0001193125-20-284755 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Sep. 25, 2020	Oct. 23, 2020
Cover [Abstract]
Document Type	10-Q
Current Fiscal Year End Date	--06-25
Amendment Flag	false
Document Period End Date	Sep. 25, 2020
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001408710
Entity Registrant Name	Fabrinet
Trading Symbol	FN
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Interactive Data Current	Yes
Security Exchange Name	NYSE
Title of 12(b) Security	Ordinary Shares
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-34775
Entity Incorporation, State or Country Code	E9
Entity Tax Identification Number	98-1228572
Entity Address, Address Line One	c/o Intertrust Corporate Services (Cayman) Limited
Entity Address, Address Line Two	190 Elgin Avenue
Entity Address, City or Town	George Town
Entity Address, Country	KY
Entity Address, Postal Zip Code	KY1-9005
City Area Code	66
Local Phone Number	2-524-9600
Entity Common Stock, Shares Outstanding		36,938,451

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020
Current assets
Cash and cash equivalents	$ 189,201	$ 225,430
Short-term restricted cash	7,402	7,402
Short-term investments	307,238	262,693
Trade accounts receivable, net of allowance for doubtful accounts of $186 and $336 respectively	289,162	272,665
Contract assets	11,757	13,256
Inventories	339,429	309,786
Other receivable	24,310	24,310
Prepaid expenses	4,095	5,399
Other current assets	7,827	14,508
Total current assets	1,180,421	1,135,449
Non-current assets
Property, plant and equipment, net	227,623	228,274
Intangibles, net	4,147	4,312
Operating right-of-use assets	7,228	8,068
Deferred tax assets	5,766	5,675
Other non-current assets	221	202
Total non-current assets	244,985	246,531
Total Assets	1,425,406	1,381,980
Current liabilities
Long-term borrowings, current portion, net	12,156	12,156
Trade accounts payable	284,173	251,603
Fixed assets payable	9,616	15,127
Contract liabilities	966	1,556
Operating lease liabilities, current portion	2,098	1,979
Income tax payable	2,940	2,242
Accrued payroll, bonus and related expenses	18,881	19,265
Accrued expenses	10,077	8,979
Other payables	14,542	21,514
Total current liabilities	355,449	334,421
Non-current liabilities
Long-term borrowings, non-current portion, net	36,475	39,514
Deferred tax liability	4,927	4,729
Operating lease liability, non-current portion	4,906	5,873
Severance liabilities	17,609	17,379
Other non-current liabilities	5,337	5,655
Total non-current liabilities	69,254	73,150
Total Liabilities	424,703	407,571
Commitments and contingencies (Note 17)
Shareholders' equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of September 25, 2020 and June 26, 2020)
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 38,680,659 shares and 38,471,967 shares issued at September 25, 2020 and June 26, 2020, respectively; and 36,936,556 shares and 36,727,864 shares outstanding at September 25, 2020 and June 26, 2020, respectively)	387	385
Additional paid-in capital	171,715	175,610
Less: Treasury shares (1,744,103 shares and 1,744,103 shares as of September 25, 2020 and June 26, 2020, respectively)	(68,501)	(68,501)
Accumulated other comprehensive loss	(3,904)	(1,147)
Retained earnings	901,006	868,062
Total Shareholders' Equity	1,000,703	974,409
Total Liabilities and Shareholders' Equity	$ 1,425,406	$ 1,381,980

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020
Allowance for doubtful accounts	$ 186	$ 336
Preferred shares, shares authorized	5,000,000	5,000,000
Preferred shares, par value	$ 0.01	$ 0.01
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, par value	$ 0.01	$ 0.01
Ordinary shares, shares issued	38,680,659	38,471,967
Ordinary shares, shares outstanding	36,936,556	36,727,864
Treasury stocks, shares	1,744,103	1,744,103

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Revenues	$ 436,639	$ 399,296
Cost of revenues	(386,159)	(353,309)
Gross profit	50,480	45,987
Selling, general and administrative expenses	(16,863)	(16,000)
Operating income	33,617	29,987
Interest income	1,104	2,098
Interest expense	(251)	(2,393)
Foreign exchange gain (loss), net	128	(1,953)
Other income (expense), net	121	377
Income before income taxes	34,719	28,116
Income tax expense	(1,668)	(2,159)
Net income	33,051	25,957
Other comprehensive income (loss), net of tax:
Change in net unrealized gain (loss) on available-for-sale securities	(325)	35
Change in net unrealized gain (loss) on derivative instruments	(3,208)	39
Change in net retirement benefits plan – prior service cost	173	83
Change in foreign currency translation adjustment	603	(369)
Total other comprehensive income (loss), net of tax	(2,757)	(212)
Net comprehensive income	$ 30,294	$ 25,745
Earnings per share
Basic	$ 0.90	$ 0.70
Diluted	$ 0.88	$ 0.69
Weighted-average number of ordinary shares outstanding (thousands of shares)
Basic	36,818	36,913
Diluted	37,383	37,529

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect Period of Adoption Adjustment [Member]	Ordinary Shares	Additional Paid-in Capital	Treasury Shares	Accumulated Other Comprehensive (Loss) Income	Retained Earnings	Retained Earnings Cumulative Effect Period of Adoption Adjustment [Member]
Beginning Balance at Jun. 28, 2019	$ 863,099		$ 382	$ 158,299	$ (47,779)	$ (2,386)	$ 754,583
Beginning Balance (in shares) at Jun. 28, 2019			38,230,753
Net income	25,957						25,957
Other comprehensive income (loss)	(212)					(212)
Share-based compensation	5,995			5,995
Issuance of ordinary shares	0		$ 2	(2)
Issuance of ordinary shares (in shares)			158,375
Tax withholdings related to net share settlement of restricted share units	(4,144)			(4,144)
Ending Balance at Sep. 27, 2019	890,695		$ 384	160,148	(47,779)	(2,598)	780,540
Ending Balance (in shares) at Sep. 27, 2019			38,389,128
Beginning Balance at Jun. 26, 2020	974,409	$ (107)	$ 385	175,610	(68,501)	(1,147)	868,062	$ (107)
Beginning Balance (in shares) at Jun. 26, 2020			38,471,967
Net income	33,051						33,051
Other comprehensive income (loss)	(2,757)					(2,757)
Share-based compensation	6,027			6,027
Issuance of ordinary shares			$ 2	(2)
Issuance of ordinary shares (in shares)			208,692
Tax withholdings related to net share settlement of restricted share units	(9,920)			(9,920)
Ending Balance at Sep. 25, 2020	$ 1,000,703		$ 387	$ 171,715	$ (68,501)	$ (3,904)	$ 901,006
Ending Balance (in shares) at Sep. 25, 2020			38,680,659

- Definition

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

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Cash flows from operating activities
Net income for the period	$ 33,051	$ 25,957
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	8,570	7,465
(Gain) loss on disposal of property, plant and equipment	(19)	8
(Gain) loss from sales and maturities of available-for-sale securities		(67)
Amortization of investment discount	481	65
Amortization of deferred debt issuance costs	8	2
(Reversal of) allowance for doubtful accounts	(257)	(5)
Unrealized (gain) loss on exchange rate and fair value of foreign currency forward contracts	(890)	1,479
Unrealized loss (gain) on fair value of interest rate swaps		1,671
Amortization of fair value at hedge inception of interest rate swaps	(359)
Share-based compensation	6,027	5,995
Deferred income tax	56	705
Other non-cash expenses	96	53
Changes in operating assets and liabilities
Trade accounts receivable	(16,497)	(12,967)
Contract assets	1,499	827
Inventories	(29,643)	(27,898)
Other current assets and non-current assets	7,812	4,225
Trade accounts payable	33,546	(5,263)
Contract liabilities	(590)	27
Income tax payable	871	733
Severance liabilities	745	811
Other current liabilities and non-current liabilities	(10,001)	(1,176)
Net cash provided by operating activities	34,506	2,647
Cash flows from investing activities
Purchase of short-term investments	(79,103)	(62,880)
Proceeds from sales of short-term investments		49,472
Proceeds from maturities of short-term investments	33,750	31,673
Purchase of property, plant and equipment	(12,572)	(6,343)
Purchase of intangibles	(530)	(246)
Proceeds from disposal of property, plant and equipment	21
Net cash (used in) provided by investing activities	(58,434)	11,676
Cash flows from financing activities
Payment of debt issuance costs		(153)
Proceeds from long-term borrowings		60,938
Repayment of long-term borrowings	(3,047)	(60,938)
Repayment of finance lease liability	(100)	(109)
Withholding tax related to net share settlement of restricted share units	(9,920)	(4,144)
Net cash used in financing activities	(13,067)	(4,406)
Net (decrease) increase in cash, cash equivalents and restricted cash	(36,995)	9,917
Movement in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at the beginning of period	232,832	188,241
(Decrease) increase in cash, cash equivalents and restricted cash	(36,995)	9,917
Effect of exchange rate on cash, cash equivalents and restricted cash	766	(41)
Cash, cash equivalents and restricted cash at the end of period	196,603	198,117
Non-cash investing and financing activities
Construction, software and equipment-related payables	$ 9,616	$ 9,816

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Sep. 25, 2020	Sep. 27, 2019
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$ 189,201	$ 168,535
Restricted cash	7,402	29,582
Cash, cash equivalents and restricted cash	$ 196,603	$ 198,117

Business and organization

3 Months Ended

Sep. 25, 2020

Business and organization

1.	Business and organization

General

Fabrinet

(“

Fabrinet

” or the “Parent Company”) was incorporated on August

1999

, and commenced operations on January

2000

. The Parent Company is an exempted company incorporated in the Cayman Islands, British West Indies. The “Company” refers to

Fabrinet

and its subsidiaries as a group.

The Company provides advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (“OEMs”) of complex products, such as optical communication components, modules and

sub-systems,

industrial lasers, automotive components, medical devices and sensors. The Company offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing. The Company focuses primarily on the production of

low-volume,

high-mix

products. The principal subsidiaries of Fabrinet include Fabrinet Co., Ltd. (“Fabrinet Thailand”), Casix, Inc. (“Casix”), Fabrinet West, Inc. (“Fabrinet West”) and Fabrinet UK Limited (“Fabrinet UK”).

Accounting policies

3 Months Ended

Sep. 25, 2020

Accounting policies

2.	Accounting policies

Basis of presentation

The accompanying unaudited condensed consolidated financial statements for Fabrinet as

September 25, 2020 and for the three months ended September 25, 2020 and September 27, 2019 includes normal recurring adjustments necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such information does not include all of the information and footnotes required by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinet’s Annual Report on Form

10-K

for the year ended June 26, 2020.

The balance sheet as

June 26, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The results for the three months ended September 25, 2020 may not be indicative of results for the year ending June 25, 2021 or any future periods.

Use of Estimates

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

COVID-19

pandemic impacts the Company’s unaudited condensed consolidated financial statements will depend on a number of factors, including the magnitude and duration of the pandemic. These estimates may change, as new events occur and additional information is obtained, as well as other factors related to the

COVID-19

pandemic that could result in material impacts to our unaudited condensed consolidated financial statements in future reporting periods.

Fiscal years

The Company utilizes a

52-53

week fiscal year ending on the Friday in June closest to June 30. The three months ended September 25, 2020 and September 27, 2019 each consisted of 13 weeks. Fiscal year

2021

will be comprised of 52 weeks and will end on June 25, 2021.

Reclassifications

For presentation purposes, certain prior period amounts have been reclassified to conform to the current period presentation.

As of June 26, 2020, the derivative assets and liabilities were measured at fair value and recognized by offsetting the fair value amounts under master netting arrangements. Also, the Company chose not to separate a derivative into current and

non-current

portions as follows:

(i)

A derivative for which the fair value is a net liability is classified in total as a current liability.

(ii)

A derivative for which the fair value is a net asset and the current portion is an asset is classified in total as a

non-current

asset. If the current portion is a liability, it is presented as a current liability.

As of September 25, 2020, the derivative assets and liabilities were measured at fair value, but the gross fair value amount is presented in the unaudited condensed consolidated balance sheets. Additionally, a classification of current and

non-current

portion is determined by the maturity date of that derivative (e.g., a derivative that matures within one year is classified as current).

The reclassifications have been made to the consolidated balance sheet as of June 26, 2020 as shown in the following table:


	June 26, 2020
(amount in thousands)	As previously reported		Reclassification			After reclassification

Consolidated Balance Sheet
Current assets
Other current assets	$	13,915	$	593		$	14,508
Current liabilities
Accrued expenses	$	12,104	$	(3,125	)	$	8,979
Non-current liabilities
Other non-current liabilities	$	1,937	$	3,718		$	5,655

Adoption of New Accounting Standards

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2016-13,

“Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This standard requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. The standard replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. The new standard also expands the required quantitative and qualitative disclosures surrounding expected credit losses.

On June 27, 2020, the Company adopted Accounting Standards Codification (“ASC”) 326 using the modified retrospective transition approach. The modified retrospective method requires the Company to recognize the cumulative effect of the adoption of ASC 326, to the opening accumulated retained earnings. Accordingly, the Company’s comparative financial statements as of June 26, 2020 have not been adjusted. The Company implemented internal controls to enable the preparation of financial information upon adoption.

Management estimates the expected credit losses of financial assets using relevant available information from internal and external sources relating to historical credit loss experience, current conditions and reasonable forecasts over a financial asset’s contractual term. Adjustments to historical loss information are made from qualitative and quantitative factors if economic conditions on the reporting date reflect stronger or weaker economic performance than the historical data implies based on management’s expectations of economic conditions on certain indicators of the Company, industry and economy. The Company reviews factors such as past collection experience, age of the accounts receivable and contract assets balance, significant trends in current balances, internal operations and macroeconomic conditions. In addition, the Company modified its impairment model to the Current Expected Credit Losses (“CECL”) model for

available-for-sale

(“AFS”) debt securities and discontinued using the concept of “other than temporary” impairment on these AFS debt securities. CECL on the AFS debt securities are recognized in interest income and other income (expense), net on the Company’s unaudited condensed consolidated statements of operations and comprehensive income, and any remaining unrealized losses, are included in accumulated other comprehensive loss (“AOCI”) in the unaudited condensed consolidated balance sheet.

As of June 27, 2020, the Company recorded a cumulative adjustment from CECL in the amount of $0.1 million, net of tax impact, to accumulated retained earnings in the unaudited condensed consolidated balance sheet.

On June 27, 2020, the Company also adopted ASC 820, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This standard is intended to improve the effectiveness of disclosures in the notes to the financial statements, including (1) the development of a framework that promotes consistent decisions by the FASB about disclosure requirements and (2) the appropriate exercise of discretion by reporting entities. The amendment modifies the disclosure requirements on transferring between level 1 and level 2 and valuation processes of level 3 fair value measurements. The Company adopted this standard with no impact on its unaudited condensed consolidated financial statements.

Changes in Accounting Policies

Except for the adoption of ASC 326, the Company has consistently applied the accounting policies to all periods presented in these unaudited condensed consolidated financial statements.

Short-term investments

Management determines the appropriate classification of its investments at the time of purchase and

re-evaluates

the designations at each balance sheet date. The Company may sell certain of the Company’s short-term investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s short-term investments generally range from three months to three years. The Company’s short-term investments, which consist of investments in U.S. Treasury, fixed income securities, liquidity funds that invest in short-term debt securities and certificates of deposit and time deposits, have been classified and accounted for as AFS. The AFS investments are carried at estimated fair value with any unrealized gains and losses, included in AOCI in the Company’s unaudited condensed consolidated balance sheet. The Company determines realized gains or losses on sale of marketable securities on a specific identification method and records such gains or losses as interest income and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive income.

AFS debt securities are required to be individually evaluated for impairment. A security is considered impaired if the fair value of the security is less than its amortized cost basis.

An impairment is considered other than temporary if (i) the Company has the intent to sell the security, (ii) it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security.

If an impairment is considered other than temporary based on condition (i) or (ii), the entire difference between the amortized cost and the fair value of the debt security is recognized as interest income and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive income.

If an impairment is considered other than temporary based on condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security) is recognized in interest and other income (expense), net in the unaudited condensed consolidated statements of operations and comprehensive income, and any remaining unrealized losses are included in AOCI in the unaudited condensed consolidated balance sheet.

Trade accounts receivable

Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates of expected credit losses for the allowance for doubtful accounts based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. The estimated credit loss allowance is recorded as selling, general and administrative expenses in the unaudited condensed consolidated statements of operations and comprehensive income.

Contract assets

A contract asset is recognized when the Company has recognized revenues prior to generating an invoice for payment. Contract assets are classified separately within the unaudited condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. The Company makes estimates of expected credit losses for the allowance for contract assets based upon its assessment of various factors, including historical experience, the age of the contract assets balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. The estimated credit loss allowance is recorded as selling, general and administrative expenses in its unaudited condensed consolidated statements of operations and comprehensive income.

Concentration of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, short-term investments, derivatives, accounts receivable and contract assets.

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

P-1,

F1, or better.

The Company enters into derivative contracts with financial institutions with reputable credit and monitors the credit profiles of these counterparties.

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

New Accounting Pronouncements – not yet adopted by the Company

In December 2019, the FASB issued ASU

2019-12,

“Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. This ASU will be effective for the Company in the first quarter of fiscal year 2022. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its unaudited condensed consolidated financial statements.

Revenues from contracts with customers

3 Months Ended

Sep. 25, 2020

Revenues from contracts with customers

3.	Revenues from contracts with customers

Revenue by Geographic Area and End Market

Revenues are attributed to a particular geographic area based on

the bill-to-location of

the Company’s customers. The Company operates in three geographic regions: North America, Asia-Pacific and Europe.

The following table presents total revenues by geographic region:


(amount in thousands, except percentages)	Three Months Ended September 25, 2020		As a % of Total Revenues

North America	$	207,402		47.5	%
Asia-Pacific		145,646		33.4
Europe		83,591		19.1

	$	436,639		100.0	%


(amount in thousands, except percentages)	Three Months Ended September 27, 2019		As a % of Total Revenues

North America	$	200,947		50.3	%
Asia-Pacific		118,423		29.7
Europe		79,926		20.0

	$	399,296		100.0	%


(amount in thousands, except percentages)	Three Months Ended September 25, 2020		As a % of Total Revenues

Optical communications	$	343,917		78.8	%
Lasers, sensors and other		92,722		21.2

Total	$	436,639		100.0	%


(amount in thousands, except percentages)	Three Months Ended September 27, 2019		As a % of Total Revenues

Optical communications	$	302,379		75.7	%
Lasers, sensors and other		96,917		24.3

Total	$	399,296		100.0	%

Contract Assets and Liabilities

A contract liability is recognized when the Company has advance payment arrangements with customers. The contract liabilities balance is normally recognized as revenue within six months.

The following tables summarize the activity in the Company’s contract assets and contract liabilities during the three months ended September 25, 2020:


(amount in thousands)	Contract Assets
Beginning balance, June 26, 2020	$	13,256
Revenue recognized		17,444
Amounts collected or invoiced		(18,943	)

Ending balance, September 25, 2020	$	11,757


(amount in thousands)	Contract Liabilities
Beginning balance, June 26, 2020	$	1,556
Additions advance payment received during the period		4,308
Revenue recognized		(4,898	)

Ending balance, September 25, 2020	$	966

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Earnings per ordinary share

3 Months Ended

Sep. 25, 2020

Earnings per ordinary share

4.	Earnings per ordinary share

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

Earnings per ordinary share was calculated as follows:


	Three Months Ended
(amount in thousands except per share amounts)	September 25, 2020		September 27, 2019

Net income attributable to shareholders	$	33,051	$	25,957

Weighted-average number of ordinary shares outstanding (thousands of shares)		36,818		36,913
Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares)		565		616

Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		37,383		37,529


Basic earnings per ordinary share	$	0.90	$	0.70
Diluted earnings per ordinary share	$	0.88	$	0.69
Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1)		61		50

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

Cash, cash equivalents and short-term investments

3 Months Ended

Sep. 25, 2020

Cash, cash equivalents and short-term investments

5.	Cash, cash equivalents and short-term investments

The Company’s cash, cash equivalents, and short-term investments are as follows:


					Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain/ (Loss)		Cash and Cash Equivalents		Marketable Securities		Other Investments

As of September 25, 2020
Cash	$	175,550	$	—	$	175,550	$	—	$	—
Cash equivalents		13,651		—		13,651		—		—
Liquidity funds		41,151		—		—		—		41,151
Certificates of deposit and time deposits		22,300		—		—		—		22,300
Corporate debt securities		192,509		739		—		193,248		—
U.S. agency and U.S. treasury securities		50,113		426		—		50,539		—
Total	$	495,274	$	1,165	$	189,201	$	243,787	$	63,451

As of June 26, 2020
Cash	$	218,117	$	—	$	218,117	$	—	$	—
Cash equivalents		7,313		—		7,313		—		—
Liquidity funds		41,051		—		—		—		41,051
Certificates of deposit and time deposits		11,800		—		—		—		11,800
Corporate debt securities		159,220		948		—		160,168		—
U.S. agency and U.S. treasury securities		49,130		544		—		49,674		—
Total	$	486,631	$	1,492	$	225,430	$	209,842	$	52,851

All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. Management determines the appropriate classification of its investments at the time of purchase and

re-evaluates

the designations at each balance sheet date. The Company may sell certain of its short-term investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s short-term investments generally range from three months to three years.

The following table summarizes the cost and estimated fair value of short-term investments classified as

available-for-sale

securities based on stated effective maturities as

September 25, 2020:


	September 25, 2020				June 26, 2020
(amount in thousands)	Carrying Cost		Fair Value		Carrying Cost		Fair Value
Due within one year	$	104,723	$	104,756	$	76,127	$	76,196
Due between one to five years		137,899		139,031		132,223		133,646

Total	$	242,622	$	243,787	$	208,350	$	209,842

As of September 25, 2020, the Company considered the declines in market value of its short-term investments portfolio to be temporary in nature and did not consider any of its securities other-than-temporarily impaired.

Fair value of financial instruments

3 Months Ended

Sep. 25, 2020

Fair value of financial instruments

6.	Fair value of financial instruments

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

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

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

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

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

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


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of September 25, 202 0
Assets
Cash equivalents	$	—	$	13,651		$	—	$	13,651
Liquidity funds		—		41,151			—		41,151
Certificates of deposit and time deposits		—		22,300			—		22,300
Corporate debt securities		—		193,248			—		193,248
U.S. agency and U.S. treasury securities		—		50,539			—		50,539
Derivative assets		—		694	(1)		—		694

Total	$	—	$	321,583		$	—	$	321,583

Liabilities
Derivative liabilities – current portion	$	—	$	2,426		$	—	$	2,426
Derivative liabilities – non-current portion		—		3,305			—		3,305

Total	$	—	$	5,731	(2)	$	—	$	5,731


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 26, 202 0
Assets
Cash equivalents	$	—	$	7,313		$	—	$	7,313
Liquidity funds		—		41,051			—		41,051
Certificates of deposit and time deposits		—		11,800			—		11,800
Corporate debt securities		—		160,168			—		160,168
U.S. agency and U.S. treasury securities		—		49,674			—		49,674
Derivative assets		—		2,823	(3)		—		2,823

Total	$	—	$	272,829		$	—	$	272,829

Liabilities
Derivative liabilities – current portion	$	—	$	2,148		$	—	$	2,148
Derivative liabilities – non-current portion		—		3,718			—		3,718

Total	$	—	$	5,866	(4)	$	—	$	5,866

(1)	Foreign currency forward contracts with a notional amount of $130.0 million and Canadian dollars of 0.8 million.

(2)	Two interest rate swap agreements with an aggregate notional amount of $125.1 million.

(3)	Foreign currency forward contracts with a notional amount of $125.0 million and Canadian dollars of 0.6 million, and option contract with a notional amount of $1.0 million.

(4)	Interest rate swap agreements with an aggregate notional amount of $125.1 million.

Derivative Financial Instruments

The Company utilizes derivative financial instruments to hedge (i) foreign exchange risk associated with certain foreign currency denominated assets and liabilities and other foreign currency transactions, and (ii) interest rate risk associated with its long-term debt.

The Company minimizes the credit risk associated with its derivative instruments by limiting the exposure to any single counterparty and by entering into derivative instruments only with counterparties that meet the Company’s minimum credit quality standard.

Foreign currency forward and option contracts

As a result of foreign currency rate fluctuations, the U.S. dollar equivalent values of the Company’s foreign currency denominated assets and liabilities fluctuate. The Company uses foreign currency forward and option contracts to manage the foreign exchange risk associated with a portion of its foreign currency denominated assets and liabilities and other foreign currency transactions. The Company enters into foreign currency forward and option contracts to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht and Canadian dollars with counterparties that meet the Company’s minimum credit quality standard.

The Company may enter into foreign currency forward contracts with maturities of up to 12 months to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht, including inventory purchases, payroll and other operating expenses. The Company considers these forward contracts as dual-purpose hedges, that hedge both the foreign exchange fluctuation (i) from inception through the forecasted expenditure, and (ii) any subsequent revaluation of the account payable or accrual. The Company may designate the forward contracts that hedge the foreign exchange fluctuation from inception through the forecasted expenditure as cash flow hedges. The gain or loss on a derivative instrument designated and qualified as a cash flow hedging instrument is recorded as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The reclassified amounts are presented in the same income statement line item as the earnings effect of the hedged item. Once the forecasted transactions are recorded, the Company will discontinue the hedging relationship by

de-designating

the derivative instrument and recording subsequent changes in fair value through contract maturity to foreign exchange gain (loss), net in the

unaudited condensed

consolidated statements of operations and comprehensive income as a natural hedge against the Thai baht denominated assets and liabilities.

The Company may also enter into

non-designated

foreign currency forward and option contracts to provide an offset to the

re-measurement

of foreign currency denominated assets and liabilities and to hedge certain forecasted exposures. Changes in the fair value of these

non-designated

derivatives are recorded through foreign exchange gain (loss), net in the unaudited condensed consolidated statements of operations and comprehensive income.

As of September 25, 2020, the Company had

130

outstanding U.S. dollar foreign currency forward contracts against Thai baht, with an aggregate notional amount of

$130.0

million and maturity dates ranging from October 2020 through April 2021 and one outstanding Canadian dollar foreign currency forward contract with a notional amount of Canadian dollars of 0.8 million and a maturity date in December 2020.

As of September 25, 2020, the hedging relationship over foreign currency forward contracts that were designated for hedge accounting was determined to be highly effective based on the performance of retrospective and prospective regression testing. As of September 25, 2020, the amount in AOCI that is expected to be reclassified into earnings within 12 months was a loss

of $0.5 million

During the three months ended September 25, 2020, the Company recorded an unrealized loss of $1.5

million from changes in the fair value of a foreign currency forward contract that was not designated for hedge accounting in earnings as foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income.

September 27, 2019, the Company had 61 outstanding foreign currency forward contracts with an aggregate notional amount of $74.0 million

and

maturity dates

ran

ging

from October 2019 through January 2020. These foreign currency forward contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht. During the three months

ended September 27, 2019, the Company recorded unrealized loss of $1.9 million from changes in the fair value of foreign currency contracts in earnings as foreign exchange gain, net in the unaudited condensed consolidated statements of operations and comprehensive income.

Interest Rate Swap Agreements

The Company entered into interest rate swap agreements to mitigate interest rate risk and improve the interest rate profile of the Company’s debt obligations. As

September 25, 2020

and June 26, 2020

, the Company had two outstanding interest rate swap agreements with an aggregate notional amount of $125.1 million.

On July 25, 2018, Fabrinet Thailand entered into an interest rate swap agreement to effectively convert the floating interest rate of its term loan under the Bank of America Credit Facility Agreement to a fixed interest rate of 2.86% per annum through the scheduled maturity of the term loan in June 2023 (see Note

). The Company did not designate this interest rate swap for hedge accounting.

On September 3, 2019, the Company entered into a new term loan agreement under a Credit Facility Agreement with the Bank of Ayudhya Public Company Limited (the “Bank”) (see Note

) and on September 10, 2019, repaid in full the outstanding term loan under the Bank of America Credit Facility (see Note 1

). In conjunction with the funding of the new term loan, the Company entered into a second interest rate swap agreement. The combination of both of these interest rate swaps effectively convert the floating interest rate of the Company’s new term loan with the Bank to a fixed interest rate of 4.36% per annum through the maturity of the term loan in June 2024.

On September 27, 2019, the Company designated these two interest rate swaps as a cash flow hedge for the Company’s term loan under the Credit Facility Agreement with the Bank. The combination of these two interest rate swaps qualified for hedge accounting because the hedges are highly effective, and the Company has designated and documented contemporaneously the hedging relationships involving these interest rate swaps. While we intend to continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective, the changes in the fair value of the derivatives used as hedges would be reflected in our earnings. From September 27, 2019, any gains or losses related to these interest rate swaps will be recorded in accumulated other comprehensive income in the unaudited condensed consolidated balance sheets. The Company will reclassify a portion of the gains or losses from accumulated other comprehensive income into earnings at each reporting period based on either the accrued interest amount or the interest payment.

September 25, 2020, the amount in accumulated other comprehensive income that is

expected to be reclassified into earnings within 12 months is

a ga

in of

$0.5

million

Prior to September 27, 2019, these interest rate swaps were not designated as cash flow hedges and all changes in the fair value of these interest rate swaps were reflected in earnings. During the three months ended September 27, 2019, the Company recorded unrealized loss of $1.7 million from changes in the fair value of these interest rate swaps as interest expense in the unaudited condensed consolidated statements of operations and comprehensive income.

The following table provides a summary of the impact of derivative gain (loss) of the Company’s foreign currency forward contracts and interest rate swaps which were designated as cash flow hedges on the unaudited condensed consolidated statements of operations and other comprehensive income:


			Three Months Ended
(amount in thousands)	Financial statements line item		September 25, 2020			September 27, 2019
Derivatives gain (loss) recognized in other comprehensive income:
Foreign currency forward contracts		Other comprehensive income	$	(2,340	)	$	—
Interest rate swaps		Other comprehensive income		357			39

Total derivatives gain (loss) recognized in other comprehensive income			$	(1,983	)	$	39

Derivatives loss ( gain ) reclassified from accumulated other comprehensive income into earnings:
Foreign currency forward contracts		Cost of revenues	$	(2,057	)	$	—
Foreign currency forward contracts		SG&A		(87	)		—
Foreign currency forward contracts		Foreign exchange loss, net		1,278			—
Interest rate swaps		Interest expense		(359	)		—

Total derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings			$	(1,225	)	$	—

Change in net unrealized gain (loss) on derivatives instruments			$	(3,208	)	$	—

Fair Value of derivatives

The following table provides the fair values of the Company’s derivative financial instruments for the periods presented:


	September 25, 2020					June 26, 2020
(amount in thousands)	Derivative Assets		Derivative Liabilities			Derivative Assets		Derivative Liabilities
Derivatives not designated as hedging instruments
Foreign currency forward and option contracts	$	447	$	(134	)	$	9	$	(611	)
Interest rate swaps		—		—			—		—

Derivatives designated as hedging instruments
Foreign currency forward contracts		247		(781	)		2,814		(83	)
Interest rate swaps		—		(4,816	)		—		(5,172	)

Derivatives, gross balances		694		(5,731	)		2,823		(5,866	)

The Company presents its derivatives at net fair values in the unaudited condensed consolidated balance sheets.

The Company’s netting arrangements allow net settlements under certain conditions. The Company’s derivative instruments are typically settled monthly or quarterly.

The Company recorded the fair value of derivative financial instruments in the unaudited condensed consolidated balance sheets as follows:


		Derivative Financial Instruments		Balance Sheet line item

		Fair Value of Derivative Assets		Other current assets
		Fair Value of Derivative Liabilities		Accrued expenses
		Fair Value of Derivative Liabilities		Other non-current liabilities

- 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

Inventories

3 Months Ended

Sep. 25, 2020

Inventories

7 .	Inventories


(amount in thousands)	As of September 25, 2020		As of June 26, 2020

Raw materials	$	153,511	$	141,522
Work in progress		149,441		136,344
Finished goods		21,619		17,950
Goods in transit		14,858		13,970

Inventories	$	339,429	$	309,786

Other receivable

3 Months Ended

Sep. 25, 2020

Receivables [Abstract]

Other receivable

8 .	Other receivable

On October 1, 2019, the Company provided funds in the amount of $24.3 million to a customer to support the customer’s transfer of certain manufacturing operations from Berlin, Germany to the Company’s facilities in Thailand.

September

25, 2020, the Company recorded the $

24.3

million funds as other receivable in the unaudited condensed consolidated balance

sheet. The Company entered into the Amendment on October 1, 2020 to extend the payment terms of this amount and accrued interest and amend certain terms and conditions. (See Note 19)

Restricted cash

3 Months Ended

Sep. 25, 2020

Restricted cash

9 .	Restricted cash

September 25, 2020 and June 26, 2020, the Company had one outstanding standby letter of credit of 6.0 million Euros, related to the Company’s support of a customer’s transfer of certain manufacturing operations from Berlin, Germany to the Company’s facilities in Thailand. As

September 25, 2020 and June 26, 2020, the standby letter of credit w

backed by cash collateral of $7.4 million

Leases

3 Months Ended

Sep. 25, 2020

Leases [Abstract]

Leases

The Company leases facilities under

non-cancelable

operating lease agreements. The Company leases a portion of its capital equipment and vehicles, certain land and buildings for its facilities in Thailand, the Cayman Islands, China, the U.S., the U.K. and Israel under operating lease arrangements that expire at various dates through 2025. Certain of these lease arrangements provide the Company the ability to extend the lease from one to five years following the expiration of the current term. However, the Company has excluded all lease extension options from its ROU

assets and lease liabilities as the Company is not reasonably assured that it will exercise these options. None of the lease agreements contain residual value guarantees provided by the lessee. The Company also has one intercompany lease transaction

in th

e form of

a lease of office and manufacturing space between Fabritek and Fabrinet West.

Operating leases

Septe

ber 25, 2020, the m

turities of the Company’s operating lease liabilities w

re as follows:


(amount in thousands)	As of September 25, 2020
2021	$	1,786
2022		2,381
2023		2,265
2024		990
2025		19

Total undiscounted lease payments		7,441
Less imputed interest		(437	)

Total present value of lease liabilities	$	7,004	(1)

(1)	Included current portion of operating lease liabilities for the period ended September 25, 2020 .

Rental expense related to the Company’s operating leases is recognized on a straight-line basis over the lease term. Rental expense for long-term leases for the three months ended September 25, 2020 and September 27, 2019 was $0.6 million and $0.5 million, respectively. Rental expense for short-term leases for the three months ended September 25, 2020 and September 27, 2019 w

not material.

The following summarizes additional information related to the Company’s operating leases:


	As of September 25, 2020			As of June 26, 2020
Weighted-average remaining lease term (in years)		3.3			3.3
Weighted-average discount rate		3.7	%		3.7	%

The following table presents supplemental disclosure for the unaudited condensed consolidated statement of cash flows related to operating and finance leases for the three months ended September 25, 2020 and September 27, 2019:


	Three Months Ended
(amount in thousands)	September 25, 2020		September 27, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	594	$	458
Financing cash flows from finance leases	$	100	$	109
ROU assets obtained in exchange for lease liabilities	$	7,228	$	6,185

Intangibles

3 Months Ended

Sep. 25, 2020

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 September 25, 2020
Software	$	8,486	$	(5,826	)	$	—		$	2,660
Customer relationships		4,373		(2,825	)		(61	)		1,487
Backlog		119		(119	)		—			—

Total intangibles	$	12,978	$	(8,770	)	$	(61	)	$	4,147


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net
As o f June 26, 2020
Software	$	8,317	$	(5,577	)	$	—		$	2,740
Customer relationships		4,373		(2,691	)		(110	)		1,572
Backlog		119		(119	)		—			—

Total intangibles	$	12,809	$	(8,387	)	$	(110	)	$	4,312

The Company recorded amortization expense relating to intangibles of $0.2 million and $0.3 million for the three months ended September 25, 2020 and September 27, 2019, respectively.

The weighted-average remaining life of customer relationships was:


(years)	As of September 25, 2020		As of June 26, 2020
Customer relationships		4.4		4.6

Based on the carrying amount of intangibles as

September 25, 2020, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows:


(amount in thousands)
2021 (remaining nine months)	$	1,030
2022		1,129
2023		873
2024		642
2025		354
Thereafter		119

Total	$	4,147

Borrowings

3 Months Ended

Sep. 25, 2020

Borrowings

12 .	Borrowings

The Company’s total borrowings, including current and

non-current

portions of long-term borrowings, consisted of the following:


(amount in thousands)
Rate	Conditions		Maturity		As of September 25, 2020			As of June 26, 2020

Long-term borrowings, current portion, net:

Long-term borrowings, current portion					$	12,188		$	12,188
Less: Unamortized debt issuance costs – current portion						(32	)		(32	)

Long-term borrowings, current portion, net					$	12,156			12,156


Long-term borrowings, non-current portion, net:
Term loan borrowings:
3-month LIBOR +1.35% per annum (1)		Repayable in quarterly installments		June 2024	$	48,750		$	51,797

Less: Current portion						(12,188	)		(12,188	)
Less: Unamortized debt issuance costs – non-current portion						(87	)		(95	)

Long-term borrowings, non-current portion, net					$	36,475		$	39,514

(1)	We have entered into interest rate swaps that effectively fix a series of our future interest payments on our term loans. Refer to Note 6.

The movements of long-term borrowings for the three months ended September 25, 2020 and September 27, 2019 were as follows:


	Three Months Ended
(amount in thousands)	September 25, 2020			September 27, 2019

Opening balance	$	51,797		$	60,938
Borrowings during the period		—			60,938
Repayments during the period		(3,047	)		(60,938	)

Closing balance	$	48,750		$	60,938

September 25, 2020, future maturities of long-term borrowings during each fiscal year were as follows:


(amount in thousands)
2021 (remaining nine mo n ths)	$	9,140
2022		12,188
2023		15,234
202 4		12,188

Total	$	48,750

Credit facility agreements:

Bank of Ayudhya Public Company Limited

On August 20, 2019, Fabrinet Thailand (the “Borrower”) and Bank of Ayudhya Public Company Limited (the “Bank”) entered into a Credit Facility Agreement (the “Credit Facility Agreement”). The Credit Facility Agreement provides for a facility of 110.0 million Thai baht (approximately $3.6 million based on the applicable exchange rate as

September 27, 2019) and $160.9 million which may be used for, among other things, an overdraft facility, short-term loans against promissory notes, a letter of guarantee facility, a term loan facility and foreign exchange facilities. The Bank may approve any request for extension of credit under the Credit Facility Agreement and may increase or decrease any facility amount in its sole discretion.

Under the Credit Facility Agreement, on August 20, 2019, the Borrower and the Bank entered into a Term Loan Agreement pursuant to which the Borrower drew down on September 3, 2019 a term loan in the original principal amount of $60.9 million. The proceeds from the term loan, together with cash on hand, were used to repay outstanding obligations under the

Company’s previous syndicated senior credit facility

agreement.

The term loan accrues interest at

3-month LIBOR plus 1.35%

and is repayable in quarterly installments of $

3.0

million, commencing on September 30, 2019. The term loan will mature on

June 30, 2024

. The Borrower m

y prepay the term loan in whole or in part at any time without premium or penalty. Any portion of the term loan repaid or prepaid may not be

re-borrowed.

During the three months ended September 25, 2020, the Company recorded $

0.2

million of interest expense in connection with this term loan.

Any borrowings under the Credit Facility Agreement, including those borrowings under the Term Loan Agreement, are guaranteed by Fabrinet and secured by land and buildings owned by the Borrower in the Pathumthani and Chonburi Provinces in Thailand.

The Term Loan Agreement contains affirmative and negative covenants applicable to the Borrower, including delivery of financial statements and other information, compliance with laws, maintenance of insurance, restrictions on granting security interests or liens on its assets, disposing of its assets, incurring indebtedness and making acquisitions. While the term loan is outstanding, the Borrower is required to maintain a loan to value of the mortgaged real property ratio of not greater than 65%. If the loan to value ratio is not maintained, the Borrower will be required to provide additional security or prepay a portion of the term loan in order to restore the required ratio. The Company is also required to maintain a debt service coverage ratio of at least 1.25 times and a debt to equity ratio less than or equal to 1.0 times. In the case of any payment of a dividend by the Company, its debt service coverage ratio must be at least 1.50 times. As of September 25, 2020, the Company was in compliance with all of its financial covenants under the Term Loan Agreement.

The events of default in the Term Loan Agreement include failure to pay amounts due under the Term Loan Agreement or the related finance documents when due, failure to comply with the covenants under the Term Loan Agreement or the related finance documents, cross default with other indebtedness of the Borrower, events of bankruptcy or insolvency in respect of the Borrower, and the occurrence of any event or series of events that in the opinion of the Bank has or is reasonably likely to have a material adverse effect.

At September 25, 2020, there was $48.8 million outstanding under the term loan.

Bank of America, N.A.

On May 22, 2014, the Company and

consortium of banks, entered into a syndicated senior credit facility agreement led by Bank of America (the “Bank of America Facility Agreement”). The Bank of America Facility Agreement provided for a $200.0 million credit line, comprised of a $150.0 million revolving loan facility and a $50.0 million delayed draw term loan facility.

From time to time,

the Company

amended the Bank of America Facility Agreement, before repaying all outstanding amounts under the agreement and terminating such agreement on September 10, 2019.

The most recent amendment on June 4, 2018 (i) reduced the revolving commitments thereunder from $150.0 million to $25.0 million, (ii) refinanced the outstanding amounts under the revolving loan and term loan facilities into a $65.0 million term loan which was to be repaid in quarterly installments through the maturity date of June 4, 2023; and (iii) reduced the interest rate margins and commitment fees. The term loan bore interest, at the Company’s option, at a rate per annum equal to a LIBOR rate plus a spread of 1.50% to 2.25%, or a base rate plus a spread of 0.50% to 1.25%. During the three months ended September 27, 2019

the Company recorded $0.5 million of interest expense in connection with this term loan.

On September 10, 2019, the Company fully repaid $61.0 million in principal, accrued interest and other fees under the agreement. The early termination of this agreement did not trigger any early termination fees.

Income taxes

3 Months Ended

Sep. 25, 2020

Income taxes

13 .	Income taxes

As of September

25, 2020 and June 26, 2020, the liability for uncertain tax positions including accrued interest and penalties was $1.5 million. The Company expects the estimated amount of liability associated with its uncertain tax positions to decrease within the next 12 months due to the lapse of the applicable statute of limitations in foreign tax jurisdictions.

The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2015 to 2019 remain open to examination by U.S. federal and state, and foreign tax authorities. The Company’s income tax is recognized based on the best estimate of the expected annual effective tax rate for the full financial year of each entity in the Company, adjusted for discrete items arising in that quarter. If the Company’s estimated annual effective tax rate changes, the Company makes a cumulative adjustment in that quarter.

The effective tax rate for the Company for the three months ended September 25, 2020 and September 27, 2019 was 4.5% and 5.0%, respectively, of net income. The decrease was primarily due to the fact that the Company had lower income subject to tax during the first quarter of fiscal year 2021 as compared to the same period in fiscal year 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Share-based compensation

3 Months Ended

Sep. 25, 2020

Share-based compensation

14 .	Share-based compensation

Share-based compensation

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

The effect of recording share-based compensation expense for the three months ended September 25, 2020 and September 27, 2019 was as follows:


	Three Months Ended
(amount in thousands)	September 25, 2020		September 27, 2019

Share-based compensation expense by type of award:
Restricted share units	$	5,249	$	4,398
Performance share units		778		1,597

Total share-based compensation expense		6,027		5,995
Tax effect on share-based compensation expense		—		—

Net effect on share-based compensation expense	$	6,027	$	5,995

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


	Three Months Ended
(amount in thousands)	September 25, 2020		September 27, 2019

Cost of revenue	$	1,825	$	1,720
Selling, general and administrative expense		4,202		4,275

Total share-based compensation expense	$	6,027	$	5,995

The Company did not capitalize any share-based compensation expense as part of any asset costs during the three months ended September 25, 2020 and September 27, 2019.

Share-based award activity

On December 12, 2019, the Company’s shareholders approved Fabrinet’s 2020 Equity Incentive Plan (the “2020 Plan”). Upon the approval of the 2020 Plan, Fabrinet’s Amended and Restated 2010 Performance Incentive Plan (the “2010 Plan”) was simultaneously terminated. The 2020 Plan provides for the grant of equity awards thereunder with respect to (i) 1,700,000 ordinary shares, plus (ii) up to 1,300,000 ordinary shares that, as

immediately prior

to the termination of the 2010 Plan, had been reserved but not issued pursuant to any awards granted under the 2010 Plan and are not subject to any awards thereunder. Upon termination of the 2010 Plan, 1,281,619 ordinary shares were reserved for issuance under the 2020 Plan pursuant to clause (ii) of the preceding sentence.

As of September

25, 2020, there were 222,502 restricted share units outstanding,

182,844

performance share units outstanding and

2,572,597

ordinary shares available for future grant under the

2020

Plan.

As of September

25, 2020, there were 459,110 restricted share units outstanding and 238,474

performance

share units outstanding under the 2010 Plan. No ordinary shares are available for future grant under the 2010 Plan.

On November 2, 2017, the Company adopted the 2017 Inducem

nt Equity Incentive Plan (the “2017 Inducement Plan”) with a reserve of 160,000 ordinary shares authorized for future issuance solely for the granting of inducement share options and equity awards to new employees. The 2017 Inducement Plan was adopted without shareholder approval in reliance on the “employment inducement exemption” provided under the New York Stock Exchange Listed Company Manual.

As of September

25, 2020, there were 12,164 restricted share units outstanding

and

111,347 ordinary shares available for future grant under the 2017 Inducement Plan.

The

2020 Plan,

2010 Plan

and

2017 Inducement Plan are collectively referred to as the “Equity Incentive Plans.”

Restricted share units and performance share units

Restricted share units and performance share units have been granted under the Equity Incentive Plans.

Restricted share units granted to employees generally vest in equal installments over three or four years on each anniversary of the vesting commencement date. Restricted share units granted to

non-employee

directors generally cliff vest 100% on the first of January, approximately one year from the grant date, provided the director continues to serve through such date.

Performance share units granted to executives will vest, if at all, at the end of a

two-year

performance period based on the Company’s achievement of

pre-defined

performance criteria, which consist of revenue and

non-GAAP

operating margin targets. The actual number of performance share units that may vest at the end of the performance period ranges from 0% to 100% of the award grant.

The following table summarizes restricted share unit activity under the Equity Incentive Plans:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share

Balance as of June 26, 2020		797,757		$	46.88
Granted		171,946		$	70.05
Issued		(268,728	)	$	43.84
Forfeited		(7,199	)	$	50.40

Balance as of September 25, 2020		693,776		$	53.76


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share

Balance as of June 28, 2019		800,751		$	42.48
Granted		292,321		$	48.39
Issued		(240,595	)	$	39.62
Forfeited		(21,577	)	$	42.00

Balance as of September 27, 2019		830,900		$	45.40

The following table summarizes performance share unit activity under the Equity Incentive Plans:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share

Balance as of June 26, 2020		440,140		$	48.37
Granted		179,008		$	70.05
Issued		(82,185	)	$	48.02
Forfeited		(115,645	)	$	48.02

Balance as of September 25, 2020		421,318		$	57.74


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share

Balance as of June 28, 2019		548,500		$	40.97
Granted		238,474		$	48.39
Issued		—			—
Forfeited		(350,670	)	$	36.99

Balance as of September 27, 2019		436,304		$	48.22

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

As of September

25, 2020, there was $18.7 million and $14.6 million of unrecognized share-based compensation expense related to restricted share units and performance share units, respectively, under the Equity Incentive Plans that is expected to be recorded over a weighted-average period of 2.7 years and 1.6 years, respectively.

For the three months ended September 25, 2020 and September 27, 2019, the Company withheld an aggregate of 142,221 shares and 82,220 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date to settle

employee obligations

for the applicable income and other employment taxes. For the three months ended September 25, 2020 and September 27, 2019, the Company then remitted cash of $9.9 million and $4.1 million, respectively, to the appropriate taxing authorities, and presented it as a financing activity within the unaudited condensed consolidated statements of cash flows. The payment was recorded as a reduction of additional

paid-in

capital.

Shareholders' equity

3 Months Ended

Sep. 25, 2020

Shareholders' equity

15 .	Shareholders’ equity

Share capital

Fabrinet’s authorized share capital is 500,000,000 ordinary shares, par value of $0.01 per ordinary share, and 5,000,000 preferred shares, par value of $0.01 per preferred share.

For the three months ended September 25, 2020, Fabrinet issued 208,692 ordinary shares upon the vesting of restricted share units, net of shares withheld.

For the three months ended September 27, 2019, Fabrinet issued 158,375 ordinary shares upon the vesting of restricted share units, net of shares withheld.

All such issued shares are fully paid.

Treasury shares

In August 2017

, the Company’s board of directors approved a share repurchase

program

to permit the Company to repurchase up to $30.0 million worth of its issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations. In February 2018, May 2019 and August 2020, the Company’s board of directors approved an increase of $30.0 million, $50.0 million and $58.5 million, respectively, to the original share repurchase authorization, bringing the aggregate authorization to $168.5 million. During the three months ended September 25, 2020, no shares were repurchased under the program.

As of September

25, 2020, the Company had a remaining authorization to purchase up to an additional $100.0 million worth of its ordinary shares under the share repurchase program. Shares repurchased under the share repurchase

program are held as treasury shares.

Accumulated other comprehensive income (loss)

3 Months Ended

Sep. 25, 2020

Accumulated other comprehensive income (loss)

16.	Accumulated other comprehensive income (loss)

The changes in AOCI for the three months ended September 25, 2020 and September 27, 2019 were as follows:


(amount in thousands)	Unrealized net (Losses)/Gains on Available-for-sale Securities			Unrealized net (Losses)/Gains on Derivative Instruments			Retirement benefit plan - Prior service cost			Foreign Currency Translation Adjustment			Total

Balance as of June 26, 2020	$	1,490		$	602			(2,009	)	$	(1,230	)	$	(1,147	)
Other comprehensive income before reclassification adjustment		(325	)		(1,983	)		—			603			(1,705	)
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income		—			(1,225	)		173			—			(1,052	)

Tax effects		—			—			—			—			—

Other comprehensive income (loss)	$	(325	)	$	(3,208	)		173		$	603		$	(2,757	)

Balance as of September 25, 2020	$	1,165		$	(2,606	)		(1,836	)	$	(627	)	$	(3,904	)


(amount in thousands)	Unrealized net (Losses)/Gains on Available-for-sale Securities			Unrealized net (Losses)/Gains on Derivative Instruments			Retirement benefit plan - Prior service cost			Foreign Currency Translation Adjustment			Total

Balance as of June 28, 2019	$	952		$	32		$	(2,537	)	$	(833	)	$	(2,386	)
Other comprehensive income before reclassification adjustment		(32	)		39			83			(369	)		(279	)
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income		67			—			—			—			67
Tax effects		—			—			—			—			—

Other comprehensive income (loss)	$	35		$	39		$	83		$	(369	)	$	(212	)

Balance as of September 27, 2019	$	987		$	71		$	(2,454	)	$	(1,202	)	$	(2,598	)

Commitments and contingencies

3 Months Ended

Sep. 25, 2020

Commitments and contingencies

17.	Commitments and contingencies

Letter of credit and Bank guarantees

As of September 25, 2020 and June 26, 2020, the Company had one outstanding standby letter of credit of 6.0 million Euros related to the Company’s support of a customer’s transfer of certain manufacturing operations from Berlin, Germany to the Company’s facilities in Thailand. As of September 25, 2020 and June 26, 2020, the standby letter of credit was backed by cash collateral of $7.4 million.

As of September 25, 2020 and June 26, 2020, there were outstanding bank guarantees given by a bank on behalf of our subsidiary in Thailand for electricity usage and other normal business expenses totaling to $1.6 million and $1.6 million, respectively, and there were other bank guarantees given by a bank on behalf of our subsidiaries in China and the U.K. to support their operations. As of September 25, 2020 and June 26, 2020, these bank guarantees were not material.

Purchase obligations

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

As of September

25, 2020, the Company had an outstanding commitment to third parties of $10.0 million.

Indemnification of directors and officers

Cayman Islands law does not limit the extent to which a company’s

memorandum

and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Fabrinet’s amended and restated memorandum and articles of association provide for indemnification of directors and officers for actions, costs, charges, losses, damages and expenses incurred in their capacities as such, except that such indemnification does not extend to any matter in respect of any fraud or dishonesty that may attach to any of them.

In accordance with Fabrinet’s form of indemnification agreement for its directors and officers, Fabrinet has agreed to indemnify its directors and officers against certain liabilities and expenses incurred by such persons in connection with claims by reason of their being such a director or officer. Fabrinet maintains a director and officer liability insurance policy that may enable it to recover a portion of any future amounts paid under the indemnification agreements.

Business segments and geographic information

3 Months Ended

Sep. 25, 2020

Business segments and geographic information

18 .	Business segments and geographic information

Operating segments are defined as

components

of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is Fabrinet’s Chief Executive Officer.

As of September

25, 2020, the Company operated and internally managed a single operating segment. Accordingly, the Company does not accumulate discrete information with respect to separate product lines and does not have separate reportable segments.

For the

Company’s

revenues by geographic region, see “Revenue by Geographic Area and End Market” in Note 3.

As of September

25, 2020 and Sep

ember 27, 2019, the Company had approximately $29.2 million and $30.8 million, respectively, of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific and Europe.

Significant customers

The Company had two customers and three customers

that each contributed to 10% or more of its total trade accounts receivable as of September 25, 2020 and June 26, 2020, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
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+ Details

Subsequent events

3 Months Ended

Sep. 25, 2020

Subsequent Event

19 .	Subsequent events

On October 1, 2020, the Company extended the payment terms of $24.3 million in funds it had advanced to a customer and accrued interest from September 30, 2020 to April 1, 2021, and reduced the interest rate effective from October 1, 2020. The extension is due to the customer’s agreement to transfer additional manufacturing operations to the Company’s facilities in Thailand beginning in November 2020. These funds will be offset by amount due to this customer for the purchases of certain inventories. (See Note 8)

The Company has also committed to purchase $26.0 million worth of inventories from the customer.

Accounting policies (Policies)

3 Months Ended

Sep. 25, 2020

Basis of presentation

The accompanying unaudited condensed consolidated financial statements for Fabrinet as

10-K

for the year ended June 26, 2020.

The balance sheet as

June 26, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The results for the three months ended September 25, 2020 may not be indicative of results for the year ending June 25, 2021 or any future periods.

Use of Estimates

COVID-19

pandemic that could result in material impacts to our unaudited condensed consolidated financial statements in future reporting periods.

Fiscal years

The Company utilizes a

52-53

week fiscal year ending on the Friday in June closest to June 30. The three months ended September 25, 2020 and September 27, 2019 each consisted of 13 weeks. Fiscal year

2021

will be comprised of 52 weeks and will end on June 25, 2021.

Reclassifications

For presentation purposes, certain prior period amounts have been reclassified to conform to the current period presentation.

non-current

portions as follows:

(i)

A derivative for which the fair value is a net liability is classified in total as a current liability.

(ii)

A derivative for which the fair value is a net asset and the current portion is an asset is classified in total as a

non-current

asset. If the current portion is a liability, it is presented as a current liability.

non-current

portion is determined by the maturity date of that derivative (e.g., a derivative that matures within one year is classified as current).

The reclassifications have been made to the consolidated balance sheet as of June 26, 2020 as shown in the following table:


	June 26, 2020
(amount in thousands)	As previously reported		Reclassification			After reclassification

Consolidated Balance Sheet
Current assets
Other current assets	$	13,915	$	593		$	14,508
Current liabilities
Accrued expenses	$	12,104	$	(3,125	)	$	8,979
Non-current liabilities
Other non-current liabilities	$	1,937	$	3,718		$	5,655

Changes in Accounting Policies

Except for the adoption of ASC 326, the Company has consistently applied the accounting policies to all periods presented in these unaudited condensed consolidated financial statements.

Adoption of New Accounting Standards

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2016-13,

available-for-sale

Short-term investments

Management determines the appropriate classification of its investments at the time of purchase and

re-evaluates

AFS debt securities are required to be individually evaluated for impairment. A security is considered impaired if the fair value of the security is less than its amortized cost basis.

Trade accounts receivable

Contract assets

Concentration of credit risk

P-1,

F1, or better.

The Company enters into derivative contracts with financial institutions with reputable credit and monitors the credit profiles of these counterparties.

New Accounting Pronouncements – not yet adopted by the Company

In December 2019, the FASB issued ASU

2019-12,

Summary of significant accounting policies (Tables)

3 Months Ended

Sep. 25, 2020

Summary of reclassifications of consolidated balance sheet and consolidated statement of cash flows

The reclassifications have been made to the consolidated balance sheet as of June 26, 2020 as shown in the following table:


	June 26, 2020
(amount in thousands)	As previously reported		Reclassification			After reclassification

Consolidated Balance Sheet
Current assets
Other current assets	$	13,915	$	593		$	14,508
Current liabilities
Accrued expenses	$	12,104	$	(3,125	)	$	8,979
Non-current liabilities
Other non-current liabilities	$	1,937	$	3,718		$	5,655

Revenues from contracts with customers (Tables)

3 Months Ended

Sep. 25, 2020

Disaggregation of Revenue by Geographical Regions

The following table presents total revenues by geographic region:


(amount in thousands, except percentages)	Three Months Ended September 25, 2020		As a % of Total Revenues

North America	$	207,402		47.5	%
Asia-Pacific		145,646		33.4
Europe		83,591		19.1

	$	436,639		100.0	%


(amount in thousands, except percentages)	Three Months Ended September 27, 2019		As a % of Total Revenues

North America	$	200,947		50.3	%
Asia-Pacific		118,423		29.7
Europe		79,926		20.0

	$	399,296		100.0	%

Revenues by End Market

The following table presents revenues by end market.


(amount in thousands, except percentages)	Three Months Ended September 25, 2020		As a % of Total Revenues

Optical communications	$	343,917		78.8	%
Lasers, sensors and other		92,722		21.2

Total	$	436,639		100.0	%


(amount in thousands, except percentages)	Three Months Ended September 27, 2019		As a % of Total Revenues

Optical communications	$	302,379		75.7	%
Lasers, sensors and other		96,917		24.3

Total	$	399,296		100.0	%

Schedule of Activity in the Company's Contract Assets

The following tables summarize the activity in the Company’s contract assets and contract liabilities during the three months ended September 25, 2020:


(amount in thousands)	Contract Assets
Beginning balance, June 26, 2020	$	13,256
Revenue recognized		17,444
Amounts collected or invoiced		(18,943	)

Ending balance, September 25, 2020	$	11,757


(amount in thousands)	Contract Liabilities
Beginning balance, June 26, 2020	$	1,556
Additions advance payment received during the period		4,308
Revenue recognized		(4,898	)

Ending balance, September 25, 2020	$	966

Earnings per ordinary share (Tables)

3 Months Ended

Sep. 25, 2020

Earnings Per Ordinary Share

Earnings per ordinary share was calculated as follows:


	Three Months Ended
(amount in thousands except per share amounts)	September 25, 2020		September 27, 2019

Net income attributable to shareholders	$	33,051	$	25,957

Weighted-average number of ordinary shares outstanding (thousands of shares)		36,818		36,913
Incremental shares arising from the assumed vesting of restricted share units and performance share units (thousands of shares)		565		616

Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		37,383		37,529


Basic earnings per ordinary share	$	0.90	$	0.70
Diluted earnings per ordinary share	$	0.88	$	0.69
Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1)		61		50

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

Cash, cash equivalents and short-term investments (Tables)

3 Months Ended

Sep. 25, 2020

Cash, Cash Equivalents, and Short-Term Investments

The Company’s cash, cash equivalents, and short-term investments are as follows:


					Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain/ (Loss)		Cash and Cash Equivalents		Marketable Securities		Other Investments

As of September 25, 2020
Cash	$	175,550	$	—	$	175,550	$	—	$	—
Cash equivalents		13,651		—		13,651		—		—
Liquidity funds		41,151		—		—		—		41,151
Certificates of deposit and time deposits		22,300		—		—		—		22,300
Corporate debt securities		192,509		739		—		193,248		—
U.S. agency and U.S. treasury securities		50,113		426		—		50,539		—
Total	$	495,274	$	1,165	$	189,201	$	243,787	$	63,451

As of June 26, 2020
Cash	$	218,117	$	—	$	218,117	$	—	$	—
Cash equivalents		7,313		—		7,313		—		—
Liquidity funds		41,051		—		—		—		41,051
Certificates of deposit and time deposits		11,800		—		—		—		11,800
Corporate debt securities		159,220		948		—		160,168		—
U.S. agency and U.S. treasury securities		49,130		544		—		49,674		—
Total	$	486,631	$	1,492	$	225,430	$	209,842	$	52,851

Available-for-Sale Securities Based on Stated Effective Maturities

The following table summarizes the cost and estimated fair value of short-term investments classified as

available-for-sale

securities based on stated effective maturities as

September 25, 2020:


	September 25, 2020				June 26, 2020
(amount in thousands)	Carrying Cost		Fair Value		Carrying Cost		Fair Value
Due within one year	$	104,723	$	104,756	$	76,127	$	76,196
Due between one to five years		137,899		139,031		132,223		133,646

Total	$	242,622	$	243,787	$	208,350	$	209,842

Fair value of financial instruments (Tables)

3 Months Ended

Sep. 25, 2020

Financial Instruments Measured at Fair Value on Recurring Basis

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


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of September 25, 202 0
Assets
Cash equivalents	$	—	$	13,651		$	—	$	13,651
Liquidity funds		—		41,151			—		41,151
Certificates of deposit and time deposits		—		22,300			—		22,300
Corporate debt securities		—		193,248			—		193,248
U.S. agency and U.S. treasury securities		—		50,539			—		50,539
Derivative assets		—		694	(1)		—		694

Total	$	—	$	321,583		$	—	$	321,583

Liabilities
Derivative liabilities – current portion	$	—	$	2,426		$	—	$	2,426
Derivative liabilities – non-current portion		—		3,305			—		3,305

Total	$	—	$	5,731	(2)	$	—	$	5,731


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 26, 202 0
Assets
Cash equivalents	$	—	$	7,313		$	—	$	7,313
Liquidity funds		—		41,051			—		41,051
Certificates of deposit and time deposits		—		11,800			—		11,800
Corporate debt securities		—		160,168			—		160,168
U.S. agency and U.S. treasury securities		—		49,674			—		49,674
Derivative assets		—		2,823	(3)		—		2,823

Total	$	—	$	272,829		$	—	$	272,829

Liabilities
Derivative liabilities – current portion	$	—	$	2,148		$	—	$	2,148
Derivative liabilities – non-current portion		—		3,718			—		3,718

Total	$	—	$	5,866	(4)	$	—	$	5,866

(1)	Foreign currency forward contracts with a notional amount of $130.0 million and Canadian dollars of 0.8 million.

(2)	Two interest rate swap agreements with an aggregate notional amount of $125.1 million.

(3)	Foreign currency forward contracts with a notional amount of $125.0 million and Canadian dollars of 0.6 million, and option contract with a notional amount of $1.0 million.

(4)	Interest rate swap agreements with an aggregate notional amount of $125.1 million.

Schedule Impacts of Derivative Gain (Loss) of Cash Flow Hedges


			Three Months Ended
(amount in thousands)	Financial statements line item		September 25, 2020			September 27, 2019
Derivatives gain (loss) recognized in other comprehensive income:
Foreign currency forward contracts		Other comprehensive income	$	(2,340	)	$	—
Interest rate swaps		Other comprehensive income		357			39

Total derivatives gain (loss) recognized in other comprehensive income			$	(1,983	)	$	39

Derivatives loss ( gain ) reclassified from accumulated other comprehensive income into earnings:
Foreign currency forward contracts		Cost of revenues	$	(2,057	)	$	—
Foreign currency forward contracts		SG&A		(87	)		—
Foreign currency forward contracts		Foreign exchange loss, net		1,278			—
Interest rate swaps		Interest expense		(359	)		—

Total derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings			$	(1,225	)	$	—

Change in net unrealized gain (loss) on derivatives instruments			$	(3,208	)	$	—

Schedule of Derivative Financial Instruments

The following table provides the fair values of the Company’s derivative financial instruments for the periods presented:


	September 25, 2020					June 26, 2020
(amount in thousands)	Derivative Assets		Derivative Liabilities			Derivative Assets		Derivative Liabilities
Derivatives not designated as hedging instruments
Foreign currency forward and option contracts	$	447	$	(134	)	$	9	$	(611	)
Interest rate swaps		—		—			—		—

Derivatives designated as hedging instruments
Foreign currency forward contracts		247		(781	)		2,814		(83	)
Interest rate swaps		—		(4,816	)		—		(5,172	)

Derivatives, gross balances		694		(5,731	)		2,823		(5,866	)

- 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

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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+ Details

Inventories (Tables)

3 Months Ended

Sep. 25, 2020

Inventories


(amount in thousands)	As of September 25, 2020		As of June 26, 2020

Raw materials	$	153,511	$	141,522
Work in progress		149,441		136,344
Finished goods		21,619		17,950
Goods in transit		14,858		13,970

Inventories	$	339,429	$	309,786

Leases (Tables)

3 Months Ended

Sep. 25, 2020

Schedule of operating lease liabilities

Septe

ber 25, 2020, the m

turities of the Company’s operating lease liabilities w

re as follows:


(amount in thousands)	As of September 25, 2020
2021	$	1,786
2022		2,381
2023		2,265
2024		990
2025		19

Total undiscounted lease payments		7,441
Less imputed interest		(437	)

Total present value of lease liabilities	$	7,004	(1)

(1)	Included current portion of operating lease liabilities for the period ended September 25, 2020 .

Summary of additional information related to operating and finance lease

The following summarizes additional information related to the Company’s operating leases:


	As of September 25, 2020			As of June 26, 2020
Weighted-average remaining lease term (in years)		3.3			3.3
Weighted-average discount rate		3.7	%		3.7	%

Schedule of supplemental cash flow information related to operating lease


	Three Months Ended
(amount in thousands)	September 25, 2020		September 27, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	594	$	458
Financing cash flows from finance leases	$	100	$	109
ROU assets obtained in exchange for lease liabilities	$	7,228	$	6,185

Intangibles (Tables)

3 Months Ended

Sep. 25, 2020

Intangibles

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


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net
As of September 25, 2020
Software	$	8,486	$	(5,826	)	$	—		$	2,660
Customer relationships		4,373		(2,825	)		(61	)		1,487
Backlog		119		(119	)		—			—

Total intangibles	$	12,978	$	(8,770	)	$	(61	)	$	4,147


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Foreign Currency Translation Adjustment			Net
As o f June 26, 2020
Software	$	8,317	$	(5,577	)	$	—		$	2,740
Customer relationships		4,373		(2,691	)		(110	)		1,572
Backlog		119		(119	)		—			—

Total intangibles	$	12,809	$	(8,387	)	$	(110	)	$	4,312

Weighted-Average Remaining Life of Intangible Assets

The weighted-average remaining life of customer relationships was:


(years)	As of September 25, 2020		As of June 26, 2020
Customer relationships		4.4		4.6

Estimated Future Amortization of intangibles

Based on the carrying amount of intangibles as

September 25, 2020, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows:


(amount in thousands)
2021 (remaining nine months)	$	1,030
2022		1,129
2023		873
2024		642
2025		354
Thereafter		119

Total	$	4,147

Borrowings (Tables)

3 Months Ended

Sep. 25, 2020

Total Borrowings, Including Revolving and Long-Term Borrowings

The Company’s total borrowings, including current and

non-current

portions of long-term borrowings, consisted of the following:


(amount in thousands)
Rate	Conditions		Maturity		As of September 25, 2020			As of June 26, 2020

Long-term borrowings, current portion, net:

Long-term borrowings, current portion					$	12,188		$	12,188
Less: Unamortized debt issuance costs – current portion						(32	)		(32	)

Long-term borrowings, current portion, net					$	12,156			12,156


Long-term borrowings, non-current portion, net:
Term loan borrowings:
3-month LIBOR +1.35% per annum (1)		Repayable in quarterly installments		June 2024	$	48,750		$	51,797

Less: Current portion						(12,188	)		(12,188	)
Less: Unamortized debt issuance costs – non-current portion						(87	)		(95	)

Long-term borrowings, non-current portion, net					$	36,475		$	39,514

(1)	We have entered into interest rate swaps that effectively fix a series of our future interest payments on our term loans. Refer to Note 6.

Movements of Long-Term Loans

The movements of long-term borrowings for the three months ended September 25, 2020 and September 27, 2019 were as follows:


	Three Months Ended
(amount in thousands)	September 25, 2020			September 27, 2019

Opening balance	$	51,797		$	60,938
Borrowings during the period		—			60,938
Repayments during the period		(3,047	)		(60,938	)

Closing balance	$	48,750		$	60,938

Future Maturities of Long-Term Debt

September 25, 2020, future maturities of long-term borrowings during each fiscal year were as follows:


(amount in thousands)
2021 (remaining nine mo n ths)	$	9,140
2022		12,188
2023		15,234
202 4		12,188

Total	$	48,750

- 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.

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+ Details

Share-based compensation (Tables)

3 Months Ended

Sep. 25, 2020

Effect of Recording Share-Based Compensation Expense

The effect of recording share-based compensation expense for the three months ended September 25, 2020 and September 27, 2019 was as follows:


	Three Months Ended
(amount in thousands)	September 25, 2020		September 27, 2019

Share-based compensation expense by type of award:
Restricted share units	$	5,249	$	4,398
Performance share units		778		1,597

Total share-based compensation expense		6,027		5,995
Tax effect on share-based compensation expense		—		—

Net effect on share-based compensation expense	$	6,027	$	5,995

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

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


	Three Months Ended
(amount in thousands)	September 25, 2020		September 27, 2019

Cost of revenue	$	1,825	$	1,720
Selling, general and administrative expense		4,202		4,275

Total share-based compensation expense	$	6,027	$	5,995

Restricted Share Unit Activity

The following table summarizes restricted share unit activity under the Equity Incentive Plans:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share

Balance as of June 26, 2020		797,757		$	46.88
Granted		171,946		$	70.05
Issued		(268,728	)	$	43.84
Forfeited		(7,199	)	$	50.40

Balance as of September 25, 2020		693,776		$	53.76


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share

Balance as of June 28, 2019		800,751		$	42.48
Granted		292,321		$	48.39
Issued		(240,595	)	$	39.62
Forfeited		(21,577	)	$	42.00

Balance as of September 27, 2019		830,900		$	45.40

Performance Share Unit Activity

The following table summarizes performance share unit activity under the Equity Incentive Plans:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share

Balance as of June 26, 2020		440,140		$	48.37
Granted		179,008		$	70.05
Issued		(82,185	)	$	48.02
Forfeited		(115,645	)	$	48.02

Balance as of September 25, 2020		421,318		$	57.74


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share

Balance as of June 28, 2019		548,500		$	40.97
Granted		238,474		$	48.39
Issued		—			—
Forfeited		(350,670	)	$	36.99

Balance as of September 27, 2019		436,304		$	48.22

Accumulated other comprehensive income (loss) (Tables)

3 Months Ended

Sep. 25, 2020

Changes in AOCI, Net of Tax

The changes in AOCI for the three months ended September 25, 2020 and September 27, 2019 were as follows:


(amount in thousands)	Unrealized net (Losses)/Gains on Available-for-sale Securities			Unrealized net (Losses)/Gains on Derivative Instruments			Retirement benefit plan - Prior service cost			Foreign Currency Translation Adjustment			Total

Balance as of June 26, 2020	$	1,490		$	602			(2,009	)	$	(1,230	)	$	(1,147	)
Other comprehensive income before reclassification adjustment		(325	)		(1,983	)		—			603			(1,705	)
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income		—			(1,225	)		173			—			(1,052	)

Tax effects		—			—			—			—			—

Other comprehensive income (loss)	$	(325	)	$	(3,208	)		173		$	603		$	(2,757	)

Balance as of September 25, 2020	$	1,165		$	(2,606	)		(1,836	)	$	(627	)	$	(3,904	)


(amount in thousands)	Unrealized net (Losses)/Gains on Available-for-sale Securities			Unrealized net (Losses)/Gains on Derivative Instruments			Retirement benefit plan - Prior service cost			Foreign Currency Translation Adjustment			Total

Balance as of June 28, 2019	$	952		$	32		$	(2,537	)	$	(833	)	$	(2,386	)
Other comprehensive income before reclassification adjustment		(32	)		39			83			(369	)		(279	)
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income		67			—			—			—			67
Tax effects		—			—			—			—			—

Other comprehensive income (loss)	$	35		$	39		$	83		$	(369	)	$	(212	)

Balance as of September 27, 2019	$	987		$	71		$	(2,454	)	$	(1,202	)	$	(2,598	)

Summary of Reclassifications of Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020
Assets, Current [Abstract]
Other Assets, Current	$ 7,827	$ 14,508
Liabilities, Current [Abstract]
Accrued Liabilities, Current	10,077	8,979
Liabilities, Noncurrent [Abstract]
Other Liabilities, Noncurrent	$ 5,337	5,655
Previously Reported [Member]
Assets, Current [Abstract]
Other Assets, Current		13,915
Liabilities, Current [Abstract]
Accrued Liabilities, Current		12,104
Liabilities, Noncurrent [Abstract]
Other Liabilities, Noncurrent		1,937
Restatement Adjustment [Member]
Assets, Current [Abstract]
Other Assets, Current		593
Liabilities, Current [Abstract]
Accrued Liabilities, Current		(3,125)
Liabilities, Noncurrent [Abstract]
Other Liabilities, Noncurrent		$ 3,718

Accounting policies - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 27, 2020	Jun. 26, 2020	Sep. 27, 2019	Jun. 28, 2019
Accounting Policies [Line Items]
Cumulative adjustment on retained earnings	$ 1,000,703		$ 974,409	$ 890,695	$ 863,099
Retained Earnings
Accounting Policies [Line Items]
Cumulative adjustment on retained earnings	$ 901,006		868,062	$ 780,540	$ 754,583
Cumulative Effect Period of Adoption Adjustment [Member]
Accounting Policies [Line Items]
Cumulative adjustment on retained earnings			(107)
Cumulative Effect Period of Adoption Adjustment [Member] \| Retained Earnings
Accounting Policies [Line Items]
Cumulative adjustment on retained earnings		$ 100	$ (107)

- Definition

+ References + Details

Schedule of Activity in the Company's Contract Assets and Contract Liabilities (Detail) $ in Thousands	3 Months Ended
	Sep. 25, 2020 USD ($)
Contract Assets
Beginning balance, June 26, 2020	$ 13,256
Revenue recognized	17,444
Amounts collected or invoiced	(18,943)
Ending balance, September 25, 2020	11,757
Contract Liabilities
Beginning balance, June 26, 2020	1,556
Additions advance payment received during the period	4,308
Revenue recognized	(4,898)
Ending balance, September 25, 2020	$ 966

Disaggregation of Revenue by Geographical Regions (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Revenues	$ 436,639	$ 399,296
Revenues, percentage	100.00%	100.00%
North America
Revenues	$ 207,402	$ 200,947
Revenues, percentage	47.50%	50.30%
Asia-Pacific
Revenues	$ 145,646	$ 118,423
Revenues, percentage	33.40%	29.70%
Europe
Revenues	$ 83,591	$ 79,926
Revenues, percentage	19.10%	20.00%

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

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+ Details

Revenues - Revenues by End Market (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Revenue from External Customer [Line Items]
Revenues	$ 436,639	$ 399,296
Revenues, percentage	100.00%	100.00%
Optical communications
Revenue from External Customer [Line Items]
Revenues	$ 343,917	$ 302,379
Revenues, percentage	78.80%	75.70%
Lasers, sensors, and other
Revenue from External Customer [Line Items]
Revenues	$ 92,722	$ 96,917
Revenues, percentage	21.20%	24.30%

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

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

3 Months Ended

Sep. 25, 2020

Sep. 27, 2019

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

Net income attributable to shareholders

$ 33,051

$ 25,957

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

36,818

36,913

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

565

616

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

37,383

37,529

Basic earnings per ordinary share

$ 0.90

$ 0.70

Diluted earnings per ordinary share

$ 0.88

$ 0.69

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

^[1]

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

- Definition

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

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- Definition

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

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-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1337-109256

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

- Definition

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

+ References

+ Details

Earnings Per Ordinary Share - Additional Information (Detail)	3 Months Ended
	Sep. 25, 2020 shares
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	0

Cash, cash equivalents and short-term investments (Detail) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020	Sep. 27, 2019
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents and Marketable securities, Carrying Cost	$ 495,274	$ 486,631
Marketable securities, Unrealized Gain/(Loss)	1,165	1,492
Cash and cash equivalents	189,201	225,430	$ 168,535
Marketable securities	243,787	209,842
Other Investments	63,451	52,851
Certificates of deposit and time deposits
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	22,300	11,800
Other Investments	22,300	11,800
Cash
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	175,550	218,117
Cash and cash equivalents	175,550	218,117
Cash Equivalents
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	13,651	7,313
Cash and cash equivalents	13,651	7,313
Liquidity funds
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	41,151	41,051
Other Investments	41,151	41,051
Corporate debt securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	192,509	159,220
Marketable securities, Unrealized Gain/(Loss)	739	948
Marketable securities	193,248	160,168
U.S. agency and U.S. Treasury securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	50,113	49,130
Marketable securities, Unrealized Gain/(Loss)	426	544
Marketable securities	$ 50,539	$ 49,674

Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020
Investments Classified by Contractual Maturity Date [Line Items]
Total	$ 243,787	$ 209,842
Fair Value
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	104,756	76,196
Due between one to five years	139,031	133,646
Total	243,787	209,842
Carrying Cost
Investments Classified by Contractual Maturity Date [Line Items]
Due within one year	104,723	76,127
Due between one to five years	137,899	132,223
Total	$ 242,622	$ 208,350

Cash, cash equivalents and short-term investments - Additional Information (Detail)	3 Months Ended
	Sep. 25, 2020
Minimum
Cash, cash equivalents and marketable securities [Line Items]
Maturities period of marketable securities	3 months
Maximum
Cash, cash equivalents and marketable securities [Line Items]
Maturities period of marketable securities	3 years

Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($)
$ in Thousands

Sep. 25, 2020

Jun. 26, 2020

Assets

Derivative assets

$ 694

$ 2,823

Total

321,583

272,829

Liabilities

Derivative liabilities – current portion

2,426

2,148

Derivative liabilities – non-current portion

3,305

3,718

Total

5,731

5,866

Certificates of deposit and time deposits

Assets

Marketable securities

22,300

11,800

Cash Equivalents

Assets

Marketable securities

13,651

7,313

Corporate debt securities

Assets

Marketable securities

193,248

160,168

U.S. agency and U.S. Treasury securities

Assets

Marketable securities

50,539

49,674

Liquidity funds

Assets

Marketable securities

41,151

41,051

Significant Other Observable Inputs (Level 2)

Assets

Derivative assets

694

^[1]

2,823

^[2]

Total

321,583

272,829

Liabilities

Derivative liabilities – current portion

2,426

^[3]

2,148

^[4]

Derivative liabilities – non-current portion

3,305

3,718

Total

5,731

5,866

Significant Other Observable Inputs (Level 2) | Certificates of deposit and time deposits

Assets

Marketable securities

22,300

11,800

Significant Other Observable Inputs (Level 2) | Cash Equivalents

Assets

Marketable securities

13,651

7,313

Significant Other Observable Inputs (Level 2) | Corporate debt securities

Assets

Marketable securities

193,248

160,168

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

Assets

Marketable securities

50,539

49,674

Significant Other Observable Inputs (Level 2) | Liquidity funds

Assets

Marketable securities

$ 41,151

$ 41,051

[1]	Foreign currency forward contracts with a notional amount of $130.0 million and Canadian dollars of $0.8 million.
[2]	Foreign currency forward contracts with a notional amount of $125.0 million and Canadian dollars of 0.6 million, and option contract with a notional amount of $1.0 million.
[3]	Two interest rate swap agreements with an aggregate notional amount of $125.1 million.
[4]	Interest rate swap agreements with an aggregate notional amount of $125.1 million.

Fair Value on Recurring Basis (Parenthetical) (Detail) $ in Millions, $ in Millions	Sep. 25, 2020 USD ($)	Sep. 25, 2020 CAD ($)	Jun. 26, 2020 USD ($)	Jun. 26, 2020 CAD ($)
Foreign currency forward contracts
Fair Value Measurements at Reporting Date Using
Derivative assets, notional amount	$ 130.0	$ 0.8	$ 125.0	$ 0.6
Foreign currency option contracts
Fair Value Measurements at Reporting Date Using
Derivative assets, notional amount			1.0
Interest rate swap \| Fair Value, Measurements, Recurring
Fair Value Measurements at Reporting Date Using
Derivative liabilities, notional amount	$ 125.1		$ 125.1

Fair Value - Additional Information (Detail) $ in Thousands, $ in Millions		3 Months Ended		12 Months Ended
	Sep. 03, 2019	Sep. 25, 2020 USD ($) Contract	Sep. 27, 2019 USD ($) Contract	Jun. 26, 2020 USD ($) Contract	Sep. 25, 2020 CAD ($) Contract
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period			2020-01	2023-06
Unrealized gain (loss) on derivatives		$ (1,225)
Derivative, Fixed Interest Rate		2.86%			2.86%
Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gain (loss) on derivatives		$ (1,500)	$ (1,900)
Gains or losses from accumulated other comprehensive income expected to be reclassified		$ 500
Foreign currency forward contracts \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract			61
Derivative notional amount			$ 74,000
Foreign currency forward contracts \| Designated as Hedging Instrument \| Thailand, baht
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract		130			130
Derivative notional amount		$ 130,000
Foreign currency forward contracts \| Designated as Hedging Instrument \| Canada, Dollars
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative notional amount					$ 0.8
Interest rate swaps
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract			2	2
Derivative notional amount			$ 125,100	$ 125,100
Gains or losses from accumulated other comprehensive income expected to be reclassified		$ 500
Interest rate swaps \| Bank of Ayudhya Public Company [Member] \| Bank of America Credit Facility [Member]
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2024-06
Long term Debt Fixed Interest Percentage	4.36%
Interest rate swaps \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gain (loss) on derivatives			$ 1,700

Fair Value - Schedule Impacts of Derivative Gain (Loss) of Cash Flow Hedges (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Derivatives gain (loss) recognized in other comprehensive income:
Derivative gain/(loss)	$ (1,983)	$ 39
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings:
Derivative gain/(loss)	(1,225)
Change in net unrealized gain (loss) on derivatives instruments	(3,208)	39
Interest rate swaps \| Other Comprehensive Income (Loss)
Derivatives gain (loss) recognized in other comprehensive income:
Derivative gain/(loss)	357	39
Interest rate swaps \| Interest Expense
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings:
Derivative gain/(loss)	(359)
Foreign currency forward contracts
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings:
Derivative gain/(loss)	(1,500)	$ (1,900)
Foreign currency forward contracts \| Other Comprehensive Income (Loss)
Derivatives gain (loss) recognized in other comprehensive income:
Derivative gain/(loss)	(2,340)
Foreign currency forward contracts \| Foreign exchange loss,net
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings:
Derivative gain/(loss)	1,278
Foreign currency forward contracts \| Cost of Revenue
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings:
Derivative gain/(loss)	(2,057)
Foreign currency forward contracts \| Selling, General and Administrative Expenses
Derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings:
Derivative gain/(loss)	$ (87)

Fair Value - Schedule of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020
Derivatives designates as hedging instruments:
Derivative ,gross balances (Derivative Assets)	$ 694	$ 2,823
Derivative ,gross balances (Derivative Liabilities)	(5,731)	(5,866)
Foreign currency forward contracts
Derivatives designates as hedging instruments:
Derivative Assets	247	2,814
Derivative Liabilities	(781)	(83)
Interest rate swaps
Derivatives designates as hedging instruments:
Derivative Liabilities	(4,816)	(5,172)
Foreign Currency Forward And Option Contracts
Derivatives not designated as hedging instruments
Derivative Assets	447	9
Derivative Liabilities	$ (134)	$ (611)

Inventories (Detail) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020
Inventories [Line Items]
Raw materials	$ 153,511	$ 141,522
Work in progress	149,441	136,344
Finished goods	21,619	17,950
Goods in transit	14,858	13,970
Inventories	$ 339,429	$ 309,786

Other receivable - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Jun. 26, 2020
Other receivable provided to customer	$ 24,300
Other receivable	$ 24,310	$ 24,310

Restricted cash - Additional Information (Detail) € in Millions, $ in Millions	Sep. 25, 2020 USD ($)	Sep. 25, 2020 EUR (€)	Jun. 26, 2020 USD ($)	Jun. 26, 2020 EUR (€)
Outstanding letter of credit amount \| €		€ 6.0		€ 6.0
Amount of cash collateral \| $	$ 7.4		$ 7.4

Leases - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Operating Lease Rental Expense	$ 0.6	$ 0.5
Operating lease rental expense short term	$ 0.0	$ 0.0
Maximum [Member]
Operating lease expiration year	2025
Lessee operating lease option to extend term	5 years
Minimum [Member]
Lessee operating lease option to extend term	1 year

Leases - Schedule Of Operating Lease Liabilities (Detail)
$ in Thousands

Sep. 25, 2020

USD ($)

Leases [Abstract]

$ 1,786

2,381

2,265

990

Total undiscounted lease payments

7,441

Less imputed interest

(437)

Total present value of lease liabilities

$ 7,004

^[1]

[1]	Included current portion of operating lease liabilities for the period ended September 25, 2020.

Leases - Summary Of Additional Information Related To Operating And Finance Lease (Detail)	Sep. 25, 2020	Jun. 26, 2020
Weighted-average remaining lease term (in years)
Operating leases	3 years 3 months 18 days	3 years 3 months 18 days
Weighted-average discount rate
Operating leases	3.70%	3.70%

Leases - Schedule Of Supplemental Cash Flow Information Related To Operating Lease (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 594	$ 458
Financing cash flows from finance leases	100	109
ROU assets obtained in exchange for lease liabilities	$ 7,228	$ 6,185

Intangibles (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Intangibles (Detail) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 12,978	$ 12,809
Accumulated Amortization	(8,770)	(8,387)
Foreign Currency Translation Adjustment	(61)	(110)
Net	4,147	4,312
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	8,486	8,317
Accumulated Amortization	(5,826)	(5,577)
Net	2,660	2,740
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,373	4,373
Accumulated Amortization	(2,825)	(2,691)
Foreign Currency Translation Adjustment	(61)	(110)
Net	1,487	1,572
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	119	119
Accumulated Amortization	$ (119)	$ (119)

Intangibles - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to intangibles	$ 0.2	$ 0.3

Weighted-Average Remaining Life of Intangible Assets (Detail)	3 Months Ended	12 Months Ended
	Sep. 25, 2020	Jun. 26, 2020
Global CEM Solutions, Ltd. \| Customer relationships
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	4 years 4 months 24 days	4 years 7 months 6 days

Estimated Future Amortization of Intangibles (Detail) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020
Finite-Lived Intangible Assets [Line Items]
2021 (remaining nine months)	$ 1,030
2022	1,129
2023	873
2024	642
2025	354
Thereafter	119
Total	$ 4,147	$ 4,312

Total Borrowings, Including Current Portion and Non-Current Portion of Long-Term Borrowings (Detail) - USD ($)
$ in Thousands

12 Months Ended

Jun. 26, 2020

Sep. 25, 2020

Debt Instrument [Line Items]

Long-term borrowings, current portion

$ 12,188

Less: Unamortized debt issuance costs – current portion

(32)

Long-term borrowings, current portion, net

12,156

Less: Current portion

(12,188)

Less: Unamortized debt issuance costs – non-current portion

(95)

(87)

Long-term borrowings, non-current portion, net

$ 39,514

36,475

Loan Payable Due June 2024

Debt Instrument [Line Items]

Rate

3-month LIBOR +1.35% per annum

Conditions

Repayable in quarterly installments

Term

2024-06

Long-term Debt

^[1]

$ 51,797

$ 48,750

Loan Payable Due June 2024 | LIBOR

Debt Instrument [Line Items]

Margin above rate

1.35%

[1]	We have entered into interest rate swaps that effectively fix a series of our future interest payments on our term loans. Refer to Note 6.

Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Debt Instrument [Line Items]
Opening balance	$ 51,797	$ 60,938
Borrowings during the period		60,938
Repayments during the period	(3,047)	(60,938)
Closing balance	$ 48,750	$ 60,938

Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 25, 2020	Jun. 26, 2020	Sep. 27, 2019	Jun. 28, 2019
Debt Instrument [Line Items]
2021 (remaining nine months)	$ 9,140
2022	12,188
2023	15,234
2024	12,188
Total	$ 48,750	$ 51,797	$ 60,938	$ 60,938

Borrowings - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
	Sep. 10, 2019	Sep. 25, 2020	Sep. 27, 2019	Sep. 03, 2019	Aug. 20, 2019	Jun. 04, 2018
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	$ 200,000				$ 160,900
Line of credit facility termination date		Sep. 10, 2019
Repayments Of Long term Debt		$ 3,047	$ 60,938
Bank of Ayudhya Public Company Limited [Member]
Line of Credit Facility [Line Items]
Interest Expense On Debt		$ 200
Debt Description Of Variable Rate Basis		3-month LIBOR plus 1.35%
Debt Instrument Stated Interest Percentage		1.35%
Debt Instrument Periodic Payment		$ 3,000
Debt Instrument Maturity Date		Jun. 30, 2024
Credit Facility Agreement [Member] \| Bank of Ayudhya Public Company Limited [Member]
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity			3,600		$ 110,000
Term Loan Agreement [Member]
Line of Credit Facility [Line Items]
Long Term Debt Outstanding		$ 48,800
Term Loan Agreement [Member] \| Bank of Ayudhya Public Company Limited [Member]
Line of Credit Facility [Line Items]
Debt Principal amount				$ 60,900
Line Of Credit Covenant Terms		The Term Loan Agreement contains affirmative and negative covenants applicable to the Borrower, including delivery of financial statements and other information, compliance with laws, maintenance of insurance, restrictions on granting security interests or liens on its assets, disposing of its assets, incurring indebtedness and making acquisitions. While the term loan is outstanding, the Borrower is required to maintain a loan to value of the mortgaged real property ratio of not greater than 65%. If the loan to value ratio is not maintained, the Borrower will be required to provide additional security or prepay a portion of the term loan in order to restore the required ratio. The Company is also required to maintain a debt service coverage ratio of at least 1.25 times and a debt to equity ratio less than or equal to 1.0 times. In the case of any payment of a dividend by the Company, its debt service coverage ratio must be at least 1.50 times. As of September 25, 2020, the Company was in compliance with all of its financial covenants under the Term Loan Agreement.
Term Loan Agreement [Member] \| Bank of America [Member]
Line of Credit Facility [Line Items]
Interest Expense On Debt			$ 500
LIBOR \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate		LIBOR rate plus a spread of 1.50% to 2.25%
Base Rate \| After Fifth Amendment
Line of Credit Facility [Line Items]
Credit line interest rate		base rate plus a spread of 0.50% to 1.25%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	150,000	$ 150,000				$ 25,000
Line of credit facility extended termination date		Jun. 04, 2023
Revolving Credit Facility \| Bank of America [Member]
Line of Credit Facility [Line Items]
Repayments Of Long term Debt	61,000
Term Loan Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity	$ 50,000
Line of credit facility amount outstanding						$ 65,000

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Income Taxes [Line Items]
Liability for uncertain tax positions including accrued interest and penalties	$ 1.5
Corporate effective income tax rate	4.50%	5.00%

Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Share-based compensation expense by type of award:
Restricted share units	$ 5,249	$ 4,398
Performance share units	778	1,597
Total share-based compensation expense	6,027	5,995
Tax effect on share-based compensation expense
Net effect on share-based compensation expense	$ 6,027	$ 5,995

Share-Based Compensation Expense Recorded in Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 6,027	$ 5,995
Cost of Revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,825	1,720
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 4,202	$ 4,275

Share-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019	Dec. 12, 2019	Nov. 02, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation costs capitalized	$ 0	$ 0
Shares authorized for future issuance			1,281,619
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes	142,221	82,220
Tax withholdings related to net share settlement of restricted share units	$ 9,920,000	$ 4,144,000
Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Ordinary available for grant	0
Equity Incentive 2020 plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Ordinary available for grant			1,700,000
Shares reserved for future issuance			1,300,000
Equity Incentive 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding	111,347
Shares authorized for future issuance				160,000
Performance Share Units \| Stock Plan 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding	182,844
Performance Share Units \| Executive of the Company
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year	2 years
Performance Share Units \| Executive of the Company \| Vest at the end of the performance period \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	0.00%
Performance Share Units \| Executive of the Company \| Vest at the end of the performance period \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	100.00%
Restricted Share Units \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding	459,110
Restricted Share Units \| Stock Plan 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding	2,572,597
Restricted Share Units \| Equity Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 18,700,000
Unrecognized compensation expense, weighted-average period for recognition	2 years 8 months 12 days
Restricted Share Units \| Equity Incentive 2020 plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding	222,502
Restricted Share Units \| Equity Incentive 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding	12,164
Restricted Share Units \| Vesting Option One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year	3 years
Restricted Share Units \| Vesting Option Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year	4 years
Restricted Share Units \| Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year	1 year
Restricted Share Units \| Non Employee Director \| Vest on the first of January
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	100.00%
Performance Share Units \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding	238,474
Performance Share Units \| Equity Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 14,600,000
Unrecognized compensation expense, weighted-average period for recognition	1 year 7 months 6 days

Restricted Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Restricted Share Units - $ / shares	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Number of restricted share units
Number of share units, Beginning Balance	797,757	800,751
Number of share units, Granted	171,946	292,321
Number of share units, Issued	(268,728)	(240,595)
Number of share units, Forfeited	(7,199)	(21,577)
Number of share units, Ending Balance	693,776	830,900
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 46.88	$ 42.48
Weighted-average grant date fair value per share, Granted	70.05	48.39
Weighted-average grant date fair value per share, Issued	43.84	39.62
Weighted-average grant date fair value per share, Forfeited	50.40	42.00
Weighted-average grant date fair value per share, Ending Balance	$ 53.76	$ 45.40

Performance Share Unit Activity (Detail) - Stock Plan 2010 and 2017 - Performance Share Units - $ / shares	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Number of performance share units
Number of share units, Beginning Balance	440,140	548,500
Number of share units, Granted	179,008	238,474
Number of share units, Issued	(82,185)	0
Number of share units, Forfeited	(115,645)	(350,670)
Number of share units, Ending Balance	421,318	436,304
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 48.37	$ 40.97
Weighted-average grant date fair value per share, Granted	70.05	48.39
Weighted-average grant date fair value per share, Issued	48.02
Weighted-average grant date fair value per share, Forfeited	48.02	36.99
Weighted-average grant date fair value per share, Ending Balance	$ 57.74	$ 48.22

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019	Aug. 31, 2020	Jun. 26, 2020	May 31, 2019	Feb. 28, 2018	Aug. 31, 2017
Shareholders Equity [Line Items]
Ordinary shares, authorized share capital	500,000,000			500,000,000
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			$ 58.5		$ 50.0	$ 30.0
Treasury Stock, carrying basis	$ 100.0		$ 168.5
Treasury Stock, Shares, Acquired	0
Stock Plan Nineteen Ninety Nine and Twenty Ten
Shareholders Equity [Line Items]
Ordinary shares issued upon vesting of restricted shares	208,692	158,375

Changes in AOCI, Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 25, 2020	Sep. 27, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 974,409	$ 863,099
Total other comprehensive income (loss), net of tax	(2,757)	(212)
Ending Balance	1,000,703	890,695
Unrealized net (Losses)/Gains on Available-for-sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	1,490	952
Other comprehensive income (loss) before reclassification adjustment	(325)	(32)
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income (loss)		67
Total other comprehensive income (loss), net of tax	(325)	35
Ending Balance	1,165	987
Unrealized net (Losses)/Gains on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	602	32
Other comprehensive income (loss) before reclassification adjustment	(1,983)	39
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income (loss)	(1,225)
Total other comprehensive income (loss), net of tax	(3,208)	39
Ending Balance	(2,606)	71
Retirement benefit plan - Prior service cost
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(2,009)	(2,537)
Other comprehensive income (loss) before reclassification adjustment		83
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income (loss)	173
Total other comprehensive income (loss), net of tax	173	83
Ending Balance	(1,836)	(2,454)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(1,230)	(833)
Other comprehensive income (loss) before reclassification adjustment	603	(369)
Total other comprehensive income (loss), net of tax	603	(369)
Ending Balance	(627)	(1,202)
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(1,147)	(2,386)
Other comprehensive income (loss) before reclassification adjustment	(1,705)	(279)
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income (loss)	(1,052)	67
Total other comprehensive income (loss), net of tax	(2,757)	(212)
Ending Balance	$ (3,904)	$ (2,598)

Commitments and Contingencies - Additional Information (Detail) € in Millions, $ in Millions	Sep. 25, 2020 USD ($)	Sep. 25, 2020 EUR (€)	Jun. 26, 2020 USD ($)	Jun. 26, 2020 EUR (€)
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of the company	$ 1.6		$ 1.6
Outstanding letter of credit amount \| €		€ 6.0		€ 6.0
Amount of cash collateral	7.4		7.4
Thailand
Commitments and Contingencies Disclosure [Line Items]
Outstanding commitment to third parties	10.0
CHINA
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of the company	0.0		0.0
UNITED KINGDOM
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of the company	$ 0.0		$ 0.0

Business Segments and Geographic Information - Additional Information (Detail) $ in Millions	3 Months Ended
	Sep. 25, 2020 USD ($) Segment Contract	Jun. 26, 2020 Contract	Sep. 27, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of operating segment \| Segment	1
Number of customers that contributed to more than 10% of trade accounts receivable \| Contract	2	3
North America
Segment Reporting Information [Line Items]
Long-lived assets \| $	$ 29.2		$ 30.8

Subsequent events - Additional Information (Detail) $ in Millions	Oct. 01, 2020 USD ($)
Due from other related parties	$ 24.3
Purchase Commitment [Member]
Purchase Commitment	$ 26.0
Maximum [Member]
Other receivables due date	Apr. 01, 2021