Other Current Assets

6 Months Ended

Dec. 26, 2021

Other Assets Current [Abstract]

Other Current Assets

7.  Other Current Assets

Other current assets consist of the following:

	December 26, 2021		June 27, 2021
Vendor deposits	$	3,986	$	3,341
Value-added taxes receivable		3,762		2,484
Prepaid expenses and other		3,692		2,753
Recovery of non-income taxes		3,243		3,456
Contract assets		648		330
Total other current assets	$	15,331	$	12,364

Recovery of Non-Income Taxes

Brazilian companies are subject to various taxes on business operations, including turnover taxes used to fund social security and unemployment programs, commonly referred to as PIS/COFINS taxes.  UNIFI, along with numerous other companies in Brazil, challenged the constitutionality of certain state taxes historically included in the PIS/COFINS tax base, alleging that such state taxes resulted in over-taxation.

On May 13, 2021, Brazil’s Supreme Federal Court ruled in favor of taxpayers, and on July 7, 2021, the Brazilian Internal Revenue Service withdrew its appeal. Following the supreme court decision, the federal government will not issue refunds for these taxes but instead will allow for the overpayments and associated interest to be applied as credits against future PIS/COFINS tax obligations.

There are no limitations or restrictions on UNIFI’s ability to recover the associated overpayment claims as future income is generated. We expect to recover the entirety of our claims over the 36-month period following December 2021. Thus, UNIFI has reflected current and non-current assets accordingly.