Income Taxes (Tables)

12 Months Ended

Jun. 28, 2020

Income Tax Disclosure [Abstract]

Components of Income before Income Taxes

The components of (loss) income before income taxes consist of the following:

	For the Fiscal Year Ended
	June 28, 2020			June 30, 2019			June 24, 2018
U.S.	$	(74,905	)	$	(13,326	)	$	(7,852	)
Foreign		18,640			23,337			38,063
(Loss) income before income taxes	$	(56,265	)	$	10,011		$	30,211

Schedule of Provision (Benefit) for Income Taxes

Provision (benefit) for income taxes consists of the following:

	For the Fiscal Year Ended
	June 28, 2020			June 30, 2019			June 24, 2018
Current:
Federal	$	282		$	(178	)	$	(4,918	)
State		(118	)		28			(416	)
Foreign		4,819			7,282			9,639
Total current tax expense		4,983			7,132			4,305
Deferred:
Federal		(3,783	)		(813	)		(5,315	)
State		116			1,097			(872	)
Foreign		(344	)		139			391
Total deferred tax expense		(4,011	)		423			(5,796	)
Provision (benefit) for income taxes	$	972		$	7,555		$	(1,491	)

Reconciliation from Federal Statutory Tax Rate to Effective Tax Rate

Reconciliation from the federal statutory tax rate to the effective tax rate is as follows:

	For the Fiscal Year Ended
	June 28, 2020			June 30, 2019			June 24, 2018
Federal statutory tax rate		21.0	%		21.0	%		28.3	%
Foreign income taxed at different rates		(1.2	)		16.1			(2.4	)
Repatriation of foreign earnings and withholding taxes		(2.0	)		20.3			1.8
U.S. tax on GILTI		(5.0	)		32.5			—
Change in valuation allowance		0.6			(1.5	)		(12.9	)
Foreign tax credits		0.9			(11.9	)		(11.0	)
Domestic production activities deduction		—			(5.6	)		0.5
Research and other business credits		2.0			(7.7	)		(1.8	)
State income taxes, net of federal tax benefit		2.6			(0.6	)		(3.9	)
Change in uncertain tax positions		(0.3	)		8.2			(15.1	)
Nondeductible compensation		(0.8	)		5.1			1.6
Nontaxable income		1.1			(4.2	)		—
Valuation allowance related to loss on sale of investment in PAL		(19.3	)		—			—
Tax expense on unremitted foreign earnings		(0.9	)		—			—
Toll charge		—			0.7			23.9
Revaluation of U.S. deferred balances due to U.S. tax reform		—			3.1			(14.2	)
Nondeductible expenses and other		(0.4	)		—			0.3
Effective tax rate		(1.7	)%		75.5	%		(4.9	)%

Deferred Tax Assets and Liabilities

The significant components of UNIFI’s deferred tax assets and liabilities consist of the following:

	June 28, 2020			June 30, 2019
Deferred tax assets:
Investments, including unconsolidated affiliates	$	3,995		$	5,680
Tax credits		19,457			17,237
Capital loss carryforwards		13,791			1,105
NOL carryforwards		3,907			4,381
Research and development costs		6,073			4,081
Other items		8,429			7,890
Total gross deferred tax assets		55,652			40,374
Valuation allowance		(37,439	)		(26,020	)
Net deferred tax assets		18,213			14,354
Deferred tax liabilities:
PP&E		(17,733	)		(18,325	)
Other		(677	)		(295	)
Total deferred tax liabilities		(18,410	)		(18,620	)
Net deferred tax liabilities	$	(197	)	$	(4,266	)

Deferred Tax Valuation Allowance Activities

The balances and activity for UNIFI’s deferred tax valuation allowance are as follows:

	For the Fiscal Year Ended
	June 28, 2020			June 30, 2019			June 24, 2018
Balance at beginning of year	$	(26,020	)	$	(15,143	)	$	(17,957	)
(Increase) decrease in valuation allowance		(11,419	)		(10,877	)		2,814
Balance at end of year	$	(37,439	)	$	(26,020	)	$	(15,143	)

Schedule of Components of Deferred Tax Valuation Allowance

Components of UNIFI’s deferred tax valuation allowance are as follows:

	For the Fiscal Year Ended
	June 28, 2020			June 30, 2019			June 24, 2018
Investments, including unconsolidated affiliates	$	(3,995	)	$	(5,696	)	$	(5,522	)
NOL carryforwards		(2,542	)		(2,943	)		(3,086	)
Capital loss carryforwards		(13,791	)		(1,105	)		(1,105	)
Tax credits		(17,111	)		(16,276	)		(5,430	)
Total deferred tax valuation allowance	$	(37,439	)	$	(26,020	)	$	(15,143	)

Reconciliation of Beginning and Ending Gross Amounts of Unrecognized Tax Benefits

A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows:

	For the Fiscal Year Ended
	June 28, 2020		June 30, 2019			June 24, 2018
Balance at beginning of year	$	1,083	$	166		$	4,463
Gross increases related to current period tax positions		98		26			26
Gross increases (decreases) related to tax positions in prior periods		37		980			(119	)
Gross decreases related to settlements with tax authorities		—		—			(4,204	)
Gross decreases related to lapse of applicable statute of limitations		—		(89	)		—
Balance at end of year	$	1,218	$	1,083		$	166