Company: TTMI
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024839
Chunk: 135

Company: TTM TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 135
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 short‑term contracts are expected to be recognized within one year.Transaction PriceThe Company provides customers a limited right of return for defective PCBs including components, assemblies, and subsystems. Estimates of returns are treated as variable consideration for purposes of determining the transaction price. The Company accrues an estimate for sales returns and allowances progressively over time based on the extent of progress towards completion of the performance obligation using the Company’s judgment based on historical results and anticipated returns. To the extent actual experience varies from its historical experience, revisions to the sales returns and allowances accrual may be required. Sales returns and allowances are recorded as a reduction of revenue and included as a component of other current liabilities on the consolidated balance sheets. Shipping and handling fees and related freight costs and supplies associated with shipping products to customers are included as a component of cost of goods sold. Warranty-related services are not considered a separate performance obligation. Incremental warranty costs that are not related to sales returns are recorded in other current liabilities on the consolidated balance sheets and cost of goods sold on the consolidated statements of operations. The following summarizes the activity in the Company’s sales returns and allowances: 

          For the Year Ended

          December 30, 2024

          January 1, 2024

          January 2, 2023

          (In thousands)

          Balance at beginning of year
           
          $
          12,301

          $
          12,319

          $
          12,853

          Addition charged as a reduction of sales

          2,787

          4,692

          2,410

          Deductions

          (4,281
          )

          (4,719
          )

          (2,914
          )

          Effect of foreign currency exchange rates

          (30
          )

          9

          (30
          )

          Balance at end of year
           
          $
          10,777

          $
          12,301

          $
          12,319

70

TTM TECHNOLOGIES, INC. Notes to Consolidated Financial Statements — (Continued)

Contract BalancesAccounts receivable represents the Company’s unconditional right to receive consideration from its customer. Payments are generally due within 90 days or less of invoicing and do not include a significant financing component. To date, there have been no material credit losses on accounts receivable.A contract asset is recognized when the Company has recognized revenue, but not issued an invoice for payment. Amounts will be