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Commitments and Contingencies | 12 Months Ended
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Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract] |
Commitments and Contingencies | 24. Commitments and Contingencies Collective Bargaining Agreements While employees of UNIFI’s Brazilian operations are unionized, none of the labor force employed by UNIFI’s domestic or other foreign subsidiaries is currently covered by a collective bargaining agreement. Environmental On September 30, 2004, Unifi Kinston, LLC (“UK”), a subsidiary of Unifi, Inc., completed its acquisition of polyester filament manufacturing assets located in Kinston, North Carolina from Invista S.a.r.l. (“INVISTA”). The land for the Kinston site was leased pursuant to a 99-year ground lease (the “Ground Lease”) with E.I. DuPont de Nemours (“DuPont”). Since 1993, DuPont has been investigating and cleaning up the Kinston site under the supervision of the U.S. Environmental Protection Agency and the North Carolina Department of Environmental Quality (“DEQ”) pursuant to the Resource Conservation and Recovery Act Corrective Action program. The program requires DuPont to identify all potential areas of environmental concern (“AOCs”), assess the extent of containment at the identified AOCs and remediate the AOCs to comply with applicable regulatory standards. Effective March 20, 2008, UK entered into a lease termination agreement associated with conveyance of certain assets at the Kinston site to DuPont. This agreement terminated the Ground Lease and relieved UK of any future responsibility for environmental remediation, other than participation with DuPont, if so called upon, with regard to UK’s period of operation of the Kinston site, which was from 2004 to 2008. At this time, UNIFI has no basis to determine if or when it will have any responsibility or obligation with respect to the AOCs or the extent of any potential liability for the same. UK continues to own property (the “Kentec site”) acquired in the 2004 transaction with INVISTA that has contamination from DuPont’s prior operations and is monitored by DEQ. The Kentec site has been remediated by DuPont, and DuPont has received authority from DEQ to discontinue further remediation, other than natural attenuation. Prior to transfer of responsibility to UK, DuPont and UK had a duty to monitor and report the environmental status of the Kentec site to DEQ. Effective April 10, 2019, UK assumed sole remediator responsibility of the Kentec site pursuant to its contractual obligations with INVISTA and received $180 of net monitoring and reporting costs due from DuPont. In connection with monitoring, UK expects to sample and report to DEQ annually. UNIFI expects no active site remediation will be required and has no basis to determine any costs that may be associated with active remediation. Leases UNIFI routinely leases sales and administrative office space, warehousing and distribution centers, manufacturing space, transportation equipment, manufacturing equipment, and other information technology and office equipment from third parties. Future minimum capital lease payments and future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of June 30, 2019 by fiscal year are:
|  | Capital leases |  |  | Operating leases |
Fiscal 2020 |  | $ | 5,917 |  |  | $ | 3,164 |
Fiscal 2021 |  |  | 2,870 |  |  |  | 2,731 |
Fiscal 2022 |  |  | 2,565 |  |  |  | 1,492 |
Fiscal 2023 |  |  | 189 |  |  |  | 878 |
Fiscal 2024 |  |  | 189 |  |  |  | 755 |
Fiscal years thereafter |  |  | 675 |  |  |  | 309 |
Total minimum lease payments |  | $ | 12,405 |  |  | $ | 9,329 |
Less estimated executory costs |  |  | (644 | ) |  |  |  |
Less interest |  |  | (643 | ) |  |  |  |
Present value of net minimum capital lease payments |  |  | 11,118 |  |  |  |  |
Less current portion of capital lease obligations |  |  | (5,519 | ) |  |  |  |
Long-term portion of capital lease obligations |  | $ | 5,599 |  |  |  |  |
Rental expenses incurred under operating leases and included in operating income consist of the following:
|  | For the Fiscal Year Ended |
|  | June 30, 2019 |  |  | June 24, 2018 |  |  | June 25, 2017 |
Rental expenses |  | $ | 4,915 |  |  | $ | 4,835 |  |  | $ | 4,357 |
Unconditional Obligations UNIFI is a party to unconditional obligations for certain utility and other purchase or service commitments. These commitments are non-cancelable, have remaining terms in excess of one year and qualify as normal purchases. On a fiscal year basis, the minimum payments expected to be made as part of such commitments are as follows:
|  | Fiscal 2020 |  |  | Fiscal 2021 |  |  | Fiscal 2022 |  |  | Fiscal 2023 |  |  | Fiscal 2024 |  |  | Thereafter |
Unconditional purchase obligations |  | $ | 7,831 |  |  | $ | 6,952 |  |  | $ | 6,771 |  |  | $ | 3,459 |  |  | $ | 5 |  |  | $ | 12 |
Unconditional service obligations |  |  | 3,379 |  |  |  | 2,875 |  |  |  | 2,171 |  |  |  | 694 |  |  |  | 443 |  |  |  | 269 |
Total unconditional obligations |  | $ | 11,210 |  |  | $ | 9,827 |  |  | $ | 8,942 |  |  | $ | 4,153 |  |  | $ | 448 |  |  | $ | 281 |
For fiscal 2019, 2018 and 2017, total costs incurred under these commitments consisted of the following:
|  | For the Fiscal Year Ended |
|  | June 30, 2019 |  |  | June 24, 2018 |  |  | June 25, 2017 |
Costs for unconditional purchase obligations |  | $ | 23,542 |  |  | $ | 24,777 |  |  | $ | 26,984 |
Costs for unconditional service obligations |  |  | 5,169 |  |  |  | 2,454 |  |  |  | 2,575 |
Total |  | $ | 28,711 |  |  | $ | 27,231 |  |  | $ | 29,559 |

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