0001408710-23-000028 | 10-K | XBRL Viewer

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Financial instruments	12 Months Ended
Financial instruments	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Financial instruments	Financial instruments Objectives and significant terms and conditions The principal financial risks faced by the Company are foreign currency risk and interest rate risk. The Company borrows at floating rates of interest to finance its operations. A minority of sales and purchases and a majority of labor and overhead costs are entered into in foreign currencies. In order to manage the risks arising from fluctuations in currency exchange rates, the Company uses derivative instruments. Trading for speculative purposes is prohibited under Company policies. The Company enters into short-term foreign currency forward and option contracts to manage foreign currency exposures associated with certain assets, liabilities and other forecasted foreign currency transactions and may designate these instruments as hedging instruments. The foreign currency forward and option contracts generally have maturities of up to twelve months. All foreign currency exchange contracts are recognized on the consolidated balance sheets at fair value. Gain or loss on the Company’s derivative instruments generally offset the assets, liabilities under master netting arrangement and transactions economically hedged. Foreign currency risk The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Thai baht, RMB and GBP. For the Company’s foreign currency assets and liabilities, see “Additional Financial Disclosures” in Item 7. Interest Rate Risk The Company’s principal interest bearing assets are time deposits and short-term investments with maturities of three years or less held with high quality financial institutions. The Company’s principal interest bearing liabilities are bank loans which bear interest at floating rates. The Company entered into interest rate swap agreements (the “Swap Agreements”) to manage this risk and increase the profile of the Company’s debt obligation. The terms of the Swap Agreements allow the Company to effectively convert the floating interest rate to a fixed interest rate. This locks the variable in interest expenses associated with our floating rate borrowings and results in fixed interest expenses, which is unsusceptible to market rate increase. The Company designated the Swap Agreements as a cash flow hedge, and they qualify for hedge accounting because the hedges are highly effective. While the Company intend to continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective, the changes in the fair value of the derivatives used as hedges would be reflected in our earnings. From September 27, 2019, any gains or losses related to these outstanding interest rate swaps will be recorded in accumulated other comprehensive income in the consolidated balance sheets, with subsequent reclassification to interest expense when settled.

Intangibles - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to intangibles	$ 1.3	$ 1.6	$ 1.5

Earnings per ordinary share

12 Months Ended

Jun. 30, 2023

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 year using the treasury stock method. Dilutive ordinary equivalent shares consist of share options, restricted share units and performance share units.

Earnings per ordinary share was calculated as follows:


	Years Ended
(in thousands, except per share data)	June 30, 2023		June 24, 2022		June 25, 2021
Net income attributable to shareholders	$	247,913	$	200,380	$	148,341
Weighted-average number of ordinary shares outstanding (thousands of shares)	36,515		36,876		36,872
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares)	340		518		683
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)	36,855		37,394		37,555
Basic earnings per ordinary share	$	6.79	$	5.43	$	4.02
Diluted earnings per ordinary share	$	6.73	$	5.36	$	3.95
Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1)	—		—		53

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

Accumulated other comprehensive income (loss) ("AOCI") - Schedule of Changes in AOCI, Net of Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,253,682	$ 1,112,520	$ 974,409
Other comprehensive income (loss) before reclassification	5,015	(6,427)
Amounts reclassified from AOCI	(337)	(100)
Tax effects	0	0
Total other comprehensive income (loss), net of tax	4,678	(6,527)	(5,119)
Ending balance	1,468,658	1,253,682	1,112,520
Unrealized Gains (Losses) on Available-for-sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(6,018)	308
Other comprehensive income (loss) before reclassification	2,646	(6,339)
Amounts reclassified from AOCI	93	13
Tax effects	0	0
Total other comprehensive income (loss), net of tax	2,739	(6,326)
Ending balance	(3,279)	(6,018)	308
Unrealized Gains (Losses) on Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(5,082)	(4,504)
Other comprehensive income (loss) before reclassification	2,444	157
Amounts reclassified from AOCI	(903)	(735)
Tax effects	0	0
Total other comprehensive income (loss), net of tax	1,541	(578)
Ending balance	(3,541)	(5,082)	(4,504)
Retirement benefit plan - Prior service cost
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(803)	(1,425)
Other comprehensive income (loss) before reclassification	0	0
Amounts reclassified from AOCI	473	622
Tax effects	0	0
Total other comprehensive income (loss), net of tax	473	622
Ending balance	(330)	(803)	(1,425)
Foreign Currency Translation Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(890)	(645)
Other comprehensive income (loss) before reclassification	(75)	(245)
Amounts reclassified from AOCI	0	0
Tax effects	0	0
Total other comprehensive income (loss), net of tax	(75)	(245)
Ending balance	(965)	(890)	(645)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(12,793)	(6,266)
Ending balance	$ (8,115)	$ (12,793)	$ (6,266)

Fair value of financial instruments - Schedule Impacts of Derivative Gain (Loss) of Cash Flow Hedges (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Derivatives gain (loss) recognized in other comprehensive income (loss):
Total derivatives loss (gain) recognized in other comprehensive income	$ 2,444	$ 157
Derivatives loss (gain) reclassified from accumulated other comprehensive income into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings	(903)	(735)
Change in net unrealized gain (loss) on derivative instruments	1,541	(578)	$ (5,106)
Foreign currency forward contracts \| Other comprehensive income
Derivatives gain (loss) recognized in other comprehensive income (loss):
Total derivatives loss (gain) recognized in other comprehensive income	1,142	(2,304)
Foreign currency forward contracts \| Cost of revenues
Derivatives loss (gain) reclassified from accumulated other comprehensive income into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings	7,995	7,283
Foreign currency forward contracts \| Selling, general and administrative expenses
Derivatives loss (gain) reclassified from accumulated other comprehensive income into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings	334	303
Foreign currency forward contracts \| Foreign exchange gain (loss), net
Derivatives loss (gain) reclassified from accumulated other comprehensive income into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings	(8,644)	(7,384)
Interest rate swaps \| Other comprehensive income
Derivatives gain (loss) recognized in other comprehensive income (loss):
Total derivatives loss (gain) recognized in other comprehensive income	1,302	2,461
Interest rate swaps \| Interest expense
Derivatives loss (gain) reclassified from accumulated other comprehensive income into earnings:
Total derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings	$ (588)	$ (937)

Severance liabilities - Schedule of Severance Liabilities Recognized in Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Retirement Benefits [Abstract]
Non-current assets	$ 138	$ 134
Non-current liabilities	$ 22,159	$ 18,384

- Definition

Amount of asset, recognized in statement of financial position, for overfunded defined benefit pension and other postretirement plans.

+ References + Details

Cash, cash equivalents and short-term investments - Additional Information (Details) - USD ($)	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022
Cash, cash equivalents and marketable securities [Line Items]
Maturities period of marketable securities (or less)	3 months
Effective interest rate on short term bank deposits	2.40%	0.50%
Percentage of cash and cash equivalents held by parent company	69.00%	59.00%
Gain (losses) from sales and maturities of available-for-sale securities	$ (100,000)
Impairment losses	0	0
Certificate of deposits
Cash, cash equivalents and marketable securities [Line Items]
Debt securities, available-for-sale	44,600,000	$ 0
Bank Time Deposits
Cash, cash equivalents and marketable securities [Line Items]
Debt securities, available-for-sale	$ 20,000,000

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Statement of Stockholders' Equity [Abstract]
Repurchased shares (in shares)	488,477	628,428	239,486

Revenues from contracts with customers - Additional Information (Details) - USD ($)	Jun. 30, 2023	Jun. 24, 2022
Revenue from Contract with Customer [Abstract]
Impairment for contract assets	$ 0	$ 0
Contract assets

Commitments and contingencies (Details) $ in Thousands, ฿ in Millions, ¥ in Millions	Jun. 30, 2023 USD ($)	Jun. 30, 2023 THB (฿)	Jun. 24, 2022 USD ($)	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	$ 1,500	฿ 53.0	$ 1,400	฿ 50.2
Long-term restricted cash	0		149
Inventories
Commitments and Contingencies Disclosure [Line Items]
Outstanding commitment to third parties	1,060,000
Bank guarantees
Commitments and Contingencies Disclosure [Line Items]
Amount of cash collateral			$ 100
China
Commitments and Contingencies Disclosure [Line Items]
Long-term restricted cash \| ¥					¥ 1.0
Thailand
Commitments and Contingencies Disclosure [Line Items]
Outstanding commitment to third parties	$ 8,800

Trade accounts receivable, net (Tables)

12 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Schedule of Trade Accounts Receivable, Net


(in thousands)	As of June 30, 2023		As of June 24, 2022
Trade accounts receivable	$	532,732	$	453,941
Less: Allowance for doubtful account	(965)		(1,271)
Trade accounts receivable, net	$	531,767	$	452,670

Cash, cash equivalents and short-term investments - Schedule of Cash, Cash Equivalents, and Short-Term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents and marketable securities, carrying cost	$ 553,745	$ 484,170
Unrealized Gain/ (Loss)	(3,277)	(6,017)
Cash and cash equivalents	231,368	197,996	$ 302,969
Marketable Securities	277,996	248,680
Other Investments	41,104	31,477
Cash
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	230,967	187,630
Cash and cash equivalents	230,967	187,630
Cash equivalents
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	401	10,367
Unrealized Gain/ (Loss)		(1)
Cash and cash equivalents	401	10,366
Liquidity funds
Cash, cash equivalents and marketable securities [Line Items]
Carrying Cost	41,104	31,477
Other Investments	41,104	31,477
Certificates of deposit and time deposits
Cash, cash equivalents and marketable securities [Line Items]
Carrying cost, total	64,278
Unrealized Gain/ (Loss)	329
Marketable Securities	64,607
Corporate debt securities
Cash, cash equivalents and marketable securities [Line Items]
Carrying cost, total	161,453	234,689
Unrealized Gain/ (Loss)	(3,375)	(5,671)
Marketable Securities	158,078	229,018
U.S. agency and U.S. Treasury securities
Cash, cash equivalents and marketable securities [Line Items]
Carrying cost, total	55,542	20,007
Unrealized Gain/ (Loss)	(231)	(345)
Marketable Securities	$ 55,311	$ 19,662

Accumulated other comprehensive income (loss) ("AOCI") - Schedule of Pre-Tax Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amounts reclassified from AOCI	$ (337)	$ (100)
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amounts reclassified from AOCI	(337)	(100)
Reclassification out of Accumulated Other Comprehensive Income \| Interest income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on available-for-sale securities	93	13
Reclassification out of Accumulated Other Comprehensive Income \| Cost of revenues
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on derivative instruments	7,995	7,283
Reclassification out of Accumulated Other Comprehensive Income \| Selling, general and administrative expenses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on derivative instruments	334	303
Retirement benefit plan – Prior service cost	473	622
Reclassification out of Accumulated Other Comprehensive Income \| Foreign exchange gain (loss), net
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on derivative instruments	(8,644)	(7,384)
Reclassification out of Accumulated Other Comprehensive Income \| Interest expense
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on derivative instruments	$ (588)	$ (937)

Property, plant and equipment, net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 42,500	$ 37,200	$ 34,700
Property, plant and equipment written-off, fully depreciated cost	16,500	25,100	16,300
Impairment reserve for property, plant and equipment	573	573
Capitalized interest expense related to long-term loan		900
Property, Plant and Equipment
Property, Plant and Equipment [Line Items]
Impairment reserve for property, plant and equipment	$ 600	$ 600	$ 800

Income taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021	Jun. 26, 2020
Income Taxes [Line Items]
Exempted income from corporate income tax	$ 43,679	$ 35,982	$ 24,853
Valuation allowance	3,824	4,934	2,061	$ 3,728
Deferred tax liabilities	4,819	5,550
Accrued interest and penalties related to uncertain tax positions	100
Recorded (reversed) interest and penalties		100	400
CAYMAN ISLANDS
Income Taxes [Line Items]
Exempted income from corporate income tax	$ 196,500	171,000	115,800
Thailand
Income Taxes [Line Items]
Tax exempt income	50.00%
Income tax exemption, period	15 years
Reduced corporate income tax rate	20.00%
Unremitted earnings	$ 135,100	135,500
Unrecognized deferred tax liabilities	12,300	11,300
China
Income Taxes [Line Items]
Deferred tax liabilities	$ 1,900	1,400
China \| Subsidiaries
Income Taxes [Line Items]
Corporate income tax rate	25.00%
U.S.
Income Taxes [Line Items]
Valuation allowance	$ 0	0		2,100
Valuation allowance released			2,100
U.S. \| Subsidiaries
Income Taxes [Line Items]
Corporate income tax rate	21.00%
U.K.
Income Taxes [Line Items]
Valuation allowance	$ 1,600	$ 4,900	$ 2,100	$ 1,600
U.K. \| Subsidiaries
Income Taxes [Line Items]
Corporate income tax rate	25.00%
Israel \| Subsidiaries
Income Taxes [Line Items]
Corporate income tax rate	23.00%

Severance liabilities - Schedule of Principal Weighted Average Actuarial Assumptions Used to Determine Benefit Costs (Details)	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on assets	2.10%	2.10%	2.30%
Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	0.20%	0.20%	0.40%
Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.90%	2.90%	3.10%

Subsequent Event	12 Months Ended
Subsequent Event	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventIn August 2023, the Company’s board of directors approved the repurchase of up to an additional $47.6 million of the Company’s outstanding ordinary shares, bringing the aggregate authorization under the Company’s existing share repurchase program to $294.8 million, with $100.0 million currently remaining.

Fair value of financial instruments - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Details) $ in Thousands, $ in Millions	Jun. 30, 2023 USD ($)	Jun. 30, 2023 CAD ($)	Jun. 24, 2022 USD ($)	Jun. 24, 2022 CAD ($)
Assets
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Liabilities
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses	Accrued expenses	Accrued expenses	Accrued expenses
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]			Other non-current liabilities	Other non-current liabilities
Foreign currency forward contracts
Liabilities
Derivative assets, notional amount	$ 3,000	$ 0.2	$ 64,200
Derivative liabilities, notional amount	140,000	$ 0.2	135,000	$ 0.5
Interest rate swaps
Liabilities
Derivative liabilities, notional amount			125,100
Fair value, measurements, recurring
Assets
Derivative assets - current portion	221		110
Total	319,722		290,633
Liabilities
Derivative liabilities - current portion	(5,236)		(7,345)
Derivative liabilities - non-current portion			(234)
Total	(5,236)		(7,579)
Fair value, measurements, recurring \| Interest rate swaps
Liabilities
Derivative assets, notional amount	60,900
Derivative liabilities, notional amount			60,900
Fair value, measurements, recurring \| Cash equivalents
Assets
Marketable securities	401		10,366
Fair value, measurements, recurring \| Liquidity funds
Assets
Marketable securities	41,104		31,477
Fair value, measurements, recurring \| Certificates of deposit and time deposits
Assets
Marketable securities	64,607
Fair value, measurements, recurring \| Corporate debt securities
Assets
Marketable securities	158,078		229,018
Fair value, measurements, recurring \| U.S. agency and U.S. Treasury securities
Assets
Marketable securities	55,311		19,662
Level 1 \| Fair value, measurements, recurring
Assets
Derivative assets - current portion	0		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 \| Certificates of deposit and time deposits
Assets
Marketable securities	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	221		110
Total	319,722		290,633
Liabilities
Derivative liabilities - current portion	(5,236)		(7,345)
Derivative liabilities - non-current portion			(234)
Total	(5,236)		(7,579)
Level 2 \| Fair value, measurements, recurring \| Cash equivalents
Assets
Marketable securities	401		10,366
Level 2 \| Fair value, measurements, recurring \| Liquidity funds
Assets
Marketable securities	41,104		31,477
Level 2 \| Fair value, measurements, recurring \| Certificates of deposit and time deposits
Assets
Marketable securities	64,607
Level 2 \| Fair value, measurements, recurring \| Corporate debt securities
Assets
Marketable securities	158,078		229,018
Level 2 \| Fair value, measurements, recurring \| U.S. agency and U.S. Treasury securities
Assets
Marketable securities	55,311		19,662
Level 3 \| Fair value, measurements, recurring
Assets
Derivative assets - current portion	0		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 \| Certificates of deposit and time deposits
Assets
Marketable securities	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

Revenues from contracts with customers (Tables)

12 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

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

The following tables summarize the activity in the Company’s contract liabilities during the years ended June 30, 2023 and June 24, 2022:


(in thousands)	Contract Liabilities
Balance as of June 25, 2021	$	1,680
Advance payment received during the year	5,927
Revenue recognized	(5,625)
Balance as of June 24, 2022	1,982
Advance payment received during the year	14,124
Revenue recognized	(13,070)
Balance as of June 30, 2023	$	3,036

Schedule of Disaggregation of Revenue by Geographical Regions

The following table presents total revenues by geographic regions:


(in thousands, except percentages)	Year ended June 30, 2023		As a % of Total Revenues		Year ended June 24, 2022		As a % of Total Revenues		Year ended June 25, 2021		As a % of Total Revenues
North America	$	1,269,965	48.0	%	$	1,114,504	49.3	%	$	887,536	47.2	%
Asia-Pacific	1,143,510		43.2		838,051		37.0		668,597		35.6
Europe	231,762		8.8		309,669		13.7		323,217		17.2
	$	2,645,237	100.0	%	$	2,262,224	100.0	%	$	1,879,350	100.0	%


	Years Ended
(in thousands, except percentages)	June 30, 2023		June 24, 2022		June 25, 2021
North America
U.S.	1,247,422		1,099,244		884,862
Others (1)	22,543		15,260		2,674
Total revenue in North America	1,269,965		1,114,504		887,536
Asia-Pacific and others
Israel	341,025		101,058		107,584
India	325,478		278,117		152,249
Malaysia	162,599		212,286		157,213
Hong Kong	132,136		83,651		87,235
China	73,094		55,201		51,597
Thailand	58,850		36,489		27,081
Japan	41,105		60,121		69,779

Others	9,223		11,128		15,859
Total revenue in Asia-Pacific and others	1,143,510		838,051		668,597
Europe

U.K.	125,082		90,921		60,516
Germany	54,732		40,794		28,163
Ireland	647		133,225		193,103
Others	51,301		44,729		41,435
Total revenue in Europe	$	231,762	$	309,669	$	323,217
Total revenue	$	2,645,237	$	2,262,224	$	1,879,350

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

Schedule of Revenues by End Market

The following table presents revenues by end market.


(in thousands, except percentages)	Year ended June 30, 2023		As a % of Total Revenues		Year ended June 24, 2022		As a % of Total Revenues		Year ended June 25, 2021		As a % of Total Revenues
Optical communications	$	2,008,347	75.9	%	$	1,782,799	78.8	%	$	1,441,338	76.7	%
Lasers, sensors and other	636,890		24.1		479,425		21.2		438,012		23.3
Total	$	2,645,237	100.0	%	$	2,262,224	100.0	%	$	1,879,350	100.0	%

Fair value of financial instruments - Additional Information (Details) $ in Millions, $ in Millions	12 Months Ended
	Jun. 30, 2023 USD ($) contract	Jun. 24, 2022 USD ($) contract	Jun. 30, 2023 CAD ($) contract	Jun. 24, 2022 CAD ($) contract	Sep. 27, 2019 contract	Sep. 03, 2019	Jul. 25, 2018
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative fixed interest rate							2.86%
Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative liabilities, notional amount	$ 140.0	$ 135.0	$ 0.2	$ 0.5
Derivative, notional amount	143.0	$ 135.0
Gains or losses from accumulated other comprehensive income expected to be reclassified	$ (4.0)
Foreign currency forward contracts \| Designated as hedging instrument \| United States of America, Dollars
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of foreign currency derivatives held \| contract	143	135	143	135
Foreign currency forward contracts \| Designated as hedging instrument \| Canada, Dollars
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of foreign currency derivatives held \| contract	1	1	1	1
Foreign currency forward contracts \| Not designated as hedging instrument
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gain (loss) on derivatives	$ 0.4	$ (0.8)
Interest rate swaps
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative liabilities, notional amount		$ 125.1
Derivative, notional amount	60.9
Gains or losses from accumulated other comprehensive income expected to be reclassified	$ 0.4
Number of interest rate derivatives held \| contract	1	2	1	2	2
Interest rate swaps \| Bank of ayudhya public company \| Bank of america credit facility
Foreign Currency Fair Value Hedge Derivative [Line Items]
Debt fixed interest percentage						4.36%

Fair value of financial instruments

12 Months Ended

Jun. 30, 2023

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 June 30, 2023
Assets
Cash equivalents	$	—	$	401		$	—	$	401
Liquidity funds	—		41,104			—		41,104
Certificates of deposit and time deposits	—		64,607			—		64,607
Corporate debt securities	—		158,078			—		158,078
U.S. agency and U.S. Treasury securities	—		55,311			—		55,311
Derivative assets - current portion	—		221		(1)	—		221

Total	$	—	$	319,722		$	—	$	319,722
Liabilities
Derivative liabilities - current portion	$	—	$	(5,236)		$	—	$	(5,236)

Total	$	—	$	(5,236)	(2)	$	—	$	(5,236)


	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		(3)	—		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)	(4)	$	—	$	(7,579)

(1)Foreign currency forward contracts with an aggregate notional amount of $3.0 million and 0.2 million Canadian dollars and interest rate swap agreement with notional amount of $60.9 million.

(2)Foreign currency forward contracts with an aggregate notional amount of $140.0 million.

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

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

The Company may also enter into non-designated foreign currency forward and option contracts to provide an offset to the re-measurement of foreign currency denominated assets and liabilities and to hedge certain forecasted exposures. Changes in the fair value of these non-designated derivatives are recorded through foreign exchange gain (loss), net in the consolidated statements of operations and comprehensive income.

As of June 30, 2023, the Company had 143 outstanding U.S. dollar foreign currency forward contracts against Thai baht with an aggregate notional amount of $143.0 million and with maturity dates ranging from July 2023 through January 2024, and one foreign currency contract with a notional amount of 0.2 million Canadian dollars and with a maturity date in September 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 with 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 June 30, 2023, the hedging relationship over foreign currency forward contracts which 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 30, 2023, the amount in AOCI that is expected to be reclassified into earnings within 12 months as loss was $4.0 million.

During the year ended June 30, 2023 and June 24, 2022, the Company included an unrealized gain of $0.4 million and unrealized loss of $0.8 million, respectively, from changes in fair value of foreign currency forward and option contracts which were not designated for hedge accounting in earnings as foreign exchange gain (loss), net in the 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 June 30, 2023 and June 24, 2022, the Company had one and two outstanding interest rate swap agreements with an aggregate notional amount of $60.9 million, and $125.1 million, respectively.

On July 25, 2018, Fabrinet Thailand entered into an interest rate swap agreement to effectively convert the floating interest rate of the term loan under the Company's previous syndicated senior credit facility agreement to a fixed interest rate of 2.86% per annum through the scheduled maturity of the term loan in June 2023 (see Note 13). 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 Bank of Ayudhya Public Company Limited, and on September 10, 2019, the Company repaid in full the outstanding term loan under the Company's previous syndicated senior credit facility agreement (see Note 13) 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 Bank of Ayudhya Public Company Limited 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 Bank of Ayudhya Public Company Limited. The combination of these

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

As of June 30, 2023, the amount in AOCI that is expected to be reclassified into earnings within 12 months as gain is $0.4 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 consolidated statements of operations and other comprehensive income:


		Year Ended
(in thousands)	Financial statements line item	June 30, 2023		June 24, 2022
Derivatives gain (loss) recognized in other comprehensive income (loss):
Foreign currency forward contracts	Other comprehensive income	$	1,142	$	(2,304)
Interest rate swaps	Other comprehensive income	1,302		2,461
Total derivatives loss (gain) recognized in other comprehensive income		$	2,444	$	157
Derivatives loss (gain) reclassified from accumulated other comprehensive income into earnings:
Foreign currency forward contracts	Cost of revenues	$	7,995	$	7,283
Foreign currency forward contracts	Selling, general and administrative expenses	334		303
Foreign currency forward contracts	Foreign exchange gain (loss), net	(8,644)		(7,384)
Interest rate swaps	Interest expense	(588)		(937)
Total derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings		$	(903)	$	(735)
Change in net unrealized gain (loss) on derivative instruments		$	1,541	$	(578)

Fair value of derivatives

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


	June 30, 2023				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	$	2	$	(1,256)	$	—	$	(1,561)

Derivatives designated as hedging instruments
Foreign currency forward contracts	4		(3,980)		—		(4,821)
Interest rate swaps	215		—		110		(1,197)
Derivatives, gross balances	221		(5,236)		110		(7,579)

The Company presents its derivatives at gross fair values in the consolidated balance sheets.

The Company recorded the fair value of derivative financial instruments in the 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

Revenues from contracts with customers - Schedule of Disaggregation of Revenue by Geographical Regions (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Revenues	$ 2,645,237	$ 2,262,224	$ 1,879,350
Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenues, percentage	100.00%	100.00%	100.00%
North America
Revenues	$ 1,269,965	$ 1,114,504	$ 887,536
North America \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenues, percentage	48.00%	49.30%	47.20%
U.S.
Revenues	$ 1,247,422	$ 1,099,244	$ 884,862
Others
Revenues	22,543	15,260	2,674
CAYMAN ISLANDS
Revenues	0	0	0
Asia-Pacific
Revenues	$ 1,143,510	$ 838,051	$ 668,597
Asia-Pacific \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenues, percentage	43.20%	37.00%	35.60%
Israel
Revenues	$ 341,025	$ 101,058	$ 107,584
India
Revenues	325,478	278,117	152,249
Malaysia
Revenues	162,599	212,286	157,213
Hong Kong
Revenues	132,136	83,651	87,235
China
Revenues	73,094	55,201	51,597
Thailand
Revenues	58,850	36,489	27,081
Japan
Revenues	41,105	60,121	69,779
Others
Revenues	9,223	11,128	15,859
Europe
Revenues	$ 231,762	$ 309,669	$ 323,217
Europe \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Revenues, percentage	8.80%	13.70%	17.20%
U.K.
Revenues	$ 125,082	$ 90,921	$ 60,516
Germany
Revenues	54,732	40,794	28,163
Ireland
Revenues	647	133,225	193,103
Others
Revenues	$ 51,301	$ 44,729	$ 41,435

Borrowings

12 Months Ended

Jun. 30, 2023

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 June 30, 2023		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	12,188		27,421
Less: Current portion			(12,188)		(12,188)
Less: Unamortized debt issuance costs—non-current portion			—		(31)
Long-term borrowings, non-current portion, net			$	—	$	15,202

(1)The Company entered into interest rate swaps that effectively fix a series of future interest payments on its term loans. Refer to Note 7.

The movements of long-term borrowings were as follows for the years ended June 30, 2023 and June 24, 2022:


	Years ended
(in thousands)	June 30, 2023		June 24, 2022
Opening balance	$	27,421	$	39,609

Repayments during the period	(15,233)		(12,188)
Closing balance	$	12,188	$	27,421

Credit facilities agreements:

On August 20, 2019, Fabrinet Thailand (the “Borrower”) and Bank of Ayudhya Public Company Limited (the “Bank”) entered into a credit facility agreement (the “2019 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 2019 Credit Facility Agreement and may increase or decrease any facility amount in its sole discretion.

Under the 2019 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. On March 9, 2023, the Borrower and the Bank amended the Term Loan Agreement to replace the interest rate reference from LIBOR to the Secured Overnight Financing Rate ("SOFR") effective from September 29, 2023. 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 year ended June 30, 2023, the Company recorded $2.1 million of interest expense in connection with this term loan, including the impact from interest rate swaps.

Any borrowings under the 2019 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 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 June 30, 2023, 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 June 30, 2023, there was $12.2 million outstanding under the term loan.

On March 9, 2023, Fabrinet Thailand and the Parent Company (the “Borrowers”) and the Bank entered into a credit facility agreement (the “2023 Credit Facility Agreement”), which provides a facility of $55.0 million.

Any borrowings under the 2023 Credit Facility Agreement are secured by land and buildings owned by the Borrowers in the Pathumthani and Chonburi Provinces in Thailand.

Under the 2023 Credit Facility Agreement, the Borrowers are required to maintain a loan to value of the mortgaged real property ratio of not greater than 60%. The Borrowers are 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 June 30, 2023, there was no amount outstanding under the 2023 Credit Facility Agreement.

- 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://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Summary of significant accounting policies

12 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of significant accounting policies

Principles of consolidation

The Company utilizes a 52-53 week fiscal year ending on the last Friday in June. Fiscal years 2023, 2022, and 2021 ended on June 30, 2023, June 24, 2022, and June 25, 2021, respectively, and consisted of 53 weeks, 52 weeks and 52 weeks, respectively.

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

Use of estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amount of total revenues and expenses during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, 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.

Reclassifications

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

The reclassifications have been made to the consolidated balance sheet as of June 24, 2022 and the consolidated statement of cash flows for the year ended June 24, 2022 and June 25, 2021 as follows:


	June 24, 2022
(in thousands)	As previously reported	Reclassification	After reclassification
Consolidated Balance Sheet
Current assets
Trade accounts receivable	439,330	13,340	452,670
Contract assets	13,464	(13,340)	124






Consolidated Statement of Cash Flows
Changes in operating assets and liabilities
Trade accounts receivable	(103,970)	(1,580)	(105,550)
Contract assets	(1,586)	1,580	(6)

Contract assets and contract liabilities are presented in the consolidated balance sheets under other current assets and other payables, respectively.


	June 25, 2021
(in thousands)	As previously reported	Reclassification	After reclassification
Consolidated Statement of Cash Flows
Changes in operating assets and liabilities
Trade accounts receivable	(63,810)	1,496	(62,314)
Contract assets	1,378	(1,496)	(118)

These reclassifications do not affect the Company’s net income or shareholders’ equity.

Foreign currency transactions and translation

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

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

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

Cash and cash equivalents

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

Short-term investments

Management determines the appropriate classification of its investments at the time of purchase and re-evaluates the designations at each balance sheet date. The maturities of the Company’s short-term investments generally range from three months to three years.

The short-term investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as available-for-sale with any unrealized gains and losses included in AOCI in the consolidated balance sheets. The Company determines realized gains or losses on sale of available-for-sale debt securities on a specific identification method and records such gains or losses as interest income in the consolidated statements of operations and comprehensive income.

Held-to-maturity debt securities require the use of the current expected credit losses (“CECL”) impairment model to assess the expected credit loss. According to the CECL model, the Company requires the immediate recognition of estimated expected credit losses over the life of the financial instrument through the allowance for credit losses account. The allowance for credit losses is a valuation account that is deducted from, or added to, the amortized cost basis of the financial asset to present the net amount expected to be collected on the financial asset. In determining expected credit losses, the Company considers relevant qualitative factors including, but not limited to, term and structure of the instrument, credit rating by rating agencies and historic credit losses adjusted for current conditions and reasonable and supportable forecasts.

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

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

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

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

Trade accounts receivable

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

Contract assets

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

Contract liabilities

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

Inventory

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

Leases

Operating leases

The Company determines if an arrangement contains a lease at inception. The Company applies the guidance in ASC 842 to determine whether a contract is, or contains, a lease. A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. Operating leases are included in operating lease right of use (“ROU”) assets and operating lease liabilities within the Company’s consolidated balance sheets. The Company rents certain real estate under agreements that are classified as operating leases.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives and initial direct costs incurred. Variable lease payments are expensed as incurred and are not included within the ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company does not account for lease components (e.g., fixed payments including rent) separately from the non-lease components (e.g., common-area maintenance costs).

Finance leases

Finance leases are accounted for in a manner similar to financed purchases. The right-of-use asset is amortized to amortization expense. Interest expense is recorded in connection with the lease liability.

Property, plant and equipment

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


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

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

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

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

Intangibles

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

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

Goodwill

Goodwill arising from acquisition is primarily attributable to the ability to expand future products and services and the assembled workforce. Goodwill is reviewed annually for impairment or more frequently whenever circumstances indicate that the carrying amount of a reporting unit may exceed its fair value. The impairment charge is based on that difference and is limited to the amount of goodwill allocated to that unit. The Company conducts impairment testing for goodwill at the reporting unit level. Reporting units may be operating segments as a whole, or an operation one level below an operating segment, referred to as a component. The Company has determined that its reporting unit is Fabrinet UK.

The Company may initiate goodwill impairment testing by considering qualitative factors to determine whether it is more likely than not that a reportable segment’s carrying value is greater than its fair value. If the Company’s qualitative assessment indicates it is more likely than not that the fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, the Company performs a quantitative goodwill impairment test to determine if goodwill is impaired. The quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reportable segment exceeds the carrying value of the net assets associated with the segment, goodwill is not considered impaired. If the carrying value of the net assets associated with the reportable segment exceeds the fair value of the segment, the Company recognizes an impairment loss in an amount equal to the excess, not to exceed the carrying value of the reportable segment’s goodwill. The reporting unit’s carrying value used in an impairment test represents the assignment of various assets and liabilities, excluding certain corporate assets and liabilities, such as cash, investments, and debt.

Goodwill is not deductible for tax purposes. Accordingly, if goodwill is impaired for financial reporting purposes, there is no impact on deferred taxes.

Treasury shares

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

Borrowing costs

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

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

Fair value of financial instruments

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

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

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

Level 3 inputs that are significant to the fair value measurement and unobservable (i.e. supported by little or no market activity), which require the reporting entity to develop its own valuation techniques and assumptions.

The carrying amounts of certain financial instruments, which include cash and cash equivalents, trade accounts receivable, contract assets, trade accounts payable, and contract liabilities, approximate their fair values due to their short maturities. The carrying amounts of borrowings approximate their fair values as the applicable interest rate is based on market interest rates. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item.

Derivatives

The derivative assets and liabilities are measured at fair value and recognized on the consolidated balance sheets by offsetting the fair value amounts under master netting arrangements. For presentation in consolidated balance sheets, the Company may choose not to separate a derivative into its current and non-current portion as follows:

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

•A derivative for which the fair value is a net asset and the current portion is an asset is classified in total as non-current. If the current portion is liability, it should be presented as current liability.

For presentation in consolidated statements of cash flows are classified in the same line item as the underlying item.

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

Derivatives designated and qualifying as hedges of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges which include foreign currency forward contracts and interest rate swap. In a cash flow hedging relationship, the change in the fair value of the hedging derivative is initially

recorded in AOCI in the consolidated balance sheets, gain or loss on the derivative instrument is 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.

In accordance with the fair value measurement guidance, the Company’s accounting policy is to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The Company executes derivative instruments with financial institutions that are credit-worthy, which the Company defines as institutions that hold an investment grade credit rating.

Concentration of credit risk

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

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

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

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

Revenue recognition

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

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

Sales of finished goods

The Company manufactures products that are customized to customers’ specifications; however, control of the products is typically transferred to the customer at the point in time the product is either shipped or delivered, depending on the terms of the arrangement, as the criteria for over time recognition are not met. On evaluation of the contracts, the Company identified that there were no contractual rights to bill profit for work in progress in the event of a contract termination, which is expected to be infrequent. Further, in limited circumstances, contracts provide for substantive acceptance by the customer, which results in the deferral of revenue until formal notice of acceptance is received from the customer. Judgment may be required in determining if an acceptance clause provides for substantive acceptance.

Certain customers may request the Company to store finished products at the Company’s warehouse where customers bear risks of loss themselves. In these instances, the Company receives a written request from the customer asking the Company to hold the inventory at the Company’s warehouse and refrain from using the ordered goods to fulfill other customer orders. In these situations, revenue is only recognized when the completed goods are ready for shipment and transferred to the Company’s warehouse.

Customers generally are obligated to purchase finished goods that the Company has manufactured according to their demand requirements. Materials that are not consumed by customers within a specified period of time, or are no longer required due to a product’s cancellation or end-of-life, are typically designated as excess or obsolete inventory under the

Company’s contracts. Once materials are designated as either excess or obsolete inventory, customers are typically required to purchase such inventory from the Company even if the customer has chosen to cancel production of the related products. The excess or obsolete inventory is shipped to the customer and revenue is recognized upon shipment.

A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. In determining the net consideration to which the Company expects to be entitled, the Company evaluates whether the price is subject to refund or adjustment. The Company generally does not grant return privileges, except for in the case of defective products during the warranty period. The Company generally provides a warranty of between one to five years on any given product. These standard warranties are assurance-type warranties, and the Company does not offer any services in addition to the assurance that the product will continue to work as specified.

The Company recognized revenue net of rebates and other similar allowances. Revenues are recognized only if these estimates can be reasonably and reliably determined. The Company estimates expected rebates and other similar allowances based on historical results taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. The Company considers such estimated rebates and other similar allowances as variable consideration when allocating the transaction price to the extent it is probable that there will not be a significant reversal of cumulative revenue recognized. The estimate is primarily based on the most likely level of consideration to be paid to the customer under the specific terms of each arrangement.

Services

The Company provides services for customers that are related to the Company’s manufacturing activities. In many cases, although the nature of work performed is that of a service, revenue is only recognized upon shipment of the product because the customer has specific requirements as to how many items can be shipped at any given point in time, i.e. at point-in-time. The related costs are expensed as incurred.

Service revenues of $116.2 million, $140.4 million and $108.5 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 30, 2023, June 24, 2022 and June 25, 2021, respectively.

Contract Costs

The incremental costs of obtaining a contract with a customer are recognized as an asset (not expensed as incurred) if such costs are expected to be recovered. Incremental costs of obtaining a contract are costs that the Company would not have incurred if the contract had not been obtained (e.g., sales commissions or similar incentive payments linked directly to new or modified customer contracts). Costs that would have been incurred regardless of whether a customer contract was obtained (e.g., costs of pursuing the contract, legal advice, etc.) are expensed as incurred, unless such costs are explicitly chargeable to the customer. During the years ended June 30, 2023, June 24, 2022 and June 25, 2021, the Company did not have any incremental costs of obtaining a contract.

Shipping and Handling

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

Warranty provision

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

Warranty cost allowances were recognized in the consolidated statements of operations and comprehensive income for the years ended June 30, 2023, June 24, 2022 and June 25, 2021 with de minimis amount.

Share-based compensation

Share-based compensation is recognized in the consolidated financial statements based on grant-date fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. For restricted share units and performance share units, the fair values are based on the market value of our ordinary shares on the date of grant.

Employee contribution plan

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

Severance liabilities

Under labor protection laws applicable in Thailand and the Company’s subsidiary in Thailand’s employment policy, all employees of such subsidiary with more than 120 days of service are entitled to severance pay on forced termination or retrenchment or in the event that the employee reaches the retirement age of 55. The entitlement to severance pay is determined according to an employee’s individual employment tenure with the Company and is subject to a maximum benefit of 400 days of salary unless otherwise agreed upon in an employee’s employment contract. For employees of other subsidiaries who have a specific termination date, the entitlement to severance pay is determined according to their employment tenure, until their designated termination date.

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

The Company’s subsidiary in the U.K. operates a defined benefit pension plan that defines the pension benefit an employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. The defined benefit obligation is calculated using the projected unit credit method. Annually the Company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating the estimated period of the future payments (discount rate). The plan assets are held separately from those of the Company in independently administered funds and are measured at fair value.

Severance liabilities are recognized in the Company’s consolidated balance sheet under non-current liabilities. The related expenses, if incurred during the period, are recognized in the Company’s consolidated statements of operations and comprehensive income as selling, general and administrative expenses. Prior service cost is initially recognized to other comprehensive income (loss) at the date of plan amendment. Such prior service cost is amortized as expenses as a component of net periodic pension cost using the weighted average remaining years of service to full eligibility date for active employees.

Annual leave

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

Income taxes

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

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

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

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

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

New Accounting Pronouncements—adopted by the Company

In November 2021, the Financial Accounting Standards 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 consolidated financial statements.

Share-based compensation (Tables)

12 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Effect of Recording Share-Based Compensation Expense

The effect of recording share-based compensation expense for the years ended June 30, 2023, June 24, 2022 and June 25, 2021 was as follows:


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Share-based compensation expense by type of award:
Restricted share units	$	16,979	$	15,150	$	16,725
Performance share units	11,148		12,898		8,737
Total share-based compensation expense	28,127		28,048		25,462
Tax effect on share-based compensation expense	—		—		—
Net effect on share-based compensation expense	$	28,127	$	28,048	$	25,462

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

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


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Cost of revenue	$	6,664	$	5,967	$	6,185
Selling, general and administrative expense	20,939		22,081		19,277
Restructuring and other related costs	524		—		—
Total share-based compensation expense	$	28,127	$	28,048	$	25,462

Share-Based Payment Arrangement, Activity

The following table summarizes the number of equity awards outstanding and ordinary shares available for grant under each of the Equity Incentive Plans as of June 30, 2023:


(share units)	Restricted Share Units outstanding	Performance Share Units outstanding	Ordinary Shares available for future grant
2020 Plan	341,706	204,016	1,946,938
2010 Plan	27,059	—	—
2017 Inducement Plan	—	—	111,347
Total	368,765	204,016	2,058,285

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 26, 2020	797,757	$	46.88
Granted	230,759	$	70.53
Vested	(358,508)	$	45.39
Forfeited	(28,133)	$	57.86
Balance as of June 25, 2021	641,875	$	55.74
Granted	186,633	$	101.25
Vested	(323,326)	$	52.20
Forfeited	(45,556)	$	71.53
Balance as of June 24, 2022	459,626	$	75.14
Granted	165,378	$	117.35
Vested	(233,607)	$	67.85
Forfeited	(22,632)	$	94.69
Balance as of June 30, 2023	368,765	$	97.49
Expected to vest as of June 30, 2023	327,128	$	98.07

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 26, 2020	440,140	$	48.37
Granted	184,718	$	69.85
Vested	(82,185)	48.02
Forfeited	(115,645)	$	48.02
Balance as of June 25, 2021	427,028	$	57.82
Granted	110,832	$	101.05
Vested	(190,213)	$	48.65
Forfeited	(61,765)	$	53.38
Balance as of June 24, 2022	285,882	$	81.64
Granted	97,142	$	117.35
Vested	(179,008)	70.05
Forfeited	—	$	—
Balance as of June 30, 2023	204,016	$	108.81
Expected to vest as of June 30, 2023	204,016	$	108.81

Income taxes - Schedule of Changes in Valuation Allowances of Deferred Tax Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Reconciliation Of Nol Deferred Tax Assets Valuation Allowance [Roll Forward]
Beginning Balance	$ 4,934	$ 2,061	$ 3,728
Additional	498	2,873	479
Reduction	(1,608)		(2,146)
Ending Balance	$ 3,824	$ 4,934	$ 2,061

Borrowings - Schedule of Total Borrowings, Including Revolving and Long-Term Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	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	0	(31)
Long-term borrowings, non-current portion, net	0	15,202
Loan payable, due June 2024
Debt Instrument [Line Items]
Long-term debt	$ 12,188	$ 27,421
Loan payable, due June 2024 \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.35%

Intangibles (Tables)

12 Months Ended

Jun. 30, 2023

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 June 30, 2023
Software	$	10,533	$	(8,139)	$	—	$	2,394


Total intangibles (1)	$	10,533	$	(8,139)	$	—	$	2,394

(1)Customer relationships and backlog were written-off in March 2023.


(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 customer relationships was:


(years)	As of June 30, 2023	As of June 24, 2022
Software	3.1	3.8
Customer relationships	—	3.1
Total intangibles	3.1	3.8

Schedule of Estimated Future Amortization of Intangibles Assets

Based on the carrying amount of intangibles as of June 30, 2023, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows:


(in thousands)
2024	$	949
2025	675
2026	453
2027	245
2028	72

Total	$	2,394

Business and organization	12 Months Ended
Business and organization	Jun. 30, 2023
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 of complex products, such as optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices and sensors. The Company offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and testing. The Company focuses primarily on the production of low-volume, high-mix products. The principal subsidiaries of Fabrinet include Fabrinet Co., Ltd. (“Fabrinet Thailand”), Casix, Inc. (“Casix”), Fabrinet West, Inc. (“Fabrinet West”) and Fabrinet Israel Ltd. (“Fabrinet Israel”).

Summary of significant accounting policies - Summary of Reclassifications of Consolidated Balance Sheet and Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Current assets
Trade accounts receivable	$ 531,767	$ 452,670
Contract assets		124
Changes in operating assets and liabilities
Trade accounts receivable	$ (76,917)	(105,550)	$ (62,314)
Contract assets		(6)	(118)
As previously reported
Current assets
Trade accounts receivable		439,330
Contract assets		13,464
Changes in operating assets and liabilities
Trade accounts receivable		(103,970)	(63,810)
Contract assets		(1,586)	1,378
Reclassification
Current assets
Trade accounts receivable		13,340
Contract assets		(13,340)
Changes in operating assets and liabilities
Trade accounts receivable		(1,580)	1,496
Contract assets		$ 1,580	$ (1,496)

Restructuring and other related cost	12 Months Ended
Restructuring and other related cost	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring and other related cost	Restructuring and other related costsRestructuring and other related costs may consist of voluntary or involuntary severance-related charges, asset-related charges and other costs due to exit activities. The Company recognizes voluntary severance-related charges when an employee accepts the offered benefit arrangement. The Company recognizes involuntary severance-related charges depending on whether the termination benefits are provided under an ongoing benefit arrangement or under a one-time benefit arrangement. If the former, the Company recognizes the charges once they are probable and the amounts are estimable. If the latter, the Company recognizes the charges once the benefits have been communicated to employees.

Business segments and geographic information - Additional Information (Details) - segment	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Segment Reporting [Abstract]
Number of operating segment	1	1	1

Income taxes - Schedule of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Income Tax Disclosure [Abstract]
Current	$ 15,044	$ 6,744	$ 6,355
Deferred	(2,861)	(158)	(4,212)
Total income tax expense	$ 12,183	$ 6,586	$ 2,143

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Share-based compensation - Schedule of Effect of Recording Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Share-based compensation expense by type of award:
Restricted share units	$ 16,979	$ 15,150	$ 16,725
Performance share units	11,148	12,898	8,737
Total share-based compensation expense	28,127	28,048	25,462
Tax effect on share-based compensation expense	0	0	0
Net effect on share-based compensation expense	$ 28,127	$ 28,048	$ 25,462

Share-based compensation - Schedule of Share-Based Compensation Expense Recorded in Condensed Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 28,127	$ 28,048	$ 25,462
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	6,664	5,967	6,185
Selling, general and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	20,939	22,081	19,277
Restructuring and other related costs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation	$ 524	$ 0	$ 0

Severance liabilities - Schedule of Severance Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022
Changes in severance liabilities
Balance, beginning of the fiscal year	$ 18,588	$ 19,782
Current service cost	$ 2,349	$ 2,318
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Selling, General and Administrative Expense	Selling, General and Administrative Expense
Interest cost	$ 683	$ 518
Benefit paid	(288)	(322)
Unrealized loss (gain) on exchange rate	(58)	(2,133)
Actuarial (gain) loss on obligation	1,089	(1,542)
Foreign currency translation	7	(33)
Balance, end of the fiscal year	22,370	18,588
Changes in plan assets
Balance, beginning of the fiscal year	338	356
Actual return on plan assets	0	(13)
Employer contributions	0	38
Foreign currency translation	11	(43)
Balance, end of the fiscal year	349	338
Underfunded status	$ (22,021)	$ (18,250)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Cash flows from operating activities
Net income	$ 247,913	$ 200,380	$ 148,341
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	43,832	38,738	36,252
Non-cash restructuring charges and other related costs	2,201	0	0
(Gain) loss on disposal and impairment of property, plant and equipment	(1,506)	(101)	13
(Gain) loss from sales and maturities of available-for-sale securities	92	13	(187)
Amortization of discount (premium) of short-term investments	280	3,691	2,093
Amortization of deferred debt issuance costs	31	32	32
(Reversal of) allowance for doubtful accounts	(307)	1,171	(343)
Unrealized loss (gain) on exchange rate and fair value of foreign currency forward contracts	175	(2,832)	(859)
Amortization of fair value at hedge inception of interest rate swaps	(587)	(937)	(1,299)
Share-based compensation	28,127	28,048	25,462
Deferred income tax	(3,484)	(191)	(3,473)
Other non-cash expenses	601	1,390	(450)
Changes in operating assets and liabilities
Trade accounts receivable	(76,917)	(105,550)	(62,314)
Inventories	37,449	(135,011)	(112,349)
Other current assets and non-current assets	(13,568)	(6,430)	(10,871)
Trade accounts payable	(58,596)	93,499	96,312
Income tax payable	2,977	(761)	1,353
Severance liabilities	3,753	1,033	3,181
Other current liabilities and non-current liabilities	844	8,064	1,263
Net cash provided by operating activities	213,310	124,246	122,157
Cash flows from investing activities
Purchase of short-term investments	(217,005)	(198,318)	(244,330)
Proceeds from sales of short-term investments	30,179	19,463	79,439
Proceeds from maturities of short-term investments	150,252	133,632	179,532
Funds repayment from (provided to) customer to support transfer of manufacturing operations	0	0	24,310
Purchase of property, plant and equipment	(61,360)	(89,588)	(46,060)
Purchase of intangibles	(911)	(995)	(1,915)
Proceeds from disposal of property, plant and equipment	128	263	90
Net cash used in investing activities	(98,717)	(135,543)	(8,934)
Cash flows from financing activities
Repayment of long-term borrowings	(15,233)	(12,188)	(12,188)
Repayment of finance lease liability	(9)	(7)	(100)
Repurchase of ordinary shares	(47,575)	(59,915)	(18,842)
Withholding tax related to net share settlement of restricted share units	(18,167)	(20,824)	(11,624)
Net cash used in financing activities	(80,984)	(92,934)	(42,754)
Net increase (decrease) in cash, cash equivalents and restricted cash	33,609	(104,231)	70,469
Movement in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at the beginning of period	198,365	303,123	232,832
Increase (decrease) in cash, cash equivalents and restricted cash	33,609	(104,231)	70,469
Effect of exchange rate on cash, cash equivalents and restricted cash	(606)	(527)	(178)
Cash, cash equivalents and restricted cash at the end of period	231,368	198,365	303,123
Cash paid for
Interest	2,377	2,244	2,438
Taxes	14,158	9,296	7,945
Cash received for interest	11,048	1,603	4,445
Non-cash investing and financing activities
Construction, software and equipment related payables	$ 13,526	$ 9,085	$ 19,206

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative effect, period of adoption, adjustment	Ordinary Share	Additional Paid-in Capital	Treasury Shares	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Retained Earnings Cumulative effect, period of adoption, adjustment
Beginning Balance (in shares) at Jun. 26, 2020			38,471,967
Beginning balance at Jun. 26, 2020	$ 974,409	$ (107)	$ 385	$ 175,610	$ (68,501)	$ (1,147)	$ 868,062	$ (107)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	148,341						148,341
Other comprehensive income (loss)	(5,119)					(5,119)
Share-based compensation	25,462			25,462
Issuance of ordinary shares (in shares)			277,078
Issuance of ordinary shares	0		$ 3	(3)
Repurchase of shares held as treasury shares	(18,842)				(18,842)
Tax withholdings related to net share settlement of restricted share units	(11,624)			(11,624)
Ending Balance (in shares) at Jun. 25, 2021			38,749,045
Ending 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	200,380						200,380
Other comprehensive income (loss)	(6,527)					(6,527)
Share-based compensation	28,048			28,048
Issuance of ordinary shares (in shares)			299,655
Issuance of ordinary shares	0		$ 2	(2)
Repurchase of shares held as treasury shares	(59,915)				(59,915)
Tax withholdings related to net share settlement of restricted share units	(20,824)			(20,824)
Ending Balance (in shares) at Jun. 24, 2022			39,048,700
Ending 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	247,913						247,913
Other comprehensive income (loss)	4,678					4,678
Share-based compensation	28,127			28,127
Issuance of ordinary shares (in shares)			235,476
Issuance of ordinary shares	0		$ 3	(3)
Repurchase of shares held as treasury shares	(47,575)				(47,575)
Tax withholdings related to net share settlement of restricted share units	(18,167)			(18,167)
Ending Balance (in shares) at Jun. 30, 2023			39,284,176
Ending balance at Jun. 30, 2023	$ 1,468,658		$ 393	$ 206,624	$ (194,833)	$ (8,115)	$ 1,464,589

Business segments and geographic information (Tables)

12 Months Ended

Jun. 30, 2023

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:


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Long-Lived Assets:
Thailand	$	264,382	$	240,750	$	190,843
U.S.	25,267		25,938		27,403
China	17,407		19,686		14,977
Israel	2,796		4,025		5,271
Others	498		1,878		2,635
	310,350		292,277		241,129

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

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


	Years Ended
	June 30, 2023		June 24, 2022		June 25, 2021
Cisco Systems Inc.	15.6	%	25.4	%	10.7	%
Lumentum Operations LLC	15.4	%	10.3	%	13.6	%
Nvidia Corporation	12.5	%	*		*
Infinera Corporation	12.4	%	12.5	%	11.6	%

* Represents less than 10% of total revenues.

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

Accounts receivable from individual customers representing 10% or more of accounts receivable as of June 30, 2023 and June 24, 2022, respectively, were as follows:


	As of June 30, 2023		As of June 24, 2022
Infinera Corporation	20.5	%	17.1	%
Nvidia Corporation	14.0	%	*
Lumentum Operations LLC	13.7	%	11.8	%
Cisco Systems Inc.	*		19.8	%

* Represents less than 10% of total accounts receivable.

Inventories

12 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Inventories


(in thousands)	As of June 30, 2023		As of June 24, 2022
Raw materials	$	157,379	$	275,730
Work in progress	305,627		217,638
Finished goods	28,608		15,203
Goods in transit	27,962		48,574
Inventories	$	519,576	$	557,145

Intangibles - Schedule of Estimated Future Amortization of Intangibles Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 949
2025	675
2026	453
2027	245
2028	72
Net	$ 2,394	$ 3,508

Financial instruments (Details)	12 Months Ended
Financial instruments (Details)	Jun. 30, 2023
Maximum \| Foreign currency forward contracts
Financial Instrument [Line Items]
Derivative term of contract	12 months

Leases - Schedule of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 2,477
Financing cash flows from finance leases	9	$ 7	$ 100
ROU assets obtained in exchange for lease liabilities	$ 312

Intangibles - Schedule of Weighted-Average Remaining Life of Intangible Assets (Details)	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	3 years 1 month 6 days	3 years 9 months 18 days
Software
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets	3 years 1 month 6 days	3 years 9 months 18 days
Customer relationships
Finite-Lived Intangible Liabilities [Line Items]
Weighted average remaining life of acquired intangible assets		3 years 1 month 6 days

Summary of significant accounting policies - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Accounting Policies [Line Items]
Services revenues	$ 116.2	$ 140.4	$ 108.5
Minimum
Accounting Policies [Line Items]
Product warranty term	1 year
Maximum
Accounting Policies [Line Items]
Product warranty term	5 years

Trade accounts receivable, net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Receivables [Abstract]
Trade accounts receivable	$ 532,732	$ 453,941
Less: Allowance for doubtful account	(965)	(1,271)
Trade accounts receivable, net	$ 531,767	$ 452,670

Revenues from contracts with customers - Schedule of Revenues by End Market (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 2,645,237	$ 2,262,224	$ 1,879,350
Revenue from Contract with Customer Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenues, percentage	100.00%	100.00%	100.00%
Optical communications
Disaggregation of Revenue [Line Items]
Revenues	$ 2,008,347	$ 1,782,799	$ 1,441,338
Optical communications \| Revenue from Contract with Customer Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenues, percentage	75.90%	78.80%	76.70%
Lasers, sensors and other
Disaggregation of Revenue [Line Items]
Revenues	$ 636,890	$ 479,425	$ 438,012
Lasers, sensors and other \| Revenue from Contract with Customer Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Revenues, percentage	24.10%	21.20%	23.30%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- 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).

+ References

+ Details

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

12 Months Ended

Jun. 30, 2023

Cash and Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents, and Short-Term Investments


					Fair Value
(in thousands)	Carrying Cost		Unrealized Gain/ (Loss)		Cash and Cash Equivalents		Marketable Securities		Other Investments
As of June 30, 2023
Cash	$	230,967	$	—	$	230,967	$	—	$	—
Cash equivalents	401		—		401		—		—
Liquidity funds	41,104		—		—		—		41,104
Certificates of deposit and time deposits	64,278		329		—		64,607		—
Corporate debt securities	161,453		(3,375)		—		158,078		—
U.S. agency and U.S. Treasury securities	55,542		(231)		—		55,311		—
Total	$	553,745	$	(3,277)	$	231,368	$	277,996	$	41,104
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

Summary of Cost and Estimated Fair Value of Short-term Investments Classified as Available-for-Sale Securities

The following table summarizes the cost and estimated fair value of short-term investments classified as available-for-sale securities based on stated effective maturities as of June 30, 2023 and June 24, 2022:


	June 30, 2023				June 24, 2022
(in thousands)	Carrying Cost		Fair Value		Carrying Cost		Fair Value
Due within one year	$	172,992	$	173,137	$	101,976	$	101,400
Due between one to five years	149,385		145,963		184,197		178,757
Total	$	322,377	$	319,100	$	286,173	$	280,157

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Share-based compensation - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021	Jun. 26, 2020	Dec. 12, 2019	Nov. 02, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares available for grant (in shares)	2,058,285
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)	177,139	213,884
Tax withholdings related to net share settlement of restricted share units	$ 18,167	$ 20,824	$ 11,624
Restricted Share Units and Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of restricted share units vested	28,400	$ 24,200	$ 22,100
Aggregate intrinsic value of restricted share units outstanding	$ 74,400
Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	368,765	459,626	641,875	797,757
Restricted Share Units \| Non-employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period	1 year
Restricted Share Units \| Vesting, option one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period	3 years
Restricted Share Units \| Vesting, option two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period	4 years
Restricted Share Units \| Vest on the first of January \| Non-employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	100.00%
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	204,016	285,882	427,028	440,140
Performance Share Units \| Executive of the Company
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period	2 years
Performance Share Units \| Vest at the end of the performance period \| Executive of the Company \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	0.00%
Performance Share Units \| Vest at the end of the performance period \| Executive of the Company \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	100.00%
Equity Incentive Plans \| Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 11,900
Unrecognized compensation expense, weighted-average period for recognition	2 years 6 months
Equity Incentive Plans \| Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense	$ 6,600
Unrecognized compensation expense, weighted-average period for recognition	1 year 1 month 6 days
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares available for grant (in shares)	1,946,938				1,700,000
Shares reserved for future issuance (in shares)					1,300,000
2020 Plan \| Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	341,706
2020 Plan \| Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	204,016
2010 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares available for grant (in shares)	0
2010 Plan \| Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	27,059
2010 Plan \| Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	0
2017 Inducement 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
2017 Inducement Plan \| Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	0
2017 Inducement Plan \| Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	0

Intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 10,533	$ 14,976
Accumulated Amortization	(8,139)	(11,410)
Foreign Currency Translation Adjustment	0	(58)
Net	2,394	3,508
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,533	10,484
Accumulated Amortization	(8,139)	(7,681)
Foreign Currency Translation Adjustment	0	0
Net	$ 2,394	2,803
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		4,373
Accumulated Amortization		(3,610)
Foreign Currency Translation Adjustment		(58)
Net		705
Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		119
Accumulated Amortization		(119)
Foreign Currency Translation Adjustment		0
Net		$ 0

Severance liabilities

12 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Severance liabilities

The following table provides information regarding severance liabilities:


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022
Changes in severance liabilities
Balance, beginning of the fiscal year	$	18,588	$	19,782
Current service cost	$	2,349	$	2,318
Interest cost	683		518
Benefit paid	(288)		(322)
Unrealized loss (gain) on exchange rate	(58)		(2,133)
Actuarial (gain) loss on obligation	1,089		(1,542)
Foreign currency translation	7		(33)
Balance, end of the fiscal year	$	22,370	$	18,588
Changes in plan assets
Balance, beginning of the fiscal year	$	338	$	356
Actual return on plan assets	$	—	$	(13)
Employer contributions	—		38

Foreign currency translation	11		(43)
Balance, end of the fiscal year	$	349	$	338
Underfunded status	$	(22,021)	$	(18,250)

The following table sets forth our severance liabilities as of June 30, 2023:


(in thousands)
2024	$	1,449
2025	2,022
2026	1,389
2027	1,641
2028	2,045
Thereafter	13,824

Total	$	22,370

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


(in thousands)	As of June 30, 2023		As of June 24, 2022
Non-current assets	$	138	$	134
Non-current liabilities	$	22,159	$	18,384

The following table provides information regarding accumulated benefit obligations:


(in thousands)	As of June 30, 2023		As of June 24, 2022
Accumulated benefit obligations	$	15,168	$	13,018

The principal actuarial assumptions used were as follows:

Weighted average actuarial assumptions used to determine severance liabilities


	Years Ended
	June 30, 2023	June 24, 2022	June 25, 2021
Discount rate	3.5% - 5.3%	2.1% - 3.9%	0.2% - 2.9%
Future salary increases	3.5% - 10.0%	3.5% - 10.0%	3.5% - 10.0%

Weighted average actuarial assumptions used to determine benefit costs


	Years Ended
	June 30, 2023	June 24, 2022	June 25, 2021
Discount rate	0.2% - 2.9%	0.2% - 2.9%	0.4% - 3.1%
Expected long-term rate of return on assets	2.1%	2.1%	2.3%

Borrowings - Schedule of Movements of Long-Term Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022
Movements of Long-term Borrowings [Roll Forward]
Opening balance	$ 27,421	$ 39,609
Repayments during the period	(15,233)	(12,188)
Closing balance	$ 12,188	$ 27,421

Revenues from contracts with customers

12 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenues from contracts with customers

Contract Assets and Liabilities

A contract asset is recognized when the Company has recognized revenues prior to an invoice for payment. Contract assets are recognized in the consolidated balance sheets under other current assets and transferred to accounts receivable when rights to payment become unconditional. No impairment for contract assets was recorded for the years ended June 30, 2023 and June 24, 2022.

As of June 30, 2023 and June 24, 2022, the contract assets are de minimis.

A contract liability is recognized when the Company has advance payment arrangements with customers. Contract liabilities are recognized in the consolidated balance sheets under other payables. The contract liabilities balance is normally recognized as revenue within six months.

The following tables summarize the activity in the Company’s contract liabilities during the years ended June 30, 2023 and June 24, 2022:


(in thousands)	Contract Liabilities
Balance as of June 25, 2021	$	1,680
Advance payment received during the year	5,927
Revenue recognized	(5,625)
Balance as of June 24, 2022	1,982
Advance payment received during the year	14,124
Revenue recognized	(13,070)
Balance as of June 30, 2023	$	3,036

Revenue by Geographic Area and End Market

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

The following table presents total revenues by geographic regions:


(in thousands, except percentages)	Year ended June 30, 2023		As a % of Total Revenues		Year ended June 24, 2022		As a % of Total Revenues		Year ended June 25, 2021		As a % of Total Revenues
North America	$	1,269,965	48.0	%	$	1,114,504	49.3	%	$	887,536	47.2	%
Asia-Pacific	1,143,510		43.2		838,051		37.0		668,597		35.6
Europe	231,762		8.8		309,669		13.7		323,217		17.2
	$	2,645,237	100.0	%	$	2,262,224	100.0	%	$	1,879,350	100.0	%


	Years Ended
(in thousands, except percentages)	June 30, 2023		June 24, 2022		June 25, 2021
North America
U.S.	1,247,422		1,099,244		884,862
Others (1)	22,543		15,260		2,674
Total revenue in North America	1,269,965		1,114,504		887,536
Asia-Pacific and others
Israel	341,025		101,058		107,584
India	325,478		278,117		152,249
Malaysia	162,599		212,286		157,213
Hong Kong	132,136		83,651		87,235
China	73,094		55,201		51,597
Thailand	58,850		36,489		27,081
Japan	41,105		60,121		69,779

Others	9,223		11,128		15,859
Total revenue in Asia-Pacific and others	1,143,510		838,051		668,597
Europe

U.K.	125,082		90,921		60,516
Germany	54,732		40,794		28,163
Ireland	647		133,225		193,103
Others	51,301		44,729		41,435
Total revenue in Europe	$	231,762	$	309,669	$	323,217
Total revenue	$	2,645,237	$	2,262,224	$	1,879,350

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

The following table presents revenues by end market.


(in thousands, except percentages)	Year ended June 30, 2023		As a % of Total Revenues		Year ended June 24, 2022		As a % of Total Revenues		Year ended June 25, 2021		As a % of Total Revenues
Optical communications	$	2,008,347	75.9	%	$	1,782,799	78.8	%	$	1,441,338	76.7	%
Lasers, sensors and other	636,890		24.1		479,425		21.2		438,012		23.3
Total	$	2,645,237	100.0	%	$	2,262,224	100.0	%	$	1,879,350	100.0	%

- 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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 965	$ 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)	39,284,176	39,048,700
Ordinary shares, shares outstanding (in shares)	36,183,682	36,436,683
Treasury stocks, shares (in shares)	3,100,494	2,612,017

Fair value of financial instruments (Tables)

12 Months Ended

Jun. 30, 2023

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 June 30, 2023
Assets
Cash equivalents	$	—	$	401		$	—	$	401
Liquidity funds	—		41,104			—		41,104
Certificates of deposit and time deposits	—		64,607			—		64,607
Corporate debt securities	—		158,078			—		158,078
U.S. agency and U.S. Treasury securities	—		55,311			—		55,311
Derivative assets - current portion	—		221		(1)	—		221

Total	$	—	$	319,722		$	—	$	319,722
Liabilities
Derivative liabilities - current portion	$	—	$	(5,236)		$	—	$	(5,236)

Total	$	—	$	(5,236)	(2)	$	—	$	(5,236)


	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		(3)	—		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)	(4)	$	—	$	(7,579)

(1)Foreign currency forward contracts with an aggregate notional amount of $3.0 million and 0.2 million Canadian dollars and interest rate swap agreement with notional amount of $60.9 million.

(2)Foreign currency forward contracts with an aggregate notional amount of $140.0 million.

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

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


		Year Ended
(in thousands)	Financial statements line item	June 30, 2023		June 24, 2022
Derivatives gain (loss) recognized in other comprehensive income (loss):
Foreign currency forward contracts	Other comprehensive income	$	1,142	$	(2,304)
Interest rate swaps	Other comprehensive income	1,302		2,461
Total derivatives loss (gain) recognized in other comprehensive income		$	2,444	$	157
Derivatives loss (gain) reclassified from accumulated other comprehensive income into earnings:
Foreign currency forward contracts	Cost of revenues	$	7,995	$	7,283
Foreign currency forward contracts	Selling, general and administrative expenses	334		303
Foreign currency forward contracts	Foreign exchange gain (loss), net	(8,644)		(7,384)
Interest rate swaps	Interest expense	(588)		(937)
Total derivatives (gain) loss reclassified from accumulated other comprehensive income into earnings		$	(903)	$	(735)
Change in net unrealized gain (loss) on derivative instruments		$	1,541	$	(578)

Schedule of Derivative Financial Instruments

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


	June 30, 2023				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	$	2	$	(1,256)	$	—	$	(1,561)

Derivatives designated as hedging instruments
Foreign currency forward contracts	4		(3,980)		—		(4,821)
Interest rate swaps	215		—		110		(1,197)
Derivatives, gross balances	221		(5,236)		110		(7,579)

Derivative Financial Instruments in the Unaudited Condensed Consolidated Balance Sheets

The Company presents its derivatives at gross fair values in the consolidated balance sheets.

The Company recorded the fair value of derivative financial instruments in the 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 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.

+ References + Details

Leases - Summary of Additional Information Related to Operating and Finance Leases (Details)	Jun. 30, 2023
Leases [Abstract]
Weighted-average remaining lease term (in years)	1 year 2 months 12 days
Weighted-average discount rate	3.40%

Share-based compensation

12 Months Ended

Jun. 30, 2023

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 closing price of our ordinary shares on the date of grant.

The effect of recording share-based compensation expense for the years ended June 30, 2023, June 24, 2022 and June 25, 2021 was as follows:


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Share-based compensation expense by type of award:
Restricted share units	$	16,979	$	15,150	$	16,725
Performance share units	11,148		12,898		8,737
Total share-based compensation expense	28,127		28,048		25,462
Tax effect on share-based compensation expense	—		—		—
Net effect on share-based compensation expense	$	28,127	$	28,048	$	25,462

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


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Cost of revenue	$	6,664	$	5,967	$	6,185
Selling, general and administrative expense	20,939		22,081		19,277
Restructuring and other related costs	524		—		—
Total share-based compensation expense	$	28,127	$	28,048	$	25,462

The Company did not capitalize any share-based compensation expense as part of any asset costs during the years ended June 30, 2023, June 24, 2022 and June 25, 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 June 30, 2023, there were 341,706 restricted share units outstanding, 204,016 performance share units outstanding and 1,946,938 ordinary shares available for future grant under the 2020 Plan.

As of June 30, 2023, there were 27,059 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 June 30, 2023, 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.”

The following table summarizes the number of equity awards outstanding and ordinary shares available for grant under each of the Equity Incentive Plans as of June 30, 2023:


(share units)	Restricted Share Units outstanding	Performance Share Units outstanding	Ordinary Shares available for future grant
2020 Plan	341,706	204,016	1,946,938
2010 Plan	27,059	—	—
2017 Inducement Plan	—	—	111,347
Total	368,765	204,016	2,058,285

Restricted share units and performance share units

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

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

Performance share units granted to executives will vest, if at all, at the end of a two-year performance period based on the Company’s achievement of pre-defined performance criteria, which consist of revenue and non-GAAP operating margin targets. The actual number of performance share units that may vest at the end of the performance period ranges from 0% to 100% of the award grant.

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


	Number of Shares	Weighted- Average Grant Date Fair Value Per Share
Balance as of June 26, 2020	797,757	$	46.88
Granted	230,759	$	70.53
Vested	(358,508)	$	45.39
Forfeited	(28,133)	$	57.86
Balance as of June 25, 2021	641,875	$	55.74
Granted	186,633	$	101.25
Vested	(323,326)	$	52.20
Forfeited	(45,556)	$	71.53
Balance as of June 24, 2022	459,626	$	75.14
Granted	165,378	$	117.35
Vested	(233,607)	$	67.85
Forfeited	(22,632)	$	94.69
Balance as of June 30, 2023	368,765	$	97.49
Expected to vest as of June 30, 2023	327,128	$	98.07

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


	Number of Shares	Weighted- Average Grant Date Fair Value Per Share
Balance as of June 26, 2020	440,140	$	48.37
Granted	184,718	$	69.85
Vested	(82,185)	48.02
Forfeited	(115,645)	$	48.02
Balance as of June 25, 2021	427,028	$	57.82
Granted	110,832	$	101.05
Vested	(190,213)	$	48.65
Forfeited	(61,765)	$	53.38
Balance as of June 24, 2022	285,882	$	81.64
Granted	97,142	$	117.35
Vested	(179,008)	70.05
Forfeited	—	$	—
Balance as of June 30, 2023	204,016	$	108.81
Expected to vest as of June 30, 2023	204,016	$	108.81

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

The total fair value of restricted share units and performance share units vested during the years ended June 30, 2023, June 24, 2022 and June 25, 2021 was $28.4 million, $24.2 million and $22.1 million, respectively. The aggregate intrinsic value of restricted share units and performance share units outstanding as of June 30, 2023 was $74.4 million.

As of June 30, 2023, there was $11.9 million and $6.6 million of unrecognized share-based compensation expense related to restricted share units and performance share units, respectively, under the Equity Incentive Plans that is expected to be recorded over a weighted-average period of 2.5 years and 1.1 years, respectively.

For the years ended June 30, 2023 and June 24, 2022, the Company withheld an aggregate of 177,139 shares and 213,884 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 years ended June 30, 2023 and June 24, 2022, the Company then remitted cash of $18.2 million and $20.8 million, respectively, to the appropriate taxing authorities, and presented it as a financing activity within the consolidated statements of cash flows. The payment was recorded as a reduction of additional paid-in capital.

Borrowings (Tables)

12 Months Ended

Jun. 30, 2023

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 June 30, 2023		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	12,188		27,421
Less: Current portion			(12,188)		(12,188)
Less: Unamortized debt issuance costs—non-current portion			—		(31)
Long-term borrowings, non-current portion, net			$	—	$	15,202

(1)The Company entered into interest rate swaps that effectively fix a series of future interest payments on its term loans. Refer to Note 7.

Schedule of Movements of Long-Term Loans

The movements of long-term borrowings were as follows for the years ended June 30, 2023 and June 24, 2022:


	Years ended
(in thousands)	June 30, 2023		June 24, 2022
Opening balance	$	27,421	$	39,609

Repayments during the period	(15,233)		(12,188)
Closing balance	$	12,188	$	27,421

- 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

Income taxes (Tables)

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

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


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Current	$	15,044	$	6,744	$	6,355
Deferred	(2,861)		(158)		(4,212)
Total income tax expense	$	12,183	$	6,586	$	2,143

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

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


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Income before income taxes (1)	$	260,096	$	206,966	$	150,484
Tax expense calculated at a statutory corporate income tax rate of 20%	52,019		41,393		30,097
Effect of income taxes from locations with tax rates different from Thailand	659		681		198
Income not subject to tax (2)	(43,679)		(35,982)		(24,853)
Income tax on unremitted earnings	2,452		1,417		1,395
Foreign operations	2,003		(1,165)		(2,855)
Tax rebate from research and development application	(124)		(873)		(728)
Provision for uncertain income tax position	(7)		668		(403)
Utilization of loss and tax credits carryforward	(80)		(194)		(610)
Changes in valuation allowance (3)	(1,608)		—		(2,146)
Others	548		641		2,048
Corporate income tax expense	$	12,183	$	6,586	$	2,143

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

(2)Income not subject to tax relates to income earned in the Cayman and Mauritius Islands and income subject to an investment promotion privilege for Pinehurst Building 6 and the Company’s Chonburi campus. Income not subject to tax per ordinary share on a diluted basis was $1.19, $0.96, and $0.63 for the years ended June 30, 2023, June 24, 2022, and June 25, 2021, respectively.

(3)Changes in valuation allowances were due to adjustments based on management's assessment on the realizability of the related deferred tax assets.

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

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


	As of
(in thousands)	June 30, 2023		June 24, 2022
Deferred tax assets:
Depreciation	$	1,999	$	1,579
Severance liability	4,058		3,345
Reserves and allowance	1,712		1,711
Net operating loss carryforwards	7,142		7,025
Others	1,008		1,074
Total	15,919		14,734
Less: Valuation allowance	(3,824)		(4,934)
Net deferred tax assets	$	12,095	$	9,800

Deferred tax liabilities:
Temporary differences from intangibles and changes in the fair value of assets acquired	$	(1,711)	$	(1,816)
Deferred tax from unremitted earnings	(4,819)		(5,550)
Others	1,731		1,365
Total	(4,799)		(6,001)
Net	$	7,296	$	3,799

Schedule of Changes in Valuation Allowances of Deferred Tax Assets

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


(in thousands)	Valuation allowances of deferred tax assets
Balance as of June 26, 2020	$	3,728
Additional	479
Reduction	(2,146)
Balance as of June 25, 2021	2,061
Additional	2,873

Balance as of June 24, 2022	4,934
Additional	498
Reduction	(1,608)
Balance as of June 30, 2023	$	3,824

Schedule of Changes to Unrecognized Tax Benefits

The following table indicates the changes to the Company’s uncertain income tax positions for the years ended June 30, 2023, June 24, 2022 and June 25, 2021, excluding interest and penalties, were as follows:


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Beginning balance	$	1,392	$	807	$	970
Additions during the year	15		610		389
Release of tax positions of prior years	(119)		(25)		(552)
Ending balance	$	1,288	$	1,392	$	807

Business segments and geographic information - Schedule of Accounts Receivable from Individual Customers Representing Ten Percent or More of Accounts Receivable (Details) - Accounts Receivable - Customer Concentration Risk	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022
Infinera Corporation
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage	20.50%	17.10%
Nvidia Corporation
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage	14.00%
Lumentum Operations LLC
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage	13.70%	11.80%
Cisco Systems Inc.
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage		19.80%

Earnings per ordinary share (Tables)

12 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Ordinary Share

Earnings per ordinary share was calculated as follows:


	Years Ended
(in thousands, except per share data)	June 30, 2023		June 24, 2022		June 25, 2021
Net income attributable to shareholders	$	247,913	$	200,380	$	148,341
Weighted-average number of ordinary shares outstanding (thousands of shares)	36,515		36,876		36,872
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares)	340		518		683
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)	36,855		37,394		37,555
Basic earnings per ordinary share	$	6.79	$	5.43	$	4.02
Diluted earnings per ordinary share	$	6.73	$	5.36	$	3.95
Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares) (1)	—		—		53

Business segments and geographic information

12 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Business segments and geographic information

Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (the “CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM is Fabrinet’s Chief Executive Officer. As of June 30, 2023, June 24, 2022 and June 25, 2021, the Company operated and internally managed a single operating segment. Accordingly, the Company does not accumulate discrete information with respect to separate product lines and does not have separate reportable segments.

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

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


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Long-Lived Assets:
Thailand	$	264,382	$	240,750	$	190,843
U.S.	25,267		25,938		27,403
China	17,407		19,686		14,977
Israel	2,796		4,025		5,271
Others	498		1,878		2,635
	310,350		292,277		241,129

Significant customers

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


	Years Ended
	June 30, 2023		June 24, 2022		June 25, 2021
Cisco Systems Inc.	15.6	%	25.4	%	10.7	%
Lumentum Operations LLC	15.4	%	10.3	%	13.6	%
Nvidia Corporation	12.5	%	*		*
Infinera Corporation	12.4	%	12.5	%	11.6	%

* Represents less than 10% of total revenues.

Accounts receivable from individual customers representing 10% or more of accounts receivable as of June 30, 2023 and June 24, 2022, respectively, were as follows:


	As of June 30, 2023		As of June 24, 2022
Infinera Corporation	20.5	%	17.1	%
Nvidia Corporation	14.0	%	*
Lumentum Operations LLC	13.7	%	11.8	%
Cisco Systems Inc.	*		19.8	%

* Represents less than 10% of total accounts receivable.

- 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

Shareholders' equity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021	Aug. 31, 2022	Aug. 31, 2020	May 31, 2019	Feb. 28, 2018	Aug. 31, 2017
Shareholders Equity [Line Items]
Ordinary shares, shares authorized (in shares)	500,000,000	500,000,000
Ordinary shares, par value (in USD per share)	$ 0.01	$ 0.01
Preferred shares, shares authorized (in shares)	5,000,000	5,000,000
Preferred shares, par value (in USD per share)	$ 0.01	$ 0.01
Share repurchase program, approved amount								$ 30,000
Share repurchase program, increase in shares authorized for repurchase				$ 78,700	$ 58,500	$ 50,000	$ 30,000
Treasury stock, carrying basis	$ 52,400				$ 247,200
Repurchased shares (in shares)	488,477	628,428	239,486
Treasury stock shares repurchased average price (in USD per share)	$ 97.38
Tresury stock shares repurchased value	$ 47,575	$ 59,915	$ 18,842
Equity Incentive Plans
Shareholders Equity [Line Items]
Ordinary shares issued upon vesting of restricted shares (in shares)	235,476	299,655	277,078

Income taxes - Schedule of Deferred Tax Assets and Deferred Tax Liabilities, Net of Valuation Allowance (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021	Jun. 26, 2020
Deferred tax assets:
Depreciation	$ 1,999	$ 1,579
Severance liability	4,058	3,345
Reserves and allowance	1,712	1,711
Net operating loss carryforwards	7,142	7,025
Others	1,008	1,074
Total	15,919	14,734
Less: Valuation allowance	(3,824)	(4,934)	$ (2,061)	$ (3,728)
Net deferred tax assets	12,095	9,800
Deferred tax liabilities:
Temporary differences from intangibles and changes in the fair value of assets acquired	(1,711)	(1,816)
Deferred tax from unremitted earnings	(4,819)	(5,550)
Others	1,731	1,365
Total	(4,799)	(6,001)
Net	$ 7,296	$ 3,799

Accumulated other comprehensive income (loss) ("AOCI")

12 Months Ended

Jun. 30, 2023

Equity [Abstract]

Accumulated other comprehensive income (loss) ("AOCI")

Accumulated other comprehensive income (loss) (“AOCI”)

The changes in AOCI for the years ended June 30, 2023 and June 24, 2022 were as follows:


(in thousands)	Unrealized Gains (Losses) on Available-for-sale Securities		Unrealized Gains (Losses) 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 (loss) before reclassification	(6,339)		157		—		(245)		(6,427)
Amounts reclassified from AOCI	13		(735)		622		—		(100)
Tax effects	—		—		—		—		—
Other comprehensive income (loss)	(6,326)		(578)		622		(245)		(6,527)
Balance as of June 24, 2022	(6,018)		(5,082)		(803)		(890)		(12,793)
Other comprehensive income (loss) before reclassification	2,646		2,444		—		(75)		5,015
Amounts reclassified from AOCI	93		(903)		473		—		(337)
Tax effects	—		—		—		—		—
Other comprehensive income (loss)	2,739		1,541		473		(75)		4,678
Balance as of June 30, 2023	$	(3,279)	$	(3,541)	$	(330)	$	(965)	$	(8,115)

The following table presents the pre-tax amounts reclassified from AOCI into the consolidated statements of operations and comprehensive income for the years ended June 30, 2023 and June 24, 2022, respectively.


(in thousands)		Years Ended
AOCI components	Financial statements line item	June 30, 2023		June 24, 2022
Unrealized gains (losses) on available-for-sale securities	Interest income	$	93	$	13
Unrealized gains (losses) on derivative instruments	Cost of revenues	7,995		7,283
Unrealized gains (losses) on derivative instruments	Selling, general and administrative expenses	334		303
Unrealized gains (losses) on derivative instruments	Foreign exchange gain (loss), net	(8,644)		(7,384)
Unrealized gains (losses) on derivative instruments	Interest expense	(588)		(937)
Retirement benefit plan – Prior service cost	Selling, general and administrative expenses	473		622
Total amounts reclassified from AOCI		$	(337)	$	(100)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 157,379	$ 275,730
Work in progress	305,627	217,638
Finished goods	28,608	15,203
Goods in transit	27,962	48,574
Inventories	$ 519,576	$ 557,145

Audit Information	12 Months Ended
Audit Information	Jun. 30, 2023
Auditor Information [Abstract]
Auditor Firm ID	1194
Auditor Name	PricewaterhouseCoopers ABAS Ltd.
Auditor Location	Bangkok, Thailand

Income taxes

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income taxes

Fabrinet’s effective tax rate is a function of the mix of tax rates in the various jurisdictions in which we conduct business. Fabrinet is domiciled in the Cayman Islands. Under the current laws of the Cayman Islands, Fabrinet is not subject to tax in the Cayman Islands on income or capital gains until March 6, 2039. Income of the Company exempted from corporate income tax in the Cayman Islands amounted to $196.5 million, $171.0 million and $115.8 million for the years ended June 30, 2023, June 24, 2022 and June 25, 2021, respectively.

The majority of the Company’s operations and production take place in Thailand. The Company was not subject to tax in Thailand from July 2012 through June 2020 on income generated from the manufacture of products at its Pinehurst campus Building 6, and is not subject to tax in Thailand from July 2018 through June 2026 on income generated from the manufacture of products at its Chonburi campus. After June 2020, 50% of the Company's income generated from products manufactured at its Pinehurst campus Building 6 will be exempted from tax in Thailand through June 2025. New preferential tax treatment is available to the Company for products manufactured at its Chonburi campus Building 9, where income generated will be tax exempt through 2031, capped at the Company’s actual investment amount. Such preferential tax treatment is contingent on various factors, including the export of our customers’ products out of Thailand and our agreement not to move our manufacturing facilities out of our current province in Thailand for at least

15 years from the date on which preferential tax treatment was granted. Currently, the corporate income tax rate for our Thai subsidiary is 20%.

The corporate income tax rates for our subsidiaries in the PRC, the U.S., the U.K. and Israel are 25%, 21%, 25% and 23%, respectively. Our provision for income taxes is computed using the asset and liability method, under which deferred income taxes are recognized for differences between the financial statement and tax bases of assets and liabilities at currently enacted statutory tax rates for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment.

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


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Current	$	15,044	$	6,744	$	6,355
Deferred	(2,861)		(158)		(4,212)
Total income tax expense	$	12,183	$	6,586	$	2,143


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Income before income taxes (1)	$	260,096	$	206,966	$	150,484
Tax expense calculated at a statutory corporate income tax rate of 20%	52,019		41,393		30,097
Effect of income taxes from locations with tax rates different from Thailand	659		681		198
Income not subject to tax (2)	(43,679)		(35,982)		(24,853)
Income tax on unremitted earnings	2,452		1,417		1,395
Foreign operations	2,003		(1,165)		(2,855)
Tax rebate from research and development application	(124)		(873)		(728)
Provision for uncertain income tax position	(7)		668		(403)
Utilization of loss and tax credits carryforward	(80)		(194)		(610)
Changes in valuation allowance (3)	(1,608)		—		(2,146)
Others	548		641		2,048
Corporate income tax expense	$	12,183	$	6,586	$	2,143

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

(3)Changes in valuation allowances were due to adjustments based on management's assessment on the realizability of the related deferred tax assets.

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


	As of
(in thousands)	June 30, 2023		June 24, 2022
Deferred tax assets:
Depreciation	$	1,999	$	1,579
Severance liability	4,058		3,345
Reserves and allowance	1,712		1,711
Net operating loss carryforwards	7,142		7,025
Others	1,008		1,074
Total	15,919		14,734
Less: Valuation allowance	(3,824)		(4,934)
Net deferred tax assets	$	12,095	$	9,800

Deferred tax liabilities:
Temporary differences from intangibles and changes in the fair value of assets acquired	$	(1,711)	$	(1,816)
Deferred tax from unremitted earnings	(4,819)		(5,550)
Others	1,731		1,365
Total	(4,799)		(6,001)
Net	$	7,296	$	3,799

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


(in thousands)	Valuation allowances of deferred tax assets
Balance as of June 26, 2020	$	3,728
Additional	479
Reduction	(2,146)
Balance as of June 25, 2021	2,061
Additional	2,873

Balance as of June 24, 2022	4,934
Additional	498
Reduction	(1,608)
Balance as of June 30, 2023	$	3,824

During fiscal year 2020, one of our subsidiaries in the U.S. generated net operating loss and management expected that such subsidiary would continue to have net operating losses in the foreseeable future; therefore, management believed it was more likely than not that all of the deferred tax assets of such subsidiary would not be utilized. Thus, a full valuation allowance of $2.1 million for the deferred tax assets was set up as of the end of fiscal year 2020.

During fiscal year 2021, our subsidiaries in the U.S. generated taxable income sufficient for the utilization of loss carryforwards due to better operating performance and effective control of operating expenses. Management determined that it was more likely than not that future taxable income would be sufficient to allow utilization of the deferred tax assets. Thus, a full valuation allowance of $2.1 million for the deferred tax assets was released as of June 25, 2021 and no valuation allowances for deferred tax assets of our subsidiaries in the U.S. have been set up as of June 30, 2023 and June 24, 2022.

During fiscal year 2020, our subsidiary in the U.K. also generated net operating loss and management expected that such subsidiary would continue to have net operating losses in the foreseeable future. Therefore, management believed it was more likely than not that all of the deferred tax assets of such subsidiary would not be utilized. Thus, a full valuation allowance of $1.6 million for the deferred tax assets was set up as of the end of fiscal year 2020. A full valuation allowance of $4.9 million and $2.1 million were set up for the fiscal year ended June 24, 2022 and June 25, 2021, respectively.

During fiscal year 2023, our subsidiary in the U.K. generated taxable income and was able to utilize loss carryforwards. Management determined that it was more likely than not that future taxable income would be sufficient to allow utilization of the deferred tax assets. Thus, a full valuation allowance of $1.6 million for the deferred tax assets was released as of June 30, 2023.

Income tax liabilities have not been established for withholding tax and other taxes that would be payable on the unremitted earnings in Thailand, which are permanently reinvested. Unremitted earnings in Thailand totaled $135.1 million and $135.5 million as of June 30, 2023 and June 24, 2022, respectively. Unrecognized deferred tax liabilities for such unremitted earnings were $12.3 million and $11.3 million as of June 30, 2023 and June 24, 2022, respectively.

Deferred tax liabilities of $1.9 million and $1.4 million have been established for withholding tax on the unremitted earnings in China for the years ended June 30, 2023 and June 24, 2022, respectively, which are included in non-current deferred tax liability in the consolidated balance sheets.

Uncertain income tax positions

Interest and penalties related to uncertain income tax positions are recognized in income tax expense. The Company had approximately $0.1 million of accrued interest and penalties related to uncertain income tax positions on the consolidated balance sheets as of June 30, 2023. The Company recorded interest and penalties of $0.1 million and $0.4 million for the years ended June 24, 2022 and June 25, 2021, respectively, in the consolidated statements of operations and comprehensive income. The amount of interest and penalties reversed in fiscal 2023 provision for income taxes is not material. With regard to the Thailand jurisdiction, tax years 2017 through 2021 remain open to examination by the local authorities.


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022		June 25, 2021
Beginning balance	$	1,392	$	807	$	970
Additions during the year	15		610		389
Release of tax positions of prior years	(119)		(25)		(552)
Ending balance	$	1,288	$	1,392	$	807

- 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

Subsequent Event (Details) - USD ($) $ in Millions	Aug. 31, 2023	Jun. 30, 2023	Aug. 31, 2022	Aug. 31, 2020	May 31, 2019	Feb. 28, 2018	Aug. 31, 2017
Subsequent Event [Line Items]
Share repurchase program, increase in shares authorized for repurchase			$ 78.7	$ 58.5	$ 50.0	$ 30.0
Share repurchase program, approved amount							$ 30.0
Treasury stock, carrying basis		$ 52.4		$ 247.2
Subsequent Event
Subsequent Event [Line Items]
Share repurchase program, increase in shares authorized for repurchase	$ 47.6
Share repurchase program, approved amount	294.8
Treasury stock, carrying basis	$ 100.0

Accumulated other comprehensive income (loss) ("AOCI") (Tables)

12 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Changes in AOCI, Net of Tax


(in thousands)	Unrealized Gains (Losses) on Available-for-sale Securities		Unrealized Gains (Losses) 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 (loss) before reclassification	(6,339)		157		—		(245)		(6,427)
Amounts reclassified from AOCI	13		(735)		622		—		(100)
Tax effects	—		—		—		—		—
Other comprehensive income (loss)	(6,326)		(578)		622		(245)		(6,527)
Balance as of June 24, 2022	(6,018)		(5,082)		(803)		(890)		(12,793)
Other comprehensive income (loss) before reclassification	2,646		2,444		—		(75)		5,015
Amounts reclassified from AOCI	93		(903)		473		—		(337)
Tax effects	—		—		—		—		—
Other comprehensive income (loss)	2,739		1,541		473		(75)		4,678
Balance as of June 30, 2023	$	(3,279)	$	(3,541)	$	(330)	$	(965)	$	(8,115)

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


(in thousands)		Years Ended
AOCI components	Financial statements line item	June 30, 2023		June 24, 2022
Unrealized gains (losses) on available-for-sale securities	Interest income	$	93	$	13
Unrealized gains (losses) on derivative instruments	Cost of revenues	7,995		7,283
Unrealized gains (losses) on derivative instruments	Selling, general and administrative expenses	334		303
Unrealized gains (losses) on derivative instruments	Foreign exchange gain (loss), net	(8,644)		(7,384)
Unrealized gains (losses) on derivative instruments	Interest expense	(588)		(937)
Retirement benefit plan – Prior service cost	Selling, general and administrative expenses	473		622
Total amounts reclassified from AOCI		$	(337)	$	(100)

Revenues from contracts with customers - Schedule of Activity in the Company's Contract Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022
Contract Liabilities
Beginning balance	$ 1,982	$ 1,680
Advance payment received during the year	14,124	5,927
Revenue recognized	(13,070)	(5,625)
Ending balance	$ 3,036	$ 1,982

Earnings per ordinary share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Earnings Per Share [Abstract]
Net income attributable to shareholders	$ 247,913	$ 200,380	$ 148,341
Weighted-average number of ordinary shares outstanding (thousands of shares)	36,515	36,876	36,872
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units and performance share units (thousands of shares)	340	518	683
Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)	36,855	37,394	37,555
Basic earnings per ordinary share	$ 6.79	$ 5.43	$ 4.02
Diluted earnings per ordinary share	$ 6.73	$ 5.36	$ 3.95
Outstanding performance share units excluded from the computation of diluted earnings per ordinary share (thousands of shares)	0	0	53

- Definition

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

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- Definition

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

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+ Details

- Definition

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

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+ Details

Share-based compensation - Schedule of Performance Share Unit Activity (Details) - Performance Share Units - $ / shares	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Number of Shares
Beginning balance (in shares)	285,882	427,028	440,140
Granted (in shares)	97,142	110,832	184,718
Vested (in shares)	(179,008)	(190,213)	(82,185)
Forfeited (in shares)	0	(61,765)	(115,645)
Ending balance (in shares)	204,016	285,882	427,028
Expected to vest (in shares)	204,016
Weighted- Average Grant Date Fair Value Per Share
Beginning balance (in USD per share)	$ 81.64	$ 57.82	$ 48.37
Granted (in USD per share)	117.35	101.05	69.85
Vested (in USD per share)	70.05	48.65	48.02
Forfeited (in USD per share)	0	53.38	48.02
Ending balance (in USD per share)	108.81	$ 81.64	$ 57.82
Expected to vest (in USD per share)	$ 108.81

Property, plant and equipment, net

12 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property, plant and equipment, net

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


(in thousands)	Land and Land Improvements		Building and Building Improvements		Manufacturing Equipment		Office Equipment		Motor Vehicles		Computers		Construction and Machinery Under Installation		Total
As of June 30, 2023
Cost	$	60,424	$	200,039	$	289,390	$	6,362	$	1,081	$	24,951	$	15,450	$	597,697
Less: Accumulated depreciation	(71)		(73,558)		(189,284)		(5,136)		(852)		(17,873)		—		(286,774)
Less: Impairment reserve	—		—		(573)		—		—		—		—		(573)
Net book value	$	60,353	$	126,481	$	99,533	$	1,226	$	229	$	7,078	$	15,450	$	310,350
As of June 24, 2022
Cost	$	58,489	$	201,403	$	255,972	$	6,330	$	1,053	$	21,329	$	7,962	$	552,538
Less: Accumulated depreciation	(35)		(65,943)		(171,870)		(5,273)		(830)		(15,737)		—		(259,688)
Less: Impairment reserve	—		—		(573)		—		—		—		—		(573)
Net book value	$	58,454	$	135,460	$	83,529	$	1,057	$	223	$	5,592	$	7,962	$	292,277

Depreciation expense amounted to $42.5 million, $37.2 million and $34.7 million for the years ended June 30, 2023, June 24, 2022 and June 25, 2021, respectively, and has been allocated between cost of revenues and selling, general and administrative expenses in the consolidated statements of operations and comprehensive income.

The cost of fully depreciated property, plant and equipment written-off during the years ended June 30, 2023, June 24, 2022 and June 25, 2021 amounted to $16.5 million, $25.1 million and $16.3 million, respectively.

During the year ended June 30, 2023, June 24, 2022 and June 25, 2021, the Company recognized impairment reserves for property, plant and equipment of $0.6 million, $0.6 million and $0.8 million, respectively.

During the years ended June 30, 2023, and June 25, 2021, the Company had de minimis amount of borrowing costs capitalized. During year ended June 24, 2022, the Company had capitalized $0.9 million of borrowing cost.

Income taxes - Schedule of Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income before income taxes	$ 260,096	$ 206,966	$ 150,484
Tax expense calculated at a statutory corporate income tax rate of 20%	52,019	41,393	30,097
Effect of income taxes from locations with tax rates different from Thailand	659	681	198
Income not subject to tax	(43,679)	(35,982)	(24,853)
Income tax on unremitted earnings	2,452	1,417	1,395
Foreign operations	2,003	(1,165)	(2,855)
Tax rebate from research and development application	(124)	(873)	(728)
Provision for uncertain income tax position	(7)	668	(403)
Utilization of loss and tax credits carryforward	(80)	(194)	(610)
Changes in valuation allowance	(1,608)	0	(2,146)
Others	548	641	2,048
Total income tax expense	$ 12,183	$ 6,586	$ 2,143
Income not subject to tax per ordinary shaare on a diluted basis (in USD per share)	$ 1.19	$ 0.96	$ 0.63

Property, plant and equipment, net (Tables)

12 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

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


(in thousands)	Land and Land Improvements		Building and Building Improvements		Manufacturing Equipment		Office Equipment		Motor Vehicles		Computers		Construction and Machinery Under Installation		Total
As of June 30, 2023
Cost	$	60,424	$	200,039	$	289,390	$	6,362	$	1,081	$	24,951	$	15,450	$	597,697
Less: Accumulated depreciation	(71)		(73,558)		(189,284)		(5,136)		(852)		(17,873)		—		(286,774)
Less: Impairment reserve	—		—		(573)		—		—		—		—		(573)
Net book value	$	60,353	$	126,481	$	99,533	$	1,226	$	229	$	7,078	$	15,450	$	310,350
As of June 24, 2022
Cost	$	58,489	$	201,403	$	255,972	$	6,330	$	1,053	$	21,329	$	7,962	$	552,538
Less: Accumulated depreciation	(35)		(65,943)		(171,870)		(5,273)		(830)		(15,737)		—		(259,688)
Less: Impairment reserve	—		—		(573)		—		—		—		—		(573)
Net book value	$	58,454	$	135,460	$	83,529	$	1,057	$	223	$	5,592	$	7,962	$	292,277

Leases - Schedule of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Leases [Abstract]
2024	$ 1,217
2025	71
Total undiscounted lease payments	1,288
Less imputed interest	(21)
Total present value of lease liabilities	1,267
Operating lease liabilities, current portion	$ 1,201	$ 2,319

Commitments and contingencies	12 Months Ended
Commitments and contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Bank guarantees As of June 30, 2023 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 Thai Baht 50.2 million, respectively. In addition, there were other immaterial bank guarantees on behalf of the Company's subsidiary in Israel to support the operations related to the Israeli Customs department. 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 RMB 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 June 30, 2023, the Company had purchase obligations and other commitments to third parties of $1.06 billion. Capital expenditure As of June 30, 2023, the Company had total capital expenditure commitments to third parties of $8.8 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.

Inventories (Tables)

12 Months Ended

Jun. 30, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory


(in thousands)	As of June 30, 2023		As of June 24, 2022
Raw materials	$	157,379	$	275,730
Work in progress	305,627		217,638
Finished goods	28,608		15,203
Goods in transit	27,962		48,574
Inventories	$	519,576	$	557,145

Cash, cash equivalents and short-term investments

12 Months Ended

Jun. 30, 2023

Cash and Cash Equivalents [Abstract]

Cash, cash equivalents and short-term investments

The Company’s cash, cash equivalents, and short-term investments by category is as follows:


					Fair Value
(in thousands)	Carrying Cost		Unrealized Gain/ (Loss)		Cash and Cash Equivalents		Marketable Securities		Other Investments
As of June 30, 2023
Cash	$	230,967	$	—	$	230,967	$	—	$	—
Cash equivalents	401		—		401		—		—
Liquidity funds	41,104		—		—		—		41,104
Certificates of deposit and time deposits	64,278		329		—		64,607		—
Corporate debt securities	161,453		(3,375)		—		158,078		—
U.S. agency and U.S. Treasury securities	55,542		(231)		—		55,311		—
Total	$	553,745	$	(3,277)	$	231,368	$	277,996	$	41,104
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

The cash equivalents include short-term bank deposits, investments in money market funds, and marketable securities with maturities of three months or less at the date of purchase. The effective interest rate on short term bank deposits was 2.4% and 0.5% per annum for the years ended June 30, 2023 and June 24, 2022, respectively.

As of June 30, 2023, the Company had investments in certificates of deposit of $44.6 million and term deposit of $20.0 million which classified as available-for-sale debt securities. As of June 24, 2022, the Company had no investments in certificates of deposit.

As of June 30, 2023 and June 24, 2022, 69% and 59%, respectively, of our cash and cash equivalents were held by the Parent Company.


	June 30, 2023				June 24, 2022
(in thousands)	Carrying Cost		Fair Value		Carrying Cost		Fair Value
Due within one year	$	172,992	$	173,137	$	101,976	$	101,400
Due between one to five years	149,385		145,963		184,197		178,757
Total	$	322,377	$	319,100	$	286,173	$	280,157

During the year ended June 30, 2023, the Company recognized a realized loss of $0.1 million from sales of available-for-sale debt securities in interest income in the consolidated statements of operations and comprehensive income. During the year ended June 24, 2022, the Company recognized a realized loss of a de minimis amount from sales of available-for-sale debt securities in interest income in the consolidated statements of operations and comprehensive income.

As of June 30, 2023 and June 24, 2022, the Company considered the decline in market value of its available-for-sale debt securities by using the AFS debt security impairment model. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. The Company assessed impairment at the individual security level according to the relevant accounting standard by comparing its fair value/market value with its amortized cost. The Company considered factors such as the failure of the issuer of the security to make scheduled interest and principal payments and any changes to the credit rating of the security by a rating agency. The credit rating of the Company's invested securities are still in compliance with the Company's investment policy. No impairment losses on available-for-sale debt securities were recorded for the year ended June 30, 2023 and June 24, 2022.

Leases (Tables)

12 Months Ended

Jun. 30, 2023

Leases [Abstract]

Schedule of Operating Lease Liabilities

As of June 30, 2023, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2024	$	1,217
2025	71

Total undiscounted lease payments	1,288
Less imputed interest	(21)
Total present value of lease liabilities	$	1,267	(1)

(1)Includes current portion of operating lease liabilities of $1.2 million.

Summary of Additional Information Related to Operating and Finance Leases

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


	As of June 30, 2023
Weighted-average remaining lease term (in years)
Operating leases	1.2
Weighted-average discount rate
Operating leases	3.4	%

Schedule of Supplemental Cash Flow Information Related to Operating Leases

The following information represents supplemental disclosure for the statement of cash flows related to operating leases:


(in thousands)	Year Ended June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,477
Financing cash flows from finance leases	$	9
ROU assets obtained in exchange for lease liabilities	$	312

Share-based compensation - Share-based award activity (Details) - shares	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021	Jun. 26, 2020	Dec. 12, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares available for grant (in shares)	2,058,285
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares available for grant (in shares)	1,946,938				1,700,000
2010 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of ordinary shares available for grant (in shares)	0
2017 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	111,347
Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	368,765	459,626	641,875	797,757
Restricted Share Units \| 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	341,706
Restricted Share Units \| 2010 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	27,059
Restricted Share Units \| 2017 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	0
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	204,016	285,882	427,028	440,140
Performance Share Units \| 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	204,016
Performance Share Units \| 2010 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	0
Performance Share Units \| 2017 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share units outstanding (in shares)	0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
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-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-Topic 718
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Summary of significant accounting policies (Tables)

12 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Schedule of Property, Plant and Equipment, Estimated Useful Life

Depreciation is calculated using the straight-line method to write-off the cost of each asset to its residual value over its estimated useful life as follows:


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

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

The reclassifications have been made to the consolidated balance sheet as of June 24, 2022 and the consolidated statement of cash flows for the year ended June 24, 2022 and June 25, 2021 as follows:


	June 24, 2022
(in thousands)	As previously reported	Reclassification	After reclassification
Consolidated Balance Sheet
Current assets
Trade accounts receivable	439,330	13,340	452,670
Contract assets	13,464	(13,340)	124






Consolidated Statement of Cash Flows
Changes in operating assets and liabilities
Trade accounts receivable	(103,970)	(1,580)	(105,550)
Contract assets	(1,586)	1,580	(6)

Contract assets and contract liabilities are presented in the consolidated balance sheets under other current assets and other payables, respectively.


	June 25, 2021
(in thousands)	As previously reported	Reclassification	After reclassification
Consolidated Statement of Cash Flows
Changes in operating assets and liabilities
Trade accounts receivable	(63,810)	1,496	(62,314)
Contract assets	1,378	(1,496)	(118)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$ 231,368	$ 197,996	$ 302,969
Restricted cash	0	369	154
Cash, cash equivalents and restricted cash	$ 231,368	$ 198,365	$ 303,123

Intangibles

12 Months Ended

Jun. 30, 2023

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 June 30, 2023
Software	$	10,533	$	(8,139)	$	—	$	2,394


Total intangibles (1)	$	10,533	$	(8,139)	$	—	$	2,394

(1)Customer relationships and backlog were written-off in March 2023.


(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 $1.3 million, $1.6 million and $1.5 million for the years ended June 30, 2023, June 24, 2022 and June 25, 2021, respectively.

The weighted-average remaining life of customer relationships was:


(years)	As of June 30, 2023	As of June 24, 2022
Software	3.1	3.8
Customer relationships	—	3.1
Total intangibles	3.1	3.8

Based on the carrying amount of intangibles as of June 30, 2023, and assuming no future impairment of the underlying assets, the estimated future amortization during each fiscal year was as follows:


(in thousands)
2024	$	949
2025	675
2026	453
2027	245
2028	72

Total	$	2,394

Summary of significant accounting policies (Policies)

12 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Principles of consolidation

Use of estimates

Reclassifications

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

The reclassifications have been made to the consolidated balance sheet as of June 24, 2022 and the consolidated statement of cash flows for the year ended June 24, 2022 and June 25, 2021 as follows:


	June 24, 2022
(in thousands)	As previously reported	Reclassification	After reclassification
Consolidated Balance Sheet
Current assets
Trade accounts receivable	439,330	13,340	452,670
Contract assets	13,464	(13,340)	124






Consolidated Statement of Cash Flows
Changes in operating assets and liabilities
Trade accounts receivable	(103,970)	(1,580)	(105,550)
Contract assets	(1,586)	1,580	(6)

Contract assets and contract liabilities are presented in the consolidated balance sheets under other current assets and other payables, respectively.


	June 25, 2021
(in thousands)	As previously reported	Reclassification	After reclassification
Consolidated Statement of Cash Flows
Changes in operating assets and liabilities
Trade accounts receivable	(63,810)	1,496	(62,314)
Contract assets	1,378	(1,496)	(118)

These reclassifications do not affect the Company’s net income or shareholders’ equity.

Foreign currency transactions and translation

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

Cash and cash equivalents

Short-term investments

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

Trade accounts receivable

Contract assets

Contract liabilities

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

Inventory

Leases

Operating leases

Finance leases

Property, plant and equipment


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

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

Intangibles

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

Goodwill

Goodwill is not deductible for tax purposes. Accordingly, if goodwill is impaired for financial reporting purposes, there is no impact on deferred taxes.

Treasury shares

Borrowing costs

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.

Derivatives

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

For presentation in consolidated statements of cash flows are classified in the same line item as the underlying item.

Concentration of credit risk

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

Revenue recognition and sales of finished goods

Services

Contract Costs

Shipping and Handling

Warranty provision

Share-based compensation

Employee contribution plan

Severance liabilities

Annual leave

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

Income taxes

New Accounting Pronouncements-adopted by the Company

New Accounting Pronouncements—adopted by the CompanyIn November 2021, the Financial Accounting Standards 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 consolidated financial statements.

Income taxes - Schedule of Changes to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Changes To Uncertain Income Tax Positions [Roll Forward]
Beginning balance	$ 1,392	$ 807	$ 970
Additions during the year	15	610	389
Release of tax positions of prior years	(119)	(25)	(552)
Ending balance	$ 1,288	$ 1,392	$ 807

Severance liabilities - Schedule of Principal Weighted Average Actuarial Assumptions Used to Determine Severance Liabilities (Details)	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Minimum
Discount rate	3.50%	2.10%	0.20%
Future salary increases	3.50%	3.50%	3.50%
Maximum
Discount rate	5.30%	3.90%	2.90%
Future salary increases	10.00%	10.00%	10.00%

Leases

12 Months Ended

Jun. 30, 2023

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.

As of June 30, 2023, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2024	$	1,217
2025	71

Total undiscounted lease payments	1,288
Less imputed interest	(21)
Total present value of lease liabilities	$	1,267	(1)

(1)Includes current portion of operating lease liabilities of $1.2 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 years ended June 30, 2023, June 24, 2022 and June 25, 2021 was $2.4 million, $2.2 million and $2.6 million, respectively.

Rental expense for short-term leases for the years ended June 30, 2023, June 24, 2022 and June 25, 2021 was $0.8 million, $0.2 million and $0.3 million, respectively.

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


	As of June 30, 2023
Weighted-average remaining lease term (in years)
Operating leases	1.2
Weighted-average discount rate
Operating leases	3.4	%

The following information represents supplemental disclosure for the statement of cash flows related to operating leases:


(in thousands)	Year Ended June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,477
Financing cash flows from finance leases	$	9
ROU assets obtained in exchange for lease liabilities	$	312

Shareholders' equity	12 Months Ended
Shareholders' equity	Jun. 30, 2023
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 year ended June 30, 2023, Fabrinet issued 235,476 ordinary shares upon the vesting of restricted share units and performance share units under the Equity Incentive Plans, net of shares withheld. For the year ended June 24, 2022, Fabrinet issued 299,655 ordinary shares upon the vesting of restricted share units and performance share units under the Equity Incentive Plans, net of shares withheld. For the year ended June 25, 2021, Fabrinet issued 277,078 ordinary shares upon the vesting of restricted share units and performance share units under the Equity Incentive Plans, net of shares withheld. All such issued shares are fully paid. Treasury shares In August 2017, the Company’s board of directors approved a share repurchase program to permit the Company to repurchase up to $30.0 million worth of its issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations. In February 2018, May 2019, 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 year ended June 30, 2023, the Company repurchased 488,477 shares under the program at an average price per share (excluding other direct costs) of $97.38, totaling $47.6 million. As of June 30, 2023, the Company had a remaining authorization to repurchase up to $52.4 million 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 equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
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-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
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-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

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-Topic 505
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-URI https://asc.fasb.org//505/tableOfContent

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-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 13
-Publisher FASB
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-Topic 505
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+ Details

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Income Statement [Abstract]
Revenues	$ 2,645,237	$ 2,262,224	$ 1,879,350
Cost of revenues	(2,308,964)	(1,983,630)	(1,657,987)
Gross profit	336,273	278,594	221,363
Selling, general and administrative expenses	(77,673)	(73,941)	(70,567)
Restructuring and other related costs	(6,896)	(135)	(43)
Operating income	251,704	204,518	150,753
Interest income	11,234	2,205	3,783
Interest expense	(1,472)	(432)	(1,100)
Foreign exchange gain (loss), net	(1,211)	2,302	508
Other income (expense), net	(159)	(1,627)	(3,460)
Income before income taxes	260,096	206,966	150,484
Income tax expense	(12,183)	(6,586)	(2,143)
Net income	247,913	200,380	148,341
Other comprehensive income (loss), net of tax
Change in net unrealized gain (loss) on available-for-sale securities	2,739	(6,326)	(1,182)
Change in net unrealized gain (loss) on derivative instruments	1,541	(578)	(5,106)
Change in net retirement benefits plan – prior service cost	473	622	584
Change in foreign currency translation adjustment	(75)	(245)	585
Total other comprehensive income (loss), net of tax	4,678	(6,527)	(5,119)
Net comprehensive income	$ 252,591	$ 193,853	$ 143,222
Earnings per share
Basic earnings per share (in USD per share)	$ 6.79	$ 5.43	$ 4.02
Diluted earnings per share (in USD per share)	$ 6.73	$ 5.36	$ 3.95
Weighted average number of ordinary shares outstanding (thousands of shares)
Weighted average number of ordinary shares outstanding, basic (in shares)	36,515	36,876	36,872
Weighted average number of ordinary shares outstanding, diluted (in shares)	36,855	37,394	37,555

Borrowings - Additional Information (Details) $ in Thousands, ฿ in Millions	12 Months Ended
	Jun. 30, 2023 USD ($)	Mar. 09, 2023 USD ($)	Jun. 24, 2022 USD ($)	Sep. 27, 2019 USD ($)	Sep. 03, 2019 USD ($)	Aug. 20, 2019 USD ($)	Aug. 20, 2019 THB (฿)
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity						$ 160,900
Loan payable, due June 2024
Line of Credit Facility [Line Items]
Long term debt outstanding	$ 12,188		$ 27,421
Loan payable, due June 2024 \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.35%
2023 Credit Facility Agreement \| Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity		$ 55,000
Loan to value ratio		0.60
Minimum service coverage ratio		1.25
Maximum debt to equity ratio		1.0
Service coverage ratio, minimum at payment of a dividend		1.50
Long term debt outstanding	$ 0
Term Loan Agreement
Line of Credit Facility [Line Items]
Long term debt outstanding	12,200
Bank of Ayudhya Public Company Limited
Line of Credit Facility [Line Items]
Debt instrument, periodic payment	3,000
Interest expense on debt	$ 2,100
Bank of Ayudhya Public Company Limited \| Term Loan Agreement
Line of Credit Facility [Line Items]
Loan to value ratio	0.65
Minimum service coverage ratio	1.25
Maximum debt to equity ratio	1.0
Service coverage ratio, minimum at payment of a dividend	1.50
Bank of Ayudhya Public Company Limited \| Credit Facility Agreement
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity				$ 3,600			฿ 110.0
Bank of Ayudhya Public Company Limited \| Term Loan Agreement
Line of Credit Facility [Line Items]
Debt instrument, principal amount					$ 60,900

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2019-05 [Member]

- Definition

Indicates amendment to accounting standards.

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-Section 65
-Paragraph 1
-Subparagraph (b)(1)
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Reference 64: http://www.xbrl.org/2003/role/disclosureRef
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Reference 69: http://www.xbrl.org/2003/role/disclosureRef
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Reference 70: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (a)
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Reference 71: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147481925/310-20-65-2

Reference 72: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 250
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

+ Details

Cash, cash equivalents and short-term investments - Summary of Cost and Estimated Fair Value of Short-term Investments Classified as Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Investments Classified by Contractual Maturity Date [Line Items]
Fair value, total	$ 277,996	$ 248,680
Carrying Cost
Investments Classified by Contractual Maturity Date [Line Items]
Carrying cost, due within one year	172,992	101,976
Carrying cost, due between one to five years	149,385	184,197
Carrying cost, total	322,377	286,173
Fair Value
Investments Classified by Contractual Maturity Date [Line Items]
Fair value, due within one year	173,137	101,400
Fair value, due between one to five years	145,963	178,757
Fair value, total	$ 319,100	$ 280,157

Share-based compensation - Schedule of Restricted Share Unit Activity (Details) - Restricted Share Units - $ / shares	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Number of Shares
Beginning balance (in shares)	459,626	641,875	797,757
Granted (in shares)	165,378	186,633	230,759
Vested (in shares)	(233,607)	(323,326)	(358,508)
Forfeited (in shares)	(22,632)	(45,556)	(28,133)
Ending balance (in shares)	368,765	459,626	641,875
Expected to vest (in shares)	327,128
Weighted- Average Grant Date Fair Value Per Share
Beginning balance (in USD per share)	$ 75.14	$ 55.74	$ 46.88
Granted (in USD per share)	117.35	101.25	70.53
Vested (in USD per share)	67.85	52.20	45.39
Forfeited (in USD per share)	94.69	71.53	57.86
Ending balance (in USD per share)	97.49	$ 75.14	$ 55.74
Expected to vest (in USD per share)	$ 98.07

Employee benefit plans	12 Months Ended
Employee benefit plans	Jun. 30, 2023
Retirement Benefits [Abstract]
Employee benefit plans	Employee benefit plans Employee contribution plan The Company operates a defined contribution plan, known as a provident fund, in its subsidiaries in Thailand and the United Kingdom. The assets of these plans are in separate trustee-administered funds. The provident fund is funded by matching payments from employees and by the subsidiaries on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company’s contributions to the provident fund amounted to $6.3 million, $6.1 million and $6.0 million during the years ended June 30, 2023, June 24, 2022 and June 25, 2021, respectively. The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (“401(k) Plan”), a Defined Contribution Plan under ERISA, at its subsidiaries in the United States which provides retirement benefits for eligible employees through tax deferred salary deductions. The 401(k) Plan allows employees to contribute up to 80% of their annual compensation, subject to annual contributions limits established by the Internal Revenue Service. The Company provides for a 100% match of employees’ contributions to the 401(k) Plan up to the first 6% of annual compensation. All matching contributions are made in cash and vest immediately. The Company’s matching contributions to the 401(k) Plan were $0.8 million, $0.7 million and $0.8 million during the years ended June 30, 2023, June 24, 2022 and June 25, 2021, respectively. Executive incentive plan and employee performance bonuses For the years ended June 30, 2023 and June 24, 2022, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and non-U.S. GAAP operating margin or gross margin targets. During the years ended June 30, 2023, June 24, 2022 and June 25, 2021, discretionary merit-based bonus awards were also available to Fabrinet’s non-executive employees. Bonus distributions to employees were $13.0 million, $11.0 million and $10.2 million for the years ended June 30, 2023, June 24, 2022 and June 25, 2021, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
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-Name Accounting Standards Codification
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-Paragraph 17
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-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (d)(i)
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Fair value of financial instruments - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Derivatives designated as hedging instruments
Derivative assets, gross balances	$ 221	$ 110
Derivative liabilities, gross balances	(5,236)	(7,579)
Foreign currency forward and option contracts
Derivatives not designated as hedging instruments
Derivative Assets	2	0
Derivative Liabilities	(1,256)	(1,561)
Foreign currency forward contracts
Derivatives designated as hedging instruments
Derivative Assets	4	0
Derivative Liabilities	(3,980)	(4,821)
Interest rate swaps
Derivatives designated as hedging instruments
Derivative Assets	215	110
Derivative Liabilities	$ 0	$ (1,197)

Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Jun. 30, 2023	Aug. 11, 2023	Dec. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jun. 30, 2023
Current Fiscal Year End Date	--06-30
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 4.7
Entity Common Stock, Shares Outstanding		36,190,847
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement relating to its 2023 annual meeting of shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such proxy statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0001408710

Property, plant and equipment, net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Property, Plant and Equipment [Line Items]
Cost	$ 597,697	$ 552,538
Less: Accumulated depreciation	(286,774)	(259,688)
Less: Impairment reserve	(573)	(573)
Net book value	310,350	292,277
Land and Land Improvements
Property, Plant and Equipment [Line Items]
Cost	60,424	58,489
Less: Accumulated depreciation	(71)	(35)
Less: Impairment reserve	0	0
Net book value	60,353	58,454
Building and Building Improvements
Property, Plant and Equipment [Line Items]
Cost	200,039	201,403
Less: Accumulated depreciation	(73,558)	(65,943)
Less: Impairment reserve	0	0
Net book value	126,481	135,460
Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Cost	289,390	255,972
Less: Accumulated depreciation	(189,284)	(171,870)
Less: Impairment reserve	(573)	(573)
Net book value	99,533	83,529
Office Equipment
Property, Plant and Equipment [Line Items]
Cost	6,362	6,330
Less: Accumulated depreciation	(5,136)	(5,273)
Less: Impairment reserve	0	0
Net book value	1,226	1,057
Motor Vehicles
Property, Plant and Equipment [Line Items]
Cost	1,081	1,053
Less: Accumulated depreciation	(852)	(830)
Less: Impairment reserve	0	0
Net book value	229	223
Computers
Property, Plant and Equipment [Line Items]
Cost	24,951	21,329
Less: Accumulated depreciation	(17,873)	(15,737)
Less: Impairment reserve	0	0
Net book value	7,078	5,592
Construction and Machinery Under Installation
Property, Plant and Equipment [Line Items]
Cost	15,450	7,962
Less: Accumulated depreciation	0	0
Less: Impairment reserve	0	0
Net book value	$ 15,450	$ 7,962

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Current assets
Cash and cash equivalents	$ 231,368	$ 197,996
Short-term restricted cash	0	220
Short-term investments	319,100	280,157
Trade accounts receivable, net of allowance for doubtful accounts of $965 and $1,271, respectively	531,767	452,670
Inventories	519,576	557,145
Prepaid expenses	7,849	11,626
Other current assets	42,880	25,357
Total current assets	1,652,540	1,525,171
Non-current assets
Long-term restricted cash	0	149
Property, plant and equipment, net	310,350	292,277
Intangibles, net	2,394	3,508
Operating right-of-use assets	1,634	4,084
Deferred tax assets	12,095	9,800
Other non-current assets	635	652
Total non-current assets	327,108	310,470
Total Assets	1,979,648	1,835,641
Current liabilities
Long-term borrowings, current portion, net	12,156	12,156
Trade accounts payable	381,129	439,684
Fixed assets payable	13,526	9,085
Operating lease liabilities, current portion	1,201	2,319
Income tax payable	6,024	2,898
Accrued payroll, bonus and related expenses	23,748	20,374
Accrued expenses	20,447	24,758
Other payables	23,654	27,213
Total current liabilities	481,885	538,487
Non-current liabilities
Long-term borrowings, non-current portion, net	0	15,202
Deferred tax liability	4,799	6,001
Operating lease liabilities, non-current portion	66	1,476
Severance liabilities	22,159	18,384
Other non-current liabilities	2,081	2,409
Total non-current liabilities	29,105	43,472
Total Liabilities	510,990	581,959
Commitments and contingencies (Note 19)
Shareholders’ equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of June 30, 2023 and June 24, 2022)	0	0
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 39,284,176 shares and 39,048,700 shares issued as of June 30, 2023 and June 24, 2022, respectively; and 36,183,682 shares and 36,436,683 shares outstanding as of June 30, 2023 and June 24, 2022, respectively)	393	390
Additional paid-in capital	206,624	196,667
Less: Treasury shares (3,100,494 shares and 2,612,017 shares as of June 30, 2023 and June 24, 2022, respectively)	(194,833)	(147,258)
Accumulated other comprehensive income (loss)	(8,115)	(12,793)
Retained earnings	1,464,589	1,216,676
Total Shareholders’ Equity	1,468,658	1,253,682
Total Liabilities and Shareholders’ Equity	$ 1,979,648	$ 1,835,641

Severance liabilities - Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022
Retirement Benefits [Abstract]
Accumulated benefit obligations	$ 15,168	$ 13,018

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Pay vs Performance Disclosure
Net income	$ 247,913	$ 200,380	$ 148,341

- Definition

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

+ References

+ Details

Leases - Additional Information (Details) $ in Millions	12 Months Ended
Leases - Additional Information (Details) $ in Millions	Jun. 30, 2023 USD ($) lease	Jun. 24, 2022 USD ($)	Jun. 25, 2021 USD ($)
Number of intercompany leases \| lease	1
Rental expense for long-term leases	$ 2.4	$ 2.2	$ 2.6
Rental expense for short-term leases	$ 0.8	$ 0.2	$ 0.3
Minimum
Lessee operating lease option to extend term	1 year
Maximum
Lessee operating lease option to extend term	5 years

Severance liabilities - Schedule of Future Maturities of Severance Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Retirement Benefits [Abstract]
2024	$ 1,449
2025	2,022
2026	1,389
2027	1,641
2028	2,045
Thereafter	13,824
Total	$ 22,370	$ 18,588	$ 19,782

Business segments and geographic information - Schedule of Total Revenues by Percentage from Individual Customers Representing Ten Percent or More of Total Revenues (Details) - Revenue - Customer Concentration Risk	12 Months Ended
	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Cisco Systems Inc.
Revenue, Major Customer [Line Items]
Concentration of risk percentage	15.60%	25.40%	10.70%
Lumentum Operations LLC
Revenue, Major Customer [Line Items]
Concentration of risk percentage	15.40%	10.30%	13.60%
Nvidia Corporation
Revenue, Major Customer [Line Items]
Concentration of risk percentage	12.50%
Infinera Corporation
Revenue, Major Customer [Line Items]
Concentration of risk percentage	12.40%	12.50%	11.60%

Employee benefit plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee benefit plans (Details) - USD ($) $ in Millions	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Defined Contribution and Defined Benefit Plans [Line Items]
Bonus distributions to employees	$ 13.0	$ 11.0	$ 10.2
Provident Fund
Defined Contribution and Defined Benefit Plans [Line Items]
Defined contribution plan, employer annual contribution	6.3	6.1	6.0
Defined Contribution Plan 401k
Defined Contribution and Defined Benefit Plans [Line Items]
Defined contribution plan, employer annual contribution	$ 0.8	$ 0.7	$ 0.8
Employees maximum contribution to 401 (K) Plan	80.00%
Percentage of employees' contribution, eligible for employer match	100.00%
Percentage of employees' annual contribution, eligible for employers match	6.00%

Business segments and geographic information - Schedule of Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 24, 2022	Jun. 25, 2021
Segment Reporting Information [Line Items]
Long-lived assets	$ 310,350	$ 292,277	$ 241,129
Thailand
Segment Reporting Information [Line Items]
Long-lived assets	264,382	240,750	190,843
U.S.
Segment Reporting Information [Line Items]
Long-lived assets	25,267	25,938	27,403
China
Segment Reporting Information [Line Items]
Long-lived assets	17,407	19,686	14,977
Israel
Segment Reporting Information [Line Items]
Long-lived assets	2,796	4,025	5,271
Others
Segment Reporting Information [Line Items]
Long-lived assets	$ 498	$ 1,878	$ 2,635

Severance liabilities (Tables)

12 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Schedule of Severance Liabilities

The following table provides information regarding severance liabilities:


	Years Ended
(in thousands)	June 30, 2023		June 24, 2022
Changes in severance liabilities
Balance, beginning of the fiscal year	$	18,588	$	19,782
Current service cost	$	2,349	$	2,318
Interest cost	683		518
Benefit paid	(288)		(322)
Unrealized loss (gain) on exchange rate	(58)		(2,133)
Actuarial (gain) loss on obligation	1,089		(1,542)
Foreign currency translation	7		(33)
Balance, end of the fiscal year	$	22,370	$	18,588
Changes in plan assets
Balance, beginning of the fiscal year	$	338	$	356
Actual return on plan assets	$	—	$	(13)
Employer contributions	—		38

Foreign currency translation	11		(43)
Balance, end of the fiscal year	$	349	$	338
Underfunded status	$	(22,021)	$	(18,250)

Schedule of Future Maturities of Severance Liabilities

The following table sets forth our severance liabilities as of June 30, 2023:


(in thousands)
2024	$	1,449
2025	2,022
2026	1,389
2027	1,641
2028	2,045
Thereafter	13,824

Total	$	22,370

Schedule of Severance Liabilities Recognized in Balance Sheet

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


(in thousands)	As of June 30, 2023		As of June 24, 2022
Non-current assets	$	138	$	134
Non-current liabilities	$	22,159	$	18,384

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The following table provides information regarding accumulated benefit obligations:


(in thousands)	As of June 30, 2023		As of June 24, 2022
Accumulated benefit obligations	$	15,168	$	13,018

Schedule of Principal Actuarial Assumptions Used

The principal actuarial assumptions used were as follows:

Weighted average actuarial assumptions used to determine severance liabilities


	Years Ended
	June 30, 2023	June 24, 2022	June 25, 2021
Discount rate	3.5% - 5.3%	2.1% - 3.9%	0.2% - 2.9%
Future salary increases	3.5% - 10.0%	3.5% - 10.0%	3.5% - 10.0%

Weighted average actuarial assumptions used to determine benefit costs


	Years Ended
	June 30, 2023	June 24, 2022	June 25, 2021
Discount rate	0.2% - 2.9%	0.2% - 2.9%	0.4% - 3.1%
Expected long-term rate of return on assets	2.1%	2.1%	2.3%

Summary of significant accounting policies - Schedule of Property, Plant and Equipment, Estimated Useful Life (Details)	Jun. 30, 2023
Land improvements
Estimated useful life	10 years
Building and building improvements \| Minimum
Estimated useful life	5 years
Building and building improvements \| Maximum
Estimated useful life	30 years
Manufacturing equipment \| Minimum
Estimated useful life	3 years
Manufacturing equipment \| Maximum
Estimated useful life	7 years
Office equipment \| Minimum
Estimated useful life	3 years
Office equipment \| Maximum
Estimated useful life	5 years
Motor vehicles \| Minimum
Estimated useful life	3 years
Motor vehicles \| Maximum
Estimated useful life	5 years
Computer hardware \| Minimum
Estimated useful life	3 years
Computer hardware \| Maximum
Estimated useful life	5 years

Trade accounts receivable, net

12 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Trade accounts receivable, net


(in thousands)	As of June 30, 2023		As of June 24, 2022
Trade accounts receivable	$	532,732	$	453,941
Less: Allowance for doubtful account	(965)		(1,271)
Trade accounts receivable, net	$	531,767	$	452,670