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Income Taxes | 12 Months Ended
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Dec. 29, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | (8) Income Taxes The components of income before income taxes from continuing operations were as follows:
|  | For the Year Ended |
|  | December 29, 2025 |  |  | December 30, 2024 |  |  | January 1, 2024 |
|  | (In thousands) |
United States |  | $ | 62,677 |  |  | $ | (36,745 | ) |  | $ | (105,101 | )
Foreign |  |  | 147,660 |  |  |  | 120,694 |  |  |  | 105,398 |
Income before income taxes |  | $ | 210,337 |  |  | $ | 83,949 |  |  | $ | 297 |
The components of income tax provision from continuing operations were as follows:
|  | For the Year Ended |
|  | December 29, 2025 |  |  | December 30, 2024 |  |  | January 1, 2024 |
|  | (In thousands) |
Current (provision) benefit: |  |  |  |  |  |  |  |  |
Federal |  | $ | (3,235 | ) |  | $ | (2,984 | ) |  | $ | 445 |
State |  |  | (2,900 | ) |  |  | (2,958 | ) |  |  | (1,592 | )
Foreign |  |  | (22,964 | ) |  |  | (22,934 | ) |  |  | (29,094 | )
Total current |  |  | (29,099 | ) |  |  | (28,876 | ) |  |  | (30,241 | )
Deferred (provision) benefit: |  |  |  |  |  |  |  |  |
Federal |  |  | (1,664 | ) |  |  | 340 |  |  |  | 1,321 |
State |  |  | (216 | ) |  |  | 85 |  |  |  | 271 |
Foreign |  |  | (1,910 | ) |  |  | 801 |  |  |  | 9,634 |
Total deferred |  |  | (3,790 | ) |  |  | 1,226 |  |  |  | 11,226 |
Total income tax (provision) benefit: |  |  |  |  |  |  |  |  |
Federal |  |  | (4,899 | ) |  |  | (2,644 | ) |  |  | 1,766 |
State |  |  | (3,116 | ) |  |  | (2,873 | ) |  |  | (1,321 | )
Foreign |  |  | (24,874 | ) |  |  | (22,133 | ) |  |  | (19,460 | )
Income tax provision |  | $ | (32,889 | ) |  | $ | (27,650 | ) |  | $ | (19,015 | )
The reconciliation of the provision for income taxes at the statutory federal income tax rate compared to the Company’s provision for income taxes was as follows:
|  | For the Year Ended December 29, 2025 |
|  | Amount |  |  | Rate |
|  | (In thousands, except rates) |
U.S. federal statutory income tax |  | $ | (44,171 | ) |  |  | 21.0 | %
Domestic federal tax effects: |  |  |  |  |  |
Tax credits |  |  |  |  |  |
Research credits |  |  | 4,696 |  |  |  | (2.2 | )
Foreign tax credits |  |  | 11,681 |  |  |  | (5.6 | )
Nontaxable and nondeductible items |  |  |  |  |  |
IRC section 162(m) limitation |  |  | (4,355 | ) |  |  | 2.1 |
Other |  |  | 421 |  |  |  | (0.2 | )
Cross-border tax laws |  |  |  |  |  |
Global intangible low-taxed income |  |  | (30,760 | ) |  |  | 14.6 |
Foreign derived intangible income |  |  | 16,916 |  |  |  | (8.0 | )
Excess tax benefits on share-based payments |  |  | 5,355 |  |  |  | (2.5 | )
Change in valuation allowance |  |  | 5,983 |  |  |  | (2.8 | )
Domestic state and local income taxes, net of federal effect |  |  | (3,116 | ) |  |  | 1.5 |
Foreign tax effects: |  |  |  |  |  |
China |  |  |  |  |  |
Super research and development expenditure |  |  | 3,482 |  |  |  | (1.7 | )
Tax settlement |  |  | (3,221 | ) |  |  | 1.5 |
Other |  |  | 681 |  |  |  | (0.3 | )
Hong Kong |  |  |  |  |  |
Statutory income tax rate differential |  |  | 4,123 |  |  |  | (2.0 | )
Other |  |  | (450 | ) |  |  | 0.2 |
Other foreign jurisdictions |  |  | 1,177 |  |  |  | (0.6 | )
Worldwide changes in unrecognized tax benefits |  |  | (1,331 | ) |  |  | 0.6 |
Total income tax provision |  | $ | (32,889 | ) |  |  | 15.6 | %
|  | For the Year Ended |
|  | December 30, 2024 |  |  | January 1, 2024 |
| (In thousands) |
Statutory federal income tax provision |  | $ | (17,629 | ) |  | $ | (62 | )
State income taxes, net of federal benefit and state tax credits |  |  | (672 | ) |  |  | (1,875 | )
IRC section 162(m) limitation |  |  | (1,467 | ) |  |  | (2,121 | )
Stock options |  |  | 453 |  |  |  | (651 | )
Global intangible low-taxed income |  |  | (7,435 | ) |  |  | (12,639 | )
Foreign tax credits |  |  | 10,131 |  |  |  | 14,916 |
Permanently reinvested earnings assertion |  |  | (2,634 | ) |  |  | (3,934 | )
Foreign tax differential on foreign earnings and other permanent items |  |  | 6,928 |  |  |  | 3,788 |
Change in valuation allowance |  |  | (13,650 | ) |  |  | (13,460 | )
Uncertain tax positions |  |  | — |  |  |  | 957 |
Federal research and development credits |  |  | 6,052 |  |  |  | 4,665 |
Goodwill impairment |  |  | (6,846 | ) |  |  | (9,261 | )
Other |  |  | (881 | ) |  |  | 662 |
Income tax provision |  | $ | (27,650 | ) |  | $ | (19,015 | )
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 |  |  | December 30, 2024 |
|  | (In thousands) |
Deferred income tax assets: |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 28,843 |  |  | $ | 29,974 |
Reserves and accruals |  |  | 59,071 |  |  |  | 57,453 |
Interest expense limitation |  |  | — |  |  |  | 41 |
Tax credit carryforwards |  |  | 30,334 |  |  |  | 33,559 |
Stock-based compensation |  |  | 8,038 |  |  |  | 6,591 |
Property, plant, and equipment |  |  | 3,515 |  |  |  | 3,748 |
Intangible and capitalized research expenditure amortization |  |  | 1,909 |  |  |  | 7,601 |
Operating lease liabilities |  |  | 22,913 |  |  |  | — |
Other deferred income tax assets |  |  | 1,822 |  |  |  | 880 |
|  |  | 156,445 |  |  |  | 139,847 |
Less: Valuation allowance |  |  | (85,963 | ) |  |  | (95,373 | )
|  |  | 70,482 |  |  |  | 44,474 |
Deferred income tax liabilities: |  |  |  |  |  |
Debt discount and issuance cost |  |  | (1,123 | ) |  |  | (1,582 | )
Repatriation of foreign earnings |  |  | (6,196 | ) |  |  | (4,961 | )
Property, plant, and equipment basis differences |  |  | (85,275 | ) |  |  | (74,632 | )
Goodwill and intangible amortization |  |  | (1,458 | ) |  |  | (1,358 | )
Unrealized gain on cash flow hedge |  |  | (527 | ) |  |  | (1,895 | )
Operating lease right-of-use assets |  |  | (19,342 | ) |  |  | — |
Other deferred income tax liabilities |  |  | (329 | ) |  |  | (465 | )
Net deferred income tax liabilities (included in other long-term liabilities and deposits and other non-current assets) |  | $ | (43,768 | ) |  | $ | (40,419 | )
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. A summary of the activity in the Company’s valuation allowance was as follows:
|  | For the Year Ended |
|  | December 29, 2025 |  |  | December 30, 2024 |  |  | January 1, 2024 |
|  | (In thousands) |
Balance at beginning of year |  | $ | 95,373 |  |  | $ | 81,779 |  |  | $ | 67,173 |
(Reduction) addition charged to expense |  |  | (2,937 | ) |  |  | 13,743 |  |  |  | 13,811 |
Addition related to acquisition |  |  | — |  |  |  | — |  |  |  | 1,187 |
Reduction related to tax law changes |  |  | (5,983 | ) |  |  | — |  |  |  | — |
Reduction related to other comprehensive income |  |  | (530 | ) |  |  | — |  |  |  | — |
Other addition (reduction) charged to expense |  |  | 40 |  |  |  | (149 | ) |  |  | (392 | )
Balance at end of year |  | $ | 85,963 |  |  | $ | 95,373 |  |  | $ | 81,779 |
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:
|  | For the Year Ended |
|  | December 29, 2025 |  |  | December 30, 2024 |  |  | January 1, 2024 |
|  | (In thousands, except per share data) |
HNTE and R&D benefit |  | $ | 5,792 |  |  | $ | 5,187 |  |  | $ | 6,056 |
Basic shares |  |  | 102,598 |  |  |  | 101,781 |  |  |  | 102,744 |
Diluted shares |  |  | 105,453 |  |  |  | 104,098 |  |  |  | 102,744 |
Increase on earnings per share: |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.06 |  |  | $ | 0.05 |  |  | $ | 0.06 |
Diluted |  |  | 0.05 |  |  |  | 0.05 |  |  |  | 0.06 |
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. A reconciliation of unrecognized tax benefits, exclusive of accrued interest and penalties, was as follows:
|  | For the Year Ended |
|  | December 29, 2025 |  |  | December 30, 2024 |  |  | January 1, 2024 |
|  | (In thousands) |
Balance at beginning of year |  | $ | 10,639 |  |  | $ | 10,363 |  |  | $ | 9,778 |
Additions based on tax positions related to the current year |  |  | 1,125 |  |  |  | 1,220 |  |  |  | 934 |
Additions for tax positions of prior years |  |  | 977 |  |  |  | — |  |  |  | 13 |
Reductions for tax positions of prior years |  |  | — |  |  |  | (3 | ) |  |  | — |
Lapse of statute of limitations |  |  | (337 | ) |  |  | (941 | ) |  |  | (362 | )
Balance at end of year |  | $ | 12,404 |  |  | $ | 10,639 |  |  | $ | 10,363 |
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. A summary of the Company's income taxes paid, net of refunds was as follows:
|  | For the Year Ended December 29, 2025 |
|  | (In thousands) |
U.S. federal |  | $ | 3,460 |
U.S. state and local |  |  | 4,258 |
Foreign: |  |  |
China |  |  | 4,209 |
Hong Kong |  |  | 23,668 |
Other |  |  | 1,842 |
Total foreign |  |  | 29,719 |
Total income taxes paid, net of refunds |  | $ | 37,437 |

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