☒ | QUARTERLY 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 No.) | |
600 Riverpark Drive, North Reading, Massachusetts | 01864 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.125per share | TER | Nasdaq Stock Market LLC |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Emerging growth company | ☐ | |||
Smaller reporting company | ☐ |
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6 | ||||||
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Item 3. | ||||||
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Item 4. | ||||||
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Item 6. |
Item 1: | Financial Statements |
July 4, 2021 | December 31, 2020 | |||||||
(in thousands, except per share amount) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 954,441 | $ | 914,121 | ||||
Marketable securities | 282,121 | 522,280 | ||||||
Accounts receivable, less allowance for credit losses of $1,931 and $2,034 at July 4, 2021 and December 31, 2020, respectively | 868,457 | 497,506 | ||||||
Inventories, net | 226,138 | 222,189 | ||||||
Prepayments and other current assets | 368,315 | 259,338 | ||||||
Total current assets | 2,699,472 | 2,415,434 | ||||||
Property, plant and equipment, net | 395,395 | 394,800 | ||||||
Operating lease right-of-use assets, net | 61,849 | 54,569 | ||||||
Marketable securities | 181,560 | 117,980 | ||||||
Deferred tax assets | 94,438 | 87,913 | ||||||
Retirement plans assets | 17,170 | 17,468 | ||||||
Other assets | 21,320 | 9,384 | ||||||
Acquired intangible assets, net | 88,121 | 100,939 | ||||||
Goodwill | 441,597 | 453,859 | ||||||
Total assets | $ | 4,000,922 | $ | 3,652,346 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 156,103 | $ | 133,663 | ||||
Accrued employees’ compensation and withholdings | 205,717 | 220,321 | ||||||
Deferred revenue and customer advances | 148,882 | 134,662 | ||||||
Other accrued liabilities | 146,484 | 77,581 | ||||||
Operating lease liabilities | 20,539 | 20,573 | ||||||
Income taxes payable | 93,876 | 80,728 | ||||||
Current debt | 213,761 | 33,343 | ||||||
Total current liabilities | 985,362 | 700,871 | ||||||
Retirement plans liabilities | 154,311 | 151,140 | ||||||
Long-term deferred revenue and customer advances | 58,534 | 58,359 | ||||||
Long-term contingent consideration | 0 | 7,227 | ||||||
Long-term other accrued liabilities | 19,387 | 19,352 | ||||||
Deferred tax liabilities | 8,961 | 10,821 | ||||||
Long-term operating lease liabilities | 49,066 | 42,073 | ||||||
Long-term incomes taxes payable | 67,041 | 74,930 | ||||||
Debt | 143,618 | 376,768 | ||||||
Total liabilities | 1,486,280 | 1,441,541 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Mezzanine equity: | ||||||||
Convertible common shares | 21,386 | 3,787 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, $0.125 par value, 1,000,000 shares authorized; 165,444 and 166,123 shares issued and outstanding at July 4, 2021 and December 31, 2020, respectively | 20,680 | 20,765 | ||||||
Additional paid-in capital | 1,772,302 | 1,765,323 | ||||||
Accumulated other comprehensive income | 15,322 | 33,516 | ||||||
Retained earnings | 684,952 | 387,414 | ||||||
Total shareholders’ equity | 2,493,256 | 2,207,018 | ||||||
Total liabilities, convertible common shares and shareholders’ equity | $ | 4,000,922 | $ | 3,652,346 | ||||
July 3, 2022 | December 31, 2021 | |||||||
(in thousands, except per share amount) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 572,023 | $ | 1,122,199 | ||||
Marketable securities | 209,846 | 244,231 | ||||||
Accounts receivable, less allowance for credit losses of $1,849 and $2,012 at July 3, 2022 and December 31, 2021, respectively | 683,739 | 550,749 | ||||||
Inventories, net | 295,625 | 243,330 | ||||||
Prepayments | 498,093 | 406,266 | ||||||
Other current assets | 11,109 | 9,452 | ||||||
Total current assets | 2,270,435 | 2,576,227 | ||||||
Property, plant and equipment, net | 411,263 | 387,240 | ||||||
Operating lease right-of-use | 66,661 | 68,807 | ||||||
Marketable securities | 111,999 | 133,858 | ||||||
Deferred tax assets | 126,639 | 102,428 | ||||||
Retirement plans assets | 14,245 | 15,110 | ||||||
Other assets | 26,942 | 24,096 | ||||||
Acquired intangible assets, net | 62,509 | 75,635 | ||||||
Goodwill | 397,733 | 426,024 | ||||||
Total assets | $ | 3,488,426 | $ | 3,809,425 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 175,606 | $ | 153,133 | ||||
Accrued employees’ compensation and withholdings | 190,506 | 253,667 | ||||||
Deferred revenue and customer advances | 163,127 | 146,185 | ||||||
Other accrued liabilities | 133,881 | 124,187 | ||||||
Operating lease liabilities | 17,770 | 19,977 | ||||||
Income taxes payable | 106,863 | 88,789 | ||||||
Current debt | 9,632 | 19,182 | ||||||
Total current liabilities | 797,385 | 805,120 | ||||||
Retirement plans liabilities | 141,884 | 151,141 | ||||||
Long-term deferred revenue and customer advances | 50,357 | 54,921 | ||||||
Long-term other accrued liabilities | 15,530 | 15,497 | ||||||
Deferred tax liabilities | 3,143 | 6,327 | ||||||
Long-term operating lease liabilities | 57,600 | 56,178 | ||||||
Long-term incomes taxes payable | 59,135 | 67,041 | ||||||
Debt | 64,796 | 89,244 | ||||||
Total liabilities | 1,189,830 | 1,245,469 | ||||||
Commitments and contingencies (Note Q) | 0 | 0 | ||||||
Mezzanine equity: | ||||||||
Convertible common shares | — | 1,512 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, $0.125 par value, 1,000,000 shares authorized; 157,880 and 162,251 shares issued and outstanding at July 3, 2022 and December 31, 2021, respectively | 19,735 | 20,281 | ||||||
Additional paid-in capital | 1,721,586 | 1,811,545 | ||||||
Accumulated other comprehensive loss | (52,959 | ) | (5,948 | ) | ||||
Retained earnings | 610,234 | 736,566 | ||||||
Total shareholders’ equity | 2,298,596 | 2,562,444 | ||||||
Total liabilities, convertible common shares and shareholders’ equity | $ | 3,488,426 | $ | 3,809,425 | ||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
(in thousands, except per share amount) | ||||||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 951,945 | $ | 734,630 | $ | 1,612,453 | $ | 1,345,536 | ||||||||
Services | 133,783 | 104,031 | 254,881 | 197,480 | ||||||||||||
Total revenues | 1,085,728 | 838,661 | 1,867,334 | 1,543,016 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Cost of products | 388,845 | 322,732 | 656,629 | 582,728 | ||||||||||||
Cost of services | 49,894 | 44,456 | 102,098 | 83,265 | ||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 438,739 | 367,188 | 758,727 | 665,993 | ||||||||||||
Gross profit | 646,989 | 471,473 | 1,108,607 | 877,023 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling and administrative | 140,187 | 113,259 | 269,984 | 224,647 | ||||||||||||
Engineering and development | 110,021 | 94,102 | 210,423 | 179,261 | ||||||||||||
Acquired intangible assets amortization | 5,402 | 8,941 | 10,938 | 18,832 | ||||||||||||
Restructuring and other | 2,507 | 37,222 | (4,623 | ) | 29,616 | |||||||||||
Total operating expenses | 258,117 | 253,524 | 486,722 | 452,356 | ||||||||||||
Income from operations | 388,872 | 217,949 | 621,885 | 424,667 | ||||||||||||
Non-operating (income) expense: | ||||||||||||||||
Interest income | (633 | ) | (1,368 | ) | (1,441 | ) | (4,119 | ) | ||||||||
Interest expense | 5,566 | 6,043 | 11,569 | 11,594 | ||||||||||||
Other (income) expense, net | (87 | ) | (4,017 | ) | 3,738 | 2,833 | ||||||||||
Income before income taxes | 384,026 | 217,291 | 608,019 | 414,359 | ||||||||||||
Income tax provision | 55,707 | 28,383 | 74,188 | 49,261 | ||||||||||||
Net income | $ | 328,319 | $ | 188,908 | $ | 533,831 | $ | 365,098 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 1.98 | $ | 1.14 | $ | 3.21 | $ | 2.20 | ||||||||
Diluted | $ | 1.76 | $ | 1.05 | $ | 2.85 | $ | 2.02 | ||||||||
Weighted average common shares—basic | 165,995 | 165,789 | 166,243 | 166,189 | ||||||||||||
Weighted average common shares—diluted | 186,750 | 180,257 | 187,245 | 180,497 | ||||||||||||
Cash dividend declared per common share | $ | 0.10 | $ | 0.10 | $ | 0.20 | $ | 0.20 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, | July 4, | July 3, | July 4, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(in thousands, except per share amount) | ||||||||||||||||
Revenues: | ||||||||||||||||
Products | $ | 697,954 | $ | 951,945 | $ | 1,323,829 | $ | 1,612,453 | ||||||||
Services | 142,812 | 133,783 | 272,307 | 254,881 | ||||||||||||
Total revenues | 840,766 | 1,085,728 | 1,596,136 | 1,867,334 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Cost of products | 274,674 | 388,845 | 517,690 | 656,629 | ||||||||||||
Cost of services | 59,703 | 49,894 | 117,124 | 102,098 | ||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 334,377 | 438,739 | 634,814 | 758,727 | ||||||||||||
Gross profit | 506,389 | 646,989 | 961,322 | 1,108,607 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling and administrative | 139,533 | 140,187 | 279,718 | 269,984 | ||||||||||||
Engineering and development | 111,951 | 110,021 | 220,067 | 210,423 | ||||||||||||
Acquired intangible assets amortization | 4,871 | 5,402 | 9,934 | 10,938 | ||||||||||||
Restructuring and other | 2,044 | 2,507 | 17,758 | (4,623 | ) | |||||||||||
Total operating expenses | 258,399 | 258,117 | 527,477 | 486,722 | ||||||||||||
Income from operations | 247,990 | 388,872 | 433,845 | 621,885 | ||||||||||||
Non-operating (income) expense: | ||||||||||||||||
Interest income | (951 | ) | (633 | ) | (1,653 | ) | (1,441 | ) | ||||||||
Interest expense | 913 | 5,566 | 1,925 | 11,569 | ||||||||||||
Other (income) expense, net | 9,436 | (87 | ) | 14,622 | 3,738 | |||||||||||
Income before income taxes | 238,592 | 384,026 | 418,951 | 608,019 | ||||||||||||
Income tax provision | 40,805 | 55,707 | 59,236 | 74,188 | ||||||||||||
Net income | $ | 197,787 | $ | 328,319 | $ | 359,715 | $ | 533,831 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 1.24 | $ | 1.98 | $ | 2.24 | $ | 3.21 | ||||||||
Diluted | $ | 1.16 | $ | 1.76 | $ | 2.07 | $ | 2.85 | ||||||||
Weighted average common shares—basic | 159,563 | 165,995 | 160,805 | 166,243 | ||||||||||||
Weighted average common shares—diluted | 171,159 | 186,750 | 173,367 | 187,245 | ||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Net income | $ | 328,319 | $ | 188,908 | $ | 533,831 | $ | 365,098 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Foreign currency translation adjustment, net of tax of $0, $0, $0, $0, respectively | 5,150 | 15,805 | (15,974 | ) | 7,026 | |||||||||||
Available-for-sale marketable securities: | ||||||||||||||||
Unrealized gains (losses) on marketable securities arising during period, net of tax of $436, $1,084, $(472), $1,271, respectively | 1,494 | 3,793 | (1,776 | ) | 4,830 | |||||||||||
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $2, $(277), $(121), $(421), respectively | 3 | (983 | ) | (441 | ) | (1,499 | ) | |||||||||
1,497 | 2,810 | (2,217 | ) | 3,331 | ||||||||||||
Defined benefit post-retirement plan: | ||||||||||||||||
Amortization of prior service credit, net of tax of $0, $0, $(1), $(1), respectively | (2 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||
Other comprehensive income (loss) | 6,645 | 18,613 | (18,194 | ) | 10,354 | |||||||||||
Comprehensive income | $ | 334,964 | $ | 207,521 | $ | 515,637 | $ | 375,452 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, | July 4, | July 3, | July 4, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Net income | $ | 197,787 | $ | 328,319 | $ | 359,715 | $ | 533,831 | ||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Foreign currency translation adjustment, net of tax of $0, $0, $0, $0, respectively | (29,230 | ) | 5,150 | (37,307 | ) | (15,974 | ) | |||||||||
Available-for-sale | ||||||||||||||||
Unrealized (losses) gains on marketable securities arising during period, net of tax of $(1,240), $436, $(2,573), and $(472), respectively | (4,522 | ) | 1,494 | (9,910 | ) | (1,776 | ) | |||||||||
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $77, $2, $59, $(121), respectively | 274 | 3 | 209 | (441 | ) | |||||||||||
(4,248 | ) | 1,497 | (9,701 | ) | (2,217 | ) | ||||||||||
Defined benefit post-retirement plan: | ||||||||||||||||
Amortization of prior service credit, net of tax of $0, $0, $(1), $(1), respectively | (2 | ) | (2 | ) | (3 | ) | (3 | ) | ||||||||
Other comprehensive (loss) income | (33,480 | ) | 6,645 | (47,011 | ) | (18,194 | ) | |||||||||
Comprehensive income | $ | 164,307 | $ | 334,964 | $ | 312,704 | $ | 515,637 | ||||||||
Shareholders’ Equity | ||||||||||||||||||||||||||||
Convertible Common Shares Value | Common Stock Shares | Common Stock Par Value | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Shareholders’ Equity | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Three Months Ended July 4, 2021 | ||||||||||||||||||||||||||||
Balance, April 4, 2021 | $ | 1,233 | 166,419 | $ | 20,802 | $ | 1,765,971 | $ | 8,677 | $ | 529,103 | $ | 2,324,553 | |||||||||||||||
Net issuance of common stock under stock-based plans | 215 | 27 | 14,283 | 14,310 | ||||||||||||||||||||||||
Stock-based compensation expense | 12,515 | 12,515 | ||||||||||||||||||||||||||
Repurchase of common stock | (1,190 | ) | (149 | ) | (155,846 | ) | (155,995 | ) | ||||||||||||||||||||
Cash dividends ($0.10 per share) | (16,624 | ) | (16,624 | ) | ||||||||||||||||||||||||
Settlements of convertible notes | 367 | 46 | 45,977 | 46,023 | ||||||||||||||||||||||||
Exercise of convertible notes hedge call options | (367 | ) | (46 | ) | (46,291 | ) | (46,337 | ) | ||||||||||||||||||||
Convertible common shares | 20,153 | (20,153 | ) | (20,153 | ) | |||||||||||||||||||||||
Net income | 328,319 | 328,319 | ||||||||||||||||||||||||||
Other comprehensive income | 6,645 | 6,645 | ||||||||||||||||||||||||||
Balance, July 4, 2021 | $ | 21,386 | 165,444 | $ | 20,680 | $ | 1,772,302 | $ | 15,322 | $ | 684,952 | $ | 2,493,256 | |||||||||||||||
Three Months Ended June 28, 2020 | ||||||||||||||||||||||||||||
Balance, March 29, 2020 | $ | — | 165,938 | $ | 20,742 | $ | 1,721,367 | $ | (27,113 | ) | $ | (164,323 | ) | $ | 1,550,673 | |||||||||||||
Net issuance of common stock under stock-based plans | 41 | 5 | (451 | ) | (446 | ) | ||||||||||||||||||||||
Stock-based compensation expense | 9,800 | 9,800 | ||||||||||||||||||||||||||
Repurchase of common stock | (173 | ) | (22 | ) | (6,379 | ) | (6,401 | ) | ||||||||||||||||||||
Cash dividends ($0.10 per share) | (16,596 | ) | (16,596 | ) | ||||||||||||||||||||||||
Net income | 188,908 | 188,908 | ||||||||||||||||||||||||||
Other comprehensive income | 18,613 | 18,613 | ||||||||||||||||||||||||||
Balance, June 28, 2020 | $ | — | 165,806 | $ | 20,725 | $ | 1,730,716 | $ | (8,500 | ) | $ | 1,610 | $ | 1,744,551 | ||||||||||||||
Six Months Ended July 4, 2021 | ||||||||||||||||||||||||||||
Balance, 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 | 885 | 111 | 211 | 322 | ||||||||||||||||||||||||
Stock-based compensation expense | 25,874 | 25,874 | ||||||||||||||||||||||||||
Repurchase of common stock | (1,564 | ) | (196 | ) | (202,988 | ) | (203,184 | ) | ||||||||||||||||||||
Cash dividends ($0.20 per share) | (33,305 | ) | (33,305 | ) | ||||||||||||||||||||||||
Settlements of convertible notes | 1,589 | 199 | 203,507 | 203,706 | ||||||||||||||||||||||||
Exercise of convertible notes hedge call options | (1,589 | ) | (199 | ) | (205,014 | ) | (205,213 | ) | ||||||||||||||||||||
Convertible common shares | 17,599 | (17,599 | ) | (17,599 | ) | |||||||||||||||||||||||
Net income | 533,831 | 533,831 | ||||||||||||||||||||||||||
Other comprehensive loss | (18,194 | ) | (18,194 | ) | ||||||||||||||||||||||||
Balance, July 4, 2021 | $ | 21,386 | 165,444 | $ | 20,680 | $ | 1,772,302 | $ | 15,322 | $ | 684,952 | $ | 2,493,256 | |||||||||||||||
Six Months Ended June 28, 2020 | ||||||||||||||||||||||||||||
Balance, 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 | 913 | 114 | (10,496 | ) | (10,382 | ) | ||||||||||||||||||||||
Stock-based compensation expense | 21,083 | 21,083 | ||||||||||||||||||||||||||
Repurchase of common stock | (1,517 | ) | (190 | ) | (88,275 | ) | (88,465 | ) | ||||||||||||||||||||
Cash dividends ($0.20 per share) | (33,295 | ) | (33,295 | ) | ||||||||||||||||||||||||
Net income | 365,098 | 365,098 | ||||||||||||||||||||||||||
Other comprehensive income | 10,354 | 10,354 | ||||||||||||||||||||||||||
Balance, June 28, 2020 | $ | — | 165,806 | $ | 20,725 | $ | 1,730,716 | $ | (8,500 | ) | $ | 1,610 | $ | 1,744,551 | ||||||||||||||
Shareholders’ Equity | ||||||||||||||||||||||||||||
Convertible Common Shares Value | Common Stock Shares | Common Stock Par Value | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
For the Three Months Ended July 3, 2022 | ||||||||||||||||||||||||||||
Balance, April 3, 2022 | $ | — | 161,053 | $ | 20,132 | $ | 1,711,690 | $ | (19,479 | ) | $ | 762,189 | $ | 2,474,532 | ||||||||||||||
Net issuance of common stock under stock-based plans | 33 | 4 | (1,675 | ) | (1,671 | ) | ||||||||||||||||||||||
Stock-based compensation expense | 11,658 | 11,658 | ||||||||||||||||||||||||||
Repurchase of common stock | (3,206 | ) | (401 | ) | (333,933 | ) | (334,334 | ) | ||||||||||||||||||||
Cash dividends ($0.11 per share) | (17,561 | ) | (17,561 | ) | ||||||||||||||||||||||||
Settlements of convertible notes | 495 | 62 | (149 | ) | (87 | ) | ||||||||||||||||||||||
Exercise of convertible notes hedge call options | (495 | ) | (62 | ) | 62 | — | ||||||||||||||||||||||
Cumulative-effect of change in accounting principle related to convertible debt | 1,752 | 1,752 | ||||||||||||||||||||||||||
Net income | 197,787 | 197,787 | ||||||||||||||||||||||||||
Other comprehensive loss | (33,480 | ) | (33,480 | ) | ||||||||||||||||||||||||
Balance, July 3, 2022 | $ | — | 157,880 | $ | 19,735 | $ | 1,721,586 | $ | (52,959 | ) | $ | 610,234 | $ | 2,298,596 | ||||||||||||||
For the Three Months Ended July 4, 2021 | ||||||||||||||||||||||||||||
Balance, April 4, 2021 | $ | 1,233 | 166,419 | $ | 20,802 | $ | 1,765,971 | $ | 8,677 | $ | 529,103 | $ | 2,324,553 | |||||||||||||||
Net issuance of common stock under stock-based plans | 215 | 27 | 14,283 | 14,310 | ||||||||||||||||||||||||
Stock-based compensation expense | 12,515 | 12,515 | ||||||||||||||||||||||||||
Repurchase of common stock | (1,190 | ) | (149 | ) | (155,846 | ) | (155,995 | ) | ||||||||||||||||||||
Cash dividends ($0.10 per share) | (16,624 | ) | (16,624 | ) | ||||||||||||||||||||||||
Settlements of convertible notes | 367 | 46 | 45,977 | 46,023 | ||||||||||||||||||||||||
Exercise of convertible notes hedge call options | (367 | ) | (46 | ) | (46,291 | ) | (46,337 | ) | ||||||||||||||||||||
Convertible common shares | 20,153 | (20,153 | ) | (20,153 | ) | |||||||||||||||||||||||
Net income | 328,319 | 328,319 | ||||||||||||||||||||||||||
Other comprehensive income | 6,645 | 6,645 | ||||||||||||||||||||||||||
Balance, July 4, 2021 | $ | 21,386 | 165,444 | $ | 20,680 | $ | 1,772,302 | $ | 15,322 | $ | 684,952 | $ | 2,493,256 | |||||||||||||||
For the Six Months Ended July 3, 2022 | ||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | 1,512 | 162,251 | $ | 20,281 | $ | 1,811,545 | $ | (5,948 | ) | $ | 736,566 | $ | 2,562,444 | ||||||||||||||
Net issuance of common stock under stock-based plans | 585 | 73 | (16,318 | ) | (16,245 | ) | ||||||||||||||||||||||
Stock-based compensation expense | 25,862 | 25,862 | ||||||||||||||||||||||||||
Repurchase of common stock | (4,956 | ) | (619 | ) | (545,179 | ) | (545,798 | ) | ||||||||||||||||||||
Cash dividends ($0.22 per share) | (35,470 | ) | (35,470 | ) | ||||||||||||||||||||||||
Settlements of convertible notes | 1,004 | 125 | (306 | ) | (181 | ) | ||||||||||||||||||||||
Exercise of convertible notes hedge call options | (1,004 | ) | (125 | ) | 125 | — | ||||||||||||||||||||||
Cumulative-effect of change in accounting principle related to convertible debt | (1,512 | ) | (99,322 | ) | 94,602 | (4,720 | ) | |||||||||||||||||||||
Net income | 359,715 | 359,715 | ||||||||||||||||||||||||||
Other comprehensive loss | (47,011 | ) | (47,011 | ) | ||||||||||||||||||||||||
Balance, July 3, 2022 | $ | — | 157,880 | $ | 19,735 | $ | 1,721,586 | $ | (52,959 | ) | $ | 610,234 | $ | 2,298,596 | ||||||||||||||
For the Six Months Ended July 4, 2021 | ||||||||||||||||||||||||||||
Balance, 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 | 885 | 111 | 211 | 322 | ||||||||||||||||||||||||
Stock-based compensation expense | 25,874 | 25,874 | ||||||||||||||||||||||||||
Repurchase of common stock | (1,564 | ) | (196 | ) | (202,988 | ) | (203,184 | ) | ||||||||||||||||||||
Cash dividends ($0.20 per share) | (33,305 | ) | (33,305 | ) | ||||||||||||||||||||||||
Settlements of convertible notes | 1,589 | 199 | 203,507 | 203,706 | ||||||||||||||||||||||||
Exercise of convertible notes hedge call options | (1,589 | ) | (199 | ) | (205,014 | ) | (205,213 | ) | ||||||||||||||||||||
Convertible common shares | 17,599 | (17,599 | ) | (17,599 | ) | |||||||||||||||||||||||
Net income | 533,831 | 533,831 | ||||||||||||||||||||||||||
Other comprehensive loss | (18,194 | ) | (18,194 | ) | ||||||||||||||||||||||||
Balance, July 4, 2021 | $ | 21,386 | 165,444 | $ | 20,680 | $ | 1,772,302 | $ | 15,322 | $ | 684,952 | $ | 2,493,256 | |||||||||||||||
For the Six Months Ended | ||||||||
July 4, 2021 | June 28, 2020 | |||||||
(in thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 533,831 | $ | 365,098 | ||||
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||||||||
Depreciation | 45,848 | 38,305 | ||||||
Stock-based compensation | 23,231 | 21,367 | ||||||
Amortization | 19,343 | 26,234 | ||||||
Loss on convertible debt conversion | 5,244 | — | ||||||
Provision for excess and obsolete inventory | 3,625 | 9,637 | ||||||
Contingent consideration adjustment | (7,227 | ) | 19,239 | |||||
Gains on investments | (4,650 | ) | (469 | ) | ||||
Deferred taxes | (800 | ) | (7,163 | ) | ||||
Retirement plans actuarial gains | (627 | ) | (99 | ) | ||||
Other | 199 | 523 | ||||||
Changes in operating assets and liabilities, net of business acquired: | ||||||||
Accounts receivable | (372,698 | ) | (331,040 | ) | ||||
Inventories | 19,908 | (3,728 | ) | |||||
Prepayments and other assets | (117,416 | ) | (49,479 | ) | ||||
Accounts payable and other liabilities | 86,790 | 113,578 | ||||||
Deferred revenue and customer advances | 15,189 | 28,655 | ||||||
Retirement plans contributions | (2,739 | ) | (2,501 | ) | ||||
Income taxes | (2,628 | ) | 37,842 | |||||
Net cash provided by operating activities | 244,423 | 265,999 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property, plant and equipment | (73,957 | ) | (84,014 | ) | ||||
Purchases of marketable securities | (398,086 | ) | (299,548 | ) | ||||
Proceeds from maturities of marketable securities | 460,213 | 182,984 | ||||||
Proceeds from sales of marketable securities | 116,112 | 26,661 | ||||||
Purchase of investment and acquisition of business | (12,000 | ) | 149 | |||||
Proceeds from life insurance | — | 546 | ||||||
Net cash provided by (used for) investing activities | 92,282 | (173,222 | ) | |||||
Cash flows from financing activities: | ||||||||
Issuance of common stock under stock purchase and stock option plans | 32,581 | 12,757 | ||||||
Repurchase of common stock | (196,584 | ) | (88,465 | ) | ||||
Payments of convertible debt principal | (66,828 | ) | — | |||||
Dividend payments | (33,271 | ) | (33,266 | ) | ||||
Payments related to net settlement of employee stock compensation awards | (31,794 | ) | (22,519 | ) | ||||
Payments of contingent consideration | — | (8,852 | ) | |||||
Net cash used for financing activities | (295,896 | ) | (140,345 | ) | ||||
Effects of exchange rate changes on cash and cash equivalents | (489 | ) | (925 | ) | ||||
Increase (decrease) in cash and cash equivalents | 40,320 | (48,493 | ) | |||||
Cash and cash equivalents at beginning of period | 914,121 | 773,924 | ||||||
Cash and cash equivalents at end of period | $ | 954,441 | $ | 725,431 | ||||
Non-cash investing activities: | ||||||||
Capital expenditures incurred but not yet paid: | $ | 4,503 | $ | 6,281 |
For the Six Months Ended | ||||||||
July 3, | July 4, | |||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 359,715 | $ | 533,831 | ||||
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||||||||
Depreciation | 44,460 | 45,848 | ||||||
Stock-based compensation | 25,122 | 23,231 | ||||||
Amortization | 10,095 | 19,343 | ||||||
Losses (gains) on investments | 8,973 | (4,650 | ) | |||||
Provision for excess and obsolete inventory | 6,695 | 3,625 | ||||||
Deferred taxes | (23,597 | ) | (800 | ) | ||||
Contingent consideration fair value adjustments | — | (7,227 | ) | |||||
Loss on convertible debt conversions | — | 5,244 | ||||||
Retirement plans actuarial gains | — | (627 | ) | |||||
Other | 522 | 199 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (146,384 | ) | (372,698 | ) | ||||
Inventories | (46,682 | ) | 19,908 | |||||
Prepayments and other assets | (94,751 | ) | (117,416 | ) | ||||
Accounts payable and other liabilities | (43,611 | ) | 86,790 | |||||
Deferred revenue and customer advances | 14,163 | 15,189 | ||||||
Retirement plans contributions | (2,618 | ) | (2,739 | ) | ||||
Income taxes | 10,815 | (2,628 | ) | |||||
Net cash provided by operating activities | 122,917 | 244,423 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property, plant and equipment | (89,743 | ) | (73,957 | ) | ||||
Purchases of marketable securities | (247,881 | ) | (398,086 | ) | ||||
Proceeds from maturities of marketable securities | 139,652 | 460,213 | ||||||
Proceeds from sales of marketable securities | 143,642 | 116,112 | ||||||
Purchase of investment | — | (12,000 | ) | |||||
Net cash (used for) provided by investing activities | (54,330 | ) | 92,282 | |||||
Cash flows from financing activities: | ||||||||
Issuance of common stock under stock purchase and stock option plans | 16,536 | 32,581 | ||||||
Repurchase of common stock | (532,799 | ) | (196,584 | ) | ||||
Payments of convertible debt principal | (42,292 | ) | (66,828 | ) | ||||
Dividend payments | (35,442 | ) | (33,271 | ) | ||||
Payments related to net settlement of employee stock compensation awards | (32,780 | ) | (31,794 | ) | ||||
Net cash used for financing activities | (626,777 | ) | (295,896 | ) | ||||
Effects of exchange rate changes on cash and cash equivalents | 8,014 | (489 | ) | |||||
(Decrease) increase in cash and cash equivalents | (550,176 | ) | 40,320 | |||||
Cash and cash equivalents at beginning of period | 1,122,199 | 914,121 | ||||||
Cash and cash equivalents at end of period | $ | 572,023 | $ | 954,441 | ||||
Non-cash investing activities: | ||||||||
Capital expenditures incurred but not yet paid: | $ | 1,855 | $ | 4,503 |
Semiconductor Test | Industrial Automation | |||||||||||||||||||||||||||||||||||
System on- a-Chip | Memory | System Test | Universal Robots | Mobile Industrial Robots | AutoGuide | Wireless Test | Corporate and Other | Total | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
For the Three Months Ended July 4, 2021 (1) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 675,958 | $ | 84,232 | $ | 88,197 | $ | 74,412 | $ | 15,091 | $ | 0 | $ | 51,619 | $ | (146 | ) | $ | 989,363 | |||||||||||||||||
Over Time | 65,712 | 8,074 | 16,622 | 1,665 | 809 | 209 | 3,274 | — | 96,365 | |||||||||||||||||||||||||||
Total | $ | 741,670 | $ | 92,306 | $ | 104,819 | $ | 76,077 | $ | 15,900 | $ | 209 | $ | 54,893 | $ | (146 | ) | $ | 1,085,728 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 710,995 | $ | 87,151 | $ | 61,230 | $ | 18,044 | $ | 2,439 | $ | — | $ | 45,802 | $ | — | $ | 925,661 | ||||||||||||||||||
Americas | 21,664 | 3,672 | 36,256 | 24,808 | 6,897 | 209 | 7,107 | (146 | ) | 100,467 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 9,011 | 1,483 | 7,333 | 33,225 | 6,564 | — | 1,984 | — | 59,600 | |||||||||||||||||||||||||||
Total | $ | 741,670 | $ | 92,306 | $ | 104,819 | $ | 76,077 | $ | 15,900 | $ | 209 | $ | 54,893 | $ | (146 | ) | $ | 1,085,728 | |||||||||||||||||
For the Three Months Ended June 28, 2020 (1) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 520,496 | $ | 80,032 | $ | 57,741 | $ | 41,804 | $ | 11,196 | $ | 3,408 | $ | 46,347 | $ | (253 | ) | $ | 760,771 | |||||||||||||||||
Over Time | 54,077 | 4,542 | 14,065 | 1,747 | 76 | 545 | 2,838 | — | 77,890 | |||||||||||||||||||||||||||
Total | $ | 574,573 | $ | 84,574 | $ | 71,806 | $ | 43,551 | $ | 11,272 | $ | 3,953 | $ | 49,185 | $ | (253 | ) | $ | 838,661 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 547,700 | $ | 82,492 | $ | 38,656 | $ | 14,279 | $ | 1,232 | $ | — | $ | 41,907 | $ | — | $ | 726,266 | ||||||||||||||||||
Americas | 16,251 | 855 | 28,494 | 11,364 | 2,390 | 3,953 | 5,353 | (253 | ) | 68,407 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 10,622 | 1,227 | 4,656 | 17,908 | 7,650 | — | 1,925 | — | 43,988 | |||||||||||||||||||||||||||
Total | $ | 574,573 | $ | 84,574 | $ | 71,806 | $ | 43,551 | $ | 11,272 | $ | 3,953 | $ | 49,185 | $ | (253 | ) | $ | 838,661 | |||||||||||||||||
For the Six Months Ended July 4, 2021 (2) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 1,040,148 | $ | 186,124 | $ | 207,511 | $ | 138,419 | $ | 29,155 | $ | (120 | ) | $ | 89,499 | $ | (289 | ) | $ | 1,690,447 | ||||||||||||||||
Over Time | 121,752 | 14,015 | 30,145 | 3,259 | 876 | 548 | 6,292 | — | 176,887 | |||||||||||||||||||||||||||
Total | $ | 1,161,900 | $ | 200,139 | $ | 237,656 | $ | 141,678 | $ | 30,031 | $ | 428 | $ | 95,791 | $ | (289 | ) | $ | 1,867,334 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 1,098,231 | $ | 191,200 | $ | 160,750 | $ | 35,877 | $ | 5,886 | $ | — | $ | 79,334 | $ | — | $ | 1,571,278 | ||||||||||||||||||
Americas | 42,443 | 7,092 | 63,915 | 42,961 | 12,050 | 428 | 12,876 | (289 | ) | 181,476 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 21,226 | 1,847 | 12,991 | 62,840 | 12,095 | — | 3,581 | — | 114,580 | |||||||||||||||||||||||||||
Total | $ | 1,161,900 | $ | 200,139 | $ | 237,656 | $ | 141,678 | $ | 30,031 | $ | 428 | $ | 95,791 | $ | (289 | ) | $ | 1,867,334 | |||||||||||||||||
For the Six Months Ended June 28, 2020 (2) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 868,542 | $ | 159,429 | $ | 158,453 | $ | 89,306 | $ | 20,293 | $ | 4,532 | $ | 87,403 | $ | (253 | ) | $ | 1,387,705 | |||||||||||||||||
Over Time | 106,171 | 9,494 | 29,429 | 3,942 | 117 | 891 | 5,267 | — | 155,311 | |||||||||||||||||||||||||||
Total | $ | 974,713 | $ | 168,923 | $ | 187,882 | $ | 93,248 | $ | 20,410 | $ | 5,423 | $ | 92,670 | $ | (253 | ) | $ | 1,543,016 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 910,433 | $ | 158,601 | $ | 118,674 | $ | 25,195 | $ | 2,825 | $ | — | $ | 79,711 | $ | — | $ | 1,295,439 | ||||||||||||||||||
Americas | 33,637 | 7,751 | 56,784 | 26,108 | 5,855 | 5,423 | 10,041 | (253 | ) | 145,346 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 30,643 | 2,571 | 12,424 | 41,945 | 11,730 | — | 2,918 | — | 102,231 | |||||||||||||||||||||||||||
Total | $ | 974,713 | $ | 168,923 | $ | 187,882 | $ | 93,248 | $ | 20,410 | $ | 5,423 | $ | 92,670 | $ | (253 | ) | $ | 1,543,016 | |||||||||||||||||
Semiconductor Test | Industrial Automation | |||||||||||||||||||||||||||||||||||
System on-a-Chip | Memory | System Test | Universal Robots | Mobile Industrial Robots | AutoGuide | Wireless Test | Corporate and Eliminations | Total | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
For the Three Months Ended July 3, 2022 (1) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 395,211 | $ | 74,790 | $ | 118,692 | $ | 80,409 | $ | 16,730 | $ | 1,071 | $ | 60,765 | $ | (193 | ) | $ | 747,475 | |||||||||||||||||
Over Time | 64,253 | 7,094 | 16,010 | 2,104 | 668 | 73 | 3,089 | — | 93,291 | |||||||||||||||||||||||||||
Total | $ | 459,464 | $ | 81,884 | $ | 134,702 | $ | 82,513 | $ | 17,398 | $ | 1,144 | $ | 63,854 | $ | (193 | ) | $ | 840,766 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 413,537 | $ | 78,996 | $ | 95,584 | $ | 17,357 | $ | 5,317 | $ | — | $ | 44,106 | $ | — | $ | 654,897 | ||||||||||||||||||
Americas | 28,714 | 2,552 | 33,409 | 27,732 | 6,085 | 1,144 | 17,460 | (193 | ) | 116,903 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 17,213 | 336 | 5,709 | 37,424 | 5,996 | — | 2,288 | — | 68,966 | |||||||||||||||||||||||||||
Total | $ | 459,464 | $ | 81,884 | $ | 134,702 | $ | 82,513 | $ | 17,398 | $ | 1,144 | $ | 63,854 | $ | (193 | ) | $ | 840,766 | |||||||||||||||||
For the Three Months Ended July 4, 2021 (1) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 675,958 | $ | 84,232 | $ | 88,197 | $ | 74,412 | $ | 15,091 | $ | — | $ | 51,619 | $ | (146 | ) | $ | 989,363 | |||||||||||||||||
Over Time | 65,712 | 8,074 | 16,622 | 1,665 | 809 | 209 | 3,274 | — | 96,365 | |||||||||||||||||||||||||||
Total | $ | 741,670 | $ | 92,306 | $ | 104,819 | $ | 76,077 | $ | 15,900 | $ | 209 | $ | 54,893 | $ | (146 | ) | $ | 1,085,728 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 710,995 | $ | 87,151 | $ | 61,230 | $ | 18,044 | $ | 2,439 | $ | — | $ | 45,802 | $ | — | $ | 925,661 | ||||||||||||||||||
Americas | 21,664 | 3,672 | 36,256 | 24,808 | 6,897 | 209 | 7,107 | (146 | ) | 100,467 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 9,011 | 1,483 | 7,333 | 33,225 | 6,564 | — | 1,984 | — | 59,600 | |||||||||||||||||||||||||||
Total | $ | 741,670 | $ | 92,306 | $ | 104,819 | $ | 76,077 | $ | 15,900 | $ | 209 | $ | 54,893 | $ | (146 | ) | $ | 1,085,728 | |||||||||||||||||
For the Six Months Ended July 3, 2022 (2) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 718,666 | $ | 163,513 | $ | 223,981 | $ | 163,591 | $ | 33,264 | $ | 1,281 | $ | 109,194 | $ | (539 | ) | $ | 1,412,951 | |||||||||||||||||
Over Time | 127,382 | 14,127 | 29,390 | 4,206 | 1,342 | 560 | 6,178 | — | 183,185 | |||||||||||||||||||||||||||
Total | $ | 846,048 | $ | 177,640 | $ | 253,371 | $ | 167,797 | $ | 34,606 | $ | 1,841 | $ | 115,372 | $ | (539 | ) | $ | 1,596,136 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 754,277 | $ | 172,147 | $ | 169,369 | $ | 35,978 | $ | 7,909 | $ | — | $ | 79,052 | $ | — | $ | 1,218,732 | ||||||||||||||||||
Americas | 58,428 | 4,598 | 70,017 | 55,880 | 13,952 | 1,841 | 27,147 | (539 | ) | 231,324 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 33,343 | 895 | 13,985 | 75,939 | 12,745 | — | 9,173 | — | 146,080 | |||||||||||||||||||||||||||
Total | $ | 846,048 | $ | 177,640 | $ | 253,371 | $ | 167,797 | $ | 34,606 | $ | 1,841 | $ | 115,372 | $ | (539 | ) | $ | 1,596,136 | |||||||||||||||||
For the Six Months Ended July 4, 2021 (2) | ||||||||||||||||||||||||||||||||||||
Timing of Revenue Recognition | ||||||||||||||||||||||||||||||||||||
Point in Time | $ | 1,040,148 | $ | 186,124 | $ | 207,511 | $ | 138,419 | $ | 29,155 | $ | (120 | ) | $ | 89,499 | $ | (289 | ) | $ | 1,690,447 | ||||||||||||||||
Over Time | 121,752 | 14,015 | 30,145 | 3,259 | 876 | 548 | 6,292 | — | 176,887 | |||||||||||||||||||||||||||
Total | $ | 1,161,900 | $ | 200,139 | $ | 237,656 | $ | 141,678 | $ | 30,031 | $ | 428 | $ | 95,791 | $ | (289 | ) | $ | 1,867,334 | |||||||||||||||||
Geographical Market | ||||||||||||||||||||||||||||||||||||
Asia Pacific | $ | 1,098,231 | $ | 191,200 | $ | 160,750 | $ | 35,877 | $ | 5,886 | $ | — | $ | 79,334 | $ | — | $ | 1,571,278 | ||||||||||||||||||
Americas | 42,443 | 7,092 | 63,915 | 42,961 | 12,050 | 428 | 12,876 | (289 | ) | 181,476 | ||||||||||||||||||||||||||
Europe, Middle East and Africa | 21,226 | 1,847 | 12,991 | 62,840 | 12,095 | — | 3,581 | — | 114,580 | |||||||||||||||||||||||||||
Total | $ | 1,161,900 | $ | 200,139 | $ | 237,656 | $ | 141,678 | $ | 30,031 | $ | 428 | $ | 95,791 | $ | (289 | ) | $ | 1,867,334 | |||||||||||||||||
(1) | Includes $1.9 million and $4.2 million in 2022 and “Revenue from Contracts with Customers.” |
(2) | Includes $4.2 million and $7.3 million in 2022 and “Revenue from Contracts with |
July 3, | December 31, | |||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Maintenance, service and training | $ | 83,464 | $ | 81,826 | ||||
Extended warranty | 65,791 | 64,168 | ||||||
Customer advances, undelivered elements and other | 64,229 | 55,112 | ||||||
Total deferred revenue and customer advances | $ | 213,484 | $ | 201,106 | ||||
July 4, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Raw material | $ | 117,339 | $ | 114,133 | ||||
Work-in-process | 37,884 | 25,408 | ||||||
Finished goods | 70,915 | 82,648 | ||||||
$ | 226,138 | $ | 222,189 | |||||
July 3, | December 31, | |||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Raw material | $ | 193,907 | $ | 155,641 | ||||
Work-in-process | 36,184 | 37,740 | ||||||
Finished goods | 65,534 | 49,949 | ||||||
$ | 295,625 | $ | 243,330 | |||||
July 4, 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 | $ | 568,630 | $ | — | $ | — | $ | 568,630 | ||||||||
Cash equivalents | 373,113 | 12,698 | — | 385,811 | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Commercial paper | — | 225,415 | — | 225,415 | ||||||||||||
U.S. Treasury securities | — | 102,316 | — | 102,316 | ||||||||||||
Corporate debt securities | — | 85,294 | — | 85,294 | ||||||||||||
Debt mutual funds | 8,030 | — | — | 8,030 | ||||||||||||
U.S. government agency securities | — | 4,508 | — | 4,508 | ||||||||||||
Certificates of deposit and time deposits | — | 1,344 | — | 1,344 | ||||||||||||
Non-U.S. government securities | — | 616 | — | 616 | ||||||||||||
Equity securities: | ||||||||||||||||
Mutual funds | 36,158 | — | — | 36,158 | ||||||||||||
$ | 985,931 | $ | 432,191 | $ | — | $ | 1,418,122 | |||||||||
Derivative assets | — | 25 | — | 25 | ||||||||||||
Total | $ | 985,931 | $ | 432,216 | $ | — | $ | 1,418,147 | ||||||||
Liabilities | ||||||||||||||||
Derivative liabilities | — | 365 | — | 365 | ||||||||||||
Total | $ | — | $ | 365 | $ | — | $ | 365 | ||||||||
Reported as follows: | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 941,743 | $ | 12,698 | $ | — | $ | 954,441 | ||||||||
Marketable securities | — | 282,121 | — | 282,121 | ||||||||||||
Long-term marketable securities | 44,188 | 137,372 | — | 181,560 | ||||||||||||
Prepayments and other current assets | — | 25 | — | 25 | ||||||||||||
Total | $ | 985,931 | $ | 432,216 | $ | — | $ | 1,418,147 | ||||||||
Liabilities | ||||||||||||||||
Other current liabilities | $ | — | $ | 365 | $ | — | $ | 365 | ||||||||
Total | $ | — | $ | 365 | $ | — | $ | 365 | ||||||||
July 3, 2022 | ||||||||||||||||
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 | $ | 447,312 | $ | — | $ | — | $ | 447,312 | ||||||||
Cash equivalents | 95,068 | 29,643 | — | 124,711 | ||||||||||||
Available-for-sale | ||||||||||||||||
Commercial paper | — | 150,443 | — | 150,443 | ||||||||||||
U.S. Treasury securities | — | 73,100 | — | 73,100 | ||||||||||||
Corporate debt securities | — | 49,344 | — | 49,344 | ||||||||||||
Debt mutual funds | 6,514 | — | — | 6,514 | ||||||||||||
U.S. government agency securities | — | 4,693 | — | 4,693 | ||||||||||||
Certificates of deposit and time deposits | — | 1,261 | — | 1,261 | ||||||||||||
Non-U.S. government securities | — | 546 | — | 546 | ||||||||||||
Equity securities: | ||||||||||||||||
Mutual funds | 35,944 | — | — | 35,944 | ||||||||||||
$ | 584,838 | $ | 309,030 | $ | — | $ | 893,868 | |||||||||
Derivative assets | — | 103 | — | 103 | ||||||||||||
Total | $ | 584,838 | $ | 309,133 | $ | — | $ | 893,971 | ||||||||
Liabilities | ||||||||||||||||
Derivative liabilities | $ | — | $ | 233 | $ | — | $ | 233 | ||||||||
Total | $ | — | $ | 233 | $ | — | $ | 233 | ||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 542,380 | $ | 29,643 | $ | — | $ | 572,023 | ||||||||
Marketable securities | — | 209,846 | — | 209,846 | ||||||||||||
Long-term marketable securities | 42,458 | 69,541 | — | 111,999 | ||||||||||||
Prepayments and other current assets | — | 103 | — | 103 | ||||||||||||
Total | $ | 584,838 | $ | 309,133 | $ | — | $ | 893,971 | ||||||||
Liabilities | . | |||||||||||||||
Other current liabilities | $ | — | $ | 233 | $ | — | $ | 233 | ||||||||
Total | $ | — | $ | 233 | $ | — | $ | 233 | ||||||||
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: | ||||||||||||||||
Equity mutual funds | 29,420 | — | — | 29,420 | ||||||||||||
$ | 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 | ||||||||
Reported as follows: | ||||||||||||||||
(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 and other current assets | — | 95 | — | 95 | ||||||||||||
Total | $ | 828,919 | $ | 725,557 | $ | — | $ | 1,554,476 | ||||||||
Liabilities | ||||||||||||||||
Other accrued liabilities | $ | — | $ | 504 | $ | — | $ | 504 | ||||||||
Long-term contingent consideration | — | — | 7,227 | 7,227 | ||||||||||||
Total | $ | — | $ | 504 | $ | 7,227 | $ | 7,731 | ||||||||
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 | — | |||||||||||||||
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 | ||||||||||||
$ | 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 | $ | — | $ | 118 | ||||||||
(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 and other current assets | — | 92 | — | 92 | ||||||||||||
Total | $ | 1,088,176 | $ | 412,204 | $ | — | $ | 1,500,380 | ||||||||
Liabilities | ||||||||||||||||
Other current liabilities | $ | — | $ | 118 | $ | — | $ | 118 | ||||||||
Total | $ | — | $ | 118 | $ | — | $ | 118 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 0 | $ | 20,472 | $ | 7,227 | $ | 39,705 | ||||||||
Fair value adjustment (a)(b) | 0 | 29,259 | (7,227 | ) | 19,239 | |||||||||||
Foreign currency impact | 0 | 6 | 0 | (355 | ) | |||||||||||
Payments (c) | 0 | 0 | 0 | (8,852 | ) | |||||||||||
Balance at end of period | $ | 0 | $ | 49,737 | $ | 0 | $ | 49,737 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, | July 4, | July 3, | July 4, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | 7,227 | ||||||||
Fair value adjustment (a) | — | — | — | (7,227 | ) | |||||||||||
Balance at end of period | $ | — | $ | — | $ | — | $ | — | ||||||||
(a) | In the six months ended July 4, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. |
1 1 |
On March 25, 2022, the arbitration claim filed by Industrial Automation LLC, sellers of AutoGuide, against Teradyne alleging or $26.7 million. As a result, Teradyne has no remainingnon-compliance with theearn-out provisions of the Membership Interests Purchase Agreement, dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide was settled fearn-out obligations. |
July 4, 2021 | December 31, 2020 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 954,441 | $ | 954,441 | $ | 914,121 | $ | 914,121 | ||||||||
Marketable securities | 463,681 | 463,681 | 640,260 | 640,260 | ||||||||||||
Derivative assets | 25 | 25 | 95 | 95 | ||||||||||||
Liabilities | ||||||||||||||||
Contingent consideration | — | — | 7,227 | 7,227 | ||||||||||||
Derivative liabilities | 365 | 365 | 504 | 504 | ||||||||||||
Convertible debt (1) | 357,379 | 1,595,912 | 410,111 | 1,739,553 |
July 3, 2022 | December 31, 2021 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 572,023 | $ | 572,023 | $ | 1,122,199 | $ | 1,122,199 | ||||||||
Marketable securities | 321,845 | 321,845 | 378,089 | 378,089 | ||||||||||||
Derivative assets | 103 | 103 | 92 | 92 | ||||||||||||
Liabilities | ||||||||||||||||
Derivative liabilities | 233 | 233 | 118 | 118 | ||||||||||||
Convertible debt | 74,428 | 233,339 | 108,426 | 604,648 |
July 3, 2022 | ||||||||||||||||||||
Available-for-Sale | ||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Commercial paper | $ | 150,695 | $ | 8 | $ | (260 | ) | $ | 150,443 | $ | 137,162 | |||||||||
U.S. Treasury securities | 75,962 | 42 | (2,904 | ) | 73,100 | 71,861 | ||||||||||||||
Corporate debt securities | 53,274 | 147 | (4,077 | ) | 49,344 | 46,289 | ||||||||||||||
Debt mutual funds | 6,783 | — | (269 | ) | 6,514 | 3,245 | ||||||||||||||
U.S. government agency securities | 4,786 | — | (93 | ) | 4,693 | 4,693 | ||||||||||||||
Certificates of deposit and time deposits | 1,261 | — | — | 1,261 | — | |||||||||||||||
Non-U.S. government securities | 546 | — | — | 546 | — | |||||||||||||||
$ | 293,307 | $ | 197 | $ | (7,603 | ) | $ | 285,901 | $ | 263,250 | ||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Marketable securities | $ | 210,598 | $ | 8 | $ | (760 | ) | $ | 209,846 | $ | 195,003 | |||||||||
Long-term marketable securities | 82,709 | 189 | (6,843 | ) | 76,055 | 68,247 | ||||||||||||||
$ | 293,307 | $ | 197 | $ | (7,603 | ) | $ | 285,901 | $ | 263,250 | ||||||||||
July 4, 2021 | ||||||||||||||||||||
Available-for-Sale | ||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Commercial paper | $ | 225,409 | $ | 7 | $ | (1 | ) | $ | 225,415 | $ | 19,194 | |||||||||
U.S. Treasury securities | 102,068 | 767 | (519 | ) | 102,316 | 72,750 | ||||||||||||||
Corporate debt securities | 79,586 | 5,814 | (106 | ) | 85,294 | 38,694 | ||||||||||||||
Debt mutual funds | 7,956 | 74 | — | 8,030 | — | |||||||||||||||
U.S. government agency securities | 4,490 | 22 | (4 | ) | 4,508 | 1,308 | ||||||||||||||
Certificates of deposit and time deposits | 1,344 | 0 | — | 1,344 | — | |||||||||||||||
Non-U.S. government securities | 616 | — | — | 616 | — | |||||||||||||||
$ | 421,469 | $ | 6,684 | $ | (630 | ) | $ | 427,523 | $ | 131,946 | ||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Market Value | Fair Market Value of Investments with Unrealized Losses | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Marketable securities | $ | 282,061 | $ | 93 | $ | (33 | ) | $ | 282,121 | $ | 59,990 | |||||||||
Long-term marketable securities | 139,408 | 6,591 | (597 | ) | 145,402 | 71,956 | ||||||||||||||
$ | 421,469 | $ | 6,684 | $ | (630 | ) | $ | 427,523 | $ | 131,946 | ||||||||||
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 | ||||||||||
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 | $ | 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 | 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 | ||||||||||
July 4, 2021 | ||||||||
Cost | Fair Market Value | |||||||
(in thousands) | ||||||||
Due within one year | $ | 282,061 | $ | 282,121 | ||||
Due after 1 year through 5 years | 90,625 | 90,940 | ||||||
Due after 5 years through 10 years | 6,089 | 6,585 | ||||||
Due after 10 years | 34,738 | 39,847 | ||||||
Total | $ | 413,513 | $ | 419,493 | ||||
July 3, 2022 | ||||||||
Cost | Fair Market Value | |||||||
(in thousands) | ||||||||
Due within one year | $ | 210,598 | $ | 209,846 | ||||
Due after 1 year through 5 years | 32,283 | 31,069 | ||||||
Due after 5 years through 10 years | 5,055 | 4,736 | ||||||
Due after 10 years | 38,588 | 33,736 | ||||||
Total | $ | 286,524 | $ | 279,387 | ||||
July 3, 2022 | December 31, 2021 | |||||||||||||||||||||||
Buy Position | Sell Position | Net Total | Buy Position | Sell Position | Net Total | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Japanese Yen | $ | (32.5 | ) | $ | — | $ | (32.5 | ) | $ | (31.4 | ) | $ | — | $ | (31.4 | ) | ||||||||
Taiwan Dollar | (27.2 | ) | — | (27.2 | ) | (35.1 | ) | — | (35.1 | ) | ||||||||||||||
Korean Won | (3.1 | ) | — | (3.1 | ) | (4.2 | ) | — | (4.2 | ) | ||||||||||||||
British Pound Sterling | (1.0 | ) | — | (1.0 | ) | (1.8 | ) | — | (1.8 | ) | ||||||||||||||
Singapore Dollar | — | 40.0 | 40.0 | — | 61.9 | 61.9 | ||||||||||||||||||
Euro | — | 39.8 | 39.8 | — | 44.9 | 44.9 | ||||||||||||||||||
Philippine Peso | — | 3.2 | 3.2 | — | 3.9 | 3.9 | ||||||||||||||||||
Chinese Yuan | — | 2.8 | 2.8 | — | 2.8 | 2.8 | ||||||||||||||||||
Total | $ | (63.8 | ) | $ | 85.8 | $ | 22.0 | $ | (72.5 | ) | $ | 113.5 | $ | 41.0 | ||||||||||
Balance Sheet Location | July 4, 2021 | December 31, 2020 | ||||||||||
(in thousands) | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign exchange contracts | Prepayments | $ | 25 | $ | 95 | |||||||
Foreign exchange contracts | Other current liabilities | (365 | ) | (504 | ) | |||||||
Total derivatives | $ | (340 | ) | $ | (409 | ) | ||||||
Balance Sheet Location | July 3, 2022 | December 31, 2021 | ||||||||
(in thousands) | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||
Foreign exchange contracts | Prepayments | $ | 103 | $ | 92 | |||||
Foreign exchange contracts | Other current liabilities | (233 | ) | (118 | ) | |||||
Total derivatives | $ | (130 | ) | $ | (26 | ) | ||||
Location of Losses (Gains) Recognized in Statement of Operations | For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange contracts | Other (income) expense, net | $ | 1,531 | $ | 470 | $ | 3,650 | $ | 4,481 |
Location of (Gains) Losses | For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
Recognized in | July 3, | July 4, | July 3, | July 4, | ||||||||||||||
Statement of Operations | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
(in thousands) | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign exchange contracts | Other (income) expense, net | $ | (1,703 | ) | $ | 1,531 | $ | (3,455 | ) | $ | 3,650 |
The above table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. For the three and six months ended July 3, 2022, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $3.7 million and $8.0 million, respectively. For the three and six months ended July 4, 2021, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $0.1 million and $0.3 million, respectively. |
July 4, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Debt principal | $ | 393,142 | $ | 459,971 | ||||
Unamortized discount | 35,763 | 49,860 | ||||||
Net carrying amount of convertible debt | $ | 357,379 | $ | 410,111 | ||||
July 3, 2022 | December 31, 2021 | |||||||
(in thousands) | ||||||||
Debt principal | $ | 74,688 | $ | 116,980 | ||||
Unamortized debt issuance fees (1) | 260 | 8,554 | ||||||
Net Carrying amount of convertible debt | $ | 74,428 | $ | 108,426 | ||||
July 4, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Current debt | $ | 213,761 | $ | 33,343 | ||||
Long-term debt | 143,618 | 376,768 | ||||||
Net carrying amount of convertible debt | $ | 357,379 | $ | 410,111 | ||||
July 3, 2022 | December 31, 2021 | |||||||
(in thousands) | ||||||||
Current debt | $ | 9,632 | $ | 19,182 | ||||
Long-term debt | 64,796 | 89,244 | ||||||
Net carrying amount of convertible debt | $ | 74,428 | $ | 108,426 | ||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Contractual interest expense on the coupon | $ | 121 | $ | 1,072 | $ | 432 | $ | 2,311 | ||||||||
Amortization of debt issuance fees recognized as interest expense (2) | 64 | 3,511 | 130 | 7,347 | ||||||||||||
Total interest expense on the convertible debt | $ | 185 | $ | 4,583 | $ | 562 | $ | 9,658 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Contractual interest expense on the coupon | $ | 1,072 | $ | 1,438 | $ | 2,311 | $ | 2,875 | ||||||||
Amortization of the discount component and debt issue fees recognized as interest expense | 3,511 | 3,839 | 7,347 | 7,631 | ||||||||||||
Total interest expense on the convertible debt | $ | 4,583 | $ | 5,277 | $ | 9,658 | $ | 10,506 | ||||||||
(1) | Unamortized debt issuance fees as of December 31, 2021 include unamortized debt discount of $ 8.1 million, which was eliminated with the adoption of ASU2020-6 on January 1, 2022. |
(2) | Three and six months ended July 4, 2021 includes the amortization of debt discount component, which was eliminated with the adoption of ASU 2020-06 on January 1, 2022. |
July 4, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Contract manufacturer and supplier prepayments | $ | 320,111 | $ | 212,286 | ||||
Prepaid maintenance and other services | 16,848 | 13,116 | ||||||
Prepaid taxes | 13,017 | 9,361 | ||||||
Other prepayments | 9,434 | 15,329 | ||||||
Total prepayments | $ | 359,410 | $ | 250,092 | ||||
July 3, | December 31, | |||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Contract manufacturer and supplier prepayments | $ | 460,727 | $ | 364,478 | ||||
Prepaid maintenance and other services | 17,421 | 13,660 | ||||||
Prepaid taxes | 8,675 | 15,090 | ||||||
Other prepayments | 11,270 | 13,038 | ||||||
Total prepayments | $ | 498,093 | $ | 406,266 | ||||
July 4, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Maintenance, service and training | $ | 83,557 | $ | 77,654 | ||||
Extended warranty | 63,525 | 51,929 | ||||||
Customer advances, undelivered elements and other | 60,334 | 63,438 | ||||||
Total deferred revenue and customer advances | $ | 207,416 | $ | 193,021 | ||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 23,893 | $ | 10,971 | $ | 16,633 | $ | 8,996 | ||||||||
Accruals for warranties issued during the period | 10,197 | 6,200 | 22,078 | 11,267 | ||||||||||||
Accruals related to pre-existing warranties | (3,450 | ) | 356 | (3,003 | ) | 1,412 | ||||||||||
Settlements made during the period | (4,964 | ) | (4,511 | ) | (10,032 | ) | (8,659 | ) | ||||||||
Balance at end of period | $ | 25,676 | $ | 13,016 | $ | 25,676 | $ | 13,016 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, | July 4, | July 3, | July 4, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 20,105 | $ | 23,893 | $ | 24,577 | $ | 16,633 | ||||||||
Accruals for warranties issued during the period | 6,429 | 10,197 | 10,530 | 22,078 | ||||||||||||
Accruals related to pre-existing warranties | (1,611 | ) | (3,450 | ) | (4,370 | ) | (3,003 | ) | ||||||||
Settlements made during the period | (8,887 | ) | (4,964 | ) | (14,701 | ) | (10,032 | ) | ||||||||
Balance at end of period | $ | 16,036 | $ | 25,676 | $ | 16,036 | $ | 25,676 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 53,908 | $ | 33,503 | $ | 51,929 | $ | 30,677 | ||||||||
Deferral of new extended warranty revenue | 16,290 | 11,450 | 23,805 | 19,050 | ||||||||||||
Recognition of extended warranty deferred revenue | (6,673 | ) | (4,775 | ) | (12,209 | ) | (9,549 | ) | ||||||||
Balance at end of period | $ | 63,525 | $ | 40,178 | $ | 63,525 | $ | 40,178 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, | July 4, | July 3, | July 4, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 65,726 | $ | 53,908 | $ | 64,168 | $ | 51,929 | ||||||||
Deferral of new extended warranty revenue | 9,788 | 16,290 | 21,563 | 23,805 | ||||||||||||
Recognition of extended warranty deferred revenue | (9,723 | ) | (6,673 | ) | (19,940 | ) | (12,209 | ) | ||||||||
Balance at end of period | $ | 65,791 | $ | 63,525 | $ | 65,791 | $ | 63,525 | ||||||||
For the Six Months Ended | ||||||||||||
July 4, 2021 | June 28, 2020 | For the Six Months Ended | ||||||||||
July 3, 2022 | July 4, 2021 | |||||||||||
Risk-free interest rate | 0.2% | 1.5% | 1.4 | % | 0.2 | % | ||||||
Teradyne volatility-historical | 43.9% | 34.9% | 47.1 | % | 43.9 | % | ||||||
NYSE Composite Index volatility-historical | 22.9% | 11.4% | 22.7 | % | 22.9 | % | ||||||
Dividend yield | 0.4% | 0.6% | 0.4 | % | 0.4 | % |
For the Six Months Ended | For the Six Months Ended | |||||||||||
July 4, 2021 | June 28, 2020 | |||||||||||
July 3, 2022 | July 4, 2021 | |||||||||||
Expected life (years) | 5.0 | 5.0 | 4.0 | 5.0 | ||||||||
Risk-free interest rate | 0.4% | 1.6% | 1.6 | % | 0.4 | % | ||||||
Volatility-historical | 37.8% | 31.6% | 43.7 | % | 37.8 | % | ||||||
Dividend yield | 0.4% | 0.6% | 0.4 | % | 0.4 | % |
Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Marketable Securities | Retirement Plans Prior Service Credit | Total | Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Marketable Securities | Retirement Plans Prior Service Credit | Total | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Six Months Ended July 3, 2022 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2021, net of tax of $0, $1,055, $(1,128), $0, respectively | $ | (10,818 | ) | $ | 3,704 | $ | 1,166 | $ | (5,948 | ) | ||||||||||||||||||||||
Other comprehensive loss before reclassifications, net of tax of $0, $(2,573), $0, respectively | (37,307 | ) | (9,910 | ) | — | $ | (47,217 | ) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $59, $(1), respectively | — | 209 | (3 | ) | 206 | |||||||||||||||||||||||||||
Net current period other comprehensive loss, net of tax of $0, $(2,514), $(1), respectively | (37,307 | ) | (9,701 | ) | (3 | ) | (47,011 | ) | ||||||||||||||||||||||||
Balance at July 3, 2022, net of tax of $0, $(1,459), $(1,129), respectively | $ | (48,125 | ) | $ | (5,997 | ) | $ | 1,163 | $ | (52,959 | ) | |||||||||||||||||||||
Six Months Ended July 4, 2021 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2020, net of tax of $0, $1,910, $(1,126), respectively | $ | 25,389 | $ | 6,954 | $ | 1,173 | $ | 33,516 | $ | 25,389 | $ | 6,954 | $ | 1,173 | $ | 33,516 | ||||||||||||||||
Other comprehensive loss before reclassifications, net of tax of $0, $(472), $0, respectively | (15,974 | ) | (1,776 | ) | 0 | (17,750 | ) | (15,974 | ) | (1,776 | ) | — | (17,750 | ) | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(121), $(1), respectively | 0 | (441 | ) | (3 | ) | (444 | ) | — | (441 | ) | (3 | ) | (444 | ) | ||||||||||||||||||
Net current period other comprehensive loss, net of tax of $0, $(593), $(1), respectively | (15,974 | ) | (2,217 | ) | (3 | ) | (18,194 | ) | (15,974 | ) | (2,217 | ) | (3 | ) | (18,194 | ) | ||||||||||||||||
Balance at July 4, 2021, net of tax of $0, $1,317, $(1,127), respectively | $ | 9,415 | $ | 4,737 | $ | 1,170 | $ | 15,322 | $ | 9,415 | $ | 4,737 | $ | 1,170 | $ | 15,322 | ||||||||||||||||
Six Months Ended June 28, 2020 | ||||||||||||||||||||||||||||||||
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, $1,271, $0, respectively | 7,026 | 4,830 | 0 | 11,856 | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(421), $(1), respectively | 0 | (1,499 | ) | (3 | ) | (1,502 | ) | |||||||||||||||||||||||||
Net current period other comprehensive income (loss), net of tax of $0, $850, $(1), respectively | 7,026 | 3,331 | (3 | ) | 10,354 | |||||||||||||||||||||||||||
Balance at June 28, 2020, net of tax of $0, $1,796, $(1,125), respectively | $ | (16,488 | ) | $ | 6,811 | $ | 1,177 | $ | (8,500 | ) | ||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | For the Three Months Ended | For the Six Months Ended | Affected Line Item in the Statements of Operations | |||||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Available-for-sale marketable securities: | ||||||||||||||||||||
Unrealized (losses) gains, net of tax of $(2), $277, $121, $421, respectively | $ | (3 | ) | $ | 983 | $ | 441 | $ | 1,499 | Other (income) expense, net | | |||||||||
Defined benefit post-retirement plan: | ||||||||||||||||||||
Amortization of prior service credit, net of tax of $0, $0, $1, $1, respectively | 2 | 2 | 3 | 3 | (a) | |||||||||||||||
Total reclassifications, net of tax of $(2), $277, $122, $422, respectively | $ | (1 | ) | $ | 985 | $ | 444 | $ | 1,502 | Net income | ||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | For the Three Months Ended | For the Six Months Ended | Affected Line Item in the Statements of Operations | |||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||||
(in thousands) | ||||||||||||||||||
Available-for-sale | ||||||||||||||||||
Unrealized (losses) gains, net of tax of $(77), $(2), $(59), $121, respectively | $ | (274 | ) | $ | (3 | ) | $ | (209 | ) | $ | 441 | Other (income) | ||||||
Defined benefit postretirement plan: | ||||||||||||||||||
Amortization of prior service credit, net of tax of $0, $0, $1, $1, respectively | 2 | 2 | 3 | 3 | (a) | |||||||||||||
Total reclassifications, net of tax of $(77), $(2), $(58), $122, respectively | $ | (272 | ) | $ | (1 | ) | $ | (206 | ) | $ | 444 | Net income | ||||||
(a) | The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note P: “Retirement Plans.” |
Industrial Automation | System Test | Wireless Test | Semiconductor Test | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance at December 31, 2020 | ||||||||||||||||||||
Goodwill | $ | 433,752 | $ | 158,699 | $ | 361,819 | $ | 262,155 | $ | 1,216,425 | ||||||||||
Accumulated impairment losses | 0 | (148,183 | ) | (353,843 | ) | (260,540 | ) | (762,566 | ) | |||||||||||
433,752 | 10,516 | 7,976 | 1,615 | 453,859 | ||||||||||||||||
Foreign currency translation adjustment | (12,191 | ) | 0 | 0 | (71 | ) | (12,262 | ) | ||||||||||||
Balance at July 4, 2021 | ||||||||||||||||||||
Goodwill | 421,561 | 158,699 | 361,819 | 262,084 | 1,204,163 | |||||||||||||||
Accumulated impairment losses | 0 | (148,183 | ) | (353,843 | ) | (260,540 | ) | (762,566 | ) | |||||||||||
$ | 421,561 | $ | 10,516 | $ | 7,976 | $ | 1,544 | $ | 441,597 | |||||||||||
Industrial Automation | Wireless Test | Semiconductor Test | System Test | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance at December 31, 2021 | ||||||||||||||||||||
Goodwill | $ | 405,971 | $ | 361,819 | $ | 262,101 | $ | 158,699 | $ | 1,188,590 | ||||||||||
Accumulated impairment losses | — | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
Total Goodwill | 405,971 | 7,976 | 1,561 | 10,516 | 426,024 | |||||||||||||||
Foreign currency translation adjustment | (28,225 | ) | — | (66 | ) | — | (28,291 | ) | ||||||||||||
Balance at July 3, 2022 | ||||||||||||||||||||
Goodwill | 377,746 | 361,819 | 262,035 | 158,699 | 1,160,299 | |||||||||||||||
Accumulated impairment losses | — | (353,843 | ) | (260,540 | ) | (148,183 | ) | (762,566 | ) | |||||||||||
Total Goodwill | $ | 377,746 | $ | 7,976 | $ | 1,495 | $ | 10,516 | $ | 397,733 | ||||||||||
Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation Adjustment | Net Carrying Amount | |||||||||||||
Balance at July 4, 2021 | (in thousands) | |||||||||||||||
Developed technology | $ | 272,547 | $ | (216,820 | ) | $ | (2,779 | ) | $ | 52,948 | ||||||
Customer relationships | 57,739 | (47,780 | ) | 191 | 10,150 | |||||||||||
Tradenames and trademarks | 70,120 | (45,187 | ) | 90 | 25,023 | |||||||||||
Total intangible assets | $ | 400,406 | $ | (309,787 | ) | $ | (2,498 | ) | $ | 88,121 | ||||||
Balance at December 31, 2020 | ||||||||||||||||
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 | ||||||
Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation Adjustment | Net Carrying Amount | |||||||||||||
Balance at July 3, 2022 | (in thousands) | |||||||||||||||
Developed technology | $ | 272,547 | $ | (229,766 | ) | $ | (6,182 | ) | $ | 36,599 | ||||||
Customer relationships | 57,739 | (50,058 | ) | 149 | 7,830 | |||||||||||
Tradenames and trademarks | 59,387 | (39,706 | ) | (1,601 | ) | 18,080 | ||||||||||
Total intangible assets | $ | 389,673 | $ | (319,530 | ) | $ | (7,634 | ) | $ | 62,509 | ||||||
Balance, December 31, 2021 | ||||||||||||||||
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 | ||||||
Year | Amortization Expense | Amortization Expense | ||||||
(in thousands) | (in thousands) | |||||||
2021(remainder) | $ | 10,636 | ||||||
2022 | 20,570 | $ | 9,547 | |||||
2023 | 20,084 | 18,642 | ||||||
2024 | 19,776 | 18,336 | ||||||
2025 | 11,756 | 11,154 | ||||||
2026 | 2,333 | |||||||
Thereafter | 5,299 | 2,497 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Net income for basic and diluted net income per share | $ | 328,319 | $ | 188,908 | $ | 533,831 | $ | 365,098 | ||||||||
Weighted average common shares-basic | 165,995 | 165,789 | 166,243 | 166,189 | ||||||||||||
Effect of dilutive potential common shares: | ||||||||||||||||
Incremental shares from assumed conversion of convertible notes (1) | 9,578 | 7,599 | 9,944 | 7,466 | ||||||||||||
Convertible note hedge warrant shares (2) | 10,073 | 5,824 | 9,751 | 5,658 | ||||||||||||
Restricted stock units | 1,015 | 913 | 1,205 | 1,038 | ||||||||||||
Stock options | 78 | 132 | 93 | 133 | ||||||||||||
Employee stock purchase plan | 11 | 0 | 9 | 13 | ||||||||||||
Dilutive potential common shares | 20,755 | 14,468 | 21,002 | 14,308 | ||||||||||||
Weighted average common shares-diluted | 186,750 | 180,257 | 187,245 | 180,497 | ||||||||||||
Net income per common share-basic | $ | 1.98 | $ | 1.14 | $ | 3.21 | $ | 2.20 | ||||||||
Net income per common share-diluted | $ | 1.76 | $ | 1.05 | $ | 2.85 | $ | 2.02 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Net income for basic and diluted net income per share | $ | 197,787 | $ | 328,319 | $ | 359,715 | $ | 533,831 | ||||||||
Weighted average common shares-basic | 159,563 | 165,995 | 160,805 | 166,243 | ||||||||||||
Effect of dilutive potential common shares: | ||||||||||||||||
Convertible note hedge warrant shares (1) | 9,029 | 10,073 | 9,528 | 9,751 | ||||||||||||
Incremental shares from assumed conversion of convertible notes (2) | 1,900 | 9,578 | 2,220 | 9,944 | ||||||||||||
Restricted stock units | 581 | 1,015 | 730 | 1,205 | ||||||||||||
Stock options | 54 | 78 | 61 | 93 | ||||||||||||
Employee stock purchase plan | 32 | 11 | 23 | 9 | ||||||||||||
Dilutive potential common shares | 11,596 | 20,755 | 12,562 | 21,002 | ||||||||||||
Weighted average common shares-diluted | 171,159 | 186,750 | 173,367 | 187,245 | ||||||||||||
Net income per common share-basic | $ | 1.24 | $ | 1.98 | $ | 2.24 | $ | 3.21 | ||||||||
Net income per common share-diluted | $ | 1.16 | $ | 1.76 | $ | 2.07 | $ | 2.85 | ||||||||
(1) | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant 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 assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price, the number of convertible notes shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. |
For the Three Months Ended | ||||||||||||||||
July 4, 2021 | June 28, 2020 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 452 | $ | 245 | $ | 433 | $ | 208 | ||||||||
Interest cost | 1,096 | 88 | 1,523 | 119 | ||||||||||||
Expected return on plan assets | (936 | ) | (17 | ) | (1,232 | ) | (15 | ) | ||||||||
Net actuarial (gain) loss | (400 | ) | — | 180 | — | |||||||||||
Total net periodic pension cost | $ | 212 | $ | 316 | $ | 904 | $ | 312 | ||||||||
For the Six Months Ended | ||||||||||||||||
July 4, 2021 | June 28, 2020 | |||||||||||||||
UnitedStates | Foreign | UnitedStates | Foreign | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 905 | $ | 491 | $ | 866 | $ | 417 | ||||||||
Interest cost | 2,196 | 175 | 3,045 | 238 | ||||||||||||
Expected return on plan assets | (1,872 | ) | (33 | ) | (2,464 | ) | (31 | ) | ||||||||
Net actuarial (gain) loss | (400 | ) | — | 180 | — | |||||||||||
Total net periodic pension cost | $ | 829 | $ | 633 | $ | 1,627 | $ | 624 | ||||||||
For the Three Months Ended | ||||||||||||||||
July 3, 2022 | July 4, 2021 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 397 | $ | 180 | $ | 452 | $ | 245 | ||||||||
Interest cost | 1,221 | 120 | 1,096 | 88 | ||||||||||||
Expected return on plan assets | (732 | ) | (18 | ) | (936 | ) | (17 | ) | ||||||||
Net actuarial gain | (45 | ) | — | (400 | ) | — | ||||||||||
Total net periodic pension cost | $ | 841 | $ | 282 | $ | 212 | $ | 316 | ||||||||
For the Six Months Ended | ||||||||||||||||
July 3, 2022 | July 4, 2021 | |||||||||||||||
United States | Foreign | United States | Foreign | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 794 | $ | 386 | $ | 905 | $ | 491 | ||||||||
Interest cost | 2,443 | 238 | 2,196 | 175 | ||||||||||||
Expected return on plan assets | (1,463 | ) | (38 | ) | (1,872 | ) | (33 | ) | ||||||||
Net actuarial gain | (45 | ) | — | (400 | ) | — | ||||||||||
Total net periodic pension cost | $ | 1,729 | $ | 586 | $ | 829 | $ | 633 | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 17 | $ | 17 | $ | 33 | $ | 28 | ||||||||
Interest cost | 41 | 58 | 85 | 120 | ||||||||||||
Amortization of prior service credit | (2 | ) | (2 | ) | (4 | ) | (4 | ) | ||||||||
Net actuarial gain | (228 | ) | (279 | ) | (228 | ) | (279 | ) | ||||||||
Total net periodic postretirement benefit credit | $ | (172 | ) | $ | (206 | ) | $ | (114 | ) | $ | (135 | ) | ||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 15 | $ | 17 | $ | 32 | $ | 33 | ||||||||
Interest cost | 45 | 41 | 88 | 85 | ||||||||||||
Amortization of prior service credit | (2 | ) | (2 | ) | (4 | ) | (4 | ) | ||||||||
Net actuarial loss (gain) | 54 | (228 | ) | 54 | (228 | ) | ||||||||||
Total net periodic postretirement benefit cost (credit) | $ | 112 | $ | (172 | ) | $ | 170 | $ | (114 | ) | ||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
U.S. statutory federal tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||
Foreign taxes | (4.3 | ) | (4.6 | ) | (4.5 | ) | (5.1 | ) | ||||||||
International provisions of the U.S. Tax Cuts and Jobs Act of 2017 | (1.7 | ) | (1.9 | ) | (1.6 | ) | (1.1 | ) | ||||||||
Tax credits | (1.2 | ) | (1.4 | ) | (1.2 | ) | (1.6 | ) | ||||||||
Discrete benefit related to equity compensation | (0.2 | ) | (0.1 | ) | (2.4 | ) | (2.0 | ) | ||||||||
Other, net | 0.9 | 0.1 | 0.9 | 0.7 | ||||||||||||
Effective tax rate | 14.5 | % | 13.1 | % | 12.2 | % | 11.9 | % | ||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||
U.S. statutory federal tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||
Non-deductible officers’ compensation | 1.4 | 0.8 | 1.3 | 0.8 | ||||||||||||
Foreign taxes | (3.2 | ) | (4.3 | ) | (3.3 | ) | (4.5 | ) | ||||||||
Tax credits | (2.0 | ) | (1.2 | ) | (1.8 | ) | (1.2 | ) | ||||||||
International provisions of the U.S. Tax Cuts and Jobs Act of 2017 | (1.0 | ) | (1.7 | ) | (1.2 | ) | (1.6 | ) | ||||||||
Discrete benefit related to equity compensation | (0.2 | ) | (0.2 | ) | (2.9 | ) | (2.4 | ) | ||||||||
Other, net | 1.1 | 0.1 | 1.0 | 0.1 | ||||||||||||
Effective tax rate | 17.1 | % | 14.5 | % | 14.1 | % | 12.2 | % | ||||||||
Semiconductor Test | System Test | Industrial Automation | Wireless Test | Corporate and Other | Consolidated | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Three Months Ended July 4, 2021 | ||||||||||||||||||||||||
Revenues | $ | 833,976 | $ | 104,819 | $ | 92,186 | $ | 54,893 | $ | (146 | ) | $ | 1,085,728 | |||||||||||
Income (loss) before income taxes (1)(2) | 337,302 | 33,954 | (9,837 | ) | 21,472 | 1,135 | 384,026 | |||||||||||||||||
Total assets (3) | 1,518,941 | 146,296 | 687,022 | 117,702 | 1,530,961 | 4,000,922 | ||||||||||||||||||
Three Months Ended June 28, 2020 | ||||||||||||||||||||||||
Revenues | $ | 659,147 | $ | 71,806 | $ | 58,776 | $ | 49,185 | $ | (253 | ) | $ | 838,661 | |||||||||||
Income (loss) before income taxes (1)(2) | 228,787 | 19,193 | (11,403 | ) | 14,482 | (33,768 | ) | 217,291 | ||||||||||||||||
Total assets (3) | 1,192,355 | 126,164 | 662,103 | 108,066 | 1,160,501 | 3,249,189 | ||||||||||||||||||
Six Months Ended July 4, 2021 | ||||||||||||||||||||||||
Revenues | $ | 1,362,039 | $ | 237,656 | $ | 172,137 | $ | 95,791 | $ | (289 | ) | $ | 1,867,334 | |||||||||||
Income (loss) before income taxes (1)(2) | 513,670 | 85,015 | (22,804 | ) | 31,088 | 1,050 | 608,019 | |||||||||||||||||
Total assets (3) | 1,518,941 | 146,296 | 687,022 | 117,702 | 1,530,961 | 4,000,922 | ||||||||||||||||||
Six Months Ended June 28, 2020 | ||||||||||||||||||||||||
Revenues | $ | 1,143,636 | $ | 187,882 | $ | 119,081 | $ | 92,670 | $ | (253 | ) | $ | 1,543,016 | |||||||||||
Income (loss) before income taxes (1)(2) | 382,603 | 67,600 | (26,738 | ) | 24,702 | (33,808 | ) | 414,359 | ||||||||||||||||
Total assets (3) | 1,192,355 | 126,164 | 662,103 | 108,066 | 1,160,501 | 3,249,189 |
Semiconductor Test | System Test | Industrial Automation | Wireless Test | Corporate and Eliminations | Consolidated | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Three Months Ended July 3, 2022 | ||||||||||||||||||||||||
Revenues | $ | 541,348 | $ | 134,702 | $ | 101,055 | $ | 63,854 | $ | (193 | ) | $ | 840,766 | |||||||||||
Income (loss) before income taxes (1)(2) | 177,782 | 54,042 | (6,406 | ) | 25,393 | (12,219 | ) | 238,592 | ||||||||||||||||
Total assets (3) | 1,449,878 | 229,359 | 644,099 | 118,445 | 1,046,645 | 3,488,426 | ||||||||||||||||||
Three Months Ended July 4, 2021 | ||||||||||||||||||||||||
Revenues | $ | 833,976 | $ | 104,819 | $ | 92,186 | $ | 54,893 | $ | (146 | ) | $ | 1,085,728 | |||||||||||
Income (loss) before income taxes (1)(2) | 337,302 | 33,954 | (9,837 | ) | 21,472 | 1,135 | 384,026 | |||||||||||||||||
Total assets (3) | 1,518,941 | 146,296 | 687,022 | 117,702 | 1,530,961 | 4,000,922 | ||||||||||||||||||
Six Months Ended July 3, 2022 | ||||||||||||||||||||||||
Revenues | $ | 1,023,688 | $ | 253,371 | $ | 204,244 | $ | 115,372 | $ | (539 | ) | $ | 1,596,136 | |||||||||||
Income (loss) before income taxes (1)(2) | 327,487 | 95,365 | (11,504 | ) | 44,012 | (36,409 | ) | 418,951 | ||||||||||||||||
Total assets (3) | 1,449,878 | 229,359 | 644,099 | 118,445 | 1,046,645 | 3,488,426 | ||||||||||||||||||
Six Months Ended July 4, 2021 | ||||||||||||||||||||||||
Revenues | $ | 1,362,039 | $ | 237,656 | $ | 172,137 | $ | 95,791 | $ | (289 | ) | $ | 1,867,334 | |||||||||||
Income (loss) before income taxes (1)(2) | 513,670 | 85,015 | (22,804 | ) | 31,088 | 1,050 | 608,019 | |||||||||||||||||
Total assets (3) | 1,518,941 | 146,296 | 687,022 | 117,702 | 1,530,961 | 4,000,922 |
(1) | Included in Corporate and and environmental fees, contingent consideration fair value adjustments, |
(2) | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and, for the three and six months ended July 4, 2021, loss on convertible debt |
(3) | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets. |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Semiconductor Test: | ||||||||||||||||
Cost of revenues - inventory charge | $ | — | $ | 3,799 | $ | 1,234 | $ | 6,825 | ||||||||
Restructuring and other - c ontract termination settlement charge | — | 4,000 | — | 4,000 | ||||||||||||
Industrial Automation: | ||||||||||||||||
Restructuring and other - acquisition related expenses and compensation | $ | — | $ | — | $ | 550 | $ | 790 | ||||||||
Cost of revenues - inventory charge | — | — | 1,285 | — | ||||||||||||
Wireless: | ||||||||||||||||
Cost of revenues - inventory charge | $ | — | $ | 1,582 | $ | 672 | $ | 2,155 | ||||||||
Corporate and Other: | ||||||||||||||||
Restructuring and other - other | $ | 1,700 | $ | 750 | $ | 1,846 | $ | 750 | ||||||||
Other (income) expense, net - l oss on convertible debt conversion | 1,175 | — | 5,244 | — | ||||||||||||
Restructuring and other - AutoGuide contingent consideration adjustment | — | 29,927 | (7,227 | ) | 22,785 | |||||||||||
Restructuring and other - acquisition related expenses and compensation | — | 2,974 | (513 | ) | 3,715 | |||||||||||
Restructuring and other - MiR contingent consideration adjustment | — | (668 | ) | — | (3,546 | ) |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||
(in thousands) | ||||||||||||||||
Semiconductor Test: | ||||||||||||||||
Cost of revenues—inventory charge | $ | 2,071 | $ | — | $ | 2,315 | $ | 1,234 | ||||||||
Industrial Automation: | ||||||||||||||||
Cost of revenues—inventory charge | $ | 831 | $ | — | $ | 1,197 | $ | 1,285 | ||||||||
Restructuring and other—acquisition related expenses and compensation | — | — | — | 550 | ||||||||||||
Wireless: | ||||||||||||||||
Cost of revenues—inventory charge | $ | 2,099 | $ | — | $ | 2,976 | $ | 672 | ||||||||
Corporate and Eliminations: | ||||||||||||||||
Restructuring and other—other | $ | 1,500 | $ | 1,700 | $ | 2,000 | $ | 1,846 | ||||||||
Restructuring and other—legal settlement charge | — | — | 14,700 | — | ||||||||||||
Other (income) expense, net—loss on convertible debt conversions | — | 1,175 | — | 5,244 | ||||||||||||
Restructuring and other—AutoGuide contingent consideration adjustment | — | — | — | (7,227 | ) | |||||||||||
Restructuring and other—acquisition related expenses and compensation | — | — | — | (513 | ) |
Item 2: | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||||
July 4, 2021 | June 28, 2020 | July 4, 2021 | June 28, 2020 | July 3, 2022 | July 4, 2021 | July 3, 2022 | July 4, 2021 | |||||||||||||||||||||||||
Percentage of revenues: | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Products | 88 | % | 88 | % | 86 | % | 87 | % | 83 | % | 88 | % | 83 | % | 86 | % | ||||||||||||||||
Services | 12 | 12 | 14 | 13 | 17 | 12 | 17 | 14 | ||||||||||||||||||||||||
Total revenues | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | ||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||||||
Cost of products | 36 | 38 | 35 | 38 | 33 | 36 | 32 | 35 | ||||||||||||||||||||||||
Cost of services | 5 | 5 | 5 | 5 | 7 | 5 | 7 | 5 | ||||||||||||||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 40 | 44 | 41 | 43 | 40 | 40 | 40 | 41 | ||||||||||||||||||||||||
Gross profit | 60 | 56 | 59 | 57 | 60 | 60 | 60 | 59 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Selling and administrative | 13 | 14 | 14 | 15 | 17 | 13 | 18 | 14 | ||||||||||||||||||||||||
Engineering and development | 10 | 11 | 11 | 12 | 13 | 10 | 14 | 11 | ||||||||||||||||||||||||
Acquired intangible assets amortization | — | 1 | 1 | 1 | — | — | 1 | 1 | ||||||||||||||||||||||||
Restructuring and other | — | 3 | — | 1 | — | — | 1 | — | ||||||||||||||||||||||||
Total operating expenses | 24 | 29 | 26 | 29 | 31 | 24 | 33 | 26 | ||||||||||||||||||||||||
Income from operations | 36 | 27 | 33 | 28 | 29 | 36 | 27 | 33 | ||||||||||||||||||||||||
Non-operating (income) expense: | ||||||||||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Interest expense | 1 | 1 | 1 | 1 | — | 1 | — | 1 | ||||||||||||||||||||||||
Other (income) expense, net | — | — | — | — | 1 | — | 1 | — | ||||||||||||||||||||||||
Income before income taxes | 35 | 26 | 33 | 27 | 28 | 35 | 26 | 33 | ||||||||||||||||||||||||
Income tax provision | 5 | 3 | 4 | 3 | 5 | 5 | 4 | 4 | ||||||||||||||||||||||||
Net income | 30 | % | 23 | % | 29 | % | 24 | % | 24 | % | 30 | % | 23 | % | 29 | % | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
For the Three Months Ended | July 3, 2022 | July 4, 2021 | Dollar Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Semiconductor Test | $ | 834.0 | $ | 659.1 | $ | 174.9 | $ | 541.3 | $ | 834.0 | $ | (292.7 | ) | |||||||||||
System Test | 104.8 | 71.8 | 33.0 | 134.7 | 104.8 | 29.9 | ||||||||||||||||||
Industrial Automation | 92.2 | 58.8 | 33.4 | 101.1 | 92.2 | 8.9 | ||||||||||||||||||
Wireless Test | 54.9 | 49.2 | 5.7 | 63.9 | 54.9 | 9.0 | ||||||||||||||||||
Corporate and Other | (0.1 | ) | (0.3 | ) | 0.2 | |||||||||||||||||||
Corporate and Eliminations | (0.2 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||||||||
$ | 1,085.7 | $ | 838.7 | $ | 247.0 | $ | 840.8 | $ | 1,085.7 | $ | (244.9 | ) | ||||||||||||
For the Three Months Ended | ||||||||||||||||
For the Three Months Ended | July 3, 2022 | July 4, 2021 | ||||||||||||||
July 4, 2021 | June 28, 2020 | |||||||||||||||
Taiwan | 44 | % | 51 | % | 25 | % | 44 | % | ||||||||
Korea | 17 | 9 | ||||||||||||||
United States | 14 | 9 | ||||||||||||||
China | 15 | 14 | 13 | 15 | ||||||||||||
United States | 9 | 7 | ||||||||||||||
Korea | 9 | 6 | ||||||||||||||
Philippines | 6 | 2 | ||||||||||||||
Europe | 5 | 6 | 8 | 5 | ||||||||||||
Japan | 5 | 7 | ||||||||||||||
Thailand | 3 | 3 | 6 | 3 | ||||||||||||
Malaysia | 2 | 1 | 5 | 2 | ||||||||||||
Japan | 5 | 5 | ||||||||||||||
Philippines | 3 | 6 | ||||||||||||||
Singapore | 1 | 2 | 2 | 1 | ||||||||||||
Rest of World | 1 | 1 | 2 | 1 | ||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||
(1) | Revenues attributable to a country are based on location of customer site. |
For the Three Months Ended | ||||||||||||||||||||||||
For the Three Months Ended | July 3, 2022 | July 4, 2021 | Dollar/Point Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar/ Point Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Gross profit | $ | 647.0 | $ | 471.5 | $ | 175.5 | $ | 506.4 | $ | 647.0 | $ | (140.6 | ) | |||||||||||
Percent of total revenues | 59.6 | % | 56.2 | % | 3.4 | 60.2 | % | 59.6 | % | 0.6 |
For the Three Months Ended | ||||||||||||||||||||||||
For the Three Months Ended | July 3, 2022 | July 4, 2021 | Dollar Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Selling and administrative | $ | 140.2 | $ | 113.3 | $ | 26.9 | $ | 139.5 | $ | 140.2 | $ | (0.7 | ) | |||||||||||
Percent of total revenues | 12.9 | % | 13.5 | % | 16.6 | % | 12.9 | % |
For the Three Months Ended | ||||||||||||||||||||||||
For the Three Months Ended | July 3, 2022 | July 4, 2021 | Dollar Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Engineering and development | $ | 110.0 | $ | 94.1 | $ | 15.9 | $ | 112.0 | $ | 110.0 | $ | 2.0 | ||||||||||||
Percent of total revenues | 10.1 | % | 11.2 | % | 13.3 | % | 10.1 | % |
For the Three Months Ended | ||||||||||||||||||||||||
For the Three Months Ended | �� | July 3, 2022 | July 4, 2021 | Dollar Change | ||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Interest income | $ | (0.6 | ) | $ | (1.4 | ) | $ | 0.8 | $ | (1.0 | ) | $ | (0.6 | ) | $ | (0.4 | ) | |||||||
Interest expense | 5.6 | 6.0 | (0.4 | ) | 0.9 | 5.6 | $ | (4.7 | ) | |||||||||||||||
Other (income) expense, net | (0.1 | ) | (4.0 | ) | 3.9 | 9.4 | (0.1 | ) | $ | 9.5 |
For the Three Months Ended | ||||||||||||||||||||||||
For the Three Months Ended | July 3, 2022 | July 4, 2021 | Dollar Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Semiconductor Test | $ | 337.3 | $ | 228.8 | $ | 108.5 | $ | 177.8 | $ | 337.3 | $ | (159.5 | ) | |||||||||||
System Test | 34.0 | 19.2 | 14.8 | 54.0 | 34.0 | 20.0 | ||||||||||||||||||
Wireless Test | 21.5 | 14.5 | 7.0 | 25.4 | 21.5 | 3.9 | ||||||||||||||||||
Industrial Automation | (9.8 | ) | (11.4 | ) | 1.6 | (6.4 | ) | (9.8 | ) | 3.4 | ||||||||||||||
Corporate and Other (1) | 1.1 | (33.8 | ) | 34.9 | ||||||||||||||||||||
Corporate and Eliminations (1) | (12.2 | ) | 1.1 | (13.3 | ) | |||||||||||||||||||
$ | 384.0 | $ | 217.3 | $ | 166.7 | $ | 238.6 | $ | 384.0 | $ | (145.4 | ) | ||||||||||||
(1) | Included in Corporate and |
For the Six Months Ended | ||||||||||||||||||||||||
For the Six Months Ended | July 3, 2022 | July 4, 2021 | Dollar Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Semiconductor Test | $ | 1,362.0 | $ | 1,143.6 | $ | 218.4 | $ | 1,023.7 | $ | 1,362.0 | $ | (338.3 | ) | |||||||||||
System Test | 237.7 | 187.9 | 49.8 | 253.4 | 237.7 | 15.7 | ||||||||||||||||||
Industrial Automation | 172.1 | 119.1 | 53.0 | 204.2 | 172.1 | 32.1 | ||||||||||||||||||
Wireless Test | 95.8 | 92.7 | 3.1 | 115.4 | 95.8 | 19.6 | ||||||||||||||||||
Corporate and Other | (0.3 | ) | (0.3 | ) | — | |||||||||||||||||||
Corporate and Eliminations | (0.5 | ) | (0.3 | ) | (0.2 | ) | ||||||||||||||||||
$ | 1,867.3 | $ | 1,543.0 | $ | 324.3 | $ | 1,596.1 | $ | 1,867.3 | $ | (271.1 | ) | ||||||||||||
For the Six Months Ended | ||||||||||||||||
For the Six Months Ended | July 3, 2022 | July 4, 2021 | ||||||||||||||
July 4, 2021 | June 28, 2020 | |||||||||||||||
Taiwan | 40 | % | 41 | % | 22 | % | 40 | % | ||||||||
China | 17 | 15 | 16 | 17 | ||||||||||||
Korea | 15 | 9 | ||||||||||||||
United States | 9 | 9 | 15 | 9 | ||||||||||||
Korea | 9 | 10 | ||||||||||||||
Europe | 6 | 7 | 9 | 6 | ||||||||||||
Philippines | 5 | 2 | ||||||||||||||
Thailand | 5 | 4 | 5 | 5 | ||||||||||||
Japan | 4 | 7 | 5 | 4 | ||||||||||||
Malaysia | 3 | 2 | 5 | 3 | ||||||||||||
Philippines | 3 | 5 | ||||||||||||||
Singapore | 2 | 2 | 3 | 2 | ||||||||||||
Rest of World | — | 1 | 2 | — | ||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||
(1) | Revenues attributable to a country are based on location of customer site. |
For the Six Months Ended | ||||||||||||||||||||||||
July 3, | July 4, | Dollar/Point | ||||||||||||||||||||||
For the Six Months Ended | 2022 | 2021 | Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar/ Point Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Gross profit | $ | 1,108.6 | $ | 877.0 | $ | 231.6 | $ | 961.3 | $ | 1,108.6 | $ | (147.3 | ) | |||||||||||
Percent of total revenues | 59.4 | % | 56.8 | % | 2.6 | 60.2 | % | 59.4 | % | 0.8 |
For the Six Months Ended | ||||||||||||||||||||||||
July 3, | July 4, | Dollar | ||||||||||||||||||||||
For the Six Months Ended | 2022 | 2021 | Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Selling and administrative | $ | 270.0 | $ | 224.6 | $ | 45.4 | $ | 279.7 | $ | 270.0 | $ | 9.7 | ||||||||||||
Percent of total revenues | 14.5 | % | 14.6 | % | 17.5 | % | 14.5 | % |
For the Six Months Ended | ||||||||||||||||||||||||
July 3, | July 4, | Dollar | ||||||||||||||||||||||
For the Six Months Ended | 2022 | 2021 | Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Engineering and development | $ | 210.4 | $ | 179.3 | $ | 31.1 | $ | 220.1 | $ | 210.4 | $ | 9.7 | ||||||||||||
Percent of total revenues | 11.3 | % | 11.6 | % | 13.8 | % | 11.3 | % |
For the Six Months Ended | ||||||||||||||||||||||||
July 3, | July 4, | Dollar | ||||||||||||||||||||||
For the Six Months Ended | 2022 | 2021 | Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Interest income | $ | (1.4 | ) | $ | (4.1 | ) | $ | 2.7 | $ | (1.7 | ) | $ | (1.4 | ) | $ | (0.3 | ) | |||||||
Interest expense | 11.6 | 11.6 | — | 1.9 | 11.6 | (9.7 | ) | |||||||||||||||||
Other (income) expense, net | 3.7 | 2.8 | 0.9 | 14.6 | 3.7 | 10.9 |
For the Six Months Ended | ||||||||||||||||||||||||
July 3, | July 4, | Dollar | ||||||||||||||||||||||
For the Six Months Ended | 2022 | 2021 | Change | |||||||||||||||||||||
July 4, 2021 | June 28, 2020 | Dollar Change | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||
Semiconductor Test | $ | 513.7 | $ | 382.6 | $ | 131.1 | $ | 327.5 | $ | 513.7 | $ | (186.2 | ) | |||||||||||
System Test | 85.0 | 67.6 | 17.4 | 95.4 | 85.0 | 10.4 | ||||||||||||||||||
Wireless Test | 31.1 | 24.7 | 6.4 | 44.0 | 31.1 | 12.9 | ||||||||||||||||||
Industrial Automation | (22.8 | ) | (26.7 | ) | 3.9 | (11.5 | ) | (22.8 | ) | 11.3 | ||||||||||||||
Corporate and Other (1) | 1.1 | (33.8 | ) | 34.9 | ||||||||||||||||||||
Corporate and Eliminations (1) | (36.4 | ) | 1.1 | (37.5 | ) | |||||||||||||||||||
$ | 608.0 | $ | 414.4 | $ | 193.6 | $ | 419.0 | $ | 608.0 | $ | (189.0 | ) | ||||||||||||
(1) | Included in Corporate and |
Item 3: | 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 | $ | 1,756,039 | $ | 160,127 | 10.0 | % | ||||||
No Change | 1,595,912 | — | — | |||||||||
10% Decrease | 1,435,785 | (160,127 | ) | (10.0 | ) |
Hypothetical Change in Teradyne Stock Price | Fair Value | Estimated change in fair value | Hypothetical percentage increase (decrease) in fair value | |||||||||
10% Increase | $ | 253,683 | $ | 20,344 | 8.7 | % | ||||||
No Change | 233,339 | — | — | |||||||||
10% Decrease | 212,995 | (20,344 | ) | (8.7 | ) |
Item 4: | Controls and Procedures |
Item 1: | Legal Proceedings |
Item 1A: | Risk Factors |
Item 2: | Unregistered Sales of Equity Securities and Use of Proceeds |
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 | ||||||||||||||||||||
April 5, 2021 - May 2, 2021 | 155 | $ | 129.70 | 154 | $ | 1,934,813 | ||||||||||||||||||
May 3, 2021 – May 30, 2021 | 431 | $ | 123.16 | 424 | $ | 1,882,615 | ||||||||||||||||||
May 31, 2021 – July 4, 2021 | 613 | $ | 129.49 | 612 | $ | 1,803,416 | ||||||||||||||||||
1,199 | (1 | ) | $ | 127.25 | (1 | ) | 1,190 | |||||||||||||||||
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 | ||||||||||||
April 4, 2022 - May 1, 2022 | 853 | $ | 111.53 | 852 | $ | 1,103,537 | ||||||||||
May 2, 2022 - May 29, 2022 | 989 | $ | 104.60 | 974 | $ | 1,001,700 | ||||||||||
May 30, 2022 - July 3, 2022 | 1,381 | $ | 97.45 | 1,380 | $ | 867,202 | ||||||||||
3,223 | (1) | $ | 103.37 | (1) | 3,206 | |||||||||||
(1) | Includes approximately |
Item 4: | Mine Safety Disclosures |
Item 6: | Exhibits |
Exhibit Number | Description | |
32.1 | Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) | |
32.2 | Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL, and contained in Exhibit 101) |
TERADYNE, INC. |
Registrant |
/ ANJAY MEHTA |
Sanjay Mehta Vice President, Chief Financial Officer and Treasurer (Duly Authorized Officer and Principal Financial Officer) |
August |