Income Taxes (Tables)
|
12 Months Ended |
Jun. 28, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of Loss before Income Taxes |
The components of loss before income taxes consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026 |
|
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
U.S. |
|
$ |
(29,948 |
) |
|
$ |
(27,131 |
) |
|
$ |
(63,602 |
) |
Foreign |
|
|
9,920 |
|
|
|
8,502 |
|
|
|
18,065 |
|
Loss before income taxes |
|
$ |
(20,028 |
) |
|
$ |
(18,629 |
) |
|
$ |
(45,537 |
) |
|
| Schedule of Provision for Income Taxes |
Provision for income taxes consists of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026 |
|
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(2,860 |
) |
State |
|
|
18 |
|
|
|
3 |
|
|
|
203 |
|
Foreign |
|
|
4,277 |
|
|
|
2,391 |
|
|
|
8,053 |
|
Total current tax expense |
|
|
4,295 |
|
|
|
2,394 |
|
|
|
5,396 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
322 |
|
|
|
(112 |
) |
|
|
(123 |
) |
State |
|
|
71 |
|
|
|
(50 |
) |
|
|
(162 |
) |
Foreign |
|
|
(154 |
) |
|
|
(513 |
) |
|
|
(3,253 |
) |
Total deferred tax expense |
|
|
239 |
|
|
|
(675 |
) |
|
|
(3,538 |
) |
Provision for income taxes |
|
$ |
4,534 |
|
|
$ |
1,719 |
|
|
$ |
1,858 |
|
|
| Reconciliation of U.S. Federal Statutory Tax Rate to Effective Tax Rate |
Reconciliation of the U.S. federal statutory tax rate to effective tax rate, in accordance with the updated requirements of ASU 2023-09 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026 |
|
|
|
Amount |
|
|
Percent |
|
U.S. Federal statutory tax rate |
|
$ |
(4,206 |
) |
|
|
21.0 |
% |
State and local income tax, net of federal income tax effect (1) |
|
|
98 |
|
|
|
(0.5 |
) |
Foreign tax effects |
|
|
|
|
|
|
China |
|
|
|
|
|
|
Withholding taxes |
|
|
1,084 |
|
|
|
(5.4 |
) |
Tax on unremitted foreign earnings |
|
|
(278 |
) |
|
|
1.4 |
|
Other |
|
|
82 |
|
|
|
(0.4 |
) |
Brazil |
|
|
|
|
|
|
Nontaxable benefit |
|
|
(1,074 |
) |
|
|
5.4 |
|
Effect of rates different than statutory |
|
|
384 |
|
|
|
(1.9 |
) |
Interest on income taxes |
|
|
(229 |
) |
|
|
1.1 |
|
Other |
|
|
(91 |
) |
|
|
0.5 |
|
Netherlands |
|
|
|
|
|
|
Change in valuation allowance |
|
|
(633 |
) |
|
|
3.2 |
|
Imputed interest income |
|
|
548 |
|
|
|
(2.7 |
) |
Effect of rates different than statutory |
|
|
323 |
|
|
|
(1.6 |
) |
Other |
|
|
27 |
|
|
|
(0.1 |
) |
Colombia |
|
|
|
|
|
|
Change in valuation allowance |
|
|
322 |
|
|
|
(1.6 |
) |
Other |
|
|
(92 |
) |
|
|
0.5 |
|
El Salvador |
|
|
|
|
|
|
Effect of rates different than statutory |
|
|
218 |
|
|
|
(1.1 |
) |
Other foreign jurisdictions |
|
|
|
|
|
|
Effect of rates different than statutory |
|
|
75 |
|
|
|
(0.4 |
) |
Other |
|
|
180 |
|
|
|
(0.9 |
) |
Effect of changes in tax laws |
|
|
— |
|
|
|
— |
|
Effect of cross-border tax laws |
|
|
|
|
|
|
Global intangible low-taxed income |
|
|
927 |
|
|
|
(4.6 |
) |
Other |
|
|
156 |
|
|
|
(0.8 |
) |
Tax Credits |
|
|
|
|
|
|
Research and development credits |
|
|
(1,752 |
) |
|
|
8.7 |
|
Other |
|
|
(51 |
) |
|
|
0.3 |
|
Changes in valuation allowances |
|
|
8,391 |
|
|
|
(41.9 |
) |
Nontaxable or nondeductible items |
|
|
|
|
|
|
Nondeductible compensation |
|
|
308 |
|
|
|
(1.5 |
) |
Share-based payments |
|
|
227 |
|
|
|
(1.1 |
) |
Other |
|
|
(120 |
) |
|
|
0.6 |
|
Changes in unrecognized tax benefits |
|
|
1,208 |
|
|
|
(6.0 |
) |
Other adjustments |
|
|
|
|
|
|
Capital loss carryforward |
|
|
(1,557 |
) |
|
|
7.8 |
|
Other |
|
|
59 |
|
|
|
(0.3 |
) |
Total tax provision and effective tax rate (2) |
|
$ |
4,534 |
|
|
|
(22.6 |
)% |
(1)During fiscal 2026, state taxes in Virginia comprise more than 50% of the tax effect in this category. (2)The sum of the percent column may not equal the total due to rounding. Reconciliation from the federal statutory tax rate to the effective tax rate, prior to the adoption of ASU 2023-09 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
Federal statutory tax rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
Change in valuation allowance |
|
|
(27.3 |
) |
|
|
(24.6 |
) |
Foreign income taxed at different rates |
|
|
(11.0 |
) |
|
|
(3.3 |
) |
Repatriation of foreign earnings and withholding taxes |
|
|
(10.4 |
) |
|
|
(7.6 |
) |
Change in uncertain tax positions |
|
|
(3.4 |
) |
|
|
(1.5 |
) |
Nondeductible expenses and other |
|
|
(2.6 |
) |
|
|
(0.4 |
) |
Nondeductible compensation |
|
|
(1.8 |
) |
|
|
(1.0 |
) |
Revaluation of deferred balances due to tax law changes |
|
|
(1.6 |
) |
|
|
(0.1 |
) |
U.S. tax on GILTI |
|
|
(1.5 |
) |
|
|
(2.4 |
) |
Nontaxable income |
|
|
7.6 |
|
|
|
1.2 |
|
Foreign tax credits |
|
|
6.5 |
|
|
|
3.0 |
|
Research and other business tax credits |
|
|
5.1 |
|
|
|
2.7 |
|
Recovery of income taxes in Brazil |
|
|
4.8 |
|
|
|
— |
|
Tax on unremitted foreign earnings |
|
|
3.2 |
|
|
|
3.4 |
|
Interest on income taxes |
|
|
1.8 |
|
|
|
1.8 |
|
State income taxes, net of federal tax benefit |
|
|
0.4 |
|
|
|
3.5 |
|
IRS RAR adjustment |
|
|
— |
|
|
|
0.2 |
|
Effective tax rate |
|
|
(9.2 |
)% |
|
|
(4.1 |
)% |
|
| Schedule of Income Tax Payments, Net of Refunds Received by Jurisdiction |
Income tax payments, net of refunds received by jurisdiction, following the adoption of ASU 2023-09 is as follows:
|
|
|
|
|
|
|
Fiscal 2026 |
|
U.S. Federal |
|
$ |
— |
|
U.S. State and local |
|
|
6 |
|
Foreign: |
|
|
|
Brazil |
|
|
(409 |
) |
China |
|
|
1,303 |
|
Colombia |
|
|
95 |
|
Other foreign jurisdictions |
|
|
4 |
|
Total income tax payments, net |
|
$ |
999 |
|
|
| Deferred Tax Assets and Liabilities |
The significant components of UNIFI’s deferred tax assets and liabilities consist of the following:
|
|
|
|
|
|
|
|
|
|
|
June 28, 2026 |
|
|
June 29, 2025 |
|
Deferred tax assets: |
|
|
|
|
|
|
Capital loss carryforwards |
|
$ |
50 |
|
|
$ |
3,628 |
|
NOL carryforwards |
|
|
39,164 |
|
|
|
29,159 |
|
Tax credits |
|
|
13,126 |
|
|
|
11,584 |
|
Research and development costs |
|
|
9,176 |
|
|
|
12,191 |
|
Accrued compensation |
|
|
2,150 |
|
|
|
2,174 |
|
Disallowed interest deduction carryforwards |
|
|
7,243 |
|
|
|
5,895 |
|
Other items |
|
|
4,356 |
|
|
|
4,531 |
|
Total gross deferred tax assets |
|
|
75,265 |
|
|
|
69,162 |
|
Valuation allowance |
|
|
(60,364 |
) |
|
|
(55,208 |
) |
Total deferred tax assets |
|
|
14,901 |
|
|
|
13,954 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
PP&E |
|
|
(8,578 |
) |
|
|
(7,792 |
) |
Unremitted earnings |
|
|
(1,379 |
) |
|
|
(1,691 |
) |
Other |
|
|
(625 |
) |
|
|
(160 |
) |
Total deferred tax liabilities |
|
|
(10,582 |
) |
|
|
(9,643 |
) |
Net deferred tax assets |
|
$ |
4,319 |
|
|
$ |
4,311 |
|
|
| Schedule of Components of Deferred Tax Valuation Allowance |
Components of UNIFI’s deferred tax valuation allowance are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026 |
|
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
Capital loss carryforwards |
|
$ |
(50 |
) |
|
$ |
(3,628 |
) |
|
$ |
(16,442 |
) |
NOL carryforwards and reversing temporary differences |
|
|
(46,905 |
) |
|
|
(36,049 |
) |
|
|
(27,231 |
) |
Disallowed interest deduction carryforwards |
|
|
(558 |
) |
|
|
(3,838 |
) |
|
|
(1,860 |
) |
Tax credits |
|
|
(12,286 |
) |
|
|
(10,549 |
) |
|
|
(9,717 |
) |
Other deferred tax assets |
|
|
(565 |
) |
|
|
(1,144 |
) |
|
|
— |
|
Total deferred tax valuation allowance |
|
$ |
(60,364 |
) |
|
$ |
(55,208 |
) |
|
$ |
(55,250 |
) |
|
| Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits |
A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2026 |
|
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
Balance at beginning of year |
|
$ |
3,748 |
|
|
$ |
3,230 |
|
|
$ |
4,353 |
|
Gross increases related to tax positions in prior periods |
|
|
736 |
|
|
|
266 |
|
|
|
1,145 |
|
Gross decreases related to tax positions in prior periods |
|
|
(195 |
) |
|
|
(2 |
) |
|
|
(1,015 |
) |
Gross increases related to current period tax positions |
|
|
382 |
|
|
|
300 |
|
|
|
300 |
|
Gross decreases related to settlements with tax authorities |
|
|
— |
|
|
|
— |
|
|
|
(1,553 |
) |
Gross decreases related to lapse of applicable statute of limitations |
|
|
(1 |
) |
|
|
(46 |
) |
|
|
— |
|
Balance at end of year |
|
$ |
4,670 |
|
|
$ |
3,748 |
|
|
$ |
3,230 |
|
|