Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 25, 2015 | Jan. 22, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 25, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FN | |
Entity Registrant Name | FABRINET | |
Entity Central Index Key | 1,408,710 | |
Current Fiscal Year End Date | --06-24 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 35,939,609 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 26, 2015 |
Current assets | ||
Cash and cash equivalents | $ 131,359 | $ 112,978 |
Marketable securities | 135,199 | 142,866 |
Trade accounts receivable, net | 147,430 | 134,952 |
Inventory, net | 140,862 | 130,613 |
Deferred tax assets | 1,555 | 1,662 |
Prepaid expenses | 1,003 | 2,135 |
Other current assets | 1,612 | 1,833 |
Total current assets | 559,020 | 527,039 |
Non-current assets | ||
Property, plant and equipment, net | 159,415 | 140,654 |
Intangibles, net | 321 | 137 |
Deferred tax assets | 2,249 | 2,249 |
Deferred debt issuance costs and others | 2,581 | 2,424 |
Total non-current assets | 164,566 | 145,464 |
Total Assets | 723,586 | 672,503 |
Current liabilities | ||
Bank borrowings, including revolving loan and current portion of long-term loan from bank | 54,000 | 36,000 |
Trade accounts payable | 114,911 | 115,319 |
Income tax payable | 1,757 | 1,470 |
Accrued payroll, bonus and related expenses | 9,528 | 9,804 |
Accrued expenses | 12,512 | 6,405 |
Other payables | 14,445 | 12,050 |
Total current liabilities | 207,153 | 181,048 |
Non-current liabilities | ||
Long-term loans from bank, non-current portion | 1,500 | 4,500 |
Deferred tax liability | 1,043 | 737 |
Severance liabilities | 5,767 | 5,477 |
Other non-current liabilities | 1,899 | 1,797 |
Total non-current liabilities | 10,209 | 12,511 |
Total Liabilities | $ 217,362 | $ 193,559 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity | ||
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of December 25, 2015 and June 26, 2015) | ||
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 35,871,740 shares and 35,437,654 shares issued and outstanding as of December 25, 2015 and June 26, 2015, respectively) | $ 359 | $ 354 |
Additional paid-in capital | 95,482 | 89,390 |
Retained earnings | 410,650 | 389,244 |
Accumulated other comprehensive loss | (267) | (44) |
Total Shareholders' Equity | 506,224 | 478,944 |
Total Liabilities and Shareholders' Equity | $ 723,586 | $ 672,503 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 25, 2015 | Jun. 26, 2015 |
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 | 35,871,740 | 35,437,654 |
Ordinary shares, shares outstanding | 35,871,740 | 35,437,654 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Revenues | $ 233,038 | $ 188,353 | $ 449,471 | $ 377,678 |
Cost of revenues | (204,545) | (167,292) | (394,967) | (336,111) |
Gross profit | 28,493 | 21,061 | 54,504 | 41,567 |
Selling, general and administrative expenses | (13,715) | (10,314) | (25,615) | (19,051) |
Other expenses in relation to flood | (864) | |||
Expenses related to reduction in workforce | (1,153) | (1,153) | ||
Operating income | 14,778 | 9,594 | 28,025 | 21,363 |
Interest income | 455 | 324 | 897 | 698 |
Interest expense | (419) | (117) | (821) | (250) |
Foreign exchange gain (loss), net | 6,166 | 83 | (4,326) | (23) |
Other income (expense) | 106 | (134) | 209 | (31) |
Income before income taxes | 21,086 | 9,750 | 23,984 | 21,757 |
Income tax expense | (1,283) | (1,024) | (2,578) | (1,995) |
Net income | 19,803 | 8,726 | 21,406 | 19,762 |
Other comprehensive loss, net of tax: | ||||
Change in net unrealized holding losses on marketable securities | (262) | (486) | (175) | (486) |
Other | (48) | (48) | ||
Total other comprehensive loss, net of tax | (310) | (486) | (223) | (486) |
Net comprehensive income | $ 19,493 | $ 8,240 | $ 21,183 | $ 19,276 |
Earnings per share | ||||
Basic | $ 0.55 | $ 0.25 | $ 0.60 | $ 0.56 |
Diluted | $ 0.54 | $ 0.24 | $ 0.59 | $ 0.55 |
Weighted-average number of ordinary shares outstanding(thousands of shares) | ||||
Basic | 35,812 | 35,349 | 35,695 | 35,289 |
Diluted | 36,826 | 35,917 | 36,570 | 35,752 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Cash flows from operating activities | ||
Net income for the period | $ 21,406 | $ 19,762 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 8,268 | 5,907 |
Amortization of intangibles | 26 | 42 |
Gain on disposal of property, plant and equipment | (49) | (46) |
Loss from sales and maturities of available-for-sale securities | 124 | |
Amortization of investment premium | 457 | 298 |
Amortization of deferred debt issuance costs | 358 | 228 |
Reversal of allowance for doubtful accounts | (7) | (3) |
Unrealized loss (gain) on exchange rate and fair value of derivative | 5,566 | (19) |
Share-based compensation | 5,783 | 3,797 |
Deferred income tax | 413 | (84) |
Other non-cash expenses | 765 | 725 |
(Reversal of) inventory obsolescence | (478) | 317 |
Loss from written-off inventory | 233 | |
Changes in operating assets and liabilities | ||
Trade accounts receivable | (12,486) | (2,949) |
Inventory | (10,004) | (3,551) |
Other current assets and non-current assets | 1,019 | (34) |
Trade accounts payable | (405) | 3,852 |
Income tax payable | 320 | 386 |
Other current liabilities and non-current liabilities | 2,395 | 1,973 |
Net cash provided by operating activities | 23,704 | 30,601 |
Cash flows from investing activities | ||
Purchase of marketable securities | (53,258) | (143,684) |
Proceeds from sales of marketable securities | 25,709 | 1,056 |
Proceeds from maturities of marketable securities | 34,460 | 543 |
Purchase of property, plant and equipment | (26,407) | (5,372) |
Purchase of intangibles | (210) | (22) |
Proceeds from disposal of property, plant and equipment | 58 | 46 |
Net cash used in investing activities | (19,648) | (147,433) |
Cash flows from financing activities | ||
Payment of debt issuance costs | (359) | (1,746) |
Proceeds from revolving loans | 18,000 | |
Repayment of long-term loans from bank | (3,000) | (3,000) |
Proceeds from issuance of ordinary shares under employee share option plans | 2,025 | 415 |
Withholding tax related to net share settlement of restricted share units | (1,711) | (293) |
Net cash provided by (used in) financing activities | 14,955 | (4,624) |
Net increase (decrease) in cash and cash equivalents | 19,011 | (121,456) |
Movement in cash and cash equivalents | ||
Cash and cash equivalents at beginning of period | 112,978 | 233,477 |
Increase (decrease) in cash and cash equivalents | 19,011 | (121,456) |
Effect of exchange rate on cash and cash equivalents | (630) | (50) |
Cash and cash equivalents at end of period | 131,359 | 111,971 |
Non-cash investing and financing activities | ||
Construction and equipment-related payables | $ 6,657 | $ 10,919 |
Business and organization
Business and organization | 6 Months Ended |
Dec. 25, 2015 | |
Business and organization | 1. Business and organization General 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 are 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. |
Accounting policies
Accounting policies | 6 Months Ended |
Dec. 25, 2015 | |
Accounting policies | 2. Accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of December 25, 2015 and for the three and six months ended December 25, 2015 and December 26, 2014 includes only normal recurring adjustments, necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 26, 2015. The balance sheet as of June 26, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and six months ended December 25, 2015 and December 26, 2014 may not be indicative of results for the year ending June 24, 2016 or any future periods. Use of Estimates The preparation of the Company’s condensed 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 expenses 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. Fiscal years The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. The three months ended December 25, 2015 and December 26, 2014 each consisted of 13 weeks. The six months ended December 25, 2015 and December 26, 2014 each consisted of 26 weeks. Fiscal year 2016 will be comprised of 52 weeks and will end on June 24, 2016. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and 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. New Accounting Pronouncements – not yet adopted by the Company In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This new guidance makes targeted improvements to existing U.S. GAAP by requiring certain equity investments to be measured at fair value, requiring use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes and requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The ASU on recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which will require entities to present deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) as non-current in a classified balance sheet. The ASU simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current and non-current in a classified balance sheet. For public business entities, the amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”. This ASU amended the presentation or subsequent measurement of debt issuance costs related to the line-of-credit arrangement. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 666): Deferral of the Effective Date”. This amendment deferred the effective date of ASU 2014-09 for all entities by one year. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In July 2015, the FASB issued 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 FASB issued 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, for each annual and interim reporting period, 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 ASU is effective for annual periods and interim reporting periods beginning after December 15, 2016. The Company does not expect that the adoption of this update 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. This update is required to be adopted by all public companies for annual periods and interim reporting periods beginning after December 15, 2015. Early adoption of this ASU is permitted. The Company does not expect that the adoption of this update will have an effect 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 ASU 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 ASU 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 evaluating the impact of adoption of this update on its consolidated financial statements. |
Earnings per ordinary share
Earnings per ordinary share | 6 Months Ended |
Dec. 25, 2015 | |
Earnings per ordinary share | 3. 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: Three Months Ended Six Months Ended (amount in thousands except per share amounts) December 25, December 26, December 25, 2015 December 26, 2014 Net income attributable to shareholders $ 19,803 $ 8,726 $ 21,406 $ 19,762 Weighted-average number of ordinary shares outstanding (thousands of shares) 35,812 35,349 35,695 35,289 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 1,014 568 875 463 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 36,826 35,917 36,570 35,752 Basic earnings per ordinary share $ 0.55 $ 0.25 $ 0.60 $ 0.56 Diluted earnings per ordinary share $ 0.54 $ 0.24 $ 0.59 $ 0.55 Outstanding share options excluded in the computation of diluted earnings per ordinary share (1) 31,244 71,580 31,244 71,580 (1) These share options were not included in the computation of diluted earnings per ordinary share 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 | 6 Months Ended |
Dec. 25, 2015 | |
Cash, cash equivalents and marketable securities | 4. 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 December 25, 2015 Cash $ — $ — $ 119,987 $ — Cash equivalents 11,372 — 11,372 — Corporate bonds and commercial papers 113,942 (148 ) — 113,794 U.S. agency and U.S. treasury securities 20,745 (71 ) — 20,674 Sovereign and municipal securities 731 — — 731 Total $ 146,790 $ (219 ) $ 131,359 $ 135,199 Fair Value (amount in thousands) Carrying 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 All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. 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 investments in marketable securities consist of investments in U.S. Treasuries and fixed income securities and have been classified and accounted for as available-for-sale. 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 December 25, 2015: (amount in thousands) Carrying Fair Value Due within one year $ 16,075 $ 16,068 Due between one to three years 119,343 119,131 Total $ 135,418 $ 135,199 During the three and six months ended December 25, 2015, the net realized loss recognized by the Company was $0.03 million and $0.1 million, respectively. As of December 25, 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 three and six months ended December 25, 2015. As of December 25, 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 (as defined in Note 10) and comply with covenants. As discussed in Note 10, 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 10, the Company must comply with this covenant from and after the effective date of the Facility Agreement. |
Fair value of financial instrum
Fair value of financial instruments | 6 Months Ended |
Dec. 25, 2015 | |
Fair value of financial instruments | 5. 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 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 are inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly. If the assets or liabilities have a specified (contractual) term, Level 2 inputs must be observable for substantially the full term of assets or liabilities. Level 3 inputs are unobservable inputs for assets or liabilities, 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 following table provides details of the financial instruments measured at fair value on a recurring basis, including: Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of December 25, 2015 Assets Cash equivalents $ — $ 11,372 $ — $ 11,372 Corporate bonds and commercial papers — 113,794 — 113,794 U.S. agency and U.S. treasury securities — 20,674 — 20,674 Sovereign and municipal securities — 731 — 731 Total $ — $ 146,571 $ — $ 146,571 Liabilities Derivative liabilities $ — $ 6,209 (1) $ — $ 6,209 Total $ — $ 6,209 $ — $ 6,209 Fair Value Measurements at Reporting Date Using (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 (2) — 4 Total $ — $ 150,300 $ — $ 150,300 Liabilities Derivative liabilities $ — $ 371 (3) $ — $ 371 Total $ — $ 371 $ — $ 371 (1) Foreign currency forward contracts with notional amount of $181.5 million and Canadian Dollars 0.4 million. (2) Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian Dollars 0.4 million. (3) Foreign currency options with notional amount of $41.0 million. Derivative Financial Instruments The Company uses foreign currency contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities. As a result of foreign currency fluctuations, the U.S. dollar equivalent values of the Company’s foreign currency-denominated assets and liabilities change. The Company minimizes the credit risk in derivative instruments by limiting its exposure to any single counterparty and by entering into derivative instruments only with counterparties that meet the Company’s minimum credit quality standard. The derivative assets and liabilities are classified in other current assets and accrued expenses, respectively, on the unaudited condensed consolidated balance sheets. As of December 25, 2015 and June 26, 2015, the forward contracts and option contracts outstanding had a maturity date in one to eighteen months duration. The Company has not designated the foreign currency contracts as hedging instruments under the accounting standard for derivatives and hedging. The effects of derivative instruments which are not designated as hedging instruments on the Company’s unaudited condensed consolidated statements of operations and comprehensive income were a gain from foreign currency forward contracts of $6.2 million for the three months ended December 25, 2015, and a loss from foreign currency put option contracts of $0.1 million and a gain from foreign currency put option contracts of $0.02 million for the three months ended December 26, 2014. |
Allowance for doubtful accounts
Allowance for doubtful accounts | 6 Months Ended |
Dec. 25, 2015 | |
Allowance for doubtful accounts | 6. Allowance for doubtful accounts The activities and balances for allowance for doubtful accounts were as follows: Six Months Ended (amount in thousands) December 25, 2015 December 26, 2014 Balance, beginning of period $ 50 $ 37 Credited to income (7 ) (3 ) Balance, end of period $ 43 $ 34 |
Inventory
Inventory | 6 Months Ended |
Dec. 25, 2015 | |
Inventory | 7. Inventory (amount in thousands) As of December 25, 2015 As of June 26, 2015 Raw materials $ 49,306 $ 46,065 Work in progress 70,817 69,174 Finished goods 17,770 11,843 Goods in transit 5,448 6,488 143,341 133,570 Less: Inventory obsolescence (2,479 ) (2,957 ) Inventory, net $ 140,862 $ 130,613 |
Property, plant and equipment
Property, plant and equipment | 6 Months Ended |
Dec. 25, 2015 | |
Property, plant and equipment | 8. Property, plant and equipment On September 2, 2015, the Company entered into an agreement to purchase a parcel of land in Chonburi, Thailand, to support the expansion of the Company’s production capacity and capabilities in Thailand. Title to the land was transferred to the Company on December 22, 2015. The aggregate purchase price was approximately $12.4 million. The Company recorded the purchase of this land in property, plant and equipment on the unaudited condensed consolidated balance sheets as of December 25, 2015. |
Intangibles
Intangibles | 6 Months Ended |
Dec. 25, 2015 | |
Intangibles | 9. Intangibles The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated Net As of December 25, 2015 Software $ 3,567 $ (3,246 ) $ 321 Total intangibles $ 3,567 $ (3,246 ) $ 321 (amount in thousands) Gross Accumulated Net As of June 26, 2015 Software $ 3,357 $ (3,220 ) $ 137 Total intangibles $ 3,357 $ (3,220 ) $ 137 The Company recorded amortization expense relating to intangibles of $0.01 million and $0.02 million for the three months ended December 25, 2015 and December 26, 2014, respectively, and $0.02 million and $0.04 million for the six months ended December 25, 2015 and December 26, 2014, respectively. Based on the carrying amount of intangibles as of December 25, 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 thousands) 2016 $ 37 2017 70 2018 69 2019 69 2020 64 Thereafter 12 Total $ 321 |
Borrowings
Borrowings | 6 Months Ended |
Dec. 25, 2015 | |
Borrowings | 10. 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 December 25, As of June 26, 2015 Short-term borrowing: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months January 2016 (2) $ 48,000 $ 30,000 Current portion of long-term borrowing 6,000 6,000 $ 54,000 $ 36,000 Long-term borrowing: LIBOR + 2.8% per annum Repayable in quarterly installments within 6 years March 2017 $ 7,500 $ 10,500 Less: (6,000 ) (6,000 ) Non-current portion $ 1,500 $ 4,500 (1) LIBOR is London Interbank Offered Rate. (2) In January 2016, the maturity date of these revolving borrowings were extended to mature in February 2016. Under the long-term borrowing contract of a subsidiary, the loan is secured by certain property, plant and equipment. The carrying amount of assets secured and pledged as collateral to such loan as of December 25, 2015 and June 26, 2015 was $48.8 million and $50.0 million, respectively. This subsidiary is also required to comply with 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 December 25, 2015 and June 26, 2015, 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 the six months ended December 25, 2015 and December 26, 2014: Six Months Ended (amount in thousands) December 25, 2015 December 26, 2014 Opening book amount $ 10,500 $ 16,500 Repayment during the period (3,000 ) (3,000 ) Closing book amount $ 7,500 $ 13,500 As of December 25, 2015, future maturities of long-term debt during each fiscal year were as follows: (amount in thousands) 2016 $ 3,000 2017 4,500 Total $ 7,500 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 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 allowed 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 December 25, 2015, the outstanding revolving borrowing under the Facility Agreement was $48.0 million, resulting in available credit facilities of $152.0 million. Borrowings under the revolving credit facility are classified as current liabilities in the unaudited condensed consolidated balance sheets 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 one to six months, without premium or penalty, upon notice to the administrative agent. During January 2016, the Company sent notices to the bank to renew the maturity date of its revolving borrowings. The bank approved the notices and extended the maturity to February 2016. 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 plus a spread of 0.75% to 1.50%, determined in accordance with the Facility Agreement 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 December 25, 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 December 25, 2015 and June 26, 2015 were as follows: (amount in thousands) December 25, 2015 June 26, 2015 Short-term $ 1,386 $ 1,480 Long-term $ 152,000 $ 170,000 |
Income taxes
Income taxes | 6 Months Ended |
Dec. 25, 2015 | |
Income taxes | 11. Income taxes As of December 25, 2015 and June 26, 2015, the liability for uncertain tax positions including accrued interest and penalties was $1.7 million and $1.6 million, respectively. The Company expects the estimated amount of liability associated with its uncertain tax positions to decrease within the next 12 months due to the lapse of the applicable statute of limitations in foreign tax jurisdictions. The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2011 to 2015 remain open to examination by U.S. federal and state tax authorities, and foreign tax authorities. The Company’s income tax is recognized based on the best estimate of the expected annual effective tax rate for the full financial year of each entity in the Company, adjusted for discrete items arising in that quarter. If the Company’s estimated annual effective tax rate changes, the Company makes a cumulative adjustment in that quarter. The effective tax rate for the Company for the three months ended December 25, 2015 and December 26, 2014 was 6.1% and 10.5% of net income, respectively. The decrease in the effective tax rate for the three months ended December 25, 2015 was primarily due to the fact that the Company had lower taxable income during the three months ended December 25, 2015 as compared to the three months ended December 26, 2014 because of an increase in unrealized gain from changes in the fair value of derivatives during the three months ended December 25, 2015, which are not subject to tax. The effective tax rate for the Company for the six months ended December 25, 2015 and December 26, 2014 was 10.7% and 9.2% of net income, respectively. The increase in the effective tax rate for the six months ended December 25, 2015 was primarily due to the fact that the Company had higher taxable income during the six months ended December 25, 2015 as compared to the six months ended December 26, 2014, due to the expiration of a tax privilege of the Company’s subsidiary in Thailand. |
Share-based compensation
Share-based compensation | 6 Months Ended |
Dec. 25, 2015 | |
Share-based compensation | 12. 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 three and six months ended December 25, 2015 and December 26, 2014 was as follows: Three Months Ended Six Months Ended (amount in thousands) December 25, December 26, December 25, 2015 December 26, 2014 Share-based compensation expense by type of award: Share options $ 2 $ 71 $ 18 $ 191 Restricted share units 3,108 1,859 5,765 3,606 Total share-based compensation expense 3,110 1,930 5,783 3,797 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 3,110 $ 1,930 $ 5,783 $ 3,797 Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended Six Months Ended (amount in thousands) December 25, December 26, December 25, 2015 December 26, 2014 Cost of revenue $ 540 $ 360 $ 1,077 $ 728 Selling, general and administrative expense 2,570 1,570 4,706 3,069 Total share-based compensation expense $ 3,110 $ 1,930 $ 5,783 $ 3,797 The Company did not capitalize any share-based compensation expense as part of any asset costs during the three and six months ended December 25, 2015 and December 26, 2014. Share-based award activity Share options have been granted to directors and employees. As of December 25, 2015, there were 310 share options outstanding under Fabrinet’s Amended and Restated 1999 Share Option Plan (the “1999 Plan”). Additional option grants may not be made under the 1999 Plan. As of December 25, 2015, there were an aggregate of 660,717 share options outstanding, 1,276,859 restricted share units outstanding, and 2,499,260 ordinary shares available for future grant under Fabrinet’s 2010 Performance Incentive Plan (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 seven 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 summarizes share option activity: Number of Shares Number of Weighted- Per Share Weighted- Per Share Balance as of June 26, 2015 792,019 758,451 $ 16.33 Granted — — — Exercised (130,779 ) $ 15.48 Forfeited (213 ) $ 14.43 Expired — — Balance as of December 25, 2015 661,027 660,035 $ 16.50 Number of Shares Number of Weighted- Per Share Weighted- Per Share Balance as of June 27, 2014 865,890 666,305 $ 16.27 Granted — — — Exercised (26,677 ) $ 15.58 Forfeited (3,521 ) $ 16.93 Expired (3,804 ) $ 19.47 Balance as of December 26, 2014 831,888 743,800 $ 16.27 The following summarizes information for share options outstanding as of December 25, 2015 under the Share Option Plans: Number of Exercise Weighted- Aggregate (amount in 310 $ 5.75 0.90 345,338 $ 16.83 1.80 30,000 $ 15.05 1.86 23,844 $ 25.50 2.05 7,400 $ 26.16 2.11 8,300 $ 23.62 2.36 25,859 $ 15.16 2.65 191,121 $ 14.12 2.88 22,760 $ 19.36 3.13 5,550 $ 18.60 3.18 545 $ 12.83 3.37 Options outstanding 661,027 2.23 $ 5,043 Options exercisable 660,035 2.22 $ 5,037 As of December 25, 2015, there was $60 of unrecognized compensation expense related to share options under the Share Option Plans that is expected to be recognized over a weighted-average period of 0.18 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 two 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. The following summarizes restricted share unit activity under the 2010 Plan: Number of Shares Weighted- Per Share Balance as of June 26, 2015 1,140,927 $ 16.03 Granted 539,772 $ 19.57 Issued (388,425 ) (1) $ 15.27 Forfeited (15,415 ) $ 18.39 Balance as of December 25, 2015 1,276,859 $ 17.27 Number of Shares Weighted- Per Share Balance as of June 27, 2014 762,295 $ 14.23 Granted 557,798 $ 17.62 Issued (209,119 ) (2) $ 17.72 Forfeited (13,370 ) $ 15.68 Balance as of December 26, 2014 1,097,604 $ 16.03 (1) Includes 849 shares vested on December 1, 2015, but not settled as of December 25, 2015. (2) Includes 283 shares vested on December 23, 2014, but not settled as of December 26, 2014. As of December 25, 2015, there was $11.4 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 2.92 years. For the six months ended December 25, 2015 and December 26, 2014, the Company withheld an aggregate of 84,269 shares and 16,399 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 the six months ended December 25, 2015 and December 26, 2014, the Company then remitted cash of $1.7 million and $0.3 million, respectively, to the appropriate taxing authorities, and presented it in a financing activity within the unaudited condensed 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. |
Shareholders' equity
Shareholders' equity | 6 Months Ended |
Dec. 25, 2015 | |
Shareholders' equity | 13. Shareholders’ equity Share capital 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. For the six months ended December 25, 2015, Fabrinet issued 130,779 ordinary shares upon the exercise of options, for cash consideration at a weighted-average exercise price of $15.48 per share, and 303,307 ordinary shares upon the vesting of restricted share units, net of shares withheld. For the six months ended December 26, 2014, Fabrinet issued 26,677 ordinary shares upon the exercise of options, for cash consideration at a weighted-average exercise price of $15.58 per share, and 192,437 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 | 6 Months Ended |
Dec. 25, 2015 | |
Accumulated other comprehensive loss | 14. Accumulated other comprehensive loss The changes in accumulated other comprehensive loss, net of tax, for the six months ended December 25, 2015 were as follows: (amount in thousands) Unrealized Losses on Marketable Securities Other Total Balance as of June 26, 2015 $ (44 ) $ — $ (44 ) Other comprehensive loss before reclassification adjustment (218 ) (48 ) (266 ) Amounts reclassified out of accumulated other comprehensive loss 43 — 43 Tax effects — — — Other comprehensive loss $ (175 ) $ (48 ) $ (223 ) Balance as of December 25, 2015 $ (219 ) $ (48 ) $ (267 ) |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Dec. 25, 2015 | |
Commitments and contingencies | 15. Commitments and contingencies Bank guarantees As of December 25, 2015 and June 26, 2015, 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 $0.8 million, respectively. Operating lease commitments The Company leases a portion of its office, capital equipment, and certain land and buildings for its facilities in the Cayman Islands, China, and New Jersey under operating lease arrangements that expire in various calendar years through 2020. Rental expense under these operating leases amounted to $0.6 million and $0.5 million for the six months ended December 25, 2015 and December 26, 2014, respectively. As of December 25, 2015, the future minimum lease payments due under non-cancelable leases were as follows at the end of each fiscal year below: (amount in thousands) 2016 $ 590 2017 1,034 2018 1,034 2019 572 2020 368 Thereafter 19 Total minimum operating lease payments $ 3,617 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 December 25, 2015, the Company had an outstanding commitment to third parties of approximately $33.3 million, mainly related to the construction of a new manufacturing building at the Company’s Chonburi campus. 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. |
Business segments and geographi
Business segments and geographic information | 6 Months Ended |
Dec. 25, 2015 | |
Business segments and geographic information | 16. 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 December 25, 2015 and December 26, 2014, 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 customers. The Company operates primarily in three geographic regions: North America, Asia-Pacific and Europe. The following table presents total revenues by geographic regions: Three Months Ended Six Months Ended (amount in thousands) December 25, December 26, December 25, 2015 December 26, 2014 North America $ 124,154 $ 93,658 $ 230,597 $ 184,701 Asia-Pacific 84,354 70,914 168,243 148,716 Europe 24,530 23,781 50,631 44,261 $ 233,038 $ 188,353 $ 449,471 $ 377,678 As of December 25, 2015 and December 26, 2014, the Company had approximately $33.6 million and $0.3 million of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific. Significant customers The Company had three and two customers that each contributed to 10% or more of its total account receivable as of December 25, 2015 and June 26, 2015, respectively. |
Other expenses in relation to f
Other expenses in relation to flood | 6 Months Ended |
Dec. 25, 2015 | |
Other expenses in relation to flood | 17. Other expenses in relation to flood During the week of August 10, 2015, the Company’s subsidiary in China temporarily suspended production in its manufacturing facility due to flooding caused by Typhoon Soudelor. The subsidiary resumed operations on August 15, 2015. During the three months ended December 25, 2015, the Company did not recognize expenses in relation to flood. During the six months ended December 25, 2015, the Company recognized $0.9 million of losses incurred from the event in the unaudited condensed consolidated statements of operations and comprehensive income and submitted claims to its insurers for inventory and equipment losses attributable to the effects of the flooding. A number of exclusions and limitations in the insurance policies (such as coinsurance, facilities location sub-limits and policy covenants) may reduce the aggregate amount that the Company will ultimately recover from its insurers. Based on the information that the Company has at this time, the Company believes that it will ultimately recover a majority of its losses. The Company will recognize insurance recoveries if and when they become realizable and probable. The following is a summary of all known losses incurred from this event and recognized in the unaudited condensed consolidated statements of operations and comprehensive income for the six months ended December 25, 2015. (amount in thousands) Loss from inventory $ 233 Repaired costs of equipment 567 Flood protection and salvage expenses 64 Total $ 864 |
Subsequent event
Subsequent event | 6 Months Ended |
Dec. 25, 2015 | |
Subsequent event | 18. Subsequent event During January 2016, the Company incurred severance expenses of approximately $0.7 million in connection with a separation agreement which the Company entered into with a former named executive officer who resigned from the Company effective December 31, 2015. |
Accounting policies (Policies)
Accounting policies (Policies) | 6 Months Ended |
Dec. 25, 2015 | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of December 25, 2015 and for the three and six months ended December 25, 2015 and December 26, 2014 includes only normal recurring adjustments, necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 26, 2015. The balance sheet as of June 26, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and six months ended December 25, 2015 and December 26, 2014 may not be indicative of results for the year ending June 24, 2016 or any future periods. |
Use of estimates | Use of Estimates The preparation of the Company’s condensed 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 expenses 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. |
Fiscal years | Fiscal years The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. The three months ended December 25, 2015 and December 26, 2014 each consisted of 13 weeks. The six months ended December 25, 2015 and December 26, 2014 each consisted of 26 weeks. Fiscal year 2016 will be comprised of 52 weeks and will end on June 24, 2016. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, 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. |
New Accounting Pronouncements - not yet adopted by the Company | New Accounting Pronouncements – not yet adopted by the Company In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This new guidance makes targeted improvements to existing U.S. GAAP by requiring certain equity investments to be measured at fair value, requiring use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes and requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The ASU on recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which will require entities to present deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) as non-current in a classified balance sheet. The ASU simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current and non-current in a classified balance sheet. For public business entities, the amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements”. This ASU amended the presentation or subsequent measurement of debt issuance costs related to the line-of-credit arrangement. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 666): Deferral of the Effective Date”. This amendment deferred the effective date of ASU 2014-09 for all entities by one year. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In July 2015, the FASB issued 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 FASB issued 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, for each annual and interim reporting period, 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 ASU is effective for annual periods and interim reporting periods beginning after December 15, 2016. The Company does not expect that the adoption of this update 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. This update is required to be adopted by all public companies for annual periods and interim reporting periods beginning after December 15, 2015. Early adoption of this ASU is permitted. The Company does not expect that the adoption of this update will have an effect 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 ASU 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 ASU 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 evaluating the impact of adoption of this update on its consolidated financial statements. |
Earnings per ordinary share (Ta
Earnings per ordinary share (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Earnings Per Ordinary Share | The earnings per ordinary share was calculated as follows: Three Months Ended Six Months Ended (amount in thousands except per share amounts) December 25, December 26, December 25, 2015 December 26, 2014 Net income attributable to shareholders $ 19,803 $ 8,726 $ 21,406 $ 19,762 Weighted-average number of ordinary shares outstanding (thousands of shares) 35,812 35,349 35,695 35,289 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 1,014 568 875 463 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 36,826 35,917 36,570 35,752 Basic earnings per ordinary share $ 0.55 $ 0.25 $ 0.60 $ 0.56 Diluted earnings per ordinary share $ 0.54 $ 0.24 $ 0.59 $ 0.55 Outstanding share options excluded in the computation of diluted earnings per ordinary share (1) 31,244 71,580 31,244 71,580 (1) These share options were not included in the computation of diluted earnings per ordinary share because the exercise price of the options was greater than the average market price of the underlying shares. |
Cash, cash equivalents and ma26
Cash, cash equivalents and marketable securities (Tables) | 6 Months Ended |
Dec. 25, 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 December 25, 2015 Cash $ — $ — $ 119,987 $ — Cash equivalents 11,372 — 11,372 — Corporate bonds and commercial papers 113,942 (148 ) — 113,794 U.S. agency and U.S. treasury securities 20,745 (71 ) — 20,674 Sovereign and municipal securities 731 — — 731 Total $ 146,790 $ (219 ) $ 131,359 $ 135,199 Fair Value (amount in thousands) Carrying 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 |
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 December 25, 2015: (amount in thousands) Carrying Fair Value Due within one year $ 16,075 $ 16,068 Due between one to three years 119,343 119,131 Total $ 135,418 $ 135,199 |
Fair value of financial instr27
Fair value of financial instruments (Tables) | 6 Months Ended |
Dec. 25, 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 Using (amount in thousands) Level 1 Level 2 Level 3 Total As of December 25, 2015 Assets Cash equivalents $ — $ 11,372 $ — $ 11,372 Corporate bonds and commercial papers — 113,794 — 113,794 U.S. agency and U.S. treasury securities — 20,674 — 20,674 Sovereign and municipal securities — 731 — 731 Total $ — $ 146,571 $ — $ 146,571 Liabilities Derivative liabilities $ — $ 6,209 (1) $ — $ 6,209 Total $ — $ 6,209 $ — $ 6,209 Fair Value Measurements at Reporting Date Using (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 (2) — 4 Total $ — $ 150,300 $ — $ 150,300 Liabilities Derivative liabilities $ — $ 371 (3) $ — $ 371 Total $ — $ 371 $ — $ 371 (1) Foreign currency forward contracts with notional amount of $181.5 million and Canadian Dollars 0.4 million. (2) Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian Dollars 0.4 million. (3) Foreign currency options with notional amount of $41.0 million. |
Allowance for doubtful accoun28
Allowance for doubtful accounts (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Activities and Balances for Allowance for Doubtful Accounts | The activities and balances for allowance for doubtful accounts were as follows: Six Months Ended (amount in thousands) December 25, 2015 December 26, 2014 Balance, beginning of period $ 50 $ 37 Credited to income (7 ) (3 ) Balance, end of period $ 43 $ 34 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Inventories | (amount in thousands) As of December 25, 2015 As of June 26, 2015 Raw materials $ 49,306 $ 46,065 Work in progress 70,817 69,174 Finished goods 17,770 11,843 Goods in transit 5,448 6,488 143,341 133,570 Less: Inventory obsolescence (2,479 ) (2,957 ) Inventory, net $ 140,862 $ 130,613 |
Intangibles (Tables)
Intangibles (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Intangibles | The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated Net As of December 25, 2015 Software $ 3,567 $ (3,246 ) $ 321 Total intangibles $ 3,567 $ (3,246 ) $ 321 (amount in thousands) Gross Accumulated Net As of June 26, 2015 Software $ 3,357 $ (3,220 ) $ 137 Total intangibles $ 3,357 $ (3,220 ) $ 137 |
Estimated Future Amortization of Intangibles | Based on the carrying amount of intangibles as of December 25, 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 thousands) 2016 $ 37 2017 70 2018 69 2019 69 2020 64 Thereafter 12 Total $ 321 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Dec. 25, 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 December 25, As of June 26, 2015 Short-term borrowing: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months January 2016 (2) $ 48,000 $ 30,000 Current portion of long-term borrowing 6,000 6,000 $ 54,000 $ 36,000 Long-term borrowing: LIBOR + 2.8% per annum Repayable in quarterly installments within 6 years March 2017 $ 7,500 $ 10,500 Less: (6,000 ) (6,000 ) Non-current portion $ 1,500 $ 4,500 (1) LIBOR is London Interbank Offered Rate. (2) In January 2016, the maturity date of these revolving borrowings were extended to mature in February 2016. |
Movements of Long-Term Loans | The movements of long-term loans were as follows for the six months ended December 25, 2015 and December 26, 2014: Six Months Ended (amount in thousands) December 25, 2015 December 26, 2014 Opening book amount $ 10,500 $ 16,500 Repayment during the period (3,000 ) (3,000 ) Closing book amount $ 7,500 $ 13,500 |
Future Maturities of Long-Term Debt | As of December 25, 2015, future maturities of long-term debt during each fiscal year were as follows: (amount in thousands) 2016 $ 3,000 2017 4,500 Total $ 7,500 |
Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing | Undrawn available credit facilities classified by available period of future borrowing as of December 25, 2015 and June 26, 2015 were as follows: (amount in thousands) December 25, 2015 June 26, 2015 Short-term $ 1,386 $ 1,480 Long-term $ 152,000 $ 170,000 |
Share-based compensation (Table
Share-based compensation (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Effect of Recording Share-Based Compensation Expense | The effect of recording share-based compensation expense for the three and six months ended December 25, 2015 and December 26, 2014 was as follows: Three Months Ended Six Months Ended (amount in thousands) December 25, December 26, December 25, 2015 December 26, 2014 Share-based compensation expense by type of award: Share options $ 2 $ 71 $ 18 $ 191 Restricted share units 3,108 1,859 5,765 3,606 Total share-based compensation expense 3,110 1,930 5,783 3,797 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 3,110 $ 1,930 $ 5,783 $ 3,797 |
Share-Based Compensation Expense Recorded in unaudited Condensed Consolidated Statements of Operations and Comprehensive Income | Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended Six Months Ended (amount in thousands) December 25, December 26, December 25, 2015 December 26, 2014 Cost of revenue $ 540 $ 360 $ 1,077 $ 728 Selling, general and administrative expense 2,570 1,570 4,706 3,069 Total share-based compensation expense $ 3,110 $ 1,930 $ 5,783 $ 3,797 |
Share Option Activity | The following summarizes share option activity: Number of Shares Number of Weighted- Per Share Weighted- Per Share Balance as of June 26, 2015 792,019 758,451 $ 16.33 Granted — — — Exercised (130,779 ) $ 15.48 Forfeited (213 ) $ 14.43 Expired — — Balance as of December 25, 2015 661,027 660,035 $ 16.50 Number of Shares Number of Weighted- Per Share Weighted- Per Share Balance as of June 27, 2014 865,890 666,305 $ 16.27 Granted — — — Exercised (26,677 ) $ 15.58 Forfeited (3,521 ) $ 16.93 Expired (3,804 ) $ 19.47 Balance as of December 26, 2014 831,888 743,800 $ 16.27 |
Information for Share Options Outstanding | The following summarizes information for share options outstanding as of December 25, 2015 under the Share Option Plans: Number of Exercise Weighted- Aggregate (amount in 310 $ 5.75 0.90 345,338 $ 16.83 1.80 30,000 $ 15.05 1.86 23,844 $ 25.50 2.05 7,400 $ 26.16 2.11 8,300 $ 23.62 2.36 25,859 $ 15.16 2.65 191,121 $ 14.12 2.88 22,760 $ 19.36 3.13 5,550 $ 18.60 3.18 545 $ 12.83 3.37 Options outstanding 661,027 2.23 $ 5,043 Options exercisable 660,035 2.22 $ 5,037 |
Restricted Share Unit Activity | The following summarizes restricted share unit activity under the 2010 Plan: Number of Shares Weighted- Per Share Balance as of June 26, 2015 1,140,927 $ 16.03 Granted 539,772 $ 19.57 Issued (388,425 ) (1) $ 15.27 Forfeited (15,415 ) $ 18.39 Balance as of December 25, 2015 1,276,859 $ 17.27 Number of Shares Weighted- Per Share Balance as of June 27, 2014 762,295 $ 14.23 Granted 557,798 $ 17.62 Issued (209,119 ) (2) $ 17.72 Forfeited (13,370 ) $ 15.68 Balance as of December 26, 2014 1,097,604 $ 16.03 (1) Includes 849 shares vested on December 1, 2015, but not settled as of December 25, 2015. (2) Includes 283 shares vested on December 23, 2014, but not settled as of December 26, 2014. |
Accumulated other comprehensi33
Accumulated other comprehensive loss (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Changes in Accumulated Other Comprehensive Loss, Net of Tax | The changes in accumulated other comprehensive loss, net of tax, for the six months ended December 25, 2015 were as follows: (amount in thousands) Unrealized Losses on Marketable Securities Other Total Balance as of June 26, 2015 $ (44 ) $ — $ (44 ) Other comprehensive loss before reclassification adjustment (218 ) (48 ) (266 ) Amounts reclassified out of accumulated other comprehensive loss 43 — 43 Tax effects — — — Other comprehensive loss $ (175 ) $ (48 ) $ (223 ) Balance as of December 25, 2015 $ (219 ) $ (48 ) $ (267 ) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Future Minimum Lease Payments Due Under Non-Cancelable Leases | As of December 25, 2015, the future minimum lease payments due under non-cancelable leases were as follows at the end of each fiscal year below: (amount in thousands) 2016 $ 590 2017 1,034 2018 1,034 2019 572 2020 368 Thereafter 19 Total minimum operating lease payments $ 3,617 |
Business segments and geograp35
Business segments and geographic information (Tables) | 6 Months Ended |
Dec. 25, 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: Three Months Ended Six Months Ended (amount in thousands) December 25, December 26, December 25, 2015 December 26, 2014 North America $ 124,154 $ 93,658 $ 230,597 $ 184,701 Asia-Pacific 84,354 70,914 168,243 148,716 Europe 24,530 23,781 50,631 44,261 $ 233,038 $ 188,353 $ 449,471 $ 377,678 |
Other expenses in relation to36
Other expenses in relation to flood (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Summary of Costs Incurred in Relation to Flooding | The following is a summary of all known losses incurred from this event and recognized in the unaudited condensed consolidated statements of operations and comprehensive income for the six months ended December 25, 2015. (amount in thousands) Loss from inventory $ 233 Repaired costs of equipment 567 Flood protection and salvage expenses 64 Total $ 864 |
Earnings Per Ordinary Share (De
Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Net income attributable to shareholders | $ 19,803 | $ 8,726 | $ 21,406 | $ 19,762 | |
Weighted-average number of ordinary shares outstanding (thousands of shares) | 35,812 | 35,349 | 35,695 | 35,289 | |
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) | 1,014 | 568 | 875 | 463 | |
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) | 36,826 | 35,917 | 36,570 | 35,752 | |
Basic earnings per ordinary share | $ 0.55 | $ 0.25 | $ 0.60 | $ 0.56 | |
Diluted earnings per ordinary share | $ 0.54 | $ 0.24 | $ 0.59 | $ 0.55 | |
Outstanding share options excluded in the computation of diluted earnings per ordinary share | [1] | 31,244 | 71,580 | 31,244 | 71,580 |
[1] | These share options were not included in the computation of diluted earnings per ordinary share 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 | Dec. 25, 2015 | Jun. 26, 2015 | Dec. 26, 2014 | Jun. 27, 2014 |
Cash, cash equivalents and marketable securities [Line Items] | ||||
Carrying Cost | $ 146,790 | $ 150,340 | ||
Unrealized (loss)/Gain | (219) | (44) | ||
Cash and cash equivalents | 131,359 | 112,978 | $ 111,971 | $ 233,477 |
Marketable securities | 135,199 | 142,866 | ||
Cash | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Cash and cash equivalents | 119,987 | 105,548 | ||
Cash Equivalents | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Carrying Cost | 11,372 | 7,430 | ||
Cash and cash equivalents | 11,372 | 7,430 | ||
Corporate bonds and commercial papers | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Carrying Cost | 113,942 | 120,144 | ||
Unrealized (loss)/Gain | (148) | (43) | ||
Marketable securities | 113,794 | 120,101 | ||
U.S. agency and U.S. treasury securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Carrying Cost | 20,745 | 21,029 | ||
Unrealized (loss)/Gain | (71) | (2) | ||
Marketable securities | 20,674 | 21,027 | ||
Sovereign And Municipal Securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Carrying Cost | 731 | 1,737 | ||
Unrealized (loss)/Gain | 1 | |||
Marketable securities | $ 731 | $ 1,738 |
Cash, Cash Equivalents and Ma39
Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) | 3 Months Ended | 6 Months Ended |
Dec. 25, 2015USD ($) | Dec. 25, 2015USD ($) | |
Cash, cash equivalents and marketable securities [Line Items] | ||
Net realized loss recognized on investments | $ (30,000) | $ (100,000) |
Impairment losses | 0 | 0 |
Cash, cash equivalents and marketable securities at financial institutions located in the United States | $ 40,000,000 | $ 40,000,000 |
Minimum | ||
Cash, cash equivalents and marketable securities [Line Items] | ||
Maturities Period of Short-term marketable securities | 3 months | |
Maximum | ||
Cash, cash equivalents and marketable securities [Line Items] | ||
Maturities Period of Short-term marketable securities | 3 years |
Available-for-Sale Securities B
Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 26, 2015 |
Adjusted cost | ||
Due within one year | $ 16,075 | |
Due between one to three years | 119,343 | |
Total | 135,418 | |
Fair value | ||
Due within one year | 16,068 | |
Due between one to three years | 119,131 | |
Total | $ 135,199 | $ 142,866 |
Financial Instruments Measured
Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 26, 2015 | |||
Assets | |||||
Total | $ 146,571 | $ 150,300 | |||
Derivative assets | 4 | ||||
Liabilities | |||||
Derivative liabilities | 6,209 | 371 | |||
Total | 6,209 | 371 | |||
Cash Equivalents | |||||
Assets | |||||
Marketable securities | 11,372 | 7,430 | |||
Corporate bonds and commercial papers | |||||
Assets | |||||
Marketable securities | 113,794 | 120,101 | |||
U.S. agency and U.S. treasury securities | |||||
Assets | |||||
Marketable securities | 20,674 | 21,027 | |||
Sovereign And Municipal Securities | |||||
Assets | |||||
Marketable securities | 731 | 1,738 | |||
Significant Other Observable Inputs (Level 2) | |||||
Assets | |||||
Total | 146,571 | 150,300 | |||
Derivative assets | [1] | 4 | |||
Liabilities | |||||
Derivative liabilities | 6,209 | [2] | 371 | [3] | |
Total | 6,209 | 371 | |||
Significant Other Observable Inputs (Level 2) | Cash Equivalents | |||||
Assets | |||||
Marketable securities | 11,372 | 7,430 | |||
Significant Other Observable Inputs (Level 2) | Corporate bonds and commercial papers | |||||
Assets | |||||
Marketable securities | 113,794 | 120,101 | |||
Significant Other Observable Inputs (Level 2) | U.S. agency and U.S. treasury securities | |||||
Assets | |||||
Marketable securities | 20,674 | 21,027 | |||
Significant Other Observable Inputs (Level 2) | Sovereign And Municipal Securities | |||||
Assets | |||||
Marketable securities | $ 731 | $ 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 forward contracts with notional amount of $181.5 million and Canadian Dollars 0.4 million. | ||||
[3] | Foreign currency options with notional amount of $41.0 million. |
Financial Instruments Measure42
Financial Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Fair Value, Measurements, Recurring CAD in Millions, $ in Millions | Dec. 25, 2015USD ($) | Dec. 25, 2015CAD | Jun. 26, 2015USD ($) | Jun. 26, 2015CAD |
Foreign currency options | ||||
Fair Value Measurements at Reporting Date Using | ||||
Derivative liabilities, notional amount | $ 41 | |||
Derivative assets, notional amount | $ 3 | |||
Foreign currency forward contracts | ||||
Fair Value Measurements at Reporting Date Using | ||||
Derivative liabilities, notional amount | $ 181.5 | CAD 0.4 | ||
Derivative assets, notional amount | CAD | CAD 0.4 |
Fair Value of Financial Instr43
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Foreign exchange gain (loss), net | $ 6,166 | $ 83 | $ (4,326) | $ (23) |
Foreign currency forward contracts | Not Designated as Hedging Instrument | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Foreign exchange gain (loss), net | $ 6,200 | |||
Foreign currency options | Not Designated as Hedging Instrument | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Foreign currency exchange gain | 20 | |||
Foreign currency exchange loss | $ 100 |
Activities and Balances for All
Activities and Balances for Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Credited to income | $ (7) | $ (3) |
Allowance for Doubtful Accounts | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance, beginning of period | 50 | 37 |
Credited to income | (7) | (3) |
Balance, end of period | $ 43 | $ 34 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 26, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 49,306 | $ 46,065 |
Work in progress | 70,817 | 69,174 |
Finished goods | 17,770 | 11,843 |
Goods in transit | 5,448 | 6,488 |
Inventory, Gross, Total | 143,341 | 133,570 |
Less: Inventory obsolescence | (2,479) | (2,957) |
Inventory, net | $ 140,862 | $ 130,613 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) $ in Millions | Dec. 22, 2015USD ($) |
Property, Plant and Equipment [Line Items] | |
Purchase price of land | $ 12.4 |
Intangibles (Detail)
Intangibles (Detail) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 26, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,567 | $ 3,357 |
Accumulated Amortization | (3,246) | (3,220) |
Net | 321 | 137 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,567 | 3,357 |
Accumulated Amortization | (3,246) | (3,220) |
Net | $ 321 | $ 137 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense related to intangibles | $ 10 | $ 20 | $ 26 | $ 42 |
Estimated Future Amortization o
Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 26, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | $ 37 | |
2,017 | 70 | |
2,018 | 69 | |
2,019 | 69 | |
2,020 | 64 | |
Thereafter | 12 | |
Net | $ 321 | $ 137 |
Total Borrowing, Including Revo
Total Borrowing, Including Revolving and Long-Term Borrowings (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||||
Dec. 25, 2015 | Jun. 26, 2015 | Dec. 26, 2014 | Jun. 27, 2014 | ||
Debt Instrument [Line Items] | |||||
Revolving borrowing | $ 48,000 | $ 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 bank | 54,000 | 36,000 | |||
Long-term borrowing | 7,500 | 10,500 | $ 13,500 | $ 16,500 | |
Non-current portion | $ 1,500 | $ 4,500 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Rate | [1] | LIBOR + 1.75% per annum | |||
Conditions | Repayable in 1 to 6 months | ||||
Term | [2] | 2016-01 | |||
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Repayment duration | 1 month | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Repayment duration | 6 months | ||||
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 | ||||
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 | |||||
Debt Instrument [Line Items] | |||||
Margin above LIBOR | 1.75% | ||||
LIBOR | Long-term borrowing | |||||
Debt Instrument [Line Items] | |||||
Margin above LIBOR | 2.80% | ||||
[1] | LIBOR is London Interbank Offered Rate. | ||||
[2] | In January 2016, the maturity date of these revolving borrowings were extended to mature in February 2016. |
Total Borrowing, Including Re51
Total Borrowing, Including Revolving and Long-Term Borrowings (Parenthetical) (Detail) | Jan. 31, 2016 |
Subsequent Event | |
Debt Instrument [Line Items] | |
Term | 2016-02 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Jan. 31, 2016 | Dec. 25, 2015 | Jun. 26, 2015 | |
Line of Credit Facility [Line Items] | ||||
Line of credit facility borrowing capacity | $ 200,000,000 | |||
Line of credit facility amounts outstanding | 48,000,000 | $ 30,000,000 | ||
Undrawn available credit facilities | 152,000,000 | |||
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% | |||
Bank borrowing No. 1 | Subsidiary | ||||
Line of Credit Facility [Line Items] | ||||
Carrying amount of assets secured and pledged as collateral | $ 48,800,000 | $ 50,000,000 | ||
Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Term | 2016-02 | |||
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 plus a spread of 0.75% to 1.50%, determined in accordance with the Facility Agreement | |||
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 | |||
Term | [1] | 2016-01 | ||
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 | ||||
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 | |||
[1] | In January 2016, the maturity date of these revolving borrowings were extended to mature in February 2016. |
Movements of Long-Term Loans (D
Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Debt Instrument [Line Items] | ||
Opening book amount | $ 10,500 | $ 16,500 |
Repayment during the period | (3,000) | (3,000) |
Closing book amount | $ 7,500 | $ 13,500 |
Future Maturities of Long-Term
Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 26, 2015 | Dec. 26, 2014 | Jun. 27, 2014 |
Debt Instrument [Line Items] | ||||
2,016 | $ 3,000 | |||
2,017 | 4,500 | |||
Long-term borrowing | $ 7,500 | $ 10,500 | $ 13,500 | $ 16,500 |
Undrawn Available Credit Facili
Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing (Detail) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 26, 2015 |
Line of Credit Facility [Line Items] | ||
Undrawn available credit facilities | $ 152,000 | |
Short-term loans | ||
Line of Credit Facility [Line Items] | ||
Undrawn available credit facilities | 1,386 | $ 1,480 |
Long-term loans | ||
Line of Credit Facility [Line Items] | ||
Undrawn available credit facilities | $ 152,000 | $ 170,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | Jun. 26, 2015 | |
Income Taxes [Line Items] | |||||
Liability for uncertain tax positions including accrued interest and penalties | $ 1.7 | $ 1.7 | $ 1.6 | ||
Corporate income tax rate | 6.10% | 10.50% | 10.70% | 9.20% | |
Earliest Tax Year | |||||
Income Taxes [Line Items] | |||||
Tax year remain open to examination | 2,011 | ||||
Latest Tax Year | |||||
Income Taxes [Line Items] | |||||
Tax year remain open to examination | 2,015 |
Effect of Recording Share-Based
Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Share-based compensation expense by type of award: | ||||
Share options | $ 2 | $ 71 | $ 18 | $ 191 |
Restricted share units | 3,108 | 1,859 | 5,765 | 3,606 |
Total share-based compensation expense | 3,110 | 1,930 | 5,783 | 3,797 |
Tax effect on share-based compensation expense | 0 | 0 | 0 | 0 |
Net effect on share-based compensation expense | $ 3,110 | $ 1,930 | $ 5,783 | $ 3,797 |
Share-Based Compensation Expens
Share-Based Compensation Expense Recorded in Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 3,110 | $ 1,930 | $ 5,783 | $ 3,797 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 540 | 360 | 1,077 | 728 |
Selling, general and administrative expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 2,570 | $ 1,570 | $ 4,706 | $ 3,069 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | May. 24, 2015 | Dec. 25, 2015USD ($)Installmentshares | Dec. 26, 2014USD ($)shares | Jun. 26, 2015shares | Jun. 27, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes | 84,269 | 16,399 | |||
Tax withholdings related to net share settlement of restricted share units | $ | $ 1,711,000 | $ 293,000 | |||
Stock Plan 1999 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share options outstanding | 310 | ||||
Stock Plan 2010 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share options outstanding | 660,717 | ||||
Ordinary shares available for future grant | 2,499,260 | ||||
Restricted Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award granted vesting period, year | 4 years | ||||
Award granted, equal installments | Installment | 4 | ||||
Restricted Share Units | Stock Plan 2010 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted share units outstanding | 1,276,859 | 1,097,604 | 1,140,927 | 762,295 | |
Unrecognized share-based compensation expense | $ | $ 11,400,000 | ||||
Unrecognized compensation expense, weighted-average period for recognition | 2 years 11 months 1 day | ||||
Restricted Share Units | Non Employee Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award granted vesting period, year | 1 year | ||||
Restricted Share Units | Non Employee Director | Vest on the first of January | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 100.00% | ||||
Restricted Share Units | Executive of the Company | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award granted vesting period, year | 2 years | ||||
Restricted Share Units | Executive of the Company | If the executive's employment with the Company continues through and including February 20, 2017. | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 100.00% | ||||
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 | $ | $ 60 | ||||
Unrecognized compensation expense, weighted-average period for recognition | 2 months 5 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 Option Activity (Detail)
Share Option Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares | 6 Months Ended | |||
Dec. 25, 2015 | Dec. 26, 2014 | Jun. 26, 2015 | Jun. 27, 2014 | |
Number of shares | ||||
Beginning balance | 792,019 | 865,890 | ||
Granted | 0 | 0 | ||
Exercised | (130,779) | (26,677) | ||
Forfeited | (213) | (3,521) | ||
Expired | (3,804) | |||
Ending balance | 661,027 | 831,888 | ||
Number of Exercisable Options | ||||
Number of Exercisable Options | 660,035 | 743,800 | 758,451 | 666,305 |
Weighted-Average Exercise Price per share | ||||
Beginning balance | $ 16.33 | $ 16.27 | ||
Granted | 0 | 0 | ||
Exercised | 15.48 | 15.58 | ||
Forfeited | 14.43 | 16.93 | ||
Expired | 19.47 | |||
Ending balance | 16.50 | 16.27 | ||
Weighted-Average Grant Date Fair Value | ||||
Granted | $ 0 | $ 0 |
Information for Share Options O
Information for Share Options Outstanding (Detail) $ / shares in Units, $ in Thousands | 6 Months Ended |
Dec. 25, 2015USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, outstanding | 661,027 |
Options outstanding, weighted average remaining contractual life (years) | 2 years 2 months 23 days |
Options outstanding, aggregate intrinsic value | $ | $ 5,043 |
Exercise Price 1 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, outstanding | 310 |
Exercise Price Per Share | $ / shares | $ 5.75 |
Options outstanding, weighted average remaining contractual life (years) | 10 months 24 days |
Exercise Price 2 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, outstanding | 345,338 |
Exercise Price Per Share | $ / shares | $ 16.83 |
Options outstanding, weighted average remaining contractual life (years) | 1 year 9 months 18 days |
Exercise Price 3 | |
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 | $ / shares | $ 15.05 |
Options outstanding, weighted average remaining contractual life (years) | 1 year 10 months 10 days |
Exercise Price 4 | |
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 | $ / shares | $ 25.50 |
Options outstanding, weighted average remaining contractual life (years) | 2 years 18 days |
Exercise Price 5 | |
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 | $ / shares | $ 26.16 |
Options outstanding, weighted average remaining contractual life (years) | 2 years 1 month 10 days |
Exercise Price 6 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, outstanding | 8,300 |
Exercise Price Per Share | $ / shares | $ 23.62 |
Options outstanding, weighted average remaining contractual life (years) | 2 years 4 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 | 25,859 |
Exercise Price Per Share | $ / shares | $ 15.16 |
Options outstanding, weighted average remaining contractual life (years) | 2 years 7 months 24 days |
Exercise Price 8 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, outstanding | 191,121 |
Exercise Price Per Share | $ / shares | $ 14.12 |
Options outstanding, weighted average remaining contractual life (years) | 2 years 10 months 17 days |
Exercise Price 9 | |
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 | $ / shares | $ 19.36 |
Options outstanding, weighted average remaining contractual life (years) | 3 years 1 month 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 | 5,550 |
Exercise Price Per Share | $ / shares | $ 18.60 |
Options outstanding, weighted average remaining contractual life (years) | 3 years 2 months 5 days |
Exercise Price 11 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, outstanding | 545 |
Exercise Price Per Share | $ / shares | $ 12.83 |
Options outstanding, weighted average remaining contractual life (years) | 3 years 4 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 | 660,035 |
Options exercisable, weighted average remaining contractual life (years) | 2 years 2 months 19 days |
Options exercisable, aggregate intrinsic value | $ | $ 5,037 |
Restricted Share Unit Activity
Restricted Share Unit Activity (Detail) - Stock Plan 2010 - Restricted Share Units - $ / shares | 6 Months Ended | |||
Dec. 25, 2015 | Dec. 26, 2014 | |||
Number of restricted share units | ||||
Number of restricted share units, beginning balance | 1,140,927 | 762,295 | ||
Number of restricted share units, Granted | 539,772 | 557,798 | ||
Number of restricted share units, Issued | (388,425) | [1] | (209,119) | [2] |
Number of restricted share units, Forfeited | (15,415) | (13,370) | ||
Number of restricted share units, ending balance | 1,276,859 | 1,097,604 | ||
Weighted Average Grant Date Fair Value Per Share | ||||
Weighted-average grant date fair value per share, Beginning Balance | $ 16.03 | $ 14.23 | ||
Weighted-average grant date fair value per share, Granted | 19.57 | 17.62 | ||
Weighted-average grant date fair value per share, Issued | 15.27 | 17.72 | ||
Weighted-average grant date fair value per share, Forfeited | 18.39 | 15.68 | ||
Weighted-average grant date fair value per share, Ending Balance | $ 17.27 | $ 16.03 | ||
[1] | Includes 849 shares vested on December 1, 2015, but not settled as of December 25, 2015. | |||
[2] | Includes 283 shares vested on December 23, 2014, but not settled as of December 26, 2014. |
Restricted Share Unit Activit63
Restricted Share Unit Activity (Parenthetical) (Detail) - shares | Dec. 01, 2015 | Dec. 23, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted share unit of shares vested but not settled | 849 | 283 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Jun. 26, 2015 | |
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 | 130,779 | 26,677 | |
Ordinary shares issued upon exercise of options, weight average exercise price | $ 15.48 | $ 15.58 | |
Ordinary shares issued upon vesting of restricted shares | 303,307 | 192,437 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance as of June 26, 2015 | $ (44) | |||
Other comprehensive loss before reclassification adjustment | (266) | |||
Amounts reclassified out of accumulated other comprehensive loss | 43 | |||
Tax effects | 0 | |||
Total other comprehensive loss, net of tax | $ (310) | $ (486) | (223) | $ (486) |
Balance as of December 25, 2015 | (267) | (267) | ||
Unrealized Holding Loss on Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance as of June 26, 2015 | (44) | |||
Other comprehensive loss before reclassification adjustment | (218) | |||
Amounts reclassified out of accumulated other comprehensive loss | 43 | |||
Tax effects | 0 | |||
Total other comprehensive loss, net of tax | (175) | |||
Balance as of December 25, 2015 | (219) | (219) | ||
Others | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive loss before reclassification adjustment | (48) | |||
Tax effects | 0 | |||
Total other comprehensive loss, net of tax | (48) | |||
Balance as of December 25, 2015 | $ (48) | $ (48) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Jun. 26, 2015 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Outstanding bank guarantees given by banks on behalf of the company | $ 0.8 | $ 0.8 | |
Rental expense under operating leases | 0.6 | $ 0.5 | |
Outstanding commitment to third parties | $ 33.3 | ||
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 | Dec. 25, 2015USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 590 |
2,017 | 1,034 |
2,018 | 1,034 |
2,019 | 572 |
2,020 | 368 |
Thereafter | 19 |
Total minimum operating lease payments | $ 3,617 |
Business Segments and Geograp68
Business Segments and Geographic Information - Additional Information (Detail) $ in Millions | 6 Months Ended | ||
Dec. 25, 2015USD ($)CustomerSegment | Dec. 26, 2014USD ($)Segment | Jun. 26, 2015Customer | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | Segment | 1 | 1 | |
Number of customers | Customer | 3 | 2 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ | $ 33.6 | $ 0.3 |
Total Revenues by Geographic Re
Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||||
Revenues | $ 233,038 | $ 188,353 | $ 449,471 | $ 377,678 |
North America | ||||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||||
Revenues | 124,154 | 93,658 | 230,597 | 184,701 |
Asia Pacific | ||||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||||
Revenues | 84,354 | 70,914 | 168,243 | 148,716 |
Europe | ||||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||||
Revenues | $ 24,530 | $ 23,781 | $ 50,631 | $ 44,261 |
Other Expenses in Relation to70
Other Expenses in Relation to Flood - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Dec. 25, 2015USD ($) | |
Unusual or Infrequent Item [Line Items] | |
Other expenses in relation to flood | $ 864 |
Summary of Losses Incurred in R
Summary of Losses Incurred in Relation to Flood (Detail) $ in Thousands | 6 Months Ended |
Dec. 25, 2015USD ($) | |
Unusual or Infrequent Item [Line Items] | |
Total | $ 864 |
Flooding in China during August 2015 | |
Unusual or Infrequent Item [Line Items] | |
Loss from inventory | 233 |
Repaired costs of equipment | 567 |
Flood protection and salvage expenses | $ 64 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) $ in Millions | 1 Months Ended |
Jan. 31, 2016USD ($) | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Severance expenses | $ 0.7 |