UNIFI INC

Previous wording

Throughout fiscal 2025, inflationary pressures and uncertainty over global trade policies resulted in volatility and customer-demand headwinds, particularly in the Americas and Asia Segments. Looking ahead, we believe our operations remain well-positioned to capture long-term growth opportunities and we are working to mitigate any potential recessionary impacts.

Current wording

Throughout fiscal 2025, inflationary pressures and uncertainty over global trade policies resulted in volatility and customer-demand headwinds, particularly in the Americas and Asia Segments.

Previous wording

Demand levels for the majority of our business lines in the Americas and Asia Segments were below expectations, as a result of lower global demand amid consumer and macroeconomic uncertainty including most recently the tariffs and retaliatory tariffs.

Current wording

Demand levels for the majority of our business lines in the Americas and Asia Segments were below expectations, as a result of lower global demand amid consumer and macroeconomic uncertainty including the recent geopolitical situation in Iran, trade disruptions, and tariff-related concerns.

Previous wording

The Brazil Segment incurred selling price pressures from low-cost imports for most of the fiscal year, but sales volumes and margins remained strong.

Current wording

The Brazil Segment incurred selling price pressures from low-cost imports for most of the fiscal year, but sales volumes and margins remained strong due to diligent pricing actions associated with the Iran conflict.

Previous wording

The BRL to USD weighted average exchange rate was 5.71, 5.01, and 5.17 for fiscal 2025, 2024, and 2023, respectively. The RMB to USD weighted average exchange rate was 7.21, 7.22, and 6.94 for fiscal 2025, 2024, and 2023, respectively.

Current wording

The BRL to USD weighted average exchange rate was 5.27, 5.71, and 5.01 for fiscal 2026, 2025, and 2024, respectively. The RMB to USD weighted average exchange rate was 6.98, 7.21, and 7.22 for fiscal 2026, 2025, and 2024, respectively.

Previous wording

Within this reconciliation, depreciation and amortization expense excludes the amortization of debt issuance costs, which are reflected in interest expense, net. Within the accompanying consolidated statements of cash flows, amortization of debt issuance costs is reflected in depreciation and amortization expense. In fiscal 2025, 2024 and 2023, interest expense, net includes $136, $0 and $273, respectively, of loss on debt extinguishment.

Current wording

Within this reconciliation, depreciation and amortization expense excludes the amortization of debt issuance costs, which are reflected in interest expense, net. Within the accompanying Consolidated Statements of Cash Flows, amortization of debt issuance costs is reflected in depreciation and amortization expense. In fiscal 2025, interest expense, net includes $136 of loss on debt extinguishment.

Previous wording

In fiscal 2025, UNIFI incurred various transition costs totaling $13,485 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $5,896, (ii) inventory write-downs of $2,923, (iii) excess fixed manufacturing costs of $1,638, (iv) employee separation or retention costs of $1,580, and (v) forfeitures of deposits for texturing machinery of $1,448. The facility closure, equipment relocation, employee separation and retention costs, and forfeitures of deposits were all recorded within Restructuring costs and the inventory write-downs and excess fixed manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations.

Current wording

In fiscal 2026, UNIFI incurred various transition costs totaling $1,068 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $1,021, and (ii) employee separation costs of $47. The facility closure, equipment relocation, and employee separation costs were all recorded within Restructuring costs in the Consolidated Statements of Operations. In fiscal 2025, UNIFI incurred various transition costs totaling $13,485 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $5,896, (ii) inventory write-downs of $2,923, (iii) excess fixed manufacturing costs of $1,638, (iv) employee separation or retention costs of $1,580, and (v) forfeitures of deposits for texturing machinery of $1,448. The facility closure, equipment relocation, employee separation and retention costs, and forfeitures of deposits were all recorded within Restructuring costs and the inventory write-downs and excess fixed manufacturing costs were recorded within Cost of sales in the Consolidated Statements of Operations.

Previous wording

In fiscal 2024, UNIFI incurred severance costs of $2,351 in connection with the Profitability Improvement Plan in the U.S. and a loss of $2,750 related to the dissolution of a nylon joint venture.

Current wording

In fiscal 2026, UNIFI recorded employee separation costs of $1,093 in connection with the Fiscal 2026 Profit Improvement Plan and a $308 gain from disposals of assets from the consolidation of Americas yarn manufacturing operations. In fiscal 2024, UNIFI incurred severance costs of $2,351 in connection with the Profitability Improvement Plan in the U.S. and a loss of $2,750 related to the dissolution of a nylon joint venture.

Previous wording

In fiscal 2025, UNIFI incurred various transition costs totaling $13,485 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $5,896, (ii) inventory write-downs of $2,923, (iii) excess fixed manufacturing costs of $1,638, (iv) employee separation or retention costs of $1,580, and (v) forfeitures of deposits for texturing machinery of $1,448. The facility closure, equipment relocation, employee separation and retention costs, and forfeitures of deposits were all recorded within Restructuring costs and the inventory write-downs and excess fixed manufacturing costs were recorded within Cost of sales in the Condensed Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S.

Current wording

In fiscal 2026, UNIFI incurred various transition costs totaling $1,068 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $1,021, and (ii) employee separation costs of $47. The facility closure, equipment relocation, and employee separation costs were all recorded within Restructuring costs in the Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S. In fiscal 2025, UNIFI incurred various transition costs totaling $13,485 in connection with the consolidation of its yarn manufacturing operations including (i) facility closure and equipment relocation costs (including asset impairments and disposals) of $5,896, (ii) inventory write-downs of $2,923, (iii) excess fixed manufacturing costs of $1,638, (iv) employee separation or retention costs of $1,580, and (v) forfeitures of deposits for texturing machinery of $1,448. The facility closure, equipment relocation, employee separation and retention costs, and forfeitures of deposits were all recorded within Restructuring costs and the inventory write-downs and excess fixed manufacturing costs were recorded within Cost of sales in the Consolidated Statements of Operations. The associated tax impact was estimated to be $0 due to a valuation allowance against net operating losses in the U.S.

Previous wording

REPREVE Fiber products for fiscal 2025 comprised 31%, or $174,855, of consolidated net sales, compared to 32%, or $188,517, for fiscal 2024.

Current wording

REPREVE Fiber products for fiscal 2026 comprised 30%, or $157,428, of consolidated net sales, compared to 31%, or $174,855, for fiscal 2025.

Previous wording

Gain (Loss) on Sales and Disposals of Assets

Current wording

Loss (Gain) on Sales and Disposals of Assets

Previous wording

Interest expense, net increased from fiscal 2023. The increase was attributable to higher average borrowings on the revolving credit facility combined with higher average interest rates in fiscal 2024. Fiscal 2023 also includes a $273 loss on debt extinguishment.

Current wording

Interest expense, net decreased from fiscal 2025. The decrease was attributable to lower average debt principal and lower average interest rates in fiscal 2026. Fiscal 2025 also included a $136 loss on debt extinguishment.

Previous wording

The decrease in the effective tax rate from fiscal 2023 was primarily attributable to a discrete tax benefit recognized in fiscal 2023 related to the recovery of certain Brazilian income taxes paid in prior years.

Current wording

The decrease in the effective tax rate from fiscal 2025 to fiscal 2026 was primarily attributable to (i) a greater increase in the valuation allowances on losses and credit carryforwards in fiscal 2026, and (ii) a tax benefit associated with the recovery of income taxes in Brazil in fiscal 2025.

Previous wording

Net loss for fiscal 2024 was $47,395, or $2.61 per diluted share, compared to $46,344, or $2.57 per diluted share, for fiscal 2023. The increase in net loss was primarily attributable to (i) higher bad debt expense, (ii) restructuring costs, (iii) interest expense, net and (iv) lower earnings from unconsolidated affiliates, mostly offset by higher gross profit and lower other operating expense, net. Fiscal 2023 Other operating expense, net included (a) $8,247 of impairment related to the abandonment of certain machinery constructed in fiscal 2017 and (b) $623 paid to a vendor to facilitate an 18-month delay for equipment purchases.

Current wording

Net loss for fiscal 2026 was $24,562, or $1.33 per diluted share, compared to $20,348, or $1.11 per diluted share, for fiscal 2025. The change in net loss was primarily attributable to (i) a gain on sales of assets in fiscal 2025 and (ii) higher income tax expense, which were partially offset by (a) increased gross profit, (b) lower SG&A expenses, (c) lower interest expense, net, and (d) lower restructuring costs in fiscal 2026.

Previous wording

The increase in Segment Profit for the Brazil Segment from fiscal 2023 to fiscal 2024 was primarily attributable to (i) increases in sales volumes as discussed above, (ii) improved conversion margins, and (ii) favorable foreign currency translation effects.

Current wording

The decrease in Segment Profit for the Asia Segment from fiscal 2025 to fiscal 2026 was primarily attributable to a decline in sales volumes as discussed above.

Previous wording

UNIFI’s primary capital requirements are for working capital, capital expenditures, debt service. UNIFI’s primary sources of capital are cash generated from operations, borrowings available under the 2022 ABL Revolver (as defined below) of the 2022 ABL Facility (as defined below) and the 2024 Facility (as defined below).

Current wording

UNIFI’s primary capital requirements are for working capital, capital expenditures, and debt service. UNIFI’s primary sources of capital are cash generated from operations and borrowings available under existing debt agreements.

Previous wording

As of June 29, 2025, all of UNIFI’s $108,008 of debt obligations were guaranteed by certain of its domestic operating subsidiaries, and nearly all of UNIFI’s cash and cash equivalents were held by its foreign subsidiaries. Cash and cash equivalents held by foreign subsidiaries may not be presently available to fund UNIFI’s domestic capital requirements, including its domestic debt obligations. UNIFI employs a variety of strategies to ensure that its worldwide cash is available in the locations where it is needed.

Current wording

As of June 28, 2026, $70,439 of UNIFI's debt obligations were guaranteed by certain of its domestic operating subsidiaries and the remaining $22,000 were guaranteed by a related party discussed below, and nearly all of UNIFI’s cash and cash equivalents were held by its foreign subsidiaries. Cash and cash equivalents held by foreign subsidiaries may not be presently available to fund UNIFI’s domestic capital requirements, including its domestic debt obligations. UNIFI employs a variety of strategies to ensure that its worldwide cash is available in the locations where it is needed.

Previous wording

For fiscal 2025, cash used from operations was $21,311 and, at June 29, 2025, excess availability under the 2022 ABL Revolver and the 2024 Facility was $46,526 and $561, respectively. Our liquidity position (calculated in the table above) and asset base remains elevated and is expected to be adequate to allow UNIFI to manage through the current macro-economic environment and to respond quickly to demand recovery.

Current wording

For fiscal 2026, cash provided from operations was $26,534 and, at June 28, 2026, excess availability under the 2022 ABL Revolver and the 2024 Facility was $44,147 and $594, respectively. Our liquidity position (calculated in the table above) and asset base remains elevated and is expected to be adequate to allow UNIFI to manage through the current macro-economic environment and to respond quickly to demand recovery.

Previous wording

UNIFI considers $42,505 of its unremitted foreign earnings to be permanently reinvested to fund working capital requirements and operations abroad, and has therefore not recognized a deferred tax liability for the estimated future taxes that would be incurred upon repatriation. If these earnings were distributed in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, UNIFI could be subject to additional tax liabilities of approximately $11,193.

Current wording

UNIFI considers $44,110 of its unremitted foreign earnings to be permanently reinvested to fund working capital requirements and operations abroad, and has therefore not recognized a deferred tax liability for the estimated future taxes that would be incurred upon repatriation. If these earnings were distributed in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, UNIFI could be subject to additional tax liabilities of approximately $13,728.

Previous wording

Short-term global demand appears somewhat uncertain and any adverse events or circumstances could place critical pressure on (i) our liquidity position; and/or (ii) our ability to fund our operations, capital expenditures, and expected business growth. Should global demand, economic activity, or input availability decline considerably for a prolonged period of time (for example, in connection with the Russia-Ukraine or Middle East conflicts or the macro-economic factors leading to inflation and a potential recession), UNIFI maintains the ability to (i) seek additional credit or financing arrangements and/or (ii) re-implement cost reduction initiatives to preserve cash and secure the longevity of the business and operations.

Current wording

Short-term global demand appears somewhat uncertain and any adverse events or circumstances could place critical pressure on (i) our liquidity position; and/or (ii) our ability to fund our operations, capital expenditures, and expected business growth. Should global demand, economic activity, or input availability decline considerably for a prolonged period of time (for example, in connection with the Russia-Ukraine or Middle East conflicts or other macro-economic factors), UNIFI maintains the ability to (i) seek additional credit or financing arrangements and/or (ii) re-implement cost reduction initiatives to preserve cash and secure the longevity of the business and operations.

Previous wording

Additionally, UNIFI considers opportunities to repatriate existing cash to reduce debt and preserve or enhance liquidity. In fiscal 2023, 2024, and 2025, we repatriated approximately $19,000, $32,000, and $15,000, respectively, from our operations in Asia and Brazil to the U.S. and, after remitting the appropriate withholding taxes, utilized the cash to reduce our outstanding revolver borrowings, thereby increasing the availability. Management regularly evaluates such repatriations and believes that it has the ability to take additional, similar actions from time to time, as circumstances warrant.

Current wording

Additionally, UNIFI considers opportunities to repatriate existing cash to reduce debt and preserve or enhance liquidity. In fiscal 2024, 2025, and 2026, we repatriated approximately $32,000, $15,000, and $13,000, respectively, from our operations in Asia and Brazil to the U.S. and, after remitting the appropriate withholding taxes, utilized the cash to reduce our outstanding revolver borrowings, thereby increasing the availability. Management regularly evaluates such repatriations and believes that it has the ability to take additional, similar actions from time to time, as circumstances warrant.

Previous wording

During fiscal 2026, we expect the majority of our capital will be deployed to support further working capital needs in response to the demand environment and product sales. However, given the current global economic risks, we are prepared to act swiftly and diligently to ensure the vitality of the business. Our recent actions, specifically the transition of our Madison operations to other production facilities within North and Central America, will improve our operational efficiency as a result of the cost savings that will be realized. Furthermore, the sale of the Madison manufacturing facility allowed us to repay a portion of the principal balance of the term loan and revolving credit facility outstanding under the 2022 Credit Agreement lowering our future debt service costs.

Current wording

During fiscal 2027, we expect the majority of our capital will be deployed to support further working capital needs in response to the current demand environment and product sales. However, given the current global economic risks, we are prepared to act swiftly and decisively to ensure the vitality of the business. Our recent actions, specifically the transition of our Madison operations to other production facilities within North and Central America, will continue to provide better operational efficiency as a result of the cost savings that have been realized. We have also entered into an agreement to sell certain non-strategic real estate assets in North Carolina, and the closing of this transaction would have a significant positive impact to deleveraging the balance sheet and operating structure.

Previous wording

On October 28, 2022, Unifi, Inc. and certain of its subsidiaries entered into a Second Amended and Restated Credit Agreement (the “2022 Credit Agreement”) with a syndicate of lenders. The 2022 Credit Agreement provided for a $230,000 senior secured credit facility (the “2022 ABL Facility”), including a $115,000 revolving credit facility (the "2022 ABL Revolver") and a term loan (the "2022 ABL Term Loan") that can be reset up to a maximum amount of $115,000, once per fiscal year, if certain conditions are met. The 2022 ABL Facility has a maturity date of October 28, 2027. The 2022 ABL Term Loan requires quarterly principal payments of $2,300 that began on February 1, 2023. Borrowings under the 2022 ABL Facility bear interest at the Secured Overnight Financing Rate ("SOFR") plus 0.10% plus an applicable margin of 2.0%, or the Base Rate (as defined in the 2022 Credit Agreement) plus an applicable margin of 1.0%, with interest paid most commonly on a monthly basis.

Current wording

On October 28, 2022, Unifi, Inc. and certain of its subsidiaries entered into a Second Amended and Restated Credit Agreement (the “2022 Credit Agreement”) with a syndicate of lenders which provided for a $230,000 senior secured credit facility (the “2022 ABL Facility”), including a $115,000 revolving credit facility (the "2022 ABL Revolver") and a term loan (the "2022 ABL Term Loan") that can be reset up to a maximum amount of $115,000, once per fiscal year, if certain conditions are met. The 2022 ABL Facility has a maturity date of October 28, 2027. The 2022 ABL Term Loan requires quarterly principal payments of $2,300. Borrowings under the 2022 ABL Facility bear interest at the Secured Overnight Financing Rate ("SOFR") plus 0.10% plus an applicable margin of 2.0%, or the Base Rate (as defined in the 2022 Credit Agreement) plus an applicable margin of 1.0%, with interest paid most commonly on a monthly basis.

Previous wording

As of June 29, 2025, UNIFI was in compliance with all financial covenants in the 2022 Credit Agreement; excess availability under the 2022 ABL Revolver was $46,526 and UNIFI had $0 of standby letters of credit. Management maintains the capability to improve the fixed charge coverage ratio utilizing existing foreign cash and cash equivalents.

Current wording

As of June 28, 2026, UNIFI was in compliance with all financial covenants in the 2022 Credit Agreement; excess availability under the 2022 ABL Revolver was $44,147 and UNIFI had $0 of standby letters of credit. Management maintains the capability to improve the fixed charge coverage ratio utilizing existing foreign cash and cash equivalents.

Previous wording

During fiscal 2024, UNIFI entered into finance lease obligations totaling $1,633 for texturing machines. The maturity dates of these obligations occur during fiscal 2029 with interest rates between 6.6% and 6.9%.

Current wording

During fiscal 2026, UNIFI entered into finance lease obligations totaling $4,117 for transportation equipment. The maturity dates of these obligations range from October 2030 to October 2032 with interest rates ranging from 4.2% to 4.5%.

Previous wording

Working capital decreased from $172,367 as of June 30, 2024 to $164,684 as of June 29, 2025, while Adjusted Working Capital decreased from $160,680 to $151,167, both primarily in connection with slower overall economic conditions and higher input costs. Working capital and Adjusted Working Capital are within the range of management’s expectations based on the composition of the underlying business and global structure.

Current wording

Working capital decreased from $164,684 as of June 29, 2025 to $147,898 as of June 28, 2026, while Adjusted Working Capital decreased from $151,167 to $137,076, both primarily in connection with slower overall economic conditions and higher input costs. Working capital and Adjusted Working Capital are within the range of management’s expectations based on the composition of the underlying business and global structure.

Previous wording

The decrease in receivables, net was primarily due to the overall decrease in sales and the timing of cash receipts. The decrease in inventories was primarily attributable to concerted efforts to reduce inventory levels in response to the depressed demand environment and in relation to the consolidation of yarn manufacturing operations with the closure of the Madison, North Carolina facility. The decrease in other current assets was primarily due to the fiscal 2025 sale of a warehouse in Yadkinville, North Carolina previously classified in assets held for sale in fiscal 2024. The decrease in accounts payable followed the decrease in inventories and production activity in fiscal 2025. The increase in other current liabilities primarily reflects the change in compensation-related accruals in fiscal 2025 and the timing of payroll and operating expense payments between the two period-ends. The increase in income taxes receivable was primarily due to a reclassification of Brazil’s income tax recovery from other non-current assets to income taxes receivable due to the expectation of realizing the tax benefit within 12 months. The change in income taxes payable, current operating lease liabilities, and current portion of long-term debt were insignificant.

Current wording

The increase in receivables, net was primarily due to the timing of cash receipts. The decrease in inventories was primarily attributable to concerted efforts to reduce inventory levels in response to the depressed demand environment and in relation to the consolidation of yarn manufacturing operations with the recent closure of the Madison, North Carolina facility. The decrease in other current assets was primarily due to the decrease in inventory prepayments. The decrease in accounts payable followed the decrease in inventories and production activity in fiscal 2026. The decrease in other current liabilities primarily reflects the change in compensation-related accruals in fiscal 2026 and the timing of payroll and operating expense payments between the two period-ends. The decrease in income taxes receivable was primarily due to receipt of refunds of income taxes recovered for prior periods in Brazil. The change in income taxes payable, current operating lease liabilities, and current portion of long-term debt were insignificant.

Previous wording

In fiscal 2023, UNIFI invested $36,434 in capital projects, primarily relating to (i) texturing machinery, (ii) further improvements in production capabilities and technological enhancements in the Americas, and (iii) routine annual maintenance capital expenditures.

Current wording

In fiscal 2026, UNIFI invested $5,002 in capital projects, primarily relating to (i) modifications of machinery with the consolidation of yarn manufacturing operations, (ii) further improvements in production capabilities and technological enhancements in the Americas, and (iii) routine annual maintenance capital expenditures.

Previous wording

In fiscal 2026, UNIFI expects to invest between $8,000 and $12,000 in capital projects, primarily relating to routine annual maintenance capital expenditures. UNIFI will seek to ensure maintenance capital expenditures are sufficient to allow continued production at high efficiencies.

Current wording

In fiscal 2027, UNIFI expects to invest between $7,000 and $9,000 in capital projects, primarily relating to routine annual maintenance capital expenditures. UNIFI will seek to ensure maintenance capital expenditures are sufficient to allow continued production at high efficiencies.

Previous wording

The significant components of net cash (used) provided by operating activities are summarized below. UNIFI analyzes net cash provided by operating activities utilizing the major components of the statements of cash flows prepared under the indirect method.

Current wording

The significant components of net cash provided (used) by operating activities are summarized below. UNIFI analyzes net cash provided by operating activities utilizing the major components of the statements of cash flows prepared under the indirect method.

Previous wording

The decrease in operating cash flows was primarily due to weaker earnings in fiscal 2024 compared to fiscal 2023, partially offset by working capital improvements.

Current wording

The increase in operating cash flows from fiscal 2025 was primarily due to improvement in gross profit and the reduction in working capital balances in fiscal 2026.

Previous wording

Significant investing activities included $36,434 for capital expenditures (as described above). Significant financing activities included $22,200 of net borrowings against the 2022 ABL Facility, along with $2,123 of payments on finance lease obligations.

Current wording

Significant investing activities included $5,002 for capital expenditures (as described above). Significant financing activities included $16,300 of net payments against the 2022 ABL Facility.

Previous wording

Non-capital purchase orders totaled approximately $13,218 at the end of fiscal 2025 and are expected to be settled in fiscal 2026. Such open purchase orders are in the ordinary course of business for the procurement of (i) raw materials used in the production of inventory, (ii) certain consumables and outsourced services used in UNIFI’s manufacturing processes, and (iii) selected finished goods for resale sourced from third-party suppliers.

Current wording

Non-capital purchase orders totaled approximately $20,170 at the end of fiscal 2026 and are expected to be settled in fiscal 2027. Such open purchase orders are in the ordinary course of business for the procurement of (i) raw materials used in the production of inventory, (ii) certain consumables and outsourced services used in UNIFI’s manufacturing processes, and (iii) selected finished goods for resale sourced from third-party suppliers.

Previous wording

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU No. 2023-09 modifies the rules on income tax disclosures to require entities to disclose (i) specific categories in the rate reconciliation, (ii) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (iii) income tax expense or benefit from continuing operations (separated by federal, state, and foreign). The ASU also requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. The ASU is effective for UNIFI's fiscal 2026, with early adoption permitted, and should be applied on a prospective basis, but retrospective application is permitted. UNIFI is currently evaluating the impact on the Company’s disclosures but does not expect this standard will have a material impact on its consolidated financial position, results of operations, or cash flows.

Current wording

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU No. 2023-09 modifies the rules on income tax disclosures to require entities to disclose (i) specific categories in the rate reconciliation, (ii) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (iii) income tax expense or benefit from continuing operations (separated by federal, state, and foreign). The ASU also requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. UNIFI adopted the ASU this fiscal year and the adoption did not have a material impact to UNIFI's consolidated financial statements.