0001408710-23-000008 | 10-Q | XBRL Viewer

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Cover - shares	6 Months Ended
Cover - shares	Dec. 30, 2022	Jan. 27, 2023
Cover [Abstract]
Document type	10-Q
Document quarterly report	true
Document period end date	Dec. 30, 2022
Document transition report	false
Entity file number	001-34775
Entity registrant name	FABRINET
Entity incorporation, state or country code	E9
Entity tax identification number	98-1228572
Entity address, address line one	c/o Intertrust Corporate Services
Entity address, address line two	One Nexus Way, Camana Bay
Entity address, city or town	Grand Cayman
Entity address, country	KY
Entity address, postal zip code	KY1-9005
City area code	66 2
Local phone number	524-9600
Title of 12(b) security	Ordinary Shares, $0.01 par value
Trading symbol	FN
Security exchange name	NYSE
Entity current reporting status	Yes
Entity interactive data current	Yes
Entity filer category	Large Accelerated Filer
Entity small business	false
Entity emerging growth company	false
Entity shell company	false
Entity common stock, shares outstanding (in shares)		36,608,619
Current fiscal year end date	--06-30
Amendment flag	false
Document fiscal year focus	2023
Document fiscal period focus	Q2
Entity central index key	0001408710

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022
Current assets
Cash and cash equivalents	$ 250,829	$ 197,996
Short-term restricted cash	0	220
Short-term investments	276,778	280,157
Trade accounts receivable, net of allowance for doubtful accounts of $1,521 and $1,271, respectively	520,024	439,330
Contract assets	13,578	13,464
Inventories	536,536	557,145
Prepaid expenses	9,483	11,626
Other current assets	40,543	25,233
Total current assets	1,647,771	1,525,171
Non-current assets
Long-term restricted cash	0	149
Property, plant and equipment, net	302,282	292,277
Intangibles, net	3,319	3,508
Operating right-of-use assets	2,805	4,084
Deferred tax assets	11,212	9,800
Other non-current assets	635	652
Total non-current assets	320,253	310,470
Total Assets	1,968,024	1,835,641
Current liabilities
Long-term borrowings, current portion, net	12,156	12,156
Trade accounts payable	438,475	439,684
Fixed assets payable	18,920	9,085
Contract liabilities	3,636	1,982
Operating lease liabilities, current portion	2,005	2,319
Income tax payable	2,470	2,898
Accrued payroll, bonus and related expenses	21,940	20,374
Accrued expenses	22,465	24,758
Other payables	27,528	25,231
Total current liabilities	549,595	538,487
Non-current liabilities
Long-term borrowings, non-current portion, net	6,078	15,202
Deferred tax liability	5,934	6,001
Operating lease liability, non-current portion	476	1,476
Severance liabilities	20,335	18,384
Other non-current liabilities	1,475	2,409
Total non-current liabilities	34,298	43,472
Total Liabilities	583,893	581,959
Commitments and contingencies (Note 15)
Shareholders’ equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of December 30, 2022 and June 24, 2022)	0	0
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 39,251,581 shares and 39,048,700 shares issued at December 30, 2022 and June 24, 2022, respectively; and 36,590,939 shares and 36,436,683 shares outstanding at December 30, 2022 and June 24, 2022, respectively)	393	390
Additional paid-in capital	194,366	196,667
Less: Treasury shares (2,660,642 shares and 2,612,017 shares as of December 30, 2022 and June 24, 2022, respectively)	(152,362)	(147,258)
Accumulated other comprehensive income (loss)	(2,714)	(12,793)
Retained earnings	1,344,448	1,216,676
Total Shareholders’ Equity	1,384,131	1,253,682
Total Liabilities and Shareholders’ Equity	$ 1,968,024	$ 1,835,641

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,521	$ 1,271
Preferred shares, shares authorized (in shares)	5,000,000	5,000,000
Preferred shares, par value (in USD per share)	$ 0.01	$ 0.01
Preferred shares, shares issued (in shares)	0	0
Preferred shares, shares outstanding (in shares)	0	0
Ordinary shares, shares authorized (in shares)	500,000,000	500,000,000
Ordinary shares, par value (in USD per share)	$ 0.01	$ 0.01
Ordinary shares, shares issued (in shares)	39,251,581	39,048,700
Ordinary shares, shares outstanding (in shares)	36,590,939	36,436,683
Treasury stocks, shares (in shares)	2,660,642	2,612,017

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Income Statement [Abstract]
Revenues	$ 668,656	$ 566,633	$ 1,324,085	$ 1,109,955
Cost of revenues	(583,441)	(497,262)	(1,156,114)	(976,987)
Gross profit	85,215	69,371	167,971	132,968
Selling, general and administrative expenses	(18,930)	(17,791)	(39,495)	(38,378)
Expenses related to reduction in workforce	0	(135)	0	(135)
Operating income	66,285	51,445	128,476	94,455
Interest income	2,334	295	3,893	1,056
Interest expense	(389)	(238)	(780)	(274)
Foreign exchange gain (loss), net	(3,904)	(364)	(1,819)	1,408
Other income (expense), net	(68)	(1,055)	(209)	(1,315)
Income before income taxes	64,258	50,083	129,561	95,330
Income tax expense	(1,101)	(1,204)	(1,789)	(1,800)
Net income	63,157	48,879	127,772	93,530
Other comprehensive income (loss), net of tax:
Change in net unrealized gain (loss) on available-for-sale securities	1,183	(947)	(278)	(1,160)
Change in net unrealized gain (loss) on derivative instruments	11,188	3,294	9,970	2,077
Change in net retirement benefits plan – prior service cost	57	126	225	324
Change in foreign currency translation adjustment	(84)	0	162	(164)
Total other comprehensive income (loss), net of tax	12,344	2,473	10,079	1,077
Net comprehensive income	$ 75,501	$ 51,352	$ 137,851	$ 94,607
Earnings per share
Basic (in USD per share)	$ 1.73	$ 1.32	$ 3.50	$ 2.53
Diluted (in USD per share)	$ 1.71	$ 1.30	$ 3.47	$ 2.50
Weighted-average number of ordinary shares outstanding (thousands of shares)
Basic (in shares)	36,589	37,017	36,558	36,947
Diluted (in shares)	36,939	37,552	36,848	37,440

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Total	Ordinary Share	Additional Paid-in Capital	Treasury Shares	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance (in shares) at Jun. 25, 2021		38,749,045
Beginning balance at Jun. 25, 2021	$ 1,112,520	$ 388	$ 189,445	$ (87,343)	$ (6,266)	$ 1,016,296
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	93,530					93,530
Other comprehensive income (loss)	1,077				1,077
Share-based compensation	15,978		15,978
Issuance of ordinary shares (in shares)		259,951
Issuance of ordinary shares	0	$ 2	(2)
Repurchase of shares held as treasury shares	(4,433)			(4,433)
Tax withholdings related to net share settlement of restricted share units	(19,481)		(19,481)
Ending balance (in shares) at Dec. 24, 2021		39,008,996
Ending balance at Dec. 24, 2021	1,199,191	$ 390	185,940	(91,776)	(5,189)	1,109,826
Beginning balance (in shares) at Sep. 24, 2021		39,000,843
Beginning balance at Sep. 24, 2021	1,146,002	$ 390	179,670	(87,343)	(7,662)	1,060,947
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	48,879					48,879
Other comprehensive income (loss)	2,473				2,473
Share-based compensation	6,686		6,686
Issuance of ordinary shares (in shares)		8,153
Issuance of ordinary shares	0	$ 0	0
Repurchase of shares held as treasury shares	(4,433)			(4,433)
Tax withholdings related to net share settlement of restricted share units	(416)		(416)
Ending balance (in shares) at Dec. 24, 2021		39,008,996
Ending balance at Dec. 24, 2021	1,199,191	$ 390	185,940	(91,776)	(5,189)	1,109,826
Beginning balance (in shares) at Jun. 24, 2022		39,048,700
Beginning balance at Jun. 24, 2022	1,253,682	$ 390	196,667	(147,258)	(12,793)	1,216,676
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	127,772					127,772
Other comprehensive income (loss)	10,079				10,079
Share-based compensation	14,498		14,498
Issuance of ordinary shares (in shares)		202,881
Issuance of ordinary shares	0	$ 3	(3)
Repurchase of shares held as treasury shares	(5,104)			(5,104)
Tax withholdings related to net share settlement of restricted share units	(16,796)		(16,796)
Ending balance (in shares) at Dec. 30, 2022		39,251,581
Ending balance at Dec. 30, 2022	1,384,131	$ 393	194,366	(152,362)	(2,714)	1,344,448
Beginning balance (in shares) at Sep. 30, 2022		39,245,547
Beginning balance at Sep. 30, 2022	1,302,366	$ 392	187,899	(152,158)	(15,058)	1,281,291
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	63,157					63,157
Other comprehensive income (loss)	12,344				12,344
Share-based compensation	6,775		6,775
Issuance of ordinary shares (in shares)		6,034
Issuance of ordinary shares	0	$ 1	(1)
Repurchase of shares held as treasury shares	(204)			(204)
Tax withholdings related to net share settlement of restricted share units	(307)		(307)
Ending balance (in shares) at Dec. 30, 2022		39,251,581
Ending balance at Dec. 30, 2022	$ 1,384,131	$ 393	$ 194,366	$ (152,362)	$ (2,714)	$ 1,344,448

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - shares	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Statement of Stockholders' Equity [Abstract]
Treasury stock acquired (in shares)	1,648	38,269	48,625	38,269

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021
Cash flows from operating activities
Net income for the period	$ 127,772	$ 93,530
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	21,596	19,114
(Gain) loss on disposal and impairment of property, plant and equipment	(337)	(135)
(Gain) loss from sales and maturities of available-for-sale securities	92	(13)
Amortization of discount (premium) of short-term investment	565	2,079
Amortization of deferred debt issuance costs	16	16
(Reversal of) allowance for doubtful accounts	251	(30)
Unrealized loss (gain) on exchange rate and fair value of foreign currency forward contracts	3,086	(673)
Amortization of fair value at hedge inception of interest rate swaps	(346)	(513)
Share-based compensation	14,498	15,978
Deferred income tax	(1,338)	(986)
Other non-cash expenses	(321)	268
Changes in operating assets and liabilities
Trade accounts receivable	(79,831)	(48,046)
Contract assets	(114)	(1,270)
Inventories	20,475	(62,740)
Other current assets and non-current assets	(11,946)	(5,568)
Trade accounts payable	(4,176)	44,078
Contract liabilities	1,654	214
Income tax payable	(577)	(1,323)
Severance liabilities	1,269	1,708
Other current liabilities and non-current liabilities	12,812	1,880
Net cash provided by operating activities	105,100	57,568
Cash flows from investing activities
Purchase of short-term investments	(74,482)	(78,786)
Proceeds from sales of short-term investments	30,000	19,463
Proceeds from maturities of short-term investments	46,925	57,721
Purchase of property, plant and equipment	(23,643)	(51,917)
Purchase of intangibles	(412)	(446)
Proceeds from disposal of property, plant and equipment	32	188
Net cash used in investing activities	(21,580)	(53,777)
Cash flows from financing activities
Repayment of long-term borrowings	(9,140)	(6,094)
Repayment of finance lease liability	(5)	0
Repurchase of ordinary shares	(5,104)	(4,198)
Withholding tax related to net share settlement of restricted share units	(16,796)	(19,481)
Net cash used in financing activities	(31,045)	(29,773)
Net increase (decrease) in cash, cash equivalents and restricted cash	52,475	(25,982)
Movement in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at the beginning of period	198,365	303,123
Increase (decrease) in cash, cash equivalents and restricted cash	52,475	(25,982)
Effect of exchange rate on cash, cash equivalents and restricted cash	(11)	(296)
Cash, cash equivalents and restricted cash at the end of period	250,829	276,845
Non-cash investing and financing activities
Construction, software and equipment-related payables	$ 18,920	$ 28,740

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 30, 2022	Dec. 24, 2021
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$ 250,829	$ 276,531
Restricted cash	0	314
Cash, cash equivalents and restricted cash	$ 250,829	$ 276,845

Business and organization	6 Months Ended
Business and organization	Dec. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and organization	Business and organization General Fabrinet (“Fabrinet” or the “Parent Company”) was incorporated on August 12, 1999, and commenced operations on January 1, 2000. The Parent Company is an exempted company incorporated in the Cayman Islands, British West Indies. The “Company” refers to Fabrinet and its subsidiaries as a group. The Company provides advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (“OEMs”) of complex products, such as optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices and sensors. The Company offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing. The Company focuses primarily on the production of low-volume, high-mix products. The principal subsidiaries of Fabrinet include Fabrinet Co., Ltd. (“Fabrinet Thailand”), Casix, Inc. (“Casix”), Fabrinet West, Inc. (“Fabrinet West”), Fabrinet UK Limited (“Fabrinet UK”) and Fabrinet Israel Ltd. (“Fabrinet Israel”).

Accounting policies	6 Months Ended
Accounting policies	Dec. 30, 2022
Accounting Policies [Abstract]
Accounting policies	Accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of December 30, 2022 and for the three and six months ended December 30, 2022 and December 24, 2021 include normal recurring adjustments necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or "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 24, 2022. The balance sheet as of June 24, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and six months ended December 30, 2022 may not be indicative of results for the year ending June 30, 2023 or any future periods. Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of total revenues and expenses during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, allowance for expected credit losses, income taxes, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that the Company's estimates or assumptions prove to be different from actual results, adjustments will be made in subsequent periods to reflect more current information. Additionally, the extent to which the evolving COVID-19 pandemic impacts the Company’s unaudited condensed consolidated financial statements will depend on a number of factors, including the magnitude and duration of the pandemic. These estimates may change, as new events occur and additional information is obtained, or based upon the occurrence of other factors related to the COVID-19 pandemic that could result in material impacts to the Company's unaudited condensed consolidated financial statements in future reporting periods. Fiscal years The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. The three months ended December 30, 2022 and December 24, 2021 consisted of 13 weeks. The six months ended December 30, 2022 and December 24, 2021 consisted of 27 weeks and 26 weeks, respectively. Fiscal year 2023 will comprise 53 weeks and will end on June 30, 2023. Adoption of New Accounting Standards In November 2021, the Financial Accounting Standard Board issued Accounting Standards Update ("ASU") 2021-10, “Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance,” which requires annual disclosures that increase the transparency of transactions involving government assistance, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The amendments in this update are effective for all entities within the ASU's scope for financial statements issued for annual periods beginning after December 15, 2021. The Company adopted this standard in the first quarter of fiscal year 2023 with no material impact on its unaudited condensed consolidated financial statements.

Revenues from contracts with customers

6 Months Ended

Dec. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenues from contracts with customers

Revenue by Geographic Area and End Market

Revenues are attributed to a particular geographic area based on the bill-to-location of the Company’s customers. The Company operates in three geographic regions: North America; Asia-Pacific and others; and Europe.

The following table presents total revenues by geographic region:


(in thousands, except percentages)	Three Months Ended December 30, 2022		As a % of Total Revenues		Six Months Ended December 30, 2022		As a % of Total Revenues
North America
U.S.	$	319,918			$	664,998
Others (1)	4,033				7,657
Total revenue in North America	323,951		48.5	%	672,655		50.8	%
Asia-Pacific and others
India	82,178				162,211
Israel	59,893				97,170
Malaysia	50,390				99,714
Hong Kong	39,723				72,195
China	26,480				49,544
Thailand	16,098				28,714
Japan	11,737				22,085
Others	1,901				5,061
Total revenue in Asia-Pacific and others	288,400		43.1	%	536,694		40.5	%
Europe
U.K.	30,316				63,148
Germany	13,129				26,443
Ireland (2)	143				262
Others	12,717				24,883
Total revenue in Europe	$	56,305	8.4	%	$	114,736	8.7	%
Total revenue	$	668,656	100.0	%	$	1,324,085	100.0	%


(in thousands, except percentages)	Three Months Ended December 24, 2021		As a % of Total Revenues		Six Months Ended December 24, 2021		As a % of Total Revenues
North America
U.S.	$	243,720			$	488,994
Others (1)	3,557				4,873
Total revenue in North America	247,277		43.6	%	493,867		44.5	%
Asia-Pacific and others
India	74,121				139,054
Malaysia	60,369				112,118
Hong Kong	23,206				44,237
Israel	22,801				50,434
Japan	15,832				30,809
China	14,146				27,781
Others	11,565				23,790
Total revenue in Asia-Pacific and others	222,040		39.2	%	428,223		38.6	%
Europe
Ireland (2)	54,900				104,384
U.K.	22,941				42,519
Germany	8,985				17,410
Others	10,490				23,552
Total revenue in Europe	$	97,316	17.2	%	$	187,865	16.9	%
Total revenue	$	566,633	100.0	%	$	1,109,955	100.0	%

(1)Others includes revenues from external customers based in our country of domicile, the Cayman Islands, which for each year presented is $0.

(2)Due to change in bill-to-location for a certain customer.

The following table presents revenues by end market:


(in thousands, except percentages)	Three Months Ended December 30, 2022		As a % of Total Revenues		Six Months Ended December 30, 2022		As a % of Total Revenues
Optical communications	$	506,056	75.7	%	$	1,003,617	75.8	%
Lasers, sensors and other	162,600		24.3	%	320,468		24.2	%
Total	$	668,656	100.0	%	$	1,324,085	100.0	%


(in thousands, except percentages)	Three Months Ended December 24, 2021		As a % of Total Revenues		Six Months Ended December 24, 2021		As a % of Total Revenues
Optical communications	$	450,783	79.6	%	$	878,084	79.1	%
Lasers, sensors and other	115,850		20.4	%	231,871		20.9	%
Total	$	566,633	100.0	%	$	1,109,955	100.0	%

Contract Assets and Liabilities

A contract asset is recognized when the Company has recognized revenues prior to generating an invoice for payment. Contract assets are classified separately within the unaudited condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional.

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

The following tables summarize the activity in the Company’s contract assets and contract liabilities during the six months ended December 30, 2022:


(in thousands)	Contract Assets
Beginning balance, June 24, 2022	$	13,464
Revenue recognized	31,601
Amounts collected or invoiced	(31,487)
Ending balance, December 30, 2022	$	13,578


(in thousands)	Contract Liabilities
Beginning balance, June 24, 2022	$	1,982
Advance payment received during the period	12,515
Revenue recognized	(10,861)
Ending balance, December 30, 2022	$	3,636

- 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 https://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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Earnings per ordinary share

6 Months Ended

Dec. 30, 2022

Earnings Per Share [Abstract]

Earnings per ordinary share

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

Earnings per ordinary share was calculated as follows:


	Three Months Ended				Six Months Ended
(in thousands, except per share data)	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Net income attributable to shareholders	$	63,157	$	48,879	$	127,772	$	93,530
Weighted-average number of ordinary shares outstanding	36,589		37,017		36,558		36,947
Incremental shares arising from the assumed vesting of restricted share units and performance share units	350		535		290		493
Weighted-average number of ordinary shares for diluted earnings per ordinary share	36,939		37,552		36,848		37,440
Basic earnings per ordinary share	$	1.73	$	1.32	$	3.50	$	2.53
Diluted earnings per ordinary share	$	1.71	$	1.30	$	3.47	$	2.50

Cash, cash equivalents and short-term investments

6 Months Ended

Dec. 30, 2022

Cash and Cash Equivalents [Abstract]

Cash, cash equivalents and short-term investments

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


					Fair Value
(in thousands)	Carrying Cost		Unrealized Gain/ (Loss)		Cash and Cash Equivalents		Marketable Securities		Other Investments
As of December 30, 2022
Cash	$	236,504	$	—	$	236,504	$	—	$	—
Cash equivalents	14,325		—		14,325		—		—
Liquidity funds	30,127		—		—		—		30,127
Corporate debt securities	242,902		(5,991)		—		236,911		—
U.S. agency and U.S. treasury securities	10,045		(305)		—		9,740		—
Total	$	533,903	$	(6,296)	$	250,829	$	246,651	$	30,127
As of June 24, 2022
Cash	$	187,630	$	—	$	187,630	$	—	$	—
Cash equivalents	10,367		(1)		10,366		—		—
Liquidity funds	31,477		—		—		—		31,477

Corporate debt securities	234,689		(5,671)		—		229,018		—
U.S. agency and U.S. treasury securities	20,007		(345)		—		19,662		—
Total	$	484,170	$	(6,017)	$	197,996	$	248,680	$	31,477

All highly liquid investments with original maturities of three months or less at the date of purchase are classified as cash equivalents. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date. The Company may sell certain of its short-term investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s short-term investments generally range from three months to three years.

The following table summarizes the cost and estimated fair value of short-term investments classified as available-for-sale securities based on stated effective maturities as of December 30, 2022 and June 24, 2022:


	December 30, 2022				June 24, 2022
(in thousands)	Carrying Cost		Fair Value		Carrying Cost		Fair Value
Due within one year	$	102,598	$	102,106	$	101,976	$	101,400
Due between one to five years	180,476		174,672		184,197		178,757
Total	$	283,074	$	276,778	$	286,173	$	280,157

Fair value of financial instruments

6 Months Ended

Dec. 30, 2022

Fair Value Disclosures [Abstract]

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
(in thousands)	Level 1		Level 2			Level 3		Total
As of December 30, 2022
Assets
Cash equivalents	$	—	$	14,325		$	—	$	14,325
Liquidity funds	—		30,127			—		30,127
Corporate debt securities	—		236,911			—		236,911
U.S. agency and U.S. treasury securities	—		9,740			—		9,740
Derivative assets – current portion	—		5,835		(1)	—		5,835
Derivative assets – non-current portion	—		37		(2)	—		37
Total	$	—	$	296,975		$	—	$	296,975
Liabilities
Derivative liabilities – current portion	$	—	$	(764)		$	—	$	(764)

Total	$	—	$	(764)	(3)	$	—	$	(764)


	Fair Value Measurements at Reporting Date Using
(in thousands)	Level 1		Level 2			Level 3		Total
As of June 24, 2022
Assets
Cash equivalents	$	—	$	10,366		$	—	$	10,366
Liquidity funds	—		31,477			—		31,477
Corporate debt securities	—		229,018			—		229,018
U.S. agency and U.S. treasury securities	—		19,662			—		19,662
Derivative assets – current portion	—		110		(4)	—		110
Total	$	—	$	290,633		$	—	$	290,633
Liabilities
Derivative liabilities – current portion	$	—	$	(7,345)		$	—	$	(7,345)
Derivative liabilities – non-current portion	—		(234)			—		(234)
Total	$	—	$	(7,579)	(5)	$	—	$	(7,579)

(1)Foreign currency forward contracts with an aggregate notional amount of $126.0 million and an interest rate swap agreement with a notional amount of $64.2 million.

(2)Interest rate swap agreement with notional amount of $60.9 million.

(3)Foreign currency forward contracts with an aggregate notional amount of $4.0 million and 0.8 million Canadian dollars and an interest rate swap agreement with a notional amount of $60.9 million.

(4)Interest rate swap agreement with a notional amount of $64.2 million.

(5)Foreign currency forward contracts with an aggregate notional amount of $135.0 million and 0.5 million Canadian dollars and an interest rate swap agreement with a notional amount of $60.9 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 as foreign exchange gain (loss), net in the unaudited condensed consolidated statements of operations and comprehensive income.

As of December 30, 2022, the Company had 130 outstanding U.S. dollar foreign currency forward contracts against Thai baht, with an aggregate notional amount of $130.0 million and maturity dates ranging from January 2023 through July 2023 and one outstanding Canadian dollar foreign currency forward contract with an aggregate notional amount of 0.8 million Canadian dollars and a maturity date in March 2023.

As of June 24, 2022, the Company had 135 outstanding U.S. dollar foreign currency forward contracts against Thai baht with an aggregate notional amount of $135.0 million and maturity dates ranging from July 2022 through January 2023, and one foreign currency contract with a notional amount of 0.5 million Canadian dollars and with a maturity date in September 2022.

As of December 30, 2022, the hedging relationship over foreign currency forward contracts that were designated for hedge accounting was determined to be highly effective based on the performance of retrospective and prospective regression testing. As of December 30, 2022, the amount in accumulated other comprehensive income (“AOCI”) that is expected to be reclassified into earnings within 12 months was a gain of $4.7 million.

As of June 24, 2022, the hedging relationship over foreign currency forward contracts that were designated for hedge accounting had been tested to be highly effective based on the performance of retrospective and prospective regression testing. As of June 24, 2022, the amount in AOCI that is expected to be reclassified into earnings within 12 months was a loss of $4.8 million.

During the three and six months ended December 30, 2022, the Company included an unrealized gain of $4.2 million and $4.0 million, respectively, from changes in the fair value of a foreign currency forward contract that was not designated for hedge accounting in earnings as foreign exchange gain (loss), net in the unaudited condensed consolidated statements of operations and comprehensive income.

During the three and six months ended December 24, 2021, the Company included an unrealized gain of $1.1 million and $0.5 million, respectively, from changes in the fair value of a foreign currency forward contract that was not designated for hedge accounting in earnings as foreign exchange gain (loss), net in the unaudited condensed consolidated statements of operations and comprehensive income.

Interest Rate Swap Agreements

The Company entered into interest rate swap agreements to mitigate interest rate risk and improve the interest rate profile of the Company’s debt obligations. As of December 30, 2022 and June 24, 2022, 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 a credit facility agreement with Bank of America to a fixed interest rate of 2.86% per annum through the scheduled maturity of the term loan in June 2023 (see Note 10). The Company did not designate this interest rate swap for hedge accounting.

On September 3, 2019, Fabrinet Thailand entered into a term loan agreement under a credit facility agreement with the Bank of Ayudhya Public Company Limited (the “Bank”) (see Note 10) and on September 10, 2019, the Company repaid in full the outstanding term loan under the Bank of America Credit Facility Agreement (see Note 10). In conjunction with the funding of the new term loan, the Company entered into a second interest rate swap agreement. The combination of both of these interest rate swaps effectively converts the floating interest rate of the Company’s term loan with the Bank to a fixed interest rate of 4.36% per annum through the maturity of the term loan in June 2024.

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

As of December 30, 2022, the amount in AOCI that is expected to be reclassified into earnings within 12 months was a gain of $0.1 million.

As of June 24, 2022, the amount in AOCI that is expected to be reclassified into earnings within 12 months was a loss of $0.5 million.

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


		Three Months Ended				Six Months Ended
(in thousands)	Financial statements line item	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Derivatives gain (loss) recognized in other comprehensive income (loss):
Foreign currency forward contracts	Other comprehensive income	$	14,754	$	3,685	$	11,762	$	1,549
Interest rate swaps	Other comprehensive income	310		595		826		1,003
Total derivatives gain (loss) recognized in other comprehensive income (loss)		$	15,064	$	4,280	$	12,588	$	2,552
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Foreign currency forward contracts	Cost of revenues	$	5,534	$	2,984	$	9,328	$	5,099
Foreign currency forward contracts	SG&A	230		124		390		212
Foreign currency forward contracts	Foreign exchange loss, net	(9,485)		(3,849)		(11,990)		(5,273)
Interest rate swaps	Interest expense	(155)		(245)		(346)		(513)
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings		$	(3,876)	$	(986)	$	(2,618)	$	(475)
Change in net unrealized gain (loss) on derivatives instruments		$	11,188	$	3,294	$	9,970	$	2,077

Fair Value of derivatives

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


	December 30, 2022				June 24, 2022
(in thousands)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Derivatives not designated as hedging instruments
Foreign currency forward and option contracts	$	683	$	(39)	$	—	$	(1,561)

Derivatives designated as hedging instruments
Foreign currency forward contracts	4,725		—		—		(4,821)
Interest rate swaps	464		(725)		110		(1,197)
Derivatives, gross balances	$	5,872	$	(764)	$	110	$	(7,579)

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, Other non-current assets


Fair Value of Derivative Liabilities			Accrued expenses, 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

6 Months Ended

Dec. 30, 2022

Inventory Disclosure [Abstract]

Inventories


(in thousands)	As of December 30, 2022		As of June 24, 2022
Raw materials	$	187,005	$	275,730
Work in progress	294,453		217,638
Finished goods	24,238		15,203
Goods in transit	30,840		48,574
Total inventories	$	536,536	$	557,145

Leases

6 Months Ended

Dec. 30, 2022

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, the PRC, the U.S., the U.K., Israel and Singapore under operating lease arrangements that expire at various dates through 2025. Certain of these lease arrangements provide the Company the ability to extend the lease from one to five years following the expiration of the current term. However, the Company has excluded all lease extension options from its right of use (“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 the form of a lease of office and manufacturing space.

Operating leases

As of December 30, 2022, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2023 (remaining six months)	$	1,236
2024	1,297
2025	49


Total undiscounted lease payments	2,582
Less imputed interest	(101)
Total present value of lease liabilities	$	2,481	(1)

(1)Includes current portion of operating lease liabilities of $2.0 million.

Rental expense related to the Company’s operating leases is recognized on a straight-line basis over the lease term.

Rental expense for long-term leases for the three and six months ended December 30, 2022 was $0.6 million and $1.2 million, respectively, and for the three and six ended December 24, 2021 was $0.7 million and $1.4 million, respectively. Rental expense for short-term leases for the three and six months ended December 30, 2022 and December 24, 2021 was immaterial.

Finance leases

As of December 30, 2022, the Company had one finance lease agreement with a de minimis amount.

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


	As of December 30, 2022		As of June 24, 2022
Weighted-average remaining lease term (in years)	1.4		1.8
Weighted-average discount rate	3.5	%	3.4	%

The following table presents supplemental disclosure for the unaudited condensed consolidated statement of cash flows related to operating and finance leases for the three and six months ended December 30, 2022 and December 24, 2021:


	Three Months Ended				Six Months Ended
(in thousands)	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	661	$	709	$	1,302	$	1,398
Financing cash flows from finance leases	$	3	$	—	$	5	$	—
ROU assets obtained in exchange for lease liabilities	$	69	$	—	$	69	$	38

Intangibles

6 Months Ended

Dec. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles

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


(in thousands)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation Adjustment		Net
As of December 30, 2022
Software	$	11,046	$	(8,262)	$	—	$	2,784
Customer relationships	4,373		(3,784)		(54)		535

Total intangibles	$	15,419	$	(12,046)	$	(54)	$	3,319


(in thousands)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation Adjustment		Net
As of June 24, 2022
Software	$	10,484	$	(7,681)	$	—	$	2,803
Customer relationships	4,373		(3,610)		(58)		705
Backlog	119		(119)		—		—
Total intangibles	$	14,976	$	(11,410)	$	(58)	$	3,508

The Company recorded amortization expense relating to intangibles of $0.4 million for each of the three months ended December 30, 2022 and December 24, 2021, and $0.8 million for each of the six months ended December 30, 2022 and December 24, 2021.

The weighted-average remaining life of software and customer relationships was:


(years)	As of December 30, 2022	As of June 24, 2022
Software	3.4	3.8
Customer relationships	2.8	3.1
Total intangibles	3.5	3.8

Based on the carrying amount of intangibles as of December 30, 2022, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows:


(in thousands)
2023 (remaining six months)	$	666
2024	1,201
2025	725
2026	508
2027	192
Thereafter	27
Total	$	3,319

Borrowings

6 Months Ended

Dec. 30, 2022

Debt Disclosure [Abstract]

Borrowings

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


(in thousands of U.S. dollars)
Rate	Conditions	Maturity	As of December 30, 2022		As of June 24, 2022
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	$	18,281	$	27,421
Less: Current portion			(12,188)		(12,188)
Less: Unamortized debt issuance costs, non-current portion			(15)		(31)
Long-term borrowings, non-current portion, net			$	6,078	$	15,202

(1)The Company has entered into interest rate swaps that effectively fix a series of future interest payments on its term loans. Refer to Note 6.

The movements of long-term borrowings for the six months ended December 30, 2022 and December 24, 2021 were as follows:


	Six Months Ended
(in thousands)	December 30, 2022		December 24, 2021
Opening balance	$	27,421	$	39,609

Repayments during the period	(9,140)		(6,094)
Closing balance	$	18,281	$	33,515

As of December 30, 2022, future maturities of long-term borrowings during each fiscal year were as follows:


(in thousands)
2023 (remaining six months)	$	6,094
2024	12,187


Total	$	18,281

Credit facility agreements:

Bank of Ayudhya Public Company Limited

On August 20, 2019, Fabrinet Thailand (the “Borrower”) and Bank of Ayudhya Public Company Limited (the “Bank”) entered into a credit facility agreement (the “Credit Facility Agreement”), which provides for a facility of 110.0 million Thai baht (approximately $3.6 million based on the applicable exchange rate as of September 27, 2019) and $160.9 million that may be used for, among other things, an overdraft facility, short-term loans against promissory notes, a letter of guarantee facility, a term loan facility and foreign exchange facilities. The Bank may approve any request for extension of credit under the Credit Facility Agreement and may increase or decrease any facility amount in its sole discretion.

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

The term loan accrues interest at 3-month LIBOR plus 1.35% and is repayable in quarterly installments of $3.0 million, commencing on September 30, 2019. The term loan will mature on June 30, 2024. The Borrower may prepay the term loan

in whole or in part at any time without premium or penalty. Any portion of the term loan repaid or prepaid may not be borrowed again. During the three and six months ended December 30, 2022, the Company recorded $0.5 million and $1.1 million, respectively, of interest expense in connection with this term loan, including the impact from interest rate swaps.

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

The Term Loan Agreement contains affirmative and negative covenants applicable to the Borrower, including delivery of financial statements and other information, compliance with laws, maintenance of insurance, and restrictions on granting security interests or liens on its assets, disposing of its assets, incurring indebtedness and making acquisitions. While the term loan is outstanding, the Borrower is required to maintain a loan to value of the mortgaged real property ratio of not greater than 65%. If the loan to value ratio is not maintained, the Borrower will be required to provide additional security or prepay a portion of the term loan in order to restore the required ratio. The Company is also required to maintain a debt service coverage ratio of at least 1.25 times and a debt-to-equity ratio of less than or equal to 1.0 times. In the case of any payment of a dividend by the Company, its debt service coverage ratio must be at least 1.50 times. As of December 30, 2022, the Company was in compliance with all of its financial covenants under the Term Loan Agreement.

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

As of December 30, 2022, there was $18.3 million outstanding under the term loan.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income taxes	6 Months Ended
Income taxes	Dec. 30, 2022
Income Tax Disclosure [Abstract]
Income taxes	Income taxes As of December 30, 2022 and June 24, 2022, the liability for uncertain tax positions including accrued interest and penalties was $0.8 million and $1.6 million, respectively. The Company expects the estimated amount of liability associated with its uncertain tax positions to decrease within the next 12 months due to the expiration of statutes of limitations with respect to these positions. The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2015 to 2021 remain open to examination by U.S. federal and state, and foreign tax authorities. The Company’s income tax is recognized based on the best estimate of the expected annual effective tax rate for the full financial year of each entity in the Company, adjusted for discrete items arising in that quarter. If the Company’s estimated annual effective tax rate changes, the Company makes a cumulative adjustment in that quarter. The effective tax rate for the Company for the three months ended December 30, 2022 and December 24, 2021 was 1.7% and 2.4%, respectively, of net income. The decrease was primarily due to an increase in income not subject to tax during the second quarter of fiscal year 2023 as compared to the same period in fiscal year 2022. The effective tax rate for the Company for the six months ended December 30, 2022 and December 24, 2021 was 1.4% and 1.9%, respectively, of net income. The decrease was primarily due to an increase in income not subject to tax during the first half of fiscal year 2023 as compared to the same period in fiscal year 2022.

- 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

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+ Details

Share-based compensation

6 Months Ended

Dec. 30, 2022

Share-Based Payment Arrangement [Abstract]

Share-based compensation

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

The effect of recording share-based compensation expense for the three and six months ended December 30, 2022 and December 24, 2021 was as follows:


	Three Months Ended				Six Months Ended
(in thousands)	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Share-based compensation expense by type of award:
Restricted share units	$	3,999	$	3,671	$	8,900	$	8,595
Performance share units	2,776		3,015		5,598		7,383
Total share-based compensation expense	6,775		6,686		14,498		15,978
Tax effect on share-based compensation expense	—		—		—		—
Net effect on share-based compensation expense	$	6,775	$	6,686	$	14,498	$	15,978

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


	Three Months Ended				Six Months Ended
(in thousands)	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Cost of revenue	$	1,660	$	1,421	$	3,576	$	3,396
Selling, general and administrative expense	5,115		5,265		10,922		12,582
Total share-based compensation expense	$	6,775	$	6,686	$	14,498	$	15,978

The Company did not capitalize any share-based compensation expense as part of any asset costs during the three and six months ended December 30, 2022 and December 24, 2021.

Share-based award activity

On December 12, 2019, the Company’s shareholders approved Fabrinet’s 2020 Equity Incentive Plan (the “2020 Plan”). Upon the approval of the 2020 Plan, Fabrinet’s Amended and Restated 2010 Performance Incentive Plan (the “2010 Plan”) was simultaneously terminated. The 2020 Plan provides for the grant of equity awards thereunder with respect to (i) 1,700,000 ordinary shares, plus (ii) up to 1,300,000 ordinary shares that, as of immediately prior to the termination of the 2010 Plan, had been reserved but not issued pursuant to any awards granted under the 2010 Plan and are not subject to any awards thereunder. Upon termination of the 2010 Plan, 1,281,619 ordinary shares were reserved for issuance under the 2020 Plan pursuant to clause (ii) of the preceding sentence.

As of December 30, 2022, there were 362,057 restricted share units outstanding, 204,016 performance share units outstanding and 1,963,486 ordinary shares available for future grant under the 2020 Plan.

As of December 30, 2022, there were 41,996 restricted share units outstanding under the 2010 Plan. No ordinary shares are available for future grant under the 2010 Plan.

On November 2, 2017, the Company adopted the 2017 Inducement Equity Incentive Plan (the “2017 Inducement Plan”) with a reserve of 160,000 ordinary shares authorized for future issuance solely for the granting of inducement share options and equity awards to new employees. The 2017 Inducement Plan was adopted without shareholder approval in reliance on the “employment inducement exemption” provided under the New York Stock Exchange Listed Company Manual. As of December 30, 2022, there were no awards 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 24, 2022	459,626	$	75.14
Granted	148,830	$	119.14
Vested	(189,375)	$	64.23
Forfeited	(15,028)	$	89.86
Balance as of December 30, 2022	404,053	$	95.91


	Number of Shares	Weighted- Average Grant Date Fair Value Per Share
Balance as of June 25, 2021	641,875	$	55.74
Granted	154,893	$	102.70
Vested	(271,396)	$	50.74
Forfeited	(18,101)	$	68.49
Balance as of December 24, 2021	507,271	$	72.29

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 24, 2022	285,882	$	81.64
Granted	97,142	$	117.35
Vested	(179,008)	$	70.05
Forfeited	—	$	—
Balance as of December 30, 2022	204,016	$	108.81


	Number of Shares	Weighted- Average Grant Date Fair Value Per Share
Balance as of June 25, 2021	427,028	$	57.82
Granted	110,832	$	101.05
Vested	(190,213)	48.65
Forfeited	(52,097)	$	48.65
Balance as of December 24, 2021	295,550	$	81.55

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

As of December 30, 2022, there was $18.7 million and $12.2 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 and 1.3 years, respectively.

For the six months ended December 30, 2022 and December 24, 2021, the Company withheld an aggregate of 165,502 shares and 201,658 shares, respectively, upon the vesting of restricted share units and performance shares units, based upon the closing share price on the vesting date to settle employee tax withholding obligations. For the six months ended December 30, 2022 and December 24, 2021, the Company then remitted cash of $16.8 million and $19.5 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	6 Months Ended
Shareholders' equity	Dec. 30, 2022
Equity [Abstract]
Shareholders' equity	Shareholders’ equity Share capital Fabrinet’s authorized share capital is 500,000,000 ordinary shares, par value of $0.01 per ordinary share, and 5,000,000 preferred shares, par value of $0.01 per preferred share. For the three and six months ended December 30, 2022, Fabrinet issued 6,034 and 202,881 ordinary shares, respectively, upon the vesting of restricted share units and performance share units under the Equity Incentive Plans, net of shares withheld. For the three and six months ended December 24, 2021, Fabrinet issued 8,153 and 259,951 ordinary shares, respectively, upon the vesting of restricted share units and performance share units under the Equity Incentive Plans, net of shares withheld. All such issued shares are fully paid. Treasury shares In August 2017, the Company’s board of directors approved a share repurchase program to permit the Company to repurchase up to $30.0 million worth of its issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations. In February 2018, May 2019, August 2020 and August 2022, the Company’s board of directors approved an increase of $30.0 million, $50.0 million, $58.5 million and $78.7 million, respectively, to the original share repurchase authorization, bringing the aggregate authorization to $247.2 million. During the six months ended December 30, 2022, the Company repurchased 48,625 shares under the program at an average price per share (excluding other direct costs) of $104.94 totaling $5.1 million. As of December 30, 2022, the Company had a remaining authorization to repurchase up to $94.9 million worth of its ordinary shares under the share repurchase program. Shares repurchased under the share repurchase program are held as treasury shares.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

Accumulated other comprehensive income (loss)

6 Months Ended

Dec. 30, 2022

Equity [Abstract]

Accumulated other comprehensive income (loss)

The changes in AOCI for the six months ended December 30, 2022 and December 24, 2021 were as follows:


(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 24, 2022	$	(6,018)	$	(5,082)	$	(803)	$	(890)	$	(12,793)
Other comprehensive income before reclassification adjustment	(371)		12,588		—		162		12,379
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income	93		(2,618)		225		—		(2,300)
Tax effects	—		—		—		—		—
Other comprehensive income (loss)	$	(278)	$	9,970	$	225	$	162	$	10,079
Balance as of December 30, 2022	$	(6,296)	$	4,888	$	(578)	$	(728)	$	(2,714)


(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 25, 2021	$	308	$	(4,504)	$	(1,425)	$	(645)	$	(6,266)
Other comprehensive income before reclassification adjustment	(1,173)		2,552		—		(164)		1,215
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income	13		(475)		324		—		(138)
Tax effects	—		—		—		—		—
Other comprehensive income (loss)	$	(1,160)	$	2,077	$	324	$	(164)	$	1,077
Balance as of December 24, 2021	$	(852)	$	(2,427)	$	(1,101)	$	(809)	$	(5,189)

Commitments and contingencies	6 Months Ended
Commitments and contingencies	Dec. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Bank guarantees As of December 30, 2022 and June 24, 2022, there were outstanding bank guarantees on behalf of the Company's subsidiary in Thailand for electricity usage and other normal business expenses totaling $1.5 million and $1.4 million, respectively, or Thai baht 53.0 million and 50.2 million, respectively. As of June 24, 2022, there was an outstanding bank guarantee on behalf of the Company's subsidiary in the PRC to support the subsidiary's operations totaling Renminbi 1.0 million, which bank guarantee was backed by cash collateral of $0.1 million. This bank guarantee was released in December 2022. In addition, there were other immaterial bank guarantees on behalf of the Company's subsidiary in the U.K. to support its operations. Purchase obligations Purchase obligations represent legally binding commitments to purchase inventory and other commitments made in the normal course of business to meet operational requirements. Although open purchase orders are considered enforceable and legally binding, their terms generally give the Company the option to cancel, reschedule and/or adjust its requirements based on its business needs prior to the delivery of goods or performance of services. Obligations to purchase inventory and other commitments are generally expected to be fulfilled within one year. As of December 30, 2022, the Company had a purchase obligation and other commitments to third parties of $1.16 billion. Capital expenditures As of December 30, 2022, the Company had total capital expenditure commitments to third parties of $27.7 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

6 Months Ended

Dec. 30, 2022

Segment Reporting [Abstract]

Business segments and geographic information

Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is Fabrinet’s Chief Executive Officer. As of December 30, 2022, the Company operated and internally managed a single operating segment. Accordingly, the Company does not accumulate discrete information with respect to separate product lines and does not have separate reportable segments.

For the Company’s revenues by geographic region, see “Revenue by Geographic Area and End Market” in Note 3.

The following table presents long-lived assets by the country in which they are based:


(in thousands)	December 30, 2022		June 24, 2022
Long-Lived Assets:
Thailand	$	253,287	$	240,750
U.S.	25,937		25,938
China	18,118		19,686
Israel	3,361		4,025
Others	1,579		1,878

Total	$	302,282	$	292,277

Significant customers

The Company had three customers that each contributed to 10% or more of the Company's total trade accounts receivable as of December 30, 2022 and June 24, 2022.

- 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
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+ Details

Accounting policies (Policies)	6 Months Ended
Accounting policies (Policies)	Dec. 30, 2022
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements for Fabrinet as of December 30, 2022 and for the three and six months ended December 30, 2022 and December 24, 2021 include normal recurring adjustments necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or "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 24, 2022. The balance sheet as of June 24, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and six months ended December 30, 2022 may not be indicative of results for the year ending June 30, 2023 or any future periods.
Use of Estimates	Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of total revenues and expenses during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, allowance for expected credit losses, income taxes, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that the Company's estimates or assumptions prove to be different from actual results, adjustments will be made in subsequent periods to reflect more current information. Additionally, the extent to which the evolving COVID-19 pandemic impacts the Company’s unaudited condensed consolidated financial statements will depend on a number of factors, including the magnitude and duration of the pandemic. These estimates may change, as new events occur and additional information is obtained, or based upon the occurrence of other factors related to the COVID-19 pandemic that could result in material impacts to the Company's unaudited condensed consolidated financial statements in future reporting periods.
Fiscal years	Fiscal years The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. The three months ended December 30, 2022 and December 24, 2021 consisted of 13 weeks. The six months ended December 30, 2022 and December 24, 2021 consisted of 27 weeks and 26 weeks, respectively. Fiscal year 2023 will comprise 53 weeks and will end on June 30, 2023.
Adoption of New Accounting Standards	Adoption of New Accounting StandardsIn November 2021, the Financial Accounting Standard Board issued Accounting Standards Update ("ASU") 2021-10, “Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance,” which requires annual disclosures that increase the transparency of transactions involving government assistance, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. The amendments in this update are effective for all entities within the ASU's scope for financial statements issued for annual periods beginning after December 15, 2021. The Company adopted this standard in the first quarter of fiscal year 2023 with no material impact on its unaudited condensed consolidated financial statements.
Contract Assets and Liabilities	Contract Assets and Liabilities A contract asset is recognized when the Company has recognized revenues prior to generating an invoice for payment. Contract assets are classified separately within the unaudited condensed consolidated balance sheets and transferred to accounts receivable when rights to payment become unconditional. A contract liability is recognized when the Company has advance payment arrangements with customers. The contract liabilities balance is normally recognized as revenue within six months.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

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+ Details

Revenues from contracts with customers (Tables)

6 Months Ended

Dec. 30, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue by Geographical Regions

The following table presents total revenues by geographic region:


(in thousands, except percentages)	Three Months Ended December 30, 2022		As a % of Total Revenues		Six Months Ended December 30, 2022		As a % of Total Revenues
North America
U.S.	$	319,918			$	664,998
Others (1)	4,033				7,657
Total revenue in North America	323,951		48.5	%	672,655		50.8	%
Asia-Pacific and others
India	82,178				162,211
Israel	59,893				97,170
Malaysia	50,390				99,714
Hong Kong	39,723				72,195
China	26,480				49,544
Thailand	16,098				28,714
Japan	11,737				22,085
Others	1,901				5,061
Total revenue in Asia-Pacific and others	288,400		43.1	%	536,694		40.5	%
Europe
U.K.	30,316				63,148
Germany	13,129				26,443
Ireland (2)	143				262
Others	12,717				24,883
Total revenue in Europe	$	56,305	8.4	%	$	114,736	8.7	%
Total revenue	$	668,656	100.0	%	$	1,324,085	100.0	%


(in thousands, except percentages)	Three Months Ended December 24, 2021		As a % of Total Revenues		Six Months Ended December 24, 2021		As a % of Total Revenues
North America
U.S.	$	243,720			$	488,994
Others (1)	3,557				4,873
Total revenue in North America	247,277		43.6	%	493,867		44.5	%
Asia-Pacific and others
India	74,121				139,054
Malaysia	60,369				112,118
Hong Kong	23,206				44,237
Israel	22,801				50,434
Japan	15,832				30,809
China	14,146				27,781
Others	11,565				23,790
Total revenue in Asia-Pacific and others	222,040		39.2	%	428,223		38.6	%
Europe
Ireland (2)	54,900				104,384
U.K.	22,941				42,519
Germany	8,985				17,410
Others	10,490				23,552
Total revenue in Europe	$	97,316	17.2	%	$	187,865	16.9	%
Total revenue	$	566,633	100.0	%	$	1,109,955	100.0	%

(1)Others includes revenues from external customers based in our country of domicile, the Cayman Islands, which for each year presented is $0.

(2)Due to change in bill-to-location for a certain customer.

Schedule of Revenues by End Market

The following table presents revenues by end market:


(in thousands, except percentages)	Three Months Ended December 30, 2022		As a % of Total Revenues		Six Months Ended December 30, 2022		As a % of Total Revenues
Optical communications	$	506,056	75.7	%	$	1,003,617	75.8	%
Lasers, sensors and other	162,600		24.3	%	320,468		24.2	%
Total	$	668,656	100.0	%	$	1,324,085	100.0	%


(in thousands, except percentages)	Three Months Ended December 24, 2021		As a % of Total Revenues		Six Months Ended December 24, 2021		As a % of Total Revenues
Optical communications	$	450,783	79.6	%	$	878,084	79.1	%
Lasers, sensors and other	115,850		20.4	%	231,871		20.9	%
Total	$	566,633	100.0	%	$	1,109,955	100.0	%

Schedule of Activity in the Company's Contract Assets and Liabilities

The following tables summarize the activity in the Company’s contract assets and contract liabilities during the six months ended December 30, 2022:


(in thousands)	Contract Assets
Beginning balance, June 24, 2022	$	13,464
Revenue recognized	31,601
Amounts collected or invoiced	(31,487)
Ending balance, December 30, 2022	$	13,578


(in thousands)	Contract Liabilities
Beginning balance, June 24, 2022	$	1,982
Advance payment received during the period	12,515
Revenue recognized	(10,861)
Ending balance, December 30, 2022	$	3,636

Earnings per ordinary share (Tables)

6 Months Ended

Dec. 30, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Ordinary Share

Earnings per ordinary share was calculated as follows:


	Three Months Ended				Six Months Ended
(in thousands, except per share data)	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Net income attributable to shareholders	$	63,157	$	48,879	$	127,772	$	93,530
Weighted-average number of ordinary shares outstanding	36,589		37,017		36,558		36,947
Incremental shares arising from the assumed vesting of restricted share units and performance share units	350		535		290		493
Weighted-average number of ordinary shares for diluted earnings per ordinary share	36,939		37,552		36,848		37,440
Basic earnings per ordinary share	$	1.73	$	1.32	$	3.50	$	2.53
Diluted earnings per ordinary share	$	1.71	$	1.30	$	3.47	$	2.50

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

6 Months Ended

Dec. 30, 2022

Cash and Cash Equivalents [Abstract]

Summary of Components of Cash, Cash Equivalents, and Short-Term Investments

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


					Fair Value
(in thousands)	Carrying Cost		Unrealized Gain/ (Loss)		Cash and Cash Equivalents		Marketable Securities		Other Investments
As of December 30, 2022
Cash	$	236,504	$	—	$	236,504	$	—	$	—
Cash equivalents	14,325		—		14,325		—		—
Liquidity funds	30,127		—		—		—		30,127
Corporate debt securities	242,902		(5,991)		—		236,911		—
U.S. agency and U.S. treasury securities	10,045		(305)		—		9,740		—
Total	$	533,903	$	(6,296)	$	250,829	$	246,651	$	30,127
As of June 24, 2022
Cash	$	187,630	$	—	$	187,630	$	—	$	—
Cash equivalents	10,367		(1)		10,366		—		—
Liquidity funds	31,477		—		—		—		31,477

Corporate debt securities	234,689		(5,671)		—		229,018		—
U.S. agency and U.S. treasury securities	20,007		(345)		—		19,662		—
Total	$	484,170	$	(6,017)	$	197,996	$	248,680	$	31,477

Schedule of Available-for-Sale Securities Based on Stated Effective Maturities


	December 30, 2022				June 24, 2022
(in thousands)	Carrying Cost		Fair Value		Carrying Cost		Fair Value
Due within one year	$	102,598	$	102,106	$	101,976	$	101,400
Due between one to five years	180,476		174,672		184,197		178,757
Total	$	283,074	$	276,778	$	286,173	$	280,157

Fair value of financial instruments (Tables)

6 Months Ended

Dec. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of 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
(in thousands)	Level 1		Level 2			Level 3		Total
As of December 30, 2022
Assets
Cash equivalents	$	—	$	14,325		$	—	$	14,325
Liquidity funds	—		30,127			—		30,127
Corporate debt securities	—		236,911			—		236,911
U.S. agency and U.S. treasury securities	—		9,740			—		9,740
Derivative assets – current portion	—		5,835		(1)	—		5,835
Derivative assets – non-current portion	—		37		(2)	—		37
Total	$	—	$	296,975		$	—	$	296,975
Liabilities
Derivative liabilities – current portion	$	—	$	(764)		$	—	$	(764)

Total	$	—	$	(764)	(3)	$	—	$	(764)


	Fair Value Measurements at Reporting Date Using
(in thousands)	Level 1		Level 2			Level 3		Total
As of June 24, 2022
Assets
Cash equivalents	$	—	$	10,366		$	—	$	10,366
Liquidity funds	—		31,477			—		31,477
Corporate debt securities	—		229,018			—		229,018
U.S. agency and U.S. treasury securities	—		19,662			—		19,662
Derivative assets – current portion	—		110		(4)	—		110
Total	$	—	$	290,633		$	—	$	290,633
Liabilities
Derivative liabilities – current portion	$	—	$	(7,345)		$	—	$	(7,345)
Derivative liabilities – non-current portion	—		(234)			—		(234)
Total	$	—	$	(7,579)	(5)	$	—	$	(7,579)

(1)Foreign currency forward contracts with an aggregate notional amount of $126.0 million and an interest rate swap agreement with a notional amount of $64.2 million.

(2)Interest rate swap agreement with notional amount of $60.9 million.

(3)Foreign currency forward contracts with an aggregate notional amount of $4.0 million and 0.8 million Canadian dollars and an interest rate swap agreement with a notional amount of $60.9 million.

(4)Interest rate swap agreement with a notional amount of $64.2 million.

(5)Foreign currency forward contracts with an aggregate notional amount of $135.0 million and 0.5 million Canadian dollars and an interest rate swap agreement with a notional amount of $60.9 million.

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


		Three Months Ended				Six Months Ended
(in thousands)	Financial statements line item	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Derivatives gain (loss) recognized in other comprehensive income (loss):
Foreign currency forward contracts	Other comprehensive income	$	14,754	$	3,685	$	11,762	$	1,549
Interest rate swaps	Other comprehensive income	310		595		826		1,003
Total derivatives gain (loss) recognized in other comprehensive income (loss)		$	15,064	$	4,280	$	12,588	$	2,552
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Foreign currency forward contracts	Cost of revenues	$	5,534	$	2,984	$	9,328	$	5,099
Foreign currency forward contracts	SG&A	230		124		390		212
Foreign currency forward contracts	Foreign exchange loss, net	(9,485)		(3,849)		(11,990)		(5,273)
Interest rate swaps	Interest expense	(155)		(245)		(346)		(513)
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings		$	(3,876)	$	(986)	$	(2,618)	$	(475)
Change in net unrealized gain (loss) on derivatives instruments		$	11,188	$	3,294	$	9,970	$	2,077

Schedule of Derivative Financial Instruments

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


	December 30, 2022				June 24, 2022
(in thousands)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Derivatives not designated as hedging instruments
Foreign currency forward and option contracts	$	683	$	(39)	$	—	$	(1,561)

Derivatives designated as hedging instruments
Foreign currency forward contracts	4,725		—		—		(4,821)
Interest rate swaps	464		(725)		110		(1,197)
Derivatives, gross balances	$	5,872	$	(764)	$	110	$	(7,579)

Schedule of Derivative Financial Instruments in the Unaudited Condensed Consolidated Balance Sheets

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


Derivative Financial Instruments			Balance Sheet line item

Fair Value of Derivative Assets			Other current assets, Other non-current assets


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

- 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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-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959

+ Details

Inventories (Tables)

6 Months Ended

Dec. 30, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory


(in thousands)	As of December 30, 2022		As of June 24, 2022
Raw materials	$	187,005	$	275,730
Work in progress	294,453		217,638
Finished goods	24,238		15,203
Goods in transit	30,840		48,574
Total inventories	$	536,536	$	557,145

Leases (Tables)

6 Months Ended

Dec. 30, 2022

Leases [Abstract]

Schedule of Operating Lease Liabilities

As of December 30, 2022, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2023 (remaining six months)	$	1,236
2024	1,297
2025	49


Total undiscounted lease payments	2,582
Less imputed interest	(101)
Total present value of lease liabilities	$	2,481	(1)

(1)Includes current portion of operating lease liabilities of $2.0 million.

Summary of Additional Information Related to Operating and Finance Lease

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


	As of December 30, 2022		As of June 24, 2022
Weighted-average remaining lease term (in years)	1.4		1.8
Weighted-average discount rate	3.5	%	3.4	%

Schedule of Supplemental Cash Flow and Other Information Related to Leases


	Three Months Ended				Six Months Ended
(in thousands)	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	661	$	709	$	1,302	$	1,398
Financing cash flows from finance leases	$	3	$	—	$	5	$	—
ROU assets obtained in exchange for lease liabilities	$	69	$	—	$	69	$	38

Intangibles (Tables)

6 Months Ended

Dec. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

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


(in thousands)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation Adjustment		Net
As of December 30, 2022
Software	$	11,046	$	(8,262)	$	—	$	2,784
Customer relationships	4,373		(3,784)		(54)		535

Total intangibles	$	15,419	$	(12,046)	$	(54)	$	3,319


(in thousands)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation Adjustment		Net
As of June 24, 2022
Software	$	10,484	$	(7,681)	$	—	$	2,803
Customer relationships	4,373		(3,610)		(58)		705
Backlog	119		(119)		—		—
Total intangibles	$	14,976	$	(11,410)	$	(58)	$	3,508

Schedule of Weighted-Average Remaining Life of Intangible Assets

The weighted-average remaining life of software and customer relationships was:


(years)	As of December 30, 2022	As of June 24, 2022
Software	3.4	3.8
Customer relationships	2.8	3.1
Total intangibles	3.5	3.8

Schedule of Estimated Future Amortization of Intangibles Assets


(in thousands)
2023 (remaining six months)	$	666
2024	1,201
2025	725
2026	508
2027	192
Thereafter	27
Total	$	3,319

Borrowings (Tables)

6 Months Ended

Dec. 30, 2022

Debt Disclosure [Abstract]

Schedule of 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:


(in thousands of U.S. dollars)
Rate	Conditions	Maturity	As of December 30, 2022		As of June 24, 2022
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	$	18,281	$	27,421
Less: Current portion			(12,188)		(12,188)
Less: Unamortized debt issuance costs, non-current portion			(15)		(31)
Long-term borrowings, non-current portion, net			$	6,078	$	15,202

(1)The Company has entered into interest rate swaps that effectively fix a series of future interest payments on its term loans. Refer to Note 6.

Schedule of Movements of Long-Term Loans

The movements of long-term borrowings for the six months ended December 30, 2022 and December 24, 2021 were as follows:


	Six Months Ended
(in thousands)	December 30, 2022		December 24, 2021
Opening balance	$	27,421	$	39,609

Repayments during the period	(9,140)		(6,094)
Closing balance	$	18,281	$	33,515

Schedule of Future Maturities of Long-Term Debt

As of December 30, 2022, future maturities of long-term borrowings during each fiscal year were as follows:


(in thousands)
2023 (remaining six months)	$	6,094
2024	12,187


Total	$	18,281

- Definition

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

+ References

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+ Details

Share-based compensation (Tables)

6 Months Ended

Dec. 30, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Effect of Recording Share-Based Compensation Expense

The effect of recording share-based compensation expense for the three and six months ended December 30, 2022 and December 24, 2021 was as follows:


	Three Months Ended				Six Months Ended
(in thousands)	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Share-based compensation expense by type of award:
Restricted share units	$	3,999	$	3,671	$	8,900	$	8,595
Performance share units	2,776		3,015		5,598		7,383
Total share-based compensation expense	6,775		6,686		14,498		15,978
Tax effect on share-based compensation expense	—		—		—		—
Net effect on share-based compensation expense	$	6,775	$	6,686	$	14,498	$	15,978

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

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


	Three Months Ended				Six Months Ended
(in thousands)	December 30, 2022		December 24, 2021		December 30, 2022		December 24, 2021
Cost of revenue	$	1,660	$	1,421	$	3,576	$	3,396
Selling, general and administrative expense	5,115		5,265		10,922		12,582
Total share-based compensation expense	$	6,775	$	6,686	$	14,498	$	15,978

Schedule of 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 24, 2022	459,626	$	75.14
Granted	148,830	$	119.14
Vested	(189,375)	$	64.23
Forfeited	(15,028)	$	89.86
Balance as of December 30, 2022	404,053	$	95.91


	Number of Shares	Weighted- Average Grant Date Fair Value Per Share
Balance as of June 25, 2021	641,875	$	55.74
Granted	154,893	$	102.70
Vested	(271,396)	$	50.74
Forfeited	(18,101)	$	68.49
Balance as of December 24, 2021	507,271	$	72.29

Schedule of 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 24, 2022	285,882	$	81.64
Granted	97,142	$	117.35
Vested	(179,008)	$	70.05
Forfeited	—	$	—
Balance as of December 30, 2022	204,016	$	108.81


	Number of Shares	Weighted- Average Grant Date Fair Value Per Share
Balance as of June 25, 2021	427,028	$	57.82
Granted	110,832	$	101.05
Vested	(190,213)	48.65
Forfeited	(52,097)	$	48.65
Balance as of December 24, 2021	295,550	$	81.55

Accumulated other comprehensive income (loss) (Tables)

6 Months Ended

Dec. 30, 2022

Equity [Abstract]

Schedue of Changes in AOCI

The changes in AOCI for the six months ended December 30, 2022 and December 24, 2021 were as follows:


(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 24, 2022	$	(6,018)	$	(5,082)	$	(803)	$	(890)	$	(12,793)
Other comprehensive income before reclassification adjustment	(371)		12,588		—		162		12,379
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income	93		(2,618)		225		—		(2,300)
Tax effects	—		—		—		—		—
Other comprehensive income (loss)	$	(278)	$	9,970	$	225	$	162	$	10,079
Balance as of December 30, 2022	$	(6,296)	$	4,888	$	(578)	$	(728)	$	(2,714)


(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 25, 2021	$	308	$	(4,504)	$	(1,425)	$	(645)	$	(6,266)
Other comprehensive income before reclassification adjustment	(1,173)		2,552		—		(164)		1,215
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income	13		(475)		324		—		(138)
Tax effects	—		—		—		—		—
Other comprehensive income (loss)	$	(1,160)	$	2,077	$	324	$	(164)	$	1,077
Balance as of December 24, 2021	$	(852)	$	(2,427)	$	(1,101)	$	(809)	$	(5,189)

Business segments and geographic information (Tables)

6 Months Ended

Dec. 30, 2022

Segment Reporting [Abstract]

Schedule of Long-lived Assets by Geographic Areas

The following table presents long-lived assets by the country in which they are based:


(in thousands)	December 30, 2022		June 24, 2022
Long-Lived Assets:
Thailand	$	253,287	$	240,750
U.S.	25,937		25,938
China	18,118		19,686
Israel	3,361		4,025
Others	1,579		1,878

Total	$	302,282	$	292,277

Revenues from contracts with customers - Narrative (Details)	6 Months Ended
	Dec. 30, 2022 region
Revenue from Contract with Customer [Abstract]
Number of geographic regions	3

Revenues from contracts with customers - Schedule of Disaggregation of Revenue by Geographical Regions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 668,656	$ 566,633	$ 1,324,085	$ 1,109,955
Geographic concentration risk \| Revenue from contract with customer benchmark
Disaggregation of Revenue [Line Items]
Revenues, percentage	100.00%	100.00%	100.00%	100.00%
North America
Disaggregation of Revenue [Line Items]
Revenues	$ 323,951	$ 247,277	$ 672,655	$ 493,867
North America \| Geographic concentration risk \| Revenue from contract with customer benchmark
Disaggregation of Revenue [Line Items]
Revenues, percentage	48.50%	43.60%	50.80%	44.50%
U.S.
Disaggregation of Revenue [Line Items]
Revenues	$ 319,918	$ 243,720	$ 664,998	$ 488,994
Others
Disaggregation of Revenue [Line Items]
Revenues	4,033	3,557	7,657	4,873
CAYMAN ISLANDS
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Asia-Pacific and others
Disaggregation of Revenue [Line Items]
Revenues	$ 288,400	$ 222,040	$ 536,694	$ 428,223
Asia-Pacific and others \| Geographic concentration risk \| Revenue from contract with customer benchmark
Disaggregation of Revenue [Line Items]
Revenues, percentage	43.10%	39.20%	40.50%	38.60%
India
Disaggregation of Revenue [Line Items]
Revenues	$ 82,178	$ 74,121	$ 162,211	$ 139,054
Israel
Disaggregation of Revenue [Line Items]
Revenues	59,893	22,801	97,170	50,434
Malaysia
Disaggregation of Revenue [Line Items]
Revenues	50,390	60,369	99,714	112,118
Hong Kong
Disaggregation of Revenue [Line Items]
Revenues	39,723	23,206	72,195	44,237
China
Disaggregation of Revenue [Line Items]
Revenues	26,480	14,146	49,544	27,781
Thailand
Disaggregation of Revenue [Line Items]
Revenues	16,098		28,714
Japan
Disaggregation of Revenue [Line Items]
Revenues	11,737	15,832	22,085	30,809
Others
Disaggregation of Revenue [Line Items]
Revenues	1,901	11,565	5,061	23,790
Europe
Disaggregation of Revenue [Line Items]
Revenues	$ 56,305	$ 97,316	$ 114,736	$ 187,865
Europe \| Geographic concentration risk \| Revenue from contract with customer benchmark
Disaggregation of Revenue [Line Items]
Revenues, percentage	8.40%	17.20%	8.70%	16.90%
U.K.
Disaggregation of Revenue [Line Items]
Revenues	$ 30,316	$ 22,941	$ 63,148	$ 42,519
Germany
Disaggregation of Revenue [Line Items]
Revenues	13,129	8,985	26,443	17,410
Ireland
Disaggregation of Revenue [Line Items]
Revenues	143	54,900	262	104,384
Others
Disaggregation of Revenue [Line Items]
Revenues	$ 12,717	$ 10,490	$ 24,883	$ 23,552

Revenues from contracts with customers - Schedule of Revenues by End Market (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 668,656	$ 566,633	$ 1,324,085	$ 1,109,955
Revenue from contract with customer benchmark \| Geographic concentration risk
Disaggregation of Revenue [Line Items]
Revenues, percentage	100.00%	100.00%	100.00%	100.00%
Optical communications
Disaggregation of Revenue [Line Items]
Revenues	$ 506,056	$ 450,783	$ 1,003,617	$ 878,084
Optical communications \| Revenue from contract with customer benchmark \| Geographic concentration risk
Disaggregation of Revenue [Line Items]
Revenues, percentage	75.70%	79.60%	75.80%	79.10%
Lasers, sensors and other
Disaggregation of Revenue [Line Items]
Revenues	$ 162,600	$ 115,850	$ 320,468	$ 231,871
Lasers, sensors and other \| Revenue from contract with customer benchmark \| Geographic concentration risk
Disaggregation of Revenue [Line Items]
Revenues, percentage	24.30%	20.40%	24.20%	20.90%

- 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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Revenues from contracts with customers - Schedule of Activity in the Company's Contract Assets and Liabilities (Details) $ in Thousands	6 Months Ended
	Dec. 30, 2022 USD ($)
Contract Assets
Beginning balance, June 24, 2022	$ 13,464
Revenue recognized	31,601
Amounts collected or invoiced	(31,487)
Ending balance, December 30, 2022	13,578
Contract Liabilities
Beginning balance, June 24, 2022	1,982
Advance payment received during the period	12,515
Revenue recognized	(10,861)
Ending balance, December 30, 2022	$ 3,636

Earnings per ordinary share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Earnings Per Share [Abstract]
Net income attributable to shareholders	$ 63,157	$ 48,879	$ 127,772	$ 93,530
Weighted-average number of ordinary shares outstanding (in shares)	36,589	37,017	36,558	36,947
Incremental shares arising from the assumed vesting of restricted share units and performance share units (in shares)	350	535	290	493
Weighted-average number of ordinary shares for diluted earnings per ordinary share (in shares)	36,939	37,552	36,848	37,440
Basic earnings per ordinary share (in USD per share)	$ 1.73	$ 1.32	$ 3.50	$ 2.53
Diluted earnings per ordinary share (in USD per share)	$ 1.71	$ 1.30	$ 3.47	$ 2.50

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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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+ Details

Cash, cash equivalents and short-term investments - Summary of Components of Cash, Cash Equivalents, and Short-Term Investments (Details) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022	Dec. 24, 2021
Cash and Cash Equivalents [Line Items]
Carrying cost, total	$ 283,074	$ 286,173
Cash and cash equivalents and marketable securities, carrying cost	533,903	484,170
Unrealized Gain/ (Loss)	(6,296)	(6,017)
Cash and cash equivalents	250,829	197,996	$ 276,531
Marketable Securities	246,651	248,680
Other Investments	30,127	31,477
Cash
Cash and Cash Equivalents [Line Items]
Carrying Cost	236,504	187,630
Cash and cash equivalents	236,504	187,630
Cash equivalents
Cash and Cash Equivalents [Line Items]
Carrying Cost	14,325	10,367
Unrealized Gain/ (Loss)	0	(1)
Cash and cash equivalents	14,325	10,366
Liquidity funds
Cash and Cash Equivalents [Line Items]
Carrying Cost	30,127	31,477
Unrealized Gain/ (Loss)		0
Other Investments	30,127	31,477
Corporate debt securities
Cash and Cash Equivalents [Line Items]
Carrying cost, total	242,902	234,689
Unrealized Gain/ (Loss)	(5,991)	(5,671)
Marketable Securities	236,911	229,018
U.S. agency and U.S. treasury securities
Cash and Cash Equivalents [Line Items]
Carrying cost, total	10,045	20,007
Unrealized Gain/ (Loss)	(305)	(345)
Marketable Securities	$ 9,740	$ 19,662

Cash, cash equivalents and short-term investments - Narrative (Details)	6 Months Ended
	Dec. 30, 2022
Minimum
Cash, cash equivalents and marketable securities [Line Items]
Maturities period of marketable securities	3 months
Maximum
Cash, cash equivalents and marketable securities [Line Items]
Maturities period of marketable securities	3 years

Cash, cash equivalents and short-term investments - Schedule of Available-for-Sale Securities Based on Stated Effective Maturities (Details) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022
Investments Classified by Contractual Maturity Date [Line Items]
Carrying cost, total	$ 283,074	$ 286,173
Fair value, total	246,651	248,680
Carrying Cost
Investments Classified by Contractual Maturity Date [Line Items]
Carrying cost, due within one year	102,598	101,976
Carrying cost, due between one to five years	180,476	184,197
Fair Value
Investments Classified by Contractual Maturity Date [Line Items]
Fair value, due within one year	102,106	101,400
Fair value, due between one to five years	174,672	178,757
Fair value, total	$ 276,778	$ 280,157

Fair value of financial instruments - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Details) $ in Thousands, $ in Millions	Dec. 30, 2022 USD ($)	Dec. 30, 2022 CAD ($)	Jun. 24, 2022 USD ($)	Jun. 24, 2022 CAD ($)
Foreign currency forward contracts
Liabilities
Derivative assets, notional amount	$ 126,000	$ 0.8	$ 64,200
Derivative liabilities, notional amount	4,000		135,000	$ 0.5
Fair value, measurements, recurring
Assets
Derivative assets – current portion	5,835		110
Derivative assets – non-current portion	37
Total	296,975		290,633
Liabilities
Derivative liabilities – current portion	(764)		(7,345)
Derivative liabilities – non-current portion			234
Total	(764)		(7,579)
Fair value, measurements, recurring \| Interest rate swaps
Liabilities
Derivative assets, notional amount	64,200
Derivative liabilities, notional amount	60,900		60,900
Fair value, measurements, recurring \| Cash equivalents
Assets
Marketable securities	14,325		10,366
Fair value, measurements, recurring \| Liquidity funds
Assets
Marketable securities	30,127		31,477
Fair value, measurements, recurring \| Corporate debt securities
Assets
Marketable securities	236,911		229,018
Fair value, measurements, recurring \| U.S. agency and U.S. treasury securities
Assets
Marketable securities	9,740		19,662
Level 1 \| Fair value, measurements, recurring
Assets
Derivative assets – current portion	0		0
Derivative assets – non-current portion	0
Total	0		0
Liabilities
Derivative liabilities – current portion	0		0
Derivative liabilities – non-current portion			0
Total	0		0
Level 1 \| Fair value, measurements, recurring \| Cash equivalents
Assets
Marketable securities	0		0
Level 1 \| Fair value, measurements, recurring \| Liquidity funds
Assets
Marketable securities	0		0
Level 1 \| Fair value, measurements, recurring \| Corporate debt securities
Assets
Marketable securities	0		0
Level 1 \| Fair value, measurements, recurring \| U.S. agency and U.S. treasury securities
Assets
Marketable securities	0		0
Level 2 \| Fair value, measurements, recurring
Assets
Derivative assets – current portion	5,835		110
Derivative assets – non-current portion	37
Total	296,975		290,633
Liabilities
Derivative liabilities – current portion	(764)		(7,345)
Derivative liabilities – non-current portion			234
Total	(764)		(7,579)
Level 2 \| Fair value, measurements, recurring \| Cash equivalents
Assets
Marketable securities	14,325		10,366
Level 2 \| Fair value, measurements, recurring \| Liquidity funds
Assets
Marketable securities	30,127		31,477
Level 2 \| Fair value, measurements, recurring \| Corporate debt securities
Assets
Marketable securities	236,911		229,018
Level 2 \| Fair value, measurements, recurring \| U.S. agency and U.S. treasury securities
Assets
Marketable securities	9,740		19,662
Level 3 \| Fair value, measurements, recurring
Assets
Derivative assets – current portion	0		0
Derivative assets – non-current portion	0
Total	0		0
Liabilities
Derivative liabilities – current portion	0		0
Derivative liabilities – non-current portion			0
Total	0		0
Level 3 \| Fair value, measurements, recurring \| Cash equivalents
Assets
Marketable securities	0		0
Level 3 \| Fair value, measurements, recurring \| Liquidity funds
Assets
Marketable securities	0		0
Level 3 \| Fair value, measurements, recurring \| Corporate debt securities
Assets
Marketable securities	0		0
Level 3 \| Fair value, measurements, recurring \| U.S. agency and U.S. treasury securities
Assets
Marketable securities	$ 0		$ 0

Fair value of financial instruments - Narrative (Details) $ in Millions, $ in Millions	3 Months Ended		6 Months Ended		9 Months Ended
	Dec. 30, 2022 USD ($) contract	Dec. 24, 2021 USD ($)	Dec. 30, 2022 USD ($) contract	Dec. 24, 2021 USD ($)	Mar. 25, 2022 USD ($)	Dec. 30, 2022 CAD ($) contract	Jun. 24, 2022 USD ($) contract	Jun. 24, 2022 CAD ($) contract	Sep. 27, 2019 contract	Sep. 03, 2019	Jul. 25, 2018
Foreign Currency Fair Value Hedge Derivative [Line Items]
Fixed interest rate											2.86%
Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Loss from accumulated other comprehensive income expected to be reclassified			$ (4.7)		$ 4.8
Unrealized gain (loss) on derivatives	$ 4.2	$ 1.1	$ 4.0	$ 0.5
Foreign currency forward contracts \| Designated as hedging instrument \| Thailand, baht
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| contract	130		130			130	135,000	135,000
Derivative, notional amount	$ 130.0		$ 130.0				$ 135.0
Foreign currency forward contracts \| Designated as hedging instrument \| Canada, dollars
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| contract	1		1			1	1	1
Derivative, notional amount						$ 0.8		$ 0.5
Interest rate swaps
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| contract	2		2			2	2	2	2
Derivative, notional amount	$ 125.1		$ 125.1				$ 125.1
Loss from accumulated other comprehensive income expected to be reclassified			$ (0.1)		$ 0.5
Interest rate swaps \| Bank of Ayudhya Public Company \| Bank of America Credit Facility
Foreign Currency Fair Value Hedge Derivative [Line Items]
Debt instrument stated interest percentage										4.36%

Fair value of financial instruments - Schedule of Impacts of Derivative Gain (Loss) of Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Derivatives gain (loss) recognized in other comprehensive income (loss):
Total derivatives gain (loss) recognized in other comprehensive income (loss)	$ 15,064	$ 4,280	$ 12,588	$ 2,552
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings	(3,876)	(986)	(2,618)	(475)
Change in net unrealized gain (loss) on derivatives instruments	11,188	3,294	9,970	2,077
Foreign currency forward contracts \| Cost of revenues
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings	5,534	2,984	9,328	5,099
Foreign currency forward contracts \| SG&A
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings	230	124	390	212
Foreign currency forward contracts \| Foreign exchange loss, net
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings	(9,485)	(3,849)	(11,990)	(5,273)
Foreign currency forward contracts \| Other comprehensive income
Derivatives gain (loss) recognized in other comprehensive income (loss):
Total derivatives gain (loss) recognized in other comprehensive income (loss)	14,754	3,685	11,762	1,549
Interest rate swaps \| Interest expense
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings	(155)	(245)	(346)	(513)
Interest rate swaps \| Other comprehensive income
Derivatives gain (loss) recognized in other comprehensive income (loss):
Total derivatives gain (loss) recognized in other comprehensive income (loss)	$ 310	$ 595	$ 826	$ 1,003

Fair value of financial instruments - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022
Derivatives designates as hedging instruments:
Derivative assets, gross balances	$ 5,872	$ 110
Derivative liabilities, gross balances	(764)	(7,579)
Foreign currency forward and option contracts
Derivatives not designated as hedging instruments
Derivative Assets	683	0
Derivative Liabilities	(39)	(1,561)
Foreign currency forward contracts
Derivatives designates as hedging instruments:
Derivative Assets	4,725	0
Derivative Liabilities	0	(4,821)
Interest rate swaps
Derivatives designates as hedging instruments:
Derivative Assets	464	110
Derivative Liabilities	$ (725)	$ (1,197)

Inventories (Details) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 187,005	$ 275,730
Work in progress	294,453	217,638
Finished goods	24,238	15,203
Goods in transit	30,840	48,574
Total inventories	$ 536,536	$ 557,145

Leases - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
Leases - Narrative (Details) $ in Millions	Dec. 30, 2022 USD ($) Agreements	Dec. 24, 2021 USD ($)	Dec. 30, 2022 USD ($) lease Agreements	Dec. 24, 2021 USD ($)
Number of intercompany lease \| lease			1
Operating lease rental expense \| $	$ 0.6	$ 0.7	$ 1.2	$ 1.4
Number finance lease agreement, minimis amount \| Agreements	1		1
Minimum
Lessee operating lease option to extend term			1 year
Maximum
Lessee operating lease option to extend term			5 years

Leases - Schedule of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022
Leases [Abstract]
2023 (remaining six months)	$ 1,236
2024	1,297
2025	49
Total undiscounted lease payments	2,582
Less imputed interest	(101)
Total present value of lease liabilities	2,481
Operating lease liabilities, current portion	$ 2,005	$ 2,319

Leases - Summary of Additional Information Related to Operating and Finance Lease (Details)	Dec. 30, 2022	Jun. 24, 2022
Leases [Abstract]
Weighted-average remaining lease term (in years)	1 year 4 months 24 days	1 year 9 months 18 days
Weighted-average discount rate	3.50%	3.40%

Leases - Schedule of Supplemental Cash Flow and Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 661	$ 709	$ 1,302	$ 1,398
Financing cash flows from finance leases	3	0	5	0
ROU assets obtained in exchange for lease liabilities	$ 69	$ 0	$ 69	$ 38

Intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Sep. 30, 2022	Dec. 30, 2022	Jun. 24, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 15,419		$ 15,419	$ 14,976
Accumulated Amortization	(12,046)		(12,046)	(11,410)
Foreign Currency Translation Adjustment	(54)	$ (58)
Net	3,319		3,319	3,508
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,046		11,046	10,484
Accumulated Amortization	(8,262)		(8,262)	(7,681)
Net	2,784		2,784	2,803
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,373		4,373	4,373
Accumulated Amortization	(3,784)		(3,784)	(3,610)
Foreign Currency Translation Adjustment		$ (58)	(54)
Net	$ 535		$ 535	705
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount				119
Accumulated Amortization				$ (119)

Intangibles - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Intangibles - Narrative (Details) - USD ($) $ in Millions	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to intangibles	$ 0.4	$ 0.4	$ 0.8	$ 0.8

Intangibles - Schedule of Weighted-Average Remaining Life of Intangible Assets (Details)	6 Months Ended	9 Months Ended
	Dec. 30, 2022	Mar. 25, 2022
Software
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	3 years 4 months 24 days	3 years 9 months 18 days
Customer relationships
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	2 years 9 months 18 days	3 years 1 month 6 days
Total intangibles
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	3 years 6 months	3 years 9 months 18 days

Intangibles - Schedule of Estimated Future Amortization of Intangibles Assets (Details) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (remaining six months)	$ 666
2024	1,201
2025	725
2026	508
2027	192
Thereafter	27
Total	$ 3,319	$ 3,508

Borrowings - Schedule of Total Borrowings, Including Revolving and Long-Term Borrowings (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 30, 2022	Jun. 24, 2022
Debt Instrument [Line Items]
Long-term borrowings, current portion	$ 12,188	$ 12,188
Less: Unamortized debt issuance costs, current portion	(32)	(32)
Long-term borrowings, current portion, net	12,156	12,156
Less: Current portion	(12,188)	(12,188)
Less: Unamortized debt issuance costs, non-current portion	(15)	(31)
Long-term borrowings, non-current portion, net	6,078	15,202
Loan payable due June 2024
Debt Instrument [Line Items]
Long-term debt	$ 18,281	$ 27,421
Loan payable due June 2024 \| LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.35%

Borrowings - Schedule of Movements of Long-Term Loans (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021
Debt Disclosure [Abstract]
Opening balance	$ 27,421	$ 39,609
Repayments during the period	(9,140)	(6,094)
Closing balance	$ 18,281	$ 33,515

Borrowings - Schedule of Future Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022	Dec. 24, 2021	Jun. 25, 2021
Debt Disclosure [Abstract]
2023 (remaining six months)	$ 6,094
2024	12,187
Total	$ 18,281	$ 27,421	$ 33,515	$ 39,609

Borrowings - Narrative (Details) $ in Thousands, ฿ in Millions	3 Months Ended	6 Months Ended
	Dec. 30, 2022 USD ($)	Dec. 30, 2022 USD ($)	Jun. 24, 2022 USD ($)	Sep. 27, 2019 USD ($)	Sep. 03, 2019 USD ($)	Aug. 20, 2019 USD ($)	Aug. 20, 2019 THB (฿)
Loan payable due June 2024
Line of Credit Facility [Line Items]
Long term debt outstanding	$ 18,281	$ 18,281	$ 27,421
Loan payable due June 2024 \| LIBOR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.35%
Bank of Ayudhya Public Company Limited
Line of Credit Facility [Line Items]
Debt instrument, periodic payment		$ 3,000
Interest expense on debt	$ 500	$ 1,100
Bank of Ayudhya Public Company Limited \| Term loan agreement
Line of Credit Facility [Line Items]
Loan to value ratio	0.65	0.65
Minimum service coverage ratio	1.25	1.25
Maximum debt to equity ratio	1.0	1.0
Service coverage ratio, minimum at payment of a dividend	1.50	1.50
Credit facility agreement \| Bank of Ayudhya Public Company Limited
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity				$ 3,600		$ 160,900	฿ 110.0
Term loan agreement
Line of Credit Facility [Line Items]
Long term debt outstanding	$ 18,300	$ 18,300
Term loan agreement \| Bank of Ayudhya Public Company Limited
Line of Credit Facility [Line Items]
Debt instrument, principal amount					$ 60,900

Income taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Income taxes (Details) - USD ($) $ in Millions	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021	Jun. 24, 2022
Income Tax Disclosure [Abstract]
Liability for uncertain tax positions including accrued interest and penalties	$ 0.8		$ 0.8		$ 1.6
Corporate effective income tax rate	1.70%	2.40%	1.40%	1.90%

Share-based compensation - Summary of Effect of Recording Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Share-based compensation expense by type of award:
Restricted share units	$ 3,999	$ 3,671	$ 8,900	$ 8,595
Performance share units	2,776	3,015	5,598	7,383
Total share-based compensation expense	6,775	6,686	14,498	15,978
Tax effect on share-based compensation expense	0	0	0	0
Net effect on share-based compensation expense	$ 6,775	$ 6,686	$ 14,498	$ 15,978

Share-based compensation - Schedule of Share-Based Compensation Expense Recorded in Condensed Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 6,775	$ 6,686	$ 14,498	$ 15,978
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	1,660	1,421	3,576	3,396
Selling, general and administrative expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 5,115	$ 5,265	$ 10,922	$ 12,582

Share-based compensation - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021	Dec. 12, 2019	Nov. 02, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation costs capitalized	$ 0	$ 0	$ 0	$ 0
Shares authorized for future issuance (in shares)					1,281,619
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes (in shares)			165,502	201,658
Tax withholdings related to net share settlement of restricted share units			$ 16,796,000	$ 19,481,000
Equity Incentive 2020 plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares available for grant (in shares)					1,700,000
Shares reserved for future issuance (in shares)					1,300,000
Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares available for grant (in shares)	0		0
Equity Incentive 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for future issuance (in shares)						160,000
Share units outstanding (in shares)	111,347		111,347
Restricted share units \| Equity Incentive 2020 plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	362,057		362,057
Restricted share units \| Stock Plan 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	1,963,486		1,963,486
Restricted share units \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	41,996		41,996
Restricted share units \| Equity Incentive 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	0		0
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		$ 18,700,000
Unrecognized compensation expense, weighted-average period for recognition			2 years 8 months 12 days
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 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	204,016		204,016
Performance share units \| Equity Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 12,200,000		$ 12,200,000
Unrecognized compensation expense, weighted-average period for recognition			1 year 3 months 18 days
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%

Share-based compensation - Schedule of Restricted Share Unit Activity (Details) - Stock Plan 2010 and 2017 - Restricted share units - $ / shares	6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021
Number of Shares
Number of share units, beginning balance (in shares)	459,626	641,875
Number of share units, granted (in shares)	148,830	154,893
Number of share units, vested (in shares)	(189,375)	(271,396)
Number of share units, forfeited (in shares)	(15,028)	(18,101)
Number of share units, ending balance (in shares)	404,053	507,271
Weighted- Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, beginning balance (in USD per share)	$ 75.14	$ 55.74
Weighted-average grant date fair value per share, granted (in USD per share)	119.14	102.70
Weighted-average grant date fair value per share, vested (in USD per share)	64.23	50.74
Weighted-average grant date fair value per share, forfeited (in USD per share)	89.86	68.49
Weighted-average grant date fair value per share, ending balance (in USD per share)	$ 95.91	$ 72.29

Share-based compensation - Schedule of Performance Share Unit Activity (Details) - Stock Plan 2010 and 2017 - Performance share units - $ / shares	6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021
Number of Shares
Number of share units, beginning balance (in shares)	285,882	427,028
Number of share units, granted (in shares)	97,142	110,832
Number of share units, vested (in shares)	(179,008)	(190,213)
Number of share units, forfeited (in shares)	0	(52,097)
Number of share units, ending balance (in shares)	204,016	295,550
Weighted- Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, beginning balance (in USD per share)	$ 81.64	$ 57.82
Weighted-average grant date fair value per share, granted (in USD per share)	117.35	101.05
Weighted-average grant date fair value per share, vested (in USD per share)	70.05	48.65
Weighted-average grant date fair value per share, forfeited (in USD per share)	0	48.65
Weighted-average grant date fair value per share, ending balance (in USD per share)	$ 108.81	$ 81.55

Shareholders' equity (Details) - USD ($)	3 Months Ended		6 Months Ended
Shareholders' equity (Details) - USD ($)	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021	Aug. 31, 2022	Jun. 24, 2022	Aug. 31, 2020	May 31, 2019	Feb. 28, 2018	Aug. 31, 2017
Shareholders Equity [Line Items]
Ordinary shares, authorized share capital (in shares)	500,000,000		500,000,000			500,000,000
Ordinary shares, par value (in USD per share)	$ 0.01		$ 0.01			$ 0.01
Preferred shares, shares authorized (in shares)	5,000,000		5,000,000			5,000,000
Preferred shares, par value (in USD per share)	$ 0.01		$ 0.01			$ 0.01
Share repurchase program, approved amount										$ 30,000,000
Share repurchase program, increase in shares authorized for repurchase					$ 78,700,000		$ 58,500,000	$ 50,000,000	$ 30,000,000
Treasury stock, carrying basis	$ 94,900,000		$ 94,900,000			$ 247,200,000
Treasury stock acquired (in shares)	1,648	38,269	48,625	38,269
Treasury stock acquired, average cost (in USD per share)			$ 104.94
Treasury stock, value, acquired	$ 204,000	$ 4,433,000	$ 5,104,000	$ 4,433,000
1999 and 2010 Stock Plan
Shareholders Equity [Line Items]
Ordinary shares issued upon vesting of restricted shares (in shares)	6,034	8,153	202,881	259,951

Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 24, 2021	Dec. 30, 2022	Dec. 24, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 1,302,366	$ 1,146,002	$ 1,253,682	$ 1,112,520
Other comprehensive income before reclassification adjustment			12,379	1,215
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income			(2,300)	(138)
Tax effects			0	0
Total other comprehensive income (loss), net of tax	12,344	2,473	10,079	1,077
Ending balance	1,384,131	1,199,191	1,384,131	1,199,191
Unrealized net (Losses)/Gains on Available-for-sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(6,018)	308
Other comprehensive income before reclassification adjustment			(371)	(1,173)
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income			93	13
Tax effects			0	0
Total other comprehensive income (loss), net of tax			(278)	(1,160)
Ending balance	(6,296)	(852)	(6,296)	(852)
Unrealized net (Losses)/Gains on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(5,082)	(4,504)
Other comprehensive income before reclassification adjustment			12,588	2,552
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income			(2,618)	(475)
Tax effects			0	0
Total other comprehensive income (loss), net of tax			9,970	2,077
Ending balance	4,888	(2,427)	4,888	(2,427)
Retirement benefit plan - Prior service cost
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(803)	(1,425)
Other comprehensive income before reclassification adjustment			0	0
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income			225	324
Tax effects			0	0
Total other comprehensive income (loss), net of tax			225	324
Ending balance	(578)	(1,101)	(578)	(1,101)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(890)	(645)
Other comprehensive income before reclassification adjustment			162	(164)
Amounts reclassified out of AOCI to the unaudited condensed consolidated statements of operations and comprehensive income			0	0
Tax effects			0	0
Total other comprehensive income (loss), net of tax			162	(164)
Ending balance	(728)	(809)	(728)	(809)
AOCI Attributable to parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(15,058)	(7,662)	(12,793)	(6,266)
Total other comprehensive income (loss), net of tax	12,344	2,473	10,079	1,077
Ending balance	$ (2,714)	$ (5,189)	$ (2,714)	$ (5,189)

Commitments and contingencies (Details) ฿ in Millions, ¥ in Millions, $ in Millions	Dec. 30, 2022 USD ($)	Dec. 30, 2022 THB (฿)	Jun. 24, 2022 USD ($)	Jun. 24, 2022 THB (฿)	Jun. 24, 2022 CNY (¥)
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of the company	$ 1.5	฿ 53.0	$ 1.4	฿ 50.2
Financial Guarantee
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by banks on behalf of the company \| ¥					¥ 1.0
Inventories
Commitments and Contingencies Disclosure [Line Items]
Outstanding commitment to third parties	1,160.0
Bank guarantees
Commitments and Contingencies Disclosure [Line Items]
Amount of cash collateral			$ 0.1
Thailand
Commitments and Contingencies Disclosure [Line Items]
Outstanding commitment to third parties	$ 27.7

Business segments and geographic information - Schedule of Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Dec. 30, 2022	Jun. 24, 2022
Segment Reporting Information [Line Items]
Long-lived assets	$ 302,282	$ 292,277
Thailand
Segment Reporting Information [Line Items]
Long-lived assets	253,287	240,750
U.S.
Segment Reporting Information [Line Items]
Long-lived assets	25,937	25,938
China
Segment Reporting Information [Line Items]
Long-lived assets	18,118	19,686
Israel
Segment Reporting Information [Line Items]
Long-lived assets	3,361	4,025
Others
Segment Reporting Information [Line Items]
Long-lived assets	$ 1,579	$ 1,878

Business segments and geographic information - Narrative (Details) - customer	Dec. 30, 2022	Jun. 24, 2022
Segment Reporting [Abstract]
Number of customers that contributed to more than 10% of trade accounts receivable	3	3