Employee benefit plans |
12 Months Ended |
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Jun. 27, 2025 | |
| Retirement Benefits [Abstract] | |
| Employee benefit plans | Employee benefit plans Employee contribution plan The Company operates a defined contribution plan, known as a provident fund, in its subsidiaries in Thailand and the United Kingdom. The assets of these plans are in separate trustee-administered funds. The provident fund is funded by matching payments from employees and by the subsidiaries on a monthly basis. Current contributions to the provident fund are accrued and paid to the fund manager on a monthly basis. The Company’s contributions to the provident fund amounted to $8.0 million, $7.0 million and $6.3 million during the years ended June 27, 2025, June 28, 2024 and June 30, 2023, 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 $1.1 million, $1.0 million and $0.8 million during the years ended June 27, 2025, June 28, 2024 and June 30, 2023, respectively. Executive incentive plan and employee performance bonuses For the years ended June 27, 2025 and June 28, 2024, the Company maintained an executive incentive plan with quantitative objectives, based on achieving certain revenue and non-U.S. GAAP operating margin or gross margin targets. During the years ended June 27, 2025, June 28, 2024 and June 30, 2023, discretionary merit-based bonus awards were also available to Fabrinet’s non-executive employees. Bonus distributions to employees were $14.5 million, $13.5 million and $13.0 million for the years ended June 27, 2025, June 28, 2024 and June 30, 2023, respectively.
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