Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 24, 2017 | Oct. 26, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | UNIFI INC | |
Entity Central Index Key | 100,726 | |
Trading Symbol | ufi | |
Current Fiscal Year End Date | --06-24 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 18,268,336 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 24, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 42,391 | $ 35,425 |
Receivables, net | 79,924 | 81,121 |
Inventories | 118,534 | 111,405 |
Income taxes receivable | 9,713 | 9,218 |
Other current assets | 6,921 | 6,468 |
Total current assets | 257,483 | 243,637 |
Property, plant and equipment, net | 203,586 | 203,388 |
Deferred income taxes | 2,195 | 2,194 |
Investments in unconsolidated affiliates | 115,427 | 119,513 |
Other non-current assets | 2,413 | 2,771 |
Total assets | 581,104 | 571,503 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 41,921 | 41,499 |
Accrued expenses | 15,341 | 16,144 |
Income taxes payable | 1,539 | 1,351 |
Current portion of long-term debt | 17,065 | 17,060 |
Total current liabilities | 75,866 | 76,054 |
Long-term debt | 107,486 | 111,382 |
Other long-term liabilities | 11,253 | 11,804 |
Deferred income taxes | 12,375 | 11,457 |
Total liabilities | 206,980 | 210,697 |
Commitments and contingencies | ||
Common stock, $0.10 par value (500,000,000 shares authorized; 18,261,067 and 18,229,777 shares issued and outstanding as of September 24, 2017 and June 25, 2017, respectively) | 1,826 | 1,823 |
Capital in excess of par value | 53,104 | 51,923 |
Retained earnings | 348,900 | 339,940 |
Accumulated other comprehensive loss | (29,706) | (32,880) |
Total Unifi, Inc. shareholders’ equity | 374,124 | 360,806 |
Total shareholders’ equity | 374,124 | 360,806 |
Total liabilities and shareholders’ equity | $ 581,104 | $ 571,503 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 24, 2017 | Jun. 25, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 18,261,067 | 18,229,777 |
Common stock, shares outstanding (in shares) | 18,261,067 | 18,229,777 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 164,242 | $ 159,969 |
Cost of sales | 140,950 | 136,422 |
Gross profit | 23,292 | 23,547 |
Selling, general and administrative expenses | 12,863 | 11,410 |
Benefit for bad debts | (59) | (367) |
Other operating expense (income), net | 315 | (70) |
Operating income | 10,173 | 12,574 |
Interest income | (81) | (146) |
Interest expense | 1,185 | 692 |
Equity in earnings of unconsolidated affiliates | (3,087) | (840) |
Income before income taxes | 12,156 | 12,868 |
Provision for income taxes | 3,196 | 3,726 |
Net income including non-controlling interest | 8,960 | 9,142 |
Less: net loss attributable to non-controlling interest | (261) | |
Net income attributable to Unifi, Inc. | $ 8,960 | $ 9,403 |
Net income attributable to Unifi, Inc. per common share: | ||
Basic (in dollars per share) | $ 0.49 | $ 0.52 |
Diluted (in dollars per share) | $ 0.48 | $ 0.51 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Net income including non-controlling interest | $ 8,960 | $ 9,142 |
Foreign currency translation adjustments | 2,865 | (579) |
Changes in interest rate swaps, net of tax of $0 and $0, respectively | 415 | 19 |
Other comprehensive income (loss), net | 3,174 | (803) |
Comprehensive income including non-controlling interest | 12,134 | 8,339 |
Less: comprehensive loss attributable to non-controlling interest | (261) | |
Comprehensive income attributable to Unifi, Inc. | 12,134 | 8,600 |
Unconsolidated Affiliates [Member] | ||
Foreign currency translation adjustments | $ (106) | $ (243) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Changes in interest rate swaps, tax | $ 0 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Statement Of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 35,425 | $ 16,646 |
Operating activities: | ||
Net income including non-controlling interest | 8,960 | 9,142 |
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: | ||
Equity in earnings of unconsolidated affiliates | (3,087) | (840) |
Distributions received from unconsolidated affiliates | 7,178 | 750 |
Depreciation and amortization expense | 5,510 | 4,737 |
Stock-based compensation expense | 965 | 68 |
Excess tax benefit on stock-based compensation plans | (447) | |
Deferred income taxes | 918 | 2,471 |
Other, net | 163 | 213 |
Changes in assets and liabilities: | ||
Receivables, net | 2,030 | 783 |
Inventories | (6,021) | (6,720) |
Other current assets | (285) | (904) |
Income taxes | (351) | (1,775) |
Accounts payable and accrued expenses | (366) | 509 |
Other, net | 146 | 162 |
Net cash provided by operating activities | 15,760 | 8,149 |
Investing activities: | ||
Capital expenditures | (5,148) | (10,135) |
Other, net | 57 | (49) |
Net cash used in investing activities | (5,091) | (10,184) |
Financing activities: | ||
Proceeds from ABL Revolver | 22,200 | 40,200 |
Payments on ABL Revolver | (21,900) | (31,700) |
Payments on ABL Term Loan | (2,500) | (2,375) |
Payments on capital lease obligations | (1,785) | (1,073) |
Proceeds from stock option exercises | 219 | 1,200 |
Excess tax benefit on stock-based compensation plans | 447 | |
Other | (263) | (341) |
Net cash (used in) provided by financing activities | (4,029) | 6,358 |
Effect of exchange rate changes on cash and cash equivalents | 326 | (48) |
Net increase in cash and cash equivalents | 6,966 | 4,275 |
Cash and cash equivalents at end of period | $ 42,391 | $ 20,921 |
Background
Background | 3 Months Ended |
Sep. 24, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Background | 1. Background Unifi, Inc., a New York corporation formed in 1969 (together with its subsidiaries, “UNIFI,” the “Company,” “we,” “us” or “our”), is a multi-national company that manufactures and sells innovative synthetic and recycled products made from polyester and nylon primarily to other yarn manufacturers and knitters and weavers that produce fabric for the apparel, hosiery, home furnishings, automotive, industrial and other end-use markets. Polyester yarns include partially oriented yarn (“POY”), textured, solution and package dyed, twisted, beamed and draw wound yarns, and each is available in virgin or recycled varieties. Recycled solutions, made from both pre-consumer and post-consumer waste, include plastic bottle flake and polyester polymer beads (“Chip”). Nylon products include textured, solution dyed and spandex covered yarns. UNIFI maintains one of the textile industry’s most comprehensive yarn product offerings that include specialized yarns, premium value-added (“PVA”) yarns and commodity yarns, with principal geographic markets in the Americas and Asia. UNIFI has manufacturing operations in four countries and participates in joint ventures in Israel and the United States, the most significant of which is a 34% non-controlling partnership interest in Parkdale America, LLC (“PAL”), a producer of cotton and synthetic yarns for sale to the global textile industry and apparel market. |
Basis of Presentation; Condense
Basis of Presentation; Condensed Notes | 3 Months Ended |
Sep. 24, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation; Condensed Notes | 2. Basis of Presentation; Condensed Notes The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. As contemplated by the instructions of the Securities and Exchange Commission (the “SEC”) to Form 10-Q, the following notes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to UNIFI’s year-end audited consolidated financial statements and related notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended June 25, 2017 (the “2017 Form 10-K”). The financial information included in this report has been prepared by UNIFI, without audit. In the opinion of management, all adjustments, which consist of normal, recurring adjustments, considered necessary for a fair statement of the results for interim periods have been included. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the amounts reported and certain financial statement disclosures. Actual results may vary from these estimates. All dollar and other currency amounts and share amounts, except per share amounts, are presented in thousands (000s), except as otherwise noted. The fiscal quarter for Unifi, Inc. and its subsidiary in El Salvador ended on September 24, 2017, the last Sunday in September. The fiscal quarter for Unifi, Inc.’s Brazilian, Chinese, Colombian and Sri Lankan subsidiaries ended on September 30, 2017. There were no significant transactions or events that occurred between Unifi, Inc.’s fiscal quarter end and such wholly owned subsidiaries’ subsequent fiscal quarter end. The three-month periods ended September 24, 2017 and September 25, 2016 each consisted of 13 fiscal weeks. Reclassifications Certain reclassifications of prior years’ data have been made to conform to the current year presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Sep. 24, 2017 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Issued and Pending Adoption In May 2014, the Financial Accounting Standards Board (the “FASB”) issued new accounting guidance for the recognition of revenue from contracts with customers. Subsequent Accounting Standards Updates (“ASUs”) have been issued to provide clarity and defer the effective date of the new guidance. The new revenue recognition standard eliminates the transaction- and industry-specific revenue recognition guidance under current GAAP and replaces it with a principles-based approach. While UNIFI has not yet determined the effect of the new guidance on its ongoing financial reporting, UNIFI notes the following considerations: (i) the Company is primarily engaged in the business of manufacturing and delivering tangible products utilizing relatively straightforward contract terms without multiple performance obligations and (ii) transaction prices for UNIFI’s primary and material revenue activities are determinable and lack significant timing considerations. UNIFI is currently performing the following activities regarding implementation of the new guidance: (a) reviewing material contracts and (b) assessing accounting policy elections and disclosures under the new guidance. In addition, implementation matters remaining include (x) evaluating the systems and processes to support revenue recognition and (y) selecting the method of adoption. The new revenue recognition guidance is effective for the Company’s fiscal 2019. In February 2016, the FASB issued new accounting guidance for leases. The new guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. While UNIFI has not yet determined the full effect of the new guidance on its ongoing financial reporting, as of June 25, 2017, UNIFI had approximately $6,400 of future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) and did not enter into any new material operating lease agreements during the three months ended September 24, 2017. The ASU is effective for UNIFI’s fiscal 2020, and early adoption is permitted. In connection with the SEC Staff Announcement on July 20, 2017 relating to the transition to ASU 2014-09 and ASU 2016-02, due to its status as a significant subsidiary of Unifi, Inc., PAL expects to adopt (i) the new revenue recognition guidance in its fiscal 2019 and (ii) the new lease guidance in its fiscal 2020. Recently Adopted In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 72 In connection with adoption of the ASU, UNIFI has elected to recognize forfeitures as they occur, and there is no corresponding retrospective adjustment to retained earnings. Additionally, UNIFI is presenting the change in classification of excess tax benefits in the condensed consolidated statements of cash flows on a prospective basis. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory Based on UNIFI’s review of ASUs issued since the filing of the 2017 Form 10-K, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a significant impact on UNIFI’s consolidated financial statements. |
Receivables, Net
Receivables, Net | 3 Months Ended |
Sep. 24, 2017 | |
Receivables [Abstract] | |
Receivables, Net | 4. Receivables, Net Receivables, net consists of the following: September 24, 2017 June 25, 2017 Customer receivables $ 82,446 $ 83,291 Allowance for uncollectible accounts (2,212 ) (2,222 ) Reserves for yarn quality claims (1,254 ) (1,278 ) Net customer receivables 78,980 79,791 Other receivables 944 1,330 Total receivables, net $ 79,924 $ 81,121 There have been no material changes in UNIFI’s allowance for uncollectible accounts or reserves for yarn quality claims since June 25, 2017. |
Inventories
Inventories | 3 Months Ended |
Sep. 24, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories Inventories consists of the following: September 24, 2017 June 25, 2017 Raw materials $ 40,366 $ 36,748 Supplies 6,482 6,104 Work in process 8,094 7,399 Finished goods 65,726 63,121 Gross inventories 120,668 113,372 Inventory reserves (2,134 ) (1,967 ) Total inventories $ 118,534 $ 111,405 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Sep. 24, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 6. Property, Plant and Equipment, Net Property, plant and equipment, net (“PP&E”) consists of the following: September 24, 2017 June 25, 2017 Land $ 2,956 $ 2,931 Land improvements 15,079 15,066 Buildings and improvements 158,680 157,115 Assets under capital leases 34,568 34,568 Machinery and equipment 587,011 579,211 Computers, software and office equipment 19,828 19,360 Transportation equipment 4,700 4,798 Construction in progress 4,438 7,371 Gross property, plant and equipment 827,260 820,420 Less: accumulated depreciation (618,324 ) (612,355 ) Less: accumulated amortization – capital leases (5,350 ) (4,677 ) Total PP&E $ 203,586 $ 203,388 Depreciation expense and repair and maintenance expenses were as follows: For the Three Months Ended September 24, 2017 September 25, 2016 Depreciation expense $ 5,123 $ 4,214 Repair and maintenance expenses 4,725 4,240 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Sep. 24, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consists of the following: September 24, 2017 June 25, 2017 Payroll and fringe benefits $ 9,615 $ 10,469 Other 5,726 5,675 Total accrued expenses $ 15,341 $ 16,144 Other consists primarily of accruals for utilities, property taxes, employee-related claims and payments, interest, marketing expenses, freight expenses, rent, other non-income related taxes and deferred revenue. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Sep. 24, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. Long-Term Debt Debt Obligations The following table presents the total balances outstanding for UNIFI’s debt obligations, their scheduled maturity dates and the weighted average interest rates for borrowings as well as the applicable current portion of long-term debt: Weighted Average Scheduled Interest Rate as of Principal Amounts as of Maturity Date September 24, 2017 September 24, 2017 June 25, 2017 ABL Revolver March 2020 3.1% $ 9,600 $ 9,300 ABL Term Loan (1) March 2020 3.3% 92,500 95,000 Capital lease obligations (2) 3.8% 23,383 25,168 Total debt 125,483 129,468 Current portion of capital lease obligations (7,065 ) (7,060 ) Current portion of other long-term debt (10,000 ) (10,000 ) Unamortized debt issuance costs (932 ) (1,026 ) Total long-term debt $ 107,486 $ 111,382 (1) Includes the effects of interest rate swaps. (2) Scheduled maturity dates for capital lease obligations range from July 2018 to November 2027. ABL Facility On March 26, 2015, Unifi, Inc. and its subsidiary, Unifi Manufacturing, Inc., entered into an Amended and Restated Credit Agreement for a $200,000 senior secured credit facility (the “ABL Facility”) with a syndicate of lenders. The ABL Facility consists of a $100,000 revolving credit facility (the “ABL Revolver”) and a term loan that can be reset up to a maximum amount of $100,000, once per fiscal year, if certain conditions are met (the “ABL Term Loan”). The ABL Facility has a maturity date of March 26, 2020. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the remainder of fiscal 2018 and the fiscal years thereafter: Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Thereafter ABL Revolver $ — $ — $ 9,600 $ — $ — $ — ABL Term Loan 7,500 10,000 75,000 — — — Capital lease obligations 5,275 6,996 5,519 2,624 2,418 551 Total $ 12,775 $ 16,996 $ 90,119 $ 2,624 $ 2,418 $ 551 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Sep. 24, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 9. Other Long-Term Liabilities Other long-term liabilities consists of the following: September 24, 2017 June 25, 2017 Uncertain tax positions $ 5,167 $ 5,077 Other 6,086 6,727 Total other long-term liabilities $ 11,253 $ 11,804 Other primarily includes UNIFI’s unfunded supplemental post-employment plan, certain retiree and post-employment medical and disability liabilities, deferred revenue and deferred energy incentive credits. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 24, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The provision for income taxes was as follows: For the Three Months Ended September 24, 2017 September 25, 2016 Provision for income taxes $ 3,196 $ 3,726 Effective tax rate 26.3 % 29.0 % The effective tax rates for the periods presented above are lower than the U.S. statutory tax rate primarily due to foreign income being taxed at lower rates and the benefit of increased research and development credits. These benefits were partially offset by losses in tax jurisdictions for which no tax benefit could be recognized and state and local income taxes net of federal benefits. UNIFI regularly assesses the outcomes of both completed and ongoing examinations to ensure that UNIFI’s provision for income taxes is sufficient. Certain returns that remain open to examination have utilized carryforward tax attributes generated in prior tax years, including net operating losses (“NOLs”), which could potentially be revised upon examination. Components of UNIFI’s deferred tax valuation allowance are as follows: September 24, 2017 June 25, 2017 Investment in a former domestic unconsolidated affiliate $ (6,262 ) $ (6,269 ) Equity-method investment in PAL (1,536 ) (1,520 ) Certain losses carried forward (1) (5,924 ) (5,924 ) State NOLs (108 ) (108 ) Other foreign NOLs (2) (3,149 ) (3,347 ) Foreign tax credits (997 ) (789 ) Total deferred tax valuation allowance $ (17,976 ) $ (17,957 ) (1) Certain U.S. NOLs and capital losses outside the U.S. consolidated tax filing group. (2) Presented net of certain NOL carryforward deferred tax assets. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Sep. 24, 2017 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 11. Shareholders’ Equity Shares Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity Balance at June 25, 2017 18,230 $ 1,823 $ 51,923 $ 339,940 $ (32,880 ) $ 360,806 Options exercised 31 3 216 — — 219 Stock-based compensation — — 965 — — 965 Other comprehensive income, net of tax — — — — 3,174 3,174 Net income — — — 8,960 — 8,960 Balance at September 24, 2017 18,261 $ 1,826 $ 53,104 $ 348,900 $ (29,706 ) $ 374,124 No dividends were paid during the three months ended September 24, 2017 or in the two most recently completed fiscal years. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Sep. 24, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. Stock-Based Compensation The following table provides information as of September 24, 2017 with respect to the number of securities remaining available for future issuance under the Unifi, Inc. 2013 Incentive Compensation Plan (the “2013 Plan”): Authorized under the 2013 Plan 1,000 Plus: Certain awards expired, forfeited or otherwise terminated unexercised 343 Less: Awards granted to employees (666 ) Less: Awards granted to non-employee directors (105 ) Available for issuance under the 2013 Plan 572 During the three months ended September 24, 2017, UNIFI granted stock options to purchase 45 shares of common stock. No stock options were granted by UNIFI during the three months ended September 25, 2016. During the three months ended September 24, 2017, UNIFI granted 64 restricted stock units (“RSUs”). No RSUs were granted by UNIFI during the three months ended September 25, 2016. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 3 Months Ended |
Sep. 24, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 13. Fair Value of Financial Instruments and Non-Financial Assets and Liabilities UNIFI may use derivative financial instruments such as foreign currency forward contracts or interest rate swaps to reduce its ongoing business exposures to fluctuations in foreign currency exchange rates or interest rates. UNIFI does not enter into derivative contracts for speculative purposes. For the three months ended September 24, 2017 and September 25, 2016, there were no significant changes to UNIFI’s assets and liabilities measured at fair value, and there were no transfers into or out of the levels of the fair value hierarchy. UNIFI believes that there have been no significant changes to its credit risk profile or the interest rates available to UNIFI for debt issuances with similar terms and average maturities, and UNIFI estimates that the fair values of its debt obligations approximate the carrying amounts. Other financial instruments include cash and cash equivalents, receivables, accounts payable and accrued expenses. The financial statement carrying amounts of these items approximate the fair value due to their short-term nature. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Sep. 24, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 14. Accumulated Other Comprehensive Loss The components of and the changes in accumulated other comprehensive loss, net of tax, as applicable, consist of the following: Foreign Currency Translation Adjustments Changes in Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at June 25, 2017 $ (32,372 ) $ (508 ) $ (32,880 ) Other comprehensive income, net of tax 2,759 415 3,174 Balance at September 24, 2017 $ (29,613 ) $ (93 ) $ (29,706 ) A summary of the after-tax effects of the components of other comprehensive income (loss), net for the three-month periods ended September 24, 2017 and September 25, 2016 is included in the accompanying condensed consolidated statements of comprehensive income. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 24, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings Per Share The components of the calculation of earnings per share (“EPS”) are as follows: For the Three Months Ended September 24, 2017 September 25, 2016 Net income attributable to Unifi, Inc. $ 8,960 $ 9,403 Basic weighted average shares 18,243 17,966 Net potential common share equivalents – stock options and RSUs 328 387 Diluted weighted average shares 18,571 18,353 Excluded from diluted weighted average shares: Anti-dilutive common share equivalents 264 155 The calculation of EPS is based on the weighted average number of Unifi, Inc.’s common shares outstanding for the applicable period. The calculation of diluted EPS presents the effect of all potential dilutive common shares that were outstanding during the respective period, unless the effect of doing so is anti-dilutive. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates and Variable Interest Entities | 3 Months Ended |
Sep. 24, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates and Variable Interest Entities | 16. Investments in Unconsolidated Affiliates and Variable Interest Entities UNIFI currently maintains investments in three entities classified as unconsolidated affiliates: PAL; U.N.F. Industries, Ltd. (“UNF”); and UNF America LLC (“UNFA”). As of September 24, 2017, UNIFI’s investment in PAL was $111,184 and UNIFI’s combined investments in UNF and UNFA were $4,243, each of which is reflected within investments in unconsolidated affiliates in the accompanying condensed consolidated balance sheets. Parkdale America, LLC PAL is a limited liability company treated as a partnership for income tax reporting purposes. UNIFI accounts for its investment in PAL using the equity method of accounting. PAL is subject to price risk related to anticipated fixed-price yarn sales. To protect the gross margin of these sales, PAL may enter into cotton futures to manage changes in raw material prices. The derivative instruments used are listed and traded on an exchange and are valued using quoted prices classified within Level 1 of the fair value hierarchy. As of September 2017, PAL had no futures contracts designated as cash flow hedges. The reconciliation between UNIFI’s share of the underlying equity of PAL and its investment is as follows: Underlying equity as of September 24, 2017 $ 129,373 Initial excess capital contributions 53,363 Impairment charge recorded by UNIFI in fiscal 2007 (74,106 ) Anti-trust lawsuit against PAL in which UNIFI did not participate 2,652 Cotton rebate adjustments to PAL's depreciation expense (98 ) Investment as of September 24, 2017 $ 111,184 U.N.F. Industries Ltd. Raw material and production services for UNF are provided by Nilit Ltd. under separate supply and services agreements. UNF’s fiscal year end is December 31 and it is a registered Israeli private company located in Migdal Ha-Emek, Israel. UNF America LLC Raw material and production services for UNFA are provided by Nilit America Inc. under separate supply and services agreements. UNFA’s fiscal year end is December 31 and it is a limited liability company treated as a partnership for income tax reporting purposes located in Ridgeway, Virginia. In conjunction with the formation of UNFA, UNIFI entered into a supply agreement with UNF and UNFA whereby UNIFI agreed to purchase all of its first quality nylon POY requirements for texturing (subject to certain exceptions) from either UNF or UNFA. The agreement has no stated minimum purchase quantities and pricing is negotiated every six months, based on market rates. As of September 24, 2017, UNIFI’s open purchase orders related to this agreement were $3,643. UNIFI’s raw material purchases under this supply agreement consist of the following: For the Three Months Ended September 24, 2017 September 25, 2016 UNF $ 608 $ 778 UNFA 5,280 5,388 Total $ 5,888 $ 6,166 As of September 24, 2017 and June 25, 2017, UNIFI had combined accounts payable due to UNF and UNFA of $2,621 and $2,301, respectively. UNIFI has determined that UNF and UNFA are variable interest entities (“VIEs”) and has also determined that UNIFI is the primary beneficiary of these entities, based on the terms of the supply agreement discussed above. As a result, these entities should be consolidated with UNIFI’s financial results. As UNIFI purchases substantially all of the output from the two entities, the two entities’ balance sheets constitute 3% or less of UNIFI’s total assets and total liabilities, and because such balances are not expected to comprise a larger portion in the future, UNIFI has not included the accounts of UNF and UNFA in its consolidated financial statements. The financial results of UNF and UNFA are included in UNIFI’s consolidated financial statements with a one-month lag, using the equity method of accounting and with intercompany profits eliminated in accordance with UNIFI’s accounting policy. Other than the supply agreement discussed above, UNIFI does not provide any other commitments or guarantees related to either UNF or UNFA. Condensed balance sheet and income statement information for UNIFI’s unconsolidated affiliates (including reciprocal balances) is presented in the following tables. PAL is defined as significant and its information is separately disclosed. PAL does not meet the criteria for segment reporting. As of September 24, 2017 PAL Other Total Current assets $ 262,830 $ 10,869 $ 273,699 Noncurrent assets 180,849 1,019 181,868 Current liabilities 59,959 3,579 63,538 Noncurrent liabilities 3,211 — 3,211 Shareholders’ equity and capital accounts 380,509 8,309 388,818 UNIFI’s portion of undistributed earnings 41,908 2,264 44,172 As of June 25, 2017 PAL Other Total Current assets $ 247,820 $ 10,340 $ 258,160 Noncurrent assets 183,418 1,039 184,457 Current liabilities 54,389 3,588 57,977 Noncurrent liabilities 3,263 — 3,263 Shareholders’ equity and capital accounts 373,586 7,791 381,377 For the Three Months Ended September 24, 2017 PAL Other Total Net sales $ 202,791 $ 5,693 $ 208,484 Gross profit 13,710 954 14,664 Income from operations 9,956 509 10,465 Net income 8,346 518 8,864 Depreciation and amortization 9,600 47 9,647 Cash received by PAL under cotton rebate program 2,241 — 2,241 Earnings recognized by PAL for cotton rebate program 3,255 — 3,255 Distributions received 7,178 — — For the Three Months Ended September 25, 2016 PAL Other Total Net sales $ 205,900 $ 6,002 $ 211,902 Gross profit 5,496 1,545 7,041 Income from operations 861 1,085 1,946 Net income 874 1,097 1,971 Depreciation and amortization 11,476 39 11,515 Cash received by PAL under cotton rebate program 4,127 — 4,127 Earnings recognized by PAL for cotton rebate program 3,889 — 3,889 Distributions received — 750 750 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 24, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Collective Bargaining Agreements While employees of UNIFI’s Brazilian operations are unionized, none of the labor force employed by UNIFI’s domestic or other foreign subsidiaries is currently covered by a collective bargaining agreement. Environmental On September 30, 2004, UNIFI completed its acquisition of polyester filament manufacturing assets located in Kinston, North Carolina from Invista S.a.r.l. (“INVISTA”). The land for the Kinston site was leased pursuant to a 99-year ground lease (the “Ground Lease”) with E.I. DuPont de Nemours (“DuPont”). Since 1993, DuPont has been investigating and cleaning up the Kinston site under the supervision of the U.S. Environmental Protection Agency and the North Carolina Department of Environmental Quality (“DEQ”) pursuant to the Resource Conservation and Recovery Act Corrective Action program. The program requires DuPont to identify all potential areas of environmental concern (“AOCs”), assess the extent of containment at the identified AOCs and remediate the AOCs to comply with applicable regulatory standards. Effective March 20, 2008, UNIFI entered into a lease termination agreement associated with conveyance of certain assets at the Kinston site to DuPont. This agreement terminated the Ground Lease and relieved UNIFI of any future responsibility for environmental remediation, other than participation with DuPont, if so called upon, with regard to UNIFI’s period of operation of the Kinston site, which was from 2004 to 2008. At this time, UNIFI has no basis to determine if or when it will have any responsibility or obligation with respect to the AOCs or the extent of any potential liability for the same. UNIFI continues to own property acquired in the 2004 transaction with INVISTA that has contamination from DuPont’s operations and is monitored by DEQ. This site has been remediated by DuPont, and DuPont has received authority from DEQ to discontinue further remediation, other than natural attenuation. Prior to transfer of responsibility to UNIFI, DuPont has a duty to monitor and report the environmental status of the site to DEQ. UNIFI expects to assume that responsibility in fiscal 2018 and will be entitled to receive from DuPont seven years of monitoring and reporting costs, less certain adjustments. At that time, UNIFI will assume responsibility for any future remediation of the site. At this time, UNIFI has no basis to determine if or when it will have any obligation to perform further remediation or the potential cost thereof. Leases UNIFI routinely leases sales and administrative office space, warehousing and distribution centers, manufacturing space, transportation equipment, manufacturing equipment, and other information technology and office equipment from third parties. UNIFI has assumed various financial obligations and commitments in the normal course of its operating and financing activities. Financial obligations are considered to represent known future cash payments that UNIFI is required to make under existing contractual arrangements, such as debt and lease agreements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 24, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. Related Party Transactions For details regarding the nature of certain related party relationships, see Note 24, “Related Party Transactions,” to the consolidated financial statements in the 2017 Form 10-K. Related party receivables consists of the following: September 24, 2017 June 25, 2017 Salem Global Logistics, Inc. $ 7 $ 6 Total related party receivables (included within receivables, net) $ 7 $ 6 Related party payables consists of the following: September 24, 2017 June 25, 2017 Salem Leasing Corporation (included within accounts payable) $ 286 $ 298 Salem Leasing Corporation (capital lease obligation) 929 947 Total related party payables $ 1,215 $ 1,245 Related party transactions in excess of $120 for the current or prior two fiscal years consist of the following amounts for the periods presented: For the Three Months Ended Affiliated Entity Transaction Type September 24, 2017 September 25, 2016 Salem Leasing Corporation Transportation equipment costs and capital lease debt service $ 981 $ 978 Salem Global Logistics, Inc. Freight service income 42 21 |
Business Segment Information
Business Segment Information | 3 Months Ended |
Sep. 24, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | 19. 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 Chief Executive Officer, who is the chief operating decision maker (the “CODM”), in order to assess performance and allocate resources. Characteristics of the organization which were relied upon in making the determination of reportable segments include the nature of the products sold, the organization’s internal 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. UNIFI ’s operating segments are aggregated into three reportable segments based on similarities between the operating segments’ economic characteristics, nature of products sold, type of customer, methods of distribution, and regulatory environment. • The operations within the Polyester Segment exhibit similar long-term economic characteristics and sell into an economic trading zone covered by the North American Free Trade Agreement (“NAFTA”) and the Dominican Republic—Central America Free Trade Agreement (“CAFTA-DR”) to similar customers utilizing similar methods of distribution. These operations derive revenues from polyester-based products with sales primarily to other yarn manufacturers and knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, automotive, home furnishings, industrial and other end-use markets. The Polyester Segment consists of sales and manufacturing operations in the United States and El Salvador. • The operations within the Nylon Segment exhibit similar long-term economic characteristics and sell into an economic trading zone covered by NAFTA and CAFTA-DR to similar customers utilizing similar methods of distribution. The Nylon Segment includes an immaterial operating segment in Colombia that sells similar nylon-based textile products to similar customers in Colombia and Mexico utilizing similar methods of distribution. These operations derive revenues from nylon-based products with sales to knitters and weavers that produce fabric primarily for the apparel and hosiery markets. The Nylon Segment consists of sales and manufacturing operations in the United States and Colombia. • The operations within the International Segment exhibit similar long-term economic characteristics and sell to similar customers utilizing similar methods of distribution in geographic regions that are outside of the economic trading zone covered by NAFTA and CAFTA-DR. The International Segment primarily sells polyester-based products to knitters and weavers that produce fabric for the apparel, automotive, home furnishings, industrial and other end-use markets primarily in the South American and Asian regions. The International Segment includes a manufacturing location in Brazil and sales offices in Brazil, China and Sri Lanka. In addition to UNIFI’s reportable segments, the selected financial information presented below includes an All Other category. All Other consists primarily of for-hire transportation services and Repreve Renewables, LLC (“Renewables”) (up through December 23, 2016, the date of the sale by UNIFI of its 60% equity ownership interest in Renewables). For-hire transportation services revenue is derived from performing common carrier services utilizing UNIFI’s fleet of transportation equipment. Revenue for Renewables was primarily derived from (i) facilitating the use of miscanthus grass as bio-fuel through service agreements and (ii) delivering harvested miscanthus grass to poultry producers for animal bedding. The operations within All Other (i) are not subject to review by the CODM at a level consistent with UNIFI’s other operations, (ii) are not regularly evaluated using the same metrics applied to UNIFI’s other operations and (iii) do not qualify for aggregation with an existing reportable segment. Therefore, such operations are excluded from reportable segments. UNIFI evaluates the operating performance of its segments based upon Segment Profit (Loss), 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 the below financial information, 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 September 24, 2017 Polyester Nylon International All Other Total Net sales $ 87,738 $ 26,827 $ 48,659 $ 1,018 $ 164,242 Cost of sales 78,825 23,513 37,661 951 140,950 Gross profit 8,913 3,314 10,998 67 23,292 Segment depreciation expense 3,867 537 416 65 4,885 Segment Profit $ 12,780 $ 3,851 $ 11,414 $ 132 $ 28,177 For the Three Months Ended September 25, 2016 Polyester Nylon International All Other Total Net sales $ 84,685 $ 28,495 $ 45,344 $ 1,445 $ 159,969 Cost of sales 76,235 25,358 33,074 1,755 136,422 Gross profit (loss) 8,450 3,137 12,270 (310 ) 23,547 Segment depreciation expense 3,108 510 246 252 4,116 Segment Profit (Loss) $ 11,558 $ 3,647 $ 12,516 $ (58 ) $ 27,663 The reconciliations of segment gross profit to consolidated income before income taxes are as follows: For the Three Months Ended September 24, 2017 September 25, 2016 Polyester $ 8,913 $ 8,450 Nylon 3,314 3,137 International 10,998 12,270 All Other 67 (310 ) Segment gross profit 23,292 23,547 Selling, general and administrative expenses 12,863 11,410 Benefit for bad debts (59 ) (367 ) Other operating expense (income), net 315 (70 ) Operating income 10,173 12,574 Interest income (81 ) (146 ) Interest expense 1,185 692 Equity in earnings of unconsolidated affiliates (3,087 ) (840 ) Income before income taxes $ 12,156 $ 12,868 The reconciliations of segment total assets to consolidated total assets are as follows: September 24, 2017 June 25, 2017 Polyester $ 266,795 $ 270,819 Nylon 59,875 57,789 International 91,267 80,824 Segment total assets 417,937 409,432 Other current assets 32,503 27,375 Other PP&E 15,067 14,904 Other non-current assets 170 279 Investments in unconsolidated affiliates 115,427 119,513 Total assets $ 581,104 $ 571,503 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Sep. 24, 2017 | |
Additional Cash Flow Elements And Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 20. Supplemental Cash Flow Information Cash payments for interest and taxes consist of the following: For the Three Months Ended September 24, 2017 September 25, 2016 Interest, net of capitalized interest of $41 and $223, respectively $ 1,048 $ 641 Income taxes, net of refunds 2,450 2,909 Cash payments for taxes shown above consist primarily of income and withholding tax payments made by UNIFI in both U.S. and foreign jurisdictions. Non-Cash Investing and Financing Activities As of September 24, 2017 and June 25, 2017, $2,928 and $3,234, respectively, were included in accounts payable for unpaid capital expenditures. As of September 25, 2016 and June 26, 2016, $4,841 and $4,197, respectively, were included in accounts payable for unpaid capital expenditures. During the three months ended September 25, 2016, UNIFI recorded $2,835 to construction in progress and long-term debt, in connection with a historical construction financing arrangement. |
Basis of Presentation; Conden28
Basis of Presentation; Condensed Notes (Policies) | 3 Months Ended |
Sep. 24, 2017 | |
Accounting Policies [Abstract] | |
Fiscal Period | The fiscal quarter for Unifi, Inc. and its subsidiary in El Salvador ended on September 24, 2017, the last Sunday in September. The fiscal quarter for Unifi, Inc.’s Brazilian, Chinese, Colombian and Sri Lankan subsidiaries ended on September 30, 2017. There were no significant transactions or events that occurred between Unifi, Inc.’s fiscal quarter end and such wholly owned subsidiaries’ subsequent fiscal quarter end. The three-month periods ended September 24, 2017 and September 25, 2016 each consisted of 13 fiscal weeks. |
Reclassification | Reclassifications Certain reclassifications of prior years’ data have been made to conform to the current year presentation. |
Receivables, Net (Tables)
Receivables, Net (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables, net consists of the following: September 24, 2017 June 25, 2017 Customer receivables $ 82,446 $ 83,291 Allowance for uncollectible accounts (2,212 ) (2,222 ) Reserves for yarn quality claims (1,254 ) (1,278 ) Net customer receivables 78,980 79,791 Other receivables 944 1,330 Total receivables, net $ 79,924 $ 81,121 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories Components | Inventories consists of the following: September 24, 2017 June 25, 2017 Raw materials $ 40,366 $ 36,748 Supplies 6,482 6,104 Work in process 8,094 7,399 Finished goods 65,726 63,121 Gross inventories 120,668 113,372 Inventory reserves (2,134 ) (1,967 ) Total inventories $ 118,534 $ 111,405 |
Property, Plant and Equipment31
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment Components | Property, plant and equipment, net (“PP&E”) consists of the following: September 24, 2017 June 25, 2017 Land $ 2,956 $ 2,931 Land improvements 15,079 15,066 Buildings and improvements 158,680 157,115 Assets under capital leases 34,568 34,568 Machinery and equipment 587,011 579,211 Computers, software and office equipment 19,828 19,360 Transportation equipment 4,700 4,798 Construction in progress 4,438 7,371 Gross property, plant and equipment 827,260 820,420 Less: accumulated depreciation (618,324 ) (612,355 ) Less: accumulated amortization – capital leases (5,350 ) (4,677 ) Total PP&E $ 203,586 $ 203,388 |
Schedule of Depreciation Expense and Repair and Maintenance Expense | Depreciation expense and repair and maintenance expenses were as follows: For the Three Months Ended September 24, 2017 September 25, 2016 Depreciation expense $ 5,123 $ 4,214 Repair and maintenance expenses 4,725 4,240 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consists of the following: September 24, 2017 June 25, 2017 Payroll and fringe benefits $ 9,615 $ 10,469 Other 5,726 5,675 Total accrued expenses $ 15,341 $ 16,144 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt Components | The following table presents the total balances outstanding for UNIFI’s debt obligations, their scheduled maturity dates and the weighted average interest rates for borrowings as well as the applicable current portion of long-term debt: Weighted Average Scheduled Interest Rate as of Principal Amounts as of Maturity Date September 24, 2017 September 24, 2017 June 25, 2017 ABL Revolver March 2020 3.1% $ 9,600 $ 9,300 ABL Term Loan (1) March 2020 3.3% 92,500 95,000 Capital lease obligations (2) 3.8% 23,383 25,168 Total debt 125,483 129,468 Current portion of capital lease obligations (7,065 ) (7,060 ) Current portion of other long-term debt (10,000 ) (10,000 ) Unamortized debt issuance costs (932 ) (1,026 ) Total long-term debt $ 107,486 $ 111,382 (1) Includes the effects of interest rate swaps. (2) Scheduled maturity dates for capital lease obligations range from July 2018 to November 2027. |
Scheduled Maturities of Outstanding Debt Obligations | The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the remainder of fiscal 2018 and the fiscal years thereafter: Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Thereafter ABL Revolver $ — $ — $ 9,600 $ — $ — $ — ABL Term Loan 7,500 10,000 75,000 — — — Capital lease obligations 5,275 6,996 5,519 2,624 2,418 551 Total $ 12,775 $ 16,996 $ 90,119 $ 2,624 $ 2,418 $ 551 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities Components | Other long-term liabilities consists of the following: September 24, 2017 June 25, 2017 Uncertain tax positions $ 5,167 $ 5,077 Other 6,086 6,727 Total other long-term liabilities $ 11,253 $ 11,804 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes was as follows: For the Three Months Ended September 24, 2017 September 25, 2016 Provision for income taxes $ 3,196 $ 3,726 Effective tax rate 26.3 % 29.0 % |
Schedule of Components of Deferred Tax Valuation Allowance | Components of UNIFI’s deferred tax valuation allowance are as follows: September 24, 2017 June 25, 2017 Investment in a former domestic unconsolidated affiliate $ (6,262 ) $ (6,269 ) Equity-method investment in PAL (1,536 ) (1,520 ) Certain losses carried forward (1) (5,924 ) (5,924 ) State NOLs (108 ) (108 ) Other foreign NOLs (2) (3,149 ) (3,347 ) Foreign tax credits (997 ) (789 ) Total deferred tax valuation allowance $ (17,976 ) $ (17,957 ) (1) Certain U.S. NOLs and capital losses outside the U.S. consolidated tax filing group. (2) Presented net of certain NOL carryforward deferred tax assets. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Stockholders Equity Note [Abstract] | |
Schedule of Stockholders' Equity | Shares Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity Balance at June 25, 2017 18,230 $ 1,823 $ 51,923 $ 339,940 $ (32,880 ) $ 360,806 Options exercised 31 3 216 — — 219 Stock-based compensation — — 965 — — 965 Other comprehensive income, net of tax — — — — 3,174 3,174 Net income — — — 8,960 — 8,960 Balance at September 24, 2017 18,261 $ 1,826 $ 53,104 $ 348,900 $ (29,706 ) $ 374,124 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Number of Securities Remaining Available for Future Issuance | The following table provides information as of September 24, 2017 with respect to the number of securities remaining available for future issuance under the Unifi, Inc. 2013 Incentive Compensation Plan (the “2013 Plan”): Authorized under the 2013 Plan 1,000 Plus: Certain awards expired, forfeited or otherwise terminated unexercised 343 Less: Awards granted to employees (666 ) Less: Awards granted to non-employee directors (105 ) Available for issuance under the 2013 Plan 572 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax | The components of and the changes in accumulated other comprehensive loss, net of tax, as applicable, consist of the following: Foreign Currency Translation Adjustments Changes in Interest Rate Swaps Accumulated Other Comprehensive Loss Balance at June 25, 2017 $ (32,372 ) $ (508 ) $ (32,880 ) Other comprehensive income, net of tax 2,759 415 3,174 Balance at September 24, 2017 $ (29,613 ) $ (93 ) $ (29,706 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The components of the calculation of earnings per share (“EPS”) are as follows: For the Three Months Ended September 24, 2017 September 25, 2016 Net income attributable to Unifi, Inc. $ 8,960 $ 9,403 Basic weighted average shares 18,243 17,966 Net potential common share equivalents – stock options and RSUs 328 387 Diluted weighted average shares 18,571 18,353 Excluded from diluted weighted average shares: Anti-dilutive common share equivalents 264 155 |
Investments in Unconsolidated40
Investments in Unconsolidated Affiliates and Variable Interest Entities (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Schedule Of Equity Method Investments [Line Items] | |
Schedule of Raw Material Purchases under Supply Agreement | UNIFI’s raw material purchases under this supply agreement consist of the following: For the Three Months Ended September 24, 2017 September 25, 2016 UNF $ 608 $ 778 UNFA 5,280 5,388 Total $ 5,888 $ 6,166 |
Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates | Condensed balance sheet and income statement information for UNIFI’s unconsolidated affiliates (including reciprocal balances) is presented in the following tables. PAL is defined as significant and its information is separately disclosed. PAL does not meet the criteria for segment reporting. As of September 24, 2017 PAL Other Total Current assets $ 262,830 $ 10,869 $ 273,699 Noncurrent assets 180,849 1,019 181,868 Current liabilities 59,959 3,579 63,538 Noncurrent liabilities 3,211 — 3,211 Shareholders’ equity and capital accounts 380,509 8,309 388,818 UNIFI’s portion of undistributed earnings 41,908 2,264 44,172 As of June 25, 2017 PAL Other Total Current assets $ 247,820 $ 10,340 $ 258,160 Noncurrent assets 183,418 1,039 184,457 Current liabilities 54,389 3,588 57,977 Noncurrent liabilities 3,263 — 3,263 Shareholders’ equity and capital accounts 373,586 7,791 381,377 |
Income Statement Information [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates | For the Three Months Ended September 24, 2017 PAL Other Total Net sales $ 202,791 $ 5,693 $ 208,484 Gross profit 13,710 954 14,664 Income from operations 9,956 509 10,465 Net income 8,346 518 8,864 Depreciation and amortization 9,600 47 9,647 Cash received by PAL under cotton rebate program 2,241 — 2,241 Earnings recognized by PAL for cotton rebate program 3,255 — 3,255 Distributions received 7,178 — — For the Three Months Ended September 25, 2016 PAL Other Total Net sales $ 205,900 $ 6,002 $ 211,902 Gross profit 5,496 1,545 7,041 Income from operations 861 1,085 1,946 Net income 874 1,097 1,971 Depreciation and amortization 11,476 39 11,515 Cash received by PAL under cotton rebate program 4,127 — 4,127 Earnings recognized by PAL for cotton rebate program 3,889 — 3,889 Distributions received — 750 750 |
Parkdale America LLC [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Schedule of Reconciliation Between Share of Underlying Equity | The reconciliation between UNIFI’s share of the underlying equity of PAL and its investment is as follows: Underlying equity as of September 24, 2017 $ 129,373 Initial excess capital contributions 53,363 Impairment charge recorded by UNIFI in fiscal 2007 (74,106 ) Anti-trust lawsuit against PAL in which UNIFI did not participate 2,652 Cotton rebate adjustments to PAL's depreciation expense (98 ) Investment as of September 24, 2017 $ 111,184 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Receivables and Payables | Related party receivables consists of the following: September 24, 2017 June 25, 2017 Salem Global Logistics, Inc. $ 7 $ 6 Total related party receivables (included within receivables, net) $ 7 $ 6 Related party payables consists of the following: September 24, 2017 June 25, 2017 Salem Leasing Corporation (included within accounts payable) $ 286 $ 298 Salem Leasing Corporation (capital lease obligation) 929 947 Total related party payables $ 1,215 $ 1,245 |
Schedule of Related Party Transactions | Related party transactions in excess of $120 for the current or prior two fiscal years consist of the following amounts for the periods presented: For the Three Months Ended Affiliated Entity Transaction Type September 24, 2017 September 25, 2016 Salem Leasing Corporation Transportation equipment costs and capital lease debt service $ 981 $ 978 Salem Global Logistics, Inc. Freight service income 42 21 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Segment Reporting [Abstract] | |
Selected Financial Information for Polyester, Nylon, International and Other Segments | Selected financial information is presented below. For the Three Months Ended September 24, 2017 Polyester Nylon International All Other Total Net sales $ 87,738 $ 26,827 $ 48,659 $ 1,018 $ 164,242 Cost of sales 78,825 23,513 37,661 951 140,950 Gross profit 8,913 3,314 10,998 67 23,292 Segment depreciation expense 3,867 537 416 65 4,885 Segment Profit $ 12,780 $ 3,851 $ 11,414 $ 132 $ 28,177 For the Three Months Ended September 25, 2016 Polyester Nylon International All Other Total Net sales $ 84,685 $ 28,495 $ 45,344 $ 1,445 $ 159,969 Cost of sales 76,235 25,358 33,074 1,755 136,422 Gross profit (loss) 8,450 3,137 12,270 (310 ) 23,547 Segment depreciation expense 3,108 510 246 252 4,116 Segment Profit (Loss) $ 11,558 $ 3,647 $ 12,516 $ (58 ) $ 27,663 |
Reconciliations of Segment Gross Profit (Loss) to Consolidated Income Before Income Taxes | The reconciliations of segment gross profit to consolidated income before income taxes are as follows: For the Three Months Ended September 24, 2017 September 25, 2016 Polyester $ 8,913 $ 8,450 Nylon 3,314 3,137 International 10,998 12,270 All Other 67 (310 ) Segment gross profit 23,292 23,547 Selling, general and administrative expenses 12,863 11,410 Benefit for bad debts (59 ) (367 ) Other operating expense (income), net 315 (70 ) Operating income 10,173 12,574 Interest income (81 ) (146 ) Interest expense 1,185 692 Equity in earnings of unconsolidated affiliates (3,087 ) (840 ) Income before income taxes $ 12,156 $ 12,868 |
Reconciliation of Segment Total Assets to Consolidated Total Assets | The reconciliations of segment total assets to consolidated total assets are as follows: September 24, 2017 June 25, 2017 Polyester $ 266,795 $ 270,819 Nylon 59,875 57,789 International 91,267 80,824 Segment total assets 417,937 409,432 Other current assets 32,503 27,375 Other PP&E 15,067 14,904 Other non-current assets 170 279 Investments in unconsolidated affiliates 115,427 119,513 Total assets $ 581,104 $ 571,503 |
Supplemental Cash Flow Inform43
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Sep. 24, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Payments for Interest and Taxes | Cash payments for interest and taxes consist of the following: For the Three Months Ended September 24, 2017 September 25, 2016 Interest, net of capitalized interest of $41 and $223, respectively $ 1,048 $ 641 Income taxes, net of refunds 2,450 2,909 |
Background - Additional Informa
Background - Additional Information (Details) | Sep. 24, 2017Entity |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of countries in which entity operates | 4 |
Parkdale America LLC [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Equity method investment, ownership percentage | 34.00% |
Recent Accounting Pronounceme45
Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Jun. 25, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Estimated future minimum lease payments under non-cancelable operating leases | $ 6,400 | |
ASU 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease to provision for income taxes for excess tax benefits | $ 72 |
Receivables, Net - Schedule of
Receivables, Net - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
Receivables [Abstract] | ||
Customer receivables | $ 82,446 | $ 83,291 |
Allowance for uncollectible accounts | (2,212) | (2,222) |
Reserves for yarn quality claims | (1,254) | (1,278) |
Net customer receivables | 78,980 | 79,791 |
Other receivables | 944 | 1,330 |
Total receivables, net | $ 79,924 | $ 81,121 |
Inventories - Inventories Compo
Inventories - Inventories Components (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 40,366 | $ 36,748 |
Supplies | 6,482 | 6,104 |
Work in process | 8,094 | 7,399 |
Finished goods | 65,726 | 63,121 |
Gross inventories | 120,668 | 113,372 |
Inventory reserves | (2,134) | (1,967) |
Total inventories | $ 118,534 | $ 111,405 |
Property, Plant and Equipment48
Property, Plant and Equipment, Net - Property, Plant and Equipment Components (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | $ 827,260 | $ 820,420 |
Less: accumulated depreciation | (618,324) | (612,355) |
Less: accumulated amortization – capital leases | (5,350) | (4,677) |
Total PP&E | 203,586 | 203,388 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 2,956 | 2,931 |
Land Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 15,079 | 15,066 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 158,680 | 157,115 |
Assets under Capital Leases [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 34,568 | 34,568 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 587,011 | 579,211 |
Computers, Software and Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 19,828 | 19,360 |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | 4,700 | 4,798 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross property, plant and equipment | $ 4,438 | $ 7,371 |
Property, Plant and Equipment49
Property, Plant and Equipment, Net - Schedule of Depreciation Expense and Repair and Maintenance Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 5,123 | $ 4,214 |
Repair and maintenance expenses | $ 4,725 | $ 4,240 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
Payables And Accruals [Abstract] | ||
Payroll and fringe benefits | $ 9,615 | $ 10,469 |
Other | 5,726 | 5,675 |
Total accrued expenses | $ 15,341 | $ 16,144 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Components (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 24, 2017 | Jun. 25, 2017 | ||
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 23,383 | $ 25,168 | |
Total debt | 125,483 | 129,468 | |
Current portion of capital lease obligations | (7,065) | (7,060) | |
Current portion of other long-term debt | (10,000) | (10,000) | |
Unamortized debt issuance costs | (932) | (1,026) | |
Total long-term debt | $ 107,486 | 111,382 | |
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.80% | ||
ABL Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | 2020-03 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.10% | ||
Long-term Debt | $ 9,600 | 9,300 | |
ABL Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | [1] | 2020-03 | |
Weighted average interest rate | [1] | 3.30% | |
Outstanding balances of term loan | [1] | $ 92,500 | $ 95,000 |
[1] | Includes the effects of interest rate swaps. |
Long-Term Debt - Long-Term De52
Long-Term Debt - Long-Term Debt Components (Details) (Parenthetical) | 3 Months Ended |
Sep. 24, 2017 | |
Debt Disclosure [Abstract] | |
Capital lease obligations, scheduled maturity start date | 2018-07 |
Capital lease obligations, scheduled maturity end date | 2027-11 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - ABL Facility [Member] - USD ($) | 3 Months Ended | |
Sep. 24, 2017 | Mar. 26, 2015 | |
Debt Instrument [Line Items] | ||
Debt agreement maximum borrowing capacity | $ 200,000,000 | |
Term loan maximum borrowing capacity | 100,000,000 | |
Debt instrument maturity date | Mar. 26, 2020 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Outstanding Debt Obligations (Details) $ in Thousands | Sep. 24, 2017USD ($) |
Debt Instrument Redemption [Line Items] | |
Fiscal 2,018 | $ 12,775 |
Fiscal 2,019 | 16,996 |
Fiscal 2,020 | 90,119 |
Fiscal 2,021 | 2,624 |
Fiscal 2,022 | 2,418 |
Thereafter | 551 |
Capital Lease Obligations [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2,018 | 5,275 |
Fiscal 2,019 | 6,996 |
Fiscal 2,020 | 5,519 |
Fiscal 2,021 | 2,624 |
Fiscal 2,022 | 2,418 |
Thereafter | 551 |
ABL Revolver [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2,020 | 9,600 |
ABL Term Loan [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2,018 | 7,500 |
Fiscal 2,019 | 10,000 |
Fiscal 2,020 | $ 75,000 |
Other Long-Term Liabilities - O
Other Long-Term Liabilities - Other Long-Term Liabilities Components (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Uncertain tax positions | $ 5,167 | $ 5,077 |
Other | 6,086 | 6,727 |
Total other long-term liabilities | $ 11,253 | $ 11,804 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 3,196 | $ 3,726 |
Effective tax rate | 26.30% | 29.00% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Valuation Allowance (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 | |
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | $ (17,976) | $ (17,957) | |
Investment in Former Domestic Unconsolidated Affiliate [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | (6,262) | (6,269) | |
Equity-method Investment in Parkdale America LLC [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | (1,536) | (1,520) | |
Certain Losses Carried Forward [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | [1] | (5,924) | (5,924) |
State NOLs [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | (108) | (108) | |
Other Foreign NOLs [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | [2] | (3,149) | (3,347) |
Foreign Tax Credits [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred tax valuation allowance | $ (997) | $ (789) | |
[1] | Certain U.S. NOLs and capital losses outside the U.S. consolidated tax filing group. | ||
[2] | Presented net of certain NOL carryforward deferred tax assets. |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Stockholders Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Stockholders Equity [Line Items] | ||
Balance at June 25, 2017 | $ 360,806 | |
Balance (in shares) at June 25, 2017 | 18,229,777 | |
Options exercised | $ 219 | |
Stock-based compensation | 965 | |
Other comprehensive income, net of tax | 3,174 | $ (803) |
Net income | 8,960 | $ 9,403 |
Balance at September 24, 2017 | $ 374,124 | |
Balance (in shares) at September 24, 2017 | 18,261,067 | |
Common Stock [Member] | ||
Stockholders Equity [Line Items] | ||
Balance at June 25, 2017 | $ 1,823 | |
Balance (in shares) at June 25, 2017 | 18,230,000 | |
Options exercised | $ 3 | |
Options exercised (in shares) | 31,000 | |
Balance at September 24, 2017 | $ 1,826 | |
Balance (in shares) at September 24, 2017 | 18,261,000 | |
Capital in Excess of Par Value [Member] | ||
Stockholders Equity [Line Items] | ||
Balance at June 25, 2017 | $ 51,923 | |
Options exercised | 216 | |
Stock-based compensation | 965 | |
Balance at September 24, 2017 | 53,104 | |
Retained Earnings [Member] | ||
Stockholders Equity [Line Items] | ||
Balance at June 25, 2017 | 339,940 | |
Net income | 8,960 | |
Balance at September 24, 2017 | 348,900 | |
Accumulated Other Comprehensive Loss [Member] | ||
Stockholders Equity [Line Items] | ||
Balance at June 25, 2017 | (32,880) | |
Other comprehensive income, net of tax | 3,174 | |
Balance at September 24, 2017 | $ (29,706) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 24, 2017 | Jun. 25, 2017 | Jun. 26, 2016 | |
Stockholders Equity Note [Abstract] | |||
Payments of Dividends | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Number of Securities Remaining Available for Future Issuance (Details) - The 2013 Incentive Compensation Plan [Member] - shares | 47 Months Ended | |
Sep. 24, 2017 | Oct. 23, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Authorized under the 2013 Plan | 1,000,000 | |
Available for issuance under the 2013 Plan | 572,000 | |
Certain Awards Expired, Forfeited or Otherwise Terminated Unexercised [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Plus: Certain awards expired, forfeited or otherwise terminated unexercised | 343,000 | |
Awards Granted to Employees [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Less: Awards granted to employees | (666,000) | |
Awards Granted to Non-Employee Directors [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Less: Awards granted to non-employee directors | (105,000) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - shares | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Stock Options [Member] | Common Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, options, grants in period, gross | 45,000 | 0 |
Restricted Stock Units (RSUs) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 64,000 | 0 |
Fair Value of Financial Instr62
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Additional Information (Details) - USD ($) | Sep. 24, 2017 | Sep. 25, 2016 |
Fair Value Disclosures [Abstract] | ||
Fair value assets and liabilities amount transfers into or out of the levels | $ 0 | $ 0 |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at June 25, 2017 | $ (32,880) | |
Other comprehensive income, net of tax | 3,174 | $ (803) |
Balance at September 24, 2017 | (29,706) | |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at June 25, 2017 | (32,372) | |
Other comprehensive income, net of tax | 2,759 | |
Balance at September 24, 2017 | (29,613) | |
Changes in Interest Rate Swaps [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at June 25, 2017 | (508) | |
Other comprehensive income, net of tax | 415 | |
Balance at September 24, 2017 | $ (93) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Unifi, Inc. | $ 8,960 | $ 9,403 |
Basic weighted average shares | 18,243 | 17,966 |
Net potential common share equivalents – stock options and RSUs | 328 | 387 |
Diluted weighted average shares | 18,571 | 18,353 |
Excluded from diluted weighted average shares: | ||
Anti-dilutive common share equivalents | 264 | 155 |
Investments in Unconsolidated65
Investments in Unconsolidated Affiliates and Variable Interest Entities - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017USD ($)EntityFuturesContract | Jun. 25, 2017USD ($) | |
Schedule Of Equity Method Investments [Line Items] | ||
Unconsolidated Entities, Number | Entity | 3 | |
Equity method investments | $ 115,427 | $ 119,513 |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 111,184 | |
Number of futures contracts designated as cash flow hedges | FuturesContract | 0 | |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 4,243 | |
Purchase commitment, remaining minimum amount committed | 3,643 | |
Accounts payable, related parties | $ 2,621 | $ 2,301 |
Percentage of current and total assets and total liabilities accounted for by equity method investments | 3.00% |
Investments in Unconsolidated66
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Reconciliation Between Share of Underlying Equity (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 115,427 | $ 119,513 |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Underlying equity as of September 24, 2017 | 129,373 | |
Equity method investments | 111,184 | |
Parkdale America LLC [Member] | Initial Excess Capital Contributions [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment difference between carrying amount and underlying equity | 53,363 | |
Parkdale America LLC [Member] | Impairment Charge Recorded in 2007 [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment difference between carrying amount and underlying equity | (74,106) | |
Parkdale America LLC [Member] | Antitrust Lawsuit Against PAL [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment difference between carrying amount and underlying equity | 2,652 | |
Parkdale America LLC [Member] | EAP Adjustments [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment difference between carrying amount and underlying equity | $ (98) |
Investments in Unconsolidated67
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Raw Material Purchases under Supply Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
UNF [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | $ 608 | $ 778 |
UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | 5,280 | 5,388 |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Raw material purchases under supply agreement | $ 5,888 | $ 6,166 |
Investments in Unconsolidated68
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | $ 273,699 | $ 258,160 |
Noncurrent assets | 181,868 | 184,457 |
Current liabilities | 63,538 | 57,977 |
Noncurrent liabilities | 3,211 | 3,263 |
Shareholders’ equity and capital accounts | 388,818 | 381,377 |
UNIFI’s portion of undistributed earnings | 44,172 | |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 262,830 | 247,820 |
Noncurrent assets | 180,849 | 183,418 |
Current liabilities | 59,959 | 54,389 |
Noncurrent liabilities | 3,211 | 3,263 |
Shareholders’ equity and capital accounts | 380,509 | 373,586 |
UNIFI’s portion of undistributed earnings | 41,908 | |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 10,869 | 10,340 |
Noncurrent assets | 1,019 | 1,039 |
Current liabilities | 3,579 | 3,588 |
Shareholders’ equity and capital accounts | 8,309 | $ 7,791 |
UNIFI’s portion of undistributed earnings | $ 2,264 |
Investments in Unconsolidated69
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Schedule Of Equity Method Investments [Line Items] | ||
Net sales | $ 208,484 | $ 211,902 |
Gross profit | 14,664 | 7,041 |
Income from operations | 10,465 | 1,946 |
Net income | 8,864 | 1,971 |
Depreciation and amortization | 9,647 | 11,515 |
Cash received by PAL under cotton rebate program | 2,241 | 4,127 |
Earnings recognized by PAL for cotton rebate program | 3,255 | 3,889 |
Distributions received | 7,178 | 750 |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Net sales | 202,791 | 205,900 |
Gross profit | 13,710 | 5,496 |
Income from operations | 9,956 | 861 |
Net income | 8,346 | 874 |
Depreciation and amortization | 9,600 | 11,476 |
Cash received by PAL under cotton rebate program | 2,241 | 4,127 |
Earnings recognized by PAL for cotton rebate program | 3,255 | 3,889 |
Distributions received | 7,178 | |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Net sales | 5,693 | 6,002 |
Gross profit | 954 | 1,545 |
Income from operations | 509 | 1,085 |
Net income | 518 | 1,097 |
Depreciation and amortization | $ 47 | 39 |
Distributions received | $ 750 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Sep. 30, 2004 | Sep. 24, 2017 |
Commitments And Contingencies Disclosure [Abstract] | ||
The term of a former ground lease | 99 years | |
Number of years of monitoring and reporting costs of an individual site | 7 years |
Related Party Transactions - Re
Related Party Transactions - Related Party Receivables and Payables (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
Related Party Transaction [Line Items] | ||
Related party receivables | $ 7 | $ 6 |
Capital lease obligations | 23,383 | 25,168 |
Total related party payables | 1,215 | 1,245 |
Salem Global Logistics Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 7 | 6 |
Salem Leasing Corporation [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable, related parties | 286 | 298 |
Capital lease obligations | $ 929 | $ 947 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 24, 2017 | Jun. 25, 2017 | Jun. 26, 2016 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Threshold for Individual Disclosure | $ 120 | $ 120 | $ 120 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Salem Leasing Corporation [Member] | ||
Related Party Transaction [Line Items] | ||
Expenses with related party | $ 981 | $ 978 |
Salem Global Logistics Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Revenues from related parties | $ 42 | $ 21 |
Business Segment Information -
Business Segment Information - Additional Information (Details) - Segment | 3 Months Ended | |
Sep. 24, 2017 | Dec. 23, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 3 | |
Repreve Renewables LLC [Member] | ||
Segment Reporting Information [Line Items] | ||
Majority equity ownership interest percentage by parent | 60.00% |
Business Segment Information 75
Business Segment Information - Selected Financial Information for Polyester, Nylon, International and Other Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 164,242 | $ 159,969 |
Cost of sales | 140,950 | 136,422 |
Gross profit | 23,292 | 23,547 |
Segment depreciation expense | 4,885 | 4,116 |
Segment Profit (Loss) | 28,177 | 27,663 |
Polyester [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 87,738 | 84,685 |
Cost of sales | 78,825 | 76,235 |
Gross profit | 8,913 | 8,450 |
Segment depreciation expense | 3,867 | 3,108 |
Segment Profit (Loss) | 12,780 | 11,558 |
Nylon [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 26,827 | 28,495 |
Cost of sales | 23,513 | 25,358 |
Gross profit | 3,314 | 3,137 |
Segment depreciation expense | 537 | 510 |
Segment Profit (Loss) | 3,851 | 3,647 |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 48,659 | 45,344 |
Cost of sales | 37,661 | 33,074 |
Gross profit | 10,998 | 12,270 |
Segment depreciation expense | 416 | 246 |
Segment Profit (Loss) | 11,414 | 12,516 |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,018 | 1,445 |
Cost of sales | 951 | 1,755 |
Gross profit | 67 | (310) |
Segment depreciation expense | 65 | 252 |
Segment Profit (Loss) | $ 132 | $ (58) |
Business Segment Information 76
Business Segment Information - Reconciliations of Segment Gross Profit (Loss) to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit (loss) | $ 23,292 | $ 23,547 |
Selling, general and administrative expenses | 12,863 | 11,410 |
Benefit for bad debts | (59) | (367) |
Other operating expense (income), net | 315 | (70) |
Operating income | 10,173 | 12,574 |
Interest income | (81) | (146) |
Interest expense | 1,185 | 692 |
Equity in earnings of unconsolidated affiliates | (3,087) | (840) |
Income before income taxes | 12,156 | 12,868 |
Polyester [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit (loss) | 8,913 | 8,450 |
Nylon [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit (loss) | 3,314 | 3,137 |
International [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit (loss) | 10,998 | 12,270 |
Other Segments [Member] | ||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||
Gross profit (loss) | $ 67 | $ (310) |
Business Segment Information 77
Business Segment Information - Reconciliation of Segment Total Assets to Consolidated Total Assets (Details) - USD ($) $ in Thousands | Sep. 24, 2017 | Jun. 25, 2017 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 581,104 | $ 571,503 |
Other current assets | 6,921 | 6,468 |
Property, plant and equipment, net | 203,586 | 203,388 |
Other non-current assets | 2,413 | 2,771 |
Investments in unconsolidated affiliates | 115,427 | 119,513 |
Operating Segments [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 417,937 | 409,432 |
Operating Segments [Member] | Polyester [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 266,795 | 270,819 |
Operating Segments [Member] | Nylon [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 59,875 | 57,789 |
Operating Segments [Member] | International [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 91,267 | 80,824 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Other current assets | 32,503 | 27,375 |
Property, plant and equipment, net | 15,067 | 14,904 |
Other non-current assets | 170 | 279 |
Investments in unconsolidated affiliates | $ 115,427 | $ 119,513 |
Supplemental Cash Flow Inform78
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest, net of capitalized interest of $41 and $223, respectively | $ 1,048 | $ 641 |
Income taxes, net of refunds | $ 2,450 | $ 2,909 |
Supplemental Cash Flow Inform79
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2017 | Sep. 25, 2016 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest capitalized | $ 41 | $ 223 |
Supplemental Cash Flow Inform80
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 24, 2017 | Sep. 25, 2016 | Jun. 25, 2017 | Jun. 26, 2016 | |
Supplemental Cash Flow Information [Line Items] | ||||
Capital expenditures incurred but not yet paid | $ 2,928 | $ 4,841 | $ 3,234 | $ 4,197 |
Building and Machinery [Member] | Construction Loans [Member] | ||||
Supplemental Cash Flow Information [Line Items] | ||||
Construction in Progress Expenditures Incurred but Not yet Paid | $ 2,835 |