Fabrinet (FN) 10-K 19 Aug 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 26, 2015	Aug. 07, 2015	Dec. 26, 2014
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 26, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	FN
Entity Registrant Name	FABRINET
Entity Central Index Key	1,408,710
Current Fiscal Year End Date	--06-26
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		35,440,694
Entity Public Float			$ 594,264,000

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014
Current assets
Cash and cash equivalents	$ 112,978	$ 233,477
Marketable securities	142,866
Trade accounts receivable, net	134,952	101,168
Inventory, net	130,613	124,570
Deferred tax assets	1,662	1,561
Prepaid expenses	2,135	1,691
Other current assets	1,833	2,010
Total current assets	527,039	464,477
Non-current assets
Property, plant and equipment, net	140,654	97,244
Intangibles, net	137	72
Deferred tax assets	2,249	1,775
Deferred debt issuance costs	2,424	989
Total non-current assets	145,464	100,080
Total assets	672,503	564,557
Current liabilities
Bank borrowings, including revolving loan and current portion of long-term loan from banks	36,000	6,000
Trade accounts payable	115,319	94,853
Income tax payable	1,470	1,024
Accrued payroll, bonus and related expenses	9,804	8,612
Accrued expenses	6,405	4,345
Other payables	12,050	5,795
Total current liabilities	181,048	120,629
Non-current liabilities
Long-term loans from bank, non-current portion	4,500	10,500
Deferred tax liability	737	1,040
Severance liabilities	5,477	4,453
Other non-current liabilities	1,797	1,099
Total non-current liabilities	12,511	17,092
Total liabilities	$ 193,559	$ 137,721
Commitments and contingencies (Note 17)
Shareholders' equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of June 26, 2015 and June 27, 2014)
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 35,437,654 shares and 35,152,772 shares issued and outstanding as of June 26, 2015 and June 27, 2014, respectively)	$ 354	$ 352
Additional paid-in capital	89,390	80,882
Retained earnings	389,244	345,602
Accumulated other comprehensive loss	(44)
Total shareholders' equity	478,944	426,836
Total Liabilities and Shareholders' Equity	$ 672,503	$ 564,557

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 26, 2015	Jun. 27, 2014
Preferred shares, shares authorized	5,000,000	5,000,000
Preferred shares, par value	$ 0.01	$ 0.01
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, par value	$ 0.01	$ 0.01
Ordinary shares, shares issued	35,437,654	35,152,772
Ordinary shares, shares outstanding	35,437,654	35,152,772

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Revenues	$ 773,587	$ 677,854	$ 641,542
Cost of revenues	(685,814)	(603,621)	(572,124)
Gross profit	87,773	74,233	69,418
Selling, general and administrative expenses	(39,460)	(27,664)	(23,787)
Income related to flooding		44,748	27,211
Expenses related to reduction in workforce	(1,153)		(2,052)
Operating income	47,160	91,317	70,790
Interest income	1,253	1,793	1,083
Interest expense	(616)	(713)	(1,010)
Foreign exchange (loss) gain, net	(19)	(24)	354
Other (expense) income	(152)	797	692
Income before income taxes	47,626	93,170	71,909
Income tax expense	(3,984)	(1,439)	(2,940)
Net income	43,642	91,731	68,969
Other comprehensive loss, before tax:
Change in fair value of marketable securities	(193)
Less: Reclassification adjustment for net loss realized and included in net income	149
Total change in unrealized loss on marketable securities, before tax	(44)
Income tax expense related to items of other comprehensive loss	0	0	0
Net current-period other comprehensive loss	(44)
Net comprehensive income	$ 43,598	$ 91,731	$ 68,969
Earnings per share
Basic	$ 1.23	$ 2.63	$ 2
Diluted	$ 1.21	$ 2.58	$ 1.98
Weighted average number of ordinary shares outstanding (thousands of shares)
Basic	35,354	34,938	34,557
Diluted	35,984	35,589	34,846

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Ordinary Shares	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance (in shares) at Jun. 29, 2012		34,470,829
Beginning Balance at Jun. 29, 2012	$ 250,709	$ 345	$ 65,462	$ 184,902
Net income	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 (in shares) at Jun. 28, 2013		34,634,967
Ending Balance at Jun. 28, 2013	325,318	$ 346	71,101	253,871
Net income	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 (in shares) at Jun. 27, 2014		35,152,772
Ending Balance at Jun. 27, 2014	426,836	$ 352	80,882	345,602
Net income	43,642			43,642
Other comprehensive loss	(44)				$ (44)
Share-based compensation expense	8,027		8,027
Issuance of ordinary shares (in shares)		284,882
Issuance of ordinary shares	835	$ 2	833
Tax withholdings related to net share settlement of restricted share units	(352)		(352)
Ending Balance (in shares) at Jun. 26, 2015		35,437,654
Ending Balance at Jun. 26, 2015	$ 478,944	$ 354	$ 89,390	$ 389,244	$ (44)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Cash flows from operating activities
Net income for the year	$ 43,642	$ 91,731	$ 68,969
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	12,878	10,565	9,994
Amortization of intangibles	69	93	217
Gain on disposal of property, plant and equipment	(42)	(28)	(24)
Loss from sales and maturities of marketable securities	120
Amortization of investment premium	985
Amortization of deferred debt issuance costs	527
Income related to flooding		(45,211)	(29,465)
Allowance for doubtful accounts (reversal of)	13	(72)	(94)
Unrealized loss (gain) on exchange rate and fair value of derivative	671	722	(1,043)
Share-based compensation	8,027	5,547	5,100
Deferred income tax	(878)	65	2,086
Other non-cash expenses (income)	1,722	634	(89)
Reversal of uncertain tax positions		(1,538)
Inventory obsolescence (reversal of)	397	443	(584)
Loss from written-off assets and liabilities to third parties due to flood losses			2,255
Changes in operating assets and liabilities
Trade accounts receivable	(33,797)	17,379	4,739
Inventory	(6,440)	(36,051)	14,229
Other current assets and non-current assets	(283)	(1,035)	(1,207)
Trade accounts payable	20,466	17,714	(8,861)
Income tax payable	446	737	(5)
Other current liabilities and non-current liabilities	4,106	4,951	(35)
Liabilities to third parties due to flood losses		(7,512)	(41,994)
Net cash provided by operating activities	52,629	66,550	48,750
Cash flows from investing activities
Purchase of marketable securities	(203,407)
Proceeds from sales of marketable securities	29,036
Proceeds from maturities of marketable securities	30,356
Purchase of property, plant and equipment	(51,398)	(10,835)	(10,793)
Purchase of intangibles	(134)	(1)	(2)
Proceeds from disposal of property, plant and equipment	48	29	29
Proceeds from insurers in settlement of claims related to flood damage		37,795	4,904
Net cash (used in) provided by investing activities	(195,499)	26,988	(5,862)
Cash flows from financing activities
Payment of debt issuance costs	(1,946)
Proceeds from revolving loan	30,000
Repayment of long-term loans from bank	(6,000)	(12,411)	(9,668)
Proceeds from issuance of ordinary shares under employee share option plan	835	4,567	561
Withholding tax related to net share settlement of restricted share units	(352)	(327)	(21)
Net cash provided by (used in) financing activities	22,537	(8,171)	(9,128)
Net (decrease) increase in cash and cash equivalents	(120,333)	85,367	33,760
Movement in cash and cash equivalents
Cash and cash equivalents at beginning of period	233,477	149,716	115,507
(Decrease) increase in cash and cash equivalents	(120,333)	85,367	33,760
Effect of exchange rate on cash and cash equivalents	(166)	(1,606)	449
Cash and cash equivalents at end of period	112,978	233,477	149,716
Cash paid for
Interest	590	709	1,014
Taxes	2,841	198	260
Cash received for interest	749	1,672	873
Non-cash investing and financing activities
Fixed assets-related payable	$ 6,026	1,130	1,361
Claim for Business Interruption Losses
Adjustments to reconcile net income 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 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. 26, 2015
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, medical devices, 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, complex printed circuit board assembly, 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. (“Casix”), Fabrinet Pte., Ltd., Fabrilink SEZC, Fabrinet West, Inc., and Fabritek, Inc. Fabrilink SEZC, Fabrinet West, Inc., and Fabritek, Inc. were incorporated in January 2015. Asia Pacific Growth Fund III, L.P. and its affiliates held 8.9%, 8.8% and 17.8% of Fabrinet’s share capital (fully diluted) as of June 26, 2015, June 27, 2014, and June 28, 2013, 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 accounti

Summary of significant accounting policies	12 Months Ended
	Jun. 26, 2015
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 2015, fiscal year 2014, and fiscal year 2013 ended on June 26, 2015, June 27, 2014 and June 28, 2013, respectively, and consisted of 52 weeks, 52 weeks and 52 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 original maturities of three months or less at the date of purchase are classified as cash equivalents. Cash and cash equivalents consist of cash deposited in checking accounts, time deposits with maturities of less than three months, money market accounts, and marketable securities with maturities of three months or less at the date of purchase. Marketable securities Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s marketable securities generally range from three months to three years. The Company’s marketable securities consist of investment in U.S. Treasuries and fixed income securities and have been classified and accounted for as available-for-sale. The Company’s investments in marketable securities are primary classified as available-for-sale securities and reported at fair value. Unrealized gains and losses related to changes in the fair value of securities are recognized in accumulated other comprehensive income, net of tax, in the Company’s consolidated balance sheets. Changes in the fair value of available-for-sale securities impact the Company’s net income only when such securities are sold or other-than-temporary impairment is recognized. Realized gains and losses on the sale of securities are determined by specific identification of each security’s cost basis. The Company reviews its marketable securities on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issue and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized cost basis. If the Company believes that an other-than-temporary decline exists in one of these securities, the Company will write down these investments to fair value. 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 and comprehensive income. 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 and comprehensive income 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 The derivatives assets and liabilities 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”). The Company does not have any derivatives designated as either fair value or cash flow hedges. Accordingly, the change in the fair value of the derivatives is recorded in foreign exchange (loss) gain on the consolidated statement of operations and comprehensive income. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, marketable securities, derivatives, and accounts receivable. Cash, cash equivalents, and marketable securities 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 limits its investments in marketable securities to securities with a maturity not in excess of three years, and all marketable securities that the Company invests in are rated A1, P-1, F1, or better. 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. Services revenue of $32.3 million, $25.5 million, and $24.1 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, respectively. 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. Certain customers may request the Company to store finished products purchased by them at the Company’s warehouse. In these instances, the Company receives a written request from the customer asking the Company to hold the inventory at the Company’s warehouse and the ordered goods are segregated in the Company’s warehouse from other inventory and cannot be used to fulfil other customer orders. In these situations revenue is only recognized when persuasive evidence of the sales arrangement exists, the goods are completed and ready for shipment, pricing is fixed or determinable, collection is reasonably assured, and title and risk of loss have passed to the customer. 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 $0.03 million, $0.02 million, and $0.02 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, 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 Fabrinet USA, Inc., FBN New Jersey Manufacturing, Inc., and Fabrinet West Inc., its 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 authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of both positive and negative evidence and the relative weight of the evidence. The Company has determined that it is more likely than not that deferred tax asset attributable to a subsidiary in the United States will not be realized, primarily due to uncertainties related to its ability to utilize its net operating loss carryforward before they expire. Accordingly, the Company has established a valuation allowance for such deferred tax asset. If there is a change in the Company’s ability to realize its deferred tax assets for which a valuation allowance has been established, then its tax provision may decrease in the period in which it determines that realization is more likely than not. Likewise, if the Company determines that it is not more likely than not that its deferred tax assets will be realized, then a valuation allowance may be established for such deferred tax assets and the Company’s tax provision may increase in the period in which it makes the determination. 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 July 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The update provides the guidance that an entity, that measured inventory by using first-in, first-out or average cost, should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out or the retail inventory method. The update is effective for fiscal years beginning after December 15, 2016, including interim periods within these fiscal years. This update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting date. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. ASU No. 2015-02 amended the process that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU No. 2015-02 is effective for fiscal years, and for interim periods within those fiscal years beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. The objective of this amendment is to reduce the complexity in accounting standards by eliminating the concept of extraordinary items from U.S. GAAP. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The following criteria must both be met for extraordinary classification: (a) the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity; and (b) the underlying event or transaction should not reasonably be expected to recur in the foreseeable future. This amendment is effective for fiscal years and interim periods beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect that the adoption of this update will have an effect on its consolidated financial statements. 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 of 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.

Income taxes

Income taxes	12 Months Ended
	Jun. 26, 2015
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 $27.0 million, $73.0 million and $50.3 in the years ended June 26, 2015, June 27, 2014 and June 28, 2013, 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 were reduced from 23% in fiscal year 2013 to 20% in fiscal year 2014, fiscal year 2015, and fiscal year 2016. People’s Republic of China Casix had been granted a tax privilege to reduce its corporate income tax rate from 25% to 15%, but the privilege expired on December 31, 2013. As a result, the corporate income tax rate for Casix has been 25% since January 2014. The Company’s income tax expense consisted of the following: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Current $ 4,191 $ 2,304 $ 239 Deferred (207 ) (865 ) 2,701 Total income tax expense $ 3,984 $ 1,439 $ 2,940 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 26, June 27, June 28, Income before income taxes (1) $ 47,626 $ 93,170 $ 71,909 Tax expense calculated at a statutory corporate income tax rate of 20% (2014: 20% and 2013: 23%) 9,525 18,634 16,539 Effect of income taxes from locations with tax rates different from Thailand 1,134 (2 ) (457 ) Income not subject to tax (2) (7,094 ) (15,648 ) (12,728 ) Income tax on unremitted earnings (reversal of) 1,263 (259 ) 466 Effect of different tax rate in relation to deferred tax utilization (3) (221 ) (662 ) (303 ) Effect of foreign exchange rate adjustment (365 ) (380 ) (90 ) Tax rebate from research and development application (102 ) — — Insurance proceeds from equipment claim due to flooding — — (516 ) Reversal of reserve fixed assets damaged from flooding — (251 ) — Others (156 ) 7 29 Corporate income tax expense $ 3,984 $ 1,439 $ 2,940 (1) Income before income taxes was mostly generated from domestic income in the Cayman Islands. (2 ) 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 not subject to tax per ordinary share on a diluted basis (in dollars) was $0.20, $0.44 and $0.37 for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, respectively. (3) The balances were effect of different tax rate in relation to the rate recognized deferred taxes in fiscal year 2015 and the rate when deferred taxes will be utilized in the following fiscal years. The Company’s deferred tax assets and deferred tax liabilities, net of valuation allowance, at each balance sheet date are as follows: Years Ended (amount in thousands) June 26, June 27, Deferred tax assets: Depreciation $ 1,057 $ 979 Severance liability 1,192 796 Reserve and allowance 1,648 1,561 Others 14 — Total 3,911 3,336 Deferred tax liabilities: Deferred tax from unremitted earning (737 ) (1,040 ) Total (737 ) (1,040 ) Net $ 3,174 $ 2,296 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 26, June 27, Deferred income tax assets—current $ 1,662 $ 1,561 Deferred income tax liabilities—current — — Current deferred income tax—net 1,662 1,561 Deferred income tax assets—non current 3,253 1,775 Deferred income tax liabilities—non current (737 ) (1,040 ) Less: Valuation allowance (1,004 ) — Non-current deferred income tax—net 1,512 735 Net deferred income tax assets $ 3,174 $ 2,296 As of June 26, 2015, the Company recognized deferred tax assets of $1.0 million from tax net operating loss carrying forward of a subsidiary of the Company. Utilization of the tax net operating losses carrying forward may be subject to substantial limitations according to the subsidiary’s future operation, which may result in the reduced utilization of a portion of the Company’s net operating losses. 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 $50.9 million and $37.2 million as of June 26, 2015 and June 27, 2014, respectively. Unrecognized deferred tax liabilities for such unremitted earnings were $2.6 million and $2.6 million as of June 26, 2015 and June 27, 2014, respectively. Deferred tax liabilities of $0.7 million and $1.0 million have been established for withholding tax on the unremitted earnings of Casix, which included in non-current deferred tax liability as of June 26, 2015 and June 27, 2014, respectively. Uncertain income tax positions Interest and penalties related to uncertain tax positions are recognized in income tax expense. The Company had approximately $0.2 million and $0.04 million of accrued interest and penalties related to uncertain tax positions on the consolidated balance sheets as of June 26, 2015 and June 27, 2014, respectively. The Company recorded (reversed) interest and penalties of $0.1 million, ($0.6 million) and ($0.1 million) for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, respectively, in the consolidated statements of operations and comprehensive income. With regard to the Thailand jurisdiction, tax years 2010 through 2014 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 26, 2015, June 27, 2014, and June 28, 2013 included in other non-current liabilities. (amount in thousands) As of June 26, 2015 As of June 27, 2014 As of June 28, 2013 Beginning balance $ 868 $ 1,167 $ 1,124 Additions during the year 552 510 358 Reductions for tax positions of prior years — (809 ) (315 ) Ending balance $ 1,420 $ 868 $ 1,167

Earnings per ordinary share

Earnings per ordinary share	12 Months Ended
	Jun. 26, 2015
Earnings per ordinary share	4. Earnings per ordinary share Basic earnings per ordinary share is computed by dividing reported net income by the weighted average number of ordinary shares outstanding during each period. Diluted earnings per ordinary share is computed by dividing reported net income 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 26, June 27, 2014 June 28, 2013 Net income attributable to shareholders $ 43,642 $ 91,731 $ 68,969 Weighted-average number of ordinary shares outstanding (thousands of shares) 35,354 34,938 34,557 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 630 651 289 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 35,984 35,589 34,846 Basic earnings per ordinary share $ 1.23 $ 2.63 $ 2.00 Diluted earnings per ordinary share $ 1.21 $ 2.58 $ 1.98 Outstanding share options excluded in the computation of diluted earnings per ordinary share (1) 39,544 44,369 1,129,933 (1) These share options were not included in the computation of diluted earnings per ordinary share for fiscal year 2015, 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.

Cash, cash equivalents and mark

Cash, cash equivalents and marketable securities	12 Months Ended
	Jun. 26, 2015
Cash, cash equivalents and marketable securities	5. Cash, cash equivalents and marketable securities The Company’s cash, cash equivalents, and marketable securities can be analyzed as follows: Fair Value (amount in thousands) Carrying Cost Unrealized Cash and Marketable As of June 26, 2015 Cash $ — $ — $ 105,548 $ — Cash equivalents 7,430 — 7,430 — Corporate bonds and commercial papers 120,144 (43 ) — 120,101 U.S. agency and U.S. treasury securities 21,029 (2 ) — 21,027 Sovereign and municipal securities 1,737 1 — 1,738 Total $ 150,340 $ (44 ) $ 112,978 $ 142,866 Fair Value (amount in thousands) Carrying Unrealized Cash and Marketable As of June 27, 2014 Cash $ — $ — $ 214,283 $ — Cash equivalents — — 19,194 — Total $ — $ — $ 233,477 $ — The cash equivalents include short term bank deposits, investments in money market funds, and marketable securities with maturities of less than three months. The effective interest rate on short term bank deposits was 0.66% and 1.01% per annum for the years ended June 26, 2015 and June 27, 2014, respectively. As of June 26, 2015, 66.4% of our cash and cash equivalents were held by the Parent Company. The following table summarizes the cost and estimated fair value of marketable securities classified as available-for-sale securities based on stated effective maturities as of June 26, 2015: (amount in thousands) Carrying Cost Fair Value Due within one year $ 30,461 $ 30,458 Due between one to three years 112,449 112,408 Total $ 142,910 $ 142,866 During the year ended June 26, 2015, the net realized loss recognized by the Company was $0.1 million. As of June 26, 2015, the Company considered the declines in market value of its marketable securities investment portfolio to be temporary in nature and did not consider any of its securities other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. No impairment losses were recorded for the year ended June 26, 2015. As of June 26, 2015, cash, cash equivalents, and marketable securities included bank deposits of $40.0 million held in various financial institutions located in the United States in order to support the availability of the Facility Agreement and comply with covenants. Under the terms and conditions of the Facility Agreement, the Company shall maintain cash, cash equivalents and/or marketable securities in an aggregate amount not less than $40.0 million in unencumbered deposits, and/or securities in accounts located in the United States at all times during the term of the Facility Agreement. As discussed in Note 11, the Company must comply with this covenant from and after the effective date of the Facility Agreement.

Fair Value

Fair Value	12 Months Ended
	Jun. 26, 2015
Fair Value	6. Fair Value The following table provides details of the financial instruments measured at fair value on a recurring basis, including: Fair Value Measurements at Reporting Date (amount in thousands) Level 1 Level 2 Level 3 Total As of June 26, 2015 Assets Cash equivalents $ — $ 7,430 $ — $ 7,430 Corporate bonds and commercial papers — 120,101 — 120,101 U.S. agency and U.S. treasury securities — 21,027 — 21,027 Sovereign and municipal securities — 1,738 — 1,738 Derivative assets — 4 (1) — 4 Total $ — $ 150,300 $ — $ 150,300 Liabilities Derivative liabilities $ — $ 371 (2) $ — $ 371 Total $ — $ 371 $ — $ 371 Fair Value Measurements at Reporting Date (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 (3) — 135 Total $ — $ 19,329 $ — $ 19,329 Liabilities Derivative liabilities $ — $ 1 (4) $ — $ 1 Total $ — $ 1 $ — $ 1 (1) Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian dollars 0.4 million. (2) Foreign currency options with notional amount of $41.0 million. (3) Foreign currency options with notional amount of $15.0 million. (4) Foreign currency forward contracts with notional amount of Canadian dollars 0.9 million. Derivative Financial Instruments The Company uses foreign currency exchange contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities and does not use derivatives for speculative purposes. 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 26, 2015 and June 27, 2014 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 assets and accrued expenses, respectively, on the audited consolidated balance sheets. The change in fair value of derivatives is recorded in foreign exchange gain (loss) on the audited consolidated of operations and comprehensive income.

Allowance for doubtful accounts

Allowance for doubtful accounts	12 Months Ended
	Jun. 26, 2015
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 26, 2015 June 27, 2014 June 28, 2013 Balance, beginning of period $ 37 $ 109 $ 203 Charged to Expense/(Credited to Income) 13 (72 ) (94 ) Balance, end of period $ 50 $ 37 $ 109

Inventory

Inventory	12 Months Ended
	Jun. 26, 2015
Inventory	8. Inventory (amount in thousands) As of June 26, 2015 As of June 27, 2014 Raw materials $ 46,065 $ 40,885 Work in progress 69,174 56,376 Finished goods 11,843 22,970 Goods in transit 6,488 6,899 133,570 127,130 Less: Inventory obsolescence (2,957 ) (2,560 ) Inventory, net $ 130,613 $ 124,570

Property, plant and equipment,

Property, plant and equipment, net	12 Months Ended
	Jun. 26, 2015
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 Building Manufacturing Office Motor Computers Construction Total As of June 26, 2015 Cost $ 26,672 $ 86,926 $ 79,825 $ 5,378 $ 528 $ 13,196 $ 10,198 $ 222,723 Less: Accumulated depreciation — (21,016 ) (47,017 ) (3,343 ) (458 ) (10,235 ) — (82,069 ) Net book value $ 26,672 $ 65,910 $ 32,808 $ 2,035 $ 70 $ 2,961 $ 10,198 $ 140,654 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 On February 24, 2015, one of Fabrinet’s subsidiaries purchased a building of approximately 74,000 square feet and the associated 4.05 acres of land located in Santa Clara, California, for the purpose of expanding the Company’s manufacturing facilities in the United States. The purchase price of the land and building was $12.3 million and $13.2 million, respectively. Depreciation expense amounted to $12.9 million, $10.6 million, and $10.0 million for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, respectively and have been allocated between cost of revenues and selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. 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 26, 2015, June 27, 2014, and June 28, 2013 amounted to $1.1 million, $2.6 million and $0.3 million, respectively. There was no interest expense capitalized in construction in progress during the years ended June 26, 2015 and June 27, 2014, respectively.

Intangibles

Intangibles	12 Months Ended
	Jun. 26, 2015
Intangibles	10. Intangibles The following tables present details of the Company’s intangibles: (amount in thousands) Gross Carrying Accumulated Net As of June 26, 2015 Software $ 3,357 $ (3,220 ) $ 137 Total intangibles $ 3,357 $ (3,220 ) $ 137 (amount in thousands) Gross Carrying Accumulated Net As of June 27, 2014 Software $ 3,458 $ (3,386 ) $ 72 Total intangibles $ 3,458 $ (3,386 ) $ 72 The Company recorded amortization expense relating to intangibles of $0.1 million, $0.1 million and $0.2 million for the years ended June 26, 2015, June 27, 2014, and June 28, 2013, respectively. Based on the carrying amount of intangibles as of June 26, 2015, 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) 2016 $ 32 2017 28 2018 27 2019 27 2020 23 Total $ 137

Borrowings

Borrowings	12 Months Ended
	Jun. 26, 2015
Borrowings	11. Borrowings The Company’s total borrowing, including revolving and long-term borrowings, consisted of the following: (amount in thousands) Rate (1) Conditions Maturity As of As of Short-term borrowing: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months July 2015 (2) $ 30,000 $ — Current portion of long-term borrowing 6,000 6,000 $ 36,000 $ 6,000 Long-term borrowing: LIBOR + 2.8% per annum Repayable in quarterly installments within 6 years March 2017 $ 10,500 $ 16,500 Less: (6,000 ) (6,000 ) Non-current portion $ 4,500 $ 10,500 (1) LIBOR is London Interbank Offered Rate. (2) On July 14, 2015, the Company sent a notice to the bank to renew the maturity date of this revolving borrowing. The bank approved the notice and extended the maturity date to August 20, 2015. On April 25, 2014, a subsidiary of the Company entered into an amendment to the bank borrowing 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 26, 2015 and June 27, 2014 was $50.0 million and $52.3 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 an effective shareholding ratio. The carrying amounts of bank borrowings approximate their fair value. As of June 26, 2015 and June 27, 2014, the Company was in compliance with its long-term bank borrowing agreement. In addition to financial ratios, certain of the Company’s credit facilities include customary events of default. The movements of long-term loans were as follows for years ended June 26, 2015 and June 27, 2014: Years ended (amount in thousands) June 26, 2015 June 27, 2014 Opening net book amount $ 16,500 $ 28,911 Repayment during the period (6,000 ) (12,411 ) Closing net book amount $ 10,500 $ 16,500 As of June 26, 2015, future maturities of long-term debt were as follows at the end of each fiscal year below: (amount in thousands) 2016 $ 6,000 2017 4,500 Total $ 10,500 Credit facilities: Fabrinet 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. On February 26, 2015, the Company entered into the Second Amendment to the Facility Agreement. The amendment extended the availability period for draws on the term loan facility from May 21, 2015 to July 31, 2015. It also allows the Company, upon the satisfaction of certain conditions, to designate from time to time one or more of its subsidiaries as borrowers under the Facility Agreement. On July 31, 2015, the Company entered into the Third Amendment to the Facility Agreement. The amendment extended the availability period for draws on the term loan facility from July 31, 2015 to July 31, 2016. As of June 26, 2015, the outstanding revolving borrowing under the Facility Agreement was $30.0 million, resulting in available credit facilities of $170.0 million. Borrowings under the revolving credit facility are classified as current liabilities in the audited consolidated balance sheet as the Company has the periodic option to renew, or pay all or a portion of, the outstanding balance at the end of the maturity date, which is in the range of 1 to 6 months, without premium or penalty, upon notice to the administrative agent. On July 14, 2015, the Company sent a notice to the bank to renew the maturity date of this revolving borrowing. The bank approved the notice and extended the maturity date to August 20, 2015. 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. 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 is required to 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. As of June 26, 2015, the Company was in compliance with all covenants under the Facility Agreement. 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. Fabrinet intends to use the proceeds of the credit line to finance its future manufacturing buildings in the United States and 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 classified by available period of future borrowing as of June 26, 2015 and June 27, 2014 were as follows: (amount in thousands) June 26, 2015 June 27, 2014 Short-term $ 1,480 $ 1,539 Long-term $ 170,000 $ —

Severance liabilities

Severance liabilities	12 Months Ended
	Jun. 26, 2015
Severance liabilities	12. Severance liabilities The following table provides the information of the severance liabilities: (amount in thousands) As of June 26, 2015 As of June 27, 2014 Balance, beginning of the fiscal year $ 4,453 $ 4,382 Charged to consolidated statements of operations 1,024 71 Balance, end of the fiscal year $ 5,477 $ 4,453 The amount recognized in the consolidated balance sheets under non-current liabilities was determined as follows: (amount in thousands) As of June 26, 2015 As of June 27, 2014 Present value of defined benefit obligation $ 5,477 $ 4,453 Total $ 5,477 $ 4,453 The amount recognized in the consolidated statements of operations and comprehensive income was as follows: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Current service cost $ 360 $ 368 $ 722 Interest cost 203 207 211 Benefit paid (10 ) (223 ) (4 ) Actuarial loss (gain) on obligation 471 (281 ) (967 ) Total $ 1,024 $ 71 $ (38 ) The principal actuarial assumptions used were as follows: Years Ended June 26, 2015 June 27, 2014 June 28, 2013 Discount rate 4.0 % 4.9 % 5.1 % Future salary increases 4.2 % 4.2 % 4.4 %

Share-based compensation

Share-based compensation	12 Months Ended
	Jun. 26, 2015
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 26, 2015, June 27, 2014 and June 28, 2013 was as follows: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Share-based compensation expense by type of award: Share options $ 226 $ 802 $ 1,864 Restricted share units 7,801 4,745 3,236 Total share-based compensation expense 8,027 5,547 5,100 Tax effect on share-based compensation expense — — — Net effect on share-based compensation expense $ 8,027 $ 5,547 $ 5,100 Share-based compensation expense was recorded in the consolidated statements of operations and comprehensive income as follows: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Cost of revenue $ 1,450 $ 1,182 $ 1,105 Selling, general and administrative expense 6,577 4,365 3,995 Total share-based compensation expense $ 8,027 $ 5,547 $ 5,100 The Company did not capitalize any share-based compensation expense as part of any asset costs during the years ended June 26, 2015, June 27, 2014 and June 28, 2013. Share-based award activity Share options have been granted to directors and employees. As of June 26, 2015, there were 6,590 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 26, 2015, there were an aggregate of 785,429 share options outstanding, 1,140,927 restricted share units outstanding and 2,939,135 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- 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 ) $ 13.00 Forfeited (26,276 ) $ 15.54 Expired (33,710 ) $ 16.93 Balance as of June 27, 2014 865,890 666,305 $ 16.27 Granted — — — Exercised (56,968 ) $ 14.67 Forfeited (8,347 ) $ 15.90 Expired (8,556 ) $ 21.44 Balance as of June 26, 2015 792,019 758,451 $ 16.33 Expected to vest as of June 26, 2015 789,048 $ 16.33 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 26, 2015, June 27, 2014, and June 28, 2013 was $1.1 million, $2.0 million, and $2.4 million, respectively. The total intrinsic value of options exercised during the years ended June 26, 2015, June 27, 2014, and June 28, 2013 was $0.2 million, $2.2 million, and $0.8 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 $0.8 million during the year ended June 26, 2015. Valuation Method Expected Dividend Expected Volatility Risk-Free Interest Rate Expected Term Vesting Period Fair Value The following summarizes information for share options outstanding as of June 26, 2015 under the share options plan: Number of Exercise Price Per Weighted Average Aggregate Intrinsic Value (amount in thousands) 6,590 $ 5.75 1.14 8,368 $ 13.77 2.16 416,526 $ 16.83 2.30 30,000 $ 15.05 2.36 23,844 $ 25.50 2.55 7,400 $ 26.16 2.61 8,300 $ 23.62 2.86 66,989 $ 15.16 3.15 193,521 $ 14.12 3.38 22,760 $ 19.36 3.62 5,550 $ 18.60 3.68 2,171 $ 12.83 3.87 Options outstanding 792,019 2.69 $ 3,010 Options exercisable 758,451 2.66 $ 2,843 Expected to vest as of June 26, 2015 789,048 2.69 $ 2,995 As of June 26, 2015, there was $0.01 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 0.41 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. On May 24, 2015 the Company entered into an amended and restated employment agreement with an executive of the Company that provides for accelerated vesting of equity awards under certain circumstances. Under the agreement, any equity award granted to the executive after February 20, 2017, shall vest over a period not longer than 2 years following the applicable grant date. If the executive’s employment with the Company continues through and including February 20, 2017, any then outstanding equity award grants will become 100% vested. During the year the modification was made for the executive, the Company recalculated the share-based compensation expense, and the impact of this modification to the consolidated financial statements was $0.04 million. The following table summarizes restricted share unit activity: Number of Weighted- Balance as of June 29, 2012 168,275 $ 14.44 Granted 468,387 $ 12.42 Issued (71,880 ) $ 14.10 Forfeited (19,114 ) $ 12.78 Balance as of June 28, 2013 545,668 $ 12.81 Granted 479,894 $ 15.37 Issued (184,773 ) $ 12.98 Forfeited (78,494 ) $ 14.25 Balance as of June 27, 2014 762,295 $ 14.23 Granted 666,582 $ 17.53 Issued (247,593 ) $ 14.44 Forfeited (40,357 ) $ 16.68 Balance as of June 26, 2015 1,140,927 $ 16.03 Expected to vest as of June 26, 2015 1,039,544 $ 16.02 The total fair value of restricted share units vested during the year ended June 26, 2015, June 27, 2014, and June 28, 2013 was $3.6 million, $2.4, million and $1.0 million, respectively. The aggregate intrinsic value of restricted share units outstanding as of June 26, 2015 was $22.7 million. As of June 26, 2015, there was $8.0 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 2.55 years. For the years ended June 26, 2015 and June 27, 2014, the Company withheld an aggregate of 19,679 shares and 18,403 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 2015 and fiscal year 2014, the Company then remitted cash of $0.4 million and $0.3 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. 26, 2015
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 $2.3 million, $2.1 million, and $2.2 million in the years ended June 26, 2015, June 27, 2014, and June 28, 2013, 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., FBN New Jersey Manufacturing, Inc., and Fabrinet West, 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 $0.3 million, $0.2 million, and $0.2 million in the years ended June 26, 2015, June 27, 2014, and June 28, 2013, respectively. Executive incentive plan and employee performance bonuses For the year ended June 26, 2015, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and non-GAAP earnings per share targets as well as qualitative objectives, based on achieving individual performance goal for the fiscal year. For the year ended June 27, 2014, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and gross margin percentage target as well as qualitative objectives, 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. During the years ended June 26, 2015, June 27, 2014, and June 28, 2013, discretionary merit-based bonus awards were also available to Fabrinet’s non-executive employees. Bonus distributions to employees were $6.0 million, $5.1 million, and $3.7 million for the years ended June 26, 2015, June 27, 2014, and June 28, 2013, respectively.

Shareholders' equity

Shareholders' equity	12 Months Ended
	Jun. 26, 2015
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 26, 2015, Fabrinet issued 56,968 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $14.67 per share, and 227,914 ordinary shares upon the vesting of restricted share units, net of shares withheld. 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. All such issued shares are fully paid.

Accumulated other comprehensive

Accumulated other comprehensive loss	12 Months Ended
	Jun. 26, 2015
Accumulated other comprehensive loss	16. Accumulated other comprehensive loss The Company’s accumulated other comprehensive loss consists of the accumulated net unrealized loss and the reclassification adjustment for net loss realized and included in other expense in net income on available-for-sale securities. For the year ended June 26, 2015, the changes in accumulated other comprehensive loss, net of tax were as follows: (amount in thousands) Unrealized Loss on Available-for-Sale Securities Balance as of June 27, 2014 $ — Other comprehensive loss before reclassification adjustment (193 ) Less: Reclassification adjustment for net loss realized and included in other expense in net income 149 Net current-period other comprehensive loss $ (44 ) Balance as of June 26, 2015 $ (44 )

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Jun. 26, 2015
Commitments and contingencies	17. Commitments and contingencies Bank guarantees As of June 26, 2015 and June 27, 2014, there were outstanding bank guarantees given by banks on behalf of Fabrinet Thailand for electricity usage and other normal business amounting to $0.8 million and $0.3 million, respectively. Operating lease commitments The Company leases a portion of its capital equipment, vehicle, and certain land and buildings for its facilities in Cayman Islands, China, and New Jersey under operating lease arrangements that expire in various years through 2020. Rental expense under these operating leases amounted to $1.1 million, $0.8 million, and $0.8 million for the years ended June 26, 2015, June 27, 2014, and June 28, 2013, respectively. As of June 26, 2015, the future minimum lease payments due under non-cancelable leases are as follows at the end of each fiscal year below: (amount in thousands) 2016 $ 1,153 2017 979 2018 979 2019 489 2020 291 Total minimum operating lease payments $ 3,891 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 26, 2015, the Company had an outstanding commitment to third parties of $4.3 million. 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 and comprehensive income for the year ended June 27, 2014. There was no additional expense recorded during the year ended June 26, 2015 due to this case.

Business segments and geographi

Business segments and geographic information	12 Months Ended
	Jun. 26, 2015
Business segments and geographic information	18. 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 26, 2015, June 27, 2014, and June 28, 2013, 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 26, 2015 June 27, 2014 June 28, 2013 North America $ 370,836 $ 326,647 $ 299,510 Asia-Pacific 309,941 230,314 218,393 Europe 92,810 120,893 123,639 Total $ 773,587 $ 677,854 $ 641,542 As of June 26, 2015 and June 27, 2014, the Company had approximately $31.8 million and $0.3 million of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific. The following table presents revenues by end market: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Optical communications $ 553,245 $ 484,071 $ 449,790 Lasers, sensors, and other 220,342 193,783 191,752 Total $ 773,587 $ 677,854 $ 641,542 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 26, June 27, June 28, JDS Uniphase Corporation 20 % 24 % 22 % Oclaro, Inc. 10 % 22 % 25 % Accounts receivable from individual customers that were equal to or greater than 10% of accounts receivable as of June 26, 2015, June 27, 2014, and June 28, 2013, respectively, were as follows: Years Ended June 26, June 27, June 28, JDS Uniphase Corporation 19 % 23 % 17 % Valeo 11 % 10 % * (1) Oclaro, Inc. (1) * (1) 14 % 31 % (1) Less than 10% of total revenue / total accounts receivable.

Financial instruments

Financial instruments	12 Months Ended
	Jun. 26, 2015
Financial instruments	19. 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 26, 2015 and June 27, 2014, the Company had outstanding foreign currency assets and liabilities as follows: As of June 26, 2015 As of June 27, 2014 (amount in thousands, except percentages) Currency $ Currency $ Assets Thai Baht 377,785 $ 11,596 1,536,887 $ 47,318 RMB 67,455 11,029 74,813 12,156 Total $ 22,625 $ 59,474 Liabilities Thai Baht 860,425 $ 26,410 735,490 $ 22,644 RMB 20,461 3,347 32,512 5,283 Total $ 29,757 $ 27,927 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 26, 2015, there was $41.0 million in option contracts outstanding on the Thai Baht payables and as of June 27, 2014, there were $15.0 million in options 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 26, 2015 and June 27, 2014, there were no selling RMB to U.S. dollar forward contracts outstanding. As of June 26, 2015 and June 27, 2014, unrealized loss from fair market value of derivatives amounted to $0.4 million and unrealized gain from fair market value of derivatives amounted to $0.1 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 related to flooding

Income related to flooding	12 Months Ended
	Jun. 26, 2015
Income related to flooding	20. Income 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 were settled as of the end of fiscal year 2014. In fiscal year 2014, the Company received from its insurer a final payment of $45.2 million against its claim for owned and consigned equipment and inventory, which the Company recognized as income related to flooding. This income was offset by $0.5 million of other expenses from write-offs of advance payments to a customer due to flood-related losses. During fiscal year 2014, the Company fulfilled its obligations to a customer in accordance with the a settlement agreement entered into during the third quarter of fiscal year 2013 by making a final cash payment of $5.3 million and transferring equipment with an aggregate value of $2.3 million to such customer. In addition, the Company fulfilled its obligations to a customer’s insurers in accordance with a settlement agreement entered into during the fourth quarter of fiscal 2013 by making a payment of $2.3 million.

Expenses related to reduction i

Expenses related to reduction in workforce	12 Months Ended
	Jun. 26, 2015
Expenses related to reduction in workforce	21. 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 26, 2015 and June 28, 2013, the Company implemented a reduction in workforce and incurred expenses of approximately $1.2 million and $2.1 million, respectively, which represented severance and benefits costs incurred for the termination of approximately 100 employees and 180 employees, respectively, in accordance with contractual obligations and local regulations.

Principal subsidiaries

Principal subsidiaries	12 Months Ended
	Jun. 26, 2015
Principal subsidiaries	22. Principal subsidiaries Fabrinet’s subsidiaries are: Name Business Country of Incorporation Percent 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. (a wholly-owned subsidiary of Fabrinet China Holdings) Manufacturing and assembly People’s Republic of China 100 Fabrinet Pte., Ltd. Sales and administrative support services and supply chain sourcing center Singapore 100 Fabrilink SEZC Administrative support service The Cayman Islands 100 Fabrinet West, Inc. Manufacturing and assembly United States of America (California) 100 Fabritek, Inc. Rental service United States of America (California) 100

Subsequent events

Subsequent events	12 Months Ended
	Jun. 26, 2015
Subsequent events	23. Subsequent events During the week of August 10, 2015, the Company temporary suspended production in the manufacturing facility of its subsidiary in China due to storm damage caused by Typhoon Soudelor. The Company expects to resume production at the facility in August 2015. While the Company is currently estimating its liabilities and expenses for the quarter ending September 25, 2015 in relation to this matter, the financial statements for the year ended June 26, 2015 were not affected.

UNAUDITED QUARTERLY FINANCIAL I

UNAUDITED QUARTERLY FINANCIAL INFORMATION	12 Months Ended
	Jun. 26, 2015
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 26, 2015 and June 27, 2014: Three Months Ended (in thousands, except per share data) Jun 26, Mar 27, Dec 26, Sep 26, Jun 27, Mar 28, Dec 27, Sep 27, Total revenues $ 206,456 $ 189,453 $ 188,353 $ 189,325 $ 160,084 $ 167,657 $ 178,562 $ 171,551 Gross profit $ 24,549 $ 21,657 $ 21,061 $ 20,506 $ 17,775 $ 17,283 $ 20,530 $ 18,645 Net income $ 13,035 $ 10,845 $ 8,726 $ 11,036 $ 10,333 $ 47,662 $ 14,539 $ 19,197 Basic net income per share: Net income $ 0.37 $ 0.31 $ 0.25 $ 0.31 $ 0.29 $ 1.36 $ 0.42 $ 0.55 Weighted-average shares used in basic net income per share calculations 35,431 35,406 35,349 35,230 35,117 35,078 34,882 34,674 Diluted net income per share: Net income $ 0.36 $ 0.30 $ 0.24 $ 0.31 $ 0.29 $ 1.33 $ 0.41 $ 0.55 Weighted-average shares used in diluted net income per share calculations 36,320 36,110 35,917 35,587 35,843 35,790 35,583 35,138

Summary of significant accoun31

Summary of significant accounting policies (Policies)	12 Months Ended
	Jun. 26, 2015
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 2015, fiscal year 2014, and fiscal year 2013 ended on June 26, 2015, June 27, 2014 and June 28, 2013, respectively, and consisted of 52 weeks, 52 weeks and 52 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 original maturities of three months or less at the date of purchase are classified as cash equivalents. Cash and cash equivalents consist of cash deposited in checking accounts, time deposits with maturities of less than three months, money market accounts, and marketable securities with maturities of three months or less at the date of purchase.
Marketable securities	Marketable securities Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s marketable securities generally range from three months to three years. The Company’s marketable securities consist of investment in U.S. Treasuries and fixed income securities and have been classified and accounted for as available-for-sale. The Company’s investments in marketable securities are primary classified as available-for-sale securities and reported at fair value. Unrealized gains and losses related to changes in the fair value of securities are recognized in accumulated other comprehensive income, net of tax, in the Company’s consolidated balance sheets. Changes in the fair value of available-for-sale securities impact the Company’s net income only when such securities are sold or other-than-temporary impairment is recognized. Realized gains and losses on the sale of securities are determined by specific identification of each security’s cost basis. The Company reviews its marketable securities on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issue and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized cost basis. If the Company believes that an other-than-temporary decline exists in one of these securities, the Company will write down these investments to fair value.
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 and comprehensive income. 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 and comprehensive income 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 The derivatives assets and liabilities 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”). The Company does not have any derivatives designated as either fair value or cash flow hedges. Accordingly, the change in the fair value of the derivatives is recorded in foreign exchange (loss) gain on the consolidated statement of operations and comprehensive income.
Concentration of credit risk	Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, marketable securities, derivatives, and accounts receivable. Cash, cash equivalents, and marketable securities 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 limits its investments in marketable securities to securities with a maturity not in excess of three years, and all marketable securities that the Company invests in are rated A1, P-1, F1, or better. 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. Services revenue of $32.3 million, $25.5 million, and $24.1 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, respectively. 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. Certain customers may request the Company to store finished products purchased by them at the Company’s warehouse. In these instances, the Company receives a written request from the customer asking the Company to hold the inventory at the Company’s warehouse and the ordered goods are segregated in the Company’s warehouse from other inventory and cannot be used to fulfil other customer orders. In these situations revenue is only recognized when persuasive evidence of the sales arrangement exists, the goods are completed and ready for shipment, pricing is fixed or determinable, collection is reasonably assured, and title and risk of loss have passed to the customer.
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 $0.03 million, $0.02 million, and $0.02 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, 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 Fabrinet USA, Inc., FBN New Jersey Manufacturing, Inc., and Fabrinet West Inc., its 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 authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of both positive and negative evidence and the relative weight of the evidence. The Company has determined that it is more likely than not that deferred tax asset attributable to a subsidiary in the United States will not be realized, primarily due to uncertainties related to its ability to utilize its net operating loss carryforward before they expire. Accordingly, the Company has established a valuation allowance for such deferred tax asset. If there is a change in the Company’s ability to realize its deferred tax assets for which a valuation allowance has been established, then its tax provision may decrease in the period in which it determines that realization is more likely than not. Likewise, if the Company determines that it is not more likely than not that its deferred tax assets will be realized, then a valuation allowance may be established for such deferred tax assets and the Company’s tax provision may increase in the period in which it makes the determination. 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 July 2015, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The update provides the guidance that an entity, that measured inventory by using first-in, first-out or average cost, should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using last-in, first-out or the retail inventory method. The update is effective for fiscal years beginning after December 15, 2016, including interim periods within these fiscal years. This update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting date. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. ASU No. 2015-02 amended the process that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU No. 2015-02 is effective for fiscal years, and for interim periods within those fiscal years beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. The objective of this amendment is to reduce the complexity in accounting standards by eliminating the concept of extraordinary items from U.S. GAAP. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The following criteria must both be met for extraordinary classification: (a) the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity; and (b) the underlying event or transaction should not reasonably be expected to recur in the foreseeable future. This amendment is effective for fiscal years and interim periods beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect that the adoption of this update will have an effect on its consolidated financial statements. 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 of 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.

Summary of significant accoun32

Summary of significant accounting policies (Tables)	12 Months Ended
	Jun. 26, 2015
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. 26, 2015
Income Tax Expense	The Company’s income tax expense consisted of the following: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Current $ 4,191 $ 2,304 $ 239 Deferred (207 ) (865 ) 2,701 Total income tax expense $ 3,984 $ 1,439 $ 2,940
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 26, June 27, June 28, Income before income taxes (1) $ 47,626 $ 93,170 $ 71,909 Tax expense calculated at a statutory corporate income tax rate of 20% (2014: 20% and 2013: 23%) 9,525 18,634 16,539 Effect of income taxes from locations with tax rates different from Thailand 1,134 (2 ) (457 ) Income not subject to tax (2) (7,094 ) (15,648 ) (12,728 ) Income tax on unremitted earnings (reversal of) 1,263 (259 ) 466 Effect of different tax rate in relation to deferred tax utilization (3) (221 ) (662 ) (303 ) Effect of foreign exchange rate adjustment (365 ) (380 ) (90 ) Tax rebate from research and development application (102 ) — — Insurance proceeds from equipment claim due to flooding — — (516 ) Reversal of reserve fixed assets damaged from flooding — (251 ) — Others (156 ) 7 29 Corporate income tax expense $ 3,984 $ 1,439 $ 2,940 (1) Income before income taxes was mostly generated from domestic income in the Cayman Islands. (2 ) 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 not subject to tax per ordinary share on a diluted basis (in dollars) was $0.20, $0.44 and $0.37 for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, respectively. (3) The balances were effect of different tax rate in relation to the rate recognized deferred taxes in fiscal year 2015 and the rate when deferred taxes will be utilized in the following fiscal years.
Deferred Tax Assets and Deferred Tax Liabilities, Net of Valuation Allowance	The Company’s deferred tax assets and deferred tax liabilities, net of valuation allowance, at each balance sheet date are as follows: Years Ended (amount in thousands) June 26, June 27, Deferred tax assets: Depreciation $ 1,057 $ 979 Severance liability 1,192 796 Reserve and allowance 1,648 1,561 Others 14 — Total 3,911 3,336 Deferred tax liabilities: Deferred tax from unremitted earning (737 ) (1,040 ) Total (737 ) (1,040 ) Net $ 3,174 $ 2,296 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 26, June 27, Deferred income tax assets—current $ 1,662 $ 1,561 Deferred income tax liabilities—current — — Current deferred income tax—net 1,662 1,561 Deferred income tax assets—non current 3,253 1,775 Deferred income tax liabilities—non current (737 ) (1,040 ) Less: Valuation allowance (1,004 ) — Non-current deferred income tax—net 1,512 735 Net deferred income tax assets $ 3,174 $ 2,296
Changes to Unrecognized Tax Benefits	The following table indicates the changes to the Company’s uncertain income tax positions for the years ended June 26, 2015, June 27, 2014, and June 28, 2013 included in other non-current liabilities. (amount in thousands) As of June 26, 2015 As of June 27, 2014 As of June 28, 2013 Beginning balance $ 868 $ 1,167 $ 1,124 Additions during the year 552 510 358 Reductions for tax positions of prior years — (809 ) (315 ) Ending balance $ 1,420 $ 868 $ 1,167

Earnings per ordinary share (Ta

Earnings per ordinary share (Tables)	12 Months Ended
	Jun. 26, 2015
Earnings Per Ordinary Share	The earnings per ordinary share was calculated as follows: Years Ended (amount in thousands except per share amounts) June 26, June 27, 2014 June 28, 2013 Net income attributable to shareholders $ 43,642 $ 91,731 $ 68,969 Weighted-average number of ordinary shares outstanding (thousands of shares) 35,354 34,938 34,557 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 630 651 289 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 35,984 35,589 34,846 Basic earnings per ordinary share $ 1.23 $ 2.63 $ 2.00 Diluted earnings per ordinary share $ 1.21 $ 2.58 $ 1.98 Outstanding share options excluded in the computation of diluted earnings per ordinary share (1) 39,544 44,369 1,129,933 (1) These share options were not included in the computation of diluted earnings per ordinary share for fiscal year 2015, 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.

Cash, cash equivalents and ma35

Cash, cash equivalents and marketable securities (Tables)	12 Months Ended
	Jun. 26, 2015
Cash, Cash Equivalents, and Marketable Securities	The Company’s cash, cash equivalents, and marketable securities can be analyzed as follows: Fair Value (amount in thousands) Carrying Cost Unrealized Cash and Marketable As of June 26, 2015 Cash $ — $ — $ 105,548 $ — Cash equivalents 7,430 — 7,430 — Corporate bonds and commercial papers 120,144 (43 ) — 120,101 U.S. agency and U.S. treasury securities 21,029 (2 ) — 21,027 Sovereign and municipal securities 1,737 1 — 1,738 Total $ 150,340 $ (44 ) $ 112,978 $ 142,866 Fair Value (amount in thousands) Carrying Unrealized Cash and Marketable As of June 27, 2014 Cash $ — $ — $ 214,283 $ — Cash equivalents — — 19,194 — Total $ — $ — $ 233,477 $ —
Available-for-Sale Securities Based on Stated Effective Maturities	The following table summarizes the cost and estimated fair value of marketable securities classified as available-for-sale securities based on stated effective maturities as of June 26, 2015: (amount in thousands) Carrying Cost Fair Value Due within one year $ 30,461 $ 30,458 Due between one to three years 112,449 112,408 Total $ 142,910 $ 142,866

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Jun. 26, 2015
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, including: Fair Value Measurements at Reporting Date (amount in thousands) Level 1 Level 2 Level 3 Total As of June 26, 2015 Assets Cash equivalents $ — $ 7,430 $ — $ 7,430 Corporate bonds and commercial papers — 120,101 — 120,101 U.S. agency and U.S. treasury securities — 21,027 — 21,027 Sovereign and municipal securities — 1,738 — 1,738 Derivative assets — 4 (1) — 4 Total $ — $ 150,300 $ — $ 150,300 Liabilities Derivative liabilities $ — $ 371 (2) $ — $ 371 Total $ — $ 371 $ — $ 371 Fair Value Measurements at Reporting Date (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 (3) — 135 Total $ — $ 19,329 $ — $ 19,329 Liabilities Derivative liabilities $ — $ 1 (4) $ — $ 1 Total $ — $ 1 $ — $ 1 (1) Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian dollars 0.4 million. (2) Foreign currency options with notional amount of $41.0 million. (3) Foreign currency options with notional amount of $15.0 million. (4) Foreign currency forward contracts with notional amount of Canadian dollars 0.9 million.

Allowance for doubtful accoun37

Allowance for doubtful accounts (Tables)	12 Months Ended
	Jun. 26, 2015
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 26, 2015 June 27, 2014 June 28, 2013 Balance, beginning of period $ 37 $ 109 $ 203 Charged to Expense/(Credited to Income) 13 (72 ) (94 ) Balance, end of period $ 50 $ 37 $ 109

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Jun. 26, 2015
Inventories	(amount in thousands) As of June 26, 2015 As of June 27, 2014 Raw materials $ 46,065 $ 40,885 Work in progress 69,174 56,376 Finished goods 11,843 22,970 Goods in transit 6,488 6,899 133,570 127,130 Less: Inventory obsolescence (2,957 ) (2,560 ) Inventory, net $ 130,613 $ 124,570

Property, plant and equipment39

Property, plant and equipment, net (Tables)	12 Months Ended
	Jun. 26, 2015
Property, Plant and Equipment Net	The components of property, plant and equipment, net were as follows: (amount in thousands) Land Building and Building Manufacturing Office Motor Computers Construction Total As of June 26, 2015 Cost $ 26,672 $ 86,926 $ 79,825 $ 5,378 $ 528 $ 13,196 $ 10,198 $ 222,723 Less: Accumulated depreciation — (21,016 ) (47,017 ) (3,343 ) (458 ) (10,235 ) — (82,069 ) Net book value $ 26,672 $ 65,910 $ 32,808 $ 2,035 $ 70 $ 2,961 $ 10,198 $ 140,654 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

Intangibles (Tables)

Intangibles (Tables)	12 Months Ended
	Jun. 26, 2015
Intangibles	The following tables present details of the Company’s intangibles: (amount in thousands) Gross Carrying Accumulated Net As of June 26, 2015 Software $ 3,357 $ (3,220 ) $ 137 Total intangibles $ 3,357 $ (3,220 ) $ 137 (amount in thousands) Gross Carrying Accumulated Net 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 26, 2015, 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) 2016 $ 32 2017 28 2018 27 2019 27 2020 23 Total $ 137

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Jun. 26, 2015
Total Borrowing, Including Revolving and Long-Term Borrowings	The Company’s total borrowing, including revolving and long-term borrowings, consisted of the following: (amount in thousands) Rate (1) Conditions Maturity As of As of Short-term borrowing: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months July 2015 (2) $ 30,000 $ — Current portion of long-term borrowing 6,000 6,000 $ 36,000 $ 6,000 Long-term borrowing: LIBOR + 2.8% per annum Repayable in quarterly installments within 6 years March 2017 $ 10,500 $ 16,500 Less: (6,000 ) (6,000 ) Non-current portion $ 4,500 $ 10,500 (1) LIBOR is London Interbank Offered Rate. (2) On July 14, 2015, the Company sent a notice to the bank to renew the maturity date of this revolving borrowing. The bank approved the notice and extended the maturity date to August 20, 2015.
Movements of Long-Term Loans	The movements of long-term loans were as follows for years ended June 26, 2015 and June 27, 2014: Years ended (amount in thousands) June 26, 2015 June 27, 2014 Opening net book amount $ 16,500 $ 28,911 Repayment during the period (6,000 ) (12,411 ) Closing net book amount $ 10,500 $ 16,500
Future Maturities of Long-Term Debt	As of June 26, 2015, future maturities of long-term debt were as follows at the end of each fiscal year below: (amount in thousands) 2016 $ 6,000 2017 4,500 Total $ 10,500
Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing	Undrawn available credit facilities classified by available period of future borrowing as of June 26, 2015 and June 27, 2014 were as follows: (amount in thousands) June 26, 2015 June 27, 2014 Short-term $ 1,480 $ 1,539 Long-term $ 170,000 $ —

Severance liabilities (Tables)

Severance liabilities (Tables)	12 Months Ended
	Jun. 26, 2015
Severance Liabilities	The following table provides the information of the severance liabilities: (amount in thousands) As of June 26, 2015 As of June 27, 2014 Balance, beginning of the fiscal year $ 4,453 $ 4,382 Charged to consolidated statements of operations 1,024 71 Balance, end of the fiscal year $ 5,477 $ 4,453
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 June 26, 2015 As of June 27, 2014 Present value of defined benefit obligation $ 5,477 $ 4,453 Total $ 5,477 $ 4,453
Severance Liabilities Recognized in Statements of Operations and Comprehensive Income	The amount recognized in the consolidated statements of operations and comprehensive income was as follows: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Current service cost $ 360 $ 368 $ 722 Interest cost 203 207 211 Benefit paid (10 ) (223 ) (4 ) Actuarial loss (gain) on obligation 471 (281 ) (967 ) Total $ 1,024 $ 71 $ (38 )
Principal Actuarial Assumptions Used	The principal actuarial assumptions used were as follows: Years Ended June 26, 2015 June 27, 2014 June 28, 2013 Discount rate 4.0 % 4.9 % 5.1 % Future salary increases 4.2 % 4.2 % 4.4 %

Share-based compensation (Table

Share-based compensation (Tables)	12 Months Ended
	Jun. 26, 2015
Effect of Recording Share-Based Compensation Expense	The effect of recording share-based compensation expense for the years ended June 26, 2015, June 27, 2014 and June 28, 2013 was as follows: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Share-based compensation expense by type of award: Share options $ 226 $ 802 $ 1,864 Restricted share units 7,801 4,745 3,236 Total share-based compensation expense 8,027 5,547 5,100 Tax effect on share-based compensation expense — — — Net effect on share-based compensation expense $ 8,027 $ 5,547 $ 5,100
Share-Based Compensation Expense Recorded in Consolidated Statements of Operations and Comprehensive Income	Share-based compensation expense was recorded in the consolidated statements of operations and comprehensive income as follows: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Cost of revenue $ 1,450 $ 1,182 $ 1,105 Selling, general and administrative expense 6,577 4,365 3,995 Total share-based compensation expense $ 8,027 $ 5,547 $ 5,100
Share Options Activity	The following table summarizes share options activity: Number of Number of Weighted- Weighted- 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 ) $ 13.00 Forfeited (26,276 ) $ 15.54 Expired (33,710 ) $ 16.93 Balance as of June 27, 2014 865,890 666,305 $ 16.27 Granted — — — Exercised (56,968 ) $ 14.67 Forfeited (8,347 ) $ 15.90 Expired (8,556 ) $ 21.44 Balance as of June 26, 2015 792,019 758,451 $ 16.33 Expected to vest as of June 26, 2015 789,048 $ 16.33
Information for Share Options Outstanding	The following summarizes information for share options outstanding as of June 26, 2015 under the share options plan: Number of Exercise Price Per Weighted Average Aggregate Intrinsic Value (amount in thousands) 6,590 $ 5.75 1.14 8,368 $ 13.77 2.16 416,526 $ 16.83 2.30 30,000 $ 15.05 2.36 23,844 $ 25.50 2.55 7,400 $ 26.16 2.61 8,300 $ 23.62 2.86 66,989 $ 15.16 3.15 193,521 $ 14.12 3.38 22,760 $ 19.36 3.62 5,550 $ 18.60 3.68 2,171 $ 12.83 3.87 Options outstanding 792,019 2.69 $ 3,010 Options exercisable 758,451 2.66 $ 2,843 Expected to vest as of June 26, 2015 789,048 2.69 $ 2,995
Restricted Share Unit Activity	The following table summarizes restricted share unit activity: Number of Weighted- Balance as of June 29, 2012 168,275 $ 14.44 Granted 468,387 $ 12.42 Issued (71,880 ) $ 14.10 Forfeited (19,114 ) $ 12.78 Balance as of June 28, 2013 545,668 $ 12.81 Granted 479,894 $ 15.37 Issued (184,773 ) $ 12.98 Forfeited (78,494 ) $ 14.25 Balance as of June 27, 2014 762,295 $ 14.23 Granted 666,582 $ 17.53 Issued (247,593 ) $ 14.44 Forfeited (40,357 ) $ 16.68 Balance as of June 26, 2015 1,140,927 $ 16.03 Expected to vest as of June 26, 2015 1,039,544 $ 16.02

Accumulated other comprehensi44

Accumulated other comprehensive loss (Tables)	12 Months Ended
	Jun. 26, 2015
Changes in Accumulated Other Comprehensive Loss, Net of Tax	For the year ended June 26, 2015, the changes in accumulated other comprehensive loss, net of tax were as follows: (amount in thousands) Unrealized Loss on Available-for-Sale Securities Balance as of June 27, 2014 $ — Other comprehensive loss before reclassification adjustment (193 ) Less: Reclassification adjustment for net loss realized and included in other expense in net income 149 Net current-period other comprehensive loss $ (44 ) Balance as of June 26, 2015 $ (44 )

Commitments and contingencies (

Commitments and contingencies (Tables)	12 Months Ended
	Jun. 26, 2015
Future Minimum Lease Payments Due Under Non-Cancelable Leases	As of June 26, 2015, the future minimum lease payments due under non-cancelable leases are as follows at the end of each fiscal year below: (amount in thousands) 2016 $ 1,153 2017 979 2018 979 2019 489 2020 291 Total minimum operating lease payments $ 3,891

Business segments and geograp46

Business segments and geographic information (Tables)	12 Months Ended
	Jun. 26, 2015
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 26, 2015 June 27, 2014 June 28, 2013 North America $ 370,836 $ 326,647 $ 299,510 Asia-Pacific 309,941 230,314 218,393 Europe 92,810 120,893 123,639 Total $ 773,587 $ 677,854 $ 641,542
Revenues by End Market	The following table presents revenues by end market: Years Ended (amount in thousands) June 26, 2015 June 27, 2014 June 28, 2013 Optical communications $ 553,245 $ 484,071 $ 449,790 Lasers, sensors, and other 220,342 193,783 191,752 Total $ 773,587 $ 677,854 $ 641,542
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 26, June 27, June 28, JDS Uniphase Corporation 20 % 24 % 22 % Oclaro, Inc. 10 % 22 % 25 %
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 26, 2015, June 27, 2014, and June 28, 2013, respectively, were as follows: Years Ended June 26, June 27, June 28, JDS Uniphase Corporation 19 % 23 % 17 % Valeo 11 % 10 % * (1) Oclaro, Inc. (1) * (1) 14 % 31 % (1) Less than 10% of total revenue / total accounts receivable.

Financial instruments (Tables)

Financial instruments (Tables)	12 Months Ended
	Jun. 26, 2015
Outstanding Foreign Currency Assets and Liabilities	As of June 26, 2015 and June 27, 2014, the Company had outstanding foreign currency assets and liabilities as follows: As of June 26, 2015 As of June 27, 2014 (amount in thousands, except percentages) Currency $ Currency $ Assets Thai Baht 377,785 $ 11,596 1,536,887 $ 47,318 RMB 67,455 11,029 74,813 12,156 Total $ 22,625 $ 59,474 Liabilities Thai Baht 860,425 $ 26,410 735,490 $ 22,644 RMB 20,461 3,347 32,512 5,283 Total $ 29,757 $ 27,927

Principal subsidiaries (Tables)

Principal subsidiaries (Tables)	12 Months Ended
	Jun. 26, 2015
Subsidiaries of Group	Fabrinet’s subsidiaries are: Name Business Country of Incorporation Percent 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. (a wholly-owned subsidiary of Fabrinet China Holdings) Manufacturing and assembly People’s Republic of China 100 Fabrinet Pte., Ltd. Sales and administrative support services and supply chain sourcing center Singapore 100 Fabrilink SEZC Administrative support service The Cayman Islands 100 Fabrinet West, Inc. Manufacturing and assembly United States of America (California) 100 Fabritek, Inc. Rental service United States of America (California) 100

UNAUDITED QUARTERLY FINANCIAL49

UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables)	12 Months Ended
	Jun. 26, 2015
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 26, 2015 and June 27, 2014: Three Months Ended (in thousands, except per share data) Jun 26, Mar 27, Dec 26, Sep 26, Jun 27, Mar 28, Dec 27, Sep 27, Total revenues $ 206,456 $ 189,453 $ 188,353 $ 189,325 $ 160,084 $ 167,657 $ 178,562 $ 171,551 Gross profit $ 24,549 $ 21,657 $ 21,061 $ 20,506 $ 17,775 $ 17,283 $ 20,530 $ 18,645 Net income $ 13,035 $ 10,845 $ 8,726 $ 11,036 $ 10,333 $ 47,662 $ 14,539 $ 19,197 Basic net income per share: Net income $ 0.37 $ 0.31 $ 0.25 $ 0.31 $ 0.29 $ 1.36 $ 0.42 $ 0.55 Weighted-average shares used in basic net income per share calculations 35,431 35,406 35,349 35,230 35,117 35,078 34,882 34,674 Diluted net income per share: Net income $ 0.36 $ 0.30 $ 0.24 $ 0.31 $ 0.29 $ 1.33 $ 0.41 $ 0.55 Weighted-average shares used in diluted net income per share calculations 36,320 36,110 35,917 35,587 35,843 35,790 35,583 35,138

Business and Organization - Add

Business and Organization - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 26, 2015	May. 28, 2014	Mar. 14, 2013
Organization and Nature of Operations [Line Items]
Public offering price				$ 18	$ 14
Offering expense	$ 0.3	$ 0.4
Secondary Public Offering
Organization and Nature of Operations [Line Items]
Shares sold				3,150,000	3,800,000
Asia Pacific Growth Fund III, L.P.
Organization and Nature of Operations [Line Items]
Shares capital, fully diluted, held	8.80%	17.80%	8.90%

Summary of Significant Accoun51

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Accounting Policies [Line Items]
Services revenue recognized	$ 32,300	$ 25,500	$ 24,100
Warranty cost allowances	$ 30	$ 20	$ 20
Maximum
Accounting Policies [Line Items]
Cash and cash equivalents, maturity period	3 months

Property Plant and Equipment Es

Property Plant and Equipment Estimated Useful Life (Detail)	12 Months Ended
	Jun. 26, 2015
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 Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands		12 Months Ended				18 Months Ended	36 Months Ended
		Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013	Dec. 31, 2010	Jun. 26, 2015	Dec. 31, 2013
Income Taxes [Line Items]
Exempted income from corporate income tax	[1]	$ 7,094	$ 15,648	$ 12,728
Corporate Income tax rate		20.00%	20.00%	23.00%
Deferred Tax Assets, Net operating Loss carry forwards		$ 1,000				$ 1,000
Deferred tax liabilities		737	$ 1,040			737
Accrued interest and penalties related to uncertain tax positions		200	40			200
Recorded (reversed) interest and penalties		$ 100	(600)	$ (100)
Cayman Islands
Income Taxes [Line Items]
Tax exemption period		20 years
Exempted income from corporate income tax		$ 27,000	73,000	$ 50,300
Cayman Islands | Additional Renewal
Income Taxes [Line Items]
Tax exemption period		20 years
Thailand
Income Taxes [Line Items]
Period income earned from operation of Building 6 is not subject to tax		8 years
Unremitted earnings		$ 50,900	37,200			50,900
Unrecognized deferred tax liabilities		2,600	2,600			2,600
Deferred tax liabilities		$ 700	$ 1,000			$ 700
Thailand | Fiscal 2013
Income Taxes [Line Items]
Reduced corporate Income Tax rate		23.00%
Thailand | Fiscal 2014
Income Taxes [Line Items]
Reduced corporate Income Tax rate		20.00%
Thailand | Fiscal 2015
Income Taxes [Line Items]
Reduced corporate Income Tax rate		20.00%
Thailand | Fiscal 2016
Income Taxes [Line Items]
Reduced corporate Income Tax rate		20.00%
China
Income Taxes [Line Items]
Corporate Income tax rate					25.00%	25.00%	15.00%
[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 not subject to tax per ordinary share on a diluted basis (in dollars) was $0.20, $0.44 and $0.37 for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, respectively.

Income Tax Expense (Detail)

Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Income Taxes [Line Items]
Current	$ 4,191	$ 2,304	$ 239
Deferred	(207)	(865)	2,701
Corporate income tax expense	$ 3,984	$ 1,439	$ 2,940

Reconciliation between Taxes th

Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Detail) - USD ($) $ in Thousands		12 Months Ended
		Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Reconciliation of Effective Income Tax Rate [Line Items]
Income before income taxes	[1]	$ 47,626	$ 93,170	$ 71,909
Tax expense calculated at a statutory corporate income tax rate of 20% (2014: 20% and 2013: 23%)		9,525	18,634	16,539
Effect of income taxes from locations with tax rates different from Thailand		1,134	(2)	(457)
Income not subject to tax	[2]	(7,094)	(15,648)	(12,728)
Income tax on unremitted earnings (reversal of)		1,263	(259)	466
Effect of different tax rate in relation to deferred tax utilization	[3]	(221)	(662)	(303)
Effect of foreign exchange rate adjustment		(365)	(380)	(90)
Tax rebate from research and development application		(102)
Insurance proceeds from equipment claim due to flooding				(516)
Reversal of reserve fixed assets damaged from flooding			(251)
Others		(156)	7	29
Corporate income tax expense		$ 3,984	$ 1,439	$ 2,940
[1]	Income before income taxes was mostly generated from domestic income in the Cayman Islands.
[2]	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 not subject to tax per ordinary share on a diluted basis (in dollars) was $0.20, $0.44 and $0.37 for the years ended June 26, 2015, June 27, 2014 and June 28, 2013, respectively.
[3]	The balances were effect of different tax rate in relation to the rate recognized deferred taxes in fiscal year 2015 and the rate when deferred taxes will be utilized in the following fiscal years.

Reconciliation between Taxes 56

Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Parenthetical) (Detail) - $ / shares	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Reconciliation of Effective Income Tax Rate [Line Items]
Tax calculated at a corporate income tax rate, rate	20.00%	20.00%	23.00%
Income (loss) not subject to tax per ordinary share on a diluted basis	$ 0.20	$ 0.44	$ 0.37

Deferred Tax Assets and Deferre

Deferred Tax Assets and Deferred Tax Liabilities, Net of Valuation Allowance (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014
Deferred tax assets:
Depreciation	$ 1,057	$ 979
Severance liability	1,192	796
Reserve and allowance	1,648	1,561
Others	14
Total	3,911	3,336
Deferred tax liabilities:
Deferred tax from unremitted earning	(737)	(1,040)
Total	(737)	(1,040)
Net deferred income tax assets	$ 3,174	$ 2,296

Current Deferred Income Tax Ass

Current Deferred Income Tax Assets and Liabilities and Non-Current Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014
Schedule of Deferred Income Tax Assets and Liabilities [Line Items]
Deferred income tax assets-current	$ 1,662	$ 1,561
Deferred income tax liabilities-current	0	0
Current deferred income tax-net	1,662	1,561
Deferred income tax assets-non current	3,253	1,775
Deferred income tax liabilities-non current	(737)	(1,040)
Less: Valuation allowance	(1,004)
Non-current deferred income tax-net	1,512	735
Net deferred income tax assets	$ 3,174	$ 2,296

Changes to Unrecognized Tax Ben

Changes to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Income Tax Contingency [Line Items]
Beginning balance	$ 868	$ 1,167	$ 1,124
Additions during the year	552	510	358
Reductions for tax positions of prior years		(809)	(315)
Ending balance	$ 1,420	$ 868	$ 1,167

Earnings Per Ordinary Share (De

Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended								12 Months Ended
		Jun. 26, 2015	Mar. 27, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 27, 2014	Mar. 28, 2014	Dec. 27, 2013	Sep. 27, 2013	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income attributable to shareholders		$ 13,035	$ 10,845	$ 8,726	$ 11,036	$ 10,333	$ 47,662	$ 14,539	$ 19,197	$ 43,642	$ 91,731	$ 68,969
Weighted-average number of ordinary shares outstanding (thousands of shares)		35,431	35,406	35,349	35,230	35,117	35,078	34,882	34,674	35,354	34,938	34,557
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares)										630	651	289
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		36,320	36,110	35,917	35,587	35,843	35,790	35,583	35,138	35,984	35,589	34,846
Basic earnings per ordinary share		$ 0.37	$ 0.31	$ 0.25	$ 0.31	$ 0.29	$ 1.36	$ 0.42	$ 0.55	$ 1.23	$ 2.63	$ 2
Diluted earnings per ordinary share		$ 0.36	$ 0.30	$ 0.24	$ 0.31	$ 0.29	$ 1.33	$ 0.41	$ 0.55	$ 1.21	$ 2.58	$ 1.98
Outstanding share options excluded in the computation of diluted earnings per ordinary share	[1]									39,544	44,369	1,129,933
[1]	These share options were not included in the computation of diluted earnings per ordinary share for fiscal year 2015, 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.

Cash, Cash Equivalents, and Mar

Cash, Cash Equivalents, and Marketable Securities (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013	Jun. 29, 2012
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	$ 150,340
Unrealized (loss)/Gain	(44)
Cash and cash equivalents	112,978	$ 233,477	$ 149,716	$ 115,507
Marketable securities	142,866
Cash
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents	105,548	214,283
Cash Equivalents
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	7,430
Cash and cash equivalents	7,430	$ 19,194
Corporate bonds and commercial papers
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	120,144
Unrealized (loss)/Gain	(43)
Marketable securities	120,101
U.S. agency and U.S. treasury securities
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	21,029
Unrealized (loss)/Gain	(2)
Marketable securities	21,027
Sovereign And Municipal Securities
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	1,737
Unrealized (loss)/Gain	1
Marketable securities	$ 1,738

Cash and Cash Equivalents - Add

Cash and Cash Equivalents - Additional Information (Detail)	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014
Cash and Cash Equivalents [Line Items]
Effective interest rate on short term bank deposits	0.66%	1.01%
Percentage of cash and cash equivalents held by parent company	66.40%

Available-for-Sale Securities B

Available-for-Sale Securities Based on Stated Effective Maturities (Detail) $ in Thousands	Jun. 26, 2015USD ($)
Adjusted cost
Due within one year	$ 30,461
Due between one to three years	112,449
Total	142,910
Fair value
Due within one year	30,458
Due between one to three years	112,408
Total	$ 142,866

Cash, Cash Equivalents and Ma64

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) - Jun. 26, 2015 - USD ($)	Total
Cash, cash equivalents and marketable securities [Line Items]
Net realized loss recognized on investments	$ (100,000)
Impairment losses	0
Cash, cash equivalents and marketable securities at financial institutions located in the United States	$ 40,000,000

Financial Instruments Measured

Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 26, 2015		Jun. 27, 2014
Assets
Derivative assets	$ 4		$ 135
Total	150,300		19,329
Liabilities
Derivative liabilities	371		1
Total	371		1
Cash Equivalents
Assets
Marketable securities	7,430		19,194
Corporate bonds and commercial papers
Assets
Marketable securities	120,101
U.S. agency and U.S. treasury securities
Assets
Marketable securities	21,027
Sovereign And Municipal Securities
Assets
Marketable securities	1,738
Significant Other Observable Inputs (Level 2)
Assets
Derivative assets	4	[1]	135	[2]
Total	150,300		19,329
Liabilities
Derivative liabilities	371	[3]	1	[4]
Total	371		1
Significant Other Observable Inputs (Level 2) | Cash Equivalents
Assets
Marketable securities	7,430		$ 19,194
Significant Other Observable Inputs (Level 2) | Corporate bonds and commercial papers
Assets
Marketable securities	120,101
Significant Other Observable Inputs (Level 2) | U.S. agency and U.S. treasury securities
Assets
Marketable securities	21,027
Significant Other Observable Inputs (Level 2) | Sovereign And Municipal Securities
Assets
Marketable securities	$ 1,738
[1]	Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian dollars 0.4 million.
[2]	Foreign currency options with notional amount of $15.0 million.
[3]	Foreign currency options with notional amount of $41.0 million.
[4]	Foreign currency forward contracts with notional amount of Canadian dollars 0.9 million.

Financial Instruments Measure66

Financial Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Fair Value, Measurements, Recurring CAD in Millions, $ in Millions	Jun. 26, 2015USD ($)	Jun. 26, 2015CAD	Jun. 27, 2014USD ($)	Jun. 27, 2014CAD
Foreign currency options
Fair Value Measurements at Reporting Date Using
Derivative asset, notional amount | $	$ 3		$ 15
Derivative liabilities, notional amount | $	$ 41
Foreign currency forward contracts
Fair Value Measurements at Reporting Date Using
Derivative asset, notional amount		CAD 0.4
Derivative liabilities, notional amount				CAD 0.9

Activities and Balances for All

Activities and Balances for Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Valuation and Qualifying Accounts Disclosure [Line Items]
Charged to Expense/(Credited to Income)	$ 13	$ (72)	$ (94)
Allowance for Doubtful Accounts
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	37	109	203
Charged to Expense/(Credited to Income)	13	(72)	(94)
Balance, end of period	$ 50	$ 37	$ 109

Inventory (Detail)

Inventory (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014
Inventory [Line Items]
Raw materials	$ 46,065	$ 40,885
Work in progress	69,174	56,376
Finished goods	11,843	22,970
Goods in transit	6,488	6,899
Inventory, Gross, Total	133,570	127,130
Less: Inventory obsolescence	(2,957)	(2,560)
Inventory, net	$ 130,613	$ 124,570

Property Plant and Equipment Ne

Property Plant and Equipment Net (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014
Property, Plant and Equipment [Line Items]
Cost	$ 222,723	$ 167,464
Less: Accumulated depreciation	(82,069)	(70,220)
Net book value	140,654	97,244
Land
Property, Plant and Equipment [Line Items]
Cost	26,672	14,353
Net book value	26,672	14,353
Building and Building Improvement
Property, Plant and Equipment [Line Items]
Cost	86,926	73,353
Less: Accumulated depreciation	(21,016)	(17,580)
Net book value	65,910	55,773
Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Cost	79,825	60,354
Less: Accumulated depreciation	(47,017)	(39,100)
Net book value	32,808	21,254
Office Equipment
Property, Plant and Equipment [Line Items]
Cost	5,378	5,376
Less: Accumulated depreciation	(3,343)	(3,266)
Net book value	2,035	2,110
Motor Vehicles
Property, Plant and Equipment [Line Items]
Cost	528	615
Less: Accumulated depreciation	(458)	(608)
Net book value	70	7
Computers
Property, Plant and Equipment [Line Items]
Cost	13,196	12,044
Less: Accumulated depreciation	(10,235)	(9,666)
Net book value	2,961	2,378
Construction and Machinery Under Installation
Property, Plant and Equipment [Line Items]
Cost	10,198	1,369
Net book value	$ 10,198	$ 1,369

Property Plant and Equipment, N

Property Plant and Equipment, Net - Additional Information (Detail)	Feb. 24, 2015USD ($)ft²a	Jun. 26, 2015USD ($)	Jun. 27, 2014USD ($)	Jun. 28, 2013USD ($)
Property, Plant and Equipment [Line Items]
Area of combination office and manufacturing building purchased | ft²	74,000
Area of land purchased | a	4.05
Purchase price of land	$ 12,300,000
Purchase price of building	$ 13,200,000
Depreciation expense		$ 12,878,000	$ 10,565,000	$ 9,994,000
Property, plant and equipment written-off, fully depreciated cost		1,100,000	2,600,000	$ 300,000
Capitalized interest expense related to long-term loan		$ 0	$ 0

Intangibles (Detail)

Intangibles (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,357	$ 3,458
Accumulated Amortization	(3,220)	(3,386)
Net	137	72
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,357	3,458
Accumulated Amortization	(3,220)	(3,386)
Net	$ 137	$ 72

Intangibles - Additional Inform

Intangibles - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to intangibles	$ 69	$ 93	$ 217

Estimated Future Amortization o

Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014
Finite-Lived Intangible Assets [Line Items]
2,016	$ 32
2,017	28
2,018	27
2,019	27
2,020	23
Net	$ 137	$ 72

Total Borrowing, Including Revo

Total Borrowing, Including Revolving and Long-Term Borrowings (Detail) - USD ($) $ in Thousands		12 Months Ended
		Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Debt Instrument [Line Items]
Revolving borrowing		$ 30,000
Current portion of long-term borrowing		6,000	$ 6,000
Bank borrowings, including revolving loan and current portion of long-term loan from banks		36,000	6,000
Long-term borrowing		10,500	16,500	$ 28,911
Less: Current portion		(6,000)	(6,000)
Non-current portion		$ 4,500	$ 10,500
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Rate	[1]	LIBOR + 1.75% per annum
Conditions		Repayable in 1 to 6 months
Repayment duration		1 month
Term	[2]	2015-07
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Repayment duration		6 months
Term	[2]	2015-07
LIBOR | Minimum
Debt Instrument [Line Items]
Margin above LIBOR		1.75%
LIBOR | Maximum
Debt Instrument [Line Items]
Margin above LIBOR		2.50%
LIBOR | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Margin above LIBOR		1.75%
Long-term borrowing
Debt Instrument [Line Items]
Rate	[1]	LIBOR + 2.8% per annum
Conditions		Repayable in quarterly installments within 6 years
Repayment duration		6 years
Term		2017-03
Long-term borrowing | LIBOR
Debt Instrument [Line Items]
Margin above LIBOR		2.80%
[1]	LIBOR is London Interbank Offered Rate.
[2]	On July 14, 2015, the Company sent a notice to the bank to renew the maturity date of this revolving borrowing. The bank approved the notice and extended the maturity date to August 20, 2015.

Total Borrowing, Including Re75

Total Borrowing, Including Revolving and Long-Term Borrowings (Parenthetical) (Detail)	Jul. 14, 2015
Subsequent Event
Debt Instrument [Line Items]
Revolving borrowing maturity date	Aug. 20, 2015

Borrowings - Additional Informa

Borrowings - Additional Information (Detail) - USD ($)	Jul. 14, 2015	Jun. 26, 2015	Jun. 27, 2014
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity		$ 200,000,000
Line of credit facility amounts outstanding		30,000,000
Undrawn available credit facilities		170,000,000
Cash, cash equivalents and marketable securities at financial institutions located in the United States		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		150.00%
Maximum senior leverage ratio		250.00%
Minimum quick ratio required for credit agreement		110.00%
After Amendment | Bank borrowing No. 1 | Subsidiary
Line of Credit Facility [Line Items]
Carrying amount of assets secured and pledged as collateral		$ 50,000,000	$ 52,300,000
Subsequent Event
Line of Credit Facility [Line Items]
Revolving borrowing maturity date	Aug. 20, 2015
LIBOR
Line of Credit Facility [Line Items]
Credit line interest rate		LIBOR rate plus a spread of 1.75% to 2.50%
LIBOR | Minimum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		1.75%
LIBOR | Maximum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		2.50%
Base Rate
Line of Credit Facility [Line Items]
Credit line interest rate		Base rate, determined in accordance with the Facility Agreement, plus a spread of 0.75% to 1.50%
Base Rate | Minimum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		0.75%
Base Rate | Maximum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		1.50%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity		$ 150,000,000
Line of credit facility increase in borrowing capacity		$ 100,000,000
Line of credit expiration date		May 22, 2019
Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Repayment duration		1 month
Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Repayment duration		6 months
Revolving Credit Facility | LIBOR | Minimum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		1.75%
Term Loan Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity		$ 50,000,000
Line of credit expiration date		May 22, 2019

Movements of Long-Term Loans (D

Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Debt Instrument [Line Items]
Opening net book amount	$ 16,500	$ 28,911
Repayment during the period	(6,000)	(12,411)	$ (9,668)
Closing net book amount	$ 10,500	$ 16,500	$ 28,911

Future Maturities of Long-Term

Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Debt Instrument [Line Items]
2,016	$ 6,000
2,017	4,500
Long-term borrowing	$ 10,500	$ 16,500	$ 28,911

Undrawn Available Credit Facili

Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 170,000
Short-term loans
Line of Credit Facility [Line Items]
Undrawn available credit facilities	1,480	$ 1,539
Long-term loans
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 170,000

Severance Liabilities (Detail)

Severance Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
Balance, beginning of the fiscal year	$ 4,453	$ 4,382
Charged to consolidated statements of operations	1,024	71	$ (38)
Balance, end of the fiscal year	$ 5,477	$ 4,453	$ 4,382

Severance Liabilities Recognize

Severance Liabilities Recognized in Balance Sheet (Detail) - USD ($) $ in Thousands	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
Present value of defined benefit obligation	$ 5,477	$ 4,453
Total	$ 5,477	$ 4,453	$ 4,382

Severance Costs Recognized in S

Severance Costs Recognized in Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
Current service cost	$ 360	$ 368	$ 722
Interest cost	203	207	211
Benefit paid	(10)	(223)	(4)
Actuarial loss (gain) on obligation	471	(281)	(967)
Total	$ 1,024	$ 71	$ (38)

Principal Actuarial Assumptions

Principal Actuarial Assumptions Used (Detail)	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
Discount rate	4.00%	4.90%	5.10%
Future salary increases	4.20%	4.20%	4.40%

Effect of Recording Share-Based

Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Share-based compensation expense by type of award:
Share options	$ 226	$ 802	$ 1,864
Restricted share units	7,801	4,745	3,236
Total share-based compensation expense	8,027	5,547	5,100
Tax effect on share-based compensation expense	0	0	0
Net effect on share-based compensation expense	$ 8,027	$ 5,547	$ 5,100

Share-Based Compensation Expens

Share-Based Compensation Expense Recorded in Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 8,027	$ 5,547	$ 5,100
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,450	1,182	1,105
Selling, general and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 6,577	$ 4,365	$ 3,995

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail)	May. 24, 2015USD ($)	Jun. 26, 2015USD ($)Installmentshares	Jun. 27, 2014USD ($)shares	Jun. 28, 2013USD ($)shares	Jun. 29, 2012shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of shares vested		$ 1,100,000	$ 2,000,000	$ 2,400,000
Total intrinsic value of options exercised		200,000	$ 2,200,000	800,000
Cash received from the exercise of share options		800,000
Tax benefit realized		$ 0
Annualized dividend yield		0.00%
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes | shares		19,679	18,403
Tax withholdings related to net share settlement of restricted share units		$ 352,000	$ 327,000	21,000
Stock Plan 1999
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options outstanding | shares		6,590
Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options outstanding | shares		785,429
Ordinary shares available for future grant | shares		2,939,135
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year		4 years
Award granted, equal installments | Installment		4
Total fair value of restricted share units vested		$ 3,600,000	$ 2,400,000	$ 1,000,000
Aggregate intrinsic value of restricted share units outstanding		$ 22,700,000
Restricted Shares | Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share units outstanding | shares		1,140,927	762,295	545,668	168,275
Unrecognized share-based compensation expense		$ 8,000,000
Unrecognized compensation expense, weighted-average period for recognition		2 years 6 months 18 days
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%
Restricted Shares | Executive of the Company
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year	2 years
Award vesting percentage	100.00%
Share-based compensation expense, impact of modification	$ 40,000
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
Employee Stock Option | Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 10,000
Unrecognized compensation expense, weighted-average period for recognition		4 months 28 days
Employee Stock Option | Vest 12 months after the vesting commencement date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		25.00%
Employee Stock Option | Vest monthly over each of the subsequent 36 months
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		2.083%
Employee Stock Option | Vest monthly over four years, commencing one month after the vesting commencement date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		2.083%

Share Options Activity (Detail)

Share Options Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013	Jun. 29, 2012
Number of shares
Beginning balance	865,890	1,277,311	1,470,290
Granted	0	0	0
Exercised	(56,968)	(351,435)	(94,188)
Forfeited	(8,347)	(26,276)	(44,443)
Expired	(8,556)	(33,710)	(54,348)
Ending balance	792,019	865,890	1,277,311
Expected to vest as of June 26, 2015	789,048
Number of Exercisable Options	758,451	666,305	750,949	532,646
Weighted-Average Exercise Price per share
Beginning balance	$ 16.27	$ 15.37	$ 14.88
Granted	0	0	0
Exercised	14.67	13	5.96
Forfeited	15.90	15.54	17.33
Expired	21.44	16.93	16.97
Ending balance	16.33	16.27	15.37
Expected to vest as of June 26, 2015	16.33
Weighted-Average Grant Date Fair Value
Granted	$ 0	$ 0	$ 0

Information for Share Options O

Information for Share Options Outstanding (Detail) - Jun. 26, 2015 - USD ($) $ / shares in Units, $ in Thousands	Total
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	792,019
Options outstanding, weighted average remaining contractual life (years)	2 years 8 months 9 days
Options outstanding, aggregate intrinsic value	$ 3,010
Exercise Price 1
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	6,590
Exercise Price Per Share	$ 5.75
Options outstanding, weighted average remaining contractual life (years)	1 year 1 month 21 days
Exercise Price 2
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)	2 years 1 month 28 days
Exercise Price 3
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	416,526
Exercise Price Per Share	$ 16.83
Options outstanding, weighted average remaining contractual life (years)	2 years 3 months 18 days
Exercise Price 4
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)	2 years 4 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	23,844
Exercise Price Per Share	$ 25.50
Options outstanding, weighted average remaining contractual life (years)	2 years 6 months 18 days
Exercise Price 6
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)	2 years 7 months 10 days
Exercise Price 7
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	8,300
Exercise Price Per Share	$ 23.62
Options outstanding, weighted average remaining contractual life (years)	2 years 10 months 10 days
Exercise Price 8
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	66,989
Exercise Price Per Share	$ 15.16
Options outstanding, weighted average remaining contractual life (years)	3 years 1 month 24 days
Exercise Price 9
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)	3 years 4 months 17 days
Exercise Price 10
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	22,760
Exercise Price Per Share	$ 19.36
Options outstanding, weighted average remaining contractual life (years)	3 years 7 months 13 days
Exercise Price 11
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)	3 years 8 months 5 days
Exercise Price 12
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	2,171
Exercise Price Per Share	$ 12.83
Options outstanding, weighted average remaining contractual life (years)	3 years 10 months 13 days
Stock Plan Nineteen Ninety Nine and Twenty Ten
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, exercisable	758,451
Options exercisable, weighted average remaining contractual life (years)	2 years 7 months 28 days
Options exercisable, aggregate intrinsic value	$ 2,843
Number of Shares Underlying Options, Expected to vest	789,048
Options Expected to vest, weighted average remaining contractual life (years)	2 years 8 months 9 days
Options Expected to vest, aggregate intrinsic value	$ 2,995

Restricted Share Unit Activity

Restricted Share Unit Activity (Detail) - Stock Plan 2010 - Restricted Shares - $ / shares	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Number of restricted share units
Number of restricted share units, beginning balance	762,295	545,668	168,275
Number of restricted share units, Granted	666,582	479,894	468,387
Number of restricted share units, Issued	(247,593)	(184,773)	(71,880)
Number of restricted share units, Forfeited	(40,357)	(78,494)	(19,114)
Number of restricted share units, ending balance	1,140,927	762,295	545,668
Number of restricted share units, Expected to vest	1,039,544
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 14.23	$ 12.81	$ 14.44
Weighted-average grant date fair value per share, Granted	17.53	15.37	12.42
Weighted-average grant date fair value per share, Issued	14.44	12.98	14.10
Weighted-average grant date fair value per share, Forfeited	16.68	14.25	12.78
Weighted-average grant date fair value per share, Ending Balance	16.03	$ 14.23	$ 12.81
Weighted-average grant date fair value per share, Expected to vest	$ 16.02

Employee Benefit Plans -Additio

Employee Benefit Plans -Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Defined Contribution and Defined Benefit Plans [Line Items]
Bonus distributions to employees	$ 6	$ 5.1	$ 3.7
Provident Fund
Defined Contribution and Defined Benefit Plans [Line Items]
Defined contribution plan, employer annual contribution	2.3	2.1	2.2
Defined Contribution Pension Plan 401k
Defined Contribution and Defined Benefit Plans [Line Items]
Defined contribution plan, employer annual contribution	$ 0.3	$ 0.2	$ 0.2
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 - Addition

Shareholders' Equity - Additional Information (Detail) - $ / shares	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
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
Stock Plan Nineteen Ninety Nine and Twenty Ten
Shareholders Equity [Line Items]
Ordinary shares issued upon exercise of options	56,968	351,435	94,188
Ordinary shares issued upon exercise of options, weight average exercise price	$ 14.67	$ 13	$ 5.96
Ordinary shares issued upon vesting of restricted shares	227,914	166,370	69,950

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Loss, Net of Tax (Detail) $ in Thousands	12 Months Ended
	Jun. 26, 2015USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net current-period other comprehensive loss	$ (44)
Balance as of June 26, 2015	(44)
Unrealized Gain on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive loss before reclassification adjustment	(193)
Less: Reclassification adjustment for net loss realized and included in other expense in net income	149
Net current-period other comprehensive loss	(44)
Balance as of June 26, 2015	$ (44)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of the company	$ 0.8	$ 0.3
Rental expense under operating leases	1.1	0.8	$ 0.8
Outstanding commitment to third parties	4.3
Settlement of product failure losses	$ 0	$ 0.5
Maximum
Commitments and Contingencies Disclosure [Line Items]
Operating lease expiration year	2,020

Future Minimum Lease Payments D

Future Minimum Lease Payments Due Under Non-Cancelable Leases (Detail) $ in Thousands	Jun. 26, 2015USD ($)
Operating Leased Assets [Line Items]
2,016	$ 1,153
2,017	979
2,018	979
2,019	489
2,020	291
Total minimum operating lease payments	$ 3,891

Business Segments and Geograp95

Business Segments and Geographic Information - Additional Information (Detail) $ in Millions	12 Months Ended
	Jun. 26, 2015USD ($)Segment	Jun. 27, 2014USD ($)Segment	Jun. 28, 2013Segment
Segment Reporting Information [Line Items]
Number of operating segment	1	1	1
North America
Segment Reporting Information [Line Items]
Long-lived assets | $	$ 31.8	$ 0.3

Total Revenues by Geographic Re

Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 26, 2015	Mar. 27, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 27, 2014	Mar. 28, 2014	Dec. 27, 2013	Sep. 27, 2013	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 206,456	$ 189,453	$ 188,353	$ 189,325	$ 160,084	$ 167,657	$ 178,562	$ 171,551	$ 773,587	$ 677,854	$ 641,542
North America
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues									370,836	326,647	299,510
Asia Pacific
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues									309,941	230,314	218,393
Europe
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues									$ 92,810	$ 120,893	$ 123,639

Revenues by End Market (Detail)

Revenues by End Market (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 26, 2015	Mar. 27, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 27, 2014	Mar. 28, 2014	Dec. 27, 2013	Sep. 27, 2013	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Revenue from External Customer [Line Items]
Revenues	$ 206,456	$ 189,453	$ 188,353	$ 189,325	$ 160,084	$ 167,657	$ 178,562	$ 171,551	$ 773,587	$ 677,854	$ 641,542
Optical communications
Revenue from External Customer [Line Items]
Revenues									553,245	484,071	449,790
Lasers, sensors, and other
Revenue from External Customer [Line Items]
Revenues									$ 220,342	$ 193,783	$ 191,752

Total Revenues by Percentage fr

Total Revenues by Percentage from Individual Customers Representing Ten Percent or More of Total Revenues (Detail) - Revenue - Customer Concentration Risk	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
JDS Uniphase Corporation
Revenue, Major Customer [Line Items]
Concentration of risk percentage	20.00%	24.00%	22.00%
Oclaro, Inc.
Revenue, Major Customer [Line Items]
Concentration of risk percentage	10.00%	22.00%	25.00%

Accounts Receivable from Indivi

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. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
JDS Uniphase Corporation
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage		19.00%	23.00%	17.00%
Valeo
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage		11.00%	10.00%
Oclaro, Inc.
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage	[1]		14.00%	31.00%
[1]	Less than 10% of total revenue / total accounts receivable.

Outstanding Foreign Currency As

Outstanding Foreign Currency Assets and Liabilities (Detail) ¥ in Thousands, THB in Thousands, $ in Thousands	Jun. 26, 2015USD ($)	Jun. 26, 2015CNY (¥)	Jun. 26, 2015THB	Jun. 27, 2014USD ($)	Jun. 27, 2014CNY (¥)	Jun. 27, 2014THB
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	$ 22,625			$ 59,474
Foreign currency liabilities	29,757			27,927
Thailand, Baht
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	11,596		THB 377,785	47,318		THB 1,536,887
Foreign currency liabilities	26,410		THB 860,425	22,644		THB 735,490
China, Yuan Renminbi
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	11,029	¥ 67,455		12,156	¥ 74,813
Foreign currency liabilities	$ 3,347	¥ 20,461		$ 5,283	¥ 32,512

Financial instruments - Additio

Financial instruments - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Financial Instrument [Line Items]
Unrealized gain (loss) from fair market value of derivatives	$ (671,000)	$ (722,000)	$ 1,043,000
Forward Foreign Currency and Option Contracts
Financial Instrument [Line Items]
Unrealized gain (loss) from fair market value of derivatives	(400,000)	100,000
Forward Contracts | China, Yuan Renminbi
Financial Instrument [Line Items]
Derivative contracts	0	0
Options Held | Thailand, Baht | Foreign currency forward contracts
Financial Instrument [Line Items]
Derivative contracts	$ 41,000,000	$ 15,000,000

Income Related to Flooding - Ad

Income Related to Flooding - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 27, 2014	Jun. 28, 2013
Unusual or Infrequent Item [Line Items]
Income related to flooding	$ 45,211	$ 29,465
Expenses related to flooding	500
Payment for customer's losses as a result of flooding	5,300
Equipment transferred to customer	2,300
Claim for inventory losses
Unusual or Infrequent Item [Line Items]
Payment for customer's losses as a result of flooding	$ 2,300

Expenses Related to Reductio103

Expenses Related to Reduction in Workforce - Additional Information (Detail) $ in Millions	12 Months Ended
	Jun. 26, 2015USD ($)Employee	Jun. 28, 2013USD ($)Employee
Restructuring Cost and Reserve [Line Items]
Expenses incurred for severance cost and benefits | $	$ 1.2	$ 2.1
Number of terminated of employees	100	180

Subsidiaries of Group (Detail)

Subsidiaries of Group (Detail) - Jun. 26, 2015	Total
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%
Fabrilink SEZC
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Business	Administrative support service
Country of Incorporation	The Cayman Islands
Percent interest	100.00%
Fabrinet West Inc
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Business	Manufacturing and assembly
Country of Incorporation	United States of America (California)
Percent interest	100.00%
Fabritek Inc
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Business	Rental service
Country of Incorporation	United States of America (California)
Percent interest	100.00%

Unaudited Quarterly Financia105

Unaudited Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 26, 2015	Mar. 27, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 27, 2014	Mar. 28, 2014	Dec. 27, 2013	Sep. 27, 2013	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Quarterly Financial Information [Line Items]
Total revenues	$ 206,456	$ 189,453	$ 188,353	$ 189,325	$ 160,084	$ 167,657	$ 178,562	$ 171,551	$ 773,587	$ 677,854	$ 641,542
Gross profit	24,549	21,657	21,061	20,506	17,775	17,283	20,530	18,645	87,773	74,233	69,418
Net income	$ 13,035	$ 10,845	$ 8,726	$ 11,036	$ 10,333	$ 47,662	$ 14,539	$ 19,197	$ 43,642	$ 91,731	$ 68,969
Basic net income per share:
Net income	$ 0.37	$ 0.31	$ 0.25	$ 0.31	$ 0.29	$ 1.36	$ 0.42	$ 0.55	$ 1.23	$ 2.63	$ 2
Weighted-average shares used in basic net income per share calculations	35,431	35,406	35,349	35,230	35,117	35,078	34,882	34,674	35,354	34,938	34,557
Diluted net income per share:
Net income	$ 0.36	$ 0.30	$ 0.24	$ 0.31	$ 0.29	$ 1.33	$ 0.41	$ 0.55	$ 1.21	$ 2.58	$ 1.98
Weighted-average shares used in diluted net income per share calculations	36,320	36,110	35,917	35,587	35,843	35,790	35,583	35,138	35,984	35,589	34,846