Income taxes |
9 Months Ended |
|---|---|
Mar. 27, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income taxes | Income taxes As of March 27, 2026 and June 27, 2025, the liability for uncertain tax positions including accrued interest and penalties was $4.4 million and $2.2 million, respectively. The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2018 to 2024 remain open to examination by U.S. federal and state, and foreign tax authorities. The Company is currently under examination by the U.S. Internal Revenue Service (“IRS”) for fiscal year 2022. In fiscal year 2025, the IRS completed its examination of the Company’s U.S. subsidiaries for fiscal year 2022 and fiscal year 2023. The Company’s income tax is recognized based on the best estimate of the expected annual effective tax rate for the full financial year of Fabrinet and each of its subsidiaries, adjusted for discrete items arising in that quarter. If the Company’s estimated annual effective tax rate changes, the Company makes a cumulative adjustment in that quarter. The effective tax rate for the Company for the three months ended March 27, 2026 and March 28, 2025 was 6.7% and 5.8%, respectively, of net income. The increase was due to an increase in income subject to tax. The effective tax rate for the Company for the nine months ended March 27, 2026 and March 28, 2025 was 6.1% and 6.3%, respectively, of net income. The decrease was due to an increase in income not subject to tax.
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