Cover
Cover - shares | 3 Months Ended | |
Sep. 24, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 24, 2021 | |
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 | |
Entity Address, Address Line Two | One Nexus Way, Camana Bay | |
Entity Address, City or Town | 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, $0.01 par value | |
Trading Symbol | FN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,018,474 | |
Current Fiscal Year End Date | --06-24 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001408710 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 |
Current assets | ||
Cash and cash equivalents | $ 269,911 | $ 302,969 |
Short-term investments | 258,501 | 244,963 |
Trade accounts receivable, net of allowance for doubtful accounts of $99 and $100, respectively | 346,689 | 336,547 |
Contract assets | 13,120 | 11,878 |
Inventories | 465,251 | 422,133 |
Prepaid expenses | 10,404 | 11,398 |
Other current assets | 24,729 | 22,619 |
Total current assets | 1,388,605 | 1,352,507 |
Non-current assets | ||
Long-term restricted cash | 155 | 154 |
Property, plant and equipment, net | 271,659 | 241,129 |
Intangibles, net | 4,107 | 4,371 |
Operating right-of-use assets | 6,086 | 6,699 |
Deferred tax assets | 9,491 | 9,428 |
Other non-current assets | 518 | 1,834 |
Total non-current assets | 292,016 | 263,615 |
Total Assets | 1,680,621 | 1,616,122 |
Current liabilities | ||
Long-term borrowings, current portion, net | 12,156 | 12,156 |
Trade accounts payable | 373,663 | 346,555 |
Fixed assets payable | 24,174 | 19,206 |
Contract liabilities | 1,755 | 1,680 |
Operating lease liabilities, current portion | 2,613 | 2,593 |
Income tax payable | 2,776 | 3,612 |
Accrued payroll, bonus and related expenses | 19,336 | 20,464 |
Accrued expenses | 20,147 | 17,134 |
Other payables | 22,599 | 20,958 |
Total current liabilities | 479,219 | 444,358 |
Non-current liabilities | ||
Long-term borrowings, non-current portion, net | 24,319 | 27,358 |
Deferred tax liability | 5,425 | 5,107 |
Operating lease liability, non-current portion | 3,220 | 3,850 |
Severance liabilities | 19,157 | 19,485 |
Other non-current liabilities | 3,279 | 3,444 |
Total non-current liabilities | 55,400 | 59,244 |
Total Liabilities | 534,619 | 503,602 |
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 September 24, 2021 and June 25, 2021) | 0 | 0 |
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 39,000,843 shares and 38,749,045 shares issued at September 24, 2021 and June 25, 2021, respectively; and 37,017,254 shares and 36,765,456 shares outstanding at September 24, 2021 and June 25, 2021, respectively) | 390 | 388 |
Additional paid-in capital | 179,670 | 189,445 |
Less: Treasury shares (1,983,589 shares and 1,983,589 shares as of September 24, 2021 and June 25, 2021 respectively) | (87,343) | (87,343) |
Accumulated other comprehensive income (loss) | (7,662) | (6,266) |
Retained earnings | 1,060,947 | 1,016,296 |
Total Shareholders’ Equity | 1,146,002 | 1,112,520 |
Total Liabilities and Shareholders’ Equity | $ 1,680,621 | $ 1,616,122 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 99 | $ 100 |
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) | 39,000,843 | 38,749,045 |
Ordinary shares, shares outstanding (in shares) | 37,017,254 | 36,765,456 |
Treasury stocks, shares (in shares) | 1,983,589 | 1,983,589 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 543,322 | $ 436,639 |
Cost of revenues | (479,725) | (386,159) |
Gross profit | 63,597 | 50,480 |
Selling, general and administrative expenses | (20,587) | (16,863) |
Operating income | 43,010 | 33,617 |
Interest income | 761 | 1,104 |
Interest expense | (36) | (251) |
Foreign exchange gain (loss), net | 1,772 | 128 |
Other income (expense), net | (260) | 121 |
Income before income taxes | 45,247 | 34,719 |
Income tax expense | (596) | (1,668) |
Net income | 44,651 | 33,051 |
Other comprehensive income (loss), net of tax: | ||
Change in net unrealized gain (loss) on available-for-sale securities | (213) | (325) |
Change in net unrealized gain (loss) on derivative instruments | (1,217) | (3,208) |
Change in net retirement benefits plan – prior service cost | 198 | 173 |
Change in foreign currency translation adjustment | (164) | 603 |
Total other comprehensive income (loss), net of tax | (1,396) | (2,757) |
Net comprehensive income (loss) | $ 43,255 | $ 30,294 |
Earnings per share | ||
Basic earnings per share (in USD per share) | $ 1.21 | $ 0.90 |
Diluted earnings per share (in USD per share) | $ 1.20 | $ 0.88 |
Weighted-average number of ordinary shares outstanding (thousands of shares) | ||
Basic (in shares) | 36,877 | 36,818 |
Diluted (in shares) | 37,328 | 37,383 |
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 | Retained EarningsCumulative effect adjustment from adoption of ASC 326 |
Beginning balance (in shares) at Jun. 26, 2020 | 38,471,967 | |||||||
Beginning balance at Jun. 26, 2020 | $ 974,409 | $ (107) | $ 385 | $ 175,610 | $ (68,501) | $ (1,147) | $ 868,062 | $ (107) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 33,051 | 33,051 | ||||||
Other comprehensive income (loss) | (2,757) | (2,757) | ||||||
Share-based compensation | 6,027 | 6,027 | ||||||
Issuance of ordinary shares (in shares) | 208,692 | |||||||
Issuance of ordinary shares | 0 | $ 2 | (2) | |||||
Tax withholdings related to net share settlement of restricted share units | (9,920) | (9,920) | ||||||
Ending balance (in shares) at Sep. 25, 2020 | 38,680,659 | |||||||
Ending balance at Sep. 25, 2020 | $ 1,000,703 | $ 387 | 171,715 | (68,501) | (3,904) | 901,006 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2019-05 [Member] | |||||||
Beginning balance (in shares) at Jun. 25, 2021 | 38,749,045 | |||||||
Beginning balance at Jun. 25, 2021 | $ 1,112,520 | $ 388 | 189,445 | (87,343) | (6,266) | 1,016,296 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 44,651 | 44,651 | ||||||
Other comprehensive income (loss) | (1,396) | (1,396) | ||||||
Share-based compensation | 9,292 | 9,292 | ||||||
Issuance of ordinary shares (in shares) | 251,798 | |||||||
Issuance of ordinary shares | 0 | $ 2 | (2) | |||||
Tax withholdings related to net share settlement of restricted share units | (19,065) | (19,065) | ||||||
Ending balance (in shares) at Sep. 24, 2021 | 39,000,843 | |||||||
Ending balance at Sep. 24, 2021 | $ 1,146,002 | $ 390 | $ 179,670 | $ (87,343) | $ (7,662) | $ 1,060,947 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Cash flows from operating activities | ||
Net income | $ 44,651 | $ 33,051 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 9,535 | 8,570 |
(Gain) loss on disposal of property, plant and equipment | (98) | (19) |
(Gain) loss from sales and maturities of available-for-sale securities | (13) | 0 |
Amortization of investment discount | 1,109 | 481 |
Amortization of deferred debt issuance costs | 8 | 8 |
(Reversal of) allowance for doubtful accounts | (1) | (257) |
Unrealized (gain) loss on exchange rate and fair value of foreign currency forward contracts | (1,436) | (890) |
Amortization of fair value at hedge inception of interest rate swaps | (268) | (359) |
Share-based compensation | 9,292 | 6,027 |
Deferred income tax | (104) | 56 |
Other non-cash expenses | 257 | 96 |
Changes in operating assets and liabilities | ||
Trade accounts receivable | (10,160) | (16,497) |
Contract assets | (1,242) | 1,499 |
Inventories | (43,135) | (29,643) |
Other current assets and non-current assets | (385) | 7,812 |
Trade accounts payable | 27,541 | 33,546 |
Contract liabilities | 75 | (590) |
Income tax payable | (747) | 871 |
Severance liabilities | 893 | 745 |
Other current liabilities and non-current liabilities | 3,243 | (10,001) |
Net cash provided by operating activities | 39,015 | 34,506 |
Cash flows from investing activities | ||
Purchase of short-term investments | (78,101) | (79,103) |
Proceeds from sales of short-term investments | 19,463 | 0 |
Proceeds from maturities of short-term investments | 43,791 | 33,750 |
Purchase of property, plant and equipment | (34,616) | (12,572) |
Purchase of intangibles | (321) | (530) |
Proceeds from disposal of property, plant and equipment | 145 | 21 |
Net cash used in investing activities | (49,639) | (58,434) |
Cash flows from financing activities | ||
Repayment of long-term borrowings | (3,047) | (3,047) |
Repayment of finance lease liability | 0 | (100) |
Withholding tax related to net share settlement of restricted share units | (19,065) | (9,920) |
Net cash used in financing activities | (22,112) | (13,067) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (32,736) | (36,995) |
Movement in cash, cash equivalents and restricted cash | ||
Cash, cash equivalents and restricted cash at the beginning of period | 303,123 | 232,832 |
Increase (decrease) in cash, cash equivalents and restricted cash | (32,736) | (36,995) |
Effect of exchange rate on cash, cash equivalents and restricted cash | (321) | 766 |
Cash, cash equivalents and restricted cash at the end of period | 270,066 | 196,603 |
Non-cash investing and financing activities | ||
Construction, software and equipment-related payables | $ 24,174 | $ 9,616 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 24, 2021 | Sep. 25, 2020 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | $ 269,911 | $ 189,201 |
Restricted cash | 155 | 7,402 |
Cash, cash equivalents and restricted cash | $ 270,066 | $ 196,603 |
Business and organization
Business and organization | 3 Months Ended |
Sep. 24, 2021 | |
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 | 3 Months Ended |
Sep. 24, 2021 | |
Accounting Policies [Abstract] | |
Accounting policies | Accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of September 24, 2021 and for the three months ended September 24, 2021 and September 25, 2020 include normal recurring adjustments necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 25, 2021. The balance sheet as of June 25, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three months ended September 24, 2021 may not be indicative of results for the year ending June 24, 2022 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 the Company's 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 upon the occurrence of 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 September 24, 2021 and September 25, 2020 each consisted of 13 weeks. Fiscal year 2022 will be comprised of 52 weeks and will end on June 24, 2022. Adoption of New Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “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. The Company adopted this standard in the first quarter of fiscal year 2022 with no material impact on its unaudited condensed consolidated financial statements. |
Revenues from contracts with cu
Revenues from contracts with customers | 3 Months Ended |
Sep. 24, 2021 | |
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 others and Europe. The following table presents total revenues by geographic region: (amount in thousands, except percentages) Three Months Ended As a % of Total Three Months Ended As a % of Total North America U.S. 245,274 206,950 Others 1,316 452 Total revenue in North America 246,590 45.4 % 207,402 47.5 % Asia-Pacific and others India 64,932 (1) 19 Malaysia 51,749 43,911 Israel 27,634 30,115 Hong Kong 21,031 23,505 Japan 14,977 20,332 China 13,635 13,787 Others 12,225 13,977 Total revenue in Asia-Pacific and others 206,183 37.9 % 145,646 33.4 % Europe Ireland 49,484 53,611 U.K. 19,578 15,311 Germany 8,425 5,799 Others 13,062 8,870 Total revenue in Europe $ 90,549 16.7 % $ 83,591 19.1 % Total revenue $ 543,322 100.0 % $ 436,639 100.0 % (1) Due to change in bill-to-location for certain customer. The following table presents revenues by end market. (amount in thousands, except percentages) Three Months Ended As a % of Total Three Months Ended As a % of Total Optical communications $ 427,301 78.6 % $ 343,917 78.8 % Lasers, sensors and other 116,021 21.4 % 92,722 21.2 % Total $ 543,322 100.0 % $ 436,639 100.0 % 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 three months ended September 24, 2021: (amount in thousands) Contract Beginning balance, June 25, 2021 $ 11,878 Revenue recognized 13,197 Amounts collected or invoiced (11,955) Ending balance, September 24, 2021 $ 13,120 (amount in thousands) Contract Beginning balance, June 25, 2021 $ 1,680 Advance payment received during the period 1,941 Revenue recognized (1,866) Ending balance, September 24, 2021 $ 1,755 |
Earnings per ordinary share
Earnings per ordinary share | 3 Months Ended |
Sep. 24, 2021 | |
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 (amount in thousands, except per share amounts) September 24, September 25, Net income attributable to shareholders $ 44,651 $ 33,051 Weighted-average number of ordinary shares outstanding (thousands of shares) 36,877 36,818 Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares) 451 565 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,328 37,383 Basic earnings per ordinary share $ 1.21 $ 0.90 Diluted earnings per ordinary share $ 1.20 $ 0.88 Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1) — 61 (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 | 3 Months Ended |
Sep. 24, 2021 | |
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 September 24, 2021 Cash $ 223,409 $ — $ 223,409 $ — $ — Cash equivalents 46,502 — 46,502 — — Liquidity funds 31,278 — — — 31,278 Corporate debt securities 203,069 9 — 203,078 — U.S. agency and U.S. Treasury securities 24,058 87 — 24,145 — Total $ 528,316 $ 96 $ 269,911 $ 227,223 $ 31,278 As of June 25, 2021 Cash $ 222,664 $ — $ 222,664 $ — $ — Cash equivalents 80,305 — 80,305 — — Liquidity funds 30,000 1,226 — — 31,226 Certificates of deposit 10,500 — — — 10,500 Corporate debt securities 171,626 164 — 171,790 — U.S. agency and U.S. Treasury securities 31,301 146 — 31,447 — Total $ 546,396 $ 1,536 $ 302,969 $ 203,237 $ 41,726 All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date. The Company may sell certain of its 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 September 24, 2021 and June 25, 2021: September 24, 2021 June 25, 2021 (amount in thousands) Carrying Fair Value Carrying Fair Value Due within one year $ 69,219 $ 69,211 $ 30,000 $ 31,226 Due between one to five years 189,186 189,290 202,927 203,237 Total $ 258,405 $ 258,501 $ 232,927 $ 234,463 As of September 24, 2021, the Company considered the decline in market value of its available-for-sale debt securities by using the AFS debt security impairment model. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. The Company assesses impairment at the individual security level according to applicable accounting standards by comparing fair value/market value with amortized cost. The Company considered factors such as the failure of the issuer of the security to make scheduled interest and principal payments and any changes to the credit rating of the security by a rating agency. The credit ratings of the Company's invested securities are still in compliance with the Company's investment policy. No impairment losses on available-for-sale debt securities were recorded for the three months ended September 24, 2021. The following table summarizes the carrying cost of short-term investments classified as held-to-maturity securities based on stated effective maturities as of September 24, 2021 and June 25, 2021: (amount in thousands) As of September 24, 2021 As of June 25, 2021 Due within one year $ — (1) $ 10,500 Due between one to five years — — Total $ — $ 10,500 (1) Short-term investments classified as held-to-maturity securities as of June 25, 2021 matured in July 2021. |
Fair value of financial instrum
Fair value of financial instruments | 3 Months Ended |
Sep. 24, 2021 | |
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 September 24, 2021 Assets Cash equivalents $ — $ 46,502 $ — $ 46,502 Liquidity funds — 31,278 — 31,278 Corporate debt securities — 203,078 — 203,078 U.S. agency and U.S. treasury securities — 24,145 — 24,145 Total $ — $ 305,003 $ — $ 305,003 Liabilities Derivative liabilities – current portion $ — $ 7,798 $ — $ 7,798 Derivative liabilities – non-current portion — 1,554 — 1,554 Total $ — $ 9,352 (1) $ — $ 9,352 Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of June 25, 2021 Assets Cash equivalents $ — $ 80,305 $ — $ 80,305 Liquidity funds — 31,226 — 31,226 Corporate debt securities — 171,790 — 171,790 U.S. agency and U.S. Treasury securities — 31,447 — 31,447 Derivative assets – current portion — 1 (2) — 1 Total $ — $ 314,769 $ — $ 314,769 Liabilities Derivative liabilities – current portion $ — $ 5,654 $ — $ 5,654 Derivative liabilities – non-current portion — 1,977 — 1,977 Total $ — $ 7,631 (3) $ — $ 7,631 (1) Foreign currency forward contracts with a notional amount of $135.0 million and Canadian dollars 0.2 million and two interest rate swap agreements with an aggregate notional amount of $125.1 million. (2) Foreign currency forward contracts with an aggregate notional amount of $2.0 million. (3) Foreign currency forward contracts with an aggregate notional amount of $128.0 million and Canadian dollars 0.4 million and 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 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 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 to foreign exchange gain (loss), net in the consolidated statements of operations and comprehensive income. As of September 24, 2021, the Company had 135 outstanding U.S. dollar foreign currency forward contracts against Thai baht, with an aggregate notional amount of $135.0 million and maturity dates ranging from October 2021 through April 2022 and one outstanding Canadian dollar foreign currency forward contract with a notional amount of 0.2 million Canadian dollars and a maturity date in December 2021. As of June 25, 2021, 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 July 2021 through January 2022, and two foreign currency contracts with an aggregate notional amount of 0.4 million Canadian dollars and maturity dates in September 2021. As of September 24, 2021, 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 September 24, 2021, the amount in accumulated other comprehensive income (" AOCI") that is expected to be reclassified into earnings within 12 months was a loss of $4.1 million. As of June 25, 2021, 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 June 25, 2021, the amount in AOCI that is expected to be reclassified into earnings within 12 months was a gain of $2.7 million. During the three months ended September 24, 2021, the Company recorded an unrealized loss of $0.6 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 September 25, 2020, the Company recorded an unrealized loss of $1.5 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. 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 September 24, 2021 and June 25, 2021, 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 credit facility agreement with Bank of America 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, the Company repaid in full the outstanding term loan under the Bank of America credit facility agreement (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 converts 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 September 24, 2021, the amount in AOCI that is expected to be reclassified into earnings within 12 months is a loss of $0.9 million. As of June 25, 2021, the amount in AOCI that is expected to be reclassified into earnings within 12 months is a loss of $0.8 million. 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 (amount in thousands) Financial September 24, September 25, Derivatives gain (loss) recognized in other comprehensive income (loss): Foreign currency forward contracts Other comprehensive $ (2,136) $ (2,340) Interest rate swaps Other comprehensive 408 357 Total derivatives gain (loss) recognized in other comprehensive income (loss) $ (1,728) $ (1,983) Derivatives loss (gain) reclassified from accumulated other comprehensive income (loss) into earnings: Foreign currency forward contracts Cost of revenues $ 2,115 $ (2,057) Foreign currency forward contracts SG&A 88 (87) Foreign currency forward contracts Foreign exchange loss, net (1,424) 1,278 Interest rate swaps Interest expense (268) (359) Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings $ 511 $ (1,225) Change in net unrealized gain (loss) on derivatives instruments $ (1,217) $ (3,208) Fair Value of derivatives The following table provides the fair values of the Company’s derivative financial instruments for the periods presented: September 24, June 25, (amount in thousands) Derivative Derivative Derivative Derivative Derivatives not designated as hedging instruments Foreign currency forward and option contracts $ — $ (2,149) $ — $ (1,379) Interest rate swaps — — — — Derivatives designated as hedging instruments Foreign currency forward contracts — (4,063) 1 (2,703) Interest rate swaps — (3,140) — (3,549) Derivatives, gross balances $ — $ (9,352) $ 1 $ (7,631) 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 | 3 Months Ended |
Sep. 24, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (amount in thousands) As of September 24, As of June 25, Raw materials $ 234,923 $ 196,345 Work in progress 190,964 174,654 Finished goods 15,194 15,471 Goods in transit 24,170 35,663 Inventories $ 465,251 $ 422,133 |
Restricted cash
Restricted cash | 3 Months Ended |
Sep. 24, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restricted cash | Restricted cashAs of September 24, 2021 and June 25, 2021, the Company had long-term restricted cash of Renminbi 1.0 million related to bank guarantees of its subsidiary in the PRC to support the subsidiary's operations. The bank guarantee was backed by cash collateral of $0.2 million. |
Leases
Leases | 3 Months Ended |
Sep. 24, 2021 | |
Leases [Abstract] | |
Leases | Leases The 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, the PRC, the U.S., the U.K., Israel and Singapore 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 September 24, 2021, the maturities of the Company’s operating lease liabilities were as follows: (amount in thousands) As of September 24, 2022 (remaining 9 months) $ 2,085 2023 2,686 2024 1,257 2025 43 Total undiscounted lease payments 6,071 Less imputed interest (238) Total present value of lease liabilities $ 5,833 (1) (1) Included current portion of operating lease liabilities of $2.6 million. 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 months ended September 24, 2021 and September 25, 2020 was $0.7 million and $0.6 million, respectively. Rental expense for short-term leases for the three months ended September 24, 2021 and September 25, 2020 was immaterial. The following summarizes additional information related to the Company’s operating leases: As of September 24, 2021 As of June 25, 2021 Weighted-average remaining lease term (in years) 2.5 2.7 Weighted-average discount rate 3.5 % 3.5 % The following table presents supplemental disclosure for the unaudited condensed consolidated statement of cash flows related to operating and finance leases for the three months ended September 24, 2021 and September 25, 2020: Three Months Ended (amount in thousands) September 24, September 25, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 689 $ 594 Financing cash flows from finance leases $ — $ 100 ROU assets obtained in exchange for lease liabilities $ 38 $ 64 |
Intangibles
Intangibles | 3 Months Ended |
Sep. 24, 2021 | |
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 September 24, 2021 Software $ 9,915 $ (6,902) $ — $ 3,013 Customer relationships 4,373 (3,307) 28 1,094 Backlog 119 (119) — — Total intangibles $ 14,407 $ (10,328) $ 28 $ 4,107 (amount in thousands) Gross Accumulated Foreign Net As of June 25, 2021 Software $ 9,767 $ (6,632) $ — $ 3,135 Customer relationships 4,373 (3,195) 58 1,236 Backlog 119 (119) — — Total intangibles $ 14,259 $ (9,946) $ 58 $ 4,371 The Company recorded amortization expense relating to intangibles of $0.4 million and $0.2 million for the three months ended September 24, 2021 and September 25, 2020, respectively. The weighted-average remaining life of customer relationships was: (years) As of September 24, 2021 As of June 25, 2021 Customer relationships 3.7 3.9 Based on the carrying amount of intangibles as of September 24, 2021, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2022 (remaining 9 months) $ 1,077 2023 1,196 2024 868 2025 586 Thereafter 380 Total $ 4,107 |
Borrowings
Borrowings | 3 Months Ended |
Sep. 24, 2021 | |
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 September 24, 2021 As of June 25, 2021 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 $ 36,562 $ 39,609 Less: Current portion (12,188) (12,188) Less: Unamortized debt issuance costs – non-current portion (55) (63) Long-term borrowings, non-current portion, net $ 24,319 $ 27,358 (1) We have entered into interest rate swaps that effectively fix a series of our future interest payments on our term loans. Refer to Note 6. The movements of long-term borrowings for the three months ended September 24, 2021 and September 25, 2020 were as follows: Three Months Ended (amount in thousands) September 24, September 25, Opening balance $ 39,609 $ 51,797 Borrowings during the period — — Repayments during the period (3,047) (3,047) Closing balance $ 36,562 $ 48,750 As of September 24, 2021, future maturities of long-term borrowings during each fiscal year were as follows: (amount in thousands) 2022 (remaining 9 months) $ 9,141 2023 15,233 2024 9,141 2025 3,047 Total $ 36,562 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”), which provides for a facility of 110.0 million Thai baht (approximately $3.6 million based on the applicable exchange rate as of September 27, 2019) and $160.9 million that 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 (the "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 Bank of America 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 borrowed again. During the three months ended September 24, 2021 and September 25, 2020, the Company recorded $0.3 million and $0.2 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, and 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 of 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 1.5 times. As of September 24, 2021, the Company was in compliance with all of its financial covenants under the Term Loan Agreement. The events of default under 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. As of September 24, 2021, there was $36.6 million outstanding under the term loan. |
Income taxes
Income taxes | 3 Months Ended |
Sep. 24, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes As of September 24, 2021 and June 25, 2021, the liability for uncertain tax positions including accrued interest and penalties was $1.1 million and $0.9 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 additional provisions on uncertain tax positions from one of the subsidiaries and 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 September 24, 2021 and September 25, 2020 was 1.3% and 4.8%, respectively, of net income. The decrease was primarily due to an increase in income not subject to tax during the first quarter of fiscal year 2022 as compared to the same period in fiscal year 2021. |
Share-based compensation
Share-based compensation | 3 Months Ended |
Sep. 24, 2021 | |
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 the Company's ordinary shares on the date of grant. The effect of recording share-based compensation expense for the three months ended September 24, 2021 and September 25, 2020 was as follows: Three Months Ended (amount in thousands) September 24, September 25, Share-based compensation expense by type of award: Restricted share units $ 4,924 $ 5,249 Performance share units 4,368 778 Total share-based compensation expense 9,292 6,027 Tax effect on share-based compensation expense — — Net effect on share-based compensation expense $ 9,292 $ 6,027 Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended (amount in thousands) September 24, September 25, Cost of revenue $ 1,975 $ 1,825 Selling, general and administrative expense 7,317 4,202 Total share-based compensation expense $ 9,292 $ 6,027 The Company did not capitalize any share-based compensation expense as part of any asset costs during the three months ended September 24, 2021 and September 25, 2020. 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 September 24, 2021, there were 315,203 restricted share units outstanding, 295,550 performance share units outstanding and 2,260,077 ordinary shares available for future grant under the 2020 Plan. As of September 24, 2021, there were 183,056 restricted 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 September 24, 2021, 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 25, 2021 641,875 $ 55.74 Granted 137,165 $ 101.05 Issued (259,533) $ 50.76 Forfeited (9,084) $ 67.97 Balance as of September 24, 2021 510,423 $ 70.23 Number Weighted- Balance as of June 26, 2020 797,757 $ 46.88 Granted 171,946 $ 70.05 Issued (268,728) $ 43.84 Forfeited (7,199) $ 50.40 Balance as of September 25, 2020 693,776 $ 53.76 The following table summarizes performance share unit activity under the Equity Incentive Plans: Number Weighted- Balance as of June 25, 2021 427,028 $ 57.82 Granted 110,832 $ 101.05 Issued (190,213) $ 48.65 Forfeited (52,097) $ 48.65 Balance as of September 24, 2021 295,550 $ 81.55 Number Weighted- Balance as of June 26, 2020 440,140 $ 48.37 Granted 179,008 $ 70.05 Issued (82,185) $ 48.02 Forfeited (115,645) $ 48.02 Balance as of September 25, 2020 421,318 $ 57.74 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 September 24, 2021, there was $18.9 million and $15.7 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 2.7 years and 1.5 years, respectively. For the three months ended September 24, 2021 and September 25, 2020, the Company withheld an aggregate of 197,948 shares and 142,221 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 three months ended September 24, 2021 and September 25, 2020, the Company then remitted cash of $19.1 million and $9.9 million, respectively, to the appropriate taxing authorities, and presented it as a financing activity within the unaudited condensed consolidated statements of cash flows. The payment was recorded as a reduction of additional paid-in capital. |
Shareholders' equity
Shareholders' equity | 3 Months Ended |
Sep. 24, 2021 | |
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 months ended September 24, 2021, Fabrinet issued 251,798 ordinary shares upon the vesting of restricted share units and performance share units under the Equity Incentive Plans, net of shares withheld. For the three months ended September 25, 2020, Fabrinet issued 208,692 ordinary shares upon the vesting of restricted share units and performance share units under the Equity Incentive Plans, 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 three months ended September 24, 2021, no shares were repurchased under the program. As of September 24, 2021, the Company had a remaining authorization to repurchase up to an additional $81.2 million worth of its ordinary shares under the share repurchase program. Shares repurchased under the share repurchase program are held as treasury shares. |
Accumulated other comprehensive
Accumulated other comprehensive income (loss) | 3 Months Ended |
Sep. 24, 2021 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) The changes in AOCI for the three months ended September 24, 2021 and September 25, 2020 were as follows: (amount in thousands) Unrealized net Unrealized net Retirement Foreign Total Balance as of June 25, 2021 $ 308 $ (4,504) $ (1,425) $ (645) $ (6,266) Other comprehensive income before reclassification adjustment (200) (1,728) — (164) (2,092) Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income (13) 511 198 — 696 Tax effects — — — — — Other comprehensive income (loss) $ (213) $ (1,217) $ 198 $ (164) $ (1,396) Balance as of September 24, 2021 $ 95 $ (5,721) $ (1,227) $ (809) $ (7,662) (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 (325) (1,983) — 603 (1,705) Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income — (1,225) 173 — (1,052) Tax effects — — — — — Other comprehensive income (loss) $ (325) $ (3,208) $ 173 $ 603 $ (2,757) Balance as of September 25, 2020 $ 1,165 $ (2,606) $ (1,836) $ (627) $ (3,904) |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Sep. 24, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Bank guarantees As of September 24, 2021 and June 25, 2021, there were outstanding bank guarantees on behalf of our subsidiary in Thailand for electricity usage and other normal business expenses totaling to $1.5 million and $1.6 million, respectively, or Thai Baht 50.2 million. As of September 24, 2021 and June 25, 2021, the Company had an outstanding bank guarantee of its subsidiary in the PRC to support the subsidiary's operations totaling Renminbi 1.0 million, which was backed by cash collateral of $0.2 million. In addition, there were other immaterial bank guarantees on behalf of our subsidiary in the U.K. to support its operations. 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 September 24, 2021, the Company had a purchase obligation and other commitments to third parties of $992.8 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. In June 2021, the Company entered into an agreement to purchase a parcel of land in Pathumthani, Thailand to expand the Company's Pinehurst campus. The aggregate purchase price was approximately $13.2 million or Thai Baht 418.8 million, which was paid in two installments: (1) a 10% deposit on May 14, 2021; and (2) the remainder on June 29, 2021. As of September 24, 2021, the Company had total capital expenditure commitments to third parties of $31.0 million, comprised of the construction contract of new manufacturing building at Chonburi campus of $20.1 million and other commitments of $10.9 million. Indemnification of directors and officers Cayman Islands law does not limit the extent to which a company’s memorandum and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Fabrinet’s amended and restated memorandum and articles of association provide for indemnification of directors and officers for actions, costs, charges, losses, damages and expenses incurred in their capacities as such, except that such indemnification does not extend to any matter in respect of any fraud or dishonesty that may attach to any of them. In accordance with Fabrinet’s form of indemnification agreement for its directors and officers, Fabrinet has agreed to indemnify its directors and officers against certain liabilities and expenses incurred by such persons in connection with claims by reason of their being such a director or officer. Fabrinet maintains a director and officer liability insurance policy that may enable it to recover a portion of any future amounts paid under the indemnification agreements. |
Business segments and geographi
Business segments and geographic information | 3 Months Ended |
Sep. 24, 2021 | |
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 September 24, 2021, 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. The following table presents long-lived assets by the country in which they are based: (amount in thousands) September 24, June 25, Long-Lived Assets: Thailand $ 221,512 $ 190,843 U.S. 26,883 27,403 China 15,929 14,977 Israel 4,931 5,271 U.K. 1,889 2,223 Cayman Islands 515 412 $ 271,659 $ 241,129 Significant customers The Company had three customers that each contributed to 10% or more of the Company's total trade accounts receivable as of September 24, 2021 and June 25, 2021. |
Accounting policies (Policies)
Accounting policies (Policies) | 3 Months Ended |
Sep. 24, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of September 24, 2021 and for the three months ended September 24, 2021 and September 25, 2020 include normal recurring adjustments necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 25, 2021. The balance sheet as of June 25, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three months ended September 24, 2021 may not be indicative of results for the year ending June 24, 2022 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 the Company's 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 upon the occurrence of 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 September 24, 2021 and September 25, 2020 each consisted of 13 weeks. Fiscal year 2022 will be comprised of 52 weeks and will end on June 24, 2022. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “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. The Company adopted this standard in the first quarter of fiscal year 2022 with no material impact on its unaudited condensed consolidated financial statements. |
Revenues from contracts with _2
Revenues from contracts with customers (Tables) | 3 Months Ended |
Sep. 24, 2021 | |
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 Three Months Ended As a % of Total North America U.S. 245,274 206,950 Others 1,316 452 Total revenue in North America 246,590 45.4 % 207,402 47.5 % Asia-Pacific and others India 64,932 (1) 19 Malaysia 51,749 43,911 Israel 27,634 30,115 Hong Kong 21,031 23,505 Japan 14,977 20,332 China 13,635 13,787 Others 12,225 13,977 Total revenue in Asia-Pacific and others 206,183 37.9 % 145,646 33.4 % Europe Ireland 49,484 53,611 U.K. 19,578 15,311 Germany 8,425 5,799 Others 13,062 8,870 Total revenue in Europe $ 90,549 16.7 % $ 83,591 19.1 % Total revenue $ 543,322 100.0 % $ 436,639 100.0 % (1) Due to change in bill-to-location for certain customer. |
Revenues by End Market | The following table presents revenues by end market. (amount in thousands, except percentages) Three Months Ended As a % of Total Three Months Ended As a % of Total Optical communications $ 427,301 78.6 % $ 343,917 78.8 % Lasers, sensors and other 116,021 21.4 % 92,722 21.2 % Total $ 543,322 100.0 % $ 436,639 100.0 % |
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 three months ended September 24, 2021: (amount in thousands) Contract Beginning balance, June 25, 2021 $ 11,878 Revenue recognized 13,197 Amounts collected or invoiced (11,955) Ending balance, September 24, 2021 $ 13,120 (amount in thousands) Contract Beginning balance, June 25, 2021 $ 1,680 Advance payment received during the period 1,941 Revenue recognized (1,866) Ending balance, September 24, 2021 $ 1,755 |
Earnings per ordinary share (Ta
Earnings per ordinary share (Tables) | 3 Months Ended |
Sep. 24, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Ordinary Share | Earnings per ordinary share was calculated as follows: Three Months Ended (amount in thousands, except per share amounts) September 24, September 25, Net income attributable to shareholders $ 44,651 $ 33,051 Weighted-average number of ordinary shares outstanding (thousands of shares) 36,877 36,818 Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares) 451 565 Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares) 37,328 37,383 Basic earnings per ordinary share $ 1.21 $ 0.90 Diluted earnings per ordinary share $ 1.20 $ 0.88 Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1) — 61 (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) | 3 Months Ended |
Sep. 24, 2021 | |
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 September 24, 2021 Cash $ 223,409 $ — $ 223,409 $ — $ — Cash equivalents 46,502 — 46,502 — — Liquidity funds 31,278 — — — 31,278 Corporate debt securities 203,069 9 — 203,078 — U.S. agency and U.S. Treasury securities 24,058 87 — 24,145 — Total $ 528,316 $ 96 $ 269,911 $ 227,223 $ 31,278 As of June 25, 2021 Cash $ 222,664 $ — $ 222,664 $ — $ — Cash equivalents 80,305 — 80,305 — — Liquidity funds 30,000 1,226 — — 31,226 Certificates of deposit 10,500 — — — 10,500 Corporate debt securities 171,626 164 — 171,790 — U.S. agency and U.S. Treasury securities 31,301 146 — 31,447 — Total $ 546,396 $ 1,536 $ 302,969 $ 203,237 $ 41,726 |
Summary of Cost and Estimated Fair Value of Short-term Investments Classified as Available-for-sale Securities | 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 September 24, 2021 and June 25, 2021: September 24, 2021 June 25, 2021 (amount in thousands) Carrying Fair Value Carrying Fair Value Due within one year $ 69,219 $ 69,211 $ 30,000 $ 31,226 Due between one to five years 189,186 189,290 202,927 203,237 Total $ 258,405 $ 258,501 $ 232,927 $ 234,463 |
Summary of Carrying Cost of Short-term Investments Classified as Held-to-maturity Securities | The following table summarizes the carrying cost of short-term investments classified as held-to-maturity securities based on stated effective maturities as of September 24, 2021 and June 25, 2021: (amount in thousands) As of September 24, 2021 As of June 25, 2021 Due within one year $ — (1) $ 10,500 Due between one to five years — — Total $ — $ 10,500 (1) Short-term investments classified as held-to-maturity securities as of June 25, 2021 matured in July 2021. |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 3 Months Ended |
Sep. 24, 2021 | |
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 September 24, 2021 Assets Cash equivalents $ — $ 46,502 $ — $ 46,502 Liquidity funds — 31,278 — 31,278 Corporate debt securities — 203,078 — 203,078 U.S. agency and U.S. treasury securities — 24,145 — 24,145 Total $ — $ 305,003 $ — $ 305,003 Liabilities Derivative liabilities – current portion $ — $ 7,798 $ — $ 7,798 Derivative liabilities – non-current portion — 1,554 — 1,554 Total $ — $ 9,352 (1) $ — $ 9,352 Fair Value Measurements at Reporting Date Using (amount in thousands) Level 1 Level 2 Level 3 Total As of June 25, 2021 Assets Cash equivalents $ — $ 80,305 $ — $ 80,305 Liquidity funds — 31,226 — 31,226 Corporate debt securities — 171,790 — 171,790 U.S. agency and U.S. Treasury securities — 31,447 — 31,447 Derivative assets – current portion — 1 (2) — 1 Total $ — $ 314,769 $ — $ 314,769 Liabilities Derivative liabilities – current portion $ — $ 5,654 $ — $ 5,654 Derivative liabilities – non-current portion — 1,977 — 1,977 Total $ — $ 7,631 (3) $ — $ 7,631 (1) Foreign currency forward contracts with a notional amount of $135.0 million and Canadian dollars 0.2 million and two interest rate swap agreements with an aggregate notional amount of $125.1 million. (2) Foreign currency forward contracts with an aggregate notional amount of $2.0 million. (3) Foreign currency forward contracts with an aggregate notional amount of $128.0 million and Canadian dollars 0.4 million and 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 (amount in thousands) Financial September 24, September 25, Derivatives gain (loss) recognized in other comprehensive income (loss): Foreign currency forward contracts Other comprehensive $ (2,136) $ (2,340) Interest rate swaps Other comprehensive 408 357 Total derivatives gain (loss) recognized in other comprehensive income (loss) $ (1,728) $ (1,983) Derivatives loss (gain) reclassified from accumulated other comprehensive income (loss) into earnings: Foreign currency forward contracts Cost of revenues $ 2,115 $ (2,057) Foreign currency forward contracts SG&A 88 (87) Foreign currency forward contracts Foreign exchange loss, net (1,424) 1,278 Interest rate swaps Interest expense (268) (359) Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings $ 511 $ (1,225) Change in net unrealized gain (loss) on derivatives instruments $ (1,217) $ (3,208) |
Schedule of Derivative Financial Instruments | The following table provides the fair values of the Company’s derivative financial instruments for the periods presented: September 24, June 25, (amount in thousands) Derivative Derivative Derivative Derivative Derivatives not designated as hedging instruments Foreign currency forward and option contracts $ — $ (2,149) $ — $ (1,379) Interest rate swaps — — — — Derivatives designated as hedging instruments Foreign currency forward contracts — (4,063) 1 (2,703) Interest rate swaps — (3,140) — (3,549) Derivatives, gross balances $ — $ (9,352) $ 1 $ (7,631) |
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) | 3 Months Ended |
Sep. 24, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | (amount in thousands) As of September 24, As of June 25, Raw materials $ 234,923 $ 196,345 Work in progress 190,964 174,654 Finished goods 15,194 15,471 Goods in transit 24,170 35,663 Inventories $ 465,251 $ 422,133 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 24, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | As of September 24, 2021, the maturities of the Company’s operating lease liabilities were as follows: (amount in thousands) As of September 24, 2022 (remaining 9 months) $ 2,085 2023 2,686 2024 1,257 2025 43 Total undiscounted lease payments 6,071 Less imputed interest (238) Total present value of lease liabilities $ 5,833 (1) (1) Included current portion of operating lease liabilities of $2.6 million. |
Summary of Additional Information Related to Operating and Finance Lease | The following summarizes additional information related to the Company’s operating leases: As of September 24, 2021 As of June 25, 2021 Weighted-average remaining lease term (in years) 2.5 2.7 Weighted-average discount rate 3.5 % 3.5 % |
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 months ended September 24, 2021 and September 25, 2020: Three Months Ended (amount in thousands) September 24, September 25, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 689 $ 594 Financing cash flows from finance leases $ — $ 100 ROU assets obtained in exchange for lease liabilities $ 38 $ 64 |
Intangibles (Tables)
Intangibles (Tables) | 3 Months Ended |
Sep. 24, 2021 | |
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 September 24, 2021 Software $ 9,915 $ (6,902) $ — $ 3,013 Customer relationships 4,373 (3,307) 28 1,094 Backlog 119 (119) — — Total intangibles $ 14,407 $ (10,328) $ 28 $ 4,107 (amount in thousands) Gross Accumulated Foreign Net As of June 25, 2021 Software $ 9,767 $ (6,632) $ — $ 3,135 Customer relationships 4,373 (3,195) 58 1,236 Backlog 119 (119) — — Total intangibles $ 14,259 $ (9,946) $ 58 $ 4,371 |
Weighted-Average Remaining Life of Intangible Assets | The weighted-average remaining life of customer relationships was: (years) As of September 24, 2021 As of June 25, 2021 Customer relationships 3.7 3.9 |
Estimated Future Amortization of intangibles | Based on the carrying amount of intangibles as of September 24, 2021, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows: (amount in thousands) 2022 (remaining 9 months) $ 1,077 2023 1,196 2024 868 2025 586 Thereafter 380 Total $ 4,107 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Sep. 24, 2021 | |
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 September 24, 2021 As of June 25, 2021 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 $ 36,562 $ 39,609 Less: Current portion (12,188) (12,188) Less: Unamortized debt issuance costs – non-current portion (55) (63) Long-term borrowings, non-current portion, net $ 24,319 $ 27,358 (1) We have entered into interest rate swaps that effectively fix a series of our future interest payments on our term loans. Refer to Note 6. |
Movements of Long-Term Loans | The movements of long-term borrowings for the three months ended September 24, 2021 and September 25, 2020 were as follows: Three Months Ended (amount in thousands) September 24, September 25, Opening balance $ 39,609 $ 51,797 Borrowings during the period — — Repayments during the period (3,047) (3,047) Closing balance $ 36,562 $ 48,750 |
Future Maturities of Long-Term Debt | As of September 24, 2021, future maturities of long-term borrowings during each fiscal year were as follows: (amount in thousands) 2022 (remaining 9 months) $ 9,141 2023 15,233 2024 9,141 2025 3,047 Total $ 36,562 |
Share-based compensation (Table
Share-based compensation (Tables) | 3 Months Ended |
Sep. 24, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Effect of Recording Share-Based Compensation Expense | The effect of recording share-based compensation expense for the three months ended September 24, 2021 and September 25, 2020 was as follows: Three Months Ended (amount in thousands) September 24, September 25, Share-based compensation expense by type of award: Restricted share units $ 4,924 $ 5,249 Performance share units 4,368 778 Total share-based compensation expense 9,292 6,027 Tax effect on share-based compensation expense — — Net effect on share-based compensation expense $ 9,292 $ 6,027 |
Share-Based Compensation Expense Recorded in Condensed Consolidated Statements of Operations and Comprehensive Income | Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended (amount in thousands) September 24, September 25, Cost of revenue $ 1,975 $ 1,825 Selling, general and administrative expense 7,317 4,202 Total share-based compensation expense $ 9,292 $ 6,027 |
Restricted Share Unit Activity | The following table summarizes restricted share unit activity under the Equity Incentive Plans: Number Weighted- Balance as of June 25, 2021 641,875 $ 55.74 Granted 137,165 $ 101.05 Issued (259,533) $ 50.76 Forfeited (9,084) $ 67.97 Balance as of September 24, 2021 510,423 $ 70.23 Number Weighted- Balance as of June 26, 2020 797,757 $ 46.88 Granted 171,946 $ 70.05 Issued (268,728) $ 43.84 Forfeited (7,199) $ 50.40 Balance as of September 25, 2020 693,776 $ 53.76 |
Performance Share Unit Activity | The following table summarizes performance share unit activity under the Equity Incentive Plans: Number Weighted- Balance as of June 25, 2021 427,028 $ 57.82 Granted 110,832 $ 101.05 Issued (190,213) $ 48.65 Forfeited (52,097) $ 48.65 Balance as of September 24, 2021 295,550 $ 81.55 Number Weighted- Balance as of June 26, 2020 440,140 $ 48.37 Granted 179,008 $ 70.05 Issued (82,185) $ 48.02 Forfeited (115,645) $ 48.02 Balance as of September 25, 2020 421,318 $ 57.74 |
Accumulated other comprehensi_2
Accumulated other comprehensive income (loss) (Tables) | 3 Months Ended |
Sep. 24, 2021 | |
Equity [Abstract] | |
Changes in AOCI, Net of Tax | The changes in AOCI for the three months ended September 24, 2021 and September 25, 2020 were as follows: (amount in thousands) Unrealized net Unrealized net Retirement Foreign Total Balance as of June 25, 2021 $ 308 $ (4,504) $ (1,425) $ (645) $ (6,266) Other comprehensive income before reclassification adjustment (200) (1,728) — (164) (2,092) Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income (13) 511 198 — 696 Tax effects — — — — — Other comprehensive income (loss) $ (213) $ (1,217) $ 198 $ (164) $ (1,396) Balance as of September 24, 2021 $ 95 $ (5,721) $ (1,227) $ (809) $ (7,662) (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 (325) (1,983) — 603 (1,705) Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income — (1,225) 173 — (1,052) Tax effects — — — — — Other comprehensive income (loss) $ (325) $ (3,208) $ 173 $ 603 $ (2,757) Balance as of September 25, 2020 $ 1,165 $ (2,606) $ (1,836) $ (627) $ (3,904) |
Business segments and geograp_2
Business segments and geographic information (Tables) | 3 Months Ended |
Sep. 24, 2021 | |
Segment Reporting [Abstract] | |
Long-lived Assets by Geographic Areas | The following table presents long-lived assets by the country in which they are based: (amount in thousands) September 24, June 25, Long-Lived Assets: Thailand $ 221,512 $ 190,843 U.S. 26,883 27,403 China 15,929 14,977 Israel 4,931 5,271 U.K. 1,889 2,223 Cayman Islands 515 412 $ 271,659 $ 241,129 |
Revenues from contracts with _3
Revenues from contracts with customers - Disaggregation of revenue by geographical regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 543,322 | $ 436,639 |
Geographic concentration risk | Revenue from contract with customer benchmark | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percentage | 100.00% | 100.00% |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 246,590 | $ 207,402 |
North America | Geographic concentration risk | Revenue from contract with customer benchmark | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percentage | 45.40% | 47.50% |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 245,274 | $ 206,950 |
Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,316 | 452 |
Asia-Pacific and others | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 206,183 | $ 145,646 |
Asia-Pacific and others | Geographic concentration risk | Revenue from contract with customer benchmark | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percentage | 37.90% | 33.40% |
India | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 64,932 | $ 19 |
Malaysia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 51,749 | 43,911 |
Israel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 27,634 | 30,115 |
Hong Kong | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 21,031 | 23,505 |
Japan | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,977 | 20,332 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,635 | 13,787 |
Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 12,225 | 13,977 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 90,549 | $ 83,591 |
Europe | Geographic concentration risk | Revenue from contract with customer benchmark | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percentage | 16.70% | 19.10% |
Ireland | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 49,484 | $ 53,611 |
U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 19,578 | 15,311 |
Germany | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8,425 | 5,799 |
Others | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 13,062 | $ 8,870 |
Revenues from contracts with _4
Revenues from contracts with customers - Revenues by end market (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 543,322 | $ 436,639 |
Revenue from contract with customer benchmark | Geographic concentration risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percentage | 100.00% | 100.00% |
Optical communications | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 427,301 | $ 343,917 |
Optical communications | Revenue from contract with customer benchmark | Geographic concentration risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percentage | 78.60% | 78.80% |
Lasers, sensors and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 116,021 | $ 92,722 |
Lasers, sensors and other | Revenue from contract with customer benchmark | Geographic concentration risk | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percentage | 21.40% | 21.20% |
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 | 3 Months Ended |
Sep. 24, 2021USD ($) | |
Contract Assets | |
Beginning balance, June 25, 2021 | $ 11,878 |
Revenue recognized | 13,197 |
Amounts collected or invoiced | (11,955) |
Ending balance, September 24, 2021 | 13,120 |
Contract Liabilities | |
Beginning balance, June 25, 2021 | 1,680 |
Advance payment received during the period | 1,941 |
Revenue recognized | 1,866 |
Ending balance, September 24, 2021 | $ 1,755 |
Earnings per ordinary share (De
Earnings per ordinary share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Earnings Per Share [Abstract] | ||
Net income attributable to shareholders | $ 44,651 | $ 33,051 |
Weighted-average number of ordinary shares outstanding (in shares) | 36,877 | 36,818 |
Incremental shares arising from the assumed vesting of restricted share units and performance share units (in shares) | 451 | 565 |
Weighted-average number of ordinary shares for diluted earnings per ordinary share (in shares) | 37,328 | 37,383 |
Basic earnings per share (in USD per share) | $ 1.21 | $ 0.90 |
Diluted earnings per share (in USD per share) | $ 1.20 | $ 0.88 |
Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (in shares) | 0 | 61 |
Cash, cash equivalents and sh_3
Cash, cash equivalents and short-term investments (Detail) - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 | Sep. 25, 2020 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents and marketable securities, carrying cost | $ 528,316 | $ 546,396 | |
Unrealized Gain/ (Loss) | 96 | 1,536 | |
Cash and cash equivalents | 269,911 | 302,969 | $ 189,201 |
Marketable Securities | 227,223 | 203,237 | |
Other Investments | 31,278 | 41,726 | |
Certificates of deposit | |||
Cash and Cash Equivalents [Line Items] | |||
Marketable securities, carrying cost | 10,500 | ||
Other Investments | 10,500 | ||
Cash | |||
Cash and Cash Equivalents [Line Items] | |||
Carrying Cost | 223,409 | 222,664 | |
Cash and cash equivalents | 223,409 | 222,664 | |
Cash equivalents | |||
Cash and Cash Equivalents [Line Items] | |||
Carrying Cost | 46,502 | 80,305 | |
Cash and cash equivalents | 46,502 | 80,305 | |
Liquidity funds | |||
Cash and Cash Equivalents [Line Items] | |||
Carrying Cost | 31,278 | 30,000 | |
Unrealized Gain/ (Loss) | 1,226 | ||
Other Investments | 31,278 | 31,226 | |
Corporate debt securities | |||
Cash and Cash Equivalents [Line Items] | |||
Marketable securities, carrying cost | 203,069 | 171,626 | |
Unrealized Gain/ (Loss) | 9 | 164 | |
Marketable Securities | 203,078 | 171,790 | |
U.S. agency and U.S. Treasury securities | |||
Cash and Cash Equivalents [Line Items] | |||
Marketable securities, carrying cost | 24,058 | 31,301 | |
Unrealized Gain/ (Loss) | 87 | 146 | |
Marketable Securities | $ 24,145 | $ 31,447 |
Cash, cash equivalents and sh_4
Cash, cash equivalents and short-term investments - Additional Information (Detail) | 3 Months Ended |
Sep. 24, 2021USD ($) | |
Cash, cash equivalents and marketable securities [Line Items] | |
Impairment losses | $ 0 |
Minimum | |
Cash, cash equivalents and marketable securities [Line Items] | |
Maturities period of marketable securities | 3 months |
Maximum | |
Cash, cash equivalents and marketable securities [Line Items] | |
Maturities period of marketable securities | 3 years |
Cash, cash equivalents and sh_5
Cash, cash equivalents and short-term investments - Available-for-sale securities based on stated effective maturities (Detail) - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 |
Investments Classified by Contractual Maturity Date [Line Items] | ||
Fair value, total | $ 227,223 | $ 203,237 |
Carrying Cost | ||
Investments Classified by Contractual Maturity Date [Line Items] | ||
Carrying cost, due within one year | 69,219 | 30,000 |
Carrying cost, due between one to five years | 189,186 | 202,927 |
Carrying cost, total | 258,405 | 232,927 |
Fair Value | ||
Investments Classified by Contractual Maturity Date [Line Items] | ||
Fair value, due within one year | 69,211 | 31,226 |
Fair value, due between one to five years | 189,290 | 203,237 |
Fair value, total | $ 258,501 | $ 234,463 |
Cash, cash equivalents and sh_6
Cash, cash equivalents and short-term investments - Summary of the Carrying Cost of Short-term Investments Classified as Held-to-maturity Securities (Details) - Carrying Cost - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 |
Cash, cash equivalents and marketable securities [Line Items] | ||
Due within one year | $ 0 | $ 10,500 |
Due between one to five years | 0 | 0 |
Total | $ 0 | $ 10,500 |
Fair value of financial instr_3
Fair value of financial instruments - Fair value on recurring basis (Detail) $ in Thousands, $ in Millions | Sep. 24, 2021USD ($) | Sep. 24, 2021CAD ($) | Jun. 25, 2021USD ($) | Jun. 25, 2021CAD ($) |
Foreign currency forward contracts | ||||
Liabilities | ||||
Derivative assets, notional amount | $ 135,000 | $ 0.2 | ||
Derivative liabilities, notional amount | $ (128,000) | $ (0.4) | ||
Foreign exchange forward liability | ||||
Liabilities | ||||
Derivative assets, notional amount | 2,000 | |||
Fair value, measurements, recurring | ||||
Assets | ||||
Derivative assets | 1 | |||
Total | 305,003 | 314,769 | ||
Liabilities | ||||
Derivative liabilities – current portion | 7,798 | 5,654 | ||
Derivative liabilities – non-current portion | 1,554 | 1,977 | ||
Total | 9,352 | 7,631 | ||
Fair value, measurements, recurring | Interest rate swaps | ||||
Liabilities | ||||
Derivative liabilities, notional amount | (125,100) | |||
Fair value, measurements, recurring | Cash equivalents | ||||
Assets | ||||
Marketable securities | 46,502 | 80,305 | ||
Fair value, measurements, recurring | Liquidity funds | ||||
Assets | ||||
Marketable securities | 31,278 | 31,226 | ||
Fair value, measurements, recurring | Corporate debt securities | ||||
Assets | ||||
Marketable securities | 203,078 | 171,790 | ||
Fair value, measurements, recurring | U.S. agency and U.S. Treasury securities | ||||
Assets | ||||
Marketable securities | 24,145 | 31,447 | ||
Fair value, measurements, recurring | Level 1 | ||||
Assets | ||||
Derivative assets | 0 | |||
Total | 0 | 0 | ||
Liabilities | ||||
Derivative liabilities – current portion | 0 | 0 | ||
Derivative liabilities – non-current portion | 0 | 0 | ||
Total | 0 | 0 | ||
Fair value, measurements, recurring | Level 1 | Cash equivalents | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Fair value, measurements, recurring | Level 1 | Liquidity funds | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Fair value, measurements, recurring | Level 1 | Corporate debt securities | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Fair value, measurements, recurring | Level 1 | U.S. agency and U.S. Treasury securities | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Fair value, measurements, recurring | Level 2 | ||||
Assets | ||||
Derivative assets | 1 | |||
Total | 305,003 | 314,769 | ||
Liabilities | ||||
Derivative liabilities – current portion | 7,798 | 5,654 | ||
Derivative liabilities – non-current portion | 1,554 | 1,977 | ||
Total | 9,352 | 7,631 | ||
Fair value, measurements, recurring | Level 2 | Cash equivalents | ||||
Assets | ||||
Marketable securities | 46,502 | 80,305 | ||
Fair value, measurements, recurring | Level 2 | Liquidity funds | ||||
Assets | ||||
Marketable securities | 31,278 | 31,226 | ||
Fair value, measurements, recurring | Level 2 | Corporate debt securities | ||||
Assets | ||||
Marketable securities | 203,078 | 171,790 | ||
Fair value, measurements, recurring | Level 2 | U.S. agency and U.S. Treasury securities | ||||
Assets | ||||
Marketable securities | 24,145 | 31,447 | ||
Fair value, measurements, recurring | Level 3 | ||||
Assets | ||||
Derivative assets | 0 | |||
Total | 0 | 0 | ||
Liabilities | ||||
Derivative liabilities – current portion | 0 | 0 | ||
Derivative liabilities – non-current portion | 0 | 0 | ||
Total | 0 | 0 | ||
Fair value, measurements, recurring | Level 3 | Cash equivalents | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Fair value, measurements, recurring | Level 3 | Liquidity funds | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Fair value, measurements, recurring | Level 3 | Corporate debt securities | ||||
Assets | ||||
Marketable securities | 0 | 0 | ||
Fair value, measurements, recurring | Level 3 | 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 | 12 Months Ended | |||||
Sep. 24, 2021USD ($)contract | Sep. 25, 2020USD ($) | Jun. 25, 2021USD ($)contract | Sep. 24, 2021CAD ($)contract | Jun. 25, 2021CAD ($)contract | Sep. 03, 2019 | Jul. 25, 2018 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||
Fixed interest rate | 2.86% | ||||||
Foreign currency forward contracts | |||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||
Gains or losses from accumulated other comprehensive income expected to be reclassified | $ (4.1) | $ 2.7 | |||||
Unrealized gain (loss) on derivatives | $ (0.6) | $ (1.5) | |||||
Foreign currency forward contracts | Designated as hedging instrument | Thailand, baht | |||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||
Number of forward contracts outstanding | contract | 135 | 130 | 135 | 130 | |||
Derivative notional amount | $ 135 | $ 130 | |||||
Foreign currency forward contracts | Designated as hedging instrument | Canada, dollars | |||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||
Derivative notional amount | $ 0.2 | $ 0.4 | |||||
Interest rate swaps | |||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||
Derivative notional amount | 125.1 | 125.1 | |||||
Gains or losses from accumulated other comprehensive income expected to be reclassified | $ (0.9) | $ (0.8) | |||||
Interest rate swaps | Bank of Ayudhya Public Company | Bank of America Credit Facility | |||||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||||||
Debt instrument stated interest percentage | 4.36% |
Fair Value - Schedule impacts o
Fair Value - Schedule impacts of derivative gain (loss) of cash flow hedges (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings: | ||
Total derivatives gain (loss) recognized in other comprehensive income (loss) | $ (1,728) | $ (1,983) |
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings | 511 | (1,225) |
Change in net unrealized gain (loss) on derivatives instruments | (1,217) | (3,208) |
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 | 2,115 | (2,057) |
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 | 88 | (87) |
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 | (1,424) | 1,278 |
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) | (2,136) | (2,340) |
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 | (268) | (359) |
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) | $ 408 | $ 357 |
Fair Value - Schedule of deriva
Fair Value - Schedule of derivative financial instruments (Detail) - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 |
Derivatives designates as hedging instruments: | ||
Derivative assets, gross balances | $ 0 | $ 1 |
Derivative liabilities, gross balances | (9,352) | (7,631) |
Foreign currency forward and option contracts | ||
Derivatives not designated as hedging instruments | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | (2,149) | (1,379) |
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 | (3,140) | (3,549) |
Foreign currency forward contracts | ||
Derivatives designates as hedging instruments: | ||
Derivative Assets | 0 | 1 |
Derivative Liabilities | $ (4,063) | $ (2,703) |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 234,923 | $ 196,345 |
Work in progress | 190,964 | 174,654 |
Finished goods | 15,194 | 15,471 |
Goods in transit | 24,170 | 35,663 |
Inventories | $ 465,251 | $ 422,133 |
Restricted cash - Additional In
Restricted cash - Additional Information (Detail) $ in Thousands, ¥ in Millions | Sep. 24, 2021USD ($) | Sep. 24, 2021CNY (¥) | Jun. 25, 2021USD ($) | Jun. 25, 2021CNY (¥) |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Long-term restricted cash | $ 155 | $ 154 | ||
Bank guarantees | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Amount of cash collateral | $ 200 | $ 200 | ||
China | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Long-term restricted cash | ¥ | ¥ 1 | ¥ 1 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Rental expense for long-term leases | $ 0.7 | $ 0.6 |
Minimum | ||
Lessee operating lease option to extend term | 1 year | |
Maximum | ||
Lessee operating lease option to extend term | 5 years |
Leases - Schedule of operating
Leases - Schedule of operating lease liabilities (Detail) - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 |
Leases [Abstract] | ||
2022 (remaining 9 months) | $ 2,085 | |
2023 | 2,686 | |
2024 | 1,257 | |
2025 | 43 | |
Total undiscounted lease payments | 6,071 | |
Less imputed interest | (238) | |
Total present value of lease liabilities | 5,833 | |
Operating lease liabilities, current portion | $ 2,613 | $ 2,593 |
Leases - Summary of additional
Leases - Summary of additional information related to operating and finance lease (Detail) | Sep. 24, 2021 | Jun. 25, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 2 years 6 months | 2 years 8 months 12 days |
Weighted-average discount rate | 3.50% | 3.50% |
Leases - Schedule of supplement
Leases - Schedule of supplemental cash flow information related to operating lease (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 689 | $ 594 |
Financing cash flows from finance leases | 0 | 100 |
ROU assets obtained in exchange for lease liabilities | $ 38 | $ 64 |
Intangibles (Detail)
Intangibles (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Sep. 24, 2021 | Dec. 25, 2020 | Jun. 25, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 14,407 | $ 14,259 | |
Accumulated Amortization | (10,328) | (9,946) | |
Foreign Currency Translation Adjustment | 28 | $ 58 | |
Total | 4,107 | 4,371 | |
Software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 9,915 | 9,767 | |
Accumulated Amortization | (6,902) | (6,632) | |
Total | 3,013 | 3,135 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 4,373 | 4,373 | |
Accumulated Amortization | (3,307) | (3,195) | |
Foreign Currency Translation Adjustment | 28 | $ 58 | |
Total | 1,094 | 1,236 | |
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 | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense related to intangibles | $ 0.4 | $ 0.2 |
Intangibles - Weighted-average
Intangibles - Weighted-average remaining life of intangible assets (Detail) | 3 Months Ended | 12 Months Ended |
Sep. 24, 2021 | Jun. 25, 2021 | |
Customer relationships | ||
Finite-Lived Intangible Liabilities [Line Items] | ||
Weighted average remaining life of acquired intangible assets | 3 years 8 months 12 days | 3 years 10 months 24 days |
Intangibles - Estimated future
Intangibles - Estimated future amortization of intangibles (Detail) - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (remaining 9 months) | $ 1,077 | |
2023 | 1,196 | |
2024 | 868 | |
2025 | 586 | |
Thereafter | 380 | |
Total | $ 4,107 | $ 4,371 |
Borrowings - Total borrowings,
Borrowings - Total borrowings, including current portion and non-current portion of long-term borrowings (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Jun. 25, 2021 | |
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 | (55) | (63) |
Long-term borrowings, non-current portion, net | $ 24,319 | 27,358 |
Loan payable due June 2024 | ||
Debt Instrument [Line Items] | ||
Rate | 3-month LIBOR +1.35% per annum | |
Long-term debt | $ 36,562 | $ 39,609 |
Loan payable due June 2024 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.35% |
Borrowings - Movements of long-
Borrowings - Movements of long-term loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Movements of Long-term Borrowings [Roll Forward] | ||
Opening balance | $ 39,609 | $ 51,797 |
Borrowings during the period | 0 | 0 |
Repayments during the period | (3,047) | (3,047) |
Closing balance | $ 36,562 | $ 48,750 |
Borrowings - Future maturities
Borrowings - Future maturities of long-term debt (Detail) - USD ($) $ in Thousands | Sep. 24, 2021 | Jun. 25, 2021 | Sep. 25, 2020 | Jun. 26, 2020 |
Debt Disclosure [Abstract] | ||||
2022 (remaining 9 months) | $ 9,141 | |||
2023 | 15,233 | |||
2024 | 9,141 | |||
2025 | 3,047 | |||
Total | $ 36,562 | $ 39,609 | $ 48,750 | $ 51,797 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | 3 Months Ended | ||||
Sep. 24, 2021USD ($) | Sep. 25, 2020USD ($) | Sep. 27, 2019USD ($) | Sep. 03, 2019USD ($) | Aug. 20, 2019USD ($) | |
Line of Credit Facility [Line Items] | |||||
Line of credit facility borrowing capacity | $ 160,900,000 | ||||
Repayments of long term debt | $ 3,047,000 | $ 3,047,000 | |||
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 | $ 300,000 | $ 200,000 | |||
Bank of Ayudhya Public Company Limited | Term loan agreement | |||||
Line of Credit Facility [Line Items] | |||||
Minimum service coverage ratio | 1.25 | ||||
Service coverage ratio, minimum at payment of a dividend | 1.50 | ||||
Loan to value ratio | 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 | $ 110,000,000 | |||
Term loan agreement | |||||
Line of Credit Facility [Line Items] | |||||
Long term debt outstanding | $ 36,600,000 | ||||
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, and 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 of 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 1.5 times. As of September 24, 2021, the Company was in compliance with all of its financial covenants under the Term Loan Agreement. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 24, 2021 | Sep. 25, 2020 | Jun. 25, 2021 | |
Income Tax Disclosure [Abstract] | |||
Liability for uncertain tax positions including accrued interest and penalties | $ 1.1 | $ 0.9 | |
Corporate effective income tax rate | 1.30% | 4.80% |
Share-based compensation - Effe
Share-based compensation - Effect of recording share-based compensation expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Share-based compensation expense by type of award: | ||
Restricted share units | $ 4,924 | $ 5,249 |
Performance share units | 4,368 | 778 |
Total share-based compensation expense | 9,292 | 6,027 |
Tax effect on share-based compensation expense | 0 | 0 |
Net effect on share-based compensation expense | $ 9,292 | $ 6,027 |
Share-based compensation - Shar
Share-based compensation - Share-based compensation expense recorded in condensed consolidated statements of operations and comprehensive income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 9,292 | $ 6,027 |
Cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 1,975 | 1,825 |
SG&A | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 7,317 | $ 4,202 |
Share-based compensation - Addi
Share-based compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 24, 2021 | Sep. 25, 2020 | 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) | 197,948 | 142,221 | ||
Tax withholdings related to net share settlement of restricted share units | $ 19,065 | $ 9,920 | ||
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 | 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 | Vest on the first of January | Non-employee director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 100.00% | |||
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 | Vest at the end of the performance period | Executive of the Company | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 0.00% | |||
Performance share units | Vest at the end of the performance period | Executive of the Company | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 100.00% | |||
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 2020 plan | Restricted share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share units outstanding (in shares) | 315,203 | |||
Stock Plan 2020 | Restricted share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share units outstanding (in shares) | 2,260,077 | |||
Stock Plan 2020 | Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share units outstanding (in shares) | 295,550 | |||
Stock Plan 2010 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of ordinary shares available for grant (in shares) | 0 | |||
Stock Plan 2010 | Restricted share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share units outstanding (in shares) | 183,056 | |||
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 | |||
Equity Incentive 2017 Plan | Restricted share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share units outstanding (in shares) | 12,164 | |||
Equity Incentive Plans | Restricted share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense | $ 18,900 | |||
Unrecognized compensation expense, weighted-average period for recognition | 2 years 8 months 12 days | |||
Equity Incentive Plans | Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense | $ 15,700 | |||
Unrecognized compensation expense, weighted-average period for recognition | 1 year 6 months |
Share-based compensation - Rest
Share-based compensation - Restricted share unit activity (Detail) - Stock Plan 2010 and 2017 - Restricted share units - $ / shares | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Number of restricted share units | ||
Number of share units, beginning balance (in shares) | 641,875 | 797,757 |
Number of share units, granted (in shares) | 137,165 | 171,946 |
Number of share units, issued (in shares) | (259,533) | (268,728) |
Number of share units, forfeited (in shares) | (9,084) | (7,199) |
Number of share units, ending balance (in shares) | 510,423 | 693,776 |
Weighted- Average Grant Date Fair Value Per Share | ||
Weighted-average grant date fair value per share, beginning balance (in USD per share) | $ 55.74 | $ 46.88 |
Weighted-average grant date fair value per share, granted (in USD per share) | 101.05 | 70.05 |
Weighted-average grant date fair value per share, issued (in USD per share) | 50.76 | 43.84 |
Weighted-average grant date fair value per share, forfeited (in USD per share) | 67.97 | 50.40 |
Weighted-average grant date fair value per share, ending balance (in USD per share) | $ 70.23 | $ 53.76 |
Share-based compensation - Perf
Share-based compensation - Performance share unit activity (Detail) - Stock Plan 2010 and 2017 - Performance share units - $ / shares | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
Number of performance share units | ||
Number of share units, beginning balance (in shares) | 427,028 | 440,140 |
Number of share units, granted (in shares) | 110,832 | 179,008 |
Number of share units, issued (in shares) | (190,213) | (82,185) |
Number of share units, forfeited (in shares) | (52,097) | (115,645) |
Number of share units, ending balance (in shares) | 295,550 | 421,318 |
Weighted- Average Grant Date Fair Value Per Share | ||
Weighted-average grant date fair value per share, beginning balance (in USD per share) | $ 57.82 | $ 48.37 |
Weighted-average grant date fair value per share, granted (in USD per share) | 101.05 | 70.05 |
Weighted-average grant date fair value per share, issued (in USD per share) | 48.65 | 48.02 |
Weighted-average grant date fair value per share, forfeited (in USD per share) | 48.65 | 48.02 |
Weighted-average grant date fair value per share, ending balance (in USD per share) | $ 81.55 | $ 57.74 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | |||||||
Sep. 24, 2021 | Sep. 25, 2020 | Jun. 25, 2021 | Aug. 31, 2020 | Jun. 26, 2020 | May 31, 2019 | Feb. 28, 2018 | Aug. 31, 2017 | |
Shareholders Equity [Line Items] | ||||||||
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||||
Ordinary shares, par value (in USD per share) | $ 0.01 | $ 0.01 | ||||||
Preferred shares, shares authorized (in shares) | 5,000,000 | 5,000,000 | ||||||
Preferred shares, par value (in USD per share) | $ 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 | $ 81,200,000 | $ 168,500,000 | ||||||
1999 and 2010 Stock Plan | ||||||||
Shareholders Equity [Line Items] | ||||||||
Ordinary shares issued upon vesting of restricted shares (in shares) | 251,798 | 208,692 |
Accumulated other comprehensi_3
Accumulated other comprehensive income (loss) - Changes in AOCI, net of tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2021 | Sep. 25, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,112,520 | $ 974,409 |
Other comprehensive income before reclassification adjustment | (2,092) | (1,705) |
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income | 696 | (1,052) |
Total other comprehensive income (loss), net of tax | (1,396) | (2,757) |
Ending balance | 1,146,002 | 1,000,703 |
Unrealized net (Losses)/Gains on Available-for-sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 308 | 1,490 |
Other comprehensive income before reclassification adjustment | (200) | (325) |
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income | (13) | |
Total other comprehensive income (loss), net of tax | (213) | (325) |
Ending balance | 95 | 1,165 |
Unrealized net (Losses)/Gains on Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (4,504) | 602 |
Other comprehensive income before reclassification adjustment | (1,728) | (1,983) |
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income | 511 | (1,225) |
Total other comprehensive income (loss), net of tax | (1,217) | (3,208) |
Ending balance | (5,721) | (2,606) |
Retirement benefit plan - Prior service cost | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,425) | (2,009) |
Other comprehensive income before reclassification adjustment | 0 | |
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income | 198 | 173 |
Total other comprehensive income (loss), net of tax | 198 | 173 |
Ending balance | (1,227) | (1,836) |
Foreign Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (645) | (1,230) |
Other comprehensive income before reclassification adjustment | (164) | 603 |
Total other comprehensive income (loss), net of tax | (164) | 603 |
Ending balance | (809) | (627) |
AOCI Attributable to parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (6,266) | (1,147) |
Total other comprehensive income (loss), net of tax | (1,396) | (2,757) |
Ending balance | $ (7,662) | $ (3,904) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands, ฿ in Millions, ¥ in Millions | 1 Months Ended | |||||||||
Jun. 30, 2021USD ($) | Jun. 30, 2021THB (฿) | Sep. 24, 2021USD ($) | Sep. 24, 2021CNY (¥) | Sep. 24, 2021THB (฿) | Jun. 25, 2021USD ($) | Jun. 25, 2021CNY (¥) | Jun. 25, 2021THB (฿) | May 14, 2021 | Dec. 25, 2020USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Outstanding bank guarantees given by banks on behalf of the company | $ 1,500 | ฿ 50.2 | $ 1,600 | ฿ 50.2 | ||||||
Long-term restricted cash | 155 | 154 | ||||||||
Contractual obligation | $ 50,300 | |||||||||
Aggregate purchase price | $ 13,200 | ฿ 418.8 | ||||||||
Deposit paid in percent | 0.10 | |||||||||
Inventories | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Outstanding commitment to third parties | 992,800 | |||||||||
Bank guarantees | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Amount of cash collateral | 200 | $ 200 | ||||||||
China | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Long-term restricted cash | ¥ | ¥ 1 | ¥ 1 | ||||||||
Thailand | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Outstanding commitment to third parties | 31,000 | |||||||||
Thailand | Construction Contract | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Outstanding commitment to third parties | 20,100 | |||||||||
Thailand | Other Commitments | ||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||
Outstanding commitment to third parties | $ 10,900 |
Business Segments and Geograp_3
Business Segments and Geographic Information - Additional Information (Detail) $ in Thousands | Sep. 24, 2021USD ($)customer | Jun. 25, 2021USD ($)customer |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 271,659 | $ 241,129 |
Number of customers that contributed to more than 10% of trade accounts receivable | customer | 3 | 3 |
Thailand | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 221,512 | $ 190,843 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 26,883 | 27,403 |
China | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 15,929 | 14,977 |
Israel | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 4,931 | 5,271 |
U.K. | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 1,889 | 2,223 |
Cayman Islands | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 515 | $ 412 |