☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
MASSACHUSETTS | 04-2272148 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
600 RIVERPARK DRIVE NORTH READING, MASSACHUSETTS | 01864 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of | Trading Symbol(s) | Name of | ||
Common Stock, par value $0.125 per share | TER | Nasdaq Stock Market LLC |
Page No. | ||||||||||||
1 | ||||||||||||
Item 1A. | ||||||||||||
Item 1B. | ||||||||||||
Item 2. | ||||||||||||
Item 3. | ||||||||||||
Item 4. | ||||||||||||
Item 5. | ||||||||||||
Item 6. | ||||||||||||
Item 7. | ||||||||||||
Item 7A. | ||||||||||||
Item 8. | ||||||||||||
Item 9. | ||||||||||||
Item 9A. | ||||||||||||
Item 9B. | ||||||||||||
103 | ||||||||||||
Item 9C. | 103 | |||||||||||
Item 10. | ||||||||||||
Item 11. | ||||||||||||
Item 12. | ||||||||||||
Item 13. | ||||||||||||
Item 14. | ||||||||||||
Item 15. | ||||||||||||
Item 16. | ||||||||||||
Item 1: | Business |
2019 | 2018 | |||||||
(in millions) | ||||||||
Semiconductor Test | $ | 543.2 | $ | 367.5 | ||||
System Test | 206.0 | 149.5 | ||||||
Wireless Test | 42.9 | 32.0 | ||||||
Industrial Automation | 17.9 | 19.7 | ||||||
$ | 810.0 | $ | 568.7 | |||||
2021 | 2020 | |||||||
(in millions) | ||||||||
Semiconductor Test | $ | 824.1 | $ | 567.4 | ||||
System Test | 375.4 | 290.6 | ||||||
Wireless Test | 56.8 | 41.6 | ||||||
Industrial Automation | 49.7 | 30.0 | ||||||
$ | 1,306.0 | $ | 929.6 | |||||
Executive Officer | Age | Position | Business Experience for The Past 5 Years | ||||||||||
Mark E. Jagiela | Chief Executive Officer and President | Chief Executive Officer since February 2014; President of Teradyne since January 2013; President of Semiconductor Test from 2003 to February 2016; Vice President of Teradyne from 2001 to 2013. | |||||||||||
Sanjay Mehta | Vice President, Chief Financial Officer and Treasurer | Vice President, Chief Financial Officer and Treasurer of Teradyne since April 2019; Senior Vice President and General Manager of Compute and XR Products at Qualcomm Technologies, Inc. (“Qualcomm”) from June 2018 to March 2019; President of Qualcomm’s semiconductor segment (“QCT”) China from March 2016 to June 2018; Senior Vice President Business Operations of QCT at Qualcomm from November 2015 to March 2016; Chief Financial Officer and Senior Vice President, Sales Operations, of QCT at Qualcomm from October 2010 to November 2015. | |||||||||||
Charles J. Gray | Vice President, General Counsel and Secretary | Vice President, General Counsel and Secretary of Teradyne since April 2009. | |||||||||||
Bradford B. Robbins | President of Wireless Test | President of Wireless Test since August 2014; Chief Operating Officer of LitePoint Corporation from 2012 to 2014; Vice President of Teradyne since 2001. | |||||||||||
Gregory S. Smith | President of | President of Industrial Automation since October 2020; President of Semiconductor Test | |||||||||||
Richard J Burns | 59 | President of Semiconductor Test | President of Semiconductor Test since October 2020; Vice President, Semiconductor Test Engineering from February 2016 to September 2020. | ||||||||||
Walter G. Vahey | Executive Vice President, Business Development | Executive Vice President, Business Development since December 2017; President of System Test from July 2012 to December 2017; Vice President of Teradyne since 2008; General Manager of Storage Test from 2008 to December 2017; General Manager of Production Board Test from April 2013 to December 2017. |
Item 1A: | Risk Factors |
Item 1B: | Unresolved Staff Comments |
Item 2: | Properties |
Item 3: | Legal Proceedings |
Item 4: | Mine Safety Disclosure |
Item 5: | Market for ’ s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may Yet Be Purchased Under the Plans or Programs | ||||||||||||
September 30, 2019 – October 27, 2019 | 757 | $ | 59.49 | 756 | $ | 262,786 | ||||||||||
October 28, 2019 – November 24, 2019 | 690 | $ | 63.81 | 689 | $ | 218,846 | ||||||||||
November 25, 2019 – December 31, 2019 | 658 | $ | 64.38 | 657 | $ | 176,522 | ||||||||||
2,105 | (1) | $ | 62.43 | (1) | 2,102 | |||||||||||
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may Yet Be Purchased Under the Plans or Programs (2) | ||||||||||||
October 4, 2021 – October 31, 2021 | 727 | $ | 111.94 | 726 | $ | 1,512,522 | ||||||||||
November 1, 2021 – November 28, 2021 | 435 | 144.51 | 434 | 1,449,823 | ||||||||||||
November 29, 2021 – December 31, 2021 | 324 | 153.96 | 324 | 1,400,000 | ||||||||||||
1,486 | (1) | $ | 130.63 | (1) | 1,484 | |||||||||||
(1) | Includes approximately three thousand shares at an average price of |
(2) | In January 2021, the Board of Directors authorized the repurchase of up to $2.0 billion of common stock. Unless terminated by resolution of our Board of Directors, the repurchase program will expire when we have repurchased all shares authorized for repurchase under the share repurchase program |
Item 6: | (Reserved) |
Years Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||||||
Consolidated Statement of Operations Data (1)(2)(3)(4)(5): | ||||||||||||||||||||
Revenues | $ | 2,294,965 | $ | 2,100,802 | $ | 2,136,606 | $ | 1,753,250 | $ | 1,639,578 | ||||||||||
Net income (loss) | $ | 467,468 | $ | 451,779 | $ | 257,692 | $ | (43,421 | ) | $ | 206,477 | |||||||||
Net income (loss) per common share-basic | $ | 2.74 | $ | 2.41 | $ | 1.30 | $ | (0.21 | ) | $ | 0.98 | |||||||||
Net income (loss) per common share-diluted | $ | 2.60 | $ | 2.35 | $ | 1.28 | $ | (0.21 | ) | $ | 0.97 | |||||||||
Cash dividend declared per common share | $ | 0.36 | $ | 0.36 | $ | 0.28 | $ | 0.24 | $ | 0.24 | ||||||||||
Consolidated Balance Sheet Data: | ||||||||||||||||||||
Total assets | $ | 2,787,014 | $ | 2,706,606 | $ | 3,109,545 | $ | 2,762,493 | $ | 2,548,674 | ||||||||||
Long-term debt obligations | $ | 394,687 | $ | 379,981 | $ | 365,987 | $ | 352,669 | $ | — | ||||||||||
Item 7: | Management ’ s Discussion and Analysis of Financial Condition and Results of Operations |
Years Ended December 31, | ||||||||
2019 | 2018 | |||||||
Percentage of revenues: | ||||||||
Revenues: | ||||||||
Products | 82.3 | % | 82.3 | % | ||||
Services | 17.7 | 17.7 | ||||||
Total revenues | 100.0 | 100.0 | ||||||
Cost of revenues: | ||||||||
Cost of products | 34.1 | 34.6 | ||||||
Cost of services | 7.5 | 7.3 | ||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 41.6 | 41.9 | ||||||
Gross profit | 58.4 | 58.1 | ||||||
Operating expenses: | ||||||||
Selling and administrative | 19.0 | 18.6 | ||||||
Engineering and development | 14.1 | 14.4 | ||||||
Acquired intangible assets amortization | 1.7 | 1.9 | ||||||
Restructuring and other | (0.6 | ) | 0.7 | |||||
Total operating expenses | 34.3 | 35.5 | ||||||
Income from operations | 24.1 | 22.6 | ||||||
Non-operating (income) expenses: | ||||||||
Interest income | (1.1 | ) | (1.3 | ) | ||||
Interest expense | 1.0 | 1.5 | ||||||
Other (income) expense, net | 1.3 | 0.1 | ||||||
Income before income taxes | 22.9 | 22.3 | ||||||
Income tax provision | 2.5 | 0.8 | ||||||
Net income | 20.4 | % | 21.5 | % | ||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Percentage of revenues: | ||||||||
Revenues: | ||||||||
Products | 86.3 | % | 86.2 | % | ||||
Services | 13.7 | 13.8 | ||||||
Total revenues | 100.0 | 100.0 | ||||||
Cost of revenues: | ||||||||
Cost of products | 35.1 | 37.1 | ||||||
Cost of services | 5.3 | 5.7 | ||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 40.4 | 42.8 | ||||||
Gross profit | 59.6 | 57.2 | ||||||
Operating expenses: | ||||||||
Selling and administrative | 14.8 | 14.9 | ||||||
Engineering and development | 11.5 | 12.0 | ||||||
Acquired intangible assets amortization | 0.6 | 1.0 | ||||||
Restructuring and other | 0.3 | (0.4 | ) | |||||
Total operating expenses | 27.2 | 27.5 | ||||||
Income from operations | 32.4 | 29.7 | ||||||
Non-operating (income) expenses: | ||||||||
Interest income | (0.1 | ) | (0.2 | ) | ||||
Interest expense | 0.5 | 0.8 | ||||||
Other (income) expense, net | 0.7 | 0.3 | ||||||
Income before income taxes | 31.4 | 28.9 | ||||||
Income tax provision | 4.0 | 3.7 | ||||||
Net income | 27.4 | % | 25.1 | % | ||||
2019 | 2018 | 2018-2019 Dollar Change | ||||||||||
(in millions) | ||||||||||||
Semiconductor Test | $ | 1,552.6 | $ | 1,492.4 | $ | 60.2 | ||||||
Industrial Automation | 298.1 | 261.5 | 36.6 | |||||||||
System Test | 287.5 | 216.1 | 71.4 | |||||||||
Wireless Test | 157.3 | 132.0 | 25.3 | |||||||||
Corporate and Other | (0.5 | ) | (1.2 | ) | 0.7 | |||||||
$ | 2,295.0 | $ | 2,100.8 | $ | 194.2 | |||||||
2021 | 2020 | 2020-2021 Dollar Change | ||||||||||
(in millions) | ||||||||||||
Semiconductor Test | $ | 2,642.3 | $ | 2,259.6 | $ | 382.7 | ||||||
System Test | 467.7 | 409.7 | 58.0 | |||||||||
Industrial Automation | 375.9 | 279.7 | 96.2 | |||||||||
Wireless Test | 216.9 | 173.0 | 43.9 | |||||||||
Corporate and Other | — | (0.6 | ) | 0.6 | ||||||||
$ | 3,702.9 | $ | 3,121.5 | $ | 581.4 | |||||||
2019 | 2018 | |||||||
Semiconductor Test | 68 | % | 71 | % | ||||
Industrial Automation | 13 | 12 | ||||||
System Test | 13 | 10 | ||||||
Wireless Test | 7 | 6 | ||||||
100 | % | 100 | % | |||||
2021 | 2020 | |||||||
Semiconductor Test | 71 | % | 72 | % | ||||
System Test | 13 | 13 | ||||||
Industrial Automation | 10 | 9 | ||||||
Wireless Test | 6 | 6 | ||||||
100 | % | 100 | % | |||||
2019 | 2018 | |||||||
China | 22 | % | 17 | % | ||||
Taiwan | 21 | 25 | ||||||
United States | 15 | 13 | ||||||
Korea | 10 | 8 | ||||||
Europe | 10 | 11 | ||||||
Japan | 8 | 8 | ||||||
Thailand | 4 | 3 | ||||||
Singapore | 4 | 5 | ||||||
Malaysia | 3 | 6 | ||||||
Philippines | 2 | 4 | ||||||
Rest of the World | 2 | 2 | ||||||
100 | % | 100 | % | |||||
2021 | 2020 | |||||||
Taiwan | 30 | % | 38 | % | ||||
China | 17 | 15 | ||||||
Korea | 14 | 13 | ||||||
United States | 11 | 10 | ||||||
Europe | 7 | 7 | ||||||
Philippines | 5 | 2 | ||||||
Japan | 4 | 5 | ||||||
Thailand | 4 | 4 | ||||||
Malaysia | 4 | 2 | ||||||
Singapore | 3 | 2 | ||||||
Rest of the World | 1 | 2 | ||||||
100 | % | 100 | % | |||||
(1) | Revenues attributable to a country are based on the location of the customer site. |
2019 | 2018 | 2018-2019 Dollar Change | ||||||||||
(in millions) | ||||||||||||
Products revenues | $ | 1,887.7 | $ | 1,729.6 | $ | 158.1 | ||||||
Services revenues | 407.3 | 371.2 | 36.1 | |||||||||
$ | 2,295.0 | $ | 2,100.8 | $ | 194.2 | |||||||
2021 | 2020 | 2020-2021 Dollar Change | ||||||||||
(in millions) | ||||||||||||
Product revenues | $ | 3,196.6 | $ | 2,690.9 | $ | 505.7 | ||||||
Service revenues | 506.3 | 430.6 | 75.7 | |||||||||
$ | 3,702.9 | $ | 3,121.5 | $ | 581.4 | |||||||
2019 | 2018 | 2018-2019 Dollar / Point Change | ||||||||||
(dollars in millions) | ||||||||||||
Gross profit | $ | 1,339.8 | $ | 1,220.4 | $ | 119.4 | ||||||
Percent of total revenues | 58.4 | % | 58.1 | % | 0.3 |
2021 | 2020 | 2020-2021 Dollar / Point Change | ||||||||||
(in millions) | ||||||||||||
Gross profit | $ | 2,206.7 | $ | 1,785.7 | $ | 421.0 | ||||||
Percent of total revenues | 59.6 | % | 57.2 | % | 2.4 |
2019 | 2018 | 2018-2019 Dollar / Point Change | ||||||||||
(dollars in millions) | ||||||||||||
Product gross profit | $ | 1,105.6 | $ | 1,002.5 | $ | 103.1 | ||||||
Percent of product revenues | 58.6 | % | 58.0 | % | 0.6 | |||||||
Service gross profit | $ | 234.2 | $ | 217.9 | $ | 16.3 | ||||||
Percent of service revenues | 57.5 | % | 58.7 | % | (1.2 | ) |
2021 | 2020 | 2020-2021 Dollar / Point Change | ||||||||||
(in millions) | ||||||||||||
Product gross profit | $ | 1,896.5 | $ | 1,533.4 | $ | 363.1 | ||||||
Percent of product revenues | 59.3 | % | 57.0 | % | 2.3 | |||||||
Service gross profit | $ | 310.2 | $ | 252.3 | $ | 57.9 | ||||||
Percent of service revenues | 61.3 | % | 58.6 | % | 2.7 |
2019 | 2018 | 2018-2019 Change | ||||||||||
(dollars in millions) | ||||||||||||
Selling and administrative | $ | 437.1 | $ | 390.7 | $ | 46.4 | ||||||
Percent of total revenues | 19.0 | % | 18.6 | % |
2021 | 2020 | 2020-2021 Change | ||||||||||
(in millions) | ||||||||||||
Selling and administrative | $ | 547.6 | $ | 464.8 | $ | 82.8 | ||||||
Percent of total revenues | 14.8 | % | 14.9 | % |
2019 | 2018 | 2018-2019 Change | ||||||||||
(dollars in millions) | ||||||||||||
Engineering and development | $ | 322.8 | $ | 301.5 | $ | 21.3 | ||||||
Percent of total revenues | 14.1 | % | 14.4 | % |
2021 | 2020 | 2020-2021 Change | ||||||||||
(in millions) | ||||||||||||
Engineering and development | $ | 427.6 | $ | 375.0 | $ | 52.6 | ||||||
Percent of total revenues | 11.5 | % | 12.0 | % |
2019 | 2018 | 2018-2019 Change | ||||||||||
(in millions) | ||||||||||||
Interest income | $ | (24.8 | ) | $ | (26.7 | ) | $ | 1.9 | ||||
Interest expense | 23.1 | 31.3 | (8.2 | ) | ||||||||
Other (income) expense, net | 29.5 | 1.4 | 28.1 |
2021 | 2020 | 2020-2021 Change | ||||||||||
(in millions) | ||||||||||||
Interest income | $ | (2.6 | ) | $ | (6.0 | ) | $ | 3.4 | ||||
Interest expense | 17.8 | 24.2 | (6.4 | ) | ||||||||
Other (income) expense, net | 24.6 | 9.2 | 15.4 |
2019 | 2018 | 2018-2019 Change | ||||||||||
(in millions) | ||||||||||||
Semiconductor Test | $ | 417.0 | $ | 397.6 | $ | 19.4 | ||||||
System Test | 93.5 | 48.9 | 44.6 | |||||||||
Wireless Test | 35.6 | 29.1 | 6.5 | |||||||||
Industrial Automation | (5.9 | ) | 7.7 | (13.6 | ) | |||||||
Corporate and Other (1) | (14.4 | ) | (15.4 | ) | 1.0 | |||||||
$ | 525.8 | $ | 467.8 | $ | 58.0 | |||||||
2021 | 2020 | 2020-2021 Change | ||||||||||
(in millions) | ||||||||||||
Semiconductor Test | $ | 977.0 | $ | 739.7 | $ | 237.3 | ||||||
System Test | 163.1 | 152.1 | 11.0 | |||||||||
Wireless Test | 83.5 | 42.0 | 41.5 | |||||||||
Industrial Automation | (8.2 | ) | (24.0 | ) | 15.8 | |||||||
Corporate and Other (1) | (54.5 | ) | (8.7 | ) | (45.8 | ) | ||||||
$ | 1,161.0 | $ | 901.0 | $ | 260.0 | |||||||
(1) | Included in Corporate and Other are |
Payments Due by Period | ||||||||||||||||||||||||
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Other | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Convertible debt | $ | 460,000 | $ | — | $ | — | $ | 460,000 | $ | — | $ | — | ||||||||||||
Purchase obligations | 415,582 | $ | 412,948 | 2,634 | — | — | — | |||||||||||||||||
Retirement plans contributions | 139,451 | 5,069 | 10,464 | 10,336 | 113,582 | — | ||||||||||||||||||
Transition tax payable (1) | 88,157 | 5,515 | 15,741 | 22,628 | 44,273 | — | ||||||||||||||||||
Operating lease obligations | 72,505 | 21,933 | 30,582 | 11,602 | 8,388 | — | ||||||||||||||||||
Interest on long term debt | 23,000 | 5,750 | 11,500 | 5,750 | — | — | ||||||||||||||||||
Fair value of contingent consideration | 39,705 | 9,106 | 30,599 | — | — | — | ||||||||||||||||||
Other long-term liabilities reflected on the balance sheet under GAAP (2) | 79,579 | — | 39,156 | 6,348 | 470 | 33,605 | ||||||||||||||||||
Total | $ | 1,317,979 | $ | 460,321 | $ | 140,676 | $ | 516,664 | $ | 166,713 | $ | 33,605 | ||||||||||||
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column one) | |||||||||
Equity plans approved by shareholders | 2,542 | (1) | $ | 34.52 | 8,543 | (2) | ||||||
Equity plans not approved by shareholders (3) | 47 | 2.89 | — | |||||||||
Total | 2,589 | 29.91 | 8,543 | |||||||||
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column one) | |||||||||
Equity plans approved by shareholders | 1,588 | (1) | $ | 62.13 | 9,878 | (2) |
(1) | Includes |
(2) | Consists of |
Item 7A: | Quantitative and Qualitative Disclosures about Market Risks |
Hypothetical Change in Teradyne Stock Price | Fair Value | Estimated change in fair value | Hypothetical percentage increase (decrease) in fair value | |||||||||
10% Increase | $ | 1,103,496 | $ | 93,221 | 9.2 | % | ||||||
No Change | 1,010,275 | — | — | |||||||||
10% Decrease | 918,822 | (91,453 | ) | (9.1 | ) |
Hypothetical Change in Teradyne Stock Price | Fair Value | Estimated change in fair value | Hypothetical percentage increase (decrease) in fair value | |||||||||
10% Increase | $ | 667,534 | $ | 62,886 | 10.4 | % | ||||||
No Change | 604,648 | — | — | |||||||||
10% Decrease | 546,172 | (58,476 | ) | (9.7 | ) |
Item 8: | Financial Statements and Supplementary Data |
2019 | 2018 | |||||||
(in thousands, except per share information) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 773,924 | $ | 926,752 | ||||
Marketable securities | 137,303 | 190,096 | ||||||
Accounts receivable, less allowance for doubtful accounts of $1,736 and $1,673 in 2019 and 2018, respectively | 362,368 | 291,267 | ||||||
Inventories, net | 196,691 | 153,541 | ||||||
Prepayments and other current assets | 188,598 | 170,826 | ||||||
Total current assets | 1,658,884 | 1,732,482 | ||||||
Property, plant and equipment, net | 320,216 | 279,821 | ||||||
Operating lease right-of-use assets, net | 57,539 | — | ||||||
Marketable securities | 104,490 | 87,731 | ||||||
Deferred tax assets | 75,185 | 70,848 | ||||||
Retirement plans assets | 18,457 | 16,883 | ||||||
Other assets | 10,332 | 11,509 | ||||||
Acquired intangible assets, net | 125,480 | 125,482 | ||||||
Goodwill | 416,431 | 381,850 | ||||||
Total assets | $ | 2,787,014 | $ | 2,706,606 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 126,617 | $ | 100,688 | ||||
Accrued employees’ compensation and withholdings | 163,883 | 148,566 | ||||||
Deferred revenue and customer advances | 104,876 | 77,711 | ||||||
Other accrued liabilities | 70,871 | 78,272 | ||||||
Operating lease liabilities | 19,476 | — | ||||||
Contingent consideration | 9,106 | 34,865 | ||||||
Income taxes payable | 44,200 | 36,185 | ||||||
Total current liabilities | 539,029 | 476,287 | ||||||
Retirement plans liabilities | 134,471 | 117,456 | ||||||
Long-term deferred revenue and customer advances | 45,974 | 32,750 | ||||||
Long-term contingent consideration | 30,599 | 35,678 | ||||||
Deferred tax liabilities | 14,070 | 20,662 | ||||||
Long-term other accrued liabilities | 19,535 | 37,547 | ||||||
Long-term operating lease liabilities | 45,849 | — | ||||||
Long-term income taxes payable | 82,642 | 83,891 | ||||||
Debt | 394,687 | 379,981 | ||||||
Total liabilities | 1,306,856 | 1,184,252 | ||||||
Commitments and contingencies (Note M) | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, $0.125 par value, 1,000,000 shares authorized, 166,410 and 175,522 shares issued and outstanding at December 31, 2019 and 2018, respectively | 20,801 | 21,940 | ||||||
Additional paid-in capital | 1,720,129 | 1,671,645 | ||||||
Accumulated other comprehensive los s | (18,854 | ) | (13,040 | ) | ||||
Accumulated deficit | (241,918 | ) | (158,191 | ) | ||||
Total shareholders’ equity | 1,480,158 | 1,522,354 | ||||||
Total liabilities and shareholders’ equity | $ | 2,787,014 | $ | 2,706,606 | ||||
December 31, | ||||||||
2021 | 2020 | |||||||
(in thousands, except per share amount) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,122,199 | $ | 914,121 | ||||
Marketable securities | 244,231 | 522,280 | ||||||
Accounts receivable, less allowance for credit losses of $2,012 and $2,034 in 2021 and 2020, respectively | 550,749 | 497,506 | ||||||
Inventories, net | 243,330 | 222,189 | ||||||
Prepayments | 406,266 | 250,092 | ||||||
Other current assets | 9,452 | 9,246 | ||||||
Total current assets | 2,576,227 | 2,415,434 | ||||||
Property, plant and equipment, net | 387,240 | 394,800 | ||||||
Operating lease right-of-use assets, net | 68,807 | 54,569 | ||||||
Marketable securities | 133,858 | 117,980 | ||||||
Deferred tax assets | 102,428 | 87,913 | ||||||
Retirement plans assets | 15,110 | 17,468 | ||||||
Other assets | 24,096 | 9,384 | ||||||
Acquired intangible assets, net | 75,635 | 100,939 | ||||||
Goodwill | 426,024 | 453,859 | ||||||
Total assets | $ | 3,809,425 | $ | 3,652,346 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 153,133 | $ | 133,663 | ||||
Accrued employees’ compensation and withholdings | 253,667 | 220,321 | ||||||
Deferred revenue and customer advances | 146,185 | 134,662 | ||||||
Other accrued liabilities | 124,187 | 77,581 | ||||||
Operating lease liabilities | 19,977 | 20,573 | ||||||
Income taxes payable | 88,789 | 80,728 | ||||||
Current debt | 19,182 | 33,343 | ||||||
Total current liabilities | 805,120 | 700,871 | ||||||
Retirement plans liabilities | 151,141 | 151,140 | ||||||
Long-term deferred revenue and customer advances | 54,921 | 58,359 | ||||||
Long-term contingent consideration | 0 | 7,227 | ||||||
Deferred tax liabilities | 6,327 | 10,821 | ||||||
Long-term other accrued liabilities | 15,497 | 19,352 | ||||||
Long-term operating lease liabilities | 56,178 | 42,073 | ||||||
Long-term income taxes payable | 67,041 | 74,930 | ||||||
Debt | 89,244 | 376,768 | ||||||
Total liabilities | 1,245,469 | 1,441,541 | ||||||
Commitments and contingencies (note M) | 0 | 0 | ||||||
Mezzanine equity: | ||||||||
Convertible common shares | 1,512 | 3,787 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, $0.125 par value, 1,000,000 shares authorized, 162,251 and 166,123 shares issued and outstanding at December 31, 2021 and 2020, respectively | 20,281 | 20,765 | ||||||
Additional paid-in capital | 1,811,545 | 1,765,323 | ||||||
Accumulated other comprehensive (loss) income | (5,948 | ) | 33,516 | |||||
Retained earnings | 736,566 | 387,414 | ||||||
Total shareholders’ equity | 2,562,444 | 2,207,018 | ||||||
Total liabilities, convertible common shares and shareholders’ equity | $ | 3,809,425 | $ | 3,652,346 | ||||
Years Ended December 31, | ||||||||||||||||||||||||
Years Ended December 31, | 2021 | 2020 | 2019 | |||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||
(in thousands, except per share amounts) | (in thousands, except per share amount) | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Products | $ | 1,887,674 | $ | 1,729,621 | $ | 1,784,695 | $ | 3,196,575 | $ | 2,690,906 | $ | 1,887,674 | ||||||||||||
Services | 407,291 | 371,181 | 351,911 | 506,306 | 430,563 | 407,291 | ||||||||||||||||||
Total revenues | 2,294,965 | 2,100,802 | 2,136,606 | 3,702,881 | 3,121,469 | 2,294,965 | ||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||
Cost of products | 782,047 | 727,138 | 760,967 | 1,300,106 | 1,157,476 | 782,047 | ||||||||||||||||||
Cost of services | 173,089 | 153,270 | 154,186 | 196,119 | 178,252 | 173,089 | ||||||||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 955,136 | 880,408 | 915,153 | 1,496,225 | 1,335,728 | 955,136 | ||||||||||||||||||
Gross profit | 1,339,829 | 1,220,394 | 1,221,453 | 2,206,656 | 1,785,741 | 1,339,829 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Selling and administrative | 437,084 | 390,669 | 348,913 | 547,559 | 464,769 | 437,084 | ||||||||||||||||||
Engineering and development | 322,824 | 301,505 | 307,305 | 427,609 | 374,964 | 322,824 | ||||||||||||||||||
Acquired intangible assets amortization | 40,147 | 39,191 | 30,530 | 21,456 | 30,803 | 40,147 | ||||||||||||||||||
Restructuring and other | (13,880 | ) | 15,232 | 9,362 | 9,312 | (13,202 | ) | (13,880 | ) | |||||||||||||||
Total operating expenses | 786,175 | 746,597 | 696,110 | 1,005,936 | 857,334 | 786,175 | ||||||||||||||||||
Income from operations | 553,654 | 473,797 | 525,343 | 1,200,720 | 928,407 | 553,654 | ||||||||||||||||||
Non-operating (income) expenses: | ||||||||||||||||||||||||
Interest income | (24,785 | ) | (26,704 | ) | (17,805 | ) | (2,627 | ) | (5,982 | ) | (16,990 | ) | ||||||||||||
Interest expense | 23,145 | 31,269 | 21,663 | 17,820 | 24,182 | 22,224 | ||||||||||||||||||
Other (income) expense, net | 29,522 | 1,431 | (2,927 | ) | 24,572 | 9,192 | 22,648 | |||||||||||||||||
Income before income taxes | 525,772 | 467,801 | 524,412 | 1,160,955 | 901,015 | 525,772 | ||||||||||||||||||
Income tax provision | 58,304 | 16,022 | 266,720 | 146,366 | 116,868 | 58,304 | ||||||||||||||||||
Net income | $ | 467,468 | $ | 451,779 | $ | 257,692 | $ | 1,014,589 | $ | 784,147 | $ | 467,468 | ||||||||||||
Net income per common share: | ||||||||||||||||||||||||
Basic | $ | 2.74 | $ | 2.41 | $ | 1.30 | $ | 6.15 | $ | 4.72 | $ | 2.74 | ||||||||||||
Diluted | $ | 2.60 | $ | 2.35 | $ | 1.28 | $ | 5.53 | $ | 4.28 | $ | 2.60 | ||||||||||||
Weighted average common shares—basic | 170,425 | 187,672 | 198,069 | 164,960 | 166,120 | 170,425 | ||||||||||||||||||
Weighted average common shares—diluted | 179,459 | 192,605 | 201,641 | 183,625 | 183,042 | 179,459 | ||||||||||||||||||
Cash dividend declared per common share | $ | 0.36 | $ | 0.36 | $ | 0.28 | ||||||||||||||||||
Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Net income | $ | 1,014,589 | $ | 784,147 | $ | 467,468 | ||||||
Other comprehensive income, net of tax: | ||||||||||||
Foreign currency translation adjustment, net of tax of $0, respectively | (36,207 | ) | 48,903 | (10,991 | ) | |||||||
Available-for-sale marketable securities: | ||||||||||||
Unrealized (losses) gains on marketable securities arising during period, net of tax of $(578), $1,629, $1,659, respectively | (2,255 | ) | 5,839 | 6,015 | ||||||||
Less: Reclassification adjustment for gains included in net income, net of tax of $(277), $(665), $(192), respectively | (995 | ) | (2,365 | ) | (690 | ) | ||||||
(3,250 | ) | 3,474 | 5,325 | |||||||||
Defined benefit post-retirement plan: | ||||||||||||
Amortization of prior service credit, net of tax $(2), $(2), $(43), respectively | (7 | ) | (7 | ) | (148 | ) | ||||||
Other comprehensive (loss) income | (39,464 | ) | 52,370 | (5,814 | ) | |||||||
Comprehensive income | $ | 975,125 | $ | 836,517 | $ | 461,654 | ||||||
Years Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Net income | $ | 467,468 | $ | 451,779 | $ | 257,692 | ||||||
Other comprehensive income, net of tax: | ||||||||||||
Foreign currency translation adjustment, net of tax of $0, $0, $0 | (10,991 | ) | (28,442 | ) | 37,840 | |||||||
Available-for-sale marketable securities: | ||||||||||||
Unrealized gains (losses) on deb securities arising during period, net of tax of $1,659, $(722), $1,903, respectivelyt | 6,015 | (2,110 | ) | 1,863 | ||||||||
Less: Reclassification adjustment for (gains) losses included in net income, net of tax of $(192), $(21), $(297), respectively | (690 | ) | 1,337 | (441 | ) | |||||||
5,325 | (773 | ) | 1,422 | |||||||||
Defined benefit pension and post-retirement plans: | ||||||||||||
Amortization of prior service benefit included in net periodic pension and post-retirementbenefit , net of tax $(43), $(71), $(154), respectively | (148 | ) | (245 | ) | (272 | ) | ||||||
Other comprehensive (loss) income | (5,814 | ) | (29,460 | ) | 38,990 | |||||||
Comprehensive income | $ | 461,654 | $ | 422,319 | $ | 296,682 | ||||||
Common Stock Shares | Common Stock Value | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings (Accumulated Deficit) | Total Shareholders’ Equity | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Year Ended December 31, 2016 | 199,177 | $ | 24,897 | $ | 1,593,684 | $ | (20,214 | ) | $ | 230,292 | $ | 1,828,659 | ||||||||||||
Net issuance of common stock under stock-based plans | 2,211 | 277 | 10,747 | 11,024 | ||||||||||||||||||||
Stock-based compensation expense | 33,982 | 33,982 | ||||||||||||||||||||||
Repurchase of common stock | (5,840 | ) | (730 | ) | (199,574 | ) | (200,304 | ) | ||||||||||||||||
Tax benefit related to stock options and restricted stock units | 39,081 | 39,081 | ||||||||||||||||||||||
Cash dividends ($0.07 per share) | (55,478 | ) | (55,478 | ) | ||||||||||||||||||||
Net income | 257,692 | 257,692 | ||||||||||||||||||||||
Other comprehensive income | 38,990 | 38,990 | ||||||||||||||||||||||
Year Ended December 31, 2017 | 195,548 | 24,444 | 1,638,413 | 18,776 | 272,013 | 1,953,646 | ||||||||||||||||||
Net issuance of common stock under stock-based plans | 1,613 | 201 | (72 | ) | 129 | |||||||||||||||||||
Stock-based compensation expense | 33,304 | 33,304 | ||||||||||||||||||||||
Repurchase of common stock | (21,639 | ) | (2,705 | ) | (829,651 | ) | (832,356 | ) | ||||||||||||||||
Cash dividends ($0.09 per share) | (67,367 | ) | (67,367 | ) | ||||||||||||||||||||
Net income | 451,779 | 451,779 | ||||||||||||||||||||||
Other comprehensive loss | (29,460 | ) | (29,460 | ) | ||||||||||||||||||||
Reclassification of unrealized gains on equity securities | (3,125 | ) | 3,125 | — | ||||||||||||||||||||
Reclassification of tax effects resulting from the Tax Reform Act | 769 | (769 | ) | — | ||||||||||||||||||||
Cumulative effect of changes in accounting principle related to revenue recognition | 12,679 | 12,679 | ||||||||||||||||||||||
Year Ended December 31, 2018 | 175,522 | 21,940 | 1,671,645 | (13,040 | ) | (158,191 | ) | 1,522,354 | ||||||||||||||||
Net issuance of common stock under stock-based plans | 1,784 | 223 | 10,399 | 10,622 | ||||||||||||||||||||
Stock-based compensation expense | 38,085 | 38,085 | ||||||||||||||||||||||
Repurchase of common stock | (10,896 | ) | (1,362 | ) | (489,840 | ) | (491,202 | ) | ||||||||||||||||
Cash dividends ($0.09 per share) | (61,355 | ) | (61,355 | ) | ||||||||||||||||||||
Net income | 467,468 | 467,468 | ||||||||||||||||||||||
Other comprehensive loss | (5,814 | ) | (5,814 | ) | ||||||||||||||||||||
Year Ended December 31, 2019 | 166,410 | $ | 20,801 | $ | 1,720,129 | $ | (18,854 | ) | $ | (241,918 | ) | $ | 1,480,158 | |||||||||||
Shareholders’ Equity | ||||||||||||||||||||||||||||
Convertible Common Shares Value | Common Stock Shares | Common Stock Par Value | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | (Accumulated Deficit) Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Year Ended December 31, 2018 | $ | — | 175,522 | $ | 21,940 | $ | 1,671,645 | $ | (13,040 | ) | $ | (158,191 | ) | $ | 1,522,354 | |||||||||||||
Net issuance of common stock under stock-based plans | 1,784 | 223 | 10,399 | 10,622 | ||||||||||||||||||||||||
Stock-based compensation expense | 38,085 | 38,085 | ||||||||||||||||||||||||||
Repurchase of common stock | (10,896 | ) | (1,362 | ) | (489,840 | ) | (491,202 | ) | ||||||||||||||||||||
Cash dividends ($0.36 per share) | (61,355 | ) | (61,355 | ) | ||||||||||||||||||||||||
Net income | 467,468 | 467,468 | ||||||||||||||||||||||||||
Other comprehensive loss | (5,814 | ) | (5,814 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2019 | — | 166,410 | 20,801 | 1,720,129 | (18,854 | ) | (241,918 | ) | 1,480,158 | |||||||||||||||||||
Net issuance of common stock under stock-based plans | 1,230 | 154 | 4,696 | 4,850 | ||||||||||||||||||||||||
Stock-based compensation expense | 44,285 | 44,285 | ||||||||||||||||||||||||||
Repurchase of common stock | (1,517 | ) | (190 | ) | (88,275 | ) | (88,465 | ) | ||||||||||||||||||||
Cash dividends ($0.40 per share) | (66,540 | ) | (66,540 | ) | ||||||||||||||||||||||||
Convertible common shares | 3,787 | (3,787 | ) | (3,787 | ) | |||||||||||||||||||||||
Net income | 784,147 | 784,147 | ||||||||||||||||||||||||||
Other comprehensive income | 52,370 | 52,370 | ||||||||||||||||||||||||||
Year Ended December 31, 2020 | 3,787 | 166,123 | 20,765 | 1,765,323 | 33,516 | 387,414 | 2,207,018 | |||||||||||||||||||||
Net issuance of common stock under stock-based plans | 899 | 113 | (225 | ) | (112 | ) | ||||||||||||||||||||||
Stock-based compensation expense | 45,632 | 45,632 | ||||||||||||||||||||||||||
Repurchase of common stock | (4,771 | ) | (597 | ) | (599,403 | ) | (600,000 | ) | ||||||||||||||||||||
Cash dividends ($0.40 per share) | (66,034 | ) | (66,034 | ) | ||||||||||||||||||||||||
Settlements of convertible notes | 8,148 | 1,018 | 984,622 | 985,640 | ||||||||||||||||||||||||
Exercise of convertible notes hedge call options | (8,148 | ) | (1,018 | ) | (986,082 | ) | (987,100 | ) | ||||||||||||||||||||
Convertible common shares | (2,275 | ) | 2,275 | 2,275 | ||||||||||||||||||||||||
Net income | 1,014,589 | 1,014,589 | ||||||||||||||||||||||||||
Other comprehensive loss | (39,464 | ) | (39,464 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2021 | $ | 1,512 | 162,251 | $ | 20,281 | $ | 1,811,545 | $ | (5,948 | ) | $ | 736,566 | $ | 2,562,444 | ||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
Years Ended December 31, | 2021 | 2020 | 2019 | |||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income | $ | 467,468 | $ | 451,779 | $ | 257,692 | $ | 1,014,589 | $ | 784,147 | $ | 467,468 | ||||||||||||
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation | 70,834 | 67,415 | 66,122 | 91,073 | 80,119 | 70,834 | ||||||||||||||||||
Stock-based compensation | 45,643 | 44,906 | 37,897 | |||||||||||||||||||||
Amortization | 49,821 | 45,809 | 41,953 | 34,412 | 46,624 | 49,821 | ||||||||||||||||||
Stock-based compensation | 37,897 | 33,577 | 34,097 | |||||||||||||||||||||
Loss on convertible debt conversion | 28,828 | 0 | 0 | |||||||||||||||||||||
Provision for excess and obsolete inventory | 15,475 | 17,534 | 15,244 | |||||||||||||||||||||
Deferred taxes | (9,456 | ) | 28,340 | 37,105 | (17,305 | ) | (15,688 | ) | (9,456 | ) | ||||||||||||||
Provision for excess and obsolete inventory | 15,244 | 11,242 | 8,844 | |||||||||||||||||||||
Contingent consideration fair value adjustment | (7,227 | ) | (23,271 | ) | (19,257 | ) | ||||||||||||||||||
Gains on investments | (6,410 | ) | (7,898 | ) | (6,033 | ) | ||||||||||||||||||
Retirement plans actuarial (gains) losses | (2,217 | ) | 10,284 | 8,176 | ||||||||||||||||||||
Investment impairment | 15,000 | — | — | 0 | 0 | 15,000 | ||||||||||||||||||
Contingent consideration fair value adjustment | (19,257 | ) | 987 | 7,820 | ||||||||||||||||||||
(Gains) losses on investments | (6,033 | ) | 3,494 | (878 | ) | |||||||||||||||||||
Retirement plans actuarial losses ( gains) | 8,176 | (3,316 | ) | (6,624 | ) | |||||||||||||||||||
Property insurance recovery, net | — | — | (4,309 | ) | ||||||||||||||||||||
Other | 766 | 1,083 | 1,585 | 271 | 1,557 | 766 | ||||||||||||||||||
Changes in operating assets and liabilities, net of businesses acquired: | ||||||||||||||||||||||||
Accounts receivable | (70,440 | ) | (17,938 | ) | (80,584 | ) | (57,778 | ) | (129,451 | ) | (70,440 | ) | ||||||||||||
Inventories | (27,408 | ) | (29,498 | ) | 44,960 | 6,495 | (8,438 | ) | (27,408 | ) | ||||||||||||||
Prepayments and other assets | (23,784 | ) | (58,402 | ) | 2,254 | (175,846 | ) | (64,418 | ) | (23,784 | ) | |||||||||||||
Accounts payable and other liabilit ies | 49,279 | 13,693 | 43,574 | |||||||||||||||||||||
Accounts payable and other accrued expenses | 129,499 | 73,167 | 49,279 | |||||||||||||||||||||
Deferred revenue and customer advances | 39,313 | 13,379 | 4,984 | 9,873 | 39,974 | 39,313 | ||||||||||||||||||
Retirement plan contributions | (5,086 | ) | (4,334 | ) | (5,902 | ) | (5,405 | ) | (5,382 | ) | (5,086 | ) | ||||||||||||
Income taxes | (13,584 | ) | (80,429 | ) | 173,802 | (5,604 | ) | 25,169 | (13,584 | ) | ||||||||||||||
Net cash provided by operating activities | 578,750 | 476,881 | 626,495 | 1,098,366 | 868,935 | 578,750 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchases of property, plant and equipment | (134,642 | ) | (114,379 | ) | (105,375 | ) | (132,472 | ) | (184,977 | ) | (134,642 | ) | ||||||||||||
Proceeds from government subsidy for property, plant and equipment | — | 7,920 | — | |||||||||||||||||||||
Purchases of marketable securities | (662,701 | ) | (918,744 | ) | (1,391,917 | ) | (661,781 | ) | (900,196 | ) | (662,701 | ) | ||||||||||||
Proceeds from maturities of marketable securities | 611,927 | 1,270,439 | 701,681 | 660,148 | 479,678 | 611,927 | ||||||||||||||||||
Proceeds from sales of marketable securities | 105,586 | 846,122 | 527,746 | 266,466 | 35,006 | 105,586 | ||||||||||||||||||
Purchase of investment and acquisition of business | (12,000 | ) | 149 | (79,742 | ) | |||||||||||||||||||
Proceeds from insurance | 2,912 | 1,126 | 5,064 | 0 | 546 | 2,912 | ||||||||||||||||||
Purchase of investment and acquisition of businesses, net of cash acquired | (79,742 | ) | (169,474 | ) | — | |||||||||||||||||||
Net cash (used for) provided by investing activities | (156,660 | ) | 923,010 | (262,801 | ) | |||||||||||||||||||
Net cash provided by (used for) investing activities | 120,361 | (569,794 | ) | (156,660 | ) | |||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Issuance of common stock under stock purchase and stock option plans | 29,312 | 20,973 | 24,493 | |||||||||||||||||||||
Repurchase of common stock | (500,000 | ) | (823,478 | ) | (200,304 | ) | (600,000 | ) | (88,465 | ) | (500,000 | ) | ||||||||||||
Payments of convertible debt principal | (342,990 | ) | 0 | 0 | ||||||||||||||||||||
Dividend payments | (61,305 | ) | (67,322 | ) | (55,447 | ) | (65,977 | ) | (66,482 | ) | (61,305 | ) | ||||||||||||
Payments related to net settlement of employee stock compensation awards | (14,741 | ) | (20,023 | ) | (12,881 | ) | (32,303 | ) | (23,014 | ) | (14,741 | ) | ||||||||||||
Issuance of common stock under stock purchase and stock option plans | 32,686 | 28,527 | 29,312 | |||||||||||||||||||||
Payments of contingent consideration | (27,615 | ) | (13,571 | ) | (1,050 | ) | 0 | (8,852 | ) | (27,615 | ) | |||||||||||||
Net cash used for financing activities | (574,349 | ) | (903,421 | ) | (245,189 | ) | (1,008,584 | ) | (158,286 | ) | (574,349 | ) | ||||||||||||
Effects of exchange rate changes on cash and cash equivalents | (569 | ) | 439 | 3,454 | (2,065 | ) | (658 | ) | (569 | ) | ||||||||||||||
(Decrease) Increase in cash and cash equivalents | (152,828 | ) | 496,909 | 121,959 | ||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 208,078 | 140,197 | (152,828 | ) | ||||||||||||||||||||
Cash and cash equivalents at beginning of year | 926,752 | 429,843 | 307,884 | 914,121 | 773,924 | 926,752 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ | 773,924 | $ | 926,752 | $ | 429,843 | $ | 1,122,199 | $ | 914,121 | $ | 773,924 | ||||||||||||
Supplementary disclosure of cash flow information: | ||||||||||||||||||||||||
Cash paid for: | ||||||||||||||||||||||||
Interest | $ | 5,996 | $ | 6,205 | $ | 6,446 | $ | 4,236 | $ | 6,435 | $ | 5,996 | ||||||||||||
Income taxes | $ | 81,410 | $ | 72,811 | $ | 53,775 | $ | 172,134 | $ | 106,577 | $ | 81,410 | ||||||||||||
Non-cash investing activities: | ||||||||||||||||||||||||
Capital expenditures incurred but not yet paid: | $ | 1,973 | $ | 3,666 | $ | 4,068 |
Teradyne has concluded that revenue should be recognized when shipped or delivered based on contractual terms. Typically, acceptance of Teradyne’s products and services is a formality as Teradyne delivers similar systems, instruments and robots to standard specifications. In cases where acceptance is not deemed a formality, Teradyne will defer revenue recognition until customer acceptance. |
2019 | 2018 | |||||||
(in thousands) | ||||||||
Maintenance , service and training | $ | 63,815 | $ | 58,362 | ||||
Extended warranty | 30,677 | 27,422 | ||||||
Customer advances, undelivered elements and other | 56,358 | 24,677 | ||||||
Total deferred revenue and customer advances | $ | 150,850 | $ | 110,461 | ||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Maintenance, service and training | $ | 81,826 | $ | 77,654 | ||||
Extended warranty | 64,168 | 51,929 | ||||||
Customer advances, undelivered elements and other | 55,112 | 63,438 | ||||||
Total deferred revenue and customer advances | $ | 201,106 | $ | 193,021 | ||||
Amount | ||||
(in thousands) | ||||
Balance at December 31, 2016 | $ | 7,203 | ||
Accruals for warranties issued during the period | 14,223 | |||
Accruals related to pre-existing warranties | (379 | ) | ||
Settlements made during the period | (12,847 | ) | ||
Balance at December 31, 2017 | 8,200 | |||
Acquisition | 41 | |||
Accruals for warranties issued during the period | 13,045 | |||
Accruals related to pre-existing warranties | 921 | |||
Settlements made during the period | (14,298 | ) | ||
Balance at December 31, 2018 | 7,909 | |||
Acquisition | 14 | |||
Accruals for warranties issued during the period | 14,106 | |||
Accruals related to pre-existing warranties | 4,026 | |||
Settlements made during the period | (17,059 | ) | ||
Balance at December 31, 2019 | $ | 8,996 |
Amount | ||||
(in thousands) | ||||
Balance at December 31, 2018 | $ | 7,909 | ||
Acquisition | 14 | |||
Accruals for warranties issued during the period | 14,106 | |||
Accruals related to pre-existing warranties | 4,026 | |||
Settlements made during the period | (17,059 | ) | ||
Balance at December 31, 2019 | 8,996 | |||
Accruals for warranties issued during the period | 28,490 | |||
Accruals related to pre-existing warranties | 821 | |||
Settlements made during the period | (21,674 | ) | ||
Balance at December 31, 2020 | 16,633 | |||
Accruals for warranties issued during the period | 35,727 | |||
Accruals related to pre-existing warranties | (6,846 | ) | ||
Settlements made during the period | (20,937 | ) | ||
Balance at December 31, 2021 | $ | 24,577 | ||
Amount | ||||
(in thousands) | ||||
Balance at December 31, 2016 | $ | 28,200 | ||
Deferral of new extended warranty revenue | 20,513 | |||
Recognition of extended warranty deferred revenue | (24,275 | ) | ||
Balance at December 31, 2017 | 24,438 | |||
Deferral of new extended warranty revenue | 23,753 | |||
Recognition of extended warranty deferred revenue | (20,769 | ) | ||
Balance at December 31, 2018 | 27,422 | |||
Deferral of new extended warranty revenue | 23,271 | |||
Recognition of extended warranty deferred revenue | (20,016 | ) | ||
Balance at December 31, 2019 | $ | 30,677 | ||
Amount | ||||
(in thousands) | ||||
Balance at December 31, 2018 | $ | 27,422 | ||
Deferral of new extended warranty revenue | 23,271 | |||
Recognition of extended warranty deferred revenue | (20,016 | ) | ||
Balance at December 31, 2019 | 30,677 | |||
Deferral of new extended warranty revenue | 41,694 | |||
Recognition of extended warranty deferred revenue | (20,442 | ) | ||
Balance at December 31, 2020 | 51,929 | |||
Deferral of new extended warranty revenue | 43,597 | |||
Recognition of extended warranty deferred revenue | (31,358 | ) | ||
Balance at December 31, 2021 | $ | 64,168 | ||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Contract manufacturer and supplier prepayments | $ | 143,392 | $ | 131,642 | ||||
Prepaid taxes | 8,046 | 9,646 | ||||||
Prepaid maintenance and other services | 8,503 | 8,487 | ||||||
Other prepayments | 16,753 | 12,744 | ||||||
Total prepayments | $ | 176,694 | $ | 162,519 | ||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Contract manufacturer and supplier prepayments | $ | 364,478 | $ | 212,286 | ||||
Prepaid taxes | 15,090 | 9,361 | ||||||
Prepaid maintenance and other services | 13,660 | 13,116 | ||||||
Other prepayments | 13,038 | 15,329 | ||||||
Total prepayments | $ | 406,266 | $ | 250,092 | ||||
Buildings | 40 years | |||
Building improvements | 5 to 10 years | |||
Leasehold improvements | Lesser of lease term or 10 years | |||
Furniture and fixtures | 10 years | |||
Test systems manufactured internally | 6 years | |||
Machinery, and software | 3 to 5 years |
Purchase Price Allocation | ||||
(in thousands) | ||||
Goodwill | $ | 41,372 | ||
Intangible assets | 37,660 | |||
Tangible assets acquired and liabilities assumed: | ||||
Other c | 3,661 | |||
Non-current assets | 1,227 | |||
Accounts payable and current liabilities | (1,223 | ) | ||
Long-term other liabilities | (949 | ) | ||
Total purchase price | $ | 81,748 | ||
Fair Value | Estimated Useful Life | |||||||
(in thousands) | (in years) | |||||||
Developed technology | $ | 24,590 | 6.0 | |||||
Customer relationships | 7,360 | 6.0 | ||||||
Trademarks and tradenames | 5,450 | 7.0 | ||||||
Backlog | 260 | 0.3 | ||||||
Total intangible assets | $ | 37,660 | 6.1 | |||||
Purchase Price Allocation | ||||
(in thousands) | ||||
Goodwill | $ | 135,976 | ||
Intangible assets | 80,670 | |||
Tangible assets acquired and liabilities assumed: | ||||
Current assets | 6,039 | |||
Non-current assets | 1,336 | |||
Accounts payable and current liabilities | (7,336 | ) | ||
Long-term deferred tax liabilities | (18,007 | ) | ||
Other long-term liabilities | (900 | ) | ||
Total purchase price | $ | 197,778 | ||
Fair Value | Estimated Useful Life | |||||||
(in thousands) | (in years) | |||||||
Developed technology | $ | 58,900 | 7.0 | |||||
Trademarks and tradenames | 13,240 | 11.0 | ||||||
Customer relationships | 8,500 | 2.5 | ||||||
Backlog | 30 | 0.2 | ||||||
Total intangible assets | $ | 80,670 | 7.2 | |||||
For the Year Ended | ||||||||
December 31, 2019 | December 31, 2018 | |||||||
(in thousands, except per share amounts) | ||||||||
Revenues | $ | 2,303,737 | $ | 2,111,373 | ||||
Net income | $ | 464,602 | $ | 442,082 | ||||
Net income per common share: | ||||||||
Basic | $ | 2.73 | $ | 2.36 | ||||
Diluted | $ | 2.59 | $ | 2.30 | ||||
December 31, 2019 | ||||
(in thousands, except per share amount) | ||||
Revenues | $ | 2,303,737 | ||
Net income | $ | 464,602 | ||
Net income per common share: | ||||
Basic | $ | 2.73 | ||
Diluted | $ | 2.59 | ||
Semiconductor | Industrial Automation | System Test | Wireless Test | Corporate and Other | Total | |||||||||||||||||||||||||||||||||||
System on-a-chip | Memory | Universal Robots | Mobile Industrial Robots | AutoGuide | Energid | |||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2019 (1) | ||||||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||||||
Point in Time | $ | 1,070,375 | $ | 247,221 | $ | 244,515 | $ | 44,329 | $ | 1,144 | $ | — | $ | 237,686 | $ | 148,322 | $ | (515 | ) | $ | 1,993,077 | |||||||||||||||||||
Over Time | 216,065 | 18,910 | 3,952 | 74 | 234 | 3,891 | 49,769 | 8,993 | — | 301,888 | ||||||||||||||||||||||||||||||
Total | $ | 1,286,440 | $ | 266,131 | $ | 248,467 | $ | 44,403 | $ | 1,378 | $ | 3,891 | $ | 287,455 | $ | 157,315 | $ | (515 | ) | $ | 2,294,965 | |||||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 1,152,881 | $ | 238,714 | $ | 67,806 | $ | 9,513 | $ | — | $ | 221 | $ | 132,826 | $ | 126,549 | $ | — | $ | 1,728,510 | ||||||||||||||||||||
Americas | 73,257 | 23,826 | 70,165 | 14,438 | 1,378 | 1,761 | 129,840 | 24,234 | (515 | ) | 338,384 | |||||||||||||||||||||||||||||
Europe, Middle East and Africa | 60,302 | 3,591 | 110,496 | 20,452 | — | 1,909 | 24,789 | 6,532 | — | 228,071 | ||||||||||||||||||||||||||||||
Total | $ | 1,286,440 | $ | 266,131 | $ | 248,467 | $ | 44,403 | $ | 1,378 | $ | 3,891 | $ | 287,455 | $ | 157,315 | $ | (515 | ) | $ | 2,294,965 | |||||||||||||||||||
For the Year Ended December 31, 2018 (1) | ||||||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||||||
Point in Time | $ | 1,010,493 | $ | 259,366 | $ | 231,895 | $ | 24,115 | $ | — | $ | 553 | $ | 167,418 | $ | 122,536 | $ | (1,205 | ) | $ | 1,815,171 | |||||||||||||||||||
Over Time | 208,456 | 14,102 | 2,200 | — | — | 2,689 | 48,714 | 9,470 | — | 285,631 | ||||||||||||||||||||||||||||||
Total | $ | 1,218,949 | $ | 273,468 | $ | 234,095 | $ | 24,115 | $ | — | $ | 3,242 | $ | 216,132 | $ | 132,006 | $ | (1,205 | ) | $ | 2,100,802 | |||||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 1,067,879 | $ | 245,264 | $ | 58,381 | $ | 5,950 | $ | — | $ | 111 | $ | 90,989 | $ | 107,872 | $ | — | $ | 1,576,446 | ||||||||||||||||||||
Americas | 78,498 | 17,353 | 68,938 | 7,326 | — | 1,540 | 96,763 | 19,166 | (1,205 | ) | 288,379 | |||||||||||||||||||||||||||||
Europe, Middle East and Africa | 72,572 | 10,851 | 106,776 | 10,839 | — | 1,591 | 28,380 | 4,968 | — | 235,977 | ||||||||||||||||||||||||||||||
Total | $ | 1,218,949 | $ | 273,468 | $ | 234,095 | $ | 24,115 | $ | — | $ | 3,242 | $ | 216,132 | $ | 132,006 | $ | (1,205 | ) | $ | 2,100,802 | |||||||||||||||||||
Semiconductor Test | Industrial Automation | Wireless Test | Corporate and Other | Total | ||||||||||||||||||||||||||||||||
System- on-a-chip | Memory | System Test | Universal Robots | Mobile Industrial Robots | AutoGuide | |||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2021 (1) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 1,989,979 | $ | 365,441 | $ | 409,383 | $ | 305,512 | $ | 60,778 | $ | 106 | $ | 204,247 | $ | — | $ | 3,335,446 | ||||||||||||||||||
Over Time | 256,751 | 30,171 | 58,356 | 5,670 | 2,766 | 1,073 | 12,648 | — | 367,435 | |||||||||||||||||||||||||||
Total | $ | 2,246,730 | $ | 395,612 | $ | 467,739 | $ | 311,182 | $ | 63,544 | $ | 1,179 | $ | 216,895 | $ | — | $ | 3,702,881 | ||||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 2,076,647 | $ | 381,444 | $ | 306,812 | $ | 81,456 | $ | 12,919 | $ | — | $ | 172,103 | $ | — | $ | 3,031,381 | ||||||||||||||||||
Americas | 102,702 | 10,665 | 135,230 | 94,897 | 24,890 | 1,179 | 36,173 | — | 405,736 | |||||||||||||||||||||||||||
Europe, Middle East and Africa | 67,381 | 3,503 | 25,697 | 134,829 | 25,735 | — | 8,619 | — | 265,764 | |||||||||||||||||||||||||||
Total | $ | 2,246,730 | $ | 395,612 | $ | 467,739 | $ | 311,182 | $ | 63,544 | $ | 1,179 | $ | 216,895 | $ | — | $ | 3,702,881 | ||||||||||||||||||
For the Year Ended December 31, 2020 (1) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 1,659,414 | $ | 363,324 | $ | 348,454 | $ | 214,212 | $ | 44,622 | $ | 10,911 | $ | 163,834 | $ | (604 | ) | $ | 2,804,167 | |||||||||||||||||
Over Time | 217,975 | 18,884 | 61,275 | 7,269 | 211 | 2,506 | 9,182 | — | 317,302 | |||||||||||||||||||||||||||
Total | $ | 1,877,389 | $ | 382,208 | $ | 409,729 | $ | 221,481 | $ | 44,833 | $ | 13,417 | $ | 173,016 | $ | (604 | ) | $ | 3,121,469 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 1,744,593 | $ | 364,000 | $ | 258,521 | $ | 60,277 | $ | 6,471 | $ | — | $ | 143,969 | $ | — | $ | 2,577,831 | ||||||||||||||||||
Americas | 77,671 | 12,999 | 128,482 | 64,164 | 16,769 | 13,417 | 22,544 | (604 | ) | 335,442 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 55,125 | 5,209 | 22,726 | 97,040 | 21,593 | — | 6,503 | — | 208,196 | |||||||||||||||||||||||||||
Total | $ | 1,877,389 | $ | 382,208 | $ | 409,729 | $ | 221,481 | $ | 44,833 | $ | 13,417 | $ | 173,016 | $ | (604 | ) | $ | 3,121,469 | |||||||||||||||||
For the Year Ended December 31, 2019 (1) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 1,070,375 | $ | 247,221 | $ | 237,686 | $ | 244,515 | $ | 44,329 | $ | 1,144 | $ | 148,322 | $ | (515 | ) | $ | 1,993,077 | |||||||||||||||||
Over Time | 216,065 | 18,910 | 49,769 | 7,843 | 74 | 234 | 8,993 | — | 301,888 | |||||||||||||||||||||||||||
Total | $ | 1,286,440 | $ | 266,131 | $ | 287,455 | $ | 252,358 | $ | 44,403 | $ | 1,378 | $ | 157,315 | $ | (515 | ) | $ | 2,294,965 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 1,152,881 | $ | 238,714 | $ | 132,826 | $ | 68,027 | $ | 9,513 | $ | — | $ | 126,549 | $ | — | $ | 1,728,510 | ||||||||||||||||||
Americas | 73,257 | 23,826 | 129,840 | 71,926 | 14,438 | 1,378 | 24,234 | (515 | ) | 338,384 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 60,302 | 3,591 | 24,789 | 112,405 | 20,452 | — | 6,532 | — | 228,071 | |||||||||||||||||||||||||||
Total | $ | 1,286,440 | $ | 266,131 | $ | 287,455 | $ | 252,358 | $ | 44,403 | $ | 1,378 | $ | 157,315 | $ | (515 | ) | $ | 2,294,965 | |||||||||||||||||
(1) | Includes $13.2 million, $10.0 million and $8.4 million in 2021, 2020 and “Revenue from Contracts with Customers.” |
2019 | 2018 | |||||||
(in thousands) | ||||||||
Raw material | $ | 118,595 | $ | 89,365 | ||||
Work-in-process | 32,695 | 31,014 | ||||||
Finished g oods | 45,401 | 33,162 | ||||||
$ | 196,691 | $ | 153,541 | |||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Raw material s | $ | 155,641 | $ | 114,133 | ||||
Work-in-process | 37,740 | 25,408 | ||||||
Finished goods | 49,949 | 82,648 | ||||||
$ | 243,330 | $ | 222,189 | |||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Land | $ | 16,561 | $ | 16,561 | ||||
Buildings | 107,282 | 105,935 | ||||||
Machinery , equipment and s oftware | 834,970 | 752,722 | ||||||
Furniture and fixtures | 29,157 | 27,432 | ||||||
Leasehold improvements | 59,378 | 52,536 | ||||||
Construction in progress | 2,537 | 6,276 | ||||||
1,049,885 | 961,462 | |||||||
Less: accumulated depreciation | 729,669 | 681,641 | ||||||
$ | 320,216 | $ | 279,821 | |||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Land | $ | 17,207 | $ | 17,207 | ||||
Buildings | 126,468 | 108,221 | ||||||
Machinery, equipment and software | 994,828 | 956,035 | ||||||
Furniture and fixtures | 28,743 | 28,487 | ||||||
Leasehold improvements | 64,110 | 61,276 | ||||||
Construction in progress | 8,105 | 13,098 | ||||||
1,239,461 | 1,184,324 | |||||||
Less: accumulated depreciation | 852,221 | 789,524 | ||||||
$ | 387,240 | $ | 394,800 | |||||
December 31, 2019 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash | $ | 311,975 | $ | — | $ | — | $ | 311,975 | ||||||||
Cash equivalents | 410,285 | 51,664 | — | 461,949 | ||||||||||||
Available for sale securities: | ||||||||||||||||
Corporate debt securities | — | 97,307 | — | 97,307 | ||||||||||||
Commercial paper | — | 54,149 | — | 54,149 | ||||||||||||
U.S. Treasury securities | — | 42,382 | — | 42,382 | ||||||||||||
U.S. government agency securities | — | 9,952 | — | 9,952 | ||||||||||||
Debt mutual funds | 6,888 | — | — | 6,888 | ||||||||||||
Certificates of deposit and time deposits | — | 4,751 | — | 4,751 | ||||||||||||
Non-U.S. government securities | — | 592 | — | 592 | ||||||||||||
Equity securities: | ||||||||||||||||
Equity mutual funds | 25,772 | — | — | 25,772 | ||||||||||||
Total | $ | 754,920 | $ | 260,797 | $ | — | $ | 1,015,717 | ||||||||
Derivative assets | — | 528 | — | 528 | ||||||||||||
Total | $ | 754,920 | $ | 261,325 | $ | — | $ | 1,016,245 | ||||||||
Liabilities | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 39,705 | $ | 39,705 | ||||||||
Derivative liabilities | — | 203 | — | 203 | ||||||||||||
Total | $ | — | $ | 203 | $ | 39,705 | $ | 39,908 | ||||||||
December 31, 2021 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Significant Other Observable Inputs ( Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash | $ | 628,740 | $ | — | $ | — | $ | 628,740 | ||||||||
Cash equivalents | 412,212 | 81,247 | — | 493,459 | ||||||||||||
Available for sale securities: | ||||||||||||||||
Commercial paper | — | 189,620 | — | 189,620 | ||||||||||||
U.S. Treasury securities | — | 77,789 | — | 77,789 | ||||||||||||
Corporate debt securities | — | 56,901 | — | 56,901 | ||||||||||||
Debt mutual funds | 7,971 | — | — | 7,971 | ||||||||||||
U.S. government agency securities | — | 4,610 | — | 4,610 | ||||||||||||
Certificates of deposit and time deposits | — | 1,356 | — | 1,356 | ||||||||||||
Non-U.S. government securities | — | 589 | — | 589 | ||||||||||||
Equity securities: | ||||||||||||||||
Mutual funds | 39,253 | — | — | 39,253 | ||||||||||||
Total | $ | 1,088,176 | $ | 412,112 | $ | — | $ | 1,500,288 | ||||||||
Derivative assets | — | 92 | — | 92 | ||||||||||||
Total | $ | 1,088,176 | $ | 412,204 | $ | — | $ | 1,500,380 | ||||||||
Liabilities | ||||||||||||||||
Derivative liabilities | — | 118 | — | 118 | ||||||||||||
Total | $ | — | $ | 118 | $ | 0 | $ | 118 | ||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 722,260 | $ | 51,664 | $ | — | $ | 773,924 | ||||||||
Marketable securities | — | 137,303 | — | 137,303 | ||||||||||||
Long-term marketable securities | 32,660 | 71,830 | — | 104,490 | ||||||||||||
Prepayments | — | 528 | — | 528 | ||||||||||||
Total | $ | 754,920 | $ | 261,325 | $ | — | $ | 1,016,245 | ||||||||
Liabilities | ||||||||||||||||
Other current liabilities | $ | — | $ | 203 | $ | — | $ | 203 | ||||||||
Contingent consideration | — | — | 9,106 | 9,106 | ||||||||||||
Long-term contingent consideration | — | — | 30,599 | 30,599 | ||||||||||||
Total | $ | — | $ | 203 | $ | 39,705 | $ | 39,908 | ||||||||
December 31, 2018 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash | $ | 312,512 | $ | — | $ | — | $ | 312,512 | ||||||||
Cash equivalents | 253,525 | 360,715 | — | 614,240 | ||||||||||||
Available for sale securities: | ||||||||||||||||
U.S. Treasury securities | — | 109,721 | — | 109,721 | ||||||||||||
Commercial paper | — | 86,117 | — | 86,117 | ||||||||||||
Corporate debt securities | — | 40,020 | — | 40,020 | ||||||||||||
U.S. government agency securities | — | 9,611 | — | 9,611 | ||||||||||||
Certificates of deposit and time deposits | — | 7,604 | — | 7,604 | ||||||||||||
Debt mutual funds | 3,187 | — | — | 3,187 | ||||||||||||
Non-U.S. | — | 376 | — | 376 | ||||||||||||
Equity securities: | ||||||||||||||||
Equity mutual funds | 21,191 | — | — | 21,191 | ||||||||||||
$ | 590,415 | $ | 614,164 | $ | — | $ | 1,204,579 | |||||||||
Derivative assets | — | 79 | — | 79 | ||||||||||||
Total | $ | 590,415 | $ | 614,243 | $ | — | $ | 1,204,658 | ||||||||
Liabilities | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 70,543 | $ | 70,543 | ||||||||
Derivative liabilities | — | 514 | — | 514 | ||||||||||||
Total | $ | — | $ | 514 | $ | 70,543 | $ | 71,057 | ||||||||
(Level 1) | (Level 2 ) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 1,040,952 | $ | 81,247 | $ | — | $ | 1,122,199 | ||||||||
Marketable securities | — | 244,231 | — | 244,231 | ||||||||||||
Long-term marketable securities | 47,224 | 86,634 | — | 133,858 | ||||||||||||
Prepayments | — | 92 | — | 92 | ||||||||||||
Total | $ | 1,088,176 | $ | 412,204 | $ | — | $ | 1,500,380 | ||||||||
Liabilities | ||||||||||||||||
Other current liabilities | $ | — | $ | 118 | $ | — | $ | 118 | ||||||||
Total | $ | — | $ | 118 | $ | 0 | $ | 118 | ||||||||
December 31, 2020 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash | $ | 443,166 | $ | — | $ | — | $ | 443,166 | ||||||||
Cash equivalents | 347,768 | 123,187 | — | 470,955 | ||||||||||||
Available for sale securities: | ||||||||||||||||
U.S. Treasury securities | — | 258,304 | — | 258,304 | ||||||||||||
Commercial paper | — | 254,413 | — | 254,413 | ||||||||||||
Corporate debt securities | — | 83,615 | — | 83,615 | ||||||||||||
Debt mutual funds | 8,565 | — | — | 8,565 | ||||||||||||
U.S. government agency securities | — | 4,339 | — | 4,339 | ||||||||||||
Certificates of deposit and time deposits | — | 979 | — | 979 | ||||||||||||
Non-U.S. government securities | — | 625 | — | 625 | ||||||||||||
Equity securities: | ||||||||||||||||
Mutual funds | 29,420 | — | — | 29,420 | ||||||||||||
Total | $ | 828,919 | $ | 725,462 | $ | — | $ | 1,554,381 | ||||||||
Derivative assets | — | 95 | — | 95 | ||||||||||||
Total | $ | 828,919 | $ | 725,557 | $ | — | $ | 1,554,476 | ||||||||
Liabilities | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 7,227 | $ | 7,227 | ||||||||
Derivative liabilities | — | 504 | — | 504 | ||||||||||||
Total | $ | — | $ | 504 | $ | 7,227 | $ | 7,731 | ||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 566,037 | $ | 360,715 | $ | — | $ | 926,752 | ||||||||
Marketable securities | — | 190,096 | — | 190,096 | ||||||||||||
Long-term marketable securities | 24,378 | 63,353 | — | 87,731 | ||||||||||||
Prepayments | — | 79 | — | 79 | ||||||||||||
$ | 590,415 | $ | 614,243 | $ | — | $ | 1,204,658 | |||||||||
Liabilities | ||||||||||||||||
Other current liabilities | $ | — | $ | 514 | $ | — | $ | 514 | ||||||||
Contingent consideration | — | — | 34,865 | 34,865 | ||||||||||||
Long-term contingent consideration | — | — | 35,678 | 35,678 | ||||||||||||
$ | — | $ | 514 | $ | 70,543 | $ | 71,057 | |||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 790,934 | $ | 123,187 | $ | — | $ | 914,121 | ||||||||
Marketable securities | — | 522,280 | — | 522,280 | ||||||||||||
Long-term marketable securities | 37,985 | 79,995 | — | 117,980 | ||||||||||||
Prepayments | — | 95 | — | 95 | ||||||||||||
Total | $ | 828,919 | $ | 725,557 | $ | — | $ | 1,554,476 | ||||||||
Liabilities | ||||||||||||||||
Other current liabilities | $ | — | $ | 504 | $ | — | $ | 504 | ||||||||
Long-term contingent consideration | — | — | 7,227 | 7,227 | ||||||||||||
Total | $ | — | $ | 504 | $ | 7,227 | $ | 7,731 | ||||||||
Contingent Consideration | ||||
(in thousands) | ||||
Balance at December 31, 2019 | $ | 39,705 | ||
Foreign currency impact | (355 | ) | ||
Payments (1) | (8,852 | ) | ||
Fair value adjustment (2) | (23,271 | ) | ||
Balance at December 31, 2020 | 7,227 | |||
Foreign currency impact | — | |||
Payments | — | |||
Fair value adjustment (3) | (7,227 | ) | ||
Balance at December 31, 2021 | $ | 0 | ||
(1) |
During the year ended December 31, |
(2) | During the year ended December 31, 2020, the fair value of contingent consideration for the earn-out in connection with the acquisition of AutoGuide was decreased by $19.7 million primarily due to a decrease in forecasted revenues and earnings before interest and taxes. During the year ended December 31, 2020, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was |
(3) | During the year ended December 31, 2021, the fair value of contingent consideration for theprimarily due to a |
Liability | December 31, 2019 Fair Value | Valuation Technique | Unobservable Inputs | Weighted Average | ||||||||||||
(in thousands) | ||||||||||||||||
Contingent c onsideration(AutoGuide) | $ | 26,952 | Monte Carlo simulation | Revenue Volatility | 11.5 % | |||||||||||
Discount Rate | 2.6 % | |||||||||||||||
Contingent c onsideration(MiR) | $ | 12,753 (1) | Monte Carlo simulation | Revenue Volatility | 14.0 % | |||||||||||
Discount Rate | 0.2 % |
December 31, 2019 | December 31, 2018 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 773,924 | $ | 773,924 | $ | 926,752 | $ | 926,752 | ||||||||
Marketable securities | 241,793 | 241,793 | 277,827 | 277,827 | ||||||||||||
Derivative assets | 528 | 528 | 79 | 79 | ||||||||||||
Liabilities | ||||||||||||||||
Contingent consideration | 39,705 | 39,705 | 70,543 | 70,543 | ||||||||||||
Derivative liabilities | 203 | 203 | 514 | 514 | ||||||||||||
Convertible debt (1) | 394,687 | 1,010,275 | 379,981 | 547,113 |
December 31, 2021 | December 31, 2020 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 1,122,199 | $ | 1,122,199 | $ | 914,121 | $ | 914,121 | ||||||||
Marketable securities | 378,089 | 378,089 | 640,260 | 640,260 | ||||||||||||
Derivative assets | 92 | 92 | 95 | 95 | ||||||||||||
Liabilities | ||||||||||||||||
Contingent consideration | 0 | 0 | 7,227 | 7,227 | ||||||||||||
Derivative liabilities | 118 | 118 | 504 | 504 | ||||||||||||
Convertible debt (1) | 108,426 | 604,648 | 410,111 | 1,739,553 |
(1) | The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion features. |
December 31, 2019 | ||||||||||||||||||||
Available-for-Sale | ||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Corporate debt securities | $ | 93,267 | $ | 4,081 | $ | (41 | ) | $ | 97,307 | $ | 2,009 | |||||||||
Commercial paper | 54,124 | 26 | (1 | ) | 54,149 | 1,391 | ||||||||||||||
U.S. Treasury securities | 42,167 | 431 | (216 | ) | 42,382 | 17,556 | ||||||||||||||
U.S. government agency securities | 9,942 | 14 | (4 | ) | 9,952 | 3,043 | ||||||||||||||
Debt mutual funds | 6,753 | 135 | — | 6,888 | — | |||||||||||||||
Certificates of deposit and time deposits | 4,751 | — | — | 4,751 | — | |||||||||||||||
Non-U.S. government securities | 592 | — | — | 592 | — | |||||||||||||||
$ | 211,596 | $ | 4,687 | $ | (262 | ) | $ | 216,021 | $ | 23,999 | ||||||||||
December 31, 2021 | ||||||||||||||||||||
Available-for-Sale | ||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Commercial paper | $ | 189,614 | $ | 15 | $ | (9 | ) | $ | 189,620 | $ | 22,784 | |||||||||
U.S. Treasury securities | 77,707 | �� | 551 | (470 | ) | 77,789 | 46,435 | |||||||||||||
Corporate debt securities | 52,266 | 4,863 | (227 | ) | 56,901 | 19,422 | ||||||||||||||
Debt mutual funds | 7,928 | 43 | — | 7,971 | — | |||||||||||||||
U.S. government agency securities | 4,617 | 5 | (12 | ) | 4,610 | 3,296 | ||||||||||||||
Certificates of deposit and time deposits | 1,356 | — | — | 1,356 | — | |||||||||||||||
Non-U.S. government securities | 589 | — | — | 589 | — | |||||||||||||||
$ | 334,077 | $ | 5,477 | $ | (718 | ) | $ | 338,836 | $ | 91,937 | ||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Marketable securities | $ | 137,144 | $ | 160 | $ | (1 | ) | $ | 137,303 | $ | 2,922 | |||||||||
Long-term marketable securities | 74,452 | 4,527 | (261 | ) | 78,718 | 21,077 | ||||||||||||||
$ | 211,596 | $ | 4,687 | $ | (262 | ) | $ | 216,021 | $ | 23,999 | ||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Marketable securities | $ | 244,213 | $ | 64 | $ | (46 | ) | $ | 244,231 | $ | 54,798 | |||||||||
Long-term marketable securities | 89,864 | 5,413 | (672 | ) | 94,605 | 37,139 | ||||||||||||||
$ | 334,077 | $ | 5,477 | $ | (718 | ) | $ | 338,836 | $ | 91,937 | ||||||||||
December 31, 2018 | ||||||||||||||||||||
Available-for-Sale | ||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
U.S. Treasury securities | $ | 110,969 | $ | 112 | $ | (1,360 | ) | $ | 109,721 | $ | 75,040 | |||||||||
Commercial paper | 86,130 | 13 | (26 | ) | 86,117 | 85,094 | ||||||||||||||
Corporate debt securities | 41,133 | 432 | (1,545 | ) | 40,020 | 24,767 | ||||||||||||||
U.S. government agency securities | 9,646 | 1 | (36 | ) | 9,611 | 7,077 | ||||||||||||||
Certificates of deposit and time deposits | 7,604 | — | — | 7,604 | — | |||||||||||||||
Debt mutual funds | 3,153 | 34 | — | 3,187 | — | |||||||||||||||
Non-U.S. government securities | 376 | — | — | 376 | — | |||||||||||||||
$ | 259,011 | $ | 592 | $ | (2,967 | ) | $ | 256,636 | $ | 191,978 | ||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Marketable securities | $ | 190,100 | $ | 88 | $ | (92 | ) | $ | 190,096 | $ | 140,262 | |||||||||
Long-term marketable securities | 68,911 | 504 | (2,875 | ) | 66,540 | 51,716 | ||||||||||||||
$ | 259,011 | $ | 592 | $ | (2,967 | ) | $ | 256,636 | $ | 191,978 | ||||||||||
December 31, 2020 | ||||||||||||||||||||
Available-for-Sale | ||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
U.S. Treasury securities | $ | 257,132 | $ | 1,330 | $ | (158 | ) | $ | 258,304 | $ | 17,243 | |||||||||
Commercial paper | 254,404 | 10 | (1 | ) | 254,413 | 12,173 | ||||||||||||||
Corporate debt securities | 76,129 | 7,539 | (53 | ) | 83,615 | 39,896 | ||||||||||||||
Debt mutual funds | 8,413 | 152 | — | 8,565 | — | |||||||||||||||
U.S. government agency securities | 4,294 | 46 | (1 | ) | 4,339 | 1,106 | ||||||||||||||
Certificates of deposit and time deposits | 979 | — | — | 979 | — | |||||||||||||||
Non-U.S. government securities | 625 | — | — | 625 | — | |||||||||||||||
$ | 601,976 | $ | 9,077 | $ | (213 | ) | $ | 610,840 | $ | 70,418 | ||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Marketable securities | $ | 522,228 | $ | 92 | $ | (40 | ) | $ | 522,280 | $ | 61,806 | |||||||||
Long-term marketable securities | 79,748 | 8,985 | (173 | ) | 88,560 | 8,612 | ||||||||||||||
$ | 601,976 | $ | 9,077 | $ | (213 | ) | $ | 610,840 | $ | 70,418 | ||||||||||
Cost | Fair Value | |||||||
(in thousands) | ||||||||
Due within one year | $ | 137,144 | $ | 137,303 | ||||
Due after 1 year through 5 years | 15,264 | 15,351 | ||||||
Due after 5 years through 10 years | 14,436 | 14,576 | ||||||
Due after 10 years | 37,999 | 41,903 | ||||||
Total | $ | 204,843 | $ | 209,133 | ||||
Cost | Fair Value | |||||||
(in thousands) | ||||||||
Due within one year | $ | 244,213 | $ | 244,231 | ||||
Due after 1 year through 5 years | 41,459 | 41,377 | ||||||
Due after 5 years through 10 years | 6,085 | 6,434 | ||||||
Due after 10 years | 34,392 | 38,823 | ||||||
Total | $ | 326,149 | $ | 330,865 | ||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Buy Position | Sell Position | Net Total | Buy Position | Sell Position | Net Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Japanese Yen | $ | (29.3 | ) | $ | — | $ | (29.3 | ) | $ | (35.0 | ) | $ | — | $ | (35.0 | ) | ||||||||
Taiwan Dollar | (18.4 | ) | — | (18.4 | ) | (11.2 | ) | — | (11.2 | ) | ||||||||||||||
Korean Won | (10.7 | ) | — | (10.7 | ) | (9.6 | ) | — | (9.6 | ) | ||||||||||||||
British Pound Sterling | (3.8 | ) | — | (3.8 | ) | (1.4 | ) | — | (1.4 | ) | ||||||||||||||
Euro | — | 47.8 | 47.8 | — | 82.2 | 82.2 | ||||||||||||||||||
Singapore Dollar | — | 25.3 | 25.3 | — | 15.7 | 15.7 | ||||||||||||||||||
Philippine Peso | — | 5.2 | 5.2 | — | 5.2 | 5.2 | ||||||||||||||||||
Chinese Yuan | — | 4.4 | 4.4 | — | 2.8 | 2.8 | ||||||||||||||||||
Total | $ | (62.2 | ) | $ | 82.7 | $ | 20.5 | $ | (57.2 | ) | $ | 105.9 | $ | 48.7 | ||||||||||
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||
Buy Position | Sell Position | Net Total | Buy Position | Sell Position | Net Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Japanese Yen | $ | (31.4 | ) | $ | — | $ | (31.4 | ) | $ | (14.1 | ) | $ | — | $ | (14.1 | ) | ||||||||
Taiwan Dollar | (35.1 | ) | — | (35.1 | ) | (27.9 | ) | — | (27.9 | ) | ||||||||||||||
Korean Won | (4.2 | ) | — | (4.2 | ) | (5.3 | ) | — | (5.3 | ) | ||||||||||||||
British Pound Sterling | (1.8 | ) | — | (1.8 | ) | (1.0 | ) | — | (1.0 | ) | ||||||||||||||
Singapore Dollar | — | 61.9 | 61.9 | — | 52.3 | 52.3 | ||||||||||||||||||
Euro | — | 44.9 | 44.9 | — | 43.9 | 43.9 | ||||||||||||||||||
Philippine Peso | — | 3.9 | 3.9 | — | 5.0 | 5.0 | ||||||||||||||||||
Chinese Yuan | — | 2.8 | 2.8 | — | 3.4 | 3.4 | ||||||||||||||||||
Total | $ | (72.5 | ) | $ | 113.5 | $ | 41.0 | $ | (48.3 | ) | $ | 104.6 | $ | 56.3 | ||||||||||
December 31, 2019 | December 31, 2018 | |||||||||
(in thousands) | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||
Foreign exchange contracts | Prepayments | $ | 528 | $ | 79 | |||||
Foreign exchange contracts | Other current liabilities | (203 | ) | (514 | ) | |||||
Total | $ | 325 | $ | (435 | ) | |||||
Balance Sheet Location | December 31, 2021 | December 31, 2020 | ||||||||||
(in thousands) | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign exchange contracts | Prepayments | $ | 92 | $ | 95 | |||||||
Foreign exchange contracts | Other current liabilities | (118 | ) | (504 | ) | |||||||
Total derivatives | $ | (26 | ) | $ | (409 | ) | ||||||
Location of (Gains) Losses Recognized in Statement of Operations | December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign exchange contracts | Other (income) expense, net | $ | 5,960 | $ | 7,386 | $ | (1,133 | ) |
Location of Losses Recognized in Statement of Operations | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||
(in thousands) | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign exchange contracts | Other (income) expense, net | $ | 6,488 | $ | 3,515 | $ | 5,960 |
(1) | The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. |
(2) | For the |
(3) | For the year ended December 31, 2020, net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.6 million. |
(4) | For the year ended December 31, 2019 net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were |
For the Year Ended | ||||
December 31, 2019 | ||||
(in thousands) | ||||
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows | $ | 19,400 | ||
Right-of-use assets obtained in exchange for new lease obligations | 26,739 |
For the Years Ended | ||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||
(in thousands) | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows | $ | 24,593 | $ | 24,136 | $ | 19,400 | ||||||
Right-of-use assets obtained in exchange for new lease obligations | 34,246 | 14,801 | 26,739 |
Operating Lease | ||||
(in thousands) | ||||
2020 | $ | 21,874 | ||
2021 | 17,638 | |||
2022 | 12,944 | |||
2023 | 6,496 | |||
2024 | 5,106 | |||
Thereafter | 8,388 | |||
Total lease payments | 72,446 | |||
Less imputed interest | (7,121 | ) | ||
Total lease liabilities | $ | 65,325 | ||
Operating Lease | ||||
(in thousands) | ||||
2019 | $ | 19,570 | ||
2020 | 18,293 | |||
2021 | 13,578 | |||
2022 | 9,693 | |||
2023 | 5,449 | |||
Thereafter | 9,472 | |||
Total lease payments | $ | 76,055 | ||
Operating Lease | ||||
(in thousands) | ||||
2022 | $ | 22,525 | ||
2023 | 16,187 | |||
2024 | 13,675 | |||
2025 | 10,717 | |||
2026 | 8,553 | |||
Thereafter | 11,188 | |||
Total lease payments | 82,845 | |||
Less imputed interest | (6,690 | ) | ||
Total lease liabilities | $ | 76,155 | ||
December 31, 2019 | December 31, 2018 | |||||||
(in thousands) | ||||||||
Debt p rincipal | $ | 460,000 | $ | 460,000 | ||||
Unamortized discount | 65,313 | 80,019 | ||||||
Net c arrying amount of convertible debt | $ | 394,687 | $ | 379,981 | ||||
December 31, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Debt principal | $ | 116,980 | $ | 459,971 | ||||
Unamortized discount | 8,554 | 49,860 | ||||||
Net carrying amount of convertible debt | $ | 108,426 | $ | 410,111 | ||||
December 31, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Current debt | $ | 19,182 | $ | 33,343 | ||||
Long-term debt | 89,244 | 376,768 | ||||||
Net carrying amount of convertible debt | $ | 108,426 | $ | 410,111 | ||||
For the year ended | ||||||||
December 31, 2019 | December 31, 2018 | |||||||
(in thousands) | ||||||||
Contractual interest expense on the coupon | $ | 5,750 | $ | 5,750 | ||||
Amortization of the discount component and debt issue fees recognized as interest expense | 14,706 | 13,995 | ||||||
Total interest expense on the convertible debt | $ | 20,456 | $ | 19,745 | ||||
For the year s ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Contractual interest expense on the coupon | $ | 3,009 | $ | 5,750 | ||||
Amortization of the discount component and debt issue fees recognized as interest expense | 11,019 | 15,454 | ||||||
Total interest expense on the convertible debt | $ | 14,028 | $ | 21,204 | ||||
Foreign Currency Translation Adjustment | Unrealized Gain s (Losses) on Marketable Securities | Retirement Plans Prior Service Credit | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 31, 2017, net of tax of $0, $1,815, $(932) | $ | 15,919 | $ | 1,362 | $ | 1,495 | $ | 18,776 | ||||||||
Other comprehensive loss before reclassifications, net of tax of $0, $(722), $0 | (28,442 | ) | (2,110 | ) | — | (30,552 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(21), $(71) | — | 1,337 | (245 | ) | 1,092 | |||||||||||
Net current period other comprehensive loss , net of tax of $0, $(743), $(71) | (28,442 | ) | (773 | ) | (245 | ) | (29,460 | ) | ||||||||
Reclassification of tax effects resulting f rom the Tax Reform Act,net of tax of $0, $(691), $(78), respectively (a) | — | 691 | 78 | 769 | ||||||||||||
Reclassification of unrealized gains on equity securities, net of tax of $0, $(902), $0, respectively, (b) | — | (3,125 | ) | — | (3,125 | ) | ||||||||||
Balance at December 31, 2018, net of tax of $0, $(521), $(1,081) | (12,523 | ) | (1,845 | ) | 1,328 | (13,040 | ) | |||||||||
Other comprehensive (loss) income before reclassifications, net of tax of $0, $1,659, $0 | (10,991 | ) | 6,015 | — | (4,976 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(192), $(43) | — | (690 | ) | (148 | ) | (838 | ) | |||||||||
Net current period other comprehensive (loss) income, net of tax of $0, $1,467, $(43) | (10,991 | ) | 5,325 | (148 | ) | (5,814 | ) | |||||||||
Balance at December 31, 2019, net of tax of $0, $946, $(1,124) | $ | (23,514 | ) | $ | 3,480 | $ | 1,180 | $ | (18,854 | ) | ||||||
Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Marketable Securities | Retirement Plans Prior Service Credit | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 31, 2019, net of tax of $0, $946, $(1,124), respectively | $ | (23,514 | ) | $ | 3,480 | $ | 1,180 | $ | (18,854 | ) | ||||||
Other comprehensive income before reclassifications, net of tax of $0, $1,629, $0, respectively | 48,903 | 5,839 | 0 | 54,742 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(665), $(2), respectively | 0 | (2,365 | ) | (7 | ) | (2,372 | ) | |||||||||
Net current period other comprehensive income (loss), net of tax of $0, $964, $(2), respectively | 48,903 | 3,474 | (7 | ) | 52,370 | |||||||||||
Balance at December 31, 2020, net of tax of $0, $1,910, $(1,126), respectively | $ | 25,389 | $ | 6,954 | $ | 1,173 | $ | 33,516 | ||||||||
Other comprehensive loss before reclassifications, net of tax of $0, $(578), $0, respectively | (36,207 | ) | (2,255 | ) | 0 | (38,462 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(277), $(2), respectively | 0 | (995 | ) | (7 | ) | (1,002 | ) | |||||||||
Net current period other comprehensive loss, net of tax of $0, $(855), $(2), respectively | (36,207 | ) | (3,250 | ) | (7 | ) | (39,464 | ) | ||||||||
Balance at December 31, 2021, net of tax of $0, $1,055, $(1,128), respectively | $ | (10,818 | ) | $ | 3,704 | $ | 1,166 | $ | (5,948 | ) | ||||||
Details about Accumulated Other Comprehensive Income Components | For the year ended | Affected Line Item in the Statements of Operations | ||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||||||||||
(in thousands) | ||||||||||||||||
Available-for-sale marketable securities | ||||||||||||||||
Unrealized gains (losses), net of tax of $192, $21, $297 | $ | 690 | $ | (1,337 | ) | $ | 441 | Interest income (expense) | ||||||||
Defined benefit pension and postretirement plans: | ||||||||||||||||
Amortization of prior service benefit, net of tax of $43, $71, $154 | 148 | 245 | 272 | (a) | ||||||||||||
Total reclassifications, net of tax of $235, $92, $451 | $ | 838 | $ | (1,092 | ) | $ | 713 | Net income | ||||||||
Details about Accumulated Other Comprehensive (Loss) Income Components | For the year s ended | Affected Line Item in the Statements of Operations | ||||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||||||||
(in thousands) | ||||||||||||||||
Available-for-sale marketable securities | ||||||||||||||||
Unrealized gains, net of tax of $277, $665, $192, respectively | $ | 995 | $ | 2,365 | $ | 690 | Interest income | |||||||||
Defined benefit pension and postretirement plans: | ||||||||||||||||
Amortization of prior service benefit, net of tax of $2, $2, $43, respectively | 7 | 7 | 148 | (a) | ||||||||||||
Total reclassifications, net of tax of $279, $667, $235, respectively | $ | 1,002 | $ | 2,372 | $ | 838 | Net income | |||||||||
(a) | The amortization of prior service credit is included in the computation of net periodic pension cost and postretirement benefit; see Note P: “Retirement Plans.” |
Industrial Automation | Wireless Test | Semiconductor Test | System Test | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance at December 31, 2017: | ||||||||||||||||||||
Goodwill | $ | 233,519 | $ | 361,819 | $ | 260,540 | $ | 158,699 | $ | 1,014,577 | ||||||||||
Accumulated impairment losses | — | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
233,519 | 7,976 | — | 10,516 | 252,011 | ||||||||||||||||
MiR acquisition | 135,976 | — | — | — | 135,976 | |||||||||||||||
Energid acquisition | 14,394 | — | — | — | 14,394 | |||||||||||||||
Foreign currency translation adjustment | (20,531 | ) | — | — | — | (20,531 | ) | |||||||||||||
Balance at December 31, 2018: | ||||||||||||||||||||
Goodwill | 363,358 | 361,819 | 260,540 | 158,699 | 1,144,416 | |||||||||||||||
Accumulated impairment losses | — | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
363,358 | 7,976 | — | 10,516 | 381,850 | ||||||||||||||||
Lemsys acquisition | — | — | 1,428 | — | 1,428 | |||||||||||||||
Auto G uide acquisition | 41,372 | — | — | — | 41,372 | |||||||||||||||
Foreign currency translation adjustment | (8,247 | ) | — | 28 | — | (8,219 | ) | |||||||||||||
Balance at December 31, 2019: | ||||||||||||||||||||
Goodwill | 396,483 | 361,819 | 261,996 | 158,699 | 1,178,997 | |||||||||||||||
Accumulated impairment losses | — | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
$ | 396,483 | $ | 7,976 | $ | 1,456 | $ | 10,516 | $ | 416,431 | |||||||||||
Industrial Automation | Wireless Test | Semiconductor Test | System Test | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance at December 31, 2019: | ||||||||||||||||||||
Goodwill | $ | 396,483 | $ | 361,819 | $ | 261,996 | $ | 158,699 | $ | 1,178,997 | ||||||||||
Accumulated impairment losses | — | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
396,483 | 7,976 | 1,456 | 10,516 | 416,431 | ||||||||||||||||
AutoGuide acquisition | (149 | ) | — | — | — | (149 | ) | |||||||||||||
Foreign currency translation adjustment | 37,418 | — | 159 | — | 37,577 | |||||||||||||||
Balance at December 31, 2020: | ||||||||||||||||||||
Goodwill | 433,752 | 361,819 | 262,155 | 158,699 | 1,216,425 | |||||||||||||||
Accumulated impairment losses | — | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
433,752 | 7,976 | 1,615 | 10,516 | 453,859 | ||||||||||||||||
Foreign currency translation adjustment | (27,781 | ) | — | (54 | ) | — | (27,835 | ) | ||||||||||||
Balance at December 31, 2021: | ||||||||||||||||||||
Goodwill | 405,971 | 361,819 | 262,101 | 158,699 | 1,188,590 | |||||||||||||||
Accumulated impairment losse s | — | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
$ | 405,971 | $ | 7,976 | $ | 1,561 | $ | 10,516 | $ | 426,024 | |||||||||||
December 31, 2019 | ||||||||||||||||
Gross Carrying Amount (1 ) (2) | Accumulated Amortization (2) | Foreign Currency Translation Adjustment | Net Carrying Amount | |||||||||||||
(in thousands) | ||||||||||||||||
Developed technology | $ | 361,787 | $ | (279,000 | ) | $ | (5,709 | ) | $ | 77,078 | ||||||
Customer relationships | 75,669 | (59,077 | ) | (455 | ) | 16,137 | ||||||||||
Tradenames and trademarks | 70,120 | (36,671 | ) | (1,184 | ) | 32,265 | ||||||||||
Backlog | 260 | (260 | ) | — | — | |||||||||||
Total intangible assets | $ | 507,836 | $ | (375,008 | ) | $ | (7,348 | ) | $ | 125,480 | ||||||
December 31, 2018 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation Adjustment | Net Carrying Amount | |||||||||||||
(in thousands) | ||||||||||||||||
Developed technology | $ | 336,308 | $ | (252,080 | ) | $ | (4,079 | ) | $ | 80,149 | ||||||
Customer relationships | 97,153 | (83,448 | ) | (340 | ) | 13,365 | ||||||||||
Tradenames and trademarks | 64,420 | (31,653 | ) | (799 | ) | 31,968 | ||||||||||
Non-compete agreement | 320 | (320 | ) | — | — | |||||||||||
Backlog | 30 | (30 | ) | — | — | |||||||||||
Total intangible assets | $ | 498,231 | $ | (367,531 | ) | $ | (5,218 | ) | $ | 125,482 | ||||||
December 31, 2021 | ||||||||||||||||
Gross Carrying Amount (1) | Accumulated Amortization (1) | Foreign Currency Translation Adjustment | Net Carrying Amount | |||||||||||||
(in thousands) | ||||||||||||||||
Developed technology | $ | 272,547 | $ | (223,413 | ) | $ | (4,093 | ) | $ | 45,041 | ||||||
Customer relationships | 57,739 | (48,921 | ) | 209 | 9,027 | |||||||||||
Tradenames and trademarks | 59,387 | (37,237 | ) | (583 | ) | 21,567 | ||||||||||
Total intangible assets | $ | 389,673 | $ | (309,571 | ) | $ | (4,467 | ) | $ | 75,635 | ||||||
December 31, 2020 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation Adjustment | Net Carrying Amount | |||||||||||||
(in thousands) | ||||||||||||||||
Developed technology | $ | 272,547 | $ | (210,479 | ) | $ | (1,610 | ) | $ | 60,458 | ||||||
Customer relationships | 66,239 | (54,524 | ) | 305 | 12,020 | |||||||||||
Tradenames and trademarks | 70,120 | (42,344 | ) | 685 | 28,461 | |||||||||||
Total intangible assets | $ | 408,906 | $ | (307,347 | ) | $ | (620 | ) | $ | 100,939 | ||||||
(1) |
In million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. |
Year | Amortization Expense | |||
(in thousands) | ||||
2020 | $ | 30,606 | ||
2021 | 20,593 | |||
2022 | 19,700 | |||
2023 | 19,226 | |||
2024 | 18,921 | |||
Thereafter | 16,434 |
Year | Amortization Expense | |||
(in thousands) | ||||
2022 | $ | 20,081 | ||
2023 | 19,592 | |||
2024 | 19,283 | |||
2025 | 11,546 | |||
2026 | 2,423 | |||
Thereafter | 2,710 |
2019 | 2018 | 2017 | ||||||||||
(in thousands, except per share amounts) | ||||||||||||
Net income for basic and diluted net income per share | $ | 467,468 | $ | 451,779 | $ | 257,692 | ||||||
Weighted average common shares-basic | 170,425 | 187,672 | 198,069 | |||||||||
Effect of dilutive potential common shares: | ||||||||||||
Incremental shares from assumed conversion of convertible notes (1) | 4,909 | 2,749 | 1,298 | |||||||||
Convertible note hedge warrant shares (2) | 2,698 | 485 | 112 | |||||||||
Restricted stock units | 1,236 | 1,385 | 1,800 | |||||||||
Stock options | 178 | 278 | 335 | |||||||||
Employee stock purchase rights | 13 | 36 | 27 | |||||||||
Dilutive potential common shares | 9,034 | 4,933 | 3,572 | |||||||||
Weighted average common shares-diluted | 179,459 | 192,605 | 201,641 | |||||||||
Net income per common share-basic | $ | 2.74 | $ | 2.41 | $ | 1.30 | ||||||
Net income per common share-diluted | $ | 2.60 | $ | 2.35 | $ | 1.28 | ||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands, except per share amounts) | ||||||||||||
Net income for basic and diluted net income per share | $ | 1,014,589 | $ | 784,147 | $ | 467,468 | ||||||
Weighted average common shares-basic | 164,960 | 166,120 | 170,425 | |||||||||
Effect of dilutive potential common shares: | ||||||||||||
Convertible note hedge warrant shares (1) | 9,956 | 6,989 | 2,698 | |||||||||
Incremental shares from assumed conversion of convertible notes (2) | 7,435 | 8,528 | 4,909 | |||||||||
Restricted stock units | 1,180 | 1,264 | 1,236 | |||||||||
Stock options | 86 | 131 | 178 | |||||||||
Employee stock purchase rights | 8 | 10 | 13 | |||||||||
Dilutive potential common shares | 18,665 | 16,922 | 9,034 | |||||||||
Weighted average common shares-diluted | 183,625 | 183,042 | 179,459 | |||||||||
Net income per common share-basic | $ | 6.15 | $ | 4.72 | $ | 2.74 | ||||||
Net income per common share-diluted | $ | 5.53 | $ | 4.28 | $ | 2.60 | ||||||
(1) | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.55, multiplied by 14.6 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. |
(2) | Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of |
2019 | 2018 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in thousands) | ||||||||||||||||
Assets and Obligations | ||||||||||||||||
Change in benefit obligation: | ||||||||||||||||
Projected benefit obligation: | ||||||||||||||||
Beginning of year | $ | 178,237 | $ | 39,146 | $ | 363,026 | $ | 39,353 | ||||||||
Service cost | 1,608 | 751 | 2,196 | 786 | ||||||||||||
Interest cost | 7,189 | 691 | 8,940 | 687 | ||||||||||||
Actuarial loss (gain) | 24,447 | 4,520 | (30,136 | ) | 773 | |||||||||||
Benefits paid | (7,690 | ) | (836 | ) | (14,793 | ) | (741 | ) | ||||||||
Retiree annuity purchase | — | — | (151,341 | ) | — | |||||||||||
Liability loss due to settlement | — | — | 345 | — | ||||||||||||
Non-U.S. currency movement | — | (320 | ) | — | (1,712 | ) | ||||||||||
End of year | 203,791 | 43,952 | 178,237 | 39,146 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets: | ||||||||||||||||
Beginning of year | 144,301 | 1,400 | 324,506 | 1,307 | ||||||||||||
Company contributions | 2,805 | 923 | 2,587 | 822 | ||||||||||||
Actual return on plan assets | 27,516 | 64 | (16,658 | ) | 50 | |||||||||||
Benefits paid | (7,690 | ) | (836 | ) | (14,793 | ) | (741 | ) | ||||||||
Retiree annuity purchase | — | — | (151,341 | ) | — | |||||||||||
Non-U.S. currency movement | — | 35 | — | (38 | ) | |||||||||||
End of year | 166,932 | 1,586 | 144,301 | 1,400 | ||||||||||||
Funded status | $ | (36,859 | ) | $ | (42,366 | ) | $ | (33,936 | ) | $ | (37,746 | ) | ||||
2021 | 2020 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in thousands) | ||||||||||||||||
Assets and Obligations | ||||||||||||||||
Change in benefit obligation: | ||||||||||||||||
Projected benefit obligation: | ||||||||||||||||
Beginning of year | $ | 202,233 | $ | 50,988 | $ | 203,791 | $ | 43,952 | ||||||||
Service cost | 1,784 | 941 | 1,773 | 907 | ||||||||||||
Interest cost | 4,427 | 337 | 5,770 | 516 | ||||||||||||
Actuarial (gain) loss | (6,432 | ) | (2,257 | ) | 24,671 | 2,951 | ||||||||||
Benefits paid | (9,337 | ) | (925 | ) | (9,844 | ) | (1,299 | ) | ||||||||
Retiree annuity purchase | 0 | 0 | (24,379 | ) | 0 | |||||||||||
Liability (gain) loss due to settlement | (204 | ) | 0 | 451 | 0 | |||||||||||
Non-U.S. currency movement | 0 | (3,310 | ) | 0 | 3,961 | |||||||||||
End of year | 192,472 | 45,774 | 202,233 | 50,988 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets: | ||||||||||||||||
Beginning of year | 158,855 | 1,856 | 166,932 | 1,586 | ||||||||||||
Actual return on plan assets | (3,217 | ) | 33 | 23,048 | 67 | |||||||||||
Company contributions | 3,276 | 1,022 | 3,098 | 1,079 | ||||||||||||
Benefits paid | (9,337 | ) | (925 | ) | (9,844 | ) | (988 | ) | ||||||||
Retiree annuity purchase | 0 | 0 | (24,379 | ) | 0 | |||||||||||
Non-U.S. currency movement | 0 | 31 | 0 | 112 | ||||||||||||
End of year | 149,578 | 2,017 | 158,855 | 1,856 | ||||||||||||
Funded status | $ | (42,894 | ) | $ | (43,757 | ) | $ | (43,378 | ) | $ | (49,132 | ) | ||||
2019 | 2018 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in thousands) | ||||||||||||||||
Retirement plans assets | $ | 18,457 | $ | — | $ | 16,883 | $ | — | ||||||||
Accrued employees’ compensation and withholdings | (2,826 | ) | (922 | ) | (2,676 | ) | (852 | ) | ||||||||
Retirement plans liabilities | (52,490 | ) | (41,444 | ) | (48,143 | ) | (36,894 | ) | ||||||||
Funded status | $ | (36,859 | ) | $ | (42,366 | ) | $ | (33,936 | ) | $ | (37,746 | ) | ||||
2019 | 2018 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in thousands) | ||||||||||||||||
Deferred taxes related to prior service cost recognized in other comprehensive income | $ | 560 | $ | — | $ | 560 | $ | — | ||||||||
2021 | 2020 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in thousands) | ||||||||||||||||
Retirement plans assets | $ | 15,110 | $ | — | $ | 17,468 | $ | — | ||||||||
Accrued employees’ compensation and withholdings | (3,288 | ) | (936 | ) | (3,273 | ) | (1,019 | ) | ||||||||
Retirement plans liabilities | (54,716 | ) | (42,821 | ) | (57,573 | ) | (48,113 | ) | ||||||||
Funded status | $ | (42,894 | ) | $ | (43,757 | ) | $ | (43,378 | ) | $ | (49,132 | ) | ||||
2019 | 2018 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in millions) | ||||||||||||||||
Projected benefit obligation | $ | 55.3 | $ | 44.0 | $ | 50.8 | $ | 39.1 | ||||||||
Accumulated benefit obligation | 53.2 | 39.9 | 48.6 | 35.6 | ||||||||||||
Fair value of plan assets | — | 1.6 | — | 1.4 |
2021 | 2020 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in millions) | ||||||||||||||||
Projected benefit obligatio n | $ | 58.0 | $ | 45.8 | $ | 60.8 | $ | 51.0 | ||||||||
Accumulated benefit obligation | 55.7 | 42.5 | 58.5 | 46.5 | ||||||||||||
Fair value of plan assets | — | 2.0 | — | 1.9 |
2019 | 2018 | 2017 | ||||||||||||||||||||||
United States | Foreign | United States | Foreign | United States | Foreign | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Components of Net Periodic Pension Cost (Income): | ||||||||||||||||||||||||
Service cost | $ | 1,608 | $ | 751 | $ | 2,196 | $ | 786 | $ | 2,239 | $ | 818 | ||||||||||||
Interest cost | 7,189 | 691 | 8,940 | 687 | 13,151 | 852 | ||||||||||||||||||
Expected return on plan assets | (6,042 | ) | (29 | ) | (9,049 | ) | (19 | ) | (12,008 | ) | (165 | ) | ||||||||||||
Amortization of prior service cost | — | — | 58 | — | 70 | — | ||||||||||||||||||
Net actuarial loss (gain) | 2,973 | 4,485 | (4,429 | ) | 743 | (6,712 | ) | (310 | ) | |||||||||||||||
Settlement loss | — | — | 345 | — | — | — | ||||||||||||||||||
Total net periodic pension cost (income) | $ | 5,728 | $ | 5,898 | $ | (1,939 | ) | $ | 2,197 | $ | (3,260 | ) | $ | 1,195 | ||||||||||
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||||||||||||||||||||||
Reversal of amortization items: | ||||||||||||||||||||||||
Prior service cost | — | — | (58 | ) | — | (70 | ) | — | ||||||||||||||||
Total recognized in other comprehensive income | — | — | (58 | ) | — | (70 | ) | — | ||||||||||||||||
Total recognized in net periodic pension cost (income)and other comprehensive income | $ | 5,728 | $ | 5,898 | $ | (1,997 | ) | $ | 2,197 | $ | (3,330 | ) | $ | 1,195 | ||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
United States | Foreign | United States | Foreign | United States | Foreign | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Components of Net Periodic Pension Cost (Income): | ||||||||||||||||||||||||
Service cost | $ | 1,784 | $ | 941 | $ | 1,773 | $ | 907 | $ | 1,608 | $ | 751 | ||||||||||||
Interest cost | 4,427 | 337 | 5,770 | 516 | 7,189 | 691 | ||||||||||||||||||
Expected return on plan assets | (3,858 | ) | (67 | ) | (4,840 | ) | (65 | ) | (6,042 | ) | (29 | ) | ||||||||||||
Net actuarial loss (gain) | 643 | (2,223 | ) | 6,463 | 2,949 | 2,973 | 4,485 | |||||||||||||||||
Settlement (gain) loss | (204 | ) | — | 451 | — | — | — | |||||||||||||||||
Total net periodic pension cost (income) | $ | 2,792 | $ | (1,012 | ) | $ | 9,617 | $ | 4,307 | $ | 5,728 | $ | 5,898 | |||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||
United States | Foreign | United States | Foreign | United States | Foreign | |||||||||||||||||||
Discount rate | 4.1 | % | 1.8 | % | 3.4 | % | 1.8 | % | 3.9 | % | 1.8 | % | ||||||||||||
Expected return on plan assets | 4.3 | 2.0 | 4.3 | 1.5 | 4.0 | 2.0 | ||||||||||||||||||
Salary progression rate | 2.5 | 2.5 | 2.3 | 2.7 | 2.6 | 2.7 |
2021 | 2020 | 2019 | ||||||||||||||||||||||
United States | Foreign | United States | Foreign | United States | Foreign | |||||||||||||||||||
Discount rate | 2.2 | % | 0.7 | % | 2.8 | % | 1.1 | % | 4.1 | % | 1.8 | % | ||||||||||||
Expected return on plan assets | 2.4 | 3.5 | 3.0 | 3.8 | 4.3 | 2.0 | ||||||||||||||||||
Salary progression rate | 2.4 | 2.3 | 2.6 | 2.5 | 2.3 | 2.5 |
2019 | 2018 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
Discount rate | 3.0 | % | 1.1 | % | 4.1 | % | 1.8 | % | ||||||||
Salary progression rate | 2.6 | 2.5 | 2.5 | 2.6 |
2021 | 2020 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
Discount rate | 2.6 | % | 1.1 | % | 2.2 | % | 0.7 | % | ||||||||
Salary progression rate | 2.4 | 2.2 | 2.4 | 2.3 |
2019 | 2018 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
Fixed income securities | 94.0 | % | — | % | 94.0 | % | — | % | ||||||||
Equity securities | 5.0 | — | 5.0 | — | ||||||||||||
Other | 1.0 | 100.0 | 1.0 | 100.0 | ||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
2021 | 2020 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
Fixed income securities | 94.0 | % | — | % | 94.0 | % | — | % | ||||||||
Equity securities | 5.0 | — | 5.0 | — | ||||||||||||
Other | 1.0 | 100.0 | 1.0 | 100.0 | ||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
Asset Category: | Policy Index: | Target Allocation | ||||
U.S. corporate fixed income | Barclays U.S. Corporate A or Better Index | 75 | % | |||
Global equity | MSCI World Minimum Volatility Index | 5 | ||||
U.S. government fixed income | Barclays U.S. Long Government Bond Index | 14 | ||||
High yield fixed income | Barclays U.S. Corporate High Yield 2% Issuer Cap Index | 5 | ||||
Cash | Citigroup Three Month U.S. Treasury Bill Index | 1 |
December 31, 2019 | ||||||||||||||||||||||||||||||||
United States | Foreign | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 133,792 | $ | — | $ | 133,792 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
U.S. government securities | — | 23,186 | — | 23,186 | — | — | — | — | ||||||||||||||||||||||||
Global equity | — | 8,344 | — | 8,344 | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | 1,586 | — | 1,586 | ||||||||||||||||||||||||
Cash and cash equivalents | 1,610 | — | — | 1,610 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 1,610 | $ | 165,322 | $ | — | $ | 166,932 | $ | — | $ | 1,586 | $ | — | $ | 1,586 | ||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
United States | Foreign | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 115,424 | $ | — | $ | 115,424 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
U.S. government securities | — | 20,176 | — | 20,176 | — | — | — | — | ||||||||||||||||||||||||
Global equity | — | 7,252 | — | 7,252 | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | 1,400 | — | 1,400 | ||||||||||||||||||||||||
Cash and cash equivalents | 1,449 | — | — | 1,449 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 1,449 | $ | 142,852 | $ | — | $ | 144,301 | $ | — | $ | 1,400 | $ | — | $ | 1,400 | ||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
United States | Foreign | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 119,805 | $ | — | $ | 119,805 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
U.S. government securities | — | 20,847 | — | 20,847 | — | — | — | — | ||||||||||||||||||||||||
Global equity | — | 7,426 | — | 7,426 | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | 2,017 | — | 2,017 | ||||||||||||||||||||||||
Cash and cash equivalents | 1,500 | — | — | 1,500 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 1,500 | $ | 148,078 | $ | — | $ | 149,578 | $ | — | $ | 2,017 | $ | — | $ | 2,017 | ||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||
United States | Foreign | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 127,098 | $ | — | $ | 127,098 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
U.S. government securities | — | 22,250 | — | 22,250 | — | — | — | — | ||||||||||||||||||||||||
Global equity | — | 7,925 | — | 7,925 | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | 1,856 | — | 1,856 | ||||||||||||||||||||||||
Cash and cash equivalents | 1,582 | — | — | 1,582 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 1,582 | $ | 157,273 | $ | — | $ | 158,855 | $ | — | $ | 1,856 | $ | — | $ | 1,856 | ||||||||||||||||
Group Annuity Insurance Contracts | ||||
(in thousands) | ||||
Balance at December 31, 2017 | $ | 3,166 | ||
Transfer out of level 3 | (2,658 | ) | ||
Purchase etiree annuitys of rinsurance ontracts | (512 | ) | ||
Interest and market value adjustments | 59 | |||
Benefits paid | (40 | ) | ||
Other | (15 | ) | ||
Balance at December 31, 2018 | $ | — | ||
United States | Foreign | |||||||
(in thousands) | ||||||||
2020 | $ | 8,027 | $ | 1,237 | ||||
2021 | 8,416 | 985 | ||||||
2022 | 9,163 | 982 | ||||||
2023 | 9,785 | 1,258 | ||||||
2024 | 10,558 | 1,098 | ||||||
2025-2029 | 59,665 | 6,129 |
United States | Foreign | |||||||
(in thousands) | ||||||||
2022 | $ | 9,784 | $ | 982 | ||||
2023 | 9,386 | 1,268 | ||||||
2024 | 9,771 | 1,119 | ||||||
2025 | 10,333 | 1,074 | ||||||
2026 | 10,594 | 1,192 | ||||||
2027-2030 | 54,616 | 8,123 |
2019 | 2018 | |||||||
(in thousands) | ||||||||
Assets and Obligations | ||||||||
Change in benefit obligation: | ||||||||
Projected benefit obligation: | ||||||||
Beginning of year | $ | 9,256 | $ | 6,177 | ||||
Service cost | 41 | 39 | ||||||
Interest cost | 347 | 196 | ||||||
Actuarial loss | 717 | 25 | ||||||
Benefits paid | (1,358 | ) | (889 | ) | ||||
Special termination benefits | — | 3,708 | ||||||
End of year | 9,003 | 9,256 | ||||||
Change in plan assets: | ||||||||
Fair value of plan assets: | ||||||||
Beginning of year | — | — | ||||||
Company contributions | 1,358 | 889 | ||||||
Benefits paid | (1,358 | ) | (889 | ) | ||||
End of year | — | — | ||||||
Funded status | $ | (9,003 | ) | $ | (9,256 | ) | ||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Assets and Obligations | ||||||||
Change in benefit obligation: | ||||||||
Projected benefit obligation: | ||||||||
Beginning of year | $ | 8,515 | $ | 9,003 | ||||
Service cost | 64 | 57 | ||||||
Interest cost | 170 | 240 | ||||||
Actuarial (gain) loss | (433 | ) | 421 | |||||
Benefits paid | (1,107 | ) | (1,205 | ) | ||||
End of year | 7,210 | 8,515 | ||||||
Change in plan assets: | ||||||||
Fair value of plan assets: | ||||||||
Beginning of year | 0 | — | ||||||
Company contributions | 1,107 | 1,205 | ||||||
Benefits paid | (1,107 | ) | (1,205 | ) | ||||
End of year | 0 | — | ||||||
Funded status | $ | (7,210 | ) | $ | (8,515 | ) | ||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Accrued employees’ compensation and withholdings | $ | (1,231 | ) | $ | (1,310 | ) | ||
Retirement plans liability | (7,772 | ) | (7,946 | ) | ||||
Funded status | $ | (9,003 | ) | $ | (9,256 | ) | ||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Accrued employees’ compensation and withholdings | $ | (930 | ) | $ | (1,161 | ) | ||
Retirement plans liability | (6,280 | ) | (7,354 | ) | ||||
Funded status | $ | (7,210 | ) | $ | (8,515 | ) | ||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Prior service credit, before tax | $ | (58 | ) | $ | (249 | ) | ||
Deferred taxes | (1,684 | ) | (1,641 | ) | ||||
Total recognized in other comprehensive income, net of tax | $ | (1,742 | ) | $ | (1,890 | ) | ||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Prior service credit, before tax | $ | (40 | ) | $ | (49 | ) | ||
Deferred taxes | (1,688 | ) | (1,686 | ) | ||||
Total recognized in other comprehensive income (loss), net of tax | $ | (1,728 | ) | $ | (1,735 | ) | ||
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Components of Net Periodic Postretirement Benefit Cost (income): | ||||||||||||
Service cost | $ | 41 | $ | 39 | $ | 34 | ||||||
Interest cost | 347 | 196 | 201 | |||||||||
Amortization of prior service credit | (191 | ) | (373 | ) | (496 | ) | ||||||
Net actuarial loss | 717 | 25 | 398 | |||||||||
Special termination benefits | — | 3,708 | 591 | |||||||||
Total net periodic postretirement benefit cost | 914 | 3,595 | 728 | |||||||||
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||||||||||
Prior service cost | — | — | — | |||||||||
Reversal of amortization items: | ||||||||||||
Prior service credit | 191 | 373 | 496 | |||||||||
Total recognized in other comprehensive income | 191 | 373 | 496 | |||||||||
Total recognized in net periodic postretirement cost and other comprehensive income | $ | 1,105 | $ | 3,968 | $ | 1,224 | ||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Components of Net Periodic Postretirement Benefit (Income) Cost: | ||||||||||||
Service cost | $ | 64 | $ | 57 | $ | 41 | ||||||
Interest cost | 170 | 240 | 347 | |||||||||
Amortization of prior service credit | (9 | ) | (9 | ) | (191 | ) | ||||||
Net actuarial (gain) loss | (433 | ) | 421 | 717 | ||||||||
Total net periodic postretirement benefit (income) cost | (208 | ) | 709 | 914 | ||||||||
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||||||||||
Reversal of amortization items: | ||||||||||||
Prior service credit | 9 | 9 | 191 | |||||||||
Total recognized in net periodic postretirement (income) cost and other comprehensive income | $ | (199 | ) | $ | 718 | $ | 1,105 | |||||
2019 | 2018 | 2017 | ||||||||||
Discount rate | 4.0 | % | 3.4 | % | 3.9 | % | ||||||
Initial health care cost trend rate | 7.5 | 7.9 | 7.3 | |||||||||
Ultimate health care cost trend rate | 4.5 | 4.5 | 5.0 | |||||||||
Year in which ultimate health care cost trend rate is reached | 2026 | 2026 | 2023 |
2021 | 2020 | 2019 | ||||||||||
Discount rate | 2.2 | % | 3.0 | % | 4.0 | % | ||||||
Initial health care cost trend rate | 7.3 | 7.1 | 7.5 | |||||||||
Ultimate health care cost trend rate | 4.5 | 4.5 | 4.5 | |||||||||
Year in which ultimate health care cost trend rate is reached | 2029 | 2026 | 2026 |
2019 | 2018 | 2017 | ||||||||||
Discount rate | 3.0 | % | 4.0 | % | 3.4 | % | ||||||
Initial medical trend | 7.1 | 7.5 | 7.9 | |||||||||
Ultimate health care trend | 4.5 | 4.5 | 4.5 | |||||||||
Medical cost trend rate decrease to ultimate rate in year | 2026 | 2026 | 2026 |
1 Percentage Point Increase | 1 Percentage Point Decrease | |||||||
(in thousands) | ||||||||
Effect on total service and interest cost components | $ | 6 | $ | (6 | ) | |||
Effect on postretirement benefit obligations | 139 | (133 | ) |
2021 | 2020 | 2019 | ||||||||||
Discount rate | 2.6 | % | 2.2 | % | 3.0 | % | ||||||
Initial medical trend | 7.3 | 7.3 | 7.1 | |||||||||
Ultimate health care trend | 4.5 | 4.5 | 4.5 | |||||||||
Medical cost trend rate decrease to ultimate rate in year | 2029 | 2029 | 2026 |
Benefit Payments | ||||
(in thousands) | ||||
2020 | $ | 1,231 | ||
2021 | 1,171 | |||
2022 | 958 | |||
2023 | 789 | |||
2024 | 662 | |||
2025-2029 | 1,965 |
Benefit Payments | ||||
(in thousands) | ||||
2022 | $ | 930 | ||
2023 | 774 | |||
2024 | 641 | |||
2025 | 528 | |||
2026 | 419 | |||
2027-2030 | 1,408 |
2021 | 2020 | 2019 | ||||||||||
Risk-free interest rate | 0.2 | % | 1.5 | % | 2.6 | % | ||||||
Teradyne volatility-historical | 43.9 | % | 34.9 | % | 31.9 | % | ||||||
NYSE Composite Index volatility-historical | 22.9 | % | 11.4 | % | 11.9 | % | ||||||
Dividend yield | 0.4 | % | 0.6 | % | 1.0 | % |
2021 | 2020 | 2019 | ||||||||||
Expected life (years) | 5.0 | 5.0 | 5.0 | |||||||||
Risk-free interest rate | 0.4 | % | 1.5 | % | 2.5 | % | ||||||
Volatility-historical | 37.8 | % | 32.0 | % | 30.1 | % | ||||||
Dividend yield | 0.4 | % | 0.5 | % | 1.0 | % |
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Restricted Stock Units: | ||||||||||||
Non-vested at January 1 | 1,789 | 2,269 | 2,454 | |||||||||
Awarded | 447 | 616 | 1,139 | |||||||||
Vested | (749 | ) | (1,028 | ) | (1,237 | ) | ||||||
Forfeited | (70 | ) | (68 | ) | (87 | ) | ||||||
Non-vested at December 31 | 1,417 | 1,789 | 2,269 | |||||||||
Stock Options: | ||||||||||||
Outstanding at January 1 | 216 | 319 | 506 | |||||||||
Granted | 34 | 56 | 102 | |||||||||
Exercised | (78 | ) | (159 | ) | (280 | ) | ||||||
Forfeited | (1 | ) | — | (7 | ) | |||||||
Expired | — | — | (2 | ) | ||||||||
Outstanding at December 31 | 171 | 216 | 319 | |||||||||
Vested and expected to vest at December 31 | 171 | 216 | 319 | |||||||||
Exercisable at December 31 | 30 | 27 | 85 | |||||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Shares available: | ||||||||||||
Available for grant at January 1 | 6,123 | 6,727 | 7,874 | |||||||||
Options granted | (34 | ) | (56 | ) | (102 | ) | ||||||
Options forfeited | 1 | — | 7 | |||||||||
Restricted stock units awarded | (447 | ) | (616 | ) | (1,139 | ) | ||||||
Restricted stock units forfeited | 70 | 68 | 87 | |||||||||
Available for grant at December 31 | 5,713 | 6,123 | 6,727 | |||||||||
2021 | 2020 | 2019 | ||||||||||
Non-vested at January 1 | $ | 47.84 | $ | 35.58 | $ | 29.22 | ||||||
Awarded | 115.51 | 72.76 | 39.08 | |||||||||
Vested | 43.99 | 31.53 | 23.59 | |||||||||
Forfeited | 65.52 | 45.36 | 35.60 | |||||||||
Non-vested at December 31 | $ | 67.97 | $ | 47.84 | $ | 35.58 |
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Vested | $ | 101,679 | $ | 71,582 | $ | 46,110 | ||||||
Outstanding | 231,763 | 214,509 | 154,752 | |||||||||
Expected to vest | 231,246 | 210,301 | 152,374 |
2021 | 2020 | 2019 | ||||||||||
Outstanding | 0.89 | 0.96 | 1.02 | |||||||||
Expected to vest | 0.89 | 0.96 | 1.02 |
2021 | ||||
Outstanding at January 1 | $ | 45.59 | ||
Options granted | 113.48 | |||
Options exercised | 39.68 | |||
Options forfeited | 0— | |||
Options cancelled | 2.67 | |||
Outstanding at December 31 | 62.13 | |||
Exercisable at December 31 | 34.65 |
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Exercised | $ | 6,345 | $ | 9,682 | $ | 9,232 | ||||||
Outstanding | 17,356 | 16,083 | 12,218 | |||||||||
Vested and expected to vest | 13,500 | 13,499 | 7,701 | |||||||||
Exercisable | 3,856 | 2,584 | 4,517 |
2021 | 2020 | 2019 | ||||||||||
Outstanding | 4.4 | 4.6 | 4.2 | |||||||||
Vested and expected to vest | 4.8 | 4.9 | 5.0 | |||||||||
Exercisable | 2.5 | 2.5 | 2.1 |
2019 | 2018 | 2017 | ||||||||||
Risk-free interest rate | 2.6 | % | 2.2 | % | 1.5 | % | ||||||
Teradyne volatility-historical | 31.9 | % | 26.8 | % | 26.6 | % | ||||||
NYSE Composite Index volatility-historical | 11.9 | % | 12.4 | % | 13.4 | % | ||||||
Dividend yield | 1.0 | % | 0.8 | % | 1.0 | % |
2019 | 2018 | 2017 | ||||||||||
Expected life (years) | 5.0 | 5.0 | 5.0 | |||||||||
Risk-free interest rate | 2.5 | % | 2.4 | % | 2.0 | % | ||||||
Volatility-historical | 30.1 | % | 26.4 | % | 27.8 | % | ||||||
Dividend yield | 1.00 | % | 0.80 | % | 1.00 | % |
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Restricted Stock Units: | ||||||||||||
Non-vested at January 1 | 2,454 | 3,174 | 3,778 | |||||||||
Awarded | 1,139 | 790 | 939 | |||||||||
Vested | (1,237 | ) | (1,382 | ) | (1,434 | ) | ||||||
Forfeited | (87 | ) | (128 | ) | (109 | ) | ||||||
Non-vested at December 31 | 2,269 | 2,454 | 3,174 | |||||||||
Stock Options: | ||||||||||||
Outstanding at January 1 | 506 | 531 | 926 | |||||||||
Granted | 102 | 69 | 111 | |||||||||
Exercised | (280 | ) | (94 | ) | (501 | ) | ||||||
Forfeited | (7 | ) | — | — | ||||||||
Expired | (2 | ) | — | (5 | ) | |||||||
Outstanding at December 31 | 319 | 506 | 531 | |||||||||
Vested and expected to vest at December 31 | 319 | 506 | 531 | |||||||||
Exercisable at December 31 | 85 | 256 | 233 | |||||||||
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Shares available: | ||||||||||||
Available for grant at January 1 | 7,874 | 8,605 | 9,546 | |||||||||
Options granted | (102 | ) | (69 | ) | (111 | ) | ||||||
Options forfeited | 7 | — | — | |||||||||
Restricted stock units awarded | (1,139 | ) | (790 | ) | (939 | ) | ||||||
Restricted stock units forfeited | 87 | 128 | 109 | |||||||||
Available for grant at December 31 | 6,727 | 7,874 | 8,605 | |||||||||
2019 | 2018 | 2017 | ||||||||||
Non-vested at January 1 | $ | 29.22 | $ | 21.71 | $ | 18.27 | ||||||
Awarded | 39.08 | 45.99 | 28.91 | |||||||||
Vested | 23.59 | 20.20 | 17.90 | |||||||||
Forfeited | 35.60 | 24.67 | 20.35 | |||||||||
Non-vested at December 31 | $ | 35.58 | $ | 29.22 | $ | 21.71 |
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Vested | $ | 46,110 | $ | 63,688 | $ | 40,649 | ||||||
Outstanding | 154,752 | 77,015 | 132,875 | |||||||||
Expected to vest | 152,374 | 77,187 | 130,594 |
2019 | 2018 | 2017 | ||||||||||
Outstanding | 1.02 | 0.92 | 1.00 | |||||||||
Expected to vest | 1.02 | 0.91 | 0.99 |
2019 | ||||
Outstanding at January 1 | $ | 19.06 | ||
Options granted | 37.95 | |||
Options exercised | 13.20 | |||
Options forfeited | 36.75 | |||
Options cancelled | 1.48 | |||
Outstanding at December 31 | 29.91 | |||
Exercisable at December 31 | 14.97 |
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Exercised | $ | 9,232 | $ | 2,960 | $ | 8,035 | ||||||
Outstanding | 12,218 | 7,359 | 14,831 | |||||||||
Vested and expected to vest | 7,701 | 7,359 | 14,831 | |||||||||
Exercisable | 4,517 | 5,905 | 9,076 |
2019 | 2018 | 2017 | ||||||||||
Outstanding | 4.2 | 3.6 | 4.1 | |||||||||
Vested and expected to vest | 5.0 | 3.6 | 4.1 | |||||||||
Exercisable | 2.1 | 2.4 | 2.8 |
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Cost of revenues | $ | 3,480 | $ | 3,129 | $ | 3,212 | ||||||
Engineering and development | 9,913 | 9,181 | 9,370 | |||||||||
Selling and administrative | 24,504 | 21,267 | 21,515 | |||||||||
Stock-based compensation | 37,897 | 33,577 | 34,097 | |||||||||
Income tax benefit | (8,360 | ) | (12,036 | ) | (10,462 | ) | ||||||
Total stock-based compensation expense after income taxes | $ | 29,537 | $ | 21,541 | $ | 23,635 | ||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Cost of revenues | $ | 4,196 | $ | 4,227 | $ | 3,480 | ||||||
Engineering and development | 9,783 | 12,039 | 9,913 | |||||||||
Selling and administrativ e | 31,664 | 28,640 | 24,504 | |||||||||
Stock-based compensation | 45,643 | 44,906 | 37,897 | |||||||||
Income tax benefit | (14,389 | ) | (13,060 | ) | (8,360 | ) | ||||||
Total stock-based compensation expense after income taxes | $ | 31,254 | $ | 31,846 | $ | 29,537 | ||||||
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Income before income taxes | ||||||||||||
U.S. | $ | 192,442 | $ | 189,691 | $ | 76,699 | ||||||
Non-U.S. | 333,330 | 278,110 | 447,713 | |||||||||
$ | 525,772 | $ | 467,801 | $ | 524,412 | |||||||
Provision (benefit) for income taxes | ||||||||||||
Current: | ||||||||||||
U.S. Federal | $ | 19,297 | $ | (59,122 | ) | $ | 162,679 | |||||
Non-U.S. | 52,810 | 45,083 | 64,313 | |||||||||
State | (4,347 | ) | 1,721 | 2,623 | ||||||||
67,760 | (12,318 | ) | 229,615 | |||||||||
Deferred: | ||||||||||||
U.S. Federal | (4,522 | ) | 29,252 | 43,687 | ||||||||
Non-U.S. | (8,007 | ) | (1,243 | ) | (6,476 | ) | ||||||
State | 3,073 | 331 | (106 | ) | ||||||||
(9,456 | ) | 28,340 | 37,105 | |||||||||
Total provision for income taxes | $ | 58,304 | $ | 16,022 | $ | 266,720 | ||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Income before income taxes: | ||||||||||||
U.S. | $ | 403,451 | $ | 312,153 | $ | 192,442 | ||||||
Non-U.S. | 757,504 | 588,862 | 333,330 | |||||||||
$ | 1,160,955 | $ | 901,015 | $ | 525,772 | |||||||
Provision (benefit) for income taxes: | ||||||||||||
Current: | ||||||||||||
U.S. Federal | $ | 58,218 | $ | 58,678 | $ | 19,297 | ||||||
Non-U.S. | 105,153 | 75,193 | 52,810 | |||||||||
State | 300 | (1,315 | ) | (4,347 | ) | |||||||
163,671 | 132,556 | 67,760 | ||||||||||
Deferred: | ||||||||||||
U.S. Federal | (15,106 | ) | (12,604 | ) | (4,522 | ) | ||||||
Non-U.S. | (4,300 | ) | (5,127 | ) | (8,007 | ) | ||||||
State | 2,101 | 2,043 | 3,073 | |||||||||
(17,305 | ) | (15,688 | ) | (9,456 | ) | |||||||
Total provision for income taxes: | $ | 146,366 | $ | 116,868 | $ | 58,304 | ||||||
2019 | 2018 | 2017 | ||||||||||
U.S. statutory federal tax rate | 21.0 | % | 21.0 | % | 35.0 | % | ||||||
U.S. global intangible low-taxed income | 6.2 | 0.3 | — | |||||||||
U.S. transition tax | 1.9 | (10.5 | ) | 28.7 | ||||||||
State income taxes, net of federal tax benefit | 0.5 | 0.1 | (0.4 | ) | ||||||||
Foreign tax credits | (5.9 | ) | (2.2 | ) | (2.2 | ) | ||||||
Uncertain tax positions | (4.3 | ) | 1.0 | 1.7 | ||||||||
Foreign taxes | (4.0 | ) | (2.0 | ) | (16.3 | ) | ||||||
U.S. foreign derived intangible income | (2.6 | ) | (1.8 | ) | — | |||||||
U.S. research and development credit | (1.8 | ) | (2.2 | ) | (1.6 | ) | ||||||
Equity compensation | (0.7 | ) | (1.2 | ) | (0.8 | ) | ||||||
Impact of rate change on deferred taxes | — | 0.3 | 6.9 | |||||||||
Domestic production activities deduction | — | — | (0.3 | ) | ||||||||
Other, net | 0.8 | 0.6 | 0.2 | |||||||||
11.1 | % | 3.4 | % | 50.9 | % | |||||||
2021 | 2020 | 2019 | ||||||||||
U.S. statutory federal tax rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||
U.S. global intangible low-taxed income | 0.6 | 2.1 | 1.8 | |||||||||
State income taxes, net of federal tax benefit | 0.2 | 0.3 | 0.5 | |||||||||
Foreign taxes | (4.5 | ) | (5.6 | ) | (4.0 | ) | ||||||
U.S. foreign derived intangible income | (2.3 | ) | (2.2 | ) | (2.6 | ) | ||||||
U.S. research and development credit | (1.4 | ) | (1.3 | ) | (1.8 | ) | ||||||
Equity compensation | (0.9 | ) | (0.6 | ) | (0.7 | ) | ||||||
Foreign tax credits | (0.5 | ) | (1.2 | ) | (1.6 | ) | ||||||
Uncertain tax positions | (0.4 | ) | (0.1 | ) | (4.3 | ) | ||||||
U.S. transition tax | — | — | 1.9 | |||||||||
Other, net | 0.8 | 0.6 | 0.9 | |||||||||
12.6 | % | 13.0 | % | 11.1 | % | |||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Deferred tax assets | ||||||||
Tax credits | $ | 79,480 | $ | 69,091 | ||||
Accruals | 25,424 | 23,449 | ||||||
Pension liabilities | 24,459 | 20,826 | ||||||
Inventory valuations | 18,572 | 18,514 | ||||||
Deferred revenue | 7,622 | 9,130 | ||||||
Equity compensation | 7,042 | 7,190 | ||||||
Vacation accrual | 4,768 | 4,772 | ||||||
Investment impairment | 3,292 | — | ||||||
Net operating loss carryforwards | 2,705 | 3,658 | ||||||
Marketable s ecurities | — | 962 | ||||||
Other | 1,472 | 685 | ||||||
Gross deferred tax assets | 174,836 | 158,277 | ||||||
Less: valuation allowance | (77,177 | ) | (69,852 | ) | ||||
Total deferred tax assets | $ | 97,659 | $ | 88,425 | ||||
Deferred tax liabilities: | ||||||||
Depreciation | $ | (18,238 | ) | $ | (14,028 | ) | ||
Intangible assets | (16,705 | ) | (24,211 | ) | ||||
Marketable securities | (1,601 | ) | — | |||||
Total deferred tax liabilities | $ | (36,544 | ) | $ | (38,239 | ) | ||
Net deferred assets | $ | 61,115 | $ | 50,186 | ||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Deferred tax assets: | ||||||||
Tax credits | $ | 98,378 | $ | 87,595 | ||||
Accruals | 41,459 | 33,156 | ||||||
Pension liabilities | 28,722 | 28,348 | ||||||
Inventory valuations | 20,991 | 18,427 | ||||||
Lease liability | 16,484 | 12,627 | ||||||
Deferred revenue | 11,164 | 9,235 | ||||||
Equity compensation | 6,630 | 6,543 | ||||||
Vacation accrual | 6,050 | 5,890 | ||||||
Investment impairment | 3,292 | 3,292 | ||||||
Net operating loss carryforwards | 1,721 | 1,823 | ||||||
Other | 774 | 626 | ||||||
Gross deferred tax assets | 235,665 | 207,562 | ||||||
Less: valuation allowance | (97,170 | ) | (84,962 | ) | ||||
Total deferred tax assets | $ | 138,495 | $ | 122,600 | ||||
Deferred tax liabilities: | ||||||||
Right of use assets | $ | (14,738 | ) | $ | (10,688 | ) | ||
Depreciation | (10,691 | ) | (14,525 | ) | ||||
Intangible assets | (8,531 | ) | (12,726 | ) | ||||
Contingent consideration | (5,214 | ) | (3,515 | ) | ||||
Marketable securities | (3,220 | ) | (3,344 | ) | ||||
Other | — | (710 | ) | |||||
Total deferred tax liabilities | $ | (42,394 | ) | $ | (45,508 | ) | ||
Net deferred assets | $ | 96,101 | $ | 77,092 | ||||
State Operating Loss Carryforwards | Federal Operating Loss Carryforwards | Foreign Operating Loss Carryforwards | ||||||||||
( in )t housands | ||||||||||||
2020 | $ | 269 | $ | — | $ | — | ||||||
2021 | 2,141 | — | — | |||||||||
2022 | 4,934 | — | — | |||||||||
2023 | 4,342 | — | — | |||||||||
2024 | 1,498 | — | — | |||||||||
2025-2029 | 7,673 | — | — | |||||||||
2030-2034 | 4,329 | — | 15 | |||||||||
Beyond 2034 | 2,185 | 554 | 74 | |||||||||
Non-expiring | 1,357 | — | 4,207 | |||||||||
Total | $ | 28,728 | $ | 554 | $ | 4,296 | ||||||
State Operating Loss Carryforwards | Foreign Operating Loss Carryforwards | |||||||
(in thousands) | ||||||||
2022 | $ | 144 | $ | 53 | ||||
2023 | 208 | — | ||||||
2024 | 51 | — | ||||||
2025 | 4 | — | ||||||
2026 | 0 | — | ||||||
2027-2031 | 361 | 173 | ||||||
2032-2036 | 58 | 13 | ||||||
Beyond 2036 | 22 | — | ||||||
Non-expiring | 13 | 621 | ||||||
Total | $ | 861 | $ | 860 | ||||
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance, as of January 1 | $ | 43,395 | $ | 36,263 | $ | 38,958 | ||||||
Additions: | ||||||||||||
Tax positions for current year | 1,322 | 4,716 | 8,208 | |||||||||
Tax positions for prior years | 8,043 | 2,626 | 199 | |||||||||
Reductions: | ||||||||||||
Tax positions for prior years | (31,397 | ) | (153 | ) | (10,573 | ) | ||||||
Expiration of statutes | (183 | ) | (57 | ) | (325 | ) | ||||||
Settlements with tax authorities | — | — | (204 | ) | ||||||||
Ending balance as of December 31 | $ | 21,180 | $ | 43,395 | $ | 36,263 | ||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance as of January 1 | $ | 17,903 | $ | 21,180 | $ | 43,395 | ||||||
Additions: | ||||||||||||
Tax positions for current year | 1,417 | 1,082 | 1,322 | |||||||||
Tax positions for prior years | 30 | 66 | 8,043 | |||||||||
Reductions: | ||||||||||||
Tax positions for prior years | (1,639 | ) | (2,989 | ) | (31,397 | ) | ||||||
Expiration of statutes | (3,246 | ) | (1,436 | ) | (183 | ) | ||||||
Ending balance as of December 31 | $ | 14,465 | $ | 17,903 | $ | 21,180 | ||||||
Semiconductor Test | Industrial Automation | System Test | Wireless Test | Corporate And Other | Consolidated | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||
Revenues | $ | 1,552,571 | $ | 298,139 | $ | 287,455 | $ | 157,315 | $ | (515 | ) | $ | 2,294,965 | |||||||||||
Income (loss) before taxes (1)(2) | 416,973 | (5,916 | ) | 93,543 | 35,585 | (14,413 | ) | 525,772 | ||||||||||||||||
Total assets (3) | 784,808 | 671,559 | 131,428 | 97,299 | 1,101,920 | 2,787,014 | ||||||||||||||||||
Property additions | 112,145 | 9,076 | 3,059 | 10,362 | — | 134,642 | ||||||||||||||||||
Depreciation and amortization expense | 59,197 | 40,904 | 5,518 | 5,365 | 9,671 | 120,655 | ||||||||||||||||||
2018 | ||||||||||||||||||||||||
Revenues | $ | 1,492,417 | $ | 261,452 | $ | 216,132 | $ | 132,006 | $ | (1,205 | ) | $ | 2,100,802 | |||||||||||
Income (loss) before taxes (1)(2) | 397,645 | 7,670 | 48,857 | 29,052 | (15,423 | ) | 467,801 | |||||||||||||||||
Total assets (3) | 669,452 | 607,502 | 88,098 | 77,570 | 1,263,984 | 2,706,606 | ||||||||||||||||||
Property additions | 94,496 | 11,188 | 3,469 | 5,226 | — | 114,379 | ||||||||||||||||||
Depreciation and amortization expense | 58,095 | 36,755 | 6,430 | 5,328 | 6,616 | 113,224 | ||||||||||||||||||
2017 | ||||||||||||||||||||||||
Revenues | $ | 1,662,549 | $ | 170,056 | $ | 192,135 | $ | 111,866 | $ | — | $ | 2,136,606 | ||||||||||||
Income (loss) before taxes (1)(2) | 491,361 | 8,763 | 10,305 | 17,350 | (3,368 | ) | 524,411 | |||||||||||||||||
Total assets (3) | 597,480 | 368,037 | 97,018 | 59,912 | 1,987,098 | 3,109,545 | ||||||||||||||||||
Property additions | 87,920 | 7,044 | 5,976 | 4,435 | — | 105,375 | ||||||||||||||||||
Depreciation and amortization expense | 58,901 | 25,711 | 6,646 | 5,392 | 11,425 | 108,075 |
Semiconductor Test | System Test | Industrial Automation | Wireless Test | Corporate and Other | Consolidated | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||
Revenues | $ | 2,642,342 | $ | 467,739 | $ | 375,905 | $ | 216,895 | $ | — | $ | 3,702,881 | ||||||||||||
Income (loss) before taxes (1)(2) | 976,988 | 163,064 | (8,167 | ) | 83,543 | (54,473 | ) | 1,160,955 | ||||||||||||||||
Total assets (3) | 1,245,596 | 170,954 | 701,196 | 107,513 | 1,584,166 | 3,809,425 | ||||||||||||||||||
Property additions | 115,618 | 3,905 | 9,821 | 3,128 | — | 132,472 | ||||||||||||||||||
Depreciation and amortization expense | 75,982 | 3,156 | 27,336 | 6,055 | 12,956 | 125,485 | ||||||||||||||||||
2020 | ||||||||||||||||||||||||
Revenues | $ | 2,259,597 | $ | 409,729 | $ | 279,731 | $ | 173,016 | $ | (604 | ) | $ | 3,121,469 | |||||||||||
Income (loss) before taxes (1)(2) | 739,695 | 152,092 | (24,019 | ) | 41,950 | (8,703 | ) | 901,015 | ||||||||||||||||
Total assets (3) | 1,070,378 | 138,295 | 712,936 | 106,273 | 1,624,464 | 3,652,346 | ||||||||||||||||||
Property additions | 168,055 | 3,092 | 8,899 | 4,931 | — | 184,977 | ||||||||||||||||||
Depreciation and amortization expense | 64,998 | 3,426 | 36,242 | 6,258 | 15,819 | 126,743 | ||||||||||||||||||
2019 | ||||||||||||||||||||||||
Revenues | $ | 1,552,571 | $ | 287,455 | $ | 298,139 | $ | 157,315 | $ | (515 | ) | $ | 2,294,965 | |||||||||||
Income (loss) before taxes (1)(2) | 416,973 | 93,543 | (5,916 | ) | 35,585 | (14,413 | ) | 525,772 | ||||||||||||||||
Total assets (3) | 784,808 | 131,428 | 671,559 | 97,299 | 1,101,920 | 2,787,014 | ||||||||||||||||||
Property additions | 112,145 | 3,059 | 9,076 | 10,362 | — | 134,642 | ||||||||||||||||||
Depreciation and amortization expense | 59,197 | 5,518 | 40,904 | 5,365 | 9,671 | 120,655 |
(1) | Included in Corporate and Other are: loss on convertible debt conversions, contingent consideration adjustments, investment impairment, interest income, interest expense, pension and postretirement |
(2) | Included in income (loss) before taxes are charges and credits related to restructuring and other, loss on convertible debt conversions and inventory charges. |
(3) | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
For the Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Semiconductor Test: | ||||||||||||
Cost of revenues—inventory charge | $ | 8,731 | $ | 6,822 | $ | 4,606 | ||||||
Restructuring and other—employee severance | 1,277 | 8,429 | 1,779 | |||||||||
Restructuring and other—impairment of fixed assets | — | — | 1,124 | |||||||||
Industrial Automation: | ||||||||||||
Restructuring and other—employee severance | $ | 796 | $ | — | $ | 1,414 | ||||||
Restructuring and other—acquisition related expenses and compensation | 741 | 1,163 | — | |||||||||
Cost of revenues—inventory charge | 508 | 680 | — | |||||||||
System Test: | ||||||||||||
Cost of revenues—inventory charge | $ | 2,000 | $ | 1,175 | $ | 1,918 | ||||||
Wireless: | ||||||||||||
Cost of revenues—inventory charge | $ | 4,005 | $ | 2,565 | $ | 2,190 | ||||||
Restructuring and other—lease impairment | — | — | 972 | |||||||||
Corporate and Other: | ||||||||||||
Restructuring and other—MiR contingent consideration adjustment | $ | (22,199 | ) | $ | 17,666 | $ | — | |||||
Other (income) expense, net—investment impairment charge | 15,000 | — | — | |||||||||
Restructuring and other—AutoGuide contingent consideration adjustment | 2,976 | — | — | |||||||||
Selling and administrative—equity modification charge | 2,108 | — | — | |||||||||
Restructuring and other—acquisition related expenses and compensation | 1,765 | 3,422 | — | |||||||||
Restructuring and other—Universal Robots contingent consideration adjustment | — | (16,679 | ) | 7,820 | ||||||||
Restructuring and other—property insurance recovery related to Japan earthquake | — | — | (5,064 | ) |
For the Year s Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Semiconductor Test: | ||||||||||||
Cost of revenues—inventory charge | $ | 6,661 | $ | 11,013 | $ | 8,731 | ||||||
Contract termination settlement fe e | — | 4,000 | — | |||||||||
Restructuring and other—employee severance | — | — | 1,277 | |||||||||
System Test: | ||||||||||||
Cost of revenues—inventory charge | $ | 641 | $ | 887 | $ | 2,000 | ||||||
Industrial Automation: | ||||||||||||
Cost of revenues—inventory charge | $ | 6,403 | $ | 834 | $ | 508 | ||||||
Restructuring and other—employee severance | 1,210 | 1,584 | 796 | |||||||||
Restructuring and other—acquisition related expenses and compensation | 1,000 | 985 | 741 | |||||||||
Wireless: | ||||||||||||
Cost of revenues—inventory charge | $ | 1,770 | $ | 4,800 | $ | 4,005 | ||||||
Corporate and Other: | ||||||||||||
Other (income) expense, net—loss on convertible debt conversion | $ | 28,828 | $ | — | $ | — | ||||||
Restructuring and other—other | 13,971 | — | — | |||||||||
Restructuring and other—AutoGuide contingent consideration adjustment | (7,227 | ) | (19,724 | ) | 2,976 | |||||||
Restructuring and other—acquisition related expenses and compensation | (513 | ) | 1,728 | 1,765 | ||||||||
Restructuring and other—MiR contingent consideration adjustment | — | (3,546 | ) | (22,199 | ) | |||||||
Other (income) expense, net—investment impairment charge | — | — | 15,000 | |||||||||
Selling and administrative—equity modification charge | — | 766 | 2,108 |
2019 | 2018 | 2017 | ||||||||||
(in thousands) | ||||||||||||
Revenues from customers (1): | ||||||||||||
China | $ | 514,327 | $ | 348,942 | $ | 260,451 | ||||||
Taiwan | 485,681 | 516,322 | 687,031 | |||||||||
United States | 333,059 | 282,869 | 252,516 | |||||||||
Korea | 239,504 | 163,224 | 206,819 | |||||||||
Europe | 219,015 | 223,207 | 163,715 | |||||||||
Japan | 175,322 | 158,281 | 169,093 | |||||||||
Thailand | 87,503 | 59,184 | 29,566 | |||||||||
Singapore | 84,111 | 108,618 | 101,085 | |||||||||
Malaysia | 58,200 | 122,797 | 124,048 | |||||||||
Philippines | 54,560 | 77,996 | 105,850 | |||||||||
Rest of the World | 43,683 | 39,362 | 36,432 | |||||||||
$ | 2,294,965 | $ | 2,100,802 | $ | 2,136,606 | |||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
Revenues from customers (1): | ||||||||||||
Taiwan | $ | 1,117,874 | $ | 1,178,068 | $ | 485,681 | ||||||
China | 631,963 | 465,722 | 514,327 | |||||||||
Korea | 502,167 | 391,571 | 239,504 | |||||||||
United States | 392,626 | 321,674 | 333,059 | |||||||||
Europe | 259,954 | 205,587 | 219,015 | |||||||||
Philippines | 166,838 | 68,887 | 54,560 | |||||||||
Japan | 166,231 | 143,983 | 175,322 | |||||||||
Thailand | 138,812 | 138,787 | 87,503 | |||||||||
Malaysia | 136,774 | 56,096 | 58,200 | |||||||||
Singapore | 121,582 | 76,460 | 84,111 | |||||||||
Rest of the World | 68,060 | 74,634 | 43,683 | |||||||||
$ | 3,702,881 | $ | 3,121,469 | $ | 2,294,965 | |||||||
(1) | Revenues attributable to a country are based on location of customer site. |
United | Foreign(1) | Total | ||||||||||
(in thousands) | ||||||||||||
December 31, 2019 | $ | 252,812 | $ | 124,943 | $ | 377,755 | ||||||
December 31, 2018 | $ | 209,368 | $ | 70,453 | $ | 279,821 |
United States | Foreign(1) | Total | ||||||||||
(in thousands) | ||||||||||||
December 31, 2021 | $ | 308,438 | $ | 147,609 | $ | 456,047 | ||||||
December 31, 2020 | $ | 291,234 | $ | 158,135 | $ | 449,369 |
(1) | As of December 31, |
2019 | ||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
(1) | (2) | (3) | (4)(5) ( 6 ) | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 393,442 | $ | 457,511 | $ | 488,170 | $ | 548,552 | ||||||||
Services | 100,657 | 106,667 | 93,868 | 106,098 | ||||||||||||
Total revenues | 494,099 | 564,178 | 582,038 | 654,650 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Cost of products | 165,368 | 193,299 | 197,196 | 226,184 | ||||||||||||
Cost of services | 41,096 | 46,961 | 39,804 | 45,228 | ||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 206,464 | 240,260 | 237,000 | 271,412 | ||||||||||||
Gross profit | 287,635 | 323,918 | 345,038 | 383,238 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling and administrative | 102,013 | 108,811 | 109,166 | 117,092 | ||||||||||||
Engineering and development | 76,791 | 81,434 | 77,804 | 86,794 | ||||||||||||
Acquired intangible assets amortization | 10,634 | 10,083 | 9,647 | 9,784 | ||||||||||||
Restructuring and other | 5,112 | (10,404 | ) | (6,500 | ) | (2,088 | ) | |||||||||
Total operating expenses | 194,550 | 189,924 | 190,117 | 211,582 | ||||||||||||
Income from operations | 93,085 | 133,994 | 154,921 | 171,656 | ||||||||||||
Non-operating (income) expense: | ||||||||||||||||
Interest income | (8,052 | ) | (5,430 | ) | (5,159 | ) | (6,145 | ) | ||||||||
Interest expense | 5,713 | 5,800 | 5,682 | 5,950 | ||||||||||||
Other (income) expense, net | 1,445 | 2,447 | 2,665 | 22,965 | ||||||||||||
Income before income taxes | 93,979 | 131,177 | 151,733 | 148,886 | ||||||||||||
Income tax (benefit) provision | (15,159 | ) | 33,780 | 15,873 | 23,811 | |||||||||||
Net income | $ | 109,138 | $ | 97,397 | $ | 135,860 | $ | 125,075 | ||||||||
Net income per common share—basic | $ | 0.63 | $ | 0.57 | $ | 0.80 | $ | 0.75 | ||||||||
Net income per common share—diluted | $ | 0.62 | $ | 0.55 | $ | 0.75 | $ | 0.69 | ||||||||
Cash dividend declared per common share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.09 | ||||||||
2018 | ||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
(1) | (2) | (3) | (4)(5) | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 403,925 | $ | 434,051 | $ | 470,994 | $ | 420,652 | ||||||||
Services | 83,542 | 92,878 | 95,854 | 98,906 | ||||||||||||
Total revenues | 487,467 | 526,929 | 566,848 | 519,558 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Cost of products | 180,958 | 180,777 | 195,339 | 170,064 | ||||||||||||
Cost of services | 36,677 | 38,818 | 37,816 | 39,959 | ||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 217,635 | 219,595 | 233,155 | 210,023 | ||||||||||||
Gross profit | 269,832 | 307,334 | 333,693 | 309,535 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling and administrative | 90,505 | 99,410 | 100,202 | 100,552 | ||||||||||||
Engineering and development | 74,408 | 75,342 | 77,049 | 74,706 | ||||||||||||
Acquired intangible assets amortization | 7,698 | 9,793 | 11,142 | 10,558 | ||||||||||||
Restructuring and other | (313 | ) | 2,389 | 1,710 | 11,446 | |||||||||||
Total operating expenses | 172,298 | 186,934 | 190,103 | 197,262 | ||||||||||||
Income from operations | 97,534 | 120,400 | 143,590 | 112,273 | ||||||||||||
Non-operating (income) expense: | ||||||||||||||||
Interest income | (5,981 | ) | (5,427 | ) | (6,213 | ) | (9,083 | ) | ||||||||
Interest expense | 6,890 | 5,639 | 5,557 | 13,182 | ||||||||||||
Other (income) expense, net | 805 | 176 | 3,405 | (2,954 | ) | |||||||||||
Income before income taxes | 95,820 | 120,012 | 140,841 | 111,128 | ||||||||||||
Income tax provision (benefit) | 8,846 | 18,975 | 20,863 | (32,662 | ) | |||||||||||
Net income | $ | 86,974 | $ | 101,037 | $ | 119,978 | $ | 143,790 | ||||||||
Net income per common share—basic | $ | 0.45 | $ | 0.53 | $ | 0.65 | $ | 0.80 | ||||||||
Net income per common share—diluted | $ | 0.43 | $ | 0.52 | $ | 0.63 | $ | 0.79 | ||||||||
Cash dividend declared per common share | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.09 | ||||||||
Item 9: | Changes in and disagreements with accountants on accounting and financial disclosure |
Item 9A: | Controls and procedures |
Item 9B: | Other Information |
Item 9C: | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 10: | Directors, Executive Officers and Corporate Governance |
Item 11: | Executive Compensation |
Item 12: | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13: | Certain Relationships and Related Transactions, and Director Independence |
Item 14: | Principal Accountant Fees and Services |
Item 15: | Exhibits and Financial Statement Schedule . |
Page | ||||
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||||
Description | Balance at Beginning of Period | Additions Charged to Cost and Expenses | Other | Deductions | Balance at End of Period | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | ||||||||||||||||||||
Accounts receivable: | ||||||||||||||||||||
2019 Allowance for doubtful account | $ | 1,673 | $ | 87 | $ | 28 | $ | 52 | $ | 1,736 | ||||||||||
2018 Allowance for doubtful account | $ | 2,219 | $ | — | $ | 20 | $ | 566 | $ | 1,673 | ||||||||||
2017 Allowance for doubtful accounts | $ | 2,356 | $ | 4 | $ | — | $ | 141 | $ | 2,219 | ||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||||
Description | Balance at Beginning of Period | Additions Charged to Cost and Expenses | Other | Deductions | Balance at End of Period | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | ||||||||||||||||||||
Accounts receivable: | ||||||||||||||||||||
2021 Allowance for doubtful account | $ | 2,034 | $ | 500 | $ | (27 | ) | $ | 495 | $ | 2,012 | |||||||||
2020 Allowance for doubtful account | $ | 1,736 | $ | 356 | $ | 32 | $ | 90 | $ | 2,034 | ||||||||||
2019 Allowance for doubtful account | $ | 1,673 | $ | 87 | $ | 28 | $ | 52 | $ | 1,736 | ||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||||
Description | Balance at Beginning of Period | Additions Charged to Cost and Expenses | Other | Deductions | Balance at End of Period | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | ||||||||||||||||||||
Inventory: | ||||||||||||||||||||
2021 Inventory reserve | $ | 110,587 | $ | 15,475 | $ | 1,335 | $ | 13,342 | $ | 114,055 | ||||||||||
2020 Inventory reserve | $ | 103,556 | $ | 17,534 | $ | (521 | ) | $ | 9,982 | $ | 110,587 | |||||||||
2019 Inventory reserve | $ | 100,779 | $ | 15,244 | $ | (85 | ) | $ | 12,382 | $ | 103,556 | |||||||||
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||||
Description | Balance at Beginning of Period | Additions Charged to Cost and Expenses | Other | Deductions | Balance at End of Period | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | ||||||||||||||||||||
Deferred taxes: | ||||||||||||||||||||
2021 Valuation allowance | $ | 84,962 | $ | 13,502 | $ | 0 | $ | 1,294 | $ | 97,170 | ||||||||||
2020 Valuation allowance | $ | 77,177 | $ | 7,785 | $ | 0 | $ | 0 | $ | 84,962 | ||||||||||
2019 Valuation allowance | $ | 69,852 | $ | 7,325 | $ | 0 | $ | 0 | $ | 77,177 | ||||||||||
�� |
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||||
Description | Balance at Beginning of Period | Additions Charged to Cost and Expenses | Other | Deductions | Balance at End of Period | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | ||||||||||||||||||||
Inventory: | ||||||||||||||||||||
2019 Inventory reserve | $ | 100,779 | $ | 15,244 | $ | (85 | ) | $ | 12,382 | $ | 103,556 | |||||||||
�� | ||||||||||||||||||||
2018 Inventory reserve | $ | 102,896 | $ | 11,242 | $ | 368 | $ | 13,727 | $ | 100,779 | ||||||||||
2017 Inventory reserve | $ | 116,016 | $ | 8,844 | $ | (126 | ) | $ | 21,838 | $ | 102,896 | |||||||||
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||||
Description | Balance at Beginning of Period | Additions Charged to Cost and Expenses | Other | Deductions | Balance at End of Period | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | ||||||||||||||||||||
Deferred taxes: | ||||||||||||||||||||
2019 Valuation allowance | $ | 69,852 | $ | 7,325 | $ | — | $ | — | $ | 77,177 | ||||||||||
2018 Valuation allowance | $ | 63,919 | $ | 6,333 | $ | — | $ | 400 | $ | 69,852 | ||||||||||
2017 Valuation allowance | $ | 48,369 | $ | 15,571 | $ | — | $ | 21 | $ | 63,919 | ||||||||||
Item 16: | Form 10-K Summary |
Exhibit No. | Description | SEC Document Reference | ||||||
3.1 | ||||||||
Restated Articles of Organization. | ||||||||
3.2 | ||||||||
Amended and Restated By-laws, as amended. | ||||||||
4.1 | ||||||||
Indenture dated as of December 12, 2016, between Teradyne, Inc. and Wilmington Trust, National Association, as trustee. | ||||||||
4.2 | First Supplemental Indenture dated as of November 4, 2021 between Teradyne, Inc. and Wilmington Trust, National Association, as trustee. | |||||||
Description of Teradyne, Inc. Securities Registered under Section 12 of the Exchange Act. | ||||||||
10.1† | ||||||||
Standard Manufacturing Agreement entered into as of November 24, 2003 by and between Teradyne and Solectron. | ||||||||
10.2† | ||||||||
Second Amendment to Standard Manufacturing Agreement, dated as of August 27, 2007, by and between Teradyne and Solectron. | ||||||||
10.3† | ||||||||
Sixth Amendment to Standard Manufacturing Agreement, dated as of July 27, 2009, by and between Teradyne and Flextronics Corporation. | ||||||||
10.4 | ||||||||
Addendum to Standard Manufacturing Agreement (Authorized Purchase Agreement)—Revised July 1, 2010. | ||||||||
10.5 | ||||||||
Eighth Amendment to Standard Manufacturing Agreement, dated as of April 13, 2012, by and between Teradyne and Flextronics Sales & Marketing North Asia (L) LTD. |
10.6† | ||||||||
Ninth Amendment to Standard Manufacturing Agreement, dated as of September 17, 2012, by and between Teradyne and Flextronics Sales & Marketing North Asia (L) LTD. | ||||||||
10.7 | ||||||||
2006 Equity and Cash Compensation Incentive Plan, as amended.* | ||||||||
10.8 | ||||||||
Danish Sub-Plan to the 2006 Equity and Cash Compensation Incentive Plan. |
Exhibit No. | Description | SEC Document Reference | ||||||
10.9 | Form of Performance-Based Restricted Stock Unit Agreement for Executive Officers under 2006 Equity and Cash Compensation Incentive Plan.* | |||||||
10.10 | Form of Time-Based Restricted Stock Unit Agreement for Executive Officers under 2006 Equity and Cash Compensation Incentive Plan.* | |||||||
10.11 | Form of Executive Officer Stock Option Agreement under 2006 Equity and Cash Compensation Incentive Plan, as amended.* | |||||||
10.12 | Form of Restricted Stock Unit Agreement for Directors under 2006 Equity and Cash Compensation Incentive Plan.* | |||||||
10.13 | 1996 Employee Stock Purchase Plan, as amended.* | |||||||
10.14 | ||||||||
Danish Sub-Plan to the 1996 Employee Stock Purchase Plan. | ||||||||
10.15 | Deferral Plan for Non-Employee Directors, as amended.* | |||||||
10.16 | Supplemental Savings Plan, as amended and restated.* | |||||||
10.17 | Supplemental Executive Retirement Plan, as restated.* | |||||||
10.18 | Agreement Regarding Termination Benefits dated January 22, 2014 between Teradyne and Mark Jagiela.* |
10.19 | Employment Agreement dated May 7, 2004 between Teradyne and Mark Jagiela.* | |||||||
10.20 | Executive Officer Retirement Agreement dated July 17, 2019 between Teradyne and Gregory R. Beecher.* | |||||||
10.21 | Executive Officer Change in Control Agreement dated January 22, 2014 between Teradyne and Mark Jagiela, as amended.* | |||||||
10.22 | Amended and Restated Executive Officer Change in Control Agreement dated May 26, 2009 between Teradyne and Charles J. Gray, as amended.* | |||||||
10.23 | Employment Agreement dated July 24, 2009 between Teradyne and Charles J. Gray.* |
Exhibit No. | Description | SEC Document Reference | ||||||
10.24 | Amended and Restated Executive Officer Change in Control Agreement dated June 30, 2012 between Teradyne and Walter G. Vahey, as amended.* | |||||||
10.25 | Employment Agreement dated February 6, 2013 between Teradyne and Walter G. Vahey.* | |||||||
10.26 | Executive Officer Change in Control Agreement dated September 1, 2014 between Teradyne, Inc. and Bradford Robbins.* | |||||||
10.27 | Employment Agreement dated September 1, 2014 between Teradyne, Inc. and Bradford Robbins.* | |||||||
10.28 | Executive Change in Control Agreement dated February 8, 2016 between Teradyne, Inc. and Greg Smith.* | |||||||
10.29 | Employment Agreement dated February 8, 2016 between Teradyne, Inc. and Greg Smith.* | |||||||
10.30 | Teradyne Offer of Employment dated February 8, 2019 for Sanjay Mehta.* | |||||||
10.31 | Executive Officer Change in Control Agreement dated April 25, 2019 between Teradyne, Inc. and Sanjay Mehta.* | |||||||
10.32 | Employment Agreement dated April 25, 2019 between Teradyne, Inc. and Sanjay Mehta.* | |||||||
10.33 | Agreement Regarding Termination Benefits dated April 25, 2019 between Teradyne, Inc. and Sanjay Mehta.* |
10.34 | ||||||||
10.35 | ||||||||
10.36 | Time-Based Restricted Stock Unit Agreement dated May 1, 2019 for Sanjay Mehta under 2006 Equity and Cash Compensation Plan.* | |||||||
10.37 | Form of Indemnification Agreement.* |
Exhibit No. | ||||||||
Description | SEC Document Reference | |||||||
10.38 | LitePoint Corporation 2002 Stock Plan. | |||||||
10.39 | Letter Agreement, dated December 6, 2016, between Barclays Bank PLC and Teradyne, Inc., regarding the Base Warrants. | |||||||
10.40 | Letter Agreement, dated December 6, 2016, between Bank of America, N.A., and Teradyne, Inc. regarding the Base Warrants. | |||||||
10.41 | Letter Agreement, dated December 6, 2016, between Wells Fargo Bank, National Association and Teradyne, Inc. regarding the Base Warrants. | |||||||
10.42 | Letter Agreement, dated December 6, 2016, between Barclays Bank PLC and Teradyne, Inc. regarding the Base Call Option Transaction. | |||||||
10.43 | Letter Agreement, dated December 6, 2016, between Bank of America, N.A. and Teradyne, Inc. regarding the Base Call Option Transaction. | |||||||
10.44 | Letter Agreement, dated December 6, 2016, between Wells Fargo Bank, National Association and Teradyne, Inc. regarding the Base Call Option Transaction. | |||||||
10.45 | Letter Agreement, dated December 9, 2016, between Barclays Bank PLC and Teradyne, Inc., regarding the Additional Warrants | |||||||
10.46 | Letter Agreement, dated December 9, 2016, between Bank of America, N.A., and Teradyne, Inc. regarding the Additional Warrants. | |||||||
10.47 | Letter Agreement, dated December 9, 2016, between Wells Fargo Bank, National Association and Teradyne, Inc. regarding the Additional Warrants. | |||||||
10.48 | Letter Agreement, dated December 9, 2016, between Barclays Bank PLC and Teradyne, Inc. regarding the Additional Call Option Transaction. |
10.49 | Letter Agreement, dated December 9, 2016, between Bank of America, N.A. and Teradyne, Inc. regarding the Additional Call Option Transaction |
Exhibit No. | ||||||||
Description | SEC Document Reference | |||||||
10.50 | Letter Agreement, dated December 9, 2016, between Wells Fargo Bank, National Association and Teradyne, Inc. regarding the Additional Call Option Transaction. | |||||||
10.51 | ||||||||
10.52 | First Amendment to Credit Agreement dated December 10, 2021 among Teradyne, Inc., Truist Bank, as the administrative agent, issuing bank and swingline lender, and other lenders party thereto. | |||||||
21.1 | Subsidiaries of Teradyne. | |||||||
23.1 | Consent of PricewaterhouseCoopers LLP. | |||||||
31.1 | Rule 13a-14(a) Certification of Principal Executive Officer. | |||||||
31.2 | Rule 13a-14(a) Certification of Principal Financial Officer. | |||||||
32.1 | Section 1350 Certification of Principal Executive Officer. | |||||||
32.2 | Section 1350 Certification of Principal Financial Officer. | |||||||
101 | The following financial information from Teradyne, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, | |||||||
104 | The cover page of the Annual Report on Form |
† | -Confidential treatment granted. |
* | -Management contract or compensatory plan. |
T ERADYNE , INC . | ||
By: | ||
/ ANJAY MEHTA | ||
Sanjay Mehta, | ||
Vice President, Chief Financial Officer and Treasurer |
Signature | Title | Date | ||||
/S/ P UFANO | Chair of the Board | |||||
/S/ M E . JAGIELA Mark E. Jagiela | Chief Executive Officer (Principal Executive Officer) and Director | |||||
/S/ S EHTA Sanjay Mehta | Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) | |||||
/S/ M RADLEY Michael A. Bradley | Director | |||||
/S/ E ILLIS Edwin J. Gillis | Director | |||||
/S/ T UERTIN Timothy E. Guertin | Director | February 23, 2022 | ||||
ETER HERWECK Peter Herweck | ||||||
Director | February 23, 2022 | |||||
/S/ M OHNSON Mercedes Johnson | Director | |||||
/S/ M ATZ Marilyn Matz | Director | |||||
/ | Director |