Fair value of financial instruments (Tables)

6 Months Ended

Dec. 26, 2025

Schedule of Financial Instruments Measured at Fair Value on Recurring Basis

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


	Fair Value Measurements at Reporting Date Using
(in thousands)	Level 1		Level 2			Level 3		Total
As of December 26, 2025
Assets
Cash equivalents	$	—	$	11,507		$	—	$	11,507

Certificates of deposit and time deposits	—		108,362			—		108,362
Corporate debt securities	—		233,711			—		233,711
U.S. agency and U.S. treasury securities	—		298,845			—		298,845
Derivative assets – current portion	—		5,394		(1)	—		5,394

Total	$	—	$	657,819		$	—	$	657,819
Liabilities
Derivative liabilities – current portion	$	—	$	(29)	(2)	$	—	$	(29)

Total	$	—	$	(29)		$	—	$	(29)


	Fair Value Measurements at Reporting Date Using
(in thousands)	Level 1		Level 2			Level 3		Total
As of June 27, 2025
Assets
Cash equivalents	$	—	$	11,183		$	—	$	11,183

Certificates of deposit and time deposits	—		145,752			—		145,752
Corporate debt securities	—		189,973			—		189,973
U.S. agency and U.S. treasury securities	—		292,094			—		292,094
Derivative assets – current portion	—		2,961		(3)	—		2,961
Total	$	—	$	641,963		$	—	$	641,963
Liabilities
Derivative liabilities – current portion	$	—	$	(105)	(4)	$	—	$	(105)

Total	$	—	$	(105)		$	—	$	(105)

(1)Foreign currency forward contracts with an aggregate notional amount of $189.0 million and 0.4 million Canadian dollars.

(2)Foreign currency forward contracts with an aggregate notional amount of $11.0 million.

(3)Foreign currency forward contracts with an aggregate notional amount of $130.0 million and 0.5 million Canadian dollars.

(4)Foreign currency forward contracts with an aggregate notional amount of $35.0 million.

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

The following table provides a summary of the impact of derivative gain (loss) of the Company’s foreign currency forward contracts and interest rate swaps which were designated as cash flow hedges on the unaudited condensed consolidated statements of operations and other comprehensive income:


		Three Months Ended				Six Months Ended
(in thousands)	Financial statements line item	December 26, 2025		December 27, 2024		December 26, 2025		December 27, 2024
Derivatives gain (loss) recognized in other comprehensive income (loss):
Foreign currency forward contracts	Other comprehensive income (loss)	$	5,309	$	(13,303)	$	2,509	$	(57)

Total derivatives gain (loss) recognized in other comprehensive income (loss)		$	5,309	$	(13,303)	$	2,509	$	(57)
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Foreign currency forward contracts	Cost of revenues	$	478	$	(5,905)	$	(773)	$	(4,486)
Foreign currency forward contracts	SG&A	36		(451)		(59)		(345)
Foreign currency forward contracts	Foreign exchange gain (loss), net	(947)		9,842		1,061		3,933

Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings		$	(433)	$	3,486	$	229	$	(898)
Change in net unrealized gain (loss) on derivatives instruments		$	4,876	$	(9,817)	$	2,738	$	(955)

Schedule of Derivative Financial Instruments

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


	December 26, 2025				June 27, 2025
(in thousands)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Derivatives not designated as hedging instruments
Foreign currency forward and option contracts	$	1,095	$	—	$	1,303	$	(12)

Derivatives designated as hedging instruments
Foreign currency forward contracts	4,299		(29)		1,658		(93)

Derivatives, gross balances	$	5,394	$	(29)	$	2,961	$	(105)

Schedule of Derivative Financial Instruments in the Unaudited Condensed Consolidated Balance Sheets

The Company recorded the fair value of derivative financial instruments in the unaudited condensed consolidated balance sheets as follows:


Derivative Financial Instruments			Balance Sheet line item

Fair Value of Derivative Assets			Other current assets


Fair Value of Derivative Liabilities			Accrued expenses

Fabrinet 10-Q