Fabrinet (FN) 10-Q 3 May 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 25, 2016	Apr. 22, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 25, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		36,041,518

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 25, 2016	Jun. 26, 2015
Current assets
Cash and cash equivalents	$ 127,957	$ 112,978
Marketable securities	144,808	142,866
Trade accounts receivable, net	172,129	134,952
Inventory, net	149,982	130,613
Deferred tax assets	1,361	1,662
Prepaid expenses	2,381	2,135
Other current assets	5,136	1,833
Total current assets	603,754	527,039
Non-current assets
Property, plant and equipment, net	160,441	140,654
Intangibles, net	369	137
Deferred tax assets	1,455	2,249
Deferred debt issuance costs and others	2,511	2,424
Total non-current assets	164,776	145,464
Total Assets	768,530	672,503
Current liabilities
Bank borrowings, including revolving loan and current portion of long-term loan from bank	50,000	36,000
Trade accounts payable	146,445	115,319
Income tax payable	1,323	1,470
Accrued payroll, bonus and related expenses	11,340	9,804
Accrued expenses	7,123	6,405
Other payables	12,713	12,050
Total current liabilities	228,944	181,048
Non-current liabilities
Long-term loan from bank, non-current portion		4,500
Deferred tax liability	696	737
Severance liabilities	6,200	5,477
Other non-current liabilities	1,990	1,797
Total non-current liabilities	8,886	12,511
Total Liabilities	$ 237,830	$ 193,559
Commitments and contingencies (Note 14)
Shareholders' equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of March 25, 2016 and June 26, 2015)
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 36,016,245 shares and 35,437,654 shares issued and outstanding as of March 25, 2016 and June 26, 2015, respectively)	$ 360	$ 354
Additional paid-in capital	98,120	89,390
Retained earnings	431,473	389,244
Accumulated other comprehensive income (loss)	747	(44)
Total Shareholders' Equity	530,700	478,944
Total Liabilities and Shareholders' Equity	$ 768,530	$ 672,503

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 25, 2016	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	36,016,245	35,437,654
Ordinary shares, shares outstanding	36,016,245	35,437,654

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	Mar. 25, 2016	Mar. 27, 2015
Revenues	$ 250,888	$ 189,453	$ 700,359	$ 567,131
Cost of revenues	(219,711)	(167,796)	(614,678)	(503,907)
Gross profit	31,177	21,657	85,681	63,224
Selling, general and administrative expenses	(12,299)	(9,670)	(37,914)	(28,721)
Other income related to flooding	900		36
Expenses related to reduction in workforce				(1,153)
Operating income	19,778	11,987	47,803	33,350
Interest income	213	258	1,110	956
Interest expense	(335)	(125)	(1,156)	(375)
Foreign exchange gain (loss), net	3,080	(87)	(1,246)	(110)
Other income (expense)	57	(75)	266	(106)
Income before income taxes	22,793	11,958	46,777	33,715
Income tax expense	(1,971)	(1,113)	(4,549)	(3,108)
Net income	20,822	10,845	42,228	30,607
Other comprehensive income, net of tax:
Change in net unrealized gains on marketable securities	292	512	117	26
Change in net unrealized gains on derivative instruments	722		674
Total other comprehensive income, net of tax	1,014	512	791	26
Net comprehensive income	$ 21,836	$ 11,357	$ 43,019	$ 30,633
Earnings per share
Basic	$ 0.58	$ 0.31	$ 1.18	$ 0.87
Diluted	$ 0.56	$ 0.30	$ 1.15	$ 0.85
Weighted-average number of ordinary shares outstanding(thousands of shares)
Basic	35,964	35,406	35,785	35,328
Diluted	37,089	36,110	36,743	35,871

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015
Cash flows from operating activities
Net income for the period	$ 42,228	$ 30,607
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	12,793	9,322
Gain on disposal of property, plant and equipment	(13)	(41)
Loss from sales and maturities of available-for-sale securities	190	62
Amortization of investment premium	605	757
Amortization of deferred debt issuance costs	543	377
Income related to flooding	(828)
Proceeds from insurer in settlement of claim related to flood damage	272
(Reversal of) allowance for doubtful accounts	(7)	3
Unrealized loss (gain) on exchange rate and fair value of derivative instruments	2,406	(286)
Share-based compensation	7,782	5,806
Deferred income tax	1,054	137
Other non-cash expenses	1,171	1,153
(Reversal of) inventory obsolescence	(344)	332
Loss from written-off inventory due to flood loss	233
Changes in operating assets and liabilities
Trade accounts receivable	(37,015)	(18,832)
Inventory	(19,258)	(2,422)
Other current assets and non-current assets	(3,803)	(570)
Trade accounts payable	30,731	8,419
Income tax payable	(114)	(45)
Other current liabilities and non-current liabilities	2,730	5,702
Net cash provided by operating activities	41,356	40,481
Cash flows from investing activities
Purchase of marketable securities	(85,644)	(159,396)
Proceeds from sales of marketable securities	28,735	22,873
Proceeds from maturities of marketable securities	54,290	10,332
Purchase of property, plant and equipment	(33,545)	(42,980)
Purchase of intangibles	(274)	(34)
Proceeds from disposal of property, plant and equipment	62	46
Proceeds from insurer in settlement of equipment claims related to flood damage	556
Net cash used in investing activities	(35,820)	(169,159)
Cash flows from financing activities
Payment of debt issuance costs	(506)	(1,780)
Proceeds from revolving loans	18,000	30,000
Repayment of long-term loans from bank	(8,500)	(4,500)
Proceeds from issuance of ordinary shares under employee share option plans	3,326	736
Withholding tax related to net share settlement of restricted share units	(2,372)	(334)
Net cash provided by financing activities	9,948	24,122
Net increase (decrease) in cash and cash equivalents	15,484	(104,556)
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	15,484	(104,556)
Effect of exchange rate on cash and cash equivalents	(505)	25
Cash and cash equivalents at end of period	127,957	128,946
Non-cash investing and financing activities
Construction and equipment-related payables	$ 5,068	$ 4,170

Business and organization

Business and organization	9 Months Ended
	Mar. 25, 2016
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	9 Months Ended
	Mar. 25, 2016
Accounting policies	2. Accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of March 25, 2016 and for the three and nine months ended March 25, 2016 and March 27, 2015 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 nine months ended March 25, 2016 and March 27, 2015 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 March 25, 2016 and March 27, 2015 each consisted of 13 weeks. The nine months ended March 25, 2016 and March 27, 2015 each consisted of 39 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. Derivatives The derivatives assets and liabilities are recognized on the consolidated balance sheets as other current assets or accrued expenses at fair value. The Company applies hedge accounting to arrangements that qualify and are designated for cash flow hedge accounting treatment. Hedge accounting is discontinued prospectively if the hedging relationship ceases to be effective or the hedging or hedged items cease to exist as a result of maturity, sale, termination or cancellation. Derivatives designated and qualifying as hedges of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges which include forward currency contracts. In a cash flow hedging relationship, the effective portion of the change in the fair value of the hedging derivative is initially recorded in accumulated other comprehensive income (loss), while any ineffective portion is recognized directly in earnings, as a component of other income (expense). The portion of gain or loss on the derivative instrument remains in accumulated other comprehensive (loss) income until the forecasted transaction is recognized in earnings. The Company also enters into derivative contracts that are intended to economically hedge certain of the Company’s risks. The changes in the fair value of the derivatives are recorded directly in earnings as a component of other income (expense), net. In accordance with the fair value measurement guidance, the Company’s accounting policy is to measure the credit risk of our derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company executes derivative instruments with financial institutions that are credit-worthy, defined as institutions that hold an investment grade credit rating. New Accounting Pronouncements – not yet adopted by the Company In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This ASU simplifies several aspects of the accounting for share-based payment award transactions, including, the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, for public companies. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” to clarify the implementation guidance on principal versus agent considerations. The effective date and transition requirements for this amendments are the same as ASU 2014-09, which defers by one year. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815)”, to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815, does not, in and of itself, require designation of the hedging relationship, provided that all other hedge accounting criteria continue to be met. This guidance is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Lease (Topic 842)”. The core principle of Topic 842 is that a lessee should recognize the lease assets and liabilities that arise from leases in the statement of financial position. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This new guidance requires certain equity investments to be measured at fair value, use of the exit price notion and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset 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 ASU 2015-03 regarding debt issuance costs related to the line-of-credit arrangement. The Company does not anticipate that the adoption of this update will have an effect 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. 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. 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. Compensation cost should be recognized in the period in when performance target will probably be achieved and should represent 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, with early adoption 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 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, as amended by ASU 2015-14, for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application of this guidance is permitted by not before the original date of December 15, 2016, which can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. In April 2016, the FASB issued ASU 2016-10, with the same effective date as ASU 2015-14, to address the potential diversity in practice at initial application and cost; and the complexity of applying Topic 606, both at transition and on an ongoing basis related to identification of performance obligations and licensing arrangements. 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	9 Months Ended
	Mar. 25, 2016
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 Nine Months Ended (amount in thousands except per share amounts) March 25, March 27, March 25, 2016 March 27, 2015 Net income attributable to shareholders $ 20,822 $ 10,845 $ 42,228 $ 30,607 Weighted-average number of ordinary shares outstanding (thousands of shares) 35,964 35,406 35,785 35,328 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 1,125 704 958 543 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,089 36,110 36,743 35,871 Basic earnings per ordinary share $ 0.58 $ 0.31 $ 1.18 $ 0.87 Diluted earnings per ordinary share $ 0.56 $ 0.30 $ 1.15 $ 0.85 Outstanding share options excluded in the computation of diluted earnings per ordinary share (1) — 69,354 — 69,354 (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	9 Months Ended
	Mar. 25, 2016
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 Gain/(Loss) Cash and Cash Equivalents Marketable As of March 25, 2016 Cash $ 125,642 $ — $ 125,642 $ — Cash equivalents 2,315 — 2,315 — Corporate bonds and commercial papers 116,439 119 — 116,558 U.S. agency and U.S. treasury securities 27,798 (46 ) — 27,752 Sovereign and municipal securities 498 — — 498 Total $ 272,692 $ 73 $ 127,957 $ 144,808 Fair Value (amount in thousands) Carrying Unrealized (Loss)/Gain Cash and Cash Equivalents Marketable As of June 26, 2015 Cash $ 105,548 $ — $ 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 $ 255,888 $ (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 March 25, 2016: (amount in thousands) Carrying Cost Fair Value Due within one year $ 23,066 $ 23,070 Due between one to three years 121,669 121,738 Total $ 144,735 $ 144,808 During the three and nine months ended March 25, 2016, the Company recognized realized loss of $0.1 million and $0.2 million, respectively. As of March 25, 2016, 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 nine months ended March 25, 2016. As of March 25, 2016, 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 9) and comply with covenants. As discussed in Note 9, 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. The Company must comply with the covenant from and after the effective date of the Facility Agreement.

Fair value of financial instrum

Fair value of financial instruments	9 Months Ended
	Mar. 25, 2016
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 March 25, 2016 Assets Cash equivalents $ — $ 2,315 $ — $ 2,315 Corporate bonds and commercial papers — 116,558 — 116,558 U.S. agency and U.S. treasury securities — 27,752 — 27,752 Sovereign and municipal securities — 498 — 498 Derivative assets — 674 (1) — 674 Total $ — $ 147,797 $ — $ 147,797 Liabilities Derivative liabilities $ — $ 2,334 (2) $ — $ 2,334 Total $ — $ 2,334 $ — $ 2,334 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 (3) — 4 Total $ — $ 150,300 $ — $ 150,300 Liabilities Derivative liabilities $ — $ 371 (4) $ — $ 371 Total $ — $ 371 $ — $ 371 (1) Foreign currency forward contracts with notional amount of $30.0 million. (2) Foreign currency forward contracts with notional amount of $102.0 million and Canadian Dollars 0.3 million. (3) Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian Dollars 0.4 million. (4) Foreign currency options with notional amount of $41.0 million. Derivative Financial Instruments As a result of foreign currency rate fluctuations, the U.S. dollar equivalent values of the Company’s foreign currency denominated assets and liabilities change. The Company uses foreign currency contracts to manage the foreign exchange risk associated with certain foreign currency denominated assets and liabilities and other foreign currency transactions. 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. As of March 25, 2016 and June 26, 2015, the Company recognized the fair value of foreign currency forward contracts and options of $1.7 million and $0.4 million, respectively, as derivative liabilities in condensed consolidated balance sheet. As of March 25, 2016, the Company hedges forecasted foreign currency transactions related to its operating expenses and other costs and the construction costs of a new manufacturing building at the Company’s Chonburi campus with certain forward contracts, designated as cash flow hedges. The Company had six outstanding forward contracts with notional amount of $30.0 million, mature during April 2016 to September 2016. The Company included unrealized gain of $0.7 million from changes in fair value of foreign currency forward contracts, designated as hedging instrument, in accumulated other comprehensive income in unaudited condensed consolidated balance sheets. There was no ineffective portion during the three and nine months ended March 25, 2016. As of March 27, 2015, the Company had no foreign currency forward contracts designated as cash flow hedges. The following table presents the effect of foreign currency forward contracts, designated as cash flow hedges, and their classification within comprehensive income: Nine Months Ended (amount in thousands) March 25, 2016 March 27, 2015 Currency contracts that hedge costs of sales $ 483 $ — Currency contracts that hedge operating expenses 36 — Currency contracts that hedge construction costs 155 — $ 674 $ — There was no discontinued of cash flow hedges which recognized in the unaudited condensed consolidated statements of operations and comprehensive income during the three and nine months ended March 25, 2016. As of March 25, 2016, the Company had 17 outstanding foreign currency forward contracts with notional amount of $102.0 million and Canadian Dollars 0.3 million, maturing during June 2016 to December 2016. These foreign currency forward contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. Dollar value of forecasted transactions denominated in Thai Baht and Canadian Dollar. During the nine months ended March 25, 2016, the Company included unrealized loss of $2.3 million from changes in fair value of foreign currency contracts in earnings in unaudited condensed consolidated statements of operations and comprehensive income. As of March 27, 2015, the Company had 46 outstanding foreign currency forward contracts and options with notional amount of $45.0 million and Canadian Dollars 0.4 million, maturing during April 2015 to July 2015. These foreign currency forward contracts and options were not designated for hedge accounting and were used to hedge fluctuations in the U.S. Dollar value of forecasted transactions denominated in Thai Baht and Canadian Dollar. During the nine months ended March 27, 2015, the Company included unrealized gain of $0.2 million from changes in fair value of foreign currency contracts in earnings in unaudited condensed consolidated statements of operations and comprehensive income.

Allowance for doubtful accounts

Allowance for doubtful accounts	9 Months Ended
	Mar. 25, 2016
Allowance for doubtful accounts	6. Allowance for doubtful accounts The activities and balances for allowance for doubtful accounts were as follows: Nine Months Ended (amount in thousands) March 25, 2016 March 27, 2015 Balance, beginning of period $ 50 $ 37 (Credit) charged to expense (7 ) 3 Balance, end of period $ 43 $ 40

Inventory

Inventory	9 Months Ended
	Mar. 25, 2016
Inventory	7. Inventory (amount in thousands) As of March 25, 2016 As of June 26, 2015 Raw materials $ 47,582 $ 46,065 Work in progress 82,707 69,174 Finished goods 16,431 11,843 Goods in transit 5,875 6,488 152,595 133,570 Less: Inventory obsolescence (2,613 ) (2,957 ) Inventory, net $ 149,982 $ 130,613

Intangibles

Intangibles	9 Months Ended
	Mar. 25, 2016
Intangibles	8. Intangibles The following tables present details of the Company’s intangibles: (amount in thousands) Gross Carrying Accumulated Net As of March 25, 2016 Software $ 3,631 $ (3,262 ) $ 369 Total intangibles $ 3,631 $ (3,262 ) $ 369 (amount in thousands) Gross Carrying Accumulated Net As of June 26, 2015 Software $ 3,357 $ (3,220 ) $ 137 Total intangibles $ 3,357 $ (3,220 ) $ 137 The Company recorded amortization expense relating to intangibles of $0.02 million and $0.02 million for the three months ended March 25, 2016 and March 27, 2015, respectively, and $0.04 million and $0.06 million for the nine months ended March 25, 2016 and March 27, 2015, respectively. Based on the carrying amount of intangibles as of March 25, 2016, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2016 $ 22 2017 86 2018 84 2019 83 2020 71 Thereafter 23 Total $ 369

Borrowings

Borrowings	9 Months Ended
	Mar. 25, 2016
Borrowings	9. Borrowings The Company’s total borrowings, including revolving and long-term borrowings, consisted of the following: (amount in thousands) Rate (1) Conditions Maturity As of March 25, 2016 As of June 26, 2015 Short-term borrowing: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months April 2016 (2) $ 44,000 $ 30,000 Current portion of long-term borrowing 6,000 6,000 $ 50,000 $ 36,000 Long-term borrowing: LIBOR + 2.8% per annum Repayable in quarterly installments within 6 years March 2017 $ 6,000 $ 10,500 Less: (6,000 ) (6,000 ) Non-current portion $ — $ 4,500 (1) LIBOR is London Interbank Offered Rate. (2) In April 2016, the maturity date of these revolving borrowings were extended to mature in May 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 March 25, 2016 and June 26, 2015 was $48.2 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 March 25, 2016 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 nine months ended March 25, 2016 and March 27, 2015: Nine Months Ended (amount in thousands) March 25, 2016 March 27, 2015 Opening book amount $ 10,500 $ 16,500 Repayments during the period (4,500 ) (4,500 ) Closing book amount $ 6,000 $ 12,000 As of March 25, 2016, future maturities of long-term debt during each fiscal year were as follows: (amount in thousands) 2016 $ 1,500 2017 4,500 Total $ 6,000 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 March 25, 2016, the outstanding revolving borrowing under the Facility Agreement was $44.0 million, resulting in available credit facilities of $156.0 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 April 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 May 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 March 25, 2016, 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 March 25, 2016 and June 26, 2015 were as follows: (amount in thousands) March 25, 2016 June 26, 2015 Short-term $ 1,415 $ 1,480 Long-term $ 156,000 $ 170,000

Income taxes

Income taxes	9 Months Ended
	Mar. 25, 2016
Income taxes	10. Income taxes As of March 25, 2016 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 March 25, 2016 and March 27, 2015 was 5.8% and 7.0% of net income, respectively. The decrease in the effective tax rate for the three months ended March 25, 2016 was primarily due to the fact that the Company had lower taxable income during the three months ended March 25, 2016 as compared to the three months ended March 27, 2015. The effective tax rate for the Company for the nine months ended March 25, 2016 and March 27, 2015 was 6.4% and 6.6% of net income, respectively. The slight decrease in the effective tax rate for the nine months ended March 25, 2016 was primarily due to the fact that the Company had lower taxable income during the nine months ended March 25, 2016 as compared to the nine months ended March 27, 2015.

Share-based compensation

Share-based compensation	9 Months Ended
	Mar. 25, 2016
Share-based compensation	11. 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 nine months ended March 25, 2016 and March 27, 2015 was as follows: Three Months Ended Nine Months Ended (amount in thousands) March 25, March 27, March 25, 2016 March 27, 2015 Share-based compensation (income)/expense by type of award: Share options $ (1 ) $ 6 $ 17 $ 197 Restricted share units 2,000 2,003 7,765 5,609 Total share-based compensation expense 1,999 2,009 7,782 5,806 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 1,999 $ 2,009 $ 7,782 $ 5,806 Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended Nine Months Ended (amount in thousands) March 25, March 27, March 25, 2016 March 27, 2015 Cost of revenue $ 517 $ 379 $ 1,594 $ 1,107 Selling, general and administrative expense 1,482 1,630 6,188 4,699 Total share-based compensation expense $ 1,999 $ 2,009 $ 7,782 $ 5,806 The Company did not capitalize any share-based compensation expense as part of any asset costs during the three and nine months ended March 25, 2016 and March 27, 2015. Share-based award activity Share options have been granted to directors and employees. As of March 25, 2016, there were 5 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 March 25, 2016, there were an aggregate of 591,525 share options outstanding, 1,148,602 restricted share units outstanding, and 2,276,054 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 (198,334 ) $ 16.77 Forfeited (755 ) $ 17.10 Expired (1,400 ) $ 23.62 Balance as of March 25, 2016 591,530 591,488 $ 16.16 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 (50,867 ) $ 14.50 Forfeited (8,249 ) $ 15.91 Expired (6,787 ) $ 20.80 Balance as of March 27, 2015 799,987 741,957 $ 16.34 The following summarizes information for share options outstanding as of March 25, 2016 under the Share Option Plans: Number of Exercise Weighted- Aggregate (amount in thousands) 5 $ 5.75 0.65 315,482 $ 16.83 1.55 30,000 $ 15.05 1.61 12,300 $ 25.50 1.81 2,400 $ 26.16 1.86 20,853 $ 15.16 2.40 184,039 $ 14.12 2.63 20,818 $ 19.36 2.88 5,550 $ 18.60 2.93 83 $ 12.83 3.12 Options outstanding 591,530 1.99 $ 8,535 Options exercisable 591,488 1.99 $ 8,535 As of March 25, 2016, there was $23.64 of unrecognized share-based compensation expense related to share options under the Share Option Plans that is expected to be recorded over a weighted-average period of 0.08 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 outstanding equity award grants before February 20, 2017 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 586,142 $ 19.82 Issued (492,124 ) (1) $ 15.53 Forfeited (86,343 ) $ 17.44 Balance as of March 25, 2016 1,148,602 $ 17.56 Number of Shares Weighted- Per Share Balance as of June 27, 2014 762,295 $ 14.23 Granted 608,544 $ 17.52 Issued (241,231 ) $ 17.70 Forfeited (24,612 ) $ 15.95 Balance as of March 27, 2015 1,104,996 $ 15.97 (1) Includes 283 shares vested on March 25, 2016, but not settled. As of March 25, 2016, there was $9.3 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 2.78 years. For the nine months ended March 25, 2016 and March 27, 2015, the Company withheld an aggregate of 111,584 shares and 18,730 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 nine months ended March 25, 2016 and March 27, 2015, the Company then remitted cash of $2.4 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	9 Months Ended
	Mar. 25, 2016
Shareholders' equity	12. 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 nine months ended March 25, 2016, Fabrinet issued 198,334 ordinary shares upon the exercise of options, for cash consideration at a weighted-average exercise price of $16.77 per share, and 380,257 ordinary shares upon the vesting of restricted share units, net of shares withheld. For the nine months ended March 27, 2015, Fabrinet issued 50,867 ordinary shares upon the exercise of options, for cash consideration at a weighted-average exercise price of $14.50 per share, and 222,501 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 income (loss)	9 Months Ended
	Mar. 25, 2016
Accumulated other comprehensive income (loss)	13. Accumulated other comprehensive income (loss) The changes in accumulated other comprehensive income (loss) for the nine months ended March 25, 2016 were as follows: (amount in thousands) Unrealized net (Losses)/Gains on Marketable Securities Unrealized net Gains on Derivative Instruments Total Balance as of June 26, 2015 $ (44 ) $ — $ (44 ) Other comprehensive income before reclassification adjustment 2,645 674 3,319 Amounts reclassified out of accumulated other comprehensive income to interest income in unaudited condensed consolidated statement of operations and comprehensive income (2,528 ) — (2,528 ) Tax effects — — — Other comprehensive income $ 117 $ 674 $ 791 Balance as of March 25, 2016 $ 73 $ 674 $ 747

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Mar. 25, 2016
Commitments and contingencies	14. Commitments and contingencies Bank guarantees As of March 25, 2016 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 $0.9 million and $0.8 million for the nine months ended March 25, 2016 and March 27, 2015, respectively. As of March 25, 2016, the future minimum lease payments due under non-cancelable leases during each fiscal year were as follows: (amount in thousands) 2016 $ 289 2017 1,039 2018 1,040 2019 581 2020 372 Thereafter 18 Total minimum operating lease payments $ 3,339 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 March 25, 2016, the Company had an outstanding commitment to third parties of approximately $35.4 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	9 Months Ended
	Mar. 25, 2016
Business segments and geographic information	15. 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 March 25, 2016 and March 27, 2015, 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 Nine Months Ended (amount in thousands) March 25, March 27, March 25, 2016 March 27, 2015 North America $ 138,687 $ 93,335 $ 369,284 $ 278,036 Asia-Pacific 88,433 71,251 256,676 219,967 Europe 23,768 24,867 74,399 69,128 $ 250,888 $ 189,453 $ 700,359 $ 567,131 As of March 25, 2016 and March 27, 2015, the Company had approximately $33.4 million and $25.8 million of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific. Significant customers The Company had two customers that each contributed to 10% or more of its total account receivable as of March 25, 2016 and June 26, 2015, respectively.

Other income related to floodin

Other income related to flooding	9 Months Ended
	Mar. 25, 2016
Other income related to flooding	16. Other income related to flooding 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 March 25, 2016, the Company received a final payment of $0.8 million from an insurer against the Company’s claim for flood damage. During the three months ended March 25, 2016, the Company recognized other income related to flooding of $0.9 million, which primarily consisted of a payment of $0.8 million from an insurer against the Company’s claim for flood damage. During the nine months ended March 25, 2016, the Company recognized other income related to flooding of $0.04 million, which mainly consisted of $0.8 million from an insurer against the Company’s claim for flood damage, offset by expenses in relation to flood of $0.8 million, which mainly consisted of $0.6 million of repaired cost of equipment and $0.2 million of inventory losses.

Accounting policies (Policies)

Accounting policies (Policies)	9 Months Ended
	Mar. 25, 2016
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of March 25, 2016 and for the three and nine months ended March 25, 2016 and March 27, 2015 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 nine months ended March 25, 2016 and March 27, 2015 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 March 25, 2016 and March 27, 2015 each consisted of 13 weeks. The nine months ended March 25, 2016 and March 27, 2015 each consisted of 39 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.
Derivatives	Derivatives The derivatives assets and liabilities are recognized on the consolidated balance sheets as other current assets or accrued expenses at fair value. The Company applies hedge accounting to arrangements that qualify and are designated for cash flow hedge accounting treatment. Hedge accounting is discontinued prospectively if the hedging relationship ceases to be effective or the hedging or hedged items cease to exist as a result of maturity, sale, termination or cancellation. Derivatives designated and qualifying as hedges of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges which include forward currency contracts. In a cash flow hedging relationship, the effective portion of the change in the fair value of the hedging derivative is initially recorded in accumulated other comprehensive income (loss), while any ineffective portion is recognized directly in earnings, as a component of other income (expense). The portion of gain or loss on the derivative instrument remains in accumulated other comprehensive (loss) income until the forecasted transaction is recognized in earnings. The Company also enters into derivative contracts that are intended to economically hedge certain of the Company’s risks. The changes in the fair value of the derivatives are recorded directly in earnings as a component of other income (expense), net. In accordance with the fair value measurement guidance, the Company’s accounting policy is to measure the credit risk of our derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company executes derivative instruments with financial institutions that are credit-worthy, defined as institutions that hold an investment grade credit rating.
New Accounting Pronouncements - not yet adopted by the Company	New Accounting Pronouncements – not yet adopted by the Company In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This ASU simplifies several aspects of the accounting for share-based payment award transactions, including, the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, for public companies. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” to clarify the implementation guidance on principal versus agent considerations. The effective date and transition requirements for this amendments are the same as ASU 2014-09, which defers by one year. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815)”, to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815, does not, in and of itself, require designation of the hedging relationship, provided that all other hedge accounting criteria continue to be met. This guidance is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Lease (Topic 842)”. The core principle of Topic 842 is that a lessee should recognize the lease assets and liabilities that arise from leases in the statement of financial position. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This new guidance requires certain equity investments to be measured at fair value, use of the exit price notion and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset 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 ASU 2015-03 regarding debt issuance costs related to the line-of-credit arrangement. The Company does not anticipate that the adoption of this update will have an effect 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. 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. 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. Compensation cost should be recognized in the period in when performance target will probably be achieved and should represent 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, with early adoption 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 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, as amended by ASU 2015-14, for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application of this guidance is permitted by not before the original date of December 15, 2016, which can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. In April 2016, the FASB issued ASU 2016-10, with the same effective date as ASU 2015-14, to address the potential diversity in practice at initial application and cost; and the complexity of applying Topic 606, both at transition and on an ongoing basis related to identification of performance obligations and licensing arrangements. 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)	9 Months Ended
	Mar. 25, 2016
Earnings Per Ordinary Share	The earnings per ordinary share was calculated as follows: Three Months Ended Nine Months Ended (amount in thousands except per share amounts) March 25, March 27, March 25, 2016 March 27, 2015 Net income attributable to shareholders $ 20,822 $ 10,845 $ 42,228 $ 30,607 Weighted-average number of ordinary shares outstanding (thousands of shares) 35,964 35,406 35,785 35,328 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 1,125 704 958 543 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,089 36,110 36,743 35,871 Basic earnings per ordinary share $ 0.58 $ 0.31 $ 1.18 $ 0.87 Diluted earnings per ordinary share $ 0.56 $ 0.30 $ 1.15 $ 0.85 Outstanding share options excluded in the computation of diluted earnings per ordinary share (1) — 69,354 — 69,354 (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 ma24

Cash, cash equivalents and marketable securities (Tables)	9 Months Ended
	Mar. 25, 2016
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 Gain/(Loss) Cash and Cash Equivalents Marketable As of March 25, 2016 Cash $ 125,642 $ — $ 125,642 $ — Cash equivalents 2,315 — 2,315 — Corporate bonds and commercial papers 116,439 119 — 116,558 U.S. agency and U.S. treasury securities 27,798 (46 ) — 27,752 Sovereign and municipal securities 498 — — 498 Total $ 272,692 $ 73 $ 127,957 $ 144,808 Fair Value (amount in thousands) Carrying Unrealized (Loss)/Gain Cash and Cash Equivalents Marketable As of June 26, 2015 Cash $ 105,548 $ — $ 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 $ 255,888 $ (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 March 25, 2016: (amount in thousands) Carrying Cost Fair Value Due within one year $ 23,066 $ 23,070 Due between one to three years 121,669 121,738 Total $ 144,735 $ 144,808

Fair value of financial instr25

Fair value of financial instruments (Tables)	9 Months Ended
	Mar. 25, 2016
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 March 25, 2016 Assets Cash equivalents $ — $ 2,315 $ — $ 2,315 Corporate bonds and commercial papers — 116,558 — 116,558 U.S. agency and U.S. treasury securities — 27,752 — 27,752 Sovereign and municipal securities — 498 — 498 Derivative assets — 674 (1) — 674 Total $ — $ 147,797 $ — $ 147,797 Liabilities Derivative liabilities $ — $ 2,334 (2) $ — $ 2,334 Total $ — $ 2,334 $ — $ 2,334 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 (3) — 4 Total $ — $ 150,300 $ — $ 150,300 Liabilities Derivative liabilities $ — $ 371 (4) $ — $ 371 Total $ — $ 371 $ — $ 371 (1) Foreign currency forward contracts with notional amount of $30.0 million. (2) Foreign currency forward contracts with notional amount of $102.0 million and Canadian Dollars 0.3 million. (3) Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian Dollars 0.4 million. (4) Foreign currency options with notional amount of $41.0 million.
The Effect of Foreign Currency Forward Contracts, Designated as Cash Flow Hedges, and their Classification within Comprehensive Income	The following table presents the effect of foreign currency forward contracts, designated as cash flow hedges, and their classification within comprehensive income: Nine Months Ended (amount in thousands) March 25, 2016 March 27, 2015 Currency contracts that hedge costs of sales $ 483 $ — Currency contracts that hedge operating expenses 36 — Currency contracts that hedge construction costs 155 — $ 674 $ —

Allowance for doubtful accoun26

Allowance for doubtful accounts (Tables)	9 Months Ended
	Mar. 25, 2016
Activities and Balances for Allowance for Doubtful Accounts	The activities and balances for allowance for doubtful accounts were as follows: Nine Months Ended (amount in thousands) March 25, 2016 March 27, 2015 Balance, beginning of period $ 50 $ 37 (Credit) charged to expense (7 ) 3 Balance, end of period $ 43 $ 40

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Mar. 25, 2016
Inventories	(amount in thousands) As of March 25, 2016 As of June 26, 2015 Raw materials $ 47,582 $ 46,065 Work in progress 82,707 69,174 Finished goods 16,431 11,843 Goods in transit 5,875 6,488 152,595 133,570 Less: Inventory obsolescence (2,613 ) (2,957 ) Inventory, net $ 149,982 $ 130,613

Intangibles (Tables)

Intangibles (Tables)	9 Months Ended
	Mar. 25, 2016
Intangibles	The following tables present details of the Company’s intangibles: (amount in thousands) Gross Carrying Accumulated Net As of March 25, 2016 Software $ 3,631 $ (3,262 ) $ 369 Total intangibles $ 3,631 $ (3,262 ) $ 369 (amount in thousands) Gross Carrying Accumulated Net As of June 26, 2015 Software $ 3,357 $ (3,220 ) $ 137 Total intangibles $ 3,357 $ (3,220 ) $ 137
Estimated Future Amortization of Intangibles	Based on the carrying amount of intangibles as of March 25, 2016, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2016 $ 22 2017 86 2018 84 2019 83 2020 71 Thereafter 23 Total $ 369

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
	Mar. 25, 2016
Total Borrowings, Including Revolving and Long-Term Borrowings	The Company’s total borrowings, including revolving and long-term borrowings, consisted of the following: (amount in thousands) Rate (1) Conditions Maturity As of March 25, 2016 As of June 26, 2015 Short-term borrowing: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months April 2016 (2) $ 44,000 $ 30,000 Current portion of long-term borrowing 6,000 6,000 $ 50,000 $ 36,000 Long-term borrowing: LIBOR + 2.8% per annum Repayable in quarterly installments within 6 years March 2017 $ 6,000 $ 10,500 Less: (6,000 ) (6,000 ) Non-current portion $ — $ 4,500 (1) LIBOR is London Interbank Offered Rate. (2) In April 2016, the maturity date of these revolving borrowings were extended to mature in May 2016.
Movements of Long-Term Loans	The movements of long-term loans were as follows for the nine months ended March 25, 2016 and March 27, 2015: Nine Months Ended (amount in thousands) March 25, 2016 March 27, 2015 Opening book amount $ 10,500 $ 16,500 Repayments during the period (4,500 ) (4,500 ) Closing book amount $ 6,000 $ 12,000
Future Maturities of Long-Term Debt	As of March 25, 2016, future maturities of long-term debt during each fiscal year were as follows: (amount in thousands) 2016 $ 1,500 2017 4,500 Total $ 6,000
Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing	Undrawn available credit facilities classified by available period of future borrowing as of March 25, 2016 and June 26, 2015 were as follows: (amount in thousands) March 25, 2016 June 26, 2015 Short-term $ 1,415 $ 1,480 Long-term $ 156,000 $ 170,000

Share-based compensation (Table

Share-based compensation (Tables)	9 Months Ended
	Mar. 25, 2016
Effect of Recording Share-Based Compensation Expense	The effect of recording share-based compensation expense for the three and nine months ended March 25, 2016 and March 27, 2015 was as follows: Three Months Ended Nine Months Ended (amount in thousands) March 25, March 27, March 25, 2016 March 27, 2015 Share-based compensation (income)/expense by type of award: Share options $ (1 ) $ 6 $ 17 $ 197 Restricted share units 2,000 2,003 7,765 5,609 Total share-based compensation expense 1,999 2,009 7,782 5,806 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 1,999 $ 2,009 $ 7,782 $ 5,806
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 Nine Months Ended (amount in thousands) March 25, March 27, March 25, 2016 March 27, 2015 Cost of revenue $ 517 $ 379 $ 1,594 $ 1,107 Selling, general and administrative expense 1,482 1,630 6,188 4,699 Total share-based compensation expense $ 1,999 $ 2,009 $ 7,782 $ 5,806
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 (198,334 ) $ 16.77 Forfeited (755 ) $ 17.10 Expired (1,400 ) $ 23.62 Balance as of March 25, 2016 591,530 591,488 $ 16.16 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 (50,867 ) $ 14.50 Forfeited (8,249 ) $ 15.91 Expired (6,787 ) $ 20.80 Balance as of March 27, 2015 799,987 741,957 $ 16.34
Information for Share Options Outstanding	The following summarizes information for share options outstanding as of March 25, 2016 under the Share Option Plans: Number of Exercise Weighted- Aggregate (amount in thousands) 5 $ 5.75 0.65 315,482 $ 16.83 1.55 30,000 $ 15.05 1.61 12,300 $ 25.50 1.81 2,400 $ 26.16 1.86 20,853 $ 15.16 2.40 184,039 $ 14.12 2.63 20,818 $ 19.36 2.88 5,550 $ 18.60 2.93 83 $ 12.83 3.12 Options outstanding 591,530 1.99 $ 8,535 Options exercisable 591,488 1.99 $ 8,535
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 586,142 $ 19.82 Issued (492,124 ) (1) $ 15.53 Forfeited (86,343 ) $ 17.44 Balance as of March 25, 2016 1,148,602 $ 17.56 Number of Shares Weighted- Per Share Balance as of June 27, 2014 762,295 $ 14.23 Granted 608,544 $ 17.52 Issued (241,231 ) $ 17.70 Forfeited (24,612 ) $ 15.95 Balance as of March 27, 2015 1,104,996 $ 15.97 (1) Includes 283 shares vested on March 25, 2016, but not settled.

Accumulated other comprehensi31

Accumulated other comprehensive income (loss) (Tables)	9 Months Ended
	Mar. 25, 2016
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax	The changes in accumulated other comprehensive income (loss) for the nine months ended March 25, 2016 were as follows: (amount in thousands) Unrealized net (Losses)/Gains on Marketable Securities Unrealized net Gains on Derivative Instruments Total Balance as of June 26, 2015 $ (44 ) $ — $ (44 ) Other comprehensive income before reclassification adjustment 2,645 674 3,319 Amounts reclassified out of accumulated other comprehensive income to interest income in unaudited condensed consolidated statement of operations and comprehensive income (2,528 ) — (2,528 ) Tax effects — — — Other comprehensive income $ 117 $ 674 $ 791 Balance as of March 25, 2016 $ 73 $ 674 $ 747

Commitments and contingencies (

Commitments and contingencies (Tables)	9 Months Ended
	Mar. 25, 2016
Future Minimum Lease Payments Due Under Non-Cancelable Leases	As of March 25, 2016, the future minimum lease payments due under non-cancelable leases during each fiscal year were as follows: (amount in thousands) 2016 $ 289 2017 1,039 2018 1,040 2019 581 2020 372 Thereafter 18 Total minimum operating lease payments $ 3,339

Business segments and geograp33

Business segments and geographic information (Tables)	9 Months Ended
	Mar. 25, 2016
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 Nine Months Ended (amount in thousands) March 25, March 27, March 25, 2016 March 27, 2015 North America $ 138,687 $ 93,335 $ 369,284 $ 278,036 Asia-Pacific 88,433 71,251 256,676 219,967 Europe 23,768 24,867 74,399 69,128 $ 250,888 $ 189,453 $ 700,359 $ 567,131

Earnings Per Ordinary Share (De

Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Mar. 25, 2016	Mar. 27, 2015	Mar. 25, 2016	Mar. 27, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income attributable to shareholders		$ 20,822	$ 10,845	$ 42,228	$ 30,607
Weighted-average number of ordinary shares outstanding (thousands of shares)		35,964	35,406	35,785	35,328
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares)		1,125	704	958	543
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		37,089	36,110	36,743	35,871
Basic earnings per ordinary share		$ 0.58	$ 0.31	$ 1.18	$ 0.87
Diluted earnings per ordinary share		$ 0.56	$ 0.30	$ 1.15	$ 0.85
Outstanding share options excluded in the computation of diluted earnings per ordinary share	[1]		69,354		69,354
[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	Mar. 25, 2016	Jun. 26, 2015	Mar. 27, 2015	Jun. 27, 2014
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	$ 272,692	$ 255,888
Unrealized (loss)/Gain	73	(44)
Cash and cash equivalents	127,957	112,978	$ 128,946	$ 233,477
Marketable securities	144,808	142,866
Cash
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	125,642	105,548
Cash and cash equivalents	125,642	105,548
Cash Equivalents
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	2,315	7,430
Cash and cash equivalents	2,315	7,430
Corporate bonds and commercial papers
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	116,439	120,144
Unrealized (loss)/Gain	119	(43)
Marketable securities	116,558	120,101
U.S. agency and U.S. treasury securities
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	27,798	21,029
Unrealized (loss)/Gain	(46)	(2)
Marketable securities	27,752	21,027
Sovereign And Municipal Securities
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	498	1,737
Unrealized (loss)/Gain		1
Marketable securities	$ 498	$ 1,738

Cash, Cash Equivalents and Ma36

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail)	3 Months Ended	9 Months Ended
	Mar. 25, 2016USD ($)	Mar. 25, 2016USD ($)
Cash, cash equivalents and marketable securities [Line Items]
Net realized loss recognized on investments	$ (100,000)	$ (200,000)
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	Mar. 25, 2016	Jun. 26, 2015
Adjusted cost
Due within one year	$ 23,066
Due between one to three years	121,669
Total	144,735
Fair value
Due within one year	23,070
Due between one to three years	121,738
Total	$ 144,808	$ 142,866

Financial Instruments Measured

Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 25, 2016		Jun. 26, 2015
Assets
Derivative assets	$ 674		$ 4
Total	147,797		150,300
Liabilities
Derivative liabilities	2,334		371
Total	2,334		371
Cash Equivalents
Assets
Marketable securities	2,315		7,430
Corporate bonds and commercial papers
Assets
Marketable securities	116,558		120,101
U.S. agency and U.S. treasury securities
Assets
Marketable securities	27,752		21,027
Sovereign And Municipal Securities
Assets
Marketable securities	498		1,738
Significant Other Observable Inputs (Level 2)
Assets
Derivative assets	674	[1]	4	[2]
Total	147,797		150,300
Liabilities
Derivative liabilities	2,334	[3]	371	[4]
Total	2,334		371
Significant Other Observable Inputs (Level 2) | Cash Equivalents
Assets
Marketable securities	2,315		7,430
Significant Other Observable Inputs (Level 2) | Corporate bonds and commercial papers
Assets
Marketable securities	116,558		120,101
Significant Other Observable Inputs (Level 2) | U.S. agency and U.S. treasury securities
Assets
Marketable securities	27,752		21,027
Significant Other Observable Inputs (Level 2) | Sovereign And Municipal Securities
Assets
Marketable securities	$ 498		$ 1,738
[1]	Foreign currency forward contracts with notional amount of $30.0 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 forward contracts with notional amount of $102.0 million and Canadian Dollars 0.3 million.
[4]	Foreign currency options with notional amount of $41.0 million.

Financial Instruments Measure39

Financial Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Fair Value, Measurements, Recurring CAD in Millions, $ in Millions	Mar. 25, 2016USD ($)	Mar. 25, 2016CAD	Jun. 26, 2015USD ($)	Jun. 26, 2015CAD
Foreign currency options
Fair Value Measurements at Reporting Date Using
Derivative assets, notional amount			$ 3
Derivative liabilities, notional amount			$ 41
Foreign currency forward contracts
Fair Value Measurements at Reporting Date Using
Derivative assets, notional amount	$ 30			CAD 0.4
Derivative liabilities, notional amount	$ 102	CAD 0.3

Fair Value of Financial Instr40

Fair Value of Financial Instruments - Additional Information (Detail) CAD in Millions	3 Months Ended		9 Months Ended
	Mar. 25, 2016USD ($)Contract	Mar. 27, 2015USD ($)Contract	Mar. 25, 2016USD ($)Contract	Mar. 27, 2015USD ($)Contract	Mar. 25, 2016CADContract	Jun. 26, 2015USD ($)	Mar. 27, 2015CADContract
Foreign Currency Fair Value Hedge Derivative [Line Items]
Discontinued of cash flow hedges recognized	$ 0		$ 0
Unrealized gain (loss) on derivatives			(2,406,000)	$ 286,000
Foreign Currency Forward Contracts and Options
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative liabilities	$ 1,700,000		$ 1,700,000			$ 400,000
Foreign Currency Forward Contracts and Options | Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding | Contract		46		46			46
Unrealized gain (loss) on derivatives				$ 200,000
Derivative notional amount		$ 45,000,000		$ 45,000,000			CAD 0.4
Foreign Currency Forward Contracts and Options | Non designated | Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period				2015-04
Foreign Currency Forward Contracts and Options | Non designated | Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period				2015-07
Foreign currency forward contracts | Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding | Contract	17		17		17
Derivative liabilities, notional amount	$ 102,000,000		$ 102,000,000		CAD 0.3
Unrealized gain (loss) on derivatives			$ (2,300,000)
Foreign currency forward contracts | Non designated | Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period			2016-06
Foreign currency forward contracts | Non designated | Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period			2016-12
Foreign currency forward contracts | Cash Flow Hedging
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding | Contract	6	0	6	0	6		0
Derivative assets, notional amount	$ 30,000,000		$ 30,000,000
Unrealized gain (loss) on derivatives			700,000
Derivative ineffective portion	$ 0	$ 0	$ 0	$ 0
Foreign currency forward contracts | Cash Flow Hedging | Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period			2016-04
Foreign currency forward contracts | Cash Flow Hedging | Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period			2016-09

The Effect of Foreign Currency

The Effect of Foreign Currency Forward Contracts, Designated as Cash Flow Hedges, and their Classification within Comprehensive Income (Detail) $ in Thousands	Mar. 25, 2016USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets and liabilities at fair value, net	$ 674
Cost of Revenue
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets and liabilities at fair value, net	483
Operating Expense
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets and liabilities at fair value, net	36
Construction Cost
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets and liabilities at fair value, net	$ 155

Activities and Balances for All

Activities and Balances for Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015
Valuation and Qualifying Accounts Disclosure [Line Items]
(Credit) charged to expense	$ (7)	$ 3
Allowance for Doubtful Accounts
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	50	37
(Credit) charged to expense	(7)	3
Balance, end of period	$ 43	$ 40

Inventory (Detail)

Inventory (Detail) - USD ($) $ in Thousands	Mar. 25, 2016	Jun. 26, 2015
Inventory [Line Items]
Raw materials	$ 47,582	$ 46,065
Work in progress	82,707	69,174
Finished goods	16,431	11,843
Goods in transit	5,875	6,488
Inventory, Gross, Total	152,595	133,570
Less: Inventory obsolescence	(2,613)	(2,957)
Inventory, net	$ 149,982	$ 130,613

Intangibles (Detail)

Intangibles (Detail) - USD ($) $ in Thousands	Mar. 25, 2016	Jun. 26, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,631	$ 3,357
Accumulated Amortization	(3,262)	(3,220)
Net	369	137
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,631	3,357
Accumulated Amortization	(3,262)	(3,220)
Net	$ 369	$ 137

Intangibles - Additional Inform

Intangibles - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	Mar. 25, 2016	Mar. 27, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to intangibles	$ 20	$ 20	$ 40	$ 60

Estimated Future Amortization o

Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands	Mar. 25, 2016	Jun. 26, 2015
Finite-Lived Intangible Assets [Line Items]
2,016	$ 22
2,017	86
2,018	84
2,019	83
2,020	71
Thereafter	23
Net	$ 369	$ 137

Total Borrowings, Including Rev

Total Borrowings, Including Revolving and Long-Term Borrowings (Detail) - USD ($) $ in Thousands		9 Months Ended
		Mar. 25, 2016	Jun. 26, 2015	Mar. 27, 2015	Jun. 27, 2014
Debt Instrument [Line Items]
Revolving borrowing		$ 44,000	$ 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		50,000	36,000
Long-term borrowing		$ 6,000	10,500	$ 12,000	$ 16,500
Non-current portion			$ 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]	2016-04
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 April 2016, the maturity date of these revolving borrowings were extended to mature in May 2016.

Total Borrowings, Including R48

Total Borrowings, Including Revolving and Long-Term Borrowings (Parenthetical) (Detail)	Apr. 30, 2016
Subsequent Event
Debt Instrument [Line Items]
Term	2016-05

Borrowings - Additional Informa

Borrowings - Additional Information (Detail) - USD ($)		Apr. 30, 2016	Mar. 25, 2016	Jun. 26, 2015
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity			$ 200,000,000
Line of credit facility amounts outstanding			44,000,000	$ 30,000,000
Undrawn available credit facilities			156,000,000
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%
Subsequent Event
Line of Credit Facility [Line Items]
Term		2016-05
Bank borrowing No. 1 | Subsidiary
Line of Credit Facility [Line Items]
Carrying amount of assets secured and pledged as collateral			$ 48,200,000	$ 50,000,000
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]		2016-04
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 April 2016, the maturity date of these revolving borrowings were extended to mature in May 2016.

Movements of Long-Term Loans (D

Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015
Debt Instrument [Line Items]
Opening book amount	$ 10,500	$ 16,500
Repayments during the period	(8,500)	(4,500)
Closing book amount	6,000	12,000
Term Loan
Debt Instrument [Line Items]
Repayments during the period	$ (4,500)	$ (4,500)

Future Maturities of Long-Term

Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 25, 2016	Jun. 26, 2015	Mar. 27, 2015	Jun. 27, 2014
Debt Instrument [Line Items]
2,016	$ 1,500
2,017	4,500
Long-term borrowing	$ 6,000	$ 10,500	$ 12,000	$ 16,500

Undrawn Available Credit Facili

Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing (Detail) - USD ($) $ in Thousands	Mar. 25, 2016	Jun. 26, 2015
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 156,000
Short-term loans
Line of Credit Facility [Line Items]
Undrawn available credit facilities	1,415	$ 1,480
Long-term loans
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 156,000	$ 170,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	Mar. 25, 2016	Mar. 27, 2015	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	5.80%	7.00%	6.40%	6.60%
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		9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	Mar. 25, 2016	Mar. 27, 2015
Share-based compensation (income)/expense by type of award:
Share options	$ (1)	$ 6	$ 17	$ 197
Restricted share units	2,000	2,003	7,765	5,609
Total share-based compensation expense	1,999	2,009	7,782	5,806
Tax effect on share-based compensation expense	0	0	0	0
Net effect on share-based compensation expense	$ 1,999	$ 2,009	$ 7,782	$ 5,806

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		9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	Mar. 25, 2016	Mar. 27, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 1,999	$ 2,009	$ 7,782	$ 5,806
Cost of Revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	517	379	1,594	1,107
Selling, general and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 1,482	$ 1,630	$ 6,188	$ 4,699

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail)	May. 24, 2015	Mar. 25, 2016USD ($)Installmentshares	Mar. 27, 2015USD ($)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		111,584	18,730
Tax withholdings related to net share settlement of restricted share units | $		$ 2,372,000	$ 334,000
Stock Plan 1999
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options outstanding		5
Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options outstanding		591,525
Ordinary shares available for future grant		2,276,054
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 | $		$ 23.64
Unrecognized compensation expense, weighted-average period for recognition		29 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%
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		1,148,602	1,104,996	1,140,927	762,295
Unrecognized share-based compensation expense | $		$ 9,300,000
Unrecognized compensation expense, weighted-average period for recognition		2 years 9 months 11 days
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%

Share Option Activity (Detail)

Share Option Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares	9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	Jun. 26, 2015	Jun. 27, 2014
Number of shares
Beginning balance	792,019	865,890
Granted	0	0
Exercised	(198,334)	(50,867)
Forfeited	(755)	(8,249)
Expired	(1,400)	(6,787)
Ending balance	591,530	799,987
Number of Exercisable Options
Number of Exercisable Options	591,488	741,957	758,451	666,305
Weighted-Average Exercise Price per share
Beginning balance	$ 16.33	$ 16.27
Granted	0	0
Exercised	16.77	14.50
Forfeited	17.10	15.91
Expired	23.62	20.80
Ending balance	16.16	16.34
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	9 Months Ended
	Mar. 25, 2016USD ($)$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	591,530
Options outstanding, weighted average remaining contractual life (years)	1 year 11 months 27 days
Options outstanding, aggregate intrinsic value | $	$ 8,535
Exercise Price 1
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	5
Exercise Price Per Share | $ / shares	$ 5.75
Options outstanding, weighted average remaining contractual life (years)	7 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	315,482
Exercise Price Per Share | $ / shares	$ 16.83
Options outstanding, weighted average remaining contractual life (years)	1 year 6 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 7 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	12,300
Exercise Price Per Share | $ / shares	$ 25.50
Options outstanding, weighted average remaining contractual life (years)	1 year 9 months 22 days
Exercise Price 5
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	2,400
Exercise Price Per Share | $ / shares	$ 26.16
Options outstanding, weighted average remaining contractual life (years)	1 year 10 months 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	20,853
Exercise Price Per Share | $ / shares	$ 15.16
Options outstanding, weighted average remaining contractual life (years)	2 years 4 months 24 days
Exercise Price 7
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	184,039
Exercise Price Per Share | $ / shares	$ 14.12
Options outstanding, weighted average remaining contractual life (years)	2 years 7 months 17 days
Exercise Price 8
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	20,818
Exercise Price Per Share | $ / shares	$ 19.36
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	5,550
Exercise Price Per Share | $ / shares	$ 18.60
Options outstanding, weighted average remaining contractual life (years)	2 years 11 months 5 days
Exercise Price 10
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	83
Exercise Price Per Share | $ / shares	$ 12.83
Options outstanding, weighted average remaining contractual life (years)	3 years 1 month 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	591,488
Options exercisable, weighted average remaining contractual life (years)	1 year 11 months 27 days
Options exercisable, aggregate intrinsic value | $	$ 8,535

Restricted Share Unit Activity

Restricted Share Unit Activity (Detail) - Stock Plan 2010 - Restricted Share Units - $ / shares	9 Months Ended
	Mar. 25, 2016		Mar. 27, 2015
Number of restricted share units
Number of restricted share units, beginning balance	1,140,927		762,295
Number of restricted share units, Granted	586,142		608,544
Number of restricted share units, Issued	(492,124)	[1]	(241,231)
Number of restricted share units, Forfeited	(86,343)		(24,612)
Number of restricted share units, ending balance	1,148,602		1,104,996
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	19.82		17.52
Weighted-average grant date fair value per share, Issued	15.53		17.70
Weighted-average grant date fair value per share, Forfeited	17.44		15.95
Weighted-average grant date fair value per share, Ending Balance	$ 17.56		$ 15.97
[1]	Includes 283 shares vested on March 25, 2016, but not settled.

Restricted Share Unit Activit60

Restricted Share Unit Activity (Parenthetical) (Detail)	9 Months Ended
	Mar. 25, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share unit of shares vested but not settled	283

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - $ / shares	9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	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	198,334	50,867
Ordinary shares issued upon exercise of options, weight average exercise price	$ 16.77	$ 14.50
Ordinary shares issued upon vesting of restricted shares	380,257	222,501

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	Mar. 25, 2016	Mar. 27, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance as of June 26, 2015			$ (44)
Other comprehensive income before reclassification adjustment			3,319
Amounts reclassified out of accumulated other comprehensive income to interest income in unaudited condensed consolidated statement of operations and comprehensive income			(2,528)
Tax effects			0
Total other comprehensive income, net of tax	$ 1,014	$ 512	791	$ 26
Balance as of March 25, 2016	747		747
Unrealized Net (Losses) / Gains on Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance as of June 26, 2015			(44)
Other comprehensive income before reclassification adjustment			2,645
Amounts reclassified out of accumulated other comprehensive income to interest income in unaudited condensed consolidated statement of operations and comprehensive income			(2,528)
Tax effects			0
Total other comprehensive income, net of tax			117
Balance as of March 25, 2016	73		73
Unrealized Net Gains on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income before reclassification adjustment			674
Tax effects			0
Total other comprehensive income, net of tax			674
Balance as of March 25, 2016	$ 674		$ 674

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	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	0.9	$ 0.8
Outstanding commitment to third parties	$ 35.4
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	Mar. 25, 2016USD ($)
Operating Leased Assets [Line Items]
2,016	$ 289
2,017	1,039
2,018	1,040
2,019	581
2,020	372
Thereafter	18
Total minimum operating lease payments	$ 3,339

Business Segments and Geograp65

Business Segments and Geographic Information - Additional Information (Detail) $ in Millions	9 Months Ended
	Mar. 25, 2016USD ($)CustomerSegment	Mar. 27, 2015USD ($)Segment	Jun. 26, 2015Customer
Segment Reporting Information [Line Items]
Number of operating segment | Segment	1	1
Number of customers | Customer	2		2
North America
Segment Reporting Information [Line Items]
Long-lived assets | $	$ 33.4	$ 25.8

Total Revenues by Geographic Re

Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 25, 2016	Mar. 27, 2015	Mar. 25, 2016	Mar. 27, 2015
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 250,888	$ 189,453	$ 700,359	$ 567,131
North America
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	138,687	93,335	369,284	278,036
Asia Pacific
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	88,433	71,251	256,676	219,967
Europe
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 23,768	$ 24,867	$ 74,399	$ 69,128

Other Income Related to Flood67

Other Income Related to Flooding - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 25, 2016	Mar. 25, 2016
Unusual or Infrequent Item [Line Items]
Proceeds from insurer in settlement of claims related to flood damage	$ 800	$ 272
Other income in relation to flood	$ 900	36
Flooding in China during August 2015
Unusual or Infrequent Item [Line Items]
Proceeds from insurer in settlement of claims related to flood damage		800
Other income in relation to flood		36
Inventory losses		200
Repair cost of equipment		$ 600