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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Components of (Loss) Income before Income Taxes

The components of (loss) income before income taxes consist of the following:

		Fiscal 2024				Fiscal 2023				Fiscal 2022
U.S.		$	(63,602	)		$	(63,773	)		$	(18,364	)
Foreign			18,065				18,330				45,192
(Loss) income before income taxes		$	(45,537	)		$	(45,443	)		$	26,828

Schedule of Provision for Income Taxes

Provision for income taxes consists of the following:

		Fiscal 2024				Fiscal 2023				Fiscal 2022
Current:
Federal		$	(2,860	)		$	309			$	(1,163	)
State			203				(7	)			2
Foreign			8,053				3,385				15,935
Total current tax expense			5,396				3,687				14,774
Deferred:
Federal			(123	)			41				(630	)
State			(162	)			71				33
Foreign			(3,253	)			(2,898	)			(2,520	)
Total deferred tax expense			(3,538	)			(2,786	)			(3,117	)
Provision for income taxes		$	1,858			$	901			$	11,657

Reconciliation from Federal Statutory Tax Rate to Effective Tax Rate

Reconciliation from the federal statutory tax rate to the effective tax rate is as follows:

		Fiscal 2024				Fiscal 2023				Fiscal 2022
Federal statutory tax rate			21.0	%			21.0	%			21.0	%
Change in valuation allowance			(24.6	)			(30.8	)			12.6
Repatriation of foreign earnings and withholding taxes			(7.6	)			(7.4	)			3.9
Foreign income taxed at different rates			(3.3	)			(1.9	)			10.7
U.S. tax on GILTI			(2.4	)			(1.5	)			0.2
Change in uncertain tax positions			(1.5	)			(4.1	)			2.4
Nondeductible compensation			(1.0	)			(0.8	)			2.1
Recovery of income taxes in Brazil			—				9.2				—
State income taxes, net of federal tax benefit			3.4				3.2				(1.3	)
Tax expense on unremitted foreign earnings			3.4				3.0				5.5
Foreign tax credits			3.0				2.3				(0.5	)
Research and other business credits			2.7				3.6				(4.0	)
Interest on income taxes			1.8				—				—
Nontaxable income			1.2				2.5				(10.2	)
IRS audit adjustment			0.2				—				—
Nondeductible expenses and other			(0.4	)			(0.3	)			1.1
Effective tax rate			(4.1	)%			(2.0	)%			43.5	%

Deferred Tax Assets and Liabilities

The significant components of UNIFI’s deferred tax assets and liabilities consist of the following:

		June 30, 2024				July 2, 2023
Deferred tax assets:
Capital loss carryforwards		$	16,442			$	16,390
NOL carryforwards			22,351				16,235
Tax credits			11,002				11,634
Research and development costs			11,845				9,137
Accrued compensation			1,575				1,396
Other items			8,503				5,614
Total gross deferred tax assets			71,718				60,406
Valuation allowance			(55,250	)			(43,910	)
Total deferred tax assets			16,468				16,496
Deferred tax liabilities:
PP&E			(10,624	)			(11,901	)
Unremitted earnings			(2,300	)			(3,872	)
Other			(21	)			(148	)
Total deferred tax liabilities			(12,945	)			(15,921	)
Net deferred tax assets		$	3,523			$	575

Schedule of Components of Deferred Tax Valuation Allowance

Components of UNIFI’s deferred tax valuation allowance are as follows:

		Fiscal 2024				Fiscal 2023				Fiscal 2022
Capital loss carryforwards		$	(16,442	)		$	(16,390	)		$	(16,318	)
NOL carryforwards and reversing temporary differences			(29,091	)			(16,235	)			(4,570	)
Tax credits			(9,717	)			(10,800	)			(10,779	)
Other deferred tax assets			—				(485	)			—
Total deferred tax valuation allowance		$	(55,250	)		$	(43,910	)		$	(31,667	)

Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits

A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows:

		Fiscal 2024				Fiscal 2023				Fiscal 2022
Balance at beginning of year		$	4,353			$	2,909			$	2,590
Gross increases related to tax positions in prior periods			1,145				1,481				26
Gross decreases related to tax positions in prior periods			(1,015	)			(45	)			(115	)
Gross increases related to current period tax positions			300				8				408
Gross decreases related to settlements with tax authorities			(1,553	)			—				—
Gross decreases related to lapse of applicable statute of limitations			—				—				—
Balance at end of year		$	3,230			$	4,353			$	2,909

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of the change in unrecognized tax benefits.

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Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

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