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Business Segment Information | 12 Months Ended
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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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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