Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 28, 2018	Oct. 31, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 28, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	FN
Entity Registrant Name	FABRINET
Entity Central Index Key	0001408710
Current Fiscal Year End Date	--06-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		36,832,996
Entity Emerging Growth Company	false
Entity Small Business	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 29, 2018
Current assets
Cash and cash equivalents	$ 219,976	$ 158,102
Restricted cash in connection with business acquisition		3,331
Marketable securities	132,383	174,269
Trade accounts receivable, net	258,705	246,912
Contract assets	10,157
Inventory, net	278,397	257,687
Prepaid expenses	10,978	8,061
Other current assets	6,512	5,948
Total current assets	917,108	854,310
Non-current assets
Property, plant and equipment, net	216,849	219,640
Intangibles, net	4,590	4,880
Goodwill	3,822	3,828
Deferred tax assets	5,378	5,280
Other non-current assets	57	80
Total non-current assets	230,696	233,708
Total Assets	1,147,804	1,088,018
Current liabilities
Bank borrowings	3,250	3,250
Trade accounts payable	249,080	220,159
Capital lease liability, current portion	434	451
Income tax payable	2,389	709
Deferred liability in connection with business acquisition		3,331
Accrued payroll, bonus and related expenses	19,484	13,476
Accrued expenses	10,277	9,013
Other payables	20,862	19,728
Total current liabilities	305,776	270,117
Non-current liabilities
Long-term loan from bank	60,125	60,938
Deferred tax liability	2,387	2,284
Capital lease liability, non-current portion	414	516
Severance liabilities	10,835	10,162
Other non-current liabilities	2,110	3,062
Total non-current liabilities	75,871	76,962
Total Liabilities	381,647	347,079
Commitments and contingencies (Note 16)
Shareholders' equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of September 28, 2018 and June 29, 2018)
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 38,118,609 shares and 37,723,733 shares issued; and 36,829,506 shares and 36,434,630 share outstanding as of September 28, 2018 and June 29, 2018, respectively)	381	377
Additional paid-in capital	147,869	151,797
Less: Treasury shares (1,289,103 shares and 1,289,103 shares as of September 28, 2018 and June 29, 2018, respectively)	(42,401)	(42,401)
Accumulated other comprehensive loss	(1,170)	(1,257)
Retained earnings	661,478	632,423
Total Shareholders' Equity	766,157	740,939
Total Liabilities and Shareholders' Equity	$ 1,147,804	$ 1,088,018

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 28, 2018	Jun. 29, 2018
Preferred shares, shares authorized	5,000,000	5,000,000
Preferred shares, par value	$ 0.01	$ 0.01
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, par value	$ 0.01	$ 0.01
Ordinary shares, shares issued	38,118,609	37,723,733
Ordinary shares, shares outstanding	36,829,506	36,434,630
Treasury stocks, shares	1,289,103	1,289,103

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Revenues	$ 377,177	$ 357,313
Cost of revenues	(336,901)	(316,981)
Gross profit	40,276	40,332
Selling, general and administrative expenses	(14,437)	(15,678)
Expenses related to reduction in workforce	(85)
Operating income	25,754	24,654
Interest income	1,444	809
Interest expense	(634)	(853)
Foreign exchange gain (loss), net	3,068	(1,934)
Other income	77	97
Income before income taxes	29,709	22,773
Income tax expense	(1,859)	(1,740)
Net income	27,850	21,033
Other comprehensive (loss) income, net of tax:
Change in net unrealized gain on marketable securities	288	29
Change in net unrealized loss on derivative instruments	(1)	(1)
Change in foreign currency translation adjustment	(200)	526
Total other comprehensive (loss) income, net of tax	87	554
Net comprehensive income	$ 27,937	$ 21,587
Earnings per share
Basic	$ 0.76	$ 0.56
Diluted	$ 0.75	$ 0.55
Weighted-average number of ordinary shares outstanding (thousands of shares)
Basic	36,625	37,447
Diluted	37,140	38,163

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Cash flows from operating activities
Net income for the period	$ 27,850	$ 21,033
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization	7,412	7,419
Loss (Gain) on disposal of property, plant and equipment	46	(131)
Loss on intangibles assets written-off	149
Loss from sales and maturities of available-for-sale securities	178	353
Amortization of investment (premium) discount	(94)	(216)
Amortization of deferred debt issuance costs		150
(Reversal of) allowance for doubtful accounts		(1)
Unrealized (gain) loss on exchange rate and fair value of derivative instruments	(4,232)	2,026
Share-based compensation	4,980	6,920
Deferred income tax	3	(307)
Other non-cash expenses	590	629
Reversal of inventory obsolescence	(478)	(292)
Changes in operating assets and liabilities
Trade accounts receivable	(10,887)	(11,122)
Contract assets	(280)
Inventory	(28,904)	(16,032)
Other current assets and non-current assets	(1,029)	(7,263)
Trade accounts payable	29,182	(11,323)
Income tax payable	1,680	493
Other current liabilities and non-current liabilities	8,427	4,610
Net cash provided by (used in) operating activities	34,593	(3,054)
Cash flows from investing activities
Purchase of marketable securities	(1,955)	(26,969)
Proceeds from sales of marketable securities	24,181	11,730
Proceeds from maturities of marketable securities	19,863	14,947
Purchase of property, plant and equipment	(5,410)	(11,203)
Purchase of intangibles	(78)	(702)
Proceeds from disposal of property, plant and equipment		142
Net cash provided by (used in) investing activities	36,601	(12,055)
Cash flows from financing activities
Repayment of short-term loans from bank		(992)
Repayment of long-term loans from bank	(813)	(3,400)
Repayment of capital lease liability	(123)	(95)
Proceeds from issuance of ordinary shares under employee share option plans		931
Release of restricted cash held in connection with business acquisition	(3,478)
Withholding tax related to net share settlement of restricted share units	(8,904)	(3,550)
Net cash used in financing activities	(13,318)	(7,106)
Net decrease in cash, cash equivalents and restricted cash	57,876	(22,215)
Movement in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period	161,433	137,137
Increase (decrease) in cash, cash equivalents and restricted cash	57,876	(22,215)
Effect of exchange rate on cash, cash equivalents and restricted cash	667	123
Cash, cash equivalents and restricted cash at end of period	219,976	115,045
Non-cash investing and financing activities
Construction, software-related and equipment-related payables	$ 3,830	$ 4,658

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 29, 2018	Sep. 29, 2017	Jun. 30, 2017
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$ 219,976	$ 158,102	$ 111,631
Restricted cash in connection with business acquisition (non-current assets)			3,414
Cash, cash equivalents and restricted cash	$ 219,976	$ 161,433	$ 115,045	$ 137,137

Business and organization

3 Months Ended

Sep. 28, 2018

Business and organization

1.	Business and organization

General

Fabrinet (“Fabrinet” or the “Parent Company”) was incorporated on August 12, 1999, and commenced operations on January 1, 2000. The Parent Company is an exempted company incorporated in the Cayman Islands, British West Indies. The “Company” refers to Fabrinet and its subsidiaries as a group.

The Company provides advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (“OEMs”) of complex products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and test. The Company focuses primarily on the production of low-volume, high-mix products. The principal subsidiaries of Fabrinet include Fabrinet Co., Ltd. (“Fabrinet Thailand”), Casix, Inc. (“Casix”), Fabrinet West, Inc. (“Fabrinet West”) and Fabrinet UK Limited, which was formerly known as Exception EMS Ltd.

Accounting policies

3 Months Ended

Sep. 28, 2018

Accounting policies

2.	Accounting policies

Basis of presentation

The accompanying unaudited condensed consolidated financial statements for Fabrinet as of September 28, 2018 and for the three months ended September 28, 2018 and September 29, 2017 includes normal recurring adjustments, necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 29, 2018.

The balance sheet as of June 29, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three months ended September 28, 2018 may not be indicative of results for the year ending June 28, 2019 or any future periods.

Use of Estimates

The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and expenses during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, income taxes, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to differ from actual results, adjustments will be made in subsequent periods to reflect more current information.

Fiscal years

The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. The three months ended September 28, 2018 and September 29, 2017 each consisted of 13 weeks. Fiscal year 2019 will be comprised of 52 weeks and will end on June 28, 2019.

Changes in Accounting Policies

Except for the adoption of the new revenue recognition accounting standard described below and as disclosed in Note 3—Revenue, the Company has consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements.

Adoption of New Accounting Standard

On June 30, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606), which created Accounting Standards Codification Topic 606 (“ASC 606”), using the modified retrospective method applied to those contracts which were not completed as of June 29, 2018. The modified retrospective method requires the Company to recognize the cumulative effect of the adoption of ASC 606, for all contracts with customers, to the opening balance of equity at June 30, 2018. Accordingly, the Company’s comparative financial information as of June 29, 2018 has not been adjusted and continues to be reported under ASC 605, Revenue Recognition (“ASC 605”).

The cumulative effect adjustment recorded was based on the timing difference of revenue recognition between ASC 605 and ASC 606 related to certain manufacturing contracts with vendor managed inventory arrangements. Under ASC 605, revenue for such contracts was recognized at the earlier of when the inventory was consumed by the customers or if not consumed, on the expiration of time specified in the contract. On adoption of ASC 606, revenue is recognized when inventory is shipped to the customers.

The following table shows the impact of adoption of ASC 606 on adoption date of June 29, 2018 on the unaudited condensed consolidated balance sheets:

Condensed Consolidated Balance Sheets


	Impact of Adopting ASC 606
(amount in thousands)	Balance at June 29, 2018		Adjustment			Balance at June 30, 2018
Assets
Contract assets	$	—	$	9,877	⁽¹⁾	$	9,877
Inventory, net	$	257,687	$	(8,672	)⁽²⁾	$	249,015
Liabilities and Shareholders’ Equity
Retained earnings	$	632,423	$	1,205	⁽³⁾	$	633,628

⁽¹⁾	Majority of adjustment relates to certain manufacturing contracts with vendor managed inventory arrangements for which revenue was recognized on shipment.

⁽²⁾	Adjustment relates to reduction of finished goods inventory for certain vendor managed inventory arrangements.

⁽³⁾	Adjustment relates to cumulative effect adjustment upon adoption of ASC 606.

Concentration of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, marketable securities, derivatives, accounts receivable and contract assets.

Cash, cash equivalents, and marketable securities are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate its credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. The Company limits its investments in marketable securities to securities with a maturity not in excess of three years, and all marketable securities that the Company invests in are rated A1, P-1, F1, or better.

The Company performs ongoing credit evaluations for credit worthiness of its customers and usually does not require collateral from its customers. Management has implemented a program to closely monitor near term cash collection and credit exposures to mitigate any material losses.

New Accounting Pronouncements – not yet adopted by the Company

In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-13, “Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU is intended to improve the effectiveness of disclosures in the notes to the financial statements including 1) the development of a framework that promotes consistent decisions by the Board about disclosure requirements and 2) the appropriate exercise of discretion by reporting entities. The amendment modifies the disclosure requirements on transferring between level 1 and level 2 and valuation processes of level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842), Target Improvements.” This ASU provided guidance on comparative reporting requirements for initial adoption. This ASU also provides additional guidance for lessors, on separating lease and non-lease components in a contract and allocating the consideration in the contract to the separate components. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases.” The amendment in this update affects narrow aspects of the guidance issued in the amendments in update 2016-02 on various matters. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This amendment modified the concept of impairment assessment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Public companies that are SEC filers should adopt the amendment for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the amendments will impact its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Lease (Topic 842).” The core principle of Topic 842 is that a lessee should recognize the lease assets and liabilities that arise from leases in the statement of financial position. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

Revenues

3 Months Ended

Sep. 28, 2018

Revenues

3.	Revenues

The Company derives total revenues primarily from the assembly of products under supply agreements with its customers and the fabrication of customized optics and glass. The Company recognizes revenue relating to contracts with customers that depicts the transfer of promised goods or services to customers in an amount reflecting the consideration to which the Company expects to be entitled in exchange for such goods or services. In order to meet this requirement, the Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Revenue is recognized net of any taxes collected from customers, which is subsequently remitted to governmental authorities.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. In contracts with multiple performance obligations, the Company identifies each performance obligation and evaluates whether the performance obligation is distinct within the context of the contract at contract inception. The majority of the Company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct.

The Company manufactures products that are customized to customers’ specifications, however, control of the products is typically transferred to the customer at the point in time the product is either shipped or delivered, depending on the terms of the arrangement, as the criteria for overtime recognition are not met. On the evaluation of the contracts the Company identified that it did not have contractual rights to bill profit for work in progress in the event of a contract termination which is expected to be infrequent. Further, in limited circumstances, substantive acceptance by the customer exists which results in the deferral of revenue until acceptance is formally received from the customer. Judgment may be required in determining if the acceptance clause is substantive.

Certain customers may request the Company to store finished products purchased by them at the Company’s warehouse. In these instances, the Company receives a written request from the customer asking the Company to hold the inventory at the Company’s warehouse and the ordered goods cannot be used to fulfill other customer orders. In these situations, revenue is only recognized when the goods are completed and ready for shipment and transferred to the Company’s warehouse.

Our customers generally are obligated to purchase finished goods that we have manufactured according to their demand requirements. Materials that are not consumed by our customers within a specified period of time, or are no longer required due to a product’s cancellation or end-of-life, are typically designated as excess or obsolete inventory under our contracts. Once materials are designated as either excess or obsolete inventory, our customers are typically required to purchase such inventory from us even if they have chosen to cancel production of the related products. The excess or obsolete inventory is shipped to the customer and revenue is recognized upon shipment.

A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company generally does not grant return privileges, except for defective products during the warranty period. The Company generally provides a warranty of between one to five years on the product.

Warranty provision

Provisions for estimated expenses relating to product warranties are made at the time the products are sold using historical experience. Generally, this warranty is limited to workmanship and the Company’s liability is capped at the price of the product. The provisions will be adjusted when experience indicates an expected settlement will differ from initial estimates.

Contract Assets and Liabilities

A contract asset is recognized when the Company has recognized revenues, but not yet an invoice for payment. Contract assets are classified separately on the condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. The following table summarizes the activity in the Company’s contract assets during the three-month period ended September 29, 2018:


(amount in thousands)	Contract Assets
Beginning balance, June 30, 2018	$	—
Cumulative effect adjustment at June 30, 2018		9,877
Revenue recognized		27,954
Amounts collected or invoiced		(27,674	)

Ending balance, September 28, 2018	$	10,157

The Company continually evaluates whether advanced payment arrangements with customers result in the recognition of contract liabilities. No such liabilities existed as of September 28, 2018 or June 29, 2018. Separately, accounts receivable, net, represents receivables from contracts with customers.

Contract Costs

The Company has elected the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. During the three months ended September 28, 2018, the Company did not have any incremental costs of obtaining the contract.

Shipping and Handling

Shipping costs billed to customers are recorded as revenue. Shipping and handling expense related to costs incurred to deliver product are recognized within cost of goods sold. The Company accounts for shipping and handling activities that occur after control has transferred as a fulfillment cost as opposed to a separate performance obligation, and the costs of shipping and handling are recognized concurrently with the related revenue.

In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Company’s unaudited condensed consolidated statements of operations and comprehensive income for the three months ended September 28, 2018 and unaudited condensed consolidated balance sheets as of September 28, 2018 was as follows:

Condensed Consolidated Statement of Operations

Three Months Ended September 28, 2018


	Impact of Adopting ASC 606
(amount in thousands)	As Reported			Adjustment			Balance without ASC 606 Adoption
Revenues	$	377,177		$	(280	)⁽¹⁾	$	376,897
Cost of revenues	$	(336,901	)	$	249	⁽²⁾	$	(336,652	)

Gross profit	$	40,276		$	(31	)⁽³⁾	$	40,245

Net income	$	27,850		$	(31	)⁽³⁾	$	27,819
Earnings per share
Basic	$	0.76		$	(0.00	)	$	0.76

Diluted	$	0.75		$	(0.00	)	$	0.75

⁽¹⁾	Adjustment relates to certain manufacturing contracts with vendor managed inventory arrangements for which revenue was recognized at shipping.

⁽²⁾	Adjustment relates to costs associated with revenue recognized.

⁽³⁾	Adjustment relates to net impact on income upon adoption of ASC 606.

Condensed Consolidated Balance Sheets

As of September 28, 2018


	Impact of Adopting ASC 606
(amount in thousands)	As Reported		Adjustments			Balance without ASC 606 Adoption
Assets
Contract assets	$	10,157	$	(10,157	)⁽¹⁾	$	—
Inventory, net	$	278,397	$	8,921	⁽²⁾	$	287,318
Liabilities and Shareholders’ Equity
Retained earnings	$	661,478	$	(1,236	)⁽³⁾	$	660,242

⁽¹⁾	Majority of adjustment relates to certain manufacturing contracts with vendor managed inventory arrangements for which revenue was recognized on shipment.

⁽²⁾	Adjustment relates to reduction of finished goods inventory for vendor managed inventory.

⁽³⁾	Adjustment relates to cumulative effect adjustment upon adoption of ASC 606.

Revenue by Geographic Area:

Total revenues are attributed to a particular geographic area based on the bill-to-location of the customers. The Company operates primarily in three geographic regions: North America, Asia-Pacific and Europe. The following table presents total revenues by geographic regions:


(amount in thousands)	Three Months Ended September 28, 2018		As a % of Total Revenues
North America	$	179,826		47.7	%
Asia-Pacific		151,947		40.3
Europe		45,404		12.0

	$	377,177		100.0	%

The following table sets forth our revenues by end market.


(amount in thousands)	Three Months Ended September 28, 2018		As a % of Total Revenues
Optical communications	$	280,768		74.4	%
Lasers, sensors and other		96,409		25.6

Total	$	377,177		100.0	%

Earnings per ordinary share

3 Months Ended

Sep. 28, 2018

Earnings per ordinary share

4.	Earnings per ordinary share

Basic earnings per ordinary share is computed by dividing reported net income by the weighted-average number of ordinary shares outstanding during each period. Diluted earnings per ordinary share is computed by calculating the effect of potential dilutive ordinary shares outstanding during the period using the treasury stock method. Dilutive ordinary equivalent shares consist of share options, restricted share units and performance share units. Earnings per ordinary share was calculated as follows:


	Three Months Ended
(amount in thousands except per share amounts)	September 28, 2018		September 29, 2017
Net income attributable to shareholders	$	27,850	$	21,033

Weighted-average number of ordinary shares outstanding (thousands of shares)		36,625		37,447
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares)		515		716

Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		37,140		38,163

Basic earnings per ordinary share	$	0.76	$	0.56
Diluted earnings per ordinary share	$	0.75	$	0.55
Outstanding performance share units excluded in the computation of diluted earnings per ordinary share (thousands of shares) ⁽¹⁾		351		—

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

As of September 28, 2018 and September 29, 2017, there were no anti-dilutive share options.

Cash, cash equivalents and marketable securities

3 Months Ended

Sep. 28, 2018

Cash, cash equivalents and marketable securities

5.	Cash, cash equivalents and marketable securities

The Company’s cash, cash equivalents, and marketable securities can be analyzed as follows:


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain/(Loss)			Cash and Cash Equivalents		Marketable Securities
As of September 28, 2018
Cash	$	201,795	$	—		$	201,795	$	—
Cash equivalents		18,181		—			18,181		—
Corporate bonds and commercial papers		96,810		(887	)		—		95,923
U.S. agency and U.S. treasury securities		34,122		(377	)		—		33,745
Sovereign and municipal securities		2,768		(53	)		—		2,715

Total	$	353,676	$	(1,317	)	$	219,976	$	132,383


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain/(Loss)			Cash and Cash Equivalents		Marketable Securities
As of June 29, 2018
Cash	$	146,778	$	—		$	146,778	$	—
Cash equivalents		11,324		—			11,324		—
Corporate bonds and commercial papers		128,441		(736	)		—		127,705
U.S. agency and U.S. treasury securities		43,734		(324	)		—		43,410
Sovereign and municipal securities		3,185		(31	)		—		3,154

Total	$	333,462	$	(1,091	)	$	158,102	$	174,269

All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates the designations at each balance sheet date. The Company may sell certain of its marketable securities 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 marketable securities generally range from three months to three years. The Company’s investments in marketable securities consist of investments in U.S. Treasuries and fixed income securities and have been classified and accounted for as available-for-sale.

The following table summarizes the cost and estimated fair value of marketable securities classified as available-for-sale securities based on stated effective maturities as of September 28, 2018:


(amount in thousands)	Carrying Cost		Fair Value
Due within one year	$	16,403	$	16,350
Due between one to three years		117,297		116,033

Total	$	133,700	$	132,383

During the three months ended September 28, 2018, the Company recognized a realized gain of $0.1 million from sales and maturities of available-for-sale.

As of September 28, 2018, the Company considered the declines in market value of its marketable securities investment portfolio to be temporary in nature and did not consider any of its securities other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. No impairment losses were recorded for the three months ended September 28, 2018.

As of September 28, 2018, cash, cash equivalents, and marketable securities included bank deposits of $40.0 million held in various financial institutions located in the United States in order to support the availability of the Facility Agreement (as defined in Note 12) and comply with covenants. Under the terms and conditions of the Facility Agreement, the Company shall maintain cash, cash equivalents and/or marketable securities in an aggregate amount not less than $40.0 million in unencumbered deposits, and/or securities in accounts located in the United States at all times during the term of the Facility Agreement. As discussed in Note 12, the Company must comply with this covenant from and after the effective date of the Facility Agreement.

Fair value of financial instruments

3 Months Ended

Sep. 28, 2018

Fair value of financial instruments

6.	Fair value of financial instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs for the valuation of an asset or liability as of measurement date. The three levels of inputs that may be used to measure fair value are defined as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly. If the assets or liabilities have a specified (contractual) term, Level 2 inputs must be observable for substantially the full term of assets or liabilities.

Level 3 inputs are unobservable inputs for assets or liabilities, which require the reporting entity to develop its own valuation techniques and assumptions.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

The following table provides details of the financial instruments measured at fair value on a recurring basis, including:


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of September 28, 2018
Assets
Cash equivalents	$	—	$	18,181		$	—	$	18,181
Corporate bonds and commercial papers		—		95,923			—		95,923
U.S. agency and U.S. treasury securities		—		33,745			—		33,745
Sovereign and municipal securities		—		2,715			—		2,715
Derivative assets		—		249	⁽¹⁾		—		249

Total	$	—	$	150,813		$	—	$	150,813

Liabilities
Derivative liabilities	$	—	$	—		$	—	$	—

Total	$	—	$	—		$	—	$	—


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 29, 2018
Assets
Cash equivalents	$	—	$	11,324		$	—	$	11,324
Corporate bonds and commercial papers		—		127,705			—		127,705
U.S. agency and U.S. treasury securities		—		43,410			—		43,410
Sovereign and municipal securities		—		3,154			—		3,154
Derivative assets		—		—			—		—

Total	$	—	$	185,593		$	—	$	185,593

Liabilities
Derivative liabilities	$	—	$	1,745	⁽²⁾	$	—	$	1,745

Total	$	—	$	1,745		$	—	$	1,745

⁽¹⁾	Foreign currency forward contracts with a notional amount of $6.0 million. Foreign currency option contracts with a notional amount of $19.0 million.

⁽²⁾	Foreign currency forward contracts with a notional amount of $7.0 million and Canadian dollars 0.4 million. Foreign currency option contracts with a notional amount of $30.0 million.

Derivative Financial Instruments

As a result of foreign currency rate fluctuations, the U.S. dollar equivalent values of the Company’s foreign currency denominated assets and liabilities are changed. The Company uses foreign currency contracts to manage the foreign exchange risk associated with certain foreign currency denominated assets and liabilities and other foreign currency transactions. The Company minimizes the credit risk in derivative instruments by limiting its exposure to any single counterparty and by entering into derivative instruments only with counterparties that meet the Company’s minimum credit quality standard. As of September 28, 2018, the Company recognized the fair value of foreign currency forward contracts of $0.2 million as derivative assets in the unaudited condensed consolidated balance sheets under other current assets. As of June 29, 2018, the Company recognized the fair value of foreign currency forward contracts of $1.7 million as derivative liabilities in the consolidated balance sheets under other current liabilities.

As of September 28, 2018 and June 29, 2018, the Company had no foreign currency forward contracts designated as cash flow hedges.

As of September 28, 2018, the Company had three outstanding foreign currency forward contracts with a notional amount of $6.0 million, and six outstanding foreign currency option contracts with a notional amount of $19.0 million with maturity dates from October through December 2018. These foreign currency forward contracts and option contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht. During the three months ended September 28, 2018, the Company included unrealized gain of $0.2 million from changes in the fair value of foreign currency contracts in earnings as foreign exchange gain, net in the unaudited condensed consolidated statements of operations and comprehensive income.

As of September 29, 2017, the Company had 15 outstanding foreign currency forward contracts with a notional amount of $26.0 million and Canadian dollars 0.6 million, maturing during October to December 2017. These foreign currency forward contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht and Canadian dollar. During the three months ended September 29, 2017, the Company included unrealized loss of $0.4 million from changes in the fair value of foreign currency contracts in earnings as foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Trade accounts receivable, net

3 Months Ended

Sep. 28, 2018

Trade accounts receivable, net

7.	Trade accounts receivable, net


(amount in thousands)	As of September 28, 2018			As of June 29, 2018
Trade accounts receivable	$	258,766		$	246,972
Less: allowance for doubtful account		(61	)		(60	)

Trade accounts receivable, net	$	258,705		$	246,912

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventory

3 Months Ended

Sep. 28, 2018

Inventory

8.	Inventory


(amount in thousands)	As of September 28, 2018			As of June 29, 2018
Raw materials	$	105,736		$	100,241
Work in progress		136,042			121,797
Finished goods		18,802			20,690
Goods in transit		19,896			17,516

		280,476			260,244
Less: Inventory obsolescence		(2,079	)		(2,557	)

Inventory, net	$	278,397		$	257,687

Business acquisition

3 Months Ended

Sep. 28, 2018

Business acquisition

9.	Business acquisition

On September 14, 2016, the Company acquired 100% shareholding in Fabrinet UK (formerly known as Exception EMS), a privately-held group located in Wiltshire, United Kingdom, for cash consideration of approximately $13.0 million, net of $0.5 million cash acquired. Fabrinet UK provides contract electronics manufacturing services to the global electronics industry with innovative solutions, adding value to the design, manufacture and testing of printed circuit board assemblies. Pursuant to the acquisition agreement, the Company has placed $3.4 million of cash, net of foreign currency translation adjustment, for deferred consideration in an escrow account which was under the Company control. On September 15, 2018, the cash was released from the escrow account to the sellers.

The Company has accounted for this acquisition under the provisions of business combinations accounting, in accordance with Accounting Standards Codification Topic 805 – Business Combinations. Accordingly, the estimated fair value of the acquisition consideration was allocated to the assets acquired and the liabilities assumed based on their respective fair values on the acquisition date. The Company has made certain estimates and assumptions in determining the allocation of the acquisition consideration.

The allocation of consideration to the individual net assets acquired was finalized in the fourth quarter of fiscal year 2017.

The Company’s allocation of the total purchase price for the acquisition is summarized below:


(amount in thousands)	Purchase price allocation
Cash	$	474
Accounts receivable		4,064
Inventory		3,490
Other current assets		427
Property, plant and equipment		5,678
Intangibles		4,492
Goodwill		3,883
Other non-current assets		516
Current liabilities		(6,796	)
Deferred tax liabilities		(1,148	)
Other non-current liabilities		(1,563	)

Total fair value of assets acquired and liabilities assumed	$	13,517

Total purchase price, net of cash acquired	$	13,043

In connection with the Company’s acquisition of Fabrinet UK, the Company assumed lease agreements for certain machine and equipment, which are accounted for as capital leases. As of September 28, 2018 and June 29, 2018, the Company included approximately $1.3 million and $1.4 million, respectively, of capital lease assets and $0.8 million and $1.0 million, respectively, of capital lease liability in the unaudited condensed consolidated balance sheets associated with these acquired lease agreements.

Pro forma results of operations for the acquisition have not been presented as they were not material to the Company’s results of operations.

Identifiable intangibles

The acquired intangible assets include customer relationships and backlog. The fair value of the identified intangible assets was determined based on the multi-period excess earnings method.

Customer relationships represent the fair value of future projected revenues that were derived from the sale of products to existing customers of the acquired company. The fair value of $4.4 million will be amortized, using the accelerated method, over an estimated useful life of ten years.

Backlog represents the fair value of sales orders backlog as of the valuation date. The fair value of $0.1 million will be amortized, using an accelerated amortization method, over the respective estimated useful life of three years.

Goodwill

Goodwill arising from the acquisition is primarily attributable to the ability to expand future products and services and the assembled workforce. Goodwill is not deductible for tax purposes.

Intangibles

3 Months Ended

Sep. 28, 2018

Intangibles

10.

Intangibles

The following tables present details of the Company’s intangibles:


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net
As of September 28, 2018
Software	$	6,304	$	(4,461	)	$	—		$	1,843
Customer relationships		4,373		(1,592	)		(44	)		2,737
Backlog		119		(109	)		—			10

Total intangibles	$	10,796	$	(6,162	)	$	(44	)	$	4,590


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net
As of June 29, 2018
Software	$	6,269	$	(4,324	)	$	—		$	1,945
Customer relationships		4,373		(1,413	)		(42	)		2,918
Backlog		119		(101	)		(1	)		17

Total intangibles	$	10,761	$	(5,838	)	$	(43	)	$	4,880

The Company recorded amortization expense relating to intangibles of $0.3 million and $0.3 million for the three months ended September 28, 2018 and September 29, 2017, respectively.

The weighted-average remaining life of customer relationships and backlog are:


(years)	As of September 28, 2018		As of June 29, 2018
Customer relationships		5.9		6.1
Backlog		0.7		0.9

Based on the carrying amount of intangibles as of September 28, 2018, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows:


(amount in thousands)
2019 (remaining nine months)	$	935
2020		1,098
2021		951
2022		717
2023		453
Thereafter		436

Total	$	4,590

Goodwill

3 Months Ended

Sep. 28, 2018

Goodwill

11.

Goodwill

The changes in the carrying amount of goodwill from the acquisition of Fabrinet UK were as follows:


(amount in thousands)	Goodwill
Balance as of June 29, 2018	$	3,828
Foreign currency translation adjustment		(6	)

Balance as of September 28, 2018	$	3,822


(amount in thousands)	Goodwill
Balance as of June 30, 2017	$	3,806
Foreign currency translation adjustment		22

Balance as of June 29, 2018	$	3,828

Goodwill is not deductible for tax purposes. Goodwill is reviewed annually for impairment or more frequently whenever changes or circumstances indicate the carrying amount of goodwill may not be recoverable.

Borrowings

3 Months Ended

Sep. 28, 2018

Borrowings

12.

Borrowings

The Company’s total borrowings, including short-term and long-term borrowings, consisted of the following:


Rate ⁽¹⁾	Conditions		Maturity		As of September 28, 2018			As of June 29, 2018
Short-term borrowings:
Current portion of long-term borrowing					$	3,250		$	3,250

Long-term borrowings:
Term loan borrowing:
LIBOR +1.50% per annum		Repayable in quarterly installments		June 2023	$	63,375		$	64,188

						63,375			64,188
Less: Current portion						(3,250	)		(3,250	)

Non-current portion of long-term borrowings					$	60,125		$	60,938

⁽¹⁾	LIBOR is London Interbank Offered Rate.

The movements of long-term borrowings for the three months ended September 28, 2018 and September 29, 2017 were as follows:


	Three Months Ended
(amount in thousands)	September 28, 2018			September 29, 2017
Opening balance	$	64,188		$	36,400
Repayments during the period		(813	)		(3,400	)

Closing balance	$	63,375		$	33,000

As of September 28, 2018, future maturities of long-term borrowings during each fiscal year were as follows:


(amount in thousands)
2019 (remaining nine months)	$	2,438
2020		3,250
2021		3,250
2022		3,250
2023		51,187

Total	$	63,375

Credit facilities:

The Company entered into a syndicated senior credit facility agreement (the “Facility Agreement”) with a consortium of banks on May 22, 2014. The Facility Agreement, led by Bank of America, provided for a $200.0 million credit line, comprised of a $150.0 million revolving loan facility and a $50.0 million delayed draw term loan facility. The revolving loan facility contains an accordion feature permitting Fabrinet to request an increase in the facility up to $100.0 million subject to customary terms and conditions and provided that no default or event of default exists at the time of request.

On February 26, 2015, the Company entered into the Second Amendment to the Facility Agreement. The amendment extended the availability period for draws on the term loan facility from May 21, 2015 to July 31, 2015. It also allowed the Company, upon the satisfaction of certain conditions, to designate from time to time one or more of its subsidiaries as borrowers under the Facility Agreement. On July 31, 2015, the Company entered into the Third Amendment to the Facility Agreement. This amendment extended the availability period for draws on the term loan facility from July 31, 2015 to July 31, 2016. On July 22, 2016, the Company entered into the Fourth Amendment to the Facility Agreement to change the timing of filing certain financial information with the bank.

Loans under the Facility Agreement bear interest, at Fabrinet’s option, at a rate per annum equal to a LIBOR rate plus a spread of 1.75% to 2.50%, or a base rate, determined in accordance with the Facility Agreement, plus a spread of 0.75% to 1.50%, in each case with such spread determined based on Fabrinet’s consolidated total leverage ratio for the preceding four fiscal quarter period. Interest is due and payable quarterly in arrears for loans bearing interest at the base rate and at the end of an interest period (or at each three-month interval in the case of loans with interest periods greater than three months) in the case of loans bearing interest at the LIBOR rate.

Fabrinet’s obligations under the Facility Agreement are guaranteed by certain of its existing and future direct material subsidiaries. In addition, the Facility Agreement is secured by Fabrinet’s present and future accounts receivable, deposit accounts and cash, and a pledge of the capital stock of certain of Fabrinet’s direct subsidiaries. Fabrinet is required to maintain at least $40.0 million of cash, cash equivalents, and marketable securities at financial institutions located in the United States. Further, Fabrinet is required to maintain any of its deposits accounts or securities accounts with balances in excess of $10.0 million in a jurisdiction where a control agreement, or the equivalent under the local law, can be effected.

The Facility Agreement contains customary affirmative and negative covenants. Negative covenants include, among other things, limitations on liens, indebtedness, investments, mergers, sales of assets, changes in the nature of the business, dividends and distributions, affiliate transactions and capital expenditures. The Facility Agreement contains financial covenants requiring Fabrinet to maintain: (i) a minimum tangible net worth of not less than $200.0 million plus 50% of quarterly net income, exclusive of quarterly losses; (ii) a minimum debt service coverage ratio of not less than 1.50:1.00; (iii) a maximum senior leverage ratio of not more than 2.50:1.00; and (iv) a minimum quick ratio of not less than 1.10:1.00. Each of these financial covenants is calculated on a consolidated basis for the consecutive four fiscal quarter period then ended.

The Facility Agreement also contains customary events of default including, among other things, payment defaults, breaches of covenants or representations and warranties, cross-defaults with certain other indebtedness, bankruptcy and insolvency events and change in control of Fabrinet, subject to grace periods in certain instances. Upon an event of default, the lenders may terminate their commitments, declare all or a portion of the outstanding obligations payable by Fabrinet to be immediately due and payable and exercise other rights and remedies provided for under the Facility Agreement.

On June 4, 2018, the Company entered into the Fifth Amendment to the Facility Agreement to (i) reduce the revolving commitments thereunder from $150.0 million to $25.0 million, (ii) extend the termination date of the revolving commitments from May 22, 2019 to June 4, 2023, (iii) refinance the then-existing term loan and revolving loans under the Facility Agreement into a $65.0 million term loan and (iv) reduce the applicable interest rate margins and commitment fees. Term loans must be repaid in quarterly installments, beginning on June 30, 2018, with the remaining outstanding principal and accrued and unpaid interest being due and payable on June 4, 2023. After giving effect to the amendment, $65.0 million aggregate principal amount of term loans and no revolving loans were outstanding under the Facility Agreement as of June 28, 2018. In addition, the Fifth Amendment to the Facility Agreement contains an accordion feature permitting the Company to request an increase in the revolving loan facility to provide up to an aggregate of $200.0 million in additional commitments, subject to customary terms and conditions, and provided that no default or event of default exists at the time of such request. The Fifth Amendment is considered debt extinguishment of which the Company recognized interest expenses of $0.1 million from remaining unamortized debt issuance costs in consolidated statements of operations and comprehensive income. As of September 28, 2018 and June 29, 2018, $63.4 million and $64.2 million aggregate principal amount of term loans and no revolving loans were outstanding under the Facility Agreement.

After the Fifth Amendment, loans under the Facility Agreement bear interest, at Fabrinet’s option, at a rate per annum equal to a LIBOR rate plus a spread of 1.50% to 2.25%, or a base rate plus a spread of 0.50% to 1.25%, determined in accordance with the Facility Agreement in each case with such spread determined based on Fabrinet’s consolidated total leverage ratio for the preceding four fiscal quarter period.

Fabrinet’s obligations under the Facility Agreement are guaranteed by certain of its existing and future material direct subsidiaries. In addition, the Facility Agreement is secured by Fabrinet’s present and future accounts receivable, deposit accounts and cash, and a pledge of the capital stock of certain of Fabrinet’s direct subsidiaries. Fabrinet is required to maintain at least $40.0 million of cash, cash equivalents, and marketable securities at financial institutions located in the United States. Further, Fabrinet is required to maintain any of its deposits accounts or securities accounts with balances in excess of $20.0 million in a jurisdiction where a control agreement, or the equivalent under the local law, can be effected.

Moreover, the Fifth Amendment of Facility Agreement amends customary affirmative and negative covenants. Negative covenants include, among other things, limitations on liens, indebtedness, investments, mergers, sales of assets, changes in the nature of the business, dividends and distributions, affiliate transactions and capital expenditures. The Facility Agreement contains financial covenants requiring Fabrinet to maintain: (1) a minimum tangible net worth of not less than $338.0 million plus 50% of quarterly net income after June 30, 2018, exclusive of quarterly losses; (2) a minimum debt service coverage ratio of not less than 1.50:1.00; (3) a maximum total leverage ratio of not more than 2.50:1.00; and (4) a minimum quick ratio of not less than 1.10:1.00. Each of these financial covenants is calculated on a consolidated basis for the consecutive four fiscal quarter period then ended. As of September 28, 2018, the Company was in compliance with all covenants under the Facility Agreement.

Fabrinet intends to use the proceeds of the credit line to finance its future expansion in the United States and Thailand, and for general corporate purposes including mergers and acquisitions of complementary manufacturing businesses or technology, although Fabrinet has no current commitments with respect to any such acquisitions.

On July 24, 2017, the Company entered into an interest rate swap agreement (the “Swap Agreement”), which the Company did not designate as hedging instruments. The Swap Agreement was used to mitigate interest rate risk and improve the interest rate profile of the Company’s debt obligations. The terms of the Swap Agreement effectively converted the floating interest rate of the term loans under the Facility Agreement to the fixed interest rate of 1.55% per annum through maturity of the term loan in May 2019. On June 4, 2018, the Company terminated the Swap Agreement in connection with entering into the Fifth Amendment to the Facility Agreement.

On July 25, 2018, the Company entered into Swap Agreement, which the Company did not designate as hedging instruments. The Swap Agreement was used to mitigate interest rate risk and improve the interest rate profile of the Company’s debt obligations. The terms of the Swap Agreement effectively converted the floating interest rate of the term loans under the Facility Agreement to the fixed interest rate of 2.86% per annum through maturity of the term loan in June 2023. The swap transactions are due and settled monthly. During the three months ended September 28, 2018, the Company included a net loss of $33 thousand from the settlement of the Swap Agreement as interest expenses in the unaudited condensed consolidated statements of operations and comprehensive income.

Undrawn available credit facilities classified by availability period of future borrowing as of September 28, 2018 and June 29, 2018 were as follows:


(amount in thousands)	September 28, 2018		June 29, 2018
Expiring within one year	$	—	$	—
Expiring beyond one year	$	25,000	$	25,000

Income taxes

3 Months Ended

Sep. 28, 2018

Income taxes

13.

Income taxes

As of September 28, 2018 and June 29, 2018, the liability for uncertain tax positions including accrued interest and penalties was $2.4 million and $2.3 million, respectively. The Company expects the estimated amount of liability associated with its uncertain tax positions to decrease within the next 12 months due to the lapse of the applicable statute of limitations in foreign tax jurisdictions.

The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2013 to 2017 remain open to examination by U.S. federal and state, and foreign tax authorities. The Company’s income tax is recognized based on the best estimate of the expected annual effective tax rate for the full financial year of each entity in the Company, adjusted for discrete items arising in that quarter. If the Company’s estimated annual effective tax rate changes, the Company makes a cumulative adjustment in that quarter.

The effective tax rate for the Company for the three months ended September 28, 2018 and September 29, 2017 was 6.7% and 6.3%, respectively, of net income. The increase was primarily due to the fact that the Company had higher income subject to tax during the first quarter of fiscal year 2019 as compared to the same period in fiscal year 2018.

Share-based compensation

3 Months Ended

Sep. 28, 2018

Share-based compensation

14.

Share-based compensation

Share-based compensation

In determining the grant date fair value of share equity awards, the Company is required to make estimates of expected dividends to be issued, expected volatility of Fabrinet’s ordinary shares, expected forfeitures of the awards, risk free interest rates for the expected term of the awards and expected terms of the awards. Forfeitures are estimated at the time of grant and revised if necessary in subsequent periods if actual forfeitures differ from those estimates. The grant date fair value of restricted share units and performance share units is based on the market value of our ordinary shares on the date of grant.

The effect of recording share-based compensation expense for the three months ended September 28, 2018 and September 29, 2017 was as follows:


	Three Months Ended
(amount in thousands)	September 28, 2018		September 29, 2017
Share-based compensation expense by type of award:
Restricted share units	$	4,685	$	4,847
Performance share units		295		2,073

Total share-based compensation expense		4,980		6,920
Tax effect on share-based compensation expense		—		—

Net effect on share-based compensation expense	$	4,980	$	6,920

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 28, 2018		September 29, 2017
Cost of revenue	$	1,847	$	1,901
Selling, general and administrative expense		3,133		5,019

Total share-based compensation expense	$	4,980	$	6,920

The Company did not capitalize any share-based compensation expense as part of any asset costs during the three months ended September 28, 2018 and September 29, 2017.

Share-based award activity

Fabrinet maintains the following equity incentive plans: the Amended and Restated 2010 Performance Incentive Plan (the “2010 Plan”) and the 2017 Inducement Equity Incentive Plan (the “2017 Inducement Plan”). 2010 Plan and 2017 Inducement Plan are collectively referred to as the “Share Option Plans.”

On December 14, 2017, Fabrinet’s shareholders approved amendments to the 2010 Plan to increase the number of ordinary shares authorized for issuance under the 2010 Plan by 2,100,000 shares. As of September 28, 2018, there were an aggregate of 881,146 restricted share units outstanding and 455,358 performance share units outstanding under the 2010 Plan. As of September 28, 2018, there were 1,968,456 ordinary shares available for future grant under the 2010 Plan.

On November 2, 2017, Fabrinet adopted the 2017 Inducement Plan with a reserve of 160,000 ordinary shares authorized for future issuance solely for the granting of inducement share options and equity awards to new key employee. The 2017 Inducement Plan was adopted without shareholder approval in reliance on the “employment inducement exemption” provided under the rules of the New York Stock Exchange. As of September 28, 2018, there were an aggregate of 48,653 restricted share units outstanding and 97,306 performance share units outstanding under the 2017 Inducement Plan. As of September 28, 2018, there were 14,041 ordinary shares available for future grant under the 2017 Inducement Plan.

Share options

Fabrinet’s board of directors has the authority to determine the type of option and the number of shares subject to an option. Options generally vest and become exercisable over four years and expire, if not exercised, within seven years of the grant date. In the case of a grantee’s first grant, 25 percent of the underlying shares vest 12 months after the vesting commencement date and 1/48 of the underlying shares vest monthly over each of the subsequent 36 months. In the case of any additional grants to a grantee, 1/48 of the underlying shares vest monthly over four years, commencing one month after the vesting commencement date. Share options have been granted to directors and employees.

The following summarizes share option activity:


	Number of Shares			Number of Exercisable Options		Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value
Balance as of June 29, 2018		2,900			2,900	$	15.16
Granted		—					—		—
Exercised		—					—
Forfeited		—					—
Expired		(2,900	)			$	15.16

Balance as of September 28, 2018		—			—		—


	Number of Shares			Number of Exercisable Options		Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value
Balance as of June 30, 2017		96,688			96,688	$	15.70
Granted		—					—		—
Exercised		(58,531	)			$	15.91
Forfeited		—					—
Expired		—					—

Balance as of September 29, 2017		38,157			38,157	$	15.38

As of September 28, 2018, there was no unrecognized compensation cost under the Share Option Plans.

Restricted share units and performance share units

Restricted share units and performance share units have been granted under the 2010 Plan and the 2017 Inducement Plan.

Restricted share units granted to employees generally vest in equal installments over three or four years on each anniversary of the vesting commencement date. Restricted share units granted to non-employee directors generally cliff vest 100% on the first of January, approximately one year from the grant date, provided the director continues to serve through such date.

Performance share units granted to executives will vest, if at all, at the end of a two-year performance period based on the Company’s achievement of pre-defined performance criteria, which consist of revenue and gross 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 2010 Plan and 2017 Inducement Plan:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Balance as of June 29, 2018		1,073,580		$	35.19
Granted		255,821		$	48.02
Issued		(369,757	)	$	34.34
Forfeited		(29,845	)	$	38.32

Balance as of September 28, 2018		929,799		$	38.95


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Balance as of June 30, 2017		1,058,605		$	31.59
Granted		321,405		$	39.35
Issued		(259,033	)	$	26.17
Forfeited		(12,967	)	$	35.33

Balance as of September 29, 2017		1,108,010		$	35.07

The following table summarizes performance share unit activity under the 2010 Plan and 2017 Inducement Plan:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Balance as of June 29, 2018		605,892		$	38.41
Granted		201,994		$	48.02
Issued		(227,268	)	$	40.48
Forfeited		(27,954	)	$	39.35

Balance as of September 28, 2018		552,664		$	41.02


	Number of Shares		Weighted- Average Grant Date Fair Value Per Share
Balance as of June 30, 2017		227,268	$	40.48
Granted		281,318	$	39.95
Issued		—		—
Forfeited		—		—

Balance as of September 29, 2017		508,586	$	39.86

As of September 28, 2018, there was $20.0 million and $7.9 million of unrecognized share-based compensation expense related to restricted share units and performance share units, respectively, under the 2010 Plan and the 2017 Inducement Plan that is expected to be recorded over a weighted-average period of 2.9 years and 1.9 years, respectively.

For the three months ended September 28, 2018 and September 29, 2017, the Company withheld an aggregate of 201,877 shares and 85,758 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date to settle the employees’ minimum statutory obligation for the applicable income and other employment taxes. For the three months ended September 28, 2018 and September 29, 2017, the Company then remitted cash of $8.9 million and $3.6 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 had the effect on shares issued by the Company as it reduced the number of shares that would have been issued on the vesting date and was recorded as a reduction of additional paid-in capital.

Shareholders' equity

3 Months Ended

Sep. 28, 2018

Shareholders' equity

15.

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 28, 2018, Fabrinet issued 395,148 ordinary shares upon the vesting of restricted share units, net of shares withheld.

For the three months ended September 29, 2017, Fabrinet issued 58,531 ordinary shares upon the exercise of options, for cash consideration at a weighted-average exercise price of $15.91 per share, and 173,275 ordinary shares upon the vesting of restricted share units, net of shares withheld.

All such issued shares are fully paid.

Treasury stock

In August 2017, the Company’s board of directors approved a share repurchase program to permit the Company to repurchase up to $30.0 million worth of its issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations. In February 2018, the Company’s board of directors approved a $30.0 million increase to the share repurchase authorization. During the three months ended September 28, 2018, no shares were repurchased under the program. As of September 28, 2018, the Company had a remaining authorization to purchase up to an additional $17.6 million worth of its ordinary shares under the share repurchase program. Shares repurchased under the share repurchase program are held as treasury shares.

Accumulated other comprehensive income (loss)

3 Months Ended

Sep. 28, 2018

Accumulated other comprehensive income (loss)

16. Accumulated other comprehensive income (loss)

The changes in AOCI for the three months ended September 28, 2018 were as follows:


(amount in thousands)	Unrealized net (Losses) Gains on Marketable Securities			Unrealized net (Losses) Gains on Derivative Instruments			Foreign Currency Translation Adjustment			Total
Balance as of June 29, 2018	$	(1,091	)	$	33		$	(199	)	$	(1,257	)
Other comprehensive income before reclassification adjustment		591			—			(200	)		391
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income		(303	)		(1	)		—			(304	)
Tax effects		—			—			—			—

Other comprehensive income (loss)	$	288		$	(1	)	$	(200	)	$	87

Balance as of September 28, 2018	$	(803	)	$	32		$	(399	)	$	(1,170	)


(amount in thousands)	Unrealized net (Losses) Gains on Marketable Securities			Unrealized net (Losses) Gains on Derivative Instruments			Foreign Currency Translation Adjustment			Total
Balance as of June 30, 2017	$	(72	)	$	34		$	(310	)	$	(348	)
Other comprehensive income before reclassification adjustment		382			—			526			908
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income		(353	)		(1	)		—			(354	)
Tax effects		—			—			—			—

Other comprehensive income (loss)	$	29		$	(1	)	$	526		$	554

Balance as of September 29, 2017	$	(43	)	$	33		$	216		$	206

Commitments and contingencies

3 Months Ended

Sep. 28, 2018

Commitments and contingencies

17. Commitments and contingencies

Bank guarantees

As of September 28, 2018 and June 29, 2018, there were outstanding bank guarantees given by a bank on behalf of our subsidiary in Thailand for electricity usage and other normal business amounting to $1.5 million.

Operating lease commitments

The Company leases a portion of its capital equipment, vehicles, and certain land and buildings for its facilities in Thailand, Cayman Islands, China, the United States and the United Kingdom under operating lease arrangements that expire in various years through 2023. Rental expense under these operating leases amounted to $0.5 million and $0.5 million for the three months ended September 28, 2018 and September 29, 2017, respectively.

As of September 28, 2018, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows:


(amount in thousands)
2019 (remaining nine months)	$	1,396
2020		1,721
2021		1,320
2022		1,204
2023		1,195
Thereafter		230

Total minimum operating lease payments	$	7,066

Capital lease commitments

In connection with the acquisition of Fabrinet UK, the Company assumed the capital lease commitments of several machines and equipment, with various expiration dates until September 2020. The equipment can be purchased at the determined prices upon expiration of such contracts.

As of September 28, 2018, the future minimum lease payments due under non-cancelable capital leases during each fiscal year were as follows:


(amount in thousands)
2019 (remaining nine months)	$	333
2020		410
2021		105
2022		—

Total minimum capital lease payments	$	848

Purchase obligations

Purchase obligations represent legally-binding commitments to purchase inventory and other commitments made in the normal course of business to meet operational requirements. Although open purchase orders are considered enforceable and legally binding, their terms generally give the Company the option to cancel, reschedule and/or adjust its requirements based on its business needs prior to the delivery of goods or performance of services. Obligations to purchase inventory and other commitments are generally expected to be fulfilled within one year.

On December 23, 2016, the Company entered into an agreement to purchase a parcel of land in Chonburi, Thailand, to support the expansion of the Company’s production in Thailand. The aggregate purchase price was approximately $5.6 million, of which the first installment of $1.1 million was paid by the Company on January 10, 2017 and the remainder was fully paid on December 25, 2017.

As of September 28, 2018, the Company had an outstanding commitment to third parties of $4.9 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 geographic information

3 Months Ended

Sep. 28, 2018

Business segments and geographic information

18.

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 28, 2018, 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.


	Three Months Ended
(amount in thousands)	September 28, 2018		September 29, 2017
North America	$	179,826	$	156,991
Asia-Pacific		151,947		142,863
Europe		45,404		57,459

	$	377,177	$	357,313

As of September 28, 2018 and September 29, 2017, the Company had approximately $32.5 million and $35.0 million, respectively, of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific and Europe.

Significant customers

The Company had a customer and two customers that contributed to 10% or more of its total trade accounts receivable as of September 28, 2018 and June 29, 2018, respectively.

Accounting policies (Policies)	3 Months Ended
Accounting policies (Policies)	Sep. 28, 2018
Basis of presentation	*Basis of presentation* The accompanying unaudited condensed consolidated financial statements for Fabrinet as of September 28, 2018 and for the three months ended September 28, 2018 and September 29, 2017 includes normal recurring adjustments, necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form 10-K for the year ended June 29, 2018. The balance sheet as of June 29, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three months ended September 28, 2018 may not be indicative of results for the year ending June 28, 2019 or any future periods.
Use of Estimates	*Use of Estimates* The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and expenses during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, income taxes, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to differ from actual results, adjustments will be made in subsequent periods to reflect more current information.
Fiscal years	*Fiscal years* The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. The three months ended September 28, 2018 and September 29, 2017 each consisted of 13 weeks. Fiscal year 2019 will be comprised of 52 weeks and will end on June 28, 2019.
Changes in Accounting Policies	*Changes in Accounting Policies* Except for the adoption of the new revenue recognition accounting standard described below and as disclosed in Note 3—Revenue, the Company has consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements.
Adoption of New Accounting Standard	*Adoption of New Accounting Standard* On June 30, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606), which created Accounting Standards Codification Topic 606 (“ASC 606”), using the modified retrospective method applied to those contracts which were not completed as of June 29, 2018. The modified retrospective method requires the Company to recognize the cumulative effect of the adoption of ASC 606, for all contracts with customers, to the opening balance of equity at June 30, 2018. Accordingly, the Company’s comparative financial information as of June 29, 2018 has not been adjusted and continues to be reported under ASC 605, Revenue Recognition (“ASC 605”). The cumulative effect adjustment recorded was based on the timing difference of revenue recognition between ASC 605 and ASC 606 related to certain manufacturing contracts with vendor managed inventory arrangements. Under ASC 605, revenue for such contracts was recognized at the earlier of when the inventory was consumed by the customers or if not consumed, on the expiration of time specified in the contract. On adoption of ASC 606, revenue is recognized when inventory is shipped to the customers.
Concentration of credit risk	*Concentration of credit risk* Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, marketable securities, derivatives, accounts receivable and contract assets. Cash, cash equivalents, and marketable securities are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate its credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. The Company limits its investments in marketable securities to securities with a maturity not in excess of three years, and all marketable securities that the Company invests in are rated A1, P-1, F1, or better. The Company performs ongoing credit evaluations for credit worthiness of its customers and usually does not require collateral from its customers. Management has implemented a program to closely monitor near term cash collection and credit exposures to mitigate any material losses.
New Accounting Pronouncements - not yet adopted by the Company	*New Accounting Pronouncements – not yet adopted by the Company* In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-13, “Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU is intended to improve the effectiveness of disclosures in the notes to the financial statements including 1) the development of a framework that promotes consistent decisions by the Board about disclosure requirements and 2) the appropriate exercise of discretion by reporting entities. The amendment modifies the disclosure requirements on transferring between level 1 and level 2 and valuation processes of level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842), Target Improvements.” This ASU provided guidance on comparative reporting requirements for initial adoption. This ASU also provides additional guidance for lessors, on separating lease and non-lease components in a contract and allocating the consideration in the contract to the separate components. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases.” The amendment in this update affects narrow aspects of the guidance issued in the amendments in update 2016-02 on various matters. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This amendment modified the concept of impairment assessment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Public companies that are SEC filers should adopt the amendment for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the amendments will impact its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Lease (Topic 842).” The core principle of Topic 842 is that a lessee should recognize the lease assets and liabilities that arise from leases in the statement of financial position. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

Accounting policies (Tables)

3 Months Ended

Sep. 28, 2018

Summary of Impact of Adoption of ASC 606 on Condensed Consolidated Balance Sheets

The following table shows the impact of adoption of ASC 606 on adoption date of June 29, 2018 on the unaudited condensed consolidated balance sheets:

Condensed Consolidated Balance Sheets


	Impact of Adopting ASC 606
(amount in thousands)	Balance at June 29, 2018		Adjustment			Balance at June 30, 2018
Assets
Contract assets	$	—	$	9,877	⁽¹⁾	$	9,877
Inventory, net	$	257,687	$	(8,672	)⁽²⁾	$	249,015
Liabilities and Shareholders’ Equity
Retained earnings	$	632,423	$	1,205	⁽³⁾	$	633,628

⁽¹⁾	Majority of adjustment relates to certain manufacturing contracts with vendor managed inventory arrangements for which revenue was recognized on shipment.

⁽²⁾	Adjustment relates to reduction of finished goods inventory for certain vendor managed inventory arrangements.

⁽³⁾	Adjustment relates to cumulative effect adjustment upon adoption of ASC 606.

Revenues (Tables)

3 Months Ended

Sep. 28, 2018

Schedule of Activity in the Company's Contract Assets

The following table summarizes the activity in the Company’s contract assets during the three-month period ended September 29, 2018:


(amount in thousands)	Contract Assets
Beginning balance, June 30, 2018	$	—
Cumulative effect adjustment at June 30, 2018		9,877
Revenue recognized		27,954
Amounts collected or invoiced		(27,674	)

Ending balance, September 28, 2018	$	10,157

Schedule of Impact of Topic 606 on Financial Statements

Condensed Consolidated Statement of Operations

Three Months Ended September 28, 2018


	Impact of Adopting ASC 606
(amount in thousands)	As Reported			Adjustment			Balance without ASC 606 Adoption
Revenues	$	377,177		$	(280	)⁽¹⁾	$	376,897
Cost of revenues	$	(336,901	)	$	249	⁽²⁾	$	(336,652	)

Gross profit	$	40,276		$	(31	)⁽³⁾	$	40,245

Net income	$	27,850		$	(31	)⁽³⁾	$	27,819
Earnings per share
Basic	$	0.76		$	(0.00	)	$	0.76

Diluted	$	0.75		$	(0.00	)	$	0.75

⁽¹⁾	Adjustment relates to certain manufacturing contracts with vendor managed inventory arrangements for which revenue was recognized at shipping.

⁽²⁾	Adjustment relates to costs associated with revenue recognized.

⁽³⁾	Adjustment relates to net impact on income upon adoption of ASC 606.

Condensed Consolidated Balance Sheets

As of September 28, 2018


	Impact of Adopting ASC 606
(amount in thousands)	As Reported		Adjustments			Balance without ASC 606 Adoption
Assets
Contract assets	$	10,157	$	(10,157	)⁽¹⁾	$	—
Inventory, net	$	278,397	$	8,921	⁽²⁾	$	287,318
Liabilities and Shareholders’ Equity
Retained earnings	$	661,478	$	(1,236	)⁽³⁾	$	660,242

⁽¹⁾	Majority of adjustment relates to certain manufacturing contracts with vendor managed inventory arrangements for which revenue was recognized on shipment.

⁽²⁾	Adjustment relates to reduction of finished goods inventory for vendor managed inventory.

⁽³⁾	Adjustment relates to cumulative effect adjustment upon adoption of ASC 606.

Disaggregation of Revenue by Geographical Regions

The following table presents total revenues by geographic regions:


(amount in thousands)	Three Months Ended September 28, 2018		As a % of Total Revenues
North America	$	179,826		47.7	%
Asia-Pacific		151,947		40.3
Europe		45,404		12.0

	$	377,177		100.0	%

Revenues by End Market

The following table sets forth our revenues by end market.


(amount in thousands)	Three Months Ended September 28, 2018		As a % of Total Revenues
Optical communications	$	280,768		74.4	%
Lasers, sensors and other		96,409		25.6

Total	$	377,177		100.0	%

Earnings per ordinary share (Tables)

3 Months Ended

Sep. 28, 2018

Earnings Per Ordinary Share

Earnings per ordinary share was calculated as follows:


	Three Months Ended
(amount in thousands except per share amounts)	September 28, 2018		September 29, 2017
Net income attributable to shareholders	$	27,850	$	21,033

Weighted-average number of ordinary shares outstanding (thousands of shares)		36,625		37,447
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares)		515		716

Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		37,140		38,163

Basic earnings per ordinary share	$	0.76	$	0.56
Diluted earnings per ordinary share	$	0.75	$	0.55
Outstanding performance share units excluded in the computation of diluted earnings per ordinary share (thousands of shares) ⁽¹⁾		351		—

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

Cash, cash equivalents and marketable securities (Tables)

3 Months Ended

Sep. 28, 2018

Cash, Cash Equivalents, and Marketable Securities

The Company’s cash, cash equivalents, and marketable securities can be analyzed as follows:


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain/(Loss)			Cash and Cash Equivalents		Marketable Securities
As of September 28, 2018
Cash	$	201,795	$	—		$	201,795	$	—
Cash equivalents		18,181		—			18,181		—
Corporate bonds and commercial papers		96,810		(887	)		—		95,923
U.S. agency and U.S. treasury securities		34,122		(377	)		—		33,745
Sovereign and municipal securities		2,768		(53	)		—		2,715

Total	$	353,676	$	(1,317	)	$	219,976	$	132,383


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain/(Loss)			Cash and Cash Equivalents		Marketable Securities
As of June 29, 2018
Cash	$	146,778	$	—		$	146,778	$	—
Cash equivalents		11,324		—			11,324		—
Corporate bonds and commercial papers		128,441		(736	)		—		127,705
U.S. agency and U.S. treasury securities		43,734		(324	)		—		43,410
Sovereign and municipal securities		3,185		(31	)		—		3,154

Total	$	333,462	$	(1,091	)	$	158,102	$	174,269

Available-for-Sale Securities Based on Stated Effective Maturities

The following table summarizes the cost and estimated fair value of marketable securities classified as available-for-sale securities based on stated effective maturities as of September 28, 2018:


(amount in thousands)	Carrying Cost		Fair Value
Due within one year	$	16,403	$	16,350
Due between one to three years		117,297		116,033

Total	$	133,700	$	132,383

Fair value of financial instruments (Tables)

3 Months Ended

Sep. 28, 2018

Financial Instruments Measured at Fair Value on Recurring Basis

The following table provides details of the financial instruments measured at fair value on a recurring basis, including:


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of September 28, 2018
Assets
Cash equivalents	$	—	$	18,181		$	—	$	18,181
Corporate bonds and commercial papers		—		95,923			—		95,923
U.S. agency and U.S. treasury securities		—		33,745			—		33,745
Sovereign and municipal securities		—		2,715			—		2,715
Derivative assets		—		249	⁽¹⁾		—		249

Total	$	—	$	150,813		$	—	$	150,813

Liabilities
Derivative liabilities	$	—	$	—		$	—	$	—

Total	$	—	$	—		$	—	$	—


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 29, 2018
Assets
Cash equivalents	$	—	$	11,324		$	—	$	11,324
Corporate bonds and commercial papers		—		127,705			—		127,705
U.S. agency and U.S. treasury securities		—		43,410			—		43,410
Sovereign and municipal securities		—		3,154			—		3,154
Derivative assets		—		—			—		—

Total	$	—	$	185,593		$	—	$	185,593

Liabilities
Derivative liabilities	$	—	$	1,745	⁽²⁾	$	—	$	1,745

Total	$	—	$	1,745		$	—	$	1,745

⁽¹⁾	Foreign currency forward contracts with a notional amount of $6.0 million. Foreign currency option contracts with a notional amount of $19.0 million.

⁽²⁾	Foreign currency forward contracts with a notional amount of $7.0 million and Canadian dollars 0.4 million. Foreign currency option contracts with a notional amount of $30.0 million.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Trade accounts receivable, net (Tables)

3 Months Ended

Sep. 28, 2018

Trade Accounts Receivable, Net


(amount in thousands)	As of September 28, 2018			As of June 29, 2018
Trade accounts receivable	$	258,766		$	246,972
Less: allowance for doubtful account		(61	)		(60	)

Trade accounts receivable, net	$	258,705		$	246,912

Inventory (Tables)

3 Months Ended

Sep. 28, 2018

Inventories


(amount in thousands)	As of September 28, 2018			As of June 29, 2018
Raw materials	$	105,736		$	100,241
Work in progress		136,042			121,797
Finished goods		18,802			20,690
Goods in transit		19,896			17,516

		280,476			260,244
Less: Inventory obsolescence		(2,079	)		(2,557	)

Inventory, net	$	278,397		$	257,687

Business acquisition (Tables)

3 Months Ended

Sep. 28, 2018

Allocation of Total Purchase Price

The Company’s allocation of the total purchase price for the acquisition is summarized below:


(amount in thousands)	Purchase price allocation
Cash	$	474
Accounts receivable		4,064
Inventory		3,490
Other current assets		427
Property, plant and equipment		5,678
Intangibles		4,492
Goodwill		3,883
Other non-current assets		516
Current liabilities		(6,796	)
Deferred tax liabilities		(1,148	)
Other non-current liabilities		(1,563	)

Total fair value of assets acquired and liabilities assumed	$	13,517

Total purchase price, net of cash acquired	$	13,043

Intangibles (Tables)

3 Months Ended

Sep. 28, 2018

Intangibles

The following tables present details of the Company’s intangibles:


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net
As of September 28, 2018
Software	$	6,304	$	(4,461	)	$	—		$	1,843
Customer relationships		4,373		(1,592	)		(44	)		2,737
Backlog		119		(109	)		—			10

Total intangibles	$	10,796	$	(6,162	)	$	(44	)	$	4,590


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net
As of June 29, 2018
Software	$	6,269	$	(4,324	)	$	—		$	1,945
Customer relationships		4,373		(1,413	)		(42	)		2,918
Backlog		119		(101	)		(1	)		17

Total intangibles	$	10,761	$	(5,838	)	$	(43	)	$	4,880

Weighted-Average Remaining Life of Intangible Assets

The weighted-average remaining life of customer relationships and backlog are:


(years)	As of September 28, 2018		As of June 29, 2018
Customer relationships		5.9		6.1
Backlog		0.7		0.9

Estimated Future Amortization of intangibles


(amount in thousands)
2019 (remaining nine months)	$	935
2020		1,098
2021		951
2022		717
2023		453
Thereafter		436

Total	$	4,590

Goodwill (Tables)

3 Months Ended

Sep. 28, 2018

Changes in Carrying Amount of Goodwill from Acquisition

The changes in the carrying amount of goodwill from the acquisition of Fabrinet UK were as follows:


(amount in thousands)	Goodwill
Balance as of June 29, 2018	$	3,828
Foreign currency translation adjustment		(6	)

Balance as of September 28, 2018	$	3,822


(amount in thousands)	Goodwill
Balance as of June 30, 2017	$	3,806
Foreign currency translation adjustment		22

Balance as of June 29, 2018	$	3,828

Borrowings (Tables)

3 Months Ended

Sep. 28, 2018

Total Borrowings, Including Revolving and Long-Term Borrowings

The Company’s total borrowings, including short-term and long-term borrowings, consisted of the following:


Rate ⁽¹⁾	Conditions		Maturity		As of September 28, 2018			As of June 29, 2018
Short-term borrowings:
Current portion of long-term borrowing					$	3,250		$	3,250

Long-term borrowings:
Term loan borrowing:
LIBOR +1.50% per annum		Repayable in quarterly installments		June 2023	$	63,375		$	64,188

						63,375			64,188
Less: Current portion						(3,250	)		(3,250	)

Non-current portion of long-term borrowings					$	60,125		$	60,938

⁽¹⁾	LIBOR is London Interbank Offered Rate.

Movements of Long-Term Loans

The movements of long-term borrowings for the three months ended September 28, 2018 and September 29, 2017 were as follows:


	Three Months Ended
(amount in thousands)	September 28, 2018			September 29, 2017
Opening balance	$	64,188		$	36,400
Repayments during the period		(813	)		(3,400	)

Closing balance	$	63,375		$	33,000

Future Maturities of Long-Term Debt

As of September 28, 2018, future maturities of long-term borrowings during each fiscal year were as follows:


(amount in thousands)
2019 (remaining nine months)	$	2,438
2020		3,250
2021		3,250
2022		3,250
2023		51,187

Total	$	63,375

Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing

Undrawn available credit facilities classified by availability period of future borrowing as of September 28, 2018 and June 29, 2018 were as follows:


(amount in thousands)	September 28, 2018		June 29, 2018
Expiring within one year	$	—	$	—
Expiring beyond one year	$	25,000	$	25,000

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

Share-based compensation (Tables)

3 Months Ended

Sep. 28, 2018

Effect of Recording Share-Based Compensation Expense

The effect of recording share-based compensation expense for the three months ended September 28, 2018 and September 29, 2017 was as follows:


	Three Months Ended
(amount in thousands)	September 28, 2018		September 29, 2017
Share-based compensation expense by type of award:
Restricted share units	$	4,685	$	4,847
Performance share units		295		2,073

Total share-based compensation expense		4,980		6,920
Tax effect on share-based compensation expense		—		—

Net effect on share-based compensation expense	$	4,980	$	6,920

Share-Based Compensation Expense Recorded in Unaudited 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 28, 2018		September 29, 2017
Cost of revenue	$	1,847	$	1,901
Selling, general and administrative expense		3,133		5,019

Total share-based compensation expense	$	4,980	$	6,920

Share Option Activity

The following summarizes share option activity:


	Number of Shares			Number of Exercisable Options		Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value
Balance as of June 29, 2018		2,900			2,900	$	15.16
Granted		—					—		—
Exercised		—					—
Forfeited		—					—
Expired		(2,900	)			$	15.16

Balance as of September 28, 2018		—			—		—


	Number of Shares			Number of Exercisable Options		Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value
Balance as of June 30, 2017		96,688			96,688	$	15.70
Granted		—					—		—
Exercised		(58,531	)			$	15.91
Forfeited		—					—
Expired		—					—

Balance as of September 29, 2017		38,157			38,157	$	15.38

Restricted Share Unit Activity

The following table summarizes restricted share unit activity under the 2010 Plan and 2017 Inducement Plan:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Balance as of June 29, 2018		1,073,580		$	35.19
Granted		255,821		$	48.02
Issued		(369,757	)	$	34.34
Forfeited		(29,845	)	$	38.32

Balance as of September 28, 2018		929,799		$	38.95


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Balance as of June 30, 2017		1,058,605		$	31.59
Granted		321,405		$	39.35
Issued		(259,033	)	$	26.17
Forfeited		(12,967	)	$	35.33

Balance as of September 29, 2017		1,108,010		$	35.07

Performance Share Unit Activity

The following table summarizes performance share unit activity under the 2010 Plan and 2017 Inducement Plan:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Balance as of June 29, 2018		605,892		$	38.41
Granted		201,994		$	48.02
Issued		(227,268	)	$	40.48
Forfeited		(27,954	)	$	39.35

Balance as of September 28, 2018		552,664		$	41.02


	Number of Shares		Weighted- Average Grant Date Fair Value Per Share
Balance as of June 30, 2017		227,268	$	40.48
Granted		281,318	$	39.95
Issued		—		—
Forfeited		—		—

Balance as of September 29, 2017		508,586	$	39.86

Accumulated other comprehensive income (loss) (Tables)

3 Months Ended

Sep. 28, 2018

Changes in AOCI, Net of Tax

The changes in AOCI for the three months ended September 28, 2018 were as follows:


(amount in thousands)	Unrealized net (Losses) Gains on Marketable Securities			Unrealized net (Losses) Gains on Derivative Instruments			Foreign Currency Translation Adjustment			Total
Balance as of June 29, 2018	$	(1,091	)	$	33		$	(199	)	$	(1,257	)
Other comprehensive income before reclassification adjustment		591			—			(200	)		391
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income		(303	)		(1	)		—			(304	)
Tax effects		—			—			—			—

Other comprehensive income (loss)	$	288		$	(1	)	$	(200	)	$	87

Balance as of September 28, 2018	$	(803	)	$	32		$	(399	)	$	(1,170	)


(amount in thousands)	Unrealized net (Losses) Gains on Marketable Securities			Unrealized net (Losses) Gains on Derivative Instruments			Foreign Currency Translation Adjustment			Total
Balance as of June 30, 2017	$	(72	)	$	34		$	(310	)	$	(348	)
Other comprehensive income before reclassification adjustment		382			—			526			908
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income		(353	)		(1	)		—			(354	)
Tax effects		—			—			—			—

Other comprehensive income (loss)	$	29		$	(1	)	$	526		$	554

Balance as of September 29, 2017	$	(43	)	$	33		$	216		$	206

Commitments and contingencies (Tables)

3 Months Ended

Sep. 28, 2018

Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases

As of September 28, 2018, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows:


(amount in thousands)
2019 (remaining nine months)	$	1,396
2020		1,721
2021		1,320
2022		1,204
2023		1,195
Thereafter		230

Total minimum operating lease payments	$	7,066

Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases

As of September 28, 2018, the future minimum lease payments due under non-cancelable capital leases during each fiscal year were as follows:


(amount in thousands)
2019 (remaining nine months)	$	333
2020		410
2021		105
2022		—

Total minimum capital lease payments	$	848

Business segments and geographic information (Tables)

3 Months Ended

Sep. 28, 2018

Total Revenues by Geographic Regions

The following table presents total revenues by geographic regions:


	Three Months Ended
(amount in thousands)	September 28, 2018		September 29, 2017
North America	$	179,826	$	156,991
Asia-Pacific		151,947		142,863
Europe		45,404		57,459

	$	377,177	$	357,313

Summary of Impact of Adoption of ASC 606 on Condensed Consolidated Balance Sheets (Detail) - USD ($)
$ in Thousands

Sep. 28, 2018

Jun. 30, 2018

Jun. 29, 2018

Assets

Contract assets

$ 10,157

$ 9,877

Inventory, net

278,397

249,015

$ 257,687

Liabilities and Shareholders' Equity

Retained earnings

661,478

633,628

632,423

ASU 2014-09 | Balance without ASC 606 Adoption

Assets

Inventory, net

287,318

257,687

Liabilities and Shareholders' Equity

Retained earnings

660,242

$ 632,423

ASU 2014-09 | Adjustment

Assets

Contract assets

^[1]

(10,157)

9,877

Inventory, net

8,921

^[2]

(8,672)

^[3]

Liabilities and Shareholders' Equity

Retained earnings

$ (1,236)

^[4]

$ 1,205

^[5]

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

Revenues - Additional Information (Detail) (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 28, 2018	Jun. 29, 2018
Revenue From Contract With Customers [Line Items]
Product warranty, description	The Company generally provides a warranty of between one to five years
Contract Liability		$ 0	$ 0
Incremental cost		$ 0
Minimum
Revenue From Contract With Customers [Line Items]
Product warranty term	1 year
Maximum
Revenue From Contract With Customers [Line Items]
Product warranty term	5 years

Schedule of Activity in the Company's Contract Assets (Detail) - USD ($)
$ in Thousands

3 Months Ended

Sep. 28, 2018

Jun. 30, 2018

Revenue From Contract With Customers [Line Items]

Cumulative effect adjustment at June 30, 2018

$ 10,157

$ 9,877

Revenue recognized

27,954

Amounts collected or invoiced

(27,674)

Ending balance, September 28, 2018

10,157

ASU 2014-09 | Adjustment

Revenue From Contract With Customers [Line Items]

Cumulative effect adjustment at June 30, 2018

^[1]

(10,157)

$ 9,877

Ending balance, September 28, 2018

^[1]

$ (10,157)

[1]	Majority of adjustment relates to certain manufacturing contracts with vendor managed inventory arrangements for which revenue was recognized on shipment.

Schedule of Impact of Topic 606 on Financial Statements (Detail) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Sep. 28, 2018

Sep. 29, 2017

Jun. 30, 2018

Jun. 29, 2018

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Revenues

$ 377,177

Cost of revenues

(336,901)

$ (316,981)

Gross profit

40,276

40,332

Net income

$ 27,850

$ 21,033

Earnings per share

Basic

$ 0.76

$ 0.56

Diluted

$ 0.75

$ 0.55

Assets

Contract assets

$ 10,157

$ 9,877

Inventory, net

278,397

249,015

$ 257,687

Liabilities and Shareholders' Equity

Retained earnings

661,478

633,628

632,423

ASU 2014-09 | Adjustment

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Revenues

^[1]

(280)

Cost of revenues

^[2]

249

Gross profit

^[3]

(31)

Net income

^[3]

$ (31)

Earnings per share

Basic

$ 0.00

Diluted

$ 0.00

Assets

Contract assets

^[4]

$ (10,157)

9,877

Inventory, net

8,921

^[5]

(8,672)

^[6]

Liabilities and Shareholders' Equity

Retained earnings

(1,236)

^[7]

$ 1,205

^[8]

ASU 2014-09 | Balance without ASC 606 Adoption

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

376,897

(336,652)

40,245

$ 27,819

Earnings per share

Basic

$ 0.76

Diluted

$ 0.75

Assets

Inventory, net

$ 287,318

257,687

Liabilities and Shareholders' Equity

Retained earnings

$ 660,242

$ 632,423

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

Disaggregation of Revenue by Geographical Regions (Detail) $ in Thousands	3 Months Ended
	Sep. 28, 2018 USD ($)
Revenues	$ 377,177
Revenues, percentage	100.00%
North America
Revenues	$ 179,826
Revenues, percentage	47.70%
Asia-Pacific
Revenues	$ 151,947
Revenues, percentage	40.30%
Europe
Revenues	$ 45,404
Revenues, percentage	12.00%

Revenues - Revenues by End Market (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Revenue from External Customer [Line Items]
Revenues	$ 377,177	$ 357,313
Revenues, percentage	100.00%
Optical communications
Revenue from External Customer [Line Items]
Revenues	$ 280,768
Revenues, percentage	74.40%
Lasers, sensors, and other
Revenue from External Customer [Line Items]
Revenues	$ 96,409
Revenues, percentage	25.60%

Earnings Per Ordinary Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

Sep. 28, 2018

Sep. 29, 2017

Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]

Net income attributable to shareholders

$ 27,850

$ 21,033

Weighted-average number of ordinary shares outstanding (thousands of shares)

36,625

37,447

Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares)

515

716

Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)

37,140

38,163

Basic earnings per ordinary share

$ 0.76

$ 0.56

Diluted earnings per ordinary share

$ 0.75

$ 0.55

Outstanding performance share units excluded in the computation of diluted earnings per ordinary share (thousands of shares)

^[1]

351

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

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings Per Ordinary Share - Additional Information (Detail) - shares	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	0	0

Cash, Cash Equivalents, and Marketable Securities (Detail) - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 29, 2018	Sep. 29, 2017
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents and Marketable securities, Carrying Cost	$ 353,676	$ 333,462
Marketable securities, Unrealized Gain/(Loss)	(1,317)	(1,091)
Cash and cash equivalents	219,976	158,102	$ 111,631
Marketable securities	132,383	174,269
Cash
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	201,795	146,778
Cash and cash equivalents	201,795	146,778
Cash Equivalents
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	18,181	11,324
Cash and cash equivalents	18,181	11,324
Corporate bonds and commercial papers
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	96,810	128,441
Marketable securities, Unrealized Gain/(Loss)	(887)	(736)
Marketable securities	95,923	127,705
U.S. agency and U.S. treasury securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	34,122	43,734
Marketable securities, Unrealized Gain/(Loss)	(377)	(324)
Marketable securities	33,745	43,410
Sovereign And Municipal Securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	2,768	3,185
Marketable securities, Unrealized Gain/(Loss)	(53)	(31)
Marketable securities	$ 2,715	$ 3,154

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail)	3 Months Ended
	Sep. 28, 2018 USD ($)
Cash, cash equivalents and marketable securities [Line Items]
Gain from sales and maturities of available-for-sale securities	$ 100,000
Impairment losses	0
Bank deposit held in various financial institutions	$ 40,000,000
Minimum
Cash, cash equivalents and marketable securities [Line Items]
Maturities period of marketable securities	3 months
Maximum
Cash, cash equivalents and marketable securities [Line Items]
Maturities period of marketable securities	3 years

Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 29, 2018
Investments Classified by Contractual Maturity Date [Line Items]
Total	$ 132,383	$ 174,269
Fair Value
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	16,350
Due between one to three years	116,033
Total	132,383
Carrying Cost
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	16,403
Due between one to three years	117,297
Total	$ 133,700

Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($)
$ in Thousands

Sep. 28, 2018

Jun. 29, 2018

Assets

Derivative assets

$ 249

Total

150,813

$ 185,593

Liabilities

Derivative liabilities

1,745

Total

1,745

Cash Equivalents

Assets

Marketable securities

18,181

11,324

Corporate bonds and commercial papers

Assets

Marketable securities

95,923

127,705

U.S. agency and U.S. treasury securities

Assets

Marketable securities

33,745

43,410

Sovereign And Municipal Securities

Assets

Marketable securities

2,715

3,154

Significant Other Observable Inputs (Level 2)

Assets

Derivative assets

^[1]

249

Total

150,813

185,593

Liabilities

Derivative liabilities

^[2]

1,745

Total

1,745

Significant Other Observable Inputs (Level 2) | Cash Equivalents

Assets

Marketable securities

18,181

11,324

Significant Other Observable Inputs (Level 2) | Corporate bonds and commercial papers

Assets

Marketable securities

95,923

127,705

Significant Other Observable Inputs (Level 2) | U.S. agency and U.S. treasury securities

Assets

Marketable securities

33,745

43,410

Significant Other Observable Inputs (Level 2) | Sovereign And Municipal Securities

Assets

Marketable securities

$ 2,715

$ 3,154

[1]	Foreign currency forward contracts with a notional amount of $6.0 million. Foreign currency option contracts with a notional amount of $19.0 million.
[2]	Foreign currency forward contracts with a notional amount of $7.0 million and Canadian dollars 0.4 million. Foreign currency option contracts with a notional amount of $30.0 million.

Financial Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Fair Value, Measurements, Recurring $ in Millions, $ in Millions	Sep. 28, 2018 USD ($)	Jun. 29, 2018 USD ($)	Jun. 29, 2018 CAD ($)
Foreign currency forward contracts
Fair Value Measurements at Reporting Date Using
Derivative assets, notional amount	$ 6.0
Derivative liabilities, notional amount		$ 7.0	$ 0.4
Foreign currency option contracts
Fair Value Measurements at Reporting Date Using
Derivative assets, notional amount	$ 19.0
Derivative liabilities, notional amount		$ 30.0

Fair Value of Financial Instruments - Additional Information (Detail)	3 Months Ended
	Sep. 28, 2018 USD ($) Contract	Sep. 29, 2017 USD ($) Contract	Jun. 30, 2018 Contract	Jun. 29, 2018 USD ($)	Sep. 29, 2017 CAD ($) Contract
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gain (loss) on derivatives	$ 4,232,000	$ (2,026,000)
Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative liabilities				$ 1,700,000
Derivative assets	$ 200,000
Foreign currency forward contracts \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract	3	15			15
Derivative notional amount	$ 6,000,000	$ 26,000,000			$ 600,000
Unrealized gain (loss) on derivatives	$ 200,000	$ (400,000)
Foreign currency forward contracts \| Non designated \| Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2018-10	2017-10
Foreign currency forward contracts \| Non designated \| Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2018-12	2017-12
Foreign currency forward contracts \| Cash Flow Hedging
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract	0		0
Foreign currency option contracts \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract	6
Derivative notional amount	$ 19,000,000

Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 29, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 258,766	$ 246,972
Less: Allowance for doubtful account	(61)	(60)
Trade accounts receivable, net	$ 258,705	$ 246,912

Inventory (Detail) - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 30, 2018	Jun. 29, 2018
Inventory [Line Items]
Raw materials	$ 105,736		$ 100,241
Work in progress	136,042		121,797
Finished goods	18,802		20,690
Goods in transit	19,896		17,516
Inventory, Gross, Total	280,476		260,244
Less: Inventory obsolescence	(2,079)		(2,557)
Inventory, net	$ 278,397	$ 249,015	$ 257,687

Business Acquisition - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
	Sep. 14, 2016	Sep. 28, 2018	Jun. 29, 2018	Sep. 29, 2017
Business Acquisition [Line Items]
Restricted cash in connection with business acquisition				$ 3,414
Global CEM Solutions, Ltd.
Business Acquisition [Line Items]
Total cash consideration, net of cash acquired	$ 13,043
Business acquisition, cash acquired	$ 500
Percentage of ownership acquired	100.00%
Restricted cash in connection with business acquisition	$ 3,400
Capital lease assets		$ 1,300	$ 1,400
Capital lease liability		800	$ 1,000
Global CEM Solutions, Ltd. \| Customer relationships
Business Acquisition [Line Items]
Intangible assets acquired		$ 4,400
Estimated useful life		10 years
Global CEM Solutions, Ltd. \| Backlog
Business Acquisition [Line Items]
Intangible assets acquired		$ 100
Estimated useful life		3 years

Allocation of Total Purchase Price (Detail) - USD ($) $ in Thousands	Sep. 14, 2016	Sep. 28, 2018	Jun. 29, 2018	Sep. 29, 2017	Jun. 30, 2017
Business Acquisition [Line Items]
Goodwill		$ 3,822	$ 3,828	$ 3,828	$ 3,806
Global CEM Solutions, Ltd.
Business Acquisition [Line Items]
Cash	$ 474
Accounts receivable	4,064
Inventory	3,490
Other current assets	427
Property, plant and equipment	5,678
Intangibles	4,492
Goodwill	3,883
Other non-current assets	516
Current liabilities	(6,796)
Deferred tax liabilities	(1,148)
Other non-current liabilities	(1,563)
Total fair value of assets acquired and liabilities assumed	13,517
Total purchase price, net of cash acquired	$ 13,043

Intangibles (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Intangibles (Detail) - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 29, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 10,796	$ 10,761
Accumulated Amortization	(6,162)	(5,838)
Foreign Currency Translation Adjustment	(44)	(43)
Net	4,590	4,880
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,304	6,269
Accumulated Amortization	(4,461)	(4,324)
Net	1,843	1,945
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,373	4,373
Accumulated Amortization	(1,592)	(1,413)
Foreign Currency Translation Adjustment	(44)	(42)
Net	2,737	2,918
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	119	119
Accumulated Amortization	(109)	(101)
Foreign Currency Translation Adjustment		(1)
Net	$ 10	$ 17

Intangibles - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to intangibles	$ 0.3	$ 0.3

Weighted-Average Remaining Life of Intangible Assets (Detail) - Global CEM Solutions, Ltd.	3 Months Ended	12 Months Ended
	Sep. 28, 2018	Jun. 29, 2018
Customer relationships
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	5 years 10 months 24 days	6 years 1 month 6 days
Backlog
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	8 months 12 days	10 months 24 days

Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 29, 2018
Finite-Lived Intangible Assets [Line Items]
2019 (remaining nine months)	$ 935
2020	1,098
2021	951
2022	717
2023	453
Thereafter	436
Total	$ 4,590	$ 4,880

Changes in Carrying Amount of Goodwill from Acquisition (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Goodwill [Line Items]
Beginning Balance	$ 3,828	$ 3,806
Foreign currency translation adjustment	(6)	22
Ending Balance	$ 3,822	$ 3,828

Total Borrowings, Including Short-Term and Long-Term Borrowings (Detail) - USD ($)
$ in Thousands

3 Months Ended

Sep. 28, 2018

Jun. 29, 2018

Sep. 29, 2017

Jun. 30, 2017

Debt Instrument [Line Items]

Current portion of long-term borrowings

$ 3,250

Long-term borrowings

63,375

64,188

$ 33,000

$ 36,400

Less: Current portion

(3,250)

Non-current portion of long-term borrowings

$ 60,125

60,938

Loan Payable Due June 2023

Debt Instrument [Line Items]

Rate

^[1]

LIBOR +1.50% per annum

Conditions

Repayable in quarterly installments

Term

2023-06

Long-term borrowings

$ 63,375

$ 64,188

Loan Payable Due June 2023 | LIBOR

Debt Instrument [Line Items]

Margin above rate

1.50%

[1]	LIBOR is London Interbank Offered Rate.

Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Debt Instrument [Line Items]
Opening balance	$ 64,188	$ 36,400
Repayments during the period	(813)	(3,400)
Closing balance	$ 63,375	$ 33,000

Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 29, 2018	Sep. 29, 2017	Jun. 30, 2017
Debt Instrument [Line Items]
2019 (remaining nine months)	$ 2,438
2020	3,250
2021	3,250
2022	3,250
2023	51,187
Total	$ 63,375	$ 64,188	$ 33,000	$ 36,400

Borrowings - Additional Information (Detail) - USD ($)	3 Months Ended
Borrowings - Additional Information (Detail) - USD ($)	Sep. 28, 2018	Jul. 25, 2018	Jun. 29, 2018	Jun. 04, 2018	Jul. 24, 2017	May 22, 2014
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	$ 200,000,000
Cash, cash equivalents and marketable securities at financial institutions located in the United States	40,000,000
Deposits or securities	10,000,000
Minimum net worth required for credit agreement	$ 200,000,000
Percentage of quarterly net income required for credit agreement	50.00%
Minimum debt service coverage ratio	150.00%
Maximum senior leverage ratio	250.00%
Minimum quick ratio required for credit agreement	110.00%
Interest expense from remaining unamortized debt issuance costs	$ 100,000
Derivative, maturity date	2023-06
Net loss on interest rate swap agreement	$ (33,000)
After Fifth Amendment
Line of Credit Facility [Line Items]
Cash, cash equivalents and marketable securities at financial institutions located in the United States	40,000,000
Deposits or securities	20,000,000
Minimum net worth required for credit agreement	$ 338,000,000
Percentage of quarterly net income required for credit agreement	50.00%
Minimum debt service coverage ratio	150.00%
Maximum senior leverage ratio	250.00%
Minimum quick ratio required for credit agreement	110.00%
LIBOR
Line of Credit Facility [Line Items]
Credit line interest rate	LIBOR rate plus a spread of 1.75% to 2.50%
LIBOR \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate	LIBOR rate plus a spread of 1.50% to 2.25%
LIBOR \| Minimum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	1.75%
LIBOR \| Minimum \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	1.50%
LIBOR \| Maximum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	2.50%
LIBOR \| Maximum \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	2.25%
Base Rate
Line of Credit Facility [Line Items]
Credit line interest rate	Base rate, determined in accordance with the Facility Agreement, plus a spread of 0.75% to 1.50%
Base Rate \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate	Base rate plus a spread of 0.50% to 1.25%
Base Rate \| Minimum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	0.75%
Base Rate \| Minimum \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	0.50%
Base Rate \| Maximum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	1.50%
Base Rate \| Maximum \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	1.25%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	$ 150,000,000			$ 25,000,000		$ 150,000,000
Line of credit facility increase in borrowing capacity	$ 100,000,000
Line of credit facility extended termination date	Jun. 04, 2023
Line of credit facility termination date	May 22, 2019
Line of credit facility, additional commitments				200,000,000
Term Loan Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	$ 50,000,000
Line of credit facility amount outstanding	$ 63,400,000		$ 64,200,000	$ 65,000,000
Derivative, fixed interest rate		2.86%			1.55%
Derivative, maturity date	2019-05

Undrawn Available Credit Facilities Classified by Availability Period of Future Borrowing (Detail) - USD ($) $ in Thousands	Sep. 28, 2018	Jun. 29, 2018
Expiring within one year
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 0
Expiring beyond one year
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 25,000	$ 25,000

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Jun. 29, 2018
Income Taxes [Line Items]
Liability for uncertain tax positions including accrued interest and penalties	$ 2.4		$ 2.3
Corporate effective income tax rate	6.70%	6.30%
Earliest Tax Year
Income Taxes [Line Items]
Tax year remain open to examination	2013
Latest Tax Year
Income Taxes [Line Items]
Tax year remain open to examination	2017

Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Share-based compensation expense by type of award:
Restricted share units	$ 4,685	$ 4,847
Performance share units	295	2,073
Total share-based compensation expense	4,980	6,920
Tax effect on share-based compensation expense	0	0
Net effect on share-based compensation expense	$ 4,980	$ 6,920

Share-Based Compensation Expense Recorded in Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 4,980	$ 6,920
Cost of Revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,847	1,901
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 3,133	$ 5,019

Share-Based Compensation - Additional Information (Detail) - USD ($)				3 Months Ended
	Dec. 14, 2017	Dec. 20, 2012	Dec. 20, 2010	Sep. 28, 2018	Sep. 29, 2017	Nov. 02, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation costs capitalized				$ 0	$ 0
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes				201,877	85,758
Tax withholdings related to net share settlement of restricted share units				$ 8,904,000	$ 3,550,000
Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of additional shares authorized	2,100,000	2,100,000	2,100,000
Ordinary shares available for future grant				1,968,456
Stock Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares available for future grant				14,041
Shares authorized for future issuance						160,000
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year				4 years
Options expiration period, year				7 years
Employee Stock Option \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense				$ 0
Employee Stock Option \| Vest 12 months after the vesting commencement date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage				25.00%
Employee Stock Option \| Vest monthly over each of the subsequent 36 months
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage				2.083%
Employee Stock Option \| Vest monthly over four years, commencing one month after the vesting commencement date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage				2.083%
Performance Share Units \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding				455,358
Performance Share Units \| Stock Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding				97,306
Performance Share Units \| Executive of the Company
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year				2 years
Performance Share Units \| Executive of the Company \| Vest at the end of the performance period \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage				0.00%
Performance Share Units \| Executive of the Company \| Vest at the end of the performance period \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage				100.00%
Restricted Share Units \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding				881,146
Unrecognized share-based compensation expense				$ 20,000,000
Unrecognized compensation expense, weighted-average period for recognition				2 years 10 months 24 days
Restricted Share Units \| Stock Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding				48,653
Restricted Share Units \| Vesting Option One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year				3 years
Restricted Share Units \| Vesting Option Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year				4 years
Restricted Share Units \| Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year				1 year
Restricted Share Units \| Non Employee Director \| Vest on the first of January
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage				100.00%
Performance Stock Units PSU \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense				$ 7,900,000
Unrecognized compensation expense, weighted-average period for recognition				1 year 10 months 24 days

Share Option Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Jun. 29, 2018	Jun. 30, 2017
Number of shares
Beginning balance	2,900	96,688
Granted	0	0
Exercised		(58,531)
Forfeited	0	0
Expired	(2,900)
Ending balance		38,157
Number of Exercisable Options
Number of Exercisable Options		38,157	2,900	96,688
Weighted-Average Exercise Price
Beginning balance	$ 15.16	$ 15.70
Granted	0	0
Exercised		15.91
Forfeited	0	0
Expired	15.16
Ending balance		15.38
Weighted-Average Grant Date Fair Value
Granted	$ 0	$ 0

Restricted Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Restricted Share Units - $ / shares	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Number of restricted share units
Number of share units, Beginning Balance	1,073,580	1,058,605
Number of share units, Granted	255,821	321,405
Number of share units, Issued	(369,757)	(259,033)
Number of share units, Forfeited	(29,845)	(12,967)
Number of share units, Ending Balance	929,799	1,108,010
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 35.19	$ 31.59
Weighted-average grant date fair value per share, Granted	48.02	39.35
Weighted-average grant date fair value per share, Issued	34.34	26.17
Weighted-average grant date fair value per share, Forfeited	38.32	35.33
Weighted-average grant date fair value per share, Ending Balance	$ 38.95	$ 35.07

Performance Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Performance Share Units - $ / shares	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Number of performance share units
Number of share units, Beginning Balance	605,892	227,268
Number of share units, Granted	201,994	281,318
Number of share units, Issued	(227,268)
Number of share units, Forfeited	(27,954)
Number of share units, Ending Balance	552,664	508,586
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 38.41	$ 40.48
Weighted-average grant date fair value per share, Granted	48.02	39.95
Weighted-average grant date fair value per share, Issued	40.48
Weighted-average grant date fair value per share, Forfeited	39.35
Weighted-average grant date fair value per share, Ending Balance	$ 41.02	$ 39.86

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017	Jun. 29, 2018	Feb. 28, 2018	Aug. 31, 2017
Shareholders Equity [Line Items]
Ordinary shares, authorized share capital	500,000,000		500,000,000
Ordinary shares, par value	$ 0.01		$ 0.01
Preferred shares, shares authorized	5,000,000		5,000,000
Preferred shares, par value	$ 0.01		$ 0.01
Share repurchase program, approved amount					$ 30.0
Share repurchase program, increase in shares authorized for repurchase				$ 30.0
Shares repurchase issued and outstanding	0
Treasury Stock, carrying basis	$ 17.6
Stock Plan Nineteen Ninety Nine and Twenty Ten
Shareholders Equity [Line Items]
Ordinary shares issued upon vesting of restricted shares	395,148	173,275
Ordinary shares issued upon exercise of options		58,531
Ordinary shares issued upon exercise of options, weighted average exercise price		$ 15.91

Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 740,939
Other comprehensive income before reclassification adjustment	391	$ 908
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income	(304)	(354)
Tax effects	0	0
Total other comprehensive (loss) income, net of tax	87	554
Ending Balance	766,157
Unrealized Net (Losses) Gains on Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(1,091)	(72)
Other comprehensive income before reclassification adjustment	591	382
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income	(303)	(353)
Tax effects	0	0
Total other comprehensive (loss) income, net of tax	288	29
Ending Balance	(803)	(43)
Unrealized Net (Losses) Gains on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	33	34
Amounts reclassified out of AOCI to foreign exchange loss in the unaudited condensed consolidated statements of operations and comprehensive income	(1)	(1)
Tax effects	0	0
Total other comprehensive (loss) income, net of tax	(1)	(1)
Ending Balance	32	33
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(199)	(310)
Other comprehensive income before reclassification adjustment	(200)	526
Tax effects	0	0
Total other comprehensive (loss) income, net of tax	(200)	526
Ending Balance	(399)	216
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(1,257)	(348)
Tax effects	0	0
Ending Balance	$ (1,170)	$ 206

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended
	Jan. 10, 2017	Sep. 28, 2018	Sep. 29, 2017	Jun. 29, 2018	Dec. 23, 2016
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of the company		$ 1.5		$ 1.5
Rental expense under operating leases		0.5	$ 0.5
Thailand
Commitments and Contingencies Disclosure [Line Items]
Purchase of land					$ 5.6
Payment to purchase of land	$ 1.1
Outstanding commitment to third parties		$ 4.9
Maximum
Commitments and Contingencies Disclosure [Line Items]
Operating lease expiration year		2023

Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases (Detail) $ in Thousands	Sep. 28, 2018 USD ($)
Operating Leased Assets [Line Items]
2019 (remaining nine months)	$ 1,396
2020	1,721
2021	1,320
2022	1,204
2023	1,195
Thereafter	230
Total minimum operating lease payments	$ 7,066

Future Minimum Lease Payments Due Under Non-Cancelable Capital Leases (Detail) $ in Thousands	Sep. 28, 2018 USD ($)
Capital Leased Assets [Line Items]
2019 (remaining nine months)	$ 333
2020	410
2021	105
2022	0
Total minimum capital lease payments	$ 848

Business Segments and Geographic Information - Additional Information (Detail) $ in Millions	3 Months Ended
	Sep. 28, 2018 USD ($) Customer Segment	Jun. 29, 2018 Customer	Sep. 29, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of operating segment \| Segment	1
Number of customers that contributed more than 10% of trade accounts receivable \| Customer	1	2
North America
Segment Reporting Information [Line Items]
Long-lived assets \| $	$ 32.5		$ 35.0

Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 28, 2018	Sep. 29, 2017
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 377,177	$ 357,313
North America
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	179,826	156,991
Asia-Pacific
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	151,947	142,863
Europe
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 45,404	$ 57,459