Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 24, 2018 | Aug. 16, 2018 | Dec. 22, 2017 | |
Document 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 Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 18,373,375 | ||
Entity Public Float | $ 551,124,384 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 24, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 44,890 | $ 35,425 |
Receivables, net | 86,273 | 81,121 |
Inventories | 126,311 | 111,405 |
Income taxes receivable | 10,291 | 9,218 |
Other current assets | 6,529 | 6,468 |
Total current assets | 274,294 | 243,637 |
Property, plant and equipment, net | 205,516 | 203,388 |
Deferred income taxes | 3,288 | 2,194 |
Intangible assets, net | 2,990 | 2,158 |
Investments in unconsolidated affiliates | 112,639 | 119,513 |
Other non-current assets | 3,080 | 613 |
Total assets | 601,807 | 571,503 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 48,970 | 41,499 |
Accrued expenses | 17,720 | 16,144 |
Income taxes payable | 1,317 | 1,351 |
Current portion of long-term debt | 16,996 | 17,060 |
Total current liabilities | 85,003 | 76,054 |
Long-term debt | 113,553 | 111,382 |
Other long-term liabilities | 5,337 | 11,804 |
Income taxes payable | 470 | |
Deferred income taxes | 7,663 | 11,457 |
Total liabilities | 212,026 | 210,697 |
Commitments and contingencies | ||
Common stock, $0.10 par value (500,000,000 shares authorized; 18,352,824 and 18,229,777 shares issued and outstanding as of June 24, 2018 and June 25, 2017, respectively) | 1,835 | 1,823 |
Capital in excess of par value | 56,726 | 51,923 |
Retained earnings | 371,753 | 339,940 |
Accumulated other comprehensive loss | (40,533) | (32,880) |
Total Unifi, Inc. shareholders’ equity | 389,781 | 360,806 |
Total shareholders’ equity | 389,781 | 360,806 |
Total liabilities and shareholders’ equity | $ 601,807 | $ 571,503 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 24, 2018 | 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) | 18,352,824 | 18,229,777 |
Common stock, shares outstanding (in shares) | 18,352,824 | 18,229,777 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 25, 2016 | Sep. 25, 2016 | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |||||||||
Income Statement [Abstract] | |||||||||||||||||||
Net sales | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 171,250 | $ 160,896 | $ 155,155 | $ 159,969 | $ 678,912 | $ 647,270 | $ 643,637 | ||||||||
Cost of sales | 592,484 | 553,106 | 550,005 | ||||||||||||||||
Gross profit | 23,904 | [1] | 16,556 | [1] | 22,676 | [1] | 23,292 | [1] | 27,357 | 21,130 | 22,130 | 23,547 | 86,428 | 94,164 | 93,632 | ||||
Selling, general and administrative expenses | 56,077 | 50,829 | 47,502 | ||||||||||||||||
(Benefit) provision for bad debts | (38) | (123) | 1,684 | ||||||||||||||||
Other operating expense (income), net | 1,590 | (310) | 2,248 | ||||||||||||||||
Operating income | 28,799 | 43,768 | 42,198 | ||||||||||||||||
Interest income | (560) | (517) | (610) | ||||||||||||||||
Interest expense | 4,935 | 3,578 | 3,528 | ||||||||||||||||
Loss on sale of business | 1,662 | 1,662 | |||||||||||||||||
Equity in earnings of unconsolidated affiliates | (5,787) | (4,230) | (8,963) | ||||||||||||||||
Income before income taxes | 30,211 | 43,275 | 48,243 | ||||||||||||||||
(Benefit) provision for income taxes | (1,491) | 10,898 | 15,073 | ||||||||||||||||
Net income including non-controlling interest | 10,764 | 176 | 11,802 | 8,960 | 9,704 | 9,177 | 4,354 | 9,142 | 31,702 | 32,377 | 33,170 | ||||||||
Less: net loss attributable to non-controlling interest | (237) | (261) | (498) | (1,245) | |||||||||||||||
Net income attributable to Unifi, Inc. | $ 10,764 | [2] | $ 176 | [2] | $ 11,802 | [2] | $ 8,960 | [2] | $ 9,704 | [3] | $ 9,177 | [3] | $ 4,591 | [3] | $ 9,403 | [3] | $ 31,702 | $ 32,875 | $ 34,415 |
Net income attributable to Unifi, Inc. per common share: | |||||||||||||||||||
Basic | $ 0.59 | [4] | $ 0.01 | [4] | $ 0.65 | [4] | $ 0.49 | [4] | $ 0.53 | [4] | $ 0.50 | [4] | $ 0.25 | [4] | $ 0.52 | [4] | $ 1.73 | $ 1.81 | $ 1.93 |
Diluted | $ 0.58 | [4] | $ 0.01 | [4] | $ 0.63 | [4] | $ 0.48 | [4] | $ 0.52 | [4] | $ 0.50 | [4] | $ 0.25 | [4] | $ 0.51 | [4] | $ 1.70 | $ 1.78 | $ 1.87 |
[1] | Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with corresponding selling price increases. | ||||||||||||||||||
[2] | Net income attributable to Unifi, Inc. for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain foreign exchange income applicable to fiscal 2015. Net income attributable to Unifi, Inc. for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs in connection with a tax status change unrelated to the federal tax reform legislation signed into law in December 2017. | ||||||||||||||||||
[3] | Net income attributable to Unifi, Inc. for the fiscal quarter ended December 25, 2016 includes a loss on sale of business of $1,662. | ||||||||||||||||||
[4] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Net income including non-controlling interest | $ 31,702 | $ 32,377 | $ 33,170 |
Other comprehensive loss: | |||
Foreign currency translation adjustments | (9,250) | (2,936) | (2,135) |
Changes in interest rate swaps, net of tax of $824, $299 and $0, respectively | 2,243 | (438) | 77 |
Other comprehensive loss, net | (7,653) | (3,129) | (2,852) |
Comprehensive income including non-controlling interest | 24,049 | 29,248 | 30,318 |
Less: comprehensive loss attributable to non-controlling interest | (498) | (1,245) | |
Comprehensive income attributable to Unifi, Inc. | 24,049 | 29,746 | 31,563 |
Unconsolidated Affiliates [Member] | |||
Other comprehensive loss: | |||
Foreign currency translation adjustments | $ (646) | $ 245 | $ (794) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Changes in interest rate swaps, tax | $ 824 | $ 299 | $ 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total Unifi, Inc. Shareholders' Equity [Member] | Non-controlling Interest [Member] |
Balance at Jun. 28, 2015 | $ 299,093 | $ 1,801 | $ 44,261 | $ 278,331 | $ (26,899) | $ 297,494 | $ 1,599 |
Balance (in shares) at Jun. 28, 2015 | 18,007,000 | ||||||
Options exercised | 181 | $ 3 | 178 | 181 | |||
Options exercised (in shares) | 27,000 | ||||||
Stock-based compensation | 2,340 | 2,340 | 2,340 | ||||
Conversion of restricted stock units | $ 2 | (2) | |||||
Conversion of restricted stock units (in shares) | 19,000 | ||||||
Common stock repurchased and retired under publicly announced program | $ (6,211) | $ (21) | (509) | (5,681) | (6,211) | ||
Common stock repurchased and retired under publicly announced program (in shares) | (206,000) | (206,000) | |||||
Excess tax benefit on stock- based compensation plans | $ 120 | 120 | 120 | ||||
Tax deficiency from stock- based compensation plans | (456) | (456) | (456) | ||||
Other comprehensive loss, net of tax | (2,852) | (2,852) | (2,852) | ||||
Contributions from non- controlling interest | 1,560 | 1,560 | |||||
Net income (loss) | 33,170 | ||||||
Net income (loss) attributable to Unifi, Inc. | 34,415 | 34,415 | 34,415 | ||||
Net income (loss) attributable to non-controlling interest | (1,245) | (1,245) | |||||
Balance at Jun. 26, 2016 | 326,945 | $ 1,785 | 45,932 | 307,065 | (29,751) | 325,031 | 1,914 |
Balance (in shares) at Jun. 26, 2016 | 17,847,000 | ||||||
Options exercised | 2,787 | $ 31 | 2,756 | 2,787 | |||
Options exercised (in shares) | 313,000 | ||||||
Stock-based compensation | 2,182 | 2,182 | 2,182 | ||||
Conversion of restricted stock units | $ 7 | (7) | |||||
Conversion of restricted stock units (in shares) | 70,000 | ||||||
Excess tax benefit on stock- based compensation plans | 1,060 | 1,060 | 1,060 | ||||
Other comprehensive loss, net of tax | (3,129) | (3,129) | (3,129) | ||||
Deconsolidation for sale of business | (1,416) | (1,416) | |||||
Net income (loss) | 32,377 | ||||||
Net income (loss) attributable to Unifi, Inc. | 32,875 | 32,875 | 32,875 | ||||
Net income (loss) attributable to non-controlling interest | (498) | $ (498) | |||||
Balance at Jun. 25, 2017 | $ 360,806 | $ 1,823 | 51,923 | 339,940 | (32,880) | 360,806 | |
Balance (in shares) at Jun. 25, 2017 | 18,229,777 | 18,230,000 | |||||
Options exercised | $ 219 | $ 9 | 210 | 219 | |||
Options exercised (in shares) | 123,000 | 86,000 | |||||
Stock-based compensation | $ 5,075 | 5,075 | 5,075 | ||||
Stock-based compensation (in shares) | 4,000 | ||||||
Conversion of restricted stock units | $ 4 | (4) | |||||
Conversion of restricted stock units (in shares) | 47,000 | ||||||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (479) | $ (1) | (478) | (479) | |||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions (in shares) | (14,000) | ||||||
Other comprehensive loss, net of tax | (7,653) | (7,653) | (7,653) | ||||
Adoption of ASU No.2018-02 | Accounting Standards Update No. 2018-02 [Member] | 111 | 111 | 111 | ||||
Net income (loss) | 31,702 | ||||||
Net income (loss) attributable to Unifi, Inc. | 31,702 | 31,702 | 31,702 | ||||
Balance at Jun. 24, 2018 | $ 389,781 | $ 1,835 | $ 56,726 | $ 371,753 | $ (40,533) | $ 389,781 | |
Balance (in shares) at Jun. 24, 2018 | 18,352,824 | 18,353,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Cash and cash equivalents at beginning of year | $ 35,425 | $ 16,646 | $ 10,013 |
Operating activities: | |||
Net income including non-controlling interest | 31,702 | 32,377 | 33,170 |
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: | |||
Equity in earnings of unconsolidated affiliates | (5,787) | (4,230) | (8,963) |
Distributions received from unconsolidated affiliates | 12,236 | 2,322 | 4,732 |
Depreciation and amortization expense | 22,585 | 20,368 | 17,528 |
Loss on sale of business | 1,662 | ||
Non-cash compensation expense | 5,823 | 2,983 | 2,501 |
Excess tax benefit on stock-based compensation plans | (1,060) | (120) | |
Deferred income taxes | (5,797) | 6,886 | 5,983 |
Other, net | (277) | (1,112) | (302) |
Changes in assets and liabilities: | |||
Receivables, net | (7,529) | 1,586 | (88) |
Inventories | (18,198) | (8,519) | 6,843 |
Other current assets | (382) | (1,824) | (304) |
Income taxes | (573) | (4,724) | (1,115) |
Accounts payable and accrued expenses | 8,674 | (1,207) | (5,710) |
Other non-current assets | (229) | (233) | (108) |
Other non-current liabilities | (4,913) | 787 | 1,928 |
Net cash provided by operating activities | 37,335 | 46,062 | 55,975 |
Investing activities: | |||
Capital expenditures | (25,029) | (33,190) | (52,337) |
Proceeds from sale of assets | 94 | 61 | 2,099 |
Other, net | (1,940) | (253) | (2,654) |
Net cash used in investing activities | (26,875) | (33,382) | (52,892) |
Financing activities: | |||
Proceeds from ABL Revolver | 120,500 | 121,800 | 153,200 |
Payments on ABL Revolver | (101,700) | (118,700) | (152,000) |
Payments on ABL Term Loan | (10,000) | (9,750) | (9,250) |
Proceeds from construction financing | 790 | ||
Payment on term loan from equity affiliate | (1,250) | ||
Payments on capital lease obligations | (7,060) | (4,700) | (4,090) |
Common stock repurchased and retired under publicly announced programs | (6,211) | ||
Common stock withheld in satisfaction of tax withholding obligations under net share settle transactions | (206) | ||
Proceeds from stock option exercises | 219 | 2,787 | 181 |
Excess tax benefit on stock-based compensation plans | 1,060 | 120 | |
Contributions from non-controlling interest | 1,560 | ||
Other | (450) | (493) | (783) |
Net cash provided by financing activities | 1,303 | 6,504 | 3,642 |
Effect of exchange rate changes on cash and cash equivalents | (2,298) | (405) | (92) |
Net increase in cash and cash equivalents | 9,465 | 18,779 | 6,633 |
Cash and cash equivalents at end of year | $ 44,890 | 35,425 | 16,646 |
ABL Term Loan [Member] | |||
Financing activities: | |||
Proceeds from issuance of secured debt | $ 14,500 | 17,375 | |
Term Loan Supplement [Member] | |||
Financing activities: | |||
Proceeds from issuance of secured debt | $ 4,000 |
Background
Background | 12 Months Ended |
Jun. 24, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Background | 1. Background Overview 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 (UNIFI’s direct customers) that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial and other end-use markets (UNIFI’s indirect customers). We refer to these indirect customers as “brand partners.” 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 (“Flake”) and polyester polymer beads (“Chip”). Nylon yarns include virgin or recycled textured, solution dyed and spandex covered yarns. UNIFI maintains one of the textile industry’s most comprehensive product offerings that include a range of specialized, premium value-added (“PVA”) and commodity solutions, with principal geographic markets in the Americas and Asia. UNIFI has direct 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 significant unconsolidated affiliate that produces cotton and synthetic yarns for sale to the global textile industry and apparel market. All dollar amounts, except per share amounts, are presented in thousands (000s), unless otherwise noted. Fiscal Year The fiscal year for Unifi, Inc. and its subsidiary in El Salvador ends on the last Sunday in June. Unifi, Inc.’s fiscal 2018, 2017 and 2016 ended on June 24, 2018, June 25, 2017 and June 26, 2016, respectively. Unifi, Inc.’s Brazilian, Chinese, Colombian and Sri Lankan subsidiaries’ fiscal years end on June 30th. There were no significant transactions or events that occurred between the fiscal year ends of Unifi, Inc. and the subsequent fiscal year ends of its wholly owned subsidiaries. Unifi, Inc.’s fiscal 2018, 2017 and 2016 each consisted of 52 fiscal weeks. Reclassifications Certain reclassifications of prior fiscal years’ data have been made to conform to the current presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 24, 2018 | |
Notes To Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies UNIFI follows U.S. generally accepted accounting principles (“GAAP”). The significant accounting policies described below, together with the other notes to the accompanying consolidated financial statements that follow, are an integral part of the consolidated financial statements. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Unifi, Inc. and its subsidiaries in which it maintains a controlling financial interest. All account balances and transactions between Unifi, Inc. and the subsidiaries which it controls have been eliminated. Investments in entities in which UNIFI is able to exercise significant influence, but not control, are accounted for using the equity method. For transactions with entities accounted for under the equity method, any intercompany profits on amounts still remaining are eliminated. Amounts originating from any deferral of intercompany profits are recorded within the account balance to which the transaction specifically relates (e.g., inventory). Only upon settlement of the intercompany transaction with a third party is the deferral of the intercompany profit recognized by UNIFI. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the period. UNIFI’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results may vary from these estimates. These estimates are reviewed periodically to determine if a change is required. Cash and Cash Equivalents Cash equivalents are defined as highly liquid, short-term investments having an original maturity of three months or less. Book overdrafts, for which the bank has not advanced cash, if any, are reclassified to accounts payable and reflected as an offset thereto within the accompanying consolidated statements of cash flows. Receivables Receivables are stated at their net realizable value. Allowances are provided for known and potential losses arising from yarn quality claims and for amounts owed by customers. Reserves for yarn quality claims are based on historical claim experience and known pending claims and are recorded as a reduction of net sales. The allowance for uncollectible accounts is shown as a reduction of operating income and reflects UNIFI’s best estimate of probable losses inherent in its accounts receivable portfolio determined on the basis of historical write off experience, aging of trade receivables, specific allowances for known troubled accounts and other currently available information. Customer accounts are written off against the allowance for uncollectible accounts when they are no longer deemed to be collectible. Inventories UNIFI’s inventories are valued at the lower of cost or net realizable value, with the cost for the majority of its inventory determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies are valued using the average cost method. UNIFI’s estimates for inventory reserves for obsolete, slow-moving or excess inventories are based upon many factors, including historical recovery rates, the aging of inventories on-hand, inventory movement and expected net realizable value of specific products, and current economic conditions. Debt Issuance Costs Debt issuance costs are recorded to long-term debt and amortized as additional interest expense following either the effective interest method or the straight-line method. In the event of any prepayment of its debt obligations, UNIFI accelerates the recognition of a pro-rata amount of issuance costs and records an extinguishment of debt. Property, Plant and Equipment Property, plant and equipment (“PP&E”) are stated at historical cost less accumulated depreciation. Plant and equipment under capital leases are stated at the present value of minimum lease payments less accumulated amortization. Additions or improvements that substantially extend the useful life of a particular asset are capitalized. Depreciation is calculated primarily utilizing the straight-line method over the following useful lives: Asset categories Useful lives in years Land improvements Five to Twenty Buildings and improvements Fifteen to Forty Machinery and equipment Two to Twenty-five Computer, software and office equipment Three to Seven Internal software development costs Three Transportation equipment Three to Fifteen Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining term of the lease. Assets under capital leases are amortized in a manner consistent with UNIFI’s normal depreciation policy if ownership is transferred by the end of the lease, or if there is a bargain purchase option. If such ownership criteria are not met, amortization occurs over the shorter of the lease term or the asset’s useful life. UNIFI capitalizes its costs of developing internal software when the software is used as an integral part of its manufacturing or business processes and the technological feasibility has been established. Internal software costs are amortized over a period of three years and, in accordance with the project type, charged to cost of sales or selling, general and administrative (“SG&A”) expenses. Fully depreciated assets are retained in cost and accumulated depreciation accounts until they are removed from service. In the case of disposals, asset costs and related accumulated depreciation amounts are removed from the accounts, and the net amounts, less proceeds from disposal, are included in the determination of net income and presented within other operating expense (income), net. Repair and maintenance costs related to PP&E, which do not significantly increase the useful life of an existing asset or do not significantly alter, modify or change the capabilities or production capacity of an existing asset are expensed as incurred. Interest is capitalized for capital projects requiring a construction period. PP&E and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Long-lived assets to be disposed of by sale within one year are classified as held for sale and are reported at the lower of carrying amount or fair value less cost to sell. Depreciation ceases for all assets classified as held for sale. Long-lived assets to be disposed of other than by sale are classified as held for use until they are disposed of and these assets are reported at the lower of their carrying amount or estimated fair value. Intangible Assets Finite-lived intangible assets such as customer lists, non-compete agreements, licenses, trademarks and patents are amortized over their estimated useful lives. UNIFI periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets are reviewed for impairment or obsolescence whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. UNIFI has no intangibles with indefinite lives. Investments in Unconsolidated Affiliates UNIFI evaluates its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Derivative Instruments All derivatives are carried on the balance sheet at fair value and are classified according to their asset or liability position and the expected timing of settlement. On the date the derivative contract is entered into, UNIFI may designate the derivative into one of the following categories: • Fair value hedge – a hedge of the fair value of a recognized asset or liability or a firm commitment. Changes in the fair value of derivatives designated and qualifying as fair value hedges, as well as the offsetting gains and losses on the hedged items, are reported in income in the same period. • Cash flow hedge – a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability. The effective portion of gains and losses on cash flow hedges are recorded in accumulated other comprehensive loss, until the underlying transactions are recognized in income. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to current period earnings on the same line item as the underlying transaction. • Net investment hedge – if a derivative is used as a foreign currency hedge of a net investment in a foreign operation, its changes in fair value, to the extent effective as a hedge, are recorded in foreign currency translation adjustments in accumulated other comprehensive loss. Derivatives that are not designated for hedge accounting are marked to market at the end of each period with the changes in fair value recognized in current period earnings. Settlements of any fair value or cash flow derivative contracts are classified as cash flows from operating activities. Fair Value Measurements The accounting guidance for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). Fair value is based on assumptions that market participants would use when pricing the asset or liability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. UNIFI uses the following to measure fair value for its assets and liabilities: • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either indirectly or directly. • Level 3 – Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different tax years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which these items are expected to reverse. UNIFI reviews deferred tax assets to determine if it is more-likely-than-not they will be realized. If UNIFI determines it is not more-likely-than-not that a deferred tax asset will be realized, it records a valuation allowance to reverse the previously recognized benefit. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. UNIFI recognizes tax benefits related to uncertain tax positions if it believes it is more-likely-than-not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. UNIFI accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Penalties and interest related to income tax expense, if incurred, is included in provision for income taxes. Stock-Based Compensation Compensation expense for stock awards is based on the grant date fair value and expensed over the applicable vesting period. UNIFI has a policy of issuing new shares to satisfy stock option exercises and restricted stock unit conversions. For awards with a service condition and a graded vesting schedule, UNIFI has elected an accounting policy of recognizing compensation cost on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was, in-substance, multiple awards. Foreign Currency Translation Assets and liabilities of foreign subsidiaries whose functional currency is other than the U.S. Dollar (“USD”) are translated at exchange rates existing at the respective balance sheet dates. Translation gains and losses are not included in determining net income, but are presented in a separate component of accumulated other comprehensive loss. UNIFI translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Transaction gains and losses are included within other operating expense (income), net. Revenue Recognition UNIFI recognizes revenue when (i) there is persuasive evidence of an arrangement, (ii) the sales price is fixed or determinable, (iii) title and the risks of ownership have been transferred to the customer and (iv) collection of the receivable is reasonably assured. For the sale of goods, revenue recognition occurs primarily upon shipment. For service arrangements, revenue is recognized (a) when transportation services have been completed in accordance with the bill of lading contract or (b) in accordance with contractual agreements with customers utilizing the criteria above. Revenue includes amounts for duties and import taxes, interest billed to customers, and shipping and handling costs billed to customers. Revenue excludes value-added taxes or other sales taxes and includes any applicable deductions for returns and allowances, yarn claims and discounts. Cost of Sales The major components of cost of sales are: (i) materials and supplies, (ii) labor and fringe benefits, (iii) utility and overhead costs associated with manufactured products, (iv) cost of products purchased for resale, (v) shipping, handling and warehousing costs, (vi) research and development costs, (vii) depreciation expense and (viii) all other costs related to production or service activities. Shipping, Handling and Warehousing Costs Shipping, handling and warehousing costs include costs to store goods prior to shipment, prepare goods for shipment and physically move goods to customers. Research and Development Costs Research and development costs include employee costs, production costs related to customer samples, operating supplies, consulting fees and other miscellaneous costs. The cost of research and development is charged to expense as incurred. Research and development costs were as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Research and development costs $ 7,792 $ 7,177 $ 6,907 Selling, General and Administrative Expenses The major components of SG&A expenses are: (i) costs of UNIFI’s sales force, marketing and advertising efforts, and commissions, (ii) costs of maintaining UNIFI’s general and administrative support functions including executive management, information technology, human resources, legal and finance, (iii) amortization of intangible assets and (iv) all other costs required to be classified as SG&A expenses. Advertising Costs Advertising costs are expensed as incurred and included in SG&A expenses. UNIFI’s advertising costs include spending for items such as consumer marketing and branding initiatives, promotional items, trade shows, sponsorships and other programs. Advertising costs were as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Advertising costs $ 3,439 $ 3,070 $ 4,844 Self-Insurance UNIFI self-insures certain risks such as employee healthcare claims. Reserves for incurred but not reported healthcare claims are estimated using historical data, the timeliness of claims processing, medical trends, inflation and any changes, if applicable, in the nature or type of the plan. Contingencies At any point in time, UNIFI may be a party to various pending legal proceedings, claims or environmental actions. Accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and estimable. Any amounts accrued are not discounted. Legal costs such as outside counsel fees and expenses are charged to expense as incurred. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 24, 2018 | |
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 Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . Subsequent ASUs were issued to provide clarity and defer the effective date of the new guidance. The new revenue recognition guidance eliminates the transaction- and industry-specific revenue recognition guidance under current GAAP and replaces it with a principles-based approach. UNIFI has completed a comprehensive identification of contracts that necessitate a change in revenue recognition in connection with the ASUs, and does not expect the impact of the change to be material for revenue streams and contracts existing as of June 24, 2018. UNIFI expects to adopt the related ASUs in fiscal 2019, utilizing the modified retrospective method, recording the impact of open contracts as of June 24, 2018 as an adjustment to the opening balance of fiscal 2019 retained earnings. Relating to the new revenue recognition guidance, UNIFI estimates the pending impact to the opening balance of fiscal 2019 retained earnings under the modified retrospective method is less than $1,000. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Under the guidance in the Securities and Exchange Commission (the “SEC”) Staff Announcement on July 20, 2017 relating to the transition to ASU No. 2014-09 and ASU No. 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. PAL is currently evaluating the impact of the new revenue and lease guidance. Recently Adopted In July 2015, the FASB issued ASU No. 2015-11, Inventory In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business 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. |
Sale of Renewables
Sale of Renewables | 12 Months Ended |
Jun. 24, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Sale of Renewables | 4. Sale of Renewables On December 23, 2016, UNIFI, through a wholly owned foreign subsidiary, entered into a Membership Interest Purchase Agreement (the “RR Agreement”) to sell its 60% equity ownership interest in Repreve Renewables, LLC (“Renewables”) to its existing third-party joint venture partner for $500 in cash and release of certain debt obligations (the “RR Sale”). UNIFI had no continuing involvement in the operations of Renewables subsequent to December 23, 2016. In connection with the RR Sale, UNIFI recognized a $1,662 loss on sale of business, reflecting the difference between the cash consideration received and UNIFI’s portion of Renewables’ net assets on the date of the RR Agreement. The operations of Renewables during the period of UNIFI’s ownership are not reflected as discontinued operations as (i) the enterprise did not have a major effect on UNIFI’s consolidated operations and financial results, (ii) the disposal did not represent a strategic shift and (iii) the enterprise was not an individually significant component. The operations of Renewables up to the date of the RR Sale are reflected in continuing operations within the accompanying consolidated statements of income. The loss on the sale of the business is not relevant to UNIFI’s core operations and is not reflective of the primary revenue or expense activity of UNIFI. Therefore, UNIFI has recorded the loss on the sale of Renewables below operating income within the accompanying consolidated statements of income. |
Receivables, Net
Receivables, Net | 12 Months Ended |
Jun. 24, 2018 | |
Receivables [Abstract] | |
Receivables, Net | 5. Receivables, Net Receivables, net consists of the following: June 24, 2018 June 25, 2017 Customer receivables $ 87,633 $ 83,291 Allowance for uncollectible accounts (2,059 ) (2,222 ) Reserves for yarn quality claims (564 ) (1,278 ) Net customer receivables 85,010 79,791 Related party receivables — 6 Other receivables 1,263 1,324 Total receivables, net $ 86,273 $ 81,121 Other receivables consists primarily of refunds due for non-income related taxes and refunds due from vendors. The changes in UNIFI’s allowance for uncollectible accounts and reserves for yarn quality claims were as follows: Allowance for Uncollectible Accounts Reserves for Yarn Quality Claims Balance at June 28, 2015 $ (1,596 ) $ (581 ) Charged to costs and expenses (1,684 ) (1,886 ) Translation activity (56 ) (4 ) Deductions 497 1,676 Balance at June 26, 2016 $ (2,839 ) $ (795 ) Credited (charged) to costs and expenses 123 (2,719 ) Translation activity 34 3 Deductions 460 2,233 Balance at June 25, 2017 $ (2,222 ) $ (1,278 ) Credited (charged) to costs and expenses 38 (821 ) Translation activity 125 (9 ) Deductions — 1,544 Balance at June 24, 2018 $ (2,059 ) $ (564 ) Amounts credited (charged) to costs and expenses for the allowance for uncollectible accounts are reflected in the (benefit) provision for bad debts and deductions represent amounts written off which were deemed to not be collectible, net of any recoveries. Amounts charged to costs and expenses for the reserves for yarn quality claims are primarily reflected as a reduction of net sales and deductions represent adjustments to either increase or decrease claims based on negotiated amounts or actual versus estimated claim differences. |
Inventories
Inventories | 12 Months Ended |
Jun. 24, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories consists of the following: June 24, 2018 June 25, 2017 Raw materials $ 45,448 $ 36,748 Supplies 7,314 6,104 Work in process 8,834 7,399 Finished goods 66,314 63,121 Gross inventories 127,910 113,372 Inventory reserves (1,599 ) (1,967 ) Total inventories $ 126,311 $ 111,405 The cost for the majority of UNIFI’s inventories is determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies of $39,870 and $33,231 as of June 24, 2018 and June 25, 2017, respectively, were valued under the average cost method. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Jun. 24, 2018 | |
Other Assets Current [Abstract] | |
Other Current Assets | 7. Other Current Assets Other current assets consists of the following: June 24, 2018 June 25, 2017 Vendor deposits $ 3,703 $ 2,992 Prepaid expenses 1,802 2,272 Value-added taxes receivable 1,024 1,197 Other — 7 Total other current assets $ 6,529 $ 6,468 Vendor deposits primarily relates to down payments made toward the purchase of raw materials. Prepaid expenses consists of advance payments for insurance, professional fees, membership dues, subscriptions, marketing and information technology services. Value-added taxes receivable relates to recoverable taxes associated with the sales and purchase activities of UNIFI’s foreign operations. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jun. 24, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | 8. Property, Plant and Equipment, Net PP&E, net consists of the following: June 24, 2018 June 25, 2017 Land $ 2,860 $ 2,931 Land improvements 15,118 15,066 Buildings and improvements 157,354 157,115 Assets under capital leases 34,568 34,568 Machinery and equipment 589,237 579,211 Computers, software and office equipment 19,723 19,360 Transportation equipment 5,029 4,798 Construction in progress 8,651 7,371 Gross PP&E 832,540 820,420 Less: accumulated depreciation (619,654 ) (612,355 ) Less: accumulated amortization – capital leases (7,370 ) (4,677 ) Total property, plant and equipment, net $ 205,516 $ 203,388 Assets under capital leases consists of the following: June 24, 2018 June 25, 2017 Machinery and equipment $ 24,467 $ 24,467 Transportation equipment 6,273 6,273 Building improvements 3,828 3,828 Gross assets under capital leases $ 34,568 $ 34,568 Depreciation expense and repair and maintenance expenses were as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Depreciation expense $ 21,109 $ 18,483 $ 15,269 Repair and maintenance expenses 19,761 18,319 16,819 |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jun. 24, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 9. Intangible Assets, Net Intangible assets, net consists of the following: June 24, 2018 June 25, 2017 Customer lists $ 23,615 $ 23,615 Non-compete agreements 1,925 4,050 Trademarks, licenses and other 185 505 Total intangible assets, gross 25,725 28,170 Accumulated amortization – customer lists (22,527 ) (21,685 ) Accumulated amortization – non-compete agreements (108 ) (3,903 ) Accumulated amortization – trademarks, licenses and other (100 ) (424 ) Total accumulated amortization (22,735 ) (26,012 ) Total intangible assets, net $ 2,990 $ 2,158 In fiscal 2007, UNIFI purchased certain texturing operations that are included in the Polyester Segment. The valuation of the customer list acquired was determined by estimating the discounted net earnings attributable to the customer relationships that were purchased after considering items such as possible customer attrition. Based on the length and trend of the projected cash flows, an estimated useful life of 13 years was determined. The customer list is amortized through December 2019, in a manner which reflects the expected economic benefit that will be received over its 13-year life. The non-compete agreement was fully amortized in fiscal 2018 and removed from the accompanying consolidated balance sheets accordingly. A customer list and a non-compete agreement were recorded in connection with a business combination in fiscal 2014, utilizing similar valuation methods as described in the above fiscal 2007 transaction. The customer list is amortized over a nine-year estimated useful life based on the expected economic benefit. The non-compete agreement is amortized through December 2018 using the straight line method over the five-year term of the agreement. In fiscal 2018, UNIFI purchased certain dyeing assets that are included in the Polyester Segment. The associated non-compete agreement was valued at $1,875 and is amortized using the straight-line method over its five-year term. UNIFI capitalizes costs incurred to register trademarks for REPREVE ® Amortization expense for intangible assets consists of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Customer lists $ 843 $ 1,020 $ 1,233 Non-compete agreements 205 287 323 Trademarks, licenses and other 62 74 145 Total amortization expense $ 1,110 $ 1,381 $ 1,701 The following table presents the expected intangible asset amortization for the next five fiscal years: 2019 2020 2021 2022 2023 Expected amortization $ 1,075 $ 724 $ 442 $ 422 $ 327 |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Jun. 24, 2018 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | 10. Other Non-Current Assets Other non-current assets consists of the following: June 24, 2018 June 25, 2017 Interest rate swaps $ 2,259 $ — Other 821 613 Total other non-current assets $ 3,080 $ 613 On January 5, 2017, February 24, 2017 and June 1, 2017, UNIFI entered into three interest rate swaps with Wells Fargo Bank, N.A. (“Wells Fargo”), with notional amounts of $20,000 (“Swap A”), $30,000 (“Swap B”) and $25,000 (“Swap C”), respectively. The combined designated hedges fix London Interbank Offer Rate (“LIBOR”) at approximately 1.9% for $75,000 of variable rate borrowings through May 24, 2022. In accordance with hedge accounting, each swap is reflected on the accompanying consolidated balance sheets at fair value with a corresponding balance in accumulated other comprehensive loss, and impacts earnings commensurate with the forecasted transaction. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jun. 24, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 11. Accrued Expenses Accrued expenses consists of the following: June 24, 2018 June 25, 2017 Payroll and fringe benefits $ 10,833 $ 10,469 Utilities 2,594 2,562 Property taxes 835 771 Current portion of supplemental post-employment plan 508 42 Other 2,950 2,300 Total accrued expenses $ 17,720 $ 16,144 Other consists primarily of 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 | 12 Months Ended |
Jun. 24, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 12. 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 June 24, 2018 June 24, 2018 June 25, 2017 ABL Revolver March 2020 4.1% $ 28,100 $ 9,300 ABL Term Loan (1) March 2020 3.7% 85,000 95,000 Capital lease obligations (2) 3.8% 18,107 25,168 Total debt 131,207 129,468 Current portion of capital lease obligations (6,996 ) (7,060 ) Current portion of other long-term debt (10,000 ) (10,000 ) Unamortized debt issuance costs (658 ) (1,026 ) Total long-term debt $ 113,553 $ 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. (“UMI”), entered into an Amended and Restated Credit Agreement (as subsequently amended, the “Amended 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”). Such principal increases occurred in November 2015 and November 2016 as discussed in further detail below. The ABL Facility has a maturity date of March 26, 2020. The ABL Facility is secured by a first-priority perfected security interest in substantially all owned property and assets (together with all proceeds and products) of Unifi, Inc., UMI and certain subsidiary guarantors (the “Loan Parties”). It is also secured by a first-priority security interest in all (or 65% in the case of certain first-tier controlled foreign corporations, as required by the lenders) of the stock of (or other ownership interests in) each of the Loan Parties (other than Unifi, Inc.) and certain subsidiaries of the Loan Parties, together with all proceeds and products thereof. If excess availability under the ABL Revolver falls below the defined Trigger Level, a financial covenant requiring the Loan Parties to maintain a fixed charge coverage ratio on a monthly basis of at least 1.05 to 1.00 becomes effective. The Trigger Level as of June 24, 2018 was $23,125. In addition, the ABL Facility contains restrictions on particular payments and investments, including certain restrictions on the payment of dividends and share repurchases. Subject to specific provisions, the ABL Term Loan may be prepaid at par, in whole or in part, at any time before the maturity date, at UNIFI’s discretion. ABL Facility borrowings bear interest at the LIBOR plus an applicable margin of 1.5% to 2.0%, or the Base Rate (as defined below) plus an applicable margin of 0.5% to 1.0%, with interest currently being paid on a monthly basis. The applicable margin is based on (i) the excess availability under the ABL Revolver and (ii) the consolidated leverage ratio, calculated as of the end of each fiscal quarter. The Base Rate means the greater of (a) the prime lending rate as publicly announced from time to time by Wells Fargo, (b) the Federal Funds Rate plus 0.5% and (c) LIBOR plus 1.0%. UNIFI’s ability to borrow under the ABL Revolver is limited to a borrowing base equal to specified percentages of eligible accounts receivable and inventory and is subject to certain conditions and limitations. There is also a monthly unused line fee under the ABL Revolver of 0.25%. As of June 24, 2018, UNIFI was in compliance with all financial covenants in the Amended Credit Agreement and the excess availability under the ABL Revolver was $53,245. At June 24, 2018, the fixed charge coverage ratio was 0.93 to 1.00 and UNIFI had $400 of standby letters of credit, none of which had been drawn upon. Management maintains the capability to quickly and easily improve the fixed charge coverage ratio utilizing existing cash and cash equivalents. On November 18, 2016, pursuant to the principal reset conditions of the Amended Credit Agreement, UNIFI, at its discretion, reset the ABL Term Loan principal balance to $100,000. In connection with the principal reset, the ABL Term Loan is subject to quarterly amortizing payments of $2,500. Capital Lease Obligations There were no capital leases established in fiscal 2018. During fiscal 2017, UNIFI recorded capital leases with an aggregate present value of $14,070. The weighted average interest rate for these capital leases is 3.9%. Scheduled Debt Maturities The following table presents the scheduled maturities of UNIFI’s outstanding debt obligations for the following five fiscal years and thereafter: Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Thereafter ABL Revolver $ — $ 28,100 $ — $ — $ — $ — ABL Term Loan 10,000 75,000 — — — — Capital lease obligations 6,996 5,519 2,624 2,417 91 460 Total $ 16,996 $ 108,619 $ 2,624 $ 2,417 $ 91 $ 460 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Jun. 24, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 13. Other Long-Term Liabilities Other long-term liabilities consists of the following: June 24, 2018 June 25, 2017 Supplemental post-employment plan $ 3,045 $ 2,822 Uncertain tax positions 131 5,077 Other 2,161 3,905 Total other long-term liabilities $ 5,337 $ 11,804 UNIFI maintains an unfunded supplemental post-employment plan for certain management employees. Each employee’s account is credited annually based upon a percentage of the participant’s base salary, with each participant’s balance adjusted quarterly to reflect the returns of a money market fund. Amounts are paid to participants six months after termination of employment. Other primarily includes certain retiree and post-employment medical and disability liabilities, deferred revenue and deferred energy incentive credits. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 24, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Components of Income Before Income Taxes The components of income before income taxes consist of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 United States $ (7,852 ) $ 2,689 $ 21,679 Foreign 38,063 40,586 26,564 Income before income taxes $ 30,211 $ 43,275 $ 48,243 Components of (Benefit) Provision for Income Taxes (Benefit) provision for income taxes consists of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Current: Federal $ (4,918 ) $ (6,082 ) $ 1,545 State (416 ) (130 ) 764 Foreign 9,639 10,224 6,781 Total current tax expense 4,305 4,012 9,090 Deferred: Federal (5,315 ) 6,602 6,304 State (872 ) 162 255 Foreign 391 122 (576 ) Total deferred tax expense (5,796 ) 6,886 5,983 (Benefit) provision for income taxes $ (1,491 ) $ 10,898 $ 15,073 On December 22, 2017, the U.S. government enacted comprehensive tax legislation H.R. 1, formerly known as the Tax Cuts and Jobs Act. H.R. 1 includes significant changes to existing tax law, including a permanent reduction to the U.S. federal corporate income tax rate from 35% to 21%, a one-time mandatory deemed repatriation of foreign earning and profits (the “toll charge”), deductions, credits and business-related exclusions. The permanent reduction to the U.S. federal corporate income tax rate from 35% to 21% was effective January 1, 2018. When a U.S. federal tax rate change occurs during a fiscal year, taxpayers are required to compute a weighted daily average rate for the fiscal year of enactment. As a result of H.R. 1, UNIFI has calculated a U.S. federal corporate income tax rate of 28.27% for its fiscal 2018 tax year. Staff Accounting Bulletin (“SAB”) No. 118 was issued to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to finalize the calculations for certain income tax effects of H.R. 1. In accordance with SAB No. 118, in the quarter ended December 24, 2017, we made reasonable estimates and recorded provisional amounts as described below. Under the transitional provisions of SAB No. 118, we have a one-year measurement period to complete the accounting for the initial tax effects of H.R. 1. We are still in the process of completing that accounting. UNIFI revalued its measurable deferred tax balances based upon the new tax rate at which the temporary differences and carryforwards are expected to reverse. UNIFI recorded a tax benefit of approximately $4,297 as a result of the net change in deferred tax balances. This benefit includes a $203 measurement period adjustment to the provisional deferred rate change benefit previously disclosed, which created an effective rate increase of 0.7%. The accounting for this income tax effect of H.R. 1 is provisional, and includes estimates that may change based on further analysis performed during the one-year measurement period. With respect to the toll charge, UNIFI has recorded a provisional charge of $3,901, net of foreign tax credits, based on the following estimates: (i) earnings and profits of foreign jurisdictions, and (ii) the finalization of taxes paid in foreign jurisdictions, and related foreign tax credits. Additionally, the estimates have been made based on UNIFI’s interpretation of H.R. 1. The U.S. Treasury has indicated in Notice 2018-07 and Notice 2018-26 that it expects to issue further guidance to clarify certain technical aspects of H.R. 1, which could impact UNIFI’s computations and provisional amounts recorded. This charge includes a $2,301 measurement period adjustment to the provisional toll charge previously disclosed, which created an effective rate increase of 7.6%. UNIFI has recorded all known and estimable impacts of H.R. 1 that are effective for fiscal 2018. Future adjustments to the provisional numbers will be recorded as discrete adjustments to income tax expense in the period in which those adjustments become estimable and/or are finalized. UNIFI continues to review the anticipated impacts of the global intangible low-taxed income (“GILTI”), foreign derived intangible income (“FDII”) deduction, and base erosion anti-abuse tax (“BEAT”), which are not effective until fiscal 2019. UNIFI has not recorded any impact associated with either GILTI, FDII or BEAT. Utilization of Net Operating Loss Carryforwards Domestic deferred tax expense for fiscal 2018 includes the utilization of federal net operating loss (“NOL”) carryforwards of $843. Foreign deferred tax expense includes the utilization of NOL carryforwards of $773, $756 and $0 for fiscal 2018, 2017 and 2016, respectively. State deferred tax expense includes the utilization of NOL carryforwards of $116, $26 and $42 for fiscal 2018, 2017 and 2016, respectively. Effective Tax Rate Reconciliation from the federal statutory tax rate to the effective tax rate is as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Federal statutory tax rate 28.3 % 35.0 % 35.0 % Foreign income taxed at different rates (2.4 ) (10.2 ) (7.7 ) Repatriation of foreign earnings and withholding taxes 1.8 1.4 (1.0 ) Repatriation of foreign earnings due to tax reform 23.9 — — Revaluation of U.S. deferred balances due to tax reform (14.2 ) — — Change in valuation allowance (12.9 ) (0.5 ) (3.7 ) Foreign tax credits (11.0 ) — — Domestic production activities deduction 0.5 2.0 (0.5 ) Research and other credits (1.8 ) (5.1 ) 4.8 State income taxes, net of federal tax benefit (3.9 ) 0.2 1.5 Change in uncertain tax positions (15.1 ) 1.8 1.2 Nondeductible compensation 1.6 — — Nondeductible expenses and other 0.3 0.6 1.6 Effective tax rate (4.9 )% 25.2 % 31.2 % The effective tax rate for fiscal 2018 benefited from, among other things, (i) the release of uncertain tax positions due to settlement with tax authorities, (ii) the deferred tax benefit resulting from the revaluation of UNIFI’s domestic deferred tax balances for the lower U.S. statutory rate (including valuation allowances on domestic deferred tax assets), (iii) the release of a valuation allowance on certain NOLs outside the U.S. consolidated group that are now able to be utilized and (iv) a reduction in the valuation allowance related to foreign NOLs utilized in fiscal 2018. These benefits were partially offset by (a) the one-time deemed mandatory repatriation of foreign earnings, net of foreign tax credits, (b) withholding taxes on repatriation of foreign earnings and (c) nondeductible compensation. The effective tax rate for fiscal 2017 benefited from, among other things, (i) a lower overall effective tax rate for UNIFI’s foreign earnings (reflecting free-trade zone sales in El Salvador and lower statutory tax rates in both Brazil and China), (ii) increased research and development credits, (iii) a decrease in the valuation allowance reflecting the recognition of lower taxable income versus book income for UNIFI’s investment in PAL (for which UNIFI maintains a full valuation allowance) and (iv) a reduction in the valuation allowance related to foreign NOLs utilized in 2017. These benefits were partially offset by (a) a reduction in the domestic production activities deduction due to the carryback of certain losses, (b) an increase in uncertain tax positions and (c) withholding taxes on repatriation of foreign earnings. The effective tax rate for fiscal 2016 benefited from, among other things, (i) a lower overall effective tax rate for UNIFI’s foreign earnings (reflecting free-trade zone sales in El Salvador and lower statutory tax rates in both Brazil and China), (ii) a decrease in the valuation allowance reflecting the recognition of lower taxable income versus book income for UNIFI’s investment in PAL (for which UNIFI maintains a full valuation allowance) and (iii) a reduction in the valuation allowance related to foreign tax credits utilized in fiscal 2016. These benefits were partially offset by (a) utilization of foreign tax credits, (b) an increase in the valuation allowance for NOLs, including Renewables, for which no tax benefit could be recognized, (c) state and local taxes net of the assumed federal benefit and (d) an increase in uncertain tax positions. Deferred Income Taxes The significant components of UNIFI’s deferred tax assets and liabilities consist of the following: June 24, 2018 June 25, 2017 Deferred tax assets: Investments, including unconsolidated affiliates $ 5,429 $ 7,737 State tax credits 411 338 Accrued liabilities and valuation reserves 2,829 3,952 NOL carryforwards 10,008 7,854 Intangible assets, net 2,089 3,932 Incentive compensation plans 2,130 2,487 Foreign tax credits 5,430 789 Capital loss carryforward 1,105 1,746 Research credit carryforward — 1,115 Other items 2,226 5,224 Total gross deferred tax assets 31,657 35,174 Valuation allowance (15,143 ) (17,957 ) Net deferred tax assets 16,514 17,217 Deferred tax liabilities: PP&E (20,153 ) (26,417 ) Other (736 ) (63 ) Total deferred tax liabilities (20,889 ) (26,480 ) Net deferred tax liabilities $ (4,375 ) $ (9,263 ) Deferred Income Taxes - Valuation Allowance In assessing its ability to realize deferred tax assets, UNIFI considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. UNIFI considers the scheduled reversal of taxable temporary differences, taxable income in carryback years, projected future taxable income and tax planning strategies in making this assessment. Since UNIFI operates in multiple jurisdictions, the assessment is made on a jurisdiction-by-jurisdiction basis, taking into account the effects of local tax law. The balances and activity for UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Balance at beginning of year $ (17,957 ) $ (13,550 ) $ (15,606 ) Decrease (increase) in valuation allowance 2,814 (4,407 ) 2,056 Balance at end of year $ (15,143 ) $ (17,957 ) $ (13,550 ) Components of UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Investment in a former domestic unconsolidated affiliate $ (3,942 ) $ (6,269 ) $ (6,418 ) Equity-method investment in PAL (1,580 ) (1,520 ) (2,102 ) Certain losses carried forward (1) (1,562 ) (5,924 ) (5,030 ) State NOLs (169 ) (108 ) — Other foreign NOLs (2,460 ) (3,347 ) — Foreign tax credits (5,430 ) (789 ) — Total deferred tax valuation allowance $ (15,143 ) $ (17,957 ) $ (13,550 ) (1) Certain U.S. NOLs and capital losses outside the U.S. consolidated tax filing group. During fiscal 2018, UNIFI’s valuation allowance decreased by $2,814. The decrease consisted of (i) the release of a $3,808 valuation allowance on NOLs outside the U.S. consolidated tax filing group that are now able to be utilized, (ii) a decrease of $3,433 related to U.S. deferred tax assets to reflect the lower federal ending deferred tax rate and (iii) a decrease of $917 related to foreign NOLs utilized in 2018. The decrease was partially offset by (a) an increase of $4,640 related to foreign tax credit carryforwards for which no benefit can be realized and (b) an increase of $635 related to UNIFI’s investment in PAL due to the timing of PAL’s taxable income versus book income. During fiscal 2017, UNIFI’s valuation allowance increased by $4,407. The increase consisted primarily of (i) $4,241 of foreign losses and (ii) $789 of foreign tax credit carryforwards for which no benefit can be recognized. The increase was partially offset by a net decrease of $582 related to UNIFI’s investment in PAL due to the timing of PAL’s taxable income versus book income. During fiscal 2016, UNIFI’s valuation allowance decreased by $2,056. The decrease consisted primarily of (i) a decrease of $1,159 related to UNIFI’s investment in PAL due to the timing of PAL’s taxable income versus book income and (ii) the utilization of $1,680 of foreign tax credits. The decrease was partially offset by a net increase of $858 related to UNIFI’s investment in Renewables and related NOLs as a result of its continued losses. Recognized Tax Benefits A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Balance at beginning of year $ 5,236 $ 4,532 $ 4,029 Gross increases related to current period tax positions 324 473 110 Gross (decreases) increases related to tax positions in prior periods (119 ) 711 1,058 Gross decreases related to settlements with tax authorities (5,234 ) (480 ) (274 ) Gross decreases related to lapse of applicable statute of limitations — — (391 ) Balance at end of year $ 207 $ 5,236 $ 4,532 In fiscal 2018, UNIFI recognized a benefit related to the realization of unrecognized tax benefits resulting from settlements with tax authorities. UNIFI received a notice of audit dated June 29, 2017 from the Department of the Treasury, Internal Revenue Service (the “IRS”); the tax periods under audit were fiscal years 2013, 2014 and 2015. On June 21, 2018, the IRS completed its examination. Unrecognized tax benefits would generate a favorable impact of $130 on UNIFI’s effective tax rate when recognized. UNIFI does not expect material changes in uncertain tax positions within the next 12 months. The reversal of interest and penalties recognized by UNIFI within the provision for income taxes was $(1,030), $(42) and $(23) for fiscal 2018, 2017, and 2016, respectively. UNIFI had $41, $773 and $279 accrued for interest and/or penalties related to uncertain tax positions as of June 24, 2018, June 25, 2017 and June 26, 2016, respectively. Expiration of Net Operating Loss Carryforwards and Foreign Tax Credits As of June 24, 2018, UNIFI had U.S. federal NOL carryforwards of $19,511. Of these carryforwards, $6,930 can be carried forward indefinitely, and $12,581 will begin to expire in fiscal 2037 if unused. As of June 24, 2018, UNIFI had U.S. federal NOL carryforwards held outside the U.S. consolidated tax filing group of $6,914. These carryforwards, if unused, will begin to expire in fiscal 2035. As of June 24, 2018, UNIFI had U.S. federal capital loss carryforwards held outside the U.S. consolidated tax filing group of $4,489, which carry a full valuation allowance. These carryforwards, if unused, will begin to expire in fiscal 2027. As of June 24, 2018, UNIFI had $43,589 of U.S. state NOL carryforwards that may be used to offset future taxable income, $8,426 of which are offset by a valuation allowance. Of these carryforwards, $868 can be carried forward indefinitely, and $42,721 will begin to expire in fiscal 2022 if unused. As of June 24, 2018, the Company also had U.S. state NOL carryforwards held outside the U.S. consolidated tax filing group of $19,192, $12,279 of which are offset by a valuation allowance. These carryforwards, if unused, will begin to expire in fiscal 2019. As of June 24, 2018, UNIFI had foreign NOL carryforwards of $9,866, which are offset by a full valuation allowance. These carryforwards, if unused, will begin to expire in fiscal 2019. As of June 24, 2018, UNIFI had U.S. federal foreign tax credits of $3,791, which are offset by a full valuation allowance. These carryforwards, if unused, will begin to expire in fiscal 2028. As of June 24, 2018, UNIFI had foreign tax credits in foreign jurisdictions of $1,639 with no expiration, which are offset by a full valuation allowance. Tax Years Subject to Examination Unifi, Inc. and its domestic subsidiaries file a consolidated federal income tax return, as well as income tax returns in multiple state and foreign jurisdictions. The tax years subject to examination vary by jurisdiction. UNIFI regularly assesses the outcomes of both completed and ongoing examinations to ensure that UNIFI’s provision for income taxes is sufficient. In fiscal 2018, the IRS examined UNIFI’s federal income tax returns for fiscal 2014 and 2015, and re-examined the federal income tax return for fiscal 2013. The examination closed with no proposed adjustments. In fiscal 2016, the IRS examined UNIFI’s federal income tax return for fiscal 2013. The examination closed with no material assessment. In fiscal 2016, the North Carolina Department of Revenue initiated an audit for tax periods ending June 24, 2012 to June 28, 2015. The audit was not concluded at the end of fiscal 2018. No material assessment is anticipated. UNIFI is currently under appeal in Colombia for tax years 2006 and 2007. UNIFI believes it is more-likely-than-not to conclude the appeal with no material assessment. Statutes related to material foreign jurisdictions are open from January 1, 2013 and material state jurisdictions from June 29, 2014. Certain carryforward tax attributes generated in years prior remain subject to examination and could change in subsequent tax years. Indefinite Reinvestment Assertion As of June 24, 2018, U.S. income taxes and foreign withholding taxes were not provided for on a cumulative total of approximately $113,855 of undistributed earnings of UNIFI’s foreign subsidiaries. UNIFI intends to reinvest these earnings indefinitely in its foreign subsidiaries. If at a later date, these earnings were to be repatriated to the United States, UNIFI would be required to accrue and pay state income and/or foreign local withholding taxes on these amounts. Determination of the amount of any unrecognized deferred tax liability on these undistributed earnings is not practicable. UNIFI will continue to assess the existing circumstances, including any changes in tax laws, and reevaluate the necessity for any deferred tax liability. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 24, 2018 | |
Stockholders Equity Note [Abstract] | |
Shareholders' Equity | 15. Shareholders’ Equity On April 23, 2014, UNIFI announced that its Board of Directors (the “Board”) had approved a stock repurchase program (the “SRP”) under which UNIFI is authorized to acquire up to $50,000 of its common stock. The SRP has no stated expiration or termination date, and there is no time limit or specific time frame otherwise for repurchases. Under the SRP, purchases may be completed in accordance with SEC regulations at prevailing market prices, through open market purchases or privately negotiated transactions, at such times and prices and in such manner as determined by management, subject to market conditions, applicable legal requirements, contractual obligations and other factors. Repurchases, if any, are expected to be financed through cash generated from operations and borrowings under the ABL Revolver, and are subject to applicable limitations and restrictions as set forth in the ABL Facility. UNIFI may discontinue repurchases at any time that management determines additional purchases are not beneficial or advisable. The following table summarizes UNIFI’s repurchases and retirements of its common stock under the SRP for the fiscal periods noted. Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs Fiscal 2014 251 $ 23.19 Fiscal 2015 349 $ 29.72 Fiscal 2016 206 $ 30.13 Fiscal 2017 — $ — Fiscal 2018 — $ — Total 806 $ 27.79 $ 27,603 All repurchased shares have been retired and have the status of authorized and unissued shares. The cost of the repurchased shares is recorded as a reduction to common stock to the extent of the par value of the shares acquired and the remainder is allocated between capital in excess of par value, on a pro rata basis, and retained earnings. No dividends were paid in the three most recent fiscal years. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 24, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 16. Stock-Based Compensation On October 23, 2013, UNIFI’s shareholders approved the Unifi, Inc. 2013 Incentive Compensation Plan (the “2013 Plan”). The 2013 Plan replaced the 2008 Unifi, Inc. Long-Term Incentive Plan (the “2008 LTIP”). No additional awards can be granted under the 2008 LTIP; however, prior awards outstanding under the 2008 LTIP remain subject to that plan’s provisions. The 2013 Plan authorized the issuance of 1,000 shares of common stock, subject to certain increases in the event outstanding awards under the 2008 LTIP expire, are forfeited or otherwise terminate unexercised. The following table provides information as of June 24, 2018 with respect to the number of securities remaining available for future issuance under the 2013 Plan: Authorized under the 2013 Plan 1,000 Plus: Awards expired, forfeited or otherwise terminated unexercised from the 2008 LTIP or the 2013 Plan 369 Less: Awards granted to employees (720 ) Less: Awards granted to non-employee directors (135 ) Available for issuance under the 2013 Plan 514 Stock Options During fiscal 2018, 2017 and 2016, UNIFI granted stock options to purchase 73, 153 and 82 shares of its common stock, respectively, to certain key employees. The stock options vest ratably over the required three-year service period and have 10-year contractual terms. For fiscal 2018, 2017 and 2016, the weighted average exercise price of the stock options granted was $32.61, $28.82 and $32.36 per share, respectively. UNIFI used the Black-Scholes model to estimate the weighted average grant date fair value of $11.14, $10.13 and $20.27 per share, respectively. For stock options granted, the valuation models used the following assumptions: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Expected term (years) 5.2 5.0 7.6 Risk-free interest rate 2.0 % 1.4 % 2.1 % Volatility 34.3 % 37.9 % 60.5 % Dividend yield — — — UNIFI uses historical data to estimate the expected term and volatility. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant for periods corresponding with the expected term of the stock options. A summary of stock option activity for fiscal 2018 is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 25, 2017 478 $ 19.93 Granted 73 $ 32.61 Exercised (123 ) $ 12.49 Cancelled or forfeited (23 ) $ 32.82 Expired — $ — Outstanding at June 24, 2018 405 $ 23.73 6.4 $ 3,244 Vested and expected to vest as of June 24, 2018 405 $ 23.73 6.4 $ 3,244 Exercisable at June 24, 2018 246 $ 19.49 4.9 $ 2,976 At June 24, 2018, all stock options subject to a market condition were vested. At June 24, 2018, the remaining unrecognized compensation cost related to the unvested stock options was $707, which is expected to be recognized over a weighted average period of 1.4 years. For fiscal 2018, 2017 and 2016, the total intrinsic value of stock options exercised was $2,703, $5,802 and $598, respectively. The amount of cash received from the exercise of stock options was $219, $2,787 and $181 for fiscal 2018, 2017 and 2016, respectively. The tax benefit realized from stock options exercised was $398, $1,517 and $155 for fiscal 2018, 2017 and 2016, respectively. Restricted Stock Units During fiscal 2018, 2017 and 2016, UNIFI granted 86, 150 and 20 restricted stock units (“RSUs”), respectively, to certain key employees. The employee RSUs are subject to a vesting restriction and convey no rights of ownership in shares of Company common stock until such employee RSUs have vested and been distributed to the grantee in the form of Company common stock. The employee RSUs vest over a three-year period, and will be converted into an equivalent number of shares of Company common stock (for distribution to the grantee) on each vesting date, unless the grantee has elected to defer the receipt of the shares of stock until separation from service. UNIFI estimated the fair value of each employee RSU granted during fiscal 2018, 2017 and 2016 to be $32.16, $27.66 and $27.46 respectively. During fiscal 2018, 2017 and 2016, UNIFI granted 30, 31 and 28 RSUs, respectively, to UNIFI’s non-employee directors. The director RSUs became fully vested on the grant date. The director RSUs convey no rights of ownership in shares of Company common stock until such director RSUs have been distributed to the grantee in the form of Company common stock. The vested director RSUs will be converted into an equivalent number of shares of Company common stock and distributed to the grantee following the grantee’s termination of service as a member of the Board. With respect to the RSUs granted in fiscal 2017 and 2016, the grantee may elect to defer receipt of the shares of Company common stock in accordance with the deferral options provided under the Unifi, Inc. Director Deferred Compensation Plan. UNIFI estimated the fair value of each director RSU granted during fiscal 2018, 2017 and 2016 to be $35.83, $29.09 and $28.08, respectively. UNIFI estimates the fair value of RSUs based on the market price of UNIFI’s common stock at the award grant date. A summary of the RSU activity for fiscal 2018 is as follows: Non-vested Weighted Average Grant Date Fair Value Vested Total Weighted Average Grant Date Fair Value Outstanding at June 25, 2017 150 $ 27.66 131 281 $ 25.02 Granted 116 $ 33.12 — 116 $ 33.12 Vested (64 ) $ 31.39 64 — $ — Converted — $ — (47 ) (47 ) $ 26.35 Cancelled or forfeited (4 ) $ 36.31 — (4 ) $ 36.31 Outstanding at June 24, 2018 198 $ 29.50 148 346 $ 27.45 At June 24, 2018, the number of RSUs vested and expected to vest was 346, with an aggregate intrinsic value of $10,918. The aggregate intrinsic value of the 148 vested RSUs at June 24, 2018 was $4,650. The remaining unrecognized compensation cost related to the unvested RSUs at June 24, 2018 was $3,340, which is expected to be recognized over a weighted average period of 1.7 years. For fiscal 2018, 2017 and 2016, the total intrinsic value of RSUs converted was $1,620, $2,120 and $553, respectively. The tax benefit realized from the conversion of RSUs was $247, $806 and $221 for fiscal 2018, 2017 and 2016, respectively. Summary The total cost charged against income related to all stock-based compensation arrangements was as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Stock options $ 884 $ 749 $ 1,379 RSUs 4,042 1,432 961 Total compensation cost $ 4,926 $ 2,181 $ 2,340 The total income tax benefit recognized for stock-based compensation was $442, $599 and $592 for fiscal 2018, 2017 and 2016, respectively. As of June 24, 2018, total unrecognized compensation costs related to all unvested stock-based compensation arrangements were $4,047. The weighted average period over which these costs are expected to be recognized is 1.6 years. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Jun. 24, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Plan | 17. Defined Contribution Plan UNIFI matches employee contributions made to the Unifi, Inc. Retirement Savings Plan (the “401(k) Plan”), a 401(k) defined contribution plan, which covers eligible domestic salary and hourly employees. Under the terms of the 401(k) Plan, UNIFI matches 100% of the first 3% of eligible employee contributions and 50% of the next 2% of eligible contributions. The following table presents the employer matching contribution expense related to the 401(k) Plan: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Matching contribution expense $ 2,643 $ 2,538 $ 2,331 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 12 Months Ended |
Jun. 24, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 18. Fair Value of Financial Instruments and Non-Financial Assets and Liabilities Financial Instruments 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. Foreign Currency Forward Contracts UNIFI may enter into foreign currency forward contracts as economic hedges for exposures related to certain sales, inventory purchases and equipment purchases which are denominated in currencies that are not its functional currency. Foreign currency forward contracts are not designated as hedges by UNIFI and are marked to market each period and offset by the foreign exchange (gains) losses included in other operating expense (income), net resulting from the underlying exposures of the foreign currency denominated assets and liabilities. As of June 24, 2018 and June 25, 2017, there were no outstanding foreign currency forward contracts. However, UNIFI utilized a foreign currency forward contract during fiscal 2017, for which the impact to the consolidated financial statements was insignificant. Interest Rate Swaps UNIFI’s primary debt obligations utilize variable-rate LIBOR, exposing the Company to variability in interest payments due to changes in interest rates. Management enters into LIBOR-based interest rate swap agreements to manage fluctuations in cash flows resulting from changes in the benchmark LIBOR. Under the terms of the interest rate swaps, UNIFI effectively receives LIBOR-based variable interest rate payments and makes fixed interest rate payments, thereby fixing the variable rate cash flows on the notional amount of debt obligations. On January 5, 2017, February 24, 2017 and June 1, 2017, UNIFI entered into Swap A, Swap B and Swap C. The combined designated hedges fix LIBOR at approximately 1.9% for $75,000 of variable rate borrowings through May 24, 2022. In accordance with hedge accounting, each swap is reflected on the balance sheet at fair value with a corresponding balance in accumulated other comprehensive loss, and impacts earnings commensurate with the forecasted transaction. On May 18, 2012, UNIFI entered into a five-year, $50,000 interest rate swap (“Swap D”) with Wells Fargo to provide a hedge against the variability of cash flows related to LIBOR-based variable rate borrowings under the ABL Facility. On November 26, 2012, UNIFI de-designated Swap D as a cash flow hedge. Swap D allowed UNIFI to fix LIBOR at 1.06% and terminated on May 24, 2017. See Note 19, “Accumulated Other Comprehensive Loss,” for detail regarding the reclassifications of amounts from accumulated other comprehensive loss related to Swap D. Contingent Consideration In December 2013, UNIFI acquired certain draw-winding assets in a business combination and recorded a $2,500 contingent consideration liability (Level 3 classification in the fair value hierarchy). There has been no material fair value activity relevant to the contingent consideration since its establishment, and the balance at June 24, 2018 is primarily a result of the life-to-date payments made. UNIFI’s financial assets and liabilities accounted for at fair value on a recurring basis and the level within the fair value hierarchy used to measure these items are as follows: As of June 24, 2018 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other non-current assets Level 2 $ 584 Swap B USD $ 30,000 Other non-current assets Level 2 $ 877 Swap C USD $ 25,000 Other non-current assets Level 2 $ 798 Contingent consideration — Accrued expenses Level 3 $ 529 As of June 25, 2017 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other long-term liabilities Level 2 $ 243 Swap B USD $ 30,000 Other long-term liabilities Level 2 $ 364 Swap C USD $ 25,000 Other long-term liabilities Level 2 $ 201 Contingent consideration — Accrued expenses and other long-term liabilities Level 3 $ 925 Estimates for the fair value of UNIFI’s derivative contracts are obtained from month-end market quotes for contracts with similar terms. Swaps A, B and C, designated hedges, impacted interest expense for fiscal 2018 and 2017 by $319 and $42, respectively. Swap D, a de-designated hedge, impacted interest expense for fiscal 2017 and 2016 by $178 and $375, respectively. By entering into derivative contracts, UNIFI exposes itself to counterparty credit risk. UNIFI attempts to minimize this risk by selecting counterparties with investment grade credit ratings and regularly monitoring those ratings. UNIFI’s derivative instruments do not contain any credit-risk-related contingent features. 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 values due to their short-term nature. There were no transfers into or out of the levels of the fair value hierarchy for fiscal 2018, 2017 and 2016. Non-Financial Assets and Liabilities UNIFI did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-recurring basis. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jun. 24, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 19. 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 28, 2015 $ (26,752 ) $ (147 ) $ (26,899 ) Other comprehensive (loss) income, net of tax (2,929 ) 77 (2,852 ) Balance at June 26, 2016 $ (29,681 ) $ (70 ) $ (29,751 ) Other comprehensive loss, net of tax (2,691 ) (438 ) (3,129 ) Balance at June 25, 2017 $ (32,372 ) $ (508 ) $ (32,880 ) Other comprehensive (loss) income, net of tax (9,896 ) 2,243 (7,653 ) Balance at June 24, 2018 $ (42,268 ) $ 1,735 $ (40,533 ) A summary of other comprehensive (loss) income for fiscal 2018, 2017 and 2016 is provided as follows, noting there is no tax impact for fiscal 2016: Fiscal 2018 Fiscal 2017 Fiscal 2016 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax After-tax Other comprehensive (loss) income: Foreign currency translation adjustments $ (9,250 ) $ — $ (9,250 ) $ (2,936 ) $ — $ (2,936 ) $ (2,135 ) $ (2,135 ) Foreign currency translation adjustments for an unconsolidated affiliate (646 ) — (646 ) 245 — 245 (794 ) (794 ) Changes in interest rate swaps, net of reclassification adjustments 3,067 (824 ) 2,243 (737 ) 299 (438 ) 77 77 Other comprehensive loss, net $ (6,829 ) $ (824 ) $ (7,653 ) $ (3,428 ) $ 299 $ (3,129 ) $ (2,852 ) $ (2,852 ) |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 12 Months Ended |
Jun. 24, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | 20. Computation of Earnings Per Share The computation of basic and diluted earnings per share (“EPS”) is as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Basic EPS Net income attributable to Unifi, Inc. $ 31,702 $ 32,875 $ 34,415 Weighted average common shares outstanding 18,294 18,136 17,857 Basic EPS $ 1.73 $ 1.81 $ 1.93 Diluted EPS Net income attributable to Unifi, Inc. $ 31,702 $ 32,875 $ 34,415 Weighted average common shares outstanding 18,294 18,136 17,857 Net potential common share equivalents – stock options and RSUs 343 307 558 Adjusted weighted average common shares outstanding 18,637 18,443 18,415 Diluted EPS $ 1.70 $ 1.78 $ 1.87 Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 118 390 193 Excluded from the calculation of diluted shares: Unvested stock options that vest upon achievement of certain market conditions — — — The calculation of earnings per common share is based on the weighted average number of UNIFI’s common shares outstanding for the applicable period. The calculation of diluted earnings per common share 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. |
Other Operating Expense (Income
Other Operating Expense (Income), Net | 12 Months Ended |
Jun. 24, 2018 | |
Other Income And Expenses [Abstract] | |
Other Operating Expense (Income), Net | 21. Other Operating Expense (Income), Net Other operating expense (income), net primarily consists of gains and losses on (i) foreign currency transactions and (ii) sale or disposal of assets, along with certain expenses related to former employees for consulting, transition, relocation or severance. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates and Variable Interest Entities | 12 Months Ended |
Jun. 24, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates and Variable Interest Entities | 22. Investments in Unconsolidated Affiliates and Variable Interest Entities Parkdale America, LLC In June 1997, UNIFI and Parkdale Mills, Inc. (“Mills”) entered into a Contribution Agreement that set forth the terms and conditions by which the two companies contributed all of the assets of their spun cotton yarn operations utilizing open-end and air-jet spinning technologies to create PAL. In exchange for its contribution, UNIFI received a 34% ownership interest in PAL, which is accounted for using the equity method of accounting. Effective January 1, 2012, Mills’ interest in PAL was assigned to Parkdale Incorporated. PAL is a limited liability company treated as a partnership for income tax reporting purposes. PAL is a producer of cotton and synthetic yarns for sale to the global textile industry and apparel market. Per PAL’s fiscal 2017 audited financial statements, PAL had 13 manufacturing facilities located primarily in the southeast region of the United States and in Mexico, and PAL’s five largest customers accounted for approximately 78% of total revenues and 73% of total gross accounts receivable outstanding. As PAL’s fiscal year end is the Saturday nearest to December 31 and its results are considered significant, UNIFI files an amendment to each Annual Report on Form 10-K on or before 90 days subsequent to PAL’s fiscal year end to provide PAL’s audited financial statements for PAL’s most recent fiscal year. UNIFI filed an amendment to its Annual Report on Form 10-K for the fiscal year ended June 25, 2017 on March 30, 2018 to provide PAL’s audited financial statements for PAL’s fiscal year ended December 30, 2017. UNIFI expects to file an amendment to this Annual Report on Form 10-K on or before March 29, 2019 to provide PAL’s audited financial statements for PAL’s fiscal year ended December 29, 2018. The U.S. federal government maintains a program providing economic adjustment assistance to domestic users of upland cotton (the “cotton rebate program”). The cotton rebate program offers a subsidy for cotton consumed in domestic production, and the subsidy is paid the month after the eligible cotton is consumed. To be completely earned, the subsidy must be used within 18 months after the marketing year in which it is earned to purchase qualifying capital expenditures in the United States for production of goods from upland cotton. The marketing year is from August 1 to July 31. The program provides a subsidy of up to three cents per pound. In February 2014, the U.S. federal government extended the program for five years. The cotton subsidy will remain at three cents per pound for the life of the program. PAL recognizes its share of income for the cotton subsidy when the cotton has been consumed and the qualifying assets have been acquired, with an appropriate allocation methodology considering the dual criteria of the subsidy. 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 in order to protect the gross margin of fixed-priced yarn sales. The derivative instruments used are listed and traded on an exchange and are thus valued using quoted prices classified within Level 1 of the fair value hierarchy. As of June 24, 2018, PAL had no futures contracts designated as cash flow hedges. As of June 24, 2018, UNIFI’s investment in PAL was $110,264, which was reflected within investments in unconsolidated affiliates in the accompanying consolidated balance sheets. The reconciliation between UNIFI’s share of the underlying equity of PAL and its investment is as follows: Underlying equity as of June 24, 2018 $ 128,355 Initial excess capital contributions 53,363 Impairment charge recorded by UNIFI in 2007 (74,106 ) Anti-trust lawsuit against PAL in which UNIFI did not participate 2,652 Investment as of June 24, 2018 $ 110,264 U.N.F. Industries, Ltd. In September 2000, UNIFI and Nilit Ltd. (“Nilit”) formed a 50/50 joint venture, U.N.F. Industries Ltd. (“UNF”), for the purpose of operating nylon extrusion assets to manufacture nylon POY. Raw material and production services for UNF are provided by Nilit 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 In October 2009, UNIFI and Nilit America Inc. (“Nilit America”) formed a 50/50 joint venture, UNF America LLC (“UNFA”), for the purpose of operating a nylon extrusion facility which manufactures nylon POY. Raw material and production services for UNFA are provided by Nilit America 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 June 24, 2018, UNIFI’s open purchase orders related to this agreement were $2,489. UNIFI’s raw material purchases under this supply agreement consist of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 UNF $ 1,800 $ 2,254 $ 2,828 UNFA 21,731 20,493 24,319 Total $ 23,531 $ 22,747 $ 27,147 As of both June 24, 2018 and June 25, 2017, UNIFI had combined accounts payable due to UNF and UNFA of $2,301. UNIFI has determined that UNF and UNFA are variable interest entities and has also determined that UNIFI is the primary beneficiary of these entities, based on the terms of the supply agreement. 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 current assets, total assets and total liabilities, and 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. As of June 24 2018, UNIFI’s combined investments in UNF and UNFA were $2,375 and are shown within investments in unconsolidated affiliates in the accompanying consolidated balance sheets. 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. For UNIFI’s fiscal 2018 and 2017, PAL’s corresponding fiscal periods both consisted of 52 weeks. Depreciation and amortization for PAL for the periods presented includes amounts for PAL’s foreign subsidiaries. PAL’s current assets and shareholders’ equity accounts as of June 25, 2017 reflect a $6,800 dividend distribution made to UNIFI on June 28, 2017, subsequent to UNIFI’s fiscal 2017. As of June 24, 2018 PAL Other Total Current assets $ 289,683 $ 7,598 $ 297,281 Noncurrent assets 162,242 875 163,117 Current liabilities 71,026 3,722 74,748 Noncurrent liabilities 3,389 — 3,389 Shareholders’ equity and capital accounts 377,510 4,751 382,261 UNIFI’s portion of undistributed earnings 41,429 887 42,316 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 Fiscal Year Ended June 24, 2018 PAL Other Total Net sales $ 796,010 $ 24,097 $ 820,107 Gross profit 31,112 4,646 35,758 Income from operations 12,032 2,917 14,949 Net income 12,990 2,961 15,951 Depreciation and amortization 39,404 190 39,594 Cash received by PAL under cotton rebate program 13,797 — 13,797 Earnings recognized by PAL for cotton rebate program 13,334 — 13,334 Distributions received 9,236 3,000 12,236 For the Fiscal Year Ended June 25, 2017 PAL Other Total Net sales $ 754,285 $ 22,905 $ 777,190 Gross profit 26,275 4,877 31,152 Income from operations 10,406 3,061 13,467 Net income 7,814 2,988 10,802 Depreciation and amortization 42,801 177 42,978 Cash received by PAL under cotton rebate program 14,293 — 14,293 Earnings recognized by PAL for cotton rebate program 13,491 — 13,491 Distributions received 822 1,500 2,322 For the Fiscal Year Ended June 26, 2016 PAL Other Total Net sales $ 824,248 $ 29,463 $ 853,711 Gross profit 32,626 7,651 40,277 Income from operations 15,143 5,772 20,915 Net income 17,670 5,838 23,508 Depreciation and amortization 46,235 150 46,385 Cash received by PAL under cotton rebate program 17,057 — 17,057 Earnings recognized by PAL for cotton rebate program 16,080 — 16,080 Distributions received 1,732 3,000 4,732 As of the end of PAL’s corresponding 12-month fiscal periods ending in June, PAL’s amounts of deferred revenues related to the cotton rebate program were $0 for all periods. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 24, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 23. 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 calendar 2018 and will be entitled to receive from DuPont seven years of monitoring and reporting costs, less certain adjustments. At that time, UNIFI expects to 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. Future minimum capital lease payments and future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of June 24, 2018 by fiscal year are: Capital leases Operating leases Fiscal 2019 $ 7,629 $ 2,281 Fiscal 2020 5,921 1,866 Fiscal 2021 2,874 1,306 Fiscal 2022 2,569 327 Fiscal 2023 193 32 Fiscal years thereafter 861 23 Total minimum lease payments $ 20,047 $ 5,835 Less estimated executory costs (746 ) Less interest (1,194 ) Present value of net minimum capital lease payments 18,107 Less current portion of capital lease obligations (6,996 ) Long-term portion of capital lease obligations $ 11,111 Rental expenses incurred under operating leases and included in operating income consist of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Rental expenses $ 4,835 $ 4,357 $ 4,867 Unconditional Obligations UNIFI is a party to unconditional obligations for certain utility and other purchase or service commitments. These commitments are non-cancelable, have remaining terms in excess of one year and qualify as normal purchases. On a fiscal year basis, the minimum payments expected to be made as part of such commitments are as follows: Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Thereafter Unconditional purchase obligations $ 7,330 $ 6,841 $ 4,711 $ 2,245 $ 1,196 $ 17 Unconditional service obligations 2,052 1,416 1,103 986 388 351 Total unconditional obligations $ 9,382 $ 8,257 $ 5,814 $ 3,231 $ 1,584 $ 368 For fiscal 2018, 2017 and 2016, total costs incurred under these commitments consisted of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Costs for unconditional purchase obligations $ 24,777 $ 26,984 $ 26,790 Costs for unconditional service obligations 2,454 2,575 641 Total $ 27,231 $ 29,559 $ 27,431 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 24, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 24. Related Party Transactions Related party receivables consist of the following: June 24, 2018 June 25, 2017 Salem Global Logistics, Inc. $ — $ 6 Total related party receivables (included within receivables, net) $ — $ 6 Related party payables consist of the following: June 24, 2018 June 25, 2017 Salem Leasing Corporation (included within accounts payable) $ 306 $ 298 Salem Leasing Corporation (capital lease obligation) 875 947 Total related party payables $ 1,181 $ 1,245 Related party transactions in excess of $120 for the current or prior two fiscal years consist of the matters in the table below and the following paragraphs: For the Fiscal Year Ended Affiliated Entity Transaction Type June 24, 2018 June 25, 2017 June 26, 2016 Salem Leasing Corporation Transportation equipment costs and capital lease debt service $ 3,979 $ 3,914 $ 3,751 Salem Global Logistics, Inc. Freight service income 147 128 253 Mr. Kenneth G. Langone, a member of the Board, is a director, shareholder and non-executive Chairman of the Board of Salem Holding Company. UNIFI leases tractors and trailers from Salem Leasing Corporation, a wholly owned subsidiary of Salem Holding Company. In addition to the monthly lease payments, UNIFI also incurs expenses for routine repair and maintenance, fuel and other expenses. These leases do not contain renewal options, purchase options or escalation clauses with respect to the minimum lease charges. Salem Global Logistics, Inc. is also a wholly owned subsidiary of Salem Holding Company. During fiscal 2018, 2017 and 2016, UNIFI earned income by providing for-hire freight services for Salem Global Logistics, Inc. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Jun. 24, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | 25. 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 (“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 primarily 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 primarily 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 primarily 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 primarily 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 NAFTA and CAFTA-DR economic trading zone. 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 Renewables (up through December 23, 2016, the date of the sale by UNIFI of its 60% equity ownership interest in Renewables) and for-hire transportation services. 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. For-hire transportation services revenue is derived from performing common carrier services utilizing UNIFI’s fleet of transportation equipment. 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 Fiscal Year Ended June 24, 2018 Polyester Nylon International All Other Total Net sales $ 364,169 $ 102,639 $ 207,884 $ 4,220 $ 678,912 Cost of sales 333,078 92,155 163,300 3,951 592,484 Gross profit 31,091 10,484 44,584 269 86,428 Segment depreciation expense 15,893 2,197 1,648 256 19,994 Segment Profit $ 46,984 $ 12,681 $ 46,232 $ 525 $ 106,422 For the Fiscal Year Ended June 25, 2017 Polyester Nylon International All Other Total Net sales $ 355,740 $ 112,704 $ 173,686 $ 5,140 $ 647,270 Cost of sales 315,655 100,633 131,087 5,731 553,106 Gross profit (loss) 40,085 12,071 42,599 (591 ) 94,164 Segment depreciation expense 13,921 2,125 1,119 638 17,803 Segment Profit $ 54,006 $ 14,196 $ 43,718 $ 47 $ 111,967 For the Fiscal Year Ended June 26, 2016 Polyester Nylon International All Other Total Net sales $ 383,167 $ 131,715 $ 122,554 $ 6,201 $ 643,637 Cost of sales 333,638 113,906 95,666 6,795 550,005 Gross profit (loss) 49,529 17,809 26,888 (594 ) 93,632 Segment depreciation expense 11,188 1,899 885 820 14,792 Segment Profit $ 60,717 $ 19,708 $ 27,773 $ 226 $ 108,424 The reconciliations of segment gross profit (loss) to consolidated income before income taxes are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 31,091 $ 40,085 $ 49,529 Nylon 10,484 12,071 17,809 International 44,584 42,599 26,888 All Other 269 (591 ) (594 ) Segment gross profit 86,428 94,164 93,632 SG&A expenses 56,077 50,829 47,502 (Benefit) provision for bad debts (38 ) (123 ) 1,684 Other operating expense (income), net 1,590 (310 ) 2,248 Operating income 28,799 43,768 42,198 Interest income (560 ) (517 ) (610 ) Interest expense 4,935 3,578 3,528 Loss on sale of business — 1,662 — Equity in earnings of unconsolidated affiliates (5,787 ) (4,230 ) (8,963 ) Income before income taxes $ 30,211 $ 43,275 $ 48,243 The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 15,893 $ 13,921 $ 11,188 Nylon 2,197 2,125 1,899 International 1,648 1,119 885 All Other 256 638 820 Segment depreciation expense 19,994 17,803 14,792 Other depreciation and amortization expense 2,591 2,565 2,736 Depreciation and amortization expense $ 22,585 $ 20,368 $ 17,528 The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 16,605 $ 25,442 $ 44,517 Nylon 1,366 1,247 2,548 International 3,099 4,734 2,755 Segment capital expenditures 21,070 31,423 49,820 Other capital expenditures 3,959 1,767 2,517 Capital expenditures $ 25,029 $ 33,190 $ 52,337 In addition to the capital expenditures noted above, Polyester assets were added in fiscal 2017 via a construction financing arrangement. During fiscal 2017, UNIFI changed the segmentation of cash and cash equivalents to better reflect its ability to expand operations in multiple regions. Thus, in the reconciliations below, cash and cash equivalents have been reclassified out of individual segments and into other current assets for the fiscal years presented. The reconciliations of segment total assets to consolidated total assets are as follows: June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 284,261 $ 270,819 $ 243,093 Nylon 57,378 57,789 63,141 International 95,006 80,824 66,998 Segment total assets 436,645 409,432 373,232 Other current assets 30,945 27,375 13,337 Other PP&E 17,373 14,904 16,597 Other non-current assets 4,205 279 4,864 Investments in unconsolidated affiliates 112,639 119,513 117,412 Total assets $ 601,807 $ 571,503 $ 525,442 Product sales (excluding the All Other category) are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 572,053 $ 529,426 $ 505,721 Nylon 102,639 112,704 131,715 Total $ 674,692 $ 642,130 $ 637,436 Geographic Data Geographic information is set forth below, beginning with net sales. Brazil and China are reported separately from other foreign countries when corresponding net sales for a fiscal year exceed 10% of consolidated net sales. For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 United States $ 420,920 $ 424,490 $ 472,287 Brazil 110,587 109,079 83,087 China 90,998 nm nm Remaining Foreign Countries 56,407 113,701 88,263 Total $ 678,912 $ 647,270 $ 643,637 Export sales from UNIFI’s U.S. operations to external customers $ 94,205 $ 104,229 $ 113,725 nm – Respective amount does not meet UNIFI’s 10% threshold for disclosure. The information for net sales is based on the operating locations from where the items were produced or distributed. Geographic information for long-lived assets is as follows: June 24, 2018 June 25, 2017 June 26, 2016 United States $ 305,229 $ 304,696 $ 292,854 Brazil 12,679 12,616 9,714 Remaining Foreign Countries 6,317 8,360 8,595 Total $ 324,225 $ 325,672 $ 311,163 Long-lived assets are comprised of PP&E, net; intangible assets, net; investments in unconsolidated affiliates; and other non-current assets. Geographic information for total assets is as follows: June 24, 2018 June 25, 2017 June 26, 2016 United States $ 455,963 $ 445,947 $ 427,679 Brazil 59,657 58,598 53,993 Remaining Foreign Countries 86,187 66,958 43,770 Total $ 601,807 $ 571,503 $ 525,442 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Jun. 24, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results (Unaudited) | 26. Quarterly Results (Unaudited) Quarterly financial data and selected highlights are as follows: For the Fiscal Quarter Ended September 24, 2017 December 24, 2017 March 25, 2018 June 24, 2018 Net sales $ 164,242 $ 167,478 $ 165,867 $ 181,325 Gross profit (1) 23,292 22,676 16,556 23,904 Net income including non-controlling interest 8,960 11,802 176 10,764 Less: net loss attributable to non-controlling interest — — — — Net income attributable to Unifi, Inc. (2) $ 8,960 $ 11,802 $ 176 $ 10,764 Net income attributable to Unifi, Inc. per common share: Basic (3) $ 0.49 $ 0.65 $ 0.01 $ 0.59 Diluted (3) $ 0.48 $ 0.63 $ 0.01 $ 0.58 For the Fiscal Quarter Ended September 25, 2016 December 25, 2016 March 26, 2017 June 25, 2017 Net sales $ 159,969 $ 155,155 $ 160,896 $ 171,250 Gross profit 23,547 22,130 21,130 27,357 Net income including non-controlling interest 9,142 4,354 9,177 9,704 Less: net loss attributable to non-controlling interest (261 ) (237 ) — — Net income attributable to Unifi, Inc. (4) $ 9,403 $ 4,591 $ 9,177 $ 9,704 Net income attributable to Unifi, Inc. per common share: Basic (3) $ 0.52 $ 0.25 $ 0.50 $ 0.53 Diluted (3) $ 0.51 $ 0.25 $ 0.50 $ 0.52 (1) Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with corresponding selling price increases. (2) Net income attributable to Unifi, Inc. for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain foreign exchange income applicable to fiscal 2015. Net income attributable to Unifi, Inc. for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs in connection with a tax status change unrelated to the federal tax reform legislation signed into law in December 2017. (3) Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. (4) Net income attributable to Unifi, Inc. for the fiscal quarter ended December 25, 2016 includes a loss on sale of business of $1,662. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jun. 24, 2018 | |
Additional Cash Flow Elements And Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 27. Supplemental Cash Flow Information Cash payments for interest and taxes consist of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Interest, net of capitalized interest of $190, $652 and $704, respectively $ 4,459 $ 3,282 $ 3,066 Income taxes, net of refunds 9,962 8,123 9,923 Non-Cash Investing and Financing Activities As of June 24, 2018, June 25, 2017 and June 26, 2016, $3,187, $3,234 and $4,197, respectively, were included in accounts payable for unpaid capital expenditures. During fiscal 2017, UNIFI recorded reclassification and non-cash activity relating to a construction financing arrangement. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 24, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Unifi, Inc. and its subsidiaries in which it maintains a controlling financial interest. All account balances and transactions between Unifi, Inc. and the subsidiaries which it controls have been eliminated. Investments in entities in which UNIFI is able to exercise significant influence, but not control, are accounted for using the equity method. For transactions with entities accounted for under the equity method, any intercompany profits on amounts still remaining are eliminated. Amounts originating from any deferral of intercompany profits are recorded within the account balance to which the transaction specifically relates (e.g., inventory). Only upon settlement of the intercompany transaction with a third party is the deferral of the intercompany profit recognized by UNIFI. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, certain financial statement disclosures at the date of the financial statements, and the reported amounts of revenues and expenses during the period. UNIFI’s consolidated financial statements include amounts that are based on management’s best estimates and judgments. Actual results may vary from these estimates. These estimates are reviewed periodically to determine if a change is required. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are defined as highly liquid, short-term investments having an original maturity of three months or less. Book overdrafts, for which the bank has not advanced cash, if any, are reclassified to accounts payable and reflected as an offset thereto within the accompanying consolidated statements of cash flows. |
Receivables | Receivables Receivables are stated at their net realizable value. Allowances are provided for known and potential losses arising from yarn quality claims and for amounts owed by customers. Reserves for yarn quality claims are based on historical claim experience and known pending claims and are recorded as a reduction of net sales. The allowance for uncollectible accounts is shown as a reduction of operating income and reflects UNIFI’s best estimate of probable losses inherent in its accounts receivable portfolio determined on the basis of historical write off experience, aging of trade receivables, specific allowances for known troubled accounts and other currently available information. Customer accounts are written off against the allowance for uncollectible accounts when they are no longer deemed to be collectible. |
Inventories | Inventories UNIFI’s inventories are valued at the lower of cost or net realizable value, with the cost for the majority of its inventory determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies are valued using the average cost method. UNIFI’s estimates for inventory reserves for obsolete, slow-moving or excess inventories are based upon many factors, including historical recovery rates, the aging of inventories on-hand, inventory movement and expected net realizable value of specific products, and current economic conditions. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs are recorded to long-term debt and amortized as additional interest expense following either the effective interest method or the straight-line method. In the event of any prepayment of its debt obligations, UNIFI accelerates the recognition of a pro-rata amount of issuance costs and records an extinguishment of debt. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment (“PP&E”) are stated at historical cost less accumulated depreciation. Plant and equipment under capital leases are stated at the present value of minimum lease payments less accumulated amortization. Additions or improvements that substantially extend the useful life of a particular asset are capitalized. Depreciation is calculated primarily utilizing the straight-line method over the following useful lives: Asset categories Useful lives in years Land improvements Five to Twenty Buildings and improvements Fifteen to Forty Machinery and equipment Two to Twenty-five Computer, software and office equipment Three to Seven Internal software development costs Three Transportation equipment Three to Fifteen Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining term of the lease. Assets under capital leases are amortized in a manner consistent with UNIFI’s normal depreciation policy if ownership is transferred by the end of the lease, or if there is a bargain purchase option. If such ownership criteria are not met, amortization occurs over the shorter of the lease term or the asset’s useful life. UNIFI capitalizes its costs of developing internal software when the software is used as an integral part of its manufacturing or business processes and the technological feasibility has been established. Internal software costs are amortized over a period of three years and, in accordance with the project type, charged to cost of sales or selling, general and administrative (“SG&A”) expenses. Fully depreciated assets are retained in cost and accumulated depreciation accounts until they are removed from service. In the case of disposals, asset costs and related accumulated depreciation amounts are removed from the accounts, and the net amounts, less proceeds from disposal, are included in the determination of net income and presented within other operating expense (income), net. Repair and maintenance costs related to PP&E, which do not significantly increase the useful life of an existing asset or do not significantly alter, modify or change the capabilities or production capacity of an existing asset are expensed as incurred. Interest is capitalized for capital projects requiring a construction period. PP&E and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Long-lived assets to be disposed of by sale within one year are classified as held for sale and are reported at the lower of carrying amount or fair value less cost to sell. Depreciation ceases for all assets classified as held for sale. Long-lived assets to be disposed of other than by sale are classified as held for use until they are disposed of and these assets are reported at the lower of their carrying amount or estimated fair value. |
Intangible Assets | Intangible Assets Finite-lived intangible assets such as customer lists, non-compete agreements, licenses, trademarks and patents are amortized over their estimated useful lives. UNIFI periodically evaluates the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they are removed from the accounts. These assets are reviewed for impairment or obsolescence whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows or other valuation techniques. UNIFI has no intangibles with indefinite lives. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates UNIFI evaluates its investments in unconsolidated affiliates for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Derivative Instruments | Derivative Instruments All derivatives are carried on the balance sheet at fair value and are classified according to their asset or liability position and the expected timing of settlement. On the date the derivative contract is entered into, UNIFI may designate the derivative into one of the following categories: • Fair value hedge – a hedge of the fair value of a recognized asset or liability or a firm commitment. Changes in the fair value of derivatives designated and qualifying as fair value hedges, as well as the offsetting gains and losses on the hedged items, are reported in income in the same period. • Cash flow hedge – a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability. The effective portion of gains and losses on cash flow hedges are recorded in accumulated other comprehensive loss, until the underlying transactions are recognized in income. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to current period earnings on the same line item as the underlying transaction. • Net investment hedge – if a derivative is used as a foreign currency hedge of a net investment in a foreign operation, its changes in fair value, to the extent effective as a hedge, are recorded in foreign currency translation adjustments in accumulated other comprehensive loss. Derivatives that are not designated for hedge accounting are marked to market at the end of each period with the changes in fair value recognized in current period earnings. Settlements of any fair value or cash flow derivative contracts are classified as cash flows from operating activities. |
Fair Value Measurements | Fair Value Measurements The accounting guidance for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market, or if none exists, the most advantageous market, for the specific asset or liability at the measurement date (the exit price). Fair value is based on assumptions that market participants would use when pricing the asset or liability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs. UNIFI uses the following to measure fair value for its assets and liabilities: • Level 1 – Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either indirectly or directly. • Level 3 – Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recorded to recognize the expected future tax benefits or costs of events that have been, or will be, reported in different tax years for financial statement purposes than for tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which these items are expected to reverse. UNIFI reviews deferred tax assets to determine if it is more-likely-than-not they will be realized. If UNIFI determines it is not more-likely-than-not that a deferred tax asset will be realized, it records a valuation allowance to reverse the previously recognized benefit. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. UNIFI recognizes tax benefits related to uncertain tax positions if it believes it is more-likely-than-not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. UNIFI accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Penalties and interest related to income tax expense, if incurred, is included in provision for income taxes. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense for stock awards is based on the grant date fair value and expensed over the applicable vesting period. UNIFI has a policy of issuing new shares to satisfy stock option exercises and restricted stock unit conversions. For awards with a service condition and a graded vesting schedule, UNIFI has elected an accounting policy of recognizing compensation cost on a straight-line basis over the requisite service period for each separate vesting portion of the award as if the award was, in-substance, multiple awards. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign subsidiaries whose functional currency is other than the U.S. Dollar (“USD”) are translated at exchange rates existing at the respective balance sheet dates. Translation gains and losses are not included in determining net income, but are presented in a separate component of accumulated other comprehensive loss. UNIFI translates the results of operations of its foreign operations at the average exchange rates during the respective periods. Transaction gains and losses are included within other operating expense (income), net. |
Revenue Recognition | Revenue Recognition UNIFI recognizes revenue when (i) there is persuasive evidence of an arrangement, (ii) the sales price is fixed or determinable, (iii) title and the risks of ownership have been transferred to the customer and (iv) collection of the receivable is reasonably assured. For the sale of goods, revenue recognition occurs primarily upon shipment. For service arrangements, revenue is recognized (a) when transportation services have been completed in accordance with the bill of lading contract or (b) in accordance with contractual agreements with customers utilizing the criteria above. Revenue includes amounts for duties and import taxes, interest billed to customers, and shipping and handling costs billed to customers. Revenue excludes value-added taxes or other sales taxes and includes any applicable deductions for returns and allowances, yarn claims and discounts. |
Cost of Sales | Cost of Sales The major components of cost of sales are: (i) materials and supplies, (ii) labor and fringe benefits, (iii) utility and overhead costs associated with manufactured products, (iv) cost of products purchased for resale, (v) shipping, handling and warehousing costs, (vi) research and development costs, (vii) depreciation expense and (viii) all other costs related to production or service activities. |
Shipping, Handling and Warehousing Costs | Shipping, Handling and Warehousing Costs Shipping, handling and warehousing costs include costs to store goods prior to shipment, prepare goods for shipment and physically move goods to customers. |
Research and Development Costs | Research and Development Costs Research and development costs include employee costs, production costs related to customer samples, operating supplies, consulting fees and other miscellaneous costs. The cost of research and development is charged to expense as incurred. Research and development costs were as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Research and development costs $ 7,792 $ 7,177 $ 6,907 |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses The major components of SG&A expenses are: (i) costs of UNIFI’s sales force, marketing and advertising efforts, and commissions, (ii) costs of maintaining UNIFI’s general and administrative support functions including executive management, information technology, human resources, legal and finance, (iii) amortization of intangible assets and (iv) all other costs required to be classified as SG&A expenses. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in SG&A expenses. UNIFI’s advertising costs include spending for items such as consumer marketing and branding initiatives, promotional items, trade shows, sponsorships and other programs. Advertising costs were as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Advertising costs $ 3,439 $ 3,070 $ 4,844 |
Self Insurance | Self-Insurance UNIFI self-insures certain risks such as employee healthcare claims. Reserves for incurred but not reported healthcare claims are estimated using historical data, the timeliness of claims processing, medical trends, inflation and any changes, if applicable, in the nature or type of the plan. |
Contingencies | Contingencies At any point in time, UNIFI may be a party to various pending legal proceedings, claims or environmental actions. Accruals for estimated losses are recorded at the time information becomes available indicating that losses are probable and estimable. Any amounts accrued are not discounted. Legal costs such as outside counsel fees and expenses are charged to expense as incurred. |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Accounting Policies [Abstract] | |
Useful Lives of Property Plant and Equipment | Depreciation is calculated primarily utilizing the straight-line method over the following useful lives: Asset categories Useful lives in years Land improvements Five to Twenty Buildings and improvements Fifteen to Forty Machinery and equipment Two to Twenty-five Computer, software and office equipment Three to Seven Internal software development costs Three Transportation equipment Three to Fifteen |
Schedule of Research and Development Costs | Research and development costs were as follows For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Research and development costs $ 7,792 $ 7,177 $ 6,907 |
Schedule of Advertising Costs | Advertising costs were as follows For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Advertising costs $ 3,439 $ 3,070 $ 4,844 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables, net consists of the following: June 24, 2018 June 25, 2017 Customer receivables $ 87,633 $ 83,291 Allowance for uncollectible accounts (2,059 ) (2,222 ) Reserves for yarn quality claims (564 ) (1,278 ) Net customer receivables 85,010 79,791 Related party receivables — 6 Other receivables 1,263 1,324 Total receivables, net $ 86,273 $ 81,121 |
Allowance for Credit Losses on Financing Receivables | The changes in UNIFI’s allowance for uncollectible accounts and reserves for yarn quality claims were as follows: Allowance for Uncollectible Accounts Reserves for Yarn Quality Claims Balance at June 28, 2015 $ (1,596 ) $ (581 ) Charged to costs and expenses (1,684 ) (1,886 ) Translation activity (56 ) (4 ) Deductions 497 1,676 Balance at June 26, 2016 $ (2,839 ) $ (795 ) Credited (charged) to costs and expenses 123 (2,719 ) Translation activity 34 3 Deductions 460 2,233 Balance at June 25, 2017 $ (2,222 ) $ (1,278 ) Credited (charged) to costs and expenses 38 (821 ) Translation activity 125 (9 ) Deductions — 1,544 Balance at June 24, 2018 $ (2,059 ) $ (564 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories Components | Inventories consists of the following: June 24, 2018 June 25, 2017 Raw materials $ 45,448 $ 36,748 Supplies 7,314 6,104 Work in process 8,834 7,399 Finished goods 66,314 63,121 Gross inventories 127,910 113,372 Inventory reserves (1,599 ) (1,967 ) Total inventories $ 126,311 $ 111,405 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Other Assets Current [Abstract] | |
Schedule of Other Current Assets | Other current assets consists of the following: June 24, 2018 June 25, 2017 Vendor deposits $ 3,703 $ 2,992 Prepaid expenses 1,802 2,272 Value-added taxes receivable 1,024 1,197 Other — 7 Total other current assets $ 6,529 $ 6,468 |
Property, Plant and Equipment41
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Property Plant And Equipment [Abstract] | |
PP&E Net Components | PP&E, net consists of the following: June 24, 2018 June 25, 2017 Land $ 2,860 $ 2,931 Land improvements 15,118 15,066 Buildings and improvements 157,354 157,115 Assets under capital leases 34,568 34,568 Machinery and equipment 589,237 579,211 Computers, software and office equipment 19,723 19,360 Transportation equipment 5,029 4,798 Construction in progress 8,651 7,371 Gross PP&E 832,540 820,420 Less: accumulated depreciation (619,654 ) (612,355 ) Less: accumulated amortization – capital leases (7,370 ) (4,677 ) Total property, plant and equipment, net $ 205,516 $ 203,388 |
Schedule of Capital Leased Assets | Assets under capital leases consists of the following: June 24, 2018 June 25, 2017 Machinery and equipment $ 24,467 $ 24,467 Transportation equipment 6,273 6,273 Building improvements 3,828 3,828 Gross assets under capital leases $ 34,568 $ 34,568 |
Schedule of Depreciation Expense and Repair and Maintenance Expense | Depreciation expense and repair and maintenance expenses were as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Depreciation expense $ 21,109 $ 18,483 $ 15,269 Repair and maintenance expenses 19,761 18,319 16,819 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets, Net | Intangible assets, net consists of the following: June 24, 2018 June 25, 2017 Customer lists $ 23,615 $ 23,615 Non-compete agreements 1,925 4,050 Trademarks, licenses and other 185 505 Total intangible assets, gross 25,725 28,170 Accumulated amortization – customer lists (22,527 ) (21,685 ) Accumulated amortization – non-compete agreements (108 ) (3,903 ) Accumulated amortization – trademarks, licenses and other (100 ) (424 ) Total accumulated amortization (22,735 ) (26,012 ) Total intangible assets, net $ 2,990 $ 2,158 |
Amortization Expense for Intangible Assets | Amortization expense for intangible assets consists of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Customer lists $ 843 $ 1,020 $ 1,233 Non-compete agreements 205 287 323 Trademarks, licenses and other 62 74 145 Total amortization expense $ 1,110 $ 1,381 $ 1,701 |
Expected Intangible Asset Amortization | The following table presents the expected intangible asset amortization for the next five fiscal years: 2019 2020 2021 2022 2023 Expected amortization $ 1,075 $ 724 $ 442 $ 422 $ 327 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Other Assets Noncurrent Disclosure [Abstract] | |
Schedule of Other Assets, Noncurrent | Other non-current assets consists of the following: June 24, 2018 June 25, 2017 Interest rate swaps $ 2,259 $ — Other 821 613 Total other non-current assets $ 3,080 $ 613 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consists of the following: June 24, 2018 June 25, 2017 Payroll and fringe benefits $ 10,833 $ 10,469 Utilities 2,594 2,562 Property taxes 835 771 Current portion of supplemental post-employment plan 508 42 Other 2,950 2,300 Total accrued expenses $ 17,720 $ 16,144 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
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 June 24, 2018 June 24, 2018 June 25, 2017 ABL Revolver March 2020 4.1% $ 28,100 $ 9,300 ABL Term Loan (1) March 2020 3.7% 85,000 95,000 Capital lease obligations (2) 3.8% 18,107 25,168 Total debt 131,207 129,468 Current portion of capital lease obligations (6,996 ) (7,060 ) Current portion of other long-term debt (10,000 ) (10,000 ) Unamortized debt issuance costs (658 ) (1,026 ) Total long-term debt $ 113,553 $ 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 following five fiscal years and thereafter: Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Thereafter ABL Revolver $ — $ 28,100 $ — $ — $ — $ — ABL Term Loan 10,000 75,000 — — — — Capital lease obligations 6,996 5,519 2,624 2,417 91 460 Total $ 16,996 $ 108,619 $ 2,624 $ 2,417 $ 91 $ 460 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities Components | Other long-term liabilities consists of the following: June 24, 2018 June 25, 2017 Supplemental post-employment plan $ 3,045 $ 2,822 Uncertain tax positions 131 5,077 Other 2,161 3,905 Total other long-term liabilities $ 5,337 $ 11,804 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income before Income Taxes | The components of income before income taxes consist of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 United States $ (7,852 ) $ 2,689 $ 21,679 Foreign 38,063 40,586 26,564 Income before income taxes $ 30,211 $ 43,275 $ 48,243 |
Schedule of (Benefit) Provision for Income Taxes | (Benefit) provision for income taxes consists of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Current: Federal $ (4,918 ) $ (6,082 ) $ 1,545 State (416 ) (130 ) 764 Foreign 9,639 10,224 6,781 Total current tax expense 4,305 4,012 9,090 Deferred: Federal (5,315 ) 6,602 6,304 State (872 ) 162 255 Foreign 391 122 (576 ) Total deferred tax expense (5,796 ) 6,886 5,983 (Benefit) provision for income taxes $ (1,491 ) $ 10,898 $ 15,073 |
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: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Federal statutory tax rate 28.3 % 35.0 % 35.0 % Foreign income taxed at different rates (2.4 ) (10.2 ) (7.7 ) Repatriation of foreign earnings and withholding taxes 1.8 1.4 (1.0 ) Repatriation of foreign earnings due to tax reform 23.9 — — Revaluation of U.S. deferred balances due to tax reform (14.2 ) — — Change in valuation allowance (12.9 ) (0.5 ) (3.7 ) Foreign tax credits (11.0 ) — — Domestic production activities deduction 0.5 2.0 (0.5 ) Research and other credits (1.8 ) (5.1 ) 4.8 State income taxes, net of federal tax benefit (3.9 ) 0.2 1.5 Change in uncertain tax positions (15.1 ) 1.8 1.2 Nondeductible compensation 1.6 — — Nondeductible expenses and other 0.3 0.6 1.6 Effective tax rate (4.9 )% 25.2 % 31.2 % |
Deferred Tax Assets and Liabilities | The significant components of UNIFI’s deferred tax assets and liabilities consist of the following: June 24, 2018 June 25, 2017 Deferred tax assets: Investments, including unconsolidated affiliates $ 5,429 $ 7,737 State tax credits 411 338 Accrued liabilities and valuation reserves 2,829 3,952 NOL carryforwards 10,008 7,854 Intangible assets, net 2,089 3,932 Incentive compensation plans 2,130 2,487 Foreign tax credits 5,430 789 Capital loss carryforward 1,105 1,746 Research credit carryforward — 1,115 Other items 2,226 5,224 Total gross deferred tax assets 31,657 35,174 Valuation allowance (15,143 ) (17,957 ) Net deferred tax assets 16,514 17,217 Deferred tax liabilities: PP&E (20,153 ) (26,417 ) Other (736 ) (63 ) Total deferred tax liabilities (20,889 ) (26,480 ) Net deferred tax liabilities $ (4,375 ) $ (9,263 ) |
Deferred Tax Valuation Allowance Activities | The balances and activity for UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Balance at beginning of year $ (17,957 ) $ (13,550 ) $ (15,606 ) Decrease (increase) in valuation allowance 2,814 (4,407 ) 2,056 Balance at end of year $ (15,143 ) $ (17,957 ) $ (13,550 ) |
Schedule of Components of Deferred Tax Valuation Allowance | Components of UNIFI’s deferred tax valuation allowance are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Investment in a former domestic unconsolidated affiliate $ (3,942 ) $ (6,269 ) $ (6,418 ) Equity-method investment in PAL (1,580 ) (1,520 ) (2,102 ) Certain losses carried forward (1) (1,562 ) (5,924 ) (5,030 ) State NOLs (169 ) (108 ) — Other foreign NOLs (2,460 ) (3,347 ) — Foreign tax credits (5,430 ) (789 ) — Total deferred tax valuation allowance $ (15,143 ) $ (17,957 ) $ (13,550 ) (1) Certain U.S. NOLs and capital losses outside the U.S. consolidated tax filing group. |
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: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Balance at beginning of year $ 5,236 $ 4,532 $ 4,029 Gross increases related to current period tax positions 324 473 110 Gross (decreases) increases related to tax positions in prior periods (119 ) 711 1,058 Gross decreases related to settlements with tax authorities (5,234 ) (480 ) (274 ) Gross decreases related to lapse of applicable statute of limitations — — (391 ) Balance at end of year $ 207 $ 5,236 $ 4,532 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Stockholders Equity Note [Abstract] | |
Repurchases and Retirements of Common Stock | On April 23, 2014, UNIFI announced that its Board of Directors (the “Board”) had approved a stock repurchase program (the “SRP”) under which UNIFI is authorized to acquire up to $50,000 of its common stock. The SRP has no stated expiration or termination date, and there is no time limit or specific time frame otherwise for repurchases. Under the SRP, purchases may be completed in accordance with SEC regulations at prevailing market prices, through open market purchases or privately negotiated transactions, at such times and prices and in such manner as determined by management, subject to market conditions, applicable legal requirements, contractual obligations and other factors. Repurchases, if any, are expected to be financed through cash generated from operations and borrowings under the ABL Revolver, and are subject to applicable limitations and restrictions as set forth in the ABL Facility. UNIFI may discontinue repurchases at any time that management determines additional purchases are not beneficial or advisable. The following table summarizes UNIFI’s repurchases and retirements of its common stock under the SRP for the fiscal periods noted. Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs Fiscal 2014 251 $ 23.19 Fiscal 2015 349 $ 29.72 Fiscal 2016 206 $ 30.13 Fiscal 2017 — $ — Fiscal 2018 — $ — Total 806 $ 27.79 $ 27,603 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
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 June 24, 2018 with respect to the number of securities remaining available for future issuance under the 2013 Plan: Authorized under the 2013 Plan 1,000 Plus: Awards expired, forfeited or otherwise terminated unexercised from the 2008 LTIP or the 2013 Plan 369 Less: Awards granted to employees (720 ) Less: Awards granted to non-employee directors (135 ) Available for issuance under the 2013 Plan 514 |
Stock Option Valuation Assumptions | For stock options granted, the valuation models used the following assumptions: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Expected term (years) 5.2 5.0 7.6 Risk-free interest rate 2.0 % 1.4 % 2.1 % Volatility 34.3 % 37.9 % 60.5 % Dividend yield — — — |
Summary of Stock Option Activity | A summary of stock option activity for fiscal 2018 is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at June 25, 2017 478 $ 19.93 Granted 73 $ 32.61 Exercised (123 ) $ 12.49 Cancelled or forfeited (23 ) $ 32.82 Expired — $ — Outstanding at June 24, 2018 405 $ 23.73 6.4 $ 3,244 Vested and expected to vest as of June 24, 2018 405 $ 23.73 6.4 $ 3,244 Exercisable at June 24, 2018 246 $ 19.49 4.9 $ 2,976 |
Summary of RSU Activity | A summary of the RSU activity for fiscal 2018 is as follows: Non-vested Weighted Average Grant Date Fair Value Vested Total Weighted Average Grant Date Fair Value Outstanding at June 25, 2017 150 $ 27.66 131 281 $ 25.02 Granted 116 $ 33.12 — 116 $ 33.12 Vested (64 ) $ 31.39 64 — $ — Converted — $ — (47 ) (47 ) $ 26.35 Cancelled or forfeited (4 ) $ 36.31 — (4 ) $ 36.31 Outstanding at June 24, 2018 198 $ 29.50 148 346 $ 27.45 |
Stock Based Compensation Total Cost Charged Against Income | The total cost charged against income related to all stock-based compensation arrangements was as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Stock options $ 884 $ 749 $ 1,379 RSUs 4,042 1,432 961 Total compensation cost $ 4,926 $ 2,181 $ 2,340 |
Defined Contribution Plan (Tabl
Defined Contribution Plan (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Employer Matching Contribution Expense Related to 401(k) Plan | The following table presents the employer matching contribution expense related to the 401(k) Plan: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Matching contribution expense $ 2,643 $ 2,538 $ 2,331 |
Fair Value of Financial Instr51
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities of Fair Value on Recurring Basis | UNIFI’s financial assets and liabilities accounted for at fair value on a recurring basis and the level within the fair value hierarchy used to measure these items are as follows: As of June 24, 2018 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other non-current assets Level 2 $ 584 Swap B USD $ 30,000 Other non-current assets Level 2 $ 877 Swap C USD $ 25,000 Other non-current assets Level 2 $ 798 Contingent consideration — Accrued expenses Level 3 $ 529 As of June 25, 2017 Notional Amount Balance Sheet Location Fair Value Hierarchy Fair Value Swap A USD $ 20,000 Other long-term liabilities Level 2 $ 243 Swap B USD $ 30,000 Other long-term liabilities Level 2 $ 364 Swap C USD $ 25,000 Other long-term liabilities Level 2 $ 201 Contingent consideration — Accrued expenses and other long-term liabilities Level 3 $ 925 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
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 28, 2015 $ (26,752 ) $ (147 ) $ (26,899 ) Other comprehensive (loss) income, net of tax (2,929 ) 77 (2,852 ) Balance at June 26, 2016 $ (29,681 ) $ (70 ) $ (29,751 ) Other comprehensive loss, net of tax (2,691 ) (438 ) (3,129 ) Balance at June 25, 2017 $ (32,372 ) $ (508 ) $ (32,880 ) Other comprehensive (loss) income, net of tax (9,896 ) 2,243 (7,653 ) Balance at June 24, 2018 $ (42,268 ) $ 1,735 $ (40,533 ) |
Summary of Other Comprehensive (Loss) Income | A summary of other comprehensive (loss) income for fiscal 2018, 2017 and 2016 is provided as follows, noting there is no tax impact for fiscal 2016: Fiscal 2018 Fiscal 2017 Fiscal 2016 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax After-tax Other comprehensive (loss) income: Foreign currency translation adjustments $ (9,250 ) $ — $ (9,250 ) $ (2,936 ) $ — $ (2,936 ) $ (2,135 ) $ (2,135 ) Foreign currency translation adjustments for an unconsolidated affiliate (646 ) — (646 ) 245 — 245 (794 ) (794 ) Changes in interest rate swaps, net of reclassification adjustments 3,067 (824 ) 2,243 (737 ) 299 (438 ) 77 77 Other comprehensive loss, net $ (6,829 ) $ (824 ) $ (7,653 ) $ (3,428 ) $ 299 $ (3,129 ) $ (2,852 ) $ (2,852 ) |
Computation of Earnings Per S53
Computation of Earnings Per Share (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share (“EPS”) is as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Basic EPS Net income attributable to Unifi, Inc. $ 31,702 $ 32,875 $ 34,415 Weighted average common shares outstanding 18,294 18,136 17,857 Basic EPS $ 1.73 $ 1.81 $ 1.93 Diluted EPS Net income attributable to Unifi, Inc. $ 31,702 $ 32,875 $ 34,415 Weighted average common shares outstanding 18,294 18,136 17,857 Net potential common share equivalents – stock options and RSUs 343 307 558 Adjusted weighted average common shares outstanding 18,637 18,443 18,415 Diluted EPS $ 1.70 $ 1.78 $ 1.87 Excluded from the calculation of common share equivalents: Anti-dilutive common share equivalents 118 390 193 Excluded from the calculation of diluted shares: Unvested stock options that vest upon achievement of certain market conditions — — — |
Investments in Unconsolidated54
Investments in Unconsolidated Affiliates and Variable Interest Entities (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
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 Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 UNF $ 1,800 $ 2,254 $ 2,828 UNFA 21,731 20,493 24,319 Total $ 23,531 $ 22,747 $ 27,147 |
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. For UNIFI’s fiscal 2018 and 2017, PAL’s corresponding fiscal periods both consisted of 52 weeks. Depreciation and amortization for PAL for the periods presented includes amounts for PAL’s foreign subsidiaries. PAL’s current assets and shareholders’ equity accounts as of June 25, 2017 reflect a $6,800 dividend distribution made to UNIFI on June 28, 2017, subsequent to UNIFI’s fiscal 2017. As of June 24, 2018 PAL Other Total Current assets $ 289,683 $ 7,598 $ 297,281 Noncurrent assets 162,242 875 163,117 Current liabilities 71,026 3,722 74,748 Noncurrent liabilities 3,389 — 3,389 Shareholders’ equity and capital accounts 377,510 4,751 382,261 UNIFI’s portion of undistributed earnings 41,429 887 42,316 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 Fiscal Year Ended June 24, 2018 PAL Other Total Net sales $ 796,010 $ 24,097 $ 820,107 Gross profit 31,112 4,646 35,758 Income from operations 12,032 2,917 14,949 Net income 12,990 2,961 15,951 Depreciation and amortization 39,404 190 39,594 Cash received by PAL under cotton rebate program 13,797 — 13,797 Earnings recognized by PAL for cotton rebate program 13,334 — 13,334 Distributions received 9,236 3,000 12,236 For the Fiscal Year Ended June 25, 2017 PAL Other Total Net sales $ 754,285 $ 22,905 $ 777,190 Gross profit 26,275 4,877 31,152 Income from operations 10,406 3,061 13,467 Net income 7,814 2,988 10,802 Depreciation and amortization 42,801 177 42,978 Cash received by PAL under cotton rebate program 14,293 — 14,293 Earnings recognized by PAL for cotton rebate program 13,491 — 13,491 Distributions received 822 1,500 2,322 For the Fiscal Year Ended June 26, 2016 PAL Other Total Net sales $ 824,248 $ 29,463 $ 853,711 Gross profit 32,626 7,651 40,277 Income from operations 15,143 5,772 20,915 Net income 17,670 5,838 23,508 Depreciation and amortization 46,235 150 46,385 Cash received by PAL under cotton rebate program 17,057 — 17,057 Earnings recognized by PAL for cotton rebate program 16,080 — 16,080 Distributions received 1,732 3,000 4,732 |
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 June 24, 2018 $ 128,355 Initial excess capital contributions 53,363 Impairment charge recorded by UNIFI in 2007 (74,106 ) Anti-trust lawsuit against PAL in which UNIFI did not participate 2,652 Investment as of June 24, 2018 $ 110,264 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Capital Lease Payments and Future Minimum Lease Payments Under Non-Cancelable Operating Leases | Future minimum capital lease payments and future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) as of June 24, 2018 by fiscal year are: Capital leases Operating leases Fiscal 2019 $ 7,629 $ 2,281 Fiscal 2020 5,921 1,866 Fiscal 2021 2,874 1,306 Fiscal 2022 2,569 327 Fiscal 2023 193 32 Fiscal years thereafter 861 23 Total minimum lease payments $ 20,047 $ 5,835 Less estimated executory costs (746 ) Less interest (1,194 ) Present value of net minimum capital lease payments 18,107 Less current portion of capital lease obligations (6,996 ) Long-term portion of capital lease obligations $ 11,111 |
Schedule of Rental Expenses Incurred Under Operating Leases and Included in Operating Income | Rental expenses incurred under operating leases and included in operating income consist of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Rental expenses $ 4,835 $ 4,357 $ 4,867 |
Schedule of Unconditional Purchase Obligations | On a fiscal year basis, the minimum payments expected to be made as part of such commitments are as follows: Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Thereafter Unconditional purchase obligations $ 7,330 $ 6,841 $ 4,711 $ 2,245 $ 1,196 $ 17 Unconditional service obligations 2,052 1,416 1,103 986 388 351 Total unconditional obligations $ 9,382 $ 8,257 $ 5,814 $ 3,231 $ 1,584 $ 368 |
Schedule of Costs Incurred Under Purchases and Services Obligations | For fiscal 2018, 2017 and 2016, total costs incurred under these commitments consisted of the following: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Costs for unconditional purchase obligations $ 24,777 $ 26,984 $ 26,790 Costs for unconditional service obligations 2,454 2,575 641 Total $ 27,231 $ 29,559 $ 27,431 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Receivables and Payables | Related party receivables consist of the following: June 24, 2018 June 25, 2017 Salem Global Logistics, Inc. $ — $ 6 Total related party receivables (included within receivables, net) $ — $ 6 Related party payables consist of the following: June 24, 2018 June 25, 2017 Salem Leasing Corporation (included within accounts payable) $ 306 $ 298 Salem Leasing Corporation (capital lease obligation) 875 947 Total related party payables $ 1,181 $ 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 matters in the table below and the following paragraphs: For the Fiscal Year Ended Affiliated Entity Transaction Type June 24, 2018 June 25, 2017 June 26, 2016 Salem Leasing Corporation Transportation equipment costs and capital lease debt service $ 3,979 $ 3,914 $ 3,751 Salem Global Logistics, Inc. Freight service income 147 128 253 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Segment Reporting [Abstract] | |
Selected Financial Information for Polyester, Nylon, International and Other Segments | Selected financial information is presented below: For the Fiscal Year Ended June 24, 2018 Polyester Nylon International All Other Total Net sales $ 364,169 $ 102,639 $ 207,884 $ 4,220 $ 678,912 Cost of sales 333,078 92,155 163,300 3,951 592,484 Gross profit 31,091 10,484 44,584 269 86,428 Segment depreciation expense 15,893 2,197 1,648 256 19,994 Segment Profit $ 46,984 $ 12,681 $ 46,232 $ 525 $ 106,422 For the Fiscal Year Ended June 25, 2017 Polyester Nylon International All Other Total Net sales $ 355,740 $ 112,704 $ 173,686 $ 5,140 $ 647,270 Cost of sales 315,655 100,633 131,087 5,731 553,106 Gross profit (loss) 40,085 12,071 42,599 (591 ) 94,164 Segment depreciation expense 13,921 2,125 1,119 638 17,803 Segment Profit $ 54,006 $ 14,196 $ 43,718 $ 47 $ 111,967 For the Fiscal Year Ended June 26, 2016 Polyester Nylon International All Other Total Net sales $ 383,167 $ 131,715 $ 122,554 $ 6,201 $ 643,637 Cost of sales 333,638 113,906 95,666 6,795 550,005 Gross profit (loss) 49,529 17,809 26,888 (594 ) 93,632 Segment depreciation expense 11,188 1,899 885 820 14,792 Segment Profit $ 60,717 $ 19,708 $ 27,773 $ 226 $ 108,424 |
Reconciliations of Segment Gross Profit (Loss) to Consolidated Income Before Income Taxes | The reconciliations of segment gross profit (loss) to consolidated income before income taxes are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 31,091 $ 40,085 $ 49,529 Nylon 10,484 12,071 17,809 International 44,584 42,599 26,888 All Other 269 (591 ) (594 ) Segment gross profit 86,428 94,164 93,632 SG&A expenses 56,077 50,829 47,502 (Benefit) provision for bad debts (38 ) (123 ) 1,684 Other operating expense (income), net 1,590 (310 ) 2,248 Operating income 28,799 43,768 42,198 Interest income (560 ) (517 ) (610 ) Interest expense 4,935 3,578 3,528 Loss on sale of business — 1,662 — Equity in earnings of unconsolidated affiliates (5,787 ) (4,230 ) (8,963 ) Income before income taxes $ 30,211 $ 43,275 $ 48,243 |
Reconciliation of Segment Depreciation and Amortization Expense to Consolidated Depreciation and Amortization Expense | The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 15,893 $ 13,921 $ 11,188 Nylon 2,197 2,125 1,899 International 1,648 1,119 885 All Other 256 638 820 Segment depreciation expense 19,994 17,803 14,792 Other depreciation and amortization expense 2,591 2,565 2,736 Depreciation and amortization expense $ 22,585 $ 20,368 $ 17,528 |
Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures | The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 16,605 $ 25,442 $ 44,517 Nylon 1,366 1,247 2,548 International 3,099 4,734 2,755 Segment capital expenditures 21,070 31,423 49,820 Other capital expenditures 3,959 1,767 2,517 Capital expenditures $ 25,029 $ 33,190 $ 52,337 |
Reconciliation of Segment Total Assets to Consolidated Total Assets | The reconciliations of segment total assets to consolidated total assets are as follows: June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 284,261 $ 270,819 $ 243,093 Nylon 57,378 57,789 63,141 International 95,006 80,824 66,998 Segment total assets 436,645 409,432 373,232 Other current assets 30,945 27,375 13,337 Other PP&E 17,373 14,904 16,597 Other non-current assets 4,205 279 4,864 Investments in unconsolidated affiliates 112,639 119,513 117,412 Total assets $ 601,807 $ 571,503 $ 525,442 |
Product Sales Excluding All Other Category | Product sales (excluding the All Other category) are as follows: For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Polyester $ 572,053 $ 529,426 $ 505,721 Nylon 102,639 112,704 131,715 Total $ 674,692 $ 642,130 $ 637,436 |
Geographic Information for Net Sales | Geographic information is set forth below, beginning with net sales. Brazil and China are reported separately from other foreign countries when corresponding net sales for a fiscal year exceed 10% of consolidated net sales. For the Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 United States $ 420,920 $ 424,490 $ 472,287 Brazil 110,587 109,079 83,087 China 90,998 nm nm Remaining Foreign Countries 56,407 113,701 88,263 Total $ 678,912 $ 647,270 $ 643,637 Export sales from UNIFI’s U.S. operations to external customers $ 94,205 $ 104,229 $ 113,725 nm – Respective amount does not meet UNIFI’s 10% threshold for disclosure. |
Geographic Information for Long-lived Assets | Geographic information for long-lived assets is as follows: June 24, 2018 June 25, 2017 June 26, 2016 United States $ 305,229 $ 304,696 $ 292,854 Brazil 12,679 12,616 9,714 Remaining Foreign Countries 6,317 8,360 8,595 Total $ 324,225 $ 325,672 $ 311,163 |
Geographic Information for Total Assets | Geographic information for total assets is as follows: June 24, 2018 June 25, 2017 June 26, 2016 United States $ 455,963 $ 445,947 $ 427,679 Brazil 59,657 58,598 53,993 Remaining Foreign Countries 86,187 66,958 43,770 Total $ 601,807 $ 571,503 $ 525,442 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Data | Quarterly financial data and selected highlights are as follows: For the Fiscal Quarter Ended September 24, 2017 December 24, 2017 March 25, 2018 June 24, 2018 Net sales $ 164,242 $ 167,478 $ 165,867 $ 181,325 Gross profit (1) 23,292 22,676 16,556 23,904 Net income including non-controlling interest 8,960 11,802 176 10,764 Less: net loss attributable to non-controlling interest — — — — Net income attributable to Unifi, Inc. (2) $ 8,960 $ 11,802 $ 176 $ 10,764 Net income attributable to Unifi, Inc. per common share: Basic (3) $ 0.49 $ 0.65 $ 0.01 $ 0.59 Diluted (3) $ 0.48 $ 0.63 $ 0.01 $ 0.58 For the Fiscal Quarter Ended September 25, 2016 December 25, 2016 March 26, 2017 June 25, 2017 Net sales $ 159,969 $ 155,155 $ 160,896 $ 171,250 Gross profit 23,547 22,130 21,130 27,357 Net income including non-controlling interest 9,142 4,354 9,177 9,704 Less: net loss attributable to non-controlling interest (261 ) (237 ) — — Net income attributable to Unifi, Inc. (4) $ 9,403 $ 4,591 $ 9,177 $ 9,704 Net income attributable to Unifi, Inc. per common share: Basic (3) $ 0.52 $ 0.25 $ 0.50 $ 0.53 Diluted (3) $ 0.51 $ 0.25 $ 0.50 $ 0.52 (1) Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with corresponding selling price increases. (2) Net income attributable to Unifi, Inc. for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain foreign exchange income applicable to fiscal 2015. Net income attributable to Unifi, Inc. for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs in connection with a tax status change unrelated to the federal tax reform legislation signed into law in December 2017. (3) Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. (4) Net income attributable to Unifi, Inc. for the fiscal quarter ended December 25, 2016 includes a loss on sale of business of $1,662. |
Supplemental Cash Flow Inform59
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
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 Fiscal Year Ended June 24, 2018 June 25, 2017 June 26, 2016 Interest, net of capitalized interest of $190, $652 and $704, respectively $ 4,459 $ 3,282 $ 3,066 Income taxes, net of refunds 9,962 8,123 9,923 |
Background - Additional Informa
Background - Additional Information (Details) | Jun. 24, 2018Entity |
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% |
Summary of Significant Accoun61
Summary of Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Jun. 24, 2018 | |
Land Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 5 years |
Land Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 20 years |
Building and Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 15 years |
Building and Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 25 years |
Computers, Software and Office Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 3 years |
Computers, Software and Office Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 7 years |
Internal Software Development Costs [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 3 years |
Transportation Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 3 years |
Transportation Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, Useful life | 15 years |
Summary of Significant Accoun62
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Jun. 24, 2018USD ($) | |
Accounting Policies [Line Items] | |
Indefinite-Lived intangible assets | $ 0 |
Internal Software Development Costs [Member] | |
Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Summary of Significant Accoun63
Summary of Significant Accounting Policies - Schedule of Research and Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Research And Development Expense [Abstract] | |||
Research and development costs | $ 7,792 | $ 7,177 | $ 6,907 |
Summary of Significant Accoun64
Summary of Significant Accounting Policies - Schedule of Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 3,439 | $ 3,070 | $ 4,844 |
Recent Accounting Pronounceme65
Recent Accounting Pronouncements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jun. 24, 2018 | Jun. 25, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings under the modified retrospective method | $ 371,753,000 | $ 339,940,000 |
Estimated future minimum lease payments under non-cancelable operating leases | 5,835,000 | |
ASU 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease to provision for income taxes for excess tax benefits | 230,000 | |
Maximum [Member] | ASU 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings under the modified retrospective method | $ 1,000,000 |
Sale of Renewables - Additional
Sale of Renewables - Additional Information (Details) - USD ($) $ in Thousands | Dec. 23, 2016 | Dec. 25, 2016 | Jun. 25, 2017 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Loss on sale of business | $ 1,662 | $ 1,662 | |
Repreve Renewables LLC [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Majority equity ownership interest percentage by parent | 60.00% | ||
Loss on sale of business | $ 1,662 | ||
Repreve Renewables LLC [Member] | Third-Party Joint Venture Partner [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Sale of equity ownership to third party | $ 500 |
Receivables, Net - Schedule of
Receivables, Net - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Receivables [Abstract] | ||
Customer receivables | $ 87,633 | $ 83,291 |
Allowance for uncollectible accounts | (2,059) | (2,222) |
Reserves for yarn quality claims | (564) | (1,278) |
Net customer receivables | 85,010 | 79,791 |
Related party receivables | 6 | |
Other receivables | 1,263 | 1,324 |
Total receivables, net | $ 86,273 | $ 81,121 |
Receivables, Net - Allowance fo
Receivables, Net - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Allowance for Doubtful Accounts [Member] | |||
Balance at beginning of period | $ (2,222) | $ (2,839) | $ (1,596) |
Credited (charged) to costs and expenses | 38 | 123 | (1,684) |
Translation activity | 125 | 34 | (56) |
Deductions | 460 | 497 | |
Balance at end of period | (2,059) | (2,222) | (2,839) |
Reserve For Yarn Quality Claims [Member] | |||
Balance at beginning of period | (1,278) | (795) | (581) |
Credited (charged) to costs and expenses | (821) | (2,719) | (1,886) |
Translation activity | (9) | 3 | (4) |
Deductions | 1,544 | 2,233 | 1,676 |
Balance at end of period | $ (564) | $ (1,278) | $ (795) |
Inventories - Inventories Compo
Inventories - Inventories Components (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 45,448 | $ 36,748 |
Supplies | 7,314 | 6,104 |
Work in process | 8,834 | 7,399 |
Finished goods | 66,314 | 63,121 |
Gross inventories | 127,910 | 113,372 |
Inventory reserves | (1,599) | (1,967) |
Total inventories | $ 126,311 | $ 111,405 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Inventory Disclosure [Abstract] | ||
Foreign inventory valued at average cost | $ 39,870 | $ 33,231 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Other Assets Current [Abstract] | ||
Vendor deposits | $ 3,703 | $ 2,992 |
Prepaid expenses | 1,802 | 2,272 |
Value-added taxes receivable | 1,024 | 1,197 |
Other | 7 | |
Total other current assets | $ 6,529 | $ 6,468 |
Property, Plant and Equipment72
Property, Plant and Equipment, Net - PP&E Net Components (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Property Plant And Equipment [Line Items] | ||
Gross PP&E | $ 832,540 | $ 820,420 |
Less: accumulated depreciation | (619,654) | (612,355) |
Less: accumulated amortization – capital leases | (7,370) | (4,677) |
Total property, plant and equipment, net | 205,516 | 203,388 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 2,860 | 2,931 |
Land Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 15,118 | 15,066 |
Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 157,354 | 157,115 |
Assets under Capital Leases [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 34,568 | 34,568 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 589,237 | 579,211 |
Computers, Software and Office Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 19,723 | 19,360 |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | 5,029 | 4,798 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross PP&E | $ 8,651 | $ 7,371 |
Property, Plant and Equipment73
Property, Plant and Equipment, Net - Schedule of Capital Leased Assets (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Property Plant And Equipment [Line Items] | ||
Gross assets under capital leases | $ 34,568 | $ 34,568 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross assets under capital leases | 24,467 | 24,467 |
Transportation Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross assets under capital leases | 6,273 | 6,273 |
Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Gross assets under capital leases | $ 3,828 | $ 3,828 |
Property, Plant and Equipment74
Property, Plant and Equipment, Net - Schedule of Depreciation Expense and Repair and Maintenance Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 21,109 | $ 18,483 | $ 15,269 |
Repair and maintenance expenses | $ 19,761 | $ 18,319 | $ 16,819 |
Intangible Assets, Net - Compon
Intangible Assets, Net - Components of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 25,725 | $ 28,170 |
Intangible assets, accumulated amortization | (22,735) | (26,012) |
Total intangible assets, net | 2,990 | 2,158 |
Customer Lists [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 23,615 | 23,615 |
Intangible assets, accumulated amortization | (22,527) | (21,685) |
Non-compete Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 1,925 | 4,050 |
Intangible assets, accumulated amortization | (108) | (3,903) |
Trademarks, Licenses and Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 185 | 505 |
Intangible assets, accumulated amortization | $ (100) | $ (424) |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 24, 2018 | Jun. 29, 2014 | Jun. 24, 2007 | Jun. 25, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | $ 25,725 | $ 28,170 | ||
Customer Lists [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | 23,615 | 23,615 | ||
Non-compete Agreements [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Intangible assets, gross | $ 1,925 | $ 4,050 | ||
Non-compete Agreements [Member] | Polyester [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years | |||
Intangible assets, gross | $ 1,875 | |||
Trademarks [Member] | Maximum [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 3 years | |||
Dillon Texturing Operations [Member] | Customer Lists [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 13 years | |||
Dillion Draw Winding [Member ] | Customer Lists [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 9 years | |||
Dillion Draw Winding [Member ] | Non-compete Agreements [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 5 years |
Intangible Assets, Net - Amorti
Intangible Assets, Net - Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 1,110 | $ 1,381 | $ 1,701 |
Customer Lists [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | 843 | 1,020 | 1,233 |
Non-compete Agreements [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | 205 | 287 | 323 |
Trademarks, Licenses and Other [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 62 | $ 74 | $ 145 |
Intangible Assets, Net - Expect
Intangible Assets, Net - Expected Intangible Asset Amortization (Details) $ in Thousands | Jun. 24, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,019 | $ 1,075 |
2,020 | 724 |
2,021 | 442 |
2,022 | 422 |
2,023 | $ 327 |
Other Non-Current Assets - Sche
Other Non-Current Assets - Schedule of Other Assets, Noncurrent (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Interest rate swaps | $ 2,259 | |
Other | 821 | $ 613 |
Total other non-current assets | $ 3,080 | $ 613 |
Other Non-Current Assets - Addi
Other Non-Current Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jun. 24, 2018 | Jun. 01, 2017 | Feb. 24, 2017 | Jan. 05, 2017 | |
Swap A [Member] | ||||
Derivative, inception date | Jan. 5, 2017 | |||
Swap A [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 20,000,000 | |||
Swap B [Member] | ||||
Derivative, inception date | Feb. 24, 2017 | |||
Swap B [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 30,000,000 | |||
Swap C [Member] | ||||
Derivative, inception date | Jun. 1, 2017 | |||
Swap C [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 25,000,000 | |||
Swaps A, B and C [Member] | Designated Hedges [Member] | ||||
Derivative, notional amount | $ 75,000,000 | |||
Swaps A, B and C [Member] | Designated Hedges [Member] | London Interbank Offer Rate (“LIBOR”) [Member] | ||||
Derivative, average fixed interest rate | 1.90% |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Payables And Accruals [Abstract] | ||
Payroll and fringe benefits | $ 10,833 | $ 10,469 |
Utilities | 2,594 | 2,562 |
Property taxes | 835 | 771 |
Current portion of supplemental post-employment plan | 508 | 42 |
Other | 2,950 | 2,300 |
Total accrued expenses | $ 17,720 | $ 16,144 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | ||
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 18,107 | $ 25,168 | |
Total debt | 131,207 | 129,468 | |
Current portion of capital lease obligations | (6,996) | (7,060) | |
Current portion of other long-term debt | (10,000) | (10,000) | |
Unamortized debt issuance costs | (658) | (1,026) | |
Total long-term debt | $ 113,553 | 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 | 4.10% | ||
Long-term Debt | $ 28,100 | 9,300 | |
ABL Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Maturity Date | [1] | 2020-03 | |
Weighted average interest rate | [1] | 3.70% | |
Outstanding balances of term loan | [1] | $ 85,000 | $ 95,000 |
[1] | Includes the effects of interest rate swaps. |
Long-Term Debt - Long-Term De83
Long-Term Debt - Long-Term Debt Components (Details) (Parenthetical) | 12 Months Ended |
Jun. 24, 2018 | |
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) - USD ($) | 12 Months Ended | |||
Jun. 24, 2018 | Jun. 25, 2017 | Nov. 18, 2016 | Mar. 26, 2015 | |
Debt Instrument [Line Items] | ||||
Annual interest rate added to federal funds rate | 0.50% | |||
Annual interest rate added to LIBOR rate | 1.00% | |||
Capital lease obligations incurred | $ 0 | $ 14,070,000 | ||
Capital Lease Obligations Entered into During Current Fiscal Year [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate of capital lease | 3.90% | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |||
Standby Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, current borrowing capacity | $ 400,000 | |||
ABL Facility [Member] | ||||
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 | |||
Foreign capital stock, maximum voting stock of first tier foreign subsidiaries | 65.00% | |||
Minimum monthly fixed charge coverage ratio covenant | 1.05 | |||
Fixed charge coverage ratio | 0.93 | |||
ABL Facility [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |||
Line of credit facility, remaining borrowing capacity | $ 53,245,000 | |||
ABL Facility [Member] | Revolving Credit Facility [Member] | Trigger Level [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, remaining borrowing capacity | $ 23,125,000 | |||
ABL Revolver [Member] | Minimum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.50% | |||
ABL Revolver [Member] | Minimum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
ABL Revolver [Member] | Maximum [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.00% | |||
ABL Revolver [Member] | Maximum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
ABL Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 100,000,000 | |||
Quarterly Amortization Payments [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, periodic payment, principal | $ 2,500,000 |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Outstanding Debt Obligations (Details) $ in Thousands | Jun. 24, 2018USD ($) |
Debt Instrument Redemption [Line Items] | |
Fiscal 2,019 | $ 16,996 |
Fiscal 2,020 | 108,619 |
Fiscal 2,021 | 2,624 |
Fiscal 2,022 | 2,417 |
Fiscal 2,023 | 91 |
Thereafter | 460 |
Capital Lease Obligations [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2,019 | 6,996 |
Fiscal 2,020 | 5,519 |
Fiscal 2,021 | 2,624 |
Fiscal 2,022 | 2,417 |
Fiscal 2,023 | 91 |
Thereafter | 460 |
ABL Revolver [Member] | |
Debt Instrument Redemption [Line Items] | |
Fiscal 2,020 | 28,100 |
ABL Term Loan [Member] | |
Debt Instrument Redemption [Line Items] | |
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 | Jun. 24, 2018 | Jun. 25, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Supplemental post-employment plan | $ 3,045 | $ 2,822 |
Uncertain tax positions | 131 | 5,077 |
Other | 2,161 | 3,905 |
Total other long-term liabilities | $ 5,337 | $ 11,804 |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (7,852) | $ 2,689 | $ 21,679 |
Foreign | 38,063 | 40,586 | 26,564 |
Income before income taxes | $ 30,211 | $ 43,275 | $ 48,243 |
Income Taxes - Schedule of (Ben
Income Taxes - Schedule of (Benefit) Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Current: | |||
Federal | $ (4,918) | $ (6,082) | $ 1,545 |
State | (416) | (130) | 764 |
Foreign | 9,639 | 10,224 | 6,781 |
Total current tax expense | 4,305 | 4,012 | 9,090 |
Deferred: | |||
Federal | (5,315) | 6,602 | 6,304 |
State | (872) | 162 | 255 |
Foreign | 391 | 122 | (576) |
Total deferred tax expense | (5,796) | 6,886 | 5,983 |
(Benefit) provision for income taxes | $ (1,491) | $ 10,898 | $ 15,073 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 24, 2018 | Dec. 31, 2017 | Jun. 25, 2017 | Jun. 26, 2016 |
Income Taxes [Line Items] | ||||||
U.S. Federal corporate income tax rate | 21.00% | 35.00% | 28.30% | 35.00% | 35.00% | |
Tax benefit as a result of the net change in deferred tax balances | $ 4,297 | |||||
Tax benefit adjustment to provisional deferred rate | $ 203 | |||||
Increase in effective tax rate | 0.70% | |||||
Provisional charge, net of foreign tax credits | $ 3,901 | $ 5,430 | $ 3,901 | $ 789 | ||
Adjustment to provision for deferred tax asset | $ 2,301 | |||||
Deferred tax assets, Increase in effective tax rate | 7.60% | |||||
Net operating loss | 868 | |||||
Increase (decrease) in valuation allowances due to utilization of prior years net operating losses | (917) | |||||
Net operating loss carryforwards subject to expiration | 42,721 | |||||
Capital loss carryforward | 1,105 | 1,746 | ||||
U.S state net operating loss carryforwards | 43,589 | |||||
Net operating loss carryforward to offset future taxable income | $ 8,426 | |||||
U.S. Federal Capital Loss Carryforwards [Member] | ||||||
Income Taxes [Line Items] | ||||||
Capital loss carryforward | 4,489 | |||||
Net operating loss carryforwards beginning expiration year | 2,027 | |||||
Foreign Tax Credits [Member] | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | 3,808 | $ 789 | $ (1,680) | |||
Increase (decrease) in valuation allowances due to utilization of prior years net operating losses | 4,640 | |||||
U.S federal net operating loss carry a full valuation allowance | 1,639 | |||||
U.S. Federal Foreign Tax Credits [Member] | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | 3,433 | |||||
U.S federal net operating loss carry a full valuation allowance | $ 3,791 | |||||
Net operating loss carryforwards beginning expiration year | 2,028 | |||||
Equity method Investment in Parkdale America LLC [Member] | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | (582) | (1,159) | ||||
Increase (decrease) in valuation allowances due to utilization of prior years net operating losses | $ 635 | |||||
Foreign Losses [Member] | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ 4,241 | |||||
Deferred Tax Assets Related to Renewables [Member] | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance, deferred tax asset, increase (decrease), amount | 858 | |||||
U.S. Federal NOL [Member] | ||||||
Income Taxes [Line Items] | ||||||
U.S federal net operating loss carry a full valuation allowance | $ 6,914 | |||||
Net operating loss carryforwards expiration year | 2,037 | 2,035 | ||||
U.S federal net operating loss carryforwards | $ 19,511 | |||||
U.S federal net operating loss carryforwards not subject to expiration | 6,930 | |||||
Net operating loss carryforwards subject to expiration | 12,581 | |||||
State Net Operating Loss Carry Forwards [Member] | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carryforwards expiration year | 2,022 | |||||
Earliest Tax Year [Member] | ||||||
Income Taxes [Line Items] | ||||||
State deferred tax expense component, utilization of net operating loss carryforwards | 116 | $ 26 | 42 | |||
Foreign deferred tax expense component, utilization of net operating loss carryforwards | 773 | 756 | 0 | |||
Valuation allowance, deferred tax asset, increase (decrease), amount | 2,814 | 4,407 | (2,056) | |||
Unrecognized tax benefits that would impact effective tax rate | 130 | |||||
Unrecognized tax benefits, income tax penalties and interest expense | (1,030) | (42) | (23) | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 41 | $ 773 | $ 279 | |||
Undistributed earnings of foreign subsidiaries | 113,855 | |||||
U.S. Federal [Member] | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss | 843 | |||||
U.S. Federal [Member] | Earliest Tax Year [Member] | ||||||
Income Taxes [Line Items] | ||||||
Open tax year | 2,013 | |||||
Foreign Net Operating Loss Carry Forwards [Member] | ||||||
Income Taxes [Line Items] | ||||||
U.S federal net operating loss carry a full valuation allowance | $ 9,866 | |||||
Net operating loss carryforwards beginning expiration year | 2,019 | |||||
Net Operating Loss Held Outside U.S Consolidated Tax Filing Group [Member] | ||||||
Income Taxes [Line Items] | ||||||
U.S state net operating loss carryforwards | $ 19,192 | |||||
Net operating loss carryforward to offset future taxable income | $ 12,279 | |||||
Net Operating Loss Held Outside U.S Consolidated Tax Filing Group [Member] | State Net Operating Loss Carry Forwards [Member] | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carryforwards beginning expiration year | 2,019 | |||||
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | North Carolina Department of Revenue [Member] | ||||||
Income Taxes [Line Items] | ||||||
Open tax year | 2,013 | |||||
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | North Carolina Department of Revenue [Member] | ||||||
Income Taxes [Line Items] | ||||||
Open tax year | 2,014 |
Income Taxes - Reconciliation f
Income Taxes - Reconciliation from Federal Statutory Tax Rate to Effective Tax Rate (Details) | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||||
Federal statutory tax rate | 21.00% | 35.00% | 28.30% | 35.00% | 35.00% |
Foreign income taxed at different rates | (2.40%) | (10.20%) | (7.70%) | ||
Repatriation of foreign earnings and withholding taxes | 1.80% | 1.40% | (1.00%) | ||
Repatriation of foreign earnings due to tax reform | 23.90% | ||||
Revaluation of U.S. deferred balances due to tax reform | (14.20%) | ||||
Change in valuation allowance | (12.90%) | (0.50%) | (3.70%) | ||
Foreign tax credits | (11.00%) | ||||
Domestic production activities deduction | 0.50% | 2.00% | (0.50%) | ||
Research and other credits | (1.80%) | (5.10%) | 4.80% | ||
State income taxes, net of federal tax benefit | (3.90%) | 0.20% | 1.50% | ||
Change in uncertain tax positions | (15.10%) | 1.80% | 1.20% | ||
Nondeductible compensation | 1.60% | ||||
Nondeductible expenses and other | 0.30% | 0.60% | 1.60% | ||
Effective tax rate | (4.90%) | 25.20% | 31.20% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Dec. 31, 2017 | Jun. 25, 2017 | Jun. 26, 2016 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||||
Investments, including unconsolidated affiliates | $ 5,429 | $ 7,737 | ||
State tax credits | 411 | 338 | ||
Accrued liabilities and valuation reserves | 2,829 | 3,952 | ||
NOL carryforwards | 10,008 | 7,854 | ||
Intangible assets, net | 2,089 | 3,932 | ||
Incentive compensation plans | 2,130 | 2,487 | ||
Provisional charge, net of foreign tax credits | 5,430 | $ 3,901 | 789 | |
Capital loss carryforward | 1,105 | 1,746 | ||
Research credit carryforward | 1,115 | |||
Other items | 2,226 | 5,224 | ||
Total gross deferred tax assets | 31,657 | 35,174 | ||
Valuation allowance | (15,143) | (17,957) | $ (13,550) | |
Net deferred tax assets | 16,514 | 17,217 | ||
PP&E | (20,153) | (26,417) | ||
Other | (736) | (63) | ||
Total deferred tax liabilities | (20,889) | (26,480) | ||
Net deferred tax liabilities | $ (4,375) | $ (9,263) |
Income Taxes - Deferred Tax Val
Income Taxes - Deferred Tax Valuation Allowance Activities (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ (17,957) | $ (13,550) | $ (15,606) |
Decrease (increase) in valuation allowance | 2,814 | (4,407) | 2,056 |
Balance at end of period | $ (15,143) | $ (17,957) | $ (13,550) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Valuation Allowance (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | $ (15,143) | $ (17,957) | $ (13,550) | |
Investment in Former Domestic Unconsolidated Affiliate [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | (3,942) | (6,269) | (6,418) | |
Equity-method Investment in Parkdale America LLC [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | (1,580) | (1,520) | (2,102) | |
Certain Losses Carried Forward [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | [1] | (1,562) | (5,924) | $ (5,030) |
State NOLs [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | (169) | (108) | ||
Other Foreign NOLs [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | (2,460) | (3,347) | ||
Foreign Tax Credits [Member] | ||||
Valuation Allowance [Line Items] | ||||
Deferred tax valuation allowance | $ (5,430) | $ (789) | ||
[1] | Certain U.S. NOLs and capital losses outside the U.S. consolidated tax filing group. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Income Tax Uncertainties [Abstract] | |||
Balance at beginning of year | $ 5,236 | $ 4,532 | $ 4,029 |
Gross increases related to current period tax positions | 324 | 473 | 110 |
Gross (decreases) increases related to tax positions in prior periods | (119) | 711 | 1,058 |
Gross decreases related to settlements with tax authorities | (5,234) | (480) | (274) |
Gross decreases related to lapse of applicable statute of limitations | (391) | ||
Balance at end of year | $ 207 | $ 5,236 | $ 4,532 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | Apr. 23, 2014 | |
Stockholders Equity Note [Abstract] | ||||
Stock Repurchase Program, Authorized Amount | $ 50,000,000 | |||
Payments of Dividends | $ 0 | $ 0 | $ 0 |
Shareholders' Equity - Repurcha
Shareholders' Equity - Repurchases and Retirements of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | 60 Months Ended | ||
Jun. 26, 2016 | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 24, 2018 | |
Stockholders Equity Note [Abstract] | ||||
Stock Repurchased and Retired During Period, Shares | 206 | 349 | 251 | 806 |
Average price paid per share (in dollars per share) | $ 30.13 | $ 29.72 | $ 23.19 | $ 27.79 |
Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs | $ 27,603 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 56 Months Ended | |||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | Jun. 25, 2018 | Oct. 23, 2013 | |
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 | 73,000 | ||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 32.61 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 4,047 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | ||||
Proceeds from stock options exercised | $ 219 | $ 2,787 | $ 181 | ||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ 442 | $ 599 | $ 592 | ||
Stock Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | ||||
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $ 32.61 | $ 28.82 | $ 32.36 | ||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value | $ 11.14 | $ 10.13 | $ 20.27 | ||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 707 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 4 months 24 days | ||||
Share-based compensation arrangement by share-based payment award, options, exercises in period, intrinsic value | $ 2,703 | $ 5,802 | $ 598 | ||
Proceeds from stock options exercised | 219 | 2,787 | 181 | ||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ 398 | $ 1,517 | $ 155 | ||
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 | 73,000 | 153,000 | 82,000 | ||
RSUs Issued to Key Employees [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 86,000 | 150,000 | 20,000 | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 32.16 | $ 27.66 | $ 27.46 | ||
RSUs Issued to Non-Employee Directors [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 | 30,000 | 31,000 | 28,000 | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 35.83 | $ 29.09 | $ 28.08 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 3,340 | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 8 months 12 days | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested and expected to vest, number | 346,000 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, outstanding | $ 10,918 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested, number | 148,000 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, vested | $ 4,650 | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, converted in period, aggregate intrinsic value | 1,620 | $ 2,120 | $ 553 | ||
Employee service share-based compensation, tax benefit realized from exercise of stock options | $ 247 | $ 806 | $ 221 | ||
The 2013 Incentive Compensation Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, Number of shares authorized | 1,000,000 | ||||
The 2013 Incentive Compensation Plan [Member] | RSUs Issued to Non-Employee Directors [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 | 135,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Number of Securities Remaining Available for Future Issuance (Details) - shares | 12 Months Ended | 56 Months Ended | |||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | Jun. 25, 2018 | Oct. 23, 2013 | |
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 | (30,000) | (31,000) | (28,000) | ||
The 2013 Incentive Compensation Plan [Member] | |||||
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 | 514,000 | ||||
The 2013 Incentive Compensation Plan [Member] | Awards Expired, Forfeited or Otherwise Terminated Unexercised From the 2008 LTIP or the 2013 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Plus: Awards expired, forfeited or otherwise terminated unexercised from the 2008 LTIP or the 2013 Plan | 369,000 | ||||
The 2013 Incentive Compensation Plan [Member] | Awards Granted to Employees [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Less: Awards granted to employees | (720,000) | ||||
The 2013 Incentive Compensation Plan [Member] | 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 | (135,000) |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Valuation Assumptions (Details) | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |||
Expected term (years) | 5 years 2 months 12 days | 5 years | 7 years 7 months 6 days |
Risk-free interest rate | 2.00% | 1.40% | 2.10% |
Volatility | 34.30% | 37.90% | 60.50% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - S100
Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jun. 24, 2018USD ($)$ / sharesshares | |
Employee Service Share Based Compensation Aggregate Disclosures [Abstract] | |
Stock Options, Outstanding at June 26, 2016 | shares | 478 |
Stock Options, Granted | shares | 73 |
Stock Options, Exercised | shares | (123) |
Stock Options, Cancelled or forfeited | shares | (23) |
Stock Options, Outstanding at June 25, 2017 | shares | 405 |
Stock Options, Vested and expected to vest as of June 25, 2017 | shares | 405 |
Stock Options, Exercisable at June 25, 2017 | shares | 246 |
Weighted Average Exercise Price, Outstanding at June 26, 2016 | $ / shares | $ 19.93 |
Weighted Average Exercise Price, Granted | $ / shares | 32.61 |
Weighted Average Exercise Price, Exercised | $ / shares | 12.49 |
Weighted Average Exercise Price, Cancelled or forfeited | $ / shares | 32.82 |
Weighted Average Exercise Price, Outstanding at June 25, 2017 | $ / shares | 23.73 |
Weighted Average Exercise Price, Vested and expected to vest as of June 25, 2017 | $ / shares | 23.73 |
Weighted Average Exercise Price, Exercisable at June 25, 2017 | $ / shares | $ 19.49 |
Weighted Average Remaining Contractual Life (Years), Outstanding at June 25, 2017 | 6 years 4 months 24 days |
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest as of June 25, 2017 | 6 years 4 months 24 days |
Weighted Average Remaining Contractual Life (Years), Exercisable at June 25, 2017 | 4 years 10 months 24 days |
Aggregate Intrinsic Value, Outstanding at June 25, 2017 | $ | $ 3,244 |
Aggregate Intrinsic Value, Vested and expected to vest as of June 25, 2017 | $ | 3,244 |
Aggregate Intrinsic Value, Exercisable at June 25, 2017 | $ | $ 2,976 |
Stock-Based Compensation - S101
Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Jun. 24, 2018$ / sharesshares | |
Nonvested [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding (in shares) | 150 |
Granted (in shares) | 116 |
Vested (in shares) | 64 |
Cancelled or forfeited (in shares) | (4) |
Outstanding (in shares) | 198 |
Outstanding (in dollars per share) | $ / shares | $ 27.66 |
Granted (in dollars per share) | $ / shares | 33.12 |
Vested (in dollars per share) | $ / shares | 31.39 |
Cancelled or forfeited (in dollars per share) | $ / shares | 36.31 |
Outstanding (in dollars per share) | $ / shares | $ 29.50 |
Vested [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding (in shares) | 131 |
Vested (in shares) | 64 |
Converted (in shares) | (47) |
Outstanding (in shares) | 148 |
Total Nonvested and Vested [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding (in shares) | 281 |
Granted (in shares) | 116 |
Converted (in shares) | (47) |
Cancelled or forfeited (in shares) | (4) |
Outstanding (in shares) | 346 |
Outstanding (in dollars per share) | $ / shares | $ 25.02 |
Granted (in dollars per share) | $ / shares | 33.12 |
Converted (in dollars per share) | $ / shares | 26.35 |
Cancelled or forfeited (in dollars per share) | $ / shares | 36.31 |
Outstanding (in dollars per share) | $ / shares | $ 27.45 |
Stock-Based Compensation - S102
Stock-Based Compensation - Stock Based Compensation Total Cost Charged Against Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation cost | $ 4,926 | $ 2,181 | $ 2,340 |
Stock options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation cost | 884 | 749 | 1,379 |
RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation cost | $ 4,042 | $ 1,432 | $ 961 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Details) - Retirement Savings Plan [Member] | 12 Months Ended |
Jun. 24, 2018 | |
Contribution for the First 3% [Member] | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan, employer matching contribution percentage | 100.00% |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 3.00% |
Contribution for the Next 2% [Member] | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan, employer matching contribution percentage | 50.00% |
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 2.00% |
Defined Contribution Plan - Sch
Defined Contribution Plan - Schedule of Employer Matching Contribution Expense Related to 401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |||
Matching contribution expense | $ 2,643 | $ 2,538 | $ 2,331 |
Fair Value of Financial Inst105
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Additional Information (Details) | May 18, 2012USD ($) | Jun. 24, 2018USD ($) | Jun. 25, 2017USD ($) | Jun. 26, 2016USD ($) | Jun. 01, 2017USD ($) | Feb. 24, 2017USD ($) | Jan. 05, 2017USD ($) | Dec. 31, 2013USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Interest expense | $ 4,935,000 | $ 3,578,000 | $ 3,528,000 | |||||
Fair value assets and liabilities amount transfers into or out of the levels | 0 | 0 | 0 | |||||
Non-financial assets or liabilities of fair value recurring or non-recurring basis | $ 0 | |||||||
Dilion [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Business combination, contingent consideration liability | $ 2,500,000 | |||||||
Swap A [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, inception date | Jan. 5, 2017 | |||||||
Swap A [Member] | Designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 20,000,000 | |||||||
Swap B [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, inception date | Feb. 24, 2017 | |||||||
Swap B [Member] | Designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 30,000,000 | |||||||
Swap C [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, inception date | Jun. 1, 2017 | |||||||
Swap C [Member] | Designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 25,000,000 | |||||||
Swaps A, B and C [Member] | Designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 75,000,000 | |||||||
Interest expense | $ 319,000 | 42,000 | ||||||
Swaps A, B and C [Member] | Designated Hedges [Member] | LIBOR [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, average fixed interest rate | 1.90% | |||||||
Swap D [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Maximum length of time hedged in interest rate cash flow hedge | 5 years | |||||||
Derivative, fixed interest rate | 1.06% | |||||||
Swap D [Member] | Designated Hedges [Member] | Cash Flow Hedging [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Derivative, notional amount | $ 50,000,000 | |||||||
Derivative, inception date | May 18, 2012 | |||||||
Derivative, termination date | May 24, 2017 | |||||||
Swap D [Member] | Non-designated Hedges [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Interest expense | $ 178,000 | $ 375,000 | ||||||
Foreign Exchange Forward [Member] | ||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||||
Number of foreign currency derivatives held | 0 | 0 |
Fair Value of Financial Inst106
Fair Value of Financial Instruments and Non-Financial Assets and Liabilities - Schedule of Financial Assets and Liabilities of Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value | $ 2,259 | |
Accrued Expenses and Other Long-term Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration | 529 | $ 925 |
Swap A [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 20,000 | |
Fair Value | 584 | |
Swap A [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 20,000 | |
Fair Value | 243 | |
Swap B [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 30,000 | |
Fair Value | 877 | |
Swap B [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 30,000 | |
Fair Value | 364 | |
Swap C [Member] | Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 25,000 | |
Fair Value | $ 798 | |
Swap C [Member] | Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Notional Amount | 25,000 | |
Fair Value | $ 201 |
Accumulated Other Comprehens107
Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (32,880) | $ (29,751) | $ (26,899) |
Other comprehensive (loss) income, net of tax | (7,653) | (3,129) | (2,852) |
Ending balance | (40,533) | (32,880) | (29,751) |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (32,372) | (29,681) | (26,752) |
Other comprehensive (loss) income, net of tax | (9,896) | (2,691) | (2,929) |
Ending balance | (42,268) | (32,372) | (29,681) |
Changes in Interest Rate Swaps [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (508) | (70) | (147) |
Other comprehensive (loss) income, net of tax | 2,243 | (438) | 77 |
Ending balance | $ 1,735 | $ (508) | $ (70) |
Accumulated Other Comprehens108
Accumulated Other Comprehensive Loss - Summary of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments, Pre-tax | $ (9,250) | $ (2,936) | $ (2,135) |
Changes in interest rate swaps, net of reclassification adjustments, Pre-tax | 3,067 | (737) | 77 |
Other comprehensive loss, net, Pre-tax | (6,829) | (3,428) | (2,852) |
Changes in interest rate swaps, net of reclassification adjustments, Tax | (824) | 299 | |
Other comprehensive loss, net, Tax | (824) | 299 | |
Foreign currency translation adjustments | (9,250) | (2,936) | (2,135) |
Changes in interest rate swaps, net of reclassification adjustments, After-tax | 2,243 | (438) | 77 |
Other comprehensive loss, net | (7,653) | (3,129) | (2,852) |
Unconsolidated Affiliates [Member] | |||
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments, Pre-tax | (646) | 245 | (794) |
Foreign currency translation adjustments | $ (646) | $ 245 | $ (794) |
Computation of Earnings Per 109
Computation of Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 25, 2016 | Sep. 25, 2016 | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net income attributable to Unifi, Inc. | $ 10,764 | [1] | $ 176 | [1] | $ 11,802 | [1] | $ 8,960 | [1] | $ 9,704 | [2] | $ 9,177 | [2] | $ 4,591 | [2] | $ 9,403 | [2] | $ 31,702 | $ 32,875 | $ 34,415 |
Weighted average common shares outstanding (in shares) | 18,294 | 18,136 | 17,857 | ||||||||||||||||
Basic EPS (in dollars per share) | $ 0.59 | [3] | $ 0.01 | [3] | $ 0.65 | [3] | $ 0.49 | [3] | $ 0.53 | [3] | $ 0.50 | [3] | $ 0.25 | [3] | $ 0.52 | [3] | $ 1.73 | $ 1.81 | $ 1.93 |
Net potential common share equivalents – stock options and RSUs (in shares) | 343 | 307 | 558 | ||||||||||||||||
Adjusted weighted average common shares outstanding (in shares) | 18,637 | 18,443 | 18,415 | ||||||||||||||||
Diluted EPS (in dollars per share) | $ 0.58 | [3] | $ 0.01 | [3] | $ 0.63 | [3] | $ 0.48 | [3] | $ 0.52 | [3] | $ 0.50 | [3] | $ 0.25 | [3] | $ 0.51 | [3] | $ 1.70 | $ 1.78 | $ 1.87 |
Excluded from the calculation of common share equivalents: | |||||||||||||||||||
Anti-dilutive common share equivalents (in shares) | 118 | 390 | 193 | ||||||||||||||||
[1] | Net income attributable to Unifi, Inc. for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain foreign exchange income applicable to fiscal 2015. Net income attributable to Unifi, Inc. for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs in connection with a tax status change unrelated to the federal tax reform legislation signed into law in December 2017. | ||||||||||||||||||
[2] | Net income attributable to Unifi, Inc. for the fiscal quarter ended December 25, 2016 includes a loss on sale of business of $1,662. | ||||||||||||||||||
[3] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. |
Investments in Unconsolidate110
Investments in Unconsolidated Affiliates and Variable Interest Entities - Additional Information (Details) $ in Thousands | Jun. 28, 2017USD ($) | Jun. 24, 2018USD ($)FuturesContract | Dec. 31, 2017 | Jun. 25, 2017USD ($) | Jun. 26, 2016USD ($) | Oct. 31, 2009 | Sep. 30, 2000 |
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 112,639 | $ 119,513 | |||||
Distributions received | $ 12,236 | $ 2,322 | $ 4,732 | ||||
Parkdale America LLC [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 34.00% | ||||||
Number of manufacturing facilities | 13 | ||||||
Number of futures contracts designated as cash flow hedges | FuturesContract | 0 | ||||||
Equity method investments | $ 110,264 | ||||||
Distributions received | $ 6,800 | 9,236 | $ 822 | 1,732 | |||
Parkdale America LLC [Member] | EAP Program [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Deferred revenue | 0 | 0 | 0 | ||||
Parkdale America LLC [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Number of major customers | 5 | ||||||
Parkdale America LLC [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Concentration risk, percentage | 78.00% | ||||||
Parkdale America LLC [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Concentration risk, percentage | 73.00% | ||||||
UNF [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 50.00% | ||||||
UNF America [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 50.00% | ||||||
UNF and UNF America [Member] | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investments | 2,375 | ||||||
Purchase commitment, remaining minimum amount committed | 2,489 | ||||||
Accounts payable, related parties | $ 2,301 | 2,301 | |||||
Percentage of current and total assets and total liabilities ccounted for by equity method investments | 3.00% | ||||||
Distributions received | $ 3,000 | $ 1,500 | $ 3,000 |
Investments in Unconsolidate111
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Reconciliation Between Share of Underlying Equity (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 112,639 | $ 119,513 |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Underlying equity as of June 24, 2018 | 128,355 | |
Equity method investments | 110,264 | |
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 |
Investments in Unconsolidate112
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Raw Material Purchases under Supply Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
UNF [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Raw material purchases under supply agreement | $ 1,800 | $ 2,254 | $ 2,828 |
UNF America [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Raw material purchases under supply agreement | 21,731 | 20,493 | 24,319 |
UNF and UNF America [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Raw material purchases under supply agreement | $ 23,531 | $ 22,747 | $ 27,147 |
Investments in Unconsolidate113
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | $ 297,281 | $ 258,160 |
Noncurrent assets | 163,117 | 184,457 |
Current liabilities | 74,748 | 57,977 |
Noncurrent liabilities | 3,389 | 3,263 |
Shareholders’ equity and capital accounts | 382,261 | 381,377 |
UNIFI’s portion of undistributed earnings | 42,316 | |
Parkdale America LLC [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 289,683 | 247,820 |
Noncurrent assets | 162,242 | 183,418 |
Current liabilities | 71,026 | 54,389 |
Noncurrent liabilities | 3,389 | 3,263 |
Shareholders’ equity and capital accounts | 377,510 | 373,586 |
UNIFI’s portion of undistributed earnings | 41,429 | |
UNF and UNF America [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Current assets | 7,598 | 10,340 |
Noncurrent assets | 875 | 1,039 |
Current liabilities | 3,722 | 3,588 |
Shareholders’ equity and capital accounts | 4,751 | $ 7,791 |
UNIFI’s portion of undistributed earnings | $ 887 |
Investments in Unconsolidate114
Investments in Unconsolidated Affiliates and Variable Interest Entities - Schedule of Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | Jun. 28, 2017 | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 |
Schedule Of Equity Method Investments [Line Items] | ||||
Net sales | $ 820,107 | $ 777,190 | $ 853,711 | |
Gross profit | 35,758 | 31,152 | 40,277 | |
Income from operations | 14,949 | 13,467 | 20,915 | |
Net income | 15,951 | 10,802 | 23,508 | |
Depreciation and amortization | 39,594 | 42,978 | 46,385 | |
Cash received by PAL under cotton rebate program | 13,797 | 14,293 | 17,057 | |
Earnings recognized by PAL for cotton rebate program | 13,334 | 13,491 | 16,080 | |
Distributions received | 12,236 | 2,322 | 4,732 | |
Parkdale America LLC [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Net sales | 796,010 | 754,285 | 824,248 | |
Gross profit | 31,112 | 26,275 | 32,626 | |
Income from operations | 12,032 | 10,406 | 15,143 | |
Net income | 12,990 | 7,814 | 17,670 | |
Depreciation and amortization | 39,404 | 42,801 | 46,235 | |
Cash received by PAL under cotton rebate program | 13,797 | 14,293 | 17,057 | |
Earnings recognized by PAL for cotton rebate program | 13,334 | 13,491 | 16,080 | |
Distributions received | $ 6,800 | 9,236 | 822 | 1,732 |
UNF and UNF America [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Net sales | 24,097 | 22,905 | 29,463 | |
Gross profit | 4,646 | 4,877 | 7,651 | |
Income from operations | 2,917 | 3,061 | 5,772 | |
Net income | 2,961 | 2,988 | 5,838 | |
Depreciation and amortization | 190 | 177 | 150 | |
Distributions received | $ 3,000 | $ 1,500 | $ 3,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Sep. 30, 2004 | Jun. 24, 2018 |
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 |
Commitments and Contingencie116
Commitments and Contingencies - Schedule of Future Minimum Capital Lease Payments and Future Minimum Lease Payments under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Commitments And Contingencies Disclosure [Abstract] | ||
Fiscal 2,019 | $ 7,629 | |
Fiscal 2,020 | 5,921 | |
Fiscal 2,021 | 2,874 | |
Fiscal 2,022 | 2,569 | |
Fiscal 2,023 | 193 | |
Fiscal years thereafter | 861 | |
Total minimum lease payments | 20,047 | |
Less estimated executory costs | (746) | |
Less interest | (1,194) | |
Present value of net minimum capital lease payments | 18,107 | $ 25,168 |
Less current portion of capital lease obligations | (6,996) | $ (7,060) |
Long-term portion of capital lease obligations | 11,111 | |
Fiscal 2,019 | 2,281 | |
Fiscal 2,020 | 1,866 | |
Fiscal 2,021 | 1,306 | |
Fiscal 2,022 | 327 | |
Fiscal 2,023 | 32 | |
Fiscal years thereafter | 23 | |
Total minimum lease payments | $ 5,835 |
Commitments and Contingencie117
Commitments and Contingencies - Schedule of Rental Expenses Incurred Under Operating Leases and Included in Operating Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rental expenses | $ 4,835 | $ 4,357 | $ 4,867 |
Commitments and Contingencie118
Commitments and Contingencies - Schedule of Unconditional Purchase Obligations (Details) $ in Thousands | Jun. 24, 2018USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Fiscal 2,019 | $ 9,382 |
Fiscal 2,020 | 8,257 |
Fiscal 2,021 | 5,814 |
Fiscal 2,022 | 3,231 |
Fiscal 2,023 | 1,584 |
Thereafter | 368 |
Purchase Obligations [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Fiscal 2,019 | 7,330 |
Fiscal 2,020 | 6,841 |
Fiscal 2,021 | 4,711 |
Fiscal 2,022 | 2,245 |
Fiscal 2,023 | 1,196 |
Thereafter | 17 |
Service Obligations [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Fiscal 2,019 | 2,052 |
Fiscal 2,020 | 1,416 |
Fiscal 2,021 | 1,103 |
Fiscal 2,022 | 986 |
Fiscal 2,023 | 388 |
Thereafter | $ 351 |
Commitments and Contingencie119
Commitments and Contingencies - Schedule of Costs Incurred Under Purchases and Services Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Costs for unconditional purchase obligations | $ 24,777 | $ 26,984 | $ 26,790 |
Costs for unconditional service obligations | 2,454 | 2,575 | 641 |
Total | $ 27,231 | $ 29,559 | $ 27,431 |
Related Party Transactions - Re
Related Party Transactions - Related Party Receivables and Payables (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Related Party Transaction [Line Items] | ||
Related party receivables | $ 6 | |
Capital lease obligations | $ 18,107 | 25,168 |
Total related party payables | 1,181 | 1,245 |
Salem Global Logistics Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 6 | |
Salem Leasing Corporation [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable, related parties | 306 | 298 |
Capital lease obligations | $ 875 | $ 947 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | 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 | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Salem Leasing Corporation [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses with related party | $ 3,979 | $ 3,914 | $ 3,751 |
Salem Global Logistics Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues from related parties | $ 147 | $ 128 | $ 253 |
Business Segment Information -
Business Segment Information - Additional Information (Details) - Segment | 12 Months Ended | |
Jun. 24, 2018 | Dec. 23, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 3 | |
Renewables [Member] | ||
Segment Reporting Information [Line Items] | ||
Majority equity ownership interest percentage by parent | 60.00% |
Business Segment Information124
Business Segment Information - Selected Financial Information for Polyester, Nylon, International and Other Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 25, 2016 | Sep. 25, 2016 | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 171,250 | $ 160,896 | $ 155,155 | $ 159,969 | $ 678,912 | $ 647,270 | $ 643,637 | ||||
Cost of sales | 592,484 | 553,106 | 550,005 | ||||||||||||
Gross profit | $ 23,904 | [1] | $ 16,556 | [1] | $ 22,676 | [1] | $ 23,292 | [1] | $ 27,357 | $ 21,130 | $ 22,130 | $ 23,547 | 86,428 | 94,164 | 93,632 |
Segment depreciation expense | 19,994 | 17,803 | 14,792 | ||||||||||||
Segment Profit (Loss) | 106,422 | 111,967 | 108,424 | ||||||||||||
Polyester [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 364,169 | 355,740 | 383,167 | ||||||||||||
Cost of sales | 333,078 | 315,655 | 333,638 | ||||||||||||
Gross profit | 31,091 | 40,085 | 49,529 | ||||||||||||
Segment depreciation expense | 15,893 | 13,921 | 11,188 | ||||||||||||
Segment Profit (Loss) | 46,984 | 54,006 | 60,717 | ||||||||||||
Nylon [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 102,639 | 112,704 | 131,715 | ||||||||||||
Cost of sales | 92,155 | 100,633 | 113,906 | ||||||||||||
Gross profit | 10,484 | 12,071 | 17,809 | ||||||||||||
Segment depreciation expense | 2,197 | 2,125 | 1,899 | ||||||||||||
Segment Profit (Loss) | 12,681 | 14,196 | 19,708 | ||||||||||||
International [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 207,884 | 173,686 | 122,554 | ||||||||||||
Cost of sales | 163,300 | 131,087 | 95,666 | ||||||||||||
Gross profit | 44,584 | 42,599 | 26,888 | ||||||||||||
Segment depreciation expense | 1,648 | 1,119 | 885 | ||||||||||||
Segment Profit (Loss) | 46,232 | 43,718 | 27,773 | ||||||||||||
Other Segments [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 4,220 | 5,140 | 6,201 | ||||||||||||
Cost of sales | 3,951 | 5,731 | 6,795 | ||||||||||||
Gross profit | 269 | (591) | (594) | ||||||||||||
Segment depreciation expense | 256 | 638 | 820 | ||||||||||||
Segment Profit (Loss) | $ 525 | $ 47 | $ 226 | ||||||||||||
[1] | Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with corresponding selling price increases. |
Business Segment Information125
Business Segment Information - Reconciliations of Segment Gross Profit (Loss) to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 24, 2018 | [1] | Mar. 25, 2018 | [1] | Dec. 24, 2017 | [1] | Sep. 24, 2017 | [1] | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 25, 2016 | Sep. 25, 2016 | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||
Gross profit (loss) | $ 23,904 | $ 16,556 | $ 22,676 | $ 23,292 | $ 27,357 | $ 21,130 | $ 22,130 | $ 23,547 | $ 86,428 | $ 94,164 | $ 93,632 | ||||
SG&A expenses | 56,077 | 50,829 | 47,502 | ||||||||||||
(Benefit) provision for bad debts | (38) | (123) | 1,684 | ||||||||||||
Other operating expense (income), net | 1,590 | (310) | 2,248 | ||||||||||||
Operating income | 28,799 | 43,768 | 42,198 | ||||||||||||
Interest income | (560) | (517) | (610) | ||||||||||||
Interest expense | 4,935 | 3,578 | 3,528 | ||||||||||||
Loss on sale of business | $ 1,662 | 1,662 | |||||||||||||
Equity in earnings of unconsolidated affiliates | (5,787) | (4,230) | (8,963) | ||||||||||||
Income before income taxes | 30,211 | 43,275 | 48,243 | ||||||||||||
Polyester [Member] | |||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||
Gross profit (loss) | 31,091 | 40,085 | 49,529 | ||||||||||||
Nylon [Member] | |||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||
Gross profit (loss) | 10,484 | 12,071 | 17,809 | ||||||||||||
International [Member] | |||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||
Gross profit (loss) | 44,584 | 42,599 | 26,888 | ||||||||||||
Other Segments [Member] | |||||||||||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||||||||||||||
Gross profit (loss) | $ 269 | $ (591) | $ (594) | ||||||||||||
[1] | Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with corresponding selling price increases. |
Business Segment Information126
Business Segment Information - Reconciliation of Segment Depreciation and Amortization Expense to Consolidated Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | $ 22,585 | $ 20,368 | $ 17,528 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 19,994 | 17,803 | 14,792 |
Operating Segments [Member] | Polyester [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 15,893 | 13,921 | 11,188 |
Operating Segments [Member] | Nylon [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 2,197 | 2,125 | 1,899 |
Operating Segments [Member] | International [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 1,648 | 1,119 | 885 |
Operating Segments [Member] | Other Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | 256 | 638 | 820 |
Other Depreciation and Amortization Expense [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization expense | $ 2,591 | $ 2,565 | $ 2,736 |
Business Segment Information127
Business Segment Information - Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 25,029 | $ 33,190 | $ 52,337 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 21,070 | 31,423 | 49,820 |
Operating Segments [Member] | Polyester [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 16,605 | 25,442 | 44,517 |
Operating Segments [Member] | Nylon [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 1,366 | 1,247 | 2,548 |
Operating Segments [Member] | International [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | 3,099 | 4,734 | 2,755 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Capital expenditures | $ 3,959 | $ 1,767 | $ 2,517 |
Business Segment Information128
Business Segment Information - Reconciliation of Segment Total Assets to Consolidated Total Assets (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 |
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | $ 601,807 | $ 571,503 | $ 525,442 |
Other current assets | 6,529 | 6,468 | |
Property, plant and equipment, net | 205,516 | 203,388 | |
Other non-current assets | 3,080 | 613 | |
Investments in unconsolidated affiliates | 112,639 | 119,513 | |
Operating Segments [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 436,645 | 409,432 | 373,232 |
Operating Segments [Member] | Polyester [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 284,261 | 270,819 | 243,093 |
Operating Segments [Member] | Nylon [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 57,378 | 57,789 | 63,141 |
Operating Segments [Member] | International [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 95,006 | 80,824 | 66,998 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Other current assets | 30,945 | 27,375 | 13,337 |
Property, plant and equipment, net | 17,373 | 14,904 | 16,597 |
Other non-current assets | 4,205 | 279 | 4,864 |
Investments in unconsolidated affiliates | $ 112,639 | $ 119,513 | $ 117,412 |
Business Segment Information129
Business Segment Information - Product Sales Excluding All Other Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 25, 2016 | Sep. 25, 2016 | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total product sales | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 171,250 | $ 160,896 | $ 155,155 | $ 159,969 | $ 678,912 | $ 647,270 | $ 643,637 |
Polyester [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total product sales | 572,053 | 529,426 | 505,721 | ||||||||
Nylon [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total product sales | 102,639 | 112,704 | 131,715 | ||||||||
Product sales (excluding the All Other category) [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total product sales | $ 674,692 | $ 642,130 | $ 637,436 |
Business Segment Information130
Business Segment Information - Geographic Information for Net Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 25, 2016 | Sep. 25, 2016 | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Geographic net sales | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 171,250 | $ 160,896 | $ 155,155 | $ 159,969 | $ 678,912 | $ 647,270 | $ 643,637 |
UNITED STATES [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Geographic net sales | 420,920 | 424,490 | 472,287 | ||||||||
BRAZIL [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Geographic net sales | 110,587 | 109,079 | 83,087 | ||||||||
CHINA | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Geographic net sales | 90,998 | ||||||||||
All Other Foreign Countries [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Geographic net sales | 56,407 | 113,701 | 88,263 | ||||||||
Export Sales from US Operations [Member] | UNITED STATES [Member] | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Geographic net sales | $ 94,205 | $ 104,229 | $ 113,725 |
Business Segment Information131
Business Segment Information - Geographic Information for Long-lived Assets (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 324,225 | $ 325,672 | $ 311,163 |
UNITED STATES [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 305,229 | 304,696 | 292,854 |
BRAZIL [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | 12,679 | 12,616 | 9,714 |
All Other Foreign Countries [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 6,317 | $ 8,360 | $ 8,595 |
Business Segment Information132
Business Segment Information - Geographic Information for Total Assets (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 601,807 | $ 571,503 | $ 525,442 |
UNITED STATES [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 455,963 | 445,947 | 427,679 |
BRAZIL [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 59,657 | 58,598 | 53,993 |
All Other Foreign Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 86,187 | $ 66,958 | $ 43,770 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | Mar. 26, 2017 | Dec. 25, 2016 | Sep. 25, 2016 | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Net sales | $ 181,325 | $ 165,867 | $ 167,478 | $ 164,242 | $ 171,250 | $ 160,896 | $ 155,155 | $ 159,969 | $ 678,912 | $ 647,270 | $ 643,637 | ||||||||
Gross profit | 23,904 | [1] | 16,556 | [1] | 22,676 | [1] | 23,292 | [1] | 27,357 | 21,130 | 22,130 | 23,547 | 86,428 | 94,164 | 93,632 | ||||
Net income including non-controlling interest | 10,764 | 176 | 11,802 | 8,960 | 9,704 | 9,177 | 4,354 | 9,142 | 31,702 | 32,377 | 33,170 | ||||||||
Less: net loss attributable to non-controlling interest | (237) | (261) | (498) | (1,245) | |||||||||||||||
Net income attributable to Unifi, Inc. | $ 10,764 | [2] | $ 176 | [2] | $ 11,802 | [2] | $ 8,960 | [2] | $ 9,704 | [3] | $ 9,177 | [3] | $ 4,591 | [3] | $ 9,403 | [3] | $ 31,702 | $ 32,875 | $ 34,415 |
Basic EPS (in dollars per share) | $ 0.59 | [4] | $ 0.01 | [4] | $ 0.65 | [4] | $ 0.49 | [4] | $ 0.53 | [4] | $ 0.50 | [4] | $ 0.25 | [4] | $ 0.52 | [4] | $ 1.73 | $ 1.81 | $ 1.93 |
Diluted EPS (in dollars per share) | $ 0.58 | [4] | $ 0.01 | [4] | $ 0.63 | [4] | $ 0.48 | [4] | $ 0.52 | [4] | $ 0.50 | [4] | $ 0.25 | [4] | $ 0.51 | [4] | $ 1.70 | $ 1.78 | $ 1.87 |
[1] | Gross profit for the fiscal quarter ended March 25, 2018 includes the adverse impact of sustained raw material cost increases that could not be effectively offset with corresponding selling price increases. | ||||||||||||||||||
[2] | Net income attributable to Unifi, Inc. for the fiscal quarter ended June 24, 2018 includes the reversal of a $3,380 uncertain tax position relating to certain foreign exchange income applicable to fiscal 2015. Net income attributable to Unifi, Inc. for the fiscal quarter ended December 24, 2017 includes the reversal of a $3,807 valuation allowance on certain historical NOLs in connection with a tax status change unrelated to the federal tax reform legislation signed into law in December 2017. | ||||||||||||||||||
[3] | Net income attributable to Unifi, Inc. for the fiscal quarter ended December 25, 2016 includes a loss on sale of business of $1,662. | ||||||||||||||||||
[4] | Income per share is computed independently for each of the periods presented. The sum of the income per share amounts for the fiscal quarters may not equal the total for the fiscal year. |
Quarterly Results (Unaudited134
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Data (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 24, 2018 | Dec. 24, 2017 | Dec. 25, 2016 | Jun. 25, 2017 | |
Quarterly Financial Data [Line Items] | ||||
Loss on sale of business | $ 1,662 | $ 1,662 | ||
Reversal of uncertain tax position | $ 3,380 | |||
Historical NOLs [Member] | ||||
Quarterly Financial Data [Line Items] | ||||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (3,807) |
Supplemental Cash Flow Infor135
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest, net of capitalized interest of $190, $652 and $704, respectively | $ 4,459 | $ 3,282 | $ 3,066 |
Income taxes, net of refunds | $ 9,962 | $ 8,123 | $ 9,923 |
Supplemental Cash Flow Infor136
Supplemental Cash Flow Information - Schedule of Cash Payments for Interest and Taxes (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest capitalized | $ 190 | $ 652 | $ 704 |
Supplemental Cash Flow Infor137
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Supplemental Cash Flow Information [Abstract] | |||
Capital expenditures incurred but not yet paid | $ 3,187 | $ 3,234 | $ 4,197 |