Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 29, 2017 | Nov. 03, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 29, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FN | |
Entity Registrant Name | FABRINET | |
Entity Central Index Key | 1,408,710 | |
Current Fiscal Year End Date | --09-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,588,670 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 111,631 | $ 133,825 |
Marketable securities | 151,635 | 151,450 |
Trade accounts receivable, net | 275,418 | 264,349 |
Inventory, net | 255,104 | 238,665 |
Prepaid expenses | 7,894 | 6,306 |
Other current assets | 7,667 | 4,159 |
Total current assets | 809,349 | 798,754 |
Non-current assets | ||
Restricted cash in connection with business acquisition | 3,414 | 3,312 |
Property, plant and equipment, net | 217,985 | 216,881 |
Intangibles, net | 5,657 | 5,840 |
Goodwill | 3,923 | 3,806 |
Deferred tax assets | 2,730 | 2,905 |
Deferred debt issuance costs on revolving loan and other non-current assets | 1,497 | 1,577 |
Total non-current assets | 235,206 | 234,321 |
Total Assets | 1,044,555 | 1,033,075 |
Current liabilities | ||
Bank borrowings, net of unamortized debt issuance costs | 47,421 | 48,402 |
Trade accounts payable | 203,685 | 215,262 |
Fixed assets payable | 4,658 | 8,141 |
Capital lease liability, current portion | 343 | 344 |
Income tax payable | 2,469 | 1,976 |
Accrued payroll, bonus and related expenses | 14,538 | 13,852 |
Accrued expenses | 14,858 | 9,227 |
Other payables | 12,042 | 14,068 |
Total current liabilities | 300,014 | 311,272 |
Non-current liabilities | ||
Long-term loan from bank, non-current portion, net of unamortized debt issuance costs | 19,338 | 22,701 |
Deferred tax liability | 1,510 | 1,981 |
Capital lease liability, non-current portion | 967 | 1,024 |
Deferred liability in connection with business acquisition | 3,414 | 3,312 |
Severance liabilities | 9,058 | 8,488 |
Other non-current liabilities | 2,791 | 2,723 |
Total non-current liabilities | 37,078 | 40,229 |
Total Liabilities | 337,092 | 351,501 |
Commitments and contingencies (Note 16) | ||
Shareholders' equity | ||
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of September 29, 2017 and June 30, 2017) | 0 | 0 |
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 37,572,302 shares and 37,340,496 shares issued and outstanding as of September 29, 2017 and June 30, 2017, respectively) | 376 | 373 |
Additional paid-in capital | 137,593 | 133,293 |
Accumulated other comprehensive income (loss) | 206 | (348) |
Retained earnings | 569,288 | 548,256 |
Total Shareholders' Equity | 707,463 | 681,574 |
Total Liabilities and Shareholders' Equity | $ 1,044,555 | $ 1,033,075 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 29, 2017 | Jun. 30, 2017 |
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 | 37,572,302 | 37,340,496 |
Ordinary shares, shares outstanding | 37,572,302 | 37,340,496 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Revenues | $ 357,313 | $ 332,043 |
Cost of revenues | (316,981) | (292,435) |
Gross profit | 40,332 | 39,608 |
Selling, general and administrative expenses | (15,678) | (15,832) |
Operating income | 24,654 | 23,776 |
Interest income | 809 | 437 |
Interest expense | (853) | (1,322) |
Foreign exchange (loss) gain, net | (1,934) | 1,657 |
Other income | 97 | 143 |
Income before income taxes | 22,773 | 24,691 |
Income tax expense | (1,740) | (1,925) |
Net income | 21,033 | 22,766 |
Other comprehensive income, net of tax: | ||
Change in net unrealized gain (loss) on marketable securities | 29 | (187) |
Change in net unrealized loss on derivative instruments | (1) | (158) |
Change in foreign currency translation adjustment | 526 | 741 |
Total other comprehensive income, net of tax | 554 | 396 |
Net comprehensive income | $ 21,587 | $ 23,162 |
Earnings per share | ||
Basic | $ 0.56 | $ 0.63 |
Diluted | $ 0.55 | $ 0.61 |
Weighted-average number of ordinary shares outstanding (thousands of shares) | ||
Basic | 37,447 | 36,404 |
Diluted | 38,163 | 37,330 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income for the period | $ 21,033 | $ 22,766 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 7,419 | 5,113 |
Gain on disposal of property, plant and equipment | (131) | (40) |
Loss from sales and maturities of available-for-sale securities | 353 | 100 |
Amortization of investment (premium) discount | (216) | 166 |
Amortization of deferred debt issuance costs | 150 | 908 |
(Reversal of) allowance for doubtful accounts | (1) | 3 |
Unrealized loss (gain) on exchange rate and fair value of derivative instruments | 2,026 | (1,913) |
Share-based compensation | 6,920 | 5,611 |
Deferred income tax | (307) | 311 |
Other non-cash expenses | 629 | 453 |
Reversal of inventory obsolescence | (292) | (62) |
Changes in operating assets and liabilities | ||
Trade accounts receivable | (11,122) | (11,876) |
Inventory | (16,032) | (21,290) |
Other current assets and non-current assets | (7,263) | 3,285 |
Trade accounts payable | (11,323) | 3,103 |
Income tax payable | 493 | 1,035 |
Other current liabilities and non-current liabilities | 4,610 | (8,675) |
Net cash used in operating activities | (3,054) | (1,002) |
Cash flows from investing activities | ||
Purchase of marketable securities | (26,969) | (32,737) |
Proceeds from sales of marketable securities | 11,730 | 13,061 |
Proceeds from maturities of marketable securities | 14,947 | 13,230 |
Payments in connection with business acquisition, net of cash acquired | (9,664) | |
Purchase of property, plant and equipment | (11,203) | (27,090) |
Purchase of intangibles | (702) | (178) |
Proceeds from disposal of property, plant and equipment | 142 | 107 |
Net cash used in investing activities | (12,055) | (43,271) |
Cash flows from financing activities | ||
Proceeds from revolving loans | 13,500 | |
Repayment of short-term loans from bank | (992) | 0 |
Repayment of long-term loans from bank | (3,400) | (4,900) |
Repayment of capital lease liability | (95) | 0 |
Proceeds from issuance of ordinary shares under employee share option plans | 931 | 2,708 |
Withholding tax related to net share settlement of restricted share units | (3,550) | (867) |
Net cash (used in) provided by financing activities | (7,106) | 10,441 |
Net decrease in cash, cash equivalents and restricted cash | (22,215) | (33,832) |
Movement in cash, cash equivalents and restricted cash | ||
Cash, cash equivalents and restricted cash at beginning of period | 137,137 | 142,804 |
Decrease in cash, cash equivalents and restricted cash | (22,215) | (33,832) |
Effect of exchange rate on cash, cash equivalents and restricted cash | 123 | 267 |
Cash, cash equivalents and restricted cash at end of period | 115,045 | 109,239 |
Non-cash investing and financing activities | ||
Construction, software-related and equipment-related payables | $ 4,658 | $ 19,694 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 24, 2016 |
Reconciliation of cash, cash equivalents and restricted cash | ||||
Cash and cash equivalents | $ 111,631 | $ 133,825 | $ 105,860 | |
Restricted cash in connection with business acquisition (non-current assets) | 3,414 | 3,312 | 3,379 | |
Cash, cash equivalents and restricted cash | $ 115,045 | $ 137,137 | $ 109,239 | $ 142,804 |
Business and organization
Business and organization | 3 Months Ended |
Sep. 29, 2017 | |
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. The “Company” refers 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, low-volume, high-mix |
Accounting policies
Accounting policies | 3 Months Ended |
Sep. 29, 2017 | |
Accounting policies | 2. Accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of September 29, 2017 and for the three months ended September 29, 2017 and September 30, 2016 includes 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 the 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 The balance sheet as of June 30, 2017 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 months ended September 29, 2017 may not be indicative of results for the year ending June 29, 2018 or any future periods. Where necessary, comparative figures have been reclassified to conform to the current period accounting policies and presentation adopted. On September 14, 2016, the Company acquired 100% shareholding in Global CEM Solutions, Ltd. and all of its subsidiaries (including Fabrinet UK), a privately-held group located in Wiltshire, United Kingdom . The unaudited condensed consolidated financial statements of the Company include the financial position, results of operations and the cash flows of Fabrinet UK commencing as of the acquisition date. See Note 8 - Business acquisition for further details on the accounting for this transaction. Use of Estimates The preparation of the Company’s unaudited 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, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, 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 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, The Company performs ongoing credit evaluations for credit worthiness of its customers and usually does not require collateral from its customers. Management has implemented a program to closely monitor near term cash collection and credit exposures to mitigate any material losses. New Accounting Pronouncements – not yet adopted by the Company In September 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-13, In August 2017, the FASB issued ASU 2017-12, 2016-310—Derivatives In January 2017, the FASB issued ASU 2017-04, In January 2017, the FASB issued ASU 2017-03, 2014-09, 2016-02 2016-13 In January 2017, the FASB issued ASU 2017-01, In August 2016, the FASB issued ASU 2016-15, 2016-15 In February 2016, the FASB issued ASU 2016-02, In January 2016, the FASB issued ASU 2016-01, 825-10): In May 2014, the FASB issued ASU 2014-09, 2015-14, 2016-08 2016-10, 2016-12 2016-20 2015-14. New Accounting Pronouncements – adopted by the Company In November 2016, the FASB issued ASU 2016-18, In March 2016, the FASB issued ASU 2016-09, “Compensation In March 2016, the FASB issued ASU 2016-05, |
Earnings per ordinary share
Earnings per ordinary share | 3 Months Ended |
Sep. 29, 2017 | |
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 calculating the effect of potential dilutive ordinary shares outstanding during the period using the treasury stock method. Dilutive ordinary equivalent shares consist of share options, restricted share units and performance share units. Earnings per ordinary share was calculated as follows: Three Months Ended (amount in thousands except per share amounts) September 29, 2017 September 30, 2016 Net income attributable to shareholders $ 21,033 $ 22,766 Weighted-average number of ordinary shares outstanding (thousands of shares) 37,447 36,404 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 716 926 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 38,163 37,330 Basic earnings per ordinary share $ 0.56 $ 0.63 Diluted earnings per ordinary share $ 0.55 $ 0.61 As of September 29, 2017 and September 30, 2016, there were no anti-dilutive share options. |
Cash, cash equivalents and mark
Cash, cash equivalents and marketable securities | 3 Months Ended |
Sep. 29, 2017 | |
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 Securities As of September 29, 2017 Cash $ 108,800 $ — $ 108,800 $ — Cash equivalents 2,831 — 2,831 — Corporate bonds and commercial papers 109,044 30 — 109,074 U.S. agency and U.S. treasury securities 40,439 (76 ) — 40,363 Sovereign and municipal securities 2,195 3 — 2,198 Total $ 263,309 $ (43 ) $ 111,631 $ 151,635 Fair Value (amount in thousands) Carrying Cost Unrealized Gain/(Loss) Cash and Cash Equivalents Marketable Securities As of June 30, 2017 Cash $ 131,240 $ — $ 131,240 $ — Cash equivalents 2,585 — 2,585 — Corporate bonds and commercial papers 98,247 27 — 98,274 U.S. agency and U.S. treasury securities 50,768 (102 ) — 50,666 Sovereign and municipal securities 2,507 3 — 2,510 Total $ 285,347 $ (72 ) $ 133,825 $ 151,450 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 (amount in thousands) Carrying Cost Fair Value Due within one year $ 19,178 $ 19,176 Due between one to three years 128,969 128,932 Due after three years 3,531 3,527 Total $ 151,678 $ 151,635 During the three months ended September 29, 2017, the Company recognized a realized loss of $0.4 million from sales and maturities of available-for-sale. As of September 29, 2017, 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 months ended September 29, 2017. As of September 29, 2017, 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 11) and comply with covenants. As discussed in Note 11, 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 | 3 Months Ended |
Sep. 29, 2017 | |
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 September 29, 2017 Assets Cash equivalents $ — $ 2,831 $ — $ 2,831 Corporate bonds and commercial papers — 109,074 — 109,074 U.S. agency and U.S. treasury securities — 40,363 — 40,363 Sovereign and municipal securities — 2,198 — 2,198 Derivative assets — 5 (1) — 5 Total $ — $ 154,471 $ — $ 154,471 Liabilities Derivative liabilities $ — $ 10 (1) $ — $ 10 Total $ — $ 10 $ — $ 10 Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of June 30, 2017 Assets Cash equivalents $ — $ 2,585 $ — $ 2,585 Corporate bonds and commercial papers — 98,274 — 98,274 U.S. agency and U.S. treasury securities — 50,666 — 50,666 Sovereign and municipal securities — 2,510 — 2,510 Derivative assets — 15 (2) — 15 Total $ — $ 154,050 $ — $ 154,050 Liabilities Derivative liabilities $ — $ — $ — $ — Total $ — $ — $ — $ — (1) Foreign currency forward contracts with notional amount of $26.0 million and Canadian dollars 0.6 million. (2) Foreign currency forward contracts with notional amount of $1.0 million and Canadian dollars 0.6 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 September 29, 2017, the Company recognized the fair value of foreign currency forward contracts of $5 thousand as derivative assets and $10 thousand as derivative liabilities in the unaudited condensed consolidated balance sheet under other current assets and accrued expenses, respectively. As of June 30, 2017, the Company recognized the fair value of foreign currency forward contracts of $20 thousand as derivative assets in the unaudited condensed consolidated balance sheets under other current assets. As of September 29, 2017 and June 30, 2017, the Company had no foreign currency forward contracts designated as cash flow hedges. During the three months ended September 30, 2016, the Company discontinued cash flow hedges and recognized a gain from unwinding these forward contracts of $0.3 million in accumulated other comprehensive income (“AOCI”). A gain of $1 thousand in AOCI as of September 29, 2017 is expected to be reclassified into earnings within the next 12 months. As of September 29, 2017, the Company had 15 outstanding foreign currency forward contracts with notional amount of $26.0 million and Canadian dollars 0.6 million, maturing during October to December 2017. 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 three months ended September 29, 2017, the Company included unrealized loss of $4 thousand from changes in the fair value of foreign currency contracts in earnings as foreign exchange (loss) gain, net in the unaudited condensed consolidated statements of operations and comprehensive income. As of September 30, 2016, the Company had nine outstanding foreign currency forward contracts with notional amount of $42.5 million and Canadian dollars 0.4 million, maturing during October 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 three months ended September 30, 2016, the Company included unrealized loss of $50 thousand from changes in the fair value of foreign currency contracts in earnings as foreign exchange (loss) gain, net in the unaudited condensed consolidated statements of operations and comprehensive income. |
Trade accounts receivable, net
Trade accounts receivable, net | 3 Months Ended |
Sep. 29, 2017 | |
Trade accounts receivable, net | 6. Trade accounts receivable, net (amount in thousands) As of September 29, 2017 As of June 30, 2017 Trade accounts receivable $ 275,457 $ 264,389 Less: allowance for doubtful account (39 ) (40 ) Trade accounts receivable, net $ 275,418 $ 264,349 In September 2017, the Company fully repaid short-term loans from bank. Therefore, as of September 29, 2017, there were no trade accounts receivables secured to such loans. As of June 30, 2017, trade accounts receivable of $3.0 million were secured to short-term loans from bank (See Note 11). |
Inventory
Inventory | 3 Months Ended |
Sep. 29, 2017 | |
Inventory | 7. Inventory (amount in thousands) As of September 29, 2017 As of June 30, 2017 Raw materials $ 102,358 $ 88,640 Work in progress 111,049 105,732 Finished goods 29,764 33,998 Goods in transit 14,377 13,025 257,548 241,395 Less: Inventory obsolescence (2,444 ) (2,730 ) Inventory, net $ 255,104 $ 238,665 |
Business acquisition
Business acquisition | 3 Months Ended |
Sep. 29, 2017 | |
Business acquisition | 8. Business acquisition On September 14, 2016, the Company acquired 100% shareholding in Fabrinet UK (formerly known as Exception EMS), a privately-held group located in Wiltshire, United Kingdom, for cash consideration of approximately $13.0 million, net of $0.5 million cash acquired. Fabrinet UK provides contract electronics manufacturing services to the global electronics industry with innovative solutions, adding value to the design, manufacture and testing of printed circuit board assemblies. Pursuant to the acquisition agreement, the Company has placed $3.4 million of cash, net of foreign currency translation adjustment, for deferred consideration in an escrow account which is under the Company controls. However, the Company has contractually agreed to remit this deferred consideration to the sellers of Fabrinet UK, subject to the resolution of claims that the Company may make against the funds with respect to indemnification and other claims, within 24 months from the closing date of the transaction. The Company has accounted for this acquisition under the provisions of business combinations accounting, in accordance with Accounting Standards Codification Topic 805 – Business Combinations. Accordingly, the estimated fair value of the acquisition consideration was allocated to the assets acquired and the liabilities assumed based on their respective fair values on the acquisition date. The Company has made certain estimates and assumptions in determining the allocation of the acquisition consideration. The allocation of consideration to the individual net assets acquired was finalized in the fourth quarter of fiscal year 2017. As the functional currency of Fabrinet UK is pound sterling (“GBP”), for the three months ended September 29, 2017 and September 30, 2016, the Company recognized a $0.5 million gain and $0.7 million gain, respectively, from foreign currency translation adjustment in its unaudited condensed consolidated statements of operations and comprehensive income under other comprehensive income, net of tax. The Company’s allocation of the total purchase price for the acquisition is summarized below: (amount in thousands) Purchase price allocation Cash $ 474 Accounts receivable 4,064 Inventory 3,490 Other current assets 427 Property, plant and equipment 5,678 Intangibles 4,492 Goodwill 3,883 Other non-current 516 Current liabilities (6,796 ) Deferred tax liabilities (1,148 ) Other non-current (1,563 ) Total fair value of assets acquired and liabilities assumed $ 13,517 Total purchase price, net of cash acquired $ 13,043 In connection with the Company’s acquisition of Fabrinet UK, the Company assumed lease agreements for certain machine and equipment, which are accounted for as capital leases. As of September 29, 2017 and June 30, 2017, the Company included approximately $1.4 million and $1.9 million, respectively, of capital lease assets and $1.3 million and $1.4 million, respectively, of capital lease liability in the unaudited condensed consolidated balance sheets associated with these acquired lease agreements. During the three months ended September 30, 2016, the Company incurred approximately $1.1 million in transaction costs related to the acquisition, which primarily consisted of legal, accounting and valuation-related expenses. These expenses were recorded in selling, general and administrative expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive income. During the three months ended September 29, 2017, there were no transaction costs related to the acquisition. Pro forma results of operations for the acquisition have not been presented as they were not material to the Company’s results of operations. Identifiable intangibles The acquired intangible assets include customer relationships and backlog. The fair value of the identified intangible assets was determined based on the multi-period excess earnings method. Customer relationships represent the fair value of future projected revenues that were derived from the sale of products to existing customers of the acquired company. The $4.4 million in fair value of customer relationships will be amortized over an estimated remaining useful life of ten years. Backlog represents the fair value of sales orders backlog as of the valuation date. The $0.1 million in fair value of backlog will be amortized over the respective estimated remaining useful life of three years. Goodwill Goodwill arising from the acquisition is primarily attributable to the ability to expand future products and services and the assembled workforce. Goodwill is not deductible for tax purposes. |
Intangibles
Intangibles | 3 Months Ended |
Sep. 29, 2017 | |
Intangibles | 9. Intangibles The following tables present details of the Company’s intangibles: (amount in thousands) Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment Net As of September 29, 2017 Software $ 6,054 $ (4,019 ) $ — $ 2,035 Customer relationships 4,373 (841 ) 36 3,568 Backlog 119 (66 ) 1 54 Total intangibles $ 10,546 $ (4,926 ) $ 37 $ 5,657 (amount in thousands) Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment Net As of June 30, 2017 Software $ 5,944 $ (3,850 ) $ — $ 2,094 Customer relationships 4,373 (606 ) (88 ) 3,679 Backlog 119 (51 ) (1 ) 67 Total intangibles $ 10,436 $ (4,507 ) $ (89 ) $ 5,840 The Company recorded amortization expense relating to intangibles of $0.3 million and $30 thousand for the three months ended September 29, 2017 and September 30, 2016, respectively. The weighted-average remaining life of customer relationships and backlog are: (years) As of September 29, 2017 As of June 30, 2017 Customer relationships 6.7 6.9 Backlog 1.4 1.6 Based on the carrying amount of intangibles as of September 29, 2017, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2018 (remaining nine months) $ 1,137 2019 1,387 2020 975 2021 826 2022 560 Thereafter 772 Total $ 5,657 |
Goodwill
Goodwill | 3 Months Ended |
Sep. 29, 2017 | |
Goodwill | 10. Goodwill The changes in the carrying amount of goodwill from the acquisition of Fabrinet UK were as follows: (amount in thousands) Goodwill Balance as of June 30, 2017 $ 3,806 Foreign currency translation adjustment 117 Balance as of September 29, 2017 $ 3,923 (amount in thousands) Goodwill Balance as of June 24, 2016 $ — Addition in connection with business acquisition 3,883 Foreign currency translation adjustment (77 ) Balance as of June 30, 2017 $ 3,806 Goodwill is not deductible for tax purposes. Goodwill will not be amortized but is reviewed annually for impairment or more frequently whenever changes or circumstances indicate the carrying amount of goodwill may not be recoverable. |
Borrowings
Borrowings | 3 Months Ended |
Sep. 29, 2017 | |
Borrowings | 11. Borrowings The Company’s total borrowings, including short-term and long-term borrowings, consisted of the following: As of As of (amount in thousands) September 29, June 30, Rate (1) Conditions Maturity 2017 2017 Short-term borrowings: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months October 2017 (2) $ 34,000 $ 34,000 Short-term loans from bank: Bank Base rate +1.85% per annum Repayable based on credit terms of secured accounts receivable — 1,003 Current portion of long-term borrowing 13,600 13,600 47,600 48,603 Less: Unamortized debt issuance costs (179 ) (201 ) $ 47,421 $ 48,402 Long-term borrowings: Term loan borrowing: LIBOR +1.75% per annum Repayable in quarterly installments May 2019 $ 33,000 $ 36,400 33,000 36,400 Less: Current portion (13,600 ) (13,600 ) Unamortized debt issuance costs (62 ) (99 ) Non-current $ 19,338 $ 22,701 (1) LIBOR is London Interbank Offered Rate. (2) In September 2017, the maturity date was extended to October 2017. The movement of long-term loans for the three months ended September 29, 2017 and September 30, 2016 were as follows: Three Months Ended (amount in thousands) September 29, 2017 September 30, 2016 Opening balance $ 36,400 $ 54,500 Repayments during the period (3,400 ) (4,900 ) Closing balance $ 33,000 $ 49,600 As of September 29, 2017, future maturities of long-term debt during each fiscal year were as follows: (amount in thousands) 2018 (remaining nine months) $ 10,200 2019 22,800 Total $ 33,000 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. The Company fully drew down the term loan facility in fiscal year 2016. As of September 29, 2017, $34.0 million of the revolving borrowing and $33.0 million of the term loan borrowing was outstanding under the Facility Agreement, resulting in available credit facilities of $116.0 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 September 2017, 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 October 2017. 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. On July 24, 2017, the Company entered into an interest rate swap agreement (the “Swap Agreement”), which the Company did not designate as hedging instruments. The Swap Agreement was used to mitigate interest rate risk and improve the interest rate profile of the Company’s debt obligations. The terms of the Swap Agreement effectively convert the floating interest rate of the term loans under the Facility Agreement to the fixed interest rate of 1.55% per annum through maturity of the term loan in May 2019. The swap transactions are due and settled monthly. During the three month ended September 29, 2017, the Company included net loss of $20 thousand from the settlement of the Swap Agreement as interest expenses in the unaudited condensed consolidated statements of operations and comprehensive income. Fabrinet’s obligations under the Facility Agreement are guaranteed by certain of its existing and future direct material of its 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: (1) a minimum tangible net worth of not less than $200.0 million plus 50% of quarterly net income, exclusive of quarterly losses; (2) a minimum debt service coverage ratio of not less than 1.50:1.00; (3) a maximum senior leverage ratio of not more than 2.50:1.00; and (4) 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 September 29, 2017, 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. Short-term loans from bank In connection with the business acquisition in the first quarter of fiscal year 2017, the Company assumed a secured borrowing agreement. In the first quarter of fiscal year 2018, the Company fully repaid these short-term loans and sent a notification letter to the bank to terminate this secured borrowing agreement. As a result, the bank released secured trade accounts receivable and the way chattels mortgage over the plant and machine of Fabrinet UK (formerly known as Exception EMS). Undrawn available credit facilities classified by availability period of future borrowing as of September 29, 2017 and June 30, 2017 were as follows: (amount in thousands) September 29, 2017 June 30, 2017 Short-term $ — $ 1,965 Long-term $ 116,000 $ 116,000 |
Income taxes
Income taxes | 3 Months Ended |
Sep. 29, 2017 | |
Income taxes | 12. Income taxes As of September 29, 2017 and June 30, 2017, the liability for uncertain tax positions including accrued interest and penalties was $2.1 million and $2.0 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 2012 to 2016 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 September 29, 2017 and September 30, 2016 was 6.3% and 6.7%, respectively, of net income. The decrease was primarily due to the fact that the Company had higher income not subject to tax during the first quarter of fiscal year 2018 as compared to the same period in fiscal year 2017. |
Share-based compensation
Share-based compensation | 3 Months Ended |
Sep. 29, 2017 | |
Share-based compensation | 13. Share-based compensation Share-based compensation In determining the grant date fair value of equity awards, the Company is required to make estimates of 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 and expected terms of the awards. Forfeitures are estimated at the time of grant and revised if necessary in subsequent periods if actual forfeitures differ from those estimates. The fair value of restricted share units is based on the market value of our ordinary shares on the date of grant. The effect of recording share-based compensation expense for the three months ended September 29, 2017 and September 30, 2016 was as follows: Three Months Ended (amount in thousands) September 29, 2017 September 30, 2016 Share-based compensation expense by type of award: Restricted share units $ 4,847 $ 4,820 Performance share units 2,073 791 Total share-based compensation expense 6,920 5,611 Tax effect on share-based compensation expense — — Net effect on share-based compensation expense $ 6,920 $ 5,611 Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended (amount in thousands) September 29, 2017 September 30, 2016 Cost of revenue $ 1,901 $ 1,014 Selling, general and administrative expense 5,019 4,597 Total share-based compensation expense $ 6,920 $ 5,611 The Company did not capitalize any share-based compensation expense as part of any asset costs during the three months ended September 29, 2017 and September 30, 2016. Share-based award activity Share options have been granted to directors and employees. As of September 29, 2017, there were an aggregate of 38,157 share options outstanding, 1,108,010 restricted share units outstanding and 508,586 performance share units outstanding under Fabrinet’s 2010 Performance Incentive Plan (the “2010 Plan”). As of September 29, 2017, there were 508,850 ordinary shares available for future grant under the 2010 Plan. 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 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 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 30, 2017 96,688 96,688 $ 15.70 Granted — — — Exercised (58,531 ) $ 15.91 Forfeited — — Expired — — Balance as of September 29, 2017 38,157 38,157 $ 15.38 Number of Shares Number of Weighted- Per Share Weighted- Per Share Balance as of June 24, 2016 464,334 464,334 $ 15.95 Granted — — — Exercised (158,317 ) $ 17.10 Forfeited — — Expired — — Balance as of September 30, 2016 306,017 306,017 $ 15.36 The following summarizes information for share options outstanding as of September 29, 2017 under the 2010 Plan: Range of Exercise Price Number of Weighted- Aggregate (amount in thousands) $14.12 25,238 1.11 $15.16 5,869 0.88 $18.60 – $25.50 7,050 1.42 Options outstanding 38,157 1.09 $ 827 Options exercisable 38,157 1.09 $ 827 As of September 29, 2017, there was no unrecognized compensation cost for share options issued under the 2010 Plan. Restricted share units and performance share units Restricted share units and performance share units are types of share-based awards that may be granted under the 2010 Plan. Restricted share units granted to non-employee Performance share units granted to executives will vest at the end of a two-year pre-defined The Company has entered into an employment agreement, as amended on August 12, 2016, with one executive of the Company that provided for accelerated vesting of equity awards under certain circumstances. Pursuant to such agreement, because the executive’s employment with the Company continued through February 20, 2017, (1) all outstanding equity awards granted to the executive prior to August 2016 became 100% vested on February 20, 2017 and (2) certain restricted share units granted to the executive in August 2016 became 100% vested on February 20, 2017. The following summarizes restricted share unit activity under the 2010 Plan: Number of Shares Weighted- Per Share Balance as of June 30, 2017 1,058,605 $ 31.59 Granted 321,405 $ 39.35 Issued (259,033 ) $ 26.17 Forfeited (12,967 ) $ 35.33 Balance as of September 29, 2017 1,108,010 $ 35.07 Number of Shares Weighted- Per Share Balance as of June 24, 2016 1,181,402 $ 18.34 Granted 568,283 $ 39.53 Issued (408,874 ) (1) $ 39.87 Forfeited (19,347 ) $ 19.16 Balance as of September 30, 2016 1,321,464 $ 28.10 (1) Includes 875 shares vested on September 30, 2016, but not settled. The following summarizes performance share unit activity under the 2010 Plan: Number of Shares Weighted- Per Share Balance as of June 30, 2017 227,268 $ 40.48 Granted 281,318 $ 39.95 Issued — Forfeited — Balance as of September 29, 2017 508,586 $ 39.86 Number of Shares Weighted- Per Share Balance as of June 24, 2016 — — Granted 234,678 $ 40.48 Issued — — Forfeited (7,410 ) — Balance as of September 30, 2016 227,268 $ 40.48 As of September 29, 2017, there was $23.8 million and $14.0 million of unrecognized share-based compensation expense related to restricted share units and performance share units, respectively, under the 2010 Plan that is expected to be recorded over a weighted-average period of 2.77 years and 1.63 years, respectively. For the three months ended September 29, 2017 and September 30, 2016, the Company withheld an aggregate of 85,758 shares and 22,294 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 three months ended September 29, 2017 and September 30, 2016, the Company then remitted cash of $3.6 million and $0.9 million, respectively, to the appropriate taxing authorities, and presented it as 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 |
Shareholders' equity
Shareholders' equity | 3 Months Ended |
Sep. 29, 2017 | |
Shareholders' equity | 14. 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 three months ended September 29, 2017, Fabrinet issued 58,531 ordinary shares upon the exercise of options, for cash consideration at a weighted-average exercise price of $15.91 per share, and 173,275 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 | 3 Months Ended |
Sep. 29, 2017 | |
Accumulated other comprehensive income | 15. Accumulated other comprehensive income The changes in AOCI for the three months ended September 29, 2017 were as follows: (amount in thousands) Unrealized net (Losses) Gains on Marketable Securities Unrealized net Gains (Losses) on Derivative Instruments Foreign Total Balance as of June 30, 2017 $ (72 ) $ 34 $ (310 ) $ (348 ) Other comprehensive income before reclassification adjustment 382 — 526 908 Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income (353 ) (1 ) — (354 ) Tax effects — — — — Other comprehensive income $ 29 $ (1 ) $ 526 $ 554 Balance as of September 29, 2017 $ (43 ) $ 33 $ 216 $ 206 |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Sep. 29, 2017 | |
Commitments and contingencies | 16. Commitments and contingencies Bank guarantees As of September 29, 2017 and June 30, 2017, there were outstanding bank guarantees given by banks on behalf of Fabrinet Thailand for electricity usage and other normal business amounting to $1.5 million as of both dates. 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, New Jersey and the United Kingdom under operating lease arrangements that expire in various calendar years through 2023. Rental expense under these operating leases amounted to $0.5 million and $0.4 million for the three months ended September 29, 2017 and September 30, 2016, respectively. As of September 29, 2017, the future minimum lease payments due under non-cancelable (amount in thousands) 2018 (remaining nine months) $ 1,295 2019 1,177 2020 956 2021 553 2022 429 Thereafter 467 Total minimum operating lease payments $ 4,877 Capital lease commitments In connection with the acquisition of Fabrinet UK, the Company assumed the capital lease commitments of certain machine and equipment, with various expiration dates until September 2020. The equipment can be purchased at the determined prices upon expiration of such contracts. As of September 29, 2017, the future minimum lease payments due under non-cancelable (amount in thousands) 2018 (remaining nine months) $ 324 2019 458 2020 421 2021 107 Total minimum capital lease payments $ 1,310 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. On December 23, 2016, the Company entered into an agreement to purchase a parcel of land in Chonburi, Thailand, to support the expansion of the Company’s production in Thailand. The aggregate purchase price is approximately $5.6 million, of which the first installment of $1.1 million was paid by the Company on January 10, 2017. The Company expects to pay the remaining balance of the purchase price on or before December 25, 2017. As of September 29, 2017, the Company had an outstanding commitment to third parties of approximately $11.1 million, of which $4.5 million was from the commitment to purchase land in Chonburi, Thailand. 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 | 3 Months Ended |
Sep. 29, 2017 | |
Business segments and geographic information | 17. Business segments and geographic information Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is Fabrinet’s chief executive officer. As of September 29, 2017, 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 Three Months Ended (amount in thousands) September 29, 2017 September 30, 2016 North America $ 156,991 $ 165,995 Asia-Pacific 142,863 114,745 Europe 57,459 51,303 $ 357,313 $ 332,043 As of September 29, 2017 and September 30, 2016, the Company had approximately $35.0 million and $36.4 million of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific and Europe. Significant customers The Company had five and three customers that each contributed to 10% or more of its total trade accounts receivable as of September 29, 2017 and June 30, 2017, respectively. |
Treasury stock
Treasury stock | 3 Months Ended |
Sep. 29, 2017 | |
Treasury stock | 18. Treasury stock In August 2017, the Company’s board of directors approved a share repurchase program to permit the Company to repurchase up to $30.0 million worth of its issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations, at such time and such prices as management may decide. The repurchased shares will be held as treasury stock. As of September 29, 2017, the Company has not repurchased any of its issued and outstanding shares in the open market. |
Subsequent event
Subsequent event | 3 Months Ended |
Sep. 29, 2017 | |
Subsequent event | 19. Subsequent event As part of the Company’s ongoing efforts to achieve greater efficiencies in all areas of its business, on October 30, 2017, the Company implemented a reduction in workforce and incurred expenses of approximately $1.7 million, which represented severance and benefits costs incurred for the termination of approximately 204 employees in accordance with contractual obligations and local regulations. The Company will record this expense in the quarter ending December 29, 2017. |
Accounting policies (Policies)
Accounting policies (Policies) | 3 Months Ended |
Sep. 29, 2017 | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of September 29, 2017 and for the three months ended September 29, 2017 and September 30, 2016 includes 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 the 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 The balance sheet as of June 30, 2017 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 months ended September 29, 2017 may not be indicative of results for the year ending June 29, 2018 or any future periods. Where necessary, comparative figures have been reclassified to conform to the current period accounting policies and presentation adopted. On September 14, 2016, the Company acquired 100% shareholding in Global CEM Solutions, Ltd. and all of its subsidiaries (including Fabrinet UK), a privately-held group located in Wiltshire, United Kingdom . The unaudited condensed consolidated financial statements of the Company include the financial position, results of operations and the cash flows of Fabrinet UK commencing as of the acquisition date. See Note 8 - Business acquisition for further details on the accounting for this transaction. |
Use of Estimates | Use of Estimates The preparation of the Company’s unaudited 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, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, 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 |
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, The Company performs ongoing credit evaluations for credit worthiness of its customers and usually does not require collateral from its customers. Management has implemented a program to closely monitor near term cash collection and credit exposures to mitigate any material losses. |
New Accounting Pronouncements - not yet adopted by the Company | New Accounting Pronouncements – not yet adopted by the Company In September 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-13, In August 2017, the FASB issued ASU 2017-12, 2016-310—Derivatives In January 2017, the FASB issued ASU 2017-04, In January 2017, the FASB issued ASU 2017-03, 2014-09, 2016-02 2016-13 In January 2017, the FASB issued ASU 2017-01, In August 2016, the FASB issued ASU 2016-15, 2016-15 In February 2016, the FASB issued ASU 2016-02, In January 2016, the FASB issued ASU 2016-01, 825-10): In May 2014, the FASB issued ASU 2014-09, 2015-14, 2016-08 2016-10, 2016-12 2016-20 2015-14. |
New Accounting Pronouncements - adopted by the Company | New Accounting Pronouncements – adopted by the Company In November 2016, the FASB issued ASU 2016-18, In March 2016, the FASB issued ASU 2016-09, “Compensation In March 2016, the FASB issued ASU 2016-05, |
Earnings per ordinary share (Ta
Earnings per ordinary share (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Earnings Per Ordinary Share | Earnings per ordinary share was calculated as follows: Three Months Ended (amount in thousands except per share amounts) September 29, 2017 September 30, 2016 Net income attributable to shareholders $ 21,033 $ 22,766 Weighted-average number of ordinary shares outstanding (thousands of shares) 37,447 36,404 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 716 926 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 38,163 37,330 Basic earnings per ordinary share $ 0.56 $ 0.63 Diluted earnings per ordinary share $ 0.55 $ 0.61 |
Cash, cash equivalents and ma28
Cash, cash equivalents and marketable securities (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
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 Securities As of September 29, 2017 Cash $ 108,800 $ — $ 108,800 $ — Cash equivalents 2,831 — 2,831 — Corporate bonds and commercial papers 109,044 30 — 109,074 U.S. agency and U.S. treasury securities 40,439 (76 ) — 40,363 Sovereign and municipal securities 2,195 3 — 2,198 Total $ 263,309 $ (43 ) $ 111,631 $ 151,635 Fair Value (amount in thousands) Carrying Cost Unrealized Gain/(Loss) Cash and Cash Equivalents Marketable Securities As of June 30, 2017 Cash $ 131,240 $ — $ 131,240 $ — Cash equivalents 2,585 — 2,585 — Corporate bonds and commercial papers 98,247 27 — 98,274 U.S. agency and U.S. treasury securities 50,768 (102 ) — 50,666 Sovereign and municipal securities 2,507 3 — 2,510 Total $ 285,347 $ (72 ) $ 133,825 $ 151,450 |
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 (amount in thousands) Carrying Cost Fair Value Due within one year $ 19,178 $ 19,176 Due between one to three years 128,969 128,932 Due after three years 3,531 3,527 Total $ 151,678 $ 151,635 |
Fair value of financial instr29
Fair value of financial instruments (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
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 September 29, 2017 Assets Cash equivalents $ — $ 2,831 $ — $ 2,831 Corporate bonds and commercial papers — 109,074 — 109,074 U.S. agency and U.S. treasury securities — 40,363 — 40,363 Sovereign and municipal securities — 2,198 — 2,198 Derivative assets — 5 (1) — 5 Total $ — $ 154,471 $ — $ 154,471 Liabilities Derivative liabilities $ — $ 10 (1) $ — $ 10 Total $ — $ 10 $ — $ 10 Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of June 30, 2017 Assets Cash equivalents $ — $ 2,585 $ — $ 2,585 Corporate bonds and commercial papers — 98,274 — 98,274 U.S. agency and U.S. treasury securities — 50,666 — 50,666 Sovereign and municipal securities — 2,510 — 2,510 Derivative assets — 15 (2) — 15 Total $ — $ 154,050 $ — $ 154,050 Liabilities Derivative liabilities $ — $ — $ — $ — Total $ — $ — $ — $ — (1) Foreign currency forward contracts with notional amount of $26.0 million and Canadian dollars 0.6 million. (2) Foreign currency forward contracts with notional amount of $1.0 million and Canadian dollars 0.6 million. |
Trade accounts receivable, net
Trade accounts receivable, net (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Trade Accounts Receivable, Net | (amount in thousands) As of September 29, 2017 As of June 30, 2017 Trade accounts receivable $ 275,457 $ 264,389 Less: allowance for doubtful account (39 ) (40 ) Trade accounts receivable, net $ 275,418 $ 264,349 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Inventories | (amount in thousands) As of September 29, 2017 As of June 30, 2017 Raw materials $ 102,358 $ 88,640 Work in progress 111,049 105,732 Finished goods 29,764 33,998 Goods in transit 14,377 13,025 257,548 241,395 Less: Inventory obsolescence (2,444 ) (2,730 ) Inventory, net $ 255,104 $ 238,665 |
Business acquisition (Tables)
Business acquisition (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Allocation of Total Purchase Price | The Company’s allocation of the total purchase price for the acquisition is summarized below: (amount in thousands) Purchase price allocation Cash $ 474 Accounts receivable 4,064 Inventory 3,490 Other current assets 427 Property, plant and equipment 5,678 Intangibles 4,492 Goodwill 3,883 Other non-current 516 Current liabilities (6,796 ) Deferred tax liabilities (1,148 ) Other non-current (1,563 ) Total fair value of assets acquired and liabilities assumed $ 13,517 Total purchase price, net of cash acquired $ 13,043 |
Intangibles (Tables)
Intangibles (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Intangibles | The following tables present details of the Company’s intangibles: (amount in thousands) Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment Net As of September 29, 2017 Software $ 6,054 $ (4,019 ) $ — $ 2,035 Customer relationships 4,373 (841 ) 36 3,568 Backlog 119 (66 ) 1 54 Total intangibles $ 10,546 $ (4,926 ) $ 37 $ 5,657 (amount in thousands) Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment Net As of June 30, 2017 Software $ 5,944 $ (3,850 ) $ — $ 2,094 Customer relationships 4,373 (606 ) (88 ) 3,679 Backlog 119 (51 ) (1 ) 67 Total intangibles $ 10,436 $ (4,507 ) $ (89 ) $ 5,840 |
Weighted-Average Remaining Life of Intangible Assets | The weighted-average remaining life of customer relationships and backlog are: (years) As of September 29, 2017 As of June 30, 2017 Customer relationships 6.7 6.9 Backlog 1.4 1.6 |
Estimated Future Amortization of intangibles | Based on the carrying amount of intangibles as of September 29, 2017, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2018 (remaining nine months) $ 1,137 2019 1,387 2020 975 2021 826 2022 560 Thereafter 772 Total $ 5,657 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Changes in Carrying Amount of Goodwill from Acquisition | The changes in the carrying amount of goodwill from the acquisition of Fabrinet UK were as follows: (amount in thousands) Goodwill Balance as of June 30, 2017 $ 3,806 Foreign currency translation adjustment 117 Balance as of September 29, 2017 $ 3,923 (amount in thousands) Goodwill Balance as of June 24, 2016 $ — Addition in connection with business acquisition 3,883 Foreign currency translation adjustment (77 ) Balance as of June 30, 2017 $ 3,806 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Total Borrowings, Including Short-Term and Long-Term Borrowings | As of As of (amount in thousands) September 29, June 30, Rate (1) Conditions Maturity 2017 2017 Short-term borrowings: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months October 2017 (2) $ 34,000 $ 34,000 Short-term loans from bank: Bank Base rate +1.85% per annum Repayable based on credit terms of secured accounts receivable — 1,003 Current portion of long-term borrowing 13,600 13,600 47,600 48,603 Less: Unamortized debt issuance costs (179 ) (201 ) $ 47,421 $ 48,402 Long-term borrowings: Term loan borrowing: LIBOR +1.75% per annum Repayable in quarterly installments May 2019 $ 33,000 $ 36,400 33,000 36,400 Less: Current portion (13,600 ) (13,600 ) Unamortized debt issuance costs (62 ) (99 ) Non-current $ 19,338 $ 22,701 (1) LIBOR is London Interbank Offered Rate. (2) In September 2017, the maturity date was extended to October 2017. |
Movements of Long-Term Loans | The movement of long-term loans for the three months ended September 29, 2017 and September 30, 2016 were as follows: Three Months Ended (amount in thousands) September 29, 2017 September 30, 2016 Opening balance $ 36,400 $ 54,500 Repayments during the period (3,400 ) (4,900 ) Closing balance $ 33,000 $ 49,600 |
Future Maturities of Long-Term Debt | As of September 29, 2017, future maturities of long-term debt during each fiscal year were as follows: (amount in thousands) 2018 (remaining nine months) $ 10,200 2019 22,800 Total $ 33,000 |
Undrawn Available Credit Facilities Classified by Availability Period of Future Borrowing | Undrawn available credit facilities classified by availability period of future borrowing as of September 29, 2017 and June 30, 2017 were as follows: (amount in thousands) September 29, 2017 June 30, 2017 Short-term $ — $ 1,965 Long-term $ 116,000 $ 116,000 |
Share-based compensation (Table
Share-based compensation (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Effect of Recording Share-Based Compensation Expense | The effect of recording share-based compensation expense for the three months ended September 29, 2017 and September 30, 2016 was as follows: Three Months Ended (amount in thousands) September 29, 2017 September 30, 2016 Share-based compensation expense by type of award: Restricted share units $ 4,847 $ 4,820 Performance share units 2,073 791 Total share-based compensation expense 6,920 5,611 Tax effect on share-based compensation expense — — Net effect on share-based compensation expense $ 6,920 $ 5,611 |
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 (amount in thousands) September 29, 2017 September 30, 2016 Cost of revenue $ 1,901 $ 1,014 Selling, general and administrative expense 5,019 4,597 Total share-based compensation expense $ 6,920 $ 5,611 |
Share Option Activity | The following summarizes share option activity: Number of Shares Number of Weighted- Per Share Weighted- Per Share Balance as of June 30, 2017 96,688 96,688 $ 15.70 Granted — — — Exercised (58,531 ) $ 15.91 Forfeited — — Expired — — Balance as of September 29, 2017 38,157 38,157 $ 15.38 Number of Shares Number of Weighted- Per Share Weighted- Per Share Balance as of June 24, 2016 464,334 464,334 $ 15.95 Granted — — — Exercised (158,317 ) $ 17.10 Forfeited — — Expired — — Balance as of September 30, 2016 306,017 306,017 $ 15.36 |
Information for Share Options Outstanding | The following summarizes information for share options outstanding as of September 29, 2017 under the 2010 Plan: Range of Exercise Price Number of Weighted- Aggregate (amount in thousands) $14.12 25,238 1.11 $15.16 5,869 0.88 $18.60 – $25.50 7,050 1.42 Options outstanding 38,157 1.09 $ 827 Options exercisable 38,157 1.09 $ 827 |
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 30, 2017 1,058,605 $ 31.59 Granted 321,405 $ 39.35 Issued (259,033 ) $ 26.17 Forfeited (12,967 ) $ 35.33 Balance as of September 29, 2017 1,108,010 $ 35.07 Number of Shares Weighted- Per Share Balance as of June 24, 2016 1,181,402 $ 18.34 Granted 568,283 $ 39.53 Issued (408,874 ) (1) $ 39.87 Forfeited (19,347 ) $ 19.16 Balance as of September 30, 2016 1,321,464 $ 28.10 (1) Includes 875 shares vested on September 30, 2016, but not settled. |
Performance Share Unit Activity | The following summarizes performance share unit activity under the 2010 Plan: Number of Shares Weighted- Per Share Balance as of June 30, 2017 227,268 $ 40.48 Granted 281,318 $ 39.95 Issued — Forfeited — Balance as of September 29, 2017 508,586 $ 39.86 Number of Shares Weighted- Per Share Balance as of June 24, 2016 — — Granted 234,678 $ 40.48 Issued — — Forfeited (7,410 ) — Balance as of September 30, 2016 227,268 $ 40.48 |
Accumulated other comprehensi37
Accumulated other comprehensive income (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Changes in AOCI, Net of Tax | The changes in AOCI for the three months ended September 29, 2017 were as follows: (amount in thousands) Unrealized net (Losses) Gains on Marketable Securities Unrealized net Gains (Losses) on Derivative Instruments Foreign Total Balance as of June 30, 2017 $ (72 ) $ 34 $ (310 ) $ (348 ) Other comprehensive income before reclassification adjustment 382 — 526 908 Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income (353 ) (1 ) — (354 ) Tax effects — — — — Other comprehensive income $ 29 $ (1 ) $ 526 $ 554 Balance as of September 29, 2017 $ (43 ) $ 33 $ 216 $ 206 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases | As of September 29, 2017, the future minimum lease payments due under non-cancelable (amount in thousands) 2018 (remaining nine months) $ 1,295 2019 1,177 2020 956 2021 553 2022 429 Thereafter 467 Total minimum operating lease payments $ 4,877 |
Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases | As of September 29, 2017, the future minimum lease payments due under non-cancelable (amount in thousands) 2018 (remaining nine months) $ 324 2019 458 2020 421 2021 107 Total minimum capital lease payments $ 1,310 |
Business segments and geograp39
Business segments and geographic information (Tables) | 3 Months Ended |
Sep. 29, 2017 | |
Total Revenues by Geographic Regions | The following table presents total revenues by geographic regions: Three Months Ended (amount in thousands) September 29, 2017 September 30, 2016 North America $ 156,991 $ 165,995 Asia-Pacific 142,863 114,745 Europe 57,459 51,303 $ 357,313 $ 332,043 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 14, 2016 |
Accounting Policies [Line Items] | ||||
Restricted cash in connection with business acquisition | $ 3,414 | $ 3,312 | $ 3,379 | |
Global CEM Solutions, Ltd. | ||||
Accounting Policies [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Restricted cash in connection with business acquisition | $ 3,300 | $ 3,400 |
Earnings Per Ordinary Share (De
Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to shareholders | $ 21,033 | $ 22,766 |
Weighted-average number of ordinary shares outstanding (thousands of shares) | 37,447 | 36,404 |
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) | 716 | 926 |
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) | 38,163 | 37,330 |
Basic earnings per ordinary share | $ 0.56 | $ 0.63 |
Diluted earnings per ordinary share | $ 0.55 | $ 0.61 |
Earnings Per Ordinary Share - A
Earnings Per Ordinary Share - Additional Information (Detail) - shares | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 | Sep. 30, 2016 |
Cash, cash equivalents and marketable securities [Line Items] | |||
Cash and cash equivalents and Marketable securities, Carrying Cost | $ 263,309 | $ 285,347 | |
Marketable securities, Unrealized Gain/(Loss) | (43) | (72) | |
Cash and cash equivalents | 111,631 | 133,825 | $ 105,860 |
Marketable securities | 151,635 | 151,450 | |
Cash | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Carrying Cost | 108,800 | 131,240 | |
Cash and cash equivalents | 108,800 | 131,240 | |
Cash Equivalents | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Carrying Cost | 2,831 | 2,585 | |
Cash and cash equivalents | 2,831 | 2,585 | |
Corporate bonds and commercial papers | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Marketable securities, Carrying cost | 109,044 | 98,247 | |
Marketable securities, Unrealized Gain/(Loss) | 30 | 27 | |
Marketable securities | 109,074 | 98,274 | |
U.S. agency and U.S. treasury securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Marketable securities, Carrying cost | 40,439 | 50,768 | |
Marketable securities, Unrealized Gain/(Loss) | (76) | (102) | |
Marketable securities | 40,363 | 50,666 | |
Sovereign And Municipal Securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Marketable securities, Carrying cost | 2,195 | 2,507 | |
Marketable securities, Unrealized Gain/(Loss) | 3 | 3 | |
Marketable securities | $ 2,198 | $ 2,510 |
Cash, Cash Equivalents and Ma44
Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) | 3 Months Ended |
Sep. 29, 2017USD ($) | |
Cash, cash equivalents and marketable securities [Line Items] | |
(Loss) from sales and maturities of available-for-sale | $ (400,000) |
Impairment losses | 0 |
Cash, cash equivalents and marketable securities at financial institutions located in the United States | $ 40,000,000 |
Minimum | |
Cash, cash equivalents and marketable securities [Line Items] | |
Maturities period of marketable securities | 3 months |
Maximum | |
Cash, cash equivalents and marketable securities [Line Items] | |
Maturities period of marketable securities | 3 years |
Available-for-Sale Securities B
Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 |
Carrying cost | ||
Due within one year | $ 19,178 | |
Due between one to three years | 128,969 | |
Due after three years | 3,531 | |
Total | 151,678 | |
Fair value | ||
Due within one year | 19,176 | |
Due between one to three years | 128,932 | |
Due after three years | 3,527 | |
Total | $ 151,635 | $ 151,450 |
Financial Instruments Measured
Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 | |||
Assets | |||||
Derivative assets | $ 5 | $ 15 | |||
Total | 154,471 | 154,050 | |||
Liabilities | |||||
Derivative liabilities | 10 | ||||
Total | 10 | ||||
Cash Equivalents | |||||
Assets | |||||
Marketable securities | 2,831 | 2,585 | |||
Corporate bonds and commercial papers | |||||
Assets | |||||
Marketable securities | 109,074 | 98,274 | |||
U.S. agency and U.S. treasury securities | |||||
Assets | |||||
Marketable securities | 40,363 | 50,666 | |||
Sovereign And Municipal Securities | |||||
Assets | |||||
Marketable securities | 2,198 | 2,510 | |||
Significant Other Observable Inputs (Level 2) | |||||
Assets | |||||
Derivative assets | 5 | [1] | 15 | [2] | |
Total | 154,471 | 154,050 | |||
Liabilities | |||||
Derivative liabilities | [1] | 10 | |||
Total | 10 | ||||
Significant Other Observable Inputs (Level 2) | Cash Equivalents | |||||
Assets | |||||
Marketable securities | 2,831 | 2,585 | |||
Significant Other Observable Inputs (Level 2) | Corporate bonds and commercial papers | |||||
Assets | |||||
Marketable securities | 109,074 | 98,274 | |||
Significant Other Observable Inputs (Level 2) | U.S. agency and U.S. treasury securities | |||||
Assets | |||||
Marketable securities | 40,363 | 50,666 | |||
Significant Other Observable Inputs (Level 2) | Sovereign And Municipal Securities | |||||
Assets | |||||
Marketable securities | $ 2,198 | $ 2,510 | |||
[1] | Foreign currency forward contracts with notional amount of $26.0 million and Canadian dollars 0.6 million. | ||||
[2] | Foreign currency forward contracts with notional amount of $1.0 million and Canadian dollars 0.6 million. |
Financial Instruments Measure47
Financial Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) CAD in Millions, $ in Millions | Sep. 29, 2017USD ($) | Sep. 29, 2017CAD | Jun. 30, 2017USD ($) | Jun. 30, 2017CAD |
Foreign currency forward contracts | Fair Value, Measurements, Recurring | ||||
Fair Value Measurements at Reporting Date Using | ||||
Derivative assets, notional amount | $ 26 | CAD 0.6 | $ 1 | CAD 0.6 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Additional Information (Detail) | 3 Months Ended | ||||
Sep. 29, 2017USD ($)Contract | Sep. 30, 2016USD ($)Contract | Sep. 29, 2017CADContract | Jun. 30, 2017USD ($)Contract | Sep. 30, 2016CADContract | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Unrealized gain (loss) on derivatives | $ (2,026,000) | $ 1,913,000 | |||
Foreign currency forward contracts | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Derivative assets | 5,000 | $ 20,000 | |||
Derivative liabilities | $ 10,000 | ||||
Foreign currency forward contracts | Non designated | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Number of forward contracts outstanding | Contract | 15 | 9 | 15 | 9 | |
Derivative notional amount | $ 26,000,000 | $ 42,500,000 | CAD 600,000 | CAD 400,000 | |
Unrealized gain (loss) on derivatives | $ (4,000) | $ (50,000) | |||
Foreign currency forward contracts | Non designated | Minimum | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Derivative maturity period | 2017-10 | 2016-10 | |||
Foreign currency forward contracts | Non designated | Maximum | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Derivative maturity period | 2017-12 | 2016-12 | |||
Foreign currency forward contracts | Cash Flow Hedging | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Gain recognized from discontinued cash flow hedges | $ 300,000 | ||||
Number of forward contracts outstanding | Contract | 0 | 0 | 0 | ||
Foreign currency cash flow hedge gain to be reclassified during next 12 months | $ 1,000 |
Trade Accounts Receivable, Ne49
Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 275,457 | $ 264,389 |
Less: allowance for doubtful account | (39) | (40) |
Trade accounts receivable, net | $ 275,418 | $ 264,349 |
Trade Accounts Receivable, Ne50
Trade Accounts Receivable, Net - Additional Information (Detail) - USD ($) | Sep. 29, 2017 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable secured to short-term loans from bank | $ 0 | $ 3,000,000 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 102,358 | $ 88,640 |
Work in progress | 111,049 | 105,732 |
Finished goods | 29,764 | 33,998 |
Goods in transit | 14,377 | 13,025 |
Inventory, Gross, Total | 257,548 | 241,395 |
Less: Inventory obsolescence | (2,444) | (2,730) |
Inventory, net | $ 255,104 | $ 238,665 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) - USD ($) | Sep. 14, 2016 | Sep. 29, 2017 | Sep. 30, 2016 | Jun. 30, 2017 |
Business Acquisition [Line Items] | ||||
Total cash consideration, net of cash acquired | $ 9,664,000 | |||
Restricted cash in connection with business acquisition | $ 3,414,000 | 3,379,000 | $ 3,312,000 | |
Foreign currency translation adjustment | 526,000 | 741,000 | ||
Global CEM Solutions, Ltd. | ||||
Business Acquisition [Line Items] | ||||
Total cash consideration, net of cash acquired | $ 13,043,000 | |||
Business acquisition, cash acquired | $ 500,000 | |||
Percentage of ownership acquired | 100.00% | |||
Restricted cash in connection with business acquisition | $ 3,400,000 | 3,300,000 | ||
Foreign currency translation adjustment | 500,000 | 700,000 | ||
Capital lease assets | 1,400,000 | 1,900,000 | ||
Capital lease liability | 1,300,000 | $ 1,400,000 | ||
Transaction costs related to acquisition | 0 | |||
Global CEM Solutions, Ltd. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 4,400,000 | |||
Estimated useful life | 10 years | |||
Global CEM Solutions, Ltd. | Backlog | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 100,000 | |||
Estimated useful life | 3 years | |||
Global CEM Solutions, Ltd. | Selling, General and Administrative Expenses | ||||
Business Acquisition [Line Items] | ||||
Transaction costs related to acquisition | $ 1,100,000 |
Allocation of Total Purchase Pr
Allocation of Total Purchase Price (Detail) - USD ($) $ in Thousands | Sep. 14, 2016 | Sep. 30, 2016 | Sep. 29, 2017 | Jun. 30, 2017 | Jun. 24, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 3,923 | $ 3,806 | $ 0 | ||
Total purchase price, net of cash acquired | $ 9,664 | ||||
Global CEM Solutions, Ltd. | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 474 | ||||
Accounts receivable | 4,064 | ||||
Inventory | 3,490 | ||||
Other current assets | 427 | ||||
Property, plant and equipment | 5,678 | ||||
Intangibles | 4,492 | ||||
Goodwill | 3,883 | ||||
Other non-current assets | 516 | ||||
Current liabilities | (6,796) | ||||
Deferred tax liabilities | (1,148) | ||||
Other non-current liabilities | (1,563) | ||||
Total fair value of assets acquired and liabilities assumed | 13,517 | ||||
Total purchase price, net of cash acquired | $ 13,043 |
Intangibles (Detail)
Intangibles (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 29, 2017 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 10,546 | $ 10,436 |
Accumulated Amortization | (4,926) | (4,507) |
Foreign Currency Translation Adjustment | 37 | (89) |
Net | 5,657 | 5,840 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,054 | 5,944 |
Accumulated Amortization | (4,019) | (3,850) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net | 2,035 | 2,094 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,373 | 4,373 |
Accumulated Amortization | (841) | (606) |
Foreign Currency Translation Adjustment | 36 | (88) |
Net | 3,568 | 3,679 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 119 | 119 |
Accumulated Amortization | (66) | (51) |
Foreign Currency Translation Adjustment | 1 | (1) |
Net | $ 54 | $ 67 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense related to intangibles | $ 300,000 | $ 30,000 |
Weighted-Average Remaining Life
Weighted-Average Remaining Life of Intangible Assets (Detail) - Global CEM Solutions, Ltd. | 3 Months Ended | 12 Months Ended |
Sep. 29, 2017 | Jun. 30, 2017 | |
Customer relationships | ||
Finite-Lived Intangible Liabilities [Line Items] | ||
Weighted average remaining life of acquired intangible assets | 6 years 8 months 12 days | 6 years 10 months 25 days |
Backlog | ||
Finite-Lived Intangible Liabilities [Line Items] | ||
Weighted average remaining life of acquired intangible assets | 1 year 4 months 24 days | 1 year 7 months 6 days |
Estimated Future Amortization o
Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
2018 (remaining nine months) | $ 1,137 | |
2,019 | 1,387 | |
2,020 | 975 | |
2,021 | 826 | |
2,022 | 560 | |
Thereafter | 772 | |
Total | $ 5,657 | $ 5,840 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill from Acquisition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 29, 2017 | Jun. 30, 2017 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 3,806 | $ 0 |
Addition in connection with business acquisition | 3,883 | |
Foreign currency translation adjustment | 117 | (77) |
Ending Balance | $ 3,923 | $ 3,806 |
Total Borrowings, Including Sho
Total Borrowings, Including Short-Term and Long-Term Borrowings (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Sep. 29, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 24, 2016 | ||
Debt Instrument [Line Items] | |||||
Revolving borrowing | $ 34,000 | $ 34,000 | |||
Short-term loans from bank | 1,003 | ||||
Current portion of long-term borrowing | 13,600 | 13,600 | |||
Bank borrowings, gross | 47,600 | 48,603 | |||
Less: Unamortized debt issuance costs | (179) | (201) | |||
Bank borrowings, net of unamortized debt issuance costs | 47,421 | 48,402 | |||
Long-term borrowing | 33,000 | 36,400 | $ 49,600 | $ 54,500 | |
Unamortized debt issuance costs | (62) | (99) | |||
Non-current portion | $ 19,338 | 22,701 | |||
Short-term loans from bank | |||||
Debt Instrument [Line Items] | |||||
Rate | [1] | Bank Base rate +1.85% per annum | |||
Conditions | Repayable based on credit terms of secured accounts receivable | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Rate | [1] | LIBOR + 1.75% per annum | |||
Conditions | Repayable in 1 to 6 months | ||||
Term | [2] | 2017-10 | |||
Revolving borrowing | $ 34,000 | ||||
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Repayment duration | 1 month | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Repayment duration | 6 months | ||||
LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Margin above rate | 1.75% | ||||
LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Margin above rate | 2.50% | ||||
LIBOR | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Margin above rate | 1.75% | ||||
Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Margin above rate | 0.75% | ||||
Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Margin above rate | 1.50% | ||||
Base Rate | Short-term loans from bank | |||||
Debt Instrument [Line Items] | |||||
Margin above rate | 1.85% | ||||
Loans Payable Due May 2019 | |||||
Debt Instrument [Line Items] | |||||
Rate | [1] | LIBOR +1.75% per annum | |||
Conditions | Repayable in quarterly installments | ||||
Term | 2019-05 | ||||
Long-term borrowing | $ 33,000 | $ 36,400 | |||
Loans Payable Due May 2019 | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Margin above rate | 1.75% | ||||
[1] | LIBOR is London Interbank Offered Rate. | ||||
[2] | In September 2017, the maturity date was extended to October 2017. |
Total Borrowings, Including S60
Total Borrowings, Including Short-Term and Long-Term Borrowings (Parenthetical) (Detail) | 1 Months Ended |
Sep. 29, 2017 | |
Debt Instrument [Line Items] | |
Extended maturity date | 2017-10 |
Movements of Long-Term Loans (D
Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||
Opening balance | $ 36,400 | $ 54,500 |
Repayments during the period | (3,400) | (4,900) |
Closing balance | $ 33,000 | $ 49,600 |
Future Maturities of Long-Term
Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 24, 2016 |
Debt Instrument [Line Items] | ||||
2018 (remaining nine months) | $ 10,200 | |||
2,019 | 22,800 | |||
Total | $ 33,000 | $ 36,400 | $ 49,600 | $ 54,500 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Jul. 24, 2017 | Sep. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 |
Line of Credit Facility [Line Items] | ||||
Line of credit facility borrowing capacity | $ 200,000,000 | $ 200,000,000 | ||
Line of credit facility amounts outstanding | 34,000,000 | 34,000,000 | $ 34,000,000 | |
Undrawn available credit facilities for long-term borrowing | $ 116,000,000 | 116,000,000 | ||
Extended maturity date | 2017-10 | |||
Cash, cash equivalents and marketable securities at financial institutions located in the United States | $ 40,000,000 | 40,000,000 | ||
Deposits or securities | 10,000,000 | 10,000,000 | ||
Minimum net worth required for credit agreement | 200,000,000 | $ 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% | |||
Interest Rate Swap | ||||
Line of Credit Facility [Line Items] | ||||
Derivative, fixed interest rate | 1.55% | |||
Derivative, maturity date | 2019-05 | |||
Net loss on derivative recognized in operations and comprehensive income | $ (20,000) | |||
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 | $ 150,000,000 | ||
Line of credit facility increase in borrowing capacity | 100,000,000 | $ 100,000,000 | ||
Line of credit expiration date | May 22, 2019 | |||
Line of credit facility amounts outstanding | $ 34,000,000 | $ 34,000,000 | ||
Extended maturity date | 2017-10 | |||
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 | $ 50,000,000 | ||
Line of credit expiration date | May 22, 2019 | |||
Line of credit facility amounts outstanding | $ 33,000,000 | $ 33,000,000 |
Undrawn Available Credit Facili
Undrawn Available Credit Facilities Classified by Availability Period of Future Borrowing (Detail) - USD ($) $ in Thousands | Sep. 29, 2017 | Jun. 30, 2017 |
Line of Credit Facility [Line Items] | ||
Undrawn available credit facilities | $ 116,000 | |
Short-term loans | ||
Line of Credit Facility [Line Items] | ||
Undrawn available credit facilities | $ 1,965 | |
Long-term loans | ||
Line of Credit Facility [Line Items] | ||
Undrawn available credit facilities | $ 116,000 | $ 116,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
Income Taxes [Line Items] | |||
Liability for uncertain tax positions including accrued interest and penalties | $ 2.1 | $ 2 | |
Corporate effective income tax rate | 6.30% | 6.70% | |
Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Tax year remain open to examination | 2,012 | ||
Latest Tax Year | |||
Income Taxes [Line Items] | |||
Tax year remain open to examination | 2,016 |
Effect of Recording Share-Based
Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Share-based compensation expense by type of award: | ||
Restricted share units | $ 4,847 | $ 4,820 |
Performance share units | 2,073 | 791 |
Total share-based compensation expense | 6,920 | 5,611 |
Tax effect on share-based compensation expense | 0 | 0 |
Net effect on share-based compensation expense | $ 6,920 | $ 5,611 |
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 | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ 6,920 | $ 5,611 |
Cost of Revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 1,901 | 1,014 |
Selling, General and Administrative Expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ 5,019 | $ 4,597 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Sep. 29, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Jun. 24, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation costs capitalized | $ 0 | $ 0 | ||
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes | 85,758 | 22,294 | ||
Tax withholdings related to net share settlement of restricted share units | $ 3,550,000 | $ 867,000 | ||
Stock Plan 2010 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share options outstanding | 38,157 | |||
Ordinary shares available for future grant | 508,850 | |||
Performance Share Units | Stock Plan 2010 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share units outstanding | 508,586 | 227,268 | 227,268 | |
Performance Share Units | Executive of the Company | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award granted vesting period, year | 2 years | |||
Performance Share Units | Executive of the Company | Vest at the end of the performance period | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 0.00% | |||
Performance Share Units | Executive of the Company | Vest at the end of the performance period | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 100.00% | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award granted vesting period, year | 4 years | |||
Options expiration period, year | 7 years | |||
Employee Stock Option | Stock Plan 2010 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense | $ 0 | |||
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 | Stock Plan 2010 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share units outstanding | 1,108,010 | 1,321,464 | 1,058,605 | 1,181,402 |
Unrecognized share-based compensation expense | $ 23,800,000 | |||
Unrecognized compensation expense, weighted-average period for recognition | 2 years 9 months 8 days | |||
Restricted Share Units | Vesting Option One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award granted vesting period, year | 3 years | |||
Restricted Share Units | Vesting Option Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award granted vesting period, year | 4 years | |||
Restricted Share Units | Executive of the Company | Granted to the executive prior to August 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 100.00% | |||
Restricted Share Units | Executive of the Company | Granted to the executive in August 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 100.00% | |||
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% | |||
Performance Stock Units PSU | Stock Plan 2010 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense | $ 14,000,000 | |||
Unrecognized compensation expense, weighted-average period for recognition | 1 year 7 months 17 days |
Share Option Activity (Detail)
Share Option Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares | 3 Months Ended | |||
Sep. 29, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Jun. 24, 2016 | |
Number of shares | ||||
Beginning balance | 96,688 | 464,334 | ||
Granted | 0 | 0 | ||
Exercised | (58,531) | (158,317) | ||
Forfeited | 0 | 0 | ||
Expired | 0 | 0 | ||
Ending balance | 38,157 | 306,017 | ||
Number of Exercisable Options | ||||
Number of Exercisable Options | 38,157 | 306,017 | 96,688 | 464,334 |
Weighted-Average Exercise Price per share | ||||
Beginning balance | $ 15.7 | $ 15.95 | ||
Granted | 0 | 0 | ||
Exercised | 15.91 | 17.10 | ||
Forfeited | 0 | 0 | ||
Expired | 0 | 0 | ||
Ending balance | 15.38 | 15.36 | ||
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 | 3 Months Ended |
Sep. 29, 2017USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, outstanding | 38,157 |
Options outstanding, weighted average remaining contractual life (years) | 1 year 1 month 2 days |
Options outstanding, aggregate intrinsic value | $ | $ 827 |
Range of Exercise Price 1 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Maximum | $ / shares | $ 14.12 |
Number of Shares Underlying Options, outstanding | 25,238 |
Options outstanding, weighted average remaining contractual life (years) | 1 year 1 month 9 days |
Range of Exercise Price 2 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Maximum | $ / shares | $ 15.16 |
Number of Shares Underlying Options, outstanding | 5,869 |
Options outstanding, weighted average remaining contractual life (years) | 10 months 17 days |
Range of Exercise Price 3 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, Minimum | $ / shares | $ 18.60 |
Range of Exercise Price, Maximum | $ / shares | $ 25.50 |
Number of Shares Underlying Options, outstanding | 7,050 |
Options outstanding, weighted average remaining contractual life (years) | 1 year 5 months 1 day |
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 | 38,157 |
Options exercisable, weighted average remaining contractual life (years) | 1 year 1 month 2 days |
Options exercisable, aggregate intrinsic value | $ | $ 827 |
Restricted Share Unit Activity
Restricted Share Unit Activity (Detail) - Stock Plan 2010 - Restricted Share Units - $ / shares | 3 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | ||
Number of restricted share units | |||
Number of share units, beginning balance | 1,058,605 | 1,181,402 | |
Number of share units, Granted | 321,405 | 568,283 | |
Number of share units, Issued | (259,033) | (408,874) | [1] |
Number of share units, Forfeited | (12,967) | (19,347) | |
Number of restricted share units, ending balance | 1,108,010 | 1,321,464 | |
Weighted Average Grant Date Fair Value Per Share | |||
Weighted-average grant date fair value per share, Beginning Balance | $ 31.59 | $ 18.34 | |
Weighted-average grant date fair value per share, Granted | 39.35 | 39.53 | |
Weighted-average grant date fair value per share, Issued | 26.17 | 39.87 | |
Weighted-average grant date fair value per share, Forfeited | 35.33 | 19.16 | |
Weighted-average grant date fair value per share, Ending Balance | $ 35.07 | $ 28.10 | |
[1] | Includes 875 shares vested on September 30, 2016, but not settled. |
Restricted Share Unit Activit72
Restricted Share Unit Activity (Parenthetical) (Detail) | Sep. 30, 2016shares |
Restricted Share Units | Stock Plan 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted share unit of shares vested but not settled | 875 |
Performance Share Unit Activity
Performance Share Unit Activity (Detail) - Stock Plan 2010 - Performance Share Units - $ / shares | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Number of performance share units | ||
Number of share units, beginning balance | 227,268 | |
Number of share units, Granted | 281,318 | 234,678 |
Number of share units, Issued | 0 | 0 |
Number of share units, Forfeited | (7,410) | |
Number of restricted share units, ending balance | 508,586 | 227,268 |
Weighted Average Grant Date Fair Value Per Share | ||
Weighted-average grant date fair value per share, Beginning Balance | $ 40.48 | |
Weighted-average grant date fair value per share, Granted | 39.95 | $ 40.48 |
Weighted-average grant date fair value per share, Issued | 0 | 0 |
Weighted-average grant date fair value per share, Forfeited | 0 | 0 |
Weighted-average grant date fair value per share, Ending Balance | $ 39.86 | $ 40.48 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | 3 Months Ended | ||
Sep. 29, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
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 | 58,531 | 158,317 | |
Ordinary shares issued upon exercise of options, weight average exercise price | $ 15.91 | $ 17.10 | |
Ordinary shares issued upon vesting of restricted shares | 173,275 |
Changes in AOCI, Net of Tax (De
Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 681,574 | |
Other comprehensive income before reclassification adjustment | 908 | |
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income | (354) | |
Tax effects | 0 | |
Total other comprehensive income, net of tax | 554 | $ 396 |
Ending Balance | 707,463 | |
Unrealized Net (Losses) Gains on Marketable Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (72) | |
Other comprehensive income before reclassification adjustment | 382 | |
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income | (353) | |
Tax effects | 0 | |
Total other comprehensive income, net of tax | 29 | |
Ending Balance | (43) | |
Unrealized Net Gains (Losses) on Derivative Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 34 | |
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income | (1) | |
Tax effects | 0 | |
Total other comprehensive income, net of tax | (1) | |
Ending Balance | 33 | |
Foreign Currency Translation Adjustment (Losses) Gains | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (310) | |
Other comprehensive income before reclassification adjustment | 526 | |
Tax effects | 0 | |
Total other comprehensive income, net of tax | 526 | |
Ending Balance | 216 | |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (348) | |
Tax effects | 0 | |
Ending Balance | $ 206 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Jan. 10, 2017 | Sep. 29, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Dec. 23, 2016 |
Commitments and Contingencies Disclosure [Line Items] | |||||
Outstanding bank guarantees given by banks on behalf of the company | $ 1.5 | $ 1.5 | |||
Rental expense under operating leases | 0.5 | $ 0.4 | |||
Thailand | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Purchase of land | $ 5.6 | ||||
Payment to purchase of land | $ 1.1 | ||||
Outstanding commitment to third parties | 11.1 | ||||
Thailand | Land | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Outstanding commitment to third parties | $ 4.5 | ||||
Maximum | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Operating lease expiration year | 2,023 |
Future Minimum Lease Payments D
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases (Detail) $ in Thousands | Sep. 29, 2017USD ($) |
Operating Leased Assets [Line Items] | |
2018 (remaining nine months) | $ 1,295 |
2,019 | 1,177 |
2,020 | 956 |
2,021 | 553 |
2,022 | 429 |
Thereafter | 467 |
Total minimum operating lease payments | $ 4,877 |
Future Minimum Lease Payments78
Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases (Detail) $ in Thousands | Sep. 29, 2017USD ($) |
Capital Leased Assets [Line Items] | |
2018 (remaining nine months) | $ 324 |
2,019 | 458 |
2,020 | 421 |
2,021 | 107 |
Total minimum capital lease payments | $ 1,310 |
Business Segments and Geograp79
Business Segments and Geographic Information - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Sep. 29, 2017USD ($)CustomerSegment | Jun. 30, 2017Customer | Sep. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Number of customers that contributed more than 10% of trade accounts receivable | Customer | 5 | 3 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ | $ 35 | $ 36.4 |
Total Revenues by Geographic Re
Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 29, 2017 | Sep. 30, 2016 | |
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||
Revenues | $ 357,313 | $ 332,043 |
North America | ||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||
Revenues | 156,991 | 165,995 |
Asia-Pacific | ||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||
Revenues | 142,863 | 114,745 |
Europe | ||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||
Revenues | $ 57,459 | $ 51,303 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 29, 2017 | Aug. 31, 2017 | |
Amount of repurchased ordinary shares | $ 30 | |
Shares repurchase issued and outstanding | 0 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event $ in Millions | 1 Months Ended |
Oct. 30, 2017USD ($)Employee | |
Restructuring Cost and Reserve [Line Items] | |
Severence expenses | $ | $ 1.7 |
Restructuring and related cost, number of positions eliminated | Employee | 204 |