately $2,196 and $0 as of July 3, 2022 and June 27, 2021, respectively, and are classified as trading securities within Other non-current assets. The grantor trust assets have readily-available market values and are classified as Level 1 trading securities in the fair value hierarchy. Trading gains and losses associated with these investments are recorded to Other operating expense, net. The associated DCP liability is recorded within Other long-term liabilities, and any increase or decrease in the liability is also recorded in Other operating expense, net. During fiscal 2022, we recorded losses on investments held by the trust of $48. Derivative Instruments UNIFI uses derivative financial instruments such as interest rate swaps to reduce its ongoing business exposures to fluctuations in interest rates. UNIFI does not enter into derivative contracts for speculative purposes. Interest Rate Swaps UNIFI’s primary debt obligations utilize variable-rate LIBOR, exposing the Company to variability in interest payments due to changes in interest rates. Management enters into LIBOR-based interest rate swap agreements to manage fluctuations in cash flows resulting from changes in the benchmark LIBOR. Under the terms of the interest rate swaps, UNIFI effectively received LIBOR-based variable interest rate payments and made fixed interest rate payments, thereby fixing the variable rate cash flows on the notional amount of debt obligations. In 2017, UNIFI entered into Swaps A, B, and C. The combined designated hedges fixed LIBOR at approximately 1.9% for $75,000 of variable rate borrowings through May 24, 2022. In accordance with hedge accounting, each swap is reflected on the accompanying consolidated balance sheets at fair value with a corresponding balance in accumulated other comprehensive loss, and impacts earnings commensurate with the forecasted transaction. The swaps terminated in May 2022 and the related impacts were insignificant. The below table presents the fair value attributes for the historical swaps as of June 27, 2021. As of June 27, 2021 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other current liabilities Level 2 $ 334 Swap B USD $ 30,000 Other current liabilities Level 2 $ 500 Swap C USD $ 25,000 Other current liabilities Level 2 $ 400 Estimates for the fair value of UNIFI’s derivative contracts are obtained from month-end market quotes for contracts with similar terms. Swaps A, B, and C, designated hedges, increased interest expense for fiscal 2022, 2021 and 2020 by $1,190, $1,347 and $270. By entering into derivative contracts, UNIFI exposes itself to counterparty credit risk. UNIFI attempts to minimize this risk by selecting counterparties with investment grade credit ratings and regularly monitoring those ratings. UNIFI’s derivative instruments do not contain any credit-risk-related contingent features. Non-Financial Assets and Liabilities UNIFI did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-recurring basis. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jul. 03, 2022 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 19. 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, net of tax (19,119 ) (1,458 ) (20,577 ) Balance at June 28, 2020 $ (61,848 ) $ (1,958 ) $ (63,806 ) Other comprehensive income, net of tax 9,368 1,006 10,374 Balance at June 27, 2021 $ (52,480 ) $ (952 ) $ (53,432 ) Other comprehensive (loss) income, net of tax (7,125 ) 952 (6,173 ) Balance at July 3, 2022 $ (59,605 ) $ — $ (59,605 ) A summary of other comprehensive (loss) income for fiscal 2022, 2021, and 2020 is provided as follows: Fiscal 2022 Fiscal 2021 Fiscal 2020 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive (loss) income: Foreign currency translation adjustments $ (7,125 ) $ — $ (7,125 ) $ 9,368 $ — $ 9,368 $ (21,027 ) $ — $ (21,027 ) Foreign currency translation adjustments for an unconsolidated affiliate — — — — — — 1,908 — 1,908 Changes in interest rate swaps, net of reclassification adjustments 1,234 (282 ) 952 1,316 (310 ) 1,006 (1,904 ) 446 (1,458 ) Other comprehensive (loss) income, net $ (5,891 ) $ (282 ) $ (6,173 ) $ 10,684 $ (310 ) $ 10,374 $ (21,023 ) $ 446 $ (20,577 ) |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 12 Months Ended |
Jul. 03, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | 20. Computation of Earnings Per Share The computation of basic and diluted earnings per share (“EPS”) is as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Basic EPS Net income (loss) $ 15,171 $ 29,073 $ (57,237 ) Weighted average common shares outstanding 18,429 18,472 18,475 Basic EPS $ 0.82 $ 1.57 $ (3.10 ) Diluted EPS Net income (loss) $ 15,171 $ 29,073 $ (57,237 ) Weighted average common shares outstanding 18,429 18,472 18,475 Net potential common share equivalents 439 384 — Adjusted weighted average common shares outstanding 18,868 18,856 18,475 Diluted EPS $ 0.80 $ 1.54 $ (3.10 ) Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 225 497 401 Excluded from the calculation of diluted shares: Unvested stock options that vest upon achievement of certain market conditions 333 333 333 The calculation of earnings per common share is based on the weighted average number of UNIFI’s common shares outstanding for the applicable period. The calculation of diluted earnings per common share presents the effect of all potential dilutive common shares that were outstanding during the respective period, unless the effect of doing so is anti-dilutive. |
Other Operating (Income) Expens
Other Operating (Income) Expense, Net | 12 Months Ended |
Jul. 03, 2022 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Expense, Net | 21. Other Operating (Income) Expense, Net Other operating (income) expense, net primarily consists of (i) gains on foreign currency transactions for fiscal 2022 and losses on foreign currency transactions for fiscal 2021, (ii) severance expenses related to former employees in fiscal 2020 and 2021, and (iii) losses from the |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 03, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 22. 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 (“Kinston”) 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. At this time, UNIFI does not expect any active site remediation will be required but expects that any costs associated with active site remediation, if ever required, would likely be immaterial. Unconditional Obligations UNIFI is a party to unconditional obligations for certain utility and other purchase or service commitments. These commitments are non-cancelable, have remaining terms in excess of one year and qualify as normal purchases. On a fiscal year basis, the minimum payments expected to be made as part of such commitments are as follows: Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2027 Thereafter Unconditional purchase obligations $ 6,359 $ 5,238 $ 5,067 $ 2,445 $ 2,445 $ — Unconditional service obligations 1,911 278 269 269 307 194 Total unconditional obligations $ 8,270 $ 5,516 $ 5,336 $ 2,714 $ 2,752 $ 194 For fiscal 2022, 2021 and 2020, total costs incurred under these commitments consisted of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Costs for unconditional purchase obligations $ 24,236 $ 22,689 $ 21,483 Costs for unconditional service obligations 912 967 2,082 Total $ 25,148 $ 23,656 $ 23,565 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jul. 03, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 23. Related Party Transactions There were no related party receivables as of July 3, 2022 and June 27, 2021. Mr. Kenneth G. Langone, a member of the Board, is a director, shareholder and non-executive Chairman of the Board of Salem Holding Company. UNIFI leases tractors and trailers from Salem Leasing Corporation, a wholly owned subsidiary of Salem Holding Company. In addition to the monthly lease payments, UNIFI also incurs expenses for routine repair and maintenance, fuel, and other expenses. These leases do not contain renewal options, purchase options or escalation clauses with respect to the minimum lease charges. Related party payables for Salem Leasing Corporation consist of the following: July 3, 2022 June 27, 2021 Accounts payable $ 432 $ 469 Operating lease obligations 811 1,133 Finance lease obligations 4,933 6,149 Total related party payables $ 6,176 $ 7,751 The following are the Company’s significant related party transactions for the current and prior two fiscal years and consist of the matters in the table below: For the Fiscal Year Ended Affiliated Entity Transaction Type July 3, 2022 June 27, 2021 June 28, 2020 Salem Leasing Corporation Payments for transportation equipment costs and finance lease debt service $ 4,343 $ 4,122 $ 3,798 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Jul. 03, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | 24. Business Segment Information UNIFI defines operating segments as components of the organization for which discrete financial information is available and operating results are evaluated on a regular basis by UNIFI’s principal executive officer, who is the chief operating decision maker (the “CODM”), in order to assess performance and allocate resources. Characteristics of UNIFI which were relied upon in making the determination of reportable segments include the nature of the products sold, the internal organizational structure, the trade policies in the geographic regions in which UNIFI operates, and the information that is regularly reviewed by the CODM for the purpose of assessing performance and allocating resources. In the fourth quarter of fiscal 2022, UNIFI realigned its operating and reportable segments to correspond with changes to its operating model, management structure, and organizational responsibilities, reflecting the manner in which business performance is evaluated, resources are allocated, and financial statement users can best understand the results of operations. Accordingly, UNIFI is now reporting the Americas Segment, Brazil Segment, and Asia Segment. The Americas Segment represents the combination of the previously reported Polyester Segment, Nylon Segment, and All Other category. There are no changes to the composition of the historical Brazil Segment and Asia Segment. Comparative prior period disclosures have been updated to conform to the new presentation. UNIFI has three reportable segments. • The operations within the Americas Segment exhibit similar long-term economic characteristics and primarily sell into an economic trading zone covered by the USMCA and CAFTA-DR to similar customers utilizing similar methods of distribution. These operations derive revenues primarily from manufacturing synthetic and recycled textile products with sales primarily to yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets principally in North and Central America. The Americas Segment consists of sales and manufacturing operations in the U.S., El Salvador, and Colombia. • The Brazil Segment primarily manufactures and 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 Brazil. 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. The Asia Segment primarily sources synthetic and recycled textile products from third-party suppliers and sells to other yarn manufacturers, knitters, and weavers that produce fabric for the apparel, automotive, home furnishings, industrial, and other end-use markets principally in Asia. The Asia Segment includes sales offices in China, Turkey, and Hong Kong. UNIFI evaluates the operating performance of its segments based upon Segment Profit, which represents segment gross profit (loss) plus segment depreciation expense. This measurement of segment profit or loss best aligns segment reporting with the current assessments and evaluations performed by, and information provided to, the CODM. The accounting policies for the segments are consistent with UNIFI’s accounting policies. Intersegment sales are omitted from segment disclosures, as they are (i) insignificant to UNIFI’s segments and eliminated from consolidated reporting and (ii) excluded from segment evaluations performed by the CODM. However, an intersegment technologies expense charged from the Americas Segment to the Asia Segment is not eliminated from segment results. The technologies expense (i) reflects the sharing of certain manufacturing know-how, processes, and product technical information and design and (ii) is included in the segment evaluations performed by the CODM. Selected financial information is presented below: For the Fiscal Year Ended July 3, 2022 Americas Brazil Asia Total Net sales $ 483,085 $ 126,066 $ 206,607 $ 815,758 Cost of sales 458,617 98,925 177,731 735,273 Gross profit 24,468 27,141 28,876 80,485 Segment depreciation expense 21,153 1,500 — 22,653 Segment Profit $ 45,621 $ 28,641 $ 28,876 $ 103,138 For the Fiscal Year Ended June 27, 2021 Americas Brazil Asia Total Net sales $ 386,779 $ 95,976 $ 184,837 $ 667,592 Cost of sales 350,373 64,281 159,444 574,098 Gross profit 36,406 31,695 25,393 93,494 Segment depreciation expense 21,054 1,315 — 22,369 Segment Profit $ 57,460 $ 33,010 $ 25,393 $ 115,863 For the Fiscal Year Ended June 28, 2020 Americas Brazil Asia Total Net sales $ 380,138 $ 73,339 $ 153,032 $ 606,509 Cost of sales 368,976 62,144 136,349 567,469 Gross profit 11,162 11,195 16,683 39,040 Segment depreciation expense 19,274 1,385 — 20,659 Segment Profit $ 30,436 $ 12,580 $ 16,683 $ 59,699 The reconciliations of segment gross profit to consolidated income (loss) before income taxes are as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Americas $ 24,468 $ 36,406 $ 11,162 Brazil 27,141 31,695 11,195 Asia 28,876 25,393 16,683 Segment gross profit 80,485 93,494 39,040 SG&A expenses 52,489 51,334 43,814 (Benefit) provision for bad debts (445 ) (1,316 ) 1,739 Other operating (income) expense, net (158 ) 4,865 2,308 Operating income (loss) 28,599 38,611 (8,821 ) Interest income (1,524 ) (603 ) (722 ) Interest expense 3,085 3,323 4,779 Equity in (earnings) loss of unconsolidated affiliates (605 ) (739 ) 477 Recovery of non-income taxes, net 815 (9,717 ) — Gain on sale of investment in unconsolidated affiliate — — (2,284 ) Impairment of investment in unconsolidated affiliate — — 45,194 Income (loss) before income taxes $ 26,828 $ 46,347 $ (56,265 ) The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Americas $ 21,153 $ 21,054 $ 19,274 Brazil 1,500 1,315 1,385 Asia — — — Segment depreciation expense 22,653 22,369 20,659 Other depreciation and amortization expense 3,554 3,159 2,994 Depreciation and amortization expense $ 26,207 $ 25,528 $ 23,653 The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Americas $ 29,841 $ 16,053 $ 15,087 Brazil 9,253 3,461 2,332 Asia 236 666 60 Segment capital expenditures 39,330 20,180 17,479 Other capital expenditures 301 998 1,030 Capital expenditures $ 39,631 $ 21,178 $ 18,509 The reconciliations of segment total assets to consolidated total assets are as follows: July 3, 2022 June 27, 2021 Americas $ 379,898 $ 327,445 Brazil 98,731 85,950 Asia 81,322 68,034 Segment total assets 559,951 481,429 Other current assets 5,145 48,587 Other PP&E 17,809 21,175 Other operating lease assets 756 1,116 Other non-current assets 2,985 902 Investments in unconsolidated affiliates 2,072 2,159 Total assets $ 588,718 $ 555,368 Geographic Data For the Fiscal Year Ended Net Sales July 3, 2022 June 27, 2021 June 28, 2020 U.S. $ 430,381 $ 341,897 $ 342,350 China 185,558 171,261 148,923 Brazil 126,066 95,976 73,339 Remaining Foreign Countries 73,753 58,458 41,897 Total $ 815,758 $ 667,592 $ 606,509 Export sales from UNIFI’s U.S. operations to external customers $ 74,589 $ 59,055 $ 64,305 The net sales amounts are based on the operating locations from where the items were produced or distributed. Long-Lived Assets July 3, 2022 June 27, 2021 June 28, 2020 U.S. $ 196,885 $ 191,733 $ 195,874 Brazil 21,927 21,733 10,805 China 2,211 1,919 779 Remaining Foreign Countries 12,932 9,708 9,859 Total $ 233,955 $ 225,093 $ 217,317 Long-lived assets are comprised of PP&E, net; operating lease assets; intangible assets, net; investments in unconsolidated affiliates; and other non-current assets. We have revised amounts reported in previously issued financial statements as of June 27, 2021 presented in this Annual Report on Form 10-K to correct an immaterial error. The error relates to the transposition of the disclosure of reportable segment assets for the Asia segment and the previously-reported Nylon segment. We evaluated the effect of the error to our previously issued financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108 and, based upon quantitative and qualitative factors, determined that the error was not material to the previously issued financial statements and disclosure included in our Annual Reports on Form 10-K for the year ended June 27, 2021, or for comparative period amount (i.e. the amounts as of June 27, 2021) reflected in our quarterly report for the quarterly period ended September 30, 2021. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Jul. 03, 2022 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results (Unaudited) | 25. Quarterly Results (Unaudited) Quarterly financial data and selected highlights are as follows: For the Fiscal Quarter Ended September 26, 2021 December 26, 2021 March 27, 2022 July 3, 2022 Net sales (1) $ 195,992 $ 201,410 $ 200,780 $ 217,576 Gross profit (2) 26,097 16,890 19,144 18,354 Net income (3) 8,680 929 2,066 3,496 Net income per common share: Basic (4) $ 0.47 $ 0.05 $ 0.11 $ 0.19 Diluted (4) $ 0.46 $ 0.05 $ 0.11 $ 0.19 For the Fiscal Quarter Ended September 27, 2020 December 27, 2020 March 28, 2021 June 27, 2021 Net sales (5) $ 141,505 $ 162,776 $ 178,866 $ 184,445 Gross profit (6) 14,561 25,934 25,595 27,404 Net income (7) 3,432 7,464 4,758 13,419 Net income per common share: Basic (4) $ 0.19 $ 0.40 $ 0.26 $ 0.73 Diluted (4) $ 0.18 $ 0.40 $ 0.25 $ 0.70 (1) The fiscal quarter ending July 3, 2022 included an additional week of sales of approximately $8,700. (2) Gross profit for our domestic operations for all fiscal quarters of fiscal 2022 includes adverse pressures from (i) higher raw material costs, (ii) rising input costs, and (iii) the weakening of labor productivity. (3) Net income for our domestic operations for all fiscal quarters of fiscal 2022 includes the adverse pressures on gross profit. (4) Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. (5) Net sales for the fiscal quarters ended September 27, 2020 and December 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. (6) Gross profit for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for the fiscal quarters ended December 27, 2020, March 28, 2021, and June 27, 2021 includes the benefit of exceptional performance by the Brazil Segment primarily due to higher conversion margin and market share capture due to agility and responsiveness during demand recovery in Brazil. (7) Net income for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Net income for the fiscal quarter ended June 27, 2021 includes a recovery of non-income taxes in Brazil due to the favorable conclusion of litigation related to excess social program taxes for multiple prior years. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jul. 03, 2022 | |
Additional Cash Flow Elements And Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 26. Supplemental Cash Flow Information Cash payments for interest and taxes consist of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Interest, net of capitalized interest of $396, $229 and $126, respectively $ 2,921 $ 3,158 $ 4,682 Income taxes, net of refunds 13,045 8,239 6,131 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. Fiscal 2022 includes an income tax payment of $3,749 related to the recovery of non-income taxes described in Note 8, “Other Current Assets.” Non-Cash Investing and Financing Activities As of July 3, 2022, June 27, 2021, and June 28, 2020, $2,456, $2,080, and $630, respectively, were included in accounts payable for unpaid capital expenditures. During fiscal years ended July 3, 2022, June 27, 2021, and June 28, 2020, UNIFI recorded non-cash activity relating to finance leases of $2,493, $740, and $6,301, respectively. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 03, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The fiscal year for Unifi, Inc., its domestic subsidiaries and its subsidiary in El Salvador ends on the Sunday in June or July nearest to June 30 of each year. Unifi, Inc.’s fiscal 2022, 2021, and 2020 ended on July 3, 2022, June 27, 2021, and June 28, 2020, respectively. Unifi, Inc.’s remaining material operating subsidiaries’ fiscal years end on June 30. There have been no significant transactions or events that occurred between Unifi, Inc.’s fiscal year end and such wholly owned subsidiaries’ fiscal year ends. Unifi, Inc.’s fiscal 2022 consisted of 53 weeks, while fiscal 2021 and 2020 each consisted of 52 weeks. |
Current Economic Environment | Current Economic Environment UNIFI evaluated GAAP requirements for the consideration of forecasted financial information, including, but not limited to, the carrying value of long-lived assets in context with the information reasonably available to UNIFI and the unknown future impacts of the economic environment as of July 3, 2022 and through the date of this filing. As a result of these evaluations, there were no impairments or material changes to asset balances that impacted UNIFI's consolidated financial statements as of and for the period ended July 3, 2022. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Unifi, Inc. and its subsidiaries in which it maintains a controlling financial interest. All account balances and transactions between Unifi, Inc. and the subsidiaries which it controls have been eliminated. For transactions with entities accounted for under the equity method, any intercompany profits on amounts still remaining are eliminated. Amounts originating from any deferral of intercompany profits are recorded within the account balance to which the transaction specifically relates (e.g., inventory). Only upon settlement of the intercompany transaction with a third party is the deferral of the intercompany profit recognized by UNIFI. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the period. UNIFI’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results may vary from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are defined as highly liquid, short-term investments having an original maturity of three months or less. Book overdrafts, for which the bank has not advanced cash, if any, are reclassified to accounts payable and reflected as an offset thereto within the accompanying consolidated statements of cash flows. |
Receivables | Receivables Receivables are stated net of expected lifetime credit losses. Allowances are provided for known and potential losses arising from quality claims and for amounts owed by customers. Reserves for quality claims have not been material and are based on historical claim experience and known pending claims and are recorded as a reduction of net sales. The allowance for uncollectible accounts is recorded against operating income and reflects UNIFI’s best estimate of probable losses inherent in its accounts receivable portfolio determined on the basis of historical write off experience, aging of trade receivables, specific allowances for known troubled accounts, and other currently available information. Customer accounts are written off against the allowance for uncollectible accounts when they are no longer deemed to be collectible. |
Inventories | Inventories UNIFI’s inventories are valued at the lower of cost or net realizable value, with the cost for the majority of its inventory determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies are valued using the average cost method. UNIFI’s estimates for net realizable value related to obsolete, slow-moving, or excess inventories are based upon many factors, including historical recovery rates, inventory age, the expected net realizable value of specific products, and current economic conditions. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs for revolving credit arrangements are immaterial. All other debt issuance costs are recorded against long-term debt and amortized as additional interest expense using the effective interest method. In the event of any prepayment of its debt obligations, UNIFI accelerates the recognition of a pro-rata amount of issuance costs. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant, and equipment (“PP&E”) are stated at historical cost less accumulated depreciation. Plant and equipment under finance leases are stated at the present value of minimum lease payments less accumulated amortization. Additions or improvements that substantially extend the useful life of a particular asset are capitalized. Depreciation is calculated primarily utilizing the straight-line method over the following useful lives: Asset categories Useful lives in years Land improvements 5 to 20 Buildings and improvements 10 to 40 Machinery and equipment 2 to 25 Computer, software and office equipment 3 to 7 Internal software development costs 3 Transportation equipment 3 to 15 Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining term of the lease. Assets under finance leases are amortized in a manner consistent with UNIFI’s normal depreciation policy if ownership is transferred by the end of the lease or if there is a bargain purchase option. If such ownership criteria are not met, amortization occurs over the shorter of the lease term or the asset’s useful life. UNIFI capitalizes its costs of developing internal software when the software is used as an integral part of its manufacturing or business processes and the technological feasibility has been established. Internal software costs are amortized over a period of three years and, in accordance with the nature of the project, charged to cost of sales or selling, general, and administrative expenses (“SG&A”). Fully depreciated assets are retained in cost and accumulated depreciation accounts until they are disposed. In the case of disposals, asset costs and related accumulated depreciation amounts are removed from the accounts, and the net amounts, less proceeds from disposal, are included in the determination of net income (loss) and presented within other operating (income) expense, net. Repair and maintenance costs related to PP&E, which do not significantly increase the useful life of an existing asset or do not significantly alter, modify or change the capabilities or production capacity of an existing asset, are expensed as incurred. Interest is capitalized for capital projects requiring a construction period. PP&E and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. Long-lived assets to be disposed of by sale within one year are classified as held for sale and are reported at the lower of their carrying amount or fair value less cost to sell. Depreciation ceases for all assets classified as held for sale. Long-lived assets to be disposed of other than by sale are classified as held for use until they are disposed of and these assets are reported at the lower of their carrying amount or estimated fair value. |
Intangible Assets | Intangible Assets Finite-lived intangible assets, such as customer lists, non-compete agreements, and trademarks are amortized over their estimated useful lives. UNIFI periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets (asset groups) are reviewed for impairment or obsolescence whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. UNIFI has no intangible assets with indefinite lives. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates UNIFI evaluates its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. During fiscal 2020, UNIFI owned a 34% interest in PAL (the “PAL Investment”) and Parkdale, Incorporated (“Parkdale”) owned the majority 66% interest. During March 2020, UNIFI commenced negotiations to sell the PAL Investment to Parkdale. Such negotiations indicated that the fair value of the PAL Investment was less than UNIFI’s carrying value and UNIFI no longer intended to hold the PAL Investment to allow recovery of the carrying value. UNIFI recorded an other-than-temporary impairment of $45,194 to adjust the PAL Investment to fair value. In April 2020, UNIFI and Parkdale finalized negotiations to sell UNIFI’s PAL Investment to Parkdale for $60,000. The transaction closed on April 29, 2020, and UNIFI received $60,000 in cash. |
Derivative Instruments | Derivative Instruments All derivatives are carried on the balance sheet at fair value and are classified according to their asset or liability position and the expected timing of settlement. For cash flow hedges, the effective portion of gains and losses are recorded in accumulated other comprehensive loss until the underlying transactions are recognized in income. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to current period earnings on the same line item as the underlying transaction. Derivatives that are not designated for hedge accounting are marked to market at the end of each period with the changes in fair value recognized in current period earnings. Settlements of any cash flow derivative contracts are classified as cash flows from operating activities. There were no outstanding derivative instruments as of July 3, 2022. |
Fair Value Measurements | Fair Value Measurements The accounting guidance for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). Fair value is based on assumptions that market participants would use when pricing the asset or liability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. UNIFI uses the following to measure fair value for its assets and liabilities. • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either indirectly or directly. • Level 3 – Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. UNIFI believes that there have been no significant changes to its credit risk profile or the interest rates available to UNIFI for debt issuances with similar terms and average maturities, and UNIFI estimates that the fair values of its debt obligations approximate the carrying amounts. Other financial instruments include cash and cash equivalents, receivables, accounts payable, and accrued expenses. The financial statement carrying amounts of these items approximate the fair values due to their short-term nature. There were no transfers into or out of the levels of the fair value hierarchy for any years presented. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different tax years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which these items are expected to reverse. UNIFI reviews deferred tax assets to determine if it is more-likely-than-not they will be realized. If UNIFI determines it is not more-likely-than-not that a deferred tax asset will be realized, it records a valuation allowance to reverse the previously recognized benefit. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. UNIFI recognizes tax benefits related to uncertain tax positions if it believes it is more-likely-than-not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. UNIFI accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Penalties and interest related to income tax expense, if incurred, are included in provision for income taxes. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense for stock awards is based on the grant date fair value and expensed over the applicable vesting period. UNIFI has a policy of issuing new shares to satisfy award exercises and conversions. For awards with a service condition and a graded vesting schedule, UNIFI has elected an accounting policy of recognizing compensation cost on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was, in-substance, multiple awards. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign subsidiaries whose functional currency is other than the U.S. Dollar (“USD”) are translated at exchange rates existing at the respective balance sheet dates. Translation gains and losses are not included in determining net income (loss) but are presented in a separate component of accumulated other comprehensive loss. UNIFI translates the results of its foreign operations at the average exchange rates during the respective periods. Transaction gains and losses are included within other operating (income) expense, net. |
Revenue Recognition | Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which primarily occurs at a point in time, upon either shipment or delivery to the customer. Revenue is recognized over time for contracts in which the associated inventory produced has no alternative use |
Cost of Sales | Cost of Sales The major components of cost of sales are: (i) materials and supplies, (ii) labor and fringe benefits, (iii) utility and overhead costs associated with manufactured products, (iv) shipping, handling and warehousing costs, (v) depreciation expense, and (vi) all other costs related to production or service activities. |
Shipping, Handling and Warehousing Costs | Shipping, Handling, and Warehousing Costs Shipping, handling, and warehousing costs include costs to store goods prior to shipment, prepare goods for shipment and physically move goods to customers. |
Research and Development Costs | Research and Development Costs Research and development costs include employee costs, production costs related to customer samples, operating supplies, consulting fees and other miscellaneous costs. The cost of research and development is charged to expense as incurred. Research and development costs were as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Research and development costs $ 12,103 $ 11,483 $ 11,257 |
Selling, General and Administrative Expenses | Selling, General, and Administrative Expenses The major components of SG&A expenses are: (i) costs of UNIFI’s sales organization, marketing and advertising efforts, and external commissions; (ii) costs of maintaining UNIFI’s general and administrative support functions including executive management, information technology, human resources, legal, and finance; (iii) amortization of intangible assets, and (iv) all other costs required to be classified as SG&A expenses. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in SG&A expenses. UNIFI’s advertising costs include spending for items such as consumer marketing and branding initiatives, promotional items, trade shows, sponsorships, and other programs. Advertising costs were as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Advertising costs $ 4,673 $ 2,919 $ 2,044 |
Self Insurance | Self-Insurance UNIFI self-insures certain risks such as employee healthcare claims and maintains stop-loss coverage. Reserves for incurred but not reported healthcare claims are estimated using historical data, the timeliness of claims processing, medical trends, inflation, and any changes, if applicable, in the nature or type of the plan. |
Contingencies | Contingencies At any point in time, UNIFI may be a party to various pending legal proceedings, claims or environmental actions. Accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and estimable. Any amounts accrued are not discounted. Legal costs such as outside counsel fees and expenses are charged to expense as incurred. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Accounting Policies [Abstract] | |
Useful Lives of Property Plant and Equipment | Depreciation is calculated primarily utilizing the straight-line method over the following useful lives: Asset categories Useful lives in years Land improvements 5 to 20 Buildings and improvements 10 to 40 Machinery and equipment 2 to 25 Computer, software and office equipment 3 to 7 Internal software development costs 3 Transportation equipment 3 to 15 |
Schedule of Research and Development Costs | Research and development costs were as follows For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Research and development costs $ 12,103 $ 11,483 $ 11,257 |
Schedule of Advertising Costs | Advertising costs were as follows For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Advertising costs $ 4,673 $ 2,919 $ 2,044 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
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: Classification Balance Sheet Location July 3, 2022 June 27, 2021 Lease Assets Operating lease assets Operating lease assets $ 8,829 $ 8,772 Finance lease assets Property, plant & equipment, net 7,017 16,037 Total lease assets $ 15,846 $ 24,809 Lease Liabilities Current operating lease liabilities Current operating lease liabilities $ 2,190 $ 1,856 Current finance lease liabilities Current portion of long-term debt 1,726 3,545 Total current lease liabilities $ 3,916 $ 5,401 Non-current operating lease liabilities Non-current operating lease liabilities $ 6,736 $ 7,032 Non-current finance lease liabilities Long-term debt 5,535 4,930 Total non-current lease liabilities $ 12,271 $ 11,962 Total lease liabilities $ 16,187 $ 17,363 |
Schedule of Components of Lease Cost | The following table sets forth the components of UNIFI’s total lease cost for fiscal 2022 and 2021: For The Fiscal Year For The Fiscal Year Lease Cost July 3, 2022 June 27, 2021 Operating lease cost $ 2,766 $ 2,465 Variable lease cost 502 503 Finance lease cost: Amortization of lease assets 1,981 1,998 Interest on lease liabilities 258 365 Short-term lease cost 967 1,007 Total lease cost $ 6,474 $ 6,338 |
Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases | The following table presents supplemental information related to leases: For The Fiscal Year For The Fiscal Year Other Information July 3, 2022 June 27, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used by operating leases $ 2,766 $ 2,465 Financing cash flows used by finance leases $ 3,707 $ 3,646 Non-cash activities: Leased assets obtained in exchange for new operating lease liabilities $ 1,662 $ 2,606 Leased assets obtained in exchange for new finance lease liabilities $ 2,493 $ 740 |
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: Weighted Average Remaining Lease Term and Discount Rate July 3, 2022 June 27, 2021 Weighted average remaining lease term (years): Operating leases 4.1 5.9 Finance leases 4.2 3.8 Weighted average discount rate (percentage): Operating leases 5.0 % 5.1 % Finance leases 3.6 % 3.6 % |
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 July 3, 2022 by fiscal year were: Maturity of Lease Liabilities Finance Leases Operating Leases Fiscal 2023 $ 2,032 $ 2,595 Fiscal 2024 2,032 2,004 Fiscal 2025 1,880 1,498 Fiscal 2026 1,385 1,201 Fiscal 2027 821 971 Fiscal years thereafter 100 1,788 Total minimum lease payments $ 8,250 $ 10,057 Less estimated executory costs (413 ) — Less imputed interest (576 ) (1,131 ) Present value of net minimum lease payments 7,261 8,926 Less current portion of lease obligations (1,726 ) (2,190 ) Long-term portion of lease obligations $ 5,535 $ 6,736 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenues and Product Sales for UNIFI | The following tables present net sales disaggregated by (i) classification of customer type and (ii) REPREVE Fiber sales: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Third-party manufacturer $ 808,655 $ 656,763 $ 598,510 Service 7,103 10,829 7,999 Net sales $ 815,758 $ 667,592 $ 606,509 For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 REPREVE ® $ 293,080 $ 245,832 $ 186,141 All other products and services 522,678 421,760 420,368 Net sales $ 815,758 $ 667,592 $ 606,509 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables, net consists of the following: July 3, 2022 June 27, 2021 Customer receivables $ 99,963 $ 81,921 Allowance for uncollectible accounts (1,498 ) (2,525 ) Reserves for quality claims (860 ) (703 ) Net customer receivables 97,605 78,693 Other receivables 8,960 16,144 Total receivables, net $ 106,565 $ 94,837 |
Allowance for Credit Losses on Financing Receivables | The changes in UNIFI’s allowance for uncollectible accounts and reserves for quality claims were as follows: Allowance for Uncollectible Accounts Reserves for Quality Claims Balance at June 30, 2019 $ (2,338 ) $ (961 ) Charged to costs and expenses (1,739 ) (1,251 ) Translation activity 186 10 Deductions 95 1,274 Balance at June 28, 2020 $ (3,796 ) $ (928 ) Credited (charged) to costs and expenses 1,316 (1,085 ) Translation activity (89 ) (36 ) Deductions 44 1,346 Balance at June 27, 2021 $ (2,525 ) $ (703 ) Credited (charged) to costs and expenses 445 (1,065 ) Translation activity 40 12 Deductions 542 896 Balance at July 3, 2022 $ (1,498 ) $ (860 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories Components | Inventories consists of the following: July 3, 2022 June 27, 2021 Raw materials $ 69,994 $ 54,895 Supplies 11,953 10,692 Work in process 10,358 7,516 Finished goods 84,477 70,525 Gross inventories 176,782 143,628 Net realizable value adjustment (3,487 ) (2,407 ) Total inventories $ 173,295 $ 141,221 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Other Assets Current [Abstract] | |
Schedule of Other Current Assets | Other current assets consists of the following: July 3, 2022 June 27, 2021 Vendor deposits $ 6,910 $ 3,341 Recovery of non-income taxes, net 6,770 3,456 Prepaid expenses and other 3,004 2,753 Value-added taxes receivable 1,987 2,484 Contract assets 285 330 Total other current assets $ 18,956 $ 12,364 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Property Plant And Equipment [Abstract] | |
PP&E Net Components | PP&E, net consists of the following: July 3, 2022 June 27, 2021 Land $ 3,160 $ 3,184 Land improvements 16,443 16,372 Buildings and improvements 164,252 160,122 Assets under finance leases 10,921 22,000 Machinery and equipment 635,699 609,414 Computers, software and office equipment 25,348 24,848 Transportation equipment 10,591 10,461 Construction in progress 20,397 17,834 Gross PP&E 886,811 864,235 Less: accumulated depreciation (666,569 ) (656,576 ) Less: accumulated amortization – finance leases (3,904 ) (5,963 ) Total PP&E, net $ 216,338 $ 201,696 |
Schedule of Capital Leased Assets | Assets under finance leases consists of the following: July 3, 2022 June 27, 2021 Transportation equipment $ 8,276 $ 8,276 Machinery and equipment 2,645 9,897 Building improvements — 3,827 Gross assets under finance leases $ 10,921 $ 22,000 |
Schedule of Depreciation Expense and Repair and Maintenance Expense | Depreciation and amortization expense and repair and maintenance expenses were as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Depreciation and amortization expense $ 24,509 $ 24,215 $ 22,551 Repair and maintenance expenses 20,076 18,118 18,093 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Schedule of Other Non-Current Assets | Other non-current assets consists of the following: July 3, 2022 June 27, 2021 Intangible assets, net $ 2,500 $ 3,978 Grantor trust 2,196 — Investments in unconsolidated affiliates 2,072 2,159 Recovery of non-income taxes, net — 8,063 Other 2,020 425 Total other non-current assets $ 8,788 $ 14,625 |
Components of Intangible Assets, Net | Intangible assets, net consists of the following: July 3, 2022 June 27, 2021 Customer lists $ 5,220 $ 5,220 Non-compete agreement 1,875 1,875 Trademarks 104 411 Total intangible assets, gross 7,199 7,506 Accumulated amortization – customer lists (3,056 ) (2,049 ) Accumulated amortization – non-compete agreement (1,563 ) (1,188 ) Accumulated amortization – trademarks (80 ) (291 ) Total accumulated amortization (4,699 ) (3,528 ) Total intangible assets, net $ 2,500 $ 3,978 |
Amortization Expense for Intangible Assets | Amortization expense for intangible assets consists of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Customer lists $ 1,007 $ 556 $ 326 Non-compete agreement 375 375 375 Trademarks 96 147 154 Total amortization expense $ 1,478 $ 1,078 $ 855 |
Expected Intangible Asset Amortization | The following table presents the expected intangible asset amortization for the next five fiscal years: Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2027 Thereafter Expected amortization $ 1,291 $ 528 $ 108 $ 108 $ 108 $ 357 |
Schedule of Raw Material Purchases under Supply Agreement | UNIFI’s raw material purchases under this supply agreement consist of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 UNFA $ 29,637 $ 18,932 $ 14,583 UNF 1,175 548 1,450 Total $ 30,812 $ 19,480 $ 16,033 |
Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates | Condensed balance sheet and income statement information for UNFs (including reciprocal balances) is presented in the following tables. Fiscal 2020 PAL Investment income statement activity is reported for the ten months of fiscal 2020 ownership ending April 29, 2020. July 3, 2022 June 27, 2021 Current assets $ 10,705 $ 7,931 Non-current assets 605 659 Current liabilities 8,056 3,967 Non-current liabilities — — Shareholders’ equity and capital accounts 3,254 4,623 UNIFI’s portion of undistributed earnings 2,013 2,100 |
Income Statement Information [Member] | |
Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates | July 3, 2022 June 27, 2021 Net sales $ 31,745 $ 19,649 Gross profit 1,928 3,423 Income from operations 148 1,777 Net income 127 1,782 Depreciation and amortization 121 151 Distributions received 750 750 For the Fiscal Year Ended June 28, 2020 PAL UNFs Total Net sales $ 544,006 $ 17,068 $ 561,074 Gross profit 7,592 2,056 9,648 (Loss) income from operations (7,484 ) 410 (7,074 ) Net (loss) income (2,823 ) 497 (2,326 ) Depreciation and amortization 33,455 135 33,590 Cash received by PAL under cotton rebate program 11,186 — 11,186 Earnings recognized by PAL for cotton rebate program 9,697 — 9,697 Distributions received 10,437 — 10,437 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Other Liabilities Current [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consists of the following: July 3, 2022 June 27, 2021 Payroll and fringe benefits $ 9,414 $ 10,204 Incentive compensation 3,916 12,356 Utilities 2,287 2,347 Deferred revenue 1,694 2,691 Interest rate swaps — 1,234 Property taxes and other 2,495 2,806 Total other current liabilities $ 19,806 $ 31,638 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
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 July 3, 2022 July 3, 2022 June 27, 2021 ABL Revolver December 2023 3.2% $ 41,300 $ — ABL Term Loan December 2023 3.2% 65,000 77,500 Finance lease obligations (1) 3.6% 7,261 8,475 Construction financing (2) 1.9% 729 882 Total debt 114,290 86,857 Current ABL Term Loan (10,000 ) (12,500 ) Current portion of finance lease obligations (1,726 ) (3,545 ) Unamortized debt issuance costs (255 ) (476 ) Total long-term debt $ 102,309 $ 70,336 ( 1 ) Scheduled maturity dates for finance lease obligations range from March 2025 to November 2027. ( 2 ) Refer to the discussion below under the subheading “ Construction Financing |
Scheduled Maturities of Outstanding Debt Obligations | The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the following five fiscal years and thereafter. Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2027 Thereafter ABL Revolver $ — $ 41,300 $ — $ — $ — $ — ABL Term Loan 10,000 55,000 — — — — Finance lease obligations 1,726 1,787 1,699 1,255 732 62 Total (1) $ 11,726 $ 98,087 $ 1,699 $ 1,255 $ 732 $ 62 (1) Total reported excludes $729 for construction financing, described above. |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities Components | Other long-term liabilities consists of the following: July 3, 2022 June 27, 2021 Nonqualified deferred compensation plan obligation $ 1,982 $ 2,090 Uncertain tax positions 1,575 3,045 Other 892 2,337 Total other long-term liabilities $ 4,449 $ 7,472 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income (loss) before Income Taxes | The components of income (loss) before income taxes consist of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 U.S. $ (18,364 ) $ (12,463 ) $ (74,905 ) Foreign 45,192 58,810 18,640 Income (loss) before income taxes $ 26,828 $ 46,347 $ (56,265 ) |
Schedule of Provision for Income Taxes | Provision for income taxes consists of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Current: Federal $ (1,163 ) $ (577 ) $ 282 State 2 25 (118 ) Foreign 15,935 12,739 4,819 Total current tax expense 14,774 12,187 4,983 Deferred: Federal (630 ) (1,564 ) (3,783 ) State 33 131 116 Foreign (2,520 ) 6,520 (344 ) Total deferred tax expense (3,117 ) 5,087 (4,011 ) Provision for income taxes $ 11,657 $ 17,274 $ 972 |
Reconciliation from Federal Statutory Tax Rate to Effective Tax Rate | Reconciliation from the federal statutory tax rate to the effective tax rate is as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Federal statutory tax rate 21.0 % 21.0 % 21.0 % Change in valuation allowance 12.6 5.0 0.6 Foreign income taxed at different rates 10.7 9.0 (1.2 ) Tax expense on unremitted foreign earnings 5.5 7.0 (0.9 ) Repatriation of foreign earnings and withholding taxes 3.9 1.8 (2.0 ) Change in uncertain tax positions 2.4 0.5 (0.3 ) Nondeductible compensation 2.1 1.4 (0.8 ) U.S. tax on GILTI 0.2 3.9 (5.0 ) Nontaxable income (10.2 ) (2.4 ) 1.1 Research and other business credits (4.0 ) (3.7 ) 2.0 State income taxes, net of federal tax benefit (1.3 ) (0.2 ) 2.6 Foreign tax credits (0.5 ) (5.4 ) 0.9 Deemed repatriation of foreign earnings under Subpart F — 1.5 — Domestic production activities deduction — 0.6 — Rate benefit of U.S. federal NOL carryback — (2.8 ) — Valuation allowance related to loss on sale of investment in PAL — — (19.3 ) Nondeductible expenses and other 1.1 0.1 (0.4 ) Effective tax rate 43.5 % 37.3 % (1.7 )% |
Deferred Tax Assets and Liabilities | The significant components of UNIFI’s deferred tax assets and liabilities consist of the following: July 3, 2022 June 27, 2021 Deferred tax assets: Capital loss carryforwards $ 16,318 $ 17,429 Tax credits 12,079 18,711 Research and development costs 7,409 6,934 NOL carryforwards 6,603 3,043 Accrued compensation 2,106 4,056 Other items 4,877 4,815 Total gross deferred tax assets 49,392 54,988 Valuation allowance (31,667 ) (36,980 ) Net deferred tax assets 17,725 18,008 Deferred tax liabilities: PP&E (14,952 ) (16,045 ) Unremitted earnings (5,253 ) (3,769 ) Recovery of non-income taxes 132 (3,664 ) Other (138 ) (8 ) Total deferred tax liabilities (20,211 ) (23,486 ) Net deferred tax liabilities $ (2,486 ) $ (5,478 ) |
Schedule of Components of Deferred Tax Valuation Allowance | Components of UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Capital loss carryforwards $ (16,318 ) $ (17,429 ) $ (13,791 ) Tax credits (10,779 ) (17,215 ) (17,111 ) NOL carryforwards (4,570 ) (2,336 ) (2,542 ) Investments, including unconsolidated affiliates — — (3,995 ) Total deferred tax valuation allowance $ (31,667 ) $ (36,980 ) $ (37,439 ) |
Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits | A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Balance at beginning of year $ 2,590 $ 1,218 $ 1,083 Gross increases (decreases) related to current period tax positions 408 (24 ) 98 Gross (decreases) increases related to tax positions in prior periods (89 ) 1,396 37 Gross decreases related to settlements with tax authorities — — — Gross decreases related to lapse of applicable statute of limitations — — — Balance at end of year $ 2,909 $ 2,590 $ 1,218 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Stockholders Equity Note [Abstract] | |
Repurchases and Retirements of Common Stock | The following table summarizes UNIFI’s repurchases and retirements of its common stock under the 2018 SRP for the fiscal periods noted: Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs Fiscal 2019 — $ — $ 50,000 Fiscal 2020 84 $ 23.72 $ 48,008 Fiscal 2021 — $ — $ 48,008 Fiscal 2022 617 $ 14.84 $ 38,859 Total 701 $ 15.90 $ 38,859 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Summary of Number of Securities Remaining Available for Future Issuance | The following table provides information as of July 3, 2022 with respect to the number of securities remaining available for future issuance under the 2020 Plan: Authorized under the 2020 Plan 850 Plus: Awards expired, forfeited or otherwise terminated unexercised 1 Less: Awards granted to employees (209 ) Less: Awards granted to non-employee directors (41 ) Available for issuance under the 2020 Plan 601 |
Stock Option Valuation Assumptions | The Black-Scholes model used the following weighted average assumptions for the above awards: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Expected term (years) — 5.5 5.5 Risk-free interest rate — 0.4 % 0.7 % Volatility — 49.0 % 43.2 % Dividend yield — — — |
Summary of Stock Option Activity | A summary of stock option activity for fiscal 2022 is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 27, 2021 1,114 $ 16.82 Granted — $ — Exercised (10 ) $ 11.09 Cancelled or forfeited (122 ) $ 25.45 Expired — $ — Outstanding at July 3, 2022 982 $ 15.81 7.2 $ 1,296 Vested and expected to vest as of July 3, 2022 982 $ 15.81 7.2 $ 1,296 Exercisable at July 3, 2022 380 $ 20.15 6.1 $ 285 |
Summary of RSU, VSU and PSU Activity | A summary of RSU, VSU and PSU activity for fiscal 2022 is as follows: Non-vested Weighted Average Grant Date Fair Value Vested Total Weighted Average Grant Date Fair Value Outstanding at June 27, 2021 162 $ 16.75 241 403 $ 20.82 Granted 166 $ 23.12 — 166 $ 23.12 Vested (92 ) $ 18.78 92 — $ 18.78 Converted — $ — (88 ) (88 ) $ 19.80 Cancelled or forfeited (2 ) $ 20.39 — (2 ) $ 20.39 Outstanding at July 3, 2022 234 $ 20.38 245 479 $ 21.80 |
Stock Based Compensation Total Cost Charged Against Income | The total cost charged against income related to all stock-based compensation arrangements was as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Stock options $ 928 $ 1,047 $ 1,265 RSUs and VSUs 2,253 2,015 2,245 Total compensation cost $ 3,181 $ 3,062 $ 3,510 |
Black Scholes Model | |
Stock Option Valuation Assumptions | A summary of UNIFI’s stock options granted to key employees and valued under the Black-Scholes model is as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Quantity — 155 143 Service Period (years) — 3.0 3.0 Weighted Average Exercise Price $ — $ 15.64 $ 19.95 Weighted Average Grant Date Fair Value $ — $ 6.75 $ 7.33 |
Defined Contribution Plans (Tab
Defined Contribution Plans (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Employer Matching Contribution Expense Related to 401(k) Plan | The following table presents the employer matching contribution expense related to the 401(k) Plan: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Matching contribution expense $ 3,215 $ 2,578 $ 2,491 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Attributes for the Historical Swaps | The below table presents the fair value attributes for the historical swaps as of June 27, 2021. As of June 27, 2021 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other current liabilities Level 2 $ 334 Swap B USD $ 30,000 Other current liabilities Level 2 $ 500 Swap C USD $ 25,000 Other current liabilities Level 2 $ 400 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
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, net of tax (19,119 ) (1,458 ) (20,577 ) Balance at June 28, 2020 $ (61,848 ) $ (1,958 ) $ (63,806 ) Other comprehensive income, net of tax 9,368 1,006 10,374 Balance at June 27, 2021 $ (52,480 ) $ (952 ) $ (53,432 ) Other comprehensive (loss) income, net of tax (7,125 ) 952 (6,173 ) Balance at July 3, 2022 $ (59,605 ) $ — $ (59,605 ) |
Summary of Other Comprehensive Income (Loss) | A summary of other comprehensive (loss) income for fiscal 2022, 2021, and 2020 is provided as follows: Fiscal 2022 Fiscal 2021 Fiscal 2020 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Other comprehensive (loss) income: Foreign currency translation adjustments $ (7,125 ) $ — $ (7,125 ) $ 9,368 $ — $ 9,368 $ (21,027 ) $ — $ (21,027 ) Foreign currency translation adjustments for an unconsolidated affiliate — — — — — — 1,908 — 1,908 Changes in interest rate swaps, net of reclassification adjustments 1,234 (282 ) 952 1,316 (310 ) 1,006 (1,904 ) 446 (1,458 ) Other comprehensive (loss) income, net $ (5,891 ) $ (282 ) $ (6,173 ) $ 10,684 $ (310 ) $ 10,374 $ (21,023 ) $ 446 $ (20,577 ) |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) Per Share | The computation of basic and diluted earnings per share (“EPS”) is as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Basic EPS Net income (loss) $ 15,171 $ 29,073 $ (57,237 ) Weighted average common shares outstanding 18,429 18,472 18,475 Basic EPS $ 0.82 $ 1.57 $ (3.10 ) Diluted EPS Net income (loss) $ 15,171 $ 29,073 $ (57,237 ) Weighted average common shares outstanding 18,429 18,472 18,475 Net potential common share equivalents 439 384 — Adjusted weighted average common shares outstanding 18,868 18,856 18,475 Diluted EPS $ 0.80 $ 1.54 $ (3.10 ) Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 225 497 401 Excluded from the calculation of diluted shares: Unvested stock options that vest upon achievement of certain market conditions 333 333 333 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Unconditional Purchase Obligations | On a fiscal year basis, the minimum payments expected to be made as part of such commitments are as follows: Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026 Fiscal 2027 Thereafter Unconditional purchase obligations $ 6,359 $ 5,238 $ 5,067 $ 2,445 $ 2,445 $ — Unconditional service obligations 1,911 278 269 269 307 194 Total unconditional obligations $ 8,270 $ 5,516 $ 5,336 $ 2,714 $ 2,752 $ 194 |
Schedule of Costs Incurred Under Purchases and Services Obligations | For fiscal 2022, 2021 and 2020, total costs incurred under these commitments consisted of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Costs for unconditional purchase obligations $ 24,236 $ 22,689 $ 21,483 Costs for unconditional service obligations 912 967 2,082 Total $ 25,148 $ 23,656 $ 23,565 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Payables | Related party payables for Salem Leasing Corporation consist of the following: July 3, 2022 June 27, 2021 Accounts payable $ 432 $ 469 Operating lease obligations 811 1,133 Finance lease obligations 4,933 6,149 Total related party payables $ 6,176 $ 7,751 |
Schedule of Related Party Transactions | The following are the Company’s significant related party transactions for the current and prior two fiscal years and consist of the matters in the table below: For the Fiscal Year Ended Affiliated Entity Transaction Type July 3, 2022 June 27, 2021 June 28, 2020 Salem Leasing Corporation Payments for transportation equipment costs and finance lease debt service $ 4,343 $ 4,122 $ 3,798 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Segment Reporting [Abstract] | |
Selected Financial Information for Polyester, Nylon, International and Other Segments | Selected financial information is presented below: For the Fiscal Year Ended July 3, 2022 Americas Brazil Asia Total Net sales $ 483,085 $ 126,066 $ 206,607 $ 815,758 Cost of sales 458,617 98,925 177,731 735,273 Gross profit 24,468 27,141 28,876 80,485 Segment depreciation expense 21,153 1,500 — 22,653 Segment Profit $ 45,621 $ 28,641 $ 28,876 $ 103,138 For the Fiscal Year Ended June 27, 2021 Americas Brazil Asia Total Net sales $ 386,779 $ 95,976 $ 184,837 $ 667,592 Cost of sales 350,373 64,281 159,444 574,098 Gross profit 36,406 31,695 25,393 93,494 Segment depreciation expense 21,054 1,315 — 22,369 Segment Profit $ 57,460 $ 33,010 $ 25,393 $ 115,863 For the Fiscal Year Ended June 28, 2020 Americas Brazil Asia Total Net sales $ 380,138 $ 73,339 $ 153,032 $ 606,509 Cost of sales 368,976 62,144 136,349 567,469 Gross profit 11,162 11,195 16,683 39,040 Segment depreciation expense 19,274 1,385 — 20,659 Segment Profit $ 30,436 $ 12,580 $ 16,683 $ 59,699 |
Reconciliations of Segment Gross Profit to Consolidated Income (loss) Before Income Taxes | The reconciliations of segment gross profit to consolidated income (loss) before income taxes are as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Americas $ 24,468 $ 36,406 $ 11,162 Brazil 27,141 31,695 11,195 Asia 28,876 25,393 16,683 Segment gross profit 80,485 93,494 39,040 SG&A expenses 52,489 51,334 43,814 (Benefit) provision for bad debts (445 ) (1,316 ) 1,739 Other operating (income) expense, net (158 ) 4,865 2,308 Operating income (loss) 28,599 38,611 (8,821 ) Interest income (1,524 ) (603 ) (722 ) Interest expense 3,085 3,323 4,779 Equity in (earnings) loss of unconsolidated affiliates (605 ) (739 ) 477 Recovery of non-income taxes, net 815 (9,717 ) — Gain on sale of investment in unconsolidated affiliate — — (2,284 ) Impairment of investment in unconsolidated affiliate — — 45,194 Income (loss) before income taxes $ 26,828 $ 46,347 $ (56,265 ) |
Reconciliation of Segment Depreciation and Amortization Expense to Consolidated Depreciation and Amortization Expense | The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Americas $ 21,153 $ 21,054 $ 19,274 Brazil 1,500 1,315 1,385 Asia — — — Segment depreciation expense 22,653 22,369 20,659 Other depreciation and amortization expense 3,554 3,159 2,994 Depreciation and amortization expense $ 26,207 $ 25,528 $ 23,653 |
Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures | The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Americas $ 29,841 $ 16,053 $ 15,087 Brazil 9,253 3,461 2,332 Asia 236 666 60 Segment capital expenditures 39,330 20,180 17,479 Other capital expenditures 301 998 1,030 Capital expenditures $ 39,631 $ 21,178 $ 18,509 |
Reconciliation of Segment Total Assets to Consolidated Total Assets | The reconciliations of segment total assets to consolidated total assets are as follows: July 3, 2022 June 27, 2021 Americas $ 379,898 $ 327,445 Brazil 98,731 85,950 Asia 81,322 68,034 Segment total assets 559,951 481,429 Other current assets 5,145 48,587 Other PP&E 17,809 21,175 Other operating lease assets 756 1,116 Other non-current assets 2,985 902 Investments in unconsolidated affiliates 2,072 2,159 Total assets $ 588,718 $ 555,368 |
Geographic Information for Net Sales | For the Fiscal Year Ended Net Sales July 3, 2022 June 27, 2021 June 28, 2020 U.S. $ 430,381 $ 341,897 $ 342,350 China 185,558 171,261 148,923 Brazil 126,066 95,976 73,339 Remaining Foreign Countries 73,753 58,458 41,897 Total $ 815,758 $ 667,592 $ 606,509 Export sales from UNIFI’s U.S. operations to external customers $ 74,589 $ 59,055 $ 64,305 |
Geographic Information for Long-lived Assets | Long-Lived Assets July 3, 2022 June 27, 2021 June 28, 2020 U.S. $ 196,885 $ 191,733 $ 195,874 Brazil 21,927 21,733 10,805 China 2,211 1,919 779 Remaining Foreign Countries 12,932 9,708 9,859 Total $ 233,955 $ 225,093 $ 217,317 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | Quarterly financial data and selected highlights are as follows: For the Fiscal Quarter Ended September 26, 2021 December 26, 2021 March 27, 2022 July 3, 2022 Net sales (1) $ 195,992 $ 201,410 $ 200,780 $ 217,576 Gross profit (2) 26,097 16,890 19,144 18,354 Net income (3) 8,680 929 2,066 3,496 Net income per common share: Basic (4) $ 0.47 $ 0.05 $ 0.11 $ 0.19 Diluted (4) $ 0.46 $ 0.05 $ 0.11 $ 0.19 For the Fiscal Quarter Ended September 27, 2020 December 27, 2020 March 28, 2021 June 27, 2021 Net sales (5) $ 141,505 $ 162,776 $ 178,866 $ 184,445 Gross profit (6) 14,561 25,934 25,595 27,404 Net income (7) 3,432 7,464 4,758 13,419 Net income per common share: Basic (4) $ 0.19 $ 0.40 $ 0.26 $ 0.73 Diluted (4) $ 0.18 $ 0.40 $ 0.25 $ 0.70 (1) The fiscal quarter ending July 3, 2022 included an additional week of sales of approximately $8,700. (2) Gross profit for our domestic operations for all fiscal quarters of fiscal 2022 includes adverse pressures from (i) higher raw material costs, (ii) rising input costs, and (iii) the weakening of labor productivity. (3) Net income for our domestic operations for all fiscal quarters of fiscal 2022 includes the adverse pressures on gross profit. (4) Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. (5) Net sales for the fiscal quarters ended September 27, 2020 and December 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. (6) Gross profit for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for the fiscal quarters ended December 27, 2020, March 28, 2021, and June 27, 2021 includes the benefit of exceptional performance by the Brazil Segment primarily due to higher conversion margin and market share capture due to agility and responsiveness during demand recovery in Brazil. (7) Net income for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Net income for the fiscal quarter ended June 27, 2021 includes a recovery of non-income taxes in Brazil due to the favorable conclusion of litigation related to excess social program taxes for multiple prior years. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jul. 03, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Payments for Interest and Taxes | Cash payments for interest and taxes consist of the following: For the Fiscal Year Ended July 3, 2022 June 27, 2021 June 28, 2020 Interest, net of capitalized interest of $396, $229 and $126, respectively $ 2,921 $ 3,158 $ 4,682 Income taxes, net of refunds 13,045 8,239 6,131 |
Background - Additional Informa
Background - Additional Information (Details) | Jul. 03, 2022 Entity |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of countries in which entity operates | 4 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Jul. 03, 2022 | |
Land Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 5 years |
Land Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 20 years |
Building and Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 10 years |
Building and Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 25 years |
Computers, Software and Office Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 3 years |
Computers, Software and Office Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 7 years |
Internal Software Development Costs [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 3 years |
Transportation Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 3 years |
Transportation Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 15 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Apr. 29, 2020 | Mar. 29, 2020 | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Accounting Policies [Line Items] | |||||
Indefinite-Lived intangible assets | $ 0 | ||||
Derivative instruments outstanding | 0 | ||||
Fair value assets and liabilities amount transfers into or out of the levels | $ 0 | $ 0 | $ 0 | ||
Parkdale, Incorporated [Member] | |||||
Accounting Policies [Line Items] | |||||
Equity method investment, ownership percentage | 66% | ||||
Parkdale America LLC [Member] | |||||
Accounting Policies [Line Items] | |||||
Equity method investment, ownership percentage | 34% | 34% | |||
Equity method investment, other than temporary impairment | $ 45,194,000 | $ 45,194,000 | |||
Proceeds from sale of equity method investments | $ 60,000,000 | ||||
Internal Software Development Costs [Member] | |||||
Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Research and Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Research And Development Expense [Abstract] | |||
Research and development costs | $ 12,103 | $ 11,483 | $ 11,257 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 4,673 | $ 2,919 | $ 2,044 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Jul. 03, 2022 | |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee operating and finance lease term of contract | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee operating and finance lease term of contract | 15 years |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Location and Values of Company's Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Lessee Lease Description [Line Items] | ||
Operating lease assets | $ 8,829 | $ 8,772 |
Total lease assets | 15,846 | 24,809 |
Current operating lease liabilities | 2,190 | 1,856 |
Current finance lease liabilities | 1,726 | |
Total current lease liabilities | 3,916 | 5,401 |
Non-current operating lease liabilities | 6,736 | 7,032 |
Non-current finance lease liabilities | 5,535 | |
Total non-current lease liabilities | 12,271 | 11,962 |
Total lease liabilities | 16,187 | 17,363 |
Property, Plant and Equipment | ||
Lessee Lease Description [Line Items] | ||
Finance lease assets | 7,017 | 16,037 |
Current Portion Of Long Term Debt | ||
Lessee Lease Description [Line Items] | ||
Current finance lease liabilities | 1,726 | 3,545 |
Long-term Debt | ||
Lessee Lease Description [Line Items] | ||
Non-current finance lease liabilities | $ 5,535 | $ 4,930 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 03, 2022 | Jun. 27, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,766 | $ 2,465 |
Variable lease cost | 502 | 503 |
Finance lease cost: | ||
Amortization of lease assets | 1,981 | 1,998 |
Interest on lease liabilities | 258 | 365 |
Short-term lease cost | 967 | 1,007 |
Total lease cost | $ 6,474 | $ 6,338 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Leases [Abstract] | |||
Operating cash flows used by operating leases | $ 2,766 | $ 2,465 | |
Financing cash flows used by finance leases | 3,707 | 3,646 | $ 6,035 |
Non-cash activities: | |||
Leased assets obtained in exchange for new operating lease liabilities | 1,662 | 2,606 | |
Leased assets obtained in exchange for new finance lease liabilities | $ 2,493 | $ 740 | $ 6,301 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Discount Rate for Operating Leases and Finance Leases (Details) | Jul. 03, 2022 | Jun. 27, 2021 |
Leases [Abstract] | ||
Operating leases | 4 years 1 month 6 days | 5 years 10 months 24 days |
Finance leases | 4 years 2 months 12 days | 3 years 9 months 18 days |
Operating leases | 5% | 5.10% |
Finance leases | 3.60% | 3.60% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Finance Leases and Operating Leases (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 | |
Finance Leases | |||
Fiscal 2023 | $ 2,032 | ||
Fiscal 2024 | 2,032 | ||
Fiscal 2025 | 1,880 | ||
Fiscal 2026 | 1,385 | ||
Fiscal 2027 | 821 | ||
Fiscal years thereafter | 100 | ||
Total minimum lease payments | 8,250 | ||
Less estimated executory costs | (413) | ||
Less imputed interest | (576) | ||
Present value of net minimum lease payments | [1] | 7,261 | $ 8,475 |
Less current portion of lease obligations | (1,726) | ||
Non-current finance lease liabilities | 5,535 | ||
Operating Leases | |||
Fiscal 2023 | 2,595 | ||
Fiscal 2024 | 2,004 | ||
Fiscal 2025 | 1,498 | ||
Fiscal 2026 | 1,201 | ||
Fiscal 2027 | 971 | ||
Fiscal years thereafter | 1,788 | ||
Total minimum lease payments | 10,057 | ||
Less imputed interest | (1,131) | ||
Present value of net minimum lease payments | 8,926 | ||
Less current portion of lease obligations | (2,190) | (1,856) | |
Non-current operating lease liabilities | $ 6,736 | $ 7,032 | |
[1]Scheduled maturity dates for finance lease obligations range from March 2025 to November 2027 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues and Product Sales for UNIFI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 03, 2022 | [1] | Mar. 27, 2022 | [1] | Dec. 26, 2021 | [1] | Sep. 26, 2021 | [1] | Jun. 27, 2021 | [2] | Mar. 28, 2021 | [2] | Dec. 27, 2020 | [2] | Sep. 27, 2020 | [2] | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Net sales | $ 217,576 | $ 200,780 | $ 201,410 | $ 195,992 | $ 184,445 | $ 178,866 | $ 162,776 | $ 141,505 | $ 815,758 | $ 667,592 | $ 606,509 | ||||||||
Third-Party Manufacturer [Member] | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Net sales | 808,655 | 656,763 | 598,510 | ||||||||||||||||
Service [Member] | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Net sales | 7,103 | 10,829 | 7,999 | ||||||||||||||||
REPREVE Fiber [Member] | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Net sales | 293,080 | 245,832 | 186,141 | ||||||||||||||||
All Other Products and Services [Member] | |||||||||||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||||||||||
Net sales | $ 522,678 | $ 421,760 | $ 420,368 | ||||||||||||||||
[1] The fiscal quarter ending July 3, 2022 included an additional week of sales of approximately $8,700. Net sales for the fiscal quarters ended September 27, 2020 and December 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. |
Receivables, Net - Schedule of
Receivables, Net - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Receivables [Abstract] | ||
Customer receivables | $ 99,963 | $ 81,921 |
Allowance for uncollectible accounts | (1,498) | (2,525) |
Reserves for quality claims | (860) | (703) |
Net customer receivables | 97,605 | 78,693 |
Other receivables | 8,960 | 16,144 |
Total receivables, net | $ 106,565 | $ 94,837 |
Receivables, Net - Additional I
Receivables, Net - Additional Information (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Other receivables | $ 8,960 | $ 16,144 |
Banker's Acceptance Notes [Member] | Asia [Member] | ||
Other receivables | $ 7,849 | $ 13,391 |
Receivables, Net - Allowance fo
Receivables, Net - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Allowance for Doubtful Accounts [Member] | |||
Balance at beginning of period | $ (2,525) | $ (3,796) | $ (2,338) |
Credited (charged) to costs and expenses | 445 | 1,316 | (1,739) |
Translation activity | 40 | (89) | 186 |
Deductions | 542 | 44 | 95 |
Balance at end of period | (1,498) | (2,525) | (3,796) |
Reserve For Quality Claims [Member] | |||
Balance at beginning of period | (703) | (928) | (961) |
Credited (charged) to costs and expenses | (1,065) | (1,085) | (1,251) |
Translation activity | 12 | (36) | 10 |
Deductions | 896 | 1,346 | 1,274 |
Balance at end of period | $ (860) | $ (703) | $ (928) |
Inventories - Inventories Compo
Inventories - Inventories Components (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 69,994 | $ 54,895 |
Supplies | 11,953 | 10,692 |
Work in process | 10,358 | 7,516 |
Finished goods | 84,477 | 70,525 |
Gross inventories | 176,782 | 143,628 |
Net realizable value adjustment | (3,487) | (2,407) |
Total inventories | $ 173,295 | $ 141,221 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Inventory Disclosure [Abstract] | ||
Foreign inventory valued at average cost | $ 53,793 | $ 58,468 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Other Assets Current [Abstract] | ||
Vendor deposits | $ 6,910 | $ 3,341 |
Recovery of non-income taxes, net | 6,770 | 3,456 |
Prepaid expenses and other | 3,004 | 2,753 |
Value-added taxes receivable | 1,987 | 2,484 |
Contract assets | 285 | 330 |
Total other current assets | $ 18,956 | $ 12,364 |
Other Current Assets - Addition
Other Current Assets - Additional Information (Details) - UNIFI [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 03, 2022 | Jun. 27, 2021 | |
Recovery related to current and non-current assets | $ 11,519 | |
Recovery related to net sales | 10,577 | |
Recovery related to non-income taxes | $ 815 | 9,717 |
Recovery related to taxes and interests | $ 942 | |
Claim recovery period | 12 months |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - PP&E Net Components (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Property Plant And Equipment [Line Items] | ||
Gross PP&E | $ 886,811 | $ 864,235 |
Less: accumulated depreciation | (666,569) | (656,576) |
Less: accumulated amortization – finance leases | (3,904) | (5,963) |
Total PP&E, net | 216,338 | 201,696 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 3,160 | 3,184 |
Land Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 16,443 | 16,372 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 164,252 | 160,122 |
Assets under Finance Leases [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 10,921 | 22,000 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 635,699 | 609,414 |
Computers, Software and Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 25,348 | 24,848 |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 10,591 | 10,461 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | $ 20,397 | $ 17,834 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Schedule of Capital Leased Assets (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Property Plant And Equipment [Line Items] | ||
Gross assets under finance leases | $ 10,921 | $ 22,000 |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross assets under finance leases | 8,276 | 8,276 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross assets under finance leases | $ 2,645 | 9,897 |
Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross assets under finance leases | $ 3,827 |
Property, Plant and Equipment_5
Property, Plant and Equipment, Net - Schedule of Depreciation Expense and Repair and Maintenance Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense | $ 24,509 | $ 24,215 | $ 22,551 |
Repair and maintenance expenses | $ 20,076 | $ 18,118 | $ 18,093 |
Other Non Current Assets - Sche
Other Non Current Assets - Schedule of Other Non-Current Assets (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Other Assets Non Current [Abstract] | ||
Intangible assets, net | $ 2,500 | $ 3,978 |
Grantor trust | 2,196 | 0 |
Investments in unconsolidated affiliates | 2,072 | 2,159 |
Recovery of non-income taxes, net | 8,063 | |
Other | 2,020 | 425 |
Total other non-current assets | $ 8,788 | $ 14,625 |
Other Non-Current Assets - Addi
Other Non-Current Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 03, 2022 | Jun. 27, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Investment assets held by the trust | $ 2,196 | $ 0 |
Losses on investments held by the trust | $ 48 | |
Trademarks [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 3 years | |
UNIFI [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Recovery related to non-income taxes | $ 815 | $ 9,717 |
Other Non-Current Assets - Comp
Other Non-Current Assets - Components of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 7,199 | $ 7,506 |
Intangible assets, accumulated amortization | (4,699) | (3,528) |
Total intangible assets, net | 2,500 | 3,978 |
Customer Lists [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 5,220 | 5,220 |
Intangible assets, accumulated amortization | (3,056) | (2,049) |
Non-compete Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 1,875 | 1,875 |
Intangible assets, accumulated amortization | (1,563) | (1,188) |
Trademarks [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 104 | 411 |
Intangible assets, accumulated amortization | $ (80) | $ (291) |
Other Non-Current Assets - Amor
Other Non-Current Assets - Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 1,478 | $ 1,078 | $ 855 |
Customer Lists [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | 1,007 | 556 | 326 |
Non-compete Agreements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | 375 | 375 | 375 |
Trademarks [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 96 | $ 147 | $ 154 |
Other Non-Current Assets - Expe
Other Non-Current Assets - Expected Intangible Asset Amortization (Details) $ in Thousands | Jul. 03, 2022 USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Fiscal 2023 | $ 1,291 |
Fiscal 2024 | 528 |
Fiscal 2025 | 108 |
Fiscal 2026 | 108 |
Fiscal 2027 | 108 |
Thereafter | $ 357 |
Other Non-Current Assets - Inve
Other Non-Current Assets - Investments in Unconsolidated Affiliates (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Apr. 29, 2020 USD ($) | Mar. 29, 2020 USD ($) | Jun. 28, 2020 USD ($) | Jul. 03, 2022 USD ($) | Jun. 27, 2021 USD ($) | Oct. 31, 2009 | Sep. 30, 2000 | |
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 2,072 | $ 2,159 | |||||
UNF [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 50% | ||||||
UNF America [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 50% | ||||||
UNF and UNF America [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Purchase commitment, remaining minimum amount committed | 896 | ||||||
Accounts payable, related parties | $ 5,565 | $ 2,955 | |||||
Percentage of current and total assets and total liabilities counted for by equity method investments | 3% | ||||||
Equity method investments | $ 2,072 | ||||||
Parkdale America LLC [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 34% | 34% | |||||
Equity method investment, other than temporary impairment | $ 45,194 | $ 45,194 | |||||
Proceeds from sale of equity method investments | $ 60,000 | ||||||
Number of manufacturing facilities | 10 | ||||||
Parkdale America LLC [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Number of major customers | 5 | ||||||
Parkdale America LLC [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Concentration risk, percentage | 69% | ||||||
Parkdale America LLC [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Concentration risk, percentage | 68% |
Other Non-Current Assets - Sche
Other Non-Current Assets - Schedule of Raw Material Purchases under Supply Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
UNF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Raw material purchases under supply agreement | $ 1,175 | $ 548 | $ 1,450 |
UNF America [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Raw material purchases under supply agreement | 29,637 | 18,932 | 14,583 |
UNF and UNF America [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Raw material purchases under supply agreement | $ 30,812 | $ 19,480 | $ 16,033 |
Other Non-Current Assets - Sc_2
Other Non-Current Assets - Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 |
Schedule Of Equity Method Investments [Line Items] | ||||
Current assets | $ 352,266 | $ 329,067 | ||
Current liabilities | 108,792 | 105,423 | ||
Shareholders’ equity and capital accounts | 361,449 | 358,419 | $ 316,155 | $ 392,845 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Current assets | 10,705 | 7,931 | ||
Non-current assets | 605 | 659 | ||
Current liabilities | 8,056 | 3,967 | ||
Shareholders’ equity and capital accounts | 3,254 | 4,623 | ||
UNIFI’s portion of undistributed earnings | $ 2,013 | $ 2,100 |
Other Non-Current Assets - Sc_3
Other Non-Current Assets - Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Jul. 03, 2022 | [1] | Mar. 27, 2022 | [1] | Dec. 26, 2021 | [1] | Sep. 26, 2021 | [1] | Jun. 27, 2021 | [2] | Mar. 28, 2021 | [2] | Dec. 27, 2020 | [2] | Sep. 27, 2020 | [2] | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 28, 2020 | |
Schedule Of Equity Method Investments [Line Items] | ||||||||||||||||||||
Net sales | $ 815,758 | $ 667,592 | $ 606,509 | |||||||||||||||||
Gross profit | $ 18,354 | $ 19,144 | $ 16,890 | $ 26,097 | $ 27,404 | $ 25,595 | $ 25,934 | $ 14,561 | 80,485 | 93,494 | $ 39,040 | |||||||||
Net income (loss) | 15,171 | 29,073 | (57,237) | |||||||||||||||||
Distributions received | 750 | 750 | 10,437 | |||||||||||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||||||||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||||||||||||||
Net sales | 31,745 | 19,649 | 561,074 | |||||||||||||||||
Gross profit | 1,928 | 3,423 | 9,648 | |||||||||||||||||
(Loss) income from operations | 148 | 1,777 | (7,074) | |||||||||||||||||
Net income (loss) | 127 | 1,782 | (2,326) | |||||||||||||||||
Depreciation and amortization | 121 | 151 | 33,590 | |||||||||||||||||
Cash received by PAL under cotton rebate program | 11,186 | |||||||||||||||||||
Earnings recognized by PAL for cotton rebate program | 9,697 | |||||||||||||||||||
Distributions received | $ 750 | $ 750 | 10,437 | |||||||||||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | Parkdale America LLC [Member] | ||||||||||||||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||||||||||||||
Net sales | 544,006 | |||||||||||||||||||
Gross profit | 7,592 | |||||||||||||||||||
(Loss) income from operations | (7,484) | |||||||||||||||||||
Net income (loss) | (2,823) | |||||||||||||||||||
Depreciation and amortization | 33,455 | |||||||||||||||||||
Cash received by PAL under cotton rebate program | 11,186 | |||||||||||||||||||
Earnings recognized by PAL for cotton rebate program | 9,697 | |||||||||||||||||||
Distributions received | 10,437 | |||||||||||||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | UNF and UNF America [Member] | ||||||||||||||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||||||||||||||
Net sales | 17,068 | |||||||||||||||||||
Gross profit | 2,056 | |||||||||||||||||||
(Loss) income from operations | 410 | |||||||||||||||||||
Net income (loss) | 497 | |||||||||||||||||||
Depreciation and amortization | $ 135 | |||||||||||||||||||
[1] Gross profit for our domestic operations for all fiscal quarters of fiscal 2022 includes adverse pressures from (i) higher raw material costs, (ii) rising input costs, and (iii) the weakening of labor productivity. Gross profit for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for the fiscal quarters ended December 27, 2020, March 28, 2021, and June 27, 2021 includes the benefit of exceptional performance by the Brazil Segment primarily due to higher conversion margin and market share capture due to agility and responsiveness during demand recovery in Brazil. |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Other Liabilities Current [Abstract] | ||
Payroll and fringe benefits | $ 9,414 | $ 10,204 |
Incentive compensation | 3,916 | 12,356 |
Utilities | 2,287 | 2,347 |
Deferred revenue | 1,694 | 2,691 |
Interest rate swaps | 1,234 | |
Property taxes and other | 2,495 | 2,806 |
Total other current liabilities | $ 19,806 | $ 31,638 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | ||
Debt Instrument [Line Items] | |||
Finance lease obligations | [1] | $ 7,261 | $ 8,475 |
Construction financing | [2] | 729 | 882 |
Total debt | 114,290 | 86,857 | |
Current portion of finance lease obligations | (1,726) | (3,545) | |
Unamortized debt issuance costs | (255) | (476) | |
Total long-term debt | $ 102,309 | 70,336 | |
Finance Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average | [1] | 3.60% | |
Construction Financing [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average | [2] | 1.90% | |
Construction financing | $ 729 | ||
ABL Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | 2023-12 | ||
Weighted Average | 3.20% | ||
Long-term Debt | $ 41,300 | ||
ABL Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | 2023-12 | ||
Current ABL Term Loan | $ (10,000) | (12,500) | |
Weighted Average | 3.20% | ||
Outstanding balances of term loan | $ 65,000 | $ 77,500 | |
[1]Scheduled maturity dates for finance lease obligations range from March 2025 to November 2027[2]Refer to the discussion below under the subheading “ Construction Financing |
Long-Term Debt - Long-Term De_2
Long-Term Debt - Long-Term Debt Components (Details) (Parenthetical) | 12 Months Ended |
Jul. 03, 2022 | |
Debt Disclosure [Abstract] | |
Finance lease obligations, scheduled maturity start date | 2025-03 |
Finance lease obligations, scheduled maturity end date | 2027-11 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Feb. 05, 2021 USD ($) | May 15, 2020 USD ($) | Apr. 29, 2020 USD ($) | Dec. 18, 2018 USD ($) | Dec. 17, 2018 | May 31, 2021 Payment | Jul. 03, 2022 USD ($) | Jun. 27, 2021 USD ($) | Jun. 28, 2020 USD ($) | ||
Debt Instrument [Line Items] | ||||||||||
Variable rate borrowings amount | $ 75,000,000 | |||||||||
Finance lease obligations | 2,493,000 | $ 740,000 | $ 6,301,000 | |||||||
Lease expiration date | Jun. 30, 2025 | |||||||||
Lease expiration range end date | Mar. 31, 2025 | |||||||||
Lease expiration range end date | Nov. 30, 2026 | |||||||||
Finance lease discount rate | 3.80% | |||||||||
Construction financing | [1] | 729,000 | $ 882,000 | |||||||
Construction Financing [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Monthly payment | Payment | 60 | |||||||||
Interest rate during period | 4.40% | |||||||||
Construction financing | 729,000 | |||||||||
Long term debt including transitioned amount | 3,222,000 | |||||||||
Completed asset cost transferred to finance lease obligation | 2,493,000 | |||||||||
Swap A [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative notional amount | 20,000,000 | |||||||||
Swap B [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative notional amount | 30,000,000 | |||||||||
Swap C [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative notional amount | $ 25,000,000 | |||||||||
Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |||||||||
Finance lease obligations | $ 3,000 | |||||||||
Finance lease discount rate | 3.10% | |||||||||
Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Finance lease obligations | $ 4,400 | |||||||||
Finance lease discount rate | 3.50% | |||||||||
Parkdale America LLC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Equity method investment, ownership percentage | 34% | 34% | ||||||||
Proceeds from sale of equity method investments | $ 60,000,000 | |||||||||
LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative, average fixed interest rate | 1.90% | |||||||||
SOFR [Member] | Construction Financing [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||||||
ABL Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Foreign capital stock, maximum voting stock of first tier foreign subsidiaries | 65% | |||||||||
Fixed charge coverage ratio | (0.24) | |||||||||
ABL Facility [Member] | Parkdale America LLC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Equity method investment, ownership percentage | 34% | |||||||||
Proceeds from sale of equity method investments | $ 60,000,000 | |||||||||
ABL Revolver [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.25% | |||||||||
ABL Revolver [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||
ABL Revolver [Member] | LIBOR [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||||||
ABL Revolver [Member] | LIBOR [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.75% | |||||||||
Revolving Credit Facility [Member] | ABL Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, remaining borrowing capacity | $ 51,409,000 | |||||||||
Standby Letters of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, current borrowing capacity | $ 0 | |||||||||
Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt agreement maximum borrowing capacity | $ 200,000,000 | |||||||||
Outstanding balances of term loan | $ 100,000,000 | |||||||||
Debt instrument maturity date | Dec. 18, 2023 | |||||||||
Principal amount of term loan | $ 100,000,000 | |||||||||
Annual interest rate added to federal funds rate | 0.50% | |||||||||
Annual interest rate added to LIBOR rate | 1% | |||||||||
Credit Agreement [Member] | ABL Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument maturity date | Dec. 18, 2023 | Mar. 26, 2020 | ||||||||
Minimum monthly fixed charge coverage ratio covenant | 1.05 | |||||||||
Credit Agreement [Member] | ABL Facility [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Decrease in the applicable margin rate percentage | 0.25% | |||||||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |||||||||
Credit Agreement [Member] | Revolving Credit Facility [Member] | ABL Facility [Member] | Trigger Level [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, remaining borrowing capacity | $ 20,625,000 | |||||||||
Fifth Amendment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Payments for repurchase stock | $ 5,000,000 | |||||||||
[1]Refer to the discussion below under the subheading “ Construction Financing |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Outstanding Debt Obligations (Details) $ in Thousands | Jul. 03, 2022 USD ($) | |
Debt Instrument Redemption [Line Items] | ||
Fiscal 2023 | $ 11,726 | [1] |
Fiscal 2024 | 98,087 | [1] |
Fiscal 2025 | 1,699 | [1] |
Fiscal 2026 | 1,255 | [1] |
Fiscal 2027 | 732 | [1] |
Thereafter | 62 | [1] |
Finance Lease Obligations [Member] | ||
Debt Instrument Redemption [Line Items] | ||
Fiscal 2023 | 1,726 | |
Fiscal 2024 | 1,787 | |
Fiscal 2025 | 1,699 | |
Fiscal 2026 | 1,255 | |
Fiscal 2027 | 732 | |
Thereafter | 62 | |
ABL Revolver [Member] | ||
Debt Instrument Redemption [Line Items] | ||
Fiscal 2024 | 41,300 | |
ABL Term Loan [Member] | ||
Debt Instrument Redemption [Line Items] | ||
Fiscal 2023 | 10,000 | |
Fiscal 2024 | $ 55,000 | |
[1] Total reported excludes $729 for construction financing, described above. |
Long-Term Debt - Scheduled Ma_2
Long-Term Debt - Scheduled Maturities of Outstanding Debt Obligations (Details) (Parenthetical) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 | |
Debt Instrument Redemption [Line Items] | |||
Construction financing | [1] | $ 729 | $ 882 |
Construction Financing [Member] | |||
Debt Instrument Redemption [Line Items] | |||
Construction financing | $ 729 | ||
[1]Refer to the discussion below under the subheading “ Construction Financing |
Other Long-Term Liabilities - O
Other Long-Term Liabilities - Other Long-Term Liabilities Components (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Nonqualified deferred compensation plan obligation | $ 1,982 | $ 2,090 |
Uncertain tax positions | 1,575 | 3,045 |
Other | 892 | 2,337 |
Total other long-term liabilities | $ 4,449 | $ 7,472 |
Income Taxes - Components of In
Income Taxes - Components of Income (loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (18,364) | $ (12,463) | $ (74,905) |
Foreign | 45,192 | 58,810 | 18,640 |
Income (loss) before income taxes | $ 26,828 | $ 46,347 | $ (56,265) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Current: | |||
Federal | $ (1,163) | $ (577) | $ 282 |
State | 2 | 25 | (118) |
Foreign | 15,935 | 12,739 | 4,819 |
Total current tax expense | 14,774 | 12,187 | 4,983 |
Deferred: | |||
Federal | (630) | (1,564) | (3,783) |
State | 33 | 131 | 116 |
Foreign | (2,520) | 6,520 | (344) |
Total deferred tax expense | (3,117) | 5,087 | (4,011) |
Provision for income taxes | $ 11,657 | $ 17,274 | $ 972 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Income Taxes [Line Items] | |||
Tax benefit | $ 4,816 | ||
Capital loss carryforwards | $ 16,318 | 17,429 | |
Net operating loss carryforwards beginning expiration year | 2023 | ||
U.S federal research tax credit carryforwards | $ 5,284 | ||
U.S. federal research tax credit carryforwards expiration year | 2039 | ||
Amount of Unrecognized Deferred Tax Liability | $ 6,046 | ||
Capital Loss Carryforward | |||
Income Taxes [Line Items] | |||
Capital loss carryforwards | 71,105 | ||
U.S. Federal NOL [Member] | |||
Income Taxes [Line Items] | |||
U.S federal net operating loss carryforwards | $ 16,731 | ||
U.S. Federal Foreign Tax Credits [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards beginning expiration year | 2023 | ||
U.S federal net operating loss carry a full valuation allowance | $ 3,075 | ||
Foreign Tax Credits [Member] | |||
Income Taxes [Line Items] | |||
U.S federal net operating loss carry a full valuation allowance | 3,170 | ||
Earliest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
State deferred tax expense component, utilization of net operating loss carryforwards | 25 | 167 | $ 20 |
Foreign deferred tax expense component, utilization of net operating loss carryforwards | 32 | 441 | 702 |
Valuation allowance, deferred tax asset, increase (decrease), amount | (5,313) | (459) | 11,419 |
Unrecognized tax benefits that would impact effective tax rate | 4,746 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 287 | 141 | 69 |
Unrecognized tax benefits, income tax penalties and interest accrued | 559 | 273 | |
Unremitted foreign earnings | 26,253 | ||
U.S. Federal [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss | 110 | $ 5,312 | $ 89 |
U.S. Federal [Member] | Earliest Tax Year [Member] | |||
Income Taxes [Line Items] | |||
Open tax year | 2017 | ||
Net Operating Loss Held Outside U.S Consolidated Tax Filing Group [Member] | |||
Income Taxes [Line Items] | |||
U.S state net operating loss carryforwards | $ 14,421 | ||
Net operating loss carryforwards beginning expiration year | 2023 | ||
Net Operating Loss Held Outside U.S Consolidated Tax Filing Group [Member] | U.S. Federal NOL [Member] | |||
Income Taxes [Line Items] | |||
U.S federal net operating loss carryforwards | $ 2,340 | ||
Foreign Net Operating Loss Carry Forwards [Member] | |||
Income Taxes [Line Items] | |||
U.S federal net operating loss carry a full valuation allowance | $ 395 | ||
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | North Carolina Department of Revenue [Member] | |||
Income Taxes [Line Items] | |||
Open tax year | 2017 | ||
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | North Carolina Department of Revenue [Member] | |||
Income Taxes [Line Items] | |||
Open tax year | 2019 |
Income Taxes - Reconciliation f
Income Taxes - Reconciliation from Federal Statutory Tax Rate to Effective Tax Rate (Details) | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Federal statutory tax rate | 21% | 21% | 21% |
Change in valuation allowance | 12.60% | 5% | 0.60% |
Foreign income taxed at different rates | 10.70% | 9% | (1.20%) |
Tax expense on unremitted foreign earnings | 5.50% | 7% | (0.90%) |
Repatriation of foreign earnings and withholding taxes | 3.90% | 1.80% | (2.00%) |
Change in uncertain tax positions | 2.40% | 0.50% | (0.30%) |
Nondeductible compensation | 2.10% | 1.40% | (0.80%) |
U.S. tax on GILTI | 0.20% | 3.90% | (5.00%) |
Nontaxable income | (10.20%) | (2.40%) | 1.10% |
Research and other business credits | (4.00%) | (3.70%) | 2% |
State income taxes, net of federal tax benefit | (1.30%) | (0.20%) | 2.60% |
Foreign tax credits | (0.50%) | (5.40%) | 0.90% |
Deemed repatriation of foreign earnings under Subpart F | 1.50% | ||
Domestic production activities deduction | 0.60% | ||
Rate benefit of U.S. federal NOL carryback | (2.80%) | ||
Valuation allowance related to loss on sale of investment in PAL | (19.30%) | ||
Nondeductible expenses and other | 1.10% | 0.10% | (0.40%) |
Effective tax rate | 43.50% | 37.30% | (1.70%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | |||
Capital loss carryforwards | $ 16,318 | $ 17,429 | |
Tax credits | 12,079 | 18,711 | |
Research and development costs | 7,409 | 6,934 | |
NOL carryforwards | 6,603 | 3,043 | |
Accrued compensation | 2,106 | 4,056 | |
Other items | 4,877 | 4,815 | |
Total gross deferred tax assets | 49,392 | 54,988 | |
Valuation allowance | (31,667) | (36,980) | $ (37,439) |
Net deferred tax assets | 17,725 | 18,008 | |
PP&E | (14,952) | (16,045) | |
Unremitted earnings | (5,253) | (3,769) | |
Recovery of non-income taxes | 132 | (3,664) | |
Other | (138) | (8) | |
Total deferred tax liabilities | (20,211) | (23,486) | |
Net deferred tax liabilities | $ (2,486) | $ (5,478) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Valuation Allowance (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 |
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | $ (31,667) | $ (36,980) | $ (37,439) |
Capital Loss Carryforward | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | (16,318) | (17,429) | (13,791) |
Tax Credit [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | (10,779) | (17,215) | (17,111) |
NOL Carryforwards [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | $ (4,570) | $ (2,336) | (2,542) |
Investments, Including Unconsolidated Affiliates [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | $ (3,995) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Income Tax Uncertainties [Abstract] | |||
Balance at beginning of year | $ 2,590 | $ 1,218 | $ 1,083 |
Gross increases (decreases) related to current period tax positions | 408 | (24) | 98 |
Gross (decreases) increases related to tax positions in prior periods | (89) | 1,396 | 37 |
Balance at end of year | $ 2,909 | $ 2,590 | $ 1,218 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | Oct. 31, 2018 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Payments of Dividends | $ 0 | $ 0 | $ 0 | |
2018 Share Repurchase Program [Member] | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Share Repurchase Program, Authorized Amount | $ 50,000,000 | |||
Share Repurchase Program, Remaining Authorized Repurchase Amount | $ 38,859,000 |
Shareholders' Equity - Repurcha
Shareholders' Equity - Repurchases and Retirements of Common Stock (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jul. 03, 2022 USD ($) $ / shares shares | |
Stockholders Equity [Line Items] | |
Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | shares | 701 |
Average Price Paid per Share | $ / shares | $ 15.90 |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 38,859 |
Fiscal 2019 [Member] | |
Stockholders Equity [Line Items] | |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 50,000 |
Fiscal 2020 [Member] | |
Stockholders Equity [Line Items] | |
Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | shares | 84 |
Average Price Paid per Share | $ / shares | $ 23.72 |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 48,008 |
Fiscal 2021 [Member] | |
Stockholders Equity [Line Items] | |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 48,008 |
Fiscal 2022 [Member] | |
Stockholders Equity [Line Items] | |
Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs | shares | 617 |
Average Price Paid per Share | $ / shares | $ 14.84 |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 38,859 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
May 01, 2020 USD ($) d $ / shares shares | Jul. 03, 2022 USD ($) $ / shares shares | Jun. 27, 2021 USD ($) $ / shares shares | Jun. 28, 2020 USD ($) $ / shares shares | Oct. 24, 2018 shares | Oct. 23, 2013 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Employee service share-based compensation, non vested awards, compensation cost not yet recognized | $ | $ 2,538 | |||||
Employee service share-based compensation, non vested awards, compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | |||||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ | $ 386 | $ 297 | $ 178 | |||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 5,000 | 4,000 | 4,000 | |||
Share-based compensation arrangement by share-based payment award, compensation expense | $ | $ 110 | $ 75 | $ 100 | |||
Common Stock [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Price attainment for consecutive trading days for vesting | d | 10 | |||||
Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | |||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ / shares | $ 11.74 | |||||
Stock Options [Member] | Share Based Compensation Award Vested One | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share-based payment award, options, vested, number of shares | 100 | |||||
Grant date fair value | $ / shares | $ 4.83 | |||||
Stock Options [Member] | Share Based Compensation Award Vested Two | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, expiration period | 3 years | |||||
Share based compensation arrangement by share-based payment award, options, vested, number of shares | 100 | |||||
Grant date fair value | $ / shares | $ 4.83 | |||||
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 | 533,000 | |||||
Stock Options [Member] | Common Stock [Member] | Share Based Compensation Award Vested One | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share-based payment award, options, vested, number of shares | 100 | |||||
Grant date fair value | $ / shares | $ 2.70 | |||||
Stock Options [Member] | Common Stock [Member] | Share Based Compensation Award Vested One | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, expiration period | 4 years | |||||
Share based compensation arrangement by share based payment award options vested price attainment | $ | $ 40 | |||||
Stock Options [Member] | Common Stock [Member] | Share Based Compensation Award Vested One | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, expiration period | 5 years | |||||
Share based compensation arrangement by share based payment award options vested price attainment | $ | $ 50 | |||||
Stock Options [Member] | Common Stock [Member] | Share Based Compensation Award Vested Two | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, expiration period | 5 years | |||||
Share based compensation arrangement by share-based payment award, options, vested, number of shares | 233 | |||||
Grant date fair value | $ / shares | $ 2.33 | |||||
Share based compensation arrangement by share based payment award options vested price attainment | $ | $ 50 | |||||
Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Employee service share-based compensation, non vested awards, compensation cost not yet recognized | $ | $ 904 | |||||
Employee service share-based compensation, non vested awards, compensation cost not yet recognized, period for recognition | 1 year 8 months 12 days | |||||
Share-based compensation arrangement by share-based payment award, options, exercises in period, intrinsic value | $ | $ 60 | 85 | 147 | |||
Proceeds from stock options exercised | $ | 28 | 0 | 29 | |||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ | $ 8 | $ 11 | $ 20 | |||
RSUs Issued to Key Employees [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 80,000 | 73,000 | 127,000 | |||
Service Period (years) | 3 years | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ / shares | $ 23.45 | $ 15.65 | $ 19.74 | |||
VSUs Issued to Non-Employee Directors [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 32,000 | 37,000 | 24,000 | |||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ / shares | $ 22.03 | $ 15.91 | $ 27.15 | |||
PSUs Issued to Key Employees [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 53,000 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ / shares | $ 23.27 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period not expected to vest | 53,000 | |||||
PSUs Issued to Key Employees [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting percentage | 50% | |||||
PSUs Issued to Key Employees [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, vesting percentage | 200% | |||||
Restricted Stock Units R S U Vested Share Units V S U And Performance Share Units P S U | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested and expected to vest, number | 426,000 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, outstanding | $ | $ 5,972 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested, number | 245,000 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, vested | $ | $ 3,434 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, converted in period, aggregate intrinsic value | $ | 1,715 | $ 1,216 | $ 1,708 | |||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ | 260 | $ 159 | $ 206 | |||
Restricted Stock Units (RSUs) and Performance Share Units (PSUs) [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Employee service share-based compensation, non vested awards, compensation cost not yet recognized | $ | $ 1,634 | |||||
Employee service share-based compensation, non vested awards, compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | |||||
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] | ||||||
Number of shares available for future issuance | 1,250,000 | |||||
2020 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 | 850,000 | |||||
Number of shares available for future issuance | 601,000 | |||||
Inception date | Oct. 29, 2020 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Number of Securities Remaining Available for Future Issuance (Details) - shares shares in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Less: Awards granted to employees | (5) | (4) | (4) |
2020 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Authorized under the 2020 Plan | 850 | ||
Available for issuance under the 2020 Plan | 601 | ||
2020 Plan [Member] | Awards Expired, Forfeited or Otherwise Terminated Unexercised [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Plus: Awards expired, forfeited or otherwise terminated unexercised | 1 | ||
2020 Plan [Member] | Awards Granted to Employees [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Less: Awards granted to employees | (209) | ||
2020 Plan [Member] | Awards Granted to Non-Employee Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Less: Awards granted to non-employee directors | (41) |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (years) | 5 years 6 months | 5 years 6 months | |
Risk-free interest rate | 0.40% | 0.70% | |
Volatility | 49% | 43.20% | |
Dividend yield | 0% | 0% | 0% |
Black Scholes Model | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Quantity | 155 | 143 | |
Service Period (years) | 3 years | 3 years | |
Weighted Average Exercise Price | $ 15.64 | $ 19.95 | |
Weighted Average Grant Date Fair Value | $ 6.75 | $ 7.33 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jul. 03, 2022 USD ($) $ / shares shares | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |
Stock Options, Outstanding at June 27, 2021 | shares | 1,114 |
Stock Options, Exercised | shares | (10) |
Stock Options, Cancelled or forfeited | shares | (122) |
Stock Options, Outstanding at July 3, 2022 | shares | 982 |
Stock Options, Vested and expected to vest as of July 3, 2022 | shares | 982 |
Stock Options, Exercisable at July 3, 2022 | shares | 380 |
Weighted Average Exercise Price, Outstanding at June 27, 2021 | $ / shares | $ 16.82 |
Weighted Average Exercise Price, Exercised | $ / shares | 11.09 |
Weighted Average Exercise Price, Cancelled or forfeited | $ / shares | 25.45 |
Weighted Average Exercise Price, Outstanding at July 3, 2022 | $ / shares | 15.81 |
Weighted Average Exercise Price, Vested and expected to vest as of July 3, 2022 | $ / shares | 15.81 |
Weighted Average Exercise Price, Exercisable at July 3, 2022 | $ / shares | $ 20.15 |
Weighted Average Remaining Contractual Life (Years), Outstanding at July 3, 2022 | 7 years 2 months 12 days |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest as of July 3, 2022 | 7 years 2 months 12 days |
Weighted Average Remaining Contractual Life (Years), Exercisable at July 3, 2022 | 6 years 1 month 6 days |
Aggregate Intrinsic Value, Outstanding at July 3, 2022 | $ | $ 1,296 |
Aggregate Intrinsic Value, Vested and expected to vest as of July 3, 2022 | $ | 1,296 |
Aggregate Intrinsic Value, Exercisable at July 3, 2022 | $ | $ 285 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of RSU, VSU and PSU Activity (Details) - Restricted Stock Units R S U Vested Share Units V S U And Performance Share Units P S U shares in Thousands | 12 Months Ended |
Jul. 03, 2022 $ / shares shares | |
Nonvested [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding (in shares) | 162 |
Granted (in shares) | 166 |
Vested (in shares) | (92) |
Cancelled or forfeited (in shares) | (2) |
Outstanding (in shares) | 234 |
Outstanding (in dollars per share) | $ / shares | $ 16.75 |
Granted (in dollars per share) | $ / shares | 23.12 |
Vested (in dollars per share) | $ / shares | 18.78 |
Cancelled or forfeited (in dollars per share) | $ / shares | 20.39 |
Outstanding (in dollars per share) | $ / shares | $ 20.38 |
Vested [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding (in shares) | 241 |
Vested (in shares) | 92 |
Converted (in shares) | (88) |
Outstanding (in shares) | 245 |
Total Nonvested and Vested [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding (in shares) | 403 |
Granted (in shares) | 166 |
Converted (in shares) | (88) |
Cancelled or forfeited (in shares) | (2) |
Outstanding (in shares) | 479 |
Outstanding (in dollars per share) | $ / shares | $ 20.82 |
Granted (in dollars per share) | $ / shares | 23.12 |
Vested (in dollars per share) | $ / shares | 18.78 |
Converted (in dollars per share) | $ / shares | 19.80 |
Cancelled or forfeited (in dollars per share) | $ / shares | 20.39 |
Outstanding (in dollars per share) | $ / shares | $ 21.80 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Based Compensation Total Cost Charged Against Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation cost | $ 3,181 | $ 3,062 | $ 3,510 |
Stock options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation cost | 928 | 1,047 | 1,265 |
RSUs and VSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation cost | $ 2,253 | $ 2,015 | $ 2,245 |
Defined Contribution Plans - Ad
Defined Contribution Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 03, 2022 | Jun. 27, 2021 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Total DCP obligation | $ 2,359 | |
Predecessor SERP | $ 3,177 | |
Contribution for the First 3% [Member] | Retirement Savings Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, employer matching contribution percentage | 100% | |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 3% | |
Contribution for the Next 2% [Member] | Retirement Savings Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, employer matching contribution percentage | 50% | |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 2% |
Defined Contribution Plans - Sc
Defined Contribution Plans - Schedule of Employer Matching Contribution Expense Related to 401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |||
Matching contribution expense | $ 3,215 | $ 2,578 | $ 2,491 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment assets held by the trust | $ 2,196,000 | $ 0 | |
Losses on investments held by the trust | 48,000 | ||
Non-financial assets or liabilities of fair value recurring or non-recurring basis | $ 0 | ||
LIBOR [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative, average fixed interest rate | 1.90% | ||
Swaps A, B and C [Member] | Designated Hedges [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative notional amount | $ 75,000,000 | ||
Increase (decrease) in interest expense | $ 1,190,000 | $ 1,347,000 | $ 270,000 |
Swaps A, B and C [Member] | Designated Hedges [Member] | LIBOR [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative, average fixed interest rate | 1.90% |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Schedule of Fair Value Attributes for the Historical Swaps (Details) - Other Long-term Liabilities [Member] - Fair Value, Inputs, Level 2 $ in Thousands | Jun. 27, 2021 USD ($) |
Interest Rate Swap A | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Notional Amount | $ 20,000 |
Fair Value | 334 |
Interest Rate Swap B | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Notional Amount | 30,000 |
Fair Value | 500 |
Interest Rate Swap C | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Notional Amount | 25,000 |
Fair Value | $ 400 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (53,432) | $ (63,806) | $ (43,229) |
Other comprehensive (loss) income, net of tax | (6,173) | 10,374 | (20,577) |
Ending balance | (59,605) | (53,432) | (63,806) |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (52,480) | (61,848) | (42,729) |
Other comprehensive (loss) income, net of tax | (7,125) | 9,368 | (19,119) |
Ending balance | (59,605) | (52,480) | (61,848) |
Changes in Interest Rate Swaps [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (952) | (1,958) | (500) |
Other comprehensive (loss) income, net of tax | $ 952 | 1,006 | (1,458) |
Ending balance | $ (952) | $ (1,958) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments, Pre-tax | $ (7,125) | $ 9,368 | $ (21,027) |
Changes in interest rate swaps, net of reclassification adjustments, Pre-tax | 1,234 | 1,316 | (1,904) |
Other comprehensive (loss) income, net | (5,891) | 10,684 | (21,023) |
Changes in interest rate swaps, net of reclassification adjustments, Tax | (282) | (310) | 446 |
Other comprehensive (loss) income, net | (282) | (310) | 446 |
Foreign currency translation adjustments | (7,125) | 9,368 | (21,027) |
Changes in interest rate swaps, net of reclassification adjustments, After-tax | 952 | 1,006 | (1,458) |
Other comprehensive (loss) income, net | $ (6,173) | $ 10,374 | (20,577) |
Unconsolidated Affiliates [Member] | |||
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments, Pre-tax | 1,908 | ||
Foreign currency translation adjustments | $ 1,908 |
Computation of Earnings Per S_3
Computation of Earnings Per Share - Computation of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 03, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net income (loss) | $ 3,496 | [1] | $ 2,066 | [1] | $ 929 | [1] | $ 8,680 | [1] | $ 13,419 | [2] | $ 4,758 | [2] | $ 7,464 | [2] | $ 3,432 | [2] | $ 15,171 | $ 29,073 | $ (57,237) |
Weighted average common shares outstanding (in shares) | 18,429,000 | 18,472,000 | 18,475,000 | ||||||||||||||||
Basic | $ 0.19 | [3] | $ 0.11 | [3] | $ 0.05 | [3] | $ 0.47 | [3] | $ 0.73 | [3] | $ 0.26 | [3] | $ 0.40 | [3] | $ 0.19 | [3] | $ 0.82 | $ 1.57 | $ (3.10) |
Net potential common share equivalents | 439,000 | 384,000 | |||||||||||||||||
Adjusted weighted average common shares outstanding (in shares) | 18,868,000 | 18,856,000 | 18,475,000 | ||||||||||||||||
Diluted | $ 0.19 | [3] | $ 0.11 | [3] | $ 0.05 | [3] | $ 0.46 | [3] | $ 0.70 | [3] | $ 0.25 | [3] | $ 0.40 | [3] | $ 0.18 | [3] | $ 0.80 | $ 1.54 | $ (3.10) |
Excluded from the calculation of common share equivalents: | |||||||||||||||||||
Anti-dilutive common share equivalents (in shares) | 225,000 | 497,000 | 401,000 | ||||||||||||||||
Unvested stock options that vest upon achievement of certain market conditions (in shares) | 333,000 | 333,000 | 333,000 | ||||||||||||||||
[1] Net income for our domestic operations for all fiscal quarters of fiscal 2022 includes the adverse pressures on gross profit. Net income for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Net income for the fiscal quarter ended June 27, 2021 includes a recovery of non-income taxes in Brazil due to the favorable conclusion of litigation related to excess social program taxes for multiple prior years. Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Apr. 10, 2019 | Sep. 30, 2004 |
Commitments And Contingencies Disclosure [Abstract] | ||
The term of a former ground lease | 99 years | |
Net monitoring and reporting costs received | $ 180 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Unconditional Purchase Obligations (Details) $ in Thousands | Jul. 03, 2022 USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Fiscal 2023 | $ 8,270 |
Fiscal 2024 | 5,516 |
Fiscal 2025 | 5,336 |
Fiscal 2026 | 2,714 |
Fiscal 2027 | 2,752 |
Thereafter | 194 |
Purchase Obligations [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Fiscal 2023 | 6,359 |
Fiscal 2024 | 5,238 |
Fiscal 2025 | 5,067 |
Fiscal 2026 | 2,445 |
Fiscal 2027 | 2,445 |
Service Obligations [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Fiscal 2023 | 1,911 |
Fiscal 2024 | 278 |
Fiscal 2025 | 269 |
Fiscal 2026 | 269 |
Fiscal 2027 | 307 |
Thereafter | $ 194 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Costs Incurred Under Purchases and Services Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Costs for unconditional purchase obligations | $ 24,236 | $ 22,689 | $ 21,483 |
Costs for unconditional service obligations | 912 | 967 | 2,082 |
Total | $ 25,148 | $ 23,656 | $ 23,565 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Jul. 03, 2022 | Jun. 27, 2021 |
Related Party Transactions [Abstract] | ||
Related party receivables | $ 0 | $ 0 |
Related Party Transactions - Re
Related Party Transactions - Related Party Receivables and Payables (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 | |
Related Party Transaction [Line Items] | |||
Operating lease obligations | $ 8,926 | ||
Finance lease obligations | [1] | 7,261 | $ 8,475 |
Salem Leasing Corporation | |||
Related Party Transaction [Line Items] | |||
Accounts payable, related parties | 432 | 469 | |
Operating lease obligations | 811 | 1,133 | |
Finance lease obligations | 4,933 | 6,149 | |
Total related party payables | $ 6,176 | $ 7,751 | |
[1]Scheduled maturity dates for finance lease obligations range from March 2025 to November 2027 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Salem Leasing Corporation | |||
Related Party Transaction [Line Items] | |||
Expenses with related party | $ 4,343 | $ 4,122 | $ 3,798 |
Business Segment Information -
Business Segment Information - Additional Information (Details) | 12 Months Ended |
Jul. 03, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Business Segment Information _2
Business Segment Information - Selected Financial Information for Polyester, Nylon, Brazil, Asia and Other Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 03, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 217,576 | [1] | $ 200,780 | [1] | $ 201,410 | [1] | $ 195,992 | [1] | $ 184,445 | [2] | $ 178,866 | [2] | $ 162,776 | [2] | $ 141,505 | [2] | $ 815,758 | $ 667,592 | $ 606,509 |
Cost of sales | 735,273 | 574,098 | 567,469 | ||||||||||||||||
Gross profit | $ 18,354 | [3] | $ 19,144 | [3] | $ 16,890 | [3] | $ 26,097 | [3] | $ 27,404 | [4] | $ 25,595 | [4] | $ 25,934 | [4] | $ 14,561 | [4] | 80,485 | 93,494 | 39,040 |
Segment depreciation expense | 22,653 | 22,369 | 20,659 | ||||||||||||||||
Segment Profit | 103,138 | 115,863 | 59,699 | ||||||||||||||||
Americas [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 483,085 | 386,779 | 380,138 | ||||||||||||||||
Cost of sales | 458,617 | 350,373 | 368,976 | ||||||||||||||||
Gross profit | 24,468 | 36,406 | 11,162 | ||||||||||||||||
Segment depreciation expense | 21,153 | 21,054 | 19,274 | ||||||||||||||||
Segment Profit | 45,621 | 57,460 | 30,436 | ||||||||||||||||
Brazil [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 126,066 | 95,976 | 73,339 | ||||||||||||||||
Cost of sales | 98,925 | 64,281 | 62,144 | ||||||||||||||||
Gross profit | 27,141 | 31,695 | 11,195 | ||||||||||||||||
Segment depreciation expense | 1,500 | 1,315 | 1,385 | ||||||||||||||||
Segment Profit | 28,641 | 33,010 | 12,580 | ||||||||||||||||
Asia [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 206,607 | 184,837 | 153,032 | ||||||||||||||||
Cost of sales | 177,731 | 159,444 | 136,349 | ||||||||||||||||
Gross profit | 28,876 | 25,393 | 16,683 | ||||||||||||||||
Segment Profit | $ 28,876 | $ 25,393 | $ 16,683 | ||||||||||||||||
[1] The fiscal quarter ending July 3, 2022 included an additional week of sales of approximately $8,700. Net sales for the fiscal quarters ended September 27, 2020 and December 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for our domestic operations for all fiscal quarters of fiscal 2022 includes adverse pressures from (i) higher raw material costs, (ii) rising input costs, and (iii) the weakening of labor productivity. Gross profit for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for the fiscal quarters ended December 27, 2020, March 28, 2021, and June 27, 2021 includes the benefit of exceptional performance by the Brazil Segment primarily due to higher conversion margin and market share capture due to agility and responsiveness during demand recovery in Brazil. |
Business Segment Information _3
Business Segment Information - Reconciliations of Segment Gross Profit to Consolidated Income (loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 03, 2022 | [1] | Mar. 27, 2022 | [1] | Dec. 26, 2021 | [1] | Sep. 26, 2021 | [1] | Jun. 27, 2021 | [2] | Mar. 28, 2021 | [2] | Dec. 27, 2020 | [2] | Sep. 27, 2020 | [2] | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | $ 18,354 | $ 19,144 | $ 16,890 | $ 26,097 | $ 27,404 | $ 25,595 | $ 25,934 | $ 14,561 | $ 80,485 | $ 93,494 | $ 39,040 | ||||||||
Selling, general and administrative expenses | 52,489 | 51,334 | 43,814 | ||||||||||||||||
(Benefit) provision for bad debts | (445) | (1,316) | 1,739 | ||||||||||||||||
Other operating (income) expense, net | (158) | 4,865 | 2,308 | ||||||||||||||||
Operating income (loss) | 28,599 | 38,611 | (8,821) | ||||||||||||||||
Interest income | (1,524) | (603) | (722) | ||||||||||||||||
Interest expense | 3,085 | 3,323 | 4,779 | ||||||||||||||||
Equity in (earnings) loss of unconsolidated affiliates | (605) | (739) | 477 | ||||||||||||||||
Recovery of non-income taxes, net | 815 | (9,717) | |||||||||||||||||
Gain on sale of investment in unconsolidated affiliate | (2,284) | ||||||||||||||||||
Impairment of investment in unconsolidated affiliate | 45,194 | ||||||||||||||||||
Income (loss) before income taxes | 26,828 | 46,347 | (56,265) | ||||||||||||||||
Americas [Member] | |||||||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | 24,468 | 36,406 | 11,162 | ||||||||||||||||
Brazil [Member] | |||||||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | 27,141 | 31,695 | 11,195 | ||||||||||||||||
Asia [Member] | |||||||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||||||
Gross profit | $ 28,876 | $ 25,393 | $ 16,683 | ||||||||||||||||
[1] Gross profit for our domestic operations for all fiscal quarters of fiscal 2022 includes adverse pressures from (i) higher raw material costs, (ii) rising input costs, and (iii) the weakening of labor productivity. Gross profit for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for the fiscal quarters ended December 27, 2020, March 28, 2021, and June 27, 2021 includes the benefit of exceptional performance by the Brazil Segment primarily due to higher conversion margin and market share capture due to agility and responsiveness during demand recovery in Brazil. |
Business Segment Information _4
Business Segment Information - Reconciliation of Segment Depreciation and Amortization Expense to Consolidated Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | $ 26,207 | $ 25,528 | $ 23,653 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 22,653 | 22,369 | 20,659 |
Operating Segments [Member] | Americas [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 21,153 | 21,054 | 19,274 |
Operating Segments [Member] | Brazil [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 1,500 | 1,315 | 1,385 |
Other Depreciation and Amortization Expense [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | $ 3,554 | $ 3,159 | $ 2,994 |
Business Segment Information _5
Business Segment Information - Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 39,631 | $ 21,178 | $ 18,509 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 39,330 | 20,180 | 17,479 |
Operating Segments [Member] | Americas [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 29,841 | 16,053 | 15,087 |
Operating Segments [Member] | Brazil [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 9,253 | 3,461 | 2,332 |
Operating Segments [Member] | Asia [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 236 | 666 | 60 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 301 | $ 998 | $ 1,030 |
Business Segment Information _6
Business Segment Information - Reconciliation of Segment Total Assets to Consolidated Total Assets (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 588,718 | $ 555,368 |
Other current assets | 18,956 | 12,364 |
Property, plant and equipment, net | 216,338 | 201,696 |
Other operating lease assets | 756 | 1,116 |
Other non-current assets | 8,788 | 14,625 |
Investments in unconsolidated affiliates | 2,072 | 2,159 |
Operating Segments [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 559,951 | 481,429 |
Operating Segments [Member] | Americas [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 379,898 | 327,445 |
Operating Segments [Member] | Brazil [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 98,731 | 85,950 |
Operating Segments [Member] | Asia [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 81,322 | 68,034 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Other current assets | 5,145 | 48,587 |
Property, plant and equipment, net | 17,809 | 21,175 |
Other non-current assets | 2,985 | 902 |
Investments in unconsolidated affiliates | $ 2,072 | $ 2,159 |
Business Segment Information _7
Business Segment Information - Geographic Information for Net Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | $ 815,758 | $ 667,592 | $ 606,509 |
U.S. [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | 430,381 | 341,897 | 342,350 |
BRAZIL [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | 126,066 | 95,976 | 73,339 |
CHINA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | 185,558 | 171,261 | 148,923 |
All Other Foreign Countries [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | 73,753 | 58,458 | 41,897 |
Export Sales from US Operations [Member] | U.S. [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Geographic net sales | $ 74,589 | $ 59,055 | $ 64,305 |
Business Segment Information _8
Business Segment Information - Geographic Information for Long-lived Assets (Details) - USD ($) $ in Thousands | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 233,955 | $ 225,093 | $ 217,317 |
U.S. [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 196,885 | 191,733 | 195,874 |
BRAZIL [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 21,927 | 21,733 | 10,805 |
CHINA | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 2,211 | 1,919 | 779 |
All Other Foreign Countries [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 12,932 | $ 9,708 | $ 9,859 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 03, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Net sales | $ 217,576 | [1] | $ 200,780 | [1] | $ 201,410 | [1] | $ 195,992 | [1] | $ 184,445 | [2] | $ 178,866 | [2] | $ 162,776 | [2] | $ 141,505 | [2] | $ 815,758 | $ 667,592 | $ 606,509 |
Gross profit | 18,354 | [3] | 19,144 | [3] | 16,890 | [3] | 26,097 | [3] | 27,404 | [4] | 25,595 | [4] | 25,934 | [4] | 14,561 | [4] | 80,485 | 93,494 | 39,040 |
Net income (loss) | $ 3,496 | [5] | $ 2,066 | [5] | $ 929 | [5] | $ 8,680 | [5] | $ 13,419 | [6] | $ 4,758 | [6] | $ 7,464 | [6] | $ 3,432 | [6] | $ 15,171 | $ 29,073 | $ (57,237) |
Basic | $ 0.19 | [7] | $ 0.11 | [7] | $ 0.05 | [7] | $ 0.47 | [7] | $ 0.73 | [7] | $ 0.26 | [7] | $ 0.40 | [7] | $ 0.19 | [7] | $ 0.82 | $ 1.57 | $ (3.10) |
Diluted | $ 0.19 | [7] | $ 0.11 | [7] | $ 0.05 | [7] | $ 0.46 | [7] | $ 0.70 | [7] | $ 0.25 | [7] | $ 0.40 | [7] | $ 0.18 | [7] | $ 0.80 | $ 1.54 | $ (3.10) |
[1] The fiscal quarter ending July 3, 2022 included an additional week of sales of approximately $8,700. Net sales for the fiscal quarters ended September 27, 2020 and December 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for our domestic operations for all fiscal quarters of fiscal 2022 includes adverse pressures from (i) higher raw material costs, (ii) rising input costs, and (iii) the weakening of labor productivity. Gross profit for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Gross profit for the fiscal quarters ended December 27, 2020, March 28, 2021, and June 27, 2021 includes the benefit of exceptional performance by the Brazil Segment primarily due to higher conversion margin and market share capture due to agility and responsiveness during demand recovery in Brazil. Net income for our domestic operations for all fiscal quarters of fiscal 2022 includes the adverse pressures on gross profit. Net income for the fiscal quarter ended September 27, 2020 includes adverse demand pressures from the COVID-19 pandemic. Net income for the fiscal quarter ended June 27, 2021 includes a recovery of non-income taxes in Brazil due to the favorable conclusion of litigation related to excess social program taxes for multiple prior years. Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Data (Details) (Parenthetical) | 12 Months Ended |
Jul. 03, 2022 USD ($) | |
Quarterly Financial Data [Abstract] | |
Additional week of sales | $ 8,700 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest, net of capitalized interest of $396, $229 and $126, respectively | $ 2,921 | $ 3,158 | $ 4,682 |
Income taxes, net of refunds | $ 13,045 | $ 8,239 | $ 6,131 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest capitalized | $ 396 | $ 229 | $ 126 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 03, 2022 | Jun. 27, 2021 | Jun. 28, 2020 | |
Supplemental Cash Flow Information [Abstract] | |||
Income tax payment related to recovery of non-income taxes | $ 3,749 | ||
Capital expenditures incurred but not yet paid | 2,456 | $ 2,080 | $ 630 |
Non cash activity relating to finance leases | $ 2,493 | $ 740 | $ 6,301 |