Fabrinet (FN) 10-Q7 May 192019 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 29, 2019	Apr. 26, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 29, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	Fabrinet
Entity Central Index Key	0001408710
Current Fiscal Year End Date	--06-28
Entity Filer Category	Large Accelerated Filer
Trading Symbol	FN
Entity Common Stock, Shares Outstanding		36,833,298
Entity Emerging Growth Company	false
Entity Small Business	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 29, 2019	Jun. 29, 2018
Current assets
Cash and cash equivalents	$ 166,407	$ 158,102
Restricted cash in connection with business acquisition		3,331
Short-term investments	242,484	174,269
Trade accounts receivable, net	265,110	246,912
Contract assets	10,543
Inventory, net	285,431	257,687
Prepaid expenses	12,299	8,061
Other current assets	5,236	5,948
Total current assets	987,510	854,310
Non-current assets
Property, plant and equipment, net	209,084	219,640
Intangibles, net	4,112	4,880
Goodwill	3,823	3,828
Deferred tax assets	5,734	5,280
Other non-current assets	354	80
Total non-current assets	223,107	233,708
Total Assets	1,210,617	1,088,018
Current liabilities
Bank borrowings	3,250	3,250
Trade accounts payable	256,282	220,159
Capital lease liability, current portion	417	451
Income tax payable	2,651	709
Deferred liability in connection with business acquisition		3,331
Accrued payroll, bonus and related expenses	17,900	13,476
Accrued expenses	8,772	9,013
Other payables	16,370	19,728
Total current liabilities	305,642	270,117
Non-current liabilities
Long-term loan from bank	58,500	60,938
Deferred tax liability	3,177	2,284
Capital lease liability, non-current portion	209	516
Severance liabilities	11,837	10,162
Other non-current liabilities	2,364	3,062
Total non-current liabilities	76,087	76,962
Total Liabilities	381,729	347,079
Commitments and contingencies (Note 16)
Shareholders' equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of March 29, 2019 and June 29, 2018)
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 38,216,231 shares and 37,723,733 shares issued; and 36,827,128 shares and 36,434,630 shares outstanding as of March 29, 2019 and June 29, 2018, respectively)	382	377
Additional paid-in capital	154,738	151,797
Less: Treasury shares (1,389,103 shares and 1,289,103 shares as of March 29, 2019 and June 29, 2018, respectively)	(47,779)	(42,401)
Accumulated other comprehensive loss	(79)	(1,257)
Retained earnings	721,626	632,423
Total Shareholders' Equity	828,888	740,939
Total Liabilities and Shareholders' Equity	$ 1,210,617	$ 1,088,018

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 29, 2019	Jun. 29, 2018
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	38,216,231	37,723,733
Ordinary shares, shares outstanding	36,827,128	36,434,630
Treasury stocks, shares	1,389,103	1,289,103

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018
Revenues	$ 398,951	$ 332,213	$ 1,179,208	$ 1,026,598
Cost of revenues	(352,193)	(295,280)	(1,046,610)	(912,167)
Gross profit	46,758	36,933	132,598	114,431
Selling, general and administrative expenses	(14,132)	(12,418)	(41,296)	(41,253)
Expenses related to reduction in workforce	(323)		(727)	(1,776)
Operating income	32,303	24,515	90,575	71,402
Interest income	2,144	1,149	4,770	2,554
Interest expense	(1,423)	(820)	(3,673)	(2,499)
Foreign exchange loss, net	(3,055)	(2,428)	(408)	(5,710)
Other income, net	159	91	798	438
Income before income taxes	30,128	22,507	92,062	66,185
Income tax expense	(1,493)	(1,454)	(4,064)	(4,786)
Net income	28,635	21,053	87,998	61,399
Other comprehensive income (loss), net of tax:
Change in net unrealized gain (loss) on available-for-sale securities	513	(616)	1,399	(1,048)
Change in net unrealized loss on derivative instruments	(1)		(2)	(1)
Change in foreign currency translation adjustment	486	789	(219)	1,358
Total other comprehensive income, net of tax	998	173	1,178	309
Net comprehensive income	$ 29,633	$ 21,226	$ 89,176	$ 61,708
Earnings per share
Basic	$ 0.78	$ 0.56	$ 2.39	$ 1.64
Diluted	$ 0.76	$ 0.55	$ 2.35	$ 1.61
Weighted-average number of ordinary shares outstanding (thousands of shares)
Basic	36,891	37,275	36,786	37,400
Diluted	37,539	38,055	37,383	38,125

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Ordinary Shares	Additional Paid-in Capital	Treasury Shares	Accumulated Other Comprehensive (Loss) Income	Retained Earnings
Beginning Balance at Jun. 30, 2017	$ 681,574	$ 373	$ 133,293		$ (348)	$ 548,256
Beginning Balance (in shares) at Jun. 30, 2017		37,340,496
Net income	61,399					61,399
Other comprehensive income	309				309
Share-based compensation expense	17,704		17,704
Issuance of ordinary shares	994	$ 3	991
Issuance of ordinary shares (in shares)		299,719
Repurchase of shares held as treasury shares	(22,407)			$ (22,407)
Tax withholdings related to net share settlement of restricted share units	(4,030)		(4,030)
Ending Balance at Mar. 30, 2018	735,543	$ 376	147,958	(22,407)	(39)	609,655
Ending Balance (in shares) at Mar. 30, 2018		37,640,215
Beginning Balance at Dec. 29, 2017	721,770	$ 376	142,914	(9,910)	(212)	588,602
Beginning Balance (in shares) at Dec. 29, 2017		37,597,301
Net income	21,053					21,053
Other comprehensive income	173				173
Share-based compensation expense	5,326		5,326
Issuance of ordinary shares	4		4
Issuance of ordinary shares (in shares)		42,914
Repurchase of shares held as treasury shares	(12,497)			(12,497)
Tax withholdings related to net share settlement of restricted share units	(286)		(286)
Ending Balance at Mar. 30, 2018	735,543	$ 376	147,958	(22,407)	(39)	609,655
Ending Balance (in shares) at Mar. 30, 2018		37,640,215
Beginning Balance at Jun. 29, 2018	740,939	$ 377	151,797	(42,401)	(1,257)	632,423
Beginning Balance (in shares) at Jun. 29, 2018		37,723,733
Net income	87,998					87,998
Other comprehensive income	1,178				1,178
Cumulative effect adjustment from adoption of ASC 606	1,205					1,205
Share-based compensation expense	13,373		13,373
Issuance of ordinary shares		$ 5	(5)
Issuance of ordinary shares (in shares)		492,498
Repurchase of shares held as treasury shares	(5,378)			(5,378)
Tax withholdings related to net share settlement of restricted share units	(10,427)		(10,427)
Ending Balance at Mar. 29, 2019	828,888	$ 382	154,738	(47,779)	(79)	721,626
Ending Balance (in shares) at Mar. 29, 2019		38,216,231
Beginning Balance at Dec. 28, 2018	801,533	$ 381	151,639	(42,401)	(1,077)	692,991
Beginning Balance (in shares) at Dec. 28, 2018		38,138,159
Net income	28,635					28,635
Other comprehensive income	998				998
Share-based compensation expense	4,424		4,424
Issuance of ordinary shares		$ 1	(1)
Issuance of ordinary shares (in shares)		78,072
Repurchase of shares held as treasury shares	(5,378)			(5,378)
Tax withholdings related to net share settlement of restricted share units	(1,324)		(1,324)
Ending Balance at Mar. 29, 2019	$ 828,888	$ 382	$ 154,738	$ (47,779)	$ (79)	$ 721,626
Ending Balance (in shares) at Mar. 29, 2019		38,216,231

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018
Treasury stocks, shares	100,000	422,452	100,000	738,425

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Cash flows from operating activities
Net income for the period	$ 87,998	$ 61,399
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	22,521	21,288
Loss (gain) on disposal of property, plant and equipment	81	(153)
Loss on disposal of intangibles	149
(Gain) loss from sales and maturities of available-for-sale securities	(196)	362
Amortization of investment premium	(604)	(31)
Amortization of deferred debt issuance costs		433
Allowance for doubtful accounts	12	44
Unrealized (gain) loss on exchange rate and fair value of derivative instruments	(5,351)	1,393
Share-based compensation	13,373	17,704
Deferred income tax	438	19
Other non-cash expenses	1,142	1,941
Inventory (reversal of inventory) obsolescence	280	(291)
Changes in operating assets and liabilities
Trade accounts receivable	(17,942)	21,411
Contract assets	(666)
Inventory	(36,698)	(973)
Other current assets and non-current assets	(1,568)	(9,853)
Trade accounts payable	37,576	(22,518)
Income tax payable	1,942	(1,678)
Other current liabilities and non-current liabilities	3,017	(703)
Net cash provided by operating activities	105,504	89,794
Cash flows from investing activities
Purchase of short-term investments	(202,328)	(84,519)
Proceeds from sales of short-term investments	85,941	22,169
Proceeds from maturities of short-term investments	50,370	42,977
Purchase of property, plant and equipment	(13,211)	(28,268)
Purchase of intangibles	(290)	(1,487)
Proceeds from disposal of property, plant and equipment	473	202
Net cash used in investing activities	(79,045)	(48,926)
Cash flows from financing activities
Proceeds of short-term loans from bank		5,000
Repayment of short-term loans from bank		(1,003)
Repayment of long-term loans from bank	(2,438)	(10,200)
Repayment of capital lease liability	(342)	(293)
Repurchase of ordinary shares	(5,378)	(22,407)
Proceeds from issuance of ordinary shares under employee share option plans		993
Release of restricted cash held in connection with business acquisition	(3,478)
Withholding tax related to net share settlement of restricted share units	(10,427)	(4,030)
Net cash used in financing activities	(22,063)	(31,940)
Net increase in cash, cash equivalents and restricted cash	4,396	8,928
Movement in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period	161,433	137,137
Increase in cash, cash equivalents and restricted cash	4,396	8,928
Effect of exchange rate on cash, cash equivalents and restricted cash	578	(89)
Cash, cash equivalents and restricted cash at end of period	166,407	145,976
Non-cash investing and financing activities
Construction, software-related and equipment-related payables	$ 3,286	$ 4,684

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Mar. 29, 2019	Mar. 30, 2018
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$ 166,407	$ 142,407
Restricted cash in connection with business acquisition		3,569
Cash, cash equivalents and restricted cash	$ 166,407	$ 145,976

Business and organization

Business and organization	9 Months Ended
Business and organization	Mar. 29, 2019
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, industrial lasers, medical devices and sensors. The Company offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing. The Company focuses primarily on the production of low-volume, high-mix products. The principal subsidiaries of Fabrinet include Fabrinet Co., Ltd. (“Fabrinet Thailand”), Casix, Inc. (“Casix”), Fabrinet West, Inc. (“Fabrinet West”) and Fabrinet UK Limited, which was formerly known as Exception EMS Ltd.

Accounting policies

Accounting policies	9 Months Ended
Accounting policies	Mar. 29, 2019
Accounting policies	2. Accounting policies Basis of presentation The accompanying condensed consolidated financial statements for Fabrinet as of March 29, 2019 and for the three and nine months ended March 29, 2019 and March 30, 2018 include normal recurring adjustments, necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 29, 2018. The balance sheet as of June 29, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and nine months ended March 29, 2019 may not be indicative of results for the year ending June 28, 2019 or any future periods. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and expenses during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, income taxes, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to differ from actual results, adjustments will be made in subsequent periods to reflect more current information. Fiscal years The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. The three months ended March 29, 2019 and March 30, 2018 each consisted of 13 weeks. The nine months ended March 29, 2019 and March 30, 2018 each consisted of 39 weeks. Fiscal year 2019 will be comprised of 52 weeks and will end on June 28, 2019. Changes in Accounting Policies Except for the adoption of the new revenue recognition accounting standard described below and as disclosed in Note 3—Revenues, the Company has consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements. Adoption of New Accounting Standard On June 30, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606), which created Accounting Standards Codification Topic 606 (“ASC 606”), using the modified retrospective method applied to those contracts which were not completed as of June 29, 2018. The modified retrospective method requires the Company to recognize the cumulative effect of the adoption of ASC 606, for all contracts with customers, to the opening balance of equity at June 30, 2018. Accordingly, the Company’s comparative financial information as of June 29, 2018 has not been adjusted and continues to be reported under ASC 605, Revenue Recognition (“ASC 605”). The cumulative effect adjustment recorded was based on the timing difference of revenue recognition between ASC 605 and ASC 606 related to certain manufacturing contracts with vendor-managed inventory arrangements. Under ASC 605, revenue for such contracts was recognized at the earlier of when the inventory was consumed by the customers or if not consumed, on the expiration of time specified in the contract. On adoption of ASC 606, revenue is recognized when inventory is shipped to customers. The following table shows the impact of adoption of ASC 606 on the adoption date of June 29, 2018 on the condensed consolidated balance sheets: Condensed Consolidated Balance Sheets Impact of Adopting ASC 606 (amount in thousands) Balance at June 29, 2018 Adjustment Balance at June 30, 2018 Assets Contract assets $ — $ 9,877 (1) $ 9,877 Inventory, net $ 257,687 $ (8,672 ) (2) $ 249,015 Liabilities and Shareholders’ Equity Retained earnings $ 632,423 $ 1,205 (3 $ 633,628 (1) Majority of adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized on shipment. (2) Adjustment relates to reduction of finished goods inventory for certain vendor-managed inventory arrangements. (3) Adjustment relates to cumulative effect adjustment upon adoption of ASC 606. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, short-term investments, derivatives, accounts receivable and contract assets. Cash, cash equivalents, and short-term investments 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 short-term investments to term deposits and marketable securities to securities with a maturity not in excess of three years, and all marketable securities that the Company invests in are rated A1, P-1, F1, or better. The Company performs ongoing credit evaluations for credit worthiness of its customers and usually does not require collateral from its customers. Management has implemented a program to closely monitor near term cash collection and credit exposures to mitigate any material losses. New Accounting Pronouncements – not yet adopted by the Company In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-01, “Leases (Topic 842), Codification Improvements.” This ASU provided guidance transition disclosure in the annual period in which a change in accounting principle is made. For public business entities, this update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU is intended to improve the effectiveness of disclosures in the notes to the financial statements including 1) the development of a framework that promotes consistent decisions by the FASB about disclosure requirements and 2) the appropriate exercise of discretion by reporting entities. The amendment modifies the disclosure requirements on transferring between level 1 and level 2 and valuation processes of level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842), Target Improvements.” This ASU provided guidance on comparative reporting requirements for initial adoption. This ASU also provides additional guidance for lessors, on separating lease and non-lease components in a contract and allocating the consideration in the contract to the separate components. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases.” The amendment in this update affects narrow aspects of the guidance issued in the amendments in update 2016-02 on various matters. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This amendment modified the concept of impairment assessment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Public companies that are SEC filers should adopt the amendment for annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the amendments will impact its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Lease (Topic 842).” The core principle of Topic 842 is that a lessee should recognize the lease assets and liabilities that arise from leases in the statement of financial position. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. New Accounting Pronouncements – adopted by the Company In November 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-14, “Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606): Amendments to SEC Paragraphs Pursuant to the Staff Accounting Bulletin (“SAB”) No. 116 and SEC Release No. 33-10403”. This ASU amended, superseded and added certain SEC paragraphs in Topic 220, Topic 605 and Topic 606 to reflect the August 2017 issuance of SEC Staff Accounting Bulletin (SAB) 116 and SEC Release No. 33-10403. The SEC staff issued SAB 116 to align its revenue guidance with Accounting Standards Codification (ASC) 606. For public business entities, this update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. The Company adopted this standard along with the implementation of ASC 606 effective June 30, 2018 with immaterial impact to the unaudited condensed consolidated financial statements. In September 2017, the FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendment delays the mandatory adoption of Topic 606 and Topic 842 for certain entities, revises the guidance related to performance-based incentive fees in Topic 605 and revises the guidance related to leases in Topic 840 and Topic 842. The revisions to the lease guidance eliminate language specific to certain sale-leaseback arrangements, guarantees of lease residual assets and loans made by lessees to owner-lessors. Also included is an amendment to Topic 842 to retain the guidance in Topic 840 covering the impact of changes in tax rates on investments in leveraged leases. This guidance, which is effective immediately, generally relates to the adoption of Topic 606 and Topic 842. The Company adopted this standard along with the implementation of ASC 606 effective June 30, 2018 with immaterial impact to the unaudited condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects: Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings.” The amendment provides guidance to the Company in relation to the disclosure of the impact that ASU 2014-09, ASU 2016-02 and ASU 2016-13 will have on the Company’s financial statements when adopted. The Company adopted this standard along with the implementation of ASC 606 effective June 30, 2018 with immaterial impact to the unaudited condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” The amendments in this ASU provide guidance on the presentation of certain cash receipts and cash payments in the statement of cash flows in order to reduce diversity in existing practice. The amendments in ASU 2016-15 are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company adopt this new update effective June 30, 2018 with no impact to the unaudited condensed consolidated financial statements.

Revenues

Revenues	9 Months Ended
Revenues	Mar. 29, 2019
Revenues	3. Revenues 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. The Company recognizes revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the Company expects to be entitled in exchange for such goods or services. In order to meet this requirement, the Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Revenue is recognized net of any taxes collected from customers, which is subsequently remitted to governmental authorities. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. In contracts with multiple performance obligations, the Company identifies each performance obligation and evaluates whether the performance obligation is distinct within the context of the contract at contract inception. The majority of the Company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. The Company manufactures products that are customized to customers’ specifications; however, control of the products is typically transferred to the customer at the point in time the product is either shipped or delivered, depending on the terms of the arrangement, as the criteria for overtime recognition are not met. On the evaluation of the contracts, the Company identified that it did not have contractual rights to bill profit for work in progress in the event of a contract termination which is expected to be infrequent. Further, in limited circumstances, substantive acceptance by the customer exists which results in the deferral of revenue until acceptance is formally received from the customer. Judgment may be required in determining if the acceptance clause is substantive. 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 cannot be used to fulfill other customer orders. In these situations, revenue is only recognized when the goods are completed and ready for shipment and transferred to the Company’s warehouse. Customers generally are obligated to purchase finished goods that the Company has manufactured according to their demand requirements. Materials that are not consumed by customers within a specified period of time, or are no longer required due to a product’s cancellation or end-of-life, are typically designated as excess or obsolete inventory under the Company’s contracts. Once materials are designated as either excess or obsolete inventory, customers are typically required to purchase such inventory from the Company even if the customer has chosen to cancel production of the related products. The excess or obsolete inventory is shipped to the customer and revenue is recognized upon shipment. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company generally does not grant return privileges, except for defective products during the warranty period. The Company generally provides a warranty of between one to five years on the product. 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. Contract Assets and Liabilities A contract asset is recognized when the Company has recognized revenues, but not yet an invoice for payment. Contract assets are classified separately on the condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. The following table summarizes the activity in the Company’s contract assets during the nine-month period ended March 29, 2019: (amount in thousands) Contract Assets Beginning balance, June 30, 2018 $ — Cumulative effect adjustment upon adoption of ASC 606 9,877 Revenue recognized 89,131 Amounts collected or invoiced (88,465 ) Ending balance, March 29, 2019 $ 10,543 The Company continually evaluates whether advance payment arrangements with customers result in the recognition of contract liabilities. No such liabilities existed as of March 29, 2019 or June 29, 2018. Separately, accounts receivable, net, represents receivables from contracts with customers. Contract Costs The Company has elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. During the three and nine months ended March 29, 2019, the Company did not have any incremental costs of obtaining a contract. Shipping and Handling Shipping costs billed to customers are recorded as revenue. Shipping and handling expense related to costs incurred to deliver product are recognized within cost of goods sold. The Company accounts for shipping and handling activities that occur after control has transferred as a fulfillment cost, as opposed to a separate performance obligation, and the costs of shipping and handling are recognized concurrently with the related revenue. In accordance with the new revenue standard requirements, the disclosure of the impact of adoption of ASC 606 on the Company’s condensed consolidated statements of operations and comprehensive income for the three and nine months ended March 29, 2019 and condensed consolidated balance sheets as of March 29, 2019 was as follows: Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited) Three and Nine Months Ended March 29, 2019 Impact of Adopting ASC 606 (Three months) Impact of Adopting ASC 606 (Nine months) (amount in thousands) As Reported Adjustment Balance without ASC 606 Adoption As Reported Adjustment Balance without ASC 606 Adoption Revenues $ 398,951 $ 2,793 (1) $ 401,744 $ 1,179,208 $ (666 ) (1) $ 1,178,542 Cost of revenues $ (352,193 ) $ (2,699 ) (2) $ (354,892 ) $ (1,046,610 ) $ 341 (2) $ (1,046,269 ) Gross profit $ 46,758 $ 94 (3) $ 46,852 $ 132,598 $ (325 ) (3) $ 132,273 Net income $ 28,635 $ 94 (3) $ 28,729 $ 87,998 $ (325 ) (3) $ 87,673 Earnings per share Basic $ 0.78 $ 0.00 $ 0.78 $ 2.39 $ (0.01 ) $ 2.38 Diluted $ 0.76 $ 0.00 $ 0.76 $ 2.35 $ (0.01 ) $ 2.34 (1) Adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized at shipping. (2) Adjustment relates to costs associated with revenue recognized. (3) Adjustment relates to net impact on net income upon adoption of ASC 606. Condensed Consolidated Balance Sheets (Unaudited) As of March 29, 2019 Impact of Adopting ASC 606 (amount in thousands) As Reported Adjustments Balance without ASC 606 Adoption Assets Contract assets $ 10,543 $ (10,543 ) (1) $ — Inventory, net $ 285,431 $ 9,013 (2) $ 294,444 Liabilities and Shareholders’ Equity Retained earnings $ 721,626 $ (1,530 ) (3) $ 720,096 (1) Majority of adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized on shipment. (2) Adjustment relates to reduction of finished goods inventory for vendor-managed inventory. (3) Adjustment relates to cumulative effect adjustment upon adoption of ASC 606. Revenue by Geographic Area Total revenues are attributed to a particular geographic area based on the bill-to-location of customers. The Company operates primarily in three geographic regions: North America, Asia-Pacific and Europe. The following table presents total revenues by geographic regions: (amount in thousands) Three Months Ended March 29, 2019 As a % of Total Revenues Nine Months Ended March 29, 2019 As a % of Total Revenues North America $ 195,504 49.0 % $ 558,028 47.3 % Asia-Pacific 151,263 37.9 469,921 39.9 Europe 52,184 13.1 151,259 12.8 $ 398,951 100.0 % $ 1,179,208 100.0 % The following table sets forth revenues by end market. (amount in thousands) Three Months Ended March 29, 2019 As a % of Total Revenues Nine Months Ended March 29, 2019 As a % of Total Revenues Optical communications $ 298,139 74.7 % $ 884,454 75.0 % Lasers, sensors and other 100,812 25.3 294,754 25.0 $ 398,951 100.0 % $ 1,179,208 100.0 %

Earnings per ordinary share

Earnings per ordinary share	9 Months Ended
Earnings per ordinary share	Mar. 29, 2019
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 period using the treasury stock method. Dilutive ordinary equivalent shares consist of share options, restricted share units and performance share units. Earnings per ordinary share was calculated as follows: Three Months Ended Nine Months Ended (amount in thousands except per share amounts) March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 Net income attributable to shareholders $ 28,635 $ 21,053 $ 87,998 $ 61,399 Weighted-average number of ordinary shares outstanding (thousands of shares) 36,891 37,275 36,786 37,400 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 648 780 597 725 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,539 38,055 37,383 38,125 Basic earnings per ordinary share $ 0.78 $ 0.56 $ 2.39 $ 1.64 Diluted earnings per ordinary share $ 0.76 $ 0.55 $ 2.35 $ 1.61 Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1) 401 284 401 284 (1) Outstanding performance share units were not included in the computation of diluted earnings per ordinary shares because they are not expected to vest based on the Company’s current assessment of the related performance obligations. As of March 29, 2019 and March 30, 2018, there were no anti-dilutive share options.

Cash, cash equivalents and shor

Cash, cash equivalents and short-term investments	9 Months Ended
Cash, cash equivalents and short-term investments	Mar. 29, 2019
Cash, cash equivalents and marketable securities	5. Cash, cash equivalents and short-term investments The Company’s cash, cash equivalents, and short-term investments can be analyzed as follows: Fair Value (amount in thousands) Carrying Cost Unrealized Loss Cash and Cash Equivalents Marketable Securities Other Investments As of March 29, 2019 Cash $ 160,494 $ — $ 160,494 $ — $ — Cash equivalents 5,913 — 5,913 — — Liquidity fund 20,387 — — — 20,387 Certificates of deposit and time deposit 26,027 — — — 26,027 Corporate bonds and commercial papers 130,418 (154 ) — 130,264 — U.S. agency and U.S. treasury securities 65,895 (89 ) — 65,806 — Sovereign and municipal securities — — — — — Total $ 409,134 $ (243 ) $ 166,407 $ 196,070 $ 46,414 As of June 29, 2018 Cash $ 146,778 $ — $ 146,778 $ — $ — Cash equivalents 11,324 — 11,324 — — Liquidity fund — — — — — Certificates of deposit and time deposit — — — — — 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 $ — All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates the designations at each balance sheet date. The Company may sell certain of its short-term investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s short-term investments generally range from three months to three years. The Company’s investments in marketable securities consist of investments in U.S. Treasuries and fixed income securities and have been classified and accounted for as available-for-sale. The following table summarizes the cost and estimated fair value of marketable securities classified as available-for-sale securities based on stated effective maturities as of March 29, 2019: (amount in thousands) Carrying Cost Fair Value Due within one year $ 63,149 $ 63,146 Due between one to three years 126,071 125,861 Due after three years 7,093 7,063 Total $ 196,313 $ 196,070 During the nine months ended March 29, 2019, the Company recognized a realized gain of $0.2 million from sales and maturities of available-for-sale securities. As of March 29, 2019, March 29, 2019. As of March 29, 2019, cash, $40.0

Fair value of financial instrum

Fair value of financial instruments	9 Months Ended
Fair value of financial instruments	Mar. 29, 2019
Fair value of financial instruments	6. Fair value of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs for the valuation of an asset or liability as of measurement date. The three levels of inputs that may be used to measure fair value are defined as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly. If the assets or liabilities have a specified (contractual) term, Level 2 inputs must be observable for substantially the full term of assets or liabilities. Level 3 inputs are unobservable inputs for assets or liabilities, which require the reporting entity to develop its own valuation techniques and assumptions. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The following table provides details of the financial instruments measured at fair value on a recurring basis, including: Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of March 29, 2019 Assets Cash equivalents $ — $ 5,913 $ — $ 5,913 Liquidity fund — 20,387 — 20,387 Certificates of deposit and time deposit — 26,027 — 26,027 Corporate bonds and commercial papers — 130,264 — 130,264 U.S. agency and U.S. treasury securities — 65,806 — 65,806 Sovereign and municipal securities — — — — Derivative assets — — — — Total $ — $ 248,397 $ — $ 248,397 Liabilities Derivative liabilities $ — $ 2,626 (1) $ — $ 2,626 Total $ — $ 2,626 $ — $ 2,626 As of June 29, 2018 Assets Cash equivalents $ — $ 11,324 $ — $ 11,324 Liquidity fund — — — — Certificates of deposit and time deposit — — — — 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 (2) $ — $ 1,745 Total $ — $ 1,745 — $ 1,745 (1) Foreign currency forward contracts with a notional amount of $ 98.0 0.4 5.0 64.2 . (2) Foreign currency forward contracts with a notional amount of $ 7.0 0.4 30.0 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 also fluctuate. The Company uses foreign currency contracts to manage the foreign exchange risk associated with certain foreign currency denominated assets and liabilities and other foreign currency transactions. The Company minimizes the credit risk in derivative instruments by limiting its exposure to any single counterparty and by entering into derivative instruments only with counterparties that meet the Company’s minimum credit quality standard. As of March 29, 2019, the Company recognized the fair value of foreign currency forward contracts and foreign currency option contracts of $1.0 and fair value of interest rate swap of $1.6 million as derivative liabilities in the condensed consolidated balance sheets under other current liabilities. As of June 29, 2018, the Company recognized the fair value of foreign currency forward contracts and foreign currency option contracts of $1.7 million as derivative liabilities in the consolidated balance sheets under other current liabilities. As of March 29, 2019 and June 29, 2018, the Company had no foreign currency forward contracts designated as cash flow hedges. On July 25, 2018, $64.2 million and it effectively converts the floating interest rate of the term loans under the Facility Agreement to the fixed interest rate of 2.86% per annum through maturity in June 2023. The swap transactions are due and settled monthly. During the nine months ended March 29, 2019, As of March 29, 2019, $98.0 $5.0 million and one outstanding Canadian dollars forward contract with notional amount of $0.4 2019. These foreign currency forward contracts 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 nine months ended March 29, 2019, the Company included an unrealized of $1.5 from changes in the fair value of foreign currency contracts in earnings as foreign exchange loss, net in the condensed consolidated statements of operations and comprehensive income. As of March 30, 2018, the Company had six outstanding foreign currency forward contracts with an aggregate notional amount of $14.0 million and Canadian dollars 0.1 2018. These foreign currency forward contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht and Canadian dollars. During the nine months ended March 30, 2018, the Company included an unrealized loss of $26 thousand from changes in the fair value of foreign currency contracts in earnings as foreign exchange loss, net in the condensed consolidated statements of operations and comprehensive income.

Trade accounts receivable, net

Trade accounts receivable, net	9 Months Ended
Trade accounts receivable, net	Mar. 29, 2019
Trade accounts receivable, net	7. Trade accounts receivable, net (amount in thousands) As of March 29, 2019 As of June 29, 2018 Trade accounts receivable $ 265,182 $ 246,972 Less: allowance for doubtful account (72 ) (60 ) Trade accounts receivable, net $ 265,110 $ 246,912

Inventory

Inventory	9 Months Ended
Inventory	Mar. 29, 2019
Inventory	8. Inventory (amount in thousands) As of March 29, 2019 As of June 29, 2018 Raw materials $ 104,322 $ 100,241 Work in progress 154,407 121,797 Finished goods 19,902 20,690 Goods in transit 9,638 17,516 288,269 260,244 Less: Inventory obsolescence (2,838 ) (2,557 ) Inventory, net $ 285,431 $ 257,687

Intangibles

Intangibles	9 Months Ended
Intangibles	Mar. 29, 2019
Intangibles	9. Intangibles The following tables present details of the Company’s intangibles: (amount in thousands) Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment Net As of March 29, 2019 Software $ 6,450 $ (4,740 ) $ — $ 1,710 Customer relationships 4,373 (1,934 ) (38 ) 2,401 Backlog 119 (118 ) — 1 Total intangibles $ 10,942 $ (6,792 ) $ (38 ) $ 4,112 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 The Company recorded amortization expense relating to intangibles of $0.3 million and $0.5 million for the three months ended March 29, 2019 and March 30, 2018, respectively, and $0.9 million and $1.4 million for the nine months ended March 29, 2019 and March 30, 2018, respectively. The weighted-average remaining life of customer relationships and backlog are: (years) As of March 29, 2019 As of June 29, 2018 Customer relationships 5.6 6.1 Backlog 0.3 0.9 Based on the carrying amount of intangibles as of March 29, 2019, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2019 (remaining three months) $ 421 2020 1,130 2021 952 2022 718 2023 454 Thereafter 437 Total $ 4,112

Goodwill

Goodwill	9 Months Ended
Goodwill	Mar. 29, 2019
Goodwill	10. Goodwill The changes in the carrying amount of goodwill from the acquisition of Fabrinet UK were as follows: (amount in thousands) Goodwill Balance as of June 29, 2018 $ 3,828 Foreign currency translation adjustment (5 ) Balance as of March 29, 2019 $ 3,823 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.

Borrowings

Borrowings	9 Months Ended
Borrowings	Mar. 29, 2019
Borrowings	11. Borrowings The Company’s total borrowings, including short-term and long-term borrowings, consisted of the following: Rate (1) Conditions Maturity As of March 29, 2019 As of June 29, 2018 Short-term borrowing: Current portion of long-term borrowing $ 3,250 $ 3,250 Long-term borrowing: Term loan borrowing: LIBOR + 1.50 Repayable in quarterly June 2023 $ 61,750 $ 64,188 61,750 64,188 Less: Current portion (3,250 ) (3,250 ) Non-current portion of long-term borrowing $ 58,500 $ 60,938 (1) LIBOR is London Interbank Offered Rate. The movements of long-term borrowing for the nine months ended March 29, 2019 and March 30, 2018 were as follows: Nine Months Ended (amount in thousands) March 29, 2019 March 30, 2018 Opening balance $ 64,188 $ 36,400 Repayments during the period (2,438 ) (10,200 ) Closing balance $ 61,750 $ 26,200 As of March 29, 2019, future maturities of long-term borrowing during each fiscal year were as follows: (amount in thousands) 2019 (remaining three months) $ 813 2020 3,250 2021 3,250 2022 3,250 2023 51,187 Total $ 61,750 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. This 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. 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 must 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. As of March 29, 2019 and June 29, 2 0 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 existing and future material of its 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 to the 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 March 29, 2019, 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 25, 2018, the Company entered into the Swap Agreement, which the Company did not designate as a hedging instrument. The Swap Agreement was used to mitigate interest rate risk and improve the interest rate profile of the Company’s debt obligations. The terms of the Swap Agreement effectively convert the floating interest rate of the term loans under the Facility Agreement to the fixed interest rate of 2.86% per annum through maturity in June 2023. The swap transactions are due and settled Undrawn available credit facilities classified by availability period of future borrowing as of March 29, 2019 and June 29, 2018 were as follows: (amount in thousands) March 29, 2019 June 29, 2018 Expiring within one year $ — $ — Expiring beyond one year $ 25,000 $ 25,000

Income taxes

Income taxes	9 Months Ended
Income taxes	Mar. 29, 2019
Income taxes	12. Income taxes As of March 29, 2019 and June 29, 2018, the liability for uncertain tax positions including accrued interest and penalties was $1.8 million and $2.3 million, respectively. The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2013 to 2017 remain open to examination by U.S. federal and state, and foreign tax authorities. The Company’s income tax is recognized based on the best estimate of the expected annual effective tax rate for the full financial year of each entity in the Company, adjusted for discrete items arising in that quarter. If the Company’s estimated annual effective tax rate changes, the Company makes a cumulative adjustment in that quarter. The Company’s effective tax rate is a function of the mix of tax rates in various jurisdictions. The Company is domiciled in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax in the Cayman Islands on income or capital gains. The Company initially received this undertaking for a 20-year period ending August 24, 2019, but was recently granted a renewal until March 6, 2039. The Company’s effective tax rate for the three months ended March 29, 2019 and March 30, 2018 was 5.2% and 6.2%, The Company’s effective tax rate for the nine months ended March 29, 2019 and March 30, 2018 was 5.2% and 6.3%,

Share-based compensation

Share-based compensation	9 Months Ended
Share-based compensation	Mar. 29, 2019
Share-based compensation	13. Share-based compensation Share-based compensation In determining the grant date fair value of share equity awards, the Company is required to make estimates of expected dividends to be issued, expected volatility of Fabrinet’s ordinary shares, expected forfeitures of the awards, risk free interest rates for the expected term of the awards and expected terms of the awards. Forfeitures are estimated at the time of grant and revised if necessary in subsequent periods if actual forfeitures differ from those estimates. The 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 three and nine months ended March 29, 2019 and March 30, 2018 was as follows: Three Months Ended Nine Months Ended (amount in thousands) March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 Share-based compensation expense by type of award: Restricted share units 3,621 3,904 11,650 13,338 Performance share units 803 1,422 1,723 4,366 Total share-based compensation expense 4,424 5,326 13,373 17,704 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 4,424 $ 5,326 $ 13,373 $ 17,704 Share-based compensation expense was recorded in the condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended Nine Months Ended March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 (amount in thousands) Cost of revenue $ 1,237 $ 1,564 $ 4,384 $ 5,277 Selling, general and administrative expense 3,187 3,762 8,989 12,427 Total share-based compensation expense $ 4,424 $ 5,326 $ 13,373 $ 17,704 The Company did not capitalize any share-based compensation expense as part of any asset costs during the three and nine months ended March 29, 2019 and March 30, 2018. Share-based award activity Fabrinet maintains the following equity incentive plans: the Amended and Restated 2010 Performance Incentive Plan (the “2010 Plan”) and the 2017 Inducement Equity Incentive Plan (the “2017 Inducement Plan”). On December 14, 2017, Fabrinet’s shareholders approved an amendment 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 March 29, 2019, there were an aggregate of 777,790 restricted share units outstanding and 455,358 performance share units outstanding under the 2010 Plan. As of March 29, 2019, there were 1,882,529 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 key employees. The 2017 Inducement Plan was adopted without shareholder approval in reliance on the “employment inducement exemption” provided under the rules of the New York Stock Exchange. As of March 29, 2019, there were an aggregate of 36,490 restricted share units outstanding and 97,306 performance share units outstanding under the 2017 Inducement Plan. As of March 29, 2019, there were 14,041 ordinary shares available for future grant under the 2017 Inducement Plan. Share options Fabrinet’s board of directors has the authority to determine the type of option and the number of shares subject to an option. Options generally vest and become exercisable over four years and expire, if not exercised, within seven years of the grant date. In the case of a grantee’s first grant, 25 percent of the underlying shares vest 12 months after the vesting commencement date and 1/ 4 3 1 The following summarizes share option activity under the 2010 Plan: Number of Shares Number of Exercisable Options Weighted- Average Exercise Price Weighted- Average Grant Date Fair Value Balance as of June 29, 2018 2,900 2,900 $ 15.16 Granted — — — Exercised — — Forfeited — — Expired (2,900 ) $ 15.16 Balance as of March 29, 2019 — — — Balance as of June 30, 2017 96,688 96,688 $ 15.70 Granted — — — Exercised (62,862 ) $ 15.80 Forfeited — — Expired (1,500 ) $ 25.05 Balance as of March 30, 2018 32,326 32,326 $ 15.05 As of March 29, 2019, there was no unrecognized compensation cost under the 2010 Plan. Restricted share units and performance share units Restricted share units and performance share units have been granted under the 2010 Plan and the 2017 Inducement Plan. Restricted share units granted to employees generally vest in equal installments over three or four years on each anniversary of the vesting commencement date. Restricted share units granted to non-employee directors generally cliff vest 100% on the first of January, approximately one year from the grant date, provided the director continues to serve through such date. Performance share units granted to executives will vest, if at all, at the end of a two-year performance period based on the Company’s achievement of pre-defined performance criteria, which consist of revenue targets and non-U.S. GAAP gross margin targets. The actual number of performance share units that may vest at the end of a performance period ranges from 0% to 100% of the award grant. The following table summarizes restricted share unit activity under the 2010 Plan and the 2017 Inducement Plan: Number of Shares Weighted- Average Grant Date Fair Value Per Share Balance as of June 29, 2018 1,073,580 $ 35.19 Granted 341,748 $ 48.77 Issued (496,854 ) $ 34.08 Forfeited (104,194 ) $ 38.50 Balance as of March 29, 2019 814,280 $ 41.14 Balance as of June 30, 2017 1,058,605 $ 31.59 Granted 474,777 $ 36.04 Issued (337,937 ) $ 28.01 Forfeited (95,981 ) $ 33.52 Balance as of March 30, 2018 1,099,464 $ 34.44 The following table summarizes performance share unit activity under the 2010 Plan and the 2017 Inducement Plan: Number of Shares Weighted- Average Grant Date Fair Value Per Share Balance as of June 29, 2018 605,892 $ 38.41 Granted 201,994 $ 48.02 Issued (227,268 ) $ 40.48 Forfeited (27,954 ) $ 39.35 Balance as of March 29, 2019 552,664 $ 41.02 Balance as of June 30, 2017 227,268 $ 40.48 Granted 378,624 $ 37.16 Issued — — Forfeited — — Balance as of March 30, 2018 605,892 $ 38.41 As of March 29, 2019, there was $14.7 million and $2.6 million of unrecognized share-based compensation expense related to restricted share units and performance share units, respectively, under the 2010 Plan and the 2017 Inducement Plan that is expected to be recorded over a weighted-average period of 2.59 years and 1.41 years, respectively. For the nine months ended March 29, 2019 and March 30, 2018, the Company withheld an aggregate of 231,624 shares and 101,080 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date, to settle the employees’ minimum statutory obligation for the applicable income and other employment taxes. For the nine months ended March 29, 2019 and March 30, 2018, the Company then remitted cash of $10.4 million and $4.0 million, respectively, to the appropriate tax authorities, and presented it as a financing activity within the condensed consolidated statements of cash flows. The payment had the effect on shares issued by the Company as it reduced the number of shares that would have been issued on the vesting date and was recorded as a reduction of additional paid-in capital.

Shareholders' equity

Shareholders' equity	9 Months Ended
Shareholders' equity	Mar. 29, 2019
Shareholders' equity	14. Shareholders’ equity Share capital Fabrinet’s authorized share capital is 500,000,000 ordinary shares, par value of $0.01 per ordinary share, and 5,000,000 preferred shares, par value of $0.01 per preferred share. For the three months ended March 29, 2019, Fabrinet issued 78,072 ordinary shares upon the vesting of restricted share units, net of shares withheld. For the nine months ended March 29, 2019, Fabrinet issued 492,498 ordinary shares upon the vesting of restricted share units, net of shares withheld. All such issued shares are fully paid. Treasury stock In August 2017, the Company’s board of directors approved a share repurchase program to permit the Company to repurchase up to $30.0 million worth of its issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations. In February 2018, the Company’s board of directors approved a $30.0 million increase to the share repurchase authorization. During the three and nine months ended March 29, 2019, 100,000 shares were repurchased under the program, at an average price per share of $ 53.78, totaling $ 5.4 million. As of March 29, 2019, the Company had a remaining authorization to purchase up to an additional $12.2 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)	9 Months Ended
Accumulated other comprehensive income (loss)	Mar. 29, 2019
Accumulated other comprehensive income (loss)	15. Accumulated other comprehensive income (loss) The (amount in thousands) Unrealized net (Losses) Gains on Available-for- sale securities Unrealized net (Losses) Gains on Derivative Instruments Foreign Currency Translation Adjustment Total Balance as of June 29, 2018 $ (1,091 ) $ 33 $ (199 ) $ (1,257 ) Other comprehensive income (loss) before reclassification adjustment 1,203 — (219 ) 984 Amounts reclassified out of AOCI to foreign exchange loss in the condensed consolidated statements of operations and comprehensive income 196 (2 ) — 194 Tax effects — — — — Other comprehensive income (loss) $ 1,399 $ (2 ) $ (219 ) $ 1,178 Balance as of March 29, 2019 $ 308 $ 31 $ (418 ) $ (79 ) Balance as of June 30, 2017 $ (72 ) $ 34 $ (310 ) $ (348 ) Other comprehensive (loss) income before reclassification adjustment (361 ) — 1,358 997 Amounts reclassified out of AOCI to foreign exchange loss in the condensed consolidated statements of operations and comprehensive income (687 ) (1 ) — (688 ) Tax effects — — — — Other comprehensive (loss) income $ (1,048 ) $ (1 ) $ 1,358 $ 309 Balance as of March 30, 2018 $ (1,120 ) $ 33 $ 1,048 $ (39 )

Commitments and contingencies

Commitments and contingencies	9 Months Ended
Commitments and contingencies	Mar. 29, 2019
Commitments and contingencies	16. Commitments and contingencies Bank guarantees As of March 29, 2019 and June 29, 2018, 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 $1.6 million and $1.5 million, respectively. Operating lease commitments The Company leases a portion of its capital equipment, vehicles, and certain land and buildings for its facilities in Thailand, the 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 $1.4 million and $1.3 million for the nine months ended March 29, 2019 and March 30, 2018, respectively. As of March 29, 2019, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows: (amount in thousands) 2019 (remaining three months) $ 450 2020 1,739 2021 1,336 2022 1,208 2023 1,182 Thereafter 227 Total minimum operating lease payments $ 6,142 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 March 29, 2019, the future minimum lease payments due under non-cancelable capital leases during each fiscal year were as follows: (amount in thousands) 2019 (remaining three months) $ 110 2020 410 2021 105 Total minimum capital lease payments $ 625 Purchase obligations Purchase obligations represent legally-binding commitments to purchase inventory and other commitments made in the normal course of business to meet operational requirements. Although open purchase orders are considered enforceable and legally binding, their terms generally give the Company the option to cancel, reschedule and/or adjust its requirements based on its business needs prior to the delivery of goods or performance of services. Obligations to purchase inventory and other commitments are generally expected to be fulfilled within one year. As of March 29, 2019, the Company had an outstanding commitment to third parties of $8.6 million. Indemnification of directors and officers Cayman Islands law does not limit the extent to which a company’s memorandum and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Fabrinet’s amended and restated memorandum and articles of association provide for indemnification of directors and officers for actions, costs, charges, losses, damages and expenses incurred in their capacities as such, except that such indemnification does not extend to any matter in respect of any fraud or dishonesty that may attach to any of them. In accordance with Fabrinet’s form of indemnification agreement for its directors and officers, Fabrinet has agreed to indemnify its directors and officers against certain liabilities and expenses incurred by such persons in connection with claims by reason of their being such a director or officer. Fabrinet maintains a director and officer liability insurance policy that may enable it to recover a portion of any future amounts paid under the indemnification agreements.

Business segments and geographi

Business segments and geographic information	9 Months Ended
Business segments and geographic information	Mar. 29, 2019
Business segments and geographic information	17. Business segments and geographic information Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is Fabrinet’s chief executive officer. As of March 29, 2019, the Company operated and internally managed a single operating segment. Accordingly, the Company does not accumulate discrete information with respect to separate product lines and does not have separate reportable segments. Total revenues are attributed to a particular geographic area based on the bill-to-location of the customers. The Company operates primarily in three geographic regions: North America, Asia-Pacific and Europe. The following table presents total revenues by geographic regions: Three Months Ended Nine Months Ended (amount in thousands) March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 North America $ 195,504 $ 160,926 $ 558,028 $ 470,084 Asia-Pacific 151,263 122,631 469,921 395,848 Europe 52,184 48,656 151,259 160,666 $ 398,951 $ 332,213 $ 1,179,208 $ 1,026,598 As of March 29, 2019 and March 30, 2018, the Company had approximately $31.7 million and $33.7 million, respectively, of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific and Europe. Significant customers The Company had two customers that each contributed to 10% or more of the Company’s total trade accounts receivable as of both March 29, 2019 and June 29, 2018.

Subsequent events

Subsequent events	9 Months Ended
Subsequent events	Mar. 29, 2019
Subsequent Events [Text Block]	18. Subsequent events On December 13, 2018, Thailand’s National Legislative Assembly (NLA) passed an amendment bill to the Thai Labour Protection Act B.E. 2541 (1998) to increase the required severance payment compensation for employees with 20 or more years of service from 300 days of wage to 400 days of wage. The law became effective on May 4, 2019. The Company has engaged an independent actuary to consider the effect of this change. In May 2019 , Fabrinet’s board of directors approved the repurchase of up to an additional $50.0 million of Fabrinet’s outstanding ordinary shares, bringing the aggregate authorization under Fabrinet’s existing share repurchase program to $110.0 million.

Accounting policies (Policies)

Accounting policies (Policies)	9 Months Ended
Accounting policies (Policies)	Mar. 29, 2019
Basis of presentation	Basis of presentation The accompanying condensed consolidated financial statements for Fabrinet as of March 29, 2019 and for the three and nine months ended March 29, 2019 and March 30, 2018 include normal recurring adjustments, necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 29, 2018. The balance sheet as of June 29, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and nine months ended March 29, 2019 may not be indicative of results for the year ending June 28, 2019 or any future periods.
Use of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and expenses during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, income taxes, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to differ from actual results, adjustments will be made in subsequent periods to reflect more current information.
Fiscal years	Fiscal years The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. The three months ended March 29, 2019 and March 30, 2018 each consisted of 13 weeks. The nine months ended March 29, 2019 and March 30, 2018 each consisted of 39 weeks. Fiscal year 2019 will be comprised of 52 weeks and will end on June 28, 2019.
Changes in Accounting Policies	Changes in Accounting Policies Except for the adoption of the new revenue recognition accounting standard described below and as disclosed in Note 3—Revenues, the Company has consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements.
Adoption of New Accounting Standard	Adoption of New Accounting Standard On June 30, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606), which created Accounting Standards Codification Topic 606 (“ASC 606”), using the modified retrospective method applied to those contracts which were not completed as of June 29, 2018. The modified retrospective method requires the Company to recognize the cumulative effect of the adoption of ASC 606, for all contracts with customers, to the opening balance of equity at June 30, 2018. Accordingly, the Company’s comparative financial information as of June 29, 2018 has not been adjusted and continues to be reported under ASC 605, Revenue Recognition (“ASC 605”). The cumulative effect adjustment recorded was based on the timing difference of revenue recognition between ASC 605 and ASC 606 related to certain manufacturing contracts with vendor-managed inventory arrangements. Under ASC 605, revenue for such contracts was recognized at the earlier of when the inventory was consumed by the customers or if not consumed, on the expiration of time specified in the contract. On adoption of ASC 606, revenue is recognized when inventory is shipped to customers. The following table shows the impact of adoption of ASC 606 on the adoption date of June 29, 2018 on the condensed consolidated balance sheets: Condensed Consolidated Balance Sheets Impact of Adopting ASC 606 (amount in thousands) Balance at June 29, 2018 Adjustment Balance at June 30, 2018 Assets Contract assets $ — $ 9,877 (1) $ 9,877 Inventory, net $ 257,687 $ (8,672 ) (2) $ 249,015 Liabilities and Shareholders’ Equity Retained earnings $ 632,423 $ 1,205 (3 $ 633,628 (1) Majority of adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized on shipment. (2) Adjustment relates to reduction of finished goods inventory for certain vendor-managed inventory arrangements. (3) Adjustment relates to cumulative effect adjustment upon adoption of ASC 606.
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, short-term investments, derivatives, accounts receivable and contract assets. Cash, cash equivalents, and short-term investments 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 short-term investments to term deposits and marketable securities to securities with a maturity not in excess of three years, and all marketable securities that the Company invests in are rated A1, P-1, F1, or better. The Company performs ongoing credit evaluations for credit worthiness of its customers and usually does not require collateral from its customers. Management has implemented a program to closely monitor near term cash collection and credit exposures to mitigate any material losses.
New Accounting Pronouncements - not yet adopted by the Company	New Accounting Pronouncements – not yet adopted by the Company In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-01, “Leases (Topic 842), Codification Improvements.” This ASU provided guidance transition disclosure in the annual period in which a change in accounting principle is made. For public business entities, this update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU is intended to improve the effectiveness of disclosures in the notes to the financial statements including 1) the development of a framework that promotes consistent decisions by the FASB about disclosure requirements and 2) the appropriate exercise of discretion by reporting entities. The amendment modifies the disclosure requirements on transferring between level 1 and level 2 and valuation processes of level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842), Target Improvements.” This ASU provided guidance on comparative reporting requirements for initial adoption. This ASU also provides additional guidance for lessors, on separating lease and non-lease components in a contract and allocating the consideration in the contract to the separate components. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases.” The amendment in this update affects narrow aspects of the guidance issued in the amendments in update 2016-02 on various matters. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This amendment modified the concept of impairment assessment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Public companies that are SEC filers should adopt the amendment for annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the amendments will impact its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Lease (Topic 842).” The core principle of Topic 842 is that a lessee should recognize the lease assets and liabilities that arise from leases in the statement of financial position. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. New Accounting Pronouncements – adopted by the Company In November 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-14, “Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606): Amendments to SEC Paragraphs Pursuant to the Staff Accounting Bulletin (“SAB”) No. 116 and SEC Release No. 33-10403”. This ASU amended, superseded and added certain SEC paragraphs in Topic 220, Topic 605 and Topic 606 to reflect the August 2017 issuance of SEC Staff Accounting Bulletin (SAB) 116 and SEC Release No. 33-10403. The SEC staff issued SAB 116 to align its revenue guidance with Accounting Standards Codification (ASC) 606. For public business entities, this update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. The Company adopted this standard along with the implementation of ASC 606 effective June 30, 2018 with immaterial impact to the unaudited condensed consolidated financial statements. In September 2017, the FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendment delays the mandatory adoption of Topic 606 and Topic 842 for certain entities, revises the guidance related to performance-based incentive fees in Topic 605 and revises the guidance related to leases in Topic 840 and Topic 842. The revisions to the lease guidance eliminate language specific to certain sale-leaseback arrangements, guarantees of lease residual assets and loans made by lessees to owner-lessors. Also included is an amendment to Topic 842 to retain the guidance in Topic 840 covering the impact of changes in tax rates on investments in leveraged leases. This guidance, which is effective immediately, generally relates to the adoption of Topic 606 and Topic 842. The Company adopted this standard along with the implementation of ASC 606 effective June 30, 2018 with immaterial impact to the unaudited condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects: Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings.” The amendment provides guidance to the Company in relation to the disclosure of the impact that ASU 2014-09, ASU 2016-02 and ASU 2016-13 will have on the Company’s financial statements when adopted. The Company adopted this standard along with the implementation of ASC 606 effective June 30, 2018 with immaterial impact to the unaudited condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” The amendments in this ASU provide guidance on the presentation of certain cash receipts and cash payments in the statement of cash flows in order to reduce diversity in existing practice. The amendments in ASU 2016-15 are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company adopt this new update effective June 30, 2018 with no impact to the unaudited condensed consolidated financial statements.

Accounting policies (Tables)

Accounting policies (Tables)	9 Months Ended
Accounting policies (Tables)	Mar. 29, 2019
Summary of Impact of Adoption of ASC 606 on Condensed Consolidated Balance Sheets	The following table shows the impact of adoption of ASC 606 on the adoption date of June 29, 2018 on the condensed consolidated balance sheets: Condensed Consolidated Balance Sheets Impact of Adopting ASC 606 (amount in thousands) Balance at June 29, 2018 Adjustment Balance at June 30, 2018 Assets Contract assets $ — $ 9,877 (1) $ 9,877 Inventory, net $ 257,687 $ (8,672 ) (2) $ 249,015 Liabilities and Shareholders’ Equity Retained earnings $ 632,423 $ 1,205 (3 $ 633,628 (1) Majority of adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized on shipment. (2) Adjustment relates to reduction of finished goods inventory for certain vendor-managed inventory arrangements. (3) Adjustment relates to cumulative effect adjustment upon adoption of ASC 606.

Revenues (Tables)

Revenues (Tables)	9 Months Ended
Revenues (Tables)	Mar. 29, 2019
Schedule of Activity in the Company's Contract Assets	The following table summarizes the activity in the Company’s contract assets during the nine-month period ended March 29, 2019: (amount in thousands) Contract Assets Beginning balance, June 30, 2018 $ — Cumulative effect adjustment upon adoption of ASC 606 9,877 Revenue recognized 89,131 Amounts collected or invoiced (88,465 ) Ending balance, March 29, 2019 $ 10,543
Schedule of Impact of Topic 606 on Financial Statements	Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited) Three and Nine Months Ended March 29, 2019 Impact of Adopting ASC 606 (Three months) Impact of Adopting ASC 606 (Nine months) (amount in thousands) As Reported Adjustment Balance without ASC 606 Adoption As Reported Adjustment Balance without ASC 606 Adoption Revenues $ 398,951 $ 2,793 (1) $ 401,744 $ 1,179,208 $ (666 ) (1) $ 1,178,542 Cost of revenues $ (352,193 ) $ (2,699 ) (2) $ (354,892 ) $ (1,046,610 ) $ 341 (2) $ (1,046,269 ) Gross profit $ 46,758 $ 94 (3) $ 46,852 $ 132,598 $ (325 ) (3) $ 132,273 Net income $ 28,635 $ 94 (3) $ 28,729 $ 87,998 $ (325 ) (3) $ 87,673 Earnings per share Basic $ 0.78 $ 0.00 $ 0.78 $ 2.39 $ (0.01 ) $ 2.38 Diluted $ 0.76 $ 0.00 $ 0.76 $ 2.35 $ (0.01 ) $ 2.34 (1) Adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized at shipping. (2) Adjustment relates to costs associated with revenue recognized. (3) Adjustment relates to net impact on net income upon adoption of ASC 606. Condensed Consolidated Balance Sheets (Unaudited) As of March 29, 2019 Impact of Adopting ASC 606 (amount in thousands) As Reported Adjustments Balance without ASC 606 Adoption Assets Contract assets $ 10,543 $ (10,543 ) (1) $ — Inventory, net $ 285,431 $ 9,013 (2) $ 294,444 Liabilities and Shareholders’ Equity Retained earnings $ 721,626 $ (1,530 ) (3) $ 720,096 (1) Majority of adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized on shipment. (2) Adjustment relates to reduction of finished goods inventory for vendor-managed inventory. (3) Adjustment relates to cumulative effect adjustment upon adoption of ASC 606.
Disaggregation of Revenue by Geographical Regions	The following table presents total revenues by geographic regions: (amount in thousands) Three Months Ended March 29, 2019 As a % of Total Revenues Nine Months Ended March 29, 2019 As a % of Total Revenues North America $ 195,504 49.0 % $ 558,028 47.3 % Asia-Pacific 151,263 37.9 469,921 39.9 Europe 52,184 13.1 151,259 12.8 $ 398,951 100.0 % $ 1,179,208 100.0 %
Revenues by End Market	The following table sets forth revenues by end market. (amount in thousands) Three Months Ended March 29, 2019 As a % of Total Revenues Nine Months Ended March 29, 2019 As a % of Total Revenues Optical communications $ 298,139 74.7 % $ 884,454 75.0 % Lasers, sensors and other 100,812 25.3 294,754 25.0 $ 398,951 100.0 % $ 1,179,208 100.0 %

Earnings per ordinary share (Ta

Earnings per ordinary share (Tables)	9 Months Ended
Earnings per ordinary share (Tables)	Mar. 29, 2019
Earnings Per Ordinary Share	Earnings per ordinary share was calculated as follows: Three Months Ended Nine Months Ended (amount in thousands except per share amounts) March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 Net income attributable to shareholders $ 28,635 $ 21,053 $ 87,998 $ 61,399 Weighted-average number of ordinary shares outstanding (thousands of shares) 36,891 37,275 36,786 37,400 Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares) 648 780 597 725 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,539 38,055 37,383 38,125 Basic earnings per ordinary share $ 0.78 $ 0.56 $ 2.39 $ 1.64 Diluted earnings per ordinary share $ 0.76 $ 0.55 $ 2.35 $ 1.61 Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1) 401 284 401 284 (1) Outstanding performance share units were not included in the computation of diluted earnings per ordinary shares because they are not expected to vest based on the Company’s current assessment of the related performance obligations.

Cash, cash equivalents and sh_2

Cash, cash equivalents and short-term investments (Tables)	9 Months Ended
Cash, cash equivalents and short-term investments (Tables)	Mar. 29, 2019
Cash, Cash Equivalents, and Marketable Securities	The Company’s cash, cash equivalents, and short-term investments can be analyzed as follows: Fair Value (amount in thousands) Carrying Cost Unrealized Loss Cash and Cash Equivalents Marketable Securities Other Investments As of March 29, 2019 Cash $ 160,494 $ — $ 160,494 $ — $ — Cash equivalents 5,913 — 5,913 — — Liquidity fund 20,387 — — — 20,387 Certificates of deposit and time deposit 26,027 — — — 26,027 Corporate bonds and commercial papers 130,418 (154 ) — 130,264 — U.S. agency and U.S. treasury securities 65,895 (89 ) — 65,806 — Sovereign and municipal securities — — — — — Total $ 409,134 $ (243 ) $ 166,407 $ 196,070 $ 46,414 As of June 29, 2018 Cash $ 146,778 $ — $ 146,778 $ — $ — Cash equivalents 11,324 — 11,324 — — Liquidity fund — — — — — Certificates of deposit and time deposit — — — — — 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 $ —
Available-for-Sale Securities Based on Stated Effective Maturities	The following table summarizes the cost and estimated fair value of marketable securities classified as available-for-sale securities based on stated effective maturities as of March 29, 2019: (amount in thousands) Carrying Cost Fair Value Due within one year $ 63,149 $ 63,146 Due between one to three years 126,071 125,861 Due after three years 7,093 7,063 Total $ 196,313 $ 196,070

Fair value of financial instr_2

Fair value of financial instruments (Tables)	9 Months Ended
Fair value of financial instruments (Tables)	Mar. 29, 2019
Financial Instruments Measured at Fair Value on Recurring Basis	Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of March 29, 2019 Assets Cash equivalents $ — $ 5,913 $ — $ 5,913 Liquidity fund — 20,387 — 20,387 Certificates of deposit and time deposit — 26,027 — 26,027 Corporate bonds and commercial papers — 130,264 — 130,264 U.S. agency and U.S. treasury securities — 65,806 — 65,806 Sovereign and municipal securities — — — — Derivative assets — — — — Total $ — $ 248,397 $ — $ 248,397 Liabilities Derivative liabilities $ — $ 2,626 (1) $ — $ 2,626 Total $ — $ 2,626 $ — $ 2,626 As of June 29, 2018 Assets Cash equivalents $ — $ 11,324 $ — $ 11,324 Liquidity fund — — — — Certificates of deposit and time deposit — — — — 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 (2) $ — $ 1,745 Total $ — $ 1,745 — $ 1,745 (1) Foreign currency forward contracts with a notional amount of $ 98.0 0.4 5.0 64.2 . (2) Foreign currency forward contracts with a notional amount of $ 7.0 0.4 30.0

Trade accounts receivable, net

Trade accounts receivable, net (Tables)	9 Months Ended
Trade accounts receivable, net (Tables)	Mar. 29, 2019
Trade Accounts Receivable, Net	(amount in thousands) As of March 29, 2019 As of June 29, 2018 Trade accounts receivable $ 265,182 $ 246,972 Less: allowance for doubtful account (72 ) (60 ) Trade accounts receivable, net $ 265,110 $ 246,912

Inventory (Tables)

Inventory (Tables)	9 Months Ended
Inventory (Tables)	Mar. 29, 2019
Inventories	(amount in thousands) As of March 29, 2019 As of June 29, 2018 Raw materials $ 104,322 $ 100,241 Work in progress 154,407 121,797 Finished goods 19,902 20,690 Goods in transit 9,638 17,516 288,269 260,244 Less: Inventory obsolescence (2,838 ) (2,557 ) Inventory, net $ 285,431 $ 257,687

Intangibles (Tables)

Intangibles (Tables)	9 Months Ended
Intangibles (Tables)	Mar. 29, 2019
Intangibles	The following tables present details of the Company’s intangibles: (amount in thousands) Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment Net As of March 29, 2019 Software $ 6,450 $ (4,740 ) $ — $ 1,710 Customer relationships 4,373 (1,934 ) (38 ) 2,401 Backlog 119 (118 ) — 1 Total intangibles $ 10,942 $ (6,792 ) $ (38 ) $ 4,112 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
Weighted-Average Remaining Life of Intangible Assets	The weighted-average remaining life of customer relationships and backlog are: (years) As of March 29, 2019 As of June 29, 2018 Customer relationships 5.6 6.1 Backlog 0.3 0.9
Estimated Future Amortization of intangibles	Based on the carrying amount of intangibles as of March 29, 2019, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2019 (remaining three months) $ 421 2020 1,130 2021 952 2022 718 2023 454 Thereafter 437 Total $ 4,112

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
Goodwill (Tables)	Mar. 29, 2019
Changes in Carrying Amount of Goodwill from Acquisition	The changes in the carrying amount of goodwill from the acquisition of Fabrinet UK were as follows: (amount in thousands) Goodwill Balance as of June 29, 2018 $ 3,828 Foreign currency translation adjustment (5 ) Balance as of March 29, 2019 $ 3,823 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)	9 Months Ended
Borrowings (Tables)	Mar. 29, 2019
Total Borrowings, Including Revolving and Long-Term Borrowings	The Company’s total borrowings, including short-term and long-term borrowings, consisted of the following: Rate (1) Conditions Maturity As of March 29, 2019 As of June 29, 2018 Short-term borrowing: Current portion of long-term borrowing $ 3,250 $ 3,250 Long-term borrowing: Term loan borrowing: LIBOR + 1.50 Repayable in quarterly June 2023 $ 61,750 $ 64,188 61,750 64,188 Less: Current portion (3,250 ) (3,250 ) Non-current portion of long-term borrowing $ 58,500 $ 60,938 (1) LIBOR is London Interbank Offered Rate.
Movements of Long-Term Loans	The movements of long-term borrowing for the nine months ended March 29, 2019 and March 30, 2018 were as follows: Nine Months Ended (amount in thousands) March 29, 2019 March 30, 2018 Opening balance $ 64,188 $ 36,400 Repayments during the period (2,438 ) (10,200 ) Closing balance $ 61,750 $ 26,200
Future Maturities of Long-Term Debt	As of March 29, 2019, future maturities of long-term borrowing during each fiscal year were as follows: (amount in thousands) 2019 (remaining three months) $ 813 2020 3,250 2021 3,250 2022 3,250 2023 51,187 Total $ 61,750
Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing	(amount in thousands) March 29, 2019 June 29, 2018 Expiring within one year $ — $ — Expiring beyond one year $ 25,000 $ 25,000

Share-based compensation (Table

Share-based compensation (Tables)	9 Months Ended
Share-based compensation (Tables)	Mar. 29, 2019
Effect of Recording Share-Based Compensation Expense	The effect of recording share-based compensation expense for the three and nine months ended March 29, 2019 and March 30, 2018 was as follows: Three Months Ended Nine Months Ended (amount in thousands) March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 Share-based compensation expense by type of award: Restricted share units 3,621 3,904 11,650 13,338 Performance share units 803 1,422 1,723 4,366 Total share-based compensation expense 4,424 5,326 13,373 17,704 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 4,424 $ 5,326 $ 13,373 $ 17,704
Share-Based Compensation Expense Recorded in Condensed Consolidated Statements of Operations and Comprehensive Income	Share-based compensation expense was recorded in the condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended Nine Months Ended March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 (amount in thousands) Cost of revenue $ 1,237 $ 1,564 $ 4,384 $ 5,277 Selling, general and administrative expense 3,187 3,762 8,989 12,427 Total share-based compensation expense $ 4,424 $ 5,326 $ 13,373 $ 17,704
Share Option Activity	The following summarizes share option activity under the 2010 Plan: Number of Shares Number of Exercisable Options Weighted- Average Exercise Price Weighted- Average Grant Date Fair Value Balance as of June 29, 2018 2,900 2,900 $ 15.16 Granted — — — Exercised — — Forfeited — — Expired (2,900 ) $ 15.16 Balance as of March 29, 2019 — — — Balance as of June 30, 2017 96,688 96,688 $ 15.70 Granted — — — Exercised (62,862 ) $ 15.80 Forfeited — — Expired (1,500 ) $ 25.05 Balance as of March 30, 2018 32,326 32,326 $ 15.05
Restricted Share Unit Activity	The following table summarizes restricted share unit activity under the 2010 Plan and the 2017 Inducement Plan: Number of Shares Weighted- Average Grant Date Fair Value Per Share Balance as of June 29, 2018 1,073,580 $ 35.19 Granted 341,748 $ 48.77 Issued (496,854 ) $ 34.08 Forfeited (104,194 ) $ 38.50 Balance as of March 29, 2019 814,280 $ 41.14 Balance as of June 30, 2017 1,058,605 $ 31.59 Granted 474,777 $ 36.04 Issued (337,937 ) $ 28.01 Forfeited (95,981 ) $ 33.52 Balance as of March 30, 2018 1,099,464 $ 34.44
Performance Share Unit Activity	The following table summarizes performance share unit activity under the 2010 Plan and the 2017 Inducement Plan: Number of Shares Weighted- Average Grant Date Fair Value Per Share Balance as of June 29, 2018 605,892 $ 38.41 Granted 201,994 $ 48.02 Issued (227,268 ) $ 40.48 Forfeited (27,954 ) $ 39.35 Balance as of March 29, 2019 552,664 $ 41.02 Balance as of June 30, 2017 227,268 $ 40.48 Granted 378,624 $ 37.16 Issued — — Forfeited — — Balance as of March 30, 2018 605,892 $ 38.41

Accumulated other comprehensi_2

Accumulated other comprehensive income (loss) (Tables)	9 Months Ended
Accumulated other comprehensive income (loss) (Tables)	Mar. 29, 2019
Changes in AOCI, Net of Tax	The (amount in thousands) Unrealized net (Losses) Gains on Available-for- sale securities Unrealized net (Losses) Gains on Derivative Instruments Foreign Currency Translation Adjustment Total Balance as of June 29, 2018 $ (1,091 ) $ 33 $ (199 ) $ (1,257 ) Other comprehensive income (loss) before reclassification adjustment 1,203 — (219 ) 984 Amounts reclassified out of AOCI to foreign exchange loss in the condensed consolidated statements of operations and comprehensive income 196 (2 ) — 194 Tax effects — — — — Other comprehensive income (loss) $ 1,399 $ (2 ) $ (219 ) $ 1,178 Balance as of March 29, 2019 $ 308 $ 31 $ (418 ) $ (79 ) Balance as of June 30, 2017 $ (72 ) $ 34 $ (310 ) $ (348 ) Other comprehensive (loss) income before reclassification adjustment (361 ) — 1,358 997 Amounts reclassified out of AOCI to foreign exchange loss in the condensed consolidated statements of operations and comprehensive income (687 ) (1 ) — (688 ) Tax effects — — — — Other comprehensive (loss) income $ (1,048 ) $ (1 ) $ 1,358 $ 309 Balance as of March 30, 2018 $ (1,120 ) $ 33 $ 1,048 $ (39 )

Commitments and contingencies (

Commitments and contingencies (Tables)	9 Months Ended
Commitments and contingencies (Tables)	Mar. 29, 2019
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases	As of March 29, 2019, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows: (amount in thousands) 2019 (remaining three months) $ 450 2020 1,739 2021 1,336 2022 1,208 2023 1,182 Thereafter 227 Total minimum operating lease payments $ 6,142
Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases	As of March 29, 2019, the future minimum lease payments due under non-cancelable capital leases during each fiscal year were as follows: (amount in thousands) 2019 (remaining three months) $ 110 2020 410 2021 105 Total minimum capital lease payments $ 625

Business segments and geograp_2

Business segments and geographic information (Tables)	9 Months Ended
Business segments and geographic information (Tables)	Mar. 29, 2019
Total Revenues by Geographic Regions	The following table presents total revenues by geographic regions: Three Months Ended Nine Months Ended (amount in thousands) March 29, 2019 March 30, 2018 March 29, 2019 March 30, 2018 North America $ 195,504 $ 160,926 $ 558,028 $ 470,084 Asia-Pacific 151,263 122,631 469,921 395,848 Europe 52,184 48,656 151,259 160,666 $ 398,951 $ 332,213 $ 1,179,208 $ 1,026,598

Summary of Impact of Adoption o

Summary of Impact of Adoption of ASC 606 on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands		Mar. 29, 2019		Jun. 30, 2018		Jun. 29, 2018
Assets
Contract assets		$ 10,543		$ 9,877
Inventory, net		285,431		249,015		$ 257,687
Liabilities and Shareholders' Equity
Retained earnings		721,626		633,628		632,423
ASU 2014-09 \| Balance without ASC 606 Adoption
Assets
Contract assets		0
Inventory, net		294,444				257,687
Liabilities and Shareholders' Equity
Retained earnings		720,096				632,423
ASU 2014-09 \| Adjustment
Assets
Contract assets		10,543		9,877	[1]	$ 9,877
Inventory, net		9,013	[2]	(8,672)	[3]
Liabilities and Shareholders' Equity
Retained earnings	[4]	$ (1,530)		$ 1,205

[1]	Majority of adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized on shipment.
[2]	Adjustment relates to reduction of finished goods inventory for vendor-managed inventory.
[3]	Adjustment relates to reduction of finished goods inventory for certain vendor-managed inventory arrangements.
[4]	Adjustment relates to cumulative effect adjustment upon adoption of ASC 606.

Revenues - Additional Informati

Revenues - Additional Information (Detail) (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 29, 2019	Mar. 29, 2019	Jun. 29, 2018
Revenue From Contract With Customers [Line Items]
Product warranty, description		The Company generally provides a warranty of between one to five years
Contract Liability	$ 0	$ 0	$ 0
Incremental cost	$ 0	$ 0
Minimum
Revenue From Contract With Customers [Line Items]
Product warranty term		1 year
Maximum
Revenue From Contract With Customers [Line Items]
Product warranty term		5 years

Schedule of Activity in the Com

Schedule of Activity in the Company's Contract Assets (Detail) $ in Thousands	9 Months Ended
	Mar. 29, 2019USD ($)
Revenue From Contract With Customers [Line Items]
Ending balance, March 29, 2019	$ 10,543
ASU 2014-09 \| Adjustment
Revenue From Contract With Customers [Line Items]
Cumulative effect adjustment upon adoption of ASC 606	9,877
Revenue recognized	89,131
Amounts collected or invoiced	(88,465)
Ending balance, March 29, 2019	$ 10,543

Schedule of Impact of Topic 606

Schedule of Impact of Topic 606 on Financial Statements (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended			9 Months Ended
		Mar. 29, 2019		Mar. 30, 2018	Mar. 29, 2019		Mar. 30, 2018	Jun. 30, 2018		Jun. 29, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues		$ 398,951			$ 1,179,208
Cost of revenues		(352,193)		$ (295,280)	(1,046,610)		$ (912,167)
Gross profit		46,758		36,933	132,598		114,431
Net income		$ 28,635		$ 21,053	$ 87,998		$ 61,399
Earnings per share
Basic		$ 0.78		$ 0.56	$ 2.39		$ 1.64
Diluted		$ 0.76		$ 0.55	$ 2.35		$ 1.61
Assets
Contract assets		$ 10,543			$ 10,543			$ 9,877
Inventory, net		285,431			285,431			249,015		$ 257,687
Liabilities and Shareholders' Equity
Retained earnings		721,626			721,626			633,628		632,423
ASU 2014-09 \| Adjustment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	[1]	2,793			(666)
Cost of revenues	[2]	(2,699)			341
Gross profit	[3]	94			(325)
Net income	[3]	$ 94			$ (325)
Earnings per share
Basic		$ 0			$ (0.01)
Diluted		$ 0			$ (0.01)
Assets
Contract assets		$ 10,543			$ 10,543			9,877	[4]	9,877
Inventory, net		9,013	[5]		9,013	[5]		(8,672)	[6]
Liabilities and Shareholders' Equity
Retained earnings	[7]	(1,530)			(1,530)			$ 1,205
ASU 2014-09 \| Balance without ASC 606 Adoption
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues		401,744			1,178,542
Cost of revenues		(354,892)			(1,046,269)
Gross profit		46,852			132,273
Net income		$ 28,729			$ 87,673
Earnings per share
Basic		$ 0.78			$ 2.38
Diluted		$ 0.76			$ 2.34
Assets
Contract assets		$ 0			$ 0
Inventory, net		294,444			294,444					257,687
Liabilities and Shareholders' Equity
Retained earnings		$ 720,096			$ 720,096					$ 632,423

[1]	Adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized at shipping.
[2]	Adjustment relates to costs associated with revenue recognized.
[3]	Adjustment relates to net impact on net income upon adoption of ASC 606.
[4]	Majority of adjustment relates to certain manufacturing contracts with vendor-managed inventory arrangements for which revenue was recognized on shipment.
[5]	Adjustment relates to reduction of finished goods inventory for vendor-managed inventory.
[6]	Adjustment relates to reduction of finished goods inventory for certain vendor-managed inventory arrangements.
[7]	Adjustment relates to cumulative effect adjustment upon adoption of ASC 606.

Disaggregation of Revenue by Ge

Disaggregation of Revenue by Geographical Regions (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 29, 2019	Mar. 29, 2019
Revenues	$ 398,951	$ 1,179,208
Revenues, percentage	100.00%	100.00%
North America
Revenues	$ 195,504	$ 558,028
Revenues, percentage	49.00%	47.30%
Asia-Pacific
Revenues	$ 151,263	$ 469,921
Revenues, percentage	37.90%	39.90%
Europe
Revenues	$ 52,184	$ 151,259
Revenues, percentage	13.10%	12.80%

Revenues - Revenues by End Mark

Revenues - Revenues by End Market (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018
Revenue from External Customer [Line Items]
Revenues	$ 398,951	$ 332,213	$ 1,179,208	$ 1,026,598
Revenues, percentage	100.00%		100.00%
Optical communications
Revenue from External Customer [Line Items]
Revenues	$ 298,139		$ 884,454
Revenues, percentage	74.70%		75.00%
Lasers, sensors, and other
Revenue from External Customer [Line Items]
Revenues	$ 100,812		$ 294,754
Revenues, percentage	25.30%		25.00%

Earnings Per Ordinary Share (De

Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income attributable to shareholders		$ 28,635	$ 21,053	$ 87,998	$ 61,399
Weighted-average number of ordinary shares outstanding (thousands of shares)		36,891	37,275	36,786	37,400
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares)		648	780	597	725
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		37,539	38,055	37,383	38,125
Basic earnings per ordinary share		$ 0.78	$ 0.56	$ 2.39	$ 1.64
Diluted earnings per ordinary share		$ 0.76	$ 0.55	$ 2.35	$ 1.61
Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares)	[1]	401	284	401	284

[1]	Outstanding performance share units were not included in the computation of diluted earnings per ordinary shares because they are not expected to vest based on the Company’s current assessment of the related performance obligations.

Earnings Per Ordinary Share - A

Earnings Per Ordinary Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	0	0

Cash, cash equivalents and sh_3

Cash, cash equivalents and short-term investments (Detail) - USD ($) $ in Thousands	Mar. 29, 2019	Jun. 29, 2018	Mar. 30, 2018
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents and Marketable securities, Carrying Cost	$ 409,134	$ 333,462
Marketable securities, Unrealized Gain/(Loss)	(243)	(1,091)
Cash and cash equivalents	166,407	158,102	$ 142,407
Marketable securities	196,070	174,269
Other Investments	46,414	0
Certificate of deposit and time deposit
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	26,027	0
Marketable securities, Unrealized Gain/(Loss)	0	0
Cash and cash equivalents	0	0
Marketable securities	0	0
Other Investments	26,027	0
Cash
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	160,494	146,778
Marketable securities, Unrealized Gain/(Loss)	0	0
Cash and cash equivalents	160,494	146,778
Marketable securities	0	0
Other Investments	0	0
Cash Equivalents
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	5,913	11,324
Marketable securities, Unrealized Gain/(Loss)	0	0
Cash and cash equivalents	5,913	11,324
Marketable securities	0	0
Other Investments	0	0
Corporate bonds and commercial papers
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	130,418	128,441
Marketable securities, Unrealized Gain/(Loss)	(154)	(736)
Cash and cash equivalents	0	0
Marketable securities	130,264	127,705
Other Investments	0	0
U.S. agency and U.S. treasury securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	65,895	43,734
Marketable securities, Unrealized Gain/(Loss)	(89)	(324)
Cash and cash equivalents	0	0
Marketable securities	65,806	43,410
Other Investments	0	0
Sovereign and Municipal Securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	0	3,185
Marketable securities, Unrealized Gain/(Loss)	0	(31)
Cash and cash equivalents	0	0
Marketable securities	0	3,154
Other Investments	0	0
Liquidity fund
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	20,387	0
Marketable securities, Unrealized Gain/(Loss)	0	0
Cash and cash equivalents	0	0
Marketable securities	0	0
Other Investments	$ 20,387	$ 0

Cash, cash equivalents and sh_4

Cash, cash equivalents and short-term investments - Additional Information (Detail) - USD ($)	2 Months Ended	9 Months Ended
	Feb. 28, 2019	Mar. 29, 2019
Cash, cash equivalents and marketable securities [Line Items]
Gain from sales and maturities of available-for-sale securities		$ 200,000
Impairment losses		0
Bank deposit held in various financial institutions		$ 40,000,000
Minimum
Cash, cash equivalents and marketable securities [Line Items]
Maturities period of marketable securities	3 months
Maximum
Cash, cash equivalents and marketable securities [Line Items]
Maturities period of marketable securities	3 years

Available-for-Sale Securities B

Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands	Mar. 29, 2019	Jun. 29, 2018
Investments Classified by Contractual Maturity Date [Line Items]
Total	$ 196,070	$ 174,269
Fair Value
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	63,146
Due between one to three years	125,861
Due after three years	7,063
Total	196,070
Carrying Cost
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	63,149
Due between one to three years	126,071
Due after three years	7,093
Total	$ 196,313

Financial Instruments Measured

Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 29, 2019		Jun. 29, 2018
Assets
Total	$ 248,397		$ 185,593
Liabilities
Derivative liabilities	2,626		1,745
Total	2,626		1,745
Certificate of deposit and time deposit
Assets
Marketable securities	26,027
Cash Equivalents
Assets
Marketable securities	5,913		11,324
Corporate bonds and commercial papers
Assets
Marketable securities	130,264		127,705
U.S. agency and U.S. treasury securities
Assets
Marketable securities	65,806		43,410
Sovereign and Municipal Securities
Assets
Marketable securities			3,154
Liquidity fund
Assets
Marketable securities	20,387
Significant Other Observable Inputs (Level 2)
Assets
Total	248,397		185,593
Liabilities
Derivative liabilities	2,626	[1]	1,745	[2]
Total	2,626		1,745
Significant Other Observable Inputs (Level 2) \| Certificate of deposit and time deposit
Assets
Marketable securities	26,027
Significant Other Observable Inputs (Level 2) \| Cash Equivalents
Assets
Marketable securities	5,913		11,324
Significant Other Observable Inputs (Level 2) \| Corporate bonds and commercial papers
Assets
Marketable securities	130,264		127,705
Significant Other Observable Inputs (Level 2) \| U.S. agency and U.S. treasury securities
Assets
Marketable securities	65,806		43,410
Significant Other Observable Inputs (Level 2) \| Sovereign and Municipal Securities
Assets
Marketable securities			$ 3,154
Significant Other Observable Inputs (Level 2) \| Liquidity fund
Assets
Marketable securities	$ 20,387

[1]	Foreign currency forward contracts with a notional amount of $98.0 million and Canadian dollars of $0.4 million. Foreign currency option contracts with a notional amount of $5.0 million. Interest rate swap agreement with a notional amount of $64.2 million subject to the Amortization Schedule—as of March 29, 2019, the outstanding amount was $61.8 million.
[2]	Foreign currency forward contracts with a notional amount of $7.0 million and Canadian dollars $0.4 million. Foreign currency option contracts with a notional amount of $30.0 million.

Financial Instruments Measure_2

Financial Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) $ in Millions, $ in Millions	Mar. 29, 2019USD ($)	Mar. 29, 2019CAD ($)	Jun. 29, 2018USD ($)	Jun. 29, 2018CAD ($)
Foreign currency forward contracts \| Fair Value, Measurements, Recurring
Fair Value Measurements at Reporting Date Using
Derivative liabilities, notional amount	$ 98	$ 0.4	$ 7	$ 0.4
Foreign currency option contracts \| Fair Value, Measurements, Recurring
Fair Value Measurements at Reporting Date Using
Derivative liabilities, notional amount	5		$ 30
Interest rate swap
Fair Value Measurements at Reporting Date Using
Derivative liabilities, notional amount	$ 64.2

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Additional Information (Detail) $ in Thousands, $ in Millions	Jul. 25, 2018USD ($)	Mar. 29, 2019USD ($)Contract	Mar. 30, 2018USD ($)Contract	Mar. 29, 2019CAD ($)Contract	Jun. 29, 2018USD ($)Contract
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative notional amount	$ 64,200	$ 61,800
Unrealized gain (loss) on derivatives		5,351	$ (1,393)
Foreign Currency Contract, Asset, Fair Value Disclosure		1,000
Derivative, Fixed Interest Rate	2.86%
Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative liabilities					$ 1,700
Derivative assets		$ 1,500
Foreign currency forward contracts \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract		45	6	45
Derivative notional amount		$ 98,000	$ 14,000	$ 0.1
Unrealized gain (loss) on derivatives			$ (26)
Foreign currency forward contracts \| Non designated \| Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period		2019-04	2018-04
Foreign currency forward contracts \| Non designated \| Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period		2019-08	2018-06
Foreign currency forward contracts \| Cash Flow Hedging
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract		0		0	0
Foreign currency option contracts \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract		1		1
Derivative notional amount		$ 5,000
Interest Rate Swap [Member]
Foreign Currency Fair Value Hedge Derivative [Line Items]
Interest Rate Derivative Assets, at Fair Value		1,600
Interest Rate Swap [Member] \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2023-06
Unrealized gain (loss) on derivatives		$ (1,600)
Canadian dollars forward contract \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract		1		1
Derivative notional amount		$ 400

Trade Accounts Receivable, Ne_2

Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	Mar. 29, 2019	Jun. 29, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 265,182	$ 246,972
Less: Allowance for doubtful account	(72)	(60)
Trade accounts receivable, net	$ 265,110	$ 246,912

Inventory (Detail)

Inventory (Detail) - USD ($) $ in Thousands	Mar. 29, 2019	Jun. 30, 2018	Jun. 29, 2018
Inventory [Line Items]
Raw materials	$ 104,322		$ 100,241
Work in progress	154,407		121,797
Finished goods	19,902		20,690
Goods in transit	9,638		17,516
Inventory, Gross, Total	288,269		260,244
Less: Inventory obsolescence	(2,838)		(2,557)
Inventory, net	$ 285,431	$ 249,015	$ 257,687

Intangibles (Detail)

Intangibles (Detail) - USD ($) $ in Thousands	6 Months Ended	9 Months Ended
Intangibles (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Mar. 29, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 10,761	$ 10,942
Accumulated Amortization	(5,838)	(6,792)
Foreign Currency Translation Adjustment	(43)	(38)
Net	4,880	4,112
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,269	6,450
Accumulated Amortization	(4,324)	(4,740)
Foreign Currency Translation Adjustment	0	0
Net	1,945	1,710
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,373	4,373
Accumulated Amortization	(1,413)	(1,934)
Foreign Currency Translation Adjustment	(42)	(38)
Net	2,918	2,401
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	119	119
Accumulated Amortization	(101)	(118)
Foreign Currency Translation Adjustment	(1)	0
Net	$ 17	$ 1

Intangibles - Additional Inform

Intangibles - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to intangibles	$ 0.3	$ 0.5	$ 0.9	$ 1.4

Weighted-Average Remaining Life

Weighted-Average Remaining Life of Intangible Assets (Detail) - Global CEM Solutions, Ltd.	6 Months Ended	9 Months Ended
	Jun. 29, 2018	Mar. 29, 2019
Customer relationships
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	6 years 1 month 6 days	5 years 7 months 6 days
Backlog
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	10 months 24 days	3 months 18 days

Estimated Future Amortization o

Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands	Mar. 29, 2019	Jun. 29, 2018
Finite-Lived Intangible Assets [Line Items]
2019 (remaining six months)	$ 421
2020	1,130
2021	952
2022	718
2023	454
Thereafter	437
Total	$ 4,112	$ 4,880

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill from Acquisition (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 29, 2019	Jun. 29, 2018
Goodwill [Line Items]
Beginning Balance	$ 3,828	$ 3,806
Foreign currency translation adjustment	(5)	22
Ending Balance	$ 3,823	$ 3,828

Total Borrowings, Including Sho

Total Borrowings, Including Short-Term and Long-Term Borrowings (Detail) - USD ($) $ in Thousands		9 Months Ended
		Mar. 29, 2019	Jun. 29, 2018	Mar. 30, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Current portion of long-term borrowing		$ 3,250	$ 3,250
Long-term borrowings		61,750	64,188	$ 26,200	$ 36,400
Less: Current portion		(3,250)	(3,250)
Non-current portion of long-term borrowings		$ 58,500	60,938
Loan Payable Due June 2023
Debt Instrument [Line Items]
Rate	[1]	LIBOR +1.50% per annum
Conditions		Repayable in quarterly installments
Term		2023-06
Long-term borrowings		$ 61,750	$ 64,188
Loan Payable Due June 2023 \| LIBOR
Debt Instrument [Line Items]
Margin above rate		1.50%

[1]	LIBOR is London Interbank Offered Rate.

Movements of Long-Term Loans (D

Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Debt Instrument [Line Items]
Opening balance	$ 64,188	$ 36,400
Repayments during the period	(2,438)	(10,200)
Closing balance	$ 61,750	$ 26,200

Future Maturities of Long-Term

Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 29, 2019	Jun. 29, 2018	Mar. 30, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
2019 (remaining six months)	$ 813
2020	3,250
2021	3,250
2022	3,250
2023	51,187
Total	$ 61,750	$ 64,188	$ 26,200	$ 36,400

Borrowings - Additional Informa

Borrowings - Additional Information (Detail) - USD ($)	9 Months Ended
Borrowings - Additional Information (Detail) - USD ($)	Mar. 29, 2019	Jul. 25, 2018	Jun. 29, 2018	Jun. 04, 2018	May 22, 2014
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	$ 200,000,000
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%
Interest expense from remaining unamortized debt issuance costs	$ 100,000
Derivative, fixed interest rate		2.86%
Net loss on interest rate swap agreement	200,000
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 \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	1.50%
Maximum \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	2.25%
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 \| Maximum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	2.50%
Base Rate
Line of Credit Facility [Line Items]
Credit line interest rate	base rate, 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, additional commitments				200,000,000
Term Loan Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	50,000,000
Line of credit facility amount outstanding	$ 61,800,000		$ 64,200,000	$ 65,000,000
Derivative, fixed interest rate		2.86%

Undrawn Available Credit Facili

Undrawn Available Credit Facilities Classified by Availability Period of Future Borrowing (Detail) - USD ($) $ in Thousands	Mar. 29, 2019	Jun. 29, 2018
Expiring within one year
Line of Credit Facility [Line Items]
Undrawn available credit facilities		$ 0
Expiring beyond one year
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 25,000	$ 25,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018	Jun. 29, 2018
Income Taxes [Line Items]
Liability for uncertain tax positions including accrued interest and penalties	$ 1.8		$ 1.8		$ 2.3
Corporate effective income tax rate	5.20%	6.20%	5.20%	6.30%
CAYMAN ISLANDS
Income Taxes [Line Items]
Tax exemption renewal period	20 years
Tax Holiday Additional Renewal Maturity Date	Mar. 6, 2039

Effect of Recording Share-Based

Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018
Share-based compensation expense by type of award:
Restricted share units	$ 3,621	$ 3,904	$ 11,650	$ 13,338
Performance share units	803	1,422	1,723	4,366
Total share-based compensation expense	4,424	5,326	13,373	17,704
Tax effect on share-based compensation expense	0	0	0	0
Net effect on share-based compensation expense	$ 4,424	$ 5,326	$ 13,373	$ 17,704

Share-Based Compensation Expens

Share-Based Compensation Expense Recorded in Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 4,424	$ 5,326	$ 13,373	$ 17,704
Cost of Revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,237	1,564	4,384	5,277
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 3,187	$ 3,762	$ 8,989	$ 12,427

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($)	Dec. 14, 2017	Mar. 29, 2019	Mar. 30, 2018	Nov. 02, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation costs capitalized		$ 0	$ 0
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes		231,624	101,080
Tax withholdings related to net share settlement of restricted share units		$ 10,427,000	$ 4,030,000
Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of additional shares authorized	2,100,000
Ordinary shares available for future grant		1,882,529
Unrecognized share-based compensation expense		$ 0
Stock Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares available for future grant		14,041
Shares authorized for future issuance				160,000
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 \| 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		455,358
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 \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding		777,790
Unrecognized share-based compensation expense		$ 14,700,000
Unrecognized compensation expense, weighted-average period for recognition		2 years 7 months 2 days
Restricted Share Units \| Stock Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding		36,490
Restricted Share Units \| Vesting Option One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year		3 years
Restricted Share Units \| Vesting Option Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year		4 years
Restricted Share Units \| Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year		1 year
Restricted Share Units \| Non Employee Director \| Vest on the first of January
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		100.00%
Performance Share Units \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 2,600,000
Unrecognized compensation expense, weighted-average period for recognition		1 year 4 months 27 days
Performance Share Units \| Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year		1 year

Share Option Activity (Detail)

Share Option Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares	9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Jun. 30, 2017
Number of shares
Beginning balance	2,900	96,688
Granted	0	0
Exercised	0	(62,862)
Forfeited	0	0
Expired	(2,900)	(1,500)
Ending balance	0	32,326
Number of Exercisable Options
Number of Exercisable Options	2,900	32,326	96,688
Weighted-Average Exercise Price
Beginning balance	$ 15.16	$ 15.70
Granted	0	0
Exercised	0	15.80
Forfeited	0	0
Expired	15.16	25.05
Ending balance	0	15.05
Weighted-Average Grant Date Fair Value
Granted	$ 0	$ 0

Restricted Share Unit Activity

Restricted Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Restricted Share Units - $ / shares	9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Number of restricted share units
Number of share units, Beginning Balance	1,073,580	1,058,605
Number of share units, Granted	341,748	474,777
Number of share units, Issued	(496,854)	(337,937)
Number of share units, Forfeited	(104,194)	(95,981)
Number of share units, Ending Balance	814,280	1,099,464
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 35.19	$ 31.59
Weighted-average grant date fair value per share, Granted	48.77	36.04
Weighted-average grant date fair value per share, Issued	34.08	28.01
Weighted-average grant date fair value per share, Forfeited	38.50	33.52
Weighted-average grant date fair value per share, Ending Balance	$ 41.14	$ 34.44

Performance Share Unit Activity

Performance Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Performance Share Units - $ / shares	9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Number of performance share units
Number of share units, Beginning Balance	605,892	227,268
Number of share units, Granted	201,994	378,624
Number of share units, Issued	(227,268)	0
Number of share units, Forfeited	(27,954)	0
Number of share units, Ending Balance	552,664	605,892
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 38.41	$ 40.48
Weighted-average grant date fair value per share, Granted	48.02	37.16
Weighted-average grant date fair value per share, Issued	40.48	0
Weighted-average grant date fair value per share, Forfeited	39.35	0
Weighted-average grant date fair value per share, Ending Balance	$ 41.02	$ 38.41

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018	Jun. 29, 2018	Feb. 28, 2018	Aug. 31, 2017
Shareholders Equity [Line Items]
Ordinary shares, authorized share capital	500,000,000		500,000,000		500,000,000
Ordinary shares, par value	$ 0.01		$ 0.01		$ 0.01
Preferred shares, shares authorized	5,000,000		5,000,000		5,000,000
Preferred shares, par value	$ 0.01		$ 0.01		$ 0.01
Share repurchase program, approved amount							$ 30
Share repurchase program, increase in shares authorized for repurchase						$ 30
Treasury Stock, carrying basis	$ 12.2		$ 12.2
Shares repurchase issued and outstanding	100,000	422,452	100,000	738,425
Treasury stock, retired, cost method, amount	$ 5.4		$ 5.4
Treasury stock acquired, average cost per share	$ 53.78		$ 53.78
Stock Plan Nineteen Ninety Nine and Twenty Ten
Shareholders Equity [Line Items]
Ordinary shares issued upon vesting of restricted shares	78,072		492,498

Changes in AOCI, Net of Tax (De

Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 801,533	$ 721,770	$ 740,939	$ 681,574
Total other comprehensive income, net of tax	998	173	1,178	309
Ending Balance	828,888	735,543	828,888	735,543
Unrealized net (Losses) Gains on Available-for- sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(1,091)	(72)
Other comprehensive income (loss) before reclassification adjustment			1,203	(361)
Amounts reclassified out of AOCI to foreign exchange loss in the condensed consolidated statements of operations and comprehensive income			196	(687)
Tax effects			0	0
Total other comprehensive income, net of tax			1,399	(1,048)
Ending Balance	308	(1,120)	308	(1,120)
Unrealized net (Losses) Gains on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			33	34
Other comprehensive income (loss) before reclassification adjustment			0	0
Amounts reclassified out of AOCI to foreign exchange loss in the condensed consolidated statements of operations and comprehensive income			(2)	(1)
Tax effects			0	0
Total other comprehensive income, net of tax			(2)	(1)
Ending Balance	31	33	31	33
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(199)	(310)
Other comprehensive income (loss) before reclassification adjustment			(219)	1,358
Amounts reclassified out of AOCI to foreign exchange loss in the condensed consolidated statements of operations and comprehensive income			0	0
Tax effects			0	0
Total other comprehensive income, net of tax			(219)	1,358
Ending Balance	(418)	1,048	(418)	1,048
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(1,257)	(348)
Other comprehensive income (loss) before reclassification adjustment			984	997
Amounts reclassified out of AOCI to foreign exchange loss in the condensed consolidated statements of operations and comprehensive income			194	(688)
Tax effects			0	0
Total other comprehensive income, net of tax			1,178	309
Ending Balance	$ (79)	$ (39)	$ (79)	$ (39)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Jun. 29, 2018
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of the company	$ 1.6		$ 1.5
Rental expense under operating leases	1.4	$ 1.3
Thailand
Commitments and Contingencies Disclosure [Line Items]
Outstanding commitment to third parties	$ 8.6
Maximum
Commitments and Contingencies Disclosure [Line Items]
Operating lease expiration year	2023

Future Minimum Lease Payments D

Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases (Detail) $ in Thousands	Mar. 29, 2019USD ($)
Operating Leased Assets [Line Items]
2019 (remaining three months)	$ 450
2020	1,739
2021	1,336
2022	1,208
2023	1,182
Thereafter	227
Total minimum operating lease payments	$ 6,142

Future Minimum Lease Payments_2

Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases (Detail) $ in Thousands	Mar. 29, 2019USD ($)
Capital Leased Assets [Line Items]
2019 (remaining three months)	$ 110
2020	410
2021	105
Total minimum capital lease payments	$ 625

Business Segments and Geograp_3

Business Segments and Geographic Information - Additional Information (Detail) $ in Millions	9 Months Ended
	Mar. 29, 2019USD ($)CustomerSegment	Jun. 29, 2018Customer	Mar. 30, 2018USD ($)
Segment Reporting Information [Line Items]
Number of operating segment \| CustomerSegment	1
Number of customers that contributed more than 10% of trade accounts receivable	1	2
North America
Segment Reporting Information [Line Items]
Long-lived assets \| $	$ 31.7		$ 33.7

Total Revenues by Geographic Re

Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 29, 2019	Mar. 30, 2018
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 398,951	$ 332,213	$ 1,179,208	$ 1,026,598
North America
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	195,504	160,926	558,028	470,084
Asia-Pacific
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	151,263	122,631	469,921	395,848
Europe
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 52,184	$ 48,656	$ 151,259	$ 160,666

Subsequent events - Additional

Subsequent events - Additional Information (Detail) - USD ($) $ in Millions	May 02, 2019	May 01, 2019	Aug. 31, 2017
Stock Repurchase Program, Authorized Amount			$ 30
Subsequent Event [Member]
Stock Repurchase Program, Authorized Amount	$ 110	$ 50