Property, Plant and Equipment, Net

12 Months Ended

Jul. 02, 2023

Property, Plant and Equipment [Abstract]

9. Property, Plant and Equipment, Net

PP&E, net consists of the following:


	July 2, 2023			July 3, 2022
Land	$	2,512		$	3,160
Land improvements		16,443			16,443
Buildings and improvements		167,589			164,252
Assets under finance leases		16,397			10,921
Machinery and equipment		656,431			635,699
Computers, software and office equipment		26,654			25,348
Transportation equipment		10,710			10,591
Construction in progress		10,003			20,397
Gross PP&E		906,739			886,811
Less: accumulated depreciation		(682,768	)		(666,569	)
Less: accumulated amortization – finance leases		(5,450	)		(3,904	)
Total PP&E, net	$	218,521		$	216,338

Assets under finance leases consists of the following:


	July 2, 2023		July 3, 2022
Transportation equipment	$	8,276	$	8,276
Machinery and equipment		8,121		2,645
Gross assets under finance leases	$	16,397	$	10,921

Depreciation and amortization expense and repair and maintenance expenses were as follows:


	Fiscal 2023		Fiscal 2022		Fiscal 2021
Depreciation and amortization expense	$	25,729	$	24,509	$	24,215
Repair and maintenance expenses		17,999		20,076		18,118

In fiscal 2017, UNIFI constructed specialized bi-component spinning machinery in the Americas with a 15-year useful life to accommodate tolling demand and development efforts of a specific U.S. customer. After multiple years of operating the machinery, recovering the capital investment, and generating profitable sales, the contract terminated in accordance with its provisions, and additional development and commercialization efforts ceased in fiscal 2023, primarily due to the specialized nature and generally higher operating costs of the machinery. As a result of the lack of potential future demand, the machinery was considered to have zero future sales potential and negative future cash flows and was abandoned by the Company. Accordingly, UNIFI recorded an impairment of $8,247 to Other operating expense (income), net during the fourth quarter of fiscal 2023. Prior to the abandonment, the asset's net book value was $8,247. The new book value of $0 reflects the lack of positive future cash flows, scrap or salvage value, following the income method for the Level 3 measurement.