UNIFI INCUFI

UNIFI INC Segments Disclosure

10-KFiled Aug 26, 20255 min read

24. Business Segment Information

UNIFI defines operating segments as components of the organization for which discrete financial information is available and operating results are evaluated on a regular basis by UNIFI’s chief executive officer, who is the chief operating decision maker (the “CODM”), in order to assess performance and allocate resources. Characteristics of UNIFI which were relied upon in making the determination of reportable segments include the nature of the products sold, the internal organizational structure, the trade policies in the geographic regions in which UNIFI operates, and the information that is regularly provided to and reviewed by the CODM for the purpose of assessing performance and allocating resources.

UNIFI's three reportable segments are organized as follows:

•
The operations within the Americas Segment exhibit similar long-term economic characteristics and primarily sell into an economic trading zone covered by the United States-Mexico-Canada Agreement and the Dominican Republic-Central America Free Trade Agreement to similar customers utilizing similar methods of distribution. These operations derive revenues primarily from manufacturing recycled and synthetic textile products with sales primarily to yarn manufacturers, knitters, and weavers that produce yarn and/or fabric for the apparel, hosiery, automotive, home furnishings, industrial, medical, and other end-use markets principally in North and Central America. The Americas Segment consists of sales and manufacturing operations in the U.S., El Salvador, and Colombia.
•
The Brazil Segment primarily manufactures and sells recycled and synthetic textile products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets principally in Brazil. The Brazil Segment includes a manufacturing location and sales offices in Brazil.
•
The operations within the Asia Segment exhibit similar long-term economic characteristics and sell to similar customers utilizing similar methods of distribution primarily in Asia and Europe. The Asia Segment primarily sources recycled and synthetic textile products from third-party suppliers and sells to yarn manufacturers, knitters, and weavers principally in Asia and Europe that produce fabric for the apparel, automotive, home furnishings, industrial, and other end-use markets. The Asia Segment includes sales offices in China, Turkey, Hong Kong, and India.

UNIFI evaluates the operating performance of its segments based upon Segment Profit, which represents segment gross profit (loss) plus segment depreciation expense. This measurement of segment profit or loss best aligns segment reporting with the current assessments and evaluations performed by, and information provided to, the CODM.

The accounting policies for the segments are consistent with UNIFI’s accounting policies. Intersegment sales are omitted from segment disclosures, as they are (i) insignificant to UNIFI’s segments and eliminated from consolidated reporting and (ii) excluded from segment evaluations performed by the CODM. However, intersegment technologies expense charged from the Americas Segment to the Asia Segment is not eliminated from segment results. The technologies expense (i) reflects the sharing of certain manufacturing know-how, processes, and product technical information and design and (ii) is included in the segment evaluations performed by the CODM.

Selected financial information is presented below:

 

 

Fiscal 2025

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

347,931

 

 

$

118,726

 

 

$

104,687

 

 

$

571,344

 

Cost of sales

 

 

368,148

 

 

 

102,699

 

 

 

92,079

 

 

 

562,926

 

Gross (loss) profit

 

 

(20,217

)

 

 

16,027

 

 

 

12,608

 

 

 

8,418

 

Segment depreciation expense

 

 

21,003

 

 

 

2,771

 

 

 

57

 

 

 

23,831

 

Segment Profit

 

$

786

 

 

$

18,798

 

 

$

12,665

 

 

$

32,249

 

 

 

Fiscal 2024

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

344,256

 

 

$

117,783

 

 

$

120,170

 

 

$

582,209

 

Cost of sales

 

 

361,886

 

 

 

103,028

 

 

 

100,679

 

 

 

565,593

 

Gross (loss) profit

 

 

(17,630

)

 

 

14,755

 

 

 

19,491

 

 

 

16,616

 

Segment depreciation expense

 

 

22,154

 

 

 

3,257

 

 

 

10

 

 

 

25,421

 

Segment Profit

 

$

4,524

 

 

$

18,012

 

 

$

19,501

 

 

$

42,037

 

 

 

Fiscal 2023

 

 

 

Americas

 

 

Brazil

 

 

Asia

 

 

Total

 

Net sales

 

$

389,662

 

 

$

119,062

 

 

$

114,803

 

 

$

623,527

 

Cost of sales

 

 

404,321

 

 

 

106,900

 

 

 

98,065

 

 

 

609,286

 

Gross (loss) profit

 

 

(14,659

)

 

 

12,162

 

 

 

16,738

 

 

 

14,241

 

Segment depreciation expense

 

 

22,044

 

 

 

2,035

 

 

 

—

 

 

 

24,079

 

Segment Profit

 

$

7,385

 

 

$

14,197

 

 

$

16,738

 

 

$

38,320

 

The reconciliations of segment gross profit to consolidated loss before income taxes are as follows:

 

 

Fiscal 2025

 

 

Fiscal 2024

 

 

Fiscal 2023

 

Americas

 

$

(20,217

)

 

$

(17,630

)

 

$

(14,659

)

Brazil

 

 

16,027

 

 

 

14,755

 

 

 

12,162

 

Asia

 

 

12,608

 

 

 

19,491

 

 

 

16,738

 

Segment gross profit

 

 

8,418

 

 

 

16,616

 

 

 

14,241

 

SG&A

 

 

49,005

 

 

 

46,632

 

 

 

47,345

 

(Benefit) provision for bad debts

 

 

(166

)

 

 

1,571

 

 

 

(89

)

Restructuring costs

 

 

8,924

 

 

 

5,101

 

 

 

—

 

(Gain) loss on sale of assets

 

 

(40,079

)

 

 

62

 

 

 

278

 

Other operating expense, net

 

 

254

 

 

 

671

 

 

 

7,578

 

Operating loss

 

 

(9,520

)

 

 

(37,421

)

 

 

(40,871

)

Interest income

 

 

(888

)

 

 

(2,136

)

 

 

(2,109

)

Interest expense

 

 

9,520

 

 

 

9,862

 

 

 

7,577

 

Equity in loss (earnings) of unconsolidated affiliates

 

 

477

 

 

 

390

 

 

 

(896

)

Loss before income taxes

 

$

(18,629

)

 

$

(45,537

)

 

$

(45,443

)

The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows:

 

 

Fiscal 2025

 

 

Fiscal 2024

 

 

Fiscal 2023

 

Americas

 

$

21,003

 

 

$

22,154

 

 

$

22,044

 

Brazil

 

 

2,771

 

 

 

3,257

 

 

 

2,035

 

Asia

 

 

57

 

 

 

10

 

 

 

—

 

Segment depreciation expense

 

 

23,831

 

 

 

25,421

 

 

 

24,079

 

Other depreciation and amortization expense

 

 

1,453

 

 

 

2,248

 

 

 

3,107

 

Depreciation and amortization expense

 

$

25,284

 

 

$

27,669

 

 

$

27,186

 

The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows:

 

 

Fiscal 2025

 

 

Fiscal 2024

 

 

Fiscal 2023

 

Americas

 

$

8,592

 

 

$

8,843

 

 

$

25,943

 

Brazil

 

 

1,642

 

 

 

1,815

 

 

 

10,244

 

Asia

 

 

67

 

 

 

247

 

 

 

41

 

Segment capital expenditures

 

 

10,301

 

 

 

10,905

 

 

 

36,228

 

Other capital expenditures

 

 

187

 

 

 

284

 

 

 

206

 

Capital expenditures

 

$

10,488

 

 

$

11,189

 

 

$

36,434

 

 

The reconciliations of segment total assets to consolidated total assets are as follows:

 

 

June 29, 2025

 

 

June 30, 2024

 

Americas

 

$

271,230

 

 

$

300,977

 

Brazil

 

 

99,477

 

 

 

96,728

 

Asia

 

 

35,413

 

 

 

44,956

 

Segment total assets

 

 

406,120

 

 

 

442,661

 

Other current assets

 

 

2,911

 

 

 

5,480

 

Other PP&E

 

 

11,887

 

 

 

12,501

 

Other operating lease assets

 

 

937

 

 

 

1,522

 

Other non-current assets

 

 

3,862

 

 

 

5,477

 

Investments in unconsolidated affiliates

 

 

1,151

 

 

 

1,603

 

Total assets

 

$

426,868

 

 

$

469,244

 

Geographic Data

 

Net Sales

 

Fiscal 2025

 

 

Fiscal 2024

 

 

Fiscal 2023

 

U.S.

 

$

309,752

 

 

$

314,027

 

 

$

355,197

 

Brazil

 

 

118,726

 

 

 

117,783

 

 

 

119,061

 

China

 

 

99,475

 

 

 

112,650

 

 

 

100,183

 

Remaining Foreign Countries

 

 

43,391

 

 

 

37,749

 

 

 

49,086

 

Total

 

$

571,344

 

 

$

582,209

 

 

$

623,527

 

 

 

 

 

 

 

 

 

 

 

Export sales from UNIFI’s U.S. operations to external customers

 

$

67,892

 

 

$

65,666

 

 

$

52,051

 

 

The net sales amounts are based on the operating locations from where the items were produced or distributed.

 

Long-Lived Assets

 

June 29, 2025

 

 

June 30, 2024

 

U.S.

 

$

146,017

 

 

$

167,134

 

Brazil

 

 

24,305

 

 

 

30,569

 

China

 

 

1,458

 

 

 

1,375

 

Remaining Foreign Countries

 

 

13,926

 

 

 

15,841

 

Total

 

$

185,706

 

 

$

214,919

 

Long-lived assets are comprised of PP&E, net; operating lease assets; intangible assets, net; investments in unconsolidated affiliates; and other non-current assets.

Historical Timeline

Fiscal YearFiled
2025Aug 26, 2025Showing above
2024Aug 23, 2024
2023Aug 25, 2023
2022Aug 31, 2022
2021Aug 25, 2021
2020Aug 26, 2020
2019Aug 29, 2019
2018Aug 22, 2018
2017Sep 1, 2017

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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