Revenue Recognition

9 Months Ended

Mar. 28, 2021

Revenue From Contract With Customer [Abstract]

Revenue Recognition

4.  Revenue Recognition

The following tables present net sales grouped by (i) classification of sales type and (ii) REPREVE^® Fiber sales:

	For the Three Months Ended				For the Nine Months Ended
	March 28, 2021		March 29, 2020		March 28, 2021		March 29, 2020
Third-party manufacturer	$	176,100	$	169,033	$	475,087	$	514,590
Service		2,766		1,961		8,060		5,864
Net sales	$	178,866	$	170,994	$	483,147	$	520,454

	For the Three Months Ended				For the Nine Months Ended
	March 28, 2021		March 29, 2020		March 28, 2021		March 29, 2020
REPREVE® Fiber	$	59,171	$	49,091	$	169,689	$	162,469
All other products and services		119,695		121,903		313,458		357,985
Net sales	$	178,866	$	170,994	$	483,147	$	520,454

Third-Party Manufacturer

Third-party manufacturer revenue is primarily generated through sales to direct customers. Such sales represent satisfaction of UNIFI’s performance obligations required by the associated revenue contracts. Each of UNIFI’s reportable segments derives revenue from sales to third-party manufacturers.

Service Revenue

Service revenue is primarily generated, as services are rendered, through fulfillment of toll manufacturing of textile products or transportation services governed by written agreements. Such toll manufacturing and transportation services represent satisfaction of UNIFI’s performance obligations required by the associated revenue contracts. The Polyester Segment derives service revenue for toll manufacturing and the All Other category derives service revenue for transportation services.

REPREVE^® Fiber

REPREVE^® Fiber represents our collection of fiber products on our recycled platform, with or without added technologies.

Variable Consideration

Volume-based incentives

Volume-based incentives involve rebates or refunds of cash that are redeemable if the customer satisfies certain order volume thresholds during a defined time period. Under these incentive programs, UNIFI estimates the anticipated rebate to be paid and allocates a portion of the estimated cost of the rebate to each underlying sales transaction with the customer.

Product claims

UNIFI generally offers customers claims support or remuneration for defective products. UNIFI estimates the amount of its product sales that may be claimed as defective by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized.

For all variable consideration, where appropriate, UNIFI estimates the amount using the expected value method, which takes into consideration historical experience, current contractual requirements, specific known market events and forecasted customer buying and payment patterns. Overall, these reserves reflect UNIFI’s best estimates of the amount of consideration to which the customer is entitled based on the terms of the contracts. For fiscal 2021, 2020 and 2019, variable consideration has been immaterial to UNIFI’s financial statements.