v3.26.1
Leases
 12 Months Ended
Jun. 28, 2026
Leases [Abstract]  
Leases

4. Leases

 

UNIFI has adopted the following post-implementation practical expedients related to its accounting for leases:

•
short-term lease accounting policy election allowing lessees to not recognize right-of-use assets and liabilities for leases with a term of 12 months or less and to recognize lease payments on a straight-line basis over the lease term and variable payments in the period the obligation is incurred; and
•
the option not to separate lease and non-lease components for the transportation equipment asset class.

UNIFI 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. The lease terms range from 1 to 15 years with various options for renewal. There are no residual value guarantees, restrictions, covenants, or sub-leases related to these leases. Variable lease payments are determined as the amounts included in the lease payment that are based on the change in index or usage. Disclosures related to the amount, timing, and uncertainty of cash flows arising from leases are included below.

The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities:

Classification

 

Balance Sheet Location

 

June 28, 2026

 

 

June 29, 2025

 

Lease Assets

 

 

 

 

 

 

 

 

Operating lease assets

 

Operating lease assets

 

$

6,532

 

 

$

7,879

 

Finance lease assets

 

Property, plant & equipment, net

 

 

12,733

 

 

 

10,759

 

Total lease assets

 

 

 

$

19,265

 

 

$

18,638

 

 

 

 

 

 

 

 

 

 

Lease Liabilities

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

Current operating lease liabilities

 

$

2,128

 

 

$

2,368

 

Current finance lease liabilities

 

Current portion of long-term debt

 

 

3,171

 

 

 

2,959

 

Total current lease liabilities

 

 

 

$

5,299

 

 

$

5,327

 

 

 

 

 

 

 

 

 

 

Non-current operating lease liabilities

 

Non-current operating lease liabilities

 

$

4,458

 

 

$

5,614

 

Non-current finance lease liabilities

 

Long-term debt

 

 

5,568

 

 

 

5,049

 

Total non-current lease liabilities

 

 

 

$

10,026

 

 

$

10,663

 

 

 

 

 

 

 

 

 

 

Total lease liabilities

 

 

 

$

15,325

 

 

$

15,990

 

 

The following table sets forth the components of UNIFI’s total lease cost for fiscal 2026 and 2025:

Lease Cost

 

Fiscal 2026

 

 

Fiscal 2025

 

Operating lease cost

 

$

2,324

 

 

$

2,730

 

Variable lease cost

 

 

609

 

 

 

643

 

Finance lease cost:

 

 

 

 

 

 

   Amortization of lease assets

 

 

2,323

 

 

 

1,785

 

   Interest on lease liabilities

 

 

459

 

 

 

418

 

Short-term lease cost

 

 

476

 

 

 

1,397

 

Total lease cost

 

$

6,191

 

 

$

6,973

 

The following table presents supplemental information related to leases:

Other Information

 

Fiscal 2026

 

 

Fiscal 2025

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

   Operating cash flows used by operating leases

 

$

2,324

 

 

$

2,730

 

   Financing cash flows used by finance leases

 

$

3,311

 

 

$

3,093

 

Non-cash activities:

 

 

 

 

 

 

   Leased assets obtained in exchange for new operating lease liabilities

 

$

977

 

 

$

2,365

 

   Leased assets obtained in exchange for new finance lease liabilities

 

$

4,117

 

 

$

1,716

 

UNIFI calculates its operating lease liabilities and finance lease liabilities based upon UNIFI’s incremental borrowing rate (the “IBR”). When determining the IBR, we consider our centralized treasury function and our current credit profile. UNIFI makes adjustments to this rate for securitization, the length of the lease term (tenure), and leases denominated in foreign currencies. Generally, the IBR for each jurisdiction approximates the specific risk-free rate for the respective jurisdiction incremented for UNIFI’s corporate credit risk and adjusted for tenure.

The following table sets forth UNIFI's weighted average remaining lease term in years and discount rate percentage used in the calculation of its outstanding lease liabilities:

Weighted Average Remaining Lease Term and Discount Rate

 

June 28, 2026

 

 

June 29, 2025

 

Weighted average remaining lease term (years):

 

 

 

 

 

 

  Operating leases

 

 

4.1

 

 

 

4.5

 

  Finance leases

 

 

3.8

 

 

 

3.3

 

Weighted average discount rate (percentage):

 

 

 

 

 

 

  Operating leases

 

 

5.6

%

 

 

5.1

%

  Finance leases

 

 

4.8

%

 

 

5.2

%

Lease Maturity Analysis

Future minimum finance lease payments and future minimum payments under non-cancelable operating leases with initial lease terms in excess of one year as of June 28, 2026 by fiscal year were:

Maturity of Lease Liabilities

 

Finance Leases

 

 

Operating Leases

 

Fiscal 2027

 

$

3,600

 

 

$

2,418

 

Fiscal 2028

 

 

2,456

 

 

 

1,522

 

Fiscal 2029

 

 

1,095

 

 

 

1,483

 

Fiscal 2030

 

 

1,034

 

 

 

858

 

Fiscal 2031

 

 

874

 

 

 

540

 

Fiscal years thereafter

 

 

615

 

 

 

403

 

Total minimum lease payments

 

$

9,674

 

 

$

7,224

 

Less estimated executory costs

 

 

(113

)

 

 

—

 

Less imputed interest

 

 

(822

)

 

 

(638

)

Present value of net minimum lease payments

 

 

8,739

 

 

 

6,586

 

Less current portion of lease obligations

 

 

(3,171

)

 

 

(2,128

)

Long-term portion of lease obligations

 

$

5,568

 

 

$

4,458