Income taxes (Tables)

12 Months Ended

Jun. 27, 2025

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


	Years Ended
(in thousands)	June 27, 2025		June 28, 2024		June 30, 2023
Current	$	27,812	$	11,993	$	15,044
Deferred	(5,159)		3,180		(2,861)
Total income tax expense	$	22,653	$	15,173	$	12,183

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

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


	Years Ended
(in thousands)	June 27, 2025		June 28, 2024		June 30, 2023
Income before income taxes (1)	$	355,180	$	311,354	$	260,096
Tax expense calculated at a statutory corporate income tax rate of 20%	71,036		62,271		52,019
Effect of income taxes from locations with tax rates different from Thailand	(1,197)		(945)		659
Income not subject to tax (2)	(62,032)		(62,940)		(43,685)
Income tax on unremitted earnings	1,521		1,488		2,452
Non-deductible expenses	9,045		10,347		39
Foreign operations	2,426		(600)		1,792
Tax rebate from research and development application	(211)		17		(124)
Provision for uncertain income tax position	678		1,131		(7)
Utilization of loss and tax credits carryforward	—		—		(80)
Changes in valuation allowance (3)	—		3,759		(1,608)
Others	1,387		645		726
Corporate income tax expense	$	22,653	$	15,173	$	12,183

(1)Income before income taxes from domestic operations in the Cayman Islands amounted to $263.0 million, $306.0 million and $196.5 million for the years ended June 27, 2025, June 28, 2024 and June 30, 2023, respectively.

(2)Income not subject to tax relates to income earned in the Cayman and Mauritius Islands and income subject to an investment promotion privilege in Thailand. Income not subject to tax per ordinary share on a diluted basis was $1.71, $1.72, and $1.19 for the years ended June 27, 2025, June 28, 2024, and June 30, 2023, respectively.

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

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

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


	As of
(in thousands)	June 27, 2025		June 28, 2024
Deferred tax assets:
Depreciation	$	2,368	$	1,890
Severance liability	5,981		4,496
Reserves and allowance	5,554		3,735
Net operating loss carryforwards	2,532		3,146
Others	452		792
Total	16,887		14,059
Less: Valuation allowance	(3,481)		(3,613)
Net deferred tax assets	$	13,406	$	10,446

Deferred tax liabilities:
Temporary differences from intangibles and changes in the fair value of assets acquired	$	(1,543)	$	(1,626)
Deferred tax from unremitted earnings	(2,141)		(5,303)
Others	2,089		2,034
Total	(1,595)		(4,895)
Net	$	11,811	$	5,551

Schedule of Changes in Valuation Allowances of Deferred Tax Assets

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


(in thousands)	Valuation allowances of deferred tax assets
Balance as of June 24, 2022	$	4,934
Additional	498
Reduction	(1,608)
Balance as of June 30, 2023	3,824
Additional	3,613
Reduction	(3,824)
Balance as of June 28, 2024	3,613
Additional	823
Reduction	(955)
Balance as of June 27, 2025	$	3,481

Schedule of Changes to Unrecognized Tax Benefits

The changes to the Company’s uncertain income tax positions for the years ended June 27, 2025, June 28, 2024 and June 30, 2023, excluding interest and penalties, were as follows:


	Years Ended
(in thousands)	June 27, 2025		June 28, 2024		June 30, 2023
Beginning balance	$	1,249	$	1,288	$	1,392
Additions during the year	620		1,091		15
Release of tax positions of prior years	(23)		(1,130)		(119)
Ending balance	$	1,846	$	1,249	$	1,288