Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 29, 2018 | Aug. 13, 2018 | Dec. 29, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 29, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FN | ||
Entity Registrant Name | FABRINET | ||
Entity Central Index Key | 1,408,710 | ||
Current Fiscal Year End Date | --06-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 36,454,146 | ||
Entity Public Float | $ 1.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 158,102 | $ 133,825 |
Restricted cash in connection with business acquisition | 3,331 | |
Marketable securities | 174,269 | 151,450 |
Trade accounts receivable, net | 246,912 | 264,349 |
Inventory, net | 257,687 | 238,665 |
Prepaid expenses | 8,061 | 6,306 |
Other current assets | 5,948 | 4,159 |
Total current assets | 854,310 | 798,754 |
Non-current assets | ||
Restricted cash in connection with business acquisition | 3,312 | |
Property, plant and equipment, net | 219,640 | 216,881 |
Intangibles, net | 4,880 | 5,840 |
Goodwill | 3,828 | 3,806 |
Deferred tax assets | 5,280 | 2,905 |
Other non-current assets | 80 | 1,577 |
Total non-current assets | 233,708 | 234,321 |
Total Assets | 1,088,018 | 1,033,075 |
Current liabilities | ||
Bank borrowings, net of unamortized debt issuance costs | 3,250 | 48,402 |
Trade accounts payable | 220,159 | 215,262 |
Capital lease liability, current portion | 451 | 344 |
Income tax payable | 709 | 1,976 |
Deferred liability in connection with business acquisition | 3,331 | |
Accrued payroll, bonus and related expenses | 13,476 | 13,852 |
Accrued expenses | 9,013 | 9,227 |
Other payables | 19,728 | 22,209 |
Total current liabilities | 270,117 | 311,272 |
Non-current liabilities | ||
Long-term loan from bank, net of unamortized debt issuance costs | 60,938 | 22,701 |
Deferred tax liability | 2,284 | 1,981 |
Capital lease liability, non-current portion | 516 | 1,024 |
Deferred liability in connection with business acquisition | 3,312 | |
Severance liabilities | 10,162 | 8,488 |
Other non-current liabilities | 3,062 | 2,723 |
Total non-current liabilities | 76,962 | 40,229 |
Total Liabilities | 347,079 | 351,501 |
Commitments and contingencies (Note 19) | ||
Shareholders' equity | ||
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of June 29, 2018 and June 30, 2017) | ||
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 37,723,733 shares and 37,340,496 shares issued; and 36,434,630 shares and 37,340,496 shares outstanding as of June 29, 2018 and June 30, 2017, respectively) | 377 | 373 |
Additional paid-in capital | 151,797 | 133,293 |
Less: Treasury shares (1,289,103 shares and zero shares as of June 29, 2018 and June 30, 2017, respectively) | (42,401) | |
Accumulated other comprehensive loss | (1,257) | (348) |
Retained earnings | 632,423 | 548,256 |
Total Shareholders' Equity | 740,939 | 681,574 |
Total Liabilities and Shareholders' Equity | $ 1,088,018 | $ 1,033,075 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 29, 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 | 37,723,733 | 37,340,496 |
Ordinary shares, shares outstanding | 36,434,630 | 37,340,496 |
Treasury stocks, shares | 1,289,103 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Revenues | $ 1,371,925 | $ 1,420,490 | $ 976,747 |
Cost of revenues | (1,218,513) | (1,249,030) | (857,224) |
Gross profit | 153,412 | 171,460 | 119,523 |
Selling, general and administrative expenses | (57,812) | (65,626) | (49,753) |
Other income related to flooding, net | 36 | ||
Expenses related to reduction in workforce | (1,776) | ||
Operating income | 93,824 | 105,834 | 69,806 |
Interest income | 3,925 | 1,977 | 1,535 |
Interest expense | (3,606) | (3,321) | (1,569) |
Foreign exchange loss, net | (6,587) | (1,142) | (1,916) |
Other income, net | 473 | 509 | 376 |
Income before income taxes | 88,029 | 103,857 | 68,232 |
Income tax expense | (3,862) | (6,742) | (6,335) |
Net income | 84,167 | 97,115 | 61,897 |
Other comprehensive (loss) income, net of tax: | |||
Change in net unrealized (loss) gain on marketable securities | (1,019) | (471) | 443 |
Change in net unrealized (loss) gain on derivative instruments | (1) | (158) | 192 |
Change in foreign currency translation adjustment | 111 | (310) | |
Total other comprehensive (loss) income, net of tax | (909) | (939) | 635 |
Net comprehensive income | $ 83,258 | $ 96,176 | $ 62,532 |
Earnings per share | |||
Basic | $ 2.26 | $ 2.63 | $ 1.73 |
Diluted | $ 2.21 | $ 2.57 | $ 1.68 |
Weighted average number of ordinary shares outstanding (thousands of shares) | |||
Basic | 37,257 | 36,927 | 35,857 |
Diluted | 38,035 | 37,852 | 36,872 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning Balance (in shares) at Jun. 26, 2015 | 35,437,654 | |||||
Beginning Balance at Jun. 26, 2015 | $ 478,944 | $ 354 | $ 89,390 | $ (44) | $ 389,244 | |
Net income | 61,897 | 61,897 | ||||
Other comprehensive income (loss) | 635 | 635 | ||||
Share-based compensation expense | 9,927 | 9,927 | ||||
Issuance of ordinary shares (in shares) | 718,792 | |||||
Issuance of ordinary shares | 5,479 | $ 8 | 5,471 | |||
Tax withholdings related to net share settlement of restricted share units | (2,463) | (2,463) | ||||
Ending Balance (in shares) at Jun. 24, 2016 | 36,156,446 | |||||
Ending Balance at Jun. 24, 2016 | 554,419 | $ 362 | 102,325 | 591 | 451,141 | |
Net income | 97,115 | 97,115 | ||||
Other comprehensive income (loss) | (939) | (939) | ||||
Share-based compensation expense | 26,507 | 26,507 | ||||
Issuance of ordinary shares (in shares) | 1,184,050 | |||||
Issuance of ordinary shares | 5,897 | $ 11 | 5,886 | |||
Tax withholdings related to net share settlement of restricted share units | (1,425) | (1,425) | ||||
Ending Balance (in shares) at Jun. 30, 2017 | 37,340,496 | |||||
Ending Balance at Jun. 30, 2017 | 681,574 | $ 373 | 133,293 | (348) | 548,256 | |
Net income | 84,167 | 84,167 | ||||
Other comprehensive income (loss) | (909) | (909) | ||||
Share-based compensation expense | 22,581 | 22,581 | ||||
Issuance of ordinary shares (in shares) | 383,237 | |||||
Issuance of ordinary shares | 1,436 | $ 4 | 1,432 | |||
Repurchase of treasury shares | (42,401) | $ (42,401) | ||||
Tax withholdings related to net share settlement of restricted share units | (5,509) | (5,509) | ||||
Ending Balance (in shares) at Jun. 29, 2018 | 37,723,733 | |||||
Ending Balance at Jun. 29, 2018 | $ 740,939 | $ 377 | $ 151,797 | $ (42,401) | $ (1,257) | $ 632,423 |
CONSOLIDATED STATEMENTS OF SHA6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Jun. 29, 2018shares | |
Treasury stocks, shares | 1,289,103 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Cash flows from operating activities | |||
Net income for the year | $ 84,167 | $ 97,115 | $ 61,897 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 29,087 | 23,793 | 17,357 |
Loss (gain) on disposal of property, plant and equipment | 18 | (30) | (73) |
Loss on disposal of intangibles | 447 | ||
Loss from sales and maturities of marketable securities | 364 | 822 | 194 |
Amortization of investment (discount) premium | (506) | (193) | 798 |
Amortization of deferred debt issuance costs | 994 | 1,396 | 758 |
Income related to flooding | (828) | ||
Proceeds from insurers in settlement of claim related to flood damage | 272 | ||
Reversal of allowance for doubtful accounts | (23) | (1) | (17) |
Unrealized loss on exchange rate and fair value of derivative | 4,222 | 1,884 | 1,905 |
Share-based compensation | 22,581 | 26,507 | 9,927 |
Deferred income tax | (2,074) | 754 | 864 |
Other non-cash expenses | 2,133 | 2,173 | 1,744 |
(Reversal of) Inventory obsolescence | (436) | 42 | (521) |
Loss from written-off inventory due to flood loss | 233 | ||
Changes in operating assets and liabilities | |||
Trade accounts receivable | 17,852 | (64,142) | (61,013) |
Inventory | (19,432) | (53,802) | (50,598) |
Other current assets and non-current assets | (4,464) | (2,231) | (5,901) |
Trade accounts payable | 3,502 | 38,293 | 56,308 |
Income tax payable | (1,267) | (67) | 573 |
Other current liabilities and non-current liabilities | 915 | (1,379) | 13,209 |
Net cash provided by operating activities | 138,080 | 70,934 | 47,088 |
Cash flows from investing activities | |||
Purchase of marketable securities | (152,908) | (122,778) | (108,341) |
Proceeds from sales of marketable securities | 61,795 | 39,578 | 41,836 |
Proceeds from maturities of marketable securities | 67,417 | 72,361 | 67,113 |
Payments in connection with business acquisition, net of cash acquired | (9,917) | ||
Purchase of property, plant and equipment | (33,825) | (68,262) | (40,616) |
Gain on cash settlement of hedged forward contracts | 34 | ||
Proceeds from disposal of property, plant and equipment | 449 | 230 | 194 |
Purchase of intangibles | (1,577) | (1,768) | (379) |
Proceeds from insurers in settlement of claims related to flood damage | 556 | ||
Net cash used in investing activities | (58,649) | (90,556) | (39,603) |
Cash flows from financing activities | |||
Payment of debt issuance costs | (654) | ||
Proceeds of short-term loan from bank | 5,000 | 27,500 | 18,000 |
Repayment of short-term loan from bank | (1,003) | (157) | (41,500) |
Proceeds of long-term loan from bank | 50,000 | ||
Repayment of long-term loan from bank | (11,212) | (18,100) | (6,000) |
Proceeds from issuance of ordinary shares under employee share option plan | 1,436 | 5,890 | 5,479 |
Repayment of capital lease liability | (417) | (276) | |
Repurchase of ordinary shares | (42,401) | ||
Withholding tax related to net share settlement of restricted share units | (5,509) | (1,425) | (2,463) |
Net cash (used in) provided by financing activities | (54,106) | 13,432 | 22,862 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 25,325 | (6,190) | 30,347 |
Movement in cash, cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at beginning of period | 137,137 | 142,804 | 112,978 |
Increase (decrease) in cash, cash equivalents and restricted cash | 25,325 | (6,190) | 30,347 |
Effect of exchange rate on cash, cash equivalents and restricted cash | (1,029) | 523 | (521) |
Cash, cash equivalents and restricted cash at end of period | 161,433 | 137,137 | 142,804 |
Cash paid for | |||
Interest | 2,219 | 1,924 | 1,091 |
Taxes | 1,352 | 5,218 | 5,473 |
Cash received for interest | 3,945 | 1,753 | 1,049 |
Non-cash investing and financing activities | |||
Construction, software related and equipment related payables | $ 5,144 | $ 8,434 | $ 20,628 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | $ 158,102 | $ 133,825 |
Restricted cash in connection with business acquisition | 3,331 | 3,312 |
Cash, cash equivalents and restricted cash | $ 161,433 | $ 137,137 |
Business and organization
Business and organization | 12 Months Ended |
Jun. 29, 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 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 29, 2018 | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Principles of consolidation The Company utilizes a 52-53 The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include Fabrinet and its subsidiaries. All inter-company accounts and transactions have been eliminated. On September 14, 2016, the Company acquired Global CEM Solutions, Ltd. and all of its subsidiaries (collectively, “Fabrinet UK”), a privately-held group located in Wiltshire, United Kingdom. The 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 9, Business acquisition for further details on the accounting for this transaction. Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and 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 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. Foreign currency transactions and translation The consolidated financial statements are presented in United States dollars (“$” or “USD”). The functional currency of Fabrinet and most of its subsidiaries is the USD. With respect to subsidiaries that use USD as their functional currency, transactions denominated in a currency other than USD are translated into USD at the rates of exchange in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the consolidated balance sheet dates. Transaction gains and losses are included in foreign exchange gain (loss) in the accompanying consolidated statements of operations and comprehensive income. Fabrinet translates the assets and liabilities of its subsidiaries that do not use USD as their functional currency into USD using exchange rates in effect at the end of each period. Revenue and expenses for such subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation adjustment included in accumulated other comprehensive income (loss) (“AOCI”) in the Company’s consolidated balance sheets. Cash and cash equivalents All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. Cash and cash equivalents consist of cash deposited in checking accounts, time deposits with maturities of less than three months, money market accounts, and marketable securities with maturities of three months or less at the date of purchase. Marketable securities Management determines the appropriate classification of its investments at the time of purchase and re-evaluates available-for-sale. The Company’s investments in marketable securities are classified as available-for-sale available-for-sale The Company reviews its marketable securities on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issue and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized cost basis. If the Company believes that an other-than-temporary decline exists in one of these securities, the Company will write down these investments to fair value. Trade accounts receivable Accounts receivable are carried at anticipated realizable value. The Company assesses the collectability of its accounts receivable based on specific customer circumstances, current economic trends, historical experience with collection and the age of past due receivables and provides an allowance for doubtful receivables based on a review of all outstanding amounts at the period end. Bad debts are written-off Unanticipated changes in the liquidity or financial position of the Company’s customers may require revision to the allowances for doubtful accounts. Inventory Inventory is stated at the lower of cost or market value. Cost is estimated using the standard costing method, computed on a first-in, first-out Leases Operating leases Payments made under operating leases are expensed on a straight-line basis over the lease term. Capital lease Certain machine and equipment held under capital leases are classified as property, plant and equipment and amortized using the straight-line method over the terms of the lease contracts. The related obligations from the capital lease are recorded as liabilities in the consolidated balance sheets. Property, plant and equipment Land is stated at historical cost. Other property, plant and equipment, except for construction in process and machinery under installation, are stated at historical cost less accumulated depreciation. Depreciation is calculated using the straight-line method to write-off Land improvements 10 years Building and building improvements 7 - 30 years Leasehold improvements Shorter of useful life or lease term Manufacturing equipment 3 - 7 years Office equipment 3 - 7 years Motor vehicles 3 - 5 years Computer hardware 3 - 5 years Construction in process and machinery under installation is stated at historic cost and depreciation begins after it is constructed and fully installed and is ready for its intended use in the operations of the Company. Gains and losses on disposal are determined by comparing proceeds with carrying amounts and are included in operating income in the consolidated statements of operations and comprehensive income. The Company reviews long-lived assets or asset groups for recoverability on a quarterly basis for any events or changes in circumstances that indicate that their carrying amount may not be recoverable. Recoverability of long-lived assets or asset groups is measured by comparing their carrying amount to the projected undiscounted cash flows that the long-lived assets or asset groups are expected to generate. If such assets are considered to be impaired, the impairment loss recognized, if any, is the amount by which the carrying amount of the property and equipment exceeds its fair value. Intangibles Intangibles are stated at historical cost less amortization. Amortization of customer relationships is calculated using the accelerated method as to reflect the pattern in which the economic benefits of the intangible assets are consumed. Amortization of other intangibles is calculated using the straight-line method. Intangible assets are reviewed for impairment quarterly or more frequently whenever changes or circumstances indicate the carrying amount of related assets may not be recoverable. Business acquisition For the acquisition of Fabrinet UK, the Company allocated the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The allocation of consideration to the individual net assets was finalized in the fourth quarter of fiscal year 2017. The acquired intangible assets, which consist of customer relationships and backlog, are recorded as intangibles in the consolidated balance sheets. The fair value of the acquired intangible assets was determined based on the multi-period excess earnings method. The Company reviews intangibles for impairment whenever changes or circumstances indicate the carrying amount may not be recoverable. In connection with the business acquisition, $3.4 million of cash, net of foreign currency translation adjustment, for deferred consideration, was placed into 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. As of June 29, 2018, the cash is presented as restricted cash in the consolidated balance sheets within current assets and the related liability is presented within current liabilities for the deferred consideration. As of June 30, 2017, the cash is presented as restricted cash in the consolidated balance sheets within non-current non-current Goodwill Goodwill arising from the acquisition is primarily attributable to the ability to expand future products and services and the assembled workforce. Goodwill is reviewed annually for impairment or more frequently whenever changes or circumstances indicate the carrying amount of goodwill may not be recoverable. Treasury shares Treasury share purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury shares. Gains and losses in excess of par value on the subsequent reissuance of shares are credited or charged to additional paid-in Borrowing costs Borrowing costs are accounted for on an accrual basis and are charged to the consolidated statements of operations and comprehensive income in the year incurred, except for interest costs on general and specific borrowings attributable to finance certain qualifying assets. Such costs to finance qualifying assets are capitalized during the period of time that is required to complete and prepare the assets for their intended use, as part of the cost of the assets. All other borrowing costs are expensed as incurred. Where funds are not borrowed for a specific acquisition, construction or production of assets, the capitalization rate used to determine the amount of interest to be capitalized is the weighted average interest rate applicable to the Company’s outstanding borrowings during the year. Where funds are borrowed specifically for the acquisition, construction or production of assets, the amount of borrowing costs eligible for capitalization on the respective assets is determined as the actual borrowing costs are incurred on that borrowing during the respective periods. Fair value of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs for the valuation of an asset or liability as of the measurement date. The three levels of inputs that may be used to measure fair value are defined as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs for similar assets and liabilities in active markets other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 inputs that are significant to the fair value measurement and unobservable (i.e. supported by little or no market activity), which require the reporting entity to develop its own valuation techniques and assumptions. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The carrying amounts of certain financial instruments, which include cash and cash equivalents, trade accounts receivable, and trade accounts payable, approximate their fair values due to their short maturities. The carrying amounts of borrowings approximate their fair values as the applicable interest rate is based on market interest rates. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item. Derivatives The derivatives assets and liabilities are recognized on the consolidated balance sheets as other current assets or other current liabilities and are measured at fair value. The Company applies hedge accounting to arrangements that qualify and are designated for cash flow or fair value hedge accounting treatment. Hedge accounting is discontinued prospectively if the hedging relationship ceases to be effective or the hedging or hedged items cease to exist as a result of maturity, sale, termination or cancellation. Derivatives designated and qualifying as hedges of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges which include forward currency contracts. In a cash flow hedging relationship, the effective portion of the change in the fair value of the hedging derivative is initially recorded in AOCI in the consolidated balance sheets, while any ineffective portion is recognized directly in earnings, as a component of foreign exchange gain (loss) in the consolidated statements of operations and comprehensive income. The portion of gain or loss on the derivative instrument remains in AOCI until the forecasted transaction is recognized in earnings. The Company also enters into derivative contracts that are intended to economically hedge certain of the Company’s risks. The changes in the fair value of the derivatives are recorded directly in earnings as a component of foreign exchange gain (loss) in the consolidated statements of operations and comprehensive income. In accordance with the fair value measurement guidance, the Company’s accounting policy is to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company executes derivative instruments with financial institutions that are credit-worthy, which the Company defines as institutions that hold an investment grade credit rating. 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. Revenue recognition The Company derives total revenues primarily from the assembly of products under supply agreements with its customers and the fabrication of customized optics and glass. Revenues represent the invoiced value of products, net of trade discounts and allowances, and exclude goods and services tax. The Company recognizes revenues when realized or realizable and earned. The Company considers revenues realized or realizable and earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery does not occur until products have been shipped or services have been provided to the customer, risk of loss has transferred to the customer and customer acceptance has been obtained, customer acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. In situations where a formal acceptance is required but the acceptance only relates to whether the product meets its published specifications, revenues are generally recognized upon shipment provided all other revenue recognition criteria are met. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. The Company reduces revenues for rebates and other similar allowances. Revenues are recognized only if these estimates can be reasonably and reliably determined. The Company bases its estimates utilizing historical results taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for each major category of revenues. Services The Company provides services for its customers that range from process design to product manufacturing. The Company recognizes service revenues when the services have been performed. The related costs are expensed as incurred. Services revenue of $57.1 million, $75.4 million and $31.7 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. Sales of goods Revenues from sales of goods are generally recognized when the product is shipped to the customer and when there are no unfulfilled obligations that affect the customer’s final acceptance of the arrangement. Any cost of warranties and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenues are recognized. Certain customers may request the Company to store finished products purchased by them at the Company’s warehouse. In these instances, the Company receives a written request from the customer asking the Company to hold the inventory at the Company’s warehouse and the ordered goods are segregated in the Company’s warehouse from other inventory and cannot be used to fulfill other customer orders. In these situations, revenue is only recognized when persuasive evidence of the sales arrangement exists, the goods are completed and ready for shipment, pricing is fixed or determinable, collection is reasonably assured, and title and risk of loss have passed to the customer. Warranty provision Provisions for estimated expenses relating to product warranties are made at the time the products are sold using historical experience. Generally, this warranty is limited to workmanship and the Company’s liability is capped at the price of the product. The provisions will be adjusted when experience indicates an expected settlement will differ from initial estimates. (Reversal of) warranty cost allowances of ($0.02 million), $1.0 million and $0.1 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. Shipping and handling costs The Company records costs related to shipping and handling in cost of revenues for all periods presented. Share-based compensation Share-based compensation is recognized in the consolidated financial statements based on grant-date fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The Company estimates the fair value of share option awards utilizing the Black-Scholes-Merton option-pricing model (“BSM”), net of estimated forfeitures. For restricted share units and performance share units, the fair values are based on the market value of our ordinary shares on the date of grant. Employee contribution plan The Company operates a defined contribution plan, known as a provident fund, in its subsidiaries in Thailand and the United Kingdom. The assets of these plans are in separate trustee-administered funds. The provident fund is funded by matching payments from employees and by the subsidiaries on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (the “401(k) Plan”), a Defined Contribution Plan under ERISA, at its subsidiaries in the United States, which provides retirement benefits for its eligible employees through tax deferred salary deductions. Severance liabilities Under labor protection laws applicable in Thailand and the Company’s subsidiary in Thailand’s employment policy, all employees of such subsidiary with more than 120 days of service are entitled to severance pay on forced termination or retrenchment or in the event that the employee reaches the retirement age of 55. The entitlement to severance pay is determined according to an employee’s individual employment tenure with the Company and is subject to a maximum benefit of 10 months of salary unless otherwise agreed upon in an employee’s employment contract. For employees of other subsidiaries who have a specific termination date, the entitlement to severance pay is determined according to their employment tenure, until their designated termination date. The Company accounts for these severance liabilities on an actuarial basis using the Projected Unit Credit Method, using the long-term Thai government bond yield as a discount rate. There are no separate plan assets held in respect of these liabilities. Annual leave Employee entitlements to annual leave are recognized when they accrue to the employee. On termination of employment, accrued employee entitlement to annual leave is paid in cash. Income taxes The Company uses the asset and liability method of accounting for income taxes, whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Fabrinet’s subsidiaries are subject to income tax audits by the respective tax authorities in all of the jurisdictions in which they operate. The determination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations. more-likely-than-not. The authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of both positive and negative evidence and the relative weight of the evidence. A company shall reduce its deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is “more likely than not” (i.e., a likelihood of greater than 50 percent) that some portion or all of the deferred tax assets will not be realized. The valuation allowance shall be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. The valuation allowance shall be monitored and considered from all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is not needed. The accounting standard clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. The Company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” to be sustained upon examination by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. The accounting interpretation also provides guidance on measurement methodology, derecognition thresholds, financial statement classification and disclosures, recognition of interest and penalties, and accounting for the cumulative-effect adjustment at the date of adoption. New Accounting Pronouncements—not yet adopted by the Company In 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, as part of its ongoing efforts to assist in the convergence of accounting principles generally accepted in the United States of America (“U.S. GAAP”), the FASB issued ASU 2014-09, 2015-14); 2016-08); 2016-10); 2016-10). 2016-12, “Revenue The Company set up a team for the implementation of the new revenue recognition accounting standard, including hiring of external advisors to help with the implementation efforts of ASC 606, as amended. The Company utilized a comprehensive approach to evaluate the impact of adopting ASC 606 on its contract portfolio by reviewing the current revenue accounting policies and practices to identify differences that would result from applying the new guidance to the revenue contracts on amount and timing of revenue recognition. The Company currently recognizes the majority of its manufacturing revenue when title and risk and rewards of ownership have passed, the price to the buyer is fixed or determinable and recoverability is reasonably assured, which generally is when the goods are shipped. The Company has determined that the new standard will have no substantial changes to its current revenue recognition policy as the Company’s revenues will continue to be recognized at a “point in time” model. However, there will be a portion of revenue contracts that will fall into an “over time” model as the customers take control of the products as they are produced, as opposed to at a “point in time” upon physical delivery. Service revenue will also continue to be recognized at an “over time” model as services are performed. The Company has substantially completed a review of the accounting systems and processes required to apply this new guidance. Additionally, the Company has completed the majority of the assessment phase and documentation of new policies and is currently in the process of adjusting its accounting policies, operational and financial reporting processes, and relevant internal controls and gathering data for the new disclosure requirements. ASC 606 allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements as of the adoption date. The Company will adopt the standard using the modified retrospective approach, effective as of June 30, 2018. 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—Stock In March 2016, the FASB issued ASU 2016-05, |
Income taxes
Income taxes | 12 Months Ended |
Jun. 29, 2018 | |
Income taxes | 3. Income taxes Cayman Islands Fabrinet is domiciled in the Cayman Islands. Under the current laws of the Cayman Islands, Fabrinet is not subject to tax in the Cayman Islands on income or capital gains. Fabrinet has received this undertaking for a 20-year Income of the Company exempted from corporate income tax in the Cayman Islands amounted to $58.4 million, $64.2 million and $41.0 million in the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. Thailand Fabrinet Thailand is where the majority of the Company’s operations and production takes place. The Company is not subject to tax from July 2012 through June 2020 on income generated from the manufacture of products at Pinehurst Building 6, and is not subject to tax from July 2018 through June 2026 on income generated from the manufacture of products at its Chonburi campus. Such preferential tax treatment is contingent on, among other things, the export of the Company’s customers’ products out of Thailand and the Company’s agreement not to move its manufacturing facilities out of its current province in Thailand for at least 15 years from the date on which preferential tax treatment was granted. In March 2016, the Thailand Revenue Department announced the permanent decrease of corporate income tax rates to 20% for tax periods beginning on or after January 1, 2016. As a result, corporate income tax rates for Fabrinet Thailand are expected to remain at 20% from fiscal year 2017 onwards. People’s Republic of China The corporate income tax rate for Casix is 25%. The United States The Tax Cuts and Jobs Act, or the Tax Reform Act, was enacted on December 22, 2017 and provides for significant changes to U.S. tax law. Among other provisions, the Tax Reform Act reduces the U.S. corporate income tax rate to 21% effective in 2018. Under the Tax Reform Act, our U.S. subsidiaries are subject to an average corporate income tax rate of 27.6% for fiscal year 2018. The subsidiaries’ corporate income tax rate will be 21% beginning in July 2018 for fiscal year 2019. The United Kingdom The corporate income tax rate for U.K. subsidiaries is 19%. The Company’s income tax expense consisted of the following: Years Ended (amount in thousands) June 29, June 30, June 24, Current $ 5,457 $ 5,986 $ 5,053 Deferred (1,595 ) 756 1,282 Total income tax expense $ 3,862 $ 6,742 $ 6,335 The reconciliation between the Company’s taxes that would arise by applying the statutory tax rate of the country of the Company’s principal operations, Thailand, to the Company’s effective tax charge is shown below: Years Ended (amount in thousands) June 29, June 30, June 24, Income before income taxes (1) $ 88,029 $ 103,857 $ 68,232 Tax expense calculated at a statutory corporate income tax rate of 20% 17,606 20,771 13,646 Effect of income taxes from locations with tax rates different from Thailand 2,657 (48 ) (3,309 ) Income not subject to tax (2) (12,824 ) (17,212 ) (10,493 ) Income tax on unremitted earnings 1,007 798 527 Effect of different tax rate in relation to deferred tax utilization 423 — 894 Effect of foreign exchange rate adjustment (134 ) 667 375 Tax rebate from research and development application (454 ) (226 ) (145 ) Provision for uncertain income tax position 277 260 214 Utilization of loss carryforward (3,224 ) — — (Reversal of) valuation allowance (3) (1,587 ) 1,517 4,882 Others 115 215 (256 ) Corporate income tax expense $ 3,862 $ 6,742 $ 6,335 (1) Income before income taxes was mostly generated from domestic income in the Cayman Islands. (2) Income not subject to tax relates to income earned in the Cayman Islands and income subject to an investment promotion privilege for Pinehurst Building 6. Income not subject to tax per ordinary share on a diluted basis was $0.34, $0.45, and $0.28 for the years ended June 29, 2018, June 30, 2017, and June 24, 2016, respectively. (3) As of June 29, 2018, the Company reversed valuation allowances of deferred tax assets of $5.2 million. The reversal was affected by utilization of deferred tax assets from loss carryforward of $3.2 million and effect of different tax rate in relation to deferred tax utilization of $0.4 million which have been separately presented in another line items. The Company’s deferred tax assets and deferred tax liabilities, net of valuation allowance, at each balance sheet date are as follows: As of (amount in thousands) June 29, June 30, Deferred tax assets: Depreciation $ 2,151 $ 1,674 Severance liability 1,518 1,127 Reserves and allowance 1,545 1,046 Net operating loss carryforwards 1,228 496 Others 277 10 Total $ 6,719 $ 4,353 As of (amount in thousands) June 29, June 30, Deferred tax liabilities: Temporary differences from intangibles and changes in the fair value of assets acquired $ (860 ) $ (944 ) Deferred tax from unremitted earnings (2,863 ) (2,485 ) Total (3,723 ) (3,429 ) Net $ 2,996 $ 924 As of June 30, 2017, the Company determined that it is more likely than not that deferred tax assets attributable to a subsidiary in the United States would not be realized, primarily due to uncertainties related to the subsidiary’s ability to utilize its net operating loss carryforwards before they expire. Accordingly, the Company established a valuation allowance for such deferred tax asset. During the year ended June 29, 2018, the subsidiary generated taxable income sufficient for the utilization of loss carryforwards due to better operating performance and effective control of operating expenses such that management determined that it is more likely than not that future taxable income would be sufficient to allow the benefit of the loss to be realized. Therefore, as of June 29, 2018, the Company partially set up the valuation allowance of deferred tax assets. The changes in the valuation allowances of deferred tax assets were as follows: (amount in thousands) Valuation allowances of Balance as of June 24, 2016 $ 4,882 Additional 1,517 Balance as of June 30, 2017 6,399 Reversal (5,234 ) Balance as of June 29, 2018 $ 1,165 The Tax Reform Act contains a number of provisions that may impact us in future years. Since the Tax Reform Act was recently finalized and ongoing guidance and accounting interpretation is expected over the next twelve months, the Company has made certain provisional accounting estimates, as permitted under Staff Accounting Bulletin No. 118, and continued to analyze its accounting policies in this area. The U.S. Treasury Department, the IRS, and other standard-setting bodies could interpret or issue guidance on how provisions of the Tax Reform Act will be applied or otherwise administered that is different from the Company’s interpretation. As the Company completes its analysis of the Tax Reform Act, collects and prepares necessary data, and interprets any additional guidance, it may make adjustments to provisional amounts that it has recorded that may be material in the period in which the adjustments are made. The final accounting analysis will occur no later than one year from the date the Tax Reform Act was enacted. Currently, the Company has completed its assessment of the impact from the Tax Reform Act. The Company applied the new corporate tax rate to compute its current income tax and remeasured its deferred tax assets and liabilities for all U.S. subsidiaries as of June 29, 2018 to reflect the lower rate expected to apply when these temporary differences are utilized. The remeasurement resulted in (1) a reduction in current income tax expenses of $0.1 million and (2) a reduction in deferred tax assets of $0.4 million. Income tax liabilities have not been established for withholding tax and other taxes that would be payable on the unremitted earnings of Fabrinet Thailand. Such amounts of Fabrinet Thailand are permanently reinvested; unremitted earnings for Fabrinet Thailand totaled $102.5 million and $97.3 million as of June 29, 2018 and June 30, 2017, respectively. Unrecognized deferred tax liabilities for such unremitted earnings were $5.8 million and $5.2 million as of June 29, 2018 and June 30, 2017, respectively. Deferred tax liabilities of $1.0 million and $0.8 million have been established for withholding tax on the unremitted earnings of Casix for the year ended June 29, 2018 and June 30, 2017, respectively, which are included in non-current Uncertain income tax positions Interest and penalties related to uncertain tax positions are recognized in income tax expense. The Company had approximately $0.9 million and $0.6 million of accrued interest and penalties related to uncertain tax positions on the consolidated balance sheets as of June 29, 2018 and June 30, 2017, respectively. The Company recorded interest and penalties of $0.3 million, $0.3 million and $0.2 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively, in the consolidated statements of operations and comprehensive income. With regard to the Thailand jurisdiction, tax years 2013 through 2017 remain open to examination by the local authorities. The following table indicates the changes to the Company’s uncertain income tax positions for the years ended June 29, 2018, June 30, 2017 and June 24, 2016 included in other non-current Years Ended (amount in thousands) June 29, June 30, June 24, Beginning balance $ 1,420 $ 1,420 $ 1,420 Additions during the year 25 — — Reductions for tax positions of prior years — — — Ending balance $ 1,445 $ 1,420 $ 1,420 |
Earnings per ordinary share
Earnings per ordinary share | 12 Months Ended |
Jun. 29, 2018 | |
Earnings per ordinary share | 4. Earnings per ordinary share Basic earnings per ordinary share is computed by dividing reported net income by the weighted average number of ordinary shares outstanding during each period. Diluted earnings per ordinary share is computed by calculating the effect of potential dilutive ordinary shares outstanding during the year using the treasury stock method. Dilutive ordinary equivalent shares consist of share options, restricted share units and performance share units. The earnings per ordinary share was calculated as follows: Years Ended (amount in thousands except per share amounts) June 29, June 30, June 24, Net income attributable to shareholders $ 84,167 $ 97,115 $ 61,897 Weighted-average number of ordinary shares outstanding (thousands of shares) 37,257 36,927 35,857 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares) 778 925 1,015 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 38,035 37,852 36,872 Basic earnings per ordinary share $ 2.26 $ 2.63 $ 1.73 Diluted earnings per ordinary share $ 2.21 $ 2.57 $ 1.68 |
Cash, cash equivalents and mark
Cash, cash equivalents and marketable securities | 12 Months Ended |
Jun. 29, 2018 | |
Cash, cash equivalents and marketable securities | 5. Cash, cash equivalents and marketable securities The Company’s cash, cash equivalents, and marketable securities can be analyzed as follows: Fair Value (amount in thousands) Carrying Cost Unrealized Cash and Marketable As of June 29, 2018 Cash $ 146,778 $ — $ 146,778 $ — Cash equivalents 11,324 — 11,324 — Corporate bonds and commercial papers 128,441 (736 ) — 127,705 U.S. agency and U.S. treasury securities 43,734 (324 ) — 43,410 Sovereign and municipal securities 3,185 (31 ) — 3,154 Total $ 333,462 $ (1,091 ) $ 158,102 $ 174,269 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 The cash equivalents include short-term bank deposits, investments in money market funds, and marketable securities with maturities of three months or less at the date of purchase. The effective interest rate on short term bank deposits was 0.8% and 0.6% per annum for the years ended June 29, 2018 and June 30, 2017, respectively. As of June 29, 2018 and June 30, 2017, 49% and 66%, respectively, of our cash and cash equivalents were held by the Parent Company. The following table summarizes the cost and estimated fair value of marketable securities classified as available-for-sale (amount in thousands) Carrying Fair Value Due within one year $ 28,216 $ 28,193 Due between one to three years 147,144 146,076 Total $ 175,360 $ 174,269 During the year ended June 29, 2018, the net realized loss from changes in fair value of marketable securities recognized by the Company was $0.4 million. As of June 29, 2018 and June 30, 2017, the Company considered the declines in market value of its marketable securities investment portfolio to be temporary in nature and did not consider any of its securities other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. No impairment losses were recorded for the years ended June 29, 2018 and June 30, 2017. As of June 29, 2018 and June 30, 2017, cash, cash equivalents, and marketable securities included a bank deposit of $40.0 million held in various financial institutions located in the United States in order to support the availability of the Facility Agreement and comply with covenants. Under the terms and conditions of the Facility Agreement, the Company shall maintain cash, cash equivalents and/or marketable securities in an aggregate amount not less than $40.0 million in unencumbered deposits, and/or securities in accounts located in the United States at all times during the term of the Facility Agreement. As discussed in Note 13, the Company must comply with this covenant from and after the effective date of the Facility Agreement. |
Fair Value
Fair Value | 12 Months Ended |
Jun. 29, 2018 | |
Fair Value | 6. Fair Value The following table provides details of the financial instruments measured at fair value on a recurring basis, including: Fair Value Measurements at Reporting Date (amount in thousands) Level 1 Level 2 Level 3 Total As of June 29, 2018 Assets Cash equivalents $ — $ 11,324 $ — $ 11,324 Corporate bonds and commercial papers — 127,705 — 127,705 U.S. agency and U.S. treasury securities — 43,410 — 43,410 Sovereign and municipal securities — 3,154 — 3,154 Derivative assets — — — — Total $ — $ 185,593 $ — $ 185,593 Liabilities Derivative liabilities $ — $ 1,745 (1) $ — $ 1,745 Total $ — $ 1,745 $ — $ 1,745 Fair Value Measurements at Reporting Date (amount in thousands) Level 1 Level 2 Level 3 Total As of June 30, 2017 Assets Cash equivalents $ — $ 2,585 $ — $ 2,585 Corporate bonds and commercial papers — 98,274 — 98,274 U.S. agency and U.S. treasury securities — 50,666 — 50,666 Sovereign and municipal securities — 2,510 — 2,510 Derivative assets — 15 (2) — 15 Total $ — $ 154,050 $ — $ 154,050 Liabilities Derivative liabilities $ — $ — $ — $ — Total $ — $ — $ — $ — (1) Foreign currency forward contracts with notional amount of $7.0 million and Canadian dollars 0.4 million. Foreign currency option contracts with notional amount of $30.0 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 June 29, 2018, the Company recognized the fair value of foreign currency forward contracts of $1.7 million as derivative liabilities in the consolidated balance sheets 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 sheets under other current assets. As of June 29, 2018 and June 30, 2017, the Company had no foreign currency forward contracts designated as cash flow hedges. During the year ended June 30, 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 consolidated statements of operations and comprehensive income. As of June 29, 2018, the Company had five outstanding foreign currency forward contracts with notional amount of $7.0 million, four outstanding foreign currency option contracts with notional amount of $30.0 million and one foreign currency forward contract with notional amount of Canadian dollars 0.4 million with maturity dates from July through October 2018. These foreign currency forward and option 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 dollars. During the year ended June 29, 2018, the Company included unrealized loss of $1.7 million from changes in fair value of foreign currency contracts in earnings as foreign exchange loss, net in the consolidated statements of operations and comprehensive income. As of June 30, 2017, the Company had two outstanding foreign currency forward contracts with notional amount of $1.0 million and Canadian dollars 0.6 million, with maturity dates from July through September 2017. These foreign currency forward contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht and Canadian dollars. During the year ended June 30, 2017, the Company included unrealized gain of $0.02 million from changes in fair value of foreign currency contracts in the consolidated statements of operations and comprehensive income. |
Trade accounts receivable, net
Trade accounts receivable, net | 12 Months Ended |
Jun. 29, 2018 | |
Trade accounts receivable, net | 7. Trade accounts receivable, net (amount in thousands) As of June 29, As of June 30, Trade accounts receivable $ 246,972 $ 264,389 Less: Allowance for doubtful account (60 ) (40 ) Trade accounts receivable, net $ 246,912 $ 264,349 |
Inventory
Inventory | 12 Months Ended |
Jun. 29, 2018 | |
Inventory | 8. Inventory (amount in thousands) As of June 29, As of June 30, Raw materials $ 100,241 $ 88,640 Work in progress 121,797 105,732 Finished goods 20,690 33,998 Goods in transit 17,516 13,025 260,244 241,395 Less: Inventory obsolescence (2,557 ) (2,730 ) Inventory, net $ 257,687 $ 238,665 |
Business acquisition
Business acquisition | 12 Months Ended |
Jun. 29, 2018 | |
Business acquisition | 9. 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 year ended June 29, 2018, the Company recognized a $0.1 million gain from foreign currency translation adjustment in its consolidated statements of operations and comprehensive income, under other comprehensive (loss) income, net of tax. During the year ended June 30, 2017, the Company recorded a measurement period adjustment to recognized deferred tax liabilities of $1.2 million related to taxable temporary differences from intangibles and changes in the fair value of assets acquired. Therefore, goodwill which was previously reported at acquisition date of $2.7 million was changed to $3.9 million. The Company’s allocation of the total purchase price for the acquisition is summarized below: (amount in thousands) Purchase 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 June 29, 2018, the Company included approximately $1.4 million of capital lease assets and $1.0 million of capital lease liability in the consolidated balance sheets associated with these acquired lease agreements. During the year ended June 30, 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 consolidated statements of operations and comprehensive income. During the year ended June 29, 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 identifiable 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, which applied the following key assumptions: Risk free rate: 30-year Long-term revenue growth: 5.0% - 8.0% Churn rate: 10% Operating margin: 4.0% - 6.0% Customer relationships represent the fair value of future projected revenues derived from the sale of products to existing customers of the acquired company. The fair value of $4.4 million will be amortized, using the accelerated method, over an estimated useful life of ten years. Backlog represents the fair value of sales orders backlog as of the valuation date. The fair value of $0.1 million will be amortized, using an accelerated amortization method, over the respective estimated 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. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Jun. 29, 2018 | |
Property, plant and equipment, net | 10. Property, plant and equipment, net The components of property, plant and equipment, net were as follows: (amount in thousands) Land and Building and Building Manufacturing Office Motor Computers Construction Total As of June 29, 2018 Cost $ 45,080 $ 139,342 $ 141,869 $ 7,582 $ 456 $ 21,250 $ 8,762 $ 364,341 Less: Accumulated depreciation (6 ) (38,265 ) (86,989 ) (4,454 ) (334 ) (14,653 ) — (144,701 ) Net book value $ 45,074 $ 101,077 $ 54,880 $ 3,128 $ 122 $ 6,597 $ 8,762 $ 219,640 As of June 30, 2017 Cost $ 39,096 $ 138,578 $ 127,085 $ 7,688 $ 534 $ 19,642 $ 6,058 $ 338,681 Less: Accumulated depreciation (2 ) (31,881 ) (72,130 ) (4,163 ) (376 ) (13,248 ) — (121,800 ) Net book value $ 39,094 $ 106,697 $ 54,955 $ 3,525 $ 158 $ 6,394 $ 6,058 $ 216,881 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 was 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 fully paid on December 25, 2017. Leased assets included above comprise certain machine and equipment from capital lease agreements assumed from the acquisition of Fabrinet UK. (amount in thousands) As of June 29, 2018 As of June 30, 2017 Cost—Capital leases $ 2,481 2,725 Less: Accumulated depreciation (1,043 ) (856 ) Net book value $ 1,438 1,869 Depreciation expense amounted to $27.4 million, $22.5 million and $17.3 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively, and has been allocated between cost of revenues and selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. The cost of fully depreciated property, plant and equipment written-off During the year ended June 29, 2018, the Company had no borrowing costs capitalized. During the year ended June 30, 2017, the Company capitalized $0.5 million of borrowing costs in construction in progress of its new manufacturing building at Chonburi Campus. The Company stopped capitalizing borrowing costs in the third quarter of fiscal year 2017 upon the completion of this campus. |
Intangibles
Intangibles | 12 Months Ended |
Jun. 29, 2018 | |
Intangibles | 11. Intangibles The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated Foreign Net As of June 29, 2018 Software $ 6,269 $ (4,324 ) $ — $ 1,945 Customer relationships 4,373 (1,413 ) (42 ) 2,918 Backlog 119 (101 ) (1 ) 17 Total intangibles $ 10,761 $ (5,838 ) $ (43 ) $ 4,880 (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 In connection with the acquisition of Fabrinet UK, the Company recorded $4.4 million of customer relationships and $0.1 million of backlog in the consolidated balance sheets. As of June 29, 2018, the weighted-average remaining life of customer relationships and backlog was 6.1 years and 0.9 years, respectively. As of June 30, 2017, the weighted-average remaining life of customer relationships and backlog was 6.9 years and 1.6 years, respectively. The Company recorded amortization expense relating to intangibles of $1.7 million, $1.2 million and $0.1 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. As of June 29, 2018, the estimated future amortization of intangible assets during each fiscal year was as follows: (amount in thousand) 2019 $ 1,462 2020 1,038 2021 892 2022 657 2023 400 Thereafter 431 Total $ 4,880 |
Goodwill
Goodwill | 12 Months Ended |
Jun. 29, 2018 | |
Goodwill | 12. Goodwill In connection with the acquisition of Fabrinet UK, the Company recorded $3.8 million of goodwill in the consolidated balance sheets. The changes in the carrying amount of goodwill were as follows: (amount in thousands) Goodwill Balance as of June 30, 2017 $ 3,806 Foreign currency translation adjustment 22 Balance as of June 29, 2018 $ 3,828 Goodwill is not deductible for tax purposes. Goodwill is reviewed annually for impairment or more frequently whenever changes or circumstances indicate the carrying amount of goodwill may not be recoverable. As of June 29, 2018, the Company performed the annual impairment test for goodwill, which indicated there was no goodwill impairment. |
Borrowings
Borrowings | 12 Months Ended |
Jun. 29, 2018 | |
Borrowings | 13. Borrowings The Company’s total borrowings, including short-term and long-term borrowings, consisted of the following: ( dollars in thousands Rate (1) Conditions Maturity As of June 29, 2018 As of June 30, 2017 Short-term borrowings: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months July 2017 (2) $ — $ 34,000 Short-term borrowings from bank: Bank of England base rate +1.85% per annum Repayable based on credit terms of secured — 1,003 Current portion of long-term borrowings 3,250 13,600 3,250 48,603 Less: Unamortized debt issuance costs — (201 ) $ 3,250 $ 48,402 Long-term borrowings: Term loan borrowing: LIBOR + 1.75% per annum Repayable in quarterly installments May 2019 (2) $ — $ 36,400 LIBOR + 1.50% per annum Repayable in quarterly installments June 2023 (2) 64,188 — 64,188 36,400 Less: (3,250 ) (13,600 ) Less: — (99 ) Non-current $ 60,938 $ 22,701 (1) LIBOR is London Interbank Offered Rate. (2) In June 2018, the outstanding revolving and term loan borrowings were refinanced to one term loan borrowing and the maturity dates were extended from July 2017 and May 2019 to June 2023. The movements of long-term borrowings were as follows for the years ended June 29, 2018 and June 30, 2017: Years ended (amount in thousands) June 29, 2018 June 30, 2017 Opening net book amount $ 36,400 $ 54,500 Additional loan during the period 39,000 — Repayment during the period (11,212 ) (18,100 ) Closing net book amount $ 64,188 $ 36,400 As of June 29, 2018, the future maturities of long-term borrowings during each fiscal year were as follows: (amount in thousand) 2019 $ 3,250 2020 3,250 2021 3,250 2022 3,250 2023 51,188 Total $ 64,188 Credit facilities: The Company 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, provided 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. 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 of $50.0 million in fiscal year 2016. As of June 30, 2017, $34.0 million of revolving borrowing and $36.4 million of term loan borrowing was outstanding under the Facility Agreement. Borrowings under the revolving credit facility are classified as current liabilities in the audited consolidated balance sheet as the Company has the periodic option to renew or pay, all or a portion of, the outstanding balance at the end of the maturity date, which is in the range of one to six months, without premium or penalty, upon notice to the administrative agent. Loans under the Facility Agreement bear interest, at Fabrinet’s option, at a rate per annum equal to a LIBOR rate plus a spread of 1.75% to 2.50%, or a base rate, determined in accordance with the Facility Agreement, plus a spread of 0.75% to 1.50%, in each case with such spread determined based on Fabrinet’s consolidated total leverage ratio for the preceding four fiscal quarter period. Interest is due and payable quarterly in arrears for loans bearing interest at the base rate and at the end of an interest period (or at each three-month interval in the case of loans with interest periods greater than three months) in the case of loans bearing interest at the LIBOR rate. Fabrinet’s obligations under the Facility Agreement are guaranteed by certain of its existing and future direct material subsidiaries. In addition, the Facility Agreement is secured by Fabrinet’s present and future accounts receivable, deposit accounts and cash, and a pledge of the capital stock of certain of Fabrinet’s direct subsidiaries. Fabrinet is required to maintain at least $40.0 million of cash, cash equivalents, and marketable securities at financial institutions located in the United States. Further, Fabrinet is required to maintain any of its deposits accounts or securities accounts with balances in excess of $10.0 million in a jurisdiction where a control agreement, or the equivalent under the local law, can be effected. The Facility Agreement contains customary affirmative and negative covenants. Negative covenants include, among other things, limitations on liens, indebtedness, investments, mergers, sales of assets, changes in the nature of the business, dividends and distributions, affiliate transactions and capital expenditures. The Facility Agreement contains financial covenants requiring Fabrinet to maintain: (i) a minimum tangible net worth of not less than $200.0 million plus 50% of quarterly net income, exclusive of quarterly losses; (ii) a minimum debt service coverage ratio of not less than 1.50:1.00; (iii) a maximum senior leverage ratio of not more than 2.50:1.00; and (iv) a minimum quick ratio of not less than 1.10:1.00. Each of these financial covenants is calculated on a consolidated basis for the consecutive four fiscal quarter period then ended. 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. On June 4, 2018, the Company entered into the Fifth Amendment to the Facility Agreement to (i) reduce the revolving commitments thereunder from $150.0 million to $25.0 million, (ii) extend the termination date of the revolving commitments from May 22, 2019 to June 4, 2023, (iii) refinance the then-existing term loan and revolving loans under the Facility Agreement into a $65.0 million term loan and (iv) reduce the applicable interest rate margins and commitment fees. Term loans shall be repaid in quarterly installments, beginning on June 30, 2018, with the remaining outstanding principal and accrued and unpaid interest being due and payable on June 4, 2023. After giving effect to the amendment, $65.0 million aggregate principal amount of term loans and no revolving loans were outstanding under the Facility Agreement. In addition, the Fifth Amendment to the Facility Agreement contains an accordion feature permitting the Company to request an increase in the revolving loan facility to provide up to an aggregate of $200.0 million in additional commitments, subject to customary terms and conditions, and provided that no default or event of default exists at the time of such request. The Fifth Amendment is considered debt extinguishment of which the Company recognized interest expenses of $0.1 million from remaining unamortized debt issuance costs in consolidated statements of operations and comprehensive income. As of June 29, 2018, $64.2 million aggregate principal amount of term loans and no revolving loans were outstanding under the Facility Agreement. After the Fifth Amendment, 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 1.50% to 2.25%, or a base rate plus a spread of 0.50% to 1.25%, 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. Fabrinet’s obligations under the Facility Agreement are guaranteed by certain of its existing and future material direct 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 $20.0 million in a jurisdiction where a control agreement, or the equivalent under the local law, can be effected. Moreover, the Fifth Amendment of Facility Agreement amends 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 $338.0 million plus 50% of quarterly net income after June 30, 2018, exclusive of quarterly losses; (2) a minimum debt service coverage ratio of not less than 1.50:1.00; (3) a maximum total 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 June 29, 2018, the Company was in compliance with all covenants under the Facility Agreement. Fabrinet intends to use the proceeds of the credit line to finance its future expansion 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. 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 converted 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. On June 4, 2018, the Company terminated the Swap Agreement in connection with entering into the Fifth Amendment to the Facility Agreement. During the year ended June 29, 2018, the Company included a net gain of $0.1 million from the settlement of the Swap Agreement as interest expenses in the consolidated statements of operations and comprehensive income. Short-term borrowings from bank In connection with the acquisition of Fabrinet UK 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 available period of future borrowing as of June 29, 2018 and June 30, 2017 were as follows: (amount in thousands) June 29, 2018 June 30, 2017 Expiring within one year $ — $ 1,965 Expiring beyond one year $ 25,000 $ 116,000 |
Severance liabilities
Severance liabilities | 12 Months Ended |
Jun. 29, 2018 | |
Severance liabilities | 14. Severance liabilities The following table provides information regarding severance liabilities: (amount in thousands) As of June 29, As of June 30, Balance, beginning of the fiscal year $ 8,488 $ 6,684 Charged to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income 1,674 1,804 Balance, end of the fiscal year $ 10,162 $ 8,488 The amount recognized in the consolidated balance sheets under non-current (amount in thousands) As of June 29, As of June 30, Present value of defined benefit obligation $ 10,162 $ 8,488 Total $ 10,162 $ 8,488 The amount recognized in the consolidated statements of operations and comprehensive income was as follows: Years Ended (amount in thousands) June 29, June 30, June 24, Current service cost $ 1,751 $ 1,451 $ 842 Interest cost 295 213 203 Benefit paid (3,212 ) — (11 ) Curtailment gain 707 — — Actuarial loss on obligation 2,133 140 173 Total $ 1,674 $ 1,804 $ 1,207 The principal actuarial assumptions used were as follows: Years Ended June 29, 2018 June 30, 2017 June 24, 2016 Discount rate 2.5% - 3.7% 1.93% - 3.6% 2.0% - 3.2% Future salary increases 3.5% - 10.0% 3.5% - 10.0% 4.1% - 10.0% |
Share-based compensation
Share-based compensation | 12 Months Ended |
Jun. 29, 2018 | |
Share-based compensation | 15. Share-based compensation Share-based compensation In determining the grant date fair value of share option 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 grant date fair value of restricted share units and performance 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 years ended June 29, 2018, June 30, 2017 and June 24, 2016 was as follows: Years Ended (amount in thousands) June 29, June 30, June 24, Share-based compensation expense by type of award: Share options $ — $ — $ 16 Restricted share units 17,143 22,412 9,911 Performance share units 5,438 4,095 — Total share-based compensation expense 22,581 26,507 9,927 Tax effect on share-based compensation expense — — — Net effect on share-based compensation expense $ 22,581 $ 26,507 $ 9,927 Share-based compensation expense was recorded in the consolidated statements of operations and comprehensive income as follows: Years Ended (amount in thousands) June 29, June 30, June 24, Cost of revenue $ 6,784 $ 5,318 $ 1,979 Selling, general and administrative expense 15,797 21,189 7,948 Total share-based compensation expense $ 22,581 $ 26,507 $ 9,927 The Company did not capitalize any share-based compensation expense as part of any asset costs during the years ended June 29, 2018, June 30, 2017 and June 24, 2016. Share-based award activity Fabrinet maintains the following equity incentive plans: the Amended and Restated 1999 Share Option Plan (the “1999 Plan”), the Amended and Restated 2010 Performance Incentive Plan (the “2010 Plan”) and the 2017 Inducement Equity Incentive Plan (the “2017 Inducement Plan”). The 1999 Plan, 2010 Plan and 2017 Inducement Plan are collectively referred to as the “Share Option Plans”. As of June 29, 2018, there were no outstanding equity awards under the 1999 Plan, and no additional grants may be made under the 1999 Plan. On 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 2,100,000 shares. As of June 29, 2018, there were an aggregate of 2,900 share options outstanding, 1,024,927 restricted share units outstanding and 508,586 performance share units outstanding under the 2010 Plan. As of June 29, 2018, there were 2,426,271 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 June 29, 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 June 29, 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 table summarizes share option activity: Number of Shares Number of Weighted- Weighted- Balance as of June 26, 2015 792,019 758,451 $ 16.33 Granted — — — Exercised (325,530 ) $ 16.83 Forfeited (755 ) $ 17.10 Expired (1,400 ) $ 23.62 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 June 30, 2017 96,688 96,688 $ 15.70 Granted — — — Exercised (92,288 ) $ 15.56 Forfeited — — Expired (1,500 ) $ 25.50 Balance as of June 29, 2018 2,900 2,900 $ 15.16 Expected to vest as of June 29, 2018 2,900 $ 15.16 The fair value of each share option grant was determined by the Company using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment and management estimate to determine. The total fair value of share options vested during the years ended June 29, 2018, June 30, 2017 and June 24, 2016 was nil, nil and $0.2 million, respectively. The total intrinsic value of options exercised during the years ended June 29, 2018, June 30, 2017 and June 24, 2016 was $2.0 million, $8.9 million and $3.6 million, respectively. In conjunction with these exercises, there was no tax benefit realized by the Company due to the fact that it is exempted from income tax. The amount of cash received from the exercise of share options was $1.4 million during the year ended June 29, 2018. Valuation Method Expected Dividend Expected Volatility Risk-Free Interest Rate zero-coupon Expected Term Vesting Period Fair Value The following table summarizes information for share options outstanding as of June 29, 2018: Number of Exercise Price Per Weighted Average Aggregate (amount in thousands) 2,900 $ 15.16 0.13 Options outstanding 2,900 0.13 $ 63 Options exercisable 2,900 0.13 $ 63 Expected to vest as of June 29, 2018 2,900 0.13 $ 63 As of June 29, 2018, there was no unrecognized compensation cost under the Share Option Plans. 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 at the end of a two-year pre-defined The Company has entered into an employment agreement, as amended on August 12, 2016, with one executive of the Company that provided for accelerated vesting of equity awards under certain circumstances. Pursuant to such agreement, because the executive’s employment with the Company continued through February 20, 2017, (1) all outstanding equity awards granted to the executive prior to August 2016 became 100% vested on February 20, 2017 and (2) certain restricted share units granted to the executive in August 2016 became 100% vested on February 20, 2017. The following table summarizes restricted share unit activity under the 2010 Plan and 2017 Inducement Plan: Number of Weighted- Balance as of June 26, 2015 1,140,927 $ 16.03 Granted 654,589 $ 21.15 Issued (507,621 ) $ 15.60 Forfeited (106,493 ) $ 18.34 Balance as of June 24, 2016 1,181,402 $ 18.34 Granted 861,356 $ 38.95 Issued (853,535 ) $ 21.16 Forfeited (130,618 ) $ 29.31 Balance as of June 30, 2017 1,058,605 $ 31.59 Granted 552,637 $ 35.95 Issued (436,867 ) $ 27.81 Forfeited (100,795 ) $ 33.62 Balance as of June 29, 2018 1,073,580 $ 35.19 Expected to vest as of June 29, 2018 1,012,791 $ 34.87 The following table summarizes performance share unit activity under the 2010 Plan and 2017 Inducement Plan: Number of Shares Weighted- Per Share Balance as of June 24, 2016 — — Granted 234,678 $ 40.48 Issued — — Forfeited (7,410 ) — Balance as of June 30, 2017 227,268 $ 40.48 Granted 378,624 $ 37.16 Issued — — Forfeited — — Balance as of June 29, 2018 605,892 $ 38.41 Expected to vest as of June 29, 2018 285,280 $ 33.98 The fair value of restricted share units and performance share units is based on the market value of our ordinary shares on the date of grant. The total fair value of restricted share units and performance share units vested during the year ended June 29, 2018, June 30, 2017 and June 24, 2016 was $12.2 million, $18.1 million and $7.9 million, respectively. The aggregate intrinsic value of restricted share units outstanding as of June 29, 2018 was $39.6 million. As of June 29, 2018, there was $14.2 million and $1.0 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 is expected to be recorded over a weighted-average period of 2.6 years and 1.0 years, respectively. For the years ended June 29, 2018 and June 30, 2017, the Company withheld an aggregate of 145,918 shares and 37,126 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date to settle the employees’ minimum statutory obligation for the applicable income and other employment taxes. For fiscal year 2018 and fiscal year 2017, the Company then remitted cash of $5.5 million and $1.4 million, respectively, to the appropriate taxing authorities, and presented it as a financing activity within the consolidated statements of cash flows. The payment had the effect on shares issued by the Company as it reduced the number of shares that would have been issued on the vesting date and was recorded as a reduction of additional paid-in |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Jun. 29, 2018 | |
Employee benefit plans | 16. Employee benefit plans Employee contribution plan The Company operates a defined contribution plan, known as a provident fund, in its subsidiaries in Thailand and the United Kingdom. The assets of these plans are in separate trustee-administered funds. The provident fund is funded by matching payments from employees and by the subsidiaries on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company’s contributions to the provident fund amounted to $4.2 million, $3.6 million and $2.8 million during the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (“401(k) Plan”), a Defined Contribution Plan under ERISA, at its subsidiaries in the United States which provides retirement benefits for eligible employees through tax deferred salary deductions. The 401(k) Plan allows employees to contribute up to 80% of their annual compensation, subject to annual contributions limits established by the Internal Revenue Service. The Company provides for a 100% match of employees’ contributions to the 401(k) Plan up to the first 6% of annual compensation. All matching contributions are made in cash and vest immediately. The Company’s matching contributions to the 401(k) Plan were $0.7 million, $0.6 million and $0.5 million during the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. Executive incentive plan and employee performance bonuses For the years ended June 29, 2018 and June 30, 2017, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and non-GAAP non-GAAP non-executive Bonus distributions to employees were $4.0 million, $7.6 million and $7.5 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Jun. 29, 2018 | |
Shareholders' equity | 17. Shareholders’ equity Fabrinet’s authorized share capital is 500,000,000 ordinary shares, par value of $0.01 per ordinary share, and 5,000,000 preferred shares, par value of $0.01 per preferred share. For the year ended June 29, 2018, Fabrinet issued 92,288 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $15.56 per share, and 290,949 ordinary shares upon the vesting of restricted share units, net of shares withheld. For the year ended June 30, 2017, Fabrinet issued 367,641 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $16.02 per share, and 816,409 ordinary shares upon the vesting of restricted share units, net of shares withheld. For the year ended June 24, 2016, Fabrinet issued 325,530 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $16.83 per share, and 393,262 ordinary shares upon the vesting of restricted share units, net of shares withheld. All such issued shares are fully paid. Treasury shares 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 year ended June 29, 2018, 1,289,103 shares were repurchased under the program, at an average price per share of $32.89 totaling $42.4 million. As of June 29, 2018, the Company had a remaining authorization to purchase up to an additional $17.6 million worth of its ordinary shares under the share repurchase program. Shares repurchased under the share repurchase program are held as treasury shares. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 12 Months Ended |
Jun. 29, 2018 | |
Accumulated other comprehensive income (loss) | 18. Accumulated other comprehensive income (loss) The changes in AOCI by component for the years ended June 29, 2018 and June 30, 2017 were as follows: (amount in thousands) Unrealized net (Losses)/Gains on Marketable Securities Unrealized net (Losses)/Gains Instruments Foreign Total Balance as of June 24, 2016 $ 399 $ 192 $ — $ 591 Other comprehensive income before reclassification 351 — (310 ) 41 Amounts reclassified from AOCI (822 ) (158 ) — (980 ) Tax effects — — — — Other comprehensive income (471 ) (158 ) (310 ) (939 ) Balance as of June 30, 2017 (72 ) 34 (310 ) (348 ) Other comprehensive income before reclassification (655 ) — 111 (544 ) Amounts reclassified from AOCI (364 ) (1 ) — (365 ) Tax effects — — — — Other comprehensive income (1,019 ) (1 ) 111 (909 ) Balance as of June 29, 2018 $ (1,091 ) $ 33 $ (199 ) $ (1,257 ) The following table presents the pre-tax Years ended AOCI components Financial statements line item June 29, June 30, Unrealized losses on marketable securities Interest income $ (364 ) $ (822 ) Unrealized gains on derivative instruments Selling, general and administrative expenses (1 ) (158 ) Total amounts reclassified from AOCI $ (365 ) $ (980 ) |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jun. 29, 2018 | |
Commitments and contingencies | 19. Commitments and contingencies Bank guarantees As of June 29, 2018 and June 30, 2017, there were outstanding bank guarantees given by a bank on behalf of our subsidiary in Thailand for electricity usage and other normal business amounting to $1.5 million. Operating lease commitments The Company leases a portion of its capital equipment, vehicle, and certain land and buildings for its facilities in Thailand, Cayman Islands, China, the United States and the United Kingdom under operating lease arrangements that expire in various years through 2023. Rental expense under these operating leases amounted to $1.8 million, $1.7 million and $1.2 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. As of June 29, 2018, the future minimum lease payments due under non-cancelable (amount in thousands) 2019 $ 1,263 2020 943 2021 542 2022 427 Thereafter 456 Total future minimum operating lease payments $ 3,631 Capital lease commitments In connection with the acquisition of Fabrinet UK, the Company assumed the capital lease commitments of several 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 June 29, 2018, the future minimum lease payments under non-cancelable (amount in thousands) 2019 $ 481 2020 424 2021 106 Total minimum capital lease payments 1,011 Less: Future finance charge on capital leases (44 ) Present value of capital lease $ 967 Representing capital lease liabilities Current $ 451 Non-current 516 Total capital lease liabilities $ 967 As of June 29, 2018, the present value of capital lease during each fiscal year were as follows: (amount in thousands) 2019 $ 451 2020 411 2021 105 Total future minimum capital lease payments $ 967 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 was approximately $5.6 million, of which the first installment of $1.1 million was paid by the Company on January 10, 2017 and the remainder was fully paid on December 25, 2017. As of June 29, 2018, the Company had an outstanding commitment to third parties of $2.4 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 | 12 Months Ended |
Jun. 29, 2018 | |
Business segments and geographic information | 20. Business segments and geographic information Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is Fabrinet’s chief executive officer. As of June 29, 2018, June 30, 2017 and June 24, 2016, 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 Years Ended (amount in thousands) June 29, June 30, June 24, North America $ 643,236 $ 661,267 $ 525,161 Asia-Pacific 519,203 539,317 351,033 Europe 209,486 219,906 100,553 Total $ 1,371,925 $ 1,420,490 $ 976,747 As of June 29, 2018 and June 30, 2017, the Company had approximately $33.2 million and $34.9 million, respectively, of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific. The following table presents revenues by end market: Years Ended (amount in thousands) June 29, June 30, June 24, Optical communications $ 1,000,256 $ 1,108,637 $ 727,580 Lasers, sensors, and other 371,669 311,853 249,167 Total $ 1,371,925 $ 1,420,490 $ 976,747 Significant customers Total revenues, by percentage, from individual customers representing 10% or more of total revenues in the respective periods were as follows: Years Ended June 29, June 30, June 24, Lumentum Operations LLC 16 % 17 % 20 % Accounts receivable from individual customers representing 10% or more of accounts receivable as of June 29, 2018 and June 30, 2017, respectively, were as follows: As of June 29, As of June 30, Lumentum Operations LLC 18 % 15 % NeoPhotonics Corporation 11 % 12 % Acacia Communications Inc. * 10 % * Represents less than 10% of total accounts receivable. |
Financial instruments
Financial instruments | 12 Months Ended |
Jun. 29, 2018 | |
Financial instruments | 21. Financial instruments Objectives and significant terms and conditions The principal financial risks faced by the Company are foreign currency risk and interest rate risk. The Company borrows at floating rates of interest to finance its operations. A minority of sales and purchases and a majority of labor and overhead costs are entered into in foreign currencies. In order to manage the risks arising from fluctuations in currency exchange rates, the Company uses derivative instruments. Trading for speculative purposes is prohibited under Company policies. The Company enters into short-term foreign currency forward and option contracts to manage foreign currency exposures associated with certain assets, liabilities and other forecasted foreign currency transactions and may designate these instruments as hedging instruments. The foreign currency forward and option contracts generally have maturity of up to six months. All foreign currency exchange contracts are recognized on the consolidated balance sheets at fair value. Gain or loss on the Company’s derivative instruments generally offset the assets, liabilities and transactions economically hedged. Foreign currency risk The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Thai baht, Chinese Renminbi (“RMB”) and GBP. As of June 29, 2018 and June 30, 2017, the Company had outstanding foreign currency assets and liabilities as follows: As of June 29, 2018 As of June 30, 2017 (amount in thousands) Currency $ Currency $ Assets Thai baht 980,778 $ 29,568 395,123 $ 11,628 RMB 18,455 2,789 26,965 3,980 GBP 12,514 16,392 6,896 8,982 Total $ 48,749 $ 24,590 Liabilities Thai baht 1,401,473 $ 42,251 1,875,338 $ 55,189 RMB 19,893 3,007 28,451 4,200 GBP 3,615 4,735 5,625 7,326 Total $ 49,993 $ 66,715 The Thai baht assets represent cash and cash equivalents, trade accounts receivable, deposits and other current assets. The Thai baht liabilities represent trade accounts payable, accrued expenses, income tax payable and other payables. The Company manages its exposure to fluctuations in foreign exchange rates by the use of foreign currency contracts and offsetting assets and liabilities denominated in the same currency in accordance with management’s policy. As of June 29, 2018 there were $7.0 million of foreign currency forward contracts and $30.0 million of foreign currency option contracts outstanding on the Thai baht payables. As of June 30, 2017, there was $1.0 million in foreign currency forward contracts outstanding on the Thai baht payables. The RMB assets represent cash and cash equivalents, trade accounts receivable and other current assets. The RMB liabilities represent trade accounts payable, accrued expenses and other payables. As of June 29, 2018 and June 30, 2017, there were no derivative contracts denominated in RMB. The GBP assets primarily represent cash, trade accounts receivable, inventory and property, plant and equipment. The GBP liabilities primarily represent trade accounts payable. As of June 29, 2018, there were no derivative contracts denominated in GBP. For fiscal year 2018, fiscal year 2017, and fiscal year 2016, the Company recorded unrealized loss of $1.7 million, unrealized gain of $0.02 million, and unrealized loss of $1.8 million, respectively, related to derivatives that are not designated as hedging instruments in its consolidated statements of operations and comprehensive income. Interest Rate Risk The Company’s principal interest bearing assets are time deposits and short-term investments with maturities of three months or less held with high quality financial institutions. The Company’s principal interest bearing liabilities are bank loans which bear interest at floating rates. |
Subsequent event
Subsequent event | 12 Months Ended |
Jun. 29, 2018 | |
Subsequent event | 22. Subsequent event On August 1, 2018, a new subsidiary in Singapore, Casix Pte Ltd. was set up. The new subsidiary will support the reorganization of the Casix sales and marketing structure to improve the operating and tax efficiency. |
UNAUDITED QUARTERLY FINANCIAL I
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended |
Jun. 29, 2018 | |
UNAUDITED QUARTERLY FINANCIAL INFORMATION | UNAUDITED QUARTERLY FINANCIAL INFORMATION The following table sets forth a summary of the Company’s quarterly financial information for each of the four quarters in the fiscal years ended June 29, 2018 and June 30, 2017: Three Months Ended (in thousands, except per share data) Jun 29, Mar 30, Dec 29, Sep 29, Jun 30, Mar 31, Dec 30, Sep 30, Total revenues $ 345,327 $ 332,313 $ 337,072 $ 357,313 $ 370,454 $ 366,837 $ 351,156 $ 332,043 Gross profit $ 38,981 $ 36,933 $ 37,166 $ 40,332 $ 44,760 $ 44,046 $ 43,046 $ 39,608 Net income $ 22,768 $ 21,053 $ 19,313 $ 21,033 $ 27,401 $ 21,656 $ 25,292 $ 22,766 Basic net income per share: Net income $ 0.62 $ 0.56 $ 0.52 $ 0.56 $ 0.73 $ 0.58 $ 0.69 $ 0.63 Weighted-average shares used in basic net income per share calculations 36,828 37,275 37,477 37,447 37,334 37,116 36,848 36,404 Diluted net income per share: Net income $ 0.60 $ 0.55 $ 0.51 $ 0.55 $ 0.72 $ 0.57 $ 0.67 $ 0.61 Weighted-average shares used in diluted net income per share calculations 37,766 38,055 38,156 38,163 38,118 37,872 37,805 37,330 |
Summary of significant accoun32
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jun. 29, 2018 | |
Principles of consolidation | Principles of consolidation The Company utilizes a 52-53 The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include Fabrinet and its subsidiaries. All inter-company accounts and transactions have been eliminated. On September 14, 2016, the Company acquired Global CEM Solutions, Ltd. and all of its subsidiaries (collectively, “Fabrinet UK”), a privately-held group located in Wiltshire, United Kingdom. The 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 9, Business acquisition for further details on the accounting for this transaction. |
Use of estimates | Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and 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 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. |
Foreign currency transactions and translation | Foreign currency transactions and translation The consolidated financial statements are presented in United States dollars (“$” or “USD”). The functional currency of Fabrinet and most of its subsidiaries is the USD. With respect to subsidiaries that use USD as their functional currency, transactions denominated in a currency other than USD are translated into USD at the rates of exchange in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the consolidated balance sheet dates. Transaction gains and losses are included in foreign exchange gain (loss) in the accompanying consolidated statements of operations and comprehensive income. Fabrinet translates the assets and liabilities of its subsidiaries that do not use USD as their functional currency into USD using exchange rates in effect at the end of each period. Revenue and expenses for such subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation adjustment included in accumulated other comprehensive income (loss) (“AOCI”) in the Company’s consolidated balance sheets. |
Cash and cash equivalents | Cash and cash equivalents All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. Cash and cash equivalents consist of cash deposited in checking accounts, time deposits with maturities of less than three months, money market accounts, and marketable securities with maturities of three months or less at the date of purchase. |
Marketable securities | Marketable securities Management determines the appropriate classification of its investments at the time of purchase and re-evaluates available-for-sale. The Company’s investments in marketable securities are classified as available-for-sale available-for-sale The Company reviews its marketable securities on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issue and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized cost basis. If the Company believes that an other-than-temporary decline exists in one of these securities, the Company will write down these investments to fair value. |
Trade accounts receivable | Trade accounts receivable Accounts receivable are carried at anticipated realizable value. The Company assesses the collectability of its accounts receivable based on specific customer circumstances, current economic trends, historical experience with collection and the age of past due receivables and provides an allowance for doubtful receivables based on a review of all outstanding amounts at the period end. Bad debts are written-off Unanticipated changes in the liquidity or financial position of the Company’s customers may require revision to the allowances for doubtful accounts. |
Inventory | Inventory Inventory is stated at the lower of cost or market value. Cost is estimated using the standard costing method, computed on a first-in, first-out |
Leases | Leases Operating leases Payments made under operating leases are expensed on a straight-line basis over the lease term. Capital lease Certain machine and equipment held under capital leases are classified as property, plant and equipment and amortized using the straight-line method over the terms of the lease contracts. The related obligations from the capital lease are recorded as liabilities in the consolidated balance sheets. |
Property, plant and equipment | Property, plant and equipment Land is stated at historical cost. Other property, plant and equipment, except for construction in process and machinery under installation, are stated at historical cost less accumulated depreciation. Depreciation is calculated using the straight-line method to write-off Land improvements 10 years Building and building improvements 7 - 30 years Leasehold improvements Shorter of useful life or lease term Manufacturing equipment 3 - 7 years Office equipment 3 - 7 years Motor vehicles 3 - 5 years Computer hardware 3 - 5 years Construction in process and machinery under installation is stated at historic cost and depreciation begins after it is constructed and fully installed and is ready for its intended use in the operations of the Company. Gains and losses on disposal are determined by comparing proceeds with carrying amounts and are included in operating income in the consolidated statements of operations and comprehensive income. The Company reviews long-lived assets or asset groups for recoverability on a quarterly basis for any events or changes in circumstances that indicate that their carrying amount may not be recoverable. Recoverability of long-lived assets or asset groups is measured by comparing their carrying amount to the projected undiscounted cash flows that the long-lived assets or asset groups are expected to generate. If such assets are considered to be impaired, the impairment loss recognized, if any, is the amount by which the carrying amount of the property and equipment exceeds its fair value. |
Intangibles | Intangibles Intangibles are stated at historical cost less amortization. Amortization of customer relationships is calculated using the accelerated method as to reflect the pattern in which the economic benefits of the intangible assets are consumed. Amortization of other intangibles is calculated using the straight-line method. Intangible assets are reviewed for impairment quarterly or more frequently whenever changes or circumstances indicate the carrying amount of related assets may not be recoverable. |
Business acquisition | Business acquisition For the acquisition of Fabrinet UK, the Company allocated the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The allocation of consideration to the individual net assets was finalized in the fourth quarter of fiscal year 2017. The acquired intangible assets, which consist of customer relationships and backlog, are recorded as intangibles in the consolidated balance sheets. The fair value of the acquired intangible assets was determined based on the multi-period excess earnings method. The Company reviews intangibles for impairment whenever changes or circumstances indicate the carrying amount may not be recoverable. In connection with the business acquisition, $3.4 million of cash, net of foreign currency translation adjustment, for deferred consideration, was placed into 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. As of June 29, 2018, the cash is presented as restricted cash in the consolidated balance sheets within current assets and the related liability is presented within current liabilities for the deferred consideration. As of June 30, 2017, the cash is presented as restricted cash in the consolidated balance sheets within non-current non-current |
Goodwill | Goodwill Goodwill arising from the acquisition is primarily attributable to the ability to expand future products and services and the assembled workforce. Goodwill is reviewed annually for impairment or more frequently whenever changes or circumstances indicate the carrying amount of goodwill may not be recoverable. |
Treasury shares | Treasury shares Treasury share purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury shares. Gains and losses in excess of par value on the subsequent reissuance of shares are credited or charged to additional paid-in |
Borrowing costs | Borrowing costs Borrowing costs are accounted for on an accrual basis and are charged to the consolidated statements of operations and comprehensive income in the year incurred, except for interest costs on general and specific borrowings attributable to finance certain qualifying assets. Such costs to finance qualifying assets are capitalized during the period of time that is required to complete and prepare the assets for their intended use, as part of the cost of the assets. All other borrowing costs are expensed as incurred. Where funds are not borrowed for a specific acquisition, construction or production of assets, the capitalization rate used to determine the amount of interest to be capitalized is the weighted average interest rate applicable to the Company’s outstanding borrowings during the year. Where funds are borrowed specifically for the acquisition, construction or production of assets, the amount of borrowing costs eligible for capitalization on the respective assets is determined as the actual borrowing costs are incurred on that borrowing during the respective periods. |
Fair value of financial instruments | Fair value of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs for the valuation of an asset or liability as of the measurement date. The three levels of inputs that may be used to measure fair value are defined as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs for similar assets and liabilities in active markets other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 inputs that are significant to the fair value measurement and unobservable (i.e. supported by little or no market activity), which require the reporting entity to develop its own valuation techniques and assumptions. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The carrying amounts of certain financial instruments, which include cash and cash equivalents, trade accounts receivable, and trade accounts payable, approximate their fair values due to their short maturities. The carrying amounts of borrowings approximate their fair values as the applicable interest rate is based on market interest rates. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item. |
Derivatives | Derivatives The derivatives assets and liabilities are recognized on the consolidated balance sheets as other current assets or other current liabilities and are measured at fair value. The Company applies hedge accounting to arrangements that qualify and are designated for cash flow or fair value hedge accounting treatment. Hedge accounting is discontinued prospectively if the hedging relationship ceases to be effective or the hedging or hedged items cease to exist as a result of maturity, sale, termination or cancellation. Derivatives designated and qualifying as hedges of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges which include forward currency contracts. In a cash flow hedging relationship, the effective portion of the change in the fair value of the hedging derivative is initially recorded in AOCI in the consolidated balance sheets, while any ineffective portion is recognized directly in earnings, as a component of foreign exchange gain (loss) in the consolidated statements of operations and comprehensive income. The portion of gain or loss on the derivative instrument remains in AOCI until the forecasted transaction is recognized in earnings. The Company also enters into derivative contracts that are intended to economically hedge certain of the Company’s risks. The changes in the fair value of the derivatives are recorded directly in earnings as a component of foreign exchange gain (loss) in the consolidated statements of operations and comprehensive income. In accordance with the fair value measurement guidance, the Company’s accounting policy is to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company executes derivative instruments with financial institutions that are credit-worthy, which the Company defines as institutions that hold an investment grade credit rating. |
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. |
Revenue recognition | Revenue recognition The Company derives total revenues primarily from the assembly of products under supply agreements with its customers and the fabrication of customized optics and glass. Revenues represent the invoiced value of products, net of trade discounts and allowances, and exclude goods and services tax. The Company recognizes revenues when realized or realizable and earned. The Company considers revenues realized or realizable and earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery does not occur until products have been shipped or services have been provided to the customer, risk of loss has transferred to the customer and customer acceptance has been obtained, customer acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. In situations where a formal acceptance is required but the acceptance only relates to whether the product meets its published specifications, revenues are generally recognized upon shipment provided all other revenue recognition criteria are met. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. The Company reduces revenues for rebates and other similar allowances. Revenues are recognized only if these estimates can be reasonably and reliably determined. The Company bases its estimates utilizing historical results taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for each major category of revenues. Services The Company provides services for its customers that range from process design to product manufacturing. The Company recognizes service revenues when the services have been performed. The related costs are expensed as incurred. Services revenue of $57.1 million, $75.4 million and $31.7 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. Sales of goods Revenues from sales of goods are generally recognized when the product is shipped to the customer and when there are no unfulfilled obligations that affect the customer’s final acceptance of the arrangement. Any cost of warranties and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenues are recognized. Certain customers may request the Company to store finished products purchased by them at the Company’s warehouse. In these instances, the Company receives a written request from the customer asking the Company to hold the inventory at the Company’s warehouse and the ordered goods are segregated in the Company’s warehouse from other inventory and cannot be used to fulfill other customer orders. In these situations, revenue is only recognized when persuasive evidence of the sales arrangement exists, the goods are completed and ready for shipment, pricing is fixed or determinable, collection is reasonably assured, and title and risk of loss have passed to the customer. |
Warranty provision | Warranty provision Provisions for estimated expenses relating to product warranties are made at the time the products are sold using historical experience. Generally, this warranty is limited to workmanship and the Company’s liability is capped at the price of the product. The provisions will be adjusted when experience indicates an expected settlement will differ from initial estimates. (Reversal of) warranty cost allowances of ($0.02 million), $1.0 million and $0.1 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively. |
Shipping and handling costs | Shipping and handling costs The Company records costs related to shipping and handling in cost of revenues for all periods presented. |
Share-based compensation | Share-based compensation Share-based compensation is recognized in the consolidated financial statements based on grant-date fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The Company estimates the fair value of share option awards utilizing the Black-Scholes-Merton option-pricing model (“BSM”), net of estimated forfeitures. For restricted share units and performance share units, the fair values are based on the market value of our ordinary shares on the date of grant. |
Employee contribution plan | Employee contribution plan The Company operates a defined contribution plan, known as a provident fund, in its subsidiaries in Thailand and the United Kingdom. The assets of these plans are in separate trustee-administered funds. The provident fund is funded by matching payments from employees and by the subsidiaries on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (the “401(k) Plan”), a Defined Contribution Plan under ERISA, at its subsidiaries in the United States, which provides retirement benefits for its eligible employees through tax deferred salary deductions. |
Severance liabilities | Severance liabilities Under labor protection laws applicable in Thailand and the Company’s subsidiary in Thailand’s employment policy, all employees of such subsidiary with more than 120 days of service are entitled to severance pay on forced termination or retrenchment or in the event that the employee reaches the retirement age of 55. The entitlement to severance pay is determined according to an employee’s individual employment tenure with the Company and is subject to a maximum benefit of 10 months of salary unless otherwise agreed upon in an employee’s employment contract. For employees of other subsidiaries who have a specific termination date, the entitlement to severance pay is determined according to their employment tenure, until their designated termination date. The Company accounts for these severance liabilities on an actuarial basis using the Projected Unit Credit Method, using the long-term Thai government bond yield as a discount rate. There are no separate plan assets held in respect of these liabilities. |
Annual leave | Annual leave Employee entitlements to annual leave are recognized when they accrue to the employee. On termination of employment, accrued employee entitlement to annual leave is paid in cash. |
Income taxes | Income taxes The Company uses the asset and liability method of accounting for income taxes, whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Fabrinet’s subsidiaries are subject to income tax audits by the respective tax authorities in all of the jurisdictions in which they operate. The determination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations. The Company recognizes liabilities based on its estimate of whether, and the extent to which, additional tax liabilities are more-likely-than-not. The authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of both positive and negative evidence and the relative weight of the evidence. A company shall reduce its deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is “more likely than not” (i.e., a likelihood of greater than 50 percent) that some portion or all of the deferred tax assets will not be realized. The valuation allowance shall be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. The valuation allowance shall be monitored and considered from all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is not needed. The accounting standard clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. The Company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” to be sustained upon examination by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. The accounting interpretation also provides guidance on measurement methodology, derecognition thresholds, financial statement classification and disclosures, recognition of interest and penalties, and accounting for the cumulative-effect adjustment at the date of adoption. |
New Accounting Pronouncements-not yet adopted by the Company | New Accounting Pronouncements—not yet adopted by the Company In 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, as part of its ongoing efforts to assist in the convergence of accounting principles generally accepted in the United States of America (“U.S. GAAP”), the FASB issued ASU 2014-09, 2015-14); 2016-08); 2016-10); 2016-10). 2016-12, “Revenue The Company set up a team for the implementation of the new revenue recognition accounting standard, including hiring of external advisors to help with the implementation efforts of ASC 606, as amended. The Company utilized a comprehensive approach to evaluate the impact of adopting ASC 606 on its contract portfolio by reviewing the current revenue accounting policies and practices to identify differences that would result from applying the new guidance to the revenue contracts on amount and timing of revenue recognition. The Company currently recognizes the majority of its manufacturing revenue when title and risk and rewards of ownership have passed, the price to the buyer is fixed or determinable and recoverability is reasonably assured, which generally is when the goods are shipped. The Company has determined that the new standard will have no substantial changes to its current revenue recognition policy as the Company’s revenues will continue to be recognized at a “point in time” model. However, there will be a portion of revenue contracts that will fall into an “over time” model as the customers take control of the products as they are produced, as opposed to at a “point in time” upon physical delivery. Service revenue will also continue to be recognized at an “over time” model as services are performed. The Company has substantially completed a review of the accounting systems and processes required to apply this new guidance. Additionally, the Company has completed the majority of the assessment phase and documentation of new policies and is currently in the process of adjusting its accounting policies, operational and financial reporting processes, and relevant internal controls and gathering data for the new disclosure requirements. ASC 606 allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements as of the adoption date. The Company will adopt the standard using the modified retrospective approach, effective as of June 30, 2018. |
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—Stock In March 2016, the FASB issued ASU 2016-05, |
Summary of significant accoun33
Summary of significant accounting policies (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Property Plant and Equipment Estimated Useful Life | historical cost less accumulated depreciation. Depreciation is calculated using the straight-line method to write-off Land improvements 10 years Building and building improvements 7 - 30 years Leasehold improvements Shorter of useful life or lease term Manufacturing equipment 3 - 7 years Office equipment 3 - 7 years Motor vehicles 3 - 5 years Computer hardware 3 - 5 years |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Income Tax Expense | The Company’s income tax expense consisted of the following: Years Ended (amount in thousands) June 29, June 30, June 24, Current $ 5,457 $ 5,986 $ 5,053 Deferred (1,595 ) 756 1,282 Total income tax expense $ 3,862 $ 6,742 $ 6,335 |
Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge | The reconciliation between the Company’s taxes that would arise by applying the statutory tax rate of the country of the Company’s principal operations, Thailand, to the Company’s effective tax charge is shown below: Years Ended (amount in thousands) June 29, June 30, June 24, Income before income taxes (1) $ 88,029 $ 103,857 $ 68,232 Tax expense calculated at a statutory corporate income tax rate of 20% 17,606 20,771 13,646 Effect of income taxes from locations with tax rates different from Thailand 2,657 (48 ) (3,309 ) Income not subject to tax (2) (12,824 ) (17,212 ) (10,493 ) Income tax on unremitted earnings 1,007 798 527 Effect of different tax rate in relation to deferred tax utilization 423 — 894 Effect of foreign exchange rate adjustment (134 ) 667 375 Tax rebate from research and development application (454 ) (226 ) (145 ) Provision for uncertain income tax position 277 260 214 Utilization of loss carryforward (3,224 ) — — (Reversal of) valuation allowance (3) (1,587 ) 1,517 4,882 Others 115 215 (256 ) Corporate income tax expense $ 3,862 $ 6,742 $ 6,335 (1) Income before income taxes was mostly generated from domestic income in the Cayman Islands. (2) Income not subject to tax relates to income earned in the Cayman Islands and income subject to an investment promotion privilege for Pinehurst Building 6. Income not subject to tax per ordinary share on a diluted basis was $0.34, $0.45, and $0.28 for the years ended June 29, 2018, June 30, 2017, and June 24, 2016, respectively. (3) As of June 29, 2018, the Company reversed valuation allowances of deferred tax assets of $5.2 million. The reversal was affected by utilization of deferred tax assets from loss carryforward of $3.2 million and effect of different tax rate in relation to deferred tax utilization of $0.4 million which have been separately presented in another line items. |
Deferred Tax Assets and Deferred Tax Liabilities, Net of Valuation Allowance | The Company’s deferred tax assets and deferred tax liabilities, net of valuation allowance, at each balance sheet date are as follows: As of (amount in thousands) June 29, June 30, Deferred tax assets: Depreciation $ 2,151 $ 1,674 Severance liability 1,518 1,127 Reserves and allowance 1,545 1,046 Net operating loss carryforwards 1,228 496 Others 277 10 Total $ 6,719 $ 4,353 As of (amount in thousands) June 29, June 30, Deferred tax liabilities: Temporary differences from intangibles and changes in the fair value of assets acquired $ (860 ) $ (944 ) Deferred tax from unremitted earnings (2,863 ) (2,485 ) Total (3,723 ) (3,429 ) Net $ 2,996 $ 924 |
Summary of Change in Valuation Allowances of Deferred Tax Assets | The changes in the valuation allowances of deferred tax assets were as follows: (amount in thousands) Valuation allowances of Balance as of June 24, 2016 $ 4,882 Additional 1,517 Balance as of June 30, 2017 6,399 Reversal (5,234 ) Balance as of June 29, 2018 $ 1,165 |
Changes to Unrecognized Tax Benefits | The following table indicates the changes to the Company’s uncertain income tax positions for the years ended June 29, 2018, June 30, 2017 and June 24, 2016 included in other non-current Years Ended (amount in thousands) June 29, June 30, June 24, Beginning balance $ 1,420 $ 1,420 $ 1,420 Additions during the year 25 — — Reductions for tax positions of prior years — — — Ending balance $ 1,445 $ 1,420 $ 1,420 |
Earnings per ordinary share (Ta
Earnings per ordinary share (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Earnings Per Ordinary Share | The earnings per ordinary share was calculated as follows: Years Ended (amount in thousands except per share amounts) June 29, June 30, June 24, Net income attributable to shareholders $ 84,167 $ 97,115 $ 61,897 Weighted-average number of ordinary shares outstanding (thousands of shares) 37,257 36,927 35,857 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares) 778 925 1,015 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 38,035 37,852 36,872 Basic earnings per ordinary share $ 2.26 $ 2.63 $ 1.73 Diluted earnings per ordinary share $ 2.21 $ 2.57 $ 1.68 |
Cash, cash equivalents and ma36
Cash, cash equivalents and marketable securities (Tables) | 12 Months Ended |
Jun. 29, 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 June 29, 2018 Cash $ 146,778 $ — $ 146,778 $ — Cash equivalents 11,324 — 11,324 — Corporate bonds and commercial papers 128,441 (736 ) — 127,705 U.S. agency and U.S. treasury securities 43,734 (324 ) — 43,410 Sovereign and municipal securities 3,185 (31 ) — 3,154 Total $ 333,462 $ (1,091 ) $ 158,102 $ 174,269 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 Fair Value Due within one year $ 28,216 $ 28,193 Due between one to three years 147,144 146,076 Total $ 175,360 $ 174,269 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jun. 29, 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 (amount in thousands) Level 1 Level 2 Level 3 Total As of June 29, 2018 Assets Cash equivalents $ — $ 11,324 $ — $ 11,324 Corporate bonds and commercial papers — 127,705 — 127,705 U.S. agency and U.S. treasury securities — 43,410 — 43,410 Sovereign and municipal securities — 3,154 — 3,154 Derivative assets — — — — Total $ — $ 185,593 $ — $ 185,593 Liabilities Derivative liabilities $ — $ 1,745 (1) $ — $ 1,745 Total $ — $ 1,745 $ — $ 1,745 Fair Value Measurements at Reporting Date (amount in thousands) Level 1 Level 2 Level 3 Total As of June 30, 2017 Assets Cash equivalents $ — $ 2,585 $ — $ 2,585 Corporate bonds and commercial papers — 98,274 — 98,274 U.S. agency and U.S. treasury securities — 50,666 — 50,666 Sovereign and municipal securities — 2,510 — 2,510 Derivative assets — 15 (2) — 15 Total $ — $ 154,050 $ — $ 154,050 Liabilities Derivative liabilities $ — $ — $ — $ — Total $ — $ — $ — $ — (1) Foreign currency forward contracts with notional amount of $7.0 million and Canadian dollars 0.4 million. Foreign currency option contracts with notional amount of $30.0 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) | 12 Months Ended |
Jun. 29, 2018 | |
Trade Accounts Receivable, Net | (amount in thousands) As of June 29, As of June 30, Trade accounts receivable $ 246,972 $ 264,389 Less: Allowance for doubtful account (60 ) (40 ) Trade accounts receivable, net $ 246,912 $ 264,349 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Inventories | (amount in thousands) As of June 29, As of June 30, Raw materials $ 100,241 $ 88,640 Work in progress 121,797 105,732 Finished goods 20,690 33,998 Goods in transit 17,516 13,025 260,244 241,395 Less: Inventory obsolescence (2,557 ) (2,730 ) Inventory, net $ 257,687 $ 238,665 |
Business acquisition (Tables)
Business acquisition (Tables) | 12 Months Ended |
Jun. 29, 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 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 |
Fair Value of Identified Intangible Assets | Risk free rate: 30-year Long-term revenue growth: 5.0% - 8.0% Churn rate: 10% Operating margin: 4.0% - 6.0% |
Property, plant and equipment41
Property, plant and equipment, net (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Property, Plant and Equipment Net | The components of property, plant and equipment, net were as follows: (amount in thousands) Land and Building and Building Manufacturing Office Motor Computers Construction Total As of June 29, 2018 Cost $ 45,080 $ 139,342 $ 141,869 $ 7,582 $ 456 $ 21,250 $ 8,762 $ 364,341 Less: Accumulated depreciation (6 ) (38,265 ) (86,989 ) (4,454 ) (334 ) (14,653 ) — (144,701 ) Net book value $ 45,074 $ 101,077 $ 54,880 $ 3,128 $ 122 $ 6,597 $ 8,762 $ 219,640 As of June 30, 2017 Cost $ 39,096 $ 138,578 $ 127,085 $ 7,688 $ 534 $ 19,642 $ 6,058 $ 338,681 Less: Accumulated depreciation (2 ) (31,881 ) (72,130 ) (4,163 ) (376 ) (13,248 ) — (121,800 ) Net book value $ 39,094 $ 106,697 $ 54,955 $ 3,525 $ 158 $ 6,394 $ 6,058 $ 216,881 |
Leased Assets Under Capital Lease Agreements | Leased assets included above comprise certain machine and equipment from capital lease agreements assumed from the acquisition of Fabrinet UK. (amount in thousands) As of June 29, 2018 As of June 30, 2017 Cost—Capital leases $ 2,481 2,725 Less: Accumulated depreciation (1,043 ) (856 ) Net book value $ 1,438 1,869 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Intangibles | The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated Foreign Net As of June 29, 2018 Software $ 6,269 $ (4,324 ) $ — $ 1,945 Customer relationships 4,373 (1,413 ) (42 ) 2,918 Backlog 119 (101 ) (1 ) 17 Total intangibles $ 10,761 $ (5,838 ) $ (43 ) $ 4,880 (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 |
Estimated Future Amortization of intangibles | As of June 29, 2018, the estimated future amortization of intangible assets during each fiscal year was as follows: (amount in thousand) 2019 $ 1,462 2020 1,038 2021 892 2022 657 2023 400 Thereafter 431 Total $ 4,880 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows: (amount in thousands) Goodwill Balance as of June 30, 2017 $ 3,806 Foreign currency translation adjustment 22 Balance as of June 29, 2018 $ 3,828 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Total Borrowings, Including Revolving and Long-Term Borrowings | The Company’s total borrowings, including short-term and long-term borrowings, consisted of the following: ( dollars in thousands Rate (1) Conditions Maturity As of June 29, 2018 As of June 30, 2017 Short-term borrowings: Revolving borrowing: LIBOR + 1.75% per annum Repayable in 1 to 6 months July 2017 (2) $ — $ 34,000 Short-term borrowings from bank: Bank of England base rate +1.85% per annum Repayable based on credit terms of secured — 1,003 Current portion of long-term borrowings 3,250 13,600 3,250 48,603 Less: Unamortized debt issuance costs — (201 ) $ 3,250 $ 48,402 Long-term borrowings: Term loan borrowing: LIBOR + 1.75% per annum Repayable in quarterly installments May 2019 (2) $ — $ 36,400 LIBOR + 1.50% per annum Repayable in quarterly installments June 2023 (2) 64,188 — 64,188 36,400 Less: (3,250 ) (13,600 ) Less: — (99 ) Non-current $ 60,938 $ 22,701 (1) LIBOR is London Interbank Offered Rate. (2) In June 2018, the outstanding revolving and term loan borrowings were refinanced to one term loan borrowing and the maturity dates were extended from July 2017 and May 2019 to June 2023. |
Movements of Long-Term Loans | The movements of long-term borrowings were as follows for the years ended June 29, 2018 and June 30, 2017: Years ended (amount in thousands) June 29, 2018 June 30, 2017 Opening net book amount $ 36,400 $ 54,500 Additional loan during the period 39,000 — Repayment during the period (11,212 ) (18,100 ) Closing net book amount $ 64,188 $ 36,400 |
Future Maturities of Long-Term Debt | As of June 29, 2018, the future maturities of long-term borrowings during each fiscal year were as follows: (amount in thousand) 2019 $ 3,250 2020 3,250 2021 3,250 2022 3,250 2023 51,188 Total $ 64,188 |
Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing | Undrawn available credit facilities classified by available period of future borrowing as of June 29, 2018 and June 30, 2017 were as follows: (amount in thousands) June 29, 2018 June 30, 2017 Expiring within one year $ — $ 1,965 Expiring beyond one year $ 25,000 $ 116,000 |
Severance liabilities (Tables)
Severance liabilities (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Severance Liabilities | The following table provides information regarding severance liabilities: (amount in thousands) As of June 29, As of June 30, Balance, beginning of the fiscal year $ 8,488 $ 6,684 Charged to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income 1,674 1,804 Balance, end of the fiscal year $ 10,162 $ 8,488 |
Severance Liabilities Recognized in Balance Sheet | The amount recognized in the consolidated balance sheets under non-current (amount in thousands) As of June 29, As of June 30, Present value of defined benefit obligation $ 10,162 $ 8,488 Total $ 10,162 $ 8,488 |
Severance Liabilities Recognized in Statements of Operations and Comprehensive Income | The amount recognized in the consolidated statements of operations and comprehensive income was as follows: Years Ended (amount in thousands) June 29, June 30, June 24, Current service cost $ 1,751 $ 1,451 $ 842 Interest cost 295 213 203 Benefit paid (3,212 ) — (11 ) Curtailment gain 707 — — Actuarial loss on obligation 2,133 140 173 Total $ 1,674 $ 1,804 $ 1,207 |
Principal Actuarial Assumptions Used | The principal actuarial assumptions used were as follows: Years Ended June 29, 2018 June 30, 2017 June 24, 2016 Discount rate 2.5% - 3.7% 1.93% - 3.6% 2.0% - 3.2% Future salary increases 3.5% - 10.0% 3.5% - 10.0% 4.1% - 10.0% |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Effect of Recording Share-Based Compensation Expense | The effect of recording share-based compensation expense for the years ended June 29, 2018, June 30, 2017 and June 24, 2016 was as follows: Years Ended (amount in thousands) June 29, June 30, June 24, Share-based compensation expense by type of award: Share options $ — $ — $ 16 Restricted share units 17,143 22,412 9,911 Performance share units 5,438 4,095 — Total share-based compensation expense 22,581 26,507 9,927 Tax effect on share-based compensation expense — — — Net effect on share-based compensation expense $ 22,581 $ 26,507 $ 9,927 |
Share-Based Compensation Expense Recorded in Consolidated Statements of Operations and Comprehensive Income | Share-based compensation expense was recorded in the consolidated statements of operations and comprehensive income as follows: Years Ended (amount in thousands) June 29, June 30, June 24, Cost of revenue $ 6,784 $ 5,318 $ 1,979 Selling, general and administrative expense 15,797 21,189 7,948 Total share-based compensation expense $ 22,581 $ 26,507 $ 9,927 |
Share Option Activity | The following table summarizes share option activity: Number of Shares Number of Weighted- Weighted- Balance as of June 26, 2015 792,019 758,451 $ 16.33 Granted — — — Exercised (325,530 ) $ 16.83 Forfeited (755 ) $ 17.10 Expired (1,400 ) $ 23.62 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 June 30, 2017 96,688 96,688 $ 15.70 Granted — — — Exercised (92,288 ) $ 15.56 Forfeited — — Expired (1,500 ) $ 25.50 Balance as of June 29, 2018 2,900 2,900 $ 15.16 Expected to vest as of June 29, 2018 2,900 $ 15.16 |
Information for Share Options Outstanding | The following table summarizes information for share options outstanding as of June 29, 2018: Number of Exercise Price Per Weighted Average Aggregate (amount in thousands) 2,900 $ 15.16 0.13 Options outstanding 2,900 0.13 $ 63 Options exercisable 2,900 0.13 $ 63 Expected to vest as of June 29, 2018 2,900 0.13 $ 63 |
Restricted Share Unit Activity | The following table summarizes restricted share unit activity under the 2010 Plan and 2017 Inducement Plan: Number of Weighted- Balance as of June 26, 2015 1,140,927 $ 16.03 Granted 654,589 $ 21.15 Issued (507,621 ) $ 15.60 Forfeited (106,493 ) $ 18.34 Balance as of June 24, 2016 1,181,402 $ 18.34 Granted 861,356 $ 38.95 Issued (853,535 ) $ 21.16 Forfeited (130,618 ) $ 29.31 Balance as of June 30, 2017 1,058,605 $ 31.59 Granted 552,637 $ 35.95 Issued (436,867 ) $ 27.81 Forfeited (100,795 ) $ 33.62 Balance as of June 29, 2018 1,073,580 $ 35.19 Expected to vest as of June 29, 2018 1,012,791 $ 34.87 |
Performance Share Unit Activity | The following table summarizes performance share unit activity under the 2010 Plan and 2017 Inducement Plan: Number of Shares Weighted- Per Share Balance as of June 24, 2016 — — Granted 234,678 $ 40.48 Issued — — Forfeited (7,410 ) — Balance as of June 30, 2017 227,268 $ 40.48 Granted 378,624 $ 37.16 Issued — — Forfeited — — Balance as of June 29, 2018 605,892 $ 38.41 Expected to vest as of June 29, 2018 285,280 $ 33.98 |
Accumulated other comprehensi47
Accumulated other comprehensive income (loss) (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Changes in AOCI, Net of Tax | The changes in AOCI by component for the years ended June 29, 2018 and June 30, 2017 were as follows: (amount in thousands) Unrealized net (Losses)/Gains on Marketable Securities Unrealized net (Losses)/Gains Instruments Foreign Total Balance as of June 24, 2016 $ 399 $ 192 $ — $ 591 Other comprehensive income before reclassification 351 — (310 ) 41 Amounts reclassified from AOCI (822 ) (158 ) — (980 ) Tax effects — — — — Other comprehensive income (471 ) (158 ) (310 ) (939 ) Balance as of June 30, 2017 (72 ) 34 (310 ) (348 ) Other comprehensive income before reclassification (655 ) — 111 (544 ) Amounts reclassified from AOCI (364 ) (1 ) — (365 ) Tax effects — — — — Other comprehensive income (1,019 ) (1 ) 111 (909 ) Balance as of June 29, 2018 $ (1,091 ) $ 33 $ (199 ) $ (1,257 ) |
Pre-tax Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations and Comprehensive Income | The following table presents the pre-tax Years ended AOCI components Financial statements line item June 29, June 30, Unrealized losses on marketable securities Interest income $ (364 ) $ (822 ) Unrealized gains on derivative instruments Selling, general and administrative expenses (1 ) (158 ) Total amounts reclassified from AOCI $ (365 ) $ (980 ) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases | As of June 29, 2018, the future minimum lease payments due under non-cancelable (amount in thousands) 2019 $ 1,263 2020 943 2021 542 2022 427 Thereafter 456 Total future minimum operating lease payments $ 3,631 |
Future Minimum Lease Payments Under Non-Cancelable Capital Leases | As of June 29, 2018, the future minimum lease payments under non-cancelable (amount in thousands) 2019 $ 481 2020 424 2021 106 Total minimum capital lease payments 1,011 Less: Future finance charge on capital leases (44 ) Present value of capital lease $ 967 (amount in thousands) 2019 $ 451 2020 411 2021 105 Total future minimum capital lease payments $ 967 |
Capital Lease Liabilities | Representing capital lease liabilities Current $ 451 Non-current 516 Total capital lease liabilities $ 967 |
Business segments and geograp49
Business segments and geographic information (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Total Revenues by Geographic Regions | The Company operates primarily in three geographic regions: North America, Asia-Pacific and Europe. The following table presents total revenues by geographic regions: Years Ended (amount in thousands) June 29, June 30, June 24, North America $ 643,236 $ 661,267 $ 525,161 Asia-Pacific 519,203 539,317 351,033 Europe 209,486 219,906 100,553 Total $ 1,371,925 $ 1,420,490 $ 976,747 |
Revenues by End Market | The following table presents revenues by end market: Years Ended (amount in thousands) June 29, June 30, June 24, Optical communications $ 1,000,256 $ 1,108,637 $ 727,580 Lasers, sensors, and other 371,669 311,853 249,167 Total $ 1,371,925 $ 1,420,490 $ 976,747 |
Total Revenues by Percentage from Individual Customers Representing Ten Percent or More of Total Revenues | Total revenues, by percentage, from individual customers representing 10% or more of total revenues in the respective periods were as follows: Years Ended June 29, June 30, June 24, Lumentum Operations LLC 16 % 17 % 20 % |
Accounts Receivable from Individual Customers Representing Ten Percent or More of Accounts Receivable | Accounts receivable from individual customers representing 10% or more of accounts receivable as of June 29, 2018 and June 30, 2017, respectively, were as follows: As of June 29, As of June 30, Lumentum Operations LLC 18 % 15 % NeoPhotonics Corporation 11 % 12 % Acacia Communications Inc. * 10 % * Represents less than 10% of total accounts receivable. |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Jun. 29, 2018 | |
Outstanding Foreign Currency Assets and Liabilities | As of June 29, 2018 and June 30, 2017, the Company had outstanding foreign currency assets and liabilities as follows: As of June 29, 2018 As of June 30, 2017 (amount in thousands) Currency $ Currency $ Assets Thai baht 980,778 $ 29,568 395,123 $ 11,628 RMB 18,455 2,789 26,965 3,980 GBP 12,514 16,392 6,896 8,982 Total $ 48,749 $ 24,590 Liabilities Thai baht 1,401,473 $ 42,251 1,875,338 $ 55,189 RMB 19,893 3,007 28,451 4,200 GBP 3,615 4,735 5,625 7,326 Total $ 49,993 $ 66,715 |
Property Plant and Equipment Es
Property Plant and Equipment Estimated Useful Life (Detail) | 12 Months Ended |
Jun. 29, 2018 | |
Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 10 years |
Building and Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 7 years |
Building and Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 30 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements | Shorter of useful life or lease term |
Manufacturing Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 3 years |
Manufacturing Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 7 years |
Office Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 3 years |
Office Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 7 years |
Motor Vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 3 years |
Motor Vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 5 years |
Computers | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 3 years |
Computers | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment estimated useful life | 5 years |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | Sep. 14, 2016 | |
Accounting Policies [Line Items] | ||||
Restricted cash in connection with business acquisition | $ 3,312,000 | |||
Services revenue recognized | $ 57,100,000 | 75,400,000 | $ 31,700,000 | |
(Reversal of) warranty cost allowances | (20,000) | 1 | $ 0.1 | |
Restricted cash in connection with business acquisition | $ 3,300,000 | $ 3,300,000 | ||
Global CEM Solutions, Ltd. | ||||
Accounting Policies [Line Items] | ||||
Restricted cash in connection with business acquisition | $ 3,400,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | ||
Income Taxes [Line Items] | |||||
Exempted income from corporate income tax | [1] | $ 12,824 | $ 17,212 | $ 10,493 | |
Corporate income tax rate | 20.00% | 20.00% | 20.00% | ||
Deferred tax liabilities | $ 2,863 | $ 2,485 | |||
Accrued interest and penalties related to uncertain tax positions | 900 | 600 | |||
Recorded (reversed) interest and penalties | 300 | 300 | $ 200 | ||
Subsidiary | |||||
Income Taxes [Line Items] | |||||
Income tax expenses | (100) | ||||
Deferred tax assets | $ 400 | ||||
Cayman Islands | |||||
Income Taxes [Line Items] | |||||
Tax exemption period | 20 years | ||||
Tax exemption renewal period | 20 years | ||||
Exempted income from corporate income tax | $ 58,400 | 64,200 | $ 41,000 | ||
Thailand | |||||
Income Taxes [Line Items] | |||||
Reduced corporate Income Tax rate | 20.00% | ||||
Period income earned from operation of Building 6 is not subject to tax | 8 years | ||||
Unremitted earnings | 102,500 | 97,300 | |||
Unrecognized deferred tax liabilities | 5,800 | 5,200 | |||
Deferred tax liabilities | $ 1,000 | $ 800 | |||
Thailand | From fiscal year 2017 onwards | |||||
Income Taxes [Line Items] | |||||
Corporate income tax rate | 20.00% | ||||
China | |||||
Income Taxes [Line Items] | |||||
Corporate income tax rate | 25.00% | ||||
UNITED STATES | |||||
Income Taxes [Line Items] | |||||
Corporate income tax rate | 21.00% | ||||
UNITED STATES | Subsidiary | |||||
Income Taxes [Line Items] | |||||
Corporate income tax rate | 27.60% | ||||
UNITED STATES | Subsidiary | Scenario, Forecast | |||||
Income Taxes [Line Items] | |||||
Corporate income tax rate | 21.00% | ||||
United Kingdom | Subsidiary | |||||
Income Taxes [Line Items] | |||||
Corporate income tax rate | 19.00% | ||||
[1] | Income not subject to tax relates to income earned in the Cayman Islands and income subject to an investment promotion privilege for Pinehurst Building 6. Income not subject to tax per ordinary share on a diluted basis was $0.34, $0.45, and $0.28 for the years ended June 29, 2018, June 30, 2017, and June 24, 2016, respectively. |
Income Tax Expense (Detail)
Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Income Taxes [Line Items] | |||
Current | $ 5,457 | $ 5,986 | $ 5,053 |
Deferred | (1,595) | 756 | 1,282 |
Corporate income tax expense | $ 3,862 | $ 6,742 | $ 6,335 |
Reconciliation between Taxes th
Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | ||
Reconciliation of Effective Income Tax Rate [Line Items] | ||||
Income before income taxes | [1] | $ 88,029 | $ 103,857 | $ 68,232 |
Tax expense calculated at a statutory corporate income tax rate of 20% | 17,606 | 20,771 | 13,646 | |
Effect of income taxes from locations with tax rates different from Thailand | 2,657 | (48) | (3,309) | |
Income not subject to tax | [2] | (12,824) | (17,212) | (10,493) |
Income tax on unremitted earnings | 1,007 | 798 | 527 | |
Effect of different tax rate in relation to deferred tax utilization | 423 | 894 | ||
Effect of foreign exchange rate adjustment | (134) | 667 | 375 | |
Tax rebate from research and development application | (454) | (226) | (145) | |
Provision for uncertain income tax position | 277 | 260 | 214 | |
Utilization of loss carryforward | (3,224) | |||
(Reversal of) valuation allowance | [3] | (1,587) | 1,517 | 4,882 |
Others | 115 | 215 | (256) | |
Corporate income tax expense | $ 3,862 | $ 6,742 | $ 6,335 | |
[1] | Income before income taxes was mostly generated from domestic income in the Cayman Islands. | |||
[2] | Income not subject to tax relates to income earned in the Cayman Islands and income subject to an investment promotion privilege for Pinehurst Building 6. Income not subject to tax per ordinary share on a diluted basis was $0.34, $0.45, and $0.28 for the years ended June 29, 2018, June 30, 2017, and June 24, 2016, respectively. | |||
[3] | As of June 29, 2018, the Company reversed valuation allowances of deferred tax assets of $5.2 million. The reversal was affected by utilization of deferred tax assets from loss carryforward of $3.2 million and effect of different tax rate in relation to deferred tax utilization of $0.4 million which have been separately presented in another line items. |
Reconciliation between Taxes 56
Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Reconciliation of Effective Income Tax Rate [Line Items] | |||
Tax calculated at a corporate income tax rate, rate | 20.00% | 20.00% | 20.00% |
Income (loss) not subject to tax per ordinary share on a diluted basis | $ 0.34 | $ 0.45 | $ 0.28 |
Valuation allowances of deferred tax assets reversal | $ 5,200 | ||
Utilization of loss carryforward | 3,224 | ||
Effect of different tax rate in relation to deferred tax utilization | $ 423 | $ 894 |
Deferred Tax Assets and Deferre
Deferred Tax Assets and Deferred Tax Liabilities, Net of Valuation Allowance (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Deferred tax assets: | ||
Depreciation | $ 2,151 | $ 1,674 |
Severance liability | 1,518 | 1,127 |
Reserves and allowance | 1,545 | 1,046 |
Net operating loss carryforwards | 1,228 | 496 |
Others | 277 | 10 |
Total | 6,719 | 4,353 |
Deferred tax liabilities: | ||
Temporary differences from intangibles and changes in the fair value of assets acquired | (860) | (944) |
Deferred tax from unremitted earnings | (2,863) | (2,485) |
Total | (3,723) | (3,429) |
Net deferred income tax assets | $ 2,996 | $ 924 |
Summary of Change in Valuation
Summary of Change in Valuation Allowances of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Reconciliation Of Nol Deferred Tax Assets Valuation Allowance [Line Items] | ||
Beginning Balance | $ 6,399 | $ 4,882 |
Reversal | (5,234) | |
Additional | 1,517 | |
Ending Balance | $ 1,165 | $ 6,399 |
Changes to Unrecognized Tax Ben
Changes to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Income Tax Contingency [Line Items] | |||
Beginning balance | $ 1,420 | $ 1,420 | $ 1,420 |
Additions during the year | 25 | ||
Reductions for tax positions of prior years | 0 | 0 | 0 |
Ending balance | $ 1,445 | $ 1,420 | $ 1,420 |
Earnings Per Ordinary Share (De
Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income attributable to shareholders | $ 22,768 | $ 21,053 | $ 19,313 | $ 21,033 | $ 27,401 | $ 21,656 | $ 25,292 | $ 22,766 | $ 84,167 | $ 97,115 | $ 61,897 |
Weighted-average number of ordinary shares outstanding (thousands of shares) | 36,828 | 37,275 | 37,477 | 37,447 | 37,334 | 37,116 | 36,848 | 36,404 | 37,257 | 36,927 | 35,857 |
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares) | 778 | 925 | 1,015 | ||||||||
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) | 37,766 | 38,055 | 38,156 | 38,163 | 38,118 | 37,872 | 37,805 | 37,330 | 38,035 | 37,852 | 36,872 |
Basic earnings per ordinary share | $ 0.62 | $ 0.56 | $ 0.52 | $ 0.56 | $ 0.73 | $ 0.58 | $ 0.69 | $ 0.63 | $ 2.26 | $ 2.63 | $ 1.73 |
Diluted earnings per ordinary share | $ 0.60 | $ 0.55 | $ 0.51 | $ 0.55 | $ 0.72 | $ 0.57 | $ 0.67 | $ 0.61 | $ 2.21 | $ 2.57 | $ 1.68 |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 |
Cash, cash equivalents and marketable securities [Line Items] | |||
Cash and cash equivalents and Marketable securities, Carrying Cost | $ 333,462 | $ 285,347 | |
Marketable securities, Unrealized Gain (Loss) | (1,091) | (72) | |
Cash and cash equivalents | 158,102 | 133,825 | $ 142,804 |
Marketable securities | 174,269 | 151,450 | |
Cash | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Carrying Cost | 146,778 | 131,240 | |
Cash and cash equivalents | 146,778 | 131,240 | |
Cash Equivalents | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Carrying Cost | 11,324 | 2,585 | |
Cash and cash equivalents | 11,324 | 2,585 | |
Corporate bonds and commercial papers | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Marketable securities, Carrying cost | 128,441 | 98,247 | |
Marketable securities, Unrealized Gain (Loss) | (736) | 27 | |
Marketable securities | 127,705 | 98,274 | |
U.S. agency and U.S. treasury securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Marketable securities, Carrying cost | 43,734 | 50,768 | |
Marketable securities, Unrealized Gain (Loss) | (324) | (102) | |
Marketable securities | 43,410 | 50,666 | |
Sovereign And Municipal Securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Marketable securities, Carrying cost | 3,185 | 2,507 | |
Marketable securities, Unrealized Gain (Loss) | (31) | 3 | |
Marketable securities | $ 3,154 | $ 2,510 |
Cash, Cash Equivalents and Ma62
Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Cash, cash equivalents and marketable securities [Line Items] | ||
Effective interest rate on short term bank deposits | 0.80% | 0.60% |
Percentage of cash and cash equivalents held by parent company | 49.00% | 66.00% |
Net realized loss from changes in fair value of marketable securities | $ 400,000 | |
Impairment losses | 0 | $ 0 |
Bank deposit held in various financial institutions | $ 40,000,000 | $ 40,000,000 |
Available-for-Sale Securities B
Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Investments Classified by Contractual Maturity Date [Line Items] | ||
Total | $ 174,269 | $ 151,450 |
Fair Value | ||
Investments Classified by Contractual Maturity Date [Line Items] | ||
Due within one year | 28,193 | |
Due between one to three years | 146,076 | |
Total | 174,269 | |
Carrying Cost | ||
Investments Classified by Contractual Maturity Date [Line Items] | ||
Due within one year | 28,216 | |
Due between one to three years | 147,144 | |
Total | $ 175,360 |
Financial Instruments Measured
Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 | |
Assets | |||
Derivative assets | $ 15 | ||
Total | $ 185,593 | 154,050 | |
Liabilities | |||
Derivative liabilities | 1,745 | ||
Total | 1,745 | ||
Cash Equivalents | |||
Assets | |||
Marketable securities | 11,324 | 2,585 | |
Corporate bonds and commercial papers | |||
Assets | |||
Marketable securities | 127,705 | 98,274 | |
U.S. agency and U.S. treasury securities | |||
Assets | |||
Marketable securities | 43,410 | 50,666 | |
Sovereign And Municipal Securities | |||
Assets | |||
Marketable securities | 3,154 | 2,510 | |
Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Derivative assets | [1] | 15 | |
Total | 185,593 | 154,050 | |
Liabilities | |||
Derivative liabilities | [2] | 1,745 | |
Total | 1,745 | ||
Significant Other Observable Inputs (Level 2) | Cash Equivalents | |||
Assets | |||
Marketable securities | 11,324 | 2,585 | |
Significant Other Observable Inputs (Level 2) | Corporate bonds and commercial papers | |||
Assets | |||
Marketable securities | 127,705 | 98,274 | |
Significant Other Observable Inputs (Level 2) | U.S. agency and U.S. treasury securities | |||
Assets | |||
Marketable securities | 43,410 | 50,666 | |
Significant Other Observable Inputs (Level 2) | Sovereign And Municipal Securities | |||
Assets | |||
Marketable securities | $ 3,154 | $ 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 $7.0 million and Canadian dollars 0.4 million. Foreign currency option contracts with notional amount of $30.0 million. |
Financial Instruments Measure65
Financial Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Fair Value, Measurements, Recurring $ in Millions, $ in Millions | Jun. 29, 2018USD ($) | Jun. 29, 2018CAD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017CAD ($) |
Foreign currency forward contracts | ||||
Fair Value Measurements at Reporting Date Using | ||||
Derivative liabilities, notional amount | $ 7 | $ 0.4 | ||
Derivative assets, notional amount | $ 1 | $ 0.6 | ||
Foreign currency option contracts | ||||
Fair Value Measurements at Reporting Date Using | ||||
Derivative liabilities, notional amount | $ 30 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) | 12 Months Ended | ||||
Jun. 29, 2018USD ($)Contract | Jun. 30, 2017USD ($)Contract | Jun. 24, 2016USD ($) | Jun. 29, 2018CAD ($)Contract | Jun. 30, 2017CAD ($)Contract | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Unrealized gain (loss) on derivatives | $ (4,222,000) | $ (1,884,000) | $ (1,905,000) | ||
Foreign currency forward contracts | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Derivative liabilities | $ 1,700,000 | ||||
Derivative assets | $ 20,000 | ||||
Foreign currency forward contracts | Non designated | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Number of forward contracts outstanding | Contract | 5 | 2 | 5 | 2 | |
Derivative notional amount | $ 7,000,000 | $ 1,000,000 | $ 400,000 | $ 600,000 | |
Unrealized gain (loss) on derivatives | $ (1,700,000) | $ 20,000 | |||
Foreign currency forward contracts | Non designated | Canada, Dollars | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Number of forward contracts outstanding | Contract | 1 | 1 | |||
Foreign currency forward contracts | Non designated | Minimum | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Derivative maturity period | 2018-07 | 2017-07 | |||
Foreign currency forward contracts | Non designated | Maximum | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Derivative maturity period | 2018-10 | 2017-09 | |||
Foreign currency forward contracts | Cash Flow Hedging | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Gain recognized from discontinued cash flow hedges | $ 300,000 | ||||
Number of forward contracts outstanding | Contract | 0 | 0 | 0 | 0 | |
Foreign currency option contracts | Non designated | |||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||
Number of forward contracts outstanding | Contract | 4 | 4 | |||
Derivative notional amount | $ 30,000,000 |
Trade Accounts Receivable, Ne67
Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 246,972 | $ 264,389 |
Less: Allowance for doubtful account | (60) | (40) |
Trade accounts receivable, net | $ 246,912 | $ 264,349 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 100,241 | $ 88,640 |
Work in progress | 121,797 | 105,732 |
Finished goods | 20,690 | 33,998 |
Goods in transit | 17,516 | 13,025 |
Inventory, Gross, Total | 260,244 | 241,395 |
Less: Inventory obsolescence | (2,557) | (2,730) |
Inventory, net | $ 257,687 | $ 238,665 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) - USD ($) | Sep. 14, 2016 | Jun. 29, 2018 | Jun. 29, 2018 | Jun. 30, 2017 |
Business Acquisition [Line Items] | ||||
Total cash consideration, net of cash acquired | $ 9,917,000 | |||
Restricted cash in connection with business acquisition | 3,312,000 | |||
Foreign currency translation adjustment | $ 111,000 | (310,000) | ||
Goodwill | $ 3,828,000 | 3,828,000 | 3,806,000 | |
Capital lease assets | 1,438,000 | 1,438,000 | 1,869,000 | |
Capital lease liability | 967,000 | 967,000 | ||
Transaction costs related to acquisition | 0 | |||
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 | |||
Foreign currency translation adjustment | 100,000 | |||
Goodwill | 3,883,000 | 3,800,000 | ||
Deferred tax liabilities | 1,148,000 | 1,200,000 | ||
Capital lease assets | 1,400,000 | 1,400,000 | ||
Capital lease liability | $ 1,000,000 | 1,000,000 | ||
Global CEM Solutions, Ltd. | Backlog | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 100,000 | |||
Estimated useful life | 3 years | |||
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. | Scenario, Previously Reported | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,700,000 | 3,900,000 | ||
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 | Jun. 30, 2017 | Jun. 29, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,806 | $ 3,828 | |
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 | 3,800 | |
Other non-current assets | 516 | ||
Current liabilities | (6,796) | ||
Deferred tax liabilities | (1,148) | $ (1,200) | |
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 |
Fair Value of Identified Intang
Fair Value of Identified Intangible Assets (Detail) - Identified Intangible Assets | 12 Months Ended |
Jun. 29, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk free rate: | 30-year UK Government Bond adjusted by spot yield to reflect recent volatility |
Risk free rate: | 30 years |
Churn rate: | 10.00% |
Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Long-term revenue growth: | 5.00% |
Operating margin: | 4.00% |
Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Long-term revenue growth: | 8.00% |
Operating margin: | 6.00% |
Property Plant and Equipment Ne
Property Plant and Equipment Net (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 364,341 | $ 338,681 |
Less: Accumulated depreciation | (144,701) | (121,800) |
Net book value | 219,640 | 216,881 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 45,080 | 39,096 |
Less: Accumulated depreciation | (6) | (2) |
Net book value | 45,074 | 39,094 |
Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 139,342 | 138,578 |
Less: Accumulated depreciation | (38,265) | (31,881) |
Net book value | 101,077 | 106,697 |
Manufacturing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 141,869 | 127,085 |
Less: Accumulated depreciation | (86,989) | (72,130) |
Net book value | 54,880 | 54,955 |
Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 7,582 | 7,688 |
Less: Accumulated depreciation | (4,454) | (4,163) |
Net book value | 3,128 | 3,525 |
Motor Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 456 | 534 |
Less: Accumulated depreciation | (334) | (376) |
Net book value | 122 | 158 |
Computers | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 21,250 | 19,642 |
Less: Accumulated depreciation | (14,653) | (13,248) |
Net book value | 6,597 | 6,394 |
Construction and Machinery Under Installation | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 8,762 | 6,058 |
Net book value | $ 8,762 | $ 6,058 |
Property Plant and Equipment, N
Property Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | Jan. 10, 2017 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | Dec. 23, 2016 |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 27.4 | $ 22.5 | $ 17.3 | ||
Property, plant and equipment written-off, fully depreciated cost | 3.5 | 5.4 | $ 2 | ||
Capitalized interest expense related to long-term loan | $ 0 | $ 0.5 | |||
Thailand | |||||
Property, Plant and Equipment [Line Items] | |||||
Purchase of land | $ 5.6 | ||||
Payment to purchase of land | $ 1.1 |
Leased Assets Under Capital Lea
Leased Assets Under Capital Lease Agreements (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Cost-Capital leases | $ 2,481 | $ 2,725 |
Less: Accumulated depreciation | (1,043) | (856) |
Net book value | $ 1,438 | $ 1,869 |
Intangibles (Detail)
Intangibles (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 10,761 | $ 10,436 |
Accumulated Amortization | (5,838) | (4,507) |
Foreign Currency Translation Adjustment | (43) | (89) |
Net | 4,880 | 5,840 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,269 | 5,944 |
Accumulated Amortization | (4,324) | (3,850) |
Net | 1,945 | 2,094 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,373 | 4,373 |
Accumulated Amortization | (1,413) | (606) |
Foreign Currency Translation Adjustment | (42) | (88) |
Net | 2,918 | 3,679 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 119 | 119 |
Accumulated Amortization | (101) | (51) |
Foreign Currency Translation Adjustment | (1) | (1) |
Net | $ 17 | $ 67 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to intangibles | $ 1.7 | $ 1.2 | $ 0.1 |
Global CEM Solutions, Ltd. | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 4.4 | ||
Weighted average remaining life of acquired intangible assets | 6 years 1 month 6 days | 6 years 10 months 24 days | |
Global CEM Solutions, Ltd. | Backlog | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 0.1 | ||
Weighted average remaining life of acquired intangible assets | 10 months 24 days | 1 year 7 months 6 days |
Estimated Future Amortization o
Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
2,019 | $ 1,462 | |
2,020 | 1,038 | |
2,021 | 892 | |
2,022 | 657 | |
2,023 | 400 | |
Thereafter | 431 | |
Total | $ 4,880 | $ 5,840 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | Jun. 29, 2018 | Jun. 30, 2017 | Sep. 14, 2016 |
Goodwill [Line Items] | |||
Goodwill | $ 3,828,000 | $ 3,806,000 | |
Goodwill impairment charges | $ 0 | ||
Global CEM Solutions, Ltd. | |||
Goodwill [Line Items] | |||
Goodwill | $ 3,800,000 | $ 3,883,000 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Jun. 29, 2018USD ($) | |
Goodwill [Line Items] | |
Balance as of June 30, 2017 | $ 3,806 |
Foreign currency translation adjustment | 22 |
Balance as of June 29, 2018 | $ 3,828 |
Total Borrowings, Including Sho
Total Borrowings, Including Short-Term and Long-Term Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | ||
Debt Instrument [Line Items] | ||||
Revolving borrowings | $ 34,000 | |||
Short-term borrowings from bank | 1,003 | |||
Current portion of long-term borrowings | $ 3,250 | 13,600 | ||
Bank borrowings, gross | 3,250 | 48,603 | ||
Less: Unamortized debt issuance costs | (201) | |||
Bank borrowings, net of unamortized debt issuance costs | 3,250 | 48,402 | ||
Long-term borrowings | 64,188 | 36,400 | $ 54,500 | |
Less: Current portion | (3,250) | (13,600) | ||
Less: Unamortized debt issuance costs | (99) | |||
Non-current portion of long-term borrowings | $ 60,938 | 22,701 | ||
Short-term loans from bank | ||||
Debt Instrument [Line Items] | ||||
Rate | [1] | Bank of England base rate +1.85% per annum | ||
Conditions | Repayable based on credit terms of secured accounts receivable | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Rate | [1] | LIBOR + 1.75% per annum | ||
Conditions | Repayable in 1 to 6 months | |||
Term | [2] | 2017-07 | ||
Revolving borrowings | $ 34,000 | |||
Revolving Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Repayment duration | 1 month | 1 month | ||
Revolving Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Repayment duration | 6 months | 6 months | ||
LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Margin above rate | 1.75% | |||
LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Margin above rate | 2.50% | |||
LIBOR | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Margin above rate | 1.75% | |||
Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Margin above rate | 0.75% | |||
Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Margin above rate | 1.50% | |||
Base Rate | Short-term loans from bank | ||||
Debt Instrument [Line Items] | ||||
Margin above rate | 1.85% | |||
Loans Payable Due May 2019 | ||||
Debt Instrument [Line Items] | ||||
Rate | [1] | LIBOR + 1.75% per annum | ||
Conditions | Repayable in quarterly installments | |||
Term | [2] | 2019-05 | ||
Long-term borrowings | $ 36,400 | |||
Loans Payable Due May 2019 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Margin above rate | 1.75% | |||
Loan Payable Due June 2023 | ||||
Debt Instrument [Line Items] | ||||
Rate | [1] | LIBOR + 1.50% per annum | ||
Conditions | Repayable in quarterly installments | |||
Term | [2] | 2023-06 | ||
Long-term borrowings | $ 64,188 | |||
Loan Payable Due June 2023 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Margin above rate | 1.50% | |||
[1] | LIBOR is London Interbank Offered Rate. | |||
[2] | In June 2018, the outstanding revolving and term loan borrowings were refinanced to one term loan borrowing and the maturity dates were extended from July 2017 and May 2019 to June 2023. |
Total Borrowings, Including S81
Total Borrowings, Including Short-Term and Long-Term Borrowings (Parenthetical) (Detail) | 1 Months Ended |
Jun. 29, 2018 | |
Debt Instrument [Line Items] | |
Extended maturity date | 2023-06 |
Movements of Long-Term Loans (D
Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Debt Instrument [Line Items] | |||
Opening net book amount | $ 36,400 | $ 54,500 | |
Additional loan during the period | 39,000 | ||
Repayment during the period | (11,212) | (18,100) | $ (6,000) |
Closing net book amount | $ 64,188 | $ 36,400 | $ 54,500 |
Future Maturities of Long-Term
Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 |
Debt Instrument [Line Items] | |||
2,019 | $ 3,250 | ||
2,020 | 3,250 | ||
2,021 | 3,250 | ||
2,022 | 3,250 | ||
2,023 | 51,188 | ||
Total | $ 64,188 | $ 36,400 | $ 54,500 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | Jun. 04, 2018 | Jul. 24, 2017 | May 22, 2014 | |
Line of Credit Facility [Line Items] | ||||||
Line of credit facility borrowing capacity | $ 200,000,000 | |||||
Proceeds of long-term loan from bank | $ 50,000,000 | |||||
Line of credit facility amount outstanding | $ 34,000,000 | |||||
Cash, cash equivalents and marketable securities at financial institutions located in the United States | 40,000,000 | |||||
Deposits or securities | 10,000,000 | |||||
Minimum net worth required for credit agreement | $ 200,000,000 | |||||
Percentage of quarterly net income required for credit agreement | 50.00% | |||||
Minimum debt service coverage ratio | 150.00% | |||||
Maximum senior leverage ratio | 250.00% | |||||
Minimum quick ratio required for credit agreement | 110.00% | |||||
Interest expense from remaining unamortized debt issuance costs | $ 100,000 | |||||
Net gain on interest rate swap agreement | 100,000 | |||||
After Fifth Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Cash, cash equivalents and marketable securities at financial institutions located in the United States | 40,000,000 | |||||
Deposits or securities | 20,000,000 | |||||
Minimum net worth required for credit agreement | $ 338,000,000 | |||||
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% | |||||
LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate | LIBOR rate plus a spread of 1.75% to 2.50% | |||||
LIBOR | After Fifth Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate | LIBOR rate plus a spread of 1.50% to 2.25% | |||||
LIBOR | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate, percentage | 1.75% | |||||
LIBOR | Minimum | After Fifth Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate, percentage | 1.50% | |||||
LIBOR | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate, percentage | 2.50% | |||||
LIBOR | Maximum | After Fifth Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate, percentage | 2.25% | |||||
Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate | Base rate, determined in accordance with the Facility Agreement, plus a spread of 0.75% to 1.50% | |||||
Base Rate | After Fifth Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate | Base rate plus a spread of 0.50% to 1.25% | |||||
Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate, percentage | 0.75% | |||||
Base Rate | Minimum | After Fifth Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate, percentage | 0.50% | |||||
Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate, percentage | 1.50% | |||||
Base Rate | Maximum | After Fifth Amendment | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit line interest rate, percentage | 1.25% | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility borrowing capacity | $ 150,000,000 | $ 25,000,000 | $ 150,000,000 | |||
Line of credit facility increase in borrowing capacity | $ 100,000,000 | |||||
Line of credit facility amount outstanding | $ 34,000,000 | |||||
Line of credit facility extended termination date | Jun. 4, 2023 | |||||
Line of credit facility termination date | May 22, 2019 | |||||
Line of credit facility, additional commitments | 200,000,000 | |||||
Revolving Credit Facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment duration | 1 month | 1 month | ||||
Revolving Credit Facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment duration | 6 months | 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 | |||||
Proceeds of long-term loan from bank | $ 50,000,000 | |||||
Line of credit facility amount outstanding | $ 64,200,000 | $ 36,400,000 | $ 65,000,000 | |||
Derivative, fixed interest rate | 1.55% | |||||
Derivative, maturity date | 2019-05 |
Undrawn Available Credit Facili
Undrawn Available Credit Facilities Classified by Availability Period of Future Borrowing (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Expiring within one year | ||
Line of Credit Facility [Line Items] | ||
Undrawn available credit facilities | $ 1,965 | |
Expiring beyond one year | ||
Line of Credit Facility [Line Items] | ||
Undrawn available credit facilities | $ 25,000 | $ 116,000 |
Severance Liabilities (Detail)
Severance Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Balance, beginning of the fiscal year | $ 8,488 | $ 6,684 | |
Charged to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income | 1,674 | 1,804 | $ 1,207 |
Balance, end of the fiscal year | $ 10,162 | $ 8,488 | $ 6,684 |
Severance Liabilities Recognize
Severance Liabilities Recognized in Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Present value of defined benefit obligation | $ 10,162 | $ 8,488 | |
Total | $ 10,162 | $ 8,488 | $ 6,684 |
Severance Costs Recognized in S
Severance Costs Recognized in Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Current service cost | $ 1,751 | $ 1,451 | $ 842 |
Interest cost | 295 | 213 | 203 |
Benefit paid | (3,212) | (11) | |
Curtailment gain | 707 | ||
Actuarial loss on obligation | 2,133 | 140 | 173 |
Total | $ 1,674 | $ 1,804 | $ 1,207 |
Principal Actuarial Assumptions
Principal Actuarial Assumptions Used (Detail) | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.50% | 1.93% | 2.00% |
Future salary increases | 3.50% | 3.50% | 4.10% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.70% | 3.60% | 3.20% |
Future salary increases | 10.00% | 10.00% | 10.00% |
Effect of Recording Share-Based
Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Share-based compensation expense by type of award: | |||
Share options | $ 16 | ||
Restricted share units | $ 17,143 | $ 22,412 | 9,911 |
Performance share units | 5,438 | 4,095 | |
Total share-based compensation expense | 22,581 | 26,507 | 9,927 |
Tax effect on share-based compensation expense | 0 | 0 | 0 |
Net effect on share-based compensation expense | $ 22,581 | $ 26,507 | $ 9,927 |
Share-Based Compensation Expens
Share-Based Compensation Expense Recorded in Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 22,581 | $ 26,507 | $ 9,927 |
Cost of Revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 6,784 | 5,318 | 1,979 |
Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 15,797 | $ 21,189 | $ 7,948 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | Dec. 14, 2017 | Dec. 20, 2012 | Dec. 20, 2010 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | Nov. 02, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation costs capitalized | $ 0 | $ 0 | $ 0 | ||||
Total fair value of shares vested | 0 | 0 | 200,000 | ||||
Total intrinsic value of options exercised | 2,000,000 | 8,900,000 | 3,600,000 | ||||
Cash received from the exercise of share options | 1,400,000 | ||||||
Tax benefit realized | $ 0 | $ 0 | 0 | ||||
Annualized dividend yield | 0.00% | ||||||
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes | 145,918 | 37,126 | |||||
Tax withholdings related to net share settlement of restricted share units | $ 5,509,000 | $ 1,425,000 | 2,463,000 | ||||
Stock Plan 2010 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Ordinary shares available for future grant | 2,426,271 | ||||||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized | 2,100,000 | 2,100,000 | 2,100,000 | ||||
Share options outstanding | 2,900 | ||||||
Stock Plan 2017 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for future issuance | 160,000 | ||||||
Ordinary shares available for future grant | 14,041 | ||||||
1999 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for future issuance | 0 | ||||||
Ordinary shares available for future grant | 0 | ||||||
Employee Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award granted vesting period, year | 4 years | ||||||
Options expiration period, year | 7 years | ||||||
Employee Stock Option | Stock Plan 2010 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized share-based compensation expense | $ 0 | ||||||
Employee Stock Option | Vest 12 months after the vesting commencement date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 25.00% | ||||||
Employee Stock Option | Vest monthly over each of the subsequent 36 months | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 2.083% | ||||||
Employee Stock Option | Vest monthly over four years, commencing one month after the vesting commencement date | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 2.083% | ||||||
Performance Share Units | Stock Plan 2010 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share units outstanding | 508,586 | ||||||
Performance Share Units | Stock Plan 2017 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share units outstanding | 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% | ||||||
Restricted Share Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate intrinsic value of restricted share units outstanding | $ 39,600,000 | ||||||
Restricted Share Units | Stock Plan 2010 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share units outstanding | 1,024,927 | ||||||
Unrecognized share-based compensation expense | $ 14,200,000 | ||||||
Unrecognized compensation expense, weighted-average period for recognition | 2 years 7 months 6 days | ||||||
Restricted Share Units | Stock Plan 2017 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share units outstanding | 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 | Executive of the Company | Granted to the executive prior to August 2016 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 100.00% | ||||||
Restricted Share Units | Executive of the Company | Granted to the executive in August 2016 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 100.00% | ||||||
Restricted Share Units | Non Employee Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award granted vesting period, year | 1 year | ||||||
Restricted Share Units | Non Employee Director | Vest on the first of January | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 100.00% | ||||||
Restricted Share Units and Performance Share Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total fair value of restricted share units vested | $ 12,200,000 | $ 18,100,000 | $ 7,900,000 | ||||
Performance Stock Units PSU | Stock Plan 2010 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized share-based compensation expense | $ 1,000,000 | ||||||
Unrecognized compensation expense, weighted-average period for recognition | 1 year |
Share Option Activity (Detail)
Share Option Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares | 12 Months Ended | |||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | Jun. 26, 2015 | |
Number of shares | ||||
Beginning balance | 96,688 | 464,334 | 792,019 | |
Granted | 0 | 0 | 0 | |
Exercised | (92,288) | (367,641) | (325,530) | |
Forfeited | (755) | |||
Expired | (1,500) | (5) | (1,400) | |
Ending balance | 2,900 | 96,688 | 464,334 | |
Expected to vest as of June 29, 2018 | 2,900 | |||
Number of Exercisable Options | ||||
Number of Exercisable Options | 2,900 | 96,688 | 464,334 | 758,451 |
Weighted-Average Exercise Price per share | ||||
Beginning balance | $ 15.70 | $ 15.95 | $ 16.33 | |
Granted | 0 | 0 | 0 | |
Exercised | 15.56 | 16.02 | 16.83 | |
Forfeited | 17.10 | |||
Expired | 25.50 | 5.75 | 23.62 | |
Ending balance | 15.16 | 15.70 | 15.95 | |
Expected to vest as of June 29, 2018 | 15.16 | |||
Weighted-Average Grant Date Fair Value | ||||
Granted | $ 0 | $ 0 | $ 0 |
Information for Share Options O
Information for Share Options Outstanding (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 29, 2018USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, outstanding | 2,900 |
Options outstanding, weighted average remaining contractual life (years) | 1 month 17 days |
Options outstanding, aggregate intrinsic value | $ | $ 63 |
Range of Exercise Price 1 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, outstanding | 2,900 |
Exercise Price Per Share | $ / shares | $ 15.16 |
Options outstanding, weighted average remaining contractual life (years) | 1 month 17 days |
Stock Plan Nineteen Ninety Nine and Twenty Ten | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Shares Underlying Options, exercisable | 2,900 |
Options exercisable, weighted average remaining contractual life (years) | 1 month 17 days |
Options exercisable, aggregate intrinsic value | $ | $ 63 |
Number of Shares Underlying Options, Expected to vest | 2,900 |
Options Expected to vest, weighted average remaining contractual life (years) | 1 month 17 days |
Options Expected to vest, aggregate intrinsic value | $ | $ 63 |
Restricted Share Unit Activity
Restricted Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Restricted Share Units - $ / shares | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Number of restricted share units | |||
Number of share units, beginning balance | 1,058,605 | 1,181,402 | 1,140,927 |
Number of share units, Granted | 552,637 | 861,356 | 654,589 |
Number of share units, Issued | (436,867) | (853,535) | (507,621) |
Number of share units, Forfeited | (100,795) | (130,618) | (106,493) |
Number of share units, Ending Balance | 1,073,580 | 1,058,605 | 1,181,402 |
Number of restricted share units, Expected to vest | 1,012,791 | ||
Weighted Average Grant Date Fair Value Per Share | |||
Weighted-average grant date fair value per share, Beginning Balance | $ 31.59 | $ 18.34 | $ 16.03 |
Weighted-average grant date fair value per share, Granted | 35.95 | 38.95 | 21.15 |
Weighted-average grant date fair value per share, Issued | 27.81 | 21.16 | 15.60 |
Weighted-average grant date fair value per share, Forfeited | 33.62 | 29.31 | 18.34 |
Weighted-average grant date fair value per share, Ending Balance | 35.19 | $ 31.59 | $ 18.34 |
Weighted-average grant date fair value per share, Expected to vest | $ 34.87 |
Performance Share Unit Activity
Performance Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Performance Share Units - $ / shares | 12 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Number of performance share units | ||
Number of share units, beginning balance | 227,268 | |
Number of share units, Granted | 378,624 | 234,678 |
Number of share units, Issued | 0 | 0 |
Number of share units, Forfeited | (7,410) | |
Number of share units, Ending Balance | 605,892 | 227,268 |
Expected to vest as of June 29, 2018 | 285,280 | |
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, Granted | 37.16 | 40.48 |
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 |
Weighted-average grant date fair value per share, Expected to vest | $ 33.98 |
Employee Benefit Plans -Additio
Employee Benefit Plans -Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Defined Contribution and Defined Benefit Plans [Line Items] | |||
Bonus distributions to employees | $ 4 | $ 7.6 | $ 7.5 |
Provident Fund | |||
Defined Contribution and Defined Benefit Plans [Line Items] | |||
Defined contribution plan, employer annual contribution | 4.2 | 3.6 | 2.8 |
Defined Contribution Plan 401k | |||
Defined Contribution and Defined Benefit Plans [Line Items] | |||
Defined contribution plan, employer annual contribution | $ 0.7 | $ 0.6 | $ 0.5 |
Employees maximum contribution to 401 (K) Plan | 80.00% | ||
Percentage of employees' contribution, eligible for employer match | 100.00% | ||
Percentage of employees' annual contribution, eligible for employers match | 6.00% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | Feb. 28, 2018 | Aug. 31, 2017 | |
Shareholders Equity [Line Items] | |||||
Ordinary shares, authorized share capital | 500,000,000 | 500,000,000 | |||
Ordinary shares, par value | $ 0.01 | $ 0.01 | |||
Preferred shares, shares authorized | 5,000,000 | 5,000,000 | |||
Preferred shares, par value | $ 0.01 | $ 0.01 | |||
Share repurchase program, approved amount | $ 30 | ||||
Share repurchase program, increase in shares authorized for repurchase | $ 30 | ||||
Shares repurchase issued and outstanding | 1,289,103 | ||||
Treasury stock acquired, average cost per share | $ 32.89 | ||||
Treasury stock, retired, cost method, amount | $ 42.4 | ||||
Treasury Stock, carrying basis | $ 17.6 | ||||
Stock Plan Nineteen Ninety Nine and Twenty Ten | |||||
Shareholders Equity [Line Items] | |||||
Ordinary shares issued upon exercise of options | 92,288 | 367,641 | 325,530 | ||
Ordinary shares issued upon exercise of options, weight average exercise price | $ 15.56 | $ 16.02 | $ 16.83 | ||
Ordinary shares issued upon vesting of restricted shares | 290,949 | 816,409 | 393,262 |
Changes in AOCI, Net of Tax (De
Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 681,574 | $ 554,419 | $ 478,944 |
Other comprehensive income before reclassification | (544) | 41 | |
Amounts reclassified from AOCI | (365) | (980) | |
Tax effects | 0 | 0 | |
Total other comprehensive (loss) income, net of tax | (909) | (939) | 635 |
Ending Balance | 740,939 | 681,574 | 554,419 |
Unrealized Net (Losses)/Gains on Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (72) | 399 | |
Other comprehensive income before reclassification | (655) | 351 | |
Amounts reclassified from AOCI | (364) | (822) | |
Tax effects | 0 | 0 | |
Total other comprehensive (loss) income, net of tax | (1,019) | (471) | |
Ending Balance | (1,091) | (72) | 399 |
Unrealized Net Gains (Losses) on Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 34 | 192 | |
Amounts reclassified from AOCI | (1) | (158) | |
Tax effects | 0 | 0 | |
Total other comprehensive (loss) income, net of tax | (1) | (158) | |
Ending Balance | 33 | 34 | 192 |
Foreign Currency Translation Adjustment (Losses) Gains | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (310) | ||
Other comprehensive income before reclassification | 111 | (310) | |
Tax effects | 0 | 0 | |
Total other comprehensive (loss) income, net of tax | 111 | (310) | |
Ending Balance | (199) | (310) | |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (348) | 591 | |
Tax effects | 0 | 0 | |
Ending Balance | $ (1,257) | $ (348) | $ 591 |
Pre-tax Amounts Reclassified fr
Pre-tax Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | $ 3,925 | $ 1,977 | $ 1,535 |
Selling, general and administrative expenses | (57,812) | (65,626) | $ (49,753) |
Total amounts reclassified from AOCI | (365) | (980) | |
Unrealized Net (Losses)/Gains on Marketable Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amounts reclassified from AOCI | (364) | (822) | |
Unrealized Net Gains (Losses) on Derivative Instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amounts reclassified from AOCI | (1) | (158) | |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Net (Losses)/Gains on Marketable Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | (364) | (822) | |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Net Gains (Losses) on Derivative Instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Selling, general and administrative expenses | $ (1) | $ (158) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Jan. 10, 2017 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | Dec. 23, 2016 |
Commitments and Contingencies Disclosure [Line Items] | |||||
Outstanding bank guarantees given by banks on behalf of subsidiary | $ 1.5 | $ 1.5 | |||
Rental expense under operating leases | 1.8 | $ 1.7 | $ 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 | $ 2.4 | ||||
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 | Jun. 29, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2,019 | $ 1,263 |
2,020 | 943 |
2,021 | 542 |
2,022 | 427 |
Thereafter | 456 |
Total future minimum operating lease payments | $ 3,631 |
Future Minimum Lease Payments U
Future Minimum Lease Payments Under Non-Cancelable Capital Leases (Detail) $ in Thousands | Jun. 29, 2018USD ($) |
Capital Leased Assets [Line Items] | |
2,019 | $ 481 |
2,020 | 424 |
2,021 | 106 |
Total minimum capital lease payments | 1,011 |
Less: Future finance charge on capital leases | (44) |
Present value of capital lease | $ 967 |
Capital Lease Liabilities (Deta
Capital Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2017 |
Capital Leased Assets [Line Items] | ||
Current | $ 451 | $ 344 |
Non-current | 516 | $ 1,024 |
Present value of capital lease | $ 967 |
Present Value of Capital Lease
Present Value of Capital Lease (Detail) $ in Thousands | Jun. 29, 2018USD ($) |
Capital Leased Assets [Line Items] | |
2,019 | $ 451 |
2,020 | 411 |
2,021 | 105 |
Present value of capital lease | $ 967 |
Business Segments and Geogra106
Business Segments and Geographic Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Jun. 29, 2018USD ($)Segment | Jun. 30, 2017USD ($)Segment | Jun. 24, 2016Segment | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | Segment | 1 | 1 | 1 |
North America | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ | $ 33.2 | $ 34.9 |
Total Revenues by Geographic Re
Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | |||||||||||
Revenues | $ 345,327 | $ 332,313 | $ 337,072 | $ 357,313 | $ 370,454 | $ 366,837 | $ 351,156 | $ 332,043 | $ 1,371,925 | $ 1,420,490 | $ 976,747 |
North America | |||||||||||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | |||||||||||
Revenues | 643,236 | 661,267 | 525,161 | ||||||||
Asia-Pacific | |||||||||||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | |||||||||||
Revenues | 519,203 | 539,317 | 351,033 | ||||||||
Europe | |||||||||||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | |||||||||||
Revenues | $ 209,486 | $ 219,906 | $ 100,553 |
Revenues by End Market (Detail)
Revenues by End Market (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 345,327 | $ 332,313 | $ 337,072 | $ 357,313 | $ 370,454 | $ 366,837 | $ 351,156 | $ 332,043 | $ 1,371,925 | $ 1,420,490 | $ 976,747 |
Optical communications | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 1,000,256 | 1,108,637 | 727,580 | ||||||||
Lasers, sensors, and other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 371,669 | $ 311,853 | $ 249,167 |
Total Revenues by Percentage fr
Total Revenues by Percentage from Individual Customers Representing Ten Percent or More of Total Revenues (Detail) | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Revenue | Customer Concentration Risk | Lumentum Operations LLC | |||
Revenue, Major Customer [Line Items] | |||
Concentration of risk percentage | 16.00% | 17.00% | 20.00% |
Accounts Receivable from Indivi
Accounts Receivable from Individual Customers Representing Ten Percent or More of Accounts Receivable (Detail) - Accounts Receivable - Customer Concentration Risk | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | ||
Lumentum Operations LLC | |||
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items] | |||
Concentration of risk percentage | 18.00% | 15.00% | |
NeoPhotonics Corporation | |||
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items] | |||
Concentration of risk percentage | 11.00% | 12.00% | |
Acacia Communications Inc | |||
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items] | |||
Concentration of risk percentage | [1] | 10.00% | |
[1] | Represents less than 10% of total accounts receivable. |
Financial instruments - Additio
Financial instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Financial Instrument [Line Items] | |||
Amount of unrealized loss recognized in net income on derivatives | $ 1,700,000 | $ 1,800,000 | |
Amount of unrealized gain recognized in net income on derivatives | $ 20,000 | ||
Forward Foreign Currency and Option Contracts | Maximum | |||
Financial Instrument [Line Items] | |||
Derivative term of contract | 6 months | ||
China, Yuan Renminbi | |||
Financial Instrument [Line Items] | |||
Derivative contracts | $ 0 | 0 | |
United Kingdom, Pounds | |||
Financial Instrument [Line Items] | |||
Derivative contracts denominated in GBP | 0 | ||
Foreign currency forward contracts | Thailand, baht | |||
Financial Instrument [Line Items] | |||
Derivative contracts | 7,000,000 | $ 1,000,000 | |
Foreign currency option contracts | Thailand, baht | |||
Financial Instrument [Line Items] | |||
Derivative contracts | $ 30,000,000 |
Outstanding Foreign Currency As
Outstanding Foreign Currency Assets and Liabilities (Detail) ฿ in Thousands, ¥ in Thousands, £ in Thousands, $ in Thousands | Jun. 29, 2018USD ($) | Jun. 29, 2018CNY (¥) | Jun. 29, 2018GBP (£) | Jun. 29, 2018THB (฿) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2017GBP (£) | Jun. 30, 2017THB (฿) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Foreign currency assets | $ 48,749 | $ 24,590 | ||||||
Foreign currency liabilities | 49,993 | 66,715 | ||||||
Thailand, baht | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Foreign currency assets | 29,568 | ฿ 980,778 | 11,628 | ฿ 395,123 | ||||
Foreign currency liabilities | 42,251 | ฿ 1,401,473 | 55,189 | ฿ 1,875,338 | ||||
China, Yuan Renminbi | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Foreign currency assets | 2,789 | ¥ 18,455 | 3,980 | ¥ 26,965 | ||||
Foreign currency liabilities | 3,007 | ¥ 19,893 | 4,200 | ¥ 28,451 | ||||
United Kingdom, Pounds | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Foreign currency assets | 16,392 | £ 12,514 | 8,982 | £ 6,896 | ||||
Foreign currency liabilities | $ 4,735 | £ 3,615 | $ 7,326 | £ 5,625 |
Unaudited Quarterly Financia113
Unaudited Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 24, 2016 | |
Quarterly Financial Information [Line Items] | |||||||||||
Total revenues | $ 345,327 | $ 332,313 | $ 337,072 | $ 357,313 | $ 370,454 | $ 366,837 | $ 351,156 | $ 332,043 | $ 1,371,925 | $ 1,420,490 | $ 976,747 |
Gross profit | 38,981 | 36,933 | 37,166 | 40,332 | 44,760 | 44,046 | 43,046 | 39,608 | 153,412 | 171,460 | 119,523 |
Net income | $ 22,768 | $ 21,053 | $ 19,313 | $ 21,033 | $ 27,401 | $ 21,656 | $ 25,292 | $ 22,766 | $ 84,167 | $ 97,115 | $ 61,897 |
Basic net income per share: | |||||||||||
Net income | $ 0.62 | $ 0.56 | $ 0.52 | $ 0.56 | $ 0.73 | $ 0.58 | $ 0.69 | $ 0.63 | $ 2.26 | $ 2.63 | $ 1.73 |
Weighted-average shares used in basic net income per share calculations | 36,828 | 37,275 | 37,477 | 37,447 | 37,334 | 37,116 | 36,848 | 36,404 | 37,257 | 36,927 | 35,857 |
Diluted net income per share: | |||||||||||
Net income | $ 0.60 | $ 0.55 | $ 0.51 | $ 0.55 | $ 0.72 | $ 0.57 | $ 0.67 | $ 0.61 | $ 2.21 | $ 2.57 | $ 1.68 |
Weighted-average shares used in diluted net income per share calculations | 37,766 | 38,055 | 38,156 | 38,163 | 38,118 | 37,872 | 37,805 | 37,330 | 38,035 | 37,852 | 36,872 |