Other non-current assets consists of the following:


	July 2, 2023		July 3, 2022
Recovery of taxes	$	5,957	$	1,463
Investments in unconsolidated affiliates		2,997		2,072
Grantor trust		2,496		2,196
Intangible assets, net		1,210		2,500
Other		1,848		557
Total other non-current assets	$	14,508	$	8,788

Recovery of Taxes

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. The balance at July 3, 2022 relates to the recovery of PIS/COFINS (non-income) taxes, as further described in Note 8, "Other Current Assets."

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 selling, general, and administrative 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 $2,496 and $2,196 as of July 2, 2023 and July 3, 2022, 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 2023 and 2022, we recorded (gains) or losses on investments held by the trust of $(154) and $48, respectively.

Intangible assets, net consists of the following:


	July 2, 2023			July 3, 2022
Customer lists	$	3,605		$	5,220
Non-compete agreement		—			1,875
Trademarks		24			104
Total intangible assets, gross		3,629			7,199

Accumulated amortization – customer lists		(2,398	)		(3,056	)
Accumulated amortization – non-compete agreement		—			(1,563	)
Accumulated amortization – trademarks		(21	)		(80	)
Total accumulated amortization		(2,419	)		(4,699	)
Total intangible assets, net	$	1,210		$	2,500

Amortization expense for intangible assets consists of the following:


	Fiscal 2023		Fiscal 2022		Fiscal 2021
Customer lists	$	957	$	1,007	$	556
Non-compete agreement		312		375		375
Trademarks		21		96		147
Total amortization expense	$	1,290	$	1,478	$	1,078

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


	Fiscal 2024		Fiscal 2025		Fiscal 2026		Fiscal 2027		Fiscal 2028		Thereafter
Expected amortization	$	528	$	108	$	108	$	108	$	111	$	247

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

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 July 2, 2023, UNIFI’s open purchase orders related to this agreement were $762.

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


	Fiscal 2023		Fiscal 2022		Fiscal 2021
UNFA	$	26,683	$	29,637	$	18,932
UNF		31		1,175		548
Total	$	26,714	$	30,812	$	19,480

As of July 2, 2023 and July 3, 2022, UNIFI had combined accounts payable due to UNF and UNFA of $3,440 and $5,565, respectively.

UNIFI has determined that UNF and UNFA are variable interest entities and has also determined that UNIFI is 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 from the two entities and all intercompany sales would be eliminated in consolidation, (ii) the two entities’ 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 July 2, 2023 and July 3, 2022, UNIFI’s combined investments in UNF and UNFA were $2,997 and $2,072, 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 either UNF or UNFA.


	July 2, 2023		July 3, 2022
Current assets	$	10,608	$	10,705
Non-current assets		494		605
Current liabilities		7,304		8,056
Non-current liabilities		—		—
Shareholders’ equity and capital accounts		3,798		3,254

UNIFI’s portion of undistributed earnings		2,938		2,013


	Fiscal 2023		Fiscal 2022		Fiscal 2021
Net sales	$	29,123	$	31,745	$	19,649
Gross profit		2,337		1,928		3,423
Income from operations		604		148		1,777
Net income		544		127		1,782
Depreciation and amortization		111		121		151

Distributions received		—		750		750