Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 24, 2016	Aug. 05, 2016	Dec. 25, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 24, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Trading Symbol	FN
Entity Registrant Name	FABRINET
Entity Central Index Key	0001408710
Current Fiscal Year End Date	--06-24
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		36,203,905
Entity Public Float			$ 828,900,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015
Current assets
Cash and cash equivalents	$ 142,804	$ 112,978
Marketable securities	141,709	142,866
Trade accounts receivable, net	196,145	134,952
Inventory, net	181,499	130,613
Deferred tax assets	1,358	1,662
Prepaid expenses	3,114	2,135
Other current assets	6,662	1,833
Total current assets	673,291	527,039
Non-current assets
Property, plant and equipment, net	178,410	140,654
Intangibles, net	499	137
Deferred tax assets	1,806	2,249
Deferred debt issuance costs	2,444	2,424
Total non-current assets	183,159	145,464
Total assets	856,450	672,503
Current liabilities
Bank borrowings, including revolving loan and current portion of long-term loans from banks	24,600	36,000
Trade accounts payable	172,052	115,319
Fixed assets related payable	20,628	6,026
Income tax payable	2,010	1,470
Accrued payroll, bonus and related expenses	12,300	9,804
Accrued expenses	8,072	6,405
Other payables	16,356	6,024
Total current liabilities	256,018	181,048
Non-current liabilities
Long-term loan from bank, non-current portion	36,400	4,500
Deferred tax liability	854	737
Severance liabilities	6,684	5,477
Other non-current liabilities	2,075	1,797
Total non-current liabilities	46,013	12,511
Total liabilities	302,031	193,559
Commitments and contingencies (Note 17)
Shareholders' equity
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of June 24, 2016 and June 26, 2015)
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 36,156,446 shares and 35,437,654 shares issued and outstanding as of June 24, 2016 and June 26, 2015, respectively)	362	354
Additional paid-in capital	102,325	89,390
Accumulated other comprehensive income (loss)	591	(44)
Retained earnings	451,141	389,244
Total shareholders' equity	554,419	478,944
Total Liabilities and Shareholders' Equity	$ 856,450	$ 672,503

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 24, 2016	Jun. 26, 2015
Preferred shares, shares authorized	5,000,000	5,000,000
Preferred shares, par value	$ 0.01	$ 0.01
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Ordinary shares, shares authorized	500,000,000	500,000,000
Ordinary shares, par value	$ 0.01	$ 0.01
Ordinary shares, shares issued	36,156,446	35,437,654
Ordinary shares, shares outstanding	36,156,446	35,437,654

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Revenues	$ 976,747	$ 773,587	$ 677,854
Cost of revenues	(857,224)	(685,814)	(603,621)
Gross profit	119,523	87,773	74,233
Selling, general and administrative expenses	(49,753)	(39,460)	(27,664)
Income related to flooding	36		44,748
Expenses related to reduction in workforce		(1,153)
Operating income	69,806	47,160	91,317
Interest income	1,535	1,253	1,793
Interest expense	(1,569)	(616)	(713)
Foreign exchange loss, net	(1,916)	(19)	(24)
Other income (expense), net	376	(152)	797
Income before income taxes	68,232	47,626	93,170
Income tax expense	(6,335)	(3,984)	(1,439)
Net income	61,897	43,642	91,731
Other comprehensive income (loss), net of tax:
Change in net unrealized gains (loss) on marketable securities	443	(44)
Change in net unrealized gains on derivative instruments	192
Other comprehensive income	635	(44)
Net comprehensive income	$ 62,532	$ 43,598	$ 91,731
Earnings per share
Basic	$ 1.73	$ 1.23	$ 2.63
Diluted	$ 1.68	$ 1.21	$ 2.58
Weighted average number of ordinary shares outstanding (thousands of shares)
Basic	35,857	35,354	34,938
Diluted	36,872	35,984	35,589

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Ordinary Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning Balance (in shares) at Jun. 28, 2013		34,634,967
Beginning Balance at Jun. 28, 2013	$ 325,318	$ 346	$ 71,101		$ 253,871
Net income	91,731				91,731
Share-based compensation expense	5,547		5,547
Issuance of ordinary shares (in shares)		517,805
Issuance of ordinary shares	4,567	$ 6	4,561
Tax withholdings related to net share settlement of restricted share units	(327)		(327)
Ending Balance (in shares) at Jun. 27, 2014		35,152,772
Ending Balance at Jun. 27, 2014	426,836	$ 352	80,882		345,602
Net income	43,642				43,642
Other comprehensive income (loss)	(44)			$ (44)
Share-based compensation expense	8,027		8,027
Issuance of ordinary shares (in shares)		284,882
Issuance of ordinary shares	835	$ 2	833
Tax withholdings related to net share settlement of restricted share units	(352)		(352)
Ending Balance (in shares) at Jun. 26, 2015		35,437,654
Ending Balance at Jun. 26, 2015	478,944	$ 354	89,390	(44)	389,244
Net income	61,897				61,897
Other comprehensive income (loss)	635			635
Share-based compensation expense	9,927		9,927
Issuance of ordinary shares (in shares)		718,792
Issuance of ordinary shares	5,479	$ 8	5,471
Tax withholdings related to net share settlement of restricted share units	(2,463)		(2,463)
Ending Balance (in shares) at Jun. 24, 2016		36,156,446
Ending Balance at Jun. 24, 2016	$ 554,419	$ 362	$ 102,325	$ 591	$ 451,141

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Cash flows from operating activities
Net income for the year	$ 61,897	$ 43,642	$ 91,731
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	17,357	12,947	10,658
Gain on disposal of property, plant and equipment	(73)	(42)	(28)
Loss from sales and maturities of marketable securities	194	120
Amortization of investment premium	798	985
Amortization of deferred debt issuance costs	758	527
Income related to flooding	(828)		(45,211)
Proceeds from insurers in settlement of claim related to flood damage	272		7,416
(Reversal of) allowance for doubtful accounts	(17)	13	(72)
Unrealized loss on exchange rate and fair value of derivative	1,905	671	722
Share-based compensation	9,927	8,027	5,547
Deferred income tax	864	(878)	65
Other non-cash expenses	1,744	1,722	634
Reversal of uncertain tax positions			(1,538)
(Reversal of) inventory obsolescence	(521)	397	443
Loss from written-off inventory due to flood loss	233
Changes in operating assets and liabilities
Trade accounts receivable	(61,013)	(33,797)	17,379
Inventory	(50,598)	(6,440)	(36,051)
Other current assets and non-current assets	(5,901)	(283)	(1,035)
Trade accounts payable	56,308	20,466	17,714
Income tax payable	573	446	737
Other current liabilities and non-current liabilities	13,209	4,106	4,951
Liabilities to third parties due to flood losses			(7,512)
Net cash provided by operating activities	47,088	52,629	66,550
Cash flows from investing activities
Purchase of marketable securities	(108,341)	(203,407)
Proceeds from sales of marketable securities	41,836	29,036
Proceeds from maturities of marketable securities	67,113	30,356
Purchase of property, plant and equipment	(40,616)	(51,398)	(10,835)
Gain on cash settlement of hedged forward contracts	34
Proceeds from disposal of property, plant and equipment	194	48	29
Purchase of intangibles	(379)	(134)	(1)
Proceeds from insurers in settlement of claims related to flood damage	556		37,795
Net cash (used in) provided by investing activities	(39,603)	(195,499)	26,988
Cash flows from financing activities
Payment of debt issuance costs	(654)	(1,946)
Proceeds of short-term loan from bank	18,000	30,000
Repayment of short-term loan from bank	(41,500)
Proceeds of long-term loan from bank	50,000
Repayment of long-term loan from bank	(6,000)	(6,000)	(12,411)
Proceeds from issuance of ordinary shares under employee share option plan	5,479	835	4,567
Withholding tax related to net share settlement of restricted share units	(2,463)	(352)	(327)
Net cash provided by (used in) financing activities	22,862	22,537	(8,171)
Net increase (decrease) in cash and cash equivalents	30,347	(120,333)	85,367
Movement in cash and cash equivalents
Cash and cash equivalents at beginning of period	112,978	233,477	149,716
Increase (decrease) in cash and cash equivalents	30,347	(120,333)	85,367
Effect of exchange rate on cash and cash equivalents	(521)	(166)	(1,606)
Cash and cash equivalents at end of period	142,804	112,978	233,477
Cash paid for
Interest	1,091	590	709
Taxes	5,473	2,841	198
Cash received for interest	1,049	749	1,672
Non-cash investing and financing activities
Fixed assets-related payable	$ 20,628	$ 6,026	$ 1,130

Business and organization

12 Months Ended

Jun. 24, 2016

Business and organization

1.	Business and organization

Description of Business

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

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

Summary of significant accounting policies

12 Months Ended

Jun. 24, 2016

Summary of significant accounting policies

2.	Summary of significant accounting policies

Principles of consolidation

The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. Fiscal year 2016, fiscal year 2015 and fiscal year 2014 ended on June 24, 2016, June 26, 2015 and June 27, 2014, respectively, and each consisted of 52 weeks.

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

Where necessary, comparative figures have been reclassified to conform to the current year presentation.

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 expense during the year. The Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Company’s reported financial position or results of operations may be materially different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based compensation, allowance for doubtful accounts, income taxes, and inventory obsolescence, among others. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to differ from actual results, adjustments will be made in subsequent periods to reflect more current information.

Foreign currency transactions and translation

The consolidated financial statements are presented in United States dollars (“$” or “USD”).

The functional currency of Fabrinet and its subsidiaries is the USD. Transactions in currencies other than the functional currency are translated into the functional currency 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 other income (expense) in the accompanying consolidated statements of operations and comprehensive income.

Cash and cash equivalents

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

Marketable securities

Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date. The Company may sell certain of the Company’s marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s marketable securities generally range from three months to three years. The Company’s marketable securities consist of investment in U.S. Treasury and fixed income securities and have been classified and accounted for as available-for-sale.

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

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

Trade accounts receivable

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

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

Inventory

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

Leases

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

Property, plant and equipment

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


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

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

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

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

Intangibles

Intangibles are stated at historical cost less amortization. Amortization is calculated using the straight-line 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 acquisition, construction or production of assets, the capitalization rate used to determine the amount of interest to be capitalized is the weighted average interest rate applicable to the Company’s outstanding borrowings during the year. Where funds are borrowed specifically for the acquisition, construction or production of assets, the amount of borrowing costs eligible for capitalization on the respective assets is determined as the actual borrowing costs are incurred on that borrowing during the respective periods.

Fair value of financial instruments

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

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

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

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

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

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

Derivatives

Derivatives assets and liabilities are recognized on the consolidated balance sheets as other current assets or accrued expenses, and are measured at fair value.

The Company applies hedge accounting to arrangements that qualify and are designated for cash flow 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 qualified as hedges of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges which include forward currency contracts. In a cash flow hedging relationship, the effective portion of the change in the fair value of the hedging derivative is initially recorded in accumulated other comprehensive income (loss) (“AOCI”), while any ineffective portion is recognized directly in earnings, as a component of other income (expense). The portion of gain or loss on the derivative instrument remains in AOCI until the forecasted transaction is recognized in earnings. The gain or loss on cash settlement of the hedging derivatives are presented based on the underlying transaction being hedged.

The Company also enters into derivative contracts to economically hedge the foreign currency risk that does not qualify for hedge accounting. The changes in the fair value of these derivatives are recorded directly in earnings as a component of other income (expense), net. In accordance with the fair value measurement guidance, the Company’s accounting policy is to measure the credit risk of our 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, defined 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, cash equivalents, marketable securities, derivatives, and accounts receivable.

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

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

Revenue recognition

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

Services

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

Services revenue of $31.7 million, $32.3 million and $25.5 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively.

Sales of goods

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

Certain customers may request the Company to store finished products purchased by them at the Company’s warehouse. In these instances, the Company receives a written request from the customer asking the Company to hold the inventory at the Company’s warehouse and the ordered goods are segregated in the Company’s warehouse from other inventory and cannot be used to fulfil other customer orders. In these situations, revenue is only recognized when persuasive evidence of the sales arrangement exists, the goods are completed and ready for shipment, pricing is fixed or determinable, collection is reasonably assured, and title and risk of loss have passed to the customer.

Warranty provision

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

Warranty cost allowances of $0.1 million, $0.03 million and $0.02 million were recognized in the consolidated statements of operations and comprehensive income for the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively.

Shipping and handling costs

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

Share-based compensation

Share-based compensation is recognized in the consolidated financial statements based on grant-date fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The Company estimates the fair value of share option awards utilizing the Black-Scholes-Merton option-pricing model (“BSM”), net of estimated forfeitures. For restricted share units, the fair value is 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 subsidiary in Thailand. The assets of this plan are in a separate trustee-administered fund. The provident fund is funded by matching payments from employees and by the subsidiary on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company sponsors the Fabrinet U.S. 401(k) Retirement Plan (the “401(k) Plan”), a Defined Contribution Plan under ERISA, at its subsidiaries in the United States, which provides retirement benefits for its eligible employees through tax deferred salary deductions.

Severance liabilities

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

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

Annual leave

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

Income taxes

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

Fabrinet’s subsidiaries are subject to income tax audits by the respective tax authorities in all of the jurisdictions in which they operate. The determination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations. The Company recognizes liabilities based on its estimate of whether, and the extent to which, additional tax liabilities are probable. 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. The Company has determined that it is more likely than not that deferred tax asset attributable to a subsidiary in the United States will not be realized, primarily due to uncertainties related to its ability to utilize its net operating loss carryforward before they expire. Accordingly, the Company has established a valuation allowance for such deferred tax asset. If there is a change in the Company’s ability to realize its deferred tax assets for which a valuation allowance has been established, then its tax provision may decrease in the period in which it determines that realization is more likely than not. Likewise, if the Company determines that it is not more likely than not that its deferred tax assets will be realized, then a valuation allowance may be established for such deferred tax assets and the Company’s tax provision may increase in the period in which it makes the determination.

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” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. The accounting interpretation also provides guidance on measurement methodology, derecognition thresholds, financial statement classification and disclosures, recognition of interest and penalties, and accounting for the cumulative-effect adjustment at the date of adoption.

New Accounting Pronouncements—not yet adopted by the Company

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This ASU simplifies several aspects of the accounting for share-based payment award transactions, including, the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, for public companies. Early adoption is permitted in any interim or annual period. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships”, to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815, does not, in and of itself, require designation of the hedging relationship, provided that all other hedge accounting criteria continue to be met. This guidance is effective for public companies for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements.

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

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This new guidance requires certain equity investments to be measured at fair value, use of the exit price notion and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The ASU on recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements.

In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”, which will require entities to present deferred tax assets (“DTA”) and deferred tax liabilities (“DTL”) as non-current in a classified balance sheet. The ASU simplifies the current guidance, which requires entities to separately present DTA and DTL as current and non-current in a classified balance sheet. For public companies, the amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has not yet adopted this update and does not expect that adoption will have a material effect on its consolidated financial statements.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. The update provides the guidance that an entity, that measured inventory by using first-in, first-out or average cost, should measure inventory at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out or the retail inventory method. For public companies, this update is effective for fiscal years beginning after December 15, 2016, including interim periods within these fiscal years. This update should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. In August 2015, the FASB issued ASU 2015-15 to address a presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangement. For public companies, the update is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company has not yet adopted this update and does not expect that adoption will have a material effect on its consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. ASU No. 2015-02 amended the process that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. For public companies, this amendment is effective for fiscal years, and for interim periods within those fiscal years beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of adoption of this update on its consolidated financial statements.

In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. The objective of this amendment is to reduce the complexity in accounting standards by eliminating the concept of extraordinary items from U.S. GAAP. The following criteria must both be met for extraordinary classification: (a) the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity; and (b) the underlying event or transaction should not reasonably be expected to recur in the foreseeable future. This amendment is effective for fiscal years and interim periods beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect that adoption of this update will have an effect on its consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments require management to evaluate, for each annual and interim reporting period, an entity’s ability to continue as a going concern when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations that become due within one year after the date that the financial statements are issued (or available to be issued). This update is effective for annual periods and interim reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect that adoption of this update will have an effect on its consolidated financial statements.

In June 2014, the FASB issued ASU No. 2014-12, “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period”. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. Compensation cost should be recognized in the period in when performance target will probably be achieved and should be attributable to the period(s) for which the requisite service has already been rendered. This update is required to be adopted by all public companies for annual periods and interim reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect that adoption of this update will have an effect on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606), issued as a new Topic, Accounting Standards Codification”. The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update is effective for public companies, as amended by ASU 2015-14, for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application of this guidance is permitted but not before the original date of December 15, 2016, which can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. Subsequently in March 2016 and April 2016, the FASB issued ASU 2016-08 and ASU 2016-10, to clarify the implementation guidance on principle versus agent considerations and address the potential diversity in practice at initial application and cost, and the complexity of applying Topic 606, both at transition and on an ongoing basis related to identification of performance obligations and licensing arrangements; and ASU 2016-12, in May 2016, to improve in certain aspects of Topic 606, with the same effective date as ASU 2015-14. The Company has not yet elected a transition method and is currently evaluating the impact of adoption of these updates on its consolidated financial statements.

Income taxes

12 Months Ended

Jun. 24, 2016

Income taxes

3.	Income taxes

Cayman Islands

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

Income of the Company exempted from corporate income tax in the Cayman Islands amounted to $41.0 million, $27.0 million and $73.0 million in the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively.

Thailand

Fabrinet Thailand is where the majority of the Company’s operations and production takes place. The Company is not subject to tax for the period from July 2010 through June 2015 on income generated from the manufacture of products at Pinehurst Building 5, and from July 2012 through June 2020 on income generated from the manufacture of products at Pinehurst Building 6. Such preferential tax treatment is contingent on, among other things, the export of the Company’s customers’ products out of Thailand and the Company’s agreement not to move its manufacturing facilities out of its current province in Thailand for at least 15 years from the date on which preferential tax treatment was granted. In December 2011, the Thailand Revenue Department announced a reduction in corporate income tax rates for tax periods beginning on or after January 1, 2012. As a result of the announcement, enacted corporate income tax rates for Fabrinet Thailand were reduced from 23% in fiscal year 2013 to 20% in fiscal years 2014 through 2016. Additionally, in March 2016, the Thailand Revenue Department announced the permanent decrease of corporate income tax rates to 20% for tax periods beginning on or after January 1, 2016. As a result, corporate income tax rates for Fabrinet Thailand remain at 20% from fiscal year 2017 onwards.

People’s Republic of China

Casix had been granted a tax privilege to reduce its corporate income tax rate from 25% to 15%, but the privilege expired on December 31, 2013. As a result, the corporate income tax rate for Casix has been 25% since January 2014.

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


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015			June 27, 2014
Current	$	5,413	$	4,191		$	2,304
Deferred		922		(207	)		(865	)

Total income tax expense	$	6,335	$	3,984		$	1,439

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


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015			June 27, 2014
Income before income taxes ⁽¹⁾	$	68,232		$	47,626		$	93,170
Tax expense calculated at a statutory corporate income tax rate of 20% (2015 and 2014: 20%)		13,646			9,525			18,634
Effect of income taxes from locations with tax rates different from Thailand		(6,631	)		1,134			(2	)
Income not subject to tax ⁽²⁾		(2,289	)		(7,094	)		(15,648	)
Income tax on unremitted earnings (reversal of)		741			1,263			(259	)
Effect of different tax rate in relation to deferred tax utilization ⁽³⁾		894			(221	)		(662	)
Effect of foreign exchange rate adjustment		375			(365	)		(380	)
Tax rebate from research and development application		(145	)		(102	)		—
Reversal of reserve fixed assets damaged from flooding		—			—			(251	)
Others		(256	)		(156	)		7

Corporate income tax expense	$	6,335		$	3,984		$	1,439

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

⁽²⁾

Income not subject to tax relates to income earned in the Cayman Islands and income subject to an investment promotion privilege for Building 5 and Building 6. Income not subject to tax per ordinary share on a diluted basis (in dollars) was $0.06, $0.20 and $0.44 for the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively.

⁽³⁾	The balances were effect of different tax rate in relation to the rate recognized deferred taxes during the fiscal year and the rate when deferred taxes will be utilized in the following fiscal years.

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


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015
Deferred tax assets:
Depreciation	$	846		$	1,057
Severance liability		955			1,192
Reserve and allowance		1,376			1,648
Others		(13	)		14

Total	$	3,164		$	3,911


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015
Deferred tax liabilities:
Depreciation	$	833		$	—
Deferred tax from unremitted earning		(1,687	)		(737	)

Total		(854	)		(737	)

Net	$	2,310		$	3,174

Current deferred income tax assets and liabilities and non-current deferred income tax assets and liabilities are offset when the income taxes relate to the same tax jurisdiction. The following amounts are shown in the consolidated balance sheets:


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015
Deferred income tax assets—current	$	1,358		$	1,662
Deferred income tax liabilities—current		—			—

Current deferred income tax—net		1,358			1,662

Deferred income tax assets—non current		6,687			3,253
Less: Valuation allowance		(4,881	)		(1,004	)
Deferred income tax liabilities—non current		(854	)		(737	)

Non-current deferred income tax—net		952			1,512

Net deferred income tax assets	$	2,310		$	3,174

As of June 24, 2016 and June 26, 2015, the Company recognized deferred tax assets of $4.9 million and $1.0 million, respectively, from tax on net operating loss carrying forward of Fabrinet West. Utilization of the tax net operating losses carrying forward may be subject to substantial limitations according to the subsidiary’s future operation, which may result in the reduced utilization of a portion of the Company’s net operating losses.

Income tax liabilities have not been established for withholding tax and other taxes that would be payable on the unremitted earnings of Fabrinet Thailand. Such amounts of Fabrinet Thailand are permanently reinvested; unremitted earnings for Fabrinet Thailand totaled $68.8 million and $50.9 million as of June 24, 2016 and June 26, 2015, respectively. Unrecognized deferred tax liabilities for such unremitted earnings were $4.2 million and $2.6 million as of June 24, 2016 and June 26, 2015, respectively.

Deferred tax liabilities of $0.7 million and $0.7 million have been established for withholding tax on the unremitted earnings of Casix, which are included in non-current deferred tax liability as of June 24, 2016 and June 26, 2015, respectively.

Uncertain income tax positions

Interest and penalties related to uncertain tax positions are recognized in income tax expense. The Company had approximately $0.4 million and $0.2 million of accrued interest and penalties related to uncertain tax positions on the consolidated balance sheets as of June 24, 2016 and June 26, 2015, respectively. The Company recorded (reversed) interest and penalties of $0.2 million, $0.1 million, $(0.6 million) for the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively, in the consolidated statements of operations and comprehensive income. With regard to the Thailand jurisdiction, tax years 2011 through 2015 remain open to examination by the local authorities.

The following table indicates the changes to the Company’s uncertain income tax positions for the years ended June 24, 2016, June 26, 2015 and June 27, 2014 included in other non-current liabilities.


(amount in thousands)	As of June 24, 2016		As of June 26, 2015		As of June 27, 2014
Beginning balance	$	1,420	$	868	$	1,167
Additions during the year		—		552		510
Reductions for tax positions of prior years		—		—		(809	)

Ending balance	$	1,420	$	1,420	$	868

Earnings per ordinary share

12 Months Ended

Jun. 24, 2016

Earnings per ordinary share

4.	Earnings per ordinary share

Basic earnings per ordinary share is computed by dividing reported net income by the weighted average number of ordinary shares outstanding during each period. Diluted earnings per ordinary share is computed by dividing reported net income by the weighted average number of ordinary shares and dilutive ordinary equivalent shares outstanding during each period. Dilutive ordinary equivalent shares consist of share options and restricted share units. The earnings per ordinary share was calculated as follows:


	Years Ended
(amount in thousands except per share amounts)	June 24, 2016		June 26, 2015		June 27, 2014
Net income attributable to shareholders	$	61,897	$	43,642	$	91,731

Weighted-average number of ordinary shares outstanding (thousands of shares)		35,857		35,354		34,938
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares)		1,015		630		651

Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		36,872		35,984		35,589

Basic earnings per ordinary share	$	1.73	$	1.23	$	2.63
Diluted earnings per ordinary share	$	1.68	$	1.21	$	2.58
Outstanding share options excluded in the computation of diluted earnings per ordinary share ⁽¹⁾		—		39,544		44,369

⁽¹⁾	These share options were not included in the computation of diluted earnings per ordinary share because the exercise price of the options was greater than the average market price of the underlying shares.

Cash, cash equivalents and marketable securities

12 Months Ended

Jun. 24, 2016

Cash, cash equivalents and marketable securities

5.	Cash, cash equivalents and marketable securities

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


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain			Cash and Cash Equivalents		Marketable Securities
As of June 24, 2016
Cash	$	136,754	$	—		$	136,754	$	—
Cash equivalents		6,050		—			6,050		—
Corporate bonds and commercial papers		112,128		394			—		112,522
U.S. agency and U.S. treasury securities		28,028		2			—		28,030
Sovereign and municipal securities		1,154		3			—		1,157

Total	$	284,114	$	399		$	142,804	$	141,709


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized (Loss)/Gain			Cash and Cash Equivalents		Marketable Securities
As of June 26, 2015
Cash	$	105,548	$	—		$	105,548	$	—
Cash equivalents		7,430		—			7,430		—
Corporate bonds and commercial papers		120,144		(43	)		—		120,101
U.S. agency and U.S. treasury securities		21,029		(2	)		—		21,027
Sovereign and municipal securities		1,737		1			—		1,738

Total	$	255,888	$	(44	)	$	112,978	$	142,866

The cash equivalents include short-term bank deposits, investments in money market funds, and marketable securities with maturities of three months or less at the date of purchase. The effective interest rate on short term bank deposits was 0.7% and 0.7% per annum for the years ended June 24, 2016 and June 26, 2015, respectively.

As of June 24, 2016, 66.0% of our cash and cash equivalents were held by the Parent Company.

The following table summarizes the cost and estimated fair value of marketable securities classified as available-for-sale securities based on stated effective maturities as of June 24, 2016:


(amount in thousands)	Carrying Cost		Fair Value
Due within one year	$	19,609	$	19,628
Due between one to three years		121,701		122,081

Total	$	141,310	$	141,709

During the year ended June 24, 2016, the net realized loss from changes in fair value of marketable securities recognized by the Company was $0.2 million.

As of June 24, 2016, the Company considered the declines in market value of its marketable securities investment portfolio to be temporary in nature and did not consider any of its securities other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. No impairment losses were recorded for the year ended June 24, 2016.

As of June 24, 2016, cash, cash equivalents, and marketable securities included bank deposits of $40.0 million held in various financial institutions located in the United States in order to support the availability of the Facility Agreement and comply with covenants. Under the terms and conditions of the Facility Agreement, the Company shall maintain cash, cash equivalents and/or marketable securities in an aggregate amount not less than $40.0 million in unencumbered deposits, and/or securities in accounts located in the United States at all times during the term of the Facility Agreement. As discussed in Note 11, the Company must comply with this covenant from and after the effective date of the Facility Agreement.

Fair Value

12 Months Ended

Jun. 24, 2016

Fair Value

6.	Fair Value

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


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 24, 2016
Assets
Cash equivalents	$	—	$	6,050		$	—	$	6,050
Corporate bonds and commercial papers		—		112,522			—		112,522
U.S. agency and U.S. treasury securities		—		28,030			—		28,030
Sovereign and municipal securities		—		1,157			—		1,157
Derivative assets		—		158	⁽¹⁾		—		158

Total	$	—	$	147,917		$	—	$	147,917

Liabilities
Derivative liabilities	$	—	$	1,754	⁽²⁾	$	—	$	1,754

Total	$	—	$	1,754		$	—	$	1,754

⁽¹⁾	Foreign currency forward contract with notional amount of $7.0 million.

⁽²⁾	Foreign currency forward contract with notional amount of $77.5 million and Canadian dollars 0.6 million.


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 26, 2015
Assets
Cash equivalents	$	—	$	7,430		$	—	$	7,430
Corporate bonds and commercial papers		—		120,101			—		120,101
U.S. agency and U.S. treasury securities		—		21,027			—		21,027
Sovereign and municipal securities		—		1,738			—		1,738
Derivative assets		—		4	⁽¹⁾		—		4

Total	$	—	$	150,300		$	—	$	150,300

Liabilities
Derivative liabilities	$	—	$	371	⁽²⁾	$	—	$	371

Total	$	—	$	371		$	—	$	371

⁽¹⁾	Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian dollars 0.4 million.

⁽²⁾	Foreign currency options with notional amount of $38.0 million.

Derivative Financial Instruments

As a result of foreign currency rate fluctuations, the U.S. dollar equivalent values of the Company’s foreign currency denominated assets and liabilities change. The Company uses foreign currency contracts to manage the foreign exchange risk associated with certain foreign currency denominated assets and liabilities and other foreign currency transactions. The Company minimizes the credit risk in derivative instruments by limiting its exposure to any single counterparty and by entering into derivative instruments only with counterparties that meet the Company’s minimum credit quality standard. As of June 24, 2016, the Company recognized the fair value of foreign currency forward contracts of $0.2 million as derivative assets and $1.7 million as derivative liabilities. As of June 26, 2015, the Company recognized the fair value of foreign currency forward contracts and options of $0.4 million as derivative liabilities in the consolidated balance sheets.

As of June 24, 2016, the Company hedges forecasted foreign currency transactions related to the construction costs of a new manufacturing building at the Company’s Chonburi Campus with certain forward contracts, designated as cash flow hedges. The Company had two outstanding forward contracts with notional amount of $7.0 million, which mature during August 2016 and September 2016. The Company included unrealized gain of $0.2 million from changes in fair value of these foreign currency forward contracts, designated as hedging instrument in AOCI in the consolidated balance sheets. As of June 24, 2016, gain of $0.01 million in AOCI is expected to be reclassified as earning within the next 12 months. During the year ended June 24, 2016, there was no ineffective portion or discontinued cash flow hedges recognized in the consolidated statements of operations and comprehensive income. As of June 26, 2015, the Company had no foreign currency forward contracts designated as cash flow hedges.

As of June 24, 2016, the Company had 14 outstanding foreign currency forward contracts with notional amount of $77.5 million and Canadian dollars 0.6 million, which matured during July to December 2016. These foreign currency forward contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht and Canadian dollar. During the year ended June 24, 2016, the Company included unrealized loss of $1.8 million from changes in fair value of foreign currency contracts in the consolidated statements of operations and comprehensive income.

As of June 26, 2015, the Company had 42 outstanding foreign currency forward contracts and options with notional amount of $41.0 million and Canadian dollars 0.4 million, which matured during June to December 2015. These foreign currency forward contracts and options were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions denominated in Thai baht and Canadian dollar. During the year ended June 26, 2015, the Company included unrealized loss of $0.4 million from changes in fair value of foreign currency contracts in the consolidated statements of operations and comprehensive income.

- Definition

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

+ References + Details

Inventory

12 Months Ended

Jun. 24, 2016

Inventory

8.	Inventory


(amount in thousands)	As of June 24, 2016			As of June 26, 2015
Raw materials	$	58,199		$	46,065
Work in progress		94,762			69,174
Finished goods		21,593			11,843
Goods in transit		9,381			6,488

		183,935			133,570
Less: Inventory obsolescence		(2,436	)		(2,957	)

Inventory, net	$	181,499		$	130,613

Property, plant and equipment, net

12 Months Ended

Jun. 24, 2016

Property, plant and equipment, net

9.	Property, plant and equipment, net

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


(amount in thousands)	Land		Building and Building Improvement			Manufacturing Equipment			Office Equipment			Motor Vehicles			Computers			Construction and Machinery Under Installation		Total
As of June 24, 2016
Cost	$	39,048	$	95,386		$	96,041		$	5,826		$	443		$	15,578		$	23,248	$	275,570
Less: Accumulated depreciation		—		(25,438	)		(56,564	)		(3,500	)		(366	)		(11,292	)		—		(97,160	)

Net book value	$	39,048	$	69,948		$	39,477		$	2,326		$	77		$	4,286		$	23,248	$	178,410

As of June 26, 2015
Cost	$	26,672	$	86,926		$	79,825		$	5,378		$	528		$	13,196		$	10,198	$	222,723
Less: Accumulated depreciation		—		(21,016	)		(47,017	)		(3,343	)		(458	)		(10,235	)		—		(82,069	)

Net book value	$	26,672	$	65,910		$	32,808		$	2,035		$	70		$	2,961		$	10,198	$	140,654

During the year ended June 24, 2016, the Company purchased a parcel of land in Chonburi, Thailand, with an aggregate purchase price of approximately $12.4 million, to support the expansion of its production capacity and capabilities in Thailand. During the year ended June 26, 2015, one of Fabrinet’s subsidiaries purchased a building and the associated land located in Santa Clara, California, for an aggregate purchase price of $25.5 million, to expand the Company’s manufacturing facilities in the United States.

Depreciation expense amounted to $17.3 million, $12.9 million and $10.6 million for the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively, and have been allocated between cost of revenues and selling, general and administrative expenses in the consolidated statements of operations and comprehensive income. During the year ended June 27, 2014, the Company wrote-off all assets damaged from flood and reversed all asset impairment reserve as the Company fully settled with insurance companies for the Company’s damaged assets claim.

The cost of fully depreciated property, plant and equipment written-off during the years ended June 24, 2016, June 26, 2015 and June 27, 2014 amounted to $2.0 million, $1.1 million and $2.6 million, respectively.

During the year ended June 24, 2016, the Company capitalized $0.1 million of interest expense in construction in progress of its new manufacturing building at Chonburi Campus. There was no interest expense capitalized in construction in progress during the year ended June 26, 2015.

Intangibles

12 Months Ended

Jun. 24, 2016

Intangibles

10.

Intangibles

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


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Net
As of June 24, 2016
Software	$	3,786	$	(3,287	)	$	499

Total intangibles	$	3,786	$	(3,287	)	$	499


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Net
As of June 26, 2015
Software	$	3,357	$	(3,220	)	$	137

Total intangibles	$	3,357	$	(3,220	)	$	137

The Company recorded amortization expense relating to intangibles of $0.1 million for each of the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively.

As of June 24, 2016, the estimated future amortization of intangible assets during each fiscal year was as follows:


(amount in thousand)
2017	$	114
2018		113
2019		113
2020		109
2021		50

Total	$	499

Borrowings

12 Months Ended

Jun. 24, 2016

Borrowings

11.

Borrowings

The Company’s total borrowings, including revolving and long-term borrowings, consisted of the following (dollars in thousands):


Rate ⁽¹⁾	Conditions		Maturity			As of June 24, 2016			As of June 26, 2015
Short-term borrowing:
Revolving borrowing:
LIBOR + 1.75% per annum		Repayable in 1 to 6 months		July 2016	⁽²⁾	$	6,500		$	30,000
Current portion of long-term borrowing							18,100			6,000

						$	24,600		$	36,000

Long-term borrowing:
LIBOR + 2.80% per annum		Repayable in quarterly installments		March 2017		$	4,500		$	10,500
Term loan borrowing:
LIBOR + 1.75% per annum		Repayable in quarterly installments		May 2019			50,000			—

							54,500			10,500
Less: Current portion							(18,100	)		(6,000	)

Non-current portion						$	36,400		$	4,500

⁽¹⁾

LIBOR is London Interbank Offered Rate.

⁽²⁾

In July 2016, the maturity date of this revolving borrowing was extended to mature in August 2016.

The long-term loan of a subsidiary is secured by certain property, plant and equipment. The carrying amount of assets secured and pledged as collateral as of June 24, 2016 and June 26, 2015 was $47.7 million and $50.0 million, respectively. This subsidiary is also required to comply with the maximum ratios of debt to equity and minimum levels of debt service coverage ratios, and Fabrinet must maintain an effective shareholding ratio. The carrying amounts of bank borrowings approximate their fair value.

As of June 24, 2016 and June 26, 2015, the Company was in compliance with its long-term bank borrowing agreement. In addition to financial ratios, certain of the Company’s credit facilities include customary events of default.

The movements of long-term loans were as follows for the years ended June 24, 2016 and June 26, 2015:


	Years ended
(amount in thousands)	June 24, 2016			June 26, 2015
Opening net book amount	$	10,500		$	16,500
Additional loan during the period		50,000			—
Repayment during the period		(6,000	)		(6,000	)

Closing net book amount	$	54,500		$	10,500

As of June 24, 2016, the future maturities of long-term debt during each fiscal year were as follows:


(amount in thousand)
2017	$	18,100
2018		13,600
2019		22,800

Total	$	54,500

Credit facilities:

The Company entered into a syndicated senior credit facility agreement (the “Facility Agreement”) with a consortium of banks on May 22, 2014. The Facility Agreement, led by Bank of America, provides for a $200.0 million credit line, comprised of a $150.0 million revolving loan facility and a $50.0 million delayed draw term loan facility. The revolving loan facility contains an accordion feature permitting Fabrinet to request an increase in the facility up to $100.0 million subject to customary terms and conditions and provided that no default or event of default exists at the time of request. The revolving loan facility terminates and all amounts outstanding are due and payable in full on May 22, 2019. The principal amount of any drawn term loans must be repaid according to the scheduled quarterly amortization payments, with final payment of all amounts outstanding, plus accrued interest, being due on May 22, 2019.

On February 26, 2015, the Company entered into the Second Amendment to the Facility Agreement. The amendment extended the availability period for draws on the term loan facility from May 21, 2015 to July 31, 2015. It also allows the Company, upon the satisfaction of certain conditions, to designate from time to time one or more of its subsidiaries as borrowers under the Facility Agreement. On July 31, 2015, the Company entered into the Third Amendment to the Facility Agreement. The amendment extended the availability period for draws on the term loan facility from July 31, 2015 to July 31, 2016. As of June 24, 2016, there were the $6.5 million of revolving borrowing and $50.0 million of term loan borrowing outstanding under the Facility Agreement, resulting in available credit facilities of $143.5 million. Borrowings under the revolving credit facility are classified as current liabilities in the audited consolidated balance sheet as the Company has the periodic option to renew or pay, all or a portion of, the outstanding balance at the end of the maturity date, which is in the range of one to six months, without premium or penalty, upon notice to the administrative agent. Subsequent to the balance sheet date, the Company sent a notice to the bank to renew the maturity date of this revolving borrowing. The bank approved the notice and extended the maturity to August 2016.

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

Fabrinet’s obligations under the Facility Agreement are guaranteed by certain of its existing and future direct material subsidiaries. In addition, the Facility Agreement is secured by Fabrinet’s present and future accounts receivable, deposit accounts and cash, and a pledge of the capital stock of certain of Fabrinet’s direct subsidiaries. Fabrinet is required to maintain at least $40.0 million of cash, cash equivalents, and marketable securities at financial institutions located in the United States. Further, Fabrinet is required to maintain any of its deposits accounts or securities accounts with balances in excess of $10.0 million in a jurisdiction where a control agreement, or the equivalent under the local law, can be effected. The Facility Agreement contains customary affirmative and negative covenants. Negative covenants include, among other things, limitations on liens, indebtedness, investments, mergers, sales of assets, changes in the nature of the business, dividends and distributions, affiliate transactions and capital expenditures. The Facility Agreement contains financial covenants requiring Fabrinet to maintain: (i) a minimum tangible net worth of not less than $200.0 million plus 50% of quarterly net income, exclusive of quarterly losses; (ii) a minimum debt service coverage ratio of not less than 1.50:1.00; (iii) a maximum senior leverage ratio of not more than 2.50:1.00; and (iv) a minimum quick ratio of not less than 1.10:1.00. Each of these financial covenants is calculated on a consolidated basis for the consecutive four fiscal quarter period then ended. As of June 24, 2016, the Company was in compliance with all covenants under the Facility Agreement.

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

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

Undrawn available credit facilities classified by available period of future borrowing as of June 24, 2016 and June 26, 2015 were as follows:


(amount in thousands)	June 24, 2016		June 26, 2015
Short-term	$	1,414	$	1,480
Long-term	$	143,500	$	170,000

Severance liabilities

12 Months Ended

Jun. 24, 2016

Severance liabilities

12.

Severance liabilities

The following table provides the information of the severance liabilities:


(amount in thousands)	As of June 24, 2016		As of June 26, 2015
Balance, beginning of the fiscal year	$	5,477	$	4,453
Charged to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income		1,207		1,024

Balance, end of the fiscal year	$	6,684	$	5,477

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


(amount in thousands)	As of June 24, 2016		As of June 26, 2015
Present value of defined benefit obligation	$	6,684	$	5,477

Total	$	6,684	$	5,477

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


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015			June 27, 2014
Current service cost	$	842		$	360		$	368
Interest cost		203			203			207
Benefit paid		(11	)		(10	)		(223	)
Actuarial loss (gain) on obligation		173			471			(281	)

Total	$	1,207		$	1,024		$	71

The principal actuarial assumptions used were as follows:


	Years Ended
	June 24, 2016	June 26, 2015		June 27, 2014
Discount rate	2.0% - 3.2%		4.0%		4.9%
Future salary increases	4.1% - 10.0%		4.2%		4.2%

Share-based compensation

12 Months Ended

Jun. 24, 2016

Share-based compensation

13.

Share-based compensation

Share-based compensation

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

The effect of recording share-based compensation expense for the years ended June 24, 2016, June 26, 2015 and June 27, 2014 was as follows:


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015		June 27, 2014
Share-based compensation expense by type of award:
Share options	$	16	$	226	$	802
Restricted share units		9,911		7,801		4,745

Total share-based compensation expense		9,927		8,027		5,547
Tax effect on share-based compensation expense		—		—		—

Net effect on share-based compensation expense	$	9,927	$	8,027	$	5,547

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


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015		June 27, 2014
Cost of revenue	$	1,979	$	1,450	$	1,182
Selling, general and administrative expense		7,948		6,577		4,365

Total share-based compensation expense	$	9,927	$	8,027	$	5,547

The Company did not capitalize any share-based compensation expense as part of any asset costs during the years ended June 24, 2016, June 26, 2015 and June 27, 2014.

Share-based award activity

Share options have been granted to directors and employees. As of June 24, 2016, there were five share options outstanding under the Amended and Restated 1999 Share Option Plan (“1999 Plan”). Additional option grants may not be made under the 1999 Plan.

As of June 24, 2016, there were an aggregate of 464,329 share options and 1,181,402 restricted share units outstanding. As of June 24, 2016, there were 2,207,607 ordinary shares available for future grant under Fabrinet’s 2010 Performance Incentive Plan (“2010 Plan”). The 1999 Plan and 2010 Plan are collectively referred to as the “Share Option Plans”.

Share options

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

The following table summarizes share options activity:


	Number of Shares			Number of Exercisable Options		Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value
Balance as of June 28, 2013		1,277,311			750,949	$	15.37
Granted		—					—		—
Exercised		(351,435	)			$	13.00
Forfeited		(26,276	)			$	15.54
Expired		(33,710	)			$	16.93

Balance as of June 27, 2014		865,890			666,305	$	16.27
Granted		—					—		—
Exercised		(56,968	)			$	14.67
Forfeited		(8,347	)			$	15.90
Expired		(8,556	)			$	21.44

Balance as of June 26, 2015		792,019			758,451	$	16.33
Granted		—					—		—
Exercised		(325,530	)			$	16.83
Forfeited		(755	)			$	17.10
Expired		(1,400	)			$	23.62

Balance as of June 24, 2016		464,334			464,334	$	15.95

Expected to vest as of June 24, 2016		464,334				$	15.95

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

The total fair value of shares vested during the years ended June 24, 2016, June 26, 2015 and June 27, 2014 was $0.2 million, $1.1 million and $2.0 million, respectively. The total intrinsic value of options exercised during the years ended June 24, 2016 June 26, 2015 and June 27, 2014 was $3.6 million, $0.2 million and $2.2 million, respectively. In conjunction with these exercises, there was no tax benefit realized by the Company due to the fact that it is exempted from income tax. The amount of cash received from the exercise of share options was $5.5 million during the year ended June 24, 2016.

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

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

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

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

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

Vesting Period—Fabrinet’s share options generally vest and become exercisable over a four-year period, and expire seven years from the date of grant. For an initial grant, 25 percent of the underlying shares subject to an option vest 12 months after the vesting commencement date and 1/48 of the underlying shares vest monthly over each of the subsequent 36 months. In the case of any additional grants to an optionee, 1/48 of the underlying shares subject to an option vest monthly over four years, commencing one month after the vesting commencement date.

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

The following table summarizes information for share options outstanding as of June 24, 2016 under the share options plan:


	Number of Shares Underlying Options		Exercise Price Per Share		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (amount in thousands)
		5	$	5.75		0.40
		255,428	$	16.83		1.30
		30,000	$	15.05		1.36
		5,900	$	25.50		1.56
		2,400	$	26.16		1.61
		9,943	$	15.16		2.15
		155,066	$	14.12		2.38
		5,550	$	18.60		2.68
		42	$	12.83		2.87

Options outstanding		464,334				1.71	$	8,830

Options exercisable		464,334				1.71	$	8,830

Expected to vest as of June 24, 2016		464,334				1.71	$	8,830

As of June 24, 2016, there was no unrecognized compensation cost under the Share Option Plans.

Restricted share units

Restricted share units are one type of share-based award that may be granted under the 2010 Plan. 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. Restricted share units granted to employees generally vest in four equal installments over four years on each anniversary of the vesting commencement date.

On May 24, 2015, the Company entered into an amended and restated employment agreement with an executive of the Company that provides for accelerated vesting of equity awards under certain circumstances. Under the agreement, any equity award granted to the executive after February 20, 2017, shall vest over a period not longer than two years following the applicable grant date. If the executive’s employment with the Company continues through and including February 20, 2017, any outstanding equity award grants before February 20, 2017 will become 100% vested.

The following table summarizes restricted share unit activity:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Balance as of June 28, 2013		545,668		$	12.81
Granted		479,894		$	15.37
Issued		(184,773	)	$	12.98
Forfeited		(78,494	)	$	14.25

Balance as of June 27, 2014		762,295		$	14.23
Granted		666,582		$	17.53
Issued		(247,593	)	$	14.44
Forfeited		(40,357	)	$	16.68

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

Balance as of June 24, 2016		1,181,402		$	18.34

Expected to vest as of June 24, 2016		1,076,704		$	18.65

The fair value of restricted 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 vested during the year ended June 24, 2016, June 26, 2015 and June 27, 2014 was $7.9 million, $3.6 million and $2.4 million, respectively. The aggregate intrinsic value of restricted share units outstanding as of June 24, 2016 was $41.3 million.

As of June 24, 2016, there was $8.8 million of unrecognized share-based compensation expense related to restricted share units under the 2010 Plan that is expected to be recorded over a weighted-average period of 2.72 years.

For the years ended June 24, 2016 and June 26, 2015, the Company withheld an aggregate of 114,359 shares and 19,679 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date to settle the employees’ minimum statutory obligation for the applicable income and other employment taxes. For fiscal year 2016 and fiscal year 2015, the Company then remitted cash of $2.5 million and $0.4 million, respectively, to the appropriate taxing authorities, and presented it as a financing activity within the consolidated statements of cash flows. The payment had the effect on shares issued by the Company as it reduced the number of shares that would have been issued on the vesting date and was recorded as a reduction of additional paid-in capital.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Employee benefit plans

12 Months Ended

Jun. 24, 2016

Employee benefit plans

14.

Employee benefit plans

Employee contribution plan

The Company operates a defined contribution plan, known as a provident fund, in its subsidiary in Thailand. The assets of this plan are in a separate trustee-administered fund. The provident fund is funded by matching payments from employees and by the subsidiary 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 $2.8 million, $2.3 million and $2.1 million during the years ended June 24, 2016, June 26, 2015 and June 27, 2014, 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 $0.5 million, $0.3 million and $0.2 million during the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively.

Executive incentive plan and employee performance bonuses

For the years ended June 24, 2016 and June 26, 2015, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and non-GAAP earnings per share targets as well as qualitative objectives, based on achieving individual performance goals for the applicable fiscal year. For the year ended June 27, 2014, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and gross margin targets as well as qualitative objectives, based on achieving individual performance goals for the fiscal year. During the years ended June 24, 2016, June 26, 2015 and June 27, 2014, discretionary merit-based bonus awards were also available to Fabrinet’s non-executive employees.

Bonus distributions to employees were $7.5 million, $6.0 million and $5.1 million for the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively.

Shareholders' equity

12 Months Ended

Jun. 24, 2016

Shareholders' equity

15.

Shareholders’ equity

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

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

For the year ended June 26, 2015, Fabrinet issued 56,968 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $14.67 per share, and 227,914 ordinary shares upon the vesting of restricted share units, net of shares withheld.

For the year ended June 27, 2014, Fabrinet issued 351,435 ordinary shares upon the exercise of options, for cash consideration at a weighted average exercise price of $13.00 per share, and 166,370 ordinary shares upon the vesting of restricted share units, net of shares withheld.

All such issued shares are fully paid.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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-Name Accounting Standards Codification
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-Paragraph 6
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
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-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.3-04)
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Accumulated other comprehensive income (loss)

12 Months Ended

Jun. 24, 2016

Accumulated other comprehensive income (loss)

16.

Accumulated other comprehensive income (loss)

The changes in AOCI by component for the years ended June 24, 2016 and June 26, 2015 were as follows:


(amount in thousands)	Unrealized net (Losses)/Gains on Marketable Securities			Unrealized net (Losses)/Gains on Derivative Instruments			Total
Balance as of June 27, 2014	$	—		$	—		$	—
Other comprehensive income before reclassification		(193	)		—			(193	)
Amounts reclassified from AOCI		149			—			149
Tax effects		—			—			—

Other comprehensive income		(44	)		—			(44	)

Balance as of June 26, 2015		(44	)		—			(44	)
Other comprehensive income before reclassification		637			(298	)		339
Amounts reclassified from AOCI		(194	)		490			296
Tax effects		—			—			—

Other comprehensive income		443			192			635

Balance as of June 24, 2016	$	399		$	192		$	591

The following table presents the pre-tax amounts reclassified from AOCI into the consolidated statements of operations and comprehensive income for the year ended June 24, 2016 and June 26, 2015, respectively (amounts in thousands).


		Years ended
AOCI components	Financial statements line item	June 24, 2016			June 26, 2015
Unrealized (losses) gains on marketable securities	Interest income	$	(194	)	$	149
Unrealized gains on derivative instruments	Cost of revenues		471			—
	Selling, general and administrative expenses		19			—

Total amounts reclassified from AOCI		$	296		$	149

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.3-04)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Commitments and contingencies

12 Months Ended

Jun. 24, 2016

Commitments and contingencies

17.

Commitments and contingencies

Bank guarantees

As of June 24, 2016 and June 26, 2015, there were outstanding bank guarantees given by bank on behalf of our subsidiary in Thailand for electricity usage and other normal business amounting to $0.8 million.

Operating lease commitments

The Company leases a portion of its capital equipment, vehicle, and certain land and buildings for its facilities in Thailand, Cayman Islands, China and the United States under operating lease arrangements that expire in various years through 2021. Rental expense under these operating leases amounted to $1.2 million, $1.1 million and $0.8 million for the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively.

As of June 24, 2016, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows:


(amount in thousands)
2017	$	1,347
2018		1,275
2019		718
2020		510
2021		113

Total future minimum operating lease payments	$	3,963

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 24, 2016, the Company had an outstanding commitment to third parties of $22.2 million, mainly related to the construction of a new manufacturing building at the Company’s Chonburi Campus.

Indemnification of directors and officers

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

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

Business segments and geographic information

12 Months Ended

Jun. 24, 2016

Business segments and geographic information

18.

Business segments and geographic information

Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is Fabrinet’s chief executive officer. As of June 24, 2016, June 26, 2015 and June 27, 2014, the Company operated and internally managed a single operating segment. Accordingly, the Company does not accumulate discrete information with respect to separate product lines and does not have separate reportable segments.

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


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015		June 27, 2014
North America	$	525,161	$	370,836	$	326,647
Asia-Pacific		351,033		309,941		230,314
Europe		100,553		92,810		120,893

Total	$	976,747	$	773,587	$	677,854

As of June 24, 2016 and June 26, 2015, the Company had approximately $34.7 million and $31.8 million, respectively, of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific.

The following table presents revenues by end market:


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015		June 27, 2014
Optical communications	$	727,580	$	553,245	$	484,071
Lasers, sensors, and other		249,167		220,342		193,783

Total	$	976,747	$	773,587	$	677,854

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 24, 2016			June 26, 2015			June 27, 2014
Lumentum Operations LLC		20	%		20	%		24	%
Oclaro, Inc.		*	⁽¹⁾		10	%		22	%

⁽¹⁾

Less than 10% of total revenue.

Accounts receivable from individual customers representing 10% or more of accounts receivable as of June 24, 2016, June 26, 2015 and June 27, 2014, respectively, were as follows:


	Years Ended
	June 24, 2016			June 26, 2015			June 27, 2014
Lumentum Operations LLC		18	%		19	%		23	%
Valeo		11	%		11	%		10	%
Oclaro, Inc.		*	⁽¹⁾		*	⁽¹⁾		14	%

⁽¹⁾

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/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

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-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Financial instruments

12 Months Ended

Jun. 24, 2016

Financial instruments

19.

Financial instruments

Objectives and significant terms and conditions

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

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

Foreign currency risk

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

As of June 24, 2016 and June 26, 2015, the Company had outstanding foreign currency assets and liabilities as follows:


	As of June 24, 2016				As of June 26, 2015
(amount in thousands)	Currency		$		Currency		$
Assets
Thai baht		834,536	$	23,594		377,785	$	11,596
RMB		14,835		2,255		67,455		11,029

Total			$	25,849			$	22,625

Liabilities
Thai baht		1,517,782	$	42,912		860,425	$	26,410
RMB		24,654		3,748		20,461		3,347

Total			$	46,660			$	29,757

The Thai baht assets represent cash and cash equivalents, accounts receivable, deposits and other current assets. The Thai baht liabilities represent trade accounts payable, accrued expenses and other payables. The Company manages its exposure to fluctuations in foreign exchange rates by the use of foreign currency contracts and offsetting assets and liabilities denominated in the same currency in accordance with management’s policy. As of June 24, 2016 and June 26, 2015, there was $84.5 million in forward contracts and $41.0 million in options contracts, respectively, outstanding on the Thai baht payables.

The RMB assets represent cash and cash equivalents, accounts receivable and other current assets. The RMB liabilities represent trade accounts payable, accrued expenses and other payables. As of June 24, 2016 and June 26, 2015, there were no selling RMB to U.S. dollar forward contracts outstanding.

For fiscal year 2016 and fiscal year 2015, we recorded unrealized loss of $1.8 million and $0.4 million, respectively, related to derivatives that are not designated as hedging instruments in our consolidated statements of operations and comprehensive income.

Interest Rate Risk

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

UNAUDITED QUARTERLY FINANCIAL INFORMATION

12 Months Ended

Jun. 24, 2016

UNAUDITED QUARTERLY FINANCIAL INFORMATION

UNAUDITED QUARTERLY FINANCIAL INFORMATION

The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters in the fiscal years ended June 24, 2016 and June 26, 2015:


	Three Months Ended
(in thousands, except per share data)	Jun 24, 2016		Mar 25, 2016		Dec 25, 2015		Sep 25, 2015		Jun 26, 2015		Mar 27, 2015		Dec 26, 2014		Sep 26, 2014
Total revenues	$	276,388	$	250,888	$	233,038	$	216,433	$	206,456	$	189,453	$	188,353	$	189,325

Gross profit	$	33,842	$	31,177	$	28,493	$	26,011	$	24,549	$	21,657	$	21,061	$	20,506

Net income	$	19,669	$	20,822	$	19,803	$	1,603	$	13,035	$	10,845	$	8,726	$	11,036

Basic net income per share:
Net income	$	0.55	$	0.58	$	0.55	$	0.05	$	0.37	$	0.31	$	0.25	$	0.31

Weighted-average shares used in basic net income per share calculations		36,075		35,964		35,812		35,579		35,431		35,406		35,349		35,230

Diluted net income per share:
Net income	$	0.53	$	0.56	$	0.54	$	0.04	$	0.36	$	0.30	$	0.24	$	0.31

Weighted-average shares used in diluted net income per share calculations		37,258		37,089		36,826		36,315		36,320		36,110		35,917		35,587

Summary of significant accounting policies (Policies)

12 Months Ended

Jun. 24, 2016

Principles of consolidation

Principles of consolidation

Where necessary, comparative figures have been reclassified to conform to the current year presentation.

Use of estimates

Use of estimates

Foreign currency transactions and translation

Foreign currency transactions and translation

The consolidated financial statements are presented in United States dollars (“$” or “USD”).

Cash and cash equivalents

Cash and cash equivalents

Marketable securities

Marketable securities

Trade accounts receivable

Trade accounts receivable

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

Inventory

Inventory

Leases

Leases

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

Property, plant and equipment

Property, plant and equipment


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

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

Intangibles

Intangibles

Intangibles are stated at historical cost less amortization. Amortization is calculated using the straight-line method.

Borrowing costs

Borrowing costs

Fair value of financial instruments

Fair value of financial instruments

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

Derivatives

Derivatives

Derivatives assets and liabilities are recognized on the consolidated balance sheets as other current assets or accrued expenses, and are measured at fair value.

Concentration of credit risk

Concentration of credit risk

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

Revenue recognition

Revenue recognition

Services

Sales of goods

Warranty provision

Warranty provision

Shipping and handling costs

Shipping and handling costs

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

Share-based compensation

Share-based compensation

Employee contribution plan

Employee contribution plan

Severance liabilities

Severance liabilities

Annual leave

Annual leave

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

Income taxes

Income taxes

New Accounting Pronouncements - not yet adopted by the Company

New Accounting Pronouncements—not yet adopted by the Company

Income taxes (Tables)

12 Months Ended

Jun. 24, 2016

Income Tax Expense

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


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015			June 27, 2014
Current	$	5,413	$	4,191		$	2,304
Deferred		922		(207	)		(865	)

Total income tax expense	$	6,335	$	3,984		$	1,439

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


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015			June 27, 2014
Income before income taxes ⁽¹⁾	$	68,232		$	47,626		$	93,170
Tax expense calculated at a statutory corporate income tax rate of 20% (2015 and 2014: 20%)		13,646			9,525			18,634
Effect of income taxes from locations with tax rates different from Thailand		(6,631	)		1,134			(2	)
Income not subject to tax ⁽²⁾		(2,289	)		(7,094	)		(15,648	)
Income tax on unremitted earnings (reversal of)		741			1,263			(259	)
Effect of different tax rate in relation to deferred tax utilization ⁽³⁾		894			(221	)		(662	)
Effect of foreign exchange rate adjustment		375			(365	)		(380	)
Tax rebate from research and development application		(145	)		(102	)		—
Reversal of reserve fixed assets damaged from flooding		—			—			(251	)
Others		(256	)		(156	)		7

Corporate income tax expense	$	6,335		$	3,984		$	1,439

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

⁽²⁾

⁽³⁾	The balances were effect of different tax rate in relation to the rate recognized deferred taxes during the fiscal year and the rate when deferred taxes will be utilized in the following fiscal years.

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:


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015
Deferred tax assets:
Depreciation	$	846		$	1,057
Severance liability		955			1,192
Reserve and allowance		1,376			1,648
Others		(13	)		14

Total	$	3,164		$	3,911


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015
Deferred tax liabilities:
Depreciation	$	833		$	—
Deferred tax from unremitted earning		(1,687	)		(737	)

Total		(854	)		(737	)

Net	$	2,310		$	3,174


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015
Deferred income tax assets—current	$	1,358		$	1,662
Deferred income tax liabilities—current		—			—

Current deferred income tax—net		1,358			1,662

Deferred income tax assets—non current		6,687			3,253
Less: Valuation allowance		(4,881	)		(1,004	)
Deferred income tax liabilities—non current		(854	)		(737	)

Non-current deferred income tax—net		952			1,512

Net deferred income tax assets	$	2,310		$	3,174

Changes to Unrecognized Tax Benefits


(amount in thousands)	As of June 24, 2016		As of June 26, 2015		As of June 27, 2014
Beginning balance	$	1,420	$	868	$	1,167
Additions during the year		—		552		510
Reductions for tax positions of prior years		—		—		(809	)

Ending balance	$	1,420	$	1,420	$	868

Earnings per ordinary share (Tables)

12 Months Ended

Jun. 24, 2016

Earnings Per Ordinary Share

The earnings per ordinary share was calculated as follows:


	Years Ended
(amount in thousands except per share amounts)	June 24, 2016		June 26, 2015		June 27, 2014
Net income attributable to shareholders	$	61,897	$	43,642	$	91,731

Weighted-average number of ordinary shares outstanding (thousands of shares)		35,857		35,354		34,938
Incremental shares arising from the assumed exercise of share options and vesting of restricted share units (thousands of shares)		1,015		630		651

Weighted-average number of ordinary shares for diluted earnings per ordinary share (thousands of shares)		36,872		35,984		35,589

Basic earnings per ordinary share	$	1.73	$	1.23	$	2.63
Diluted earnings per ordinary share	$	1.68	$	1.21	$	2.58
Outstanding share options excluded in the computation of diluted earnings per ordinary share ⁽¹⁾		—		39,544		44,369

⁽¹⁾	These share options were not included in the computation of diluted earnings per ordinary share because the exercise price of the options was greater than the average market price of the underlying shares.

Cash, cash equivalents and marketable securities (Tables)

12 Months Ended

Jun. 24, 2016

Cash, Cash Equivalents, and Marketable Securities

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


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized Gain			Cash and Cash Equivalents		Marketable Securities
As of June 24, 2016
Cash	$	136,754	$	—		$	136,754	$	—
Cash equivalents		6,050		—			6,050		—
Corporate bonds and commercial papers		112,128		394			—		112,522
U.S. agency and U.S. treasury securities		28,028		2			—		28,030
Sovereign and municipal securities		1,154		3			—		1,157

Total	$	284,114	$	399		$	142,804	$	141,709


						Fair Value
(amount in thousands)	Carrying Cost		Unrealized (Loss)/Gain			Cash and Cash Equivalents		Marketable Securities
As of June 26, 2015
Cash	$	105,548	$	—		$	105,548	$	—
Cash equivalents		7,430		—			7,430		—
Corporate bonds and commercial papers		120,144		(43	)		—		120,101
U.S. agency and U.S. treasury securities		21,029		(2	)		—		21,027
Sovereign and municipal securities		1,737		1			—		1,738

Total	$	255,888	$	(44	)	$	112,978	$	142,866

Available-for-Sale Securities Based on Stated Effective Maturities

The following table summarizes the cost and estimated fair value of marketable securities classified as available-for-sale securities based on stated effective maturities as of June 24, 2016:


(amount in thousands)	Carrying Cost		Fair Value
Due within one year	$	19,609	$	19,628
Due between one to three years		121,701		122,081

Total	$	141,310	$	141,709

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Fair Value (Tables)

12 Months Ended

Jun. 24, 2016

Financial Instruments Measured at Fair Value on Recurring Basis

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


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 24, 2016
Assets
Cash equivalents	$	—	$	6,050		$	—	$	6,050
Corporate bonds and commercial papers		—		112,522			—		112,522
U.S. agency and U.S. treasury securities		—		28,030			—		28,030
Sovereign and municipal securities		—		1,157			—		1,157
Derivative assets		—		158	⁽¹⁾		—		158

Total	$	—	$	147,917		$	—	$	147,917

Liabilities
Derivative liabilities	$	—	$	1,754	⁽²⁾	$	—	$	1,754

Total	$	—	$	1,754		$	—	$	1,754

⁽¹⁾	Foreign currency forward contract with notional amount of $7.0 million.

⁽²⁾	Foreign currency forward contract with notional amount of $77.5 million and Canadian dollars 0.6 million.


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 26, 2015
Assets
Cash equivalents	$	—	$	7,430		$	—	$	7,430
Corporate bonds and commercial papers		—		120,101			—		120,101
U.S. agency and U.S. treasury securities		—		21,027			—		21,027
Sovereign and municipal securities		—		1,738			—		1,738
Derivative assets		—		4	⁽¹⁾		—		4

Total	$	—	$	150,300		$	—	$	150,300

Liabilities
Derivative liabilities	$	—	$	371	⁽²⁾	$	—	$	371

Total	$	—	$	371		$	—	$	371

⁽¹⁾	Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian dollars 0.4 million.

⁽²⁾	Foreign currency options with notional amount of $38.0 million.

- Definition

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

+ References + Details

Allowance for doubtful accounts (Tables)

12 Months Ended

Jun. 24, 2016

Activities and Balances for Allowance for Doubtful Accounts

The activities and balances for allowance for doubtful accounts were as follows:


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015		June 27, 2014
Balance, beginning of fiscal year	$	50		$	37	$	109
Charged to consolidated statements of operations and comprehensive income		(17	)		13		(72	)

Balance, end of fiscal year	$	33		$	50	$	37

Inventory (Tables)

12 Months Ended

Jun. 24, 2016

Inventories


(amount in thousands)	As of June 24, 2016			As of June 26, 2015
Raw materials	$	58,199		$	46,065
Work in progress		94,762			69,174
Finished goods		21,593			11,843
Goods in transit		9,381			6,488

		183,935			133,570
Less: Inventory obsolescence		(2,436	)		(2,957	)

Inventory, net	$	181,499		$	130,613

Property, plant and equipment, net (Tables)

12 Months Ended

Jun. 24, 2016

Property, Plant and Equipment Net

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


(amount in thousands)	Land		Building and Building Improvement			Manufacturing Equipment			Office Equipment			Motor Vehicles			Computers			Construction and Machinery Under Installation		Total
As of June 24, 2016
Cost	$	39,048	$	95,386		$	96,041		$	5,826		$	443		$	15,578		$	23,248	$	275,570
Less: Accumulated depreciation		—		(25,438	)		(56,564	)		(3,500	)		(366	)		(11,292	)		—		(97,160	)

Net book value	$	39,048	$	69,948		$	39,477		$	2,326		$	77		$	4,286		$	23,248	$	178,410

As of June 26, 2015
Cost	$	26,672	$	86,926		$	79,825		$	5,378		$	528		$	13,196		$	10,198	$	222,723
Less: Accumulated depreciation		—		(21,016	)		(47,017	)		(3,343	)		(458	)		(10,235	)		—		(82,069	)

Net book value	$	26,672	$	65,910		$	32,808		$	2,035		$	70		$	2,961		$	10,198	$	140,654

Intangibles (Tables)

12 Months Ended

Jun. 24, 2016

Intangibles

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


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Net
As of June 24, 2016
Software	$	3,786	$	(3,287	)	$	499

Total intangibles	$	3,786	$	(3,287	)	$	499


(amount in thousands)	Gross Carrying Amount		Accumulated Amortization			Net
As of June 26, 2015
Software	$	3,357	$	(3,220	)	$	137

Total intangibles	$	3,357	$	(3,220	)	$	137

Estimated Future Amortization of Intangible Assets

As of June 24, 2016, the estimated future amortization of intangible assets during each fiscal year was as follows:


(amount in thousand)
2017	$	114
2018		113
2019		113
2020		109
2021		50

Total	$	499

Borrowings (Tables)

12 Months Ended

Jun. 24, 2016

Total Borrowings, Including Revolving and Long-Term Borrowings

The Company’s total borrowings, including revolving and long-term borrowings, consisted of the following (dollars in thousands):


Rate ⁽¹⁾	Conditions		Maturity			As of June 24, 2016			As of June 26, 2015
Short-term borrowing:
Revolving borrowing:
LIBOR + 1.75% per annum		Repayable in 1 to 6 months		July 2016	⁽²⁾	$	6,500		$	30,000
Current portion of long-term borrowing							18,100			6,000

						$	24,600		$	36,000

Long-term borrowing:
LIBOR + 2.80% per annum		Repayable in quarterly installments		March 2017		$	4,500		$	10,500
Term loan borrowing:
LIBOR + 1.75% per annum		Repayable in quarterly installments		May 2019			50,000			—

							54,500			10,500
Less: Current portion							(18,100	)		(6,000	)

Non-current portion						$	36,400		$	4,500

⁽¹⁾

LIBOR is London Interbank Offered Rate.

⁽²⁾

In July 2016, the maturity date of this revolving borrowing was extended to mature in August 2016.

Movements of Long-Term Loans

The movements of long-term loans were as follows for the years ended June 24, 2016 and June 26, 2015:


	Years ended
(amount in thousands)	June 24, 2016			June 26, 2015
Opening net book amount	$	10,500		$	16,500
Additional loan during the period		50,000			—
Repayment during the period		(6,000	)		(6,000	)

Closing net book amount	$	54,500		$	10,500

Future Maturities of Long-Term Debt

As of June 24, 2016, the future maturities of long-term debt during each fiscal year were as follows:


(amount in thousand)
2017	$	18,100
2018		13,600
2019		22,800

Total	$	54,500

Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing

Undrawn available credit facilities classified by available period of future borrowing as of June 24, 2016 and June 26, 2015 were as follows:


(amount in thousands)	June 24, 2016		June 26, 2015
Short-term	$	1,414	$	1,480
Long-term	$	143,500	$	170,000

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Severance liabilities (Tables)

12 Months Ended

Jun. 24, 2016

Severance Liabilities

The following table provides the information of the severance liabilities:


(amount in thousands)	As of June 24, 2016		As of June 26, 2015
Balance, beginning of the fiscal year	$	5,477	$	4,453
Charged to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income		1,207		1,024

Balance, end of the fiscal year	$	6,684	$	5,477

Severance Liabilities Recognized in Balance Sheet

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


(amount in thousands)	As of June 24, 2016		As of June 26, 2015
Present value of defined benefit obligation	$	6,684	$	5,477

Total	$	6,684	$	5,477

Severance Liabilities Recognized in Statements of Operations and Comprehensive Income

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


	Years Ended
(amount in thousands)	June 24, 2016			June 26, 2015			June 27, 2014
Current service cost	$	842		$	360		$	368
Interest cost		203			203			207
Benefit paid		(11	)		(10	)		(223	)
Actuarial loss (gain) on obligation		173			471			(281	)

Total	$	1,207		$	1,024		$	71

Principal Actuarial Assumptions Used

The principal actuarial assumptions used were as follows:


	Years Ended
	June 24, 2016	June 26, 2015		June 27, 2014
Discount rate	2.0% - 3.2%		4.0%		4.9%
Future salary increases	4.1% - 10.0%		4.2%		4.2%

Share-based compensation (Tables)

12 Months Ended

Jun. 24, 2016

Effect of Recording Share-Based Compensation Expense

The effect of recording share-based compensation expense for the years ended June 24, 2016, June 26, 2015 and June 27, 2014 was as follows:


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015		June 27, 2014
Share-based compensation expense by type of award:
Share options	$	16	$	226	$	802
Restricted share units		9,911		7,801		4,745

Total share-based compensation expense		9,927		8,027		5,547
Tax effect on share-based compensation expense		—		—		—

Net effect on share-based compensation expense	$	9,927	$	8,027	$	5,547

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

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


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015		June 27, 2014
Cost of revenue	$	1,979	$	1,450	$	1,182
Selling, general and administrative expense		7,948		6,577		4,365

Total share-based compensation expense	$	9,927	$	8,027	$	5,547

Share Options Activity

The following table summarizes share options activity:


	Number of Shares			Number of Exercisable Options		Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value
Balance as of June 28, 2013		1,277,311			750,949	$	15.37
Granted		—					—		—
Exercised		(351,435	)			$	13.00
Forfeited		(26,276	)			$	15.54
Expired		(33,710	)			$	16.93

Balance as of June 27, 2014		865,890			666,305	$	16.27
Granted		—					—		—
Exercised		(56,968	)			$	14.67
Forfeited		(8,347	)			$	15.90
Expired		(8,556	)			$	21.44

Balance as of June 26, 2015		792,019			758,451	$	16.33
Granted		—					—		—
Exercised		(325,530	)			$	16.83
Forfeited		(755	)			$	17.10
Expired		(1,400	)			$	23.62

Balance as of June 24, 2016		464,334			464,334	$	15.95

Expected to vest as of June 24, 2016		464,334				$	15.95

Information for Share Options Outstanding

The following table summarizes information for share options outstanding as of June 24, 2016 under the share options plan:


	Number of Shares Underlying Options		Exercise Price Per Share		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value (amount in thousands)
		5	$	5.75		0.40
		255,428	$	16.83		1.30
		30,000	$	15.05		1.36
		5,900	$	25.50		1.56
		2,400	$	26.16		1.61
		9,943	$	15.16		2.15
		155,066	$	14.12		2.38
		5,550	$	18.60		2.68
		42	$	12.83		2.87

Options outstanding		464,334				1.71	$	8,830

Options exercisable		464,334				1.71	$	8,830

Expected to vest as of June 24, 2016		464,334				1.71	$	8,830

Restricted Share Unit Activity

The following table summarizes restricted share unit activity:


	Number of Shares			Weighted- Average Grant Date Fair Value Per Share
Balance as of June 28, 2013		545,668		$	12.81
Granted		479,894		$	15.37
Issued		(184,773	)	$	12.98
Forfeited		(78,494	)	$	14.25

Balance as of June 27, 2014		762,295		$	14.23
Granted		666,582		$	17.53
Issued		(247,593	)	$	14.44
Forfeited		(40,357	)	$	16.68

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

Balance as of June 24, 2016		1,181,402		$	18.34

Expected to vest as of June 24, 2016		1,076,704		$	18.65

Accumulated other comprehensive income (loss) (Tables)

12 Months Ended

Jun. 24, 2016

Changes in AOCI by Component, Net of Tax

The changes in AOCI by component for the years ended June 24, 2016 and June 26, 2015 were as follows:


(amount in thousands)	Unrealized net (Losses)/Gains on Marketable Securities			Unrealized net (Losses)/Gains on Derivative Instruments			Total
Balance as of June 27, 2014	$	—		$	—		$	—
Other comprehensive income before reclassification		(193	)		—			(193	)
Amounts reclassified from AOCI		149			—			149
Tax effects		—			—			—

Other comprehensive income		(44	)		—			(44	)

Balance as of June 26, 2015		(44	)		—			(44	)
Other comprehensive income before reclassification		637			(298	)		339
Amounts reclassified from AOCI		(194	)		490			296
Tax effects		—			—			—

Other comprehensive income		443			192			635

Balance as of June 24, 2016	$	399		$	192		$	591

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


		Years ended
AOCI components	Financial statements line item	June 24, 2016			June 26, 2015
Unrealized (losses) gains on marketable securities	Interest income	$	(194	)	$	149
Unrealized gains on derivative instruments	Cost of revenues		471			—
	Selling, general and administrative expenses		19			—

Total amounts reclassified from AOCI		$	296		$	149

Commitments and contingencies (Tables)

12 Months Ended

Jun. 24, 2016

Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases

As of June 24, 2016, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows:


(amount in thousands)
2017	$	1,347
2018		1,275
2019		718
2020		510
2021		113

Total future minimum operating lease payments	$	3,963

Business segments and geographic information (Tables)

12 Months Ended

Jun. 24, 2016

Total Revenues by Geographic Regions

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


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015		June 27, 2014
North America	$	525,161	$	370,836	$	326,647
Asia-Pacific		351,033		309,941		230,314
Europe		100,553		92,810		120,893

Total	$	976,747	$	773,587	$	677,854

Revenues by End Market

The following table presents revenues by end market:


	Years Ended
(amount in thousands)	June 24, 2016		June 26, 2015		June 27, 2014
Optical communications	$	727,580	$	553,245	$	484,071
Lasers, sensors, and other		249,167		220,342		193,783

Total	$	976,747	$	773,587	$	677,854

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 24, 2016			June 26, 2015			June 27, 2014
Lumentum Operations LLC		20	%		20	%		24	%
Oclaro, Inc.		*	⁽¹⁾		10	%		22	%

⁽¹⁾

Less than 10% of total revenue.

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 24, 2016, June 26, 2015 and June 27, 2014, respectively, were as follows:


	Years Ended
	June 24, 2016			June 26, 2015			June 27, 2014
Lumentum Operations LLC		18	%		19	%		23	%
Valeo		11	%		11	%		10	%
Oclaro, Inc.		*	⁽¹⁾		*	⁽¹⁾		14	%

⁽¹⁾

Less than 10% of total accounts receivable.

Financial instruments (Tables)

12 Months Ended

Jun. 24, 2016

Outstanding Foreign Currency Assets and Liabilities

As of June 24, 2016 and June 26, 2015, the Company had outstanding foreign currency assets and liabilities as follows:


	As of June 24, 2016				As of June 26, 2015
(amount in thousands)	Currency		$		Currency		$
Assets
Thai baht		834,536	$	23,594		377,785	$	11,596
RMB		14,835		2,255		67,455		11,029

Total			$	25,849			$	22,625

Liabilities
Thai baht		1,517,782	$	42,912		860,425	$	26,410
RMB		24,654		3,748		20,461		3,347

Total			$	46,660			$	29,757

UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables)

12 Months Ended

Jun. 24, 2016

Quarterly Financial Information

The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters in the fiscal years ended June 24, 2016 and June 26, 2015:


	Three Months Ended
(in thousands, except per share data)	Jun 24, 2016		Mar 25, 2016		Dec 25, 2015		Sep 25, 2015		Jun 26, 2015		Mar 27, 2015		Dec 26, 2014		Sep 26, 2014
Total revenues	$	276,388	$	250,888	$	233,038	$	216,433	$	206,456	$	189,453	$	188,353	$	189,325

Gross profit	$	33,842	$	31,177	$	28,493	$	26,011	$	24,549	$	21,657	$	21,061	$	20,506

Net income	$	19,669	$	20,822	$	19,803	$	1,603	$	13,035	$	10,845	$	8,726	$	11,036

Basic net income per share:
Net income	$	0.55	$	0.58	$	0.55	$	0.05	$	0.37	$	0.31	$	0.25	$	0.31

Weighted-average shares used in basic net income per share calculations		36,075		35,964		35,812		35,579		35,431		35,406		35,349		35,230

Diluted net income per share:
Net income	$	0.53	$	0.56	$	0.54	$	0.04	$	0.36	$	0.30	$	0.24	$	0.31

Weighted-average shares used in diluted net income per share calculations		37,258		37,089		36,826		36,315		36,320		36,110		35,917		35,587

Property Plant and Equipment Estimated Useful Life (Detail)	12 Months Ended
	Jun. 24, 2016
Building and Building Improvement \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	10 years
Building and Building Improvement \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	30 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Leasehold improvements	Shorter of useful life or lease term
Manufacturing Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	3 years
Manufacturing Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	5 years
Office Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	3 years
Office Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	5 years
Motor Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	5 years
Computers \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	3 years
Computers \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful life	5 years

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Accounting Policies [Line Items]
Services revenue recognized	$ 31,700	$ 32,300	$ 25,500
Warranty cost allowances	$ 100	$ 30	$ 20

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

12 Months Ended

30 Months Ended

36 Months Ended

Jun. 24, 2016

Jun. 26, 2015

Jun. 27, 2014

Jun. 28, 2013

Dec. 31, 2010

Jun. 24, 2016

Dec. 31, 2013

Income Taxes [Line Items]

Exempted income from corporate income tax

^[1]

$ 2,289

$ 7,094

$ 15,648

Corporate income tax rate

20.00%

Deferred Tax Assets, Net operating Loss carry forwards

$ 4,900

$ 1,000

$ 4,900

Deferred tax liabilities

1,687

737

1,687

Accrued interest and penalties related to uncertain tax positions

400

200

$ 400

Recorded (reversed) interest and penalties

$ 200

100

$ (600)

Cayman Islands

Income Taxes [Line Items]

Tax exemption period

20 years

Tax exemption renewal period

20 years

Exempted income from corporate income tax

$ 41,000

$ 27,000

$ 73,000

China

Income Taxes [Line Items]

Corporate income tax rate

25.00%

15.00%

Thailand

Income Taxes [Line Items]

Reduced corporate Income Tax rate

20.00%

23.00%

Corporate income tax rate

20.00%

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

8 years

Unremitted earnings

$ 68,800

$ 50,900

$ 68,800

Unrecognized deferred tax liabilities

4,200

2,600

4,200

Deferred tax liabilities

$ 700

Thailand | From fiscal year 2017 onwards

Income Taxes [Line Items]

Corporate income tax rate

20.00%

[1]

Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
Income Tax Expense (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Income Taxes [Line Items]
Current	$ 5,413	$ 4,191	$ 2,304
Deferred	922	(207)	(865)
Corporate income tax expense	$ 6,335	$ 3,984	$ 1,439

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

12 Months Ended

Jun. 24, 2016

Jun. 26, 2015

Jun. 27, 2014

Reconciliation of Effective Income Tax Rate [Line Items]

Income before income taxes

^[1]

$ 68,232

$ 47,626

$ 93,170

Tax expense calculated at a statutory corporate income tax rate of 20% (2015 and 2014: 20%)

13,646

9,525

18,634

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

(6,631)

1,134

(2)

Income not subject to tax

^[2]

(2,289)

(7,094)

(15,648)

Income tax on unremitted earnings (reversal of)

741

1,263

(259)

Effect of different tax rate in relation to deferred tax utilization

^[3]

894

(221)

(662)

Effect of foreign exchange rate adjustment

375

(365)

(380)

Tax rebate from research and development application

(145)

(102)

Reversal of reserve fixed assets damaged from flooding

(251)

Others

(256)

(156)

Corporate income tax expense

$ 6,335

$ 3,984

$ 1,439

[1]	Income before income taxes was mostly generated from domestic income in the Cayman Islands.
[2]	Income not subject to tax relates to income earned in the Cayman Islands and income subject to an investment promotion privilege for Building 5 and Building 6. Income not subject to tax per ordinary share on a diluted basis (in dollars) was $0.06, $0.20 and $0.44 for the years ended June 24, 2016, June 26, 2015 and June 27, 2014, respectively.
[3]	The balances were effect of different tax rate in relation to the rate recognized deferred taxes during the fiscal year and the rate when deferred taxes will be utilized in the following fiscal years.

Reconciliation between Taxes that Would Arise by Applying Statutory Tax Rate of Country of Principal Operations to Effective Tax Charge (Parenthetical) (Detail) - $ / shares	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Reconciliation of Effective Income Tax Rate [Line Items]
Tax calculated at a corporate income tax rate, rate	20.00%	20.00%	20.00%
Income (loss) not subject to tax per ordinary share on a diluted basis	$ 0.06	$ 0.20	$ 0.44

Deferred Tax Assets and Deferred Tax Liabilities, Net of Valuation Allowance (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015
Deferred tax assets:
Depreciation	$ 846	$ 1,057
Severance liability	955	1,192
Reserve and allowance	1,376	1,648
Others	(13)	14
Total	3,164	3,911
Deferred tax liabilities:
Depreciation	833
Deferred tax from unremitted earning	(1,687)	(737)
Total	(854)	(737)
Net deferred income tax assets	$ 2,310	$ 3,174

Current Deferred Income Tax Assets and Liabilities and Non-Current Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015
Schedule of Deferred Income Tax Assets and Liabilities [Line Items]
Deferred income tax assets-current	$ 1,358	$ 1,662
Deferred income tax liabilities-current	0	0
Current deferred income tax-net	1,358	1,662
Deferred income tax assets-non current	6,687	3,253
Less: Valuation allowance	(4,881)	(1,004)
Deferred income tax liabilities-non current	(854)	(737)
Non-current deferred income tax-net	952	1,512
Net deferred income tax assets	$ 2,310	$ 3,174

Changes to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Income Tax Contingency [Line Items]
Beginning balance	$ 1,420	$ 868	$ 1,167
Additions during the year		552	510
Reductions for tax positions of prior years			(809)
Ending balance	$ 1,420	$ 1,420	$ 868

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

3 Months Ended

12 Months Ended

Jun. 24, 2016

Mar. 25, 2016

Dec. 25, 2015

Sep. 25, 2015

Jun. 26, 2015

Mar. 27, 2015

Dec. 26, 2014

Sep. 26, 2014

Jun. 24, 2016

Jun. 26, 2015

Jun. 27, 2014

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

Net income attributable to shareholders

$ 19,669

$ 20,822

$ 19,803

$ 1,603

$ 13,035

$ 10,845

$ 8,726

$ 11,036

$ 61,897

$ 43,642

$ 91,731

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

36,075

35,964

35,812

35,579

35,431

35,406

35,349

35,230

35,857

35,354

34,938

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

1,015

630

651

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

37,258

37,089

36,826

36,315

36,320

36,110

35,917

35,587

36,872

35,984

35,589

Basic earnings per ordinary share

$ 0.55

$ 0.58

$ 0.55

$ 0.05

$ 0.37

$ 0.31

$ 0.25

$ 0.31

$ 1.73

$ 1.23

$ 2.63

Diluted earnings per ordinary share

$ 0.53

$ 0.56

$ 0.54

$ 0.04

$ 0.36

$ 0.30

$ 0.24

$ 0.31

$ 1.68

$ 1.21

$ 2.58

Outstanding share options excluded in the computation of diluted earnings per ordinary share

^[1]

39,544

44,369

[1]	These share options were not included in the computation of diluted earnings per ordinary share because the exercise price of the options was greater than the average market price of the underlying shares.

Cash, Cash Equivalents, and Marketable Securities (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents and Marketable securities, Carrying Cost	$ 284,114	$ 255,888
Marketable securities, Unrealized Gain/(Loss)	399	(44)
Cash and cash equivalents	142,804	112,978	$ 233,477	$ 149,716
Marketable securities	141,709	142,866
Cash
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents, Carrying Cost	136,754	105,548
Cash and cash equivalents	136,754	105,548
Cash Equivalents
Cash, cash equivalents and marketable securities [Line Items]
Cash and cash equivalents, Carrying Cost	6,050	7,430
Cash and cash equivalents	6,050	7,430
Corporate bonds and commercial papers
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	112,128	120,144
Marketable securities, Unrealized Gain/(Loss)	394	(43)
Marketable securities	112,522	120,101
U.S. agency and U.S. treasury securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	28,028	21,029
Marketable securities, Unrealized Gain/(Loss)	2	(2)
Marketable securities	28,030	21,027
Sovereign And Municipal Securities
Cash, cash equivalents and marketable securities [Line Items]
Marketable securities, Carrying cost	1,154	1,737
Marketable securities, Unrealized Gain/(Loss)	3	1
Marketable securities	$ 1,157	$ 1,738

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015
Cash, cash equivalents and marketable securities [Line Items]
Effective interest rate on short term bank deposits	0.70%	0.70%
Percentage of cash and cash equivalents held by parent company	66.00%
Net realized loss from changes in fair value of marketable securities	$ (200,000)
Impairment losses	0
Cash, cash equivalents and marketable securities at financial institutions located in the United States	$ 40,000,000

Available-for-Sale Securities Based on Stated Effective Maturities (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015
Adjusted cost
Due within one year	$ 19,609
Due between one to three years	121,701
Total	141,310
Fair value
Due within one year	19,628
Due between one to three years	122,081
Total	$ 141,709	$ 142,866

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

Jun. 24, 2016

Jun. 26, 2015

Assets

Derivative assets

$ 158

$ 4

Total

147,917

150,300

Liabilities

Derivative liabilities

1,754

371

Total

1,754

371

Cash Equivalents

Assets

Marketable securities

6,050

7,430

Corporate bonds and commercial papers

Assets

Marketable securities

112,522

120,101

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

Assets

Marketable securities

28,030

21,027

Sovereign And Municipal Securities

Assets

Marketable securities

1,157

1,738

Significant Other Observable Inputs (Level 2)

Assets

Derivative assets

158

^[1]

^[2]

Total

147,917

150,300

Liabilities

Derivative liabilities

1,754

^[3]

371

^[4]

Total

1,754

371

Significant Other Observable Inputs (Level 2) | Cash Equivalents

Assets

Marketable securities

6,050

7,430

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

Assets

Marketable securities

112,522

120,101

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

Assets

Marketable securities

28,030

21,027

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

Assets

Marketable securities

$ 1,157

$ 1,738

[1]	Foreign currency forward contract with notional amount of $7.0 million.
[2]	Foreign currency options with notional amount of $3.0 million and forward contracts with notional amount of Canadian dollars 0.4 million.
[3]	Foreign currency forward contract with notional amount of $77.5 million and Canadian dollars 0.6 million.
[4]	Foreign currency options with notional amount of $38.0 million.

Financial Instruments Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - Fair Value, Measurements, Recurring CAD in Millions, $ in Millions	Jun. 24, 2016 USD ($)	Jun. 24, 2016 CAD	Jun. 26, 2015 USD ($)	Jun. 26, 2015 CAD
Foreign currency options
Fair Value Measurements at Reporting Date Using
Derivative assets, notional amount			$ 3.0
Derivative liabilities, notional amount			$ 38.0
Foreign currency forward contracts
Fair Value Measurements at Reporting Date Using
Derivative assets, notional amount	$ 7.0			CAD 0.4
Derivative liabilities, notional amount	$ 77.5	CAD 0.6

Fair Value - Additional Information (Detail) CAD in Millions	12 Months Ended
	Jun. 24, 2016 USD ($) Contract	Jun. 26, 2015 USD ($) Contract	Jun. 27, 2014 USD ($)	Jun. 24, 2016 CAD Contract	Jun. 26, 2015 CAD Contract
Foreign Currency Fair Value Hedge Derivative [Line Items]
Unrealized gain (loss) on derivatives	$ (1,905,000)	$ (671,000)	$ (722,000)
Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative assets	200,000
Derivative liabilities	$ 1,700,000
Foreign currency forward contracts \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract	14			14
Derivative liabilities, notional amount	$ 77,500,000			CAD 0.6
Unrealized gain (loss) on derivatives	$ (1,800,000)
Foreign currency forward contracts \| Non designated \| Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2016-07
Foreign currency forward contracts \| Non designated \| Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2016-12
Foreign currency forward contracts \| Cash Flow Hedging
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract	2	0		2	0
Derivative assets, notional amount	$ 7,000,000
Unrealized gain (loss) on derivatives	200,000
Derivative ineffective portion	0
Foreign currency cash flow hedge gain to be reclassified during next 12 months	10,000
Discontinued of cash flow hedges recognized	$ 0
Foreign currency forward contracts \| Cash Flow Hedging \| Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2016-08
Foreign currency forward contracts \| Cash Flow Hedging \| Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period	2016-09
Forward Foreign Currency and Option Contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative liabilities		$ 400,000
Forward Foreign Currency and Option Contracts \| Non designated
Foreign Currency Fair Value Hedge Derivative [Line Items]
Number of forward contracts outstanding \| Contract		42			42
Unrealized gain (loss) on derivatives		$ (400,000)
Derivative notional amount		$ 41,000,000			CAD 0.4
Forward Foreign Currency and Option Contracts \| Non designated \| Minimum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period		2015-06
Forward Foreign Currency and Option Contracts \| Non designated \| Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative maturity period		2015-12

Activities and Balances for Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Charged to consolidated statements of operations and comprehensive income	$ (17)	$ 13	$ (72)
Allowance for Doubtful Accounts
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance, beginning of fiscal year	50	37	109
Charged to consolidated statements of operations and comprehensive income	(17)	13	(72)
Balance, end of fiscal year	$ 33	$ 50	$ 37

Inventory (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015
Inventory [Line Items]
Raw materials	$ 58,199	$ 46,065
Work in progress	94,762	69,174
Finished goods	21,593	11,843
Goods in transit	9,381	6,488
Inventory, Gross, Total	183,935	133,570
Less: Inventory obsolescence	(2,436)	(2,957)
Inventory, net	$ 181,499	$ 130,613

Property Plant and Equipment Net (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015
Property, Plant and Equipment [Line Items]
Cost	$ 275,570	$ 222,723
Less: Accumulated depreciation	(97,160)	(82,069)
Net book value	178,410	140,654
Land
Property, Plant and Equipment [Line Items]
Cost	39,048	26,672
Net book value	39,048	26,672
Building and Building Improvement
Property, Plant and Equipment [Line Items]
Cost	95,386	86,926
Less: Accumulated depreciation	(25,438)	(21,016)
Net book value	69,948	65,910
Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Cost	96,041	79,825
Less: Accumulated depreciation	(56,564)	(47,017)
Net book value	39,477	32,808
Office Equipment
Property, Plant and Equipment [Line Items]
Cost	5,826	5,378
Less: Accumulated depreciation	(3,500)	(3,343)
Net book value	2,326	2,035
Motor Vehicles
Property, Plant and Equipment [Line Items]
Cost	443	528
Less: Accumulated depreciation	(366)	(458)
Net book value	77	70
Computers
Property, Plant and Equipment [Line Items]
Cost	15,578	13,196
Less: Accumulated depreciation	(11,292)	(10,235)
Net book value	4,286	2,961
Construction and Machinery Under Installation
Property, Plant and Equipment [Line Items]
Cost	23,248	10,198
Net book value	$ 23,248	$ 10,198

Property Plant and Equipment, Net - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Property, Plant and Equipment [Line Items]
Aggregate Purchase price of land	$ 12,400,000
Aggregate purchase price of land and building		$ 25,500,000
Depreciation expense	17,300,000	12,900,000	$ 10,600,000
Property, plant and equipment written-off, fully depreciated cost	2,000,000	1,100,000	$ 2,600,000
Capitalized interest expense related to long-term loan	$ 100,000	$ 0

Intangibles (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,786	$ 3,357
Accumulated Amortization	(3,287)	(3,220)
Net	499	137
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,786	3,357
Accumulated Amortization	(3,287)	(3,220)
Net	$ 499	$ 137

Intangibles - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to intangibles	$ 0.1	$ 0.1	$ 0.1

Estimated Future Amortization of Intangibles Assets (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015
Finite-Lived Intangible Assets [Line Items]
2017	$ 114
2018	113
2019	113
2020	109
2021	50
Net	$ 499	$ 137

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

12 Months Ended

Jun. 24, 2016

Jun. 26, 2015

Jun. 27, 2014

Debt Instrument [Line Items]

Revolving borrowing

$ 6,500

$ 30,000

Current portion of long-term borrowing

18,100

6,000

Bank borrowings, including revolving loan and current portion of long-term loans from banks

24,600

36,000

Long-term borrowing

54,500

10,500

$ 16,500

Non-current portion

$ 36,400

4,500

Loans Payable Due March 2017

Debt Instrument [Line Items]

Rate

^[1]

LIBOR + 2.80% per annum

Conditions

Repayable in quarterly installments

Term

2017-03

Long-term borrowing

$ 4,500

$ 10,500

Loans Payable Due May 2019

Debt Instrument [Line Items]

Rate

^[1]

LIBOR + 1.75% per annum

Conditions

Repayable in quarterly installments

Term

2019-05

Long-term borrowing

$ 50,000

Revolving Credit Facility

Debt Instrument [Line Items]

Rate

^[1]

LIBOR + 1.75% per annum

Conditions

Repayable in 1 to 6 months

Term

^[2]

2016-07

Revolving borrowing

$ 6,500

Revolving Credit Facility | Minimum

Debt Instrument [Line Items]

Repayment duration

1 month

Revolving Credit Facility | Maximum

Debt Instrument [Line Items]

Repayment duration

6 months

LIBOR | Minimum

Debt Instrument [Line Items]

Margin above LIBOR

1.75%

LIBOR | Maximum

Debt Instrument [Line Items]

Margin above LIBOR

2.50%

LIBOR | Loans Payable Due March 2017

Debt Instrument [Line Items]

Margin above LIBOR

2.80%

LIBOR | Loans Payable Due May 2019

Debt Instrument [Line Items]

Margin above LIBOR

1.75%

LIBOR | Revolving Credit Facility

Debt Instrument [Line Items]

Margin above LIBOR

1.75%

[1]	LIBOR is London Interbank Offered Rate.
[2]	In July 2016, the maturity date of this revolving borrowing was extended to mature in August 2016.

Borrowings - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
Borrowings - Additional Information (Detail) - USD ($)	Jul. 31, 2016	Jun. 24, 2016	Jun. 26, 2015
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity		$ 200,000,000
Line of credit facility amounts outstanding		6,500,000	$ 30,000,000
Undrawn available credit facilities		143,500,000
Cash, cash equivalents and marketable securities at financial institutions located in the United States		40,000,000
Deposits or securities		10,000,000
Minimum net worth required for credit agreement		$ 200,000,000
Percentage of quarterly net income required for credit agreement		50.00%
Minimum debt service coverage ratio		150.00%
Maximum senior leverage ratio		250.00%
Minimum quick ratio required for credit agreement		110.00%
Bank borrowing No. 1 \| Subsidiary
Line of Credit Facility [Line Items]
Carrying amount of assets secured and pledged as collateral		$ 47,700,000	$ 50,000,000
LIBOR
Line of Credit Facility [Line Items]
Credit line interest rate		LIBOR rate plus a spread of 1.75% to 2.50%
LIBOR \| Minimum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		1.75%
LIBOR \| Maximum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		2.50%
Base Rate
Line of Credit Facility [Line Items]
Credit line interest rate		Base rate, determined in accordance with the Facility Agreement, plus a spread of 0.75% to 1.50%
Base Rate \| Minimum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		0.75%
Base Rate \| Maximum
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		1.50%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity		$ 150,000,000
Line of credit facility increase in borrowing capacity		$ 100,000,000
Line of credit expiration date		May 22, 2019
Line of credit facility amounts outstanding		$ 6,500,000
Revolving Credit Facility \| Subsequent Event
Line of Credit Facility [Line Items]
Extended maturity date	2016-08
Revolving Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Repayment duration		1 month
Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Repayment duration		6 months
Revolving Credit Facility \| LIBOR
Line of Credit Facility [Line Items]
Credit line interest rate, percentage		1.75%
Term Loan Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility borrowing capacity		$ 50,000,000
Line of credit expiration date		May 22, 2019
Line of credit facility amounts outstanding		$ 50,000,000

Movements of Long-Term Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Debt Instrument [Line Items]
Opening net book amount	$ 10,500	$ 16,500
Additional loan during the period	50,000
Repayment during the period	(6,000)	(6,000)	$ (12,411)
Closing net book amount	$ 54,500	$ 10,500	$ 16,500

Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Debt Instrument [Line Items]
2017	$ 18,100
2018	13,600
2019	22,800
Total	$ 54,500	$ 10,500	$ 16,500

Undrawn Available Credit Facilities Classified by Available Period of Future Borrowing (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 143,500
Short-term loans
Line of Credit Facility [Line Items]
Undrawn available credit facilities	1,414	$ 1,480
Long-term loans
Line of Credit Facility [Line Items]
Undrawn available credit facilities	$ 143,500	$ 170,000

Severance Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
Severance Liabilities (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Balance, beginning of the fiscal year	$ 5,477	$ 4,453
Charged to selling, general and administrative expenses in the consolidated statements of operations and comprehensive income	1,207	1,024	$ 71
Balance, end of the fiscal year	$ 6,684	$ 5,477	$ 4,453

Severance Liabilities Recognized in Balance Sheet (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Present value of defined benefit obligation	$ 6,684	$ 5,477
Total	$ 6,684	$ 5,477	$ 4,453

Severance Costs Recognized in Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Current service cost	$ 842	$ 360	$ 368
Interest cost	203	203	207
Benefit paid	(11)	(10)	(223)
Actuarial loss (gain) on obligation	173	471	(281)
Total	$ 1,207	$ 1,024	$ 71

Principal Actuarial Assumptions Used (Detail)	12 Months Ended
Principal Actuarial Assumptions Used (Detail)	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
Discount rate		4.00%	4.90%
Future salary increases		4.20%	4.20%
Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.00%
Future salary increases	4.10%
Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.20%
Future salary increases	10.00%

Effect of Recording Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Share-based compensation expense by type of award:
Share options	$ 16	$ 226	$ 802
Restricted share units	9,911	7,801	4,745
Total share-based compensation expense	9,927	8,027	5,547
Tax effect on share-based compensation expense	0	0	0
Net effect on share-based compensation expense	$ 9,927	$ 8,027	$ 5,547

Share-Based Compensation Expense Recorded in Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 9,927	$ 8,027	$ 5,547
Cost of Revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,979	1,450	1,182
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 7,948	$ 6,577	$ 4,365

Share-Based Compensation - Additional Information (Detail)		12 Months Ended
	May 24, 2015	Jun. 24, 2016 USD ($) Installment shares	Jun. 26, 2015 USD ($) shares	Jun. 27, 2014 USD ($) shares	Jun. 28, 2013 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of shares vested		$ 200,000	$ 1,100,000	$ 2,000,000
Total intrinsic value of options exercised		3,600,000	$ 200,000	2,200,000
Cash received from the exercise of share options		5,500,000
Tax benefit realized		$ 0
Annualized dividend yield		0.00%
Shares withheld to settle employee minimum statutory obligation for applicable income and other employment taxes \| shares		114,359	19,679
Tax withholdings related to net share settlement of restricted share units		$ 2,463,000	$ 352,000	327,000
Stock Plan 1999
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options outstanding \| shares		5
Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share options outstanding \| shares		464,329
Ordinary shares available for future grant \| shares		2,207,607
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year		4 years
Options expiration period, year		7 years
Employee Stock Option \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense		$ 0
Employee Stock Option \| Vest 12 months after the vesting commencement date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		25.00%
Employee Stock Option \| Vest monthly over each of the subsequent 36 months
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		2.083%
Employee Stock Option \| Vest monthly over four years, commencing one month after the vesting commencement date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		2.083%
Restricted Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year		4 years
Award granted, equal installments \| Installment		4
Total fair value of restricted share units vested		$ 7,900,000	$ 3,600,000	$ 2,400,000
Aggregate intrinsic value of restricted share units outstanding		$ 41,300,000
Restricted Share Units \| Stock Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share units outstanding \| shares		1,181,402	1,140,927	762,295	545,668
Unrecognized share-based compensation expense		$ 8,800,000
Unrecognized compensation expense, weighted-average period for recognition		2 years 8 months 19 days
Restricted Share Units \| Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year		1 year
Restricted Share Units \| Non Employee Director \| Vest on the first of January
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		100.00%
Restricted Share Units \| Executive of the Company
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award granted vesting period, year	2 years
Restricted Share Units \| Executive of the Company \| If the executive's employment with the Company continues through and including February 20, 2017.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	100.00%

Share Options Activity (Detail) - Stock Plan Nineteen Ninety Nine and Twenty Ten - $ / shares	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014	Jun. 28, 2013
Number of shares
Beginning balance	792,019	865,890	1,277,311
Granted	0	0	0
Exercised	(325,530)	(56,968)	(351,435)
Forfeited	(755)	(8,347)	(26,276)
Expired	(1,400)	(8,556)	(33,710)
Ending balance	464,334	792,019	865,890
Expected to vest as of June 24, 2016	464,334
Number of Exercisable Options
Number of Exercisable Options	464,334	758,451	666,305	750,949
Weighted-Average Exercise Price per share
Beginning balance	$ 16.33	$ 16.27	$ 15.37
Granted	0	0	0
Exercised	16.83	14.67	13.00
Forfeited	17.10	15.90	15.54
Expired	23.62	21.44	16.93
Ending balance	15.95	16.33	16.27
Expected to vest as of June 24, 2016	15.95
Weighted-Average Grant Date Fair Value
Granted	$ 0	$ 0	$ 0

Information for Share Options Outstanding (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 24, 2016 USD ($) $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	464,334
Options outstanding, weighted average remaining contractual life (years)	1 year 8 months 16 days
Options outstanding, aggregate intrinsic value \| $	$ 8,830
Exercise Price 1
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	5
Exercise Price Per Share \| $ / shares	$ 5.75
Options outstanding, weighted average remaining contractual life (years)	4 months 24 days
Exercise Price 2
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	255,428
Exercise Price Per Share \| $ / shares	$ 16.83
Options outstanding, weighted average remaining contractual life (years)	1 year 3 months 18 days
Exercise Price 3
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	30,000
Exercise Price Per Share \| $ / shares	$ 15.05
Options outstanding, weighted average remaining contractual life (years)	1 year 4 months 10 days
Exercise Price 4
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	5,900
Exercise Price Per Share \| $ / shares	$ 25.50
Options outstanding, weighted average remaining contractual life (years)	1 year 6 months 22 days
Exercise Price 5
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	2,400
Exercise Price Per Share \| $ / shares	$ 26.16
Options outstanding, weighted average remaining contractual life (years)	1 year 7 months 10 days
Exercise Price 6
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	9,943
Exercise Price Per Share \| $ / shares	$ 15.16
Options outstanding, weighted average remaining contractual life (years)	2 years 1 month 24 days
Exercise Price 7
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	155,066
Exercise Price Per Share \| $ / shares	$ 14.12
Options outstanding, weighted average remaining contractual life (years)	2 years 4 months 17 days
Exercise Price 8
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	5,550
Exercise Price Per Share \| $ / shares	$ 18.60
Options outstanding, weighted average remaining contractual life (years)	2 years 8 months 5 days
Exercise Price 9
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, outstanding	42
Exercise Price Per Share \| $ / shares	$ 12.83
Options outstanding, weighted average remaining contractual life (years)	2 years 10 months 13 days
Stock Plan Nineteen Ninety Nine and Twenty Ten
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Shares Underlying Options, exercisable	464,334
Options exercisable, weighted average remaining contractual life (years)	1 year 8 months 16 days
Options exercisable, aggregate intrinsic value \| $	$ 8,830
Number of Shares Underlying Options, Expected to vest	464,334
Options Expected to vest, weighted average remaining contractual life (years)	1 year 8 months 16 days
Options Expected to vest, aggregate intrinsic value \| $	$ 8,830

Restricted Share Unit Activity (Detail) - Stock Plan 2010 - Restricted Share Units - $ / shares	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Number of restricted share units
Number of restricted share units, beginning balance	1,140,927	762,295	545,668
Number of restricted share units, Granted	654,589	666,582	479,894
Number of restricted share units, Issued	(507,621)	(247,593)	(184,773)
Number of restricted share units, Forfeited	(106,493)	(40,357)	(78,494)
Number of restricted share units, ending balance	1,181,402	1,140,927	762,295
Number of restricted share units, Expected to vest	1,076,704
Weighted Average Grant Date Fair Value Per Share
Weighted-average grant date fair value per share, Beginning Balance	$ 16.03	$ 14.23	$ 12.81
Weighted-average grant date fair value per share, Granted	21.15	17.53	15.37
Weighted-average grant date fair value per share, Issued	15.60	14.44	12.98
Weighted-average grant date fair value per share, Forfeited	18.34	16.68	14.25
Weighted-average grant date fair value per share, Ending Balance	18.34	$ 16.03	$ 14.23
Weighted-average grant date fair value per share, Expected to vest	$ 18.65

Employee Benefit Plans -Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Defined Contribution and Defined Benefit Plans [Line Items]
Bonus distributions to employees	$ 7.5	$ 6.0	$ 5.1
Provident Fund
Defined Contribution and Defined Benefit Plans [Line Items]
Defined contribution plan, employer annual contribution	2.8	2.3	2.1
Defined Contribution Plan 401k
Defined Contribution and Defined Benefit Plans [Line Items]
Defined contribution plan, employer annual contribution	$ 0.5	$ 0.3	$ 0.2
Employees maximum contribution to 401 (K) Plan	80.00%
Percentage of employees' contribution, eligible for employer match	100.00%
Percentage of employees' annual contribution, eligible for employers match	6.00%

Shareholders' Equity - Additional Information (Detail) - $ / shares	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Shareholders Equity [Line Items]
Ordinary shares, authorized share capital	500,000,000	500,000,000
Ordinary shares, par value	$ 0.01	$ 0.01
Preferred shares, shares authorized	5,000,000	5,000,000
Preferred shares, par value	$ 0.01	$ 0.01
Stock Plan Nineteen Ninety Nine and Twenty Ten
Shareholders Equity [Line Items]
Ordinary shares issued upon exercise of options	325,530	56,968	351,435
Ordinary shares issued upon exercise of options, weight average exercise price	$ 16.83	$ 14.67	$ 13.00
Ordinary shares issued upon vesting of restricted shares	393,262	227,914	166,370

Changes in AOCI by Component, Net of Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 478,944	$ 426,836
Other comprehensive income before reclassification	339	(193)
Amounts reclassified from AOCI	296	149
Tax effects	0	0
Other comprehensive income	635	(44)
Ending Balance	554,419	478,944
Unrealized Net (Losses) / Gains on Marketable Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(44)
Other comprehensive income before reclassification	637	(193)
Amounts reclassified from AOCI	(194)	149
Tax effects	0	0
Other comprehensive income	443	(44)
Ending Balance	399	(44)
Unrealized Net Gains on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income before reclassification	(298)
Amounts reclassified from AOCI	490
Tax effects	0	0
Other comprehensive income	192
Ending Balance	192
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(44)
Tax effects	0	0
Other comprehensive income	635	(44)
Ending Balance	$ 591	$ (44)

Pre-tax Amounts Reclassified from AOCI into Condensed Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	$ (1,535)	$ (1,253)	$ (1,793)
Cost of revenues	857,224	685,814	603,621
Selling, general and administrative expenses	49,753	39,460	$ 27,664
Total amounts reclassified from AOCI	296	149
Unrealized Net (Losses) / Gains on Marketable Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amounts reclassified from AOCI	(194)	149
Unrealized Net Gains on Derivative Instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total amounts reclassified from AOCI	490
Reclassification out of Accumulated Other Comprehensive Income \| Unrealized Net (Losses) / Gains on Marketable Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	(194)	$ 149
Reclassification out of Accumulated Other Comprehensive Income \| Unrealized Net Gains on Derivative Instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of revenues	471
Selling, general and administrative expenses	$ 19

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Commitments and Contingencies Disclosure [Line Items]
Outstanding bank guarantees given by bank on behalf of the company	$ 0.8	$ 0.8
Rental expense under operating leases	1.2	$ 1.1	$ 0.8
Outstanding commitment to third parties	$ 22.2
Maximum
Commitments and Contingencies Disclosure [Line Items]
Operating lease expiration year	2021

Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases (Detail) $ in Thousands	Jun. 24, 2016 USD ($)
Operating Leased Assets [Line Items]
2017	$ 1,347
2018	1,275
2019	718
2020	510
2021	113
Total future minimum operating lease payments	$ 3,963

Business Segments and Geographic Information - Additional Information (Detail) $ in Millions	12 Months Ended
	Jun. 24, 2016 USD ($) Segment	Jun. 26, 2015 USD ($) Segment	Jun. 27, 2014 Segment
Segment Reporting Information [Line Items]
Number of operating segment \| Segment	1	1	1
North America
Segment Reporting Information [Line Items]
Long-lived assets \| $	$ 34.7	$ 31.8

Total Revenues by Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 24, 2016	Mar. 25, 2016	Dec. 25, 2015	Sep. 25, 2015	Jun. 26, 2015	Mar. 27, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues	$ 276,388	$ 250,888	$ 233,038	$ 216,433	$ 206,456	$ 189,453	$ 188,353	$ 189,325	$ 976,747	$ 773,587	$ 677,854
North America
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues									525,161	370,836	326,647
Asia Pacific
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues									351,033	309,941	230,314
Europe
Entity Wide Disclosure On Geographic Areas Revenue From External Customers Attributed To Individual Foreign And Domestic Countries [Line Items]
Revenues									$ 100,553	$ 92,810	$ 120,893

Revenues by End Market (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Revenues by End Market (Detail) - USD ($) $ in Thousands	Jun. 24, 2016	Mar. 25, 2016	Dec. 25, 2015	Sep. 25, 2015	Jun. 26, 2015	Mar. 27, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Revenue from External Customer [Line Items]
Revenues	$ 276,388	$ 250,888	$ 233,038	$ 216,433	$ 206,456	$ 189,453	$ 188,353	$ 189,325	$ 976,747	$ 773,587	$ 677,854
Optical communications
Revenue from External Customer [Line Items]
Revenues									727,580	553,245	484,071
Lasers, sensors, and other
Revenue from External Customer [Line Items]
Revenues									$ 249,167	$ 220,342	$ 193,783

Total Revenues by Percentage from Individual Customers Representing Ten Percent or More of Total Revenues (Detail) - Revenue - Customer Concentration Risk	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Lumentum Operations LLC
Revenue, Major Customer [Line Items]
Concentration of risk percentage	20.00%	20.00%	24.00%
Oclaro, Inc.
Revenue, Major Customer [Line Items]
Concentration of risk percentage		10.00%	22.00%

Accounts Receivable from Individual Customers Representing Ten Percent or More of Accounts Receivable (Detail) - Accounts Receivable - Customer Concentration Risk	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Lumentum Operations LLC
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage	18.00%	19.00%	23.00%
Valeo
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage	11.00%	11.00%	10.00%
Oclaro, Inc.
Schedule Of Entity Wide Accounts Receivable By Major Customers By Reporting Segments [Line Items]
Concentration of risk percentage			14.00%

Financial instruments - Additional Information (Detail) - USD ($)	12 Months Ended
	Jun. 24, 2016	Jun. 26, 2015
Financial Instrument [Line Items]
Amount of unrealized loss recognized in net income on derivatives	$ 1,800,000	$ 400,000
Forward Foreign Currency and Option Contracts \| Maximum
Financial Instrument [Line Items]
Derivative term of contract	6 months
Forward Contracts \| Thailand, baht
Financial Instrument [Line Items]
Derivative contracts	$ 84,500,000
Forward Contracts \| China, Yuan Renminbi
Financial Instrument [Line Items]
Derivative contracts	$ 0	0
Options Held \| Thailand, baht
Financial Instrument [Line Items]
Derivative contracts		$ 41,000,000

Outstanding Foreign Currency Assets and Liabilities (Detail) ¥ in Thousands, THB in Thousands, $ in Thousands	Jun. 24, 2016 USD ($)	Jun. 24, 2016 THB	Jun. 24, 2016 CNY (¥)	Jun. 26, 2015 USD ($)	Jun. 26, 2015 THB	Jun. 26, 2015 CNY (¥)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	$ 25,849			$ 22,625
Foreign currency liabilities	46,660			29,757
Thailand, baht
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	23,594	THB 834,536		11,596	THB 377,785
Foreign currency liabilities	42,912	THB 1,517,782		26,410	THB 860,425
China, Yuan Renminbi
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Foreign currency assets	2,255		¥ 14,835	11,029		¥ 67,455
Foreign currency liabilities	$ 3,748		¥ 24,654	$ 3,347		¥ 20,461

Income Related to Flooding - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2016	Jun. 27, 2014
Unusual or Infrequent Item [Line Items]
Income related to flooding	$ (36)	$ (44,748)
Income related to flooding	828	45,211
Expenses related to flooding	860	$ 500
Repair cost of equipment	600
Inventory losses	$ 200

Expenses Related to Reduction in Workforce - Additional Information (Detail) $ in Millions	12 Months Ended
	Jun. 26, 2015 USD ($) Employee
Restructuring Cost and Reserve [Line Items]
Expenses incurred for severance cost and benefits \| $	$ 1.2
Number of terminated of employees \| Employee	100

Subsequent Event - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 17, 2016	Jun. 26, 2015
Subsequent Event [Line Items]
Severance expenses		$ 1.2
Subsequent Event
Subsequent Event [Line Items]
Severance expenses	$ 0.7

Unaudited Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 24, 2016	Mar. 25, 2016	Dec. 25, 2015	Sep. 25, 2015	Jun. 26, 2015	Mar. 27, 2015	Dec. 26, 2014	Sep. 26, 2014	Jun. 24, 2016	Jun. 26, 2015	Jun. 27, 2014
Quarterly Financial Information [Line Items]
Total revenues	$ 276,388	$ 250,888	$ 233,038	$ 216,433	$ 206,456	$ 189,453	$ 188,353	$ 189,325	$ 976,747	$ 773,587	$ 677,854
Gross profit	33,842	31,177	28,493	26,011	24,549	21,657	21,061	20,506	119,523	87,773	74,233
Net income	$ 19,669	$ 20,822	$ 19,803	$ 1,603	$ 13,035	$ 10,845	$ 8,726	$ 11,036	$ 61,897	$ 43,642	$ 91,731
Basic net income per share:
Net income	$ 0.55	$ 0.58	$ 0.55	$ 0.05	$ 0.37	$ 0.31	$ 0.25	$ 0.31	$ 1.73	$ 1.23	$ 2.63
Weighted-average shares used in basic net income per share calculations	36,075	35,964	35,812	35,579	35,431	35,406	35,349	35,230	35,857	35,354	34,938
Diluted net income per share:
Net income	$ 0.53	$ 0.56	$ 0.54	$ 0.04	$ 0.36	$ 0.30	$ 0.24	$ 0.31	$ 1.68	$ 1.21	$ 2.58
Weighted-average shares used in diluted net income per share calculations	37,258	37,089	36,826	36,315	36,320	36,110	35,917	35,587	36,872	35,984	35,589