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Other Current Assets | 12 Months Ended
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Jun. 27, 2021
Other Assets Current [Abstract] |
Other Current Assets | 8. Other Current Assets Other current assets consists of the following:
|  | June 27, 2021 |  |  | June 28, 2020 |
Recovery of non-income taxes |  | $ | 3,456 |  |  | $ | — |
Vendor deposits |  |  | 3,341 |  |  |  | 2,349 |
Prepaid expenses and other |  |  | 2,753 |  |  |  | 1,857 |
Value-added taxes receivable |  |  | 2,484 |  |  |  | 2,604 |
Contract assets |  |  | 330 |  |  |  | 4,953 |
Total other current assets |  | $ | 12,364 |  |  | $ | 11,763 |
Recovery of non-income taxes 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. Vendor deposits primarily relates to down payments made toward the purchase of inventory. Value-added taxes receivable relates to recoverable taxes associated with the sales and purchase activities of UNIFI’s foreign operations. Prepaid expenses consists of advance payments for routine operating expenses. 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 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, resulting in over-taxation. On May 13, 2021, Brazil’s supreme court ruled in favor of taxpayers and on July 7, 2021, the Brazilian Internal Revenue Service withdrew its appeal. Following the supreme court decision, the federal government will not issue refunds for these taxes, and instead will 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. Thus, 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. We expect to recover the entirety of our claims over the 40-month period following June 2021.

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