Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Jun. 29, 2018	Aug. 13, 2018	Dec. 29, 2017
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 29, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	FN
Entity Registrant Name	FABRINET
Entity Central Index Key	0001408710
Current Fiscal Year End Date	--06-29
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		36,454,146
Entity Public Float			$ 1.1

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Current assets
Cash and cash equivalents	$ 158,102	$ 133,825
Restricted cash in connection with business acquisition	3,331
Marketable securities	174,269	151,450
Trade accounts receivable, net	246,912	264,349
Inventory, net	257,687	238,665
Prepaid expenses	8,061	6,306
Other current assets	5,948	4,159
Total current assets	854,310	798,754
Non-current assets
Restricted cash in connection with business acquisition		3,312
Property, plant and equipment, net	219,640	216,881
Intangibles, net	4,880	5,840
Goodwill	3,828	3,806
Deferred tax assets	5,280	2,905
Other non-current assets	80	1,577
Total non-current assets	233,708	234,321
Total Assets	1,088,018	1,033,075
Current liabilities
Bank borrowings, net of unamortized debt issuance costs	3,250	48,402
Trade accounts payable	220,159	215,262
Capital lease liability, current portion	451	344
Income tax payable	709	1,976
Deferred liability in connection with business acquisition	3,331
Accrued payroll, bonus and related expenses	13,476	13,852
Accrued expenses	9,013	9,227
Other payables	19,728	22,209
Total current liabilities	270,117	311,272
Non-current liabilities
Long-term loan from bank, net of unamortized debt issuance costs	60,938	22,701
Deferred tax liability	2,284	1,981
Capital lease liability, non-current portion	516	1,024
Deferred liability in connection with business acquisition		3,312
Severance liabilities	10,162	8,488
Other non-current liabilities	3,062	2,723
Total non-current liabilities	76,962	40,229
Total Liabilities	347,079	351,501
Commitments and contingencies (Note 19)
Shareholders' equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of June 29, 2018 and June 30, 2017)
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 37,723,733 shares and 37,340,496 shares issued; and 36,434,630 shares and 37,340,496 shares outstanding as of June 29, 2018 and June 30, 2017, respectively)	377	373
Additional paid-in capital	151,797	133,293
Less: Treasury shares (1,289,103 shares and zero shares as of June 29, 2018 and June 30, 2017, respectively)	(42,401)
Accumulated other comprehensive loss	(1,257)	(348)
Retained earnings	632,423	548,256
Total Shareholders' Equity	740,939	681,574
Total Liabilities and Shareholders' Equity	$ 1,088,018	$ 1,033,075

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 29, 2018	Jun. 30, 2017
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	37,723,733	37,340,496
Ordinary shares, shares outstanding	36,434,630	37,340,496
Treasury stocks, shares	1,289,103	0

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Revenues	$ 1,371,925	$ 1,420,490	$ 976,747
Cost of revenues	(1,218,513)	(1,249,030)	(857,224)
Gross profit	153,412	171,460	119,523
Selling, general and administrative expenses	(57,812)	(65,626)	(49,753)
Other income related to flooding, net			36
Expenses related to reduction in workforce	(1,776)
Operating income	93,824	105,834	69,806
Interest income	3,925	1,977	1,535
Interest expense	(3,606)	(3,321)	(1,569)
Foreign exchange loss, net	(6,587)	(1,142)	(1,916)
Other income, net	473	509	376
Income before income taxes	88,029	103,857	68,232
Income tax expense	(3,862)	(6,742)	(6,335)
Net income	84,167	97,115	61,897
Other comprehensive (loss) income, net of tax:
Change in net unrealized (loss) gain on marketable securities	(1,019)	(471)	443
Change in net unrealized (loss) gain on derivative instruments	(1)	(158)	192
Change in foreign currency translation adjustment	111	(310)
Total other comprehensive (loss) income, net of tax	(909)	(939)	635
Net comprehensive income	$ 83,258	$ 96,176	$ 62,532
Earnings per share
Basic	$ 2.26	$ 2.63	$ 1.73
Diluted	$ 2.21	$ 2.57	$ 1.68
Weighted average number of ordinary shares outstanding (thousands of shares)
Basic	37,257	36,927	35,857
Diluted	38,035	37,852	36,872

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Ordinary Shares	Additional Paid-in Capital	Treasury Shares	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning Balance (in shares) at Jun. 26, 2015		35,437,654
Beginning Balance at Jun. 26, 2015	$ 478,944	$ 354	$ 89,390		$ (44)	$ 389,244
Net income	61,897					61,897
Other comprehensive income (loss)	635				635
Share-based compensation expense	9,927		9,927
Issuance of ordinary shares (in shares)		718,792
Issuance of ordinary shares	5,479	$ 8	5,471
Tax withholdings related to net share settlement of restricted share units	(2,463)		(2,463)
Ending Balance (in shares) at Jun. 24, 2016		36,156,446
Ending Balance at Jun. 24, 2016	554,419	$ 362	102,325		591	451,141
Net income	97,115					97,115
Other comprehensive income (loss)	(939)				(939)
Share-based compensation expense	26,507		26,507
Issuance of ordinary shares (in shares)		1,184,050
Issuance of ordinary shares	5,897	$ 11	5,886
Tax withholdings related to net share settlement of restricted share units	(1,425)		(1,425)
Ending Balance (in shares) at Jun. 30, 2017		37,340,496
Ending Balance at Jun. 30, 2017	681,574	$ 373	133,293		(348)	548,256
Net income	84,167					84,167
Other comprehensive income (loss)	(909)				(909)
Share-based compensation expense	22,581		22,581
Issuance of ordinary shares (in shares)		383,237
Issuance of ordinary shares	1,436	$ 4	1,432
Repurchase of treasury shares	(42,401)			$ (42,401)
Tax withholdings related to net share settlement of restricted share units	(5,509)		(5,509)
Ending Balance (in shares) at Jun. 29, 2018		37,723,733
Ending Balance at Jun. 29, 2018	$ 740,939	$ 377	$ 151,797	$ (42,401)	$ (1,257)	$ 632,423

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Cash flows from operating activities
Net income for the year	$ 84,167	$ 97,115	$ 61,897
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	29,087	23,793	17,357
Loss (gain) on disposal of property, plant and equipment	18	(30)	(73)
Loss on disposal of intangibles	447
Loss from sales and maturities of marketable securities	364	822	194
Amortization of investment (discount) premium	(506)	(193)	798
Amortization of deferred debt issuance costs	994	1,396	758
Income related to flooding			(828)
Proceeds from insurers in settlement of claim related to flood damage			272
Reversal of allowance for doubtful accounts	(23)	(1)	(17)
Unrealized loss on exchange rate and fair value of derivative	4,222	1,884	1,905
Share-based compensation	22,581	26,507	9,927
Deferred income tax	(2,074)	754	864
Other non-cash expenses	2,133	2,173	1,744
(Reversal of) Inventory obsolescence	(436)	42	(521)
Loss from written-off inventory due to flood loss			233
Changes in operating assets and liabilities
Trade accounts receivable	17,852	(64,142)	(61,013)
Inventory	(19,432)	(53,802)	(50,598)
Other current assets and non-current assets	(4,464)	(2,231)	(5,901)
Trade accounts payable	3,502	38,293	56,308
Income tax payable	(1,267)	(67)	573
Other current liabilities and non-current liabilities	915	(1,379)	13,209
Net cash provided by operating activities	138,080	70,934	47,088
Cash flows from investing activities
Purchase of marketable securities	(152,908)	(122,778)	(108,341)
Proceeds from sales of marketable securities	61,795	39,578	41,836
Proceeds from maturities of marketable securities	67,417	72,361	67,113
Payments in connection with business acquisition, net of cash acquired		(9,917)
Purchase of property, plant and equipment	(33,825)	(68,262)	(40,616)
Gain on cash settlement of hedged forward contracts			34
Proceeds from disposal of property, plant and equipment	449	230	194
Purchase of intangibles	(1,577)	(1,768)	(379)
Proceeds from insurers in settlement of claims related to flood damage			556
Net cash used in investing activities	(58,649)	(90,556)	(39,603)
Cash flows from financing activities
Payment of debt issuance costs			(654)
Proceeds of short-term loan from bank	5,000	27,500	18,000
Repayment of short-term loan from bank	(1,003)	(157)	(41,500)
Proceeds of long-term loan from bank			50,000
Repayment of long-term loan from bank	(11,212)	(18,100)	(6,000)
Proceeds from issuance of ordinary shares under employee share option plan	1,436	5,890	5,479
Repayment of capital lease liability	(417)	(276)
Repurchase of ordinary shares	(42,401)
Withholding tax related to net share settlement of restricted share units	(5,509)	(1,425)	(2,463)
Net cash (used in) provided by financing activities	(54,106)	13,432	22,862
Net increase (decrease) in cash, cash equivalents and restricted cash	25,325	(6,190)	30,347
Movement in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of period	137,137	142,804	112,978
Increase (decrease) in cash, cash equivalents and restricted cash	25,325	(6,190)	30,347
Effect of exchange rate on cash, cash equivalents and restricted cash	(1,029)	523	(521)
Cash, cash equivalents and restricted cash at end of period	161,433	137,137	142,804
Cash paid for
Interest	2,219	1,924	1,091
Taxes	1,352	5,218	5,473
Cash received for interest	3,945	1,753	1,049
Non-cash investing and financing activities
Construction, software related and equipment related payables	$ 5,144	$ 8,434	$ 20,628

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$ 158,102	$ 133,825
Restricted cash in connection with business acquisition	3,331	3,312
Cash, cash equivalents and restricted cash	$ 161,433	$ 137,137

Business and organization

12 Months Ended

Jun. 29, 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.

Summary of significant accounting policies

12 Months Ended

Jun. 29, 2018

Summary of significant accounting policies

2.	Summary of significant accounting policies

Principles of consolidation

The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. Fiscal year 2018 ended on June 29, 2018 and consisted of 52 weeks. Fiscal year 2017 ended on June 30, 2017 and consisted of 53 weeks. Fiscal year 2016 ended on June 24, 2016 and consisted of 52 weeks.

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include Fabrinet and its subsidiaries. All inter-company accounts and transactions have been eliminated.

On September 14, 2016, the Company acquired Global CEM Solutions, Ltd. and all of its subsidiaries (collectively, “Fabrinet UK”), a privately-held group located in Wiltshire, United Kingdom. The consolidated financial statements of the Company include the financial position, results of operations and the cash flows of Fabrinet UK commencing as of the acquisition date. See Note 9, Business acquisition for further details on the accounting for this transaction.

Use of estimates

The preparation of the Company’s 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 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.

Foreign currency transactions and translation

The consolidated financial statements are presented in United States dollars (“$” or “USD”). The functional currency of Fabrinet and most of its subsidiaries is the USD.

With respect to subsidiaries that use USD as their functional currency, transactions denominated in a currency other than USD are translated into USD at the rates of exchange in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the consolidated balance sheet dates. Transaction gains and losses are included in foreign exchange gain (loss) in the accompanying consolidated statements of operations and comprehensive income.

Fabrinet translates the assets and liabilities of its subsidiaries that do not use USD as their functional currency into USD using exchange rates in effect at the end of each period. Revenue and expenses for such subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation adjustment included in accumulated other comprehensive income (loss) (“AOCI”) in the Company’s consolidated balance sheets.

Cash and cash equivalents

All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. Cash and cash equivalents consist of cash deposited in checking accounts, time deposits with maturities of less than three months, money market accounts, and marketable securities with maturities of three months or less at the date of purchase.

Marketable securities

Management determines the appropriate classification of its investments at the time of purchase and re-evaluates the designations at each balance sheet date. The Company may sell certain of the Company’s 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 marketable securities consist of investment in U.S. Treasury and fixed income securities and have been classified and accounted for as available-for-sale.

The Company’s investments in marketable securities are classified as available-for-sale securities and reported at fair value. Unrealized gains and losses related to changes in the fair value of securities are recognized in accumulated other comprehensive income, net of tax, in the Company’s consolidated balance sheets. Changes in the fair value of available-for-sale securities impact the Company’s net income only when such securities are sold or other-than-temporary impairment is recognized. Realized gains and losses on the sale of securities are determined by specific identification of each security’s cost basis.

The Company reviews its marketable securities on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issue and the Company’s intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s amortized cost basis. If the Company believes that an other-than-temporary decline exists in one of these securities, the Company will write down these investments to fair value.

Trade accounts receivable

Accounts receivable are carried at anticipated realizable value. The Company assesses the collectability of its accounts receivable based on specific customer circumstances, current economic trends, historical experience with collection and the age of past due receivables and provides an allowance for doubtful receivables based on a review of all outstanding amounts at the period end. Bad debts are written-off when identified.

Unanticipated changes in the liquidity or financial position of the Company’s customers may require revision to the allowances for doubtful accounts.

Inventory

Inventory is stated at the lower of cost or market value. Cost is estimated using the standard costing method, computed on a first-in, first-out basis, with adjustments for variances to reflect actual costs not in excess of net realizable market value. Market value is the estimated selling price in the ordinary course of business, less the costs of completion and selling expenses. The Company assesses the valuation of inventory on a quarterly basis and writes down the value for estimated excess and obsolete inventory based upon estimates of future demand.

Leases

Operating leases

Payments made under operating leases are expensed on a straight-line basis over the lease term.

Capital lease

Certain machine and equipment held under capital leases are classified as property, plant and equipment and amortized using the straight-line method over the terms of the lease contracts. The related obligations from the capital lease are recorded as liabilities in the consolidated balance sheets.

Property, plant and equipment

Land is stated at historical cost. Other property, plant and equipment, except for construction in process and machinery under installation, are stated at historical cost less accumulated depreciation. Depreciation is calculated using the straight-line method to write-off the cost of each asset to its residual value over its estimated useful life as follows:


Land improvements			10 years
Building and building improvements			7 - 30 years
Leasehold improvements			Shorter of useful life or lease term
Manufacturing equipment			3 - 7 years
Office equipment			3 - 7 years
Motor vehicles			3 - 5 years
Computer hardware			3 - 5 years

Construction in process and machinery under installation is stated at historic cost and depreciation begins after it is constructed and fully installed and is ready for its intended use in the operations of the Company.

Gains and losses on disposal are determined by comparing proceeds with carrying amounts and are included in operating income in the consolidated statements of operations and comprehensive income.

The Company reviews long-lived assets or asset groups for recoverability on a quarterly basis for any events or changes in circumstances that indicate that their carrying amount may not be recoverable. Recoverability of long-lived assets or asset groups is measured by comparing their carrying amount to the projected undiscounted cash flows that the long-lived assets or asset groups are expected to generate. If such assets are considered to be impaired, the impairment loss recognized, if any, is the amount by which the carrying amount of the property and equipment exceeds its fair value.

Intangibles

Intangibles are stated at historical cost less amortization. Amortization of customer relationships is calculated using the accelerated method as to reflect the pattern in which the economic benefits of the intangible assets are consumed. Amortization of other intangibles is calculated using the straight-line method.

Intangible assets are reviewed for impairment quarterly or more frequently whenever changes or circumstances indicate the carrying amount of related assets may not be recoverable.

Business acquisition

For the acquisition of Fabrinet UK, the Company allocated the fair value of purchase consideration to the assets acquired and liabilities assumed based on their fair values at the acquisition date. The allocation of consideration to the individual net assets was finalized in the fourth quarter of fiscal year 2017.

The acquired intangible assets, which consist of customer relationships and backlog, are recorded as intangibles in the consolidated balance sheets. The fair value of the acquired intangible assets was determined based on the multi-period excess earnings method. The Company reviews intangibles for impairment whenever changes or circumstances indicate the carrying amount may not be recoverable.

In connection with the business acquisition, $3.4 million of cash, net of foreign currency translation adjustment, for deferred consideration, was placed into an escrow account which is under the Company’s control. However, the Company has contractually agreed to remit this deferred consideration to the sellers of Fabrinet UK, subject to the resolution of claims that the Company may make against the funds with respect to indemnification and other claims within 24 months from the closing date of the transaction. As of June 29, 2018, the cash is presented as restricted cash in the consolidated balance sheets within current assets and the related liability is presented within current liabilities for the deferred consideration. As of June 30, 2017, the cash is presented as restricted cash in the consolidated balance sheets within non-current assets and the related liability is presented within non-current liabilities for the deferred consideration.

Goodwill

Goodwill arising from the acquisition is primarily attributable to the ability to expand future products and services and the assembled workforce. Goodwill is reviewed annually for impairment or more frequently whenever changes or circumstances indicate the carrying amount of goodwill may not be recoverable.

Treasury shares

Treasury share purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury shares. Gains and losses in excess of par value on the subsequent reissuance of shares are credited or charged to additional paid-in capital in the consolidated balance sheet using the average-cost method.

Borrowing costs

Borrowing costs are accounted for on an accrual basis and are charged to the consolidated statements of operations and comprehensive income in the year incurred, except for interest costs on general and specific borrowings attributable to finance certain qualifying assets. Such costs to finance qualifying assets are capitalized during the period of time that is required to complete and prepare the assets for their intended use, as part of the cost of the assets. All other borrowing costs are expensed as incurred.

Where funds are not borrowed for a specific acquisition, construction or production of assets, the capitalization rate used to determine the amount of interest to be capitalized is the weighted average interest rate applicable to the Company’s outstanding borrowings during the year. Where funds are borrowed specifically for the acquisition, construction or production of assets, the amount of borrowing costs eligible for capitalization on the respective assets is determined as the actual borrowing costs are incurred on that borrowing during the respective periods.

Fair value of financial instruments

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

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

Level 2 inputs for similar assets and liabilities in active markets other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 inputs that are significant to the fair value measurement and unobservable (i.e. supported by little or no market activity), 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 carrying amounts of certain financial instruments, which include cash and cash equivalents, trade accounts receivable, and trade accounts payable, approximate their fair values due to their short maturities. The carrying amounts of borrowings approximate their fair values as the applicable interest rate is based on market interest rates. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item.

Derivatives

The derivatives assets and liabilities are recognized on the consolidated balance sheets as other current assets or other current liabilities and are measured at fair value.

The Company applies hedge accounting to arrangements that qualify and are designated for cash flow or fair value hedge accounting treatment. Hedge accounting is discontinued prospectively if the hedging relationship ceases to be effective or the hedging or hedged items cease to exist as a result of maturity, sale, termination or cancellation.

Derivatives designated and qualifying as hedges of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges which include forward currency contracts. In a cash flow hedging relationship, the effective portion of the change in the fair value of the hedging derivative is initially recorded in AOCI in the consolidated balance sheets, while any ineffective portion is recognized directly in earnings, as a component of foreign exchange gain (loss) in the consolidated statements of operations and comprehensive income. The portion of gain or loss on the derivative instrument remains in AOCI until the forecasted transaction is recognized in earnings.

The Company also enters into derivative contracts that are intended to economically hedge certain of the Company’s risks. The changes in the fair value of the derivatives are recorded directly in earnings as a component of foreign exchange gain (loss) in the consolidated statements of operations and comprehensive income. In accordance with the fair value measurement guidance, the Company’s accounting policy is to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company executes derivative instruments with financial institutions that are credit-worthy, which the Company defines as institutions that hold an investment grade credit rating.

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 and accounts receivable.

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.

Revenue recognition

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. Revenues represent the invoiced value of products, net of trade discounts and allowances, and exclude goods and services tax. The Company recognizes revenues when realized or realizable and earned. The Company considers revenues realized or realizable and earned when there is persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. Delivery does not occur until products have been shipped or services have been provided to the customer, risk of loss has transferred to the customer and customer acceptance has been obtained, customer acceptance provisions have lapsed, or the Company has objective evidence that the criteria specified in the customer acceptance provisions have been satisfied. In situations where a formal acceptance is required but the acceptance only relates to whether the product meets its published specifications, revenues are generally recognized upon shipment provided all other revenue recognition criteria are met. The sales price is not considered to be fixed or determinable until all contingencies related to the sale have been resolved. The Company reduces revenues for rebates and other similar allowances. Revenues are recognized only if these estimates can be reasonably and reliably determined. The Company bases its estimates utilizing historical results taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for each major category of revenues.

Services

The Company provides services for its customers that range from process design to product manufacturing. The Company recognizes service revenues when the services have been performed. The related costs are expensed as incurred.

Services revenue of $57.1 million, $75.4 million and $31.7 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively.

Sales of goods

Revenues from sales of goods are generally recognized when the product is shipped to the customer and when there are no unfulfilled obligations that affect the customer’s final acceptance of the arrangement. Any cost of warranties and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenues are recognized.

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 are segregated in the Company’s warehouse from other inventory and cannot be used to fulfill other customer orders. In these situations, revenue is only recognized when persuasive evidence of the sales arrangement exists, the goods are completed and ready for shipment, pricing is fixed or determinable, collection is reasonably assured, and title and risk of loss have passed to the customer.

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.

(Reversal of) warranty cost allowances of ($0.02 million), $1.0 million and $0.1 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively.

Shipping and handling costs

The Company records costs related to shipping and handling in cost of revenues for all periods presented.

Share-based compensation

Share-based compensation is recognized in the consolidated financial statements based on grant-date fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The Company estimates the fair value of share option awards utilizing the Black-Scholes-Merton option-pricing model (“BSM”), net of estimated forfeitures. For restricted share units and performance share units, the fair values are based on the market value of our ordinary shares on the date of grant.

Employee contribution plan

The Company operates a defined contribution plan, known as a provident fund, in its subsidiaries in Thailand and the United Kingdom. The assets of these plans are in separate trustee-administered funds. The provident fund is funded by matching payments from employees and by the subsidiaries on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (the “401(k) Plan”), a Defined Contribution Plan under ERISA, at its subsidiaries in the United States, which provides retirement benefits for its eligible employees through tax deferred salary deductions.

Severance liabilities

Under labor protection laws applicable in Thailand and the Company’s subsidiary in Thailand’s employment policy, all employees of such subsidiary with more than 120 days of service are entitled to severance pay on forced termination or retrenchment or in the event that the employee reaches the retirement age of 55. The entitlement to severance pay is determined according to an employee’s individual employment tenure with the Company and is subject to a maximum benefit of 10 months of salary unless otherwise agreed upon in an employee’s employment contract. For employees of other subsidiaries who have a specific termination date, the entitlement to severance pay is determined according to their employment tenure, until their designated termination date.

The Company accounts for these severance liabilities on an actuarial basis using the Projected Unit Credit Method, using the long-term Thai government bond yield as a discount rate. There are no separate plan assets held in respect of these liabilities.

Annual leave

Employee entitlements to annual leave are recognized when they accrue to the employee. On termination of employment, accrued employee entitlement to annual leave is paid in cash.

Income taxes

The Company uses the asset and liability method of accounting for income taxes, whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Fabrinet’s subsidiaries are subject to income tax audits by the respective tax authorities in all of the jurisdictions in which they operate. The determination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations. The Company recognizes liabilities based on its estimate of whether, and the extent to which, additional tax liabilities are more-likely-than-not. If the Company ultimately determines that the payment of such a liability is not probable, then it reverses the liability and recognizes a tax benefit during the period in which the determination is made that the liability is no longer probable. The recognition and measurement of current taxes payable or refundable and deferred tax assets and liabilities requires that the Company makes certain estimates and judgments. Changes to these estimates or a change in judgment may have a material impact on the Company’s tax provision in a future period.

The authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of both positive and negative evidence and the relative weight of the evidence. A company shall reduce its deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is “more likely than not” (i.e., a likelihood of greater than 50 percent) that some portion or all of the deferred tax assets will not be realized. The valuation allowance shall be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. The valuation allowance shall be monitored and considered from all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance for deferred tax assets is not needed.

The accounting standard clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return.

The Company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” to be sustained upon examination by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. The accounting interpretation also provides guidance on measurement methodology, derecognition thresholds, financial statement classification and disclosures, recognition of interest and penalties, and accounting for the cumulative-effect adjustment at the date of adoption.

New Accounting Pronouncements—not yet adopted by the Company

In November 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-14, “Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606): Amendments to SEC Paragraphs Pursuant to the Staff Accounting Bulletin (“SAB”) No. 116 and SEC Release No. 33-10403”. This ASU amended, superseded and added certain SEC paragraphs in Topic 220, Topic 605 and Topic 606 to reflect the August 2017 issuance of SEC Staff Accounting Bulletin (SAB) 116 and SEC Release No. 33-10403. The SEC staff issued SAB 116 to align its revenue guidance with Accounting Standards Codification (ASC) 606. For public business entities, this update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. The Company will implement this standard along with the implementation of ASC 606 effective June 30, 2018 and does not expect that the adoption of this standard will have a material impact on its consolidated financial statements.

In September 2017, the FASB issued ASU 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” The amendment delays the mandatory adoption of Topic 606 and Topic 842 for certain entities, revises the guidance related to performance-based incentive fees in Topic 605 and revises the guidance related to leases in Topic 840 and Topic 842. The revisions to the lease guidance eliminate language specific to certain sale-leaseback arrangements, guarantees of lease residual assets and loans made by lessees to owner-lessors. Also included is an amendment to Topic 842 to retain the guidance in Topic 840 covering the impact of changes in tax rates on investments in leveraged leases. This guidance, which is effective immediately, generally relates to the adoption of Topic 606 and Topic 842. The Company does not expect the amendments will impact 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 is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings.” The amendment provides guidance to the Company in relation to the disclosure of the impact that ASU 2014-09, ASU 2016-02 and ASU 2016-13 will have on the Company’s financial statements when adopted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, “Business Combination (Topic 805): Clarifying the Definition of a Business.” This amendment clarifies the definition of a business to assist entities when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or business. For public companies, this ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted for the transactions that occur before the issuance date or effective date of the amendment, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company does not expect that the adoption of this update will have a material impact on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” The amendments in this ASU provide guidance on the presentation of certain cash receipts and cash payments in the statement of cash flows in order to reduce diversity in existing practice. The amendments in ASU 2016-15 are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company will adopt this new update effective June 30, 2018. The Company does not expect that the adoption of this update will have a material impact on 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.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This new guidance requires certain equity investments to be measured at fair value, use of the exit price notion and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The ASU on recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. In addition, in February 2018, the FASB issued ASU 2018-03,“Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance clarifies certain aspects of the guidance issued in ASU 2016-01 on (1) equity securities without a readily determinable fair value – discontinuation, (2) equity securities without a readily determinable fair value – adjustments, (3) forward contracts and purchased options, (4) presentation requirements for certain fair value option liabilities, and (5) fair value option liabilities denominated in a foreign currency. The Company will adopt this new update effective June 30, 2018. The Company does not expect that the adoption of this update will have a material impact on its consolidated financial statements.

In May 2014, as part of its ongoing efforts to assist in the convergence of accounting principles generally accepted in the United States of America (“U.S. GAAP”), the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASC 606”). The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides alternative methods of initial adoption and is effective for annual and interim periods beginning after December 15, 2017. The FASB has issued several updates to the standard which (1) defer the original effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017 (ASU 2015-14); (2) clarify the application of the principal versus agent guidance (ASU 2016-08); (3) clarify the guidance on inconsequential and perfunctory promises and licensing (ASU 2016-10); and (4) clarify the guidance on certain sections of the guidance providing technical corrections and improvements (ASU 2016-10). In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients”, to address certain narrow aspects of the guidance including collectability criterion, collection of sales taxes from customers, noncash consideration, contract modifications and completed contracts. This issuance does not change the core principle of the guidance in the initial topic issued in May 2014.

The Company set up a team for the implementation of the new revenue recognition accounting standard, including hiring of external advisors to help with the implementation efforts of ASC 606, as amended. The Company utilized a comprehensive approach to evaluate the impact of adopting ASC 606 on its contract portfolio by reviewing the current revenue accounting policies and practices to identify differences that would result from applying the new guidance to the revenue contracts on amount and timing of revenue recognition.

The Company currently recognizes the majority of its manufacturing revenue when title and risk and rewards of ownership have passed, the price to the buyer is fixed or determinable and recoverability is reasonably assured, which generally is when the goods are shipped. The Company has determined that the new standard will have no substantial changes to its current revenue recognition policy as the Company’s revenues will continue to be recognized at a “point in time” model. However, there will be a portion of revenue contracts that will fall into an “over time” model as the customers take control of the products as they are produced, as opposed to at a “point in time” upon physical delivery. Service revenue will also continue to be recognized at an “over time” model as services are performed.

The Company has substantially completed a review of the accounting systems and processes required to apply this new guidance. Additionally, the Company has completed the majority of the assessment phase and documentation of new policies and is currently in the process of adjusting its accounting policies, operational and financial reporting processes, and relevant internal controls and gathering data for the new disclosure requirements.

ASC 606 allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements as of the adoption date. The Company will adopt the standard using the modified retrospective approach, effective as of June 30, 2018.

New Accounting Pronouncements—adopted by the Company

In February 2018, the FASB issued ASU 2018-02 “Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU which allows companies to reclassify stranded tax effects in accumulated other comprehensive income (loss) that have been caused by the Tax Cuts and Jobs Act of 2017 (the Act) to retained earnings for each period in which the effect of the change in the U.S. federal corporate income tax rate is recorded. The FASB has made the reclassification optional. In addition, in March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118,” which updates the income tax accounting in U.S. GAAP to reflect SEC guidance released on December 22, 2017, when the Act was signed into law. The Company adopted these updates with immaterial impact to the consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The amendments better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. This ASU is the final version of Proposed Accounting Standards Update 2016-310—Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which has been deleted. During the fiscal year 2018, the Company adopted this update with no impact to the consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents and restricted cash or restricted cash equivalents. The Company has early adopted this update in the second quarter of fiscal year 2017 on a retrospective basis. As of June 29, 2018 and June 30, 2017, restricted cash in connection with business acquisition of $3.3 million was presented in the statement of cash flows as cash, cash equivalents and restricted cash.

In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies several aspects of the accounting for share-based payment award transactions, including, the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, for public companies. Early adoption is permitted for any entity in any interim or annual period. During fiscal year 2018, the Company adopted this update with no impact to the consolidated financial statements.

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815),” to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815, does not, in and of itself, require designation of the hedging relationship, provided that all other hedge accounting criteria continue to be met. This guidance is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. During fiscal year 2018, the Company adopted this update with no impact to the consolidated financial statements.

Income taxes

12 Months Ended

Jun. 29, 2018

Income taxes

3.	Income taxes

Cayman Islands

Fabrinet is domiciled in the Cayman Islands. Under the current laws of the Cayman Islands, Fabrinet is not subject to tax in the Cayman Islands on income or capital gains. Fabrinet has received this undertaking for a 20-year period ending August 24, 2019. As that date approaches, Fabrinet intends to request a renewal with the office of the Clerk of the Cabinet for another 20 years.

Income of the Company exempted from corporate income tax in the Cayman Islands amounted to $58.4 million, $64.2 million and $41.0 million in the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively.

Thailand

Fabrinet Thailand is where the majority of the Company’s operations and production takes place. The Company is not subject to tax from July 2012 through June 2020 on income generated from the manufacture of products at Pinehurst Building 6, and is not subject to tax from July 2018 through June 2026 on income generated from the manufacture of products at its Chonburi campus. Such preferential tax treatment is contingent on, among other things, the export of the Company’s customers’ products out of Thailand and the Company’s agreement not to move its manufacturing facilities out of its current province in Thailand for at least 15 years from the date on which preferential tax treatment was granted. In March 2016, the Thailand Revenue Department announced the permanent decrease of corporate income tax rates to 20% for tax periods beginning on or after January 1, 2016. As a result, corporate income tax rates for Fabrinet Thailand are expected to remain at 20% from fiscal year 2017 onwards.

People’s Republic of China

The corporate income tax rate for Casix is 25%.

The United States

The Tax Cuts and Jobs Act, or the Tax Reform Act, was enacted on December 22, 2017 and provides for significant changes to U.S. tax law. Among other provisions, the Tax Reform Act reduces the U.S. corporate income tax rate to 21% effective in 2018. Under the Tax Reform Act, our U.S. subsidiaries are subject to an average corporate income tax rate of 27.6% for fiscal year 2018. The subsidiaries’ corporate income tax rate will be 21% beginning in July 2018 for fiscal year 2019.

The United Kingdom

The corporate income tax rate for U.K. subsidiaries is 19%.

The Company’s income tax expense consisted of the following:


	Years Ended
(amount in thousands)	June 29, 2018			June 30, 2017		June 24, 2016
Current	$	5,457		$	5,986	$	5,053
Deferred		(1,595	)		756		1,282

Total income tax expense	$	3,862		$	6,742	$	6,335

The reconciliation between the Company’s taxes that would arise by applying the statutory tax rate of the country of the Company’s principal operations, Thailand, to the Company’s effective tax charge is shown below:


	Years Ended
(amount in thousands)	June 29, 2018			June 30, 2017			June 24, 2016
Income before income taxes ⁽¹⁾	$	88,029		$	103,857		$	68,232
Tax expense calculated at a statutory corporate income tax rate of 20%		17,606			20,771			13,646
Effect of income taxes from locations with tax rates different from Thailand		2,657			(48	)		(3,309	)
Income not subject to tax ⁽²⁾		(12,824	)		(17,212	)		(10,493	)
Income tax on unremitted earnings		1,007			798			527
Effect of different tax rate in relation to deferred tax utilization		423			—			894
Effect of foreign exchange rate adjustment		(134	)		667			375
Tax rebate from research and development application		(454	)		(226	)		(145	)
Provision for uncertain income tax position		277			260			214
Utilization of loss carryforward		(3,224	)		—			—
(Reversal of) valuation allowance ⁽³⁾		(1,587	)		1,517			4,882
Others		115			215			(256	)

Corporate income tax expense	$	3,862		$	6,742		$	6,335

⁽¹⁾	Income before income taxes was mostly generated from domestic income in the Cayman Islands.

⁽²⁾

Income not subject to tax relates to income earned in the Cayman Islands and income subject to an investment promotion privilege for Pinehurst Building 6. Income not subject to tax per ordinary share on a diluted basis was $0.34, $0.45, and $0.28 for the years ended June 29, 2018, June 30, 2017, and June 24, 2016, respectively.

⁽³⁾

As of June 29, 2018, the Company reversed valuation allowances of deferred tax assets of $5.2 million. The reversal was affected by utilization of deferred tax assets from loss carryforward of $3.2 million and effect of different tax rate in relation to deferred tax utilization of $0.4 million which have been separately presented in another line items.

The Company’s deferred tax assets and deferred tax liabilities, net of valuation allowance, at each balance sheet date are as follows:


	As of
(amount in thousands)	June 29, 2018		June 30, 2017
Deferred tax assets:
Depreciation	$	2,151	$	1,674
Severance liability		1,518		1,127
Reserves and allowance		1,545		1,046
Net operating loss carryforwards		1,228		496
Others		277		10

Total	$	6,719	$	4,353


	As of
(amount in thousands)	June 29, 2018			June 30, 2017
Deferred tax liabilities:
Temporary differences from intangibles and changes in the fair value of assets acquired	$	(860	)	$	(944	)
Deferred tax from unremitted earnings		(2,863	)		(2,485	)

Total		(3,723	)		(3,429	)

Net	$	2,996		$	924

As of June 30, 2017, the Company determined that it is more likely than not that deferred tax assets attributable to a subsidiary in the United States would not be realized, primarily due to uncertainties related to the subsidiary’s ability to utilize its net operating loss carryforwards before they expire. Accordingly, the Company established a valuation allowance for such deferred tax asset. During the year ended June 29, 2018, the subsidiary generated taxable income sufficient for the utilization of loss carryforwards due to better operating performance and effective control of operating expenses such that management determined that it is more likely than not that future taxable income would be sufficient to allow the benefit of the loss to be realized. Therefore, as of June 29, 2018, the Company partially set up the valuation allowance of deferred tax assets.

The changes in the valuation allowances of deferred tax assets were as follows:


(amount in thousands)	Valuation allowances of deferred tax assets
Balance as of June 24, 2016	$	4,882
Additional		1,517

Balance as of June 30, 2017		6,399
Reversal		(5,234	)

Balance as of June 29, 2018	$	1,165

The Tax Reform Act contains a number of provisions that may impact us in future years. Since the Tax Reform Act was recently finalized and ongoing guidance and accounting interpretation is expected over the next twelve months, the Company has made certain provisional accounting estimates, as permitted under Staff Accounting Bulletin No. 118, and continued to analyze its accounting policies in this area. The U.S. Treasury Department, the IRS, and other standard-setting bodies could interpret or issue guidance on how provisions of the Tax Reform Act will be applied or otherwise administered that is different from the Company’s interpretation.

As the Company completes its analysis of the Tax Reform Act, collects and prepares necessary data, and interprets any additional guidance, it may make adjustments to provisional amounts that it has recorded that may be material in the period in which the adjustments are made. The final accounting analysis will occur no later than one year from the date the Tax Reform Act was enacted.

Currently, the Company has completed its assessment of the impact from the Tax Reform Act. The Company applied the new corporate tax rate to compute its current income tax and remeasured its deferred tax assets and liabilities for all U.S. subsidiaries as of June 29, 2018 to reflect the lower rate expected to apply when these temporary differences are utilized. The remeasurement resulted in (1) a reduction in current income tax expenses of $0.1 million and (2) a reduction in deferred tax assets of $0.4 million.

Income tax liabilities have not been established for withholding tax and other taxes that would be payable on the unremitted earnings of Fabrinet Thailand. Such amounts of Fabrinet Thailand are permanently reinvested; unremitted earnings for Fabrinet Thailand totaled $102.5 million and $97.3 million as of June 29, 2018 and June 30, 2017, respectively. Unrecognized deferred tax liabilities for such unremitted earnings were $5.8 million and $5.2 million as of June 29, 2018 and June 30, 2017, respectively.

Deferred tax liabilities of $1.0 million and $0.8 million have been established for withholding tax on the unremitted earnings of Casix for the year ended June 29, 2018 and June 30, 2017, respectively, which are included in non-current deferred tax liability in the consolidated balance sheets.

Uncertain income tax positions

Interest and penalties related to uncertain tax positions are recognized in income tax expense. The Company had approximately $0.9 million and $0.6 million of accrued interest and penalties related to uncertain tax positions on the consolidated balance sheets as of June 29, 2018 and June 30, 2017, respectively. The Company recorded interest and penalties of $0.3 million, $0.3 million and $0.2 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively, in the consolidated statements of operations and comprehensive income. With regard to the Thailand jurisdiction, tax years 2013 through 2017 remain open to examination by the local authorities.

The following table indicates the changes to the Company’s uncertain income tax positions for the years ended June 29, 2018, June 30, 2017 and June 24, 2016 included in other non-current liabilities.


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
Beginning balance	$	1,420	$	1,420	$	1,420
Additions during the year		25		—		—
Reductions for tax positions of prior years		—		—		—

Ending balance	$	1,445	$	1,420	$	1,420

Earnings per ordinary share

12 Months Ended

Jun. 29, 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 year using the treasury stock method. Dilutive ordinary equivalent shares consist of share options, restricted share units and performance share units. The earnings per ordinary share was calculated as follows:


	Years Ended
(amount in thousands except per share amounts)	June 29, 2018		June 30, 2017		June 24, 2016
Net income attributable to shareholders	$	84,167	$	97,115	$	61,897

Weighted-average number of ordinary shares outstanding (thousands of shares)		37,257		36,927		35,857
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares)		778		925		1,015

Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		38,035		37,852		36,872

Basic earnings per ordinary share	$	2.26	$	2.63	$	1.73
Diluted earnings per ordinary share	$	2.21	$	2.57	$	1.68

Cash, cash equivalents and marketable securities

12 Months Ended

Jun. 29, 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 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


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain (Loss)			Cash and Cash Equivalents		Marketable Securities
As of June 30, 2017
Cash	$	131,240	$	—		$	131,240	$	—
Cash equivalents		2,585		—			2,585		—
Corporate bonds and commercial papers		98,247		27			—		98,274
U.S. agency and U.S. treasury securities		50,768		(102	)		—		50,666
Sovereign and municipal securities		2,507		3			—		2,510

Total	$	285,347	$	(72	)	$	133,825	$	151,450

The cash equivalents include short-term bank deposits, investments in money market funds, and marketable securities with maturities of three months or less at the date of purchase. The effective interest rate on short term bank deposits was 0.8% and 0.6% per annum for the years ended June 29, 2018 and June 30, 2017, respectively.

As of June 29, 2018 and June 30, 2017, 49% and 66%, respectively, of our cash and cash equivalents were held by the Parent Company.

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 June 29, 2018:


(amount in thousands)	Carrying Cost		Fair Value
Due within one year	$	28,216	$	28,193
Due between one to three years		147,144		146,076

Total	$	175,360	$	174,269

During the year ended June 29, 2018, the net realized loss from changes in fair value of marketable securities recognized by the Company was $0.4 million.

As of June 29, 2018 and June 30, 2017, 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 years ended June 29, 2018 and June 30, 2017.

As of June 29, 2018 and June 30, 2017, cash, cash equivalents, and marketable securities included a bank deposit of $40.0 million held in various financial institutions located in the United States in order to support the availability of the Facility Agreement 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 13, the Company must comply with this covenant from and after the effective date of the Facility Agreement.

Fair Value

12 Months Ended

Jun. 29, 2018

Fair Value

6.	Fair Value

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 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	⁽¹⁾	$	—	$	1,745

Total	$	—	$	1,745		$	—	$	1,745


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 30, 2017
Assets
Cash equivalents	$	—	$	2,585		$	—	$	2,585
Corporate bonds and commercial papers		—		98,274			—		98,274
U.S. agency and U.S. treasury securities		—		50,666			—		50,666
Sovereign and municipal securities		—		2,510			—		2,510
Derivative assets		—		15	⁽²⁾		—		15

Total	$	—	$	154,050		$	—	$	154,050

Liabilities
Derivative liabilities	$	—	$	—		$	—	$	—

Total	$	—	$	—		$	—	$	—

⁽¹⁾	Foreign currency forward contracts with notional amount of $7.0 million and Canadian dollars 0.4 million. Foreign currency option contracts with notional amount of $30.0 million.

⁽²⁾	Foreign currency forward contracts with notional amount of $1.0 million and Canadian dollars 0.6 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 change. 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 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 June 30, 2017, the Company recognized the fair value of foreign currency forward contracts of $0.02 million as derivative assets in the consolidated balance sheets under other current assets.

As of June 29, 2018 and June 30, 2017, the Company had no foreign currency forward contracts designated as cash flow hedges. During the year ended June 30, 2017, the Company discontinued cash flow hedges and recognized a gain from unwinding foreign currency forward contracts of $0.3 million as foreign exchange gain, net in the consolidated statements of operations and comprehensive income.

As of June 29, 2018, the Company had five outstanding foreign currency forward contracts with notional amount of $7.0 million, four outstanding foreign currency option contracts with notional amount of $30.0 million and one foreign currency forward contract with notional amount of Canadian dollars 0.4 million with maturity dates from July through October 2018. These foreign currency forward and option contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht and Canadian dollars. During the year ended June 29, 2018, the Company included unrealized loss of $1.7 million from changes in fair value of foreign currency contracts in earnings as foreign exchange loss, net in the consolidated statements of operations and comprehensive income.

As of June 30, 2017, the Company had two outstanding foreign currency forward contracts with notional amount of $1.0 million and Canadian dollars 0.6 million, with maturity dates from July through September 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 dollars. During the year ended June 30, 2017, the Company included unrealized gain of $0.02 million from changes in fair value of foreign currency contracts in the 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

12 Months Ended

Jun. 29, 2018

Trade accounts receivable, net

7.	Trade accounts receivable, net


(amount in thousands)	As of June 29, 2018			As of June 30, 2017
Trade accounts receivable	$	246,972		$	264,389
Less: Allowance for doubtful account		(60	)		(40	)

Trade accounts receivable, net	$	246,912		$	264,349

- 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

12 Months Ended

Jun. 29, 2018

Inventory

8.	Inventory


(amount in thousands)	As of June 29, 2018			As of June 30, 2017
Raw materials	$	100,241		$	88,640
Work in progress		121,797			105,732
Finished goods		20,690			33,998
Goods in transit		17,516			13,025

		260,244			241,395
Less: Inventory obsolescence		(2,557	)		(2,730	)

Inventory, net	$	257,687		$	238,665

Business acquisition

12 Months Ended

Jun. 29, 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 is under the Company’s control. However, the Company has contractually agreed to remit this deferred consideration to the sellers of Fabrinet UK, subject to the resolution of claims that the Company may make against the funds with respect to indemnification and other claims, within 24 months from the closing date of the transaction.

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. As the functional currency of Fabrinet UK is pound sterling (“GBP”), for the year ended June 29, 2018, the Company recognized a $0.1 million gain from foreign currency translation adjustment in its consolidated statements of operations and comprehensive income, under other comprehensive (loss) income, net of tax.

During the year ended June 30, 2017, the Company recorded a measurement period adjustment to recognized deferred tax liabilities of $1.2 million related to taxable temporary differences from intangibles and changes in the fair value of assets acquired. Therefore, goodwill which was previously reported at acquisition date of $2.7 million was changed to $3.9 million.

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 June 29, 2018, the Company included approximately $1.4 million of capital lease assets and $1.0 million of capital lease liability in the consolidated balance sheets associated with these acquired lease agreements.

During the year ended June 30, 2017, the Company incurred approximately $1.5 million in transaction costs related to the acquisition, which primarily consisted of legal, accounting and valuation-related expenses. These expenses were recorded in selling, general and administrative expense in the accompanying consolidated statements of operations and comprehensive income.

During the year ended June 29, 2018, there were no transaction costs related to the acquisition.

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 identifiable 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, which applied the following key assumptions:


Risk free rate:		30-year UK Government Bond adjusted by spot yield to reflect recent volatility
Long-term revenue growth:		5.0% - 8.0%
Churn rate:		10%
Operating margin:		4.0% - 6.0%

Customer relationships represent the fair value of future projected revenues 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.

Property, plant and equipment, net

12 Months Ended

Jun. 29, 2018

Property, plant and equipment, net

10.

Property, plant and equipment, net

The components of property, plant and equipment, net were as follows:


(amount in thousands)	Land and Land Improvements			Building and Building Improvements			Manufacturing Equipment			Office Equipment			Motor Vehicles			Computers			Construction and Machinery Under Installation		Total
As of June 29, 2018
Cost	$	45,080		$	139,342		$	141,869		$	7,582		$	456		$	21,250		$	8,762	$	364,341
Less: Accumulated depreciation		(6	)		(38,265	)		(86,989	)		(4,454	)		(334	)		(14,653	)		—		(144,701	)

Net book value	$	45,074		$	101,077		$	54,880		$	3,128		$	122		$	6,597		$	8,762	$	219,640

As of June 30, 2017
Cost	$	39,096		$	138,578		$	127,085		$	7,688		$	534		$	19,642		$	6,058	$	338,681
Less: Accumulated depreciation		(2	)		(31,881	)		(72,130	)		(4,163	)		(376	)		(13,248	)		—		(121,800	)

Net book value	$	39,094		$	106,697		$	54,955		$	3,525		$	158		$	6,394		$	6,058	$	216,881

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 remaining balance of the purchase price was fully paid on December 25, 2017.

Leased assets included above comprise certain machine and equipment from capital lease agreements assumed from the acquisition of Fabrinet UK.


(amount in thousands)	As of June 29, 2018			As of June 30, 2017
Cost—Capital leases	$	2,481			2,725
Less: Accumulated depreciation		(1,043	)		(856	)

Net book value	$	1,438			1,869

Depreciation expense amounted to $27.4 million, $22.5 million and $17.3 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively, and has been allocated between cost of revenues and selling, general and administrative expenses in the consolidated statements of operations and comprehensive income.

The cost of fully depreciated property, plant and equipment written-off during the years ended June 29, 2018, June 30, 2017 and June 24, 2016 amounted to $3.5 million, $5.4 million and $2.0 million, respectively.

During the year ended June 29, 2018, the Company had no borrowing costs capitalized. During the year ended June 30, 2017, the Company capitalized $0.5 million of borrowing costs in construction in progress of its new manufacturing building at Chonburi Campus. The Company stopped capitalizing borrowing costs in the third quarter of fiscal year 2017 upon the completion of this campus.

Intangibles

12 Months Ended

Jun. 29, 2018

Intangibles

11.

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 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


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net
As of June 30, 2017
Software	$	5,944	$	(3,850	)	$	—		$	2,094
Customer relationships		4,373		(606	)		(88	)		3,679
Backlog		119		(51	)		(1	)		67

Total intangibles	$	10,436	$	(4,507	)	$	(89	)	$	5,840

In connection with the acquisition of Fabrinet UK, the Company recorded $4.4 million of customer relationships and $0.1 million of backlog in the consolidated balance sheets. As of June 29, 2018, the weighted-average remaining life of customer relationships and backlog was 6.1 years and 0.9 years, respectively. As of June 30, 2017, the weighted-average remaining life of customer relationships and backlog was 6.9 years and 1.6 years, respectively.

The Company recorded amortization expense relating to intangibles of $1.7 million, $1.2 million and $0.1 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively.

As of June 29, 2018, the estimated future amortization of intangible assets during each fiscal year was as follows:


(amount in thousand)
2019	$	1,462
2020		1,038
2021		892
2022		657
2023		400
Thereafter		431

Total	$	4,880

Borrowings

12 Months Ended

Jun. 29, 2018

Borrowings

13. Borrowings

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

(dollars in thousands)


Rate ⁽¹⁾	Conditions		Maturity			As of June 29, 2018			As of June 30, 2017
Short-term borrowings:
Revolving borrowing:
LIBOR + 1.75% per annum		Repayable in 1 to 6 months		July 2017	⁽²⁾	$	—		$	34,000
Short-term borrowings from bank:
Bank of England base rate +1.85% per annum		Repayable based on credit terms of secured accounts receivable					—			1,003
Current portion of long-term borrowings							3,250			13,600

							3,250			48,603
Less: Unamortized debt issuance costs							—			(201	)

						$	3,250		$	48,402

Long-term borrowings:
Term loan borrowing:
LIBOR + 1.75% per annum		Repayable in quarterly installments		May 2019	⁽²⁾	$	—		$	36,400
LIBOR + 1.50% per annum		Repayable in quarterly installments		June 2023	⁽²⁾		64,188			—

							64,188			36,400
Less: Current portion							(3,250	)		(13,600	)
Less: Unamortized debt issuance costs							—			(99	)

Non-current portion of long-term borrowings						$	60,938		$	22,701

⁽¹⁾

LIBOR is London Interbank Offered Rate.

⁽²⁾

In June 2018, the outstanding revolving and term loan borrowings were refinanced to one term loan borrowing and the maturity dates were extended from July 2017 and May 2019 to June 2023.

The movements of long-term borrowings were as follows for the years ended June 29, 2018 and June 30, 2017:


	Years ended
(amount in thousands)	June 29, 2018			June 30, 2017
Opening net book amount	$	36,400		$	54,500
Additional loan during the period		39,000			—
Repayment during the period		(11,212	)		(18,100	)

Closing net book amount	$	64,188		$	36,400

As of June 29, 2018, the future maturities of long-term borrowings during each fiscal year were as follows:


(amount in thousand)
2019	$	3,250
2020		3,250
2021		3,250
2022		3,250
2023		51,188

Total	$	64,188

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. The 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.

The Company fully drew down the term loan facility of $50.0 million in fiscal year 2016. As of June 30, 2017, $34.0 million of revolving borrowing and $36.4 million of term loan borrowing was outstanding under the Facility Agreement. Borrowings under the revolving credit facility are classified as current liabilities in the audited consolidated balance sheet as the Company has the periodic option to renew or pay, all or a portion of, the outstanding balance at the end of the maturity date, which is in the range of one to six months, without premium or penalty, upon notice to the administrative agent.

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 shall be repaid in quarterly installments, beginning on June 30, 2018, with the remaining outstanding principal and accrued and unpaid interest being due and payable on June 4, 2023. After giving effect to the amendment, $65.0 million aggregate principal amount of term loans and no revolving loans were outstanding under the Facility Agreement. In addition, the Fifth Amendment to the Facility Agreement contains an accordion feature permitting the Company to request an increase in the revolving loan facility to provide up to an aggregate of $200.0 million in additional commitments, subject to customary terms and conditions, and provided that no default or event of default exists at the time of such request. 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 June 29, 2018, $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 June 29, 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. During the year ended June 29, 2018, the Company included a net gain of $0.1 million from the settlement of the Swap Agreement as interest expenses in the consolidated statements of operations and comprehensive income.

Short-term borrowings from bank

In connection with the acquisition of Fabrinet UK in the first quarter of fiscal year 2017, the Company assumed a secured borrowing agreement. In the first quarter of fiscal year 2018, the Company fully repaid these short-term loans and sent a notification letter to the bank to terminate this secured borrowing agreement. As a result, the bank released secured trade accounts receivable and the way chattels mortgage over the plant and machine of Fabrinet UK.

Undrawn available credit facilities classified by available period of future borrowing as of June 29, 2018 and June 30, 2017 were as follows:


(amount in thousands)	June 29, 2018		June 30, 2017
Expiring within one year	$	—	$	1,965
Expiring beyond one year	$	25,000	$	116,000

Severance liabilities

12 Months Ended

Jun. 29, 2018

Severance liabilities

14.

Severance liabilities

The following table provides information regarding severance liabilities:


(amount in thousands)	As of June 29, 2018		As of June 30, 2017
Balance, beginning of the fiscal year	$	8,488	$	6,684
Charged to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income		1,674		1,804

Balance, end of the fiscal year	$	10,162	$	8,488

The amount recognized in the consolidated balance sheets under non-current liabilities was determined as follows:


(amount in thousands)	As of June 29, 2018		As of June 30, 2017
Present value of defined benefit obligation	$	10,162	$	8,488

Total	$	10,162	$	8,488

The amount recognized in the consolidated statements of operations and comprehensive income was as follows:


	Years Ended
(amount in thousands)	June 29, 2018			June 30, 2017		June 24, 2016
Current service cost	$	1,751		$	1,451	$	842
Interest cost		295			213		203
Benefit paid		(3,212	)		—		(11	)
Curtailment gain		707			—		—
Actuarial loss on obligation		2,133			140		173

Total	$	1,674		$	1,804	$	1,207

The principal actuarial assumptions used were as follows:


	Years Ended
	June 29, 2018	June 30, 2017		June 24, 2016
Discount rate	2.5% - 3.7%		1.93% - 3.6%		2.0% - 3.2%
Future salary increases	3.5% - 10.0%		3.5% - 10.0%		4.1% - 10.0%

Share-based compensation

12 Months Ended

Jun. 29, 2018

Share-based compensation

15.

Share-based compensation

Share-based compensation

In determining the grant date fair value of share option 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 years ended June 29, 2018, June 30, 2017 and June 24, 2016 was as follows:


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
Share-based compensation expense by type of award:
Share options	$	—	$	—	$	16
Restricted share units		17,143		22,412		9,911
Performance share units		5,438		4,095		—

Total share-based compensation expense		22,581		26,507		9,927
Tax effect on share-based compensation expense		—		—		—

Net effect on share-based compensation expense	$	22,581	$	26,507	$	9,927

Share-based compensation expense was recorded in the consolidated statements of operations and comprehensive income as follows:


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
Cost of revenue	$	6,784	$	5,318	$	1,979
Selling, general and administrative expense		15,797		21,189		7,948

Total share-based compensation expense	$	22,581	$	26,507	$	9,927

The Company did not capitalize any share-based compensation expense as part of any asset costs during the years ended June 29, 2018, June 30, 2017 and June 24, 2016.

Share-based award activity

Fabrinet maintains the following equity incentive plans: the Amended and Restated 1999 Share Option Plan (the “1999 Plan”), the Amended and Restated 2010 Performance Incentive Plan (the “2010 Plan”) and the 2017 Inducement Equity Incentive Plan (the “2017 Inducement Plan”). The 1999 Plan, 2010 Plan and 2017 Inducement Plan are collectively referred to as the “Share Option Plans”.

As of June 29, 2018, there were no outstanding equity awards under the 1999 Plan, and no additional grants may be made under the 1999 Plan.

On December 14, 2017, Fabrinet’s shareholders adopted 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 June 29, 2018, there were an aggregate of 2,900 share options outstanding, 1,024,927 restricted share units outstanding and 508,586 performance share units outstanding under the 2010 Plan. As of June 29, 2018, there were 2,426,271 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 employees. The 2017 Inducement Plan was adopted without shareholder approval in reliance on the “employment inducement exemption” provided under the New York Stock Exchange Listed Company Manual. As of June 29, 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 June 29, 2018, there were 14,041 ordinary shares available for future grant under the 2017 Inducement Plan.

Share options

Share options have been granted to directors and employees. 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.

The following table 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 26, 2015		792,019			758,451	$	16.33
Granted		—					—		—
Exercised		(325,530	)			$	16.83
Forfeited		(755	)			$	17.10
Expired		(1,400	)			$	23.62

Balance as of June 24, 2016		464,334			464,334	$	15.95
Granted		—					—		—
Exercised		(367,641	)			$	16.02
Forfeited		—					—
Expired		(5	)			$	5.75

Balance as of June 30, 2017		96,688			96,688	$	15.70
Granted		—					—		—
Exercised		(92,288	)			$	15.56
Forfeited		—					—
Expired		(1,500	)			$	25.50

Balance as of June 29, 2018		2,900			2,900	$	15.16

Expected to vest as of June 29, 2018		2,900				$	15.16

The fair value of each share option grant was determined by the Company using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment and management estimate to determine.

The total fair value of share options vested during the years ended June 29, 2018, June 30, 2017 and June 24, 2016 was nil, nil and $0.2 million, respectively. The total intrinsic value of options exercised during the years ended June 29, 2018, June 30, 2017 and June 24, 2016 was $2.0 million, $8.9 million and $3.6 million, respectively. In conjunction with these exercises, there was no tax benefit realized by the Company due to the fact that it is exempted from income tax. The amount of cash received from the exercise of share options was $1.4 million during the year ended June 29, 2018.

Valuation Method—The Company estimated the fair value of the Company’s ordinary shares to be used in the BSM by taking into consideration a number of assumptions, as discussed below.

Expected Dividend—The Company used zero as an annualized dividend yield since it did not anticipate paying any cash dividends in the near future.

Expected Volatility – The Company determined the expected volatility based on the Company’s historical volatility over the last four years.

Risk-Free Interest Rate—The Company based the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of the option.

Expected Term—Expected terms used in the BSM represent the periods that the company’s share options are expected to be outstanding and are determined based on the Company’s historical experience of similar awards, giving consideration to the contractual terms of the share options, vesting schedules and expectations of future employee behavior.

Vesting Period—Fabrinet’s share options generally vest and become exercisable over a four-year period, and expire seven years from the date of grant. For an initial grant, 25 percent of the underlying shares subject to an option 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 an optionee, 1/48 of the underlying shares subject to an option vest monthly over four years, commencing one month after the vesting commencement date.

Fair Value—The fair value of Fabrinet’s share options granted to employees was estimated using the weighted-average for each assumption of expected volatility, risk-free rate of return, and expected term.

The following table summarizes information for share options outstanding as of June 29, 2018:


	Number of Shares Underlying Options		Exercise Price Per Share		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (amount in thousands)
		2,900	$	15.16		0.13

Options outstanding		2,900				0.13	$	63

Options exercisable		2,900				0.13	$	63

Expected to vest as of June 29, 2018		2,900				0.13	$	63

As of June 29, 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 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 Company has entered into an employment agreement, as amended on August 12, 2016, with one executive of the Company that provided for accelerated vesting of equity awards under certain circumstances. Pursuant to such agreement, because the executive’s employment with the Company continued through February 20, 2017, (1) all outstanding equity awards granted to the executive prior to August 2016 became 100% vested on February 20, 2017 and (2) certain restricted share units granted to the executive in August 2016 became 100% vested on February 20, 2017.

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 26, 2015		1,140,927		$	16.03
Granted		654,589		$	21.15
Issued		(507,621	)	$	15.60
Forfeited		(106,493	)	$	18.34

Balance as of June 24, 2016		1,181,402		$	18.34
Granted		861,356		$	38.95
Issued		(853,535	)	$	21.16
Forfeited		(130,618	)	$	29.31

Balance as of June 30, 2017		1,058,605		$	31.59
Granted		552,637		$	35.95
Issued		(436,867	)	$	27.81
Forfeited		(100,795	)	$	33.62

Balance as of June 29, 2018		1,073,580		$	35.19

Expected to vest as of June 29, 2018		1,012,791		$	34.87

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 24, 2016		—			—
Granted		234,678		$	40.48
Issued		—			—
Forfeited		(7,410	)		—

Balance as of June 30, 2017		227,268		$	40.48
Granted		378,624		$	37.16
Issued		—			—
Forfeited		—			—

Balance as of June 29, 2018		605,892		$	38.41

Expected to vest as of June 29, 2018		285,280		$	33.98

The fair value of restricted share units and performance share units is based on the market value of our ordinary shares on the date of grant.

The total fair value of restricted share units and performance share units vested during the year ended June 29, 2018, June 30, 2017 and June 24, 2016 was $12.2 million, $18.1 million and $7.9 million, respectively. The aggregate intrinsic value of restricted share units outstanding as of June 29, 2018 was $39.6 million.

As of June 29, 2018, there was $14.2 million and $1.0 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 2.6 years and 1.0 years, respectively.

For the years ended June 29, 2018 and June 30, 2017, the Company withheld an aggregate of 145,918 shares and 37,126 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 fiscal year 2018 and fiscal year 2017, the Company then remitted cash of $5.5 million and $1.4 million, respectively, to the appropriate taxing authorities, and presented it as a financing activity within the 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.

Employee benefit plans

12 Months Ended

Jun. 29, 2018

Employee benefit plans

16.

Employee benefit plans

Employee contribution plan

The Company operates a defined contribution plan, known as a provident fund, in its subsidiaries in Thailand and the United Kingdom. The assets of these plans are in separate trustee-administered funds. The provident fund is funded by matching payments from employees and by the subsidiaries on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company’s contributions to the provident fund amounted to $4.2 million, $3.6 million and $2.8 million during the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively.

The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (“401(k) Plan”), a Defined Contribution Plan under ERISA, at its subsidiaries in the United States which provides retirement benefits for eligible employees through tax deferred salary deductions. The 401(k) Plan allows employees to contribute up to 80% of their annual compensation, subject to annual contributions limits established by the Internal Revenue Service. The Company provides for a 100% match of employees’ contributions to the 401(k) Plan up to the first 6% of annual compensation. All matching contributions are made in cash and vest immediately. The Company’s matching contributions to the 401(k) Plan were $0.7 million, $0.6 million and $0.5 million during the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively.

Executive incentive plan and employee performance bonuses

For the years ended June 29, 2018 and June 30, 2017, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and non-GAAP gross margin targets. For the year ended June 24, 2016, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and non-GAAP earnings per share targets as well as qualitative objectives, based on achieving individual performance goals. During the years ended June 29, 2018, June 30, 2017 and June 24, 2016, discretionary merit-based bonus awards were also available to Fabrinet’s non-executive employees.

Bonus distributions to employees were $4.0 million, $7.6 million and $7.5 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively.

Shareholders' equity

12 Months Ended

Jun. 29, 2018

Shareholders' equity

17.

Shareholders’ equity

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 year ended June 29, 2018, Fabrinet issued 92,288 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $15.56 per share, and 290,949 ordinary shares upon the vesting of restricted share units, net of shares withheld.

For the year ended June 30, 2017, Fabrinet issued 367,641 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $16.02 per share, and 816,409 ordinary shares upon the vesting of restricted share units, net of shares withheld.

For the year ended June 24, 2016, Fabrinet issued 325,530 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $16.83 per share, and 393,262 ordinary shares upon the vesting of restricted share units, net of shares withheld.

All such issued shares are fully paid.

Treasury shares

In August 2017, the Company’s board of directors approved a share repurchase program to permit the Company to repurchase up to $30.0 million worth of its issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations. In February 2018, the Company’s board of directors approved a $30.0 million increase to the share repurchase authorization. During the year ended June 29, 2018, 1,289,103 shares were repurchased under the program, at an average price per share of $32.89 totaling $42.4 million. As of June 29, 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)

12 Months Ended

Jun. 29, 2018

Accumulated other comprehensive income (loss)

18.

Accumulated other comprehensive income (loss)

The changes in AOCI by component for the years ended June 29, 2018 and June 30, 2017 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 24, 2016	$	399		$	192		$	—		$	591
Other comprehensive income before reclassification		351			—			(310	)		41
Amounts reclassified from AOCI		(822	)		(158	)		—			(980	)
Tax effects		—			—			—			—

Other comprehensive income		(471	)		(158	)		(310	)		(939	)

Balance as of June 30, 2017		(72	)		34			(310	)		(348	)
Other comprehensive income before reclassification		(655	)		—			111			(544	)
Amounts reclassified from AOCI		(364	)		(1	)		—			(365	)
Tax effects		—			—			—			—

Other comprehensive income		(1,019	)		(1	)		111			(909	)

Balance as of June 29, 2018	$	(1,091	)	$	33		$	(199	)	$	(1,257	)

The following table presents the pre-tax amounts reclassified from AOCI into the consolidated statements of operations and comprehensive income for the years ended June 29, 2018 and June 30, 2017, respectively (amounts in thousands).


		Years ended
AOCI components	Financial statements line item	June 29, 2018			June 30, 2017
Unrealized losses on marketable securities	Interest income	$	(364	)	$	(822	)
Unrealized gains on derivative instruments	Selling, general and administrative expenses		(1	)		(158	)

Total amounts reclassified from AOCI		$	(365	)	$	(980	)

Commitments and contingencies

12 Months Ended

Jun. 29, 2018

Commitments and contingencies

19.

Commitments and contingencies

Bank guarantees

As of June 29, 2018 and June 30, 2017, 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, vehicle, 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 $1.8 million, $1.7 million and $1.2 million for the years ended June 29, 2018, June 30, 2017 and June 24, 2016, respectively.

As of June 29, 2018, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows:


(amount in thousands)
2019	$	1,263
2020		943
2021		542
2022		427
Thereafter		456

Total future minimum operating lease payments	$	3,631

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 June 29, 2018, the future minimum lease payments under non-cancelable capital leases during each fiscal year were as follows:


(amount in thousands)
2019	$	481
2020		424
2021		106

Total minimum capital lease payments		1,011
Less: Future finance charge on capital leases		(44	)

Present value of capital lease	$	967

Representing capital lease liabilities


Current	$	451
Non-current		516

Total capital lease liabilities	$	967

As of June 29, 2018, the present value of capital lease during each fiscal year were as follows:


(amount in thousands)
2019	$	451
2020		411
2021		105

Total future minimum capital lease payments	$	967

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 June 29, 2018, the Company had an outstanding commitment to third parties of $2.4 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

12 Months Ended

Jun. 29, 2018

Business segments and geographic information

20.

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 June 29, 2018, June 30, 2017 and June 24, 2016, the Company operated and internally managed a single operating segment. Accordingly, the Company does not accumulate discrete information with respect to separate product lines and does not have separate reportable segments.

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


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
North America	$	643,236	$	661,267	$	525,161
Asia-Pacific		519,203		539,317		351,033
Europe		209,486		219,906		100,553

Total	$	1,371,925	$	1,420,490	$	976,747

As of June 29, 2018 and June 30, 2017, the Company had approximately $33.2 million and $34.9 million, respectively, of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific.

The following table presents revenues by end market:


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
Optical communications	$	1,000,256	$	1,108,637	$	727,580
Lasers, sensors, and other		371,669		311,853		249,167

Total	$	1,371,925	$	1,420,490	$	976,747

Significant customers

Total revenues, by percentage, from individual customers representing 10% or more of total revenues in the respective periods were as follows:


	Years Ended
	June 29, 2018			June 30, 2017			June 24, 2016
Lumentum Operations LLC		16	%		17	%		20	%

Accounts receivable from individual customers representing 10% or more of accounts receivable as of June 29, 2018 and June 30, 2017, respectively, were as follows:


	As of June 29, 2018			As of June 30, 2017
Lumentum Operations LLC		18	%		15	%
NeoPhotonics Corporation		11	%		12	%
Acacia Communications Inc.		*			10	%

Represents less than 10% of total accounts receivable.

Financial instruments

12 Months Ended

Jun. 29, 2018

Financial instruments

21.

Financial instruments

Objectives and significant terms and conditions

The principal financial risks faced by the Company are foreign currency risk and interest rate risk. The Company borrows at floating rates of interest to finance its operations. A minority of sales and purchases and a majority of labor and overhead costs are entered into in foreign currencies. In order to manage the risks arising from fluctuations in currency exchange rates, the Company uses derivative instruments. Trading for speculative purposes is prohibited under Company policies.

The Company enters into short-term foreign currency forward and option contracts to manage foreign currency exposures associated with certain assets, liabilities and other forecasted foreign currency transactions and may designate these instruments as hedging instruments. The foreign currency forward and option contracts generally have maturity of up to six months. All foreign currency exchange contracts are recognized on the consolidated balance sheets at fair value. Gain or loss on the Company’s derivative instruments generally offset the assets, liabilities and transactions economically hedged.

Foreign currency risk

The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Thai baht, Chinese Renminbi (“RMB”) and GBP.

As of June 29, 2018 and June 30, 2017, the Company had outstanding foreign currency assets and liabilities as follows:


	As of June 29, 2018				As of June 30, 2017
(amount in thousands)	Currency		$		Currency		$
Assets
Thai baht		980,778	$	29,568		395,123	$	11,628
RMB		18,455		2,789		26,965		3,980
GBP		12,514		16,392		6,896		8,982

Total			$	48,749			$	24,590

Liabilities
Thai baht		1,401,473	$	42,251		1,875,338	$	55,189
RMB		19,893		3,007		28,451		4,200
GBP		3,615		4,735		5,625		7,326

Total			$	49,993			$	66,715

The Thai baht assets represent cash and cash equivalents, trade accounts receivable, deposits and other current assets. The Thai baht liabilities represent trade accounts payable, accrued expenses, income tax payable and other payables. The Company manages its exposure to fluctuations in foreign exchange rates by the use of foreign currency contracts and offsetting assets and liabilities denominated in the same currency in accordance with management’s policy. As of June 29, 2018 there were $7.0 million of foreign currency forward contracts and $30.0 million of foreign currency option contracts outstanding on the Thai baht payables. As of June 30, 2017, there was $1.0 million in foreign currency forward contracts outstanding on the Thai baht payables.

The RMB assets represent cash and cash equivalents, trade accounts receivable and other current assets. The RMB liabilities represent trade accounts payable, accrued expenses and other payables. As of June 29, 2018 and June 30, 2017, there were no derivative contracts denominated in RMB.

The GBP assets primarily represent cash, trade accounts receivable, inventory and property, plant and equipment. The GBP liabilities primarily represent trade accounts payable. As of June 29, 2018, there were no derivative contracts denominated in GBP.

For fiscal year 2018, fiscal year 2017, and fiscal year 2016, the Company recorded unrealized loss of $1.7 million, unrealized gain of $0.02 million, and unrealized loss of $1.8 million, respectively, related to derivatives that are not designated as hedging instruments in its consolidated statements of operations and comprehensive income.

Interest Rate Risk

The Company’s principal interest bearing assets are time deposits and short-term investments with maturities of three months or less held with high quality financial institutions. The Company’s principal interest bearing liabilities are bank loans which bear interest at floating rates.

UNAUDITED QUARTERLY FINANCIAL INFORMATION

12 Months Ended

Jun. 29, 2018

UNAUDITED QUARTERLY FINANCIAL INFORMATION

UNAUDITED QUARTERLY FINANCIAL INFORMATION

The following table sets forth a summary of the Company’s quarterly financial information for each of the four quarters in the fiscal years ended June 29, 2018 and June 30, 2017:


	Three Months Ended
(in thousands, except per share data)	Jun 29, 2018		Mar 30, 2018		Dec 29, 2017		Sep 29, 2017		Jun 30, 2017		Mar 31, 2017		Dec 30, 2016		Sep 30, 2016
Total revenues	$	345,327	$	332,313	$	337,072	$	357,313	$	370,454	$	366,837	$	351,156	$	332,043

Gross profit	$	38,981	$	36,933	$	37,166	$	40,332	$	44,760	$	44,046	$	43,046	$	39,608

Net income	$	22,768	$	21,053	$	19,313	$	21,033	$	27,401	$	21,656	$	25,292	$	22,766

Basic net income per share:
Net income	$	0.62	$	0.56	$	0.52	$	0.56	$	0.73	$	0.58	$	0.69	$	0.63

Weighted-average shares used in basic net income per share calculations		36,828		37,275		37,477		37,447		37,334		37,116		36,848		36,404

Diluted net income per share:
Net income	$	0.60	$	0.55	$	0.51	$	0.55	$	0.72	$	0.57	$	0.67	$	0.61

Weighted-average shares used in diluted net income per share calculations		37,766		38,055		38,156		38,163		38,118		37,872		37,805		37,330

Summary of significant accounting policies (Policies)

12 Months Ended

Jun. 29, 2018

Principles of consolidation

Principles of consolidation

Use of estimates

Use of estimates

Foreign currency transactions and translation

Foreign currency transactions and translation

The consolidated financial statements are presented in United States dollars (“$” or “USD”). The functional currency of Fabrinet and most of its subsidiaries is the USD.

Cash and cash equivalents

Cash and cash equivalents

Marketable securities

Marketable securities

Trade accounts receivable

Trade accounts receivable

Unanticipated changes in the liquidity or financial position of the Company’s customers may require revision to the allowances for doubtful accounts.

Inventory

Inventory

Leases

Leases

Operating leases

Payments made under operating leases are expensed on a straight-line basis over the lease term.

Capital lease

Property, plant and equipment

Property, plant and equipment


Land improvements			10 years
Building and building improvements			7 - 30 years
Leasehold improvements			Shorter of useful life or lease term
Manufacturing equipment			3 - 7 years
Office equipment			3 - 7 years
Motor vehicles			3 - 5 years
Computer hardware			3 - 5 years

Gains and losses on disposal are determined by comparing proceeds with carrying amounts and are included in operating income in the consolidated statements of operations and comprehensive income.

Intangibles

Intangibles

Intangible assets are reviewed for impairment quarterly or more frequently whenever changes or circumstances indicate the carrying amount of related assets may not be recoverable.

Business acquisition

Business acquisition

Goodwill

Goodwill

Treasury shares

Treasury shares

Borrowing costs

Borrowing costs

Fair value of financial instruments

Fair value of financial instruments

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

Derivatives

Derivatives

The derivatives assets and liabilities are recognized on the consolidated balance sheets as other current assets or other current liabilities and are measured at fair value.

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 and accounts receivable.

Revenue recognition

Revenue recognition

Services

Sales of goods

Warranty provision

Warranty provision

Shipping and handling costs

Shipping and handling costs

The Company records costs related to shipping and handling in cost of revenues for all periods presented.

Share-based compensation

Share-based compensation

Employee contribution plan

Employee contribution plan

Severance liabilities

Severance liabilities

Annual leave

Annual leave

Employee entitlements to annual leave are recognized when they accrue to the employee. On termination of employment, accrued employee entitlement to annual leave is paid in cash.

Income taxes

Income taxes

New Accounting Pronouncements-not yet adopted by the Company

New Accounting Pronouncements—not yet adopted by the Company

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This new guidance requires certain equity investments to be measured at fair value, use of the exit price notion and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The ASU on recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. In addition, in February 2018, the FASB issued ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance clarifies certain aspects of the guidance issued in ASU 2016-01 on (1) equity securities without a readily determinable fair value – discontinuation, (2) equity securities without a readily determinable fair value – adjustments, (3) forward contracts and purchased options, (4) presentation requirements for certain fair value option liabilities, and (5) fair value option liabilities denominated in a foreign currency. The Company will adopt this new update effective June 30, 2018. The Company does not expect that the adoption of this update will have a material impact on its consolidated financial statements.

New Accounting Pronouncements-adopted by the Company

New Accounting Pronouncements—adopted by the Company

Income taxes (Tables)

12 Months Ended

Jun. 29, 2018

Income Tax Expense

The Company’s income tax expense consisted of the following:


	Years Ended
(amount in thousands)	June 29, 2018			June 30, 2017		June 24, 2016
Current	$	5,457		$	5,986	$	5,053
Deferred		(1,595	)		756		1,282

Total income tax expense	$	3,862		$	6,742	$	6,335

Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge


	Years Ended
(amount in thousands)	June 29, 2018			June 30, 2017			June 24, 2016
Income before income taxes ⁽¹⁾	$	88,029		$	103,857		$	68,232
Tax expense calculated at a statutory corporate income tax rate of 20%		17,606			20,771			13,646
Effect of income taxes from locations with tax rates different from Thailand		2,657			(48	)		(3,309	)
Income not subject to tax ⁽²⁾		(12,824	)		(17,212	)		(10,493	)
Income tax on unremitted earnings		1,007			798			527
Effect of different tax rate in relation to deferred tax utilization		423			—			894
Effect of foreign exchange rate adjustment		(134	)		667			375
Tax rebate from research and development application		(454	)		(226	)		(145	)
Provision for uncertain income tax position		277			260			214
Utilization of loss carryforward		(3,224	)		—			—
(Reversal of) valuation allowance ⁽³⁾		(1,587	)		1,517			4,882
Others		115			215			(256	)

Corporate income tax expense	$	3,862		$	6,742		$	6,335

⁽¹⁾	Income before income taxes was mostly generated from domestic income in the Cayman Islands.

⁽²⁾

⁽³⁾

Deferred Tax Assets and Deferred Tax Liabilities, Net of Valuation Allowance

The Company’s deferred tax assets and deferred tax liabilities, net of valuation allowance, at each balance sheet date are as follows:


	As of
(amount in thousands)	June 29, 2018		June 30, 2017
Deferred tax assets:
Depreciation	$	2,151	$	1,674
Severance liability		1,518		1,127
Reserves and allowance		1,545		1,046
Net operating loss carryforwards		1,228		496
Others		277		10

Total	$	6,719	$	4,353


	As of
(amount in thousands)	June 29, 2018			June 30, 2017
Deferred tax liabilities:
Temporary differences from intangibles and changes in the fair value of assets acquired	$	(860	)	$	(944	)
Deferred tax from unremitted earnings		(2,863	)		(2,485	)

Total		(3,723	)		(3,429	)

Net	$	2,996		$	924

Summary of Change in Valuation Allowances of Deferred Tax Assets

The changes in the valuation allowances of deferred tax assets were as follows:


(amount in thousands)	Valuation allowances of deferred tax assets
Balance as of June 24, 2016	$	4,882
Additional		1,517

Balance as of June 30, 2017		6,399
Reversal		(5,234	)

Balance as of June 29, 2018	$	1,165

Changes to Unrecognized Tax Benefits


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
Beginning balance	$	1,420	$	1,420	$	1,420
Additions during the year		25		—		—
Reductions for tax positions of prior years		—		—		—

Ending balance	$	1,445	$	1,420	$	1,420

Earnings per ordinary share (Tables)

12 Months Ended

Jun. 29, 2018

Earnings Per Ordinary Share

The earnings per ordinary share was calculated as follows:


	Years Ended
(amount in thousands except per share amounts)	June 29, 2018		June 30, 2017		June 24, 2016
Net income attributable to shareholders	$	84,167	$	97,115	$	61,897

Weighted-average number of ordinary shares outstanding (thousands of shares)		37,257		36,927		35,857
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares)		778		925		1,015

Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		38,035		37,852		36,872

Basic earnings per ordinary share	$	2.26	$	2.63	$	1.73
Diluted earnings per ordinary share	$	2.21	$	2.57	$	1.68

Cash, cash equivalents and marketable securities (Tables)

12 Months Ended

Jun. 29, 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 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


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain (Loss)			Cash and Cash Equivalents		Marketable Securities
As of June 30, 2017
Cash	$	131,240	$	—		$	131,240	$	—
Cash equivalents		2,585		—			2,585		—
Corporate bonds and commercial papers		98,247		27			—		98,274
U.S. agency and U.S. treasury securities		50,768		(102	)		—		50,666
Sovereign and municipal securities		2,507		3			—		2,510

Total	$	285,347	$	(72	)	$	133,825	$	151,450

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 June 29, 2018:


(amount in thousands)	Carrying Cost		Fair Value
Due within one year	$	28,216	$	28,193
Due between one to three years		147,144		146,076

Total	$	175,360	$	174,269

Fair Value (Tables)

12 Months Ended

Jun. 29, 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 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	⁽¹⁾	$	—	$	1,745

Total	$	—	$	1,745		$	—	$	1,745


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 30, 2017
Assets
Cash equivalents	$	—	$	2,585		$	—	$	2,585
Corporate bonds and commercial papers		—		98,274			—		98,274
U.S. agency and U.S. treasury securities		—		50,666			—		50,666
Sovereign and municipal securities		—		2,510			—		2,510
Derivative assets		—		15	⁽²⁾		—		15

Total	$	—	$	154,050		$	—	$	154,050

Liabilities
Derivative liabilities	$	—	$	—		$	—	$	—

Total	$	—	$	—		$	—	$	—

⁽¹⁾	Foreign currency forward contracts with notional amount of $7.0 million and Canadian dollars 0.4 million. Foreign currency option contracts with notional amount of $30.0 million.

⁽²⁾	Foreign currency forward contracts with notional amount of $1.0 million and Canadian dollars 0.6 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

Inventory (Tables)

12 Months Ended

Jun. 29, 2018

Inventories


(amount in thousands)	As of June 29, 2018			As of June 30, 2017
Raw materials	$	100,241		$	88,640
Work in progress		121,797			105,732
Finished goods		20,690			33,998
Goods in transit		17,516			13,025

		260,244			241,395
Less: Inventory obsolescence		(2,557	)		(2,730	)

Inventory, net	$	257,687		$	238,665

Business acquisition (Tables)

12 Months Ended

Jun. 29, 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

Fair Value of Identified Intangible Assets


Risk free rate:		30-year UK Government Bond adjusted by spot yield to reflect recent volatility
Long-term revenue growth:		5.0% - 8.0%
Churn rate:		10%
Operating margin:		4.0% - 6.0%

Property, plant and equipment, net (Tables)

12 Months Ended

Jun. 29, 2018

Property, Plant and Equipment Net

The components of property, plant and equipment, net were as follows:


(amount in thousands)	Land and Land Improvements			Building and Building Improvements			Manufacturing Equipment			Office Equipment			Motor Vehicles			Computers			Construction and Machinery Under Installation		Total
As of June 29, 2018
Cost	$	45,080		$	139,342		$	141,869		$	7,582		$	456		$	21,250		$	8,762	$	364,341
Less: Accumulated depreciation		(6	)		(38,265	)		(86,989	)		(4,454	)		(334	)		(14,653	)		—		(144,701	)

Net book value	$	45,074		$	101,077		$	54,880		$	3,128		$	122		$	6,597		$	8,762	$	219,640

As of June 30, 2017
Cost	$	39,096		$	138,578		$	127,085		$	7,688		$	534		$	19,642		$	6,058	$	338,681
Less: Accumulated depreciation		(2	)		(31,881	)		(72,130	)		(4,163	)		(376	)		(13,248	)		—		(121,800	)

Net book value	$	39,094		$	106,697		$	54,955		$	3,525		$	158		$	6,394		$	6,058	$	216,881

Leased Assets Under Capital Lease Agreements

Leased assets included above comprise certain machine and equipment from capital lease agreements assumed from the acquisition of Fabrinet UK.


(amount in thousands)	As of June 29, 2018			As of June 30, 2017
Cost—Capital leases	$	2,481			2,725
Less: Accumulated depreciation		(1,043	)		(856	)

Net book value	$	1,438			1,869

Intangibles (Tables)

12 Months Ended

Jun. 29, 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 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


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net
As of June 30, 2017
Software	$	5,944	$	(3,850	)	$	—		$	2,094
Customer relationships		4,373		(606	)		(88	)		3,679
Backlog		119		(51	)		(1	)		67

Total intangibles	$	10,436	$	(4,507	)	$	(89	)	$	5,840

Estimated Future Amortization of intangibles

As of June 29, 2018, the estimated future amortization of intangible assets during each fiscal year was as follows:


(amount in thousand)
2019	$	1,462
2020		1,038
2021		892
2022		657
2023		400
Thereafter		431

Total	$	4,880

Borrowings (Tables)

12 Months Ended

Jun. 29, 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:

(dollars in thousands)


Rate ⁽¹⁾	Conditions		Maturity			As of June 29, 2018			As of June 30, 2017
Short-term borrowings:
Revolving borrowing:
LIBOR + 1.75% per annum		Repayable in 1 to 6 months		July 2017	⁽²⁾	$	—		$	34,000
Short-term borrowings from bank:
Bank of England base rate +1.85% per annum		Repayable based on credit terms of secured accounts receivable					—			1,003
Current portion of long-term borrowings							3,250			13,600

							3,250			48,603
Less: Unamortized debt issuance costs							—			(201	)

						$	3,250		$	48,402

Long-term borrowings:
Term loan borrowing:
LIBOR + 1.75% per annum		Repayable in quarterly installments		May 2019	⁽²⁾	$	—		$	36,400
LIBOR + 1.50% per annum		Repayable in quarterly installments		June 2023	⁽²⁾		64,188			—

							64,188			36,400
Less: Current portion							(3,250	)		(13,600	)
Less: Unamortized debt issuance costs							—			(99	)

Non-current portion of long-term borrowings						$	60,938		$	22,701

⁽¹⁾

LIBOR is London Interbank Offered Rate.

⁽²⁾

In June 2018, the outstanding revolving and term loan borrowings were refinanced to one term loan borrowing and the maturity dates were extended from July 2017 and May 2019 to June 2023.

Movements of Long-Term Loans

The movements of long-term borrowings were as follows for the years ended June 29, 2018 and June 30, 2017:


	Years ended
(amount in thousands)	June 29, 2018			June 30, 2017
Opening net book amount	$	36,400		$	54,500
Additional loan during the period		39,000			—
Repayment during the period		(11,212	)		(18,100	)

Closing net book amount	$	64,188		$	36,400

Future Maturities of Long-Term Debt

As of June 29, 2018, the future maturities of long-term borrowings during each fiscal year were as follows:


(amount in thousand)
2019	$	3,250
2020		3,250
2021		3,250
2022		3,250
2023		51,188

Total	$	64,188

Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing

Undrawn available credit facilities classified by available period of future borrowing as of June 29, 2018 and June 30, 2017 were as follows:


(amount in thousands)	June 29, 2018		June 30, 2017
Expiring within one year	$	—	$	1,965
Expiring beyond one year	$	25,000	$	116,000

- 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Severance liabilities (Tables)

12 Months Ended

Jun. 29, 2018

Severance Liabilities

The following table provides information regarding severance liabilities:


(amount in thousands)	As of June 29, 2018		As of June 30, 2017
Balance, beginning of the fiscal year	$	8,488	$	6,684
Charged to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income		1,674		1,804

Balance, end of the fiscal year	$	10,162	$	8,488

Severance Liabilities Recognized in Balance Sheet

The amount recognized in the consolidated balance sheets under non-current liabilities was determined as follows:


(amount in thousands)	As of June 29, 2018		As of June 30, 2017
Present value of defined benefit obligation	$	10,162	$	8,488

Total	$	10,162	$	8,488

Severance Liabilities Recognized in Statements of Operations and Comprehensive Income

The amount recognized in the consolidated statements of operations and comprehensive income was as follows:


	Years Ended
(amount in thousands)	June 29, 2018			June 30, 2017		June 24, 2016
Current service cost	$	1,751		$	1,451	$	842
Interest cost		295			213		203
Benefit paid		(3,212	)		—		(11	)
Curtailment gain		707			—		—
Actuarial loss on obligation		2,133			140		173

Total	$	1,674		$	1,804	$	1,207

Principal Actuarial Assumptions Used

The principal actuarial assumptions used were as follows:


	Years Ended
	June 29, 2018	June 30, 2017		June 24, 2016
Discount rate	2.5% - 3.7%		1.93% - 3.6%		2.0% - 3.2%
Future salary increases	3.5% - 10.0%		3.5% - 10.0%		4.1% - 10.0%

Share-based compensation (Tables)

12 Months Ended

Jun. 29, 2018

Effect of Recording Share-Based Compensation Expense

The effect of recording share-based compensation expense for the years ended June 29, 2018, June 30, 2017 and June 24, 2016 was as follows:


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
Share-based compensation expense by type of award:
Share options	$	—	$	—	$	16
Restricted share units		17,143		22,412		9,911
Performance share units		5,438		4,095		—

Total share-based compensation expense		22,581		26,507		9,927
Tax effect on share-based compensation expense		—		—		—

Net effect on share-based compensation expense	$	22,581	$	26,507	$	9,927

Share-Based Compensation Expense Recorded in Consolidated Statements of Operations and Comprehensive Income

Share-based compensation expense was recorded in the consolidated statements of operations and comprehensive income as follows:


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
Cost of revenue	$	6,784	$	5,318	$	1,979
Selling, general and administrative expense		15,797		21,189		7,948

Total share-based compensation expense	$	22,581	$	26,507	$	9,927

Share Option Activity

The following table 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 26, 2015		792,019			758,451	$	16.33
Granted		—					—		—
Exercised		(325,530	)			$	16.83
Forfeited		(755	)			$	17.10
Expired		(1,400	)			$	23.62

Balance as of June 24, 2016		464,334			464,334	$	15.95
Granted		—					—		—
Exercised		(367,641	)			$	16.02
Forfeited		—					—
Expired		(5	)			$	5.75

Balance as of June 30, 2017		96,688			96,688	$	15.70
Granted		—					—		—
Exercised		(92,288	)			$	15.56
Forfeited		—					—
Expired		(1,500	)			$	25.50

Balance as of June 29, 2018		2,900			2,900	$	15.16

Expected to vest as of June 29, 2018		2,900				$	15.16

Information for Share Options Outstanding

The following table summarizes information for share options outstanding as of June 29, 2018:


	Number of Shares Underlying Options		Exercise Price Per Share		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (amount in thousands)
		2,900	$	15.16		0.13

Options outstanding		2,900				0.13	$	63

Options exercisable		2,900				0.13	$	63

Expected to vest as of June 29, 2018		2,900				0.13	$	63

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 26, 2015		1,140,927		$	16.03
Granted		654,589		$	21.15
Issued		(507,621	)	$	15.60
Forfeited		(106,493	)	$	18.34

Balance as of June 24, 2016		1,181,402		$	18.34
Granted		861,356		$	38.95
Issued		(853,535	)	$	21.16
Forfeited		(130,618	)	$	29.31

Balance as of June 30, 2017		1,058,605		$	31.59
Granted		552,637		$	35.95
Issued		(436,867	)	$	27.81
Forfeited		(100,795	)	$	33.62

Balance as of June 29, 2018		1,073,580		$	35.19

Expected to vest as of June 29, 2018		1,012,791		$	34.87

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 24, 2016		—			—
Granted		234,678		$	40.48
Issued		—			—
Forfeited		(7,410	)		—

Balance as of June 30, 2017		227,268		$	40.48
Granted		378,624		$	37.16
Issued		—			—
Forfeited		—			—

Balance as of June 29, 2018		605,892		$	38.41

Expected to vest as of June 29, 2018		285,280		$	33.98

Accumulated other comprehensive income (loss) (Tables)

12 Months Ended

Jun. 29, 2018

Changes in AOCI, Net of Tax

The changes in AOCI by component for the years ended June 29, 2018 and June 30, 2017 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 24, 2016	$	399		$	192		$	—		$	591
Other comprehensive income before reclassification		351			—			(310	)		41
Amounts reclassified from AOCI		(822	)		(158	)		—			(980	)
Tax effects		—			—			—			—

Other comprehensive income		(471	)		(158	)		(310	)		(939	)

Balance as of June 30, 2017		(72	)		34			(310	)		(348	)
Other comprehensive income before reclassification		(655	)		—			111			(544	)
Amounts reclassified from AOCI		(364	)		(1	)		—			(365	)
Tax effects		—			—			—			—

Other comprehensive income		(1,019	)		(1	)		111			(909	)

Balance as of June 29, 2018	$	(1,091	)	$	33		$	(199	)	$	(1,257	)

Pre-tax Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations and Comprehensive Income


		Years ended
AOCI components	Financial statements line item	June 29, 2018			June 30, 2017
Unrealized losses on marketable securities	Interest income	$	(364	)	$	(822	)
Unrealized gains on derivative instruments	Selling, general and administrative expenses		(1	)		(158	)

Total amounts reclassified from AOCI		$	(365	)	$	(980	)

Commitments and contingencies (Tables)

12 Months Ended

Jun. 29, 2018

Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases

As of June 29, 2018, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows:


(amount in thousands)
2019	$	1,263
2020		943
2021		542
2022		427
Thereafter		456

Total future minimum operating lease payments	$	3,631

Future Minimum Lease Payments Under Non-Cancelable Capital Leases

As of June 29, 2018, the future minimum lease payments under non-cancelable capital leases during each fiscal year were as follows:


(amount in thousands)
2019	$	481
2020		424
2021		106

Total minimum capital lease payments		1,011
Less: Future finance charge on capital leases		(44	)

Present value of capital lease	$	967


(amount in thousands)
2019	$	451
2020		411
2021		105

Total future minimum capital lease payments	$	967

Capital Lease Liabilities

Representing capital lease liabilities


Current	$	451
Non-current		516

Total capital lease liabilities	$	967

Business segments and geographic information (Tables)

12 Months Ended

Jun. 29, 2018

Total Revenues by Geographic Regions

The Company operates primarily in three geographic regions: North America, Asia-Pacific and Europe. The following table presents total revenues by geographic regions:


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
North America	$	643,236	$	661,267	$	525,161
Asia-Pacific		519,203		539,317		351,033
Europe		209,486		219,906		100,553

Total	$	1,371,925	$	1,420,490	$	976,747

Revenues by End Market

The following table presents revenues by end market:


	Years Ended
(amount in thousands)	June 29, 2018		June 30, 2017		June 24, 2016
Optical communications	$	1,000,256	$	1,108,637	$	727,580
Lasers, sensors, and other		371,669		311,853		249,167

Total	$	1,371,925	$	1,420,490	$	976,747

Total Revenues by Percentage from Individual Customers Representing Ten Percent or More of Total Revenues

Total revenues, by percentage, from individual customers representing 10% or more of total revenues in the respective periods were as follows:


	Years Ended
	June 29, 2018			June 30, 2017			June 24, 2016
Lumentum Operations LLC		16	%		17	%		20	%

Accounts Receivable from Individual Customers Representing Ten Percent or More of Accounts Receivable

Accounts receivable from individual customers representing 10% or more of accounts receivable as of June 29, 2018 and June 30, 2017, respectively, were as follows:


	As of June 29, 2018			As of June 30, 2017
Lumentum Operations LLC		18	%		15	%
NeoPhotonics Corporation		11	%		12	%
Acacia Communications Inc.		*			10	%

Represents less than 10% of total accounts receivable.

Financial instruments (Tables)

12 Months Ended

Jun. 29, 2018

Outstanding Foreign Currency Assets and Liabilities

As of June 29, 2018 and June 30, 2017, the Company had outstanding foreign currency assets and liabilities as follows:


	As of June 29, 2018				As of June 30, 2017
(amount in thousands)	Currency		$		Currency		$
Assets
Thai baht		980,778	$	29,568		395,123	$	11,628
RMB		18,455		2,789		26,965		3,980
GBP		12,514		16,392		6,896		8,982

Total			$	48,749			$	24,590

Liabilities
Thai baht		1,401,473	$	42,251		1,875,338	$	55,189
RMB		19,893		3,007		28,451		4,200
GBP		3,615		4,735		5,625		7,326

Total			$	49,993			$	66,715

Property Plant and Equipment Estimated Useful Life (Detail)	12 Months Ended
	Jun. 29, 2018
Land improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	10 years
Building and Building Improvements \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	7 years
Building and Building Improvements \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	30 years
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Leasehold improvements	Shorter of useful life or lease term
Manufacturing Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	3 years
Manufacturing Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	7 years
Office Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	3 years
Office Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	7 years
Motor Vehicles \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	3 years
Motor Vehicles \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	5 years
Computers \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	3 years
Computers \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	5 years

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016	Sep. 14, 2016
Accounting Policies [Line Items]
Restricted cash in connection with business acquisition		$ 3,312,000
Services revenue recognized	$ 57,100,000	75,400,000	$ 31,700,000
(Reversal of) warranty cost allowances	(20,000)	1.0	$ 0.1
Restricted cash in connection with business acquisition	$ 3,300,000	$ 3,300,000
Global CEM Solutions, Ltd.
Accounting Policies [Line Items]
Restricted cash in connection with business acquisition				$ 3,400,000

Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands

12 Months Ended

Jun. 28, 2019

Jun. 29, 2018

Jun. 30, 2017

Jun. 24, 2016

Income Taxes [Line Items]

Exempted income from corporate income tax

^[1]

$ 12,824

$ 17,212

$ 10,493

Corporate income tax rate

20.00%

Deferred tax liabilities

$ 2,863

$ 2,485

Accrued interest and penalties related to uncertain tax positions

900

600

Recorded (reversed) interest and penalties

300

$ 200

Subsidiary

Income Taxes [Line Items]

Income tax expenses

(100)

Deferred tax assets

$ 400

Cayman Islands

Income Taxes [Line Items]

Tax exemption period

20 years

Tax exemption renewal period

20 years

Exempted income from corporate income tax

$ 58,400

64,200

$ 41,000

Thailand

Income Taxes [Line Items]

Reduced corporate Income Tax rate

20.00%

Period income earned from operation of Building 6 is not subject to tax

8 years

Unremitted earnings

102,500

97,300

Unrecognized deferred tax liabilities

5,800

5,200

Deferred tax liabilities

$ 1,000

$ 800

Thailand | From fiscal year 2017 onwards

Income Taxes [Line Items]

Corporate income tax rate

20.00%

China

Income Taxes [Line Items]

Corporate income tax rate

25.00%

UNITED STATES

Income Taxes [Line Items]

Corporate income tax rate

21.00%

UNITED STATES | Subsidiary

Income Taxes [Line Items]

Corporate income tax rate

27.60%

UNITED STATES | Subsidiary | Scenario, Forecast

Income Taxes [Line Items]

Corporate income tax rate

21.00%

United Kingdom | Subsidiary

Income Taxes [Line Items]

Corporate income tax rate

19.00%

[1]

Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
Income Tax Expense (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Income Taxes [Line Items]
Current	$ 5,457	$ 5,986	$ 5,053
Deferred	(1,595)	756	1,282
Corporate income tax expense	$ 3,862	$ 6,742	$ 6,335

Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Detail) - USD ($)
$ in Thousands

12 Months Ended

Jun. 29, 2018

Jun. 30, 2017

Jun. 24, 2016

Reconciliation of Effective Income Tax Rate [Line Items]

Income before income taxes

^[1]

$ 88,029

$ 103,857

$ 68,232

Tax expense calculated at a statutory corporate income tax rate of 20%

17,606

20,771

13,646

Effect of income taxes from locations with tax rates different from Thailand

2,657

(48)

(3,309)

Income not subject to tax

^[2]

(12,824)

(17,212)

(10,493)

Income tax on unremitted earnings

1,007

798

527

Effect of different tax rate in relation to deferred tax utilization

423

894

Effect of foreign exchange rate adjustment

(134)

667

375

Tax rebate from research and development application

(454)

(226)

(145)

Provision for uncertain income tax position

277

260

214

Utilization of loss carryforward

(3,224)

(Reversal of) valuation allowance

^[3]

(1,587)

1,517

4,882

Others

115

215

(256)

Corporate income tax expense

$ 3,862

$ 6,742

$ 6,335

[1]	Income before income taxes was mostly generated from domestic income in the Cayman Islands.
[2]	Income not subject to tax relates to income earned in the Cayman Islands and income subject to an investment promotion privilege for Pinehurst Building 6. Income not subject to tax per ordinary share on a diluted basis was $0.34, $0.45, and $0.28 for the years ended June 29, 2018, June 30, 2017, and June 24, 2016, respectively.
[3]	As of June 29, 2018, the Company reversed valuation allowances of deferred tax assets of $5.2 million. The reversal was affected by utilization of deferred tax assets from loss carryforward of $3.2 million and effect of different tax rate in relation to deferred tax utilization of $0.4 million which have been separately presented in another line items.

Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Reconciliation of Effective Income Tax Rate [Line Items]
Tax calculated at a corporate income tax rate, rate	20.00%	20.00%	20.00%
Income (loss) not subject to tax per ordinary share on a diluted basis	$ 0.34	$ 0.45	$ 0.28
Valuation allowances of deferred tax assets reversal	$ 5,200
Utilization of loss carryforward	3,224
Effect of different tax rate in relation to deferred tax utilization	$ 423		$ 894

Deferred Tax Assets and Deferred Tax Liabilities, Net of Valuation Allowance (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Deferred tax assets:
Depreciation	$ 2,151	$ 1,674
Severance liability	1,518	1,127
Reserves and allowance	1,545	1,046
Net operating loss carryforwards	1,228	496
Others	277	10
Total	6,719	4,353
Deferred tax liabilities:
Temporary differences from intangibles and changes in the fair value of assets acquired	(860)	(944)
Deferred tax from unremitted earnings	(2,863)	(2,485)
Total	(3,723)	(3,429)
Net deferred income tax assets	$ 2,996	$ 924

Summary of Change in Valuation Allowances of Deferred Tax Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017
Reconciliation Of Nol Deferred Tax Assets Valuation Allowance [Line Items]
Beginning Balance	$ 6,399	$ 4,882
Reversal	(5,234)
Additional		1,517
Ending Balance	$ 1,165	$ 6,399

Changes to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Income Tax Contingency [Line Items]
Beginning balance	$ 1,420	$ 1,420	$ 1,420
Additions during the year	25
Reductions for tax positions of prior years	0	0	0
Ending balance	$ 1,445	$ 1,420	$ 1,420

Earnings Per Ordinary Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 29, 2018	Mar. 30, 2018	Dec. 29, 2017	Sep. 29, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 30, 2016	Sep. 30, 2016	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income attributable to shareholders	$ 22,768	$ 21,053	$ 19,313	$ 21,033	$ 27,401	$ 21,656	$ 25,292	$ 22,766	$ 84,167	$ 97,115	$ 61,897
Weighted-average number of ordinary shares outstanding (thousands of shares)	36,828	37,275	37,477	37,447	37,334	37,116	36,848	36,404	37,257	36,927	35,857
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares)									778	925	1,015
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)	37,766	38,055	38,156	38,163	38,118	37,872	37,805	37,330	38,035	37,852	36,872
Basic earnings per ordinary share	$ 0.62	$ 0.56	$ 0.52	$ 0.56	$ 0.73	$ 0.58	$ 0.69	$ 0.63	$ 2.26	$ 2.63	$ 1.73
Diluted earnings per ordinary share	$ 0.60	$ 0.55	$ 0.51	$ 0.55	$ 0.72	$ 0.57	$ 0.67	$ 0.61	$ 2.21	$ 2.57	$ 1.68

- 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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-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

Cash, Cash Equivalents, and Marketable Securities (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents and Marketable securities, Carrying Cost	$ 333,462	$ 285,347
Marketable securities, Unrealized Gain (Loss)	(1,091)	(72)
Cash and cash equivalents	158,102	133,825	$ 142,804
Marketable securities	174,269	151,450
Cash
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	146,778	131,240
Cash and cash equivalents	146,778	131,240
Cash Equivalents
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	11,324	2,585
Cash and cash equivalents	11,324	2,585
Corporate bonds and commercial papers
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	128,441	98,247
Marketable securities, Unrealized Gain (Loss)	(736)	27
Marketable securities	127,705	98,274
U.S. agency and U.S. treasury securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	43,734	50,768
Marketable securities, Unrealized Gain (Loss)	(324)	(102)
Marketable securities	43,410	50,666
Sovereign And Municipal Securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	3,185	2,507
Marketable securities, Unrealized Gain (Loss)	(31)	3
Marketable securities	$ 3,154	$ 2,510

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017
Cash, cash equivalents and marketable securities [Line Items]
Effective interest rate on short term bank deposits	0.80%	0.60%
Percentage of cash and cash equivalents held by parent company	49.00%	66.00%
Net realized loss from changes in fair value of marketable securities	$ 400,000
Impairment losses	0	$ 0
Bank deposit held in various financial institutions	$ 40,000,000	$ 40,000,000

Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Investments Classified by Contractual Maturity Date [Line Items]
Total	$ 174,269	$ 151,450
Fair Value
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	28,193
Due between one to three years	146,076
Total	174,269
Carrying Cost
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	28,216
Due between one to three years	147,144
Total	$ 175,360

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

Jun. 29, 2018

Jun. 30, 2017

Assets

Derivative assets

$ 15

Total

$ 185,593

154,050

Liabilities

Derivative liabilities

1,745

Total

1,745

Cash Equivalents

Assets

Marketable securities

11,324

2,585

Corporate bonds and commercial papers

Assets

Marketable securities

127,705

98,274

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

Assets

Marketable securities

43,410

50,666

Sovereign And Municipal Securities

Assets

Marketable securities

3,154

2,510

Significant Other Observable Inputs (Level 2)

Assets

Derivative assets

^[1]

Total

185,593

154,050

Liabilities

Derivative liabilities

^[2]

1,745

Total

1,745

Significant Other Observable Inputs (Level 2) | Cash Equivalents

Assets

Marketable securities

11,324

2,585

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

Assets

Marketable securities

127,705

98,274

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

Assets

Marketable securities

43,410

50,666

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

Assets

Marketable securities

$ 3,154

$ 2,510

[1]	Foreign currency forward contracts with notional amount of $1.0 million and Canadian dollars 0.6 million.
[2]	Foreign currency forward contracts with notional amount of $7.0 million and Canadian dollars 0.4 million. Foreign currency option contracts with 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	Jun. 29, 2018 USD ($)	Jun. 29, 2018 CAD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CAD ($)
Foreign currency forward contracts
Fair Value Measurements at Reporting Date Using
Derivative liabilities, notional amount	$ 7.0	$ 0.4
Derivative assets, notional amount			$ 1.0	$ 0.6
Foreign currency option contracts
Fair Value Measurements at Reporting Date Using
Derivative liabilities, notional amount	$ 30.0

Fair Value - Additional Information (Detail)	12 Months Ended
Fair Value - Additional Information (Detail)	Jun. 29, 2018 USD ($) Contract	Jun. 30, 2017 USD ($) Contract	Jun. 24, 2016 USD ($)	Jun. 29, 2018 CAD ($) Contract	Jun. 30, 2017 CAD ($) Contract
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gain (loss) on derivatives	$ (4,222,000)	$ (1,884,000)	$ (1,905,000)
Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative liabilities	$ 1,700,000
Derivative assets		$ 20,000
Foreign currency forward contracts \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract	5	2		5	2
Derivative notional amount	$ 7,000,000	$ 1,000,000		$ 400,000	$ 600,000
Unrealized gain (loss) on derivatives	$ (1,700,000)	$ 20,000
Foreign currency forward contracts \| Non designated \| Canada, Dollars
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract	1			1
Foreign currency forward contracts \| Non designated \| Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2018-07	2017-07
Foreign currency forward contracts \| Non designated \| Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2018-10	2017-09
Foreign currency forward contracts \| Cash Flow Hedging
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gain recognized from discontinued cash flow hedges		$ 300,000
Number of forward contracts outstanding \| Contract	0	0		0	0
Foreign currency option contracts \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract	4			4
Derivative notional amount	$ 30,000,000

Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 246,972	$ 264,389
Less: Allowance for doubtful account	(60)	(40)
Trade accounts receivable, net	$ 246,912	$ 264,349

Inventory (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Inventory [Line Items]
Raw materials	$ 100,241	$ 88,640
Work in progress	121,797	105,732
Finished goods	20,690	33,998
Goods in transit	17,516	13,025
Inventory, Gross, Total	260,244	241,395
Less: Inventory obsolescence	(2,557)	(2,730)
Inventory, net	$ 257,687	$ 238,665

Business Acquisition - Additional Information (Detail) - USD ($)		6 Months Ended	12 Months Ended
	Sep. 14, 2016	Jun. 29, 2018	Jun. 29, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Total cash consideration, net of cash acquired				$ 9,917,000
Restricted cash in connection with business acquisition				3,312,000
Foreign currency translation adjustment			$ 111,000	(310,000)
Goodwill		$ 3,828,000	3,828,000	3,806,000
Capital lease assets		1,438,000	1,438,000	1,869,000
Capital lease liability		967,000	967,000
Transaction costs related to acquisition		0
Global CEM Solutions, Ltd.
Business Acquisition [Line Items]
Total cash consideration, net of cash acquired	$ 13,043,000
Business acquisition, cash acquired	$ 500,000
Percentage of ownership acquired	100.00%
Restricted cash in connection with business acquisition	$ 3,400,000
Foreign currency translation adjustment			100,000
Goodwill	3,883,000			3,800,000
Deferred tax liabilities	1,148,000			1,200,000
Capital lease assets		1,400,000	1,400,000
Capital lease liability		$ 1,000,000	1,000,000
Global CEM Solutions, Ltd. \| Backlog
Business Acquisition [Line Items]
Intangible assets acquired			$ 100,000
Estimated useful life			3 years
Global CEM Solutions, Ltd. \| Customer relationships
Business Acquisition [Line Items]
Intangible assets acquired			$ 4,400,000
Estimated useful life			10 years
Global CEM Solutions, Ltd. \| Scenario, Previously Reported
Business Acquisition [Line Items]
Goodwill	$ 2,700,000			3,900,000
Global CEM Solutions, Ltd. \| Selling, General and Administrative Expenses
Business Acquisition [Line Items]
Transaction costs related to acquisition				$ 1,500,000

Allocation of Total Purchase Price (Detail) - USD ($) $ in Thousands		12 Months Ended
	Sep. 14, 2016	Jun. 30, 2017	Jun. 29, 2018
Business Acquisition [Line Items]
Goodwill		$ 3,806	$ 3,828
Total purchase price, net of cash acquired		9,917
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	3,800
Other non-current assets	516
Current liabilities	(6,796)
Deferred tax liabilities	(1,148)	$ (1,200)
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

Fair Value of Identified Intangible Assets (Detail) - Identified Intangible Assets	12 Months Ended
	Jun. 29, 2018
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Risk free rate:	30-year UK Government Bond adjusted by spot yield to reflect recent volatility
Risk free rate:	30 years
Churn rate:	10.00%
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term revenue growth:	5.00%
Operating margin:	4.00%
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Long-term revenue growth:	8.00%
Operating margin:	6.00%

Property Plant and Equipment Net (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Cost	$ 364,341	$ 338,681
Less: Accumulated depreciation	(144,701)	(121,800)
Net book value	219,640	216,881
Land and Land Improvements
Property, Plant and Equipment [Line Items]
Cost	45,080	39,096
Less: Accumulated depreciation	(6)	(2)
Net book value	45,074	39,094
Building and Building Improvements
Property, Plant and Equipment [Line Items]
Cost	139,342	138,578
Less: Accumulated depreciation	(38,265)	(31,881)
Net book value	101,077	106,697
Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Cost	141,869	127,085
Less: Accumulated depreciation	(86,989)	(72,130)
Net book value	54,880	54,955
Office Equipment
Property, Plant and Equipment [Line Items]
Cost	7,582	7,688
Less: Accumulated depreciation	(4,454)	(4,163)
Net book value	3,128	3,525
Motor Vehicles
Property, Plant and Equipment [Line Items]
Cost	456	534
Less: Accumulated depreciation	(334)	(376)
Net book value	122	158
Computers
Property, Plant and Equipment [Line Items]
Cost	21,250	19,642
Less: Accumulated depreciation	(14,653)	(13,248)
Net book value	6,597	6,394
Construction and Machinery Under Installation
Property, Plant and Equipment [Line Items]
Cost	8,762	6,058
Net book value	$ 8,762	$ 6,058

Property Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Jan. 10, 2017	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016	Dec. 23, 2016
Property, Plant and Equipment [Line Items]
Depreciation expense		$ 27.4	$ 22.5	$ 17.3
Property, plant and equipment written-off, fully depreciated cost		3.5	5.4	$ 2.0
Capitalized interest expense related to long-term loan		$ 0.0	$ 0.5
Thailand
Property, Plant and Equipment [Line Items]
Purchase of land					$ 5.6
Payment to purchase of land	$ 1.1

Leased Assets Under Capital Lease Agreements (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Cost-Capital leases	$ 2,481	$ 2,725
Less: Accumulated depreciation	(1,043)	(856)
Net book value	$ 1,438	$ 1,869

Intangibles (Detail) - USD ($) $ in Thousands	12 Months Ended
Intangibles (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 10,761	$ 10,436
Accumulated Amortization	(5,838)	(4,507)
Foreign Currency Translation Adjustment	(43)	(89)
Net	4,880	5,840
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,269	5,944
Accumulated Amortization	(4,324)	(3,850)
Net	1,945	2,094
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,373	4,373
Accumulated Amortization	(1,413)	(606)
Foreign Currency Translation Adjustment	(42)	(88)
Net	2,918	3,679
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	119	119
Accumulated Amortization	(101)	(51)
Foreign Currency Translation Adjustment	(1)	(1)
Net	$ 17	$ 67

Intangibles - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to intangibles	$ 1.7	$ 1.2	$ 0.1
Global CEM Solutions, Ltd. \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 4.4
Weighted average remaining life of acquired intangible assets	6 years 1 month 6 days	6 years 10 months 24 days
Global CEM Solutions, Ltd. \| Backlog
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 0.1
Weighted average remaining life of acquired intangible assets	10 months 24 days	1 year 7 months 6 days

Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
2019	$ 1,462
2020	1,038
2021	892
2022	657
2023	400
Thereafter	431
Total	$ 4,880	$ 5,840

Goodwill - Additional Information (Detail) - USD ($)	Jun. 29, 2018	Jun. 30, 2017	Sep. 14, 2016
Goodwill [Line Items]
Goodwill	$ 3,828,000	$ 3,806,000
Goodwill impairment charges	$ 0
Global CEM Solutions, Ltd.
Goodwill [Line Items]
Goodwill		$ 3,800,000	$ 3,883,000

Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	12 Months Ended
	Jun. 29, 2018 USD ($)
Goodwill [Line Items]
Balance as of June 30, 2017	$ 3,806
Foreign currency translation adjustment	22
Balance as of June 29, 2018	$ 3,828

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

12 Months Ended

Jun. 29, 2018

Jun. 30, 2017

Jun. 24, 2016

Debt Instrument [Line Items]

Revolving borrowings

$ 34,000

Short-term borrowings from bank

1,003

Current portion of long-term borrowings

$ 3,250

13,600

Bank borrowings, gross

3,250

48,603

Less: Unamortized debt issuance costs

(201)

Bank borrowings, net of unamortized debt issuance costs

3,250

48,402

Long-term borrowings

64,188

36,400

$ 54,500

Less: Current portion

(3,250)

(13,600)

Less: Unamortized debt issuance costs

(99)

Non-current portion of long-term borrowings

$ 60,938

22,701

Short-term loans from bank

Debt Instrument [Line Items]

Rate

^[1]

Bank of England base rate +1.85% per annum

Conditions

Repayable based on credit terms of secured accounts receivable

Revolving Credit Facility

Debt Instrument [Line Items]

Rate

^[1]

LIBOR + 1.75% per annum

Conditions

Repayable in 1 to 6 months

Term

^[2]

2017-07

Revolving borrowings

$ 34,000

Revolving Credit Facility | Minimum

Debt Instrument [Line Items]

Repayment duration

1 month

Revolving Credit Facility | Maximum

Debt Instrument [Line Items]

Repayment duration

6 months

LIBOR | Minimum

Debt Instrument [Line Items]

Margin above rate

1.75%

LIBOR | Maximum

Debt Instrument [Line Items]

Margin above rate

2.50%

LIBOR | Revolving Credit Facility

Debt Instrument [Line Items]

Margin above rate

1.75%

Base Rate | Minimum

Debt Instrument [Line Items]

Margin above rate

0.75%

Base Rate | Maximum

Debt Instrument [Line Items]

Margin above rate

1.50%

Base Rate | Short-term loans from bank

Debt Instrument [Line Items]

Margin above rate

1.85%

Loans Payable Due May 2019

Debt Instrument [Line Items]

Rate

^[1]

LIBOR + 1.75% per annum

Conditions

Repayable in quarterly installments

Term

^[2]

2019-05

Long-term borrowings

$ 36,400

Loans Payable Due May 2019 | LIBOR

Debt Instrument [Line Items]

Margin above rate

1.75%

Loan Payable Due June 2023

Debt Instrument [Line Items]

Rate

^[1]

LIBOR + 1.50% per annum

Conditions

Repayable in quarterly installments

Term

^[2]

2023-06

Long-term borrowings

$ 64,188

Loan Payable Due June 2023 | LIBOR

Debt Instrument [Line Items]

Margin above rate

1.50%

[1]	LIBOR is London Interbank Offered Rate.
[2]	In June 2018, the outstanding revolving and term loan borrowings were refinanced to one term loan borrowing and the maturity dates were extended from July 2017 and May 2019 to June 2023.

Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Debt Instrument [Line Items]
Opening net book amount	$ 36,400	$ 54,500
Additional loan during the period	39,000
Repayment during the period	(11,212)	(18,100)	$ (6,000)
Closing net book amount	$ 64,188	$ 36,400	$ 54,500

Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Debt Instrument [Line Items]
2019	$ 3,250
2020	3,250
2021	3,250
2022	3,250
2023	51,188
Total	$ 64,188	$ 36,400	$ 54,500

Borrowings - Additional Information (Detail) - USD ($)	12 Months Ended
Borrowings - Additional Information (Detail) - USD ($)	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016	Jun. 04, 2018	Jul. 24, 2017	May 22, 2014
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	$ 200,000,000
Proceeds of long-term loan from bank			$ 50,000,000
Line of credit facility amount outstanding		$ 34,000,000
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
Net gain on interest rate swap agreement	100,000
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 amount outstanding		$ 34,000,000
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
Revolving Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Repayment duration	1 month	1 month
Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Repayment duration	6 months	6 months
Revolving Credit Facility \| LIBOR
Line of Credit Facility [Line Items]
Credit line interest rate, percentage	1.75%
Term Loan Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	$ 50,000,000
Proceeds of long-term loan from bank			$ 50,000,000
Line of credit facility amount outstanding	$ 64,200,000	$ 36,400,000		$ 65,000,000
Derivative, fixed interest rate					1.55%
Derivative, maturity date	2019-05

Undrawn Available Credit Facilities Classified by Availability Period of Future Borrowing (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Expiring within one year
Line of Credit Facility [Line Items]
Undrawn available credit facilities		$ 1,965
Expiring beyond one year
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 25,000	$ 116,000

Severance Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
Severance Liabilities (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Defined Benefit Plan Disclosure [Line Items]
Balance, beginning of the fiscal year	$ 8,488	$ 6,684
Charged to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income	1,674	1,804	$ 1,207
Balance, end of the fiscal year	$ 10,162	$ 8,488	$ 6,684

Severance Liabilities Recognized in Balance Sheet (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Defined Benefit Plan Disclosure [Line Items]
Present value of defined benefit obligation	$ 10,162	$ 8,488
Total	$ 10,162	$ 8,488	$ 6,684

Severance Costs Recognized in Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Defined Benefit Plan Disclosure [Line Items]
Current service cost	$ 1,751	$ 1,451	$ 842
Interest cost	295	213	203
Benefit paid	(3,212)		(11)
Curtailment gain	707
Actuarial loss on obligation	2,133	140	173
Total	$ 1,674	$ 1,804	$ 1,207

Principal Actuarial Assumptions Used (Detail)	12 Months Ended
Principal Actuarial Assumptions Used (Detail)	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.50%	1.93%	2.00%
Future salary increases	3.50%	3.50%	4.10%
Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.70%	3.60%	3.20%
Future salary increases	10.00%	10.00%	10.00%

Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Share-based compensation expense by type of award:
Share options			$ 16
Restricted share units	$ 17,143	$ 22,412	9,911
Performance share units	5,438	4,095
Total share-based compensation expense	22,581	26,507	9,927
Tax effect on share-based compensation expense	0	0	0
Net effect on share-based compensation expense	$ 22,581	$ 26,507	$ 9,927

Share-Based Compensation Expense Recorded in Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 22,581	$ 26,507	$ 9,927
Cost of Revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	6,784	5,318	1,979
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 15,797	$ 21,189	$ 7,948

Share-Based Compensation - Additional Information (Detail) - USD ($)				12 Months Ended
	Dec. 14, 2017	Dec. 20, 2012	Dec. 20, 2010	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016	Nov. 02, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation costs capitalized				$ 0	$ 0	$ 0
Total fair value of shares vested				0	0	200,000
Total intrinsic value of options exercised				2,000,000	8,900,000	3,600,000
Cash received from the exercise of share options				1,400,000
Tax benefit realized				$ 0	$ 0	0
Annualized dividend yield				0.00%
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes				145,918	37,126
Tax withholdings related to net share settlement of restricted share units				$ 5,509,000	$ 1,425,000	2,463,000
Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares available for future grant				2,426,271
Share-based compensation arrangement by share-based payment award, number of additional shares authorized	2,100,000	2,100,000	2,100,000
Share options outstanding				2,900
Stock Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for future issuance							160,000
Ordinary shares available for future grant				14,041
1999 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for future issuance				0
Ordinary shares available for future grant				0
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				508,586
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
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value of restricted share units outstanding				$ 39,600,000
Restricted Share Units \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding				1,024,927
Unrecognized share-based compensation expense				$ 14,200,000
Unrecognized compensation expense, weighted-average period for recognition				2 years 7 months 6 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 \| Executive of the Company \| Granted to the executive prior to August 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage				100.00%
Restricted Share Units \| Executive of the Company \| Granted to the executive in August 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage				100.00%
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%
Restricted Share Units and Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of restricted share units vested				$ 12,200,000	$ 18,100,000	$ 7,900,000
Performance Stock Units PSU \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense				$ 1,000,000
Unrecognized compensation expense, weighted-average period for recognition				1 year

Share Option Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016	Jun. 26, 2015
Number of shares
Beginning balance	96,688	464,334	792,019
Granted	0	0	0
Exercised	(92,288)	(367,641)	(325,530)
Forfeited			(755)
Expired	(1,500)	(5)	(1,400)
Ending balance	2,900	96,688	464,334
Expected to vest as of June 29, 2018	2,900
Number of Exercisable Options
Number of Exercisable Options	2,900	96,688	464,334	758,451
Weighted-Average Exercise Price per share
Beginning balance	$ 15.70	$ 15.95	$ 16.33
Granted	0	0	0
Exercised	15.56	16.02	16.83
Forfeited			17.10
Expired	25.50	5.75	23.62
Ending balance	15.16	15.70	15.95
Expected to vest as of June 29, 2018	15.16
Weighted-Average Grant Date Fair Value
Granted	$ 0	$ 0	$ 0

Information for Share Options Outstanding (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 29, 2018 USD ($) $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	2,900
Options outstanding, weighted average remaining contractual life (years)	1 month 17 days
Options outstanding, aggregate intrinsic value \| $	$ 63
Range of Exercise Price 1
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	2,900
Exercise Price Per Share \| $ / shares	$ 15.16
Options outstanding, weighted average remaining contractual life (years)	1 month 17 days
Stock Plan Nineteen Ninety Nine and Twenty Ten
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, exercisable	2,900
Options exercisable, weighted average remaining contractual life (years)	1 month 17 days
Options exercisable, aggregate intrinsic value \| $	$ 63
Number of Shares Underlying Options, Expected to vest	2,900
Options Expected to vest, weighted average remaining contractual life (years)	1 month 17 days
Options Expected to vest, aggregate intrinsic value \| $	$ 63

Restricted Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Restricted Share Units - $ / shares	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Number of restricted share units
Number of share units, beginning balance	1,058,605	1,181,402	1,140,927
Number of share units, Granted	552,637	861,356	654,589
Number of share units, Issued	(436,867)	(853,535)	(507,621)
Number of share units, Forfeited	(100,795)	(130,618)	(106,493)
Number of share units, Ending Balance	1,073,580	1,058,605	1,181,402
Number of restricted share units, Expected to vest	1,012,791
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 31.59	$ 18.34	$ 16.03
Weighted-average grant date fair value per share, Granted	35.95	38.95	21.15
Weighted-average grant date fair value per share, Issued	27.81	21.16	15.60
Weighted-average grant date fair value per share, Forfeited	33.62	29.31	18.34
Weighted-average grant date fair value per share, Ending Balance	35.19	$ 31.59	$ 18.34
Weighted-average grant date fair value per share, Expected to vest	$ 34.87

Performance Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Performance Share Units - $ / shares	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017
Number of performance share units
Number of share units, beginning balance	227,268
Number of share units, Granted	378,624	234,678
Number of share units, Issued	0	0
Number of share units, Forfeited		(7,410)
Number of share units, Ending Balance	605,892	227,268
Expected to vest as of June 29, 2018	285,280
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 40.48
Weighted-average grant date fair value per share, Granted	37.16	$ 40.48
Weighted-average grant date fair value per share, Issued	0	0
Weighted-average grant date fair value per share, Granted	37.16	40.48
Weighted-average grant date fair value per share, Forfeited	0	0
Weighted-average grant date fair value per share, Ending Balance	38.41	$ 40.48
Weighted-average grant date fair value per share, Expected to vest	$ 33.98

Employee Benefit Plans -Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Defined Contribution and Defined Benefit Plans [Line Items]
Bonus distributions to employees	$ 4.0	$ 7.6	$ 7.5
Provident Fund
Defined Contribution and Defined Benefit Plans [Line Items]
Defined contribution plan, employer annual contribution	4.2	3.6	2.8
Defined Contribution Plan 401k
Defined Contribution and Defined Benefit Plans [Line Items]
Defined contribution plan, employer annual contribution	$ 0.7	$ 0.6	$ 0.5
Employees maximum contribution to 401 (K) Plan	80.00%
Percentage of employees' contribution, eligible for employer match	100.00%
Percentage of employees' annual contribution, eligible for employers match	6.00%

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016	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	1,289,103
Treasury stock acquired, average cost per share	$ 32.89
Treasury stock, retired, cost method, amount	$ 42.4
Treasury Stock, carrying basis	$ 17.6
Stock Plan Nineteen Ninety Nine and Twenty Ten
Shareholders Equity [Line Items]
Ordinary shares issued upon exercise of options	92,288	367,641	325,530
Ordinary shares issued upon exercise of options, weight average exercise price	$ 15.56	$ 16.02	$ 16.83
Ordinary shares issued upon vesting of restricted shares	290,949	816,409	393,262

Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 681,574	$ 554,419	$ 478,944
Other comprehensive income before reclassification	(544)	41
Amounts reclassified from AOCI	(365)	(980)
Tax effects	0	0
Total other comprehensive (loss) income, net of tax	(909)	(939)	635
Ending Balance	740,939	681,574	554,419
Unrealized Net (Losses)/Gains on Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(72)	399
Other comprehensive income before reclassification	(655)	351
Amounts reclassified from AOCI	(364)	(822)
Tax effects	0	0
Total other comprehensive (loss) income, net of tax	(1,019)	(471)
Ending Balance	(1,091)	(72)	399
Unrealized Net Gains (Losses) on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	34	192
Amounts reclassified from AOCI	(1)	(158)
Tax effects	0	0
Total other comprehensive (loss) income, net of tax	(1)	(158)
Ending Balance	33	34	192
Foreign Currency Translation Adjustment (Losses) Gains
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(310)
Other comprehensive income before reclassification	111	(310)
Tax effects	0	0
Total other comprehensive (loss) income, net of tax	111	(310)
Ending Balance	(199)	(310)
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(348)	591
Tax effects	0	0
Ending Balance	$ (1,257)	$ (348)	$ 591

Pre-tax Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	$ 3,925	$ 1,977	$ 1,535
Selling, general and administrative expenses	(57,812)	(65,626)	$ (49,753)
Total amounts reclassified from AOCI	(365)	(980)
Unrealized Net (Losses)/Gains on Marketable Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amounts reclassified from AOCI	(364)	(822)
Unrealized Net Gains (Losses) on Derivative Instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amounts reclassified from AOCI	(1)	(158)
Reclassification out of Accumulated Other Comprehensive Income \| Unrealized Net (Losses)/Gains on Marketable Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	(364)	(822)
Reclassification out of Accumulated Other Comprehensive Income \| Unrealized Net Gains (Losses) on Derivative Instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling, general and administrative expenses	$ (1)	$ (158)

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Jan. 10, 2017	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016	Dec. 23, 2016
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of subsidiary		$ 1.5	$ 1.5
Rental expense under operating leases		1.8	$ 1.7	$ 1.2
Thailand
Commitments and Contingencies Disclosure [Line Items]
Purchase of land					$ 5.6
Payment to purchase of land	$ 1.1
Outstanding commitment to third parties		$ 2.4
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	Jun. 29, 2018 USD ($)
Operating Leased Assets [Line Items]
2019	$ 1,263
2020	943
2021	542
2022	427
Thereafter	456
Total future minimum operating lease payments	$ 3,631

Future Minimum Lease Payments Under Non-Cancelable Capital Leases (Detail) $ in Thousands	Jun. 29, 2018 USD ($)
Capital Leased Assets [Line Items]
2019	$ 481
2020	424
2021	106
Total minimum capital lease payments	1,011
Less: Future finance charge on capital leases	(44)
Present value of capital lease	$ 967

Capital Lease Liabilities (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Jun. 30, 2017
Capital Leased Assets [Line Items]
Current	$ 451	$ 344
Non-current	516	$ 1,024
Present value of capital lease	$ 967

Present Value of Capital Lease (Detail) $ in Thousands	Jun. 29, 2018 USD ($)
Capital Leased Assets [Line Items]
2019	$ 451
2020	411
2021	105
Present value of capital lease	$ 967

Business Segments and Geographic Information - Additional Information (Detail) $ in Millions	12 Months Ended
	Jun. 29, 2018 USD ($) Segment	Jun. 30, 2017 USD ($) Segment	Jun. 24, 2016 Segment
Segment Reporting Information [Line Items]
Number of operating segment \| Segment	1	1	1
North America
Segment Reporting Information [Line Items]
Long-lived assets \| $	$ 33.2	$ 34.9

Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 29, 2018	Mar. 30, 2018	Dec. 29, 2017	Sep. 29, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 30, 2016	Sep. 30, 2016	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 345,327	$ 332,313	$ 337,072	$ 357,313	$ 370,454	$ 366,837	$ 351,156	$ 332,043	$ 1,371,925	$ 1,420,490	$ 976,747
North America
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues									643,236	661,267	525,161
Asia-Pacific
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues									519,203	539,317	351,033
Europe
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues									$ 209,486	$ 219,906	$ 100,553

Revenues by End Market (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Revenues by End Market (Detail) - USD ($) $ in Thousands	Jun. 29, 2018	Mar. 30, 2018	Dec. 29, 2017	Sep. 29, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 30, 2016	Sep. 30, 2016	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Revenue from External Customer [Line Items]
Revenues	$ 345,327	$ 332,313	$ 337,072	$ 357,313	$ 370,454	$ 366,837	$ 351,156	$ 332,043	$ 1,371,925	$ 1,420,490	$ 976,747
Optical communications
Revenue from External Customer [Line Items]
Revenues									1,000,256	1,108,637	727,580
Lasers, sensors, and other
Revenue from External Customer [Line Items]
Revenues									$ 371,669	$ 311,853	$ 249,167

Total Revenues by Percentage from Individual Customers Representing Ten Percent or More of Total Revenues (Detail)	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Revenue \| Customer Concentration Risk \| Lumentum Operations LLC
Revenue, Major Customer [Line Items]
Concentration of risk percentage	16.00%	17.00%	20.00%

Accounts Receivable from Individual Customers Representing Ten Percent or More of Accounts Receivable (Detail) - Accounts Receivable - Customer Concentration Risk

12 Months Ended

Jun. 29, 2018

Jun. 30, 2017

Lumentum Operations LLC

Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]

Concentration of risk percentage

18.00%

15.00%

NeoPhotonics Corporation

Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]

Concentration of risk percentage

11.00%

12.00%

Acacia Communications Inc

Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]

Concentration of risk percentage

^[1]

10.00%

[1]	Represents less than 10% of total accounts receivable.

Financial instruments - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Financial Instrument [Line Items]
Amount of unrealized loss recognized in net income on derivatives	$ 1,700,000		$ 1,800,000
Amount of unrealized gain recognized in net income on derivatives		$ 20,000
Forward Foreign Currency and Option Contracts \| Maximum
Financial Instrument [Line Items]
Derivative term of contract	6 months
China, Yuan Renminbi
Financial Instrument [Line Items]
Derivative contracts	$ 0	0
United Kingdom, Pounds
Financial Instrument [Line Items]
Derivative contracts denominated in GBP	0
Foreign currency forward contracts \| Thailand, baht
Financial Instrument [Line Items]
Derivative contracts	7,000,000	$ 1,000,000
Foreign currency option contracts \| Thailand, baht
Financial Instrument [Line Items]
Derivative contracts	$ 30,000,000

Outstanding Foreign Currency Assets and Liabilities (Detail) ฿ in Thousands, ¥ in Thousands, £ in Thousands, $ in Thousands	Jun. 29, 2018 USD ($)	Jun. 29, 2018 CNY (¥)	Jun. 29, 2018 GBP (£)	Jun. 29, 2018 THB (฿)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 CNY (¥)	Jun. 30, 2017 GBP (£)	Jun. 30, 2017 THB (฿)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	$ 48,749				$ 24,590
Foreign currency liabilities	49,993				66,715
Thailand, baht
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	29,568			฿ 980,778	11,628			฿ 395,123
Foreign currency liabilities	42,251			฿ 1,401,473	55,189			฿ 1,875,338
China, Yuan Renminbi
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	2,789	¥ 18,455			3,980	¥ 26,965
Foreign currency liabilities	3,007	¥ 19,893			4,200	¥ 28,451
United Kingdom, Pounds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	16,392		£ 12,514		8,982		£ 6,896
Foreign currency liabilities	$ 4,735		£ 3,615		$ 7,326		£ 5,625

Unaudited Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 29, 2018	Mar. 30, 2018	Dec. 29, 2017	Sep. 29, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 30, 2016	Sep. 30, 2016	Jun. 29, 2018	Jun. 30, 2017	Jun. 24, 2016
Quarterly Financial Information [Line Items]
Total revenues	$ 345,327	$ 332,313	$ 337,072	$ 357,313	$ 370,454	$ 366,837	$ 351,156	$ 332,043	$ 1,371,925	$ 1,420,490	$ 976,747
Gross profit	38,981	36,933	37,166	40,332	44,760	44,046	43,046	39,608	153,412	171,460	119,523
Net income	$ 22,768	$ 21,053	$ 19,313	$ 21,033	$ 27,401	$ 21,656	$ 25,292	$ 22,766	$ 84,167	$ 97,115	$ 61,897
Basic net income per share:
Net income	$ 0.62	$ 0.56	$ 0.52	$ 0.56	$ 0.73	$ 0.58	$ 0.69	$ 0.63	$ 2.26	$ 2.63	$ 1.73
Weighted-average shares used in basic net income per share calculations	36,828	37,275	37,477	37,447	37,334	37,116	36,848	36,404	37,257	36,927	35,857
Diluted net income per share:
Net income	$ 0.60	$ 0.55	$ 0.51	$ 0.55	$ 0.72	$ 0.57	$ 0.67	$ 0.61	$ 2.21	$ 2.57	$ 1.68
Weighted-average shares used in diluted net income per share calculations	37,766	38,055	38,156	38,163	38,118	37,872	37,805	37,330	38,035	37,852	36,872

Total Borrowings, Including Short-Term and Long-Term Borrowings (Parenthetical) (Detail)	1 Months Ended
	Jun. 29, 2018
Debt Instrument [Line Items]
Extended maturity date	2023-06