Other non-current assets consists of the following:


	June 29, 2025		June 30, 2024
Grantor trust	$	2,310	$	2,942
Investments in unconsolidated affiliates		1,151		1,603
Intangible assets, net		573		682
Recovery of taxes		—		5,543
Other		870		2,181
Total other non-current assets	$	4,904	$	12,951

During fiscal 2022, UNIFI established a grantor (or “rabbi”) trust to facilitate the payment of obligations under the Unifi, Inc. Deferred Compensation Plan (the “DCP”), which was also established in fiscal 2022. In addition to providing certain key employees with the ability to defer earned cash incentive compensation into the DCP, participants can generally choose the form and timing of deferred amounts. The DCP assumed the participants, obligations, and major terms of the Unifi, Inc. Supplemental Key Employee Retirement Plan (together with amendments, the “SERP”), an unfunded plan established in 2006 for purposes of generating supplemental retirement income for key employees of UNIFI. The amounts credited to participant accounts are reflected in SG&A expenses. The assets of the trust are subject to the claims of UNIFI’s creditors in the event of insolvency. Investments held for the DCP consist of mutual funds and are recorded based on market values. A change in the value of the trust assets would substantially be offset by a change in the liability to the participants, resulting in an immaterial net impact to the consolidated financial statements.

The fair value of the investment assets held by the trust were approximately $2,310 and $2,942 as of June 29, 2025 and June 30, 2024, respectively, and are classified as trading securities within Other non-current assets. Trading gains and losses associated with these investments are recorded to Other operating expense (income), net. The associated DCP liability is recorded within Other current liabilities and Other long-term liabilities based on expected payment timing, and any increase or decrease in the liability is reflected as compensation in SG&A expenses. During fiscal 2025, 2024, and 2023, we recorded gains on investments held by the trust of $219, $308, and $154, respectively.

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 were provided by Nilit under separate supply and services agreements. UNF’s fiscal year end was December 31 and it was a registered Israeli private company located in Migdal Ha-Emek, Israel.

In December 2023, UNIFI dissolved its interest in UNF under an agreement whereby UNIFI agreed to pay the former joint venture partner $2,750 and recorded it as an associated contract termination cost within Restructuring costs on the Condensed Consolidated Statements of Operations and Comprehensive Loss. UNIFI made a payment to the former joint venture partner of $1,200 in the second quarter of fiscal 2024 and the remaining $1,550 was paid in the third quarter of fiscal 2024. Accordingly, the balance sheet information presented below as of June 29, 2025 does not include any amounts related to UNF.

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 located in Ridgeway, Virginia. UNFA is treated as a partnership for its income tax reporting.

In conjunction with the formation of UNFA, UNIFI entered into a supply agreement with UNF and UNFA (collectively, “UNFs”) 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 29, 2025, UNIFI’s open purchase orders related to this supply agreement, all with UNFA, were $2,167.

UNIFI’s raw material purchases under this supply agreement consist of the following:


	Fiscal 2025		Fiscal 2024		Fiscal 2023
UNFA	$	14,974	$	13,477	$	26,683
UNF		—		—		31
Total	$	14,974	$	13,477	$	26,714

As of June 29, 2025 and June 30, 2024, UNIFI had accounts payable due to UNFA of $1,368 and $2,197, respectively.

UNIFI has determined that UNF was, and UNFA is, a variable interest entity and has also determined that UNIFI has been 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 (i) UNIFI purchases substantially all of the output and all intercompany sales would be eliminated in consolidation, (ii) the entity balance sheets constitute 5% or less of UNIFI’s current assets and total assets, and (iii) 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 and instead is accounting for these entities as equity investments. As of June 29, 2025 and June 30, 2024, UNIFI’s investment in UNFA was $1,151 and $1,603, respectively. 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 UNFA.


	June 29, 2025		June 30, 2024
Current assets	$	4,422	$	5,758
Non-current assets		431		458
Current liabilities		2,551		3,009
Non-current liabilities		—		—
Shareholders’ equity and capital accounts		2,302		3,207

UNIFI’s portion of undistributed earnings		1,091		1,544

Intangible assets, net consists of the following:


	June 29, 2025			June 30, 2024
Customer lists	$	1,088		$	1,088
Trademarks		—			—
Total intangible assets, gross		1,088			1,088

Accumulated amortization – customer lists		(515	)		(406	)
Accumulated amortization – trademarks		—			—
Total accumulated amortization		(515	)		(406	)
Total intangible assets, net	$	573		$	682

Amortization expense for intangible assets consists of the following:


	Fiscal 2025		Fiscal 2024		Fiscal 2023
Customer lists	$	109	$	417	$	957
Non-compete agreement		—		108		312
Trademarks		—		3		21
Total amortization expense	$	109	$	528	$	1,290

The following table presents the expected intangible asset amortization for the next five fiscal years:


	Fiscal 2026		Fiscal 2027		Fiscal 2028		Fiscal 2029		Fiscal 2030		Thereafter
Expected amortization	$	108	$	109	$	110	$	108	$	109	$	29

In fiscal 2023, UNIFI recorded a recovery of income taxes in connection with filing amended tax returns in Brazil relating to certain income taxes paid in prior fiscal years, following favorable legal rulings in fiscal 2023. In fiscal 2025, Brazil's expected recovery of income taxes was reclassified from Other non-current assets to income taxes receivable due to the expectation of realizing the tax benefit within 12 months. Brazil received a cash refund of $2,339 in fiscal 2025 related to this receivable and expects to realize approximately half of the remaining income tax recovery through cash refunds and the other half through credits offsetting future federal tax liabilities in Brazil.

In the fourth quarter of fiscal 2025, UNIFI terminated a contract related to future purchases of texturing machinery in exchange for the forfeiture of $1,448 in deposits which is included in Restructuring costs within the Consolidated Statements of Operations. These deposits were previously recorded in Other non-current assets within the Consolidated Balance Sheets.