Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 27, 2019 | Oct. 25, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Current Fiscal Year End Date | --06-26 | |
Amendment Flag | false | |
Document Period End Date | Sep. 27, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001408710 | |
Entity Registrant Name | Fabrinet | |
Trading Symbol | FN | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Ordinary Shares | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-34775 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Tax Identification Number | 98-1228572 | |
Entity Address, Address Line One | c/o Intertrust Corporate Services (Cayman) Limited | |
Entity Address, Address Line Two | 190 Elgin Avenue | |
Entity Address, City or Town | George Town | |
Entity Address, Country | KY | |
Entity Address, Postal Zip Code | KY1-9005 | |
City Area Code | 66 | |
Local Phone Number | 2-524-9600 | |
Entity Common Stock, Shares Outstanding | 37,002,648 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 |
Current assets | ||
Cash and cash equivalents | $ 168,535 | $ 180,839 |
Short-term restricted cash | 22,180 | |
Short-term investments | 238,266 | 256,493 |
Trade accounts receivable, net | 273,616 | 260,602 |
Contract assets | 11,620 | 12,447 |
Inventory, net | 321,511 | 293,612 |
Prepaid expenses | 6,313 | 8,827 |
Other current assets | 9,122 | 11,015 |
Total current assets | 1,051,163 | 1,023,835 |
Non-current assets | ||
Long-term restricted cash | 7,402 | 7,402 |
Property, plant and equipment, net | 212,270 | 210,686 |
Intangibles, net | 3,661 | 3,887 |
Operating right-of-use assets | 6,185 | |
Goodwill | 3,603 | 3,705 |
Deferred tax assets | 5,201 | 5,679 |
Other non-current assets | 225 | 124 |
Total non-current assets | 238,547 | 231,483 |
Total Assets | 1,289,710 | 1,255,318 |
Current liabilities | ||
Long-term borrowings, current portion, net | 12,157 | 3,250 |
Trade accounts payable | 252,147 | 257,617 |
Contract liabilities | 2,266 | 2,239 |
Capital lease liability, current portion | 391 | 398 |
Operating lease liability, current portion | 1,550 | |
Income tax payable | 2,534 | 1,801 |
Accrued payroll, bonus and related expenses | 18,713 | 16,510 |
Accrued expenses | 12,014 | 8,997 |
Other payables | 21,649 | 22,236 |
Total current liabilities | 323,421 | 313,048 |
Non-current liabilities | ||
Long-term borrowings, non-current portion, net | 48,631 | 57,688 |
Deferred tax liability | 3,791 | 3,561 |
Capital lease liability, non-current portion | 102 | |
Operating lease liability, non-current portion | 4,635 | |
Severance liabilities | 15,872 | 15,209 |
Other non-current liabilities | 2,665 | 2,611 |
Total non-current liabilities | 75,594 | 79,171 |
Total Liabilities | 399,015 | 392,219 |
Commitments and contingencies (Note 18) | ||
Shareholders' equity | ||
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of September 27, 2019 and June 28, 2019) | ||
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 38,389,128 shares and 38,230,753 shares issued at September 27, 2019 and June 28, 2019, respectively; and 37,000,025 shares and 36,841,650 shares outstanding at September 27, 2019 and June 28, 2019, respectively) | 384 | 382 |
Additional paid-in capital | 160,148 | 158,299 |
Less: Treasury shares (1,389,103 shares and 1,389,103 shares as of September 27, 2019 and June 28, 2019, respectively) | (47,779) | (47,779) |
Accumulated other comprehensive loss | (2,598) | (2,386) |
Retained earnings | 780,540 | 754,583 |
Total Shareholders' Equity | 890,695 | 863,099 |
Total Liabilities and Shareholders' Equity | $ 1,289,710 | $ 1,255,318 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 27, 2019 | Jun. 28, 2019 |
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 | 38,389,128 | 38,230,753 |
Ordinary shares, shares outstanding | 37,000,025 | 36,841,650 |
Treasury stocks, shares | 1,389,103 | 1,389,103 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Revenues | $ 399,296 | $ 377,177 |
Cost of revenues | (353,309) | (336,901) |
Gross profit | 45,987 | 40,276 |
Selling, general and administrative expenses | (16,000) | (14,437) |
Expenses related to reduction in workforce | (85) | |
Operating income, net | 29,987 | 25,754 |
Interest income | 2,098 | 1,444 |
Interest expense | (2,393) | (634) |
Foreign exchange (loss) gain, net | (1,953) | 3,068 |
Other income, net | 377 | 77 |
Income before income taxes | 28,116 | 29,709 |
Income tax expense | (2,159) | (1,859) |
Net income | 25,957 | 27,850 |
Other comprehensive (loss) income, net of tax: | ||
Change in net unrealized gain on available-for-sale securities | 35 | 288 |
Change in net unrealized gain (loss) on derivative instruments | 39 | (1) |
Change in net retirement benefits plan – prior service cost | 83 | |
Change in foreign currency translation adjustment | (369) | (200) |
Total other comprehensive (loss) income, net of tax | (212) | 87 |
Net comprehensive income | $ 25,745 | $ 27,937 |
Earnings per share | ||
Basic | $ 0.70 | $ 0.76 |
Diluted | $ 0.69 | $ 0.75 |
Weighted-average number of ordinary shares outstanding (thousands of shares) | ||
Basic | 36,913 | 36,625 |
Diluted | 37,529 | 37,140 |
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. 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 | 27,850 | 27,850 | ||||
Other comprehensive income | 87 | 87 | ||||
Cumulative effect adjustment from adoption of ASC 606 | 1,205 | 1,205 | ||||
Share-based compensation | 4,980 | 4,980 | ||||
Issuance of ordinary shares | $ 4 | (4) | ||||
Issuance of ordinary shares (in shares) | 394,876 | |||||
Tax withholdings related to net share settlement of restricted share units | (8,904) | (8,904) | ||||
Ending Balance at Sep. 28, 2018 | 766,157 | $ 381 | 147,869 | (42,401) | (1,170) | 661,478 |
Ending Balance (in shares) at Sep. 28, 2018 | 38,118,609 | |||||
Beginning Balance at Jun. 28, 2019 | 863,099 | $ 382 | 158,299 | (47,779) | (2,386) | 754,583 |
Beginning Balance (in shares) at Jun. 28, 2019 | 38,230,753 | |||||
Net income | 25,957 | 25,957 | ||||
Other comprehensive income | (212) | (212) | ||||
Share-based compensation | 5,995 | 5,995 | ||||
Issuance of ordinary shares | $ 2 | (2) | ||||
Issuance of ordinary shares (in shares) | 158,375 | |||||
Tax withholdings related to net share settlement of restricted share units | (4,144) | (4,144) | ||||
Ending Balance at Sep. 27, 2019 | $ 890,695 | $ 384 | $ 160,148 | $ (47,779) | $ (2,598) | $ 780,540 |
Ending Balance (in shares) at Sep. 27, 2019 | 38,389,128 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Cash flows from operating activities | ||
Net income for the period | $ 25,957 | $ 27,850 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 7,465 | 7,412 |
Loss on disposal of property, plant and equipment | 8 | 46 |
Loss on disposal of intangibles | 149 | |
(Gain) loss from sales and maturities of available-for-sale securities | (67) | 178 |
Amortization of investment discount (premium) | 65 | (94) |
Amortization of deferred debt issuance costs | 2 | |
(Reversal of) allowance for doubtful accounts | (5) | |
Unrealized loss (gain) on exchange rate and fair value of foreign currency forward contracts | 1,479 | (4,232) |
Unrealized loss (gain) on fair value of interest rate swaps | 1,671 | (50) |
Share-based compensation | 5,995 | 4,980 |
Deferred income tax | 705 | 3 |
Severance liabilities | 811 | 872 |
Other non-cash expenses | 53 | (282) |
Reversal of inventory obsolescence | (264) | (478) |
Changes in operating assets and liabilities | ||
Trade accounts receivable | (12,967) | (10,887) |
Contract assets | 827 | (280) |
Inventory | (27,634) | (28,904) |
Other current assets and non-current assets | 4,225 | (979) |
Trade accounts payable | (5,263) | 29,182 |
Contract liabilities | 27 | |
Income tax payable | 733 | 1,680 |
Other current liabilities and non-current liabilities | (1,176) | 8,427 |
Net cash provided by operating activities | 2,647 | 34,593 |
Cash flows from investing activities | ||
Purchase of short-term investments | (62,880) | (1,955) |
Proceeds from sales of short-term investments | 49,472 | 24,181 |
Proceeds from maturities of short-term investments | 31,673 | 19,863 |
Purchase of property, plant and equipment | (6,343) | (5,410) |
Purchase of intangibles | (246) | (78) |
Net cash provided by investing activities | 11,676 | 36,601 |
Cash flows from financing activities | ||
Payment of debt issuance costs | (153) | |
Proceeds from long-term borrowings | 60,938 | |
Repayment of long-term borrowings | (60,938) | (813) |
Repayment of capital lease liability | (109) | (123) |
Release of restricted cash held in connection with business acquisition | (3,478) | |
Withholding tax related to net share settlement of restricted share units | (4,144) | (8,904) |
Net cash used in financing activities | (4,406) | (13,318) |
Net increase in cash, cash equivalents and restricted cash | 9,917 | 57,876 |
Movement in cash, cash equivalents and restricted cash | ||
Cash, cash equivalents and restricted cash at beginning of period | 188,241 | 161,433 |
Increase in cash, cash equivalents and restricted cash | 9,917 | 57,876 |
Effect of exchange rate on cash, cash equivalents and restricted cash | (41) | 667 |
Cash, cash equivalents and restricted cash at end of period | 198,117 | 219,976 |
Non-cash investing and financing activities | ||
Construction, software and equipment-related payables | $ 9,816 | $ 3,830 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | $ 168,535 | $ 219,976 |
Restricted cash | 29,582 | |
Cash, cash equivalents and restricted cash | $ 198,117 | $ 219,976 |
Business and organization
Business and organization | 3 Months Ended |
Sep. 27, 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, low-volume, high-mix |
Accounting policies
Accounting policies | 3 Months Ended |
Sep. 27, 2019 | |
Accounting policies | 2. Accounting policies Basis of presentation The accompanying unaudited 10-K The balance sheet as of June 28, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three months ended September 27, 2019 may not be indicative of results for the year ending June 26, 2020 or any future periods. Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and expenses during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, income taxes, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to be ent 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 September 27, 2019 and September 28, 2018 each consisted of 13 weeks. Fiscal year 2020 will be comprised of 52 weeks and will end on June 26, 2020. Changes in Accounting Policies Except for the adoption of the new lease accounting standard and the derivatives and hedging standard described below, the Company has consistently applied the accounting policies to all periods presented in these unaudited condensed consolidated financial statements. Adoption of New Accounting Standard s On June 29, 2019, the Company adopted the new lease accounting standard, Accounting Standards Codification Topic 842 (“ASC 842”), which provides guidance for the recognition and disclosure of lease arrangements. The Company adopted ASC 842 using the modified retrospective transition approach. Accordingly, the Company’s comparative financial statements as of June 28, 2019 have not been adjusted. ASC 842 also provides practical expedients for the Company’s ongoing accounting. The Company elected the short-term lease recognition exemption for its operating leases with a term of less than 12 months, which will not require recognition of right of use (“ROU”) assets or lease liabilities for these leases. For periods prior to adoption of ASC 842, the Company is required to present disclosures in accordance with ASC Topic 840. The following disclosure provides the future minimum lease payments due under non-cancelable (amount in thousands) 2020 $ 1,746 2021 1,342 2022 1,219 2023 1,172 Thereafter 230 Total future minimum operating lease payments $ 5,709 The most significant impact of the adoption of ASC 842 was the recognition of ROU assets and lease liabilities for operating leases with a term of greater than 12 months, while the accounting for finance leases will remain substantially unchanged. See Note 10 for further details. On June 29, 2019, the Company also adopted Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 simplifies existing hedge accounting guidance in order to better portray in financial statements the economic impact of risk management activities in the financial statements, including eliminating the separate measurement and presentation of hedge ineffectiveness. Prior to the adoption of ASU 2017-12, the Company wa s s Amounts recorded as other comprehensive income are subsequently reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings 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 , 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 short-term P-1, The Company enters into derivative contracts with financial institutions with reputable credit and monitors the credit profiles of these counterparties. 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 May 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-05, 2019-05 326-20 825-10 instrument-by-instrument held-to-maturity 820-10 825-10. In April 2019, the 2019-04, 2019-04 In August 2018, the FASB issued ASU 2018-13, 2018-13 In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 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. This ASU will be effective for the Company in the first quarter of fiscal 2021. The Company does not expect this update will impact its condensed consolidated financial statements. |
Revenues from contracts with cu
Revenues from contracts with customers | 3 Months Ended |
Sep. 27, 2019 | |
Revenues from contracts with customers | 3. Revenues from contracts with customers 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 under under A performance obligation is a contractual promise 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 under the contracts and, therefore, is 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 determined that it did not have contractual rights to bill profit for work in progress in the event of a contract termination, an event which is expected to be infrequent. Further, in limited circumstances, substantive acceptance by the customer will result in the deferral of revenue until acceptance is formally received from the customer. Judgment may be required in determining if the acceptance clause provides for substantive acceptance. 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. Our customers generally are obligated to purchase finished goods that we have manufactured according to their demand requirements. Materials that are not consumed by our customers within a specified period of time, or that are no longer required due to a product’s cancellation or end-of-life, 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 other than one 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 prior to generating unaudited condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. During the three-month period A contract liability is recognized when the Company has advance payment arrangements with customers. The contract liabilities balance is normally recognized as revenue within six months. The following tables summarize the activity in the Company’s contract assets and contract liabilities during the three s (amount in thousands) Contract Beginning balance, June 28, 2019 $ 12,447 Revenue recognized 21,653 Amounts collected or invoiced (22,480 ) Ending balance, September 27, 2019 $ 11,620 (amount in thousands) Contract Liabilities Beginning balance, June 28, 2019 $ 2,239 Additions advance payment received during the period 2,230 Revenue recognized (2,203 ) Ending balance, September 27, 2019 $ 2,266 Contract Costs Consistent with the guidance in ASC 340-40-25-1, such costs that such s 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. Revenue by Geographic Area Total revenues are attributed to a particular geographic area based on the bill-to-location Company’s (amount in thousands , except percentages) Three Months September 27, 2019 As a % of Total North America $ 200,947 50.3 % Asia-Pacific 118,423 29.7 Europe 79,926 20.0 $ 399,296 100.0 % (amount in thousands , except percentages) Three Months September 28, 2018 As a % of Total North America $ 179,826 47.7 % Asia-Pacific 151,947 40.3 Europe 45,404 12.0 $ 377,177 100.0 % The following table sets forth our revenues by end market. (amount in thousands , except percentages) Three Months September 27, 2019 As a % of Total Optical communications $ 302,379 75.7 % Lasers, sensors and other 96,917 24.3 Total $ 399,296 100.0 % (amount in thousands , except percentages) Three Months September 28, 2018 As a % of Total Optical communications $ 280,768 74.4 % Lasers, sensors and other 96,409 25.6 Total $ 377,177 100.0 % |
Earnings per ordinary share
Earnings per ordinary share | 3 Months Ended |
Sep. 27, 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 restricted share units and performance share units. Earnings per ordinary share was calculated as follows: Three Months Ended (amount in thousands except per share amounts) September 27, 2019 September 28, 2018 Net income attributable to shareholders $ 25,957 $ 27,850 Weighted-average number of ordinary shares outstanding (thousands of shares) 36,913 36,625 Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares) 616 515 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,529 37,140 Basic earnings per ordinary share $ 0.70 $ 0.76 Diluted earnings per ordinary share $ 0.69 $ 0.75 Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1) 50 351 (1) These |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 3 Months Ended |
Sep. 27, 2019 | |
Cash, cash equivalents and short-term investments | 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 Marketable Other As of September 27, 2019 Cash $ 167,772 $ — $ 167,772 $ — $ — Cash equivalents 763 — 763 — — Liquidity funds 20,701 — — — 20,701 Certificates of deposit and time deposits 35,020 — — — 35,020 Corporate bonds and commercial papers 105,029 294 — 105,323 — U.S. agency and U.S. treasury securities 77,078 144 — 77,222 — Total $ 406,363 $ 438 $ 168,535 $ 182,545 $ 55,721 As of June 28, 2019 Cash $ 178,019 $ — $ 178,019 $ — $ — Cash equivalents 2,820 — 2,820 — — Liquidity funds 20,552 — — — 20,552 Certificates of deposit and time deposits 35,028 — — — 35,028 Corporate bonds and commercial papers 130,959 297 — 131,256 — U.S. agency and U.S. treasury securities 69,552 105 — 69,657 — Total $ 436,930 $ 402 $ 180,839 $ 200,913 $ 55,580 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 short-term investments consist of 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 short-term investments available-for-sale September 27, 2019 June 29, 2018 (amount in thousands) Carrying Cost Fair Value Carrying Cost Fair Value Due within one year $ 55,726 $ 55,786 $ 69,746 $ 69,830 Due between one to five years 126,381 126,759 130,765 131,083 Total $ 182,107 $ 182,545 $ 200,511 $ 200,913 During the three months ended September 27, 2019, the Company recognized a realized gain of $67 thousands available-for-sale As of September 27, 2019, the Company considered the declines in market value of its short-term investments portfolio to be temporary in nature and did not consider any of its securities other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. No impairment losses were recorded for the three months ended September 27, 2019. |
Fair value of financial instrum
Fair value of financial instruments | 3 Months Ended |
Sep. 27, 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 September 27, 2019 Assets Cash equivalents $ — $ 763 $ — $ 763 Liquidity funds — 20,701 — 20,701 Certificates of deposit and time deposits — 35,020 — 35,020 Corporate bonds and commercial papers — 105,323 — 105,323 U.S. agency and U.S. treasury securities — 77,222 — 77,222 Derivative assets — 298 (1) — 298 Total $ — $ 239,327 $ — $ 239,327 Liabilities Derivative liabilities $ — $ 4,223 (2) $ — $ 4,223 Total $ — $ 4,223 $ — $ 4,223 Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of June 28, 2019 Assets Cash equivalents $ — $ 2,820 $ — $ 2,820 Liquidity funds — 20,552 — 20,552 Certificates of deposit and time deposits — 35,028 — 35,028 Corporate bonds and commercial papers — 131,256 — 131,256 U.S. agency and U.S. treasury securities — 69,657 — 69,657 Derivative assets — 2,201 (3) — 2,201 Total $ — $ 261,514 $ — $ 261,514 Liabilities Derivative liabilities $ — $ 2,591 (4) $ — $ 2,591 Total $ — $ 2,591 $ — $ 2,591 (1) Foreign currency forward contracts with a notional amount of $ 74.0 (2) Two interest rate swap agreements with an aggregate notional amount of $ 125.1 . (3) Foreign currency forward contracts with notional amount of $72.0 million and Canadian dollars 0.6 million. (4) Interest rate swap agreement with a notional 64.2 Derivative Financial Instruments The Company utilizes derivative financial instruments to hedge (i) foreign exchange risk associated with certain foreign currency denominated assets and liabilities and other foreign currency transactions, and (ii) interest rate risk associated with its The Company minimizes the credit risk associated with its derivative instruments by limiting the exposure to any single counterparty and by entering into derivative instruments only with counterparties that meet the Company’s minimum credit quality standard. Foreign Currency Forward 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 enters into foreign currency forward As of September 27, 2019, the Company had sixty-one f $74.0 million with maturity dates from October 2019 through January 2020. 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. During the three months period recorded unrealized loss of $1.9 million from changes in the fair value of foreign currency contracts in earnings as foreign exchange gain, net in the unaudited condensed consolidated statements of operations and comprehensive income. As of September 28, 2018, the Company had three outstanding foreign currency forward contracts with a n aggregate n aggregate October through December 2018 included unrealized gain of $2.8 million from changes in the fair value of foreign currency contracts in earnings as foreign exchange gain, net in the unaudited condensed consolidated statements of operations and comprehensive income. Interest Rate Swap Agreement s The Company enter ed n aggregate 125.1 . As of September 28, 2018, the Company had one outstanding interest rate swap agreement with a notional amount of $64.2 million. On July 25, 2018, Fabrinet Thailand entered into an interest rate swap agreement to effectively convert the floating interest rate of its term loan under the Bank of America Credit Facility Agreement to a fixed interest rate of 2.86% per annum through the scheduled maturity of the term loan in June 2023 (see Note 13). The Company did not designate this interest rate swap for hedge accounting. On September 3, 2019, the Company entered into a new term loan agreement under a Credit Facility Agreement with the Bank of Ayudhya Public Company Limited (the “Bank”) (see Note 13) and on September 10, 2019, repaid in full the outstanding term loan under the Bank of America Credit Facility (see Note 13). In conjunction with the funding of the new term loan, the Company entered into a second interest rate swap agreement. The combination of both of these interest rate swaps effectively convert the floating interest rate of the Company’s new term loan with the Bank to a fixed interest rate of 4.36% per annum through the maturity of the term loan in June 2024. On September 27, 2019, the Company designated these two interest rate swaps as a cash flow hedge for the Company’s term loan under the Credit Facility Agreement with the Bank. The combination of these two interest rate swaps ied bec a the Company has unaudited condensed consolidated balance sheets, and The following table provides a summary of the impacts of derivative gain (loss) of our cash flow hedges on the una u Three Months Ended (amount in thousands Financial statements line item September 27, 2019 September 28, 2018 Derivatives gain Interest rate swaps Other comprehensive $ 39 $ — Derivatives gain Interest rate swaps Interest expenses — — Prior to September 27, 2019, these interest rate swaps were not designated as cash flow hedges . A loss $1.7 million and unrealized gain of unaudited Fair Value The following table provides the fair values of our derivative financial instruments for the periods presented: September 27, 2019 June 28, 2019 (amount in thousands) Derivative Derivative Derivative Derivative Derivatives not designated as hedging instruments Foreign currency forward contracts $ 340 $ (42 ) $ 2,201 $ — Interest rate swaps — — $ — $ (2,591 ) Derivatives designated as hedging instruments Interest rate swaps — (4,223 ) $ — $ — Gross amounts of derivatives 340 (4,265 ) $ 2,201 $ (2,591 ) Gross amounts of derivatives offset in the balance sheet (42 ) 42 $ — $ — Net amounts of derivatives $ 298 $ (4,223 ) $ 2,201 $ (2,591 ) The Company recorded fair value of derivative financial instrument in unaudited condensed consolidated balance sheets as followings: Derivative Financial Instruments Financial statements line item Fair Value of Derivative Assets Other current assets Fair Value of Derivative Liabilities Accrued expenses Settlement Our derivative instruments are typically settled monthly or quarterly. The following table presents cash settlements (paid) received related to the below derivative instruments: Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 Foreign currency forward contract $ — $ — Interest rate swaps (57 ) (82 ) Total $ (57 ) $ (82 ) |
Trade accounts receivable, net
Trade accounts receivable, net | 3 Months Ended |
Sep. 27, 2019 | |
Trade accounts receivable, net | 7. Trade accounts receivable, net (amount in thousands) As of September 27, 2019 As of June 28, 2019 Trade accounts receivable $ 273,707 $ 260,698 Less: allowance for doubtful account (91 ) (96 ) Trade accounts receivable, net $ 273,616 $ 260,602 |
Inventory
Inventory | 3 Months Ended |
Sep. 27, 2019 | |
Inventory | 8. Inventory (amount in thousands) As of September 27, 2019 As of June 28, 2019 Raw materials $ 133,574 $ 115,008 Work - - 151,518 142,039 Finished goods 26,039 24,916 Goods in transit 12,112 13,645 323,243 295,608 Less: Inventory obsolescence (1,732 ) (1,996 ) Inventory, net $ 321,511 $ 293,612 |
Restricted cash
Restricted cash | 3 Months Ended |
Sep. 27, 2019 | |
Restricted cash | 9. Restricted cash As of September 27, 2019 and June 28, 2019, the Company had two s o f and one outstanding standby letter of credit of 6.0 million Euros, respectively, related to the Company’s support of a customer’s transfer of certain manufacturing operations from Berlin, Germany to the Company’s facilities in Thailand. As of September 27, 2019 and June 28, 2019, the standby letters of credit were backed by cash collateral of $29.6 million and $ 7.4 |
Leases
Leases | 3 Months Ended |
Sep. 27, 2019 | |
Leases | 10. Leases The Company leases facilities under non-cancelable the dates Certain of these lease arrangements provide the Company the ability to extend the lease from one Operatin g The Company determines if an arrangement contains a lease at inception. The Company applies the guidance in ASC 842 to determine whether a contract is, or contains, a lease. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Operating leases are included in operating lease ROU The Company rents certain real estate under agreements that are classified as operating leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease The following table shows the impact of adoption of ASC 842 on the adoption date of June 29, 2019 on the consolidated balance sheets: Consolidated Balance Sheets Impact of Adopting ASC 842 (amount in thousands) Balance at Adjustment Balance at Assets Operating lease ROU assets $ — $ 5,370 $ 5,370 Liabilities and Shareholders’ Equity Operating lease liabilities – current $ — $ 1,601 $ 1,601 Operating lease liabilities – non current $ — $ 3,769 $ 3,769 As of September 27, 2019, the maturities of the Company’s operating lease liabilities are as follows: (amount in thousands) 2020 (remaining nine months) $ 1,323 2021 1,669 2022 1,520 2023 1,427 2024 495 Thereafter 279 Total undiscounted lease payments 6,713 Less (528 ) Total present value of lease liabilities $ 6,185 ( 1 (1) Included current portion of operating lease liabilities of $ 1.6 Rental expense related to the Company’s operating leases is recognized on a straight-line basis over the lease term. Rental expense for long - s Rental expense for short-term lease s Capital leases In connection with the acquisition of Fabrinet UK, the Company assumed the capital lease commitments of several machines and equipment, with various expiration dates through September 2020 As of September 27, 2019, the Company ha d and property, plant and equipment unaudited s As of September 27, 2019, the future minimum lease payments under non-cancelable (amount in thousands) 2020 $ 300 2021 100 Total minimum capital lease payments 400 Less: Future finance charge on capital leases (9 ) Present value of capital lease $ 391 Representing capital lease liabilities Current $ 391 Non-current — Total capital lease liabilities $ 391 As of September 27, 2019, the present value of capital lease s as (amount in thousands) 2020 $ 292 2021 99 Present value of capital lease $ 391 The following summarizes additional information related to the Company’s operating leases and capital leases: As of September 27, 2019 Weighted-average remaining lease term (in years) Operating leases 4.4 Capital leases 1.0 Weighted-average discount rate Operating leases 3.9 % Capital leases 4.1 % T (amount in thousands) Three Months Ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 458 Financing cash flows from capital leases $ 109 ROU assets obtained in exchange for lease liabilities $ 6,185 Capital lease assets $ 317 |
Intangibles
Intangibles | 3 Months Ended |
Sep. 27, 2019 | |
Intangibles | 11. Intangibles The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated F Net As of September 27, 2019 Software $ 6,698 $ (5,004 ) $ — $ 1,694 Customer relationships 4,373 (2,253 ) (153 ) 1,967 Backlog 119 (119 ) — — Total intangibles $ 11,190 $ (7,376 ) $ (153 ) $ 3,661 (amount in thousands) Gross Accumulated Foreign Net As of June 28, 2019 Software $ 6,582 $ (4,868 ) $ — $ 1,714 Customer relationships 4,373 (2,096 ) (104 ) 2,173 Backlog 119 (119 ) — — Total intangibles $ 11,074 $ (7,083 ) $ (104 ) $ 3,887 The Company recorded amortization expense relating to intangibles of $0.3 million and $0.3 million for the three months ended September 27, 2019 and September 28, 2018, respectively. The weighted-average remaining life of customer relationships was (years) As of September 27, As of June 28, 2019 Customer relationships 5.2 5.4 Based on the carrying amount of intangibles as of September 27, 2019, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2020 (remaining nine months) $ 862 2021 1,020 2022 784 2023 516 2024 288 Thereafter 191 Total $ 3,661 |
Goodwill
Goodwill | 3 Months Ended |
Sep. 27, 2019 | |
Goodwill | 12. 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 28, 2019 $ 3,705 Foreign currency translation adjustment (102 ) Balance as of September 27, 2019 $ 3,603 (amount in thousands) Goodwill Balance as of June 29, 2018 $ 3,828 Foreign currency translation adjustment (6 ) Balance as of September 28, 2018 $ 3,822 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 | 3 Months Ended |
Sep. 27, 2019 | |
Borrowings | 13. Borrowings The Company’s total borrowings, including current portion non-current portion of ( amount in thousands Rate Conditions Maturity As of September 27, 2019 As of June 28, 2019 Long-term borrowings, current portion, net: Long-term borrowings, current portion $ 12,188 $ 3,250 Less: Unamortized debt issuance costs – current portion (31 ) — Long-term borrowings, current portion, net $ 12,157 3,250 Long-term borrowings, non-current Term loan borrowings: 1-month LIBOR +1.50% per annum (1) Repayable in quarterly installments June 2023 $ — $ 60,938 3-month LIBOR +1.35% per annum (1) Repayable in quarterly installments June 2024 60,938 — Less: Current portion (12,188 ) (3,250 ) Less: Unamortized debt issuance costs – non-current (119 ) — Long-term borrowings, non-current $ 48,631 $ 57,688 (1) We have entered into interest rate swaps that effectively fix a series of our future interest payments on our term loans. Refer to Note 6 . The movements of long-term borrowings for the three months ended September 27, 2019 and September 28, 2018 were as follows: Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 Opening balance $ 60,938 $ 64,188 Borrowings during the period 60,938 — Repayments during the period (60,938 ) (813 ) Closing balance $ 60,938 $ 63,375 As of September 27, 2019, future maturities of long-term borrowings during each fiscal year were as follows: (amount in thousands) 2020 (remaining nine months) $ 9,140 2021 12,188 2022 15,234 2023 12,188 2024 12,188 Total $ 60,938 Credit facility agreements: Bank of Ayudhya Public Company Limited On August 20, 2019, Fabrinet Thailand (the “Borrower”), and the (approximately $ million based on the applicable exchange rate as of September , and $ million which may be used for, among other things, an overdraft facility, short-term loans against promissory notes, a letter of guarantee facility, a term loan facility and foreign exchange facilities. The Bank may approve any request for extension of credit under the Credit Facility Agreement and may increase or decrease any facility amount in its sole discretion. Under the Credit Facility Agreement, on August 20, 2019, the Borrower and the Bank entered into a Term Loan Agreement pursuant to which the Borrower drew down pre-existing The term loan accrues interest at 3-month LIBOR plus 1.35% re-borrowed. million Any borrowings under the Credit Facility Agreement, including those borrowing under the Term Loan Agreement are guaranteed by Fabrinet and secured by land and buildings in Pathumthani and Chonburi Provinces owned by the Borrower in Thailand. The Term Loan Agreement contains affirmative and negative covenants applicable to the Borrower, including delivery of financial statements and other information, compliance with laws, maintenance of insurance, restrictions on granting security interests or liens on its assets, disposing of its assets, incurring indebtedness and making acquisitions. While the term loan is outstanding, the Borrower is required to maintain a loan to value of the mortgaged real property ratio of not greater than 65%. If the loan to value ratio is not maintained, the Borrower will be required to provide additional security or prepay a portion of the term loan in order to restore the required ratio. The Company is also required to maintain a debt service coverage ratio of at least 1.25 times and a debt to equity ratio less than or equal to 1.0 times. In the case of any payment of a dividend by the Company, its debt service coverage ratio must be at least 1.50 times. At September 27, 2019, the Company was in compliance with all of its covenants under the Term Loan Agreement The events of default in the Term Loan Agreement include failure to pay amounts due under the Term Loan Agreement or the related finance documents when due, failure to comply with the covenants under the Term Loan Agreement or the related finance documents, cross default with other indebtedness of the Borrower, events of bankruptcy or insolvency in respect of the Borrower, and the occurrence of any event or series of events that in the opinion of the Bank has or is reasonably likely to have a material adverse effect. At September 27, 2019, there was $ 60.9 Bank of America, N.A. On May 22, 2014, the Company and a of banks entered into a syndicated senior credit facility agreement led by Bank of America (the “Bank of America Facility Agreement”). The Bank of America Facility Agreement 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. From time to time, we amended the Bank of America Facility Agreement, before repaying all outstanding amounts under the agreement and terminating such agreement on September 10, 2019 The most recent amendment on June 4, 2018, (i) reduced the revolving commitments thereunder from $150.0 million to $25.0 million, (ii) refinanced the outstanding amounts under the revolving loan and term loan facilities into a $65.0 million term loan which was to be repaid in quarterly installments through the maturity date of June 4, 2023; and (iii) reduced the interest rate margins and commitment fees. The term loan bore interest, at the Company’s option, at a rate per annum equal to a LIBOR rate plus a spread of 1.50% to 2.25% base rate plus a spread of 0.50% to 1.25% million 0.7 million During the three months ended September 27, 2019, the Company fully repaid $61.0 million in principal, accrued interest and other fees under the agreement. The early termination of this agreement did not trigger any early termination fees. At September 27, 2019, there were no amounts outstanding under the Bank of America Facility Agreement. At June 28, 2019, there was $60.9 million outstanding under the Bank of America Facility Agreement, related to the term loan. |
Income taxes
Income taxes | 3 Months Ended |
Sep. 27, 2019 | |
Income taxes | 14. Income taxes As of September 27, 2019 and June 28, 2019, the liability for uncertain tax positions including accrued interest and penalties was $2.2 million and $2.1 million, respectively. The Company expects the estimated amount of liability associated with its uncertain tax positions to decrease within the next 12 months due to the lapse of the applicable statute of limitations in foreign tax jurisdictions. The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2014 to 2018 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 effective tax rate for the Company for the three months ended September 27, 2019 and September 28, 2018 was 5.0% and 6.7%, respectively, of net income. The decrease was primarily due to the fact that the Company had lower income subject to tax during the first quarter of fiscal year 2020 as compared to the same period in fiscal year 2019. |
Share-based compensation
Share-based compensation | 3 Months Ended |
Sep. 27, 2019 | |
Share-based compensation | 15. Share-based compensation Share-based compensation 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 months ended September 27, 2019 and September 28, 2018 was as follows: Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 Share-based compensation expense by type of award: Restricted share units $ 4,398 $ 4,685 Performance share units 1,597 295 Total share-based compensation expense 5,995 4,980 Tax effect on share-based compensation expense — — Net effect on share-based compensation expense $ 5,995 $ 4,980 Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 Cost of revenue $ 1,720 $ 1,847 Selling, general and administrative expense 4,275 3,133 Total share-based compensation expense $ 5,995 $ 4,980 The Company did not capitalize any share-based compensation expense as part of any asset costs during the three months ended September 27, 2019 and September 28, 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”). The 2010 Plan and 2017 Inducement Plan are collectively referred to as the “Equity Incentive Plans”. As of September 27, 2019, there were an aggregate of 806,573 restricted share units outstanding and 436,304 performance share units outstanding under the 2010 Plan. As of September 27, 2019, there were 1,302,154 ordinary shares available for future grant under the 2010 Plan. On November 2, 2017, the Company adopted the 2017 Inducement Plan with a reserve of 160,000 ordinary shares authorized for future issuance solely for the granting of inducement share options and equity awards to new employees. The 2017 Inducement Plan was adopted without shareholder approval in reliance on the “employment inducement exemption” provided under the New York Stock Exchange Listed Company Manual. As of September 27, 2019, there were an aggregate of 24,327 restricted share units outstanding under the 2017 Inducement Plan. As of September 27, 2019, there were 111,347 ordinary shares available for future grant under the 2017 Inducement 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 four years non-employee Performance share units granted to executives will vest, if at all, at the end of a two-year pre-defined n on- GAAP or operating margin t The following table summarizes restricted share unit activity under the Equity Incentive Plans: Number of Shares Weighted- Balance as of June 28, 2019 800,751 $ 42.48 Granted 292,321 $ 48.39 Issued (240,595 ) $ 39.62 Forfeited (21,577 ) $ 42.00 Balance as of September 27, 2019 830,900 $ 45.40 Number of Shares Weighted- Balance as of June 29, 2018 1,073,580 $ 35.19 Granted 255,821 $ 48.02 Issued (369,757 ) $ 34.34 Forfeited (29,845 ) $ 38.32 Balance as of September 28, 2018 929,799 $ 38.95 The following table summarizes performance share unit activity under the Equity Incentive Plans: Number of Shares Weighted- Per Share Balance as of June 28, 2019 548,500 $ 40.97 Granted 238,474 $ 48.39 Issued — — Forfeited (350,670 ) $ 36.99 Balance as of September 27, 2019 436,304 $ 48.22 Number of Shares Weighted- 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 September 28, 2018 552,664 $ 41.02 The fair value of restricted share units and performance share units is based on the market value of our ordinary shares on the date of grant. As of September 27, 2019, there was $20.2 million and $11.3 million of unrecognized share-based compensation expense related to restricted share units and performance share units, respectively, under the Equity Incentive Plans that is expected to be recorded over a weighted-average period of 2.9 years and 1.7 years, respectively. For the three months ended September 27, 2019 and September 28, 2018, the Company withheld an aggregate of 82,220 shares and 201,877 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date to settle the employees’ minimum statutory obligation for the applicable income and other employment taxes. For the three months ended September 27, 2019 and September 28, 2018, the Company then remitted cash of $4.1 million and $8.9 million, respectively, to the appropriate taxing authorities, and presented it as a financing activity within the unaudited condensed consolidated statements of cash flows. The payment paid-in |
Shareholders' equity
Shareholders' equity | 3 Months Ended |
Sep. 27, 2019 | |
Shareholders' equity | 16. Shareholders’ equity Share capital Fabrinet’s authorized share capital is 500,000,000 ordinary shares, par value of $0.01 per ordinary share, and 5,000,000 preferred shares, par value of $0.01 per preferred share. For the three months ended September 27, 2019, Fabrinet issued 158,375 ordinary shares upon the vesting of restricted share units, net of shares withheld. For the three months ended September 28, 2018, Fabrinet issued 395,148 ordinary shares upon the vesting of restricted share units, net of shares withheld. All such issued shares are fully paid. Treasury shares In August 2017, the Company’s board of directors approved a share repurchase program to permit the Company to repurchase up to $30.0 million worth of its issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations. In February 2018 and May 2019, the Company’s board of directors approved an d |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) ("AOCI") | 3 Months Ended |
Sep. 27, 2019 | |
Accumulated other comprehensive income (loss) | 17. Accumulated other comprehensive income (loss) (“AOCI”) The changes in AOCI for the three months ended September 27, 2019 and Sept e (amount in thousands) Unrealized net (Losses)/Gains on Available-for-sale Unrealized net (Losses)/Gains Instruments Retirement Foreign Total Balance as of June 28, 2019 $ 952 $ 32 (2,537 ) $ (833 ) $ (2,386 ) Other comprehensive income before reclassification adjustment (32 ) 39 83 (369 ) (279 ) Amounts reclassified out of AOCI to foreign exchange loss 67 — — — 67 Tax effects — — — — — Other comprehensive income (loss) $ 35 $ 39 83 $ (369 ) $ (212 ) Balance as of September 27, 2019 $ 987 $ 71 (2,454 ) $ (1,202 ) $ (2,598 ) (amount in thousands) Unrealized net (Losses)/Gains on Available-for-sale Unrealized net (Losses)/Gains Instruments Retirement Foreign Total Balance as of June 29, 2018 $ (1,091 ) $ 33 — $ (199 ) $ (1,257 ) Other comprehensive income before reclassification adjustmen t 591 — — (200 ) 391 Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income (303 ) (1 ) — — (304 ) Tax effects — — — — — Other comprehensive income (loss) $ 288 $ (1 ) — $ (200 ) $ 87 Balance as of September 28, 2018 $ (803 ) $ 32 — $ (399 ) $ (1,170 ) |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Sep. 27, 2019 | |
Commitments and contingencies | 18. Commitments and contingencies Letter of credit and Bank guarantees As of September 27, 2019, the Company had two o f million Euros and one outstanding standby letter of credit of million Euros, respectively, related to the Company’s support of a customer ’s transfer of certain manufacturing operations from Berlin, Germany to the Company’s facilities in Thailand. T se million and $ million, respectively. As of June 28, 2019, the Company had one outstanding standby letter of credit of 6.0 million Euros related to the Company’s support of a customer’s transfer of certain manufacturing operations from Berlin, Germany to the Company’s facilities in Thailand. The standby letter of credit was backed by cash collateral of $7.4 million. As of September 27, 2019 and June 28, 2019, 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 $1.6 million, respectively , and there were other bank guarantees given by a bank on behalf of our subsidiaries in China and the United Kingdom to support their operations of $70 thousand and $25 Purchase obligations Purchase obligations represent legally-binding commitments to p u As of September 27, 2019, the Company had an outstanding commitment to third parties of $8.2 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 | 3 Months Ended |
Sep. 27, 2019 | |
Business segments and geographic information | 19. 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 C E O single Total revenues are attributed to a particular geographic area based on the bill-to-location Company’s region Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 North America $ 200,947 $ 179,826 Asia-Pacific 118,423 151,947 Europe 79,926 45,404 $ 399,296 $ 377,177 As of September 2 7 9 Significant customers The Company had two customers that each to for both periods . |
Subsequent events
Subsequent events | 3 Months Ended |
Sep. 27, 2019 | |
Subsequent event | 20. Subsequent events On October 1, 2019, the Company advanced fund s $ million to a customer to support the customer’s transfer of certain manufacturing operations from Berlin, Germany to the Company’s facilities in Thailand. These advanced funds |
Accounting policies (Policies)
Accounting policies (Policies) | 3 Months Ended |
Sep. 27, 2019 | |
Basis of presentation | Basis of presentation The accompanying unaudited 10-K The balance sheet as of June 28, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three months ended September 27, 2019 may not be indicative of results for the year ending June 26, 2020 or any future periods. |
Use of Estimates | Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and expenses during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, income taxes, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to be ent |
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 September 27, 2019 and September 28, 2018 each consisted of 13 weeks. Fiscal year 2020 will be comprised of 52 weeks and will end on June 26, 2020. |
Changes in Accounting Policies | Changes in Accounting Policies Except for the adoption of the new lease accounting standard and the derivatives and hedging standard described below, the Company has consistently applied the accounting policies to all periods presented in these unaudited condensed consolidated financial statements. |
Adoption of New Accounting Standard | Adoption of New Accounting Standard s On June 29, 2019, the Company adopted the new lease accounting standard, Accounting Standards Codification Topic 842 (“ASC 842”), which provides guidance for the recognition and disclosure of lease arrangements. The Company adopted ASC 842 using the modified retrospective transition approach. Accordingly, the Company’s comparative financial statements as of June 28, 2019 have not been adjusted. ASC 842 also provides practical expedients for the Company’s ongoing accounting. The Company elected the short-term lease recognition exemption for its operating leases with a term of less than 12 months, which will not require recognition of right of use (“ROU”) assets or lease liabilities for these leases. For periods prior to adoption of ASC 842, the Company is required to present disclosures in accordance with ASC Topic 840. The following disclosure provides the future minimum lease payments due under non-cancelable (amount in thousands) 2020 $ 1,746 2021 1,342 2022 1,219 2023 1,172 Thereafter 230 Total future minimum operating lease payments $ 5,709 The most significant impact of the adoption of ASC 842 was the recognition of ROU assets and lease liabilities for operating leases with a term of greater than 12 months, while the accounting for finance leases will remain substantially unchanged. See Note 10 for further details. On June 29, 2019, the Company also adopted Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 simplifies existing hedge accounting guidance in order to better portray in financial statements the economic impact of risk management activities in the financial statements, including eliminating the separate measurement and presentation of hedge ineffectiveness. Prior to the adoption of ASU 2017-12, the Company wa s s Amounts recorded as other comprehensive income are subsequently reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings |
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 , 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 short-term P-1, The Company enters into derivative contracts with financial institutions with reputable credit and monitors the credit profiles of these counterparties. 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 May 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-05, 2019-05 326-20 825-10 instrument-by-instrument held-to-maturity 820-10 825-10. In April 2019, the 2019-04, 2019-04 In August 2018, the FASB issued ASU 2018-13, 2018-13 In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 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. This ASU will be effective for the Company in the first quarter of fiscal 2021. The Company does not expect this update will impact its condensed consolidated financial statements. |
Accounting policies (Tables)
Accounting policies (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases | The following disclosure provides the future minimum lease payments due under non-cancelable (amount in thousands) 2020 $ 1,746 2021 1,342 2022 1,219 2023 1,172 Thereafter 230 Total future minimum operating lease payments $ 5,709 |
Revenues from contracts with _2
Revenues from contracts with customers (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Schedule of Activity in the Company's Contract Assets | The following tables summarize the activity in the Company’s contract assets and contract liabilities during the three s (amount in thousands) Contract Beginning balance, June 28, 2019 $ 12,447 Revenue recognized 21,653 Amounts collected or invoiced (22,480 ) Ending balance, September 27, 2019 $ 11,620 (amount in thousands) Contract Liabilities Beginning balance, June 28, 2019 $ 2,239 Additions advance payment received during the period 2,230 Revenue recognized (2,203 ) Ending balance, September 27, 2019 $ 2,266 |
Disaggregation of Revenue by Geographical Regions | The following table presents total revenues by geographic region: (amount in thousands , except percentages) Three Months September 27, 2019 As a % of Total North America $ 200,947 50.3 % Asia-Pacific 118,423 29.7 Europe 79,926 20.0 $ 399,296 100.0 % (amount in thousands , except percentages) Three Months September 28, 2018 As a % of Total North America $ 179,826 47.7 % Asia-Pacific 151,947 40.3 Europe 45,404 12.0 $ 377,177 100.0 % |
Revenues by End Market | The following table sets forth our revenues by end market. (amount in thousands , except percentages) Three Months September 27, 2019 As a % of Total Optical communications $ 302,379 75.7 % Lasers, sensors and other 96,917 24.3 Total $ 399,296 100.0 % (amount in thousands , except percentages) Three Months September 28, 2018 As a % of Total Optical communications $ 280,768 74.4 % Lasers, sensors and other 96,409 25.6 Total $ 377,177 100.0 % |
Earnings per ordinary share (Ta
Earnings per ordinary share (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Earnings Per Ordinary Share | Earnings per ordinary share was calculated as follows: Three Months Ended (amount in thousands except per share amounts) September 27, 2019 September 28, 2018 Net income attributable to shareholders $ 25,957 $ 27,850 Weighted-average number of ordinary shares outstanding (thousands of shares) 36,913 36,625 Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares) 616 515 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,529 37,140 Basic earnings per ordinary share $ 0.70 $ 0.76 Diluted earnings per ordinary share $ 0.69 $ 0.75 Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1) 50 351 (1) These |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
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 Marketable Other As of September 27, 2019 Cash $ 167,772 $ — $ 167,772 $ — $ — Cash equivalents 763 — 763 — — Liquidity funds 20,701 — — — 20,701 Certificates of deposit and time deposits 35,020 — — — 35,020 Corporate bonds and commercial papers 105,029 294 — 105,323 — U.S. agency and U.S. treasury securities 77,078 144 — 77,222 — Total $ 406,363 $ 438 $ 168,535 $ 182,545 $ 55,721 As of June 28, 2019 Cash $ 178,019 $ — $ 178,019 $ — $ — Cash equivalents 2,820 — 2,820 — — Liquidity funds 20,552 — — — 20,552 Certificates of deposit and time deposits 35,028 — — — 35,028 Corporate bonds and commercial papers 130,959 297 — 131,256 — U.S. agency and U.S. treasury securities 69,552 105 — 69,657 — Total $ 436,930 $ 402 $ 180,839 $ 200,913 $ 55,580 |
Available-for-Sale Securities Based on Stated Effective Maturities | The following table summarizes the cost and estimated fair value of short-term investments available-for-sale September 27, 2019 June 29, 2018 (amount in thousands) Carrying Cost Fair Value Carrying Cost Fair Value Due within one year $ 55,726 $ 55,786 $ 69,746 $ 69,830 Due between one to five years 126,381 126,759 130,765 131,083 Total $ 182,107 $ 182,545 $ 200,511 $ 200,913 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Financial Instruments Measured at Fair Value on Recurring Basis | The following table provides details of the financial instruments measured at fair value on a recurring basis, including: Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of September 27, 2019 Assets Cash equivalents $ — $ 763 $ — $ 763 Liquidity funds — 20,701 — 20,701 Certificates of deposit and time deposits — 35,020 — 35,020 Corporate bonds and commercial papers — 105,323 — 105,323 U.S. agency and U.S. treasury securities — 77,222 — 77,222 Derivative assets — 298 (1) — 298 Total $ — $ 239,327 $ — $ 239,327 Liabilities Derivative liabilities $ — $ 4,223 (2) $ — $ 4,223 Total $ — $ 4,223 $ — $ 4,223 Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of June 28, 2019 Assets Cash equivalents $ — $ 2,820 $ — $ 2,820 Liquidity funds — 20,552 — 20,552 Certificates of deposit and time deposits — 35,028 — 35,028 Corporate bonds and commercial papers — 131,256 — 131,256 U.S. agency and U.S. treasury securities — 69,657 — 69,657 Derivative assets — 2,201 (3) — 2,201 Total $ — $ 261,514 $ — $ 261,514 Liabilities Derivative liabilities $ — $ 2,591 (4) $ — $ 2,591 Total $ — $ 2,591 $ — $ 2,591 (1) Foreign currency forward contracts with a notional amount of $ 74.0 (2) Two interest rate swap agreements with an aggregate notional amount of $ 125.1 . (3) Foreign currency forward contracts with notional amount of $72.0 million and Canadian dollars 0.6 million. (4) Interest rate swap agreement with a notional 64.2 |
Schedule Impacts of Derivative Gain (Loss) of Cash Flow Hedges | The following table provides a summary of the impacts of derivative gain (loss) of our cash flow hedges on the una u Three Months Ended (amount in thousands Financial statements line item September 27, 2019 September 28, 2018 Derivatives gain Interest rate swaps Other comprehensive $ 39 $ — Derivatives gain Interest rate swaps Interest expenses — — |
Schedule of Derivative Financial Instruments | The following table provides the fair values of our derivative financial instruments for the periods presented: September 27, 2019 June 28, 2019 (amount in thousands) Derivative Derivative Derivative Derivative Derivatives not designated as hedging instruments Foreign currency forward contracts $ 340 $ (42 ) $ 2,201 $ — Interest rate swaps — — $ — $ (2,591 ) Derivatives designated as hedging instruments Interest rate swaps — (4,223 ) $ — $ — Gross amounts of derivatives 340 (4,265 ) $ 2,201 $ (2,591 ) Gross amounts of derivatives offset in the balance sheet (42 ) 42 $ — $ — Net amounts of derivatives $ 298 $ (4,223 ) $ 2,201 $ (2,591 ) |
Schedule Of Cash Settlements Received and Payments On Derivative Instruments | The following table presents cash settlements (paid) received related to the below derivative instruments: Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 Foreign currency forward contract $ — $ — Interest rate swaps (57 ) (82 ) Total $ (57 ) $ (82 ) |
Trade accounts receivable, net
Trade accounts receivable, net (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Trade Accounts Receivable, Net | (amount in thousands) As of September 27, 2019 As of June 28, 2019 Trade accounts receivable $ 273,707 $ 260,698 Less: allowance for doubtful account (91 ) (96 ) Trade accounts receivable, net $ 273,616 $ 260,602 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Inventories | (amount in thousands) As of September 27, 2019 As of June 28, 2019 Raw materials $ 133,574 $ 115,008 Work - - 151,518 142,039 Finished goods 26,039 24,916 Goods in transit 12,112 13,645 323,243 295,608 Less: Inventory obsolescence (1,732 ) (1,996 ) Inventory, net $ 321,511 $ 293,612 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Schedule Of Adoption Of Topic 842 On Operating Lease In Consolidate Financial Position | The following table shows the impact of adoption of ASC 842 on the adoption date of June 29, 2019 on the consolidated balance sheets: Consolidated Balance Sheets Impact of Adopting ASC 842 (amount in thousands) Balance at Adjustment Balance at Assets Operating lease ROU assets $ — $ 5,370 $ 5,370 Liabilities and Shareholders’ Equity Operating lease liabilities – current $ — $ 1,601 $ 1,601 Operating lease liabilities – non current $ — $ 3,769 $ 3,769 |
Schedule of operating lease liabilities | As of September 27, 2019, the maturities of the Company’s operating lease liabilities are as follows: (amount in thousands) 2020 (remaining nine months) $ 1,323 2021 1,669 2022 1,520 2023 1,427 2024 495 Thereafter 279 Total undiscounted lease payments 6,713 Less (528 ) Total present value of lease liabilities $ 6,185 ( 1 (1) Included current portion of operating lease liabilities of $ 1.6 |
Summary of additional information related to operating and finance lease | As of September 27, 2019, the future minimum lease payments under non-cancelable (amount in thousands) 2020 $ 300 2021 100 Total minimum capital lease payments 400 Less: Future finance charge on capital leases (9 ) Present value of capital lease $ 391 Representing capital lease liabilities Current $ 391 Non-current — Total capital lease liabilities $ 391 As of September 27, 2019, the present value of capital lease s as (amount in thousands) 2020 $ 292 2021 99 Present value of capital lease $ 391 The following summarizes additional information related to the Company’s operating leases and capital leases: As of September 27, 2019 Weighted-average remaining lease term (in years) Operating leases 4.4 Capital leases 1.0 Weighted-average discount rate Operating leases 3.9 % Capital leases 4.1 % |
Schedule of supplemental cash flow information related to operating lease | T (amount in thousands) Three Months Ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 458 Financing cash flows from capital leases $ 109 ROU assets obtained in exchange for lease liabilities $ 6,185 Capital lease assets $ 317 |
Intangibles (Tables)
Intangibles (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Intangibles | The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated F Net As of September 27, 2019 Software $ 6,698 $ (5,004 ) $ — $ 1,694 Customer relationships 4,373 (2,253 ) (153 ) 1,967 Backlog 119 (119 ) — — Total intangibles $ 11,190 $ (7,376 ) $ (153 ) $ 3,661 (amount in thousands) Gross Accumulated Foreign Net As of June 28, 2019 Software $ 6,582 $ (4,868 ) $ — $ 1,714 Customer relationships 4,373 (2,096 ) (104 ) 2,173 Backlog 119 (119 ) — — Total intangibles $ 11,074 $ (7,083 ) $ (104 ) $ 3,887 |
Weighted-Average Remaining Life of Intangible Assets | The weighted-average remaining life of customer relationships was (years) As of September 27, As of June 28, 2019 Customer relationships 5.2 5.4 |
Estimated Future Amortization of intangibles | Based on the carrying amount of intangibles as of September 27, 2019, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2020 (remaining nine months) $ 862 2021 1,020 2022 784 2023 516 2024 288 Thereafter 191 Total $ 3,661 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Sep. 27, 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 28, 2019 $ 3,705 Foreign currency translation adjustment (102 ) Balance as of September 27, 2019 $ 3,603 (amount in thousands) Goodwill Balance as of June 29, 2018 $ 3,828 Foreign currency translation adjustment (6 ) Balance as of September 28, 2018 $ 3,822 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Total Borrowings, Including Revolving and Long-Term Borrowings | The Company’s total borrowings, including current portion non-current portion of ( amount in thousands Rate Conditions Maturity As of September 27, 2019 As of June 28, 2019 Long-term borrowings, current portion, net: Long-term borrowings, current portion $ 12,188 $ 3,250 Less: Unamortized debt issuance costs – current portion (31 ) — Long-term borrowings, current portion, net $ 12,157 3,250 Long-term borrowings, non-current Term loan borrowings: 1-month LIBOR +1.50% per annum (1) Repayable in quarterly installments June 2023 $ — $ 60,938 3-month LIBOR +1.35% per annum (1) Repayable in quarterly installments June 2024 60,938 — Less: Current portion (12,188 ) (3,250 ) Less: Unamortized debt issuance costs – non-current (119 ) — Long-term borrowings, non-current $ 48,631 $ 57,688 (1) We have entered into interest rate swaps that effectively fix a series of our future interest payments on our term loans. Refer to Note 6 . |
Movements of Long-Term Loans | The movements of long-term borrowings for the three months ended September 27, 2019 and September 28, 2018 were as follows: Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 Opening balance $ 60,938 $ 64,188 Borrowings during the period 60,938 — Repayments during the period (60,938 ) (813 ) Closing balance $ 60,938 $ 63,375 |
Future Maturities of Long-Term Debt | As of September 27, 2019, future maturities of long-term borrowings during each fiscal year were as follows: (amount in thousands) 2020 (remaining nine months) $ 9,140 2021 12,188 2022 15,234 2023 12,188 2024 12,188 Total $ 60,938 |
Share-based compensation (Table
Share-based compensation (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Effect of Recording Share-Based Compensation Expense | The effect of recording share-based compensation expense for the three months ended September 27, 2019 and September 28, 2018 was as follows: Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 Share-based compensation expense by type of award: Restricted share units $ 4,398 $ 4,685 Performance share units 1,597 295 Total share-based compensation expense 5,995 4,980 Tax effect on share-based compensation expense — — Net effect on share-based compensation expense $ 5,995 $ 4,980 |
Share-Based Compensation Expense Recorded in Condensed Consolidated Statements of Operations and Comprehensive Income | Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 Cost of revenue $ 1,720 $ 1,847 Selling, general and administrative expense 4,275 3,133 Total share-based compensation expense $ 5,995 $ 4,980 |
Restricted Share Unit Activity | The following table summarizes restricted share unit activity under the Equity Incentive Plans: Number of Shares Weighted- Balance as of June 28, 2019 800,751 $ 42.48 Granted 292,321 $ 48.39 Issued (240,595 ) $ 39.62 Forfeited (21,577 ) $ 42.00 Balance as of September 27, 2019 830,900 $ 45.40 Number of Shares Weighted- Balance as of June 29, 2018 1,073,580 $ 35.19 Granted 255,821 $ 48.02 Issued (369,757 ) $ 34.34 Forfeited (29,845 ) $ 38.32 Balance as of September 28, 2018 929,799 $ 38.95 |
Performance Share Unit Activity | The following table summarizes performance share unit activity under the Equity Incentive Plans: Number of Shares Weighted- Per Share Balance as of June 28, 2019 548,500 $ 40.97 Granted 238,474 $ 48.39 Issued — — Forfeited (350,670 ) $ 36.99 Balance as of September 27, 2019 436,304 $ 48.22 Number of Shares Weighted- 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 September 28, 2018 552,664 $ 41.02 |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) ("AOCI") (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Changes in AOCI, Net of Tax | The changes in AOCI for the three months ended September 27, 2019 and Sept e (amount in thousands) Unrealized net (Losses)/Gains on Available-for-sale Unrealized net (Losses)/Gains Instruments Retirement Foreign Total Balance as of June 28, 2019 $ 952 $ 32 (2,537 ) $ (833 ) $ (2,386 ) Other comprehensive income before reclassification adjustment (32 ) 39 83 (369 ) (279 ) Amounts reclassified out of AOCI to foreign exchange loss 67 — — — 67 Tax effects — — — — — Other comprehensive income (loss) $ 35 $ 39 83 $ (369 ) $ (212 ) Balance as of September 27, 2019 $ 987 $ 71 (2,454 ) $ (1,202 ) $ (2,598 ) (amount in thousands) Unrealized net (Losses)/Gains on Available-for-sale Unrealized net (Losses)/Gains Instruments Retirement Foreign Total Balance as of June 29, 2018 $ (1,091 ) $ 33 — $ (199 ) $ (1,257 ) Other comprehensive income before reclassification adjustmen t 591 — — (200 ) 391 Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income (303 ) (1 ) — — (304 ) Tax effects — — — — — Other comprehensive income (loss) $ 288 $ (1 ) — $ (200 ) $ 87 Balance as of September 28, 2018 $ (803 ) $ 32 — $ (399 ) $ (1,170 ) |
Business segments and geograp_2
Business segments and geographic information (Tables) | 3 Months Ended |
Sep. 27, 2019 | |
Total Revenues by Geographic Regions | The following table presents total revenues by geographic region Three Months Ended (amount in thousands) September 27, 2019 September 28, 2018 North America $ 200,947 $ 179,826 Asia-Pacific 118,423 151,947 Europe 79,926 45,404 $ 399,296 $ 377,177 |
Accounting policies - Schedule
Accounting policies - Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) $ in Thousands | Jun. 28, 2019USD ($) |
Accounting Policies [Abstract] | |
2020 | $ 1,746 |
2021 | 1,342 |
2022 | 1,219 |
2023 | 1,172 |
Thereafter | 230 |
Total future minimum operating lease payments | $ 5,709 |
Revenues from contracts with _3
Revenues from contracts with customers - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Sep. 27, 2019USD ($) | |
Revenue From Contract With Customers [Line Items] | |
Product warranty, description | The Company generally provides a warranty of between one to five years |
Incremental cost | $ 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 and Contract Liabilities (Detail) $ in Thousands | 3 Months Ended |
Sep. 27, 2019USD ($) | |
Contract Assets | |
Beginning balance, June 28, 2019 | $ 12,447 |
Revenue recognized | 21,653 |
Amounts collected or invoiced | (22,480) |
Ending balance, September 27, 2019 | 11,620 |
Contract Liabilities | |
Beginning balance, June 28, 2019 | 2,239 |
Additions advance payment received during the period | 2,230 |
Revenue recognized | (2,203) |
Ending balance, September 27, 2019 | $ 2,266 |
Disaggregation of Revenue by Ge
Disaggregation of Revenue by Geographical Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Revenues | $ 399,296 | $ 377,177 |
Revenues, percentage | 100.00% | 100.00% |
North America | ||
Revenues | $ 200,947 | $ 179,826 |
Revenues, percentage | 50.30% | 47.70% |
Asia-Pacific | ||
Revenues | $ 118,423 | $ 151,947 |
Revenues, percentage | 29.70% | 40.30% |
Europe | ||
Revenues | $ 79,926 | $ 45,404 |
Revenues, percentage | 20.00% | 12.00% |
Revenues - Revenues by End Mark
Revenues - Revenues by End Market (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Revenue from External Customer [Line Items] | ||
Revenues | $ 399,296 | $ 377,177 |
Revenues, percentage | 100.00% | 100.00% |
Optical communications | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 302,379 | $ 280,768 |
Revenues, percentage | 75.70% | 74.40% |
Lasers, sensors, and other | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 96,917 | $ 96,409 |
Revenues, percentage | 24.30% | 25.60% |
Earnings Per Ordinary Share (De
Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net income attributable to shareholders | $ 25,957 | $ 27,850 | |
Weighted-average number of ordinary shares outstanding (thousands of shares) | 36,913 | 36,625 | |
Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares) | 616 | 515 | |
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) | 37,529 | 37,140 | |
Basic earnings per ordinary share | $ 0.70 | $ 0.76 | |
Diluted earnings per ordinary share | $ 0.69 | $ 0.75 | |
Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) | [1] | 50 | 351 |
[1] | These performance share units were not included in the computation of diluted earnings per ordinary share 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) | 3 Months Ended |
Sep. 27, 2019shares | |
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 |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 | Sep. 28, 2018 |
Cash, cash equivalents and marketable securities [Line Items] | |||
Cash and cash equivalents and Marketable securities, Carrying Cost | $ 406,363 | $ 436,930 | |
Marketable securities, Unrealized Gain/(Loss) | 438 | 402 | |
Cash and cash equivalents | 168,535 | 180,839 | $ 219,976 |
Marketable securities | 182,545 | 200,913 | |
Other Investments | 55,721 | 55,580 | |
Certificates of deposit and time deposits | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Marketable securities, Carrying cost | 35,020 | 35,028 | |
Other Investments | 35,020 | 35,028 | |
Cash | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Carrying Cost | 167,772 | 178,019 | |
Cash and cash equivalents | 167,772 | 178,019 | |
Cash Equivalents | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Carrying Cost | 763 | 2,820 | |
Cash and cash equivalents | 763 | 2,820 | |
Liquidity funds | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Carrying Cost | 20,701 | 20,552 | |
Other Investments | 20,701 | 20,552 | |
Corporate bonds and commercial papers | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Marketable securities, Carrying cost | 105,029 | 130,959 | |
Marketable securities, Unrealized Gain/(Loss) | 294 | 297 | |
Marketable securities | 105,323 | 131,256 | |
U.S. agency and U.S. treasury securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Marketable securities, Carrying cost | 77,078 | 69,552 | |
Marketable securities, Unrealized Gain/(Loss) | 144 | 105 | |
Marketable securities | $ 77,222 | $ 69,657 |
Available-for-Sale Securities B
Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 | Jun. 29, 2018 |
Investments Classified by Contractual Maturity Date [Line Items] | |||
Total | $ 182,545 | $ 200,913 | |
Fair Value | |||
Investments Classified by Contractual Maturity Date [Line Items] | |||
Due within one year | 55,786 | $ 69,830 | |
Due between one to five years | 126,759 | 131,083 | |
Total | 182,545 | 200,913 | |
Carrying Cost | |||
Investments Classified by Contractual Maturity Date [Line Items] | |||
Due within one year | 55,726 | 69,746 | |
Due between one to five years | 126,381 | 130,765 | |
Total | $ 182,107 | $ 200,511 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short-Term Investments - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Sep. 27, 2019USD ($) | |
Cash, cash equivalents and marketable securities [Line Items] | |
Gain from sales and maturities of available-for-sale securities | $ 67 |
Impairment losses | $ 0 |
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 |
Fair Value on Recurring Basis (
Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 | ||
Assets | ||||
Derivative assets | $ 298 | $ 2,201 | ||
Total | 239,327 | 261,514 | ||
Liabilities | ||||
Derivative liabilities | 4,223 | 2,591 | ||
Total | 4,223 | 2,591 | ||
Certificates of deposit and time deposits | ||||
Assets | ||||
Marketable securities | 35,020 | 35,028 | ||
Cash Equivalents | ||||
Assets | ||||
Marketable securities | 763 | 2,820 | ||
Corporate bonds and commercial papers | ||||
Assets | ||||
Marketable securities | 105,323 | 131,256 | ||
U.S. agency and U.S. treasury securities | ||||
Assets | ||||
Marketable securities | 77,222 | 69,657 | ||
Liquidity funds | ||||
Assets | ||||
Marketable securities | 20,701 | 20,552 | ||
Significant Other Observable Inputs (Level 2) | ||||
Assets | ||||
Derivative assets | 298 | [1] | 2,201 | [2] |
Total | 239,327 | 261,514 | ||
Liabilities | ||||
Derivative liabilities | 4,223 | [3] | 2,591 | [4] |
Total | 4,223 | 2,591 | ||
Significant Other Observable Inputs (Level 2) | Certificates of deposit and time deposits | ||||
Assets | ||||
Marketable securities | 35,020 | 35,028 | ||
Significant Other Observable Inputs (Level 2) | Cash Equivalents | ||||
Assets | ||||
Marketable securities | 763 | 2,820 | ||
Significant Other Observable Inputs (Level 2) | Corporate bonds and commercial papers | ||||
Assets | ||||
Marketable securities | 105,323 | 131,256 | ||
Significant Other Observable Inputs (Level 2) | U.S. agency and U.S. treasury securities | ||||
Assets | ||||
Marketable securities | 77,222 | 69,657 | ||
Significant Other Observable Inputs (Level 2) | Liquidity funds | ||||
Assets | ||||
Marketable securities | $ 20,701 | $ 20,552 | ||
[1] | Foreign currency forward contracts with a notional amount of $74.0 million. | |||
[2] | Foreign currency forward contracts with notional amount of $72.0 million and Canadian dollars 0.6 million. | |||
[3] | Two interest rate swap agreements with an aggregate notional amount of $125.1 million. | |||
[4] | Interest rate swap agreement with a notional amount of $64.2 million. |
Fair Value on Recurring Basis_2
Fair Value on Recurring Basis (Parenthetical) (Detail) - Fair Value, Measurements, Recurring $ in Millions, $ in Millions | Sep. 27, 2019USD ($) | Jun. 28, 2019USD ($) | Jun. 28, 2019CAD ($) |
Foreign currency forward contracts | |||
Fair Value Measurements at Reporting Date Using | |||
Derivative assets, notional amount | $ 74 | $ 72 | $ 0.6 |
Interest rate swap | |||
Fair Value Measurements at Reporting Date Using | |||
Derivative liabilities, notional amount | $ 125.1 | $ 64.2 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) shares in Millions, $ in Millions | 3 Months Ended | |||
Sep. 27, 2019USD ($)Contract | Sep. 28, 2018USD ($)Contractshares | Sep. 03, 2019 | Jul. 25, 2018 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Number of forward contracts outstanding | Contract | 2 | |||
Derivative notional amount | $ 125.1 | |||
Derivative maturity period | 2018-12 | |||
Derivative, Fixed Interest Rate | 2.86% | |||
Foreign currency forward contracts | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Number of forward contracts outstanding | Contract | 3 | |||
Derivative notional amount | $ 6 | |||
Unrealized gain (loss) on derivatives | $ 1.9 | $ 2.8 | ||
Foreign currency forward contracts | Non designated | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Number of forward contracts outstanding | Contract | 61 | |||
Derivative notional amount | $ 74 | |||
Foreign currency option contracts | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Number of forward contracts outstanding | Contract | 6 | |||
Derivative notional amount | $ 19 | |||
Interest Rate Swap [Member] | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Number Of Interest Rate Swaps | shares | 64.2 | |||
Interest Rate Swap [Member] | Bank of Ayudhya Public Company [Member] | Bank of America Credit Facility [Member] | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Derivative maturity period | 2024-06 | |||
Long term Debt Fixed Interest Percentage | 4.36% | |||
Interest Rate Swap [Member] | Non designated | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Unrealized gain (loss) on derivatives | $ (1.7) | $ 0.1 |
Fair Value - Schedule Impacts o
Fair Value - Schedule Impacts of Derivative Gain (Loss) of Cash Flow Hedges (Details) $ in Thousands | 3 Months Ended |
Sep. 27, 2019USD ($) | |
Interest Rate Swap [Member] | Other Comprehensive Income (Loss) [Member] | |
Derivatives gain (loss) recognized in other comprehensive income: | |
Interest rate swaps | $ 39 |
Fair Value - Schedule of Deriva
Fair Value - Schedule of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 |
Derivatives designates as hedging instruments: | ||
Gross amounts of derivatives (Derivative Assets) | $ 340 | $ 2,201 |
Gross amounts of derivatives offset in the balance sheet (Derivative Assets) | (42) | |
Net amounts of derivatives (Derivative Assets) | 298 | 2,201 |
Gross amounts of derivatives (Derivative Liabilities) | (4,265) | (2,591) |
Gross amounts of derivatives offset in the balance sheet (Derivative Liabilities) | 42 | |
Net amounts of derivatives (Derivative Liabilities) | (4,223) | (2,591) |
Foreign currency forward contracts | ||
Derivatives not designated as hedging instruments | ||
Derivative Assets | 340 | 2,201 |
Derivative Liabilities | (42) | |
Interest rate swaps | ||
Derivatives not designated as hedging instruments | ||
Derivative Liabilities | $ (2,591) | |
Derivatives designates as hedging instruments: | ||
Derivative Liabilities | $ (4,223) |
Fair Value - Schedule Of Cash S
Fair Value - Schedule Of Cash Settlements Received and Payments On Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
cash settlements (paid) received | $ (57) | $ (82) |
Interest rate swap | ||
cash settlements (paid) received | $ (57) | $ (82) |
Trade Accounts Receivable, Ne_2
Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 273,707 | $ 260,698 |
Less: Allowance for doubtful account | (91) | (96) |
Trade accounts receivable, net | $ 273,616 | $ 260,602 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 133,574 | $ 115,008 |
Work in progress | 151,518 | 142,039 |
Finished goods | 26,039 | 24,916 |
Goods in transit | 12,112 | 13,645 |
Inventory, Gross, Total | 323,243 | 295,608 |
Less: Inventory obsolescence | (1,732) | (1,996) |
Inventory, net | $ 321,511 | $ 293,612 |
Restricted cash - Additional In
Restricted cash - Additional Information (Detail) € in Millions, $ in Millions | Sep. 27, 2019EUR (€) | Sep. 27, 2019USD ($) | Jun. 28, 2019EUR (€) | Jun. 28, 2019USD ($) |
Outstanding letter of credit amount | € | € 22.2 | € 6 | ||
Amount of cash collateral | $ | $ 29.6 | $ 7.4 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 27, 2019 | Jun. 29, 2019 | Jun. 28, 2019 | |
Operating Lease Term Of Contract | 12 months | ||
Operating Lease Rental Expense | $ 500 | ||
Operating lease liability, current portion | $ 1,550 | $ 1,601 | |
Lease Expiration Date | Sep. 1, 2020 | ||
Capital lease liability, current portion | $ 391 | $ 398 | |
Rental expense under operating leases | $ 20 | ||
Maximum [Member] | |||
Operating lease expiration year | 2025 | ||
Lessee operating lease option to extend term | 5 years | ||
Minimum [Member] | |||
Lessee operating lease option to extend term | 1 year |
Leases - Schedule Of Adoption O
Leases - Schedule Of Adoption Of Topic 842 On Operating Lease In Consolidate Financial Position (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 29, 2019 |
Assets | ||
Operating lease ROU assets | $ 6,185 | $ 5,370 |
Liabilities and Shareholders' Equity | ||
Operating lease liabilities – current | 1,550 | 1,601 |
Operating lease liabilities – non current | $ 4,635 | 3,769 |
Accounting Standards Update 2016-02 [Member] | ||
Assets | ||
Operating lease ROU assets | 5,370 | |
Liabilities and Shareholders' Equity | ||
Operating lease liabilities – current | 1,601 | |
Operating lease liabilities – non current | $ 3,769 |
Leases - Schedule Of Operating
Leases - Schedule Of Operating Lease Liabilities (Detail) $ in Thousands | Sep. 27, 2019USD ($) | |
Leases [Abstract] | ||
2020 (remaining nine months) | $ 1,323 | |
2021 | 1,669 | |
2022 | 1,520 | |
2023 | 1,427 | |
2024 | 495 | |
Thereafter | 279 | |
Total undiscounted lease payments | 6,713 | |
Less Imputed interest | (528) | |
Total present value of lease liabilities | $ 6,185 | [1] |
[1] | Included current portion of operating lease liabilities of $1.6 million. |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases (Detail) $ in Thousands | Sep. 27, 2019USD ($) |
Capital Leased Assets [Line Items] | |
2020 | $ 300 |
2021 | 100 |
Total minimum capital lease payments | 400 |
Less: Future finance charge on capital leases | (9) |
Present value of capital lease | $ 391 |
Leases - Capital Lease Liabilit
Leases - Capital Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 |
Capital Leased Assets [Line Items] | ||
Current | $ 391 | $ 398 |
Non-current | $ 102 | |
Present value of capital lease | $ 391 |
Leases -Present Value of Capita
Leases -Present Value of Capital Lease (Detail) $ in Thousands | Sep. 27, 2019USD ($) |
Capital Leased Assets [Line Items] | |
2020 | $ 292 |
2021 | 99 |
Present value of capital lease | $ 391 |
Leases - Summary Of Additional
Leases - Summary Of Additional Information Related To Operating And Finance Lease (Detail) | Sep. 27, 2019 |
Weighted-average remaining lease term (in years) | |
Operating leases | 4 years 4 months 24 days |
Capital leases | 1 year |
Weighted-average discount rate | |
Operating leases | 3.90% |
Capital leases | 4.10% |
Leases - Schedule Of Supplement
Leases - Schedule Of Supplemental Cash Flow Information Related To Operating Lease (Detail) $ in Thousands | 3 Months Ended |
Sep. 27, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 458 |
Financing cash flows from capital leases | 109 |
ROU assets obtained in exchange for lease liabilities | 6,185 |
Capital lease assets | $ 317 |
Intangibles (Detail)
Intangibles (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 27, 2019 | Jun. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,190 | $ 11,074 |
Accumulated Amortization | (7,376) | (7,083) |
Foreign Currency Translation Adjustment | (153) | (104) |
Net | 3,661 | 3,887 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,698 | 6,582 |
Accumulated Amortization | (5,004) | (4,868) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net | 1,694 | 1,714 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,373 | 4,373 |
Accumulated Amortization | (2,253) | (2,096) |
Foreign Currency Translation Adjustment | (153) | (104) |
Net | 1,967 | 2,173 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 119 | 119 |
Accumulated Amortization | (119) | (119) |
Foreign Currency Translation Adjustment | 0 | 0 |
Net | $ 0 | $ 0 |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense related to intangibles | $ 0.3 | $ 0.3 |
Weighted-Average Remaining Life
Weighted-Average Remaining Life of Intangible Assets (Detail) | 3 Months Ended | 12 Months Ended |
Sep. 27, 2019 | Jun. 28, 2019 | |
Global CEM Solutions, Ltd. | Customer relationships | ||
Finite-Lived Intangible Liabilities [Line Items] | ||
Weighted average remaining life of acquired intangible assets | 5 years 2 months 12 days | 5 years 4 months 24 days |
Estimated Future Amortization o
Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
2020 (remaining nine months) | $ 862 | |
2021 | 1,020 | |
2022 | 784 | |
2023 | 516 | |
2024 | 288 | |
Thereafter | 191 | |
Total | $ 3,661 | $ 3,887 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill from Acquisition (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 3,705 | $ 3,828 |
Foreign currency translation adjustment | (102) | (6) |
Ending Balance | $ 3,603 | $ 3,822 |
Total Borrowings, Including Cur
Total Borrowings, Including Current Portion and Non-Current Portion of Long-Term Borrowings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 27, 2019 | Jun. 28, 2019 | ||
Debt Instrument [Line Items] | |||
Long-term borrowings, current portion | $ 12,188 | $ 3,250 | |
Less: Unamortized debt issuance costs – current portion | (31) | ||
Long-term borrowings, current portion, net | 12,157 | 3,250 | |
Less: Current portion | (12,188) | (3,250) | |
Less: Unamortized debt issuance costs – non-current portion | (119) | ||
Long-term borrowings, non-current portion, net | $ 48,631 | $ 57,688 | |
Loan Payable Due June 2023 | |||
Debt Instrument [Line Items] | |||
Rate | [1] | 1-month LIBOR +1.50% per annum | |
Conditions | Repayable in quarterly installments | ||
Term | 2023-06 | ||
Long-term Debt | $ 60,938 | ||
Loan Payable Due June 2023 | LIBOR | |||
Debt Instrument [Line Items] | |||
Margin above rate | 1.50% | ||
Loan Payable Due June 2024 | |||
Debt Instrument [Line Items] | |||
Rate | [1] | 3-month LIBOR +1.35% per annum | |
Conditions | Repayable in quarterly installments | ||
Term | 2024-06 | ||
Long-term Debt | $ 60,938 | ||
Loan Payable Due June 2024 | LIBOR | |||
Debt Instrument [Line Items] | |||
Margin above rate | 1.35% | ||
[1] | We have entered into interest rate swaps that effectively fix a series of our future interest payments on our term loans. Refer to Note 6. |
Movements of Long-Term Loans (D
Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Debt Instrument [Line Items] | ||
Opening balance | $ 60,938 | $ 64,188 |
Borrowings during the period | 60,938 | |
Repayments during the period | (60,938) | (813) |
Closing balance | $ 60,938 | $ 63,375 |
Future Maturities of Long-Term
Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 27, 2019 | Jun. 28, 2019 | Sep. 28, 2018 | Jun. 29, 2018 |
Debt Instrument [Line Items] | ||||
2020 (remaining nine months) | $ 9,140 | |||
2021 | 12,188 | |||
2022 | 15,234 | |||
2023 | 12,188 | |||
2024 | 12,188 | |||
Total | $ 60,938 | $ 60,938 | $ 63,375 | $ 64,188 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 3 Months Ended | |||||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 03, 2019 | Aug. 20, 2019 | Jun. 28, 2019 | Jun. 04, 2018 | |
Line of Credit Facility [Line Items] | ||||||
Line of credit facility borrowing capacity | $ 200,000,000 | $ 160,900,000 | ||||
Line of credit facility termination date | Sep. 10, 2019 | |||||
Repayments Of Long term Debt | $ 60,938,000 | $ 813,000 | ||||
Bank of Ayudhya Public Company Limited [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest Expense On Debt | $ 200,000 | |||||
Debt Description Of Variable Rate Basis | 3-month LIBOR plus 1.35% | |||||
Debt Instrument Stated Interest Percentage | 1.35% | |||||
Debt Instrument Periodic Payment | $ 3,000,000 | |||||
Debt Instrument Maturity Date | Jun. 30, 2024 | |||||
Credit Facility Agreement [Member] | Bank of Ayudhya Public Company Limited [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility borrowing capacity | $ 3,600,000 | $ 110,000,000 | ||||
Term Loan Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Long Term Debt Outstanding | $ 60,900,000 | |||||
Term Loan Agreement [Member] | Bank of Ayudhya Public Company Limited [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Principal amount | $ 60,900,000 | |||||
Line Of Credit Covenant Terms | The Term Loan Agreement contains affirmative and negative covenants applicable to the Borrower, including delivery of financial statements and other information, compliance with laws, maintenance of insurance, restrictions on granting security interests or liens on its assets, disposing of its assets, incurring indebtedness and making acquisitions. While the term loan is outstanding, the Borrower is required to maintain a loan to value of the mortgaged real property ratio of not greater than 65%. If the loan to value ratio is not maintained, the Borrower will be required to provide additional security or prepay a portion of the term loan in order to restore the required ratio. The Company is also required to maintain a debt service coverage ratio of at least 1.25 times and a debt to equity ratio less than or equal to 1.0 times. In the case of any payment of a dividend by the Company, its debt service coverage ratio must be at least 1.50 times. At September 27, 2019, the Company was in compliance with all of its covenants under the Term Loan Agreement | |||||
Term Loan Agreement [Member] | Bank of America [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest Expense On Debt | $ 500,000 | $ 700,000 | ||||
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% | |||||
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% | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility borrowing capacity | $ 150,000,000 | $ 25,000,000 | ||||
Line of credit facility extended termination date | Jun. 4, 2023 | |||||
Revolving Credit Facility | Bank of America [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayments Of Long term Debt | $ 61,000,000 | |||||
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 | $ 65,000,000 | |||||
Term Loan Credit Facility | Bank of America [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Long Term Debt Outstanding | $ 0 | $ 60,900,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Jun. 28, 2019 | |
Income Taxes [Line Items] | |||
Liability for uncertain tax positions including accrued interest and penalties | $ 2.2 | $ 2.1 | |
Corporate effective income tax rate | 5.00% | 6.70% |
Effect of Recording Share-Based
Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Share-based compensation expense by type of award: | ||
Restricted share units | $ 4,398 | $ 4,685 |
Performance share units | 1,597 | 295 |
Total share-based compensation expense | 5,995 | 4,980 |
Tax effect on share-based compensation expense | 0 | 0 |
Net effect on share-based compensation expense | $ 5,995 | $ 4,980 |
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 | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ 5,995 | $ 4,980 |
Cost of Revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 1,720 | 1,847 |
Selling, General and Administrative Expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $ 4,275 | $ 3,133 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Nov. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes | 82,220 | 201,877 | |
Tax withholdings related to net share settlement of restricted share units | $ 4,144,000 | $ 8,904,000 | |
Stock Plan 2010 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ordinary shares available for future grant | 1,302,154 | ||
Stock Plan 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ordinary shares available for future grant | 111,347 | ||
Shares authorized for future issuance | 160,000 | ||
Performance Share Units | Stock Plan 2010 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share units outstanding | 436,304 | ||
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 | 806,573 | ||
Restricted Share Units | Stock Plan 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share units outstanding | 24,327 | ||
Restricted Share Units | Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | $ 20,200,000 | ||
Unrecognized compensation expense, weighted-average period for recognition | 2 years 10 months 24 days | ||
Restricted Share Units | Vesting Option One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award granted vesting period, year | 3 years | ||
Restricted Share Units | Vesting Option Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award granted vesting period, year | 4 years | ||
Restricted Share Units | 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 | Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | $ 11,300,000 | ||
Unrecognized compensation expense, weighted-average period for recognition | 1 year 8 months 12 days | ||
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 |
Restricted Share Unit Activity
Restricted Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Restricted Share Units - $ / shares | 3 Months Ended | 12 Months Ended |
Sep. 27, 2019 | Jun. 30, 2017 | |
Number of restricted share units | ||
Number of share units, Beginning Balance | 800,751 | 1,073,580 |
Number of share units, Granted | 292,321 | 255,821 |
Number of share units, Issued | (240,595) | (369,757) |
Number of share units, Forfeited | (21,577) | (29,845) |
Number of share units, Ending Balance | 830,900 | 929,799 |
Weighted Average Grant Date Fair Value Per Share | ||
Weighted-average grant date fair value per share, Beginning Balance | $ 42.48 | $ 35.19 |
Weighted-average grant date fair value per share, Granted | 48.39 | 48.02 |
Weighted-average grant date fair value per share, Issued | 39.62 | 34.34 |
Weighted-average grant date fair value per share, Forfeited | 42 | 38.32 |
Weighted-average grant date fair value per share, Ending Balance | $ 45.40 | $ 38.95 |
Performance Share Unit Activity
Performance Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Performance Share Units - $ / shares | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Number of performance share units | ||
Number of share units, Beginning Balance | 548,500 | 605,892 |
Number of share units, Granted | 238,474 | 201,994 |
Number of share units, Issued | 0 | (227,268) |
Number of share units, Forfeited | (350,670) | (27,954) |
Number of share units, Ending Balance | 436,304 | 552,664 |
Weighted Average Grant Date Fair Value Per Share | ||
Weighted-average grant date fair value per share, Beginning Balance | $ 40.97 | $ 38.41 |
Weighted-average grant date fair value per share, Granted | 48.39 | 48.02 |
Weighted-average grant date fair value per share, Issued | 0 | 40.48 |
Weighted-average grant date fair value per share, Forfeited | 36.99 | 39.35 |
Weighted-average grant date fair value per share, Ending Balance | $ 48.22 | $ 41.02 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
Sep. 27, 2019 | Sep. 28, 2018 | Jun. 28, 2019 | May 31, 2019 | Feb. 28, 2018 | Aug. 31, 2017 | |
Shareholders Equity [Line Items] | ||||||
Ordinary shares, authorized share capital | 500,000,000 | 500,000,000 | ||||
Ordinary shares, par value | $ 0.01 | $ 0.01 | ||||
Preferred shares, shares authorized | 5,000,000 | 5,000,000 | ||||
Preferred shares, par value | $ 0.01 | $ 0.01 | ||||
Share repurchase program, approved amount | $ 30 | |||||
Share repurchase program, increase in shares authorized for repurchase | $ 50 | $ 30 | ||||
Treasury Stock, carrying basis | $ 62.2 | $ 110 | ||||
Shares repurchase issued and outstanding | 0 | |||||
Stock Plan Nineteen Ninety Nine and Twenty Ten | ||||||
Shareholders Equity [Line Items] | ||||||
Ordinary shares issued upon vesting of restricted shares | 158,375 | 395,148 |
Changes in AOCI, Net of Tax (De
Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 863,099 | $ 740,939 |
Total other comprehensive (loss) income, net of tax | (212) | 87 |
Ending Balance | 890,695 | 766,157 |
Unrealized net (Losses) Gains on Available-for- sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 952 | (1,091) |
Other comprehensive income before reclassification adjustment | (32) | 591 |
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income | 67 | (303) |
Total other comprehensive (loss) income, net of tax | 35 | 288 |
Ending Balance | 987 | (803) |
Unrealized net (Losses) Gains on Derivative Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 32 | 33 |
Other comprehensive income before reclassification adjustment | 39 | |
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income | (1) | |
Total other comprehensive (loss) income, net of tax | 39 | (1) |
Ending Balance | 71 | 32 |
Retirement benefit plan - Prior service cost | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (2,537) | |
Other comprehensive income before reclassification adjustment | 83 | |
Total other comprehensive (loss) income, net of tax | 83 | |
Ending Balance | (2,454) | |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (833) | (199) |
Other comprehensive income before reclassification adjustment | (369) | (200) |
Total other comprehensive (loss) income, net of tax | (369) | (200) |
Ending Balance | (1,202) | (399) |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (2,386) | (1,257) |
Other comprehensive income before reclassification adjustment | (279) | 391 |
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income | 67 | (304) |
Total other comprehensive (loss) income, net of tax | (212) | 87 |
Ending Balance | $ (2,598) | $ (1,170) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands, € in Millions | Sep. 27, 2019EUR (€) | Sep. 27, 2019USD ($) | Jun. 28, 2019EUR (€) | Jun. 28, 2019USD ($) |
Commitments and Contingencies Disclosure [Line Items] | ||||
Outstanding bank guarantees given by banks on behalf of the company | $ 1,600 | $ 1,600 | ||
Outstanding letter of credit amount | € | € 22.2 | € 6 | ||
Amount of cash collateral | 29,600 | 7,400 | ||
Standby letters of credit two | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Outstanding letter of credit amount | € | € 6 | |||
Amount of cash collateral | 7,400 | |||
Thailand | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Outstanding commitment to third parties | 8,200 | |||
CHINA | Guarantee Type, Other [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Outstanding bank guarantees given by banks on behalf of the company | $ 70 | |||
UNITED KINGDOM | Guarantee Type, Other [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Outstanding bank guarantees given by banks on behalf of the company | $ 25 |
Business Segments and Geograp_3
Business Segments and Geographic Information - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Sep. 27, 2019USD ($)CustomerSegment | Jun. 28, 2019Customer | Sep. 28, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Number of customers that contributed to more than 10% of trade accounts receivable | Customer | 2 | 2 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ | $ 30.8 | $ 32.5 |
Total Revenues by Geographic Re
Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||
Revenues | $ 399,296 | $ 377,177 |
North America | ||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||
Revenues | 200,947 | 179,826 |
Asia-Pacific | ||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||
Revenues | 118,423 | 151,947 |
Europe | ||
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items] | ||
Revenues | $ 79,926 | $ 45,404 |
Subsequent events - Additional
Subsequent events - Additional Information (Detail) $ in Millions | Oct. 01, 2019USD ($) |
Subsequent Event [Member] | |
Due from other related parties | $ 24.3 |