Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 27, 2014 | Sep. 05, 2014 | Dec. 27, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 27-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'FN | ' | ' |
Entity Registrant Name | 'FABRINET | ' | ' |
Entity Central Index Key | '0001408710 | ' | ' |
Current Fiscal Year End Date | '--06-27 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 35,319,755 | ' |
Entity Public Float | ' | ' | $545,253,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $233,477 | $149,716 |
Trade accounts receivable, net | 101,168 | 118,475 |
Inventory, net | 124,570 | 88,962 |
Deferred tax assets | 1,561 | 1,397 |
Prepaid expenses | 1,691 | 1,931 |
Other current assets | 2,010 | 3,505 |
Total current assets | 464,477 | 363,986 |
Non-current assets | ' | ' |
Property, plant and equipment, net | 97,244 | 97,206 |
Intangibles, net | 72 | 164 |
Deferred tax assets | 1,775 | 2,116 |
Deposits and other non-current assets | 989 | 107 |
Total non-current assets | 100,080 | 99,593 |
Total assets | 564,557 | 463,579 |
Current liabilities | ' | ' |
Long-term loans from bank, current portion | 6,000 | 9,668 |
Trade accounts payable | 94,853 | 77,139 |
Income tax payable | 1,024 | 1,825 |
Accrued payroll, bonus and related expenses | 8,612 | 6,220 |
Accrued expenses | 4,345 | 3,121 |
Other payables | 5,795 | 5,163 |
Liabilities to third parties due to flood losses | ' | 9,812 |
Total current liabilities | 120,629 | 112,948 |
Non-current liabilities | ' | ' |
Long-term loans from bank, non-current portion | 10,500 | 19,243 |
Deferred tax liability | 1,040 | 1,152 |
Severance liabilities | 4,453 | 4,382 |
Other non-current liabilities | 1,099 | 536 |
Total non-current liabilities | 17,092 | 25,313 |
Total liabilities | 137,721 | 138,261 |
Commitments and contingencies (Note 16) | ' | ' |
Shareholders' equity | ' | ' |
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of June 27, 2014 and June 28, 2013) | 0 | 0 |
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 35,152,772 shares and 34,634,967 shares issued and outstanding as of June 27, 2014 and June 28, 2013, respectively) | 352 | 346 |
Additional paid-in capital | 80,882 | 71,101 |
Retained earnings | 345,602 | 253,871 |
Total shareholders' equity | 426,836 | 325,318 |
Total Liabilities and Shareholders' Equity | $564,557 | $463,579 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
Preferred shares, shares authorized | 5,000,000 | 5,000,000 |
Preferred shares, par value | $0.01 | $0.01 |
Preferred shares, shares issued | ' | ' |
Preferred shares, shares outstanding | ' | ' |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, par value | $0.01 | $0.01 |
Ordinary shares, shares issued | 35,152,772 | 34,634,967 |
Ordinary shares, shares outstanding | 35,152,772 | 34,634,967 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Revenues | $677,854 | $641,542 | $564,732 |
Cost of revenues | -603,621 | -572,124 | -502,818 |
Gross profit | 74,233 | 69,418 | 61,914 |
Selling, general and administrative expenses | -27,664 | -23,787 | -23,466 |
Income (expense) related to flooding | 44,748 | 27,211 | -97,286 |
Expenses related to reduction in workforce | ' | -2,052 | -1,978 |
Operating income (loss) | 91,317 | 70,790 | -60,816 |
Interest income | 1,793 | 1,083 | 844 |
Interest expense | -713 | -1,010 | -427 |
Foreign exchange (loss) gain, net | -24 | 354 | 1,569 |
Other income | 797 | 692 | 395 |
Income (loss) before income taxes | 93,170 | 71,909 | -58,435 |
Income tax (expense) benefit | -1,439 | -2,940 | 1,968 |
Net income (loss) | 91,731 | 68,969 | -56,467 |
Other comprehensive income | ' | ' | ' |
Net comprehensive income (loss) | $91,731 | $68,969 | ($56,467) |
Earnings (loss) per share | ' | ' | ' |
Basic | $2.63 | $2 | ($1.64) |
Diluted | $2.58 | $1.98 | ($1.64) |
Weighted average number of ordinary shares outstanding (thousands of shares) | ' | ' | ' |
Basic | 34,938 | 34,557 | 34,382 |
Diluted | 35,589 | 34,846 | 34,382 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Ordinary Shares | Additional Paid-in Capital | Retained Earnings |
In Thousands, except Share data | ||||
Beginning Balance at Jun. 24, 2011 | $301,527 | $342 | $59,816 | $241,369 |
Beginning Balance (in shares) at Jun. 24, 2011 | ' | 34,207,579 | ' | ' |
Net income (loss) | -56,467 | ' | ' | -56,467 |
Share-based compensation expense | 4,649 | ' | 4,649 | ' |
Issuance of ordinary shares (in shares) | ' | 263,250 | ' | ' |
Issuance of ordinary shares | 1,000 | 3 | 997 | ' |
Ending Balance at Jun. 29, 2012 | 250,709 | 345 | 65,462 | 184,902 |
Ending Balance (in shares) at Jun. 29, 2012 | ' | 34,470,829 | ' | ' |
Net income (loss) | 68,969 | ' | ' | 68,969 |
Share-based compensation expense | 5,100 | ' | 5,100 | ' |
Issuance of ordinary shares (in shares) | ' | 164,138 | ' | ' |
Issuance of ordinary shares | 561 | 1 | 560 | ' |
Tax withholdings related to net share settlement of restricted share units | -21 | ' | -21 | ' |
Ending Balance at Jun. 28, 2013 | 325,318 | 346 | 71,101 | 253,871 |
Ending Balance (in shares) at Jun. 28, 2013 | ' | 34,634,967 | ' | ' |
Net income (loss) | 91,731 | ' | ' | 91,731 |
Share-based compensation expense | 5,547 | ' | 5,547 | ' |
Issuance of ordinary shares (in shares) | ' | 517,805 | ' | ' |
Issuance of ordinary shares | 4,567 | 6 | 4,561 | ' |
Tax withholdings related to net share settlement of restricted share units | -327 | ' | -327 | ' |
Ending Balance at Jun. 27, 2014 | $426,836 | $352 | $80,882 | $345,602 |
Ending Balance (in shares) at Jun. 27, 2014 | ' | 35,152,772 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Cash flows from operating activities | ' | ' | ' |
Net income (loss) for the year | $91,731 | $68,969 | ($56,467) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ' | ' | ' |
Depreciation | 10,565 | 9,994 | 9,339 |
Amortization of intangibles | 93 | 217 | 374 |
(Gain) loss on disposal of property, plant and equipment | -28 | -24 | 17 |
Income related to flooding | -45,211 | -29,465 | ' |
(Reversal of) allowance for doubtful accounts | -72 | -94 | 124 |
Unrealized loss (gain) on exchange rate and fair value of derivative | 722 | -1,043 | -925 |
Share-based compensation | 5,547 | 5,100 | 4,649 |
Deferred income tax | 65 | 2,086 | -2,242 |
Other non-cash expenses (income) | 634 | -89 | 93 |
Reversal of uncertain tax positions | -1,538 | ' | ' |
Inventory obsolescence (reversal of) | 443 | -584 | 499 |
Loss from written-off assets and liabilities to third parties due to flood losses | ' | 2,255 | 83,871 |
Changes in operating assets and liabilities | ' | ' | ' |
Trade accounts receivable | 17,379 | 4,739 | -10,672 |
Inventory | -36,051 | 14,229 | -13,867 |
Other current assets and non-current assets | -1,035 | -1,207 | -5,291 |
Trade accounts payable | 17,714 | -8,861 | -6,563 |
Income tax payable | 737 | -5 | -1,505 |
Other current liabilities and non-current liabilities | 4,951 | -35 | 817 |
Liabilities to third parties due to flood losses | -7,512 | -41,994 | ' |
Net cash provided by operating activities | 66,550 | 48,750 | 2,251 |
Cash flows from investing activities | ' | ' | ' |
Purchase of property, plant and equipment | -10,835 | -10,793 | -35,535 |
Purchase of intangibles | -1 | -2 | -147 |
Purchase of assets for lease under direct financing leases | ' | ' | -2,940 |
Proceeds from direct financing leases | ' | ' | 1,217 |
Proceeds from disposal of property, plant and equipment | 29 | 29 | 27 |
Proceeds from insurers in settlement of claims related to flood damage | 37,795 | 4,904 | ' |
Net cash provided by (used in) investing activities | 26,988 | -5,862 | -37,378 |
Cash flows from financing activities | ' | ' | ' |
Receipt of long-term loans from bank | ' | ' | 28,000 |
Repayment of long-term loans from bank | -12,411 | -9,668 | -5,798 |
Proceeds from issuance of ordinary shares under employee share option plan | 4,567 | 561 | 1,000 |
Withholding tax related to net share settlement of restricted share units | -327 | -21 | ' |
Net cash (used in) provided by financing activities | -8,171 | -9,128 | 23,202 |
Net increase (decrease) in cash and cash equivalents | 85,367 | 33,760 | -11,925 |
Movement in cash and cash equivalents | ' | ' | ' |
Cash and cash equivalents at beginning of period | 149,716 | 115,507 | 127,282 |
Increase (decrease) in cash and cash equivalents | 85,367 | 33,760 | -11,925 |
Effect of exchange rate on cash and cash equivalents | -1,606 | 449 | 150 |
Cash and cash equivalents at end of period | 233,477 | 149,716 | 115,507 |
Cash paid for | ' | ' | ' |
Interest | 709 | 1,014 | 711 |
Taxes | 198 | 260 | 1,807 |
Cash received for interest | 1,672 | 873 | 782 |
Non-cash investing and financing activities | ' | ' | ' |
Construction-related payable | ' | ' | 2,222 |
Fixed assets payable | 1,130 | 1,361 | 651 |
Claim for Business Interruption Losses | ' | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ' | ' | ' |
Proceeds from insurers for losses related to flooding | ' | 13,143 | ' |
Claim for inventory losses | ' | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ' | ' | ' |
Proceeds from insurers for losses related to flooding | $7,416 | $11,419 | ' |
Business_and_organization
Business and organization | 12 Months Ended | |
Jun. 27, 2014 | ||
Business and organization | ' | |
1 | Business and organization | |
Description of Business | ||
Fabrinet (“Fabrinet” or the “Parent Company”) was incorporated on August 12, 1999, and commenced operations on January 1, 2000. The Parent Company is an exempted company incorporated in the Cayman Islands, British West Indies. “We,” “us,” “our” and the “Company” refer to Fabrinet and its subsidiaries as a group. | ||
The Company provides advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of complex products, such as optical communication components, modules and sub-systems, industrial lasers and sensors. The Company offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging, integration, final assembly and test. The Company focuses primarily on the production of low-volume, high-mix products. The subsidiaries of Fabrinet include Fabrinet Co., Ltd. (“Fabrinet Thailand”), Fabrinet USA, Inc., FBN New Jersey Manufacturing, Inc., Fabrinet China Holdings, CASIX, Inc., Fabrinet Pte., Ltd., and Fabrinet AB which was liquidated on May 2, 2014. The Company does not expect that the liquidation will have an effect on its consolidated financial statements. | ||
Asia Pacific Growth Fund III, L.P. and its affiliates held 8.8%, 17.8% and 26.3% of Fabrinet’s share capital (fully diluted) as of June 27, 2014, June 28, 2013, and June 29, 2012, respectively. The Company has no commercial transactions with Asia Pacific Growth Fund III, L.P. and its affiliates. | ||
Secondary Public Offering | ||
On May 28, 2014 and on March 14, 2013, certain existing shareholders of Fabrinet sold an aggregate of 3,150,000 and 3,800,000 ordinary shares at a price of $18.00 and $14.00 per share, respectively, less underwriting discounts and commissions, in a secondary public offering. The Company did not receive any proceeds from the sale of ordinary shares by the selling shareholders. The Company incurred $0.3 million and $0.4 million of expenses in connection with the secondary offering during the years ended June 27, 2014 and June 28, 2013. |
Summary_of_significant_account
Summary of significant accounting policies | 12 Months Ended | ||||
Jun. 27, 2014 | |||||
Summary of significant accounting policies | ' | ||||
2 | Summary of significant accounting policies | ||||
Principles of consolidation | |||||
The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. Fiscal year 2014, fiscal year 2013, and fiscal year 2012 ended on June 27, 2014, June 28, 2013 and June 29, 2012, respectively and consisted of 52 weeks, 52 weeks and 53 weeks, respectively. | |||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include Fabrinet and its subsidiaries listed in Note 1 above. All inter-company accounts and transactions have been eliminated. | |||||
Use of estimates | |||||
The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and expense during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, income taxes and inventory obsolescence, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to differ from actual results, adjustments will be made in subsequent periods to reflect more current information. | |||||
Foreign currency transactions and translation | |||||
The consolidated financial statements are presented in United States Dollars (“$” or “USD”). | |||||
The functional currency of Fabrinet and its subsidiaries is the USD. Transactions in currencies other than the functional currency are translated into the functional currency at the rates of exchange in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the balance sheet dates. Transaction gains and losses are included in other income and expense, net, in the accompanying consolidated statements of operations. | |||||
Cash and cash equivalents | |||||
All highly liquid investments with maturities of three months or less from original dates of purchase are carried at fair market value and considered to be cash equivalents. Cash and cash equivalents consist of cash deposited in checking accounts, time deposits with maturities of less than three months and money market accounts. | |||||
Trade accounts receivable | |||||
Accounts receivable are carried at anticipated realizable value. The Company assesses the collectability of its accounts receivable based on specific customer circumstances, current economic trends, historical experience with collection and the age of past due receivables and provides an allowance for doubtful receivables based on a review of all outstanding amounts at the period end. Bad debts are written-off when identified. | |||||
Unanticipated changes in the liquidity or financial position of the Company’s customers may require revision to the allowances for doubtful accounts. | |||||
Inventory | |||||
Inventory is stated at the lower of cost or market value. Cost is estimated using the standard costing method, computed on a first-in, first-out basis, with adjustments for variances to reflect actual costs not in excess of net realizable market value. Market value is the estimated selling price in the ordinary course of business, less the costs of completion and selling expenses. The Company assesses the valuation of inventory on a quarterly basis and writes down the value for estimated excess and obsolete inventory based upon estimates of future demand. | |||||
Leases | |||||
Payments made under operating leases are expensed on a straight-line basis over the lease term. | |||||
Property, plant and equipment | |||||
Land is stated at historical cost. Other property, plant and equipment, except for construction in process and machinery under installation, are stated at historical cost less accumulated depreciation. Depreciation is calculated on the straight-line method to write-off the cost of each asset to its residual value over its estimated useful life as follows: | |||||
Building and building improvements | 10 - 30 years | ||||
Leasehold improvements | Shorter of useful life or lease term | ||||
Manufacturing equipment | 3 - 5 years | ||||
Office equipment | 3 - 5 years | ||||
Motor vehicles | 5 years | ||||
Computer hardware | 3 - 5 years | ||||
Construction in process and machinery under installation is stated at historic cost and depreciation begins after it is constructed and fully installed and is used in the operations of the Company. | |||||
Gains and losses on disposal are determined by comparing proceeds with carrying amounts and are included in operating income in the consolidated statements of operations. | |||||
The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Recoverability of long-lived assets or asset groups is measured by comparing their carrying amount to the projected undiscounted cash flows that the long-lived assets or asset groups are expected to generate. If such assets are considered to be impaired, the impairment loss recognized, if any, is the amount by which the carrying amount of the property and equipment exceeds its fair value. | |||||
Borrowing costs | |||||
Borrowing costs are accounted for on an accrual basis and are charged to the consolidated statements of operations in the year incurred, except for interest costs on borrowings to finance certain qualifying assets. Such costs to finance qualifying assets are capitalized during the period of time that is required to complete and prepare the assets for their intended use, as part of the cost of the assets. All other borrowing costs are expensed as incurred. | |||||
The capitalization rate used to determine the amount of interest to be capitalized is the weighted average interest rate applicable to the Company’s outstanding borrowings during the year. Where funds are borrowed specifically for the acquisition, construction or production of assets, the amount of borrowing costs eligible for capitalization on the respective assets is determined as the actual borrowing costs are incurred on that borrowing during the respective periods. | |||||
Fair value of financial instruments | |||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs for the valuation of an asset or liability as of the measurement date. The three levels of inputs that may be used to measure fair value are defined as follows: | |||||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. | |||||
Level 2 inputs for similar assets and liabilities in active markets other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | |||||
Level 3 inputs that are significant to the fair value measurement and unobservable (i.e. supported by little or no market activity), which require the reporting entity to develop its own valuation techniques and assumptions. | |||||
The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | |||||
The carrying amounts of certain financial instruments, which include cash and cash equivalents, trade accounts receivable, and trade accounts payable, approximate their fair values due to their short maturities. The carrying amounts of borrowings approximate their fair values as the applicable interest rate is based on market interest rates. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item. | |||||
Derivatives | |||||
Derivatives are recognized on the consolidated balance sheets as other current assets or accrued expenses at fair value, based on the free-standing derivative instrument. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation and can either be designated as (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value” hedge), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge) or (3) held for trading or not designated for hedge accounting (“free-standing derivative instrument”). | |||||
Concentration of credit risk | |||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, derivatives and accounts receivable. | |||||
Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate its credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. | |||||
The Company performs ongoing credit evaluations for credit worthiness of its customers and usually does not require collateral from its customers. Management has implemented a program to closely monitor near term cash collection and credit exposures to mitigate any material losses. | |||||
Revenue recognition | |||||
The Company derives total revenues primarily from the assembly of products under supply agreements with its customers and the fabrication of customized optics and glass. Revenues represent the invoiced value of products, net of trade discounts and allowances, and exclude goods and services tax. The Company recognizes revenues when realized or realizable and earned. The Company considers revenues realized or realizable and earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery does not occur until products have been shipped or services have been provided to the customer, risk of loss has transferred to the customer and customer acceptance has been obtained, customer acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. In situations where a formal acceptance is required but the acceptance only relates to whether the product meets its published specifications, revenues are generally recognized upon shipment provided all other revenue recognition criteria are met. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. The Company reduces revenues for rebates and other similar allowances. Revenues are recognized only if these estimates can be reasonably and reliably determined. The Company bases its estimates on historical results taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for each major category of revenues. | |||||
Services | |||||
The Company provides services for its customers that range from process design to product manufacturing. The Company recognizes service revenues when the services have been performed. The related costs are expensed as incurred. | |||||
Sales of goods | |||||
Revenues from sales of goods are generally recognized when the product is shipped to the customer and when there are no unfulfilled obligations that affect the customer’s final acceptance of the arrangement. Any cost of warranties and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenues are recognized. | |||||
Warranty provision | |||||
Provisions for estimated expenses relating to product warranties are made at the time the products are sold using historical experience. Generally, this warranty is limited to workmanship and the Company’s liability is capped at the price of the product. The provisions will be adjusted when experience indicates an expected settlement will differ from initial estimates. | |||||
Warranty cost allowances of $0.02 million, $0.02 million, and $0.1 million were recognized in the consolidated statements of operations for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. | |||||
Shipping and handling costs | |||||
The Company records costs related to shipping and handling in cost of revenues for all periods presented. | |||||
Share-based compensation | |||||
Share-based compensation is recognized in the consolidated financial statements based on grant-date fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The Company estimates the fair value of share-based awards utilizing the Black-Scholes-Merton (“BSM”) option-pricing model net of estimated forfeitures. | |||||
Employee contribution plan | |||||
The Company operates a defined contribution plan, known as a provident fund, in Fabrinet Thailand. The assets of this plan are in a separate trustee-administered fund. The provident fund is funded by matching payments from employees and by the subsidiary on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (the “401(k) Plan”), a Defined Contribution Plan under ERISA, at its Fabrinet USA, Inc. and FBN New Jersey Manufacturing, Inc. subsidiaries, which provides retirement benefits for its eligible employees through tax deferred salary deductions. | |||||
Severance liabilities | |||||
Under labor protection laws applicable in Thailand and under the Fabrinet Thailand employment policy, all employees of Fabrinet Thailand with more than 120 days of service are entitled to severance pay on forced termination or retrenchment or in the event that the employee reaches the retirement age of 55. The entitlement to severance pay is determined according to an employee’s individual employment tenure with the Company and is subject to a maximum benefit of 10 months of salary unless otherwise agreed upon in an employee’s employment contract. The Company accounts for this severance liability on an actuarial basis using the Projected Unit Credit Method, using the long-term Thai government bond yield as a discount rate. There are no separate plan assets held in respect of this liability. | |||||
Annual leave | |||||
Employee entitlements to annual leave are recognized when they accrue to the employee. On termination of employment, accrued employee entitlement to annual leave is paid in cash. | |||||
Income taxes | |||||
The Company uses the asset and liability method of accounting for income taxes, whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||
Fabrinet’s subsidiaries are subject to income tax audits by the respective tax authorities in all of the jurisdictions in which they operate. The determination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations. The Company recognizes liabilities based on its estimate of whether, and the extent to which, additional tax liabilities are probable. If the Company ultimately determines that the payment of such a liability is not probable, then it reverses the liability and recognizes a tax benefit during the period in which the determination is made that the liability is no longer probable. The recognition and measurement of current taxes payable or refundable and deferred tax assets and liabilities requires that the Company makes certain estimates and judgments. Changes to these estimates or a change in judgment may have a material impact on the Company’s tax provision in a future period. | |||||
The accounting standard clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. | |||||
The Company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. The accounting interpretation also provides guidance on measurement methodology, derecognition thresholds, financial statement classification and disclosures, recognition of interest and penalties, and accounting for the cumulative-effect adjustment at the date of adoption. | |||||
New Accounting Pronouncements—not yet adopted by the Company | |||||
In August 2014, The Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) no. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments require management to evaluate an entity’s ability to continue as a going concern; when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations that become due within one year after the date that the financial statements are issued (or available to be issued). This applies to all entities and effective for fiscal beginning after December 15, 2016 and for annual periods and interim periods thereafter. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
In June 2014, the FASB issued ASU No. 2014-12, “Compensation—Stock Compensation (Topic 718), Accounting for Share-Based Payments when the terms of an award provide that a performance target could be achieved after the requisite service period”. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The Company is currently evaluating the impact of adoption on this new guidance on its consolidated financial statements. | |||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606), issued as a new Topic, Accounting Standards Codification”. The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with earlier adoption not being permitted. This new guidance can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently assessing impact of adoption of this new guidance on its consolidated financial statements. | |||||
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This ASU provides guidance for netting of unrecognized tax benefits (UTBs) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under this new guidance, UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
In April 2013, the FASB issued ASU No. 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting”. The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. The amendments require financial statements prepared using the liquidation basis of accounting to present relevant information about an entity’s expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. This guidance is effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013 and interim reporting periods therein. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parents’ Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”. This ASU permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, or, if a controlling financial interest is no longer held. The guidance is effective for fiscal years beginning after December 15, 2013, with early adoption being permitted. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
In February 2013, the FASB issued ASU No. 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation is Fixed at the Reporting Date”. The guidance in this update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
Recently Adopted Accounting Pronouncements | |||||
In January 2013, the FASB issued ASU No. 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosure about Offsetting Assets and Liabilities”. The amendments clarify that the scope of Update 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. This guidance is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. The Company did not have an effect on its consolidated financial statements from the adoption. | |||||
In July 2012, the FASB issued ASU No. 2012-02, “Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment”. Under the amendments, an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. This guidance is effective for fiscal years beginning after September 15, 2012. Early adoption is permitted. The Company did not have an effect on its consolidated financial statements from the adoption. | |||||
In December 2011, the FASB issued the Accounting Standards Update No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities”. The amendments in this Update will enhance disclosures required by U.S. GAAP by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45. Information about offsetting and related arrangements will enable users of an entity’s financial statements to understand the effect of those arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. This guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company did not have an effect on its consolidated financial statements from the adoption. |
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Income taxes | ' | ||||||||||||
3 | Income taxes | ||||||||||||
Cayman Islands | |||||||||||||
Fabrinet is domiciled in the Cayman Islands. Under the current laws of Cayman Islands, Fabrinet is not subject to tax in the Cayman Islands on income or capital gains. Fabrinet has received this undertaking for a 20-year period ending August 24, 2019, and after the expiration date, Fabrinet can make a request for renewal with the office of the Clerk of the Cabinet for another 20 years. | |||||||||||||
Income of the Company exempted from corporate income tax in the Cayman Islands amounted to $73.0 million, $50.3 million and $0 in the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. | |||||||||||||
Thailand | |||||||||||||
Fabrinet Co., Ltd. is where the majority of the Company’s operations and production takes place. The Company is not subject to tax for the period from July 2010 through June 2015 on income generated from the manufacture of products at Pinehurst Building 5, and from July 2012 through June 2020 on income generated from the manufacture of products at Pinehurst Building 6. Such preferential tax treatment is contingent on, among other things, the export of the Company’s customers’ products out of Thailand and the Company’s agreement not to move Fabrinet Thailand’s manufacturing facilities out of its current province in Thailand for at least 15 years. In addition, in December 2011, the Thailand Revenue Department announced a reduction in corporate income tax rates for tax periods beginning on or after January 1, 2012. As a result of the announcement, enacted corporate income tax rates for Fabrinet Thailand was reduced from 30% in fiscal year 2012 to 23% in fiscal year 2013 and to 20% in fiscal year 2014 and fiscal year 2015. | |||||||||||||
People’s Republic of China | |||||||||||||
CASIX has been granted a tax privilege to reduce its corporate income tax rate from 25% to 15%. This privilege is retroactive to January 1, 2011 and valid until December 31, 2013, subject to renewal at the end of each three-year period. The Company is in the process of preparing an application to renew this tax privilege and plan to submit it in fiscal year 2015. As a result, the corporate income tax rate for Casix has changed to 25% since January 2014. | |||||||||||||
The Company’s income tax expense consisted of the following: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, 2014 | June 28, 2013 | June 29, 2012 | ||||||||||
Current | $ | 2,304 | $ | 239 | $ | 282 | |||||||
Deferred | (865 | ) | 2,701 | (2,250 | ) | ||||||||
Total income tax expense (benefit) | $ | 1,439 | $ | 2,940 | $ | (1,968 | ) | ||||||
The reconciliation between the Company’s taxes that would arise by applying the statutory tax rate of the country of the Company’s principal operations, Thailand, to the Company’s effective tax charge is shown below: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
Income (loss) before income taxes | $ | 93,170 | $ | 71,909 | $ | (58,435 | ) | ||||||
Tax expense (benefit) calculated at a corporate income tax rate of 20% (2013: 23% and 2012: 30%) | 18,634 | 16,539 | (17,531 | ) | |||||||||
Effect of income taxes from locations with tax rates different from Thailand | (2 | ) | (457 | ) | (551 | ) | |||||||
(Income) loss not subject to tax (1) | (15,648 | ) | (12,728 | ) | 15,240 | ||||||||
(Reversal of) income tax on unremitted earnings | (259 | ) | 466 | 552 | |||||||||
Effect of tax rate change | (662 | ) | (303 | ) | 1,263 | ||||||||
Effect of foreign exchange rate adjustment | (380 | ) | (90 | ) | (993 | ) | |||||||
Insurance proceeds from equipment claim due to flooding | — | (516 | ) | — | |||||||||
Reversal of reserve fixed assets damaged from flooding | (251 | ) | — | — | |||||||||
Others | 7 | 29 | 52 | ||||||||||
Corporate income tax expense (benefit) | $ | 1,439 | $ | 2,940 | $ | (1,968 | ) | ||||||
-1 | Income not subject to tax relates to income earned in the Cayman Islands, income subject to an investment promotion privilege for Building 5 and Building 6. Income (loss) not subject to tax per ordinary share on a diluted basis (in dollars) was $0.44, $0.37and $(0.44) for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. | ||||||||||||
As of June 27, 2014, there were no tax losses carried forward due to severe flooding in Thailand during October and November, 2011. | |||||||||||||
The Company’s deferred tax assets and deferred tax liabilities at each balance sheet date are as follows: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, 2014 | June 28, 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Depreciation | $ | 1,777 | $ | 1,684 | |||||||||
Severance liability | 796 | 680 | |||||||||||
Reserve and allowance | 1,597 | 909 | |||||||||||
Allowance for tax loss carried forward | — | 983 | |||||||||||
Non-deductible flood loss expenses | — | 540 | |||||||||||
Others | — | 70 | |||||||||||
Total | $ | 4,170 | $ | 4,866 | |||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, 2014 | June 28, 2013 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred cost of service and expense | $ | (23 | ) | $ | (24 | ) | |||||||
Insurance proceeds from equipment claim due to flooding | — | (540 | ) | ||||||||||
Deferred tax from unremitted earning | (1,838 | ) | (1,941 | ) | |||||||||
Others | (13 | ) | — | ||||||||||
Total | (1,874 | ) | (2,505 | ) | |||||||||
Net | $ | 2,296 | $ | 2,361 | |||||||||
Current deferred income tax assets and liabilities and non-current deferred income tax assets and liabilities are offset when the income taxes relate to the same tax jurisdiction. The following amounts are shown in the consolidated balance sheets: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, 2014 | June 28, 2013 | |||||||||||
Deferred income tax assets—current | $ | 1,561 | $ | 1,397 | |||||||||
Deferred income tax liabilities—current | — | — | |||||||||||
Current deferred income tax—net | 1,561 | 1,397 | |||||||||||
Deferred income tax assets—non current | 1,775 | 2,116 | |||||||||||
Deferred income tax liabilities—non current | (1,040 | ) | (1,152 | ) | |||||||||
Non-current deferred income tax—net | 735 | 964 | |||||||||||
Net deferred income tax assets | $ | 2,296 | $ | 2,361 | |||||||||
Income tax liabilities have not been established for withholding tax and other taxes that would be payable on the unremitted earnings of Fabrinet Thailand. Such amounts of Fabrinet Thailand are permanently reinvested; unremitted earnings for Fabrinet Thailand totaled $37.2 million and $25.4 million as of June 27, 2014 and June 28, 2013, respectively. Unrecognized deferred tax liabilities for such unremitted earnings were $2.6 million and $2.3 million as of June 27, 2014 and June 28, 2013, respectively. | |||||||||||||
Deferred tax liabilities of $1.8 million and $1.9 million have been established for withholding tax on the unremitted earnings of CASIX, which included in non-current deferred tax liability as of June 27, 2014 and June 28, 2013, respectively. | |||||||||||||
Uncertain income tax positions | |||||||||||||
Interest and penalties related to uncertain tax positions are recognized in income tax expense. The Company had approximately $0.04 million and $0.7 million of accrued interest and penalties related to uncertain tax positions on the consolidated balance sheets as of June 27, 2014 and June 28, 2013, respectively. The Company recorded (reversed) interest and penalties of ($0.6 million), ($0.1 million) and $0.2 million for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively, in the consolidated statements of operations. With regard to the Thailand jurisdiction, tax years 2009 through 2013 remain open to examination by the local authorities. | |||||||||||||
The following table indicates the changes to the Company’s uncertain income tax positions for the years ended June 27, 2014, June 28, 2013 and June 29, 2012 included in other non-current liabilities. | |||||||||||||
(amount in thousands) | As of | As of | As of | ||||||||||
June 27, 2014 | June 28, 2013 | June 29, 2012 | |||||||||||
Beginning balance | $ | 1,167 | $ | 1,124 | $ | 1,124 | |||||||
Additions during the year | 510 | 358 | — | ||||||||||
Reductions for tax positions of prior years | (809 | ) | (315 | ) | — | ||||||||
Ending balance | $ | 868 | $ | 1,167 | $ | 1,124 | |||||||
Earnings_loss_per_ordinary_sha
Earnings (loss) per ordinary share | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Earnings (loss) per ordinary share | ' | ||||||||||||
4 | Earnings (loss) per ordinary share | ||||||||||||
Basic earnings (loss) per ordinary share is computed by dividing reported net income (loss) by the weighted average number of ordinary shares outstanding during each period. Diluted earnings (loss) per ordinary share is computed by dividing reported net income (loss) by the weighted average number of ordinary shares and dilutive ordinary equivalent shares outstanding during each period. Dilutive ordinary equivalent shares consist of share options and restricted share units. The earnings per ordinary share was calculated as follows: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands except per share amounts) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income (loss) attributable to shareholders | $ | 91,731 | $ | 68,969 | $ | (56,467 | ) | ||||||
Weighted average number of ordinary shares outstanding | 34,938 | 34,557 | 34,382 | ||||||||||
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units | 651 | 289 | — | (1) | |||||||||
Weighted average number of ordinary shares for diluted earnings (loss) per ordinary share | 35,589 | 34,846 | 34,382 | ||||||||||
Basic earnings (loss) per ordinary share | $ | 2.63 | $ | 2 | $ | (1.64 | ) | ||||||
Diluted earnings (loss) per ordinary share | $ | 2.58 | $ | 1.98 | $ | (1.64 | ) | ||||||
Outstanding share options excluded in the computation of diluted earnings per ordinary share (in shares) (2) | 44,369 | 1,129,933 | — | ||||||||||
-1 | 200,055 ordinary shares were excluded from the determination of the loss per ordinary share for the year ended June 29, 2012 as they were considered antidilutive. | ||||||||||||
-2 | These share options were not included in the computation of diluted earnings per ordinary share for fiscal year 2014 and fiscal year 2013, respectively, because the exercise price of the options was greater than the average market price of the underlying shares. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||
Fair Value | ' | ||||||||||||||||
5 | Fair Value | ||||||||||||||||
The following table provides details of the financial instruments measured at fair value on a recurring basis: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(amount in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of June 27, 2014 | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | — | $ | 19,194 | $ | — | $ | 19,194 | |||||||||
Derivative assets | — | 135 | — | 135 | |||||||||||||
Total | $ | — | $ | 19,329 | $ | — | $ | 19,329 | |||||||||
Liabilities | |||||||||||||||||
Derivative liabilities | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Total | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(amount in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of June 28, 2013 | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | — | $ | 88,011 | $ | — | $ | 88,011 | |||||||||
Total | $ | — | $ | 88,011 | $ | — | $ | 88,011 | |||||||||
Liabilities | |||||||||||||||||
Derivative liabilities | $ | — | $ | 766 | $ | — | $ | 766 | |||||||||
Total | $ | — | $ | 766 | $ | — | $ | 766 | |||||||||
The Company uses foreign currency exchange contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities. As a result of foreign currency fluctuations, the U.S. dollar equivalent values of its foreign currency-denominated assets and liabilities change. The Company has not designated such foreign currency exchange contracts as hedging instruments under the accounting standard for derivatives and hedging. The forward exchange contracts and option contracts outstanding as of June 27, 2014 and June 28, 2013 had a maturity in one to six months duration. The Company minimizes the credit risk in derivative instruments by limiting its exposure to any single counterparty and by entering into derivative instruments only with counterparties that meet the Company’s minimum credit quality standard. | |||||||||||||||||
The derivative assets and liabilities are classified in other current assets and accrued expenses, respectively, on the consolidated balance sheets. The change in the fair value of the derivatives is recorded in foreign exchange (loss) gain on the consolidated statement of operations. |
Cash_and_cash_equivalents
Cash and cash equivalents | 12 Months Ended | ||||||||
Jun. 27, 2014 | |||||||||
Cash and cash equivalents | ' | ||||||||
6 | Cash and cash equivalents | ||||||||
The following table provides details for the cash and cash equivalents: | |||||||||
(amount in thousands) | As of | As of | |||||||
June 27, | June 28, | ||||||||
2014 | 2013 | ||||||||
Cash at banks and on hand | $ | 214,283 | $ | 61,705 | |||||
Cash equivalents | 19,194 | 88,011 | |||||||
Total cash and cash equivalents | $ | 233,477 | $ | 149,716 | |||||
The cash equivalents includes short-term bank deposits and investment in money market funds. The weighted average effective interest rate on short term bank deposits was 1.01% and 0.87% per annum for the years ended June 27, 2014 and June 28, 2013, respectively. | |||||||||
As of June 27, 2014, 70.9% of our cash and cash equivalents were held by Parent Company. |
Allowance_for_doubtful_account
Allowance for doubtful accounts | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Allowance for doubtful accounts | ' | ||||||||||||
7 | Allowance for doubtful accounts | ||||||||||||
The activities and balances for allowance for doubtful accounts were as follows: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of period | $ | 109 | $ | 203 | $ | 79 | |||||||
(Credited to Income)/Charged to Expense | (72 | ) | (94 | ) | 124 | ||||||||
Balance, end of period | $ | 37 | $ | 109 | $ | 203 | |||||||
Inventory
Inventory | 12 Months Ended | ||||||||
Jun. 27, 2014 | |||||||||
Inventory | ' | ||||||||
8 | Inventory | ||||||||
(amount in thousands) | As of | As of | |||||||
June 27, | June 28, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 40,885 | $ | 34,572 | |||||
Work in progress | 56,376 | 43,806 | |||||||
Finished goods | 22,970 | 7,342 | |||||||
Goods in transit | 6,899 | 5,359 | |||||||
127,130 | 91,079 | ||||||||
Less: Inventory obsolescence | (2,560 | ) | (2,117 | ) | |||||
Inventory, net | $ | 124,570 | $ | 88,962 | |||||
Property_plant_and_equipment_n
Property, plant and equipment, net | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||||||||||||||||
Property, plant and equipment, net | ' | ||||||||||||||||||||||||||||||||
9 | Property, plant and equipment, net | ||||||||||||||||||||||||||||||||
The components of property, plant and equipment, net were as follows: | |||||||||||||||||||||||||||||||||
(amount in thousands) | Land | Building and | Manufacturing | Office | Motor | Computers | Construction | Total | |||||||||||||||||||||||||
Building | Equipment | Equipment | Vehicles | and | |||||||||||||||||||||||||||||
Improvement | Machinery | ||||||||||||||||||||||||||||||||
Under | |||||||||||||||||||||||||||||||||
Installation | |||||||||||||||||||||||||||||||||
As of June 27, 2014 | |||||||||||||||||||||||||||||||||
Cost | $ | 14,353 | $ | 73,353 | $ | 60,354 | $ | 5,376 | $ | 615 | $ | 12,044 | $ | 1,369 | $ | 167,464 | |||||||||||||||||
Less: Accumulated depreciation | — | (17,580 | ) | (39,100 | ) | (3,266 | ) | (608 | ) | (9,666 | ) | — | (70,220 | ) | |||||||||||||||||||
Net book value | $ | 14,353 | $ | 55,773 | $ | 21,254 | $ | 2,110 | $ | 7 | $ | 2,378 | $ | 1,369 | $ | 97,244 | |||||||||||||||||
As of June 28, 2013 | |||||||||||||||||||||||||||||||||
Cost | $ | 14,353 | $ | 74,450 | $ | 59,392 | $ | 5,666 | $ | 638 | $ | 12,070 | $ | 3,864 | $ | 170,433 | |||||||||||||||||
Less: Accumulated depreciation | — | (15,090 | ) | (42,344 | ) | (3,342 | ) | (628 | ) | (9,307 | ) | — | (70,711 | ) | |||||||||||||||||||
Less: Impairment reserve | — | (1,076 | ) | (1,091 | ) | (44 | ) | — | (301 | ) | (4 | ) | (2,516 | ) | |||||||||||||||||||
Net book value | $ | 14,353 | $ | 58,284 | $ | 15,957 | $ | 2,280 | $ | 10 | $ | 2,462 | $ | 3,860 | $ | 97,206 | |||||||||||||||||
Depreciation expense amounted to $10.6 million, $10.0 million and $9.3 million for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively and have been allocated between cost of revenues and selling, general and administrative expenses in the consolidated statements of operations. During fiscal year 2014, we wrote-off all assets damaged from flood and reversed all asset impairment reserve due to we fully settled with insurance companies for our damaged assets claim. | |||||||||||||||||||||||||||||||||
The cost of fully depreciated property, plant and equipment written-off during the years ended June 27, 2014, June 28, 2013 and June 29, 2012 amounted to $2.6 million, $0.3 million and $4.2 million, respectively. | |||||||||||||||||||||||||||||||||
There was no interest expense capitalized in construction in progress during the years ended June 27, 2014 and June 28, 2013, respectively. Interest expense relating to a long-term loan from bank for the development of Pinehurst Building 6, of $0.5 million was capitalized in construction in progress during the year ended June 29, 2012. |
Intangibles
Intangibles | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Intangibles | ' | ||||||||||||
10 | Intangibles | ||||||||||||
The following tables present details of the Company’s intangibles: | |||||||||||||
(amount in thousands) | Gross Carrying | Accumulated | Net | ||||||||||
Amount | Amortization | ||||||||||||
As of June 27, 2014 | |||||||||||||
Software | $ | 3,458 | $ | (3,386 | ) | $ | 72 | ||||||
Total intangibles | $ | 3,458 | $ | (3,386 | ) | $ | 72 | ||||||
(amount in thousands) | Gross Carrying | Accumulated | Net | ||||||||||
Amount | Amortization | ||||||||||||
As of June 28, 2013 | |||||||||||||
Software | $ | 3,458 | $ | (3,294 | ) | $ | 164 | ||||||
Total intangibles | $ | 3,458 | $ | (3,294 | ) | $ | 164 | ||||||
The Company recorded amortization expense relating to intangibles of $0.1 million, $0.2 million and $0.4 million for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. | |||||||||||||
Based on the carrying amount of intangibles as of June 27, 2014, and assuming no future impairment of the underlying assets, the estimated future amortization at the end of each fiscal year in June is as follows: | |||||||||||||
(amount in thousand) | |||||||||||||
2015 | $ | 65 | |||||||||||
2016 | 5 | ||||||||||||
2017 | 1 | ||||||||||||
2018 | 1 | ||||||||||||
Total | $ | 72 | |||||||||||
Borrowings
Borrowings | 12 Months Ended | ||||||||||||||
Jun. 27, 2014 | |||||||||||||||
Borrowings | ' | ||||||||||||||
11 | Borrowings | ||||||||||||||
Bank borrowings and long-term debt was comprised of the following: | |||||||||||||||
(amount in | |||||||||||||||
thousands) | |||||||||||||||
Bank | Rate (1) | Conditions | Term | As of | As of | ||||||||||
borrowing | June 27, | June 28, | |||||||||||||
2014 | 2013 | ||||||||||||||
No. 1 | LIBOR + 2.8% | Repayable in quarterly installments within 6 years | June 2012 – March | $ | 16,500 | $ | 22,500 | ||||||||
per annum | 2017 | ||||||||||||||
No. 2 (2) | SIBOR + 1.5% | Repayable in quarterly installments within 8 years | May 2009 –February | — | 6,411 | ||||||||||
per annum | 2015 | ||||||||||||||
Total | 16,500 | 28,911 | |||||||||||||
Less: Current portion | (6,000 | ) | (9,668 | ) | |||||||||||
Non-current portion | $ | 10,500 | $ | 19,243 | |||||||||||
-1 | LIBOR is London Interbank Offered Rate and SIBOR is Singapore Interbank Offered Rate | ||||||||||||||
-2 | On April 28, 2014, the Company extinguished the long-term loan by making a payment of $3.7 million which included principal, interest expense and early repayment fee. Unamortized costs of this debt were recorded to consolidated statement of operation during the year. | ||||||||||||||
On April 25, 2014, a subsidiary entered into an amendment to the bank borrowing No.1 agreement. Under the amendment of the contract, the long-term loan is secured by certain property, plant and equipment. The carrying amount of assets secured and pledged as collateral as of June 27, 2014 and June 28, 2013 was $52.3 and $21.8 million, respectively. This subsidiary is also required to comply with the maximum ratios of debt to equity and minimum levels of debt service coverage ratios and Fabrinet must maintain effective shareholding ratio. The carrying amounts of bank borrowings approximate their fair value. | |||||||||||||||
As of June 27, 2014 and June 28, 2013, the Company was in compliance with its long-term bank borrowing agreements. In addition to financial ratios, certain of the Company’s packing credits and long-term loans include customary events of default. | |||||||||||||||
The movement of long-term loans for the years ended June 27, 2014 and June 28, 2013 were as follow; | |||||||||||||||
(amount in thousands) | June 27, | June 28, | |||||||||||||
2014 | 2013 | ||||||||||||||
Opening net book amount | $ | 28,911 | $ | 38,579 | |||||||||||
Repayment during the year | (12,411 | ) | (9,668 | ) | |||||||||||
Closing net book amount | $ | 16,500 | $ | 28,911 | |||||||||||
As of June 27, 2014, future maturities of long-term debt were as follows at the end of each fiscal year below: | |||||||||||||||
(amount in thousands) | |||||||||||||||
2015 | $ | 6,000 | |||||||||||||
2016 | 6,000 | ||||||||||||||
2017 | 4,500 | ||||||||||||||
Total | $ | 16,500 | |||||||||||||
Credit facilities: | |||||||||||||||
Fabrinet had entered into a syndicated senior credit facility agreement (the “Facility Agreement”) with a consortium of banks on May 22, 2014. The Facility Agreement, led by Bank of America, provides for a $200.0 million credit line, comprised of a $150.0 million revolving loan facility and a $50.0 million delayed draw term loan facility. The revolving loan facility contains an accordion feature permitting Fabrinet to request an increase in the facility up to $100.0 million subject to customary terms and conditions and provided that no default or event of default exists at the time of request. The revolving loan facility terminates and all amounts outstanding are due and payable in full on May 22, 2019. The principal amount of any drawn term loans must be repaid according to the scheduled quarterly amortization payments, with final payment of all amounts outstanding, plus accrued interest, being due May 22, 2019. As of June 27, 2014, no amounts were outstanding under the Facility Agreement. | |||||||||||||||
Loans under the Facility Agreement bear interest, at Fabrinet’s option, at a rate per annum equal to a LIBOR rate plus a spread of 1.75% to 2.50%, or a base rate, determined in accordance with the Facility Agreement, plus a spread of 0.75% to 1.50%, in each case with such spread determined based on Fabrinet’s consolidated total leverage ratio for the preceding four fiscal quarter period. Interest is due and payable quarterly in arrears for loans bearing interest at the base rate and at the end of an interest period (or at each three month interval in the case of loans with interest periods greater than three months) in the case of loans bearing interest at the LIBOR rate. The applicable spreads and commitment fees will increase in the event that Fabrinet’s Thailand subsidiary is unable to guarantee the obligations under the Facility Agreement within 180 days after the closing date. | |||||||||||||||
Fabrinet’s obligations under the Facility Agreement are guaranteed by certain of its existing and future direct material subsidiaries. In addition, the Facility Agreement is secured by Fabrinet’s present and future accounts receivable, deposit accounts and cash, and a pledge of the capital stock of certain of Fabrinet’s direct subsidiaries. Fabrinet must maintain at least $40.0 million of cash, cash equivalents and marketable securities at financial institutions located in the United States. Further, Fabrinet is required to maintain any of its deposits accounts or securities accounts with balances in excess of $10.0 million in a jurisdiction where a control agreement, or the equivalent under the local law, can be effected. The Facility Agreement contains customary affirmative and negative covenants. Negative covenants include, among other things, limitations on liens, indebtedness, investments, mergers, sales of assets, changes in the nature of the business, dividends and distributions, affiliate transactions and capital expenditures. The Facility Agreement contains financial covenants requiring Fabrinet to maintain: (i) a minimum tangible net worth of not less than $200.0 million plus 50% of quarterly net income, exclusive of quarterly losses; (ii) a minimum debt service coverage ratio of not less than 1.50:1.00; (iii) a maximum senior leverage ratio of not more than 2.50:1.00; and (iv) a minimum quick ratio of not less than 1.10:1.00. Each of these financial covenants is calculated on a consolidated basis for the consecutive four fiscal quarter period then ended. | |||||||||||||||
The Facility Agreement also contains customary events of default including, among other things, payment defaults, breaches of covenants or representations and warranties, cross-defaults with certain other indebtedness, bankruptcy and insolvency events and change in control of Fabrinet, subject to grace periods in certain instances. Upon an event of default, the lenders may terminate their commitments, declare all or a portion of the outstanding obligations payable by Fabrinet to be immediately due and payable and exercise other rights and remedies provided for under the Facility Agreement. The undrawn credit facility of $200.0 million is available on July 15, 2014 after the effective closing date. | |||||||||||||||
Fabrinet intends to use the proceeds of the credit line to finance a future manufacturing building in Thailand, and for general corporate purposes including mergers and acquisitions of complementary manufacturing businesses or technology, although Fabrinet has no current commitments with respect to any such acquisitions. | |||||||||||||||
Undrawn available credit facilities as of June 27, 2014 and June 28, 2013 totaled: | |||||||||||||||
As of | As of | ||||||||||||||
June 27, | June 28, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Bank borrowings: | |||||||||||||||
Short-term loans | $ | 1,539 | $ | 5,461 |
Severance_liabilities
Severance liabilities | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Severance liabilities | ' | ||||||||||||
12 | Severance liabilities | ||||||||||||
The following table provides the information of the severance liabilities: | |||||||||||||
(amount in thousands) | As of | As of | |||||||||||
June 27, | June 28, | ||||||||||||
2014 | 2013 | ||||||||||||
Balance, beginning of the fiscal year | $ | 4,382 | $ | 4,420 | |||||||||
Charged to consolidated statements of operations | 71 | (38 | ) | ||||||||||
Balance, end of the fiscal year | $ | 4,453 | $ | 4,382 | |||||||||
The amount recognized in the consolidated balance sheets under non-current liabilities was determined as follows: | |||||||||||||
(amount in thousands) | As of | As of | |||||||||||
June 27, | June 28, | ||||||||||||
2014 | 2013 | ||||||||||||
Present value of defined benefit obligation | $ | 4,453 | $ | 4,382 | |||||||||
Total | $ | 4,453 | $ | 4,382 | |||||||||
The amount recognized in the consolidated statements of operations was as follows: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
Current service cost | $ | 368 | $ | 722 | $ | 474 | |||||||
Interest cost | 207 | 211 | 198 | ||||||||||
Benefit paid | (223 | ) | (4 | ) | (81 | ) | |||||||
Actuarial gain on obligation | (281 | ) | (967 | ) | (649 | ) | |||||||
Total | $ | 71 | $ | (38 | ) | $ | (58 | ) | |||||
The principal actuarial assumptions used were as follows: | |||||||||||||
Years Ended | |||||||||||||
June 27, | June 28, | June 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 4.9 | % | 5.1 | % | 4.8 | % | |||||||
Future salary increases | 4.2 | % | 4.4 | % | 4.4 | % |
Sharebased_compensation
Share-based compensation | 12 Months Ended | ||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||
Share-based compensation | ' | ||||||||||||||||
13 | Share-based compensation | ||||||||||||||||
Share-based compensation | |||||||||||||||||
In determining the grant date fair value of equity awards, the Company is required to make estimates of the fair value of Fabrinet’s ordinary shares, expected dividends to be issued, expected volatility of Fabrinet’s ordinary shares, expected forfeitures of the awards, risk free interest rates for the expected term of the awards, expected terms of the awards, and the vesting period of the respective awards. Forfeitures are estimated at the time of grant and revised if necessary in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||||||
The effect of recording share-based compensation expense for the years ended June 27, 2014, June 28, 2013 and June 29, 2012 was as follows: | |||||||||||||||||
Years Ended | |||||||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Share-based compensation expense by type of award: | |||||||||||||||||
Share options | $ | 802 | $ | 1,864 | $ | 3,443 | |||||||||||
Restricted share units | 4,745 | 3,236 | 1,206 | ||||||||||||||
Total share-based compensation expense | 5,547 | 5,100 | 4,649 | ||||||||||||||
Tax effect on share-based compensation expense | — | — | — | ||||||||||||||
Net effect on share-based compensation expense | $ | 5,547 | $ | 5,100 | $ | 4,649 | |||||||||||
Share-based compensation expense was recorded in the consolidated statements of operations as follows: | |||||||||||||||||
Years Ended | |||||||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenue | $ | 1,182 | $ | 1,105 | $ | 1,546 | |||||||||||
Selling, general and administrative expense | 4,365 | 3,995 | 3,103 | ||||||||||||||
Total share-based compensation expense | $ | 5,547 | $ | 5,100 | $ | 4,649 | |||||||||||
The Company did not capitalize any share-based compensation expense as part of any asset costs during the years ended June 27, 2014, June 28, 2013 and June 29, 2012. | |||||||||||||||||
Share-based award activity | |||||||||||||||||
Share options have been granted to directors and employees. As of June 27, 2014, there were 13,815 share options outstanding under the Amended and Restated 1999 Share Option Plan (the “1999 Plan”). Additional option grants may not be made under the 1999 Plan. | |||||||||||||||||
In March 2010, Fabrinet’s shareholders adopted the 2010 Performance Incentive Plan (the “2010 Plan”). On December 20, 2010 and December 20, 2012, the 2010 Plan was amended to increase the number of shares reserved for issuance. As of June 27, 2014, there were an aggregate of 852,075 share options outstanding, 762,295 restricted share units outstanding and 3,528,778 ordinary shares available for future grant under the 2010 Plan. The 1999 Plan and 2010 Plan are collectively referred to as the “Share Option Plans”. | |||||||||||||||||
Share options | |||||||||||||||||
Fabrinet’s board of directors has the authority to determine the type of option and the number of shares subject to an option. Options generally vest and become exercisable over four years and expire, if not exercised, within 7 years of the grant date. In the case of a grantee’s first grant, 25 percent of the underlying shares subject to an option vest 12 months after the vesting commencement date and 1/48 of the underlying shares vest monthly over each of the subsequent 36 months. In the case of any additional grants to a grantee, 1/48 of the underlying shares subject to an option vest monthly over four years, commencing one month after the vesting commencement date. | |||||||||||||||||
The following table summarizes share options activity: | |||||||||||||||||
Number of | Number of | Weighted- | Weighted- | ||||||||||||||
Shares | Exercisable | Average | Average Grant | ||||||||||||||
Options | Exercise Price | Date Fair Value | |||||||||||||||
Balance as of June 24, 2011 | 1,349,126 | $ | 13.28 | ||||||||||||||
Granted | 590,537 | $ | 14.82 | $ | 14.82 | ||||||||||||
Exercised | (237,350 | ) | $ | 4.22 | |||||||||||||
Forfeited | (218,296 | ) | $ | 16.18 | |||||||||||||
Expired | (13,727 | ) | $ | 18.38 | |||||||||||||
Balance as of June 29, 2012 | 1,470,290 | 532,646 | $ | 14.88 | |||||||||||||
Granted | — | — | — | ||||||||||||||
Exercised | (94,188 | ) | $ | 5.96 | |||||||||||||
Forfeited | (44,443 | ) | $ | 17.33 | |||||||||||||
Expired | (54,348 | ) | $ | 16.97 | |||||||||||||
Balance as of June 28, 2013 | 1,277,311 | 750,949 | $ | 15.37 | |||||||||||||
Granted | — | — | — | ||||||||||||||
Exercised | (351,435 | ) | $ | 13 | |||||||||||||
Forfeited | (26,276 | ) | $ | 15.54 | |||||||||||||
Expired | (33,710 | ) | $ | 16.93 | |||||||||||||
Balance as of June 27, 2014 | 865,890 | 666,305 | $ | 16.27 | |||||||||||||
The fair value of each grant of stock options was determined by the Company using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment and management estimate to determine. | |||||||||||||||||
The total fair value of shares vested during the years ended June 27, 2014, June 28, 2013, and June 29, 2012 was $2.0 million, $2.4 million, and $2.4 million, respectively. The total intrinsic value of options exercised during the years ended June 27, 2014, June 28, 2013, and June 29, 2012 was $2.2 million, $0.8 million, and $3.3 million, respectively. In conjunction with these exercises, there was no tax benefit realized by the Company due to the fact that it is exempted from income tax. The amount of cash received from the exercise of share options was $4.6 million during the year ended June 27, 2014. | |||||||||||||||||
Valuation Method—The Company estimated the fair value of Fabrinet’s ordinary shares to be used in the Black-Scholes-Merton (“BSM”) option-pricing formula by taking into consideration a number of assumptions. | |||||||||||||||||
Expected Dividend—The Company used zero as an annualized dividend yield since it did not anticipate paying any cash dividends in the near future. | |||||||||||||||||
Expected Volatility—As the Company did not have a sufficient trading history to use the volatility of Fabrinet’s ordinary shares, management based its expected volatility on a comparable industry index as a reasonable measure of expected volatility. | |||||||||||||||||
Risk-Free Interest Rate—The Company based the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of the option. | |||||||||||||||||
Expected Term—Expected terms used in the BSM option-pricing formula represent the periods that Fabrinet’s share options are expected to be outstanding and are determined based on the Company’s historical experience of similar awards, giving consideration to the contractual terms of the share options, vesting schedules and expectations of future employee behavior. | |||||||||||||||||
Vesting Period—Fabrinet’s share options generally vest and become exercisable over a four-year period, and expire seven years from the date of grant. For an initial grant, 25 percent of the underlying shares subject to an option vest 12 months after the vesting commencement date and 1/48 of the underlying shares vest monthly over each of the subsequent 36 months. In the case of any additional grants to an optionee, 1/48 of the underlying shares subject to an option vest monthly over four years, commencing one month after the vesting commencement date. | |||||||||||||||||
Fair Value—The fair value of Fabrinet’s share options granted to employees for the years ended June 27, 2014, June 28, 2013 and June 29, 2012 was estimated using the following weighted-average assumptions: | |||||||||||||||||
Years Ended | |||||||||||||||||
June 27, | June 28, | June 29, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | — | — | — | ||||||||||||||
Expected volatility | — | — | 61.3 | % | |||||||||||||
Risk-free rate of return (percent) | — | — | 0.9 | % | |||||||||||||
Expected term (in years) | — | — | 4.36 | ||||||||||||||
The following summarizes information for share options outstanding as of June 27, 2014 under the share options plan: | |||||||||||||||||
Number of | Exercise | Weighted Average | Aggregate | ||||||||||||||
Shares | Price Per | Remaining | Intrinsic Value | ||||||||||||||
Underlying | Share | Contractual Life | |||||||||||||||
Options | (years) | ||||||||||||||||
525 | 4.25 | 0.17 | |||||||||||||||
500 | 4.75 | 0.42 | |||||||||||||||
2,100 | 5 | 0.63 | |||||||||||||||
1,400 | 5.25 | 0.86 | |||||||||||||||
9,290 | 5.75 | 2.22 | |||||||||||||||
8,368 | 13.77 | 3.16 | |||||||||||||||
444,878 | 16.83 | 3.3 | |||||||||||||||
30,000 | 15.05 | 3.36 | |||||||||||||||
26,844 | 25.5 | 3.55 | |||||||||||||||
7,400 | 26.16 | 3.61 | |||||||||||||||
10,125 | 23.62 | 3.85 | |||||||||||||||
97,968 | 15.16 | 4.14 | |||||||||||||||
193,521 | 14.12 | 4.37 | |||||||||||||||
25,160 | 19.36 | 4.62 | |||||||||||||||
5,550 | 18.6 | 4.68 | |||||||||||||||
2,261 | 12.83 | 4.87 | |||||||||||||||
Options outstanding | 865,890 | 3.68 | 3,924 | ||||||||||||||
Options exercisable | 666,305 | 3.57 | 2,922 | ||||||||||||||
As of June 27, 2014, there was $0.2 million of unrecognized compensation cost related to share options under the Share Option Plans that is expected to be recognized over a weighted-average period of 1.14 years. | |||||||||||||||||
Restricted share units | |||||||||||||||||
Restricted share units are one type of share-based award that may be granted under the 2010 Plan. Restricted share units granted to non-employee directors generally cliff vest 100% on the first of January, approximately one year from the grant date, provided the director continues to serve through such date. Restricted share units granted to employees generally vest in four equal installments over four years on each anniversary of the vesting commencement date. | |||||||||||||||||
The following table summarizes restricted share unit activity: | |||||||||||||||||
Number of | Weighted- | Weighted- | |||||||||||||||
Shares | Average Grant | Average Grant | |||||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||
Per Share | |||||||||||||||||
Balance as of June 24, 2011 | 25,900 | $ | 21.62 | ||||||||||||||
Granted | 211,266 | $ | 14.37 | $ | 14.37 | ||||||||||||
Issued | (25,900 | ) | $ | 21.62 | |||||||||||||
Forfeited | (42,991 | ) | $ | 14.07 | |||||||||||||
Balance as of June 29, 2012 | 168,275 | $ | 14.44 | ||||||||||||||
Granted | 468,387 | $ | 12.42 | $ | 12.42 | ||||||||||||
Issued | (71,880 | ) | $ | 14.1 | |||||||||||||
Forfeited | (19,114 | ) | $ | 12.78 | |||||||||||||
Balance as of June 28, 2013 | 545,668 | $ | 12.81 | ||||||||||||||
Granted | 479,894 | $ | 15.37 | $ | 15.37 | ||||||||||||
Issued | (184,773 | ) | $ | 12.98 | |||||||||||||
Forfeited | (78,494 | ) | $ | 14.25 | |||||||||||||
Balance as of June 27, 2014 | 762,295 | $ | 14.23 | ||||||||||||||
The total fair value of restricted share units vested during the year ended June 27, 2014, June 28, 2013 and June 29, 2012 was $2.4 million, $1.0 million and $0.6 million, respectively. The aggregate intrinsic value of restricted share units outstanding as of June 27, 2014 was $15.7 million. | |||||||||||||||||
As of June 27, 2014, there was $4.5 million of unrecognized share-based compensation expense related to restricted share units under the 2010 Plan that is expected to be recorded over a weighted-average period of 2.76 years. | |||||||||||||||||
For year ended June 27, 2014 and June 28, 2013, the Company withheld an aggregate of 18,403 shares and 1,930 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date to settle the employees’ minimum statutory obligation for the applicable income and other employment taxes. For fiscal year 2014 and 2013, the Company then remitted cash of $0.3 million and $0.02 million, respectively, to the appropriate taxing authorities, and presented it in a financing activity within the consolidated statements of cash flows. The payment had the effect on shares issued by the Company as it reduced the number of shares that would have been issued on the vesting date and was recorded as a reduction of additional paid-in capital. |
Employee_benefit_plans
Employee benefit plans | 12 Months Ended | |
Jun. 27, 2014 | ||
Employee benefit plans | ' | |
14 | Employee benefit plans | |
Employee contribution plan | ||
The Company operates a defined contribution plan, known as a provident fund, in its Thailand subsidiary. The assets of this plan are in a separate trustee-administered fund. The provident fund is funded by matching payments from employees and by the subsidiary on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company’s contributions to the provident fund amounted to $2.1 million, $2.2 million and $2.3 million in the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. | ||
The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (the “401(k) Plan”), a Defined Contribution Plan under ERISA, at its Fabrinet USA, Inc. and FBN New Jersey Manufacturing, Inc. subsidiaries, which provides retirement benefits for its eligible employees through tax deferred salary deductions. The 401(k) Plan allows employees to contribute up to 80% of their annual compensation, subject to annual contributions limits established by the Internal Revenue Service. The Company provides for a 100% match of employees’ contributions to the 401(k) Plan up to the first 6% of annual compensation. All matching contributions are made in cash and vest immediately. The Company’s matching contributions to the 401(k) Plan were $0.2 million, $0.2 million and $0.2 million in the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. | ||
Executive incentive plan and employee performance bonuses | ||
For the year ended June 27, 2014, the Company maintained an executive incentive plan with quantitative objective, based on an achieving certain revenue and gross margin percentage target as well as qualitative objective, based on achieving individual performance goals for the fiscal year. For the year ended June 28, 2013, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and earnings per share milestones for the fiscal years. The Company did not maintain an executive incentive plan during the year ended June 29, 2012. During the years ended June 27, 2014, June 28, 2013 and June 29, 2012, discretionary merit-based bonus awards were also available to Fabrinet’s non-executive employees. | ||
Bonus distributions to employees were $5.1 million, $3.7 million and $1.7 million for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. |
Shareholders_equity
Shareholders' equity | 12 Months Ended | |
Jun. 27, 2014 | ||
Shareholders' equity | ' | |
15 | Shareholders’ equity | |
Fabrinet’s authorized share capital is 500,000,000 ordinary shares, par value of $0.01 per ordinary share, and 5,000,000 preferred shares, par value of $0.01 per preferred share. | ||
In the year ended June 27, 2014, Fabrinet issued 351,435 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $13.00 per share, and 166,370 ordinary shares upon the vesting of restricted share units, net of shares withheld. | ||
In the year ended June 28, 2013, Fabrinet issued 94,188 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $5.96 per share, and 69,950 ordinary shares upon the vesting of restricted share units, net of shares withheld. | ||
In the year ended June 29, 2012, Fabrinet issued 237,350 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $4.22 per share, and 25,900 ordinary shares upon the vesting of restricted share units. | ||
All such issued shares are fully paid. |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||||
Jun. 27, 2014 | |||||
Commitments and contingencies | ' | ||||
16 | Commitments and contingencies | ||||
Bank guarantees | |||||
As of June 27, 2014 and June 28, 2013, there were outstanding bank guarantees given by banks on behalf of Fabrinet Thailand for electricity usage and other normal business amounting to $0.3 million and $0.3 million, respectively. | |||||
Operating lease commitments | |||||
The Company leases a portion of its capital equipment and certain land and buildings for its facilities in China and New Jersey under operating lease arrangements that expire in various years through 2020. Rental expense under these operating leases amounted to $0.8 million, $0.8 million and $1.8 million for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. | |||||
As of June 27, 2014, the future minimum lease payments due under non-cancelable leases are as follows at the end of each fiscal year below: | |||||
(amount in thousands) | |||||
2015 | $ | 988 | |||
2016 | 942 | ||||
2017 | 928 | ||||
2018 | 928 | ||||
2019 | 441 | ||||
Thereafter | 279 | ||||
Total minimum operating lease payments | $ | 4,506 | |||
Purchase obligations | |||||
Purchase obligations represent legally-binding commitments to purchase inventory and other commitments made in the normal course of business to meet operational requirements. Although open purchase orders are considered enforceable and legally binding, their terms generally give the Company the option to cancel, reschedule and/or adjust its requirements based on its business needs prior to the delivery of goods or performance of services. Obligations to purchase inventory and other commitments are generally expected to be fulfilled within one year. | |||||
As of June 27, 2014, there were no outstanding capital expenditure commitments. | |||||
Indemnification of directors and officers | |||||
Cayman Islands law does not limit the extent to which a company’s memorandum and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Fabrinet’s amended and restated memorandum and articles of association provide for indemnification of directors and officers for actions, costs, charges, losses, damages and expenses incurred in their capacities as such, except that such indemnification does not extend to any matter in respect of any fraud or dishonesty that may attach to any of them. | |||||
In accordance with Fabrinet’s form of indemnification agreement for its directors and officers, Fabrinet has agreed to indemnify its directors and officers against certain liabilities and expenses incurred by such persons in connection with claims by reason of their being such a director or officer. Fabrinet maintains a director and officer liability insurance policy that may enable it to recover a portion of any future amounts paid under the indemnification agreements. | |||||
Contingent liability | |||||
In the first week of October 2013, the Company authorized a customer to return a number of units of its product manufactured at the Company’s Pinehurst facility, due to functional failure. After investigation, the Company found that the affected products were produced during the first quarter of fiscal year 2014. On March 28, 2014, the Company entered into a settlement agreement with the customer for the losses as a result of the product failure. The settled amount was $0.5 million and recorded in the consolidated statement of operations for the year ended June 27, 2014. |
Business_segments_and_geograph
Business segments and geographic information | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Business segments and geographic information | ' | ||||||||||||
17 | Business segments and geographic information | ||||||||||||
Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is Fabrinet’s chief executive officer. As of June 27, 2014, June 28, 2013 and June 29, 2012, the Company operated and internally managed a single operating segment. Accordingly, the Company does not accumulate discrete information with respect to separate product lines and does not have separate reportable segments. | |||||||||||||
Total revenues are attributed to a particular geographic area based on the bill-to location of the customer. | |||||||||||||
The Company operates primarily in three geographic regions: North America, Asia-Pacific and Europe. The following table presents total revenues by geographic regions: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
North America | $ | 326,647 | $ | 299,510 | $ | 272,659 | |||||||
Asia-Pacific | 230,314 | 218,393 | 189,455 | ||||||||||
Europe | 120,893 | 123,639 | 102,618 | ||||||||||
Total | $ | 677,854 | $ | 641,542 | $ | 564,732 | |||||||
As of June 27, 2014 and June 28, 2013, the Company had approximately $0.3 million and $0.4 million of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific. | |||||||||||||
Significant customers | |||||||||||||
Total revenues, by percentage, from individual customers representing 10% or more of total revenues in the respective periods were as follows: | |||||||||||||
Years Ended | |||||||||||||
June 27, | June 28, | June 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
JDS Uniphase Corporation | 24 | % | 22 | % | 25 | % | |||||||
Oclaro, Inc. (1) | 22 | % | 25 | % | 12 | % | |||||||
Finisar Corporation | * | (2) | * | (2) | 10 | % | |||||||
Accounts receivable from individual customers that were equal to or greater than 10% of accounts receivable as of June 27, 2014, June 28, 2013, and June 29, 2012, respectively, were as follows: | |||||||||||||
Years Ended | |||||||||||||
June 27, | June 28, | June 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
JDS Uniphase Corporation | 23 | % | 17 | % | 17 | % | |||||||
Oclaro, Inc. (1) | 14 | % | 31 | % | 30 | % | |||||||
Valeo | 10 | % | * | (2) | * | (2) | |||||||
EMCORE Corporation | * | (2) | * | (2) | 12 | % | |||||||
-1 | Includes revenue of Opnext, Inc., which was acquired by Oclaro, Inc. in July 2012. | ||||||||||||
-2 | Less than 10% of total revenue / total accounts receivable. |
Financial_instruments
Financial instruments | 12 Months Ended | ||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||
Financial instruments | ' | ||||||||||||||||
18 | Financial instruments | ||||||||||||||||
Objectives and significant terms and conditions | |||||||||||||||||
The principal financial risks faced by the Company are foreign currency risk and interest rate risk. The Company borrows at floating rates of interest to finance its operations. A minority of sales and purchases and a majority of labor and overhead costs are entered into in foreign currencies. In order to manage the risks arising from fluctuations in currency exchange rates, the Company uses derivative financial instruments. Trading for speculative purposes is prohibited under Company policies. | |||||||||||||||||
The Company enters into short-term forward foreign currency contracts and option contracts to help manage currency exposures associated with certain assets and liabilities. The forward exchange contracts and option contracts have generally ranged from one to six months in original maturity, and no forward exchange contract or option contract has an original maturity greater than one year. All foreign currency exchange contracts and option contracts are recognized on the consolidated balance sheets at fair value. As the Company does not apply hedge accounting to these instruments, the derivatives are recorded at fair value through earnings. | |||||||||||||||||
The gains and losses on the Company’s derivative financial instruments generally offset losses and gains on the assets, liabilities and transactions economically hedged, and accordingly, generally do not subject the Company to risk of significant accounting losses. | |||||||||||||||||
Foreign currency risk | |||||||||||||||||
The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Thai baht and the Chinese renminbi (RMB). | |||||||||||||||||
As of June 27, 2014 and June 28, 2013, the Company had outstanding foreign currency assets and liabilities as follows: | |||||||||||||||||
As of June 27, 2014 | As of June 28, 2013 | ||||||||||||||||
(amount in thousands, except percentages) | Currency | $ | Currency | $ | |||||||||||||
Assets | |||||||||||||||||
Thai baht | 1,536,887 | $ | 47,318 | 567,561 | $ | 18,232 | |||||||||||
RMB | 74,813 | 12,156 | 105,680 | 17,104 | |||||||||||||
Total | $ | 59,474 | $ | 35,336 | |||||||||||||
Liabilities | |||||||||||||||||
Thai baht | 735,490 | $ | 22,644 | 585,364 | $ | 18,804 | |||||||||||
RMB | 32,512 | 5,283 | 15,308 | 2,478 | |||||||||||||
Total | $ | 27,927 | $ | 21,282 | |||||||||||||
The Thai baht assets represent cash and cash equivalents, accounts receivable, deposits and other current assets. The Thai baht liabilities represent trade accounts payable, accrued expenses and other payables. The Company manages its exposure to fluctuations in foreign exchange rates by the use of foreign currency contracts and offsetting assets and liabilities denominated in the same currency in accordance with management’s policy. As of June 27, 2014, there was $15.0 million in option contracts outstanding on the Thai baht payables and as of June 28, 2013, there were $23.0 million in selling forward contracts and $5.0 million in option contracts outstanding on the Thai baht payables. | |||||||||||||||||
The RMB assets represent cash and cash equivalents, accounts receivable and other current assets. The RMB liabilities represent trade accounts payable, accrued expenses and other payables. As of June 27, 2014 and June 28, 2013, there were no selling RMB to U.S. dollar forward contracts outstanding. | |||||||||||||||||
As of June 27, 2014 and June 28, 2013, unrealized gain from fair market value of derivatives amounted to $0.1 million and unrealized loss from fair market value of derivatives amounted to $0.8 million, respectively. | |||||||||||||||||
Interest Rate Risk | |||||||||||||||||
The Company’s principal interest bearing assets are time deposits and short-term investments less than three months held with high quality financial institutions. The Company’s principal interest bearing liabilities are bank loans which bear interest at floating rates. |
Income_expense_related_to_floo
Income (expense) related to flooding | 12 Months Ended | |
Jun. 27, 2014 | ||
Income (expense) related to flooding | ' | |
19 | Income (expense) related to flooding | |
The Company suspended production at all of its manufacturing facilities in Thailand from October 17, 2011 through November 14, 2011 due to severe flooding in Thailand. The Company never resumed, and has permanently ceased, production at its Chokchai facility. The Company submitted claims for losses to its insurance companies, all of which have been settled as of fiscal year 2014. During the fiscal year 2014, the Company recognized $45.2 million as income related to flooding towards full and final settlement of the Company’s owned and consigned equipment and inventory claims. This income was offset by the recognition of $0.5 million of other expenses in connection with write-offs of advance payments to a customer due to flood losses. | ||
In fiscal year 2013, the Company received from our insurers an interim payment of $16.2 million against our claim for owned inventory losses and owned equipment losses, a payment of $13.1 million as full and final settlement of our claim for business interruption losses, and a payment of $0.1 million as full and final settlement of our claim for damage to our buildings at Pinehurst. This income was offset by the recognition of $2.3 million of additional expenses in connection with liabilities to third parties due to flood losses. | ||
During fiscal year 2014, the Company made a cash payment of $5.2 million and transferred equipment, with an aggregate value of $2.3 million, to a customer towards full and final settlement for any and all flood-related losses in accordance with the settlement agreement entered into during fiscal year 2013 with such customer. In addition, the Company fulfilled its obligations to a customer’s insurers by making a payment of $2.2 million for full and final settlement of the Company’s liability to such insurer for damages to customer-owned inventory, which occurred during the flooding in accordance with the settlement agreement entered into during fiscal year 2013. The Company also made a cash payment of $0.1 million towards the other flood-related settlements during the year ended June 27, 2014. | ||
During fiscal year 2013, the Company entered into settlement agreements with each of its customers impacted by the flooding regarding the Company’s liability for the customers’ losses as a result of the flooding. In connection with such settlement agreements, during the fiscal year 2013, the Company paid an aggregate of $37.7 million to customers, transferred equipment purchased on behalf of customers to those customers with an aggregate value of $5.9 million and reduced net accounts receivable from customers by aggregate of $5.7 million. As of June 28, 2013, the Company’s liability to two of its impacted customers for any and all flood-related losses had been satisfied in full. | ||
During fiscal year 2013, the Company also entered into a settlement agreement with a customer’s insurers to resolve a subrogation claim related to recovery proceeds paid by such insurer to the customer for damages to customer-owned inventory, which occurred during the flooding. Under the terms of the settlement agreement, the Company agreed to pay $6.5 million to the insurer, to be paid in three installments. As of June 28, 2013, the Company had paid an aggregate of $4.3 million. The third and final payment of approximately $2.2 million was made in July 2013. |
Expenses_related_to_reduction_
Expenses related to reduction in workforce | 12 Months Ended | |
Jun. 27, 2014 | ||
Expenses related to reduction in workforce | ' | |
20 | Expenses related to reduction in workforce | |
As part of the Company’s ongoing efforts to achieve greater efficiencies in all areas of its business, during the year ended June 28, 2013, the Company implemented a reduction in workforce and incurred expenses of approximately $2.1 million, which represented severance and benefits costs incurred for the termination of approximately 180 employees in accordance with contractual obligations and local regulations. | ||
Subsequently on October 10, 2014, the Company implemented a reduction in workforce and incurred expenses of approximately $1.0 million, which represented severance and benefits costs incurred for the termination of approximately 100 employees in accordance with contractual obligations and local regulations. The Company will record this expense in the fiscal year 2015. |
Principal_subsidiaries
Principal subsidiaries | 12 Months Ended | ||||||||
Jun. 27, 2014 | |||||||||
Principal subsidiaries | ' | ||||||||
21 | Principal subsidiaries | ||||||||
Fabrinet’s subsidiaries are: | |||||||||
Name | Business | Country of | Percent | ||||||
Incorporation | interest | ||||||||
Fabrinet Co., Ltd. | Manufacturing and assembly | Thailand | 99.99 | ||||||
Fabrinet USA, Inc. | Marketing and administrative support services | United States of America (California) | 100 | ||||||
FBN New Jersey Manufacturing, Inc. | Manufacturing and assembly | United States of America (Delaware) | 100 | ||||||
Fabrinet China Holdings | Holding company | Mauritius Island | 100 | ||||||
CASIX Inc. | Manufacturing and assembly | People’s Republic of China | 100 | ||||||
(a wholly-owned subsidiary of Fabrinet China Holdings) | |||||||||
Fabrinet Pte., Ltd. | Sales and administrative support services and supply chain sourcing center | Singapore | 100 | ||||||
Fabrinet AB has liquidated on May 2, 2014. |
Revenue_recognition_error_rela
Revenue recognition error related to finished goods awaiting shipment to customers under certain Volume Supply Agreements with customers | 12 Months Ended | |
Jun. 27, 2014 | ||
Revenue recognition error related to finished goods awaiting shipment to customers under certain Volume Supply Agreements with customers | ' | |
22 | Revenue recognition error related to finished goods awaiting shipment to customers under certain Volume Supply Agreements with customers | |
During the preparation of the fiscal year 2014 consolidated financial statements, the Company determined that certain finished goods sales recognized in each annual and quarterly reporting period in the fiscal years ended June 28, 2013 and June 29, 2012 and in each of the first three quarterly reporting periods in the fiscal year ended June 27, 2014 did not qualify for revenue recognition in those periods in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) as the risk of loss had not transferred to the Company’s customers. The Company has evaluated the impact of the errors on both a quantitative and qualitative basis under the guidance of ASC 250—Accounting Changes and Error Corrections and determined that the errors did not have a material impact to the consolidated financial statements for the fiscal years ended June 27, 2014, June 28, 2013 and June 29, 2012, or the interim consolidated financial statements for each of the quarters within those years. Accordingly, the Company has not made any adjustments to those consolidated financial statements. As the Company did not revise the historical financial statements, the cumulative effect of the errors is reflected in the fiscal year 2014 fourth quarter and full year results. | ||
Had the Company made adjustments to record in fiscal year 2014, revenues and cost of revenues that were inappropriately recorded in fiscal year 2013, fiscal year 2014 revenues, cost of revenues and net income would have increased by $11.09 million, $10.00 million and $1.09 million, respectively, and fiscal year 2013 revenue, cost of revenues and net income would have been lower than previously reported. |
UNAUDITED_QUARTERLY_FINANCIAL_
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||||||||||||||||
UNAUDITED QUARTERLY FINANCIAL INFORMATION | ' | ||||||||||||||||||||||||||||||||
UNAUDITED QUARTERLY FINANCIAL INFORMATION | |||||||||||||||||||||||||||||||||
The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters in the fiscal years ended June 27, 2014 and June 28, 2013: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
(in thousands, except per share | Jun 27, | Mar 28, | Dec 27, | Sep 27, | Jun 28, | Mar 29, | Dec 28, | Sep 28, | |||||||||||||||||||||||||
data) | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | 2012 | 2012 | |||||||||||||||||||||||||
Total revenues | $ | 160,084 | $ | 167,657 | $ | 178,562 | $ | 171,551 | $ | 159,934 | $ | 155,557 | $ | 167,426 | $ | 158,625 | |||||||||||||||||
Gross profit | $ | 17,775 | $ | 17,283 | $ | 20,530 | $ | 18,645 | 17,071 | 16,255 | 18,370 | 17,722 | |||||||||||||||||||||
Net income | $ | 10,333 | $ | 47,662 | $ | 14,539 | $ | 19,197 | $ | 15,142 | $ | 21,126 | $ | 16,682 | $ | 16,019 | |||||||||||||||||
Basic net income per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 0.29 | $ | 1.36 | $ | 0.42 | $ | 0.55 | $ | 0.44 | $ | 0.61 | $ | 0.48 | $ | 0.46 | |||||||||||||||||
Weighted-average shares used in basic net income per share calculations | 35,117 | 35,078 | 34,882 | 34,674 | 34,629 | 34,596 | 34,517 | 34,485 | |||||||||||||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 0.29 | $ | 1.33 | $ | 0.41 | $ | 0.55 | $ | 0.43 | $ | 0.61 | $ | 0.48 | $ | 0.46 | |||||||||||||||||
Weighted-average shares used in diluted net income per share calculations | 35,843 | 35,790 | 35,583 | 35,138 | 35,000 | 34,909 | 34,804 | 34,670 | |||||||||||||||||||||||||
As disclosed in Note 22 of the consolidated financial statements, the Company determined that certain finished goods sales recognized in each annual and quarterly reporting period in the fiscal years ended June 27, 2014 and June 28, 2013 did not qualify for revenue recognition in those periods. The Company has evaluated the impact of the errors and determined that the errors did not have a material impact to the consolidated financial statements for the fiscal years ended June 27, 2014 and June 28, 2013, or the interim consolidated financial statements for each of the quarters within those years. Accordingly, the Company has not made any adjustments to those consolidated financial statements. | |||||||||||||||||||||||||||||||||
Had adjustments been made to reflect revenues and cost of revenues in the appropriate quarters in the fiscal year ended June 27, 2014, revenues, cost of revenues, and net income for each of the quarters in the fiscal year ended June 27, 2014 would have increased (decreased) as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
(amount in thousands) | Jun 27, | Mar 28, | Dec 27, | Sep 27, | |||||||||||||||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||||||||||||||||
(Q4 FY14) | (Q3 FY14) | (Q2 FY14) | (Q1 FY14) | ||||||||||||||||||||||||||||||
Revenues | $ | 12,777 | $ | 1,964 | $ | (6,350 | ) | $ | 2,706 | ||||||||||||||||||||||||
Cost of revenues | $ | 11,520 | $ | 1,771 | $ | (5,726 | ) | $ | 2,440 | ||||||||||||||||||||||||
Net income | $ | 1,257 | $ | 193 | $ | (625 | ) | $ | 266 |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 12 Months Ended | ||||
Jun. 27, 2014 | |||||
Principles of consolidation | ' | ||||
Principles of consolidation | |||||
The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. Fiscal year 2014, fiscal year 2013, and fiscal year 2012 ended on June 27, 2014, June 28, 2013 and June 29, 2012, respectively and consisted of 52 weeks, 52 weeks and 53 weeks, respectively. | |||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include Fabrinet and its subsidiaries listed in Note 1 above. All inter-company accounts and transactions have been eliminated. | |||||
Use of estimates | ' | ||||
Use of estimates | |||||
The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and expense during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, income taxes and inventory obsolescence, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to differ from actual results, adjustments will be made in subsequent periods to reflect more current information. | |||||
Foreign currency transactions and translation | ' | ||||
Foreign currency transactions and translation | |||||
The consolidated financial statements are presented in United States Dollars (“$” or “USD”). | |||||
The functional currency of Fabrinet and its subsidiaries is the USD. Transactions in currencies other than the functional currency are translated into the functional currency at the rates of exchange in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the balance sheet dates. Transaction gains and losses are included in other income and expense, net, in the accompanying consolidated statements of operations. | |||||
Cash and cash equivalents | ' | ||||
Cash and cash equivalents | |||||
All highly liquid investments with maturities of three months or less from original dates of purchase are carried at fair market value and considered to be cash equivalents. Cash and cash equivalents consist of cash deposited in checking accounts, time deposits with maturities of less than three months and money market accounts. | |||||
Trade accounts receivable | ' | ||||
Trade accounts receivable | |||||
Accounts receivable are carried at anticipated realizable value. The Company assesses the collectability of its accounts receivable based on specific customer circumstances, current economic trends, historical experience with collection and the age of past due receivables and provides an allowance for doubtful receivables based on a review of all outstanding amounts at the period end. Bad debts are written-off when identified. | |||||
Unanticipated changes in the liquidity or financial position of the Company’s customers may require revision to the allowances for doubtful accounts. | |||||
Inventory | ' | ||||
Inventory | |||||
Inventory is stated at the lower of cost or market value. Cost is estimated using the standard costing method, computed on a first-in, first-out basis, with adjustments for variances to reflect actual costs not in excess of net realizable market value. Market value is the estimated selling price in the ordinary course of business, less the costs of completion and selling expenses. The Company assesses the valuation of inventory on a quarterly basis and writes down the value for estimated excess and obsolete inventory based upon estimates of future demand. | |||||
Leases | ' | ||||
Leases | |||||
Payments made under operating leases are expensed on a straight-line basis over the lease term. | |||||
Property, plant and equipment | ' | ||||
Property, plant and equipment | |||||
Land is stated at historical cost. Other property, plant and equipment, except for construction in process and machinery under installation, are stated at historical cost less accumulated depreciation. Depreciation is calculated on the straight-line method to write-off the cost of each asset to its residual value over its estimated useful life as follows: | |||||
Building and building improvements | 10 - 30 years | ||||
Leasehold improvements | Shorter of useful life or lease term | ||||
Manufacturing equipment | 3 - 5 years | ||||
Office equipment | 3 - 5 years | ||||
Motor vehicles | 5 years | ||||
Computer hardware | 3 - 5 years | ||||
Construction in process and machinery under installation is stated at historic cost and depreciation begins after it is constructed and fully installed and is used in the operations of the Company. | |||||
Gains and losses on disposal are determined by comparing proceeds with carrying amounts and are included in operating income in the consolidated statements of operations. | |||||
The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Recoverability of long-lived assets or asset groups is measured by comparing their carrying amount to the projected undiscounted cash flows that the long-lived assets or asset groups are expected to generate. If such assets are considered to be impaired, the impairment loss recognized, if any, is the amount by which the carrying amount of the property and equipment exceeds its fair value. | |||||
Borrowing costs | ' | ||||
Borrowing costs | |||||
Borrowing costs are accounted for on an accrual basis and are charged to the consolidated statements of operations in the year incurred, except for interest costs on borrowings to finance certain qualifying assets. Such costs to finance qualifying assets are capitalized during the period of time that is required to complete and prepare the assets for their intended use, as part of the cost of the assets. All other borrowing costs are expensed as incurred. | |||||
The capitalization rate used to determine the amount of interest to be capitalized is the weighted average interest rate applicable to the Company’s outstanding borrowings during the year. Where funds are borrowed specifically for the acquisition, construction or production of assets, the amount of borrowing costs eligible for capitalization on the respective assets is determined as the actual borrowing costs are incurred on that borrowing during the respective periods. | |||||
Fair value of financial instruments | ' | ||||
Fair value of financial instruments | |||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs for the valuation of an asset or liability as of the measurement date. The three levels of inputs that may be used to measure fair value are defined as follows: | |||||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. | |||||
Level 2 inputs for similar assets and liabilities in active markets other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | |||||
Level 3 inputs that are significant to the fair value measurement and unobservable (i.e. supported by little or no market activity), which require the reporting entity to develop its own valuation techniques and assumptions. | |||||
The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | |||||
The carrying amounts of certain financial instruments, which include cash and cash equivalents, trade accounts receivable, and trade accounts payable, approximate their fair values due to their short maturities. The carrying amounts of borrowings approximate their fair values as the applicable interest rate is based on market interest rates. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item. | |||||
Derivatives | ' | ||||
Derivatives | |||||
Derivatives are recognized on the consolidated balance sheets as other current assets or accrued expenses at fair value, based on the free-standing derivative instrument. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation and can either be designated as (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value” hedge), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge) or (3) held for trading or not designated for hedge accounting (“free-standing derivative instrument”). | |||||
Concentration of credit risk | ' | ||||
Concentration of credit risk | |||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, derivatives and accounts receivable. | |||||
Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate its credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. | |||||
The Company performs ongoing credit evaluations for credit worthiness of its customers and usually does not require collateral from its customers. Management has implemented a program to closely monitor near term cash collection and credit exposures to mitigate any material losses. | |||||
Revenue recognition | ' | ||||
Revenue recognition | |||||
The Company derives total revenues primarily from the assembly of products under supply agreements with its customers and the fabrication of customized optics and glass. Revenues represent the invoiced value of products, net of trade discounts and allowances, and exclude goods and services tax. The Company recognizes revenues when realized or realizable and earned. The Company considers revenues realized or realizable and earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery does not occur until products have been shipped or services have been provided to the customer, risk of loss has transferred to the customer and customer acceptance has been obtained, customer acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. In situations where a formal acceptance is required but the acceptance only relates to whether the product meets its published specifications, revenues are generally recognized upon shipment provided all other revenue recognition criteria are met. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. The Company reduces revenues for rebates and other similar allowances. Revenues are recognized only if these estimates can be reasonably and reliably determined. The Company bases its estimates on historical results taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for each major category of revenues. | |||||
Services | |||||
The Company provides services for its customers that range from process design to product manufacturing. The Company recognizes service revenues when the services have been performed. The related costs are expensed as incurred. | |||||
Sales of goods | |||||
Revenues from sales of goods are generally recognized when the product is shipped to the customer and when there are no unfulfilled obligations that affect the customer’s final acceptance of the arrangement. Any cost of warranties and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenues are recognized. | |||||
Warranty provision | ' | ||||
Warranty provision | |||||
Provisions for estimated expenses relating to product warranties are made at the time the products are sold using historical experience. Generally, this warranty is limited to workmanship and the Company’s liability is capped at the price of the product. The provisions will be adjusted when experience indicates an expected settlement will differ from initial estimates. | |||||
Warranty cost allowances of $0.02 million, $0.02 million, and $0.1 million were recognized in the consolidated statements of operations for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. | |||||
Shipping and handling costs | ' | ||||
Shipping and handling costs | |||||
The Company records costs related to shipping and handling in cost of revenues for all periods presented. | |||||
Share-based compensation | ' | ||||
Share-based compensation | |||||
Share-based compensation is recognized in the consolidated financial statements based on grant-date fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The Company estimates the fair value of share-based awards utilizing the Black-Scholes-Merton (“BSM”) option-pricing model net of estimated forfeitures. | |||||
Employee contribution plan | ' | ||||
Employee contribution plan | |||||
The Company operates a defined contribution plan, known as a provident fund, in Fabrinet Thailand. The assets of this plan are in a separate trustee-administered fund. The provident fund is funded by matching payments from employees and by the subsidiary on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (the “401(k) Plan”), a Defined Contribution Plan under ERISA, at its Fabrinet USA, Inc. and FBN New Jersey Manufacturing, Inc. subsidiaries, which provides retirement benefits for its eligible employees through tax deferred salary deductions. | |||||
Severance liabilities | ' | ||||
Severance liabilities | |||||
Under labor protection laws applicable in Thailand and under the Fabrinet Thailand employment policy, all employees of Fabrinet Thailand with more than 120 days of service are entitled to severance pay on forced termination or retrenchment or in the event that the employee reaches the retirement age of 55. The entitlement to severance pay is determined according to an employee’s individual employment tenure with the Company and is subject to a maximum benefit of 10 months of salary unless otherwise agreed upon in an employee’s employment contract. The Company accounts for this severance liability on an actuarial basis using the Projected Unit Credit Method, using the long-term Thai government bond yield as a discount rate. There are no separate plan assets held in respect of this liability. | |||||
Annual leave | ' | ||||
Annual leave | |||||
Employee entitlements to annual leave are recognized when they accrue to the employee. On termination of employment, accrued employee entitlement to annual leave is paid in cash. | |||||
Income taxes | ' | ||||
Income taxes | |||||
The Company uses the asset and liability method of accounting for income taxes, whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||
Fabrinet’s subsidiaries are subject to income tax audits by the respective tax authorities in all of the jurisdictions in which they operate. The determination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations. The Company recognizes liabilities based on its estimate of whether, and the extent to which, additional tax liabilities are probable. If the Company ultimately determines that the payment of such a liability is not probable, then it reverses the liability and recognizes a tax benefit during the period in which the determination is made that the liability is no longer probable. The recognition and measurement of current taxes payable or refundable and deferred tax assets and liabilities requires that the Company makes certain estimates and judgments. Changes to these estimates or a change in judgment may have a material impact on the Company’s tax provision in a future period. | |||||
The accounting standard clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. | |||||
The Company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. The accounting interpretation also provides guidance on measurement methodology, derecognition thresholds, financial statement classification and disclosures, recognition of interest and penalties, and accounting for the cumulative-effect adjustment at the date of adoption. | |||||
New Accounting Pronouncements-not yet adopted by the Company | ' | ||||
New Accounting Pronouncements—not yet adopted by the Company | |||||
In August 2014, The Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) no. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments require management to evaluate an entity’s ability to continue as a going concern; when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations that become due within one year after the date that the financial statements are issued (or available to be issued). This applies to all entities and effective for fiscal beginning after December 15, 2016 and for annual periods and interim periods thereafter. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
In June 2014, the FASB issued ASU No. 2014-12, “Compensation—Stock Compensation (Topic 718), Accounting for Share-Based Payments when the terms of an award provide that a performance target could be achieved after the requisite service period”. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The Company is currently evaluating the impact of adoption on this new guidance on its consolidated financial statements. | |||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606), issued as a new Topic, Accounting Standards Codification”. The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with earlier adoption not being permitted. This new guidance can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently assessing impact of adoption of this new guidance on its consolidated financial statements. | |||||
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This ASU provides guidance for netting of unrecognized tax benefits (UTBs) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Under this new guidance, UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
In April 2013, the FASB issued ASU No. 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting”. The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. The amendments require financial statements prepared using the liquidation basis of accounting to present relevant information about an entity’s expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. This guidance is effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013 and interim reporting periods therein. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parents’ Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”. This ASU permits an entity to release cumulative translation adjustments into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided, or, if a controlling financial interest is no longer held. The guidance is effective for fiscal years beginning after December 15, 2013, with early adoption being permitted. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
In February 2013, the FASB issued ASU No. 2013-04, “Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation is Fixed at the Reporting Date”. The guidance in this update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect that the adoption of this guidance will have an effect on its consolidated financial statements. | |||||
Recently Adopted Accounting Pronouncements | ' | ||||
Recently Adopted Accounting Pronouncements | |||||
In January 2013, the FASB issued ASU No. 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosure about Offsetting Assets and Liabilities”. The amendments clarify that the scope of Update 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. This guidance is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. The Company did not have an effect on its consolidated financial statements from the adoption. | |||||
In July 2012, the FASB issued ASU No. 2012-02, “Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment”. Under the amendments, an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. This guidance is effective for fiscal years beginning after September 15, 2012. Early adoption is permitted. The Company did not have an effect on its consolidated financial statements from the adoption. | |||||
In December 2011, the FASB issued the Accounting Standards Update No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities”. The amendments in this Update will enhance disclosures required by U.S. GAAP by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45. Information about offsetting and related arrangements will enable users of an entity’s financial statements to understand the effect of those arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. This guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The Company did not have an effect on its consolidated financial statements from the adoption. |
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 12 Months Ended | ||||
Jun. 27, 2014 | |||||
Property Plant and Equipment Estimated Useful Life | ' | ||||
Depreciation is calculated on the straight-line method to write-off the cost of each asset to its residual value over its estimated useful life as follows: | |||||
Building and building improvements | 10 - 30 years | ||||
Leasehold improvements | Shorter of useful life or lease term | ||||
Manufacturing equipment | 3 - 5 years | ||||
Office equipment | 3 - 5 years | ||||
Motor vehicles | 5 years | ||||
Computer hardware | 3 - 5 years |
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Income Tax Expense | ' | ||||||||||||
The Company’s income tax expense consisted of the following: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, 2014 | June 28, 2013 | June 29, 2012 | ||||||||||
Current | $ | 2,304 | $ | 239 | $ | 282 | |||||||
Deferred | (865 | ) | 2,701 | (2,250 | ) | ||||||||
Total income tax expense (benefit) | $ | 1,439 | $ | 2,940 | $ | (1,968 | ) | ||||||
Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge | ' | ||||||||||||
The reconciliation between the Company’s taxes that would arise by applying the statutory tax rate of the country of the Company’s principal operations, Thailand, to the Company’s effective tax charge is shown below: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
Income (loss) before income taxes | $ | 93,170 | $ | 71,909 | $ | (58,435 | ) | ||||||
Tax expense (benefit) calculated at a corporate income tax rate of 20% (2013: 23% and 2012: 30%) | 18,634 | 16,539 | (17,531 | ) | |||||||||
Effect of income taxes from locations with tax rates different from Thailand | (2 | ) | (457 | ) | (551 | ) | |||||||
(Income) loss not subject to tax (1) | (15,648 | ) | (12,728 | ) | 15,240 | ||||||||
(Reversal of) income tax on unremitted earnings | (259 | ) | 466 | 552 | |||||||||
Effect of tax rate change | (662 | ) | (303 | ) | 1,263 | ||||||||
Effect of foreign exchange rate adjustment | (380 | ) | (90 | ) | (993 | ) | |||||||
Insurance proceeds from equipment claim due to flooding | — | (516 | ) | — | |||||||||
Reversal of reserve fixed assets damaged from flooding | (251 | ) | — | — | |||||||||
Others | 7 | 29 | 52 | ||||||||||
Corporate income tax expense (benefit) | $ | 1,439 | $ | 2,940 | $ | (1,968 | ) | ||||||
-1 | Income not subject to tax relates to income earned in the Cayman Islands, income subject to an investment promotion privilege for Building 5 and Building 6. Income (loss) not subject to tax per ordinary share on a diluted basis (in dollars) was $0.44, $0.37and $(0.44) for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. | ||||||||||||
Deferred Tax Assets and Deferred Tax Liabilities | ' | ||||||||||||
The Company’s deferred tax assets and deferred tax liabilities at each balance sheet date are as follows: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, 2014 | June 28, 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Depreciation | $ | 1,777 | $ | 1,684 | |||||||||
Severance liability | 796 | 680 | |||||||||||
Reserve and allowance | 1,597 | 909 | |||||||||||
Allowance for tax loss carried forward | — | 983 | |||||||||||
Non-deductible flood loss expenses | — | 540 | |||||||||||
Others | — | 70 | |||||||||||
Total | $ | 4,170 | $ | 4,866 | |||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, 2014 | June 28, 2013 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred cost of service and expense | $ | (23 | ) | $ | (24 | ) | |||||||
Insurance proceeds from equipment claim due to flooding | — | (540 | ) | ||||||||||
Deferred tax from unremitted earning | (1,838 | ) | (1,941 | ) | |||||||||
Others | (13 | ) | — | ||||||||||
Total | (1,874 | ) | (2,505 | ) | |||||||||
Net | $ | 2,296 | $ | 2,361 | |||||||||
Current deferred income tax assets and liabilities and non-current deferred income tax assets and liabilities are offset when the income taxes relate to the same tax jurisdiction. The following amounts are shown in the consolidated balance sheets: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, 2014 | June 28, 2013 | |||||||||||
Deferred income tax assets—current | $ | 1,561 | $ | 1,397 | |||||||||
Deferred income tax liabilities—current | — | — | |||||||||||
Current deferred income tax—net | 1,561 | 1,397 | |||||||||||
Deferred income tax assets—non current | 1,775 | 2,116 | |||||||||||
Deferred income tax liabilities—non current | (1,040 | ) | (1,152 | ) | |||||||||
Non-current deferred income tax—net | 735 | 964 | |||||||||||
Net deferred income tax assets | $ | 2,296 | $ | 2,361 | |||||||||
Changes to Unrecognized Tax Benefits | ' | ||||||||||||
The following table indicates the changes to the Company’s uncertain income tax positions for the years ended June 27, 2014, June 28, 2013 and June 29, 2012 included in other non-current liabilities. | |||||||||||||
(amount in thousands) | As of | As of | As of | ||||||||||
June 27, 2014 | June 28, 2013 | June 29, 2012 | |||||||||||
Beginning balance | $ | 1,167 | $ | 1,124 | $ | 1,124 | |||||||
Additions during the year | 510 | 358 | — | ||||||||||
Reductions for tax positions of prior years | (809 | ) | (315 | ) | — | ||||||||
Ending balance | $ | 868 | $ | 1,167 | $ | 1,124 | |||||||
Earnings_loss_per_ordinary_sha1
Earnings (loss) per ordinary share (Tables) | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Earnings Per Ordinary Share | ' | ||||||||||||
The earnings per ordinary share was calculated as follows: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands except per share amounts) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income (loss) attributable to shareholders | $ | 91,731 | $ | 68,969 | $ | (56,467 | ) | ||||||
Weighted average number of ordinary shares outstanding | 34,938 | 34,557 | 34,382 | ||||||||||
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units | 651 | 289 | — | (1) | |||||||||
Weighted average number of ordinary shares for diluted earnings (loss) per ordinary share | 35,589 | 34,846 | 34,382 | ||||||||||
Basic earnings (loss) per ordinary share | $ | 2.63 | $ | 2 | $ | (1.64 | ) | ||||||
Diluted earnings (loss) per ordinary share | $ | 2.58 | $ | 1.98 | $ | (1.64 | ) | ||||||
Outstanding share options excluded in the computation of diluted earnings per ordinary share (in shares) (2) | 44,369 | 1,129,933 | — | ||||||||||
-1 | 200,055 ordinary shares were excluded from the determination of the loss per ordinary share for the year ended June 29, 2012 as they were considered antidilutive. | ||||||||||||
-2 | These share options were not included in the computation of diluted earnings per ordinary share for fiscal year 2014 and fiscal year 2013, respectively, because the exercise price of the options was greater than the average market price of the underlying shares. |
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||
Financial Instruments Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table provides details of the financial instruments measured at fair value on a recurring basis: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(amount in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of June 27, 2014 | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | — | $ | 19,194 | $ | — | $ | 19,194 | |||||||||
Derivative assets | — | 135 | — | 135 | |||||||||||||
Total | $ | — | $ | 19,329 | $ | — | $ | 19,329 | |||||||||
Liabilities | |||||||||||||||||
Derivative liabilities | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Total | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(amount in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of June 28, 2013 | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | — | $ | 88,011 | $ | — | $ | 88,011 | |||||||||
Total | $ | — | $ | 88,011 | $ | — | $ | 88,011 | |||||||||
Liabilities | |||||||||||||||||
Derivative liabilities | $ | — | $ | 766 | $ | — | $ | 766 | |||||||||
Total | $ | — | $ | 766 | $ | — | $ | 766 | |||||||||
Cash_and_cash_equivalents_Tabl
Cash and cash equivalents (Tables) | 12 Months Ended | ||||||||
Jun. 27, 2014 | |||||||||
Cash and Cash Equivalents | ' | ||||||||
The following table provides details for the cash and cash equivalents: | |||||||||
(amount in thousands) | As of | As of | |||||||
June 27, | June 28, | ||||||||
2014 | 2013 | ||||||||
Cash at banks and on hand | $ | 214,283 | $ | 61,705 | |||||
Cash equivalents | 19,194 | 88,011 | |||||||
Total cash and cash equivalents | $ | 233,477 | $ | 149,716 | |||||
Allowance_for_doubtful_account1
Allowance for doubtful accounts (Tables) | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Activities and Balances for Allowance for Doubtful Accounts | ' | ||||||||||||
The activities and balances for allowance for doubtful accounts were as follows: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of period | $ | 109 | $ | 203 | $ | 79 | |||||||
(Credited to Income)/Charged to Expense | (72 | ) | (94 | ) | 124 | ||||||||
Balance, end of period | $ | 37 | $ | 109 | $ | 203 | |||||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | ||||||||
Jun. 27, 2014 | |||||||||
Inventories | ' | ||||||||
(amount in thousands) | As of | As of | |||||||
June 27, | June 28, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 40,885 | $ | 34,572 | |||||
Work in progress | 56,376 | 43,806 | |||||||
Finished goods | 22,970 | 7,342 | |||||||
Goods in transit | 6,899 | 5,359 | |||||||
127,130 | 91,079 | ||||||||
Less: Inventory obsolescence | (2,560 | ) | (2,117 | ) | |||||
Inventory, net | $ | 124,570 | $ | 88,962 | |||||
Property_plant_and_equipment_n1
Property, plant and equipment, net (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||||||||||||||||
Property, Plant and Equipment Net | ' | ||||||||||||||||||||||||||||||||
The components of property, plant and equipment, net were as follows: | |||||||||||||||||||||||||||||||||
(amount in thousands) | Land | Building and | Manufacturing | Office | Motor | Computers | Construction | Total | |||||||||||||||||||||||||
Building | Equipment | Equipment | Vehicles | and | |||||||||||||||||||||||||||||
Improvement | Machinery | ||||||||||||||||||||||||||||||||
Under | |||||||||||||||||||||||||||||||||
Installation | |||||||||||||||||||||||||||||||||
As of June 27, 2014 | |||||||||||||||||||||||||||||||||
Cost | $ | 14,353 | $ | 73,353 | $ | 60,354 | $ | 5,376 | $ | 615 | $ | 12,044 | $ | 1,369 | $ | 167,464 | |||||||||||||||||
Less: Accumulated depreciation | — | (17,580 | ) | (39,100 | ) | (3,266 | ) | (608 | ) | (9,666 | ) | — | (70,220 | ) | |||||||||||||||||||
Net book value | $ | 14,353 | $ | 55,773 | $ | 21,254 | $ | 2,110 | $ | 7 | $ | 2,378 | $ | 1,369 | $ | 97,244 | |||||||||||||||||
As of June 28, 2013 | |||||||||||||||||||||||||||||||||
Cost | $ | 14,353 | $ | 74,450 | $ | 59,392 | $ | 5,666 | $ | 638 | $ | 12,070 | $ | 3,864 | $ | 170,433 | |||||||||||||||||
Less: Accumulated depreciation | — | (15,090 | ) | (42,344 | ) | (3,342 | ) | (628 | ) | (9,307 | ) | — | (70,711 | ) | |||||||||||||||||||
Less: Impairment reserve | — | (1,076 | ) | (1,091 | ) | (44 | ) | — | (301 | ) | (4 | ) | (2,516 | ) | |||||||||||||||||||
Net book value | $ | 14,353 | $ | 58,284 | $ | 15,957 | $ | 2,280 | $ | 10 | $ | 2,462 | $ | 3,860 | $ | 97,206 | |||||||||||||||||
Intangibles_Tables
Intangibles (Tables) | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Intangibles | ' | ||||||||||||
The following tables present details of the Company’s intangibles: | |||||||||||||
(amount in thousands) | Gross Carrying | Accumulated | Net | ||||||||||
Amount | Amortization | ||||||||||||
As of June 27, 2014 | |||||||||||||
Software | $ | 3,458 | $ | (3,386 | ) | $ | 72 | ||||||
Total intangibles | $ | 3,458 | $ | (3,386 | ) | $ | 72 | ||||||
Estimated Future Amortization of Intangibles | ' | ||||||||||||
Based on the carrying amount of intangibles as of June 27, 2014, and assuming no future impairment of the underlying assets, the estimated future amortization at the end of each fiscal year in June is as follows: | |||||||||||||
(amount in thousand) | |||||||||||||
2015 | $ | 65 | |||||||||||
2016 | 5 | ||||||||||||
2017 | 1 | ||||||||||||
2018 | 1 | ||||||||||||
Total | $ | 72 | |||||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||||||||
Jun. 27, 2014 | |||||||||||||||
Bank Borrowings and Long-Term Debt | ' | ||||||||||||||
Bank borrowings and long-term debt was comprised of the following: | |||||||||||||||
(amount in | |||||||||||||||
thousands) | |||||||||||||||
Bank | Rate (1) | Conditions | Term | As of | As of | ||||||||||
borrowing | June 27, | June 28, | |||||||||||||
2014 | 2013 | ||||||||||||||
No. 1 | LIBOR + 2.8% | Repayable in quarterly installments within 6 years | June 2012 – March | $ | 16,500 | $ | 22,500 | ||||||||
per annum | 2017 | ||||||||||||||
No. 2 (2) | SIBOR + 1.5% | Repayable in quarterly installments within 8 years | May 2009 –February | — | 6,411 | ||||||||||
per annum | 2015 | ||||||||||||||
Total | 16,500 | 28,911 | |||||||||||||
Less: Current portion | (6,000 | ) | (9,668 | ) | |||||||||||
Non-current portion | $ | 10,500 | $ | 19,243 | |||||||||||
-1 | LIBOR is London Interbank Offered Rate and SIBOR is Singapore Interbank Offered Rate | ||||||||||||||
-2 | On April 28, 2014, the Company extinguished the long-term loan by making a payment of $3.7 million which included principal, interest expense and early repayment fee. Unamortized costs of this debt were recorded to consolidated statement of operation during the year. | ||||||||||||||
Movements of Long-Term Loans | ' | ||||||||||||||
The movement of long-term loans for the years ended June 27, 2014 and June 28, 2013 were as follow; | |||||||||||||||
(amount in thousands) | June 27, | June 28, | |||||||||||||
2014 | 2013 | ||||||||||||||
Opening net book amount | $ | 28,911 | $ | 38,579 | |||||||||||
Repayment during the year | (12,411 | ) | (9,668 | ) | |||||||||||
Closing net book amount | $ | 16,500 | $ | 28,911 | |||||||||||
Future Maturities of Long-Term Debt | ' | ||||||||||||||
As of June 27, 2014, future maturities of long-term debt were as follows at the end of each fiscal year below: | |||||||||||||||
(amount in thousands) | |||||||||||||||
2015 | $ | 6,000 | |||||||||||||
2016 | 6,000 | ||||||||||||||
2017 | 4,500 | ||||||||||||||
Total | $ | 16,500 | |||||||||||||
Undrawn Available Credit Facilities | ' | ||||||||||||||
Undrawn available credit facilities as of June 27, 2014 and June 28, 2013 totaled: | |||||||||||||||
As of | As of | ||||||||||||||
June 27, | June 28, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Bank borrowings: | |||||||||||||||
Short-term loans | $ | 1,539 | $ | 5,461 |
Severance_liabilities_Tables
Severance liabilities (Tables) | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Severance Liabilities | ' | ||||||||||||
The following table provides the information of the severance liabilities: | |||||||||||||
(amount in thousands) | As of | As of | |||||||||||
June 27, | June 28, | ||||||||||||
2014 | 2013 | ||||||||||||
Balance, beginning of the fiscal year | $ | 4,382 | $ | 4,420 | |||||||||
Charged to consolidated statements of operations | 71 | (38 | ) | ||||||||||
Balance, end of the fiscal year | $ | 4,453 | $ | 4,382 | |||||||||
Severance Liabilities Recognized in Balance Sheet | ' | ||||||||||||
The amount recognized in the consolidated balance sheets under non-current liabilities was determined as follows: | |||||||||||||
(amount in thousands) | As of | As of | |||||||||||
June 27, | June 28, | ||||||||||||
2014 | 2013 | ||||||||||||
Present value of defined benefit obligation | $ | 4,453 | $ | 4,382 | |||||||||
Total | $ | 4,453 | $ | 4,382 | |||||||||
Severance Liabilities Recognized in Statements of Operations | ' | ||||||||||||
The amount recognized in the consolidated statements of operations was as follows: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
Current service cost | $ | 368 | $ | 722 | $ | 474 | |||||||
Interest cost | 207 | 211 | 198 | ||||||||||
Benefit paid | (223 | ) | (4 | ) | (81 | ) | |||||||
Actuarial gain on obligation | (281 | ) | (967 | ) | (649 | ) | |||||||
Total | $ | 71 | $ | (38 | ) | $ | (58 | ) | |||||
Principal Actuarial Assumptions Used | ' | ||||||||||||
The principal actuarial assumptions used were as follows: | |||||||||||||
Years Ended | |||||||||||||
June 27, | June 28, | June 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 4.9 | % | 5.1 | % | 4.8 | % | |||||||
Future salary increases | 4.2 | % | 4.4 | % | 4.4 | % |
Sharebased_compensation_Tables
Share-based compensation (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||
Effect of Recording Share-Based Compensation Expense | ' | ||||||||||||||||
The effect of recording share-based compensation expense for the years ended June 27, 2014, June 28, 2013 and June 29, 2012 was as follows: | |||||||||||||||||
Years Ended | |||||||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Share-based compensation expense by type of award: | |||||||||||||||||
Share options | $ | 802 | $ | 1,864 | $ | 3,443 | |||||||||||
Restricted share units | 4,745 | 3,236 | 1,206 | ||||||||||||||
Total share-based compensation expense | 5,547 | 5,100 | 4,649 | ||||||||||||||
Tax effect on share-based compensation expense | — | — | — | ||||||||||||||
Net effect on share-based compensation expense | $ | 5,547 | $ | 5,100 | $ | 4,649 | |||||||||||
Share-Based Compensation Expense Recorded in Consolidated Statements of Operations | ' | ||||||||||||||||
Share-based compensation expense was recorded in the consolidated statements of operations as follows: | |||||||||||||||||
Years Ended | |||||||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenue | $ | 1,182 | $ | 1,105 | $ | 1,546 | |||||||||||
Selling, general and administrative expense | 4,365 | 3,995 | 3,103 | ||||||||||||||
Total share-based compensation expense | $ | 5,547 | $ | 5,100 | $ | 4,649 | |||||||||||
Share Option Activity | ' | ||||||||||||||||
The following table summarizes share options activity: | |||||||||||||||||
Number of | Number of | Weighted- | Weighted- | ||||||||||||||
Shares | Exercisable | Average | Average Grant | ||||||||||||||
Options | Exercise Price | Date Fair Value | |||||||||||||||
Balance as of June 24, 2011 | 1,349,126 | $ | 13.28 | ||||||||||||||
Granted | 590,537 | $ | 14.82 | $ | 14.82 | ||||||||||||
Exercised | (237,350 | ) | $ | 4.22 | |||||||||||||
Forfeited | (218,296 | ) | $ | 16.18 | |||||||||||||
Expired | (13,727 | ) | $ | 18.38 | |||||||||||||
Balance as of June 29, 2012 | 1,470,290 | 532,646 | $ | 14.88 | |||||||||||||
Granted | — | — | — | ||||||||||||||
Exercised | (94,188 | ) | $ | 5.96 | |||||||||||||
Forfeited | (44,443 | ) | $ | 17.33 | |||||||||||||
Expired | (54,348 | ) | $ | 16.97 | |||||||||||||
Balance as of June 28, 2013 | 1,277,311 | 750,949 | $ | 15.37 | |||||||||||||
Granted | — | — | — | ||||||||||||||
Exercised | (351,435 | ) | $ | 13 | |||||||||||||
Forfeited | (26,276 | ) | $ | 15.54 | |||||||||||||
Expired | (33,710 | ) | $ | 16.93 | |||||||||||||
Balance as of June 27, 2014 | 865,890 | 666,305 | $ | 16.27 | |||||||||||||
Weighted Average Assumptions for Fair Value of Share Options Granted to Employees | ' | ||||||||||||||||
Fair Value—The fair value of Fabrinet’s share options granted to employees for the years ended June 27, 2014, June 28, 2013 and June 29, 2012 was estimated using the following weighted-average assumptions: | |||||||||||||||||
Years Ended | |||||||||||||||||
June 27, | June 28, | June 29, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | — | — | — | ||||||||||||||
Expected volatility | — | — | 61.3 | % | |||||||||||||
Risk-free rate of return (percent) | — | — | 0.9 | % | |||||||||||||
Expected term (in years) | — | — | 4.36 | ||||||||||||||
Information for Share Options Outstanding | ' | ||||||||||||||||
The following summarizes information for share options outstanding as of June 27, 2014 under the share options plan: | |||||||||||||||||
Number of | Exercise | Weighted Average | Aggregate | ||||||||||||||
Shares | Price Per | Remaining | Intrinsic Value | ||||||||||||||
Underlying | Share | Contractual Life | |||||||||||||||
Options | (years) | ||||||||||||||||
525 | 4.25 | 0.17 | |||||||||||||||
500 | 4.75 | 0.42 | |||||||||||||||
2,100 | 5 | 0.63 | |||||||||||||||
1,400 | 5.25 | 0.86 | |||||||||||||||
9,290 | 5.75 | 2.22 | |||||||||||||||
8,368 | 13.77 | 3.16 | |||||||||||||||
444,878 | 16.83 | 3.3 | |||||||||||||||
30,000 | 15.05 | 3.36 | |||||||||||||||
26,844 | 25.5 | 3.55 | |||||||||||||||
7,400 | 26.16 | 3.61 | |||||||||||||||
10,125 | 23.62 | 3.85 | |||||||||||||||
97,968 | 15.16 | 4.14 | |||||||||||||||
193,521 | 14.12 | 4.37 | |||||||||||||||
25,160 | 19.36 | 4.62 | |||||||||||||||
5,550 | 18.6 | 4.68 | |||||||||||||||
2,261 | 12.83 | 4.87 | |||||||||||||||
Options outstanding | 865,890 | 3.68 | 3,924 | ||||||||||||||
Options exercisable | 666,305 | 3.57 | 2,922 | ||||||||||||||
Restricted Share Unit Activity | ' | ||||||||||||||||
The following table summarizes restricted share unit activity: | |||||||||||||||||
Number of | Weighted- | Weighted- | |||||||||||||||
Shares | Average Grant | Average Grant | |||||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||
Per Share | |||||||||||||||||
Balance as of June 24, 2011 | 25,900 | $ | 21.62 | ||||||||||||||
Granted | 211,266 | $ | 14.37 | $ | 14.37 | ||||||||||||
Issued | (25,900 | ) | $ | 21.62 | |||||||||||||
Forfeited | (42,991 | ) | $ | 14.07 | |||||||||||||
Balance as of June 29, 2012 | 168,275 | $ | 14.44 | ||||||||||||||
Granted | 468,387 | $ | 12.42 | $ | 12.42 | ||||||||||||
Issued | (71,880 | ) | $ | 14.1 | |||||||||||||
Forfeited | (19,114 | ) | $ | 12.78 | |||||||||||||
Balance as of June 28, 2013 | 545,668 | $ | 12.81 | ||||||||||||||
Granted | 479,894 | $ | 15.37 | $ | 15.37 | ||||||||||||
Issued | (184,773 | ) | $ | 12.98 | |||||||||||||
Forfeited | (78,494 | ) | $ | 14.25 | |||||||||||||
Balance as of June 27, 2014 | 762,295 | $ | 14.23 | ||||||||||||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||
Jun. 27, 2014 | |||||
Future Minimum Lease Payments Due Under Non-Cancelable Leases | ' | ||||
As of June 27, 2014, the future minimum lease payments due under non-cancelable leases are as follows at the end of each fiscal year below: | |||||
(amount in thousands) | |||||
2015 | $ | 988 | |||
2016 | 942 | ||||
2017 | 928 | ||||
2018 | 928 | ||||
2019 | 441 | ||||
Thereafter | 279 | ||||
Total minimum operating lease payments | $ | 4,506 | |||
Business_segments_and_geograph1
Business segments and geographic information (Tables) | 12 Months Ended | ||||||||||||
Jun. 27, 2014 | |||||||||||||
Total Revenues by Geographic Regions | ' | ||||||||||||
The Company operates primarily in three geographic regions: North America, Asia-Pacific and Europe. The following table presents total revenues by geographic regions: | |||||||||||||
Years Ended | |||||||||||||
(amount in thousands) | June 27, | June 28, | June 29, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
North America | $ | 326,647 | $ | 299,510 | $ | 272,659 | |||||||
Asia-Pacific | 230,314 | 218,393 | 189,455 | ||||||||||
Europe | 120,893 | 123,639 | 102,618 | ||||||||||
Total | $ | 677,854 | $ | 641,542 | $ | 564,732 | |||||||
Total Revenues by Percentage from Individual Customers Representing Ten Percent or More of Total Revenues | ' | ||||||||||||
Total revenues, by percentage, from individual customers representing 10% or more of total revenues in the respective periods were as follows: | |||||||||||||
Years Ended | |||||||||||||
June 27, | June 28, | June 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
JDS Uniphase Corporation | 24 | % | 22 | % | 25 | % | |||||||
Oclaro, Inc. (1) | 22 | % | 25 | % | 12 | % | |||||||
Finisar Corporation | * | (2) | * | (2) | 10 | % | |||||||
Accounts Receivable from Individual Customers that were Equal to or Greater than Ten Percent of Accounts Receivable | ' | ||||||||||||
Accounts receivable from individual customers that were equal to or greater than 10% of accounts receivable as of June 27, 2014, June 28, 2013, and June 29, 2012, respectively, were as follows: | |||||||||||||
Years Ended | |||||||||||||
June 27, | June 28, | June 29, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
JDS Uniphase Corporation | 23 | % | 17 | % | 17 | % | |||||||
Oclaro, Inc. (1) | 14 | % | 31 | % | 30 | % | |||||||
Valeo | 10 | % | * | (2) | * | (2) | |||||||
EMCORE Corporation | * | (2) | * | (2) | 12 | % | |||||||
-1 | Includes revenue of Opnext, Inc., which was acquired by Oclaro, Inc. in July 2012. | ||||||||||||
-2 | Less than 10% of total revenue / total accounts receivable. |
Financial_instruments_Tables
Financial instruments (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||
Outstanding Foreign Currency Assets and Liabilities | ' | ||||||||||||||||
As of June 27, 2014 and June 28, 2013, the Company had outstanding foreign currency assets and liabilities as follows: | |||||||||||||||||
As of June 27, 2014 | As of June 28, 2013 | ||||||||||||||||
(amount in thousands, except percentages) | Currency | $ | Currency | $ | |||||||||||||
Assets | |||||||||||||||||
Thai baht | 1,536,887 | $ | 47,318 | 567,561 | $ | 18,232 | |||||||||||
RMB | 74,813 | 12,156 | 105,680 | 17,104 | |||||||||||||
Total | $ | 59,474 | $ | 35,336 | |||||||||||||
Liabilities | |||||||||||||||||
Thai baht | 735,490 | $ | 22,644 | 585,364 | $ | 18,804 | |||||||||||
RMB | 32,512 | 5,283 | 15,308 | 2,478 | |||||||||||||
Total | $ | 27,927 | $ | 21,282 | |||||||||||||
Principal_subsidiaries_Tables
Principal subsidiaries (Tables) | 12 Months Ended | ||||||||
Jun. 27, 2014 | |||||||||
Subsidiaries of Group | ' | ||||||||
Fabrinet’s subsidiaries are: | |||||||||
Name | Business | Country of | Percent | ||||||
Incorporation | interest | ||||||||
Fabrinet Co., Ltd. | Manufacturing and assembly | Thailand | 99.99 | ||||||
Fabrinet USA, Inc. | Marketing and administrative support services | United States of America (California) | 100 | ||||||
FBN New Jersey Manufacturing, Inc. | Manufacturing and assembly | United States of America (Delaware) | 100 | ||||||
Fabrinet China Holdings | Holding company | Mauritius Island | 100 | ||||||
CASIX Inc. | Manufacturing and assembly | People’s Republic of China | 100 | ||||||
(a wholly-owned subsidiary of Fabrinet China Holdings) | |||||||||
Fabrinet Pte., Ltd. | Sales and administrative support services and supply chain sourcing center | Singapore | 100 |
UNAUDITED_QUARTERLY_FINANCIAL_1
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 27, 2014 | |||||||||||||||||||||||||||||||||
Effects of Restatement on Consolidated Statements of Operations | ' | ||||||||||||||||||||||||||||||||
Had adjustments been made to reflect revenues and cost of revenues in the appropriate quarters in the fiscal year ended June 27, 2014, revenues, cost of revenues, and net income for each of the quarters in the fiscal year ended June 27, 2014 would have increased (decreased) as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
(amount in thousands) | Jun 27, | Mar 28, | Dec 27, | Sep 27, | |||||||||||||||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||||||||||||||||||
(Q4 FY14) | (Q3 FY14) | (Q2 FY14) | (Q1 FY14) | ||||||||||||||||||||||||||||||
Revenues | $ | 12,777 | $ | 1,964 | $ | (6,350 | ) | $ | 2,706 | ||||||||||||||||||||||||
Cost of revenues | $ | 11,520 | $ | 1,771 | $ | (5,726 | ) | $ | 2,440 | ||||||||||||||||||||||||
Net income | $ | 1,257 | $ | 193 | $ | (625 | ) | $ | 266 | ||||||||||||||||||||||||
Quarterly Financial Information | ' | ||||||||||||||||||||||||||||||||
The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters in the fiscal years ended June 27, 2014 and June 28, 2013: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
(in thousands, except per share | Jun 27, | Mar 28, | Dec 27, | Sep 27, | Jun 28, | Mar 29, | Dec 28, | Sep 28, | |||||||||||||||||||||||||
data) | 2014 | 2014 | 2013 | 2013 | 2013 | 2013 | 2012 | 2012 | |||||||||||||||||||||||||
Total revenues | $ | 160,084 | $ | 167,657 | $ | 178,562 | $ | 171,551 | $ | 159,934 | $ | 155,557 | $ | 167,426 | $ | 158,625 | |||||||||||||||||
Gross profit | $ | 17,775 | $ | 17,283 | $ | 20,530 | $ | 18,645 | 17,071 | 16,255 | 18,370 | 17,722 | |||||||||||||||||||||
Net income | $ | 10,333 | $ | 47,662 | $ | 14,539 | $ | 19,197 | $ | 15,142 | $ | 21,126 | $ | 16,682 | $ | 16,019 | |||||||||||||||||
Basic net income per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 0.29 | $ | 1.36 | $ | 0.42 | $ | 0.55 | $ | 0.44 | $ | 0.61 | $ | 0.48 | $ | 0.46 | |||||||||||||||||
Weighted-average shares used in basic net income per share calculations | 35,117 | 35,078 | 34,882 | 34,674 | 34,629 | 34,596 | 34,517 | 34,485 | |||||||||||||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 0.29 | $ | 1.33 | $ | 0.41 | $ | 0.55 | $ | 0.43 | $ | 0.61 | $ | 0.48 | $ | 0.46 | |||||||||||||||||
Weighted-average shares used in diluted net income per share calculations | 35,843 | 35,790 | 35,583 | 35,138 | 35,000 | 34,909 | 34,804 | 34,670 | |||||||||||||||||||||||||
Business_and_Organization_Addi
Business and Organization - Additional Information (Detail) (USD $) | 12 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | 28-May-14 | Mar. 14, 2013 | 28-May-14 | Mar. 14, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Secondary Public Offering | Secondary Public Offering | Asia Pacific Growth Fund III, L.P. | Asia Pacific Growth Fund III, L.P. | Asia Pacific Growth Fund III, L.P. | |||||
Organization and Nature of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares capital, fully diluted, held | ' | ' | ' | ' | ' | ' | 8.80% | 17.80% | 26.30% |
Shares sold | ' | ' | ' | ' | 3,150,000 | 3,800,000 | ' | ' | ' |
Public offering price | ' | ' | $18 | $14 | ' | ' | ' | ' | ' |
Offering expense | $0.30 | $0.40 | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Accounting Policies [Line Items] | ' | ' | ' |
Warranty cost allowances | $0.02 | $0.02 | $0.10 |
Maximum | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Cash and cash equivalents, maturity period | '3 months | ' | ' |
Property_Plant_and_Equipment_E
Property Plant and Equipment Estimated Useful Life (Detail) | 12 Months Ended |
Jun. 27, 2014 | |
Building and Building Improvement | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment estimated useful life | '10 years |
Building and Building Improvement | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment estimated useful life | '30 years |
Leasehold improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Leasehold improvements | 'Shorter of useful life or lease term |
Manufacturing Equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment estimated useful life | '3 years |
Manufacturing Equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment estimated useful life | '5 years |
Office Equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment estimated useful life | '3 years |
Office Equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment estimated useful life | '5 years |
Motor Vehicles | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment estimated useful life | '5 years |
Computers | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment estimated useful life | '3 years |
Computers | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment estimated useful life | '5 years |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 36 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Dec. 31, 2010 | Dec. 31, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | ||||
Severe flooding in Thailand during October and November 2011 | Cayman Islands | Cayman Islands | Cayman Islands | Cayman Islands | People's Republic of China | People's Republic of China | People's Republic of China | People's Republic of China | People's Republic of China | Thailand | Thailand | Thailand | Thailand | Thailand | |||||||
Additional Renewal | Additional Renewal | Fiscal 2013 | Fiscal 2014 | Fiscal 2015 | |||||||||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Tax exemption period | ' | ' | ' | ' | '20 years | ' | ' | '20 years | ' | '3 years | ' | ' | '3 years | ' | ' | ' | ' | ' | |||
Exempted income from corporate income tax | $15,648,000 | [1] | $12,728,000 | [1] | ($15,240,000) | [1] | ' | $73,000,000 | $50,300,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate Income tax rate | 20.00% | 23.00% | 30.00% | ' | ' | ' | ' | ' | 25.00% | ' | 25.00% | 15.00% | ' | 30.00% | ' | ' | ' | ' | |||
Reduced corporate Income Tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.00% | 20.00% | 20.00% | |||
Period income earned from operation of Building 6 is not subject to tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' | ' | ' | |||
Allowance for tax loss carried forward | ' | 983,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Unremitted earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,200,000 | 25,400,000 | ' | ' | ' | |||
Unrecognized deferred tax liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | 2,300,000 | ' | ' | ' | |||
Deferred tax liabilities | 1,838,000 | 1,941,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | 1,900,000 | ' | ' | ' | |||
Accrued interest and penalties related to uncertain tax positions | 40,000 | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Recorded (reversed) interest and penalties | ($600,000) | ($100,000) | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Income not subject to tax relates to income earned in the Cayman Islands, income subject to an investment promotion privilege for Building 5 and Building 6. Income (loss) not subject to tax per ordinary share on a diluted basis (in dollars) was $0.44, $0.37and $(0.44) for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. |
Income_Tax_Expense_Detail
Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Income Taxes [Line Items] | ' | ' | ' |
Current | $2,304 | $239 | $282 |
Deferred | -865 | 2,701 | -2,250 |
Corporate income tax expense (benefit) | $1,439 | $2,940 | ($1,968) |
Reconciliation_between_Taxes_t
Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |||
Reconciliation of Effective Income Tax Rate [Line Items] | ' | ' | ' | |||
Income (loss) before income taxes | $93,170 | $71,909 | ($58,435) | |||
Tax expense (benefit) calculated at a corporate income tax rate of 20% (2013: 23% and 2012: 30%) | 18,634 | 16,539 | -17,531 | |||
Effect of income taxes from locations with tax rates different from Thailand | -2 | -457 | -551 | |||
(Income) loss not subject to tax | -15,648 | [1] | -12,728 | [1] | 15,240 | [1] |
(Reversal of) income tax on unremitted earnings | -259 | 466 | 552 | |||
Effect of tax rate change | -662 | -303 | 1,263 | |||
Effect of foreign exchange rate adjustment | -380 | -90 | -993 | |||
Insurance proceeds from equipment claim due to flooding | ' | -516 | ' | |||
Reversal of reserve fixed assets damaged from flooding | -251 | ' | ' | |||
Others | 7 | 29 | 52 | |||
Corporate income tax expense (benefit) | $1,439 | $2,940 | ($1,968) | |||
[1] | Income not subject to tax relates to income earned in the Cayman Islands, income subject to an investment promotion privilege for Building 5 and Building 6. Income (loss) not subject to tax per ordinary share on a diluted basis (in dollars) was $0.44, $0.37and $(0.44) for the years ended June 27, 2014, June 28, 2013 and June 29, 2012, respectively. |
Reconciliation_between_Taxes_t1
Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |
Reconciliation of Effective Income Tax Rate [Line Items] | ' | ' | ' |
Tax calculated at a corporate income tax rate, rate | 20.00% | 23.00% | 30.00% |
Income (loss) not subject to tax per ordinary share on a diluted basis | $0.44 | $0.37 | ($0.44) |
Deferred_Tax_Assets_and_Deferr
Deferred Tax Assets and Deferred Tax Liabilities (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Depreciation | $1,777 | $1,684 |
Severance liability | 796 | 680 |
Reserve and allowance | 1,597 | 909 |
Allowance for tax loss carried forward | ' | 983 |
Non-deductible flood loss expenses | ' | 540 |
Others | ' | 70 |
Total | 4,170 | 4,866 |
Deferred tax liabilities: | ' | ' |
Deferred cost of service and expense | -23 | -24 |
Insurance proceeds from equipment claim due to flooding | ' | -540 |
Deferred tax from unremitted earning | -1,838 | -1,941 |
Others | -13 | ' |
Total | -1,874 | -2,505 |
Net deferred income tax assets | $2,296 | $2,361 |
Current_Deferred_Income_Tax_As
Current Deferred Income Tax Assets and Liabilities and Non-Current Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ' | ' |
Deferred income tax assets-current | $1,561 | $1,397 |
Deferred income tax liabilities-current | ' | ' |
Current deferred income tax-net | 1,561 | 1,397 |
Deferred income tax assets-non current | 1,775 | 2,116 |
Deferred income tax liabilities-non current | -1,040 | -1,152 |
Non-current deferred income tax-net | 735 | 964 |
Net deferred income tax assets | $2,296 | $2,361 |
Changes_to_Unrecognized_Tax_Be
Changes to Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 24, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Beginning balance | $1,167 | $1,124 | $1,124 |
Additions during the year | 510 | 358 | ' |
Reductions for tax positions of prior years | -809 | -315 | ' |
Ending balance | $868 | $1,167 | $1,124 |
Earnings_Per_Ordinary_Share_De
Earnings Per Ordinary Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net income (loss) attributable to shareholders | ' | ' | ' | ' | ' | ' | ' | ' | $91,731 | $68,969 | ($56,467) | ||
Weighted average number of ordinary shares outstanding | 35,117,000 | 35,078,000 | 34,882,000 | 34,674,000 | 34,629,000 | 34,596,000 | 34,517,000 | 34,485,000 | 34,938,000 | 34,557,000 | 34,382,000 | ||
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units | ' | ' | ' | ' | ' | ' | ' | ' | 651,000 | 289,000 | ' | ||
Weighted average number of ordinary shares for diluted earnings (loss) per ordinary share | 35,843,000 | 35,790,000 | 35,583,000 | 35,138,000 | 35,000,000 | 34,909,000 | 34,804,000 | 34,670,000 | 35,589,000 | 34,846,000 | 34,382,000 | ||
Basic earnings (loss) per ordinary share | $0.29 | $1.36 | $0.42 | $0.55 | $0.44 | $0.61 | $0.48 | $0.46 | $2.63 | $2 | ($1.64) | ||
Diluted earnings (loss) per ordinary share | $0.29 | $1.33 | $0.41 | $0.55 | $0.43 | $0.61 | $0.48 | $0.46 | $2.58 | $1.98 | ($1.64) | ||
Outstanding share options excluded in the computation of diluted earnings per ordinary share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 44,369 | [1] | 1,129,933 | [1] | ' |
[1] | These share options were not included in the computation of diluted earnings per ordinary share for fiscal year 2014 and fiscal year 2013, respectively, because the exercise price of the options was greater than the average market price of the underlying shares. |
Diluted_Loss_or_Earnings_Per_O
Diluted Loss or Earnings Per Ordinary Share (Parenthetical) (Detail) | 12 Months Ended |
Jun. 29, 2012 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 200,055 |
Financial_Instruments_Measured
Financial Instruments Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash equivalents | $19,194 | $88,011 |
Derivative assets | 135 | ' |
Total | 19,329 | 88,011 |
Liabilities | ' | ' |
Derivative liabilities | 1 | 766 |
Total | 1 | 766 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets | ' | ' |
Cash equivalents | 19,194 | 88,011 |
Derivative assets | 135 | ' |
Total | 19,329 | 88,011 |
Liabilities | ' | ' |
Derivative liabilities | 1 | 766 |
Total | $1 | $766 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | Jun. 24, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash at banks and on hand | $214,283 | $61,705 | ' | ' |
Cash equivalents | 19,194 | 88,011 | ' | ' |
Total cash and cash equivalents | $233,477 | $149,716 | $115,507 | $127,282 |
Cash_and_Cash_Equivalents_Addi
Cash and Cash Equivalents - Additional Information (Detail) | Jun. 27, 2014 | Jun. 28, 2013 |
Cash and Cash Equivalents [Line Items] | ' | ' |
Weighted average effective interest rate on short term bank deposits | 1.01% | 0.87% |
Percentage of cash and cash equivalents held by parent company | 70.90% | ' |
Activities_and_Balances_for_Al
Activities and Balances for Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
(Credited to Income)/Charged to Expense | ($72) | ($94) | $124 |
Allowance for Doubtful Accounts | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance, beginning of period | 109 | 203 | 79 |
(Credited to Income)/Charged to Expense | -72 | -94 | 124 |
Balance, end of period | $37 | $109 | $203 |
Inventory_Detail
Inventory (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $40,885 | $34,572 |
Work in progress | 56,376 | 43,806 |
Finished goods | 22,970 | 7,342 |
Goods in transit | 6,899 | 5,359 |
Inventory, Gross, Total | 127,130 | 91,079 |
Less: Inventory obsolescence | -2,560 | -2,117 |
Inventory, net | $124,570 | $88,962 |
Recovered_Sheet2
Property Plant and Equipment Net (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | $167,464 | $170,433 |
Less: Accumulated depreciation | -70,220 | -70,711 |
Less: Impairment reserve | ' | -2,516 |
Net book value | 97,244 | 97,206 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 14,353 | 14,353 |
Net book value | 14,353 | 14,353 |
Building and Building Improvement | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 73,353 | 74,450 |
Less: Accumulated depreciation | -17,580 | -15,090 |
Less: Impairment reserve | ' | -1,076 |
Net book value | 55,773 | 58,284 |
Manufacturing Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 60,354 | 59,392 |
Less: Accumulated depreciation | -39,100 | -42,344 |
Less: Impairment reserve | ' | -1,091 |
Net book value | 21,254 | 15,957 |
Office Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 5,376 | 5,666 |
Less: Accumulated depreciation | -3,266 | -3,342 |
Less: Impairment reserve | ' | -44 |
Net book value | 2,110 | 2,280 |
Motor Vehicles | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 615 | 638 |
Less: Accumulated depreciation | -608 | -628 |
Net book value | 7 | 10 |
Computers | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 12,044 | 12,070 |
Less: Accumulated depreciation | -9,666 | -9,307 |
Less: Impairment reserve | ' | -301 |
Net book value | 2,378 | 2,462 |
Construction and Machinery Under Installation | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 1,369 | 3,864 |
Less: Impairment reserve | ' | -4 |
Net book value | $1,369 | $3,860 |
Recovered_Sheet3
Property, Plant and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense | $10,565,000 | $9,994,000 | $9,339,000 |
Property, plant and equipment written-off, fully depreciated cost | 2,600,000 | 300,000 | 4,200,000 |
Capitalized interest expense related to long-term loan | $0 | $0 | $500,000 |
Intangibles_Detail
Intangibles (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $3,458 | $3,458 |
Accumulated Amortization | -3,386 | -3,294 |
Net | 72 | 164 |
Software | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 3,458 | 3,458 |
Accumulated Amortization | -3,386 | -3,294 |
Net | $72 | $164 |
Intangibles_Additional_Informa
Intangibles - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense related to intangibles | $93 | $217 | $374 |
Estimated_Future_Amortization_
Estimated Future Amortization of Intangibles (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2015 | $65 | ' |
2016 | 5 | ' |
2017 | 1 | ' |
2018 | 1 | ' |
Net | $72 | $164 |
Outstanding_Borrowings_Under_L
Outstanding Borrowings Under Long-Term Loan Agreements with Bank (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | |||||
In Thousands, unless otherwise specified | Bank borrowing No. 1 | Bank borrowing No. 1 | Bank borrowing No. 1 | Bank borrowing No. 1 | Bank borrowing No. 2 | Bank borrowing No. 2 | Bank borrowing No. 2 | Bank borrowing No. 2 | ||||||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Rate | ' | ' | ' | 'LIBOR + 2.8% per annum | [1] | ' | ' | ' | 'SIBOR + 1.5% per annum | [1],[2] | ' | ' | ' | |||
Margin above LIBOR/SIBOR | ' | ' | ' | 2.80% | ' | ' | ' | 1.50% | [2] | ' | ' | ' | ||||
Conditions | ' | ' | ' | 'Repayable in quarterly installments within 6 years | ' | ' | ' | 'Repayable in quarterly installments within 8 years | [2] | ' | ' | ' | ||||
Term | ' | ' | ' | ' | ' | '2012-06 | '2017-03 | ' | ' | '2009-05 | [2] | '2015-02 | [2] | |||
Bank borrowing | $16,500 | $28,911 | $38,579 | $16,500 | $22,500 | ' | ' | ' | $6,411 | [2] | ' | ' | ||||
Less: Current portion | -6,000 | -9,668 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Non-current portion | 10,500 | 19,243 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total | $16,500 | $28,911 | $38,579 | $16,500 | $22,500 | ' | ' | ' | $6,411 | [2] | ' | ' | ||||
[1] | LIBOR is London Interbank Offered Rate and SIBOR is Singapore Interbank Offered Rate | |||||||||||||||
[2] | On April 28, 2014, the Company extinguished the long-term loan by making a payment of $3.7 million which included principal, interest expense and early repayment fee. Unamortized costs of this debt were recorded to consolidated statement of operation during the year. |
Bank_Borrowings_and_LongTerm_D
Bank Borrowings and Long-Term Debt (Parenthetical) (Detail) (USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Apr. 28, 2014 |
Line of Credit Facility [Line Items] | ' |
Early repayment of long-term loan | $3.70 |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||
Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jul. 15, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 28, 2013 | |
LIBOR | LIBOR | LIBOR | Base Rate | Base Rate | Base Rate | Bank borrowing No. 1 | Subsequent Event | Revolving Loan Facility | Term Loan Facility | After Amendment | After Amendment | ||
Minimum | Maximum | Minimum | Maximum | Bank borrowing No. 1 | Bank borrowing No. 1 | ||||||||
Subsidiary | Subsidiary | ||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of assets secured and pledged as collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $52,300,000 | $21,800,000 |
Line of credit facility borrowing capacity | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | 50,000,000 | ' | ' |
Line of credit facility increase in borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' |
Line of credit expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22-May-19 | 22-May-19 | ' | ' |
Line of credit facility amounts outstanding | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit line interest rate | ' | 'LIBOR rate plus a spread of 1.75% to 2.50% | ' | ' | 'Base rate, determined in accordance with the Facility Agreement, plus a spread of 0.75% to 1.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Credit line interest rate, percentage | ' | ' | 1.75% | 2.50% | ' | 0.75% | 1.50% | 2.80% | ' | ' | ' | ' | ' |
Cash, cash equivalents and marketable securities at financial institutions | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits or securities | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum net worth required for credit agreement | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of quarterly net income required for credit agreement | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum debt service coverage ratio | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum senior leverage ratio | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum quick ratio required for credit agreement | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undrawn available credit facility | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | ' | ' | ' | ' |
Movements_of_LongTerm_Loans_De
Movements of Long-Term Loans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Debt Instrument [Line Items] | ' | ' | ' |
Opening net book amount | $28,911 | $38,579 | ' |
Repayment during the year | -12,411 | -9,668 | -5,798 |
Closing net book amount | $16,500 | $28,911 | $38,579 |
Future_Maturities_of_LongTerm_
Future Maturities of Long-Term Debt (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
In Thousands, unless otherwise specified | |||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ' | ' | ' |
2015 | $6,000 | ' | ' |
2016 | 6,000 | ' | ' |
2017 | 4,500 | ' | ' |
Total | $16,500 | $28,911 | $38,579 |
Undrawn_Available_Credit_Facil
Undrawn Available Credit Facilities (Detail) (Short-term loans, USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | ||
Short-term loans | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Undrawn available credit facilities | $1,539 | $5,461 |
Severance_Liabilities_Detail
Severance Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Balance, beginning of the fiscal year | $4,382 | $4,420 | ' |
Charged to consolidated statements of operations | 71 | -38 | -58 |
Balance, end of the fiscal year | $4,453 | $4,382 | $4,420 |
Severance_Liabilities_Recogniz
Severance Liabilities Recognized in Balance Sheet (Detail) (USD $) | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Present value of defined benefit obligation | $4,453 | $4,382 | ' |
Total | $4,453 | $4,382 | $4,420 |
Severance_Costs_Recognized_in_
Severance Costs Recognized in Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Current service cost | $368 | $722 | $474 |
Interest cost | 207 | 211 | 198 |
Benefit paid | -223 | -4 | -81 |
Actuarial gain on obligation | -281 | -967 | -649 |
Total | $71 | ($38) | ($58) |
Principal_Actuarial_Assumption
Principal Actuarial Assumptions Used (Detail) | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.90% | 5.10% | 4.80% |
Future salary increases | 4.20% | 4.40% | 4.40% |
Effect_of_Recording_ShareBased
Effect of Recording Share-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Share-based compensation expense by type of award: | ' | ' | ' |
Share options | $802 | $1,864 | $3,443 |
Restricted share units | 4,745 | 3,236 | 1,206 |
Total share-based compensation expense | 5,547 | 5,100 | 4,649 |
Tax effect on share-based compensation expense | ' | ' | ' |
Net effect on share-based compensation expense | $5,547 | $5,100 | $4,649 |
ShareBased_Compensation_Expens
Share-Based Compensation Expense Recorded in Consolidated Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense | $5,547 | $5,100 | $4,649 |
Cost of revenue | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense | 1,182 | 1,105 | 1,546 |
Selling, general and administrative expense | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based compensation expense | $4,365 | $3,995 | $3,103 |
Share_Based_Compensation_Addit
Share Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total fair value of shares vested | $2,000,000 | $2,400,000 | $2,400,000 |
Total intrinsic value of options exercised | 2,200,000 | 800,000 | 3,300,000 |
Cash received from the exercise of share options | 4,600,000 | ' | ' |
Tax benefit realized | 0 | ' | ' |
Annualized dividend yield | 0.00% | ' | ' |
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes | 18,403 | 1,930 | ' |
Tax withholdings related to net share settlement of restricted share units | 327,000 | 21,000 | ' |
Employee Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award granted vesting period, year | '4 years | ' | ' |
Options expiration period, year | '7 years | ' | ' |
Award vesting percentage | 25.00% | ' | ' |
Restricted Shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award granted vesting period, year | '4 years | ' | ' |
Award granted, equal installments | 4 | ' | ' |
Total fair value of restricted share units vested | 2,400,000 | 1,000,000 | 600,000 |
Aggregate intrinsic value of restricted share units outstanding | 15,700,000 | ' | ' |
Restricted Shares | Non Employee Director | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award granted vesting period, year | '1 year | ' | ' |
Award vesting percentage | 100.00% | ' | ' |
Stock Plan 2010 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share options outstanding | 852,075 | ' | ' |
Ordinary shares available for future grant | 3,528,778 | ' | ' |
Stock Plan 2010 | Employee Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized share-based compensation expense | 200,000 | ' | ' |
Unrecognized compensation expense, weighted-average period for recognition | '1 year 1 month 21 days | ' | ' |
Stock Plan 2010 | Restricted Shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted share units outstanding | 762,295 | ' | ' |
Unrecognized share-based compensation expense | $4,500,000 | ' | ' |
Unrecognized compensation expense, weighted-average period for recognition | '2 years 9 months 4 days | ' | ' |
Stock Plan 1999 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share options outstanding | 13,815 | ' | ' |
Subsequent 36 months | Employee Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting percentage | 2.08% | ' | ' |
Over four years, commencing one month after the vesting commencement date | Employee Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting percentage | 2.08% | ' | ' |
Share_Option_Activity_Detail
Share Option Activity (Detail) (Stock Plan 1999 and 2010, USD $) | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |
Stock Plan 1999 and 2010 | ' | ' | ' |
Number of shares | ' | ' | ' |
Beginning balance | 1,277,311 | 1,470,290 | 1,349,126 |
Granted | ' | ' | 590,537 |
Exercised | -351,435 | -94,188 | -237,350 |
Forfeited | -26,276 | -44,443 | -218,296 |
Expired | -33,710 | -54,348 | -13,727 |
Ending balance | 865,890 | 1,277,311 | 1,470,290 |
Number of Exercisable Options, Ending balance | 666,305 | 750,949 | 532,646 |
Weighted-average exercise price per share | ' | ' | ' |
Beginning balance | $15.37 | $14.88 | $13.28 |
Granted | ' | ' | $14.82 |
Exercised | $13 | $5.96 | $4.22 |
Forfeited | $15.54 | $17.33 | $16.18 |
Expired | $16.93 | $16.97 | $18.38 |
Ending balance | $16.27 | $15.37 | $14.88 |
Weighted average grant date fair value | ' | ' | ' |
Granted | ' | ' | $14.82 |
Weighted_Average_Assumptions_f
Weighted Average Assumptions for Fair Value of Share Options Granted to Employees (Detail) | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Weighted Average Fair Values [Line Items] | ' | ' | ' |
Dividend yield | 0.00% | ' | ' |
Expected volatility | ' | ' | 61.30% |
Risk-free rate of return (percent) | ' | ' | 0.90% |
Expected term (in years) | '0 years | '0 years | '4 years 4 months 10 days |
Information_for_Share_Options_
Information for Share Options Outstanding (Detail) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 27, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 865,890 |
Options outstanding, weighted average remaining contractual life (years) | '3 years 8 months 5 days |
Options outstanding, aggregate intrinsic value | $3,924 |
Exercise Price 1 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 525 |
Exercise Price Per Share | $4.25 |
Options outstanding, weighted average remaining contractual life (years) | '2 months 1 day |
Exercise Price 2 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 500 |
Exercise Price Per Share | $4.75 |
Options outstanding, weighted average remaining contractual life (years) | '5 months 1 day |
Exercise Price 3 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 2,100 |
Exercise Price Per Share | $5 |
Options outstanding, weighted average remaining contractual life (years) | '7 months 17 days |
Exercise Price 4 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 1,400 |
Exercise Price Per Share | $5.25 |
Options outstanding, weighted average remaining contractual life (years) | '10 months 10 days |
Exercise Price 5 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 9,290 |
Exercise Price Per Share | $5.75 |
Options outstanding, weighted average remaining contractual life (years) | '2 years 2 months 19 days |
Exercise Price 6 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 8,368 |
Exercise Price Per Share | $13.77 |
Options outstanding, weighted average remaining contractual life (years) | '3 years 1 month 28 days |
Exercise Price 7 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 444,878 |
Exercise Price Per Share | $16.83 |
Options outstanding, weighted average remaining contractual life (years) | '3 years 3 months 18 days |
Exercise Price 8 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 30,000 |
Exercise Price Per Share | $15.05 |
Options outstanding, weighted average remaining contractual life (years) | '3 years 4 months 10 days |
Exercise Price 9 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 26,844 |
Exercise Price Per Share | $25.50 |
Options outstanding, weighted average remaining contractual life (years) | '3 years 6 months 18 days |
Exercise Price 10 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 7,400 |
Exercise Price Per Share | $26.16 |
Options outstanding, weighted average remaining contractual life (years) | '3 years 7 months 10 days |
Exercise Price 11 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 10,125 |
Exercise Price Per Share | $23.62 |
Options outstanding, weighted average remaining contractual life (years) | '3 years 10 months 6 days |
Exercise Price 12 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 97,968 |
Exercise Price Per Share | $15.16 |
Options outstanding, weighted average remaining contractual life (years) | '4 years 1 month 21 days |
Exercise Price 13 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 193,521 |
Exercise Price Per Share | $14.12 |
Options outstanding, weighted average remaining contractual life (years) | '4 years 4 months 13 days |
Exercise Price 14 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 25,160 |
Exercise Price Per Share | $19.36 |
Options outstanding, weighted average remaining contractual life (years) | '4 years 7 months 13 days |
Exercise Price Fifteen | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 5,550 |
Exercise Price Per Share | $18.60 |
Options outstanding, weighted average remaining contractual life (years) | '4 years 8 months 5 days |
Exercise Price Sixteen | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, outstanding | 2,261 |
Exercise Price Per Share | $12.83 |
Options outstanding, weighted average remaining contractual life (years) | '4 years 10 months 13 days |
Stock Plan 1999 and 2010 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Number of Shares Underlying Options, exercisable | 666,305 |
Options exercisable, weighted average remaining contractual life (years) | '3 years 6 months 26 days |
Options exercisable, aggregate intrinsic value | $2,922 |
Restricted_Share_Unit_Activity
Restricted Share Unit Activity (Detail) (Stock Option Plan 2010, Restricted Shares, USD $) | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |
Stock Option Plan 2010 | Restricted Shares | ' | ' | ' |
Schedule Of Share Based Compensation Restricted Stock Units Award Activity [Line Items] | ' | ' | ' |
Weighted-average grant date fair value, Granted | $15.37 | $12.42 | $14.37 |
Number of restricted share units | ' | ' | ' |
Number of restricted share units, beginning balance | 545,668 | 168,275 | 25,900 |
Number of restricted share units, Granted | 479,894 | 468,387 | 211,266 |
Number of restricted share units, Issued | -184,773 | -71,880 | -25,900 |
Number of restricted share units, Forfeited | -78,494 | -19,114 | -42,991 |
Number of restricted share units, ending balance | 762,295 | 545,668 | 168,275 |
Weighted Average Grant Date Fair Value Per Share | ' | ' | ' |
Weighted-average grant date fair value per share, Beginning Balance | $12.81 | $14.44 | $21.62 |
Weighted-average grant date fair value per share, Granted | $15.37 | $12.42 | $14.37 |
Weighted-average grant date fair value per share, Issued | $12.98 | $14.10 | $21.62 |
Weighted-average grant date fair value per share, Forfeited | $14.25 | $12.78 | $14.07 |
Weighted-average grant date fair value per share, Ending Balance | $14.23 | $12.81 | $14.44 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans -Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Defined Contribution Benefit Plans [Line Items] | ' | ' | ' |
Bonus distributions to employees | $5.10 | $3.70 | $1.70 |
Provident Fund | ' | ' | ' |
Defined Contribution Benefit Plans [Line Items] | ' | ' | ' |
Defined contribution plan, employer annual contribution | 2.1 | 2.2 | 2.3 |
Defined Contribution Pension Plan 401k | ' | ' | ' |
Defined Contribution Benefit Plans [Line Items] | ' | ' | ' |
Defined contribution plan, employer annual contribution | $0.20 | $0.20 | $0.20 |
Employees maximum contribution to 401 (K) Plan | 80.00% | ' | ' |
Percentage of employees' contribution, eligible for employer match | 100.00% | ' | ' |
Percentage of employees' annual contribution, eligible for employers match | 6.00% | ' | ' |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |
Shareholders Equity [Line Items] | ' | ' | ' |
Ordinary shares, authorized share capital | 500,000,000 | 500,000,000 | ' |
Ordinary shares, par value | $0.01 | $0.01 | ' |
Preferred shares, shares authorized | 5,000,000 | 5,000,000 | ' |
Preferred shares, par value | $0.01 | $0.01 | ' |
Ordinary shares issued upon vesting of restricted shares | 166,370 | 69,950 | 25,900 |
Stock Plan 1999 and 2010 | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' |
Ordinary shares issued upon exercise of options | 351,435 | 94,188 | 237,350 |
Ordinary shares issued upon exercise of options, weight average exercise price | $13 | $5.96 | 4.22 |
Recovered_Sheet4
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Outstanding bank guarantees given by banks on behalf of the company | $0.30 | $0.30 | ' |
Rental expense under operating leases | 0.8 | 0.8 | 1.8 |
Settlement of product failure losses | $0.50 | ' | ' |
Maximum | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Operating lease expiration year | '2020 | ' | ' |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments Due Under Non-Cancelable Leases (Detail) (USD $) | Jun. 27, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2015 | $988 |
2016 | 942 |
2017 | 928 |
2018 | 928 |
2019 | 441 |
Thereafter | 279 |
Total minimum operating lease payments | $4,506 |
Total_Revenues_by_Geographic_R
Total Revenues by Geographic Regions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ' | ' | ' |
Revenues | $677,854 | $641,542 | $564,732 |
North America | ' | ' | ' |
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ' | ' | ' |
Revenues | 326,647 | 299,510 | 272,659 |
Asia Pacific | ' | ' | ' |
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ' | ' | ' |
Revenues | 230,314 | 218,393 | 189,455 |
Europe | ' | ' | ' |
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ' | ' | ' |
Revenues | $120,893 | $123,639 | $102,618 |
Recovered_Sheet5
Business Segments and Geographic Information - Additional Information (Detail) (North America, USD $) | Jun. 27, 2014 | Jun. 28, 2013 |
In Millions, unless otherwise specified | ||
North America | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | $0.30 | $0.40 |
Total_Revenues_by_Percentage_f
Total Revenues by Percentage from Individual Customers Representing Ten Percent or More of Total Revenues (Detail) (Revenue, Customer Concentration Risk) | 12 Months Ended | |||||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | ||||
JDS Uniphase Corporation | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Concentration of risk percentage | 24.00% | 22.00% | 25.00% | |||
Oclaro, Inc. | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Concentration of risk percentage | 22.00% | [1] | 25.00% | [1] | 12.00% | [1] |
Finisar Corporation | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Concentration of risk percentage | ' | [2] | ' | [2] | 10.00% | |
[1] | Includes revenue of Opnext, Inc., which was acquired by Oclaro, Inc. in July 2012. | |||||
[2] | Less than 10% of total revenue / total accounts receivable. |
Accounts_Receivable_from_Indiv
Accounts Receivable from Individual Customers that were Equal to or Greater than Ten Percent of Accounts Receivable (Detail) (Accounts Receivable, Customer Concentration Risk) | 12 Months Ended | |||||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | ||||
JDS Uniphase Corporation | ' | ' | ' | |||
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items] | ' | ' | ' | |||
Concentration of risk percentage | 23.00% | 17.00% | 17.00% | |||
Oclaro, Inc. | ' | ' | ' | |||
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items] | ' | ' | ' | |||
Concentration of risk percentage | 14.00% | [1] | 31.00% | [1] | 30.00% | [1] |
Valeo | ' | ' | ' | |||
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items] | ' | ' | ' | |||
Concentration of risk percentage | 10.00% | ' | [2] | ' | [2] | |
EMCORE Corporation | ' | ' | ' | |||
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items] | ' | ' | ' | |||
Concentration of risk percentage | ' | [2] | ' | [2] | 12.00% | |
[1] | Includes revenue of Opnext, Inc., which was acquired by Oclaro, Inc. in July 2012. | |||||
[2] | Less than 10% of total revenue / total accounts receivable. |
Outstanding_Foreign_Currency_A
Outstanding Foreign Currency Assets and Liabilities (Detail) | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 28, 2013 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Thailand, Baht | Thailand, Baht | Thailand, Baht | Thailand, Baht | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi |
USD ($) | THB | USD ($) | THB | USD ($) | CNY | USD ($) | CNY | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency assets | $59,474 | $35,336 | $47,318 | 1,536,887 | $18,232 | 567,561 | $12,156 | 74,813 | $17,104 | 105,680 |
Foreign currency liabilities | $27,927 | $21,282 | $22,644 | 735,490 | $18,804 | 585,364 | $5,283 | 32,512 | $2,478 | 15,308 |
Financial_instruments_Addition
Financial instruments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | |
Financial Instrument [Line Items] | ' | ' | ' |
Unrealized gain (loss) from fair market value of derivatives | ($722,000) | $1,043,000 | $925,000 |
Forward Foreign Currency and Option Contracts | ' | ' | ' |
Financial Instrument [Line Items] | ' | ' | ' |
Unrealized gain (loss) from fair market value of derivatives | 100,000 | -800,000 | ' |
Forward Contracts | Thailand, Baht | Foreign exchange rates | ' | ' | ' |
Financial Instrument [Line Items] | ' | ' | ' |
Derivative contracts | ' | 23,000,000 | ' |
Forward Contracts | China, Yuan Renminbi | ' | ' | ' |
Financial Instrument [Line Items] | ' | ' | ' |
Derivative contracts | 0 | 0 | ' |
Options Held | Thailand, Baht | Foreign exchange rates | ' | ' | ' |
Financial Instrument [Line Items] | ' | ' | ' |
Derivative contracts | $15,000,000 | $5,000,000 | ' |
Income_Expenses_Related_to_Flo
Income Expenses Related to Flooding - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 | Jul. 31, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | |
Severe flooding in Thailand during October and November 2011 | Severe flooding in Thailand during October and November 2011 | Severe flooding in Thailand during October and November 2011 | Any and all flood-related losses | Claim for inventory losses | Claim for inventory losses | Other Flood-Related Settlements | Claim for Owned Equipment Losses | Claim for Business Interruption Losses | Claim for Damage to Buildings | ||||
Unusual or Infrequent Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income related to flooding | $45,211,000 | $29,465,000 | ' | ' | $45,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses related to flooding | ' | ' | ' | ' | 500,000 | 2,300,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from insurers for losses related to flooding | ' | ' | ' | ' | ' | ' | ' | 7,416,000 | 11,419,000 | ' | 16,200,000 | 13,143,000 | ' |
Proceeds from insurers in settlement of claims related to flood damage | 37,795,000 | 4,904,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 |
Payment for customer's losses as a result of flooding | ' | ' | ' | ' | ' | 37,700,000 | 5,200,000 | 2,200,000 | ' | 100,000 | ' | ' | ' |
Final payment by transferring equipment | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' |
Equipment transferred to customer | ' | ' | ' | ' | ' | 5,900,000 | ' | ' | ' | ' | ' | ' | ' |
Reduction of accounts receivable | -17,379,000 | -4,739,000 | 10,672,000 | ' | ' | 5,700,000 | ' | ' | ' | ' | ' | ' | ' |
Agreed amount of settlement for customers | ' | ' | ' | ' | ' | 6,500,000 | ' | ' | ' | ' | ' | ' | ' |
Payment for customer's losses as a result of flooding | ' | ' | ' | $2,200,000 | ' | $4,300,000 | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet6
Expenses Related to Reduction in Workforce - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2013 | Jun. 29, 2012 | Oct. 10, 2014 | Oct. 10, 2014 |
Employee | Subsequent Event | Subsequent Event | ||
Employee | ||||
Expenses Related to Reduction in Workforce [Line Items] | ' | ' | ' | ' |
Expenses incurred for severance cost and benefits | $2,052 | $1,978 | $1,000 | ' |
Termination of employees | 180 | ' | ' | 100 |
Subsidiaries_of_Group_Detail
Subsidiaries of Group (Detail) | 12 Months Ended |
Jun. 27, 2014 | |
Fabrinet Co., Ltd. | ' |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ' |
Business | 'Manufacturing and assembly |
Country of Incorporation | 'Thailand |
Percent interest | 99.99% |
Fabrinet USA, Inc. | ' |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ' |
Business | 'Marketing and administrative support services |
Country of Incorporation | 'United States of America (California) |
Percent interest | 100.00% |
FBN New Jersey Manufacturing, Inc. | ' |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ' |
Business | 'Manufacturing and assembly |
Country of Incorporation | 'United States of America (Delaware) |
Percent interest | 100.00% |
Fabrinet China Holdings | ' |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ' |
Business | 'Holding company |
Country of Incorporation | 'Mauritius Island |
Percent interest | 100.00% |
CASIX Inc. (a wholly-owned subsidiary of Fabrinet China Holdings) | ' |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ' |
Business | 'Manufacturing and assembly |
Country of Incorporation | 'People's Republic of China |
Percent interest | 100.00% |
Fabrinet Pte., Ltd. | ' |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ' |
Business | 'Sales and administrative support services and supply chain sourcing center |
Country of Incorporation | 'Singapore |
Percent interest | 100.00% |
Recovered_Sheet7
Revenue Recognition Error Related to Finished Goods Awaiting Shipment to Customers Under Certain Volume Supply Agreements with Customers - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $677,854 | $641,542 | $564,732 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 603,621 | 572,124 | 502,818 |
Net income (loss) | 10,333 | 47,662 | 14,539 | 19,197 | 15,142 | 21,126 | 16,682 | 16,019 | 91,731 | 68,969 | -56,467 |
Revenue Recognition Error Related to Finished Goods Awaiting Shipment to Customers | Restatement Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | 12,777 | 1,964 | -6,350 | 2,706 | ' | ' | ' | ' | 11,096 | ' | ' |
Cost of revenues | 11,520 | 1,771 | -5,726 | 2,440 | ' | ' | ' | ' | 10,005 | ' | ' |
Net income (loss) | $1,257 | $193 | ($625) | $266 | ' | ' | ' | ' | $1,091 | ' | ' |
Recovered_Sheet8
Unaudited Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $160,084 | $167,657 | $178,562 | $171,551 | $159,934 | $155,557 | $167,426 | $158,625 | ' | ' | ' |
Gross profit | 17,775 | 17,283 | 20,530 | 18,645 | 17,071 | 16,255 | 18,370 | 17,722 | 74,233 | 69,418 | 61,914 |
Net income | $10,333 | $47,662 | $14,539 | $19,197 | $15,142 | $21,126 | $16,682 | $16,019 | $91,731 | $68,969 | ($56,467) |
Basic net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $0.29 | $1.36 | $0.42 | $0.55 | $0.44 | $0.61 | $0.48 | $0.46 | $2.63 | $2 | ($1.64) |
Weighted-average shares used in basic net income per share calculations | 35,117 | 35,078 | 34,882 | 34,674 | 34,629 | 34,596 | 34,517 | 34,485 | 34,938 | 34,557 | 34,382 |
Diluted net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $0.29 | $1.33 | $0.41 | $0.55 | $0.43 | $0.61 | $0.48 | $0.46 | $2.58 | $1.98 | ($1.64) |
Weighted-average shares used in diluted net income per share calculations | 35,843 | 35,790 | 35,583 | 35,138 | 35,000 | 34,909 | 34,804 | 34,670 | 35,589 | 34,846 | 34,382 |
Effects_of_Restatement_on_Cons
Effects of Restatement on Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 27, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Dec. 28, 2012 | Sep. 28, 2012 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 29, 2012 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $677,854 | $641,542 | $564,732 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 603,621 | 572,124 | 502,818 |
Net income (loss) | 10,333 | 47,662 | 14,539 | 19,197 | 15,142 | 21,126 | 16,682 | 16,019 | 91,731 | 68,969 | -56,467 |
Revenue Recognition Error Related to Finished Goods Awaiting Shipment to Customers | Restatement Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | 12,777 | 1,964 | -6,350 | 2,706 | ' | ' | ' | ' | 11,096 | ' | ' |
Cost of revenues | 11,520 | 1,771 | -5,726 | 2,440 | ' | ' | ' | ' | 10,005 | ' | ' |
Net income (loss) | $1,257 | $193 | ($625) | $266 | ' | ' | ' | ' | $1,091 | ' | ' |