Revenue Recognition

6 Months Ended

Dec. 26, 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 Six Months Ended
	December 26, 2021		December 27, 2020		December 26, 2021		December 27, 2020
Third-party manufacturer	$	199,585	$	160,146	$	392,882	$	298,987
Service		1,825		2,630		4,520		5,294
Net sales	$	201,410	$	162,776	$	397,402	$	304,281

	For the Three Months Ended				For the Six Months Ended
	December 26, 2021		December 27, 2020		December 26, 2021		December 27, 2020
REPREVE® Fiber	$	81,524	$	62,531	$	153,430	$	114,143
All other products and services		119,886		100,245		243,972		190,138
Net sales	$	201,410	$	162,776	$	397,402	$	304,281

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.

Beginning in the fourth quarter of fiscal 2021, as a result of its annual review of products meeting the REPREVE^® Fiber definition, UNIFI began including certain product sales in the Asia Segment that were previously excluded from the REPREVE^® Fiber sales metric. The prior periods have been adjusted to reflect such sales and the amount reclassed was not material.

Variable Consideration

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. Variable consideration has been immaterial to UNIFI’s financial statements for all periods presented.