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Business Segment Information | 6 Months Ended
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Jan. 01, 2023
Segment Reporting [Abstract] |
Business Segment Information | 14. 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 fiscal 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 (loss) profit 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. Selected financial information is presented below:
|  | For the Three Months Ended January 1, 2023 |
|  | Americas |  |  | Brazil |  |  | Asia |  |  | Total |
Net sales |  | $ | 85,242 |  |  | $ | 25,687 |  |  | $ | 25,283 |  |  | $ | 136,212 |
Cost of sales |  |  | 98,326 |  |  |  | 24,357 |  |  |  | 21,529 |  |  |  | 144,212 |
Gross (loss) profit |  |  | (13,084 | ) |  |  | 1,330 |  |  |  | 3,754 |  |  |  | (8,000 | )
Segment depreciation expense |  |  | 5,542 |  |  |  | 391 |  |  |  | — |  |  |  | 5,933 |
Segment (Loss) Profit |  | $ | (7,542 | ) |  | $ | 1,721 |  |  | $ | 3,754 |  |  | $ | (2,067 | )
|  | For the Three Months Ended December 26, 2021 |
|  | Americas |  |  | Brazil |  |  | Asia |  |  | Total |
Net sales |  | $ | 114,697 |  |  | $ | 27,601 |  |  | $ | 59,112 |  |  | $ | 201,410 |
Cost of sales |  |  | 113,844 |  |  |  | 20,075 |  |  |  | 50,601 |  |  |  | 184,520 |
Gross profit |  |  | 853 |  |  |  | 7,526 |  |  |  | 8,511 |  |  |  | 16,890 |
Segment depreciation expense |  |  | 5,145 |  |  |  | 277 |  |  |  | — |  |  |  | 5,422 |
Segment Profit |  | $ | 5,998 |  |  | $ | 7,803 |  |  | $ | 8,511 |  |  | $ | 22,312 |
|  | For the Six Months Ended January 1, 2023 |
|  | Americas |  |  | Brazil |  |  | Asia |  |  | Total |
Net sales |  | $ | 192,886 |  |  | $ | 64,566 |  |  | $ | 58,279 |  |  | $ | 315,731 |
Cost of sales |  |  | 210,839 |  |  |  | 56,449 |  |  |  | 49,880 |  |  |  | 317,168 |
Gross (loss) profit |  |  | (17,953 | ) |  |  | 8,117 |  |  |  | 8,399 |  |  |  | (1,437 | )
Segment depreciation expense |  |  | 11,022 |  |  |  | 861 |  |  |  | — |  |  |  | 11,883 |
Segment (Loss) Profit |  | $ | (6,931 | ) |  | $ | 8,978 |  |  | $ | 8,399 |  |  | $ | 10,446 |
|  | For the Six Months Ended December 26, 2021 |
|  | Americas |  |  | Brazil |  |  | Asia |  |  | Total |
Net sales |  | $ | 225,523 |  |  | $ | 61,339 |  |  | $ | 110,540 |  |  | $ | 397,402 |
Cost of sales |  |  | 215,484 |  |  |  | 43,873 |  |  |  | 95,058 |  |  |  | 354,415 |
Gross profit |  |  | 10,039 |  |  |  | 17,466 |  |  |  | 15,482 |  |  |  | 42,987 |
Segment depreciation expense |  |  | 10,220 |  |  |  | 660 |  |  |  | — |  |  |  | 10,880 |
Segment Profit |  | $ | 20,259 |  |  | $ | 18,126 |  |  | $ | 15,482 |  |  | $ | 53,867 |
The reconciliations of segment gross (loss) profit to consolidated (loss) income before income taxes are as follows:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | January 1, 2023 |  |  | December 26, 2021 |  |  | January 1, 2023 |  |  | December 26, 2021 |
Americas |  | $ | (13,084 | ) |  | $ | 853 |  |  | $ | (17,953 | ) |  | $ | 10,039 |
Brazil |  |  | 1,330 |  |  |  | 7,526 |  |  |  | 8,117 |  |  |  | 17,466 |
Asia |  |  | 3,754 |  |  |  | 8,511 |  |  |  | 8,399 |  |  |  | 15,482 |
Segment gross (loss) profit |  |  | (8,000 | ) |  |  | 16,890 |  |  |  | (1,437 | ) |  |  | 42,987 |
Selling, general and administrative expenses |  |  | 11,748 |  |  |  | 11,966 |  |  |  | 23,521 |  |  |  | 24,636 |
(Benefit) provision for bad debts |  |  | (156 | ) |  |  | (240 | ) |  |  | 18 |  |  |  | (320 | )
Other operating expense (income), net |  |  | 226 |  |  |  | 573 |  |  |  | (463 | ) |  |  | 829 |
Operating (loss) income |  |  | (19,818 | ) |  |  | 4,591 |  |  |  | (24,513 | ) |  |  | 17,842 |
Interest income |  |  | (514 | ) |  |  | (194 | ) |  |  | (1,061 | ) |  |  | (452 | )
Interest expense |  |  | 1,889 |  |  |  | 735 |  |  |  | 3,136 |  |  |  | 1,431 |
Equity in earnings of unconsolidated affiliates |  |  | (86 | ) |  |  | (64 | ) |  |  | (381 | ) |  |  | (344 | )
(Loss) income before income taxes |  | $ | (21,107 | ) |  | $ | 4,114 |  |  | $ | (26,207 | ) |  | $ | 17,207 |
There have been no material changes in segment assets during fiscal 2023.

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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