Fabrinet (FN) 10-Q 8 May 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 30, 2018	Apr. 27, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Trading Symbol	FN
Entity Registrant Name	FABRINET
Entity Central Index Key	1,408,710
Current Fiscal Year End Date	--06-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		36,904,455

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 30, 2018	Jun. 30, 2017
Current assets
Cash and cash equivalents	$ 142,407	$ 133,825
Marketable securities	169,444	151,450
Trade accounts receivable, net	243,997	264,349
Inventory, net	239,617	238,665
Prepaid expenses	9,466	6,306
Other current assets	11,049	4,159
Total current assets	815,980	798,754
Non-current assets
Restricted cash in connection with business acquisition	3,569	3,312
Property, plant and equipment, net	222,047	216,881
Intangibles, net	5,927	5,840
Goodwill	4,101	3,806
Deferred tax assets	3,046	2,905
Deferred debt issuance costs on revolving loan and other non-current assets	135	1,577
Total non-current assets	238,825	234,321
Total Assets	1,054,805	1,033,075
Current liabilities
Bank borrowings, net of unamortized debt issuance costs	52,464	48,402
Trade accounts payable	193,374	215,262
Fixed assets payable	4,684	8,141
Capital lease liability, current portion	491	344
Income tax payable	298	1,976
Accrued payroll, bonus and related expenses	13,322	13,852
Accrued expenses	11,750	9,227
Other payables	10,776	14,068
Total current liabilities	287,159	311,272
Non-current liabilities
Long-term loan from bank, non-current portion, net of unamortized debt issuance costs	12,595	22,701
Deferred tax liability	2,172	1,981
Capital lease liability, non-current portion	671	1,024
Deferred liability in connection with business acquisition	3,569	3,312
Severance liabilities	10,103	8,488
Other non-current liabilities	2,993	2,723
Total non-current liabilities	32,103	40,229
Total Liabilities	319,262	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 March 30, 2018 and June 30, 2017)
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 37,640,215 shares and 37,340,496 shares issued, and 36,901,790 shares and 37,340,496 shares outstanding as of March 30, 2018 and June 30, 2017, respectively)	376	373
Additional paid-in capital	147,958	133,293
Treasury stock, at cost (738,425 shares and zero shares as of March 30, 2018 and June 30, 2017, respectively)	(22,407)
Accumulated other comprehensive loss	(39)	(348)
Retained earnings	609,655	548,256
Total Shareholders' Equity	735,543	681,574
Total Liabilities and Shareholders' Equity	$ 1,054,805	$ 1,033,075

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 30, 2018	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	37,640,215	37,340,496
Ordinary shares, shares outstanding	36,901,790	37,340,496
Treasury stock, shares	738,425	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017	Mar. 30, 2018	Mar. 31, 2017
Revenues	$ 332,213	$ 366,837	$ 1,026,598	$ 1,050,036
Cost of revenues	(295,280)	(322,791)	(912,167)	(923,336)
Gross profit	36,933	44,046	114,431	126,700
Selling, general and administrative expenses	(12,418)	(17,086)	(41,253)	(50,569)
Expenses related to reduction in workforce			(1,776)
Operating income	24,515	26,960	71,402	76,131
Interest income	1,149	713	2,554	1,470
Interest expense	(820)	(641)	(2,499)	(2,517)
Foreign exchange loss, net	(2,428)	(3,702)	(5,710)	(100)
Other income	91	108	438	397
Income before income taxes	22,507	23,438	66,185	75,381
Income tax expense	(1,454)	(1,782)	(4,786)	(5,667)
Net income	21,053	21,656	61,399	69,714
Other comprehensive income (loss), net of tax:
Change in net unrealized (loss) gain on marketable securities	(616)	49	(1,048)	(491)
Change in net unrealized loss on derivative instruments			(1)	(158)
Change in foreign currency translation adjustment	789	227	1,358	(935)
Total other comprehensive income (loss), net of tax	173	276	309	(1,584)
Net comprehensive income	$ 21,226	$ 21,932	$ 61,708	$ 68,130
Earnings per share
Basic	$ 0.56	$ 0.58	$ 1.64	$ 1.89
Diluted	$ 0.55	$ 0.57	$ 1.61	$ 1.85
Weighted-average number of ordinary shares outstanding (thousands of shares)
Basic	37,275	37,116	37,400	36,792
Diluted	38,055	37,872	38,125	37,750

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017
Cash flows from operating activities
Net income for the period	$ 61,399	$ 69,714
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	21,288	16,956
(Gain) loss on disposal of property, plant and equipment	(153)	7
Loss from sales and maturities of available-for-sale securities	362	407
Amortization of investment (premium) discount	(31)	397
Amortization of deferred debt issuance costs	433	1,591
Allowance for doubtful accounts	44	3
Unrealized loss (gain) on exchange rate and fair value of derivative instruments	1,393	(718)
Share-based compensation	17,704	21,936
Deferred income tax	19	1,008
Other non-cash expenses	1,941	1,775
Reversal of inventory obsolescence	(291)	(72)
Changes in operating assets and liabilities
Trade accounts receivable	21,411	(50,839)
Inventory	(973)	(39,766)
Other current assets and non-current assets	(9,853)	3,921
Trade accounts payable	(22,518)	32,653
Income tax payable	(1,678)	166
Other current liabilities and non-current liabilities	(703)	1,249
Net cash provided by operating activities	89,794	60,388
Cash flows from investing activities
Purchase of marketable securities	(84,519)	(100,751)
Proceeds from sales of marketable securities	22,169	33,812
Proceeds from maturities of marketable securities	42,977	54,745
Payments in connection with business acquisition, net of cash acquired		(9,917)
Purchase of property, plant and equipment	(28,268)	(57,224)
Purchase of intangibles	(1,487)	(1,910)
Proceeds from disposal of property, plant and equipment	202	190
Net cash used in investing activities	(48,926)	(81,055)
Cash flows from financing activities
Proceeds of short-term loans from banks	5,000	27,665
Repayment of short-term loans from bank	(1,003)
Repayment of long-term loans from bank	(10,200)	(14,700)
Repayment of capital lease liability	(293)	(182)
Repurchase of ordinary shares	(22,407)
Proceeds from issuance of ordinary shares under employee share option plans	993	5,890
Withholding tax related to net share settlement of restricted share units	(4,030)	(1,272)
Net cash provided by (used in) financing activities	(31,940)	17,401
Net increase (decrease) in cash, cash equivalents and restricted cash	8,928	(3,266)
Movement in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period	137,137	142,804
Increase (decrease) in cash, cash equivalents and restricted cash	8,928	(3,266)
Effect of exchange rate on cash, cash equivalents and restricted cash	(89)	271
Cash, cash equivalents and restricted cash at end of period	145,976	139,809
Non-cash investing and financing activities
Construction, software-related and equipment-related payables	$ 4,684	$ 12,409

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Mar. 30, 2018	Jun. 30, 2017	Mar. 31, 2017	Jun. 24, 2016
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$ 142,407	$ 133,825	$ 136,634
Restricted cash in connection with business acquisition (non-current assets)	3,569	3,312	3,175
Cash, cash equivalents and restricted cash	$ 145,976	$ 137,137	$ 139,809	$ 142,804

Business and organization

Business and organization	9 Months Ended
	Mar. 30, 2018
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	9 Months Ended
	Mar. 30, 2018
Accounting policies	2. Accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of March 30, 2018 and for the three and nine months ended March 30, 2018 and March 31, 2017 include 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 and nine months ended March 30, 2018 may not be indicative of results for the year ending June 29, 2018 or any future periods. 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 November 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-14, No. 33-10403”. No. 33-10403. In September 2017, the FASB issued ASU 2017-13, 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): 2018-03, 825-10), 2016-01 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 February 2018, the FASB issued ASU 2018-02 2018-05, In August 2017, the FASB issued ASU 2017-12, 2016-310—Derivatives 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	9 Months Ended
	Mar. 30, 2018
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 Nine Months Ended (amount in thousands except per share amounts) March 30, March 31, March 30, March 31, Net income attributable to shareholders $ 21,053 $ 21,656 $ 61,399 $ 69,714 Weighted-average number of ordinary shares outstanding (thousands of shares) 37,275 37,116 37,400 36,792 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 780 756 725 958 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 38,055 37,872 38,125 37,750 Basic earnings per ordinary share $ 0.56 $ 0.58 $ 1.64 $ 1.89 Diluted earnings per ordinary share $ 0.55 $ 0.57 $ 1.61 $ 1.85 As of March 30, 2018 and March 31, 2017, there were no anti-dilutive share options.

Cash, cash equivalents and mark

Cash, cash equivalents and marketable securities	9 Months Ended
	Mar. 30, 2018
Cash, cash equivalents and marketable securities	4. Cash, cash equivalents and marketable securities The Company’s cash, cash equivalents, and marketable securities can be analyzed as follows: Fair Value (amount in thousands) Carrying Cost Unrealized Cash and Marketable As of March 30, 2018 Cash $ 127,279 $ — $ 127,279 $ — Cash equivalents 15,128 — 15,128 — Corporate bonds and commercial papers 125,356 (814 ) — 124,542 U.S. agency and U.S. treasury securities 40,910 (281 ) — 40,629 Sovereign and municipal securities 4,300 (27 ) — 4,273 Total $ 312,973 $ (1,122 ) $ 142,407 $ 169,444 Fair Value (amount in thousands) Carrying Unrealized Cash and Marketable 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 $ 13,181 $ 13,174 Due between one to three years 157,385 156,270 Total $ 170,566 $ 169,444 During the nine months ended March 30, 2018, the Company recognized a realized loss of $0.4 million from sales and maturities of available-for-sale As of March 30, 2018, 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 nine months ended March 30, 2018. As of March 30, 2018, 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 must maintain cash, cash equivalents and 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 this covenant from and after the effective date of the Facility Agreement.

Fair value of financial instrum

Fair value of financial instruments	9 Months Ended
	Mar. 30, 2018
Fair value of financial instruments	5. Fair value of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs for the valuation of an asset or liability as of measurement date. The three levels of inputs that may be used to measure fair value are defined as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly. If the assets or liabilities have a specified (contractual) term, Level 2 inputs must be observable for substantially the full term of assets or liabilities. Level 3 inputs are unobservable inputs for assets or liabilities, which require the reporting entity to develop its own valuation techniques and assumptions. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The following table provides details of the financial instruments measured at fair value on a recurring basis, including: Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of March 30, 2018 Assets Cash equivalents $ — $ 15,128 $ — $ 15,128 Corporate bonds and commercial papers — 124,542 — 124,542 U.S. agency and U.S. treasury securities — 40,629 — 40,629 Sovereign and municipal securities — 4,273 — 4,273 Derivative assets — — — — Total $ — $ 184,572 $ — $ 184,572 Liabilities Derivative liabilities — $ 29 (1) — $ 29 Total $ — $ 29 $ — $ 29 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 (1) Foreign currency forward contracts with notional amount of $14.0 million and Canadian Dollars 0.1 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 March 30, 2018, the Company recognized the fair value of foreign currency forward contracts of $0.03 million as derivative liabilities in the unaudited condensed consolidated balance sheet under other current liabilities. As of June 30, 2017, the Company recognized the fair value of foreign currency forward contracts of $0.02 million as derivative assets in the consolidated balance sheet under other current assets. As of March 30, 2018, the Company had 6 outstanding foreign currency forward contracts with an aggregate notional amount of $14.0 million and Canadian dollars 0.1 million, maturing during April to June 2018. These foreign currency forward contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht and Canadian dollar. During the nine months ended March 30, 2018, the Company included an unrealized loss of $30 thousand from changes in the fair value of foreign currency contracts in earnings as foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income. As of March 31, 2017, the Company had no foreign currency forward contracts designated as cash flow hedges. During the nine months ended March 31, 2017, the Company discontinued cash flow hedges and recognized a gain from unwinding foreign currency forward contracts of $0.3 million as foreign exchange gain, net in the unaudited condensed consolidated statements of operations and comprehensive income. As of March 31, 2017, the Company had one outstanding foreign currency forward contract with an aggregate notional amount of Canadian dollars 0.5 million, maturing in June 2017. This foreign currency forward contract was not designated for hedge accounting and was used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Canadian dollar. During the nine months ended March 31, 2017, the Company included unrealized loss of $8.0 thousand from changes in the fair value of foreign currency contracts in earnings as foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income.

Trade accounts receivable, net

Trade accounts receivable, net	9 Months Ended
	Mar. 30, 2018
Trade accounts receivable, net	6. Trade accounts receivable, net (amount in thousands) As of March 30, 2018 As of June 30, 2017 Trade accounts receivable $ 244,081 $ 264,389 Less: allowance for doubtful account (84 ) (40 ) Trade accounts receivable, net $ 243,997 $ 264,349 As of June 30, 2017, trade accounts receivable of $3.0 million were secured to short-term loans from bank. During the three months ended September 29, 2017, these loans were fully repaid and the secured trade accounts receivable were released.

Inventory

Inventory	9 Months Ended
	Mar. 30, 2018
Inventory	7. Inventory (amount in thousands) As of March 30, 2018 As of June 30, 2017 Raw materials $ 90,024 $ 88,640 Work in progress 114,348 105,732 Finished goods 24,010 33,998 Goods in transit 13,674 13,025 242,056 241,395 Less: Inventory obsolescence (2,439 ) (2,730 ) Inventory, net $ 239,617 $ 238,665

Business acquisition

Business acquisition	9 Months Ended
	Mar. 30, 2018
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’s control. 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 nine months ended March 30, 2018 and March 31, 2017, the Company recognized a $1.4 million gain and a $0.9 million loss, 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 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 March 30, 2018 and June 30, 2017, the Company included approximately $1.6 million and $1.9 million, respectively, of capital lease assets and $1.2 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 nine months ended March 31, 2017, the Company incurred approximately $1.5 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 nine months ended March 30, 2018, 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	9 Months Ended
	Mar. 30, 2018
Intangibles	9. Intangibles The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated Foreign Net As of March 30, 2018 Software $ 7,532 $ (4,955 ) $ — $ 2,577 Customer relationships 4,373 (1,228 ) 177 3,322 Backlog 119 (92 ) 1 28 Total intangibles $ 12,024 $ (6,275 ) $ 178 $ 5,927 (amount in thousands) Gross Accumulated Foreign 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 $0.5 million and $0.9 million for the three months ended March 30, 2018 and March 31, 2017, respectively, and $1.4 million and $1.1 million for the nine months ended March 30, 2018 and March 31, 2017, respectively. The weighted-average remaining life of customer relationships and backlog are: (years) As of March 30, 2018 As of June 30, 2017 Customer relationships 6.3 6.9 Backlog 1.1 1.6 Based on the carrying amount of intangibles as of March 30, 2018, 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 three months) $ 505 2019 1,675 2020 1,146 2021 993 2022 724 Thereafter 884 Total $ 5,927

Goodwill

Goodwill	9 Months Ended
	Mar. 30, 2018
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 295 Balance as of March 30, 2018 $ 4,101 (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	9 Months Ended
	Mar. 30, 2018
Borrowings	11. Borrowings The Company’s total borrowings, including short-term and long-term borrowings, consisted of the following: (amount in thousands) Rate Conditions Maturity As of March 30, 2018 As of June 30, 2017 Short-term borrowings: Revolving borrowing: LIBOR (1) Repayable in 1 to 6 months April 2018 (2) $ 39,000 $ 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 52,600 48,603 Less: Unamortized debt issuance costs (136 ) (201 ) $ 52,464 $ 48,402 Long-term borrowings Term loan borrowing: LIBOR +1.75% per annum Repayable in quarterly installments May 2019 $ 26,200 $ 36,400 Less: Current portion (13,600 ) (13,600 ) Unamortized debt issuance costs (5 ) (99 ) Non-current $ 12,595 $ 22,701 (1) LIBOR is London Interbank Offered Rate. (2) In March 2018, the maturity date was extended to April 2018. The movements of long-term loans for the nine months ended March 30, 2018 and March 31, 2017 were as follows: Nine Months Ended (amount in thousands) March 30, 2018 March 31, 2017 Opening balance $ 36,400 $ 54,500 Repayments during the period (10,200 ) (14,700 ) Closing balance $ 26,200 $ 39,800 As of March 30, 2018, future maturities of long-term debt during each fiscal year were as follows: (amount in thousands) 2018 (remaining three months) $ 3,400 2019 22,800 Total $ 26,200 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. On July 22, 2016, the Company entered into the Fourth Amendment to the Facility Agreement to change the timing of filing certain financial information with the bank. The Company fully drew down the term loan facility in fiscal year 2016. As of March 30, 2018, $39.0 million of the revolving borrowing and $26.2 million of the term loan borrowing was outstanding under the Facility Agreement, resulting in available credit facilities of $111.0 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 March 2018, 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 April 2018. 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 nine months ended March 30, 2018, the Company included a net loss of $0.04 million 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 March 30, 2018, 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. Undrawn available credit facilities classified by availability period of future borrowing as of March 30, 2018 and June 30, 2017 were as follows: (amount in thousands) March 30, 2018 June 30, 2017 Short-term $ — $ 1,965 Long-term $ 111,000 $ 116,000

Income taxes

Income taxes	9 Months Ended
	Mar. 30, 2018
Income taxes	12. Income taxes As of March 30, 2018 and June 30, 2017, the liability for uncertain tax positions including accrued interest and penalties was $2.2 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 rates for the Company for the three months ended March 30, 2018 and March 31, 2017 were 6.2% and 6.5%, respectively, of net income. The decrease was primarily due to the fact that the Company had higher income not subject to tax during the three months ended March 30, 2018, compared with the three months ended March 31, 2017. The effective tax rates for the Company for the nine months ended March 30, 2018 and March 31, 2017 were 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 nine months ended March 30, 2018, compared with the nine months ended March 31, 2017. On December 22, 2017, the Tax Cuts and Jobs Act (the “TCJ Act”) was enacted into law. The TCJ Act provides for significant changes to the U.S. Internal Revenue Code of 1986, as amended (the “Code”), that impact corporate taxation requirements, such as the reduction of the federal tax rate for corporations from 35% to 21% and changes or limitations to certain tax deductions. The impact of the TCJ Act for the Company was a reduction of the value of deferred tax assets (which represent future tax benefits) of its U.S. subsidiaries as a result of lowering the U.S. corporate income tax rate from 35% to 21%. This reduction of the value of deferred tax assets was fully offset by a reversal of the valuation allowance on the related deferred tax assets. Therefore, there is no impact to the unaudited condensed consolidated financial statements.

Share-based compensation

Share-based compensation	9 Months Ended
	Mar. 30, 2018
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 and nine months ended March 30, 2018 and March 31, 2017 was as follows: Three Months Ended Nine Months Ended (amount in thousands) March 30, March 31, March 30, 2018 March 31, 2017 Share-based compensation expense by type of award: Restricted share units $ 3,904 $ 6,540 $ 13,338 $ 18,993 Performance share units 1,422 1,188 4,366 2,943 Total share-based compensation expense 5,326 7,728 17,704 21,936 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 5,326 $ 7,728 $ 17,704 $ 21,936 Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months ended Nine Months Ended (amount in thousands) March 30, March 31, March 30, March 31, 2017 Cost of revenue $ 1,564 $ 1,657 $ 5,277 $ 4,185 Selling, general and administrative expense 3,762 6,071 12,427 17,751 Total share-based compensation expense $ 5,326 $ 7,728 $ 17,704 $ 21,936 The Company did not capitalize any share-based compensation expense as part of any asset costs during the three and nine months ended March 30, 2018 and March 31, 2017. Share-based award activity Fabrinet maintains the following equity incentive plans: the Amended and Restated 2010 Performance Incentive Plan (the “2010 Plan”) and the 2017 Inducement Equity Incentive Plan (the “2017 Inducement Plan”). On March 12, 2010, Fabrinet’s shareholders adopted the 2010 Plan. On December 20, 2010, December 20, 2012 and December 14, 2017, Fabrinet’s shareholders adopted amendments to the 2010 Plan to increase the number of ordinary shares authorized for issuance under the 2010 Plan by 500,000 shares, 3,700,000 shares and 2,100,000 shares, respectively. As of March 30, 2018, there were an aggregate of 32,326 share options outstanding, 1,050,811 restricted share units outstanding and 508,586 performance share units outstanding under the 2010 Plan. As of March 30, 2018, there were 2,504,131 ordinary shares available for future grant under the 2010 Plan. On November 2, 2017, Fabrinet adopted the 2017 Inducement Plan with a reserve of 160,000 ordinary shares authorized for future issuance solely for the granting of inducement share options and equity awards to new employees. The 2017 Inducement Plan was adopted without shareholder approval in reliance on the “employment inducement exemption” provided under the New York Stock Exchange Listed Company Manual. As of March 30, 2018, there were an aggregate of 48,653 restricted share units outstanding and 97,306 performance share units outstanding under the 2017 Inducement Plan. As of March 30, 2018, there were 14,041 ordinary shares available for future grant under the 2017 Inducement Plan. Share options Share options have been granted to directors and employees. 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 (62,862 ) $ 15.80 Forfeited — — Expired (1,500 ) $ 25.05 Balance as of March 30, 2018 32,326 32,326 $ 15.05 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 (367,641 ) $ 16.02 Forfeited — — Expired (5 ) $ 5.75 Balance as of March 31, 2017 96,688 96,688 $ 15.70 The following summarizes information for share options outstanding as of March 30, 2018 under the 2010 Plan: Range of Exercise Number of Weighted- Aggregate (amount in thousands) $ 14.12 21,638 0.61 $ 15.16 5,138 0.38 $ 18.60 5,550 0.92 Options outstanding 32,326 0.63 $ 528 Options exercisable 32,326 0.63 $ 528 As of March 30, 2018, 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 have been granted under the 2010 Plan and the 2017 Inducement Plan. Restricted share units granted to employees generally vest in equal installments over three or four years on each anniversary of the vesting commencement date. Restricted share units granted to non-employee Performance share units granted to executives will vest, if at all, at the end of a two-year pre-defined The following summarizes restricted share unit activity under the 2010 Plan and the 2017 Inducement Plan: Number of Shares Weighted-Average Per Share Balance as of June 30, 2017 1,058,605 $ 31.59 Granted 474,777 36.04 Issued (337,937 ) 28.01 Forfeited (95,981 ) 33.52 Balance as of March 30, 2018 1,099,464 $ 34.44 Number of Shares Weighted-Average Per Share Balance as of June 24, 2016 1,181,402 $ 18.34 Granted 796,298 39.42 Issued (835,785 ) 21.01 Forfeited (69,726 ) 25.33 Balance as of March 31, 2017 1,072,189 $ 31.57 The following summarizes performance share unit activity under the 2010 Plan and the 2017 Inducement Plan: Number of Shares Weighted- Per Share Balance as of June 30, 2017 227,268 $ 40.48 Granted 378,624 (1) 37.16 Issued — — Forfeited — — Balance as of March 30, 2018 605,892 $ 38.41 Number of Shares Weighted- Per Share Balance as of June 24, 2016 — — Granted 234,678 (1) $ 40.48 Issued — — Forfeited — — Balance as of March 31, 2017 234,678 $ 40.48 (1) This represents the target number of performance share units (“PSUs”) granted. The actual number of PSUs that may be earned, if any, is dependent upon performance and may range from 0% to 100% percent of the target. As of March 30, 2018, there was $15.9 million and $2.6 million of unrecognized share-based compensation expense related to restricted share units and performance share units, respectively, under the 2010 Plan and the 2017 Inducement Plan that are expected to be recorded over a weighted-average period of 2.55 years and 1.03 years, respectively. For the nine months ended March 30, 2018 and March 31, 2017, the Company withheld an aggregate of 101,080 shares and 33,276 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date to settle the employees’ minimum statutory obligation for the applicable income and other employment taxes. For the nine months ended March 30, 2018 and March 31, 2017, the Company then remitted cash of $4.0 million and $1.3 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	9 Months Ended
	Mar. 30, 2018
Shareholders' equity	14. Shareholders’ equity Share capital The Company’s authorized share capital is 500,000,000 ordinary shares, par value of $0.01 per ordinary share, and 5,000,000 preferred shares, par value of $0.01 per preferred share. For the nine months ended March 30, 2018, Fabrinet issued 62,862 ordinary shares upon the exercise of options, for cash consideration at a weighted-average exercise price of $15.80 per share, and 236,857 ordinary shares upon the vesting of restricted share units, net of shares withheld. All such issued shares are fully paid. 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. In February 2018, the Company’s board of directors approved a $30.0 million increase to the share repurchase authorization. During the three and nine months ended March 30, 2018, 422,452 and 738,425 shares, respectively, were repurchased under the program, at an average price per share of $29.58 and $30.34, respectively, totaling $12.5 million and $22.4 million, respectively. As of March 30, 2018, the Company had a remaining authorization to purchase up to an additional $37.6 million worth of its ordinary shares under the share repurchase program.

Accumulated other comprehensive

Accumulated other comprehensive income	9 Months Ended
	Mar. 30, 2018
Accumulated other comprehensive income	15. Accumulated other comprehensive income The changes in AOCI for the nine months ended March 30, 2018 were as follows: (amount in thousands) Unrealized net Losses on Marketable Securities Unrealized Gains (Losses) on Derivative Instruments Foreign Total Balance as of June 30, 2017 $ (72 ) $ 34 $ (310 ) $ (348 ) Other comprehensive (loss) income before reclassification adjustment (361 ) — 1,358 997 Amounts reclassified out of AOCI to foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income (687 ) (1 ) — (688 ) Tax effects — — — — Other comprehensive (loss) income $ (1,048 ) $ (1 ) $ 1,358 $ 309 Balance as of March 30, 2018 $ (1,120 ) $ 33 $ 1,048 $ (39 ) The changes in AOCI for the nine months ended March 31, 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 24, 2016 $ 399 $ 192 $ — $ 591 Other comprehensive income (loss) before reclassification adjustment 75 — (935 ) (860 ) Amounts reclassified out of AOCI to foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income (566 ) (158 ) — (724 ) Tax effects — — — — Other comprehensive loss $ (491 ) $ (158 ) $ (935 ) $ (1,584 ) Balance as of March 31, 2017 $ (92 ) $ 34 $ (935 ) $ (993 )

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Mar. 30, 2018
Commitments and contingencies	16. Commitments and contingencies Bank guarantees As of March 30, 2018 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 Thai baht 50.1 million as of both dates ($1.6 million and $1.5 million, respectively). Operating lease commitments The Company leases a portion of its office, capital equipment, and certain land and buildings for its facilities in the Cayman Islands, China, 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 $1.3 million and $1.2 million for the nine months ended March 30, 2018 and March 31, 2017, respectively. As of March 30, 2018, the future minimum lease payments due under non-cancelable (amount in thousands) 2018 (remaining three months) $ 468 2019 1,319 2020 965 2021 562 2022 448 Thereafter 486 Total minimum operating lease payments $ 4,248 Capital lease commitments In connection with the acquisition of Fabrinet UK, the Company assumed the capital lease commitments of certain machines 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 March 30, 2018, the future minimum lease payments due under non-cancelable (amount in thousands) 2018 (remaining three months) $ 125 2019 484 2020 440 2021 113 Total minimum capital lease payments $ 1,162 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 and the remaining balance of the purchase price was paid by the Company on December 25, 2017. As of March 30, 2018, the Company had an outstanding commitment to third parties of approximately $3.5 million. Indemnification of directors and officers Cayman Islands law does not limit the extent to which a company’s memorandum and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Fabrinet’s amended and restated memorandum and articles of association provide for indemnification of directors and officers for actions, costs, charges, losses, damages and expenses incurred in their capacities as such, except that such indemnification does not extend to any matter in respect of any fraud or dishonesty that may attach to any of them. In accordance with Fabrinet’s form of indemnification agreement for its directors and officers, Fabrinet has agreed to indemnify its directors and officers against certain liabilities and expenses incurred by such persons in connection with claims by reason of their being such a director or officer. Fabrinet maintains a director and officer liability insurance policy that may enable it to recover a portion of any future amounts paid under the indemnification agreements.

Business segments and geographi

Business segments and geographic information	9 Months Ended
	Mar. 30, 2018
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 March 30, 2018, 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 Nine Months Ended (amount in thousands) March 30, March 31, March 30, 2018 March 31, 2017 North America $ 160,926 $ 154,708 $ 470,084 $ 478,700 Asia-Pacific 122,631 149,271 395,848 400,708 Europe 48,656 62,858 160,666 170,628 $ 332,213 $ 366,837 $ 1,026,598 $ 1,050,036 As of March 30, 2018 and March 31, 2017, the Company had approximately $33.7 million and $35.3 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 three customers that each contributed to 10% or more of its total trade accounts receivable as of March 30, 2018 and June 30, 2017.

Expenses related to reduction i

Expenses related to reduction in workforce	9 Months Ended
	Mar. 30, 2018
Expenses related to reduction in workforce	18. Expenses related to reduction in workforce As part of the Company’s ongoing efforts to achieve greater efficiencies in all areas of its business, during the nine months ended March 30, 2018, 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.

Accounting policies (Policies)

Accounting policies (Policies)	9 Months Ended
	Mar. 30, 2018
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of March 30, 2018 and for the three and nine months ended March 30, 2018 and March 31, 2017 include 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 and nine months ended March 30, 2018 may not be indicative of results for the year ending June 29, 2018 or any future periods. 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 November 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-14, No. 33-10403”. No. 33-10403. In September 2017, the FASB issued ASU 2017-13, 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): 2018-03, 825-10), 2016-01 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 February 2018, the FASB issued ASU 2018-02 2018-05, In August 2017, the FASB issued ASU 2017-12, 2016-310—Derivatives 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)	9 Months Ended
	Mar. 30, 2018
Earnings Per Ordinary Share	Earnings per ordinary share was calculated as follows: Three Months Ended Nine Months Ended (amount in thousands except per share amounts) March 30, March 31, March 30, March 31, Net income attributable to shareholders $ 21,053 $ 21,656 $ 61,399 $ 69,714 Weighted-average number of ordinary shares outstanding (thousands of shares) 37,275 37,116 37,400 36,792 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 780 756 725 958 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 38,055 37,872 38,125 37,750 Basic earnings per ordinary share $ 0.56 $ 0.58 $ 1.64 $ 1.89 Diluted earnings per ordinary share $ 0.55 $ 0.57 $ 1.61 $ 1.85

Cash, cash equivalents and ma27

Cash, cash equivalents and marketable securities (Tables)	9 Months Ended
	Mar. 30, 2018
Cash, Cash Equivalents, and Marketable Securities	The Company’s cash, cash equivalents, and marketable securities can be analyzed as follows: Fair Value (amount in thousands) Carrying Cost Unrealized Cash and Marketable As of March 30, 2018 Cash $ 127,279 $ — $ 127,279 $ — Cash equivalents 15,128 — 15,128 — Corporate bonds and commercial papers 125,356 (814 ) — 124,542 U.S. agency and U.S. treasury securities 40,910 (281 ) — 40,629 Sovereign and municipal securities 4,300 (27 ) — 4,273 Total $ 312,973 $ (1,122 ) $ 142,407 $ 169,444 Fair Value (amount in thousands) Carrying Unrealized Cash and Marketable 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 $ 13,181 $ 13,174 Due between one to three years 157,385 156,270 Total $ 170,566 $ 169,444

Fair value of financial instr28

Fair value of financial instruments (Tables)	9 Months Ended
	Mar. 30, 2018
Financial Instruments Measured at Fair Value on Recurring Basis	The following table provides details of the financial instruments measured at fair value on a recurring basis, including: Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of March 30, 2018 Assets Cash equivalents $ — $ 15,128 $ — $ 15,128 Corporate bonds and commercial papers — 124,542 — 124,542 U.S. agency and U.S. treasury securities — 40,629 — 40,629 Sovereign and municipal securities — 4,273 — 4,273 Derivative assets — — — — Total $ — $ 184,572 $ — $ 184,572 Liabilities Derivative liabilities — $ 29 (1) — $ 29 Total $ — $ 29 $ — $ 29 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 (1) Foreign currency forward contracts with notional amount of $14.0 million and Canadian Dollars 0.1 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)	9 Months Ended
	Mar. 30, 2018
Trade Accounts Receivable, Net	(amount in thousands) As of March 30, 2018 As of June 30, 2017 Trade accounts receivable $ 244,081 $ 264,389 Less: allowance for doubtful account (84 ) (40 ) Trade accounts receivable, net $ 243,997 $ 264,349

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Mar. 30, 2018
Inventories	(amount in thousands) As of March 30, 2018 As of June 30, 2017 Raw materials $ 90,024 $ 88,640 Work in progress 114,348 105,732 Finished goods 24,010 33,998 Goods in transit 13,674 13,025 242,056 241,395 Less: Inventory obsolescence (2,439 ) (2,730 ) Inventory, net $ 239,617 $ 238,665

Business acquisition (Tables)

Business acquisition (Tables)	9 Months Ended
	Mar. 30, 2018
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 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)	9 Months Ended
	Mar. 30, 2018
Intangibles	The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated Foreign Net As of March 30, 2018 Software $ 7,532 $ (4,955 ) $ — $ 2,577 Customer relationships 4,373 (1,228 ) 177 3,322 Backlog 119 (92 ) 1 28 Total intangibles $ 12,024 $ (6,275 ) $ 178 $ 5,927 (amount in thousands) Gross Accumulated Foreign 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 March 30, 2018 As of June 30, 2017 Customer relationships 6.3 6.9 Backlog 1.1 1.6
Estimated Future Amortization of intangibles	Based on the carrying amount of intangibles as of March 30, 2018, 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 three months) $ 505 2019 1,675 2020 1,146 2021 993 2022 724 Thereafter 884 Total $ 5,927

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Mar. 30, 2018
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 295 Balance as of March 30, 2018 $ 4,101 (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)	9 Months Ended
	Mar. 30, 2018
Total Borrowings, Including Short-Term and Long-Term Borrowings	The Company’s total borrowings, including short-term and long-term borrowings, consisted of the following: (amount in thousands) Rate Conditions Maturity As of March 30, 2018 As of June 30, 2017 Short-term borrowings: Revolving borrowing: LIBOR (1) Repayable in 1 to 6 months April 2018 (2) $ 39,000 $ 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 52,600 48,603 Less: Unamortized debt issuance costs (136 ) (201 ) $ 52,464 $ 48,402 Long-term borrowings Term loan borrowing: LIBOR +1.75% per annum Repayable in quarterly installments May 2019 $ 26,200 $ 36,400 Less: Current portion (13,600 ) (13,600 ) Unamortized debt issuance costs (5 ) (99 ) Non-current $ 12,595 $ 22,701 (1) LIBOR is London Interbank Offered Rate. (2) In March 2018, the maturity date was extended to April 2018.
Movements of Long-Term Loans	The movements of long-term loans for the nine months ended March 30, 2018 and March 31, 2017 were as follows: Nine Months Ended (amount in thousands) March 30, 2018 March 31, 2017 Opening balance $ 36,400 $ 54,500 Repayments during the period (10,200 ) (14,700 ) Closing balance $ 26,200 $ 39,800
Future Maturities of Long-Term Debt	As of March 30, 2018, future maturities of long-term debt during each fiscal year were as follows: (amount in thousands) 2018 (remaining three months) $ 3,400 2019 22,800 Total $ 26,200
Undrawn Available Credit Facilities Classified by Availability Period of Future Borrowing	Undrawn available credit facilities classified by availability period of future borrowing as of March 30, 2018 and June 30, 2017 were as follows: (amount in thousands) March 30, 2018 June 30, 2017 Short-term $ — $ 1,965 Long-term $ 111,000 $ 116,000

Share-based compensation (Table

Share-based compensation (Tables)	9 Months Ended
	Mar. 30, 2018
Effect of Recording Share-Based Compensation Expense	The effect of recording share-based compensation expense for the three and nine months ended March 30, 2018 and March 31, 2017 was as follows: Three Months Ended Nine Months Ended (amount in thousands) March 30, March 31, March 30, 2018 March 31, 2017 Share-based compensation expense by type of award: Restricted share units $ 3,904 $ 6,540 $ 13,338 $ 18,993 Performance share units 1,422 1,188 4,366 2,943 Total share-based compensation expense 5,326 7,728 17,704 21,936 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 5,326 $ 7,728 $ 17,704 $ 21,936
Share-Based Compensation Expense Recorded in Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income	Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months ended Nine Months Ended (amount in thousands) March 30, March 31, March 30, March 31, 2017 Cost of revenue $ 1,564 $ 1,657 $ 5,277 $ 4,185 Selling, general and administrative expense 3,762 6,071 12,427 17,751 Total share-based compensation expense $ 5,326 $ 7,728 $ 17,704 $ 21,936
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 (62,862 ) $ 15.80 Forfeited — — Expired (1,500 ) $ 25.05 Balance as of March 30, 2018 32,326 32,326 $ 15.05 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 (367,641 ) $ 16.02 Forfeited — — Expired (5 ) $ 5.75 Balance as of March 31, 2017 96,688 96,688 $ 15.70
Information for Share Options Outstanding	The following summarizes information for share options outstanding as of March 30, 2018 under the 2010 Plan: Range of Exercise Number of Weighted- Aggregate (amount in thousands) $ 14.12 21,638 0.61 $ 15.16 5,138 0.38 $ 18.60 5,550 0.92 Options outstanding 32,326 0.63 $ 528 Options exercisable 32,326 0.63 $ 528
Restricted Share Unit Activity	The following summarizes restricted share unit activity under the 2010 Plan and the 2017 Inducement Plan: Number of Shares Weighted-Average Per Share Balance as of June 30, 2017 1,058,605 $ 31.59 Granted 474,777 36.04 Issued (337,937 ) 28.01 Forfeited (95,981 ) 33.52 Balance as of March 30, 2018 1,099,464 $ 34.44 Number of Shares Weighted-Average Per Share Balance as of June 24, 2016 1,181,402 $ 18.34 Granted 796,298 39.42 Issued (835,785 ) 21.01 Forfeited (69,726 ) 25.33 Balance as of March 31, 2017 1,072,189 $ 31.57
Performance Share Unit Activity	The following summarizes performance share unit activity under the 2010 Plan and the 2017 Inducement Plan: Number of Shares Weighted- Per Share Balance as of June 30, 2017 227,268 $ 40.48 Granted 378,624 (1) 37.16 Issued — — Forfeited — — Balance as of March 30, 2018 605,892 $ 38.41 Number of Shares Weighted- Per Share Balance as of June 24, 2016 — — Granted 234,678 (1) $ 40.48 Issued — — Forfeited — — Balance as of March 31, 2017 234,678 $ 40.48 (1) This represents the target number of performance share units (“PSUs”) granted. The actual number of PSUs that may be earned, if any, is dependent upon performance and may range from 0% to 100% percent of the target.

Accumulated other comprehensi36

Accumulated other comprehensive income (Tables)	9 Months Ended
	Mar. 30, 2018
Changes in AOCI, Net of Tax	The changes in AOCI for the nine months ended March 30, 2018 were as follows: (amount in thousands) Unrealized net Losses on Marketable Securities Unrealized Gains (Losses) on Derivative Instruments Foreign Total Balance as of June 30, 2017 $ (72 ) $ 34 $ (310 ) $ (348 ) Other comprehensive (loss) income before reclassification adjustment (361 ) — 1,358 997 Amounts reclassified out of AOCI to foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income (687 ) (1 ) — (688 ) Tax effects — — — — Other comprehensive (loss) income $ (1,048 ) $ (1 ) $ 1,358 $ 309 Balance as of March 30, 2018 $ (1,120 ) $ 33 $ 1,048 $ (39 ) The changes in AOCI for the nine months ended March 31, 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 24, 2016 $ 399 $ 192 $ — $ 591 Other comprehensive income (loss) before reclassification adjustment 75 — (935 ) (860 ) Amounts reclassified out of AOCI to foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income (566 ) (158 ) — (724 ) Tax effects — — — — Other comprehensive loss $ (491 ) $ (158 ) $ (935 ) $ (1,584 ) Balance as of March 31, 2017 $ (92 ) $ 34 $ (935 ) $ (993 )

Commitments and contingencies (

Commitments and contingencies (Tables)	9 Months Ended
	Mar. 30, 2018
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases	As of March 30, 2018, the future minimum lease payments due under non-cancelable (amount in thousands) 2018 (remaining three months) $ 468 2019 1,319 2020 965 2021 562 2022 448 Thereafter 486 Total minimum operating lease payments $ 4,248
Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases	As of March 30, 2018, the future minimum lease payments due under non-cancelable (amount in thousands) 2018 (remaining three months) $ 125 2019 484 2020 440 2021 113 Total minimum capital lease payments $ 1,162

Business segments and geograp38

Business segments and geographic information (Tables)	9 Months Ended
	Mar. 30, 2018
Total Revenues by Geographic Regions	The following table presents total revenues by geographic regions: Three Months Ended Nine Months Ended (amount in thousands) March 30, March 31, March 30, 2018 March 31, 2017 North America $ 160,926 $ 154,708 $ 470,084 $ 478,700 Asia-Pacific 122,631 149,271 395,848 400,708 Europe 48,656 62,858 160,666 170,628 $ 332,213 $ 366,837 $ 1,026,598 $ 1,050,036

Accounting Policies - Additiona

Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 30, 2018	Jun. 30, 2017	Mar. 31, 2017	Sep. 14, 2016
Accounting Policies [Line Items]
Restricted cash in connection with business acquisition	$ 3,569	$ 3,312	$ 3,175
Global CEM Solutions, Ltd.
Accounting Policies [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired				100.00%
Restricted cash in connection with business acquisition	$ 3,600			$ 3,400

Earnings Per Ordinary Share (De

Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017	Mar. 30, 2018	Mar. 31, 2017
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income attributable to shareholders	$ 21,053	$ 21,656	$ 61,399	$ 69,714
Weighted-average number of ordinary shares outstanding (thousands of shares)	37,275	37,116	37,400	36,792
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares)	780	756	725	958
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)	38,055	37,872	38,125	37,750
Basic earnings per ordinary share	$ 0.56	$ 0.58	$ 1.64	$ 1.89
Diluted earnings per ordinary share	$ 0.55	$ 0.57	$ 1.61	$ 1.85

Earnings Per Ordinary Share - A

Earnings Per Ordinary Share - Additional Information (Detail) - shares	9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017
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	Mar. 30, 2018	Jun. 30, 2017	Mar. 31, 2017
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents and Marketable securities, Carrying Cost	$ 312,973	$ 285,347
Marketable securities, Unrealized Gain/(Loss)	(1,122)	(72)
Cash and cash equivalents	142,407	133,825	$ 136,634
Marketable securities	169,444	151,450
Cash
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	127,279	131,240
Cash and cash equivalents	127,279	131,240
Cash Equivalents
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	15,128	2,585
Cash and cash equivalents	15,128	2,585
Corporate bonds and commercial papers
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	125,356	98,247
Marketable securities, Unrealized Gain/(Loss)	(814)	27
Marketable securities	124,542	98,274
U.S. agency and U.S. treasury securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	40,910	50,768
Marketable securities, Unrealized Gain/(Loss)	(281)	(102)
Marketable securities	40,629	50,666
Sovereign And Municipal Securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	4,300	2,507
Marketable securities, Unrealized Gain/(Loss)	(27)	3
Marketable securities	$ 4,273	$ 2,510

Cash, Cash Equivalents and Ma43

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail)	9 Months Ended
	Mar. 30, 2018USD ($)
Cash, cash equivalents and marketable securities [Line Items]
(Loss) from sales and maturities of available-for-sale securities	$ (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	Mar. 30, 2018	Jun. 30, 2017
Investments Classified by Contractual Maturity Date [Line Items]
Total	$ 169,444	$ 151,450
Carrying Cost
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	13,181
Due between one to three years	157,385
Total	170,566
Fair Value
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	13,174
Due between one to three years	156,270
Total	$ 169,444

Financial Instruments Measured

Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands		Mar. 30, 2018	Jun. 30, 2017
Assets
Derivative assets			$ 15
Total		$ 184,572	154,050
Liabilities
Derivative liabilities		29
Total		29
Cash Equivalents
Assets
Marketable securities		15,128	2,585
Corporate bonds and commercial papers
Assets
Marketable securities		124,542	98,274
U.S. agency and U.S. treasury securities
Assets
Marketable securities		40,629	50,666
Sovereign And Municipal Securities
Assets
Marketable securities		4,273	2,510
Significant Other Observable Inputs (Level 2)
Assets
Derivative assets	[1]		15
Total		184,572	154,050
Liabilities
Derivative liabilities	[2]	29
Total		29
Significant Other Observable Inputs (Level 2) | Cash Equivalents
Assets
Marketable securities		15,128	2,585
Significant Other Observable Inputs (Level 2) | Corporate bonds and commercial papers
Assets
Marketable securities		124,542	98,274
Significant Other Observable Inputs (Level 2) | U.S. agency and U.S. treasury securities
Assets
Marketable securities		40,629	50,666
Significant Other Observable Inputs (Level 2) | Sovereign And Municipal Securities
Assets
Marketable securities		$ 4,273	$ 2,510
[1]	Foreign currency forward contracts with notional amount of $1.0 million and Canadian Dollars 0.6 million.
[2]	Foreign currency forward contracts with notional amount of $14.0 million and Canadian Dollars 0.1 million.

Financial Instruments Measure46

Financial Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) $ in Millions, $ in Millions	Mar. 30, 2018USD ($)	Mar. 30, 2018CAD ($)	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	$ 14	$ 0.1	$ 1	$ 0.6

Fair Value of Financial Instr47

Fair Value of Financial Instruments - Additional Information (Detail)	9 Months Ended
	Mar. 30, 2018USD ($)Contract	Mar. 31, 2017USD ($)	Mar. 30, 2018CAD ($)Contract	Jun. 30, 2017USD ($)	Mar. 31, 2017CAD ($)Contract
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized loss on derivatives	$ (1,393,000)	$ 718,000
Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative liabilities	$ 30,000
Derivative assets				$ 20,000
Foreign currency forward contracts | Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding | Contract	6		6		1
Derivative notional amount	$ 14,000,000		$ 100,000		$ 500,000
Derivative maturity period		2017-06
Unrealized loss on derivatives	$ (30,000)	$ (8,000)
Foreign currency forward contracts | Non designated | Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2018-04
Foreign currency forward contracts | Non designated | Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2018-06
Foreign currency forward contracts | Cash Flow Hedging
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding | Contract					0
Gain recognized from discontinued cash flow hedges		$ 300,000

Trade Accounts Receivable, Ne48

Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	Mar. 30, 2018	Jun. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 244,081	$ 264,389
Less: allowance for doubtful account	(84)	(40)
Trade accounts receivable, net	$ 243,997	$ 264,349

Trade Accounts Receivable, Ne49

Trade Accounts Receivable, Net - Additional Information (Detail) $ in Millions	Jun. 30, 2017USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable secured to short-term loans from bank	$ 3

Inventory (Detail)

Inventory (Detail) - USD ($) $ in Thousands	Mar. 30, 2018	Jun. 30, 2017
Inventory [Line Items]
Raw materials	$ 90,024	$ 88,640
Work in progress	114,348	105,732
Finished goods	24,010	33,998
Goods in transit	13,674	13,025
Inventory, Gross, Total	242,056	241,395
Less: Inventory obsolescence	(2,439)	(2,730)
Inventory, net	$ 239,617	$ 238,665

Business Acquisition - Addition

Business Acquisition - Additional Information (Detail) - USD ($)	Sep. 14, 2016	Mar. 30, 2018	Mar. 31, 2017	Mar. 30, 2018	Mar. 31, 2017	Jun. 30, 2017
Business Acquisition [Line Items]
Total cash consideration, net of cash acquired					$ 9,917,000
Restricted cash in connection with business acquisition		$ 3,569,000	$ 3,175,000	$ 3,569,000	3,175,000	$ 3,312,000
Foreign currency translation adjustment gain (loss)		789,000	$ 227,000	1,358,000	(935,000)
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	3,600,000		3,600,000
Foreign currency translation adjustment gain (loss)				1,400,000	(900,000)
Capital lease assets		1,600,000		1,600,000		1,900,000
Capital lease liability		$ 1,200,000		1,200,000		$ 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					$ 1,500,000

Allocation of Total Purchase Pr

Allocation of Total Purchase Price (Detail) - USD ($) $ in Thousands	Sep. 14, 2016	Mar. 31, 2017	Mar. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Goodwill			$ 4,101	$ 3,806
Total purchase price, net of cash acquired		$ 9,917
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	9 Months Ended	12 Months Ended
	Mar. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 12,024	$ 10,436
Accumulated Amortization	(6,275)	(4,507)
Foreign Currency Translation Adjustment	178	(89)
Net	5,927	5,840
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	7,532	5,944
Accumulated Amortization	(4,955)	(3,850)
Net	2,577	2,094
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,373	4,373
Accumulated Amortization	(1,228)	(606)
Foreign Currency Translation Adjustment	177	(88)
Net	3,322	3,679
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	119	119
Accumulated Amortization	(92)	(51)
Foreign Currency Translation Adjustment	1	(1)
Net	$ 28	$ 67

Intangibles - Additional Inform

Intangibles - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017	Mar. 30, 2018	Mar. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to intangibles	$ 0.5	$ 0.9	$ 1.4	$ 1.1

Weighted-Average Remaining Life

Weighted-Average Remaining Life of Intangible Assets (Detail) - Global CEM Solutions, Ltd.	9 Months Ended	12 Months Ended
	Mar. 30, 2018	Jun. 30, 2017
Customer relationships
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	6 years 3 months 19 days	6 years 10 months 25 days
Backlog
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	1 year 1 month 6 days	1 year 7 months 6 days

Estimated Future Amortization o

Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands	Mar. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
2018 (remaining three months)	$ 505
2,019	1,675
2,020	1,146
2,021	993
2,022	724
Thereafter	884
Total	$ 5,927	$ 5,840

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill from Acquisition (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 30, 2018	Jun. 30, 2017
Goodwill [Line Items]
Beginning Balance	$ 3,806
Addition in connection with business acquisition		$ 3,883
Foreign currency translation adjustment	295	(77)
Ending Balance	$ 4,101	$ 3,806

Total Borrowings, Including Sho

Total Borrowings, Including Short-Term and Long-Term Borrowings (Detail) - USD ($) $ in Thousands		9 Months Ended
		Mar. 30, 2018	Jun. 30, 2017	Mar. 31, 2017	Jun. 24, 2016
Debt Instrument [Line Items]
Revolving borrowing		$ 39,000	$ 34,000
Short-term loans from bank			1,003
Current portion of long-term borrowing		13,600	13,600
Bank borrowings, gross		52,600	48,603
Less: Unamortized debt issuance costs		(136)	(201)
Bank borrowings, net of unamortized debt issuance costs		52,464	48,402
Long-term borrowing		26,200	36,400	$ 39,800	$ 54,500
Unamortized debt issuance costs		(5)	(99)
Non-current portion		$ 12,595	22,701
Short-term loans from bank
Debt Instrument [Line Items]
Rate		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]	2018-04
Revolving borrowing		$ 39,000
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		LIBOR +1.75% per annum
Conditions		Repayable in quarterly installments
Term		2019-05
Long-term borrowing		$ 26,200	$ 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 March 2018, the maturity date was extended to April 2018.

Total Borrowings, Including S59

Total Borrowings, Including Short-Term and Long-Term Borrowings (Parenthetical) (Detail)	1 Months Ended
	Mar. 30, 2018
Debt Instrument [Line Items]
Extended maturity date	2018-04

Movements of Long-Term Loans (D

Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017
Debt Instrument [Line Items]
Opening balance	$ 36,400	$ 54,500
Repayments during the period	(10,200)	(14,700)
Closing balance	$ 26,200	$ 39,800

Future Maturities of Long-Term

Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 30, 2018	Jun. 30, 2017	Mar. 31, 2017	Jun. 24, 2016
Debt Instrument [Line Items]
2018 (remaining three months)	$ 3,400
2,019	22,800
Total	$ 26,200	$ 36,400	$ 39,800	$ 54,500

Borrowings - Additional Informa

Borrowings - Additional Information (Detail) - USD ($)	Jul. 24, 2017	Mar. 30, 2018	Mar. 30, 2018	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		39,000,000	39,000,000	$ 34,000,000
Undrawn available credit facilities for long-term borrowing		$ 111,000,000	111,000,000
Extended maturity date		2018-04
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			$ 40,000
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		$ 39,000,000	$ 39,000,000
Extended maturity date		2018-04
Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Repayment duration			1 month
Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Repayment duration			6 months
Revolving Credit Facility | LIBOR
Line of Credit Facility [Line Items]
Credit line interest rate, percentage			1.75%
Term Loan Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity		$ 50,000,000	$ 50,000,000
Line of credit expiration date			May 22, 2019
Line of credit facility amounts outstanding		$ 26,200,000	$ 26,200,000

Undrawn Available Credit Facili

Undrawn Available Credit Facilities Classified by Availability Period of Future Borrowing (Detail) - USD ($) $ in Thousands	Mar. 30, 2018	Jun. 30, 2017
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 111,000
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	$ 111,000	$ 116,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 30, 2018	Mar. 31, 2017	Mar. 30, 2018	Mar. 31, 2017	Jun. 30, 2017
Income Taxes [Line Items]
Liability for uncertain tax positions including accrued interest and penalties	$ 2.2		$ 2.2		$ 2
Corporate effective income tax rate	6.20%	6.50%	6.30%	6.70%
Corporate income tax rate			21.00%		35.00%
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		9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017	Mar. 30, 2018	Mar. 31, 2017
Share-based compensation expense by type of award:
Restricted share units	$ 3,904	$ 6,540	$ 13,338	$ 18,993
Performance share units	1,422	1,188	4,366	2,943
Total share-based compensation expense	5,326	7,728	17,704	21,936
Tax effect on share-based compensation expense	0	0	0	0
Net effect on share-based compensation expense	$ 5,326	$ 7,728	$ 17,704	$ 21,936

Share-Based Compensation Expens

Share-Based Compensation Expense Recorded in Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017	Mar. 30, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 5,326	$ 7,728	$ 17,704	$ 21,936
Cost of Revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,564	1,657	5,277	4,185
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 3,762	$ 6,071	$ 12,427	$ 17,751

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($)	Dec. 14, 2017	Dec. 20, 2012	Dec. 20, 2010	Mar. 30, 2018	Mar. 30, 2018	Mar. 31, 2017	Nov. 02, 2017
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					101,080	33,276
Tax withholdings related to net share settlement of restricted share units					$ 4,030,000	$ 1,272,000
Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of additional shares authorized	2,100,000	3,700,000	500,000
Share options outstanding				32,326	32,326
Ordinary shares available for future grant				2,504,131	2,504,131
Stock Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares available for future grant				14,041	14,041
Shares authorized for future issuance							160,000
Performance Share Units | Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding				508,586	508,586
Performance Share Units | Stock Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding				97,306	97,306
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	$ 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				1,050,811	1,050,811
Unrecognized share-based compensation expense				$ 15,900,000	$ 15,900,000
Unrecognized compensation expense, weighted-average period for recognition					2 years 6 months 18 days
Restricted Share Units | Stock Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding				48,653	48,653
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 | 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 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense				$ 2,600,000	$ 2,600,000
Unrecognized compensation expense, weighted-average period for recognition					1 year 11 days

Share Option Activity (Detail)

Share Option Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares	9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017	Jun. 30, 2017	Jun. 24, 2016
Number of shares
Beginning balance	96,688	464,334
Granted	0	0
Exercised	(62,862)	(367,641)
Forfeited	0	0
Expired	(1,500)	(5)
Ending balance	32,326	96,688
Number of Exercisable Options
Number of Exercisable Options	32,326	96,688	96,688	464,334
Weighted-Average Exercise Price per share
Beginning balance	$ 15.70	$ 15.95
Granted	0	0
Exercised	15.80	16.02
Forfeited	0	0
Expired	25.05	5.75
Ending balance	15.05	15.70
Weighted-Average Grant Date Fair Value Per Share
Granted	$ 0	$ 0

Information for Share Options O

Information for Share Options Outstanding (Detail) $ / shares in Units, $ in Thousands	9 Months Ended
	Mar. 30, 2018USD ($)$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	32,326
Options outstanding, weighted average remaining contractual life (years)	7 months 17 days
Options outstanding, aggregate intrinsic value | $	$ 528
Range of Exercise Price 1
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price | $ / shares	$ 14.12
Number of Shares Underlying Options, outstanding	21,638
Options outstanding, weighted average remaining contractual life (years)	7 months 10 days
Range of Exercise Price 2
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Price | $ / shares	$ 15.16
Number of Shares Underlying Options, outstanding	5,138
Options outstanding, weighted average remaining contractual life (years)	4 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 | $ / shares	$ 18.60
Number of Shares Underlying Options, outstanding	5,550
Options outstanding, weighted average remaining contractual life (years)	11 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	32,326
Options exercisable, weighted average remaining contractual life (years)	7 months 17 days
Options exercisable, aggregate intrinsic value | $	$ 528

Restricted Share Unit Activity

Restricted Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Restricted Share Units - $ / shares	9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017
Number of restricted share units
Number of share units, Beginning Balance	1,058,605	1,181,402
Number of share units, Granted	474,777	796,298
Number of share units, Issued	(337,937)	(835,785)
Number of share units, Forfeited	(95,981)	(69,726)
Number of share units, Ending Balance	1,099,464	1,072,189
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	36.04	39.42
Weighted-average grant date fair value per share, Issued	28.01	21.01
Weighted-average grant date fair value per share, Forfeited	33.52	25.33
Weighted-average grant date fair value per share, Ending Balance	$ 34.44	$ 31.57

Performance Share Unit Activity

Performance Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Performance Share Units - $ / shares		9 Months Ended
		Mar. 30, 2018	Mar. 31, 2017
Number of performance share units
Number of share units, Beginning Balance		227,268
Number of share units, Granted	[1]	378,624	234,678
Number of share units, Issued		0	0
Number of share units, Forfeited		0	0
Number of share units, Ending Balance		605,892	234,678
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		37.16	$ 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		$ 38.41	$ 40.48
[1]	This represents the target number of performance share units ("PSUs") granted. The actual number of PSUs that may be earned, if any, is dependent upon performance and may range from 0% to 100% percent of the target.

Performance Share Unit Activi72

Performance Share Unit Activity (Parenthetical) (Detail) - Performance Share Units - Stock Plan 2010 and 2017	9 Months Ended
	Mar. 30, 2018
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	100.00%

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Mar. 30, 2018	Mar. 30, 2018	Mar. 31, 2017	Feb. 28, 2018	Aug. 31, 2017	Jun. 30, 2017
Shareholders Equity [Line Items]
Ordinary shares, authorized share capital	500,000,000	500,000,000				500,000,000
Ordinary shares, par value	$ 0.01	$ 0.01				$ 0.01
Preferred shares, shares authorized	5,000,000	5,000,000				5,000,000
Preferred shares, par value	$ 0.01	$ 0.01				$ 0.01
Share repurchase program, approved amount				$ 30	$ 30
Number of shares repurchased	422,452	738,425
Treasury stock acquired, average cost per share	$ 29.58	$ 30.34
Treasury stock, retired, cost method, amount	$ 12.5	$ 22.4
Share repurchase program, remaining authorization to purchase	$ 37.6	$ 37.6
Stock Plan Nineteen Ninety Nine and Twenty Ten
Shareholders Equity [Line Items]
Ordinary shares issued upon exercise of options		62,862	367,641
Ordinary shares issued upon exercise of options, weighted average exercise price		$ 15.80	$ 16.02
Ordinary shares issued upon vesting of restricted shares		236,857

Changes in AOCI, Net of Tax (De

Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017	Mar. 30, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ 681,574
Other comprehensive (loss) income before reclassification adjustment			997	$ (860)
Amounts reclassified out of AOCI to foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income			(688)	(724)
Tax effects			0	0
Total other comprehensive income (loss), net of tax	$ 173	$ 276	309	(1,584)
Ending Balance	735,543		735,543
Unrealized Net (Losses) Gains on Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(72)	399
Other comprehensive (loss) income before reclassification adjustment			(361)	75
Amounts reclassified out of AOCI to foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income			(687)	(566)
Tax effects			0	0
Total other comprehensive income (loss), net of tax			(1,048)	(491)
Ending Balance	(1,120)	(92)	(1,120)	(92)
Unrealized Net Gains (Losses) on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			34	192
Amounts reclassified out of AOCI to foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income			(1)	(158)
Tax effects			0	0
Total other comprehensive income (loss), net of tax			(1)	(158)
Ending Balance	33	34	33	34
Foreign Currency Translation Adjustment (Losses) Gains
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(310)
Other comprehensive (loss) income before reclassification adjustment			1,358	(935)
Tax effects			0	0
Total other comprehensive income (loss), net of tax			1,358	(935)
Ending Balance	1,048	(935)	1,048	(935)
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(348)	591
Tax effects			0	0
Ending Balance	$ (39)	$ (993)	$ (39)	$ (993)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) ฿ in Millions, $ in Millions	Jan. 10, 2017USD ($)	Mar. 30, 2018USD ($)	Mar. 31, 2017USD ($)	Mar. 30, 2018THB (฿)	Jun. 30, 2017USD ($)	Jun. 30, 2017THB (฿)	Dec. 23, 2016USD ($)
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of the company		$ 1.6		฿ 50.1	$ 1.5	฿ 50.1
Rental expense under operating leases		1.3	$ 1.2
Thailand
Commitments and Contingencies Disclosure [Line Items]
Purchase of land							$ 5.6
Payment to purchase of land	$ 1.1
Outstanding commitment to third parties		$ 3.5
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	Mar. 30, 2018USD ($)
Operating Leased Assets [Line Items]
2018 (remaining three months)	$ 468
2,019	1,319
2,020	965
2,021	562
2,022	448
Thereafter	486
Total minimum operating lease payments	$ 4,248

Future Minimum Lease Payments77

Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases (Detail) $ in Thousands	Mar. 30, 2018USD ($)
Capital Leased Assets [Line Items]
2018 (remaining three months)	$ 125
2,019	484
2,020	440
2,021	113
Total minimum capital lease payments	$ 1,162

Business Segments and Geograp78

Business Segments and Geographic Information - Additional Information (Detail) $ in Millions	9 Months Ended
	Mar. 30, 2018USD ($)CustomerSegment	Jun. 30, 2017Customer	Mar. 31, 2017USD ($)
Segment Reporting Information [Line Items]
Number of operating segment | Segment	1
Number of customers that contributed more than 10% of trade accounts receivable | Customer	3	3
North America
Segment Reporting Information [Line Items]
Long-lived assets | $	$ 33.7		$ 35.3

Total Revenues by Geographic Re

Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 30, 2018	Mar. 31, 2017	Mar. 30, 2018	Mar. 31, 2017
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 332,213	$ 366,837	$ 1,026,598	$ 1,050,036
North America
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	160,926	154,708	470,084	478,700
Asia-Pacific
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	122,631	149,271	395,848	400,708
Europe
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 48,656	$ 62,858	$ 160,666	$ 170,628

Expenses Related to Reduction80

Expenses Related to Reduction in Workforce - Additional Information (Detail) $ in Millions	9 Months Ended
	Mar. 30, 2018USD ($)Employee
Expenses incurred for severance cost and benefits | $	$ 1.7
Number of terminated of employees | Employee	204