TTM TECHNOLOGIES INC Income Taxes Disclosure

As of December 29, 2025, the majority of the Company's domestic state income taxes were attributed to the following states: $1,332 in Maryland and $497 in Massachusetts.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the net deferred income tax assets (liabilities) were as follows:

As of December 29, 2025, the Company had the following NOLs carryforwards: $68,667 in the U.S. for federal, $19,054 in various U.S. states, $8,805 in China, $22,796 in Hong Kong, and $33,156 in Malaysia. The U.S. federal NOLs expire in 2029 through 2032, the various U.S. states’ NOLs expire in 2026 through 2045, the China NOLs expire in 2031 through 2035, and the Hong Kong and Malaysia NOLs carryforward indefinitely. Further, the Company’s tax credits were approximately $41,153, of which $4,883 carryforward indefinitely.

In connection with the Company’s acquisition of Viasystems Group, Inc. during 2015, there was more than a 50% change in ownership under Section 382 of the Internal Revenue Code of 1986, as amended, and regulations issued thereunder. As a consequence, the utilization of the remaining Viasystems Group, Inc. U.S. NOLs is limited to approximately $9,826 per year and total $68,667.

As of December 29, 2025, the Company expects its earnings attributable to foreign subsidiaries will not be indefinitely reinvested, except for certain subsidiaries, and the Company established a deferred tax liability of $4,682 and $1,514 for the foreign and U.S. federal/state impact, respectively. For those other companies with earnings currently being reinvested outside of the U.S., the undistributed earnings amounted to $60,769, and the unrecognized deferred tax liability related to these undistributed earnings was $2,687.

A valuation allowance is provided when it is more likely than not that all or some portion of the deferred income tax assets will not be realized. The Company established a valuation allowance on its U.S. net deferred tax assets in the current year mainly due to cumulative book losses in the U.S. In addition, certain subsidiaries in various tax jurisdictions continue to have NOL carryforwards, which the Company has determined are not more likely than not to be utilized. As a result, a full valuation allowance has been recorded for these subsidiaries as of December 29, 2025. For the remaining net deferred income tax assets, management has determined that it is more likely than not that the results of future operations will generate sufficient income to realize the net deferred tax assets.

Certain entities within China qualified for the HNTE status enabling those entities to utilize certain benefits, which were effective for the years ended December 29, 2025, December 30, 2024, and January 1, 2024. The HNTE status as well as enhanced R&D deductions decreased Chinese taxes. The HNTE and R&D benefit and effect on earnings per share were as follows:

The HNTE status expired for certain subsidiaries in 2025, but the Company expects to continue to file for renewal of such HNTE status for the foreseeable future.

The Company operates under a tax incentive approved by MIDA, which provides for a 0% tax rate for three consecutive five-year periods (totaling 15 years), subject to the satisfaction of specific operational requirements. For the year ended December 29, 2025, the Company concluded that it did not meet certain conditions required to maintain the incentive and recorded tax at the statutory tax rate of 24%. The Company is currently in the process of applying to MIDA for a revision of incentive criteria; however, there is no assurance that such revision will be approved.

During the year ended December 29, 2025, the Company increased uncertain tax positions by $1,765 due to U.S. R&D credit generation, prior year international tax matters, and U.S. foreign sourced income deductions, offset by the release of uncertain tax positions due to the statute of limitations expiration.

As of December 29, 2025 and December 30, 2024, the Company recorded unrecognized tax expense of $1,261 and $446, respectively, as well as interest and penalties of $63 and $475, respectively, to other current liabilities and other long-term liabilities. Additionally, the Company recorded unrecognized tax expenses of $11,143 and $10,193 against certain deferred tax assets as of December 29, 2025 and December 30, 2024, respectively.

As of December 29, 2025, the Company is open for (1) U.S. federal income tax examination for the tax periods from 2022 to 2025 and NOL and credit carryforwards are subject to adjustment for three years post utilization; (2) state and local income tax examination for tax years from 2020 to 2025 and NOL and credit carryforwards are subject to adjustment for four years post utilization; and (3) foreign income tax examinations generally for tax years from 2015 to 2025.