Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 25, 2020 | Jan. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 25, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34775 | |
Entity Registrant Name | FABRINET | |
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, Region | Grand Cayman | |
Entity Address, Country | KY | |
Entity Address, Postal Zip Code | KY1-9005 | |
City Area Code | 66 2 | |
Local Phone Number | 524-9600 | |
Title of 12(b) Security | Ordinary Shares, $0.01 par value | |
Trading Symbol | FN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 36,870,691 | |
Current Fiscal Year End Date | --06-25 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001408710 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Dec. 25, 2020 | Jun. 26, 2020 |
Current assets | ||
Cash and cash equivalents | $ 219,221 | $ 225,430 |
Short-term restricted cash | 7,402 | 7,402 |
Short-term investments | 261,817 | 262,693 |
Trade accounts receivable, net of allowance for doubtful accounts of $123 and $336, respectively | 318,430 | 272,665 |
Contract assets | 16,223 | 13,256 |
Inventories | 371,996 | 309,786 |
Other receivable | 24,310 | 24,310 |
Prepaid expenses | 3,141 | 5,399 |
Other current assets | 29,187 | 14,508 |
Total current assets | 1,251,727 | 1,135,449 |
Non-current assets | ||
Long-term restricted cash | 153 | 0 |
Property, plant and equipment, net | 227,670 | 228,274 |
Intangibles, net | 4,367 | 4,312 |
Operating right-of-use assets | 7,271 | 8,068 |
Deferred tax assets | 6,213 | 5,675 |
Other non-current assets | 236 | 202 |
Total non-current assets | 245,910 | 246,531 |
Total Assets | 1,497,637 | 1,381,980 |
Current liabilities | ||
Long-term borrowings, current portion, net | 12,156 | 12,156 |
Trade accounts payable | 296,948 | 251,603 |
Fixed assets payable | 7,748 | 15,127 |
Contract liabilities | 1,804 | 1,556 |
Operating lease liabilities, current portion | 2,277 | 1,979 |
Income tax payable | 2,806 | 2,242 |
Accrued payroll, bonus and related expenses | 17,633 | 19,265 |
Accrued expenses | 14,504 | 8,979 |
Other payables | 39,159 | 21,514 |
Total current liabilities | 395,035 | 334,421 |
Non-current liabilities | ||
Long-term borrowings, non-current portion, net | 33,436 | 39,514 |
Deferred tax liability | 4,592 | 4,729 |
Operating lease liability, non-current portion | 4,737 | 5,873 |
Severance liabilities | 19,011 | 17,379 |
Other non-current liabilities | 4,156 | 5,655 |
Total non-current liabilities | 65,932 | 73,150 |
Total Liabilities | 460,967 | 407,571 |
Commitments and contingencies (Note 17) | ||
Shareholders’ equity | ||
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of December 25, 2020 and June 26, 2020) | 0 | 0 |
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 38,698,068 shares and 38,471,967 shares issued at December 25, 2020 and June 26, 2020, respectively; and 36,852,416 shares and 36,727,864 shares outstanding at December 25, 2020 and June 26, 2020, respectively) | 387 | 385 |
Additional paid-in capital | 177,125 | 175,610 |
Less: Treasury shares (1,845,652 shares and 1,744,103 shares as of December 25, 2020 and June 26, 2020 respectively) | (75,575) | (68,501) |
Accumulated other comprehensive income (loss) | (1,657) | (1,147) |
Retained earnings | 936,390 | 868,062 |
Total Shareholders’ Equity | 1,036,670 | 974,409 |
Total Liabilities and Shareholders’ Equity | $ 1,497,637 | $ 1,381,980 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 25, 2020 | Jun. 26, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 123 | $ 336 |
Preferred shares, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred shares, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred shares, shares issued (in shares) | 0 | 0 |
Preferred shares, shares outstanding (in shares) | 0 | 0 |
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, par value (in USD per share) | $ 0.01 | $ 0.01 |
Ordinary shares, shares issued (in shares) | 38,698,068 | 38,471,967 |
Ordinary shares, shares outstanding (in shares) | 36,852,416 | 36,727,864 |
Treasury stocks, shares (in shares) | 1,845,652 | 1,744,103 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 453,827 | $ 426,217 | $ 890,466 | $ 825,513 |
Cost of revenues | (400,806) | (377,059) | (786,965) | (730,368) |
Gross profit | 53,021 | 49,158 | 103,501 | 95,145 |
Selling, general and administrative expenses | (17,156) | (17,078) | (34,019) | (33,078) |
Expenses related to reduction in workforce | 0 | (16) | 0 | (16) |
Operating income | 35,865 | 32,064 | 69,482 | 62,051 |
Interest income | 1,111 | 1,940 | 2,215 | 4,038 |
Interest expense | (265) | (181) | (516) | (2,574) |
Foreign exchange gain (loss), net | (533) | (988) | (405) | (2,941) |
Other income (expense), net | 158 | 397 | 279 | 774 |
Income before income taxes | 36,336 | 33,232 | 71,055 | 61,348 |
Income tax expense | (952) | (2,001) | (2,620) | (4,160) |
Net income | 35,384 | 31,231 | 68,435 | 57,188 |
Other comprehensive income (loss), net of tax: | ||||
Change in net unrealized gain (loss) on available-for-sale securities | (42) | (82) | (367) | (47) |
Change in net unrealized gain (loss) on derivative instruments | 2,385 | (189) | (823) | (150) |
Change in net retirement benefits plan – prior service cost | 50 | 101 | 223 | 184 |
Change in foreign currency translation adjustment | (146) | 616 | 457 | 247 |
Total other comprehensive income (loss), net of tax | 2,247 | 446 | (510) | 234 |
Net comprehensive income (loss) | $ 37,631 | $ 31,677 | $ 67,925 | $ 57,422 |
Earnings per share | ||||
Basic earnings per share (in USD per share) | $ 0.96 | $ 0.84 | $ 1.86 | $ 1.55 |
Diluted earnings per share (in USD per share) | $ 0.94 | $ 0.83 | $ 1.83 | $ 1.52 |
Weighted-average number of ordinary shares outstanding (thousands of shares) | ||||
Basic (in shares) | 36,936 | 37,011 | 36,877 | 36,962 |
Diluted (in shares) | 37,551 | 37,763 | 37,467 | 37,646 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Cumulative effect adjustment from adoption of ASC 326 | Ordinary Share | Additional Paid-in Capital | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
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 | 57,188 | 57,188 | |||||
Other comprehensive income (loss) | 234 | 234 | |||||
Share-based compensation | 12,183 | 12,183 | |||||
Issuance of ordinary shares (in shares) | 178,137 | ||||||
Issuance of ordinary shares | 0 | $ 2 | (2) | ||||
Tax withholdings related to net share settlement of restricted share units | (4,377) | (4,377) | |||||
Ending balance at Dec. 27, 2019 | 928,327 | $ 384 | 166,103 | (47,779) | (2,152) | 811,771 | |
Ending balance (in shares) at Dec. 27, 2019 | 38,408,890 | ||||||
Beginning balance at Sep. 27, 2019 | 890,695 | $ 384 | 160,148 | (47,779) | (2,598) | 780,540 | |
Beginning balance (in shares) at Sep. 27, 2019 | 38,389,128 | ||||||
Net income | 31,231 | 31,231 | |||||
Other comprehensive income (loss) | 446 | 446 | |||||
Share-based compensation | 6,188 | 6,188 | |||||
Issuance of ordinary shares (in shares) | 19,762 | ||||||
Issuance of ordinary shares | 0 | $ 0 | 0 | ||||
Tax withholdings related to net share settlement of restricted share units | (233) | (233) | |||||
Ending balance at Dec. 27, 2019 | 928,327 | $ 384 | 166,103 | (47,779) | (2,152) | 811,771 | |
Ending balance (in shares) at Dec. 27, 2019 | 38,408,890 | ||||||
Beginning balance at Jun. 26, 2020 | 974,409 | $ (107) | $ 385 | 175,610 | (68,501) | (1,147) | 868,062 |
Beginning balance (in shares) at Jun. 26, 2020 | 38,471,967 | ||||||
Net income | 68,435 | 68,435 | |||||
Other comprehensive income (loss) | (510) | (510) | |||||
Share-based compensation | $ 11,878 | 11,878 | |||||
Issuance of ordinary shares (in shares) | 226,101 | ||||||
Issuance of ordinary shares | $ 2 | (2) | |||||
Treasury stock acquired (in shares) | 101,549 | ||||||
Repurchase of shares held as treasury shares | $ (7,074) | (7,074) | |||||
Tax withholdings related to net share settlement of restricted share units | (10,361) | (10,361) | |||||
Ending balance at Dec. 25, 2020 | $ 1,036,670 | $ 387 | 177,125 | (75,575) | (1,657) | 936,390 | |
Ending balance (in shares) at Dec. 25, 2020 | 38,698,068 | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Beginning balance at Sep. 25, 2020 | $ 1,000,703 | $ 387 | 171,715 | (68,501) | (3,904) | 901,006 | |
Beginning balance (in shares) at Sep. 25, 2020 | 38,680,659 | ||||||
Net income | 35,384 | 35,384 | |||||
Other comprehensive income (loss) | 2,247 | 2,247 | |||||
Share-based compensation | $ 5,851 | 5,851 | |||||
Issuance of ordinary shares (in shares) | 17,409 | ||||||
Issuance of ordinary shares | $ 0 | 0 | |||||
Treasury stock acquired (in shares) | 101,549 | ||||||
Repurchase of shares held as treasury shares | $ (7,074) | (7,074) | |||||
Tax withholdings related to net share settlement of restricted share units | (441) | (441) | |||||
Ending balance at Dec. 25, 2020 | $ 1,036,670 | $ 387 | $ 177,125 | $ (75,575) | $ (1,657) | $ 936,390 | |
Ending balance (in shares) at Dec. 25, 2020 | 38,698,068 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - shares | 3 Months Ended | 6 Months Ended |
Dec. 25, 2020 | Dec. 25, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Treasury stock acquired (in shares) | 101,549 | 101,549 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 25, 2020 | Dec. 27, 2019 | |
Cash flows from operating activities | ||
Net income | $ 68,435 | $ 57,188 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 17,650 | 15,279 |
(Gain) loss on disposal of property, plant and equipment | (24) | 242 |
(Gain) loss from sales and maturities of available-for-sale securities | (86) | (79) |
Amortization of investment discount | 1,003 | 117 |
Amortization of deferred debt issuance costs | 16 | 10 |
(Reversal of) allowance for doubtful accounts | (321) | 6 |
Unrealized (gain) loss on exchange rate and fair value of foreign currency forward contracts | (290) | 1,205 |
Unrealized loss (gain) on fair value of interest rate swaps | 0 | 1,672 |
Amortization of fair value at hedge inception of interest rate swaps | (695) | (433) |
Share-based compensation | 11,878 | 12,183 |
Deferred income tax | (461) | 1,543 |
Other non-cash expenses | (657) | (851) |
Changes in operating assets and liabilities | ||
Trade accounts receivable | (45,410) | (24,970) |
Contract assets | (2,967) | 1,333 |
Inventories | (62,211) | (767) |
Other current assets and non-current assets | (11,983) | 7,471 |
Trade accounts payable | 45,179 | (22,816) |
Contract liabilities | 248 | 121 |
Income tax payable | 548 | 1,336 |
Severance liabilities | 1,350 | 2,015 |
Other current liabilities and non-current liabilities | 20,112 | 805 |
Net cash provided by operating activities | 41,314 | 52,610 |
Cash flows from investing activities | ||
Purchase of short-term investments | (126,701) | (101,727) |
Proceeds from sales of short-term investments | 57,486 | 72,664 |
Proceeds from maturities of short-term investments | 68,807 | 62,666 |
Funds provided to customer to support transfer of manufacturing operations (Note 8) | 0 | (24,310) |
Purchase of property, plant and equipment | (22,693) | (15,411) |
Purchase of intangibles | (1,271) | (808) |
Proceeds from disposal of property, plant and equipment | 26 | 1,195 |
Net cash used in investing activities | (24,346) | (5,731) |
Cash flows from financing activities | ||
Payment of debt issuance costs | 0 | (153) |
Proceeds from long-term borrowings | 0 | 60,938 |
Repayment of long-term borrowings | (6,094) | (63,985) |
Repayment of finance lease liability | (100) | (189) |
Repurchase of ordinary shares | (7,074) | 0 |
Withholding tax related to net share settlement of restricted share units | (10,361) | (4,377) |
Net cash used in financing activities | (23,629) | (7,766) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (6,661) | 39,113 |
Movement in cash, cash equivalents and restricted cash | ||
Cash, cash equivalents and restricted cash at the beginning of period | 232,832 | 188,241 |
Increase (decrease) in cash, cash equivalents and restricted cash | (6,661) | 39,113 |
Effect of exchange rate on cash, cash equivalents and restricted cash | 605 | 351 |
Cash, cash equivalents and restricted cash at the end of period | 226,776 | 227,705 |
Non-cash investing and financing activities | ||
Construction, software and equipment-related payables | $ 7,748 | $ 14,307 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 25, 2020 | Dec. 27, 2019 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | $ 219,221 | $ 220,031 |
Restricted cash | 7,555 | 7,674 |
Cash, cash equivalents and restricted cash | $ 226,776 | $ 227,705 |
Business and organization
Business and organization | 6 Months Ended |
Dec. 25, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and organization | Business and organization General Fabrinet (“Fabrinet” or the “Parent Company”) was incorporated on August 12, 1999, and commenced operations on January 1, 2000. The Parent Company is an exempted company incorporated in the Cayman Islands, British West Indies. The “Company” refers to Fabrinet and its subsidiaries as a group. The Company provides advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (“OEMs”) of complex products, such as optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices and sensors. The Company offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing. The Company focuses primarily on the production of low-volume, high-mix products. The principal subsidiaries of Fabrinet include Fabrinet Co., Ltd. (“Fabrinet Thailand”), Casix, Inc. (“Casix”), Fabrinet West, Inc. (“Fabrinet West”) and Fabrinet UK Limited (“Fabrinet UK”). |
Accounting policies
Accounting policies | 6 Months Ended |
Dec. 25, 2020 | |
Accounting Policies [Abstract] | |
Accounting policies | Accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of December 25, 2020 and for the three and six months ended December 25, 2020 and December 27, 2019 includes normal recurring adjustments necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 26, 2020. The balance sheet as of June 26, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and six months ended December 25, 2020 may not be indicative of results for the year ending June 25, 2021 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, allowance for expected credit losses, 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 different from actual results, adjustments will be made in subsequent periods to reflect more current information. Additionally, the extent to which the evolving COVID-19 pandemic impacts the Company’s unaudited condensed consolidated financial statements will depend on a number of factors, including the magnitude and duration of the pandemic. These estimates may change, as new events occur and additional information is obtained, as well as other factors related to the COVID-19 pandemic that could result in material impacts to the Company's unaudited condensed consolidated financial statements in future reporting periods. 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 December 25, 2020 and December 27, 2019 each consisted of 13 weeks. The six months ended December 25, 2020 and December 27, 2019 each consisted of 26 weeks. Fiscal year 2021 will be comprised of 52 weeks and will end on June 25, 2021. Reclassifications For presentation purposes, certain prior period amounts have been reclassified to conform to the current period presentation. As of June 26, 2020, the derivative assets and liabilities were measured at fair value and recognized by offsetting the fair value amounts under master netting arrangements. Also, the Company chose not to separate a derivative into current and non-current portions as follows: (i) A derivative for which the fair value is a net liability is classified in total as current. (ii) A derivative for which the fair value is a net asset and the current portion is an asset is classified in total as non-current. If the current portion is a liability, it is presented as a current liability. As of December 25, 2020, the derivative assets and liabilities were measured at fair value, but the gross fair value amount is presented in the unaudited condensed consolidated balance sheets. Additionally, a classification of current and non-current portion is determined by the maturity date of that derivative (e.g., a derivative that matures within one year is classified as current). The reclassifications have been made to the consolidated balance sheet as of June 26, 2020 as shown in the following table: June 26, 2020 (amount in thousands) As previously Reclassification After Consolidated Balance Sheet Current assets Other current assets $ 13,915 $ 593 $ 14,508 Current liabilities Accrued expenses $ 12,104 $ (3,125) $ 8,979 Non-current liabilities Other non-current liabilities $ 1,937 $ 3,718 $ 5,655 Adoption of New Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments—Credit Losses On June 27, 2020, the Company adopted Accounting Standards Codification (“ASC”) 326 using the modified retrospective transition approach. The modified retrospective method requires the Company to recognize the cumulative effect of the adoption of ASC 326, to the opening accumulated retained earnings. Accordingly, the Company’s comparative financial statements as of June 26, 2020 have not been adjusted. The Company implemented internal controls to enable the preparation of financial information upon adoption. Management estimates the expected credit losses of financial assets using relevant available information from internal and external sources relating to historical credit loss experience, current conditions and reasonable forecasts over a financial asset’s contractual term. Adjustments to historical loss information are made from qualitative and quantitative factors if economic conditions on the reporting date reflect stronger or weaker economic performance than the historical data implies based on management’s expectations of economic conditions on certain indicators of the Company, industry and economy. The Company reviews factors such as past collection experience, age of the accounts receivable and contract assets balance, significant trends in current balances, internal operations and macroeconomic conditions. In addition, the Company modified its impairment model to the Current Expected Credit Losses (“CECL”) model for available-for-sale (“AFS”) debt securities and discontinued using the concept of “other than temporary” impairment on these AFS debt securities. CECL on the AFS debt securities are recognized in interest income and other income (expense), net on the Company’s unaudited condensed consolidated statements of operations and comprehensive income, and any remaining unrealized losses, are included in accumulated other comprehensive income (loss) (“AOCI”) in the unaudited condensed consolidated balance sheet. As of June 27, 2020, the Company recorded a cumulative adjustment from CECL in the amount of $0.1 million, net of tax impact, to accumulated retained earnings in the unaudited condensed consolidated balance sheet. On June 27, 2020, the Company also adopted ASC 820, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This standard is intended to improve the effectiveness of disclosures in the notes to the financial statements, including (1) the development of a framework that promotes consistent decisions by the FASB about disclosure requirements and (2) the appropriate exercise of discretion by reporting entities. The amendment modifies the disclosure requirements on transferring between level 1 and level 2 and valuation processes of level 3 fair value measurements. The Company adopted this standard with no impact on its unaudited condensed consolidated financial statements. Changes in Accounting Policies Except for the adoption of ASC 326, the Company has consistently applied the accounting policies to all periods presented in these unaudited condensed consolidated financial statements. Short-term investments 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 the Company’s 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 and six months to three years. The Company’s short-term investments, which consist of investments in U.S. Treasury, fixed income securities, liquidity funds that invest in short-term debt securities and certificates of deposit and time deposits, have been classified and accounted for as AFS. The AFS investments are carried at estimated fair value with any unrealized gains and losses, included in AOCI in the Company’s unaudited condensed consolidated balance sheet. The Company determines realized gains or losses on sale of marketable securities on a specific identification method and records such gains or losses as interest income and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive income. AFS debt securities are required to be individually evaluated for impairment. A security is considered impaired if the fair value of the security is less than its amortized cost basis. An impairment is considered other than temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security. If an impairment is considered other than temporary based on condition (i) or (ii), the entire difference between the amortized cost and the fair value of the debt security is recognized as interest income and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive income. If an impairment is considered other than temporary based on condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security) is recognized in interest and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive income, and any remaining unrealized losses are included in AOCI in the unaudited condensed consolidated balance sheet. Trade accounts receivable Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates of expected credit losses for the allowance for doubtful accounts based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. The estimated credit loss allowance is recorded as selling, general and administrative expenses in the unaudited condensed consolidated statements of operations and comprehensive income. Contract assets A contract asset is recognized when the Company has recognized revenues prior to generating an invoice for payment. Contract assets are classified separately within the unaudited condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. The Company makes estimates of expected credit losses for the allowance for contract assets based upon its assessment of various factors, including historical experience, the age of the contract assets balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. The estimated credit loss allowance is recorded as selling, general and administrative expenses in its unaudited condensed consolidated statements of operations and comprehensive income. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, short-term investments, derivatives, accounts receivable and contract assets. Cash, cash equivalents and short-term investments are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate its credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. The Company limits its short-term investments in marketable securities to securities with a maturity not in excess of three years and securities that are rated A1, P-1, F1, or better. 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 December 2019, the FASB issued ASU2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. This ASU will be effective for the Company in the first quarter of fiscal year 2022. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its unaudited condensed consolidated financial statements. |
Revenues from contracts with cu
Revenues from contracts with customers | 6 Months Ended |
Dec. 25, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from contracts with customers | Revenues from contracts with customers Revenue by Geographic Area and End Market Revenues are attributed to a particular geographic area based on the bill-to-location of the Company’s customers. The Company operates in three geographic regions: North America, Asia-Pacific and Europe. The following table presents total revenues by geographic region: (amount in thousands, except percentages) Three Months Ended As a % of Total Six Months Ended As a % of Total North America $ 224,672 49.5 % $ 432,074 48.5 % Asia-Pacific 153,734 33.9 299,380 33.6 Europe 75,421 16.6 159,012 17.9 $ 453,827 100.0 % $ 890,466 100.0 % (amount in thousands, except percentages) Three Months Ended As a % of Total Six Months Ended As a % of Total North America $ 223,398 52.4 % $ 424,345 51.4 % Asia-Pacific 141,147 33.1 259,570 31.4 Europe 61,672 14.5 141,598 17.2 $ 426,217 100.0 % $ 825,513 100.0 % The following table presents revenues by end market. (amount in thousands, except percentages) Three Months Ended As a % of Total Six Months Ended As a % of Total Optical communications $ 347,840 76.6 % $ 691,757 77.7 % Lasers, sensors and other 105,987 23.4 198,709 22.3 Total $ 453,827 100.0 % $ 890,466 100.0 % (amount in thousands, except percentages) Three Months Ended As a % of Total Six Months Ended As a % of Total Optical communications $ 322,068 75.6 % $ 624,447 75.6 % Lasers, sensors and other 104,149 24.4 201,066 24.4 Total $ 426,217 100.0 % $ 825,513 100.0 % Contract Assets and Liabilities A contract asset is recognized when the Company has recognized revenues prior to generating an invoice for payment. Contract assets are classified separately within the unaudited condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. 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 six months ended December 25, 2020: (amount in thousands) Contract Beginning balance, June 26, 2020 $ 13,256 Revenue recognized 35,464 Amounts collected or invoiced (32,497) Ending balance, December 25, 2020 $ 16,223 (amount in thousands) Contract Beginning balance, June 26, 2020 $ 1,556 Additions advance payment received during the period 14,597 Revenue recognized (14,349) Ending balance, December 25, 2020 $ 1,804 |
Earnings per ordinary share
Earnings per ordinary share | 6 Months Ended |
Dec. 25, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per ordinary share | 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 Six Months Ended (amount in thousands except per share amounts) December 25, December 27, December 25, December 27, Net income attributable to shareholders $ 35,384 $ 31,231 $ 68,435 $ 57,188 Weighted-average number of ordinary shares outstanding (thousands of shares) 36,936 37,011 36,877 36,962 Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares) 615 752 590 684 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,551 37,763 37,467 37,646 Basic earnings per ordinary share $ 0.96 $ 0.84 $ 1.86 $ 1.55 Diluted earnings per ordinary share $ 0.94 $ 0.83 $ 1.83 $ 1.52 Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1) 91 50 91 50 (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. |
Cash, cash equivalents and shor
Cash, cash equivalents and short-term investments | 6 Months Ended |
Dec. 25, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents and short-term investments | Cash, cash equivalents and short-term investments The Company’s cash, cash equivalents, and short-term investments are as follows: Fair Value (amount in thousands) Carrying Unrealized Cash and Marketable Other As of December 25, 2020 Cash $ 211,314 $ — $ 211,314 $ — $ — Cash equivalents 7,907 — 7,907 — — Liquidity funds 41,245 — — — 41,245 Certificates of deposit and time deposits 20,500 — — — 20,500 Corporate debt securities 159,485 790 — 160,275 — U.S. agency and U.S. treasury securities 39,462 335 — 39,797 — Total $ 479,913 $ 1,125 $ 219,221 $ 200,072 $ 61,745 As of June 26, 2020 Cash $ 218,117 $ — $ 218,117 $ — $ — Cash equivalents 7,313 — 7,313 — — Liquidity funds 41,051 — — — 41,051 Certificates of deposit and time deposits 11,800 — — — 11,800 Corporate debt securities 159,220 948 — 160,168 — U.S. agency and U.S. treasury securities 49,130 544 — 49,674 — Total $ 486,631 $ 1,492 $ 225,430 $ 209,842 $ 52,851 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 following table summarizes the cost and estimated fair value of short-term investments classified as available-for-sale securities based on stated effective maturities as of December 25, 2020 and June 26, 2020: December 25, 2020 June 26, 2020 (amount in thousands) Carrying Fair Value Carrying Fair Value Due within one year $ 82,493 $ 82,508 $ 76,127 $ 76,196 Due between one to five years 116,454 117,564 132,223 133,646 Total $ 198,947 $ 200,072 $ 208,350 $ 209,842 |
Fair value of financial instrum
Fair value of financial instruments | 6 Months Ended |
Dec. 25, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs for the valuation of an asset or liability as of the measurement date. The three levels of inputs that may be used to measure fair value are defined as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs 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 December 25, 2020 Assets Cash equivalents $ — $ 7,907 $ — $ 7,907 Liquidity funds — 41,245 — 41,245 Certificates of deposit and time deposits — 20,500 — 20,500 Corporate debt securities — 160,275 — 160,275 U.S. agency and U.S. treasury securities — 39,797 — 39,797 Derivative assets – current portion — 3,071 (1) — 3,071 Total $ — $ 272,795 $ — $ 272,795 Liabilities Derivative liabilities – current portion $ — $ 1,676 $ — $ 1,676 Derivative liabilities – non-current portion — 2,894 — 2,894 Total $ — $ 4,570 (2) $ — $ 4,570 Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of June 26, 2020 Assets Cash equivalents $ — $ 7,313 $ — $ 7,313 Liquidity funds — 41,051 — 41,051 Certificates of deposit and time deposits — 11,800 — 11,800 Corporate debt securities — 160,168 — 160,168 U.S. agency and U.S. treasury securities — 49,674 — 49,674 Derivative assets — 2,823 (3) — 2,823 Total $ — $ 272,829 $ — $ 272,829 Liabilities Derivative liabilities – current portion $ — $ 2,148 $ — $ 2,148 Derivative liabilities – non-current portion — 3,718 — 3,718 Total $ — $ 5,866 (4) $ — $ 5,866 (1) Foreign currency forward contracts with a notional amount of $130.0 million and Canadian dollars of 0.6 million. (2) Two interest rate swap agreements with an aggregate notional amount of $125.1 million. (3) Foreign currency forward contracts with a notional amount of $125.0 million and Canadian dollars of 0.6 million, and option contract with a notional amount of $1.0 million. (4) Two interest rate swap agreements with an aggregate notional amount of $125.1 million. 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 long-term debt. 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 and option contracts As a result of foreign currency rate fluctuations, the U.S. dollar equivalent values of the Company’s foreign currency denominated assets and liabilities fluctuate. The Company uses foreign currency forward and option contracts to manage the foreign exchange risk associated with a portion of its foreign currency denominated assets and liabilities and other foreign currency transactions. The Company enters into foreign currency forward and option contracts to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht and Canadian dollars with counterparties that meet the Company’s minimum credit quality standard. The Company may enter into foreign currency forward contracts with maturities of up to 12 months to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht, including inventory purchases, payroll and other operating expenses. The Company considers these forward contracts as dual-purpose hedges, that hedge both the foreign exchange fluctuation (i) from inception through the forecasted expenditure, and (ii) any subsequent revaluation of the account payable or accrual. The Company may designate the forward contracts that hedge the foreign exchange fluctuation from inception through the forecasted expenditure as cash flow hedges. The gain or loss on a derivative instrument designated and qualified as a cash flow hedging instrument is recorded as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The reclassified amounts are presented in the same income statement line item as the earnings effect of the hedged item. Once the forecasted transactions are recorded, the Company will discontinue the hedging relationship by de-designating the derivative instrument and recording subsequent changes in fair value through contract maturity to foreign exchange gain (loss), net in the unaudited condensed consolidated statements of operations and comprehensive income as a natural hedge against the Thai baht denominated assets and liabilities. The Company may also enter into non-designated foreign currency forward and option contracts to provide an offset to the re-measurement of foreign currency denominated assets and liabilities and to hedge certain forecasted exposures. Changes in the fair value of these non-designated derivatives are recorded through foreign exchange gain (loss), net in the unaudited condensed consolidated statements of operations and comprehensive income. As of December 25, 2020, the Company had 130 outstanding U.S. dollar foreign currency forward contracts against Thai baht, with an aggregate notional amount of $130.0 million and maturity dates ranging from January 2021 through July 2021 and one outstanding Canadian dollar foreign currency forward contract with a notional amount of Canadian dollars of 0.6 million and a maturity date in March 2021. As of June 26, 2020, the Company had 125 outstanding U.S. dollar foreign currency forward contracts against Thai baht with an aggregate notional amount of $125.0 million, one foreign currency contract with notional amount of Canadian dollars 0.6 million and one foreign currency option contract with notional amount of $1.0 million with maturity dates ranging from July 2020 through January 2021. As of December 25, 2020, the hedging relationship over foreign currency forward contracts that were designated for hedge accounting was determined to be highly effective based on the performance of retrospective and prospective regression testing. As of December 25, 2020, the amount in AOCI that is expected to be reclassified into earnings within 12 months was a gain of $1.8 million. During the three and six months ended December 25, 2020, the Company recorded an unrealized gain of $1.8 million and $0.3 million from changes in the fair value of a foreign currency forward contract that was not designated for hedge accounting in earnings as foreign exchange gain (loss), net in the unaudited condensed consolidated statements of operations and comprehensive income. During the six months ended December 27, 2019, the Company recorded an unrealized loss of $1.9 million from changes in the fair value of a foreign currency forward contract that was not designated for hedge accounting in earnings as foreign exchange gain (loss), net in the unaudited condensed consolidated statements of operations and comprehensive income. During the three months ended December 27, 2019, the amount was not material. Interest Rate Swap Agreements The Company entered into interest rate swap agreements to mitigate interest rate risk and improve the interest rate profile of the Company’s debt obligations. As of December 25, 2020 and June 26, 2020, the Company had two outstanding interest rate swap agreements with an aggregate notional amount of $125.1 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 12). 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 12) and on September 10, 2019, repaid in full the outstanding term loan under the Bank of America Credit Facility (see Note 12). 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 qualified for hedge accounting because the hedges are highly effective, and the Company has designated and documented contemporaneously the hedging relationships involving these interest rate swaps. While the Company intends to continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective, the changes in the fair value of the derivatives used as hedges would be reflected in earnings. From September 27, 2019, any gains or losses related to these interest rate swaps will be recorded in AOCI in the unaudited condensed consolidated balance sheets. The Company will reclassify a portion of the gains or losses from AOCI into earnings at each reporting period based on either the accrued interest amount or the interest payment. As of December 25, 2020, the amount in AOCI that is expected to be reclassified into earnings within 12 months is a loss of $0.6 million. Prior to September 27, 2019, these interest rate swaps were not designated as cash flow hedges and all changes in the fair value of these interest rate swaps were reflected in earnings. During the three and six months ended December 27, 2019, the Company recorded unrealized loss of nil and $1.7 million, respectively, from changes in the fair value of these interest rate swaps as interest expense in the unaudited condensed consolidated statements of operations and comprehensive income. The following table provides a summary of the impact of derivative gain (loss) of the Company’s foreign currency forward contracts and interest rate swaps which were designated as cash flow hedges on the unaudited condensed consolidated statements of operations and other comprehensive income: Three Months Ended Six Months Ended (amount in thousands) Financial December 25, December 27, December 25, December 27, Derivatives gain (loss) Foreign currency forward contracts Other $ 3,149 $ — $ 809 $ — Interest rate swaps Other 386 243 743 282 Total derivatives gain (loss) recognized in other comprehensive income (loss) $ 3,535 $ 243 $ 1,552 $ 282 Derivatives loss (gain) reclassified from accumulated other comprehensive income (loss) into earnings: Foreign currency forward contracts Cost of revenues $ 337 $ — $ (1,720) $ — Foreign currency forward contracts SG&A 14 — (73) — Foreign currency forward contracts Foreign exchange loss, net (1,165) — 113 — Interest rate swaps Interest expense (336) (432) (695) (432) Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings $ (1,150) $ (432) $ (2,375) $ (432) Change in net unrealized gain (loss) on derivatives instruments $ 2,385 $ (189) $ (823) $ (150) Fair Value of derivatives The following table provides the fair values of the Company’s derivative financial instruments for the periods presented: December 25, June 26, (amount in thousands) Derivative Derivative Derivative Derivative Derivatives not designated as hedging instruments Foreign currency forward and option contracts $ 1,095 $ — $ 9 $ (611) Interest rate swaps — — — — Derivatives designated as hedging instruments Foreign currency forward contracts 1,976 (140) 2,814 (83) Interest rate swaps — (4,430) — (5,172) Derivatives, gross balances $ 3,071 $ (4,570) $ 2,823 $ (5,866) The Company recorded the fair value of derivative financial instruments in the unaudited condensed consolidated balance sheets as follows: Derivative Financial Instruments Balance Sheet line item Fair Value of Derivative Assets Other current assets Fair Value of Derivative Liabilities Accrued expenses Fair Value of Derivative Liabilities Other non-current liabilities |
Inventories
Inventories | 6 Months Ended |
Dec. 25, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (amount in thousands) As of December 25, As of June 26, Raw materials $ 143,230 $ 141,522 Work in progress 177,881 136,344 Finished goods 30,194 17,950 Goods in transit 20,691 13,970 Inventories $ 371,996 $ 309,786 |
Other receivable
Other receivable | 6 Months Ended |
Dec. 25, 2020 | |
Receivables [Abstract] | |
Other receivable | Other receivable On October 1, 2019, the Company provided funds in the amount of $24.3 million to a customer to support the customer’s transfer of certain manufacturing operations from Berlin, Germany to the Company’s facilities in Thailand. On October 1, 2020, the Company extended the payment terms of the funds and the accrued interest from September 30, 2020 to April 1, 2021, and reduced the interest rate effective from October 1, 2020. The extension was granted in connection with the customer’s agreement to transfer additional manufacturing operations to the Company’s facilities in Thailand beginning in November 2020. These funds will be offset by the amount due to this customer for the purchases of certain inventories. |
Restricted cash
Restricted cash | 6 Months Ended |
Dec. 25, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Restricted cash | Restricted cash As of December 25, 2020 and June 26, 2020, 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. As of December 25, 2020 and June 26, 2020, the standby letter of credit was backed by cash collateral of $7.4 million. This standby letter of credit expired on December 31, 2020 and the corresponding cash collateral was released in January 2021. As of December 25, 2020, the Company had long-term restricted cash of Renmibi 1.0 million related to bank guarantees of its subsidiary in China to support the subsidiary's operations. The bank guarantee was backed by cash collateral of $0.2 million. |
Leases
Leases | 6 Months Ended |
Dec. 25, 2020 | |
Leases [Abstract] | |
Leases | LeasesThe Company leases facilities under non-cancelable operating lease agreements. The Company leases a portion of its capital equipment and vehicles, certain land and buildings for its facilities in Thailand, the Cayman Islands, China, the U.S., the U.K. and Israel under operating lease arrangements that expire at various dates through 2025. Certain of these lease arrangements provide the Company the ability to extend the lease from one Operating leases As of December 25, 2020, the maturities of the Company’s operating lease liabilities were as follows: (amount in thousands) As of December 25, 2021 (remaining six months) $ 1,285 2022 2,568 2023 2,448 2024 1,088 2025 30 Total undiscounted lease payments 7,419 Less imputed interest (405) Total present value of lease liabilities $ 7,014 (1) (1) Included current portion of operating lease liabilities for the period ended December 25, 2020. Rental expense related to the Company’s operating leases is recognized on a straight-line basis over the lease term. Rental expense for long-term leases for the three and six months ended December 25, 2020 was $0.6 million and $1.2 million, respectively, and for the three and six months ended December 27, 2019 was $0.5 million and $1.0 million, respectively. Rental expense for short-term leases for the three and six months ended December 25, 2020 was $0.1 million and $0.2 million, respectively, and for the three and six months ended December 27, 2019 was not material. The following summarizes additional information related to the Company’s operating leases: As of December 25, 2020 As of June 26, 2020 Weighted-average remaining lease term (in years) 3.1 3.3 Weighted-average discount rate 3.7 % 3.7 % The following table presents supplemental disclosure for the unaudited condensed consolidated statement of cash flows related to operating and finance leases for the three and six months ended December 25, 2020 and December 27, 2019: Three Months Ended Six Months Ended (amount in thousands) December 25, December 27, December 25, December 27, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 667 $ 566 $ 1,261 $ 1,024 Financing cash flows from finance leases $ — $ 80 $ 100 $ 189 ROU assets obtained in exchange for lease liabilities $ 43 $ 1,373 $ 7,271 $ 7,558 |
Intangibles
Intangibles | 6 Months Ended |
Dec. 25, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated Foreign Net As of December 25, 2020 Software $ 9,018 $ (6,100) $ — $ 2,918 Customer relationships 4,373 (2,954) 30 1,449 Backlog 119 (119) — — Total intangibles $ 13,510 $ (9,173) $ 30 $ 4,367 (amount in thousands) Gross Accumulated Foreign Net As of June 26, 2020 Software $ 8,317 $ (5,577) $ — $ 2,740 Customer relationships 4,373 (2,691) (110) 1,572 Backlog 119 (119) — — Total intangibles $ 12,809 $ (8,387) $ (110) $ 4,312 The Company recorded amortization expense relating to intangibles of $0.5 million and $0.3 million for the three months ended December 25, 2020 and December 27, 2019, respectively, and $0.7 million and $0.6 million for the six months ended December 25, 2020 and December 27, 2019, respectively. The weighted-average remaining life of customer relationships was: (years) As of December 25, 2020 As of June 26, 2020 Customer relationships 4.3 4.6 Based on the carrying amount of intangibles as of December 25, 2020, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2021 (remaining six months) $ 312 2022 1,215 2023 1,208 2024 924 2025 488 Thereafter 220 Total $ 4,367 |
Borrowings
Borrowings | 6 Months Ended |
Dec. 25, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company’s total borrowings, including current and non-current portions of long-term borrowings, consisted of the following: (amount in thousands) Rate Conditions Maturity As of December 25, 2020 As of June 26, 2020 Long-term borrowings, current portion, net: Long-term borrowings, current portion $ 12,188 $ 12,188 Less: Unamortized debt issuance costs – current portion (32) (32) Long-term borrowings, current portion, net $ 12,156 $ 12,156 Long-term borrowings, non-current portion, net: Term loan borrowings: 3-month LIBOR +1.35% per annum (1) Repayable in June 2024 $ 45,703 $ 51,797 Less: Current portion (12,188) (12,188) Less: Unamortized debt issuance costs – non-current portion (79) (95) Long-term borrowings, non-current portion, net $ 33,436 $ 39,514 (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 six months ended December 25, 2020 and December 27, 2019 were as follows: Six Months Ended (amount in thousands) December 25, December 27, Opening balance $ 51,797 $ 60,938 Borrowings during the period — 60,938 Repayments during the period (6,094) (63,985) Closing balance $ 45,703 $ 57,891 As of December 25, 2020, future maturities of long-term borrowings during each fiscal year were as follows: (amount in thousands) 2021 (remaining six months) $ 9,141 2022 12,187 2023 12,187 2024 12,188 Total $ 45,703 Credit facility agreements: Bank of Ayudhya Public Company Limited On August 20, 2019, Fabrinet Thailand (the “Borrower”) and Bank of Ayudhya Public Company Limited (the “Bank”) entered into a Credit Facility Agreement (the “Credit Facility Agreement”). The Credit Facility Agreement provides for a facility of 110.0 million Thai baht (approximately $3.6 million based on the applicable exchange rate as of December 27, 2019) and $160.9 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 on September 3, 2019 a term loan in the original principal amount of $60.9 million. The proceeds from the term loan, together with cash on hand, were used to repay outstanding obligations under the Company’s previous syndicated senior credit facility agreement. The term loan accrues interest at 3-month LIBOR plus 1.35% and is repayable in quarterly installments of $3.0 million, commencing on September 30, 2019. The term loan will mature on June 30, 2024. The Borrower may prepay the term loan in whole or in part at any time without premium or penalty. Any portion of the term loan repaid or prepaid may not be re-borrowed. During the three and six months ended December 25, 2020, the Company recorded $0.2 million and $0.4 million, respectively, of interest expense in connection with this term loan. Any borrowings under the Credit Facility Agreement, including those borrowings under the Term Loan Agreement, are guaranteed by Fabrinet and secured by land and buildings owned by the Borrower in the Pathumthani and Chonburi Provinces 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. As of December 25, 2020, the Company was in compliance with all of its financial 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 December 25, 2020, there was $45.7 million outstanding under the term loan. Bank of America, N.A. On May 22, 2014, the Company and a consortium 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, the Company 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 04, 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%, or a base rate plus a spread of 0.50% to 1.25%. During the three and six months ended December 27, 2019, the Company recorded $0.5 million of interest expense in connection with this term loan for both periods. On September 10, 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. |
Income taxes
Income taxes | 6 Months Ended |
Dec. 25, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes As of December 25, 2020 and June 26, 2020, the liability for uncertain tax positions including accrued interest and penalties was $0.8 million and $1.5 million, respectively. The Company expects the estimated amount of liability associated with its uncertain tax positions to increase within the next 12 months due to interest on these positions. The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2015 to 2020 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 December 25, 2020 and December 27, 2019 was 3.0% and 4.9%, respectively, of net income. The decrease was primarily due to the fact that the Company had lower income subject to tax during the second quarter of fiscal year 2021 as compared to the same period in fiscal year 2020. The effective tax rate for the Company for the six months ended December 25, 2020 and December 27, 2019 was 3.7% and 5.0%, respectively, of net income. The decrease was primarily due to the fact that the Company had lower income subject to tax during the first six months of fiscal year 2021 as compared to the same period in fiscal year 2020. |
Share-based compensation
Share-based compensation | 6 Months Ended |
Dec. 25, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | 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 Fabrinet's ordinary shares on the date of grant. The effect of recording share-based compensation expense for the three and six months ended December 25, 2020 and December 27, 2019 was as follows: Three Months Ended Six Months Ended (amount in thousands) December 25, December 27, December 25, December 27, Share-based compensation expense by type of award: Restricted share units $ 4,175 $ 4,186 $ 9,424 $ 8,584 Performance share units 1,676 2,002 2,454 3,599 Total share-based compensation expense 5,851 6,188 11,878 12,183 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 5,851 $ 6,188 $ 11,878 $ 12,183 Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended Six Months Ended (amount in thousands) December 25, December 27, December 25, December 27, Cost of revenue $ 1,592 $ 1,591 $ 3,417 $ 3,311 Selling, general and administrative expense 4,259 4,597 8,461 8,872 Total share-based compensation expense $ 5,851 $ 6,188 $ 11,878 $ 12,183 The Company did not capitalize any share-based compensation expense as part of any asset costs during the three and six months ended December 25, 2020 and December 27, 2019. Share-based award activity On December 12, 2019, the Company’s shareholders approved Fabrinet’s 2020 Equity Incentive Plan (the “2020 Plan”). Upon the approval of the 2020 Plan, Fabrinet’s Amended and Restated 2010 Performance Incentive Plan (the “2010 Plan”) was simultaneously terminated. The 2020 Plan provides for the grant of equity awards thereunder with respect to (i) 1,700,000 ordinary shares, plus (ii) up to 1,300,000 ordinary shares that, as of immediately prior to the termination of the 2010 Plan, had been reserved but not issued pursuant to any awards granted under the 2010 Plan and are not subject to any awards thereunder. Upon termination of the 2010 Plan, 1,281,619 ordinary shares were reserved for issuance under the 2020 Plan pursuant to clause (ii) of the preceding sentence. As of December 25, 2020, there were 261,899 restricted share units outstanding, 188,554 performance share units outstanding and 2,522,057 ordinary shares available for future grant under the 2020 Plan. As of December 25, 2020, there were 433,599 restricted share units outstanding and 238,474 performance share units outstanding under the 2010 Plan. No ordinary shares are available for future grant under the 2010 Plan. On November 2, 2017, the Company adopted the 2017 Inducement Equity Incentive Plan (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 December 25, 2020, there were 12,164 restricted share units outstanding and 111,347 ordinary shares available for future grant under the 2017 Inducement Plan. The 2020 Plan, 2010 Plan and 2017 Inducement Plan are collectively referred to as the “Equity Incentive Plans.” Restricted share units and performance share units Restricted share units and performance share units have been granted under the Equity Incentive Plans. Restricted share units granted to employees generally vest in equal installments over three Performance share units granted to executives will vest, if at all, at the end of a two-year performance period based on the Company’s achievement of pre-defined performance criteria, which consist of revenue and non-GAAP operating margin targets. The actual number of performance share units that may vest at the end of the performance period ranges from 0% to 100% of the award grant. The following table summarizes restricted share unit activity under the Equity Incentive Plans: Number Weighted- Balance as of June 26, 2020 797,757 $ 46.88 Granted 216,776 $ 69.48 Issued (292,874) $ 43.75 Forfeited (13,997) $ 54.23 Balance as of December 25, 2020 707,662 $ 54.95 Number Weighted- Balance as of June 28, 2019 800,751 $ 42.48 Granted 331,900 $ 49.78 Issued (264,275) $ 39.60 Forfeited (23,855) $ 42.09 Balance as of December 27, 2019 844,521 $ 46.26 The following table summarizes performance share unit activity under the Equity Incentive Plans: Number Weighted- Balance as of June 26, 2020 440,140 $ 48.37 Granted 184,718 $ 69.85 Issued (82,185) $ 48.02 Forfeited (115,645) $ 48.02 Balance as of December 25, 2020 427,028 $ 57.82 Number Weighted- Balance as of June 28, 2019 548,500 $ 40.97 Granted 238,474 $ 48.39 Issued — — Forfeited (350,670) $ 36.99 Balance as of December 27, 2019 436,304 $ 48.22 The fair value of restricted share units and performance share units is based on the market value of Fabrinet's ordinary shares on the date of grant. As of December 25, 2020, there was $17.2 million and $12.1 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 2.5 years and 1.4 years, respectively. For the six months ended December 25, 2020 and December 27, 2019, the Company withheld an aggregate of 148,958 shares and 86,138 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date to settle employee obligations for the applicable income and other employment taxes. For the six months ended December 25, 2020 and December 27, 2019, the Company then remitted cash of $10.4 million and $4.4 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 was recorded as a reduction of additional paid-in capital. |
Shareholders' equity
Shareholders' equity | 6 Months Ended |
Dec. 25, 2020 | |
Equity [Abstract] | |
Shareholders' equity | 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 and six months ended December 25, 2020, Fabrinet issued 17,409 and 226,101 ordinary shares upon the vesting of restricted share units, net of shares withheld. For the three and six months ended December 27, 2019, Fabrinet issued 19,762 and 178,137 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, May 2019 and August 2020, the Company’s board of directors approved an increase of $30.0 million, $50.0 million and $58.5 million, respectively, to the original share repurchase authorization, bringing the aggregate authorization to $168.5 million. During the six months ended December 25, 2020, the Company repurchased 101,549 shares under the program at an average price per share of $69.64, totaling $7.1 million. As of December 25, 2020, the Company had a remaining authorization to purchase up to an additional $92.9 million worth of its ordinary shares under the share repurchase program. Shares repurchased under the share repurchase program are held as treasury shares. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 6 Months Ended |
Dec. 25, 2020 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) The changes in AOCI for the six months ended December 25, 2020 and December 27, 2019 were as follows: (amount in thousands) Unrealized net Unrealized net Retirement Foreign Total Balance as of June 26, 2020 $ 1,490 $ 602 $ (2,009) $ (1,230) $ (1,147) Other comprehensive income before reclassification adjustment (289) 1,552 — 457 1,720 Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income (78) (2,375) 223 — (2,230) Tax effects — — — — — Other comprehensive income (loss) $ (367) $ (823) $ 223 $ 457 $ (510) Balance as of December 25, 2020 $ 1,123 $ (221) $ (1,786) $ (773) $ (1,657) (amount in thousands) Unrealized net Unrealized net Retirement Foreign Total Balance as of June 28, 2019 $ 952 $ 32 $ (2,537) $ (833) $ (2,386) Other comprehensive income before reclassification adjustment (126) (150) 184 247 155 Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income 79 — — — 79 Tax effects — — — — — Other comprehensive income (loss) $ (47) $ (150) $ 184 $ 247 $ 234 Balance as of December 27, 2019 $ 905 $ (118) $ (2,353) $ (586) $ (2,152) |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Dec. 25, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Letter of credit and Bank guarantees As of December 25, 2020 and June 26, 2020, 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. As of December 25, 2020 and June 26, 2020, the standby letter of credit was backed by cash collateral of $7.4 million. This standby letter of credit expired on December 31, 2020 and the corresponding cash collateral was released in January 2021. As of December 25, 2020 and June 26, 2020, there were outstanding bank guarantees given by a bank on behalf of our subsidiary in Thailand for electricity usage and other normal business expenses totaling to $1.7 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 U.K. to support their operations. As of December 25, 2020, the Company had an outstanding bank guarantee of its subsidiary in China to support the subsidiary's operations of Renmibi 1.0 million. The bank guarantee was backed by cash collateral of $0.2 million. As of June 26, 2020, these bank guarantees were not material. Purchase obligations Purchase obligations represent legally-binding commitments to purchase inventory and other commitments made in the normal course of business to meet operational requirements. Although open purchase orders are considered enforceable and legally binding, their terms generally give the Company the option to cancel, reschedule and/or adjust its requirements based on its business needs prior to the delivery of goods or performance of services. Obligations to purchase inventory and other commitments are generally expected to be fulfilled within one year. As of December 25, 2020, the Company had an outstanding commitment to third parties of $515.5 million. Capital expenditure In December 2020, the Company entered into a construction contract with a local contractor for construction of a new manufacturing building at the Company’s Chonburi campus. The contract price is approximately $50.3 million. As of December 25, 2020, the Company had an outstanding commitment to third parties of $10.1 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 | 6 Months Ended |
Dec. 25, 2020 | |
Segment Reporting [Abstract] | |
Business segments and geographic information | Business segments and geographic information Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is Fabrinet’s Chief Executive Officer. As of December 25, 2020, the Company operated and internally managed a single operating segment. Accordingly, the Company does not accumulate discrete information with respect to separate product lines and does not have separate reportable segments. For the Company’s revenues by geographic region, see “Revenue by Geographic Area and End Market” in Note 3. As of December 25, 2020 and December 27, 2019, the Company had approximately $28.6 million and $30.0 million, respectively, of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific and Europe. Significant customers The Company had four and three customers, respectively, that each contributed to 10% or more of its total trade accounts receivable as of December 25, 2020 and June 26, 2020. |
Accounting policies (Policies)
Accounting policies (Policies) | 6 Months Ended |
Dec. 25, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of December 25, 2020 and for the three and six months ended December 25, 2020 and December 27, 2019 includes normal recurring adjustments necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 26, 2020. The balance sheet as of June 26, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and six months ended December 25, 2020 may not be indicative of results for the year ending June 25, 2021 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, allowance for expected credit losses, 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 different from actual results, adjustments will be made in subsequent periods to reflect more current information. Additionally, the extent to which the evolving COVID-19 pandemic impacts the Company’s unaudited condensed consolidated financial statements will depend on a number of factors, including the magnitude and duration of the pandemic. These estimates may change, as new events occur and additional information is obtained, as well as other factors related to the COVID-19 pandemic that could result in material impacts to the Company's unaudited condensed consolidated financial statements in future reporting periods. |
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 December 25, 2020 and December 27, 2019 each consisted of 13 weeks. The six months ended December 25, 2020 and December 27, 2019 each consisted of 26 weeks. Fiscal year 2021 will be comprised of 52 weeks and will end on June 25, 2021. |
Reclassifications | Reclassifications For presentation purposes, certain prior period amounts have been reclassified to conform to the current period presentation. As of June 26, 2020, the derivative assets and liabilities were measured at fair value and recognized by offsetting the fair value amounts under master netting arrangements. Also, the Company chose not to separate a derivative into current and non-current portions as follows: (i) A derivative for which the fair value is a net liability is classified in total as current. (ii) A derivative for which the fair value is a net asset and the current portion is an asset is classified in total as non-current. If the current portion is a liability, it is presented as a current liability. As of December 25, 2020, the derivative assets and liabilities were measured at fair value, but the gross fair value amount is presented in the unaudited condensed consolidated balance sheets. Additionally, a classification of current and non-current portion is determined by the maturity date of that derivative (e.g., a derivative that matures within one year is classified as current). The reclassifications have been made to the consolidated balance sheet as of June 26, 2020 as shown in the following table: June 26, 2020 (amount in thousands) As previously Reclassification After Consolidated Balance Sheet Current assets Other current assets $ 13,915 $ 593 $ 14,508 Current liabilities Accrued expenses $ 12,104 $ (3,125) $ 8,979 Non-current liabilities Other non-current liabilities $ 1,937 $ 3,718 $ 5,655 |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments—Credit Losses On June 27, 2020, the Company adopted Accounting Standards Codification (“ASC”) 326 using the modified retrospective transition approach. The modified retrospective method requires the Company to recognize the cumulative effect of the adoption of ASC 326, to the opening accumulated retained earnings. Accordingly, the Company’s comparative financial statements as of June 26, 2020 have not been adjusted. The Company implemented internal controls to enable the preparation of financial information upon adoption. Management estimates the expected credit losses of financial assets using relevant available information from internal and external sources relating to historical credit loss experience, current conditions and reasonable forecasts over a financial asset’s contractual term. Adjustments to historical loss information are made from qualitative and quantitative factors if economic conditions on the reporting date reflect stronger or weaker economic performance than the historical data implies based on management’s expectations of economic conditions on certain indicators of the Company, industry and economy. The Company reviews factors such as past collection experience, age of the accounts receivable and contract assets balance, significant trends in current balances, internal operations and macroeconomic conditions. In addition, the Company modified its impairment model to the Current Expected Credit Losses (“CECL”) model for available-for-sale (“AFS”) debt securities and discontinued using the concept of “other than temporary” impairment on these AFS debt securities. CECL on the AFS debt securities are recognized in interest income and other income (expense), net on the Company’s unaudited condensed consolidated statements of operations and comprehensive income, and any remaining unrealized losses, are included in accumulated other comprehensive income (loss) (“AOCI”) in the unaudited condensed consolidated balance sheet. As of June 27, 2020, the Company recorded a cumulative adjustment from CECL in the amount of $0.1 million, net of tax impact, to accumulated retained earnings in the unaudited condensed consolidated balance sheet. On June 27, 2020, the Company also adopted ASC 820, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This standard is intended to improve the effectiveness of disclosures in the notes to the financial statements, including (1) the development of a framework that promotes consistent decisions by the FASB about disclosure requirements and (2) the appropriate exercise of discretion by reporting entities. The amendment modifies the disclosure requirements on transferring between level 1 and level 2 and valuation processes of level 3 fair value measurements. The Company adopted this standard with no impact on its unaudited condensed consolidated financial statements. |
Changes in Accounting Policies | Changes in Accounting Policies Except for the adoption of ASC 326, the Company has consistently applied the accounting policies to all periods presented in these unaudited condensed consolidated financial statements. |
Short-term investments | Short-term investments 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 the Company’s 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 and six months to three years. The Company’s short-term investments, which consist of investments in U.S. Treasury, fixed income securities, liquidity funds that invest in short-term debt securities and certificates of deposit and time deposits, have been classified and accounted for as AFS. The AFS investments are carried at estimated fair value with any unrealized gains and losses, included in AOCI in the Company’s unaudited condensed consolidated balance sheet. The Company determines realized gains or losses on sale of marketable securities on a specific identification method and records such gains or losses as interest income and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive income. AFS debt securities are required to be individually evaluated for impairment. A security is considered impaired if the fair value of the security is less than its amortized cost basis. An impairment is considered other than temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security. If an impairment is considered other than temporary based on condition (i) or (ii), the entire difference between the amortized cost and the fair value of the debt security is recognized as interest income and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive income. If an impairment is considered other than temporary based on condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security) is recognized in interest and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive income, and any remaining unrealized losses are included in AOCI in the unaudited condensed consolidated balance sheet. |
Trade accounts receivable | Trade accounts receivable Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates of expected credit losses for the allowance for doubtful accounts based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. The estimated credit loss allowance is recorded as selling, general and administrative expenses in the unaudited condensed consolidated statements of operations and comprehensive income. |
Contract assets | Contract assets A contract asset is recognized when the Company has recognized revenues prior to generating an invoice for payment. Contract assets are classified separately within the unaudited condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. The Company makes estimates of expected credit losses for the allowance for contract assets based upon its assessment of various factors, including historical experience, the age of the contract assets balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. The estimated credit loss allowance is recorded as selling, general and administrative expenses in its unaudited condensed consolidated statements of operations and comprehensive income. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, short-term investments, derivatives, accounts receivable and contract assets. Cash, cash equivalents and short-term investments are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate its credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. The Company limits its short-term investments in marketable securities to securities with a maturity not in excess of three years and securities that are rated A1, P-1, F1, or better. 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 December 2019, the FASB issued ASU2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. This ASU will be effective for the Company in the first quarter of fiscal year 2022. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its unaudited condensed consolidated financial statements. |
Accounting policies (Tables)
Accounting policies (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Accounting Policies [Abstract] | |
Summary of Reclassifications of Consolidated Balance Sheet and Consolidated Statement of Cash Flows | The reclassifications have been made to the consolidated balance sheet as of June 26, 2020 as shown in the following table: June 26, 2020 (amount in thousands) As previously Reclassification After Consolidated Balance Sheet Current assets Other current assets $ 13,915 $ 593 $ 14,508 Current liabilities Accrued expenses $ 12,104 $ (3,125) $ 8,979 Non-current liabilities Other non-current liabilities $ 1,937 $ 3,718 $ 5,655 |
Revenues from contracts with _2
Revenues from contracts with customers (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Geographical Regions | The following table presents total revenues by geographic region: (amount in thousands, except percentages) Three Months Ended As a % of Total Six Months Ended As a % of Total North America $ 224,672 49.5 % $ 432,074 48.5 % Asia-Pacific 153,734 33.9 299,380 33.6 Europe 75,421 16.6 159,012 17.9 $ 453,827 100.0 % $ 890,466 100.0 % (amount in thousands, except percentages) Three Months Ended As a % of Total Six Months Ended As a % of Total North America $ 223,398 52.4 % $ 424,345 51.4 % Asia-Pacific 141,147 33.1 259,570 31.4 Europe 61,672 14.5 141,598 17.2 $ 426,217 100.0 % $ 825,513 100.0 % |
Revenues by End Market | The following table presents revenues by end market. (amount in thousands, except percentages) Three Months Ended As a % of Total Six Months Ended As a % of Total Optical communications $ 347,840 76.6 % $ 691,757 77.7 % Lasers, sensors and other 105,987 23.4 198,709 22.3 Total $ 453,827 100.0 % $ 890,466 100.0 % (amount in thousands, except percentages) Three Months Ended As a % of Total Six Months Ended As a % of Total Optical communications $ 322,068 75.6 % $ 624,447 75.6 % Lasers, sensors and other 104,149 24.4 201,066 24.4 Total $ 426,217 100.0 % $ 825,513 100.0 % |
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 six months ended December 25, 2020: (amount in thousands) Contract Beginning balance, June 26, 2020 $ 13,256 Revenue recognized 35,464 Amounts collected or invoiced (32,497) Ending balance, December 25, 2020 $ 16,223 (amount in thousands) Contract Beginning balance, June 26, 2020 $ 1,556 Additions advance payment received during the period 14,597 Revenue recognized (14,349) Ending balance, December 25, 2020 $ 1,804 |
Earnings per ordinary share (Ta
Earnings per ordinary share (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Ordinary Share | Earnings per ordinary share was calculated as follows: Three Months Ended Six Months Ended (amount in thousands except per share amounts) December 25, December 27, December 25, December 27, Net income attributable to shareholders $ 35,384 $ 31,231 $ 68,435 $ 57,188 Weighted-average number of ordinary shares outstanding (thousands of shares) 36,936 37,011 36,877 36,962 Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares) 615 752 590 684 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,551 37,763 37,467 37,646 Basic earnings per ordinary share $ 0.96 $ 0.84 $ 1.86 $ 1.55 Diluted earnings per ordinary share $ 0.94 $ 0.83 $ 1.83 $ 1.52 Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1) 91 50 91 50 (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. |
Cash, cash equivalents and sh_2
Cash, cash equivalents and short-term investments (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Short-Term Investments | The Company’s cash, cash equivalents, and short-term investments are as follows: Fair Value (amount in thousands) Carrying Unrealized Cash and Marketable Other As of December 25, 2020 Cash $ 211,314 $ — $ 211,314 $ — $ — Cash equivalents 7,907 — 7,907 — — Liquidity funds 41,245 — — — 41,245 Certificates of deposit and time deposits 20,500 — — — 20,500 Corporate debt securities 159,485 790 — 160,275 — U.S. agency and U.S. treasury securities 39,462 335 — 39,797 — Total $ 479,913 $ 1,125 $ 219,221 $ 200,072 $ 61,745 As of June 26, 2020 Cash $ 218,117 $ — $ 218,117 $ — $ — Cash equivalents 7,313 — 7,313 — — Liquidity funds 41,051 — — — 41,051 Certificates of deposit and time deposits 11,800 — — — 11,800 Corporate debt securities 159,220 948 — 160,168 — U.S. agency and U.S. treasury securities 49,130 544 — 49,674 — Total $ 486,631 $ 1,492 $ 225,430 $ 209,842 $ 52,851 |
Available-for-Sale Securities Based on Stated Effective Maturities | The following table summarizes the cost and estimated fair value of short-term investments classified as available-for-sale securities based on stated effective maturities as of December 25, 2020 and June 26, 2020: December 25, 2020 June 26, 2020 (amount in thousands) Carrying Fair Value Carrying Fair Value Due within one year $ 82,493 $ 82,508 $ 76,127 $ 76,196 Due between one to five years 116,454 117,564 132,223 133,646 Total $ 198,947 $ 200,072 $ 208,350 $ 209,842 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Fair Value Disclosures [Abstract] | |
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 December 25, 2020 Assets Cash equivalents $ — $ 7,907 $ — $ 7,907 Liquidity funds — 41,245 — 41,245 Certificates of deposit and time deposits — 20,500 — 20,500 Corporate debt securities — 160,275 — 160,275 U.S. agency and U.S. treasury securities — 39,797 — 39,797 Derivative assets – current portion — 3,071 (1) — 3,071 Total $ — $ 272,795 $ — $ 272,795 Liabilities Derivative liabilities – current portion $ — $ 1,676 $ — $ 1,676 Derivative liabilities – non-current portion — 2,894 — 2,894 Total $ — $ 4,570 (2) $ — $ 4,570 Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of June 26, 2020 Assets Cash equivalents $ — $ 7,313 $ — $ 7,313 Liquidity funds — 41,051 — 41,051 Certificates of deposit and time deposits — 11,800 — 11,800 Corporate debt securities — 160,168 — 160,168 U.S. agency and U.S. treasury securities — 49,674 — 49,674 Derivative assets — 2,823 (3) — 2,823 Total $ — $ 272,829 $ — $ 272,829 Liabilities Derivative liabilities – current portion $ — $ 2,148 $ — $ 2,148 Derivative liabilities – non-current portion — 3,718 — 3,718 Total $ — $ 5,866 (4) $ — $ 5,866 (1) Foreign currency forward contracts with a notional amount of $130.0 million and Canadian dollars of 0.6 million. (2) Two interest rate swap agreements with an aggregate notional amount of $125.1 million. (3) Foreign currency forward contracts with a notional amount of $125.0 million and Canadian dollars of 0.6 million, and option contract with a notional amount of $1.0 million. (4) Two interest rate swap agreements with an aggregate notional amount of $125.1 million. |
Schedule Impacts of Derivative Gain (Loss) of Cash Flow Hedges | The following table provides a summary of the impact of derivative gain (loss) of the Company’s foreign currency forward contracts and interest rate swaps which were designated as cash flow hedges on the unaudited condensed consolidated statements of operations and other comprehensive income: Three Months Ended Six Months Ended (amount in thousands) Financial December 25, December 27, December 25, December 27, Derivatives gain (loss) Foreign currency forward contracts Other $ 3,149 $ — $ 809 $ — Interest rate swaps Other 386 243 743 282 Total derivatives gain (loss) recognized in other comprehensive income (loss) $ 3,535 $ 243 $ 1,552 $ 282 Derivatives loss (gain) reclassified from accumulated other comprehensive income (loss) into earnings: Foreign currency forward contracts Cost of revenues $ 337 $ — $ (1,720) $ — Foreign currency forward contracts SG&A 14 — (73) — Foreign currency forward contracts Foreign exchange loss, net (1,165) — 113 — Interest rate swaps Interest expense (336) (432) (695) (432) Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings $ (1,150) $ (432) $ (2,375) $ (432) Change in net unrealized gain (loss) on derivatives instruments $ 2,385 $ (189) $ (823) $ (150) |
Schedule of Derivative Financial Instruments | The following table provides the fair values of the Company’s derivative financial instruments for the periods presented: December 25, June 26, (amount in thousands) Derivative Derivative Derivative Derivative Derivatives not designated as hedging instruments Foreign currency forward and option contracts $ 1,095 $ — $ 9 $ (611) Interest rate swaps — — — — Derivatives designated as hedging instruments Foreign currency forward contracts 1,976 (140) 2,814 (83) Interest rate swaps — (4,430) — (5,172) Derivatives, gross balances $ 3,071 $ (4,570) $ 2,823 $ (5,866) |
Derivative Financial Instruments in the Unaudited Condensed Consolidated Balance Sheets | The Company recorded the fair value of derivative financial instruments in the unaudited condensed consolidated balance sheets as follows: Derivative Financial Instruments Balance Sheet line item Fair Value of Derivative Assets Other current assets Fair Value of Derivative Liabilities Accrued expenses Fair Value of Derivative Liabilities Other non-current liabilities |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | (amount in thousands) As of December 25, As of June 26, Raw materials $ 143,230 $ 141,522 Work in progress 177,881 136,344 Finished goods 30,194 17,950 Goods in transit 20,691 13,970 Inventories $ 371,996 $ 309,786 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | As of December 25, 2020, the maturities of the Company’s operating lease liabilities were as follows: (amount in thousands) As of December 25, 2021 (remaining six months) $ 1,285 2022 2,568 2023 2,448 2024 1,088 2025 30 Total undiscounted lease payments 7,419 Less imputed interest (405) Total present value of lease liabilities $ 7,014 (1) (1) Included current portion of operating lease liabilities for the period ended December 25, 2020. |
Summary of Additional Information Related to Operating and Finance Lease | The following summarizes additional information related to the Company’s operating leases: As of December 25, 2020 As of June 26, 2020 Weighted-average remaining lease term (in years) 3.1 3.3 Weighted-average discount rate 3.7 % 3.7 % |
Schedule of Supplemental Cash Flow and Other Information Related to Leases | The following table presents supplemental disclosure for the unaudited condensed consolidated statement of cash flows related to operating and finance leases for the three and six months ended December 25, 2020 and December 27, 2019: Three Months Ended Six Months Ended (amount in thousands) December 25, December 27, December 25, December 27, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 667 $ 566 $ 1,261 $ 1,024 Financing cash flows from finance leases $ — $ 80 $ 100 $ 189 ROU assets obtained in exchange for lease liabilities $ 43 $ 1,373 $ 7,271 $ 7,558 |
Intangibles (Tables)
Intangibles (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | The following tables present details of the Company’s intangibles: (amount in thousands) Gross Accumulated Foreign Net As of December 25, 2020 Software $ 9,018 $ (6,100) $ — $ 2,918 Customer relationships 4,373 (2,954) 30 1,449 Backlog 119 (119) — — Total intangibles $ 13,510 $ (9,173) $ 30 $ 4,367 (amount in thousands) Gross Accumulated Foreign Net As of June 26, 2020 Software $ 8,317 $ (5,577) $ — $ 2,740 Customer relationships 4,373 (2,691) (110) 1,572 Backlog 119 (119) — — Total intangibles $ 12,809 $ (8,387) $ (110) $ 4,312 |
Weighted-Average Remaining Life of Intangible Assets | The weighted-average remaining life of customer relationships was: (years) As of December 25, 2020 As of June 26, 2020 Customer relationships 4.3 4.6 |
Estimated Future Amortization of intangibles | Based on the carrying amount of intangibles as of December 25, 2020, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2021 (remaining six months) $ 312 2022 1,215 2023 1,208 2024 924 2025 488 Thereafter 220 Total $ 4,367 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Debt Disclosure [Abstract] | |
Total Borrowings, Including Revolving and Long-Term Borrowings | The Company’s total borrowings, including current and non-current portions of long-term borrowings, consisted of the following: (amount in thousands) Rate Conditions Maturity As of December 25, 2020 As of June 26, 2020 Long-term borrowings, current portion, net: Long-term borrowings, current portion $ 12,188 $ 12,188 Less: Unamortized debt issuance costs – current portion (32) (32) Long-term borrowings, current portion, net $ 12,156 $ 12,156 Long-term borrowings, non-current portion, net: Term loan borrowings: 3-month LIBOR +1.35% per annum (1) Repayable in June 2024 $ 45,703 $ 51,797 Less: Current portion (12,188) (12,188) Less: Unamortized debt issuance costs – non-current portion (79) (95) Long-term borrowings, non-current portion, net $ 33,436 $ 39,514 (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 six months ended December 25, 2020 and December 27, 2019 were as follows: Six Months Ended (amount in thousands) December 25, December 27, Opening balance $ 51,797 $ 60,938 Borrowings during the period — 60,938 Repayments during the period (6,094) (63,985) Closing balance $ 45,703 $ 57,891 |
Future Maturities of Long-Term Debt | As of December 25, 2020, future maturities of long-term borrowings during each fiscal year were as follows: (amount in thousands) 2021 (remaining six months) $ 9,141 2022 12,187 2023 12,187 2024 12,188 Total $ 45,703 |
Share-based compensation (Table
Share-based compensation (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Effect of Recording Share-Based Compensation Expense | The effect of recording share-based compensation expense for the three and six months ended December 25, 2020 and December 27, 2019 was as follows: Three Months Ended Six Months Ended (amount in thousands) December 25, December 27, December 25, December 27, Share-based compensation expense by type of award: Restricted share units $ 4,175 $ 4,186 $ 9,424 $ 8,584 Performance share units 1,676 2,002 2,454 3,599 Total share-based compensation expense 5,851 6,188 11,878 12,183 Tax effect on share-based compensation expense — — — — Net effect on share-based compensation expense $ 5,851 $ 6,188 $ 11,878 $ 12,183 |
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 Six Months Ended (amount in thousands) December 25, December 27, December 25, December 27, Cost of revenue $ 1,592 $ 1,591 $ 3,417 $ 3,311 Selling, general and administrative expense 4,259 4,597 8,461 8,872 Total share-based compensation expense $ 5,851 $ 6,188 $ 11,878 $ 12,183 |
Restricted Share Unit Activity | The following table summarizes restricted share unit activity under the Equity Incentive Plans: Number Weighted- Balance as of June 26, 2020 797,757 $ 46.88 Granted 216,776 $ 69.48 Issued (292,874) $ 43.75 Forfeited (13,997) $ 54.23 Balance as of December 25, 2020 707,662 $ 54.95 Number Weighted- Balance as of June 28, 2019 800,751 $ 42.48 Granted 331,900 $ 49.78 Issued (264,275) $ 39.60 Forfeited (23,855) $ 42.09 Balance as of December 27, 2019 844,521 $ 46.26 |
Performance Share Unit Activity | The following table summarizes performance share unit activity under the Equity Incentive Plans: Number Weighted- Balance as of June 26, 2020 440,140 $ 48.37 Granted 184,718 $ 69.85 Issued (82,185) $ 48.02 Forfeited (115,645) $ 48.02 Balance as of December 25, 2020 427,028 $ 57.82 Number Weighted- Balance as of June 28, 2019 548,500 $ 40.97 Granted 238,474 $ 48.39 Issued — — Forfeited (350,670) $ 36.99 Balance as of December 27, 2019 436,304 $ 48.22 |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 6 Months Ended |
Dec. 25, 2020 | |
Equity [Abstract] | |
Changes in AOCI, Net of Tax | The changes in AOCI for the six months ended December 25, 2020 and December 27, 2019 were as follows: (amount in thousands) Unrealized net Unrealized net Retirement Foreign Total Balance as of June 26, 2020 $ 1,490 $ 602 $ (2,009) $ (1,230) $ (1,147) Other comprehensive income before reclassification adjustment (289) 1,552 — 457 1,720 Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income (78) (2,375) 223 — (2,230) Tax effects — — — — — Other comprehensive income (loss) $ (367) $ (823) $ 223 $ 457 $ (510) Balance as of December 25, 2020 $ 1,123 $ (221) $ (1,786) $ (773) $ (1,657) (amount in thousands) Unrealized net Unrealized net Retirement Foreign Total Balance as of June 28, 2019 $ 952 $ 32 $ (2,537) $ (833) $ (2,386) Other comprehensive income before reclassification adjustment (126) (150) 184 247 155 Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income 79 — — — 79 Tax effects — — — — — Other comprehensive income (loss) $ (47) $ (150) $ 184 $ 247 $ 234 Balance as of December 27, 2019 $ 905 $ (118) $ (2,353) $ (586) $ (2,152) |
Accounting policies - Summary o
Accounting policies - Summary of Reclassifications of Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 25, 2020 | Jun. 26, 2020 |
Current assets | ||
Other current assets | $ 29,187 | $ 14,508 |
Current liabilities | ||
Accrued expenses | 14,504 | 8,979 |
Non-current liabilities | ||
Other non-current liabilities | $ 4,156 | 5,655 |
As previously reported | ||
Current assets | ||
Other current assets | 13,915 | |
Current liabilities | ||
Accrued expenses | 12,104 | |
Non-current liabilities | ||
Other non-current liabilities | 1,937 | |
Reclassification | ||
Current assets | ||
Other current assets | 593 | |
Current liabilities | ||
Accrued expenses | (3,125) | |
Non-current liabilities | ||
Other non-current liabilities | $ 3,718 |
Accounting policies - Additiona
Accounting policies - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Dec. 25, 2020 | Sep. 25, 2020 | Jun. 27, 2020 | Jun. 26, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | |
Accounting Policies [Line Items] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Cumulative adjustment on retained earnings | $ 1,036,670 | $ 1,000,703 | $ 974,409 | $ 928,327 | $ 890,695 | $ 863,099 | |
Retained Earnings | |||||||
Accounting Policies [Line Items] | |||||||
Cumulative adjustment on retained earnings | $ 936,390 | $ 901,006 | 868,062 | $ 811,771 | $ 780,540 | $ 754,583 | |
Cumulative effect adjustment from adoption of ASC 326 | |||||||
Accounting Policies [Line Items] | |||||||
Cumulative adjustment on retained earnings | $ (107) | ||||||
Cumulative effect adjustment from adoption of ASC 326 | Retained Earnings | |||||||
Accounting Policies [Line Items] | |||||||
Cumulative adjustment on retained earnings | $ 100 |
Revenues from contracts with _3
Revenues from contracts with customers - Disaggregation of revenue by geographical regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 453,827 | $ 426,217 | $ 890,466 | $ 825,513 |
Geographic concentration risk | Revenue from contract with customer benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 224,672 | $ 223,398 | $ 432,074 | $ 424,345 |
North America | Geographic concentration risk | Revenue from contract with customer benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues, percentage | 49.50% | 52.40% | 48.50% | 51.40% |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 153,734 | $ 141,147 | $ 299,380 | $ 259,570 |
Asia-Pacific | Geographic concentration risk | Revenue from contract with customer benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues, percentage | 33.90% | 33.10% | 33.60% | 31.40% |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 75,421 | $ 61,672 | $ 159,012 | $ 141,598 |
Europe | Geographic concentration risk | Revenue from contract with customer benchmark | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues, percentage | 16.60% | 14.50% | 17.90% | 17.20% |
Revenues from contracts with _4
Revenues from contracts with customers - Revenues by end market (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 453,827 | $ 426,217 | $ 890,466 | $ 825,513 |
Revenue from contract with customer benchmark | Geographic concentration risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Optical communications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 347,840 | $ 322,068 | $ 691,757 | $ 624,447 |
Optical communications | Revenue from contract with customer benchmark | Geographic concentration risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues, percentage | 76.60% | 75.60% | 77.70% | 75.60% |
Lasers, sensors and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 105,987 | $ 104,149 | $ 198,709 | $ 201,066 |
Lasers, sensors and other | Revenue from contract with customer benchmark | Geographic concentration risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues, percentage | 23.40% | 24.40% | 22.30% | 24.40% |
Revenues from contracts with _5
Revenues from contracts with customers - Schedule of activity in the company's contract assets and contract liabilities (Detail) $ in Thousands | 6 Months Ended |
Dec. 25, 2020USD ($) | |
Contract Assets | |
Beginning balance, June 26, 2020 | $ 13,256 |
Revenue recognized | 35,464 |
Amounts collected or invoiced | (32,497) |
Ending balance, December 25, 2020 | 16,223 |
Beginning balance, June 26, 2020 | |
Beginning balance, June 26, 2020 | 1,556 |
Additions advance payment received during the period | 14,597 |
Revenue recognized | (14,349) |
Ending balance, December 25, 2020 | $ 1,804 |
Earnings Per Ordinary Share (De
Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to shareholders | $ 35,384 | $ 31,231 | $ 68,435 | $ 57,188 |
Weighted-average number of ordinary shares outstanding (thousands of shares) | 36,936 | 37,011 | 36,877 | 36,962 |
Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares) | 615 | 752 | 590 | 684 |
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) | 37,551 | 37,763 | 37,467 | 37,646 |
Basic earnings per share (in USD per share) | $ 0.96 | $ 0.84 | $ 1.86 | $ 1.55 |
Diluted earnings per share (in USD per share) | $ 0.94 | $ 0.83 | $ 1.83 | $ 1.52 |
Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) | 91 | 50 | 91 | 50 |
Cash, cash equivalents and sh_3
Cash, cash equivalents and short-term investments (Detail) - USD ($) $ in Thousands | Dec. 25, 2020 | Jun. 26, 2020 | Dec. 27, 2019 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents and marketable securities, carrying cost | $ 479,913 | $ 486,631 | |
Unrealized Gain/ (Loss) | 1,125 | 1,492 | |
Cash and cash equivalents | 219,221 | 225,430 | $ 220,031 |
Marketable Securities | 200,072 | 209,842 | |
Other Investments | 61,745 | 52,851 | |
Certificates of deposit and time deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Marketable securities, carrying cost | 20,500 | 11,800 | |
Other Investments | 20,500 | 11,800 | |
Cash | |||
Cash and Cash Equivalents [Line Items] | |||
Carrying Cost | 211,314 | 218,117 | |
Cash and cash equivalents | 211,314 | 218,117 | |
Cash equivalents | |||
Cash and Cash Equivalents [Line Items] | |||
Carrying Cost | 7,907 | 7,313 | |
Cash and cash equivalents | 7,907 | 7,313 | |
Liquidity funds | |||
Cash and Cash Equivalents [Line Items] | |||
Carrying Cost | 41,245 | 41,051 | |
Other Investments | 41,245 | 41,051 | |
Corporate debt securities | |||
Cash and Cash Equivalents [Line Items] | |||
Marketable securities, carrying cost | 159,485 | 159,220 | |
Unrealized Gain/ (Loss) | 790 | 948 | |
Marketable Securities | 160,275 | 160,168 | |
U.S. agency and U.S. treasury securities | |||
Cash and Cash Equivalents [Line Items] | |||
Marketable securities, carrying cost | 39,462 | 49,130 | |
Unrealized Gain/ (Loss) | 335 | 544 | |
Marketable Securities | $ 39,797 | $ 49,674 |
Cash, cash equivalents and sh_4
Cash, cash equivalents and short-term investments - Additional Information (Detail) | 3 Months Ended |
Dec. 25, 2020 | |
Minimum | |
Cash, cash equivalents and marketable securities [Line Items] | |
Maturities period of marketable securities | 3 months |
Maximum | |
Cash, cash equivalents and marketable securities [Line Items] | |
Maturities period of marketable securities | 3 years |
Available-for-Sale Securities B
Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands | Dec. 25, 2020 | Jun. 26, 2020 |
Investments Classified by Contractual Maturity Date [Line Items] | ||
Fair value, total | $ 200,072 | $ 209,842 |
Carrying Cost | ||
Investments Classified by Contractual Maturity Date [Line Items] | ||
Carrying cost, due within one year | 82,493 | 76,127 |
Carrying cost, due between one to five years | 116,454 | 132,223 |
Carrying cost, total | 198,947 | 208,350 |
Fair Value | ||
Investments Classified by Contractual Maturity Date [Line Items] | ||
Fair value, due within one year | 82,508 | 76,196 |
Fair value, due between one to five years | 117,564 | 133,646 |
Fair value, total | $ 200,072 | $ 209,842 |
Fair Value on Recurring Basis (
Fair Value on Recurring Basis (Detail) $ in Thousands, $ in Millions | Dec. 25, 2020USD ($) | Dec. 25, 2020CAD ($) | Jun. 26, 2020USD ($) | Jun. 26, 2020CAD ($) |
Foreign currency forward contracts | ||||
Liabilities | ||||
Derivative assets, notional amount | $ 130,000 | $ 0.6 | $ 125,000 | $ 0.6 |
Foreign currency option contracts | ||||
Liabilities | ||||
Derivative assets, notional amount | 1,000 | |||
Fair value, measurements, recurring | ||||
Assets | ||||
Derivative assets | 3,071 | 2,823 | ||
Total | 272,795 | 272,829 | ||
Liabilities | ||||
Derivative liabilities – current portion | 1,676 | 2,148 | ||
Derivative liabilities – non-current portion | 2,894 | 3,718 | ||
Total | 4,570 | 5,866 | ||
Fair value, measurements, recurring | Interest rate swaps | ||||
Liabilities | ||||
Derivative liabilities, notional amount | 125,100 | 125,100 | ||
Fair value, measurements, recurring | Certificates of deposit and time deposits | ||||
Assets | ||||
Marketable securities | 20,500 | 11,800 | ||
Fair value, measurements, recurring | Cash equivalents | ||||
Assets | ||||
Marketable securities | 7,907 | 7,313 | ||
Fair value, measurements, recurring | Liquidity funds | ||||
Assets | ||||
Marketable securities | 41,245 | 41,051 | ||
Fair value, measurements, recurring | Corporate debt securities | ||||
Assets | ||||
Marketable securities | 160,275 | 160,168 | ||
Fair value, measurements, recurring | U.S. agency and U.S. treasury securities | ||||
Assets | ||||
Marketable securities | 39,797 | 49,674 | ||
Level 1 | Fair value, measurements, recurring | ||||
Assets | ||||
Derivative assets | 0 | 0 | ||
Total | 0 | 0 | ||
Liabilities | ||||
Derivative liabilities – current portion | 0 | 0 | ||
Derivative liabilities – non-current portion | 0 | 0 | ||
Total | 0 | 0 | ||
Level 1 | Fair value, measurements, recurring | Certificates of deposit and time deposits | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Level 1 | Fair value, measurements, recurring | Cash equivalents | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Level 1 | Fair value, measurements, recurring | Liquidity funds | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Level 1 | Fair value, measurements, recurring | Corporate debt securities | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Level 1 | Fair value, measurements, recurring | U.S. agency and U.S. treasury securities | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Level 2 | Fair value, measurements, recurring | ||||
Assets | ||||
Derivative assets | 3,071 | 2,823 | ||
Total | 272,795 | 272,829 | ||
Liabilities | ||||
Derivative liabilities – current portion | 1,676 | 2,148 | ||
Derivative liabilities – non-current portion | 2,894 | 3,718 | ||
Total | 4,570 | 5,866 | ||
Level 2 | Fair value, measurements, recurring | Certificates of deposit and time deposits | ||||
Assets | ||||
Marketable securities | 20,500 | 11,800 | ||
Level 2 | Fair value, measurements, recurring | Cash equivalents | ||||
Assets | ||||
Marketable securities | 7,907 | 7,313 | ||
Level 2 | Fair value, measurements, recurring | Liquidity funds | ||||
Assets | ||||
Marketable securities | 41,245 | 41,051 | ||
Level 2 | Fair value, measurements, recurring | Corporate debt securities | ||||
Assets | ||||
Marketable securities | 160,275 | 160,168 | ||
Level 2 | Fair value, measurements, recurring | U.S. agency and U.S. treasury securities | ||||
Assets | ||||
Marketable securities | 39,797 | 49,674 | ||
Level 3 | Fair value, measurements, recurring | ||||
Assets | ||||
Derivative assets | 0 | 0 | ||
Total | 0 | 0 | ||
Liabilities | ||||
Derivative liabilities – current portion | 0 | 0 | ||
Derivative liabilities – non-current portion | 0 | 0 | ||
Total | 0 | 0 | ||
Level 3 | Fair value, measurements, recurring | Certificates of deposit and time deposits | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Level 3 | Fair value, measurements, recurring | Cash equivalents | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Level 3 | Fair value, measurements, recurring | Liquidity funds | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Level 3 | Fair value, measurements, recurring | Corporate debt securities | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Level 3 | Fair value, measurements, recurring | U.S. agency and U.S. treasury securities | ||||
Assets | ||||
Marketable securities | $ 0 | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Dec. 25, 2020USD ($)Contract | Dec. 27, 2019USD ($) | Dec. 25, 2020USD ($)Contract | Dec. 27, 2019USD ($) | Dec. 25, 2020CAD ($)Contract | Jun. 26, 2020USD ($)Contract | Jun. 26, 2020CAD ($)Contract | Sep. 03, 2019 | Jul. 25, 2018 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||||
Derivative, Fixed Interest Rate | 2.86% | ||||||||
Foreign currency forward contracts | |||||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||||
Derivative assets, notional amount | $ 130 | $ 130 | $ 0.6 | $ 125 | $ 0.6 | ||||
Gains or losses from accumulated other comprehensive income expected to be reclassified | 1.8 | ||||||||
Unrealized gain (loss) on derivatives | $ 1.8 | $ (1.9) | $ 0.3 | ||||||
Foreign currency forward contracts | Designated as hedging instrument | Thailand, baht | |||||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||||
Number of forward contracts outstanding | Contract | 130 | 130 | 130 | 125,000 | 125,000 | ||||
Derivative notional amount | $ 130 | $ 130 | |||||||
Foreign currency forward contracts | Designated as hedging instrument | Canada, dollars | |||||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||||
Derivative notional amount | $ 0.6 | $ 0.6 | |||||||
Interest rate swaps | |||||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||||
Number of forward contracts outstanding | Contract | 2 | 2 | 2 | 2 | 2 | ||||
Derivative notional amount | $ 125.1 | $ 125.1 | $ 125.1 | ||||||
Gains or losses from accumulated other comprehensive income expected to be reclassified | $ 0.6 | ||||||||
Interest rate swaps | Bank of Ayudhya Public Company | Bank of America Credit Facility | |||||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||||
Long term Debt Fixed Interest Percentage | 4.36% | ||||||||
Interest rate swaps | Non designated | |||||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||||
Unrealized gain (loss) on derivatives | $ 1.7 | $ 1.7 | |||||||
Foreign currency option contracts | |||||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||||
Derivative assets, notional amount | $ 1 |
Fair Value - Schedule Impacts o
Fair Value - Schedule Impacts of Derivative Gain (Loss) of Cash Flow Hedges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings: | ||||
Total derivatives gain (loss) recognized in other comprehensive income (loss) | $ 3,535 | $ 243 | $ 1,552 | $ 282 |
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings | (1,150) | (432) | (2,375) | (432) |
Change in net unrealized gain (loss) on derivatives instruments | 2,385 | (189) | (823) | (150) |
Foreign currency forward contracts | ||||
Derivatives gain (loss) recognized in other comprehensive income: | ||||
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings | 1,800 | (1,900) | 300 | |
Foreign currency forward contracts | Other comprehensive income (loss) | ||||
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings: | ||||
Total derivatives gain (loss) recognized in other comprehensive income (loss) | 3,149 | 0 | 809 | 0 |
Foreign currency forward contracts | Cost of revenues | ||||
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings: | ||||
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings | 337 | 0 | (1,720) | 0 |
Foreign currency forward contracts | SG&A | ||||
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings: | ||||
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings | 14 | 0 | (73) | 0 |
Foreign currency forward contracts | Foreign exchange loss, net | ||||
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings: | ||||
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings | (1,165) | 0 | 113 | 0 |
Interest rate swaps | Other comprehensive income (loss) | ||||
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings: | ||||
Total derivatives gain (loss) recognized in other comprehensive income (loss) | 386 | 243 | 743 | 282 |
Interest rate swaps | Interest expense | ||||
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings: | ||||
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings | $ (336) | $ (432) | $ (695) | $ (432) |
Fair Value - Schedule of Deriva
Fair Value - Schedule of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 25, 2020 | Jun. 26, 2020 |
Derivatives designates as hedging instruments: | ||
Derivative assets, gross balances | $ 3,071 | $ 2,823 |
Derivative liabilities, gross balances | (4,570) | (5,866) |
Foreign currency forward and option contracts | ||
Derivatives not designated as hedging instruments | ||
Derivative Assets | 1,095 | 9 |
Derivative Liabilities | 0 | (611) |
Interest rate swaps | ||
Derivatives not designated as hedging instruments | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Derivatives designates as hedging instruments: | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | (4,430) | (5,172) |
Foreign currency forward contracts | ||
Derivatives designates as hedging instruments: | ||
Derivative Assets | 1,976 | 2,814 |
Derivative Liabilities | $ (140) | $ (83) |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 25, 2020 | Jun. 26, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 143,230 | $ 141,522 |
Work in progress | 177,881 | 136,344 |
Finished goods | 30,194 | 17,950 |
Goods in transit | 20,691 | 13,970 |
Inventories | $ 371,996 | $ 309,786 |
Other receivable - Additional I
Other receivable - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 25, 2020 | Jun. 26, 2020 | Oct. 01, 2019 | |
Receivables [Abstract] | |||
Other receivable | $ 24,310 | $ 24,310 | $ 24,300 |
Other receivable provided to customer | $ 24,300 |
Restricted cash - Additional In
Restricted cash - Additional Information (Detail) $ in Thousands, € in Millions, ¥ in Millions | Dec. 25, 2020USD ($) | Dec. 25, 2020CNY (¥) | Dec. 25, 2020EUR (€) | Jun. 26, 2020USD ($) | Jun. 26, 2020EUR (€) |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Outstanding letter of credit amount | € | € 6 | € 6 | |||
Long-term restricted cash | $ 153 | $ 0 | |||
China | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Long-term restricted cash | ¥ | ¥ 1 | ||||
Standby letters of credit | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Amount of cash collateral | 7,400 | $ 7,400 | |||
Bank guarantees | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Amount of cash collateral | $ 200 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Operating lease rental expense | $ 0.6 | $ 0.5 | $ 1.2 | $ 1 |
Operating lease rental expense short term | $ 0.1 | $ 0.2 | ||
Minimum | ||||
Lessee operating lease option to extend term | 1 year | |||
Maximum | ||||
Operating lease expiration year | 2025 | |||
Lessee operating lease option to extend term | 5 years |
Leases - Schedule Of Operating
Leases - Schedule Of Operating Lease Liabilities (Detail) $ in Thousands | Dec. 25, 2020USD ($) |
Leases [Abstract] | |
2021 (remaining six months) | $ 1,285 |
2022 | 2,568 |
2023 | 2,448 |
2024 | 1,088 |
2025 | 30 |
Total undiscounted lease payments | 7,419 |
Less imputed interest | (405) |
Total present value of lease liabilities | $ 7,014 |
Leases - Summary Of Additional
Leases - Summary Of Additional Information Related To Operating And Finance Lease (Detail) | Dec. 25, 2020 | Jun. 26, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 3 years 1 month 6 days | 3 years 3 months 18 days |
Weighted-average discount rate | 3.70% | 3.70% |
Leases - Schedule Of Supplement
Leases - Schedule Of Supplemental Cash Flow Information Related To Operating Lease (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating cash flows from operating leases | $ 667 | $ 566 | $ 1,261 | $ 1,024 |
Financing cash flows from finance leases | 0 | 80 | 100 | 189 |
ROU assets obtained in exchange for lease liabilities | $ 43 | $ 1,373 | $ 7,271 | $ 7,558 |
Intangibles (Detail)
Intangibles (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 25, 2020 | Jun. 26, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 13,510 | $ 12,809 |
Accumulated Amortization | (9,173) | (8,387) |
Foreign Currency Translation Adjustment | 30 | (110) |
Net | 4,367 | 4,312 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,018 | 8,317 |
Accumulated Amortization | (6,100) | (5,577) |
Net | 2,918 | 2,740 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,373 | 4,373 |
Accumulated Amortization | (2,954) | (2,691) |
Foreign Currency Translation Adjustment | 30 | (110) |
Net | 1,449 | 1,572 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 119 | 119 |
Accumulated Amortization | $ (119) | $ (119) |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangibles | $ 0.5 | $ 0.3 | $ 0.7 | $ 0.6 |
Intangibles - Weighted-Average
Intangibles - Weighted-Average Remaining Life of Intangible Assets (Detail) | 6 Months Ended | 12 Months Ended |
Dec. 25, 2020 | Jun. 26, 2020 | |
Global CEM Solutions, Ltd. | Customer relationships | ||
Finite-Lived Intangible Liabilities [Line Items] | ||
Weighted average remaining life of acquired intangible assets | 4 years 3 months 18 days | 4 years 7 months 6 days |
Intangibles - Estimated Future
Intangibles - Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands | Dec. 25, 2020 | Jun. 26, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 (remaining six months) | $ 312 | |
2022 | 1,215 | |
2023 | 1,208 | |
2024 | 924 | |
2025 | 488 | |
Thereafter | 220 | |
Total | $ 4,367 | $ 4,312 |
Total Borrowings, Including Cur
Total Borrowings, Including Current Portion and Non-Current Portion of Long-Term Borrowings (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 25, 2020 | Jun. 26, 2020 | |
Debt Instrument [Line Items] | ||
Long-term borrowings, current portion | $ 12,188 | $ 12,188 |
Less: Unamortized debt issuance costs – current portion | (32) | (32) |
Long-term borrowings, current portion, net | 12,156 | 12,156 |
Less: Current portion | (12,188) | (12,188) |
Less: Unamortized debt issuance costs – non-current portion | (79) | (95) |
Long-term borrowings, non-current portion, net | $ 33,436 | 39,514 |
Loan payable due June 2024 | ||
Debt Instrument [Line Items] | ||
Rate | 3-month LIBOR +1.35% per annum | |
Long-term debt | $ 45,703 | $ 51,797 |
Loan payable due June 2024 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.35% |
Movements of Long-Term Loans (D
Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 25, 2020 | Dec. 27, 2019 | |
Debt Disclosure [Abstract] | ||
Opening balance | $ 51,797 | $ 60,938 |
Borrowings during the period | 0 | 60,938 |
Repayments during the period | (6,094) | (63,985) |
Closing balance | $ 45,703 | $ 57,891 |
Future Maturities of Long-Term
Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 25, 2020 | Jun. 26, 2020 | Dec. 27, 2019 | Jun. 28, 2019 |
Debt Disclosure [Abstract] | ||||
2021 (remaining nine months) | $ 9,141 | |||
2022 | 12,187 | |||
2023 | 12,187 | |||
2024 | 12,188 | |||
Total | $ 45,703 | $ 51,797 | $ 57,891 | $ 60,938 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | Sep. 10, 2019USD ($) | Dec. 25, 2020USD ($) | Dec. 27, 2019USD ($) | Dec. 25, 2020USD ($) | Dec. 27, 2019USD ($) | Sep. 03, 2019USD ($) | Aug. 20, 2019USD ($) | Jun. 04, 2018USD ($) | May 22, 2014USD ($) |
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility borrowing capacity | $ 160,900,000 | $ 200,000,000 | |||||||
Line of credit facility termination date | Sep. 10, 2019 | ||||||||
Repayments of long term debt | $ 6,094,000 | $ 63,985,000 | |||||||
Bank of Ayudhya Public Company Limited | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt description of variable rate basis | 3-month LIBOR plus 1.35% | ||||||||
Debt instrument periodic payment | $ 3,000,000 | ||||||||
Debt instrument maturity date | Jun. 30, 2024 | ||||||||
Interest expense on debt | $ 200,000 | $ 400,000 | |||||||
Bank of Ayudhya Public Company Limited | Term loan agreement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Covenant, Service Coverage Ratio, Minimum | 1.25 | 1.25 | |||||||
Debt Instrument, Covenant, Service Coverage Ratio, Minimum at Payment of a Dividend | 1.50 | 1.50 | |||||||
Debt instrument, Loan to Value Ratio, Minimum | 0.65 | 0.65 | |||||||
Credit Facility Agreement | Bank of Ayudhya Public Company Limited | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility borrowing capacity | $ 3,600,000 | $ 3,600,000 | $ 110,000,000 | ||||||
Term loan agreement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Long term debt outstanding | $ 45,700,000 | $ 45,700,000 | |||||||
Term loan agreement | Bank of Ayudhya Public Company Limited | |||||||||
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. As of December 25, 2020, the Company was in compliance with all of its financial covenants under the Term Loan Agreement. | ||||||||
Term loan agreement | Bank of America | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest expense on debt | $ 500,000 | ||||||||
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 | $ 150,000,000 | $ 25,000,000 | 150,000,000 | |||||
Line of credit facility extended termination date | Jun. 4, 2023 | ||||||||
Revolving credit facility | Bank of America | |||||||||
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 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | Jun. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Liability for uncertain tax positions including accrued interest and penalties | $ 0.8 | $ 0.8 | $ 1.5 | ||
Corporate effective income tax rate | 3.00% | 4.90% | 3.70% | 5.00% |
Effect of Recording Share-Based
Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Share-based compensation expense by type of award: | ||||
Restricted share units | $ 4,175 | $ 4,186 | $ 9,424 | $ 8,584 |
Performance share units | 1,676 | 2,002 | 2,454 | 3,599 |
Total share-based compensation expense | 5,851 | 6,188 | 11,878 | 12,183 |
Tax effect on share-based compensation expense | 0 | 0 | 0 | 0 |
Net effect on share-based compensation expense | $ 5,851 | $ 6,188 | $ 11,878 | $ 12,183 |
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 | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 5,851 | $ 6,188 | $ 11,878 | $ 12,183 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 1,592 | 1,591 | 3,417 | 3,311 |
SG&A | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 4,259 | $ 4,597 | $ 8,461 | $ 8,872 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | Dec. 12, 2019 | Nov. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for future issuance (in shares) | 1,281,619 | |||||
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes (in shares) | 86,138 | 148,958 | ||||
Tax withholdings related to net share settlement of restricted share units | $ 4,400 | $ 10,361 | $ 4,377 | |||
Stock Plan 2010 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of ordinary shares available for grant (in shares) | 0 | 0 | ||||
Equity Incentive 2020 plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of ordinary shares available for grant (in shares) | 1,700,000 | |||||
Shares reserved for future issuance (in shares) | 1,300,000 | |||||
Equity Incentive 2017 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for future issuance (in shares) | 160,000 | |||||
Share units outstanding (in shares) | 111,347 | 111,347 | ||||
Performance share units | Stock Plan 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share units outstanding (in shares) | 188,554 | 188,554 | ||||
Performance share units | Executive of the Company | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award granted vesting period, year | 2 years | |||||
Performance share units | Executive of the Company | Vest at the end of the performance period | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 0.00% | |||||
Performance share units | Executive of the Company | Vest at the end of the performance period | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 100.00% | |||||
Restricted share units | Stock Plan 2010 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share units outstanding (in shares) | 433,599 | 433,599 | ||||
Restricted share units | Stock Plan 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share units outstanding (in shares) | 2,522,057 | 2,522,057 | ||||
Restricted share units | Equity Incentive Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized share-based compensation expense | $ 17,200 | $ 17,200 | ||||
Unrecognized compensation expense, weighted-average period for recognition | 2 years 6 months | |||||
Restricted share units | Equity Incentive 2020 plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share units outstanding (in shares) | 261,899 | 261,899 | ||||
Restricted share units | Equity Incentive 2017 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share units outstanding (in shares) | 12,164 | 12,164 | ||||
Restricted share units | Vesting option one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award granted vesting period, year | 3 years | |||||
Restricted share units | Vesting option two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award granted vesting period, year | 4 years | |||||
Restricted share units | Non-employee director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award granted vesting period, year | 1 year | |||||
Restricted share units | Non-employee director | Vest on the first of January | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 100.00% | |||||
Performance share units | Stock Plan 2010 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share units outstanding (in shares) | 238,474 | 238,474 | ||||
Performance share units | Equity Incentive Plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized share-based compensation expense | $ 12,100 | $ 12,100 | ||||
Unrecognized compensation expense, weighted-average period for recognition | 1 year 4 months 24 days |
Restricted Share Unit Activity
Restricted Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Restricted share units - $ / shares | 6 Months Ended | |
Dec. 25, 2020 | Dec. 27, 2019 | |
Number of restricted share units | ||
Number of share units, beginning balance (in shares) | 797,757 | 800,751 |
Number of share units, granted (in shares) | 216,776 | 331,900 |
Number of share units, issued (in shares) | (292,874) | (264,275) |
Number of share units, forfeited (in shares) | (13,997) | (23,855) |
Number of share units, ending balance (in shares) | 707,662 | 844,521 |
Weighted- Average Grant Date Fair Value Per Share | ||
Weighted-average grant date fair value per share, beginning balance (in USD per share) | $ 46.88 | $ 42.48 |
Weighted-average grant date fair value per share, granted (in USD per share) | 69.48 | 49.78 |
Weighted-average grant date fair value per share, issued (in USD per share) | 43.75 | 39.60 |
Weighted-average grant date fair value per share, forfeited (in USD per share) | 54.23 | 42.09 |
Weighted-average grant date fair value per share, ending balance (in USD per share) | $ 54.95 | $ 46.26 |
Performance Share Unit Activity
Performance Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Performance share units - $ / shares | 6 Months Ended | |
Dec. 25, 2020 | Dec. 27, 2019 | |
Number of performance share units | ||
Number of share units, beginning balance (in shares) | 440,140 | 548,500 |
Number of share units, granted (in shares) | 184,718 | 238,474 |
Number of share units, issued (in shares) | (82,185) | 0 |
Number of share units, forfeited (in shares) | (115,645) | (350,670) |
Number of share units, ending balance (in shares) | 427,028 | 436,304 |
Weighted- Average Grant Date Fair Value Per Share | ||
Weighted-average grant date fair value per share, beginning balance (in USD per share) | $ 48.37 | $ 40.97 |
Weighted-average grant date fair value per share, granted (in USD per share) | 69.85 | 48.39 |
Weighted-average grant date fair value per share, issued (in USD per share) | 48.02 | 0 |
Weighted-average grant date fair value per share, forfeited (in USD per share) | 48.02 | 36.99 |
Weighted-average grant date fair value per share, ending balance (in USD per share) | $ 57.82 | $ 48.22 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | Aug. 31, 2020 | Jun. 26, 2020 | May 31, 2019 | Feb. 28, 2018 | Aug. 31, 2017 | |
Shareholders Equity [Line Items] | |||||||||
Ordinary shares, authorized share capital | 500,000,000 | 500,000,000 | 500,000,000 | ||||||
Ordinary shares, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Preferred shares, shares authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | ||||||
Preferred shares, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Share repurchase program, approved amount | $ 30,000,000 | ||||||||
Share repurchase program, increase in shares authorized for repurchase | $ 58,500,000 | $ 50,000,000 | $ 30,000,000 | ||||||
Treasury Stock, carrying basis | $ 92,900,000 | $ 92,900,000 | $ 168,500,000 | ||||||
Treasury stock acquired (in shares) | 101,549 | 101,549 | |||||||
Treasury stock acquired, average cost (in USD per share) | $ 69.64 | ||||||||
Treasury stock, value, acquired, cost method | $ 7,074,000 | $ 7,074,000 | |||||||
1999 and 2010 Stock Plan | |||||||||
Shareholders Equity [Line Items] | |||||||||
Ordinary shares issued upon vesting of restricted shares (in shares) | 17,409 | 19,762 | 226,101 | 178,137 |
Changes in AOCI, Net of Tax (De
Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2020 | Dec. 27, 2019 | Dec. 25, 2020 | Dec. 27, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 1,000,703 | $ 890,695 | $ 974,409 | $ 863,099 |
Other comprehensive income before reclassification adjustment | 1,720 | 155 | ||
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income | (2,230) | 79 | ||
Total other comprehensive income (loss), net of tax | 2,247 | 446 | (510) | 234 |
Ending balance | 1,036,670 | 928,327 | 1,036,670 | 928,327 |
Unrealized net (Losses)/Gains on Available-for-sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 1,490 | 952 | ||
Other comprehensive income before reclassification adjustment | (289) | (126) | ||
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income | (78) | 79 | ||
Total other comprehensive income (loss), net of tax | (367) | (47) | ||
Ending balance | 1,123 | 905 | 1,123 | 905 |
Unrealized net (Losses)/Gains on Derivative Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 602 | 32 | ||
Other comprehensive income before reclassification adjustment | 1,552 | (150) | ||
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income | (2,375) | |||
Total other comprehensive income (loss), net of tax | (823) | (150) | ||
Ending balance | (221) | (118) | (221) | (118) |
Retirement benefit plan - Prior service cost | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (2,009) | (2,537) | ||
Other comprehensive income before reclassification adjustment | 184 | |||
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income | 223 | |||
Total other comprehensive income (loss), net of tax | 223 | 184 | ||
Ending balance | (1,786) | (2,353) | (1,786) | (2,353) |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (1,230) | (833) | ||
Other comprehensive income before reclassification adjustment | 457 | 247 | ||
Total other comprehensive income (loss), net of tax | 457 | 247 | ||
Ending balance | (773) | (586) | (773) | (586) |
AOCI Attributable to parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (3,904) | (2,598) | (1,147) | (2,386) |
Total other comprehensive income (loss), net of tax | 2,247 | 446 | (510) | 234 |
Ending balance | $ (1,657) | $ (2,152) | $ (1,657) | $ (2,152) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions, ¥ in Millions | Dec. 25, 2020USD ($) | Dec. 25, 2020CNY (¥) | Dec. 25, 2020EUR (€) | Jun. 26, 2020USD ($) | Jun. 26, 2020EUR (€) |
Commitments and Contingencies Disclosure [Line Items] | |||||
Outstanding letter of credit amount | € | € 6 | € 6 | |||
Outstanding bank guarantees given by banks on behalf of the company | $ 1,700,000 | $ 1,600,000 | |||
Long-term restricted cash | 153,000 | 0 | |||
Contractual obligation | 50,300,000 | ||||
Inventories | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Outstanding commitment to third parties | 515,500,000 | ||||
Standby letters of credit | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Amount of cash collateral | 7,400,000 | 7,400,000 | |||
Bank guarantees | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Amount of cash collateral | 200,000 | ||||
Thailand | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Outstanding commitment to third parties | $ 10,100,000 | ||||
China | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Outstanding bank guarantees given by banks on behalf of the company | 0 | ||||
Long-term restricted cash | ¥ | ¥ 1 | ||||
United Kingdom | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Outstanding bank guarantees given by banks on behalf of the company | $ 0 |
Business Segments and Geograp_2
Business Segments and Geographic Information - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Dec. 25, 2020USD ($)SegmentContract | Jun. 26, 2020Contract | Dec. 27, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | Segment | 1 | ||
Number of customers that contributed to more than 10% of trade accounts receivable | Contract | 4 | 3 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ | $ 28.6 | $ 30 |