Fabrinet

Previous wording

•our expectation that the portion of our revenues attributable to customers in regions outside of North America for the remainder of fiscal year 2024 will be in line with the portion of revenues attributable to such customers during the six months ended December 29, 2023;

Current wording

•our expectation that the portion of our revenues attributable to customers in regions outside of North America for the remainder of fiscal year 2024 will be in line with the portion of revenues attributable to such customers during the nine months ended March 29, 2024;

Previous wording

The percentage of our revenues generated from a bill-to location outside of North America increased from 51.5% in the three months ended December 30, 2022 to 66.1% in the three months ended December 29, 2023, primarily because of an increase in revenue from a customer in Israel and a decrease in sales to our customers in North America.

Current wording

The percentage of our revenues generated from a bill-to location outside of North America increased from 52.5% in the three months ended March 31, 2023 to 62.8% in the three months ended March 29, 2024, primarily because of an increase in revenue from a customer in Israel and a decrease in sales to our customers in North America.

Previous wording

The percentage of our revenues generated from a bill-to location outside of North America increased from 49.2% in the six months ended December 30, 2022 to 64.2% in the six months ended December 29, 2023, primarily because of an increase in revenue from a customer in Israel and a decrease in sales to our customers in North America.

Current wording

The percentage of our revenues generated from a bill-to location outside of North America increased from 50.3% in the nine months ended March 31, 2023 to 63.7% in the nine months ended March 29, 2024, primarily because of an increase in revenue from a customer in Israel and a decrease in sales to our customers in North America.

Previous wording

Based on the short and medium-term indications and forecasts from our customers, we expect that the portion of our future revenues attributable to customers in regions outside North America for the remainder of fiscal year 2024 will be in line with the portion of revenues attributable to such customers during the six months ended December 29, 2023.

Current wording

Based on the short and medium-term indications and forecasts from our customers, we expect that the portion of our future revenues attributable to customers in regions outside North America for the remainder of fiscal year 2024 will be in line with the portion of revenues attributable to such customers during the nine months ended March 29, 2024.

Previous wording

Our SG&A expenses primarily consist of corporate employee costs for sales and marketing, general and administrative and other support personnel, including research and development expenses related to the design of customized optics and glass, travel expenses, legal and other professional fees, share-based compensation expense and other general expenses not related to cost of revenues. In fiscal year 2024, we expect our SG&A expenses will increase compared with our fiscal year 2023 SG&A expenses, mainly due to an increase in employee costs, sales and marketing cost and investing in information technology hardware.

Current wording

Our SG&A expenses primarily consist of corporate employee costs for sales and marketing, general and administrative and other support personnel, including research and development expenses related to the design of customized optics and glass, travel expenses, legal and other professional fees, share-based compensation expense and other general expenses not related to cost of revenues. In fiscal year 2024, we expect our SG&A expenses will increase compared with our fiscal year 2023 SG&A expenses, mainly due to increases in employee costs and sales and marketing costs.

Previous wording

The Thai baht assets represent cash and cash equivalents, trade accounts receivable, deposits and other current assets. The Thai baht liabilities represent trade accounts payable, accrued expenses, income tax payable and other payables. We manage our 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 December 29, 2023, there was $126.0 million of foreign currency forward contracts outstanding on the Thai baht payables. As of June 30, 2023, there was $143.0 million of foreign currency forward contracts outstanding on the Thai baht payables.

Current wording

The Thai baht assets represent cash and cash equivalents, trade accounts receivable, deposits and other current assets. The Thai baht liabilities represent trade accounts payable, accrued expenses, income tax payable and other payables. We manage our 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 March 29, 2024, there was $135.0 million of foreign currency forward contracts outstanding on the Thai baht payables. As of June 30, 2023, there was $143.0 million of foreign currency forward contracts outstanding on the Thai baht payables.

Previous wording

The RMB assets represent cash and cash equivalents, trade accounts receivable, and other receivables. The RMB liabilities represent trade accounts payable, accrued expenses, income tax payable, accrued payroll, bonus and related expenses and other payables. As of December 29, 2023 and June 30, 2023, we did not have any derivative contracts denominated in RMB.

Current wording

The RMB assets represent cash and cash equivalents, trade accounts receivable, other receivables, and other current assets. The RMB liabilities represent trade accounts payable, accrued expenses, income tax payable, accrued payroll, bonus and related expenses, and other payables. As of March 29, 2024 and June 30, 2023, we did not have any derivative contracts denominated in RMB.

Previous wording

The GBP assets represent cash, trade accounts receivable, and other current assets. The GBP liabilities represent trade accounts payable and other payables. As of December 29, 2023 and June 30, 2023, we did not have any derivative contracts denominated in GBP.

Current wording

The GBP assets represent cash, trade accounts receivable, and other current assets. The GBP liabilities represent trade accounts payable, accrued expenses and other payables. As of March 29, 2024 and June 30, 2023, we did not have any derivative contracts denominated in GBP.

Previous wording

For the three months ended December 29, 2023 and December 30, 2022, we recorded a gain of $2.6 million and $4.2 million, respectively, related to derivatives that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income.

Current wording

For the three months ended March 29, 2024 and March 31, 2023, we recorded a loss of $3.7 million and $2.1 million, respectively, related to derivatives that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income.

Previous wording

For the six months ended December 29, 2023 and December 30, 2022, we recorded a gain of $2.9 million and $4.0 million, respectively, related to derivatives that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income.

Current wording

For the nine months ended March 29, 2024 and March 31, 2023, we recorded a loss of $0.8 million and gain of $1.8 million, respectively, related to derivatives that are not designated as hedging instruments in the unaudited condensed consolidated statements of operations and comprehensive income.

Previous wording

The following table sets forth our revenues by end market for the periods indicated.

Current wording

The following table sets forth our revenues by end market and product category for the periods indicated.

Previous wording

Comparison of Three and Six Months Ended December 29, 2023 with Three and Six Months Ended December 30, 2022

Current wording

Comparison of Three and Nine Months Ended March 29, 2024 with Three and Nine Months Ended March 31, 2023

Previous wording

Our revenues increased by $74.1 million, or 5.6%, to $1,398.2 million for the six months ended December 29, 2023 (26-week), compared with $1,324.1 million for the six months ended December 30, 2022 (27-week). This increase was primarily due to an increase in our key customers’ demand for optical communications products. Revenues from optical communications products, which represented $1,101.2 million, or 78.8%, of our revenues for the six months ended December 29, 2023, increased by $97.6 million, or 9.7%, compared to the same period in the prior fiscal year, mainly due to an increase in revenues from data communication products, primarily for artificial intelligence applications, offset by a decline in revenues from telecommunication products as inventory absorption within the telecommunication market continued during the six months ended December 29, 2023. Revenues from non-optical communications products, which represented $297.0 million, or 21.2%, of our revenues for the six months ended December 29, 2023, decreased by $23.5 million, or 7.3%, compared to the same period in the prior fiscal year, primarily due to inventory absorption related to certain programs in the automotive market.

Current wording

Our revenues increased by $66.2 million, or 10.0%, to $731.5 million for the three months ended March 29, 2024, compared with $665.3 million for the three months ended March 31, 2023. This increase was primarily due to an increase in our key customers’ demand for optical communications products. Revenues from optical communications products, which represented $591.4 million, or 80.9%, of our revenues for the three months ended March 29, 2024, increased by $88.8 million, or 17.7%, compared to the same period in the prior fiscal year, mainly due to an increase in revenues from data communication products, primarily for artificial intelligence applications, offset by a decline in revenues from telecommunication products as inventory absorption within the telecommunication market continued during the three months ended March 29, 2024. Revenues from non-optical communications products, which represented $140.1 million, or 19.1%, of our revenues for the three months ended March 29, 2024, decreased by $22.6 million, or 13.9%, compared to the same period in the prior fiscal year, primarily due to inventory absorption related to certain programs in the automotive market.

Previous wording

Our revenues increased by $44.0 million, or 6.6%, to $712.7 million for the three months ended December 29, 2023, compared with $668.7 million for the three months ended December 30, 2022. This increase was primarily due to an increase in our key customers’ demand for optical communications products. Revenues from optical communications products, which represented $567.9 million, or 79.7%, of our revenues for the three months ended December 29, 2023, increased by $61.9 million, or 12.2%, compared to the same period in the prior fiscal year, mainly due to an increase in revenues from data communication products, primarily for artificial intelligence applications, offset by a decline in revenues from telecommunication products as inventory absorption within the telecommunication market continued during the three months ended December 29, 2023. Revenues from non-optical communications products, which represented $144.8 million, or 20.3%, of our revenues for the three months ended December 29, 2023, decreased by $17.8 million, or 11.0%, compared to the same period in the prior fiscal year, primarily due to a decline in revenues from automotive products.

Current wording

Our revenues increased by $140.3 million, or 7.1%, to $2,129.7 million for the nine months ended March 29, 2024 (39-week period), compared with $1,989.4 million for the nine months ended March 31, 2023 (40-week period). This increase was primarily due to an increase in our key customers’ demand for optical communications products. Revenues from optical communications products, which represented $1,692.6 million, or 79.5%, of our revenues for the nine months ended March 29, 2024, increased by $186.4 million, or 12.4%, compared to the same period in the prior fiscal year, mainly due to an increase in revenues from data communication products, primarily for artificial intelligence applications, offset by a decline in revenues from telecommunication products as inventory absorption within the telecommunication market continued during the nine months ended March 29, 2024. Revenues from non-optical communications products, which represented $437.1 million, or

Previous wording

Our cost of revenues increased by $41.0 million, or 7.0%, to $624.4 million, or 87.6% of revenues, for the three months ended December 29, 2023, compared with $583.4 million, or 87.3% of revenues, for the three months ended December 30, 2022. The increase was in line with the increase in sales volume.

Current wording

Our cost of revenues increased by $61.3 million, or 10.6%, to $640.6 million, or 87.6% of revenues, for the three months ended March 29, 2024, compared with $579.3 million, or 87.1% of revenues, for the three months ended March 31, 2023. The increase was in line with the increase in sales volume.

Previous wording

Our cost of revenues increased by $69.3 million, or 6.0%, to $1,225.4 million, or 87.6% of revenues, for the six months ended December 29, 2023, compared with $1,156.1 million, or 87.3% of revenues, for the six months ended December 30, 2022. This increase was in line with the increase in sales volume.

Current wording

Our cost of revenues increased by $130.6 million, or 7.5%, to $1,866.0 million, or 87.6% of revenues, for the nine months ended March 29, 2024, compared with $1,735.4 million, or 87.2% of revenues, for the nine months ended March 31, 2023. This increase was in line with the increase in sales volume.

Previous wording

Our gross profit increased by $3.1 million, or 3.6%, to $88.3 million, or 12.4% of revenues, for the three months ended December 29, 2023, compared with $85.2 million, or 12.7% of revenues, for the three months ended December 30, 2022. The increase was primarily due to an increase in sales volume.

Current wording

Our gross profit increased by $4.9 million, or 5.7%, to $90.9 million, or 12.4% of revenues, for the three months ended March 29, 2024, compared with $86.0 million, or 12.9% of revenues, for the three months ended March 31, 2023. The increase was primarily due to an increase in sales volume.

Previous wording

Our gross profit increased by $4.7 million, or 2.8%, to $172.7 million, or 12.4% of revenues, for the six months ended December 29, 2023, compared with $168.0 million, or 12.7% of revenues, for the six months ended December 30, 2022. The increase was primarily due to an increase in sales volume.

Current wording

Our gross profit increased by $9.7 million, or 3.8%, to $263.7 million, or 12.4% of revenues, for the nine months ended March 29, 2024, compared with $254.0 million, or 12.8% of revenues, for the nine months ended March 31, 2023. The increase was primarily due to an increase in sales volume.

Previous wording

Our SG&A expenses increased by $0.4 million, or 2.1%, to $19.3 million, or 2.7% of revenues, for the three months ended December 29, 2023, compared with $18.9 million, or 2.8% of revenues, for the three months ended December 30, 2022. The increase was primarily due to (1) a net increase in allowance for expected credit losses of $0.6 million, (2) an increase in sales and marketing expenses of $0.4 million and (3) an increase in share-based compensation expenses of $0.2 million, offset by lower compensation related expense of $0.8 million.

Current wording

Our SG&A expenses increased by $1.3 million, or 7.1%, to $19.6 million, or 2.7% of revenues, for the three months ended March 29, 2024, compared with $18.3 million, or 2.7% of revenues, for the three months ended March 31, 2023. The increase was primarily due to (1) a net increase in allowance for expected credit losses of $0.6 million, (2) an increase in compensation related expenses of $0.5 million and (3) an increase in sales and marketing expenses of $0.1 million.

Previous wording

Our SG&A expenses increased by $0.2 million, or 0.5%, to $39.7 million, or 2.9% of revenues, for the six months ended December 29, 2023, compared with $39.5 million, or 3.0% of revenues, for the six months ended December 30, 2022. The increase was primarily due to a net increase in allowance for expected credit losses of $1.5 million, offset by (1) lower compensation related expenses of $0.8 million, (2) a decrease in customer relationships amortization of $0.2 million and (3) a decrease in legal and consulting fees of $0.2 million.

Current wording

Our SG&A expenses increased by $1.6 million, or 2.8%, to $59.4 million, or 2.8% of revenues, for the nine months ended March 29, 2024, compared with $57.8 million, or 2.9% of revenues, for the nine months ended March 31, 2023. The increase was primarily due to (1) a net increase in allowance for expected credit losses of $2.0 million and (2) an increase in sales and marketing expenses of $0.7 million, offset by (1) lower compensation related expenses of $0.6 million, (2) a decrease in legal and consulting fees of $0.3 million and (3) a decrease in customer relationships amortization of $0.2 million.

Previous wording

Our interest income increased by $5.4 million, or 234.8%, to $7.7 million, or 1.1% of revenues, for the three months ended December 29, 2023, compared with $2.3 million, or 0.4% of revenues, for the three months ended December 30, 2022. The increase was primarily due to a higher weighted average interest rate and higher average cash balance and short-term investment from $462.0 million to $717.0 million during the three months ended December 29, 2023 compared to the same period in the prior fiscal year.

Current wording

Our interest income increased by $5.2 million, or 157.6%, to $8.5 million, or 1.2% of revenues, for the three months ended March 29, 2024, compared with $3.3 million, or 0.5% of revenues, for the three months ended March 31, 2023. The increase was primarily due to a higher weighted average interest rate and higher average cash balance and short-term investment from $493.9 million to $760.0 million during the three months ended March 29, 2024 compared to the same period in the prior fiscal year.

Previous wording

Our interest income increased by $9.7 million, or 248.7%, to $13.6 million, or 1.0% of revenues, for the six months ended December 29, 2023, compared with $3.9 million, or 0.3% of revenues, for the six months ended December 30, 2022. The increase was primarily due to a higher weighted average interest rate and higher average cash balance and short-term investment from $440.0 million to $645.0 million during the six months ended December 29, 2023 compared to same period in the prior fiscal year.

Current wording

Our interest income increased by $14.9 million, or 206.9%, to $22.1 million, or 1.0% of revenues, for the nine months ended March 29, 2024, compared with $7.2 million, or 0.4% of revenues, for the nine months ended March 31, 2023. The increase was primarily due to a higher weighted average interest rate and higher average cash balance and short-term investment from $458.0 million to $683.0 million during the nine months ended March 29, 2024 compared to same period in the prior fiscal year.

Previous wording

Our interest expense decreased by $0.4 million for the three months ended December 29, 2023, compared with the three months ended December 30, 2022. The decrease was primarily due to a decrease in the amount of an outstanding long-term loan.

Current wording

Our interest expense decreased by $0.4 million for the three months ended March 29, 2024, compared with the three months ended March 31, 2023. The decrease was primarily due to a decrease in the long-term loan balance.

Previous wording

Our interest expense decreased by $0.7 million for the six months ended December 29, 2023, compared with $0.8 million for the six months ended December 30, 2022. The decrease was primarily due to a decrease in the amount of an outstanding long-term loan.

Current wording

Our interest expense decreased by $1.1 million for the nine months ended March 29, 2024, compared with the nine months ended March 31, 2023. The decrease was primarily due to a decrease in the long-term loan balance.

Previous wording

We recorded foreign exchange loss, net of $3.8 million, or 0.6% of revenues, for the three months ended December 29, 2023, compared with foreign exchange loss, net of $3.9 million, or 0.6% of revenues for the three months ended December 30, 2022. The decrease in foreign exchange loss was mainly due to (1) lower unrealized loss from revaluation of outstanding Thai baht assets and liabilities of $1.7 million, and (2) lower unrealized loss from revaluation of currencies other than Thai baht of $0.3 million, offset by (1) lower unrealized gain from mark-to-market forward contracts of $1.7 million, (2) lower foreign exchange gain, totaling $0.1 million from our subsidiaries in the PRC and the U.K., and (3) higher realized loss from payment/receipt of $0.1 million.

Current wording

We recorded foreign exchange gain, net of $3.3 million, or 0.5% of revenues, for the three months ended March 29, 2024, compared with foreign exchange loss, net of $1.3 million, or 0.2% of revenues, for the three months ended March 31, 2023. The foreign exchange gain was mainly due to (1) higher unrealized gain from revaluation of outstanding Thai baht assets and liabilities of $5.0 million, (2) higher unrealized gain from revaluation of currencies other than Thai baht of $0.8 million, and (3) lower realized loss from payment/receipt of $0.5 million, offset by (1) higher unrealized loss from mark-to-market forward contracts of $1.6 million, and (2) foreign exchange loss, totaling $0.1 million from our subsidiaries in the PRC and the U.K.

Previous wording

We recorded foreign exchange loss, net of $3.4 million, or 0.3% of revenues, for the six months ended December 29, 2023, compared with foreign exchange loss, net of $1.8 million, or 0.1% for the six months ended December 30, 2022. The increase in foreign exchange loss was mainly due to (1) lower unrealized gain from mark-to-market forward contracts of $1.1 million, (2) realized loss from payment/receipt of $0.7 million, and (3) higher unrealized loss from revaluation of currencies other than Thai baht of $0.2 million, offset by (1) lower unrealized loss from revaluation of outstanding Thai baht assets and liabilities of $0.2 million, and (2) foreign exchange gain, totaling $0.2 million from our subsidiaries in the PRC and the U.K.

Current wording

We recorded foreign exchange loss, net of $25.0 thousand, or 0.0% of revenues, for the nine months ended March 29, 2024, compared with foreign exchange loss, net of $3.1 million, or 0.2% of revenues, for the nine months ended March 31, 2023. The decrease in foreign exchange loss was mainly due to (1) unrealized gain from revaluation of outstanding Thai baht assets and liabilities of $5.3 million, and (2) unrealized gain from revaluation of currencies other than Thai baht of $0.6 million, offset by (1) unrealized loss from mark-to-market forward contracts of $2.6 million, and (2) higher realized loss from payment/receipt of $0.2 million.

Previous wording

We recorded income before income taxes of $72.9 million for the three months ended December 29, 2023, compared with $64.3 million for the three months ended December 30, 2022.

Current wording

We recorded income before income taxes of $83.3 million for the three months ended March 29, 2024, compared with $63.5 million for the three months ended March 31, 2023.

Previous wording

We recorded income before income taxes of $143.1 million for the six months ended December 29, 2023, compared with $129.6 million for the six months ended December 30, 2022.

Current wording

We recorded income before income taxes of $226.4 million for the nine months ended March 29, 2024, compared with $193.0 million for the nine months ended March 31, 2023.

Previous wording

Our provision for income tax reflects effective tax rates of 5.2% and 1.7% for the three months ended December 29, 2023 and December 30, 2022, respectively. The increase was due to an increase in income subject to tax during the three months ended December 29, 2023 as compared to the three months ended December 30, 2022. In addition, our subsidiary in the U.K. generated taxable income and was able to utilize loss carryforwards. Management determined that it was more likely than not that future taxable income would be sufficient to allow utilization of the deferred tax assets. Thus, a full valuation allowance of $1.6 million for the deferred tax assets was released during the three months ended December 30, 2022.

Current wording

Our provision for income tax reflects effective tax rates of 2.9% and 6.5% for the three months ended March 29, 2024 and March 31, 2023, respectively. The decrease was due to a decrease in income subject to tax during the three months ended March 29, 2024 as compared to the three months ended March 31, 2023.

Previous wording

Our provision for income tax reflects effective tax rates of 6.2% and 1.4% for the six months ended December 29, 2023 and December 30, 2022, respectively. The increase was primarily due to an increase in income subject to tax during the six months ended December 29, 2023 as compared to the six months ended December 30, 2022. In addition, a full valuation allowance of $2.1 million for deferred tax assets was set up during the six months ended December 29, 2023 due to management's belief that our subsidiary in Israel would continue to have losses in the foreseeable future such that the deferred tax assets of such subsidiary would not be utilized while a full valuation allowance of $1.6 million from the subsidiary in U.K. was released during the six months ended December 30, 2022.

Current wording

Our provision for income tax reflects effective tax rates of 5.0% and 3.1% for the nine months ended March 29, 2024 and March 31, 2023, respectively. The increase was primarily due to a full valuation allowance of $2.1 million for deferred tax assets being set up during the nine months ended March 29, 2024 due to management's belief that our subsidiary in Israel would continue to have losses in the foreseeable future such that the deferred tax assets of such subsidiary would not be utilized. In addition, a full valuation allowance of $1.6 million from our subsidiary in the U.K. was released during the nine months ended March 31, 2023.

Previous wording

We recorded net income of $69.1 million, or 9.7% of revenues, for the three months ended December 29, 2023, compared with $63.2 million, or 9.4% of revenues, for the three months ended December 30, 2022.

Current wording

We recorded net income of $80.9 million, or 11.1% of revenues, for the three months ended March 29, 2024, compared with $59.4 million, or 8.9% of revenues, for the three months ended March 31, 2023.

Previous wording

We recorded net income of $134.2 million, or 9.6% of revenues, for the six months ended December 29, 2023, compared with $127.8 million, or 9.7% of revenues, for the six months ended December 30, 2022.

Current wording

We recorded net income of $215.1 million, or 10.1% of revenues, for the nine months ended March 29, 2024, compared with $187.1 million, or 9.4% of revenues, for the nine months ended March 31, 2023.

Previous wording

We recorded other comprehensive income of $11.7 million, or 1.6% of revenues, for the three months ended December 29, 2023, compared with other comprehensive income of $12.3 million, or 1.9% of revenues, for the three months ended December 30, 2022. The change was mainly due to (1) lower unrealized gain from mark-to-market of forward contracts and interest rate swap agreements of $2.2 million, and (2) higher unrealized loss from foreign currency translation adjustment of $0.1 million, offset by (1) higher unrealized gain from mark-to-market of available-for-sale debt securities of $1.8 million, and (2) lower gain from retirement benefits plan of $0.1 million.

Current wording

We recorded other comprehensive loss of $8.9 million, or 1.2% of revenues, for the three months ended March 29, 2024, compared with other comprehensive loss of $3.6 million, or 0.5% of revenues, for the three months ended March 31, 2023. The change was mainly due to (1) unrealized loss from mark-to-market of available-for-sale debt securities of $3.8 million, and (2) higher unrealized loss from mark-to-market of forward contracts and interest rate swap agreements of $1.8 million, offset by unrealized gain from foreign currency translation adjustment of $0.3 million.

Previous wording

We recorded other comprehensive income of $12.3 million, or 0.9% of revenues, for the six months ended December 29, 2023, compared with other comprehensive income of $10.1 million, or 0.7% of revenues, for the six months ended December 30, 2022. The change was mainly due to unrealized gain from mark-to-market of available-for-sale debt securities of $4.2 million for the six months ended December 29, 2023, offset by (1) lower unrealized gain from mark-to-market of forward contracts and interest rate swap agreements of $1.6 million for the six months ended December 29, 2023, (2) unrealized loss from foreign currency translation adjustment of $0.3 million, and (3) lower gain from retirement benefits plan of $0.1 million

Current wording

We recorded other comprehensive income of $3.5 million, or 0.2% of revenues, for the nine months ended March 29, 2024, compared with other comprehensive income of $6.5 million, or 0.3% of revenues, for the nine months ended March 31, 2023. The change was mainly due to lower unrealized gain from mark-to-market of forward contracts and interest rate swap agreements of $3.4 million, offset by higher unrealized gain from mark-to-market of available-for-sale debt securities of $0.4 million.

Previous wording

We primarily finance our operations through cash flow from operations. As of December 29, 2023 and December 30, 2022, we had cash, cash equivalents, and short-term investments of $740.6 million and $527.6 million, respectively, and outstanding debt of $6.1 million and $18.3 million, respectively.

Current wording

We primarily finance our operations through cash flow from operations. As of March 29, 2024 and March 31, 2023, we had cash, cash equivalents, and short-term investments of $794.0 million and $538.7 million, respectively, and outstanding debt of $3.0 million and $15.2 million, respectively.

Previous wording

Our cash and cash equivalents, which primarily consist of cash on hand, demand deposits, and liquid investments with original maturities of three months or less, are placed with banks and other financial institutions. The weighted-average interest rate on our cash and cash equivalents was 4.3% and 4.2% for the three and six months ended December 29, 2023, respectively, and 2.0% and 1.8% for the three and six months ended December 30, 2022, respectively.

Current wording

Our cash and cash equivalents, which primarily consist of cash on hand, demand deposits, and liquid investments with original maturities of three months or less, are placed with banks and other financial institutions. The weighted-average interest rate on our cash and cash equivalents was 4.5% and 4.3% for the three and nine months ended March 29, 2024, respectively, and 2.7% and 2.1% for the three and nine months ended March 31, 2023, respectively.

Previous wording

During the six months ended December 29, 2023, we repaid $6.1 million of the term loan under our 2019 Credit Facility Agreement. As a result, as of December 29, 2023, we had a long-term borrowing of $6.1 million under our 2019 Credit Facility Agreement (see Note 10 of Notes to Unaudited Condensed Consolidated Financial Statements for further details). We anticipate that our internally generated working capital, along with our cash and cash equivalents will be adequate to repay these obligations. To better manage our cash on hand, we held short-term investments of $406.5 million as of December 29, 2023.

Current wording

During the nine months ended March 29, 2024, we repaid $9.1 million of the term loan under our 2019 Credit Facility Agreement. As a result, as of March 29, 2024, we had a long-term borrowing of $3.0 million under our 2019 Credit Facility Agreement (see Note 10 of Notes to Unaudited Condensed Consolidated Financial Statements for further details). We anticipate that our internally generated working capital, along with our cash and cash equivalents will be adequate to repay these obligations. To better manage our cash on hand, we held short-term investments of $408.9 million as of March 29, 2024.

Previous wording

Cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities. The increase in cash provided by operating activities during the six months ended December 29, 2023 as compared to the six months ended December 30, 2022 was primarily driven by efficient cash-favorable working capital changes mainly from inventory management.

Current wording

Cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities. The increase in cash provided by operating activities during the nine months ended March 29, 2024 as compared to the nine months ended March 31, 2023 was primarily driven by efficient cash-favorable working capital changes mainly from inventory management.

Previous wording

Investing cash flows consist primarily of investment purchases, sales, maturities, and disposals; and capital expenditures. The increase in cash used in investing activities for the six months ended December 29, 2023 as compared to cash provided in investing activities for the six months ended December 30, 2022 was primarily due to an increase in investment purchases.

Current wording

Investing cash flows consist primarily of investment purchases, sales, maturities, and disposals; and capital expenditures. The increase in cash used in investing activities for the nine months ended March 29, 2024 as compared to cash used in investing activities for the nine months ended March 31, 2023 was primarily due to an increase in investment purchases.

Previous wording

Financing cash flows consist primarily of repayment of long-term debt, share repurchases, and withholding tax related to net share settlement of restricted share units. The decrease in cash used in financing activities for the six months ended December 29, 2023 as compared to the six months ended December 30, 2022 was primarily due to a decrease in withholding tax related to net share settlement of restricted share units, and lower repayment of long-term borrowings due to one fewer installment from one fewer week in the first quarter of fiscal year 2024 compared to fiscal year 2023, offset by a higher volume of share repurchases.

Current wording

Financing cash flows consist primarily of repayment of long-term debt, share repurchases, and withholding tax related to net share settlement of restricted share units. The increase in cash used in financing activities for the nine months ended March 29, 2024 as compared to the nine months ended March 31, 2023 was primarily due to a higher volume of share repurchases, offset by a decrease in withholding tax related to net share settlement of restricted share units, and lower repayment of long-term borrowings due to one fewer installment from one fewer week in the first quarter of fiscal year 2024 compared to fiscal year 2023.