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Commitments and Contingencies
12 Months Ended
Jul. 02, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

22. Commitments and Contingencies

Collective Bargaining Agreements

While employees of UNIFI’s Brazilian operations are unionized, none of the labor force employed by UNIFI’s domestic or other foreign subsidiaries is currently covered by a collective bargaining agreement.

Environmental

On September 30, 2004, Unifi Kinston, LLC (“UK”), a subsidiary of Unifi, Inc., completed its acquisition of polyester filament manufacturing assets located in Kinston, North Carolina (“Kinston”) from Invista S.a.r.l. (“INVISTA”). The land for the Kinston site was leased pursuant to a 99-year ground lease (the “Ground Lease”) with E.I. DuPont de Nemours (“DuPont”). Since 1993, DuPont has been investigating and cleaning up the Kinston site under the supervision of the U.S. Environmental Protection Agency and the North Carolina Department of Environmental Quality (the “DEQ”) pursuant to the Resource Conservation and Recovery Act Corrective Action program. The program requires DuPont to identify all potential areas of environmental concern (“AOCs”), assess the extent of containment at the identified AOCs and remediate the AOCs to comply with applicable regulatory standards. Effective March 20, 2008, UK entered into a lease termination agreement associated with conveyance of certain assets at the Kinston site to DuPont. This agreement terminated the Ground Lease and relieved UK of any future responsibility for environmental remediation, other than participation with DuPont, if so called upon, with regard to UK’s period of operation of the Kinston site, which was from 2004 to 2008. At this time, UNIFI has no basis to determine if or when it will have any responsibility or obligation with respect to the AOCs or the extent of any potential liability for the same. UK continues to own property (the “Kentec site”) acquired in the 2004 transaction with INVISTA that has contamination from DuPont’s prior operations and is monitored by DEQ. The Kentec site has been remediated by DuPont, and DuPont has received authority from DEQ to discontinue further remediation, other than natural attenuation. Prior to transfer of responsibility to UK, DuPont and UK had a duty to monitor and report the environmental status of the Kentec site to DEQ. Effective April 10, 2019, UK assumed sole remediator responsibility of the Kentec site pursuant to its contractual obligations with INVISTA and received $180 of net monitoring and reporting costs due from DuPont. In connection with monitoring, UK expects to sample and report to DEQ annually. At this time, UNIFI does not expect any active site remediation will be required but expects that any costs associated with active site remediation, if ever required, would likely be immaterial.

Unconditional Obligations

UNIFI is a party to unconditional obligations for certain utility and other purchase or service commitments. These commitments are non-cancelable, have remaining terms in excess of one year and qualify as normal purchases.

On a fiscal year basis, the minimum payments expected to be made as part of such commitments are as follows:

 

 

Fiscal 2024

 

 

Fiscal 2025

 

 

Fiscal 2026

 

 

Fiscal 2027

 

 

Fiscal 2028

 

 

Thereafter

 

Unconditional purchase obligations

 

$

6,850

 

 

$

5,563

 

 

$

2,684

 

 

$

2,684

 

 

$

 

 

$

 

Unconditional service obligations

 

 

2,655

 

 

 

1,178

 

 

 

1,010

 

 

 

954

 

 

 

788

 

 

 

617

 

Total unconditional obligations

 

$

9,505

 

 

$

6,741

 

 

$

3,694

 

 

$

3,638

 

 

$

788

 

 

$

617

 

For fiscal 2023, 2022, and 2021 total costs incurred under these commitments consist of the following:

 

 

Fiscal 2023

 

 

Fiscal 2022

 

 

Fiscal 2021

 

Costs for unconditional purchase obligations

 

$

23,567

 

 

$

24,236

 

 

$

22,689

 

Costs for unconditional service obligations

 

 

1,158

 

 

 

912

 

 

 

967

 

Total

 

$

24,725

 

 

$

25,148

 

 

$

23,656