Property, Plant and Equipment, Net

12 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

9. Property, Plant, and Equipment, Net

PP&E, net consists of the following:


	June 30, 2024			July 2, 2023
Land	$	1,897		$	2,512
Land improvements		16,409			16,443
Buildings and improvements		162,414			167,589
Assets under finance leases		18,030			16,397
Machinery and equipment		650,901			656,431
Computers, software and office equipment		25,464			26,654
Transportation equipment		10,710			10,710
Construction in progress		3,319			10,003
Gross PP&E		889,144			906,739
Less: accumulated depreciation		(688,086	)		(682,768	)
Less: accumulated amortization – finance leases		(7,335	)		(5,450	)
Total PP&E, net	$	193,723		$	218,521

Assets under finance leases consists of the following:


	June 30, 2024		July 2, 2023
Machinery and equipment	$	9,754	$	8,121
Transportation equipment		8,276		8,276
Gross assets under finance leases	$	18,030	$	16,397

Depreciation and amortization expense and repair and maintenance expenses were as follows:


	Fiscal 2024		Fiscal 2023		Fiscal 2022
Depreciation and amortization expense	$	26,985	$	25,729	$	24,509
Repair and maintenance expenses		19,985		17,999		20,076

In fiscal 2017, UNIFI constructed specialized bi-component spinning machinery in the Americas with a 15-year useful life to accommodate tolling demand and development efforts of a specific U.S. customer. After multiple years of operating the machinery, recovering the capital investment, and generating profitable sales, the contract terminated in accordance with its provisions, and additional development and commercialization efforts ceased in fiscal 2023, primarily due to the specialized nature and generally higher operating costs of the machinery. As a result of the lack of potential future demand, the machinery was considered to have zero future sales potential and negative future cash flows and was abandoned by the Company. Accordingly, UNIFI recorded an impairment of $8,247 to Other operating expense (income), net during the fourth quarter of fiscal 2023. Prior to the abandonment, the asset's net book value was $8,247. The new book value of $0, based on the income method (Level 3), reflects the lack of positive future cash flows, and no scrap or salvage value.