Leases

12 Months Ended

Jun. 29, 2025

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 one 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 29, 2025		June 30, 2024
Lease Assets
Operating lease assets	Operating lease assets	$	7,879	$	8,245
Finance lease assets	Property, plant & equipment, net		10,759		10,695
Total lease assets		$	18,638	$	18,940
Lease Liabilities
Current operating lease liabilities	Current operating lease liabilities	$	2,368	$	2,251
Current finance lease liabilities	Current portion of long-term debt		2,959		3,078
Total current lease liabilities		$	5,327	$	5,329
Non-current operating lease liabilities	Non-current operating lease liabilities	$	5,614	$	6,124
Non-current finance lease liabilities	Long-term debt		5,049		6,321
Total non-current lease liabilities		$	10,663	$	12,445
Total lease liabilities		$	15,990	$	17,774

The following table sets forth the components of UNIFI’s total lease cost for fiscal 2025 and 2024:

Lease Cost	Fiscal 2025		Fiscal 2024
Operating lease cost	$	2,730	$	2,547
Variable lease cost		643		617
Finance lease cost:
Amortization of lease assets		1,785		1,885
Interest on lease liabilities		418		532
Short-term lease cost		1,397		1,155
Total lease cost	$	6,973	$	6,736

The following table presents supplemental information related to leases:

Other Information	Fiscal 2025		Fiscal 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	2,730	$	2,547
Financing cash flows used by finance leases	$	3,093	$	3,001
Non-cash activities:
Leased assets obtained in exchange for new operating lease liabilities	$	2,365	$	2,536
Leased assets obtained in exchange for new finance lease liabilities	$	1,716	$	1,633

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 29, 2025			June 30, 2024
Weighted average remaining lease term (years):
Operating leases		4.5			4.9
Finance leases		3.3			3.2
Weighted average discount rate (percentage):
Operating leases		5.1	%		4.9	%
Finance leases		5.2	%		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 29, 2025 by fiscal year were:

Maturity of Lease Liabilities	Finance Leases			Operating Leases
Fiscal 2026	$	3,383		$	2,368
Fiscal 2027		2,816			2,137
Fiscal 2028		1,653			1,235
Fiscal 2029		313			1,220
Fiscal 2030		249			617
Fiscal years thereafter		503			1,132
Total minimum lease payments	$	8,917		$	8,709
Less estimated executory costs		(188	)		—
Less imputed interest		(721	)		(727	)
Present value of net minimum lease payments		8,008			7,982
Less current portion of lease obligations		(2,959	)		(2,368	)
Long-term portion of lease obligations	$	5,049		$	5,614