Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 29, 2013 | Nov. 01, 2013 | |
Document Information | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'TER | ' |
Entity Registrant Name | 'TERADYNE, INC | ' |
Entity Central Index Key | '0000097210 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 191,611,017 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $572,868 | $338,920 | ||
Marketable securities | 384,334 | 431,516 | ||
Accounts receivable, less allowance for doubtful accounts of $3,562 and $4,118 at September 29, 2013 and December 31, 2012, respectively | 209,386 | 153,423 | ||
Inventories: | ' | ' | ||
Parts | 70,620 | 89,598 | ||
Assemblies in process | 25,923 | 32,303 | ||
Finished goods | 26,489 | 17,509 | ||
Inventory, Net, Total | 123,032 | 139,410 | ||
Deferred tax assets | 83,780 | 77,305 | ||
Prepayments | 109,107 | 90,931 | ||
Other current assets | 11,873 | 4,556 | ||
Total current assets | 1,494,380 | 1,236,061 | ||
Net property, plant and equipment | 275,421 | 265,782 | ||
Long-term marketable securities | 202,087 | 235,872 | ||
Other assets | 19,763 | 20,209 | ||
Retirement plans assets | 5,020 | 3,282 | ||
Intangible assets, net | 265,705 | 318,867 | ||
Goodwill | 349,272 | 349,272 | ||
Total assets | 2,611,648 | 2,429,345 | ||
Current liabilities: | ' | ' | ||
Accounts payable | 67,734 | 58,324 | ||
Accrued employees' compensation and withholdings | 78,616 | 86,264 | ||
Deferred revenue and customer advances | 70,367 | 81,357 | ||
Other accrued liabilities | 62,184 | 57,249 | ||
Accrued income taxes | 25,249 | 12,306 | ||
Current debt | 183,573 | 2,328 | ||
Total current liabilities | 487,723 | 297,828 | ||
Long-term deferred revenue and customer advances | 17,455 | 16,227 | ||
Retirement plans liabilities | 95,982 | 94,373 | ||
Deferred tax liabilities | 37,632 | 50,201 | ||
Long-term other accrued liabilities | 21,355 | 21,302 | ||
Long-term debt | ' | 171,059 | ||
Total liabilities | 660,147 | 650,990 | ||
Commitments and contingencies (Note N) | ' | ' | ||
SHAREHOLDERS' EQUITY | ' | ' | ||
Common stock, $0.125 par value, 1,000,000 shares authorized, 191,399 shares and 187,908 shares issued and outstanding at September 29, 2013 and December 31, 2012, respectively | 23,925 | 23,488 | ||
Additional paid-in capital | 1,379,832 | 1,347,762 | ||
Accumulated other comprehensive income | 3,855 | [1] | 5,820 | [1] |
Retained earnings | 543,889 | 401,285 | ||
Total shareholders' equity | 1,951,501 | 1,778,355 | ||
Total liabilities and shareholders' equity | $2,611,648 | $2,429,345 | ||
[1] | Net of tax of $835 for unrealized gains on marketable securities and $(125) for retirement plans prior service credit. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, less allowance for doubtful accounts | $3,562 | $4,118 |
Common stock, par value | $0.13 | $0.13 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 191,399 | 187,908 |
Common stock, shares outstanding | 191,399 | 187,908 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Net revenues: | ' | ' | ' | ' | ||||
Products | $365,825 | $393,037 | $943,212 | $1,204,506 | ||||
Services | 67,551 | 70,357 | 199,420 | 203,840 | ||||
Total net revenues | 433,376 | 463,394 | 1,142,632 | 1,408,346 | ||||
Cost of revenues: | ' | ' | ' | ' | ||||
Cost of products | 150,365 | 169,782 | 405,569 | 550,282 | ||||
Cost of services | 28,717 | 33,412 | 88,119 | 97,432 | ||||
Total cost of revenues | 179,082 | 203,194 | 493,688 | 647,714 | ||||
Gross profit | 254,294 | 260,200 | 648,944 | 760,632 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Engineering and development | 68,918 | 63,946 | 199,442 | 193,059 | ||||
Selling and administrative | 72,917 | 69,030 | 210,037 | 207,727 | ||||
Acquired intangible assets amortization | 18,064 | 18,429 | 54,163 | 55,287 | ||||
Restructuring and other | 889 | 683 | 1,480 | -7,404 | ||||
Total operating expenses | 160,788 | 152,088 | 465,122 | 448,669 | ||||
Income from operations | 93,506 | 108,112 | 183,822 | 311,963 | ||||
Interest income | 948 | 1,067 | 2,923 | 2,834 | ||||
Interest expense and other | -6,902 | -6,154 | -20,262 | -18,536 | ||||
Income before income taxes | 87,552 | [1],[2] | 103,025 | [1],[2] | 166,483 | [1],[2] | 296,261 | [1],[2] |
Income tax provision | 18,093 | 14,384 | 23,879 | 62,669 | ||||
Net income | $69,459 | $88,641 | $142,604 | $233,592 | ||||
Net income per common share: | ' | ' | ' | ' | ||||
Basic | $0.36 | $0.47 | $0.75 | $1.25 | ||||
Diluted | $0.29 | $0.39 | $0.61 | $1.02 | ||||
Weighted average common shares-basic | 191,307 | 187,364 | 190,521 | 186,592 | ||||
Weighted average common shares-diluted | 235,828 | 229,210 | 235,165 | 230,003 | ||||
[1] | Pension and post retirement actuarial gains and losses, interest income, and interest expense and other are included in Corporate and Eliminations. | |||||||
[2] | Included in the income (loss) before income taxes for each of the segments are charges and credits for the three and nine months ended September 29, 2013 and September 30, 2012 that include restructuring and other, and provision for excess and obsolete inventory, as follows: |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Net income | $69,459 | $88,641 | $142,604 | $233,592 |
Other comprehensive income: | ' | ' | ' | ' |
Net unrealized gains (losses) on marketable securities arising during period | 887 | 1,259 | -1,019 | 2,455 |
Less: Reclassification adjustment for net gains included in net income | -202 | -93 | -621 | -583 |
Net change | 685 | 1,166 | -1,640 | 1,872 |
Defined benefit pension and post-retirement plans: | ' | ' | ' | ' |
Amortization of prior service net benefit included in net periodic pension cost and post-retirement benefit | -109 | -92 | -325 | -275 |
Other comprehensive income (loss) | 576 | 1,074 | -1,965 | 1,597 |
Comprehensive income | $70,035 | $89,715 | $140,639 | $235,189 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $142,604 | $233,592 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 41,873 | 39,812 |
Amortization | 69,495 | 67,366 |
Stock-based compensation | 27,227 | 30,634 |
Provision for excess and obsolete inventory | 9,616 | 16,408 |
Deferred taxes | -19,211 | 7,076 |
Non cash charge for the sale of inventories revalued at the date of acquisition | ' | 6,089 |
Contingent consideration adjustment | ' | -8,373 |
Tax benefit related to stock options and restricted stock units | -807 | -7,600 |
Retirement plans actuarial (gains) losses | -1,359 | 4,991 |
Impairment loss on property, plant and equipment | 1,074 | ' |
Other | 83 | -2,359 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -55,963 | -76,134 |
Inventories | 34,194 | 25,070 |
Prepayments and other assets | -26,312 | 7,278 |
Accounts payable and other accrued expenses | 496 | -17,600 |
Deferred revenue and customer advances | -9,762 | -10,651 |
Retirement plans contributions | -3,569 | -3,679 |
Accrued income taxes | 13,750 | 50,313 |
Net cash provided by operating activities | 223,429 | 362,233 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant and equipment | -82,925 | -91,132 |
Purchases of marketable securities | -657,188 | -510,157 |
Proceeds from maturities of marketable securities | 401,901 | 156,422 |
Proceeds from sales of marketable securities | 332,597 | 14,250 |
Net cash used for investing activities | -5,615 | -430,617 |
Cash flows from financing activities: | ' | ' |
Issuance of common stock under employee stock option and stock purchase plans | 16,778 | 17,959 |
Tax benefit related to stock options and restricted stock units | 807 | 7,600 |
Payments of long-term debt | -1,063 | -1,246 |
Payments of contingent consideration | -388 | -43,973 |
Net cash provided by (used) for financing activities | 16,134 | -19,660 |
Increase (decrease) in cash and cash equivalents | 233,948 | -88,044 |
Cash and cash equivalents at beginning of period | 338,920 | 573,736 |
Cash and cash equivalents at end of period | $572,868 | $485,692 |
The_Company
The Company | 9 Months Ended | |||
Sep. 29, 2013 | ||||
The Company | ' | |||
A. The Company | ||||
Teradyne, Inc. (the “Company” or “Teradyne”) is a leading global supplier of automatic test equipment. Teradyne’s automatic test equipment products and services include: | ||||
• | semiconductor test (“Semiconductor Test”) systems; | |||
• | wireless test (“Wireless Test”) systems; and | |||
• | military/aerospace (“Mil/Aero”) test instrumentation and systems, storage test (“Storage Test”) systems, and circuit-board test and inspection (“Commercial Board Test”) systems, collectively these products represent “System Test”. |
Accounting_Policies
Accounting Policies | 9 Months Ended |
Sep. 29, 2013 | |
Accounting Policies | ' |
B. Accounting Policies | |
Basis of Presentation | |
The condensed consolidated interim financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of such interim financial statements. Certain prior year’s amounts were reclassified to conform to the current year presentation. The December 31, 2012 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. | |
The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form 10-K, filed with the U.S. Security and Exchange Commission (“SEC”) on March 1, 2013, for the year ended December 31, 2012. | |
Preparation of Financial Statements and Use of Estimates | |
The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Actual results may differ significantly from these estimates. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 29, 2013 | |
Recently Issued Accounting Pronouncements | ' |
C. Recently Issued Accounting Pronouncements | |
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This ASU is intended to enhance the understanding of the effects of netting arrangements on an entity’s financial statements, including financial instruments and derivative instruments that are either offset or subject to a master netting arrangement. The scope of this ASU includes derivatives, sale and repurchase agreements, reverse sale and repurchase agreements, and securities borrowing and lending arrangements. The provisions of this ASU are effective for interim and annual periods beginning on or after January 1, 2013. Teradyne adopted this ASU effective January 1, 2013. See Note D “Financial Instruments and Derivatives.” | |
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income” amending the disclosure requirements regarding the reporting of amounts reclassified out of accumulated other comprehensive income. The amendment does not change the current requirement for reporting net income or other comprehensive income, but requires additional disclosures about significant amounts reclassified out of accumulated other comprehensive income including the effect of the reclassification on the related statement of operations line items. The provisions of this ASU are effective for interim and annual periods beginning on or after January 1, 2013. Teradyne adopted this amendment effective January 1, 2013. See Note I “Accumulated Other Comprehensive Income.” | |
On July 18, 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” Under this ASU, unrecognized tax benefits will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by unrecognized tax benefits. The provisions of this ASU are effective for interim and annual periods beginning on or after December 15, 2013. Teradyne does not expect this ASU to have a material impact on its financial position or results of operations. |
Financial_Instruments_and_Deri
Financial Instruments and Derivatives | 9 Months Ended | ||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||
Financial Instruments and Derivatives | ' | ||||||||||||||||||||
D. Financial Instruments and Derivatives | |||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||
Teradyne uses the market and income approach to value its financial instruments and there was no change in valuation techniques used by Teradyne during the three and nine months ended September 29, 2013 and September 30, 2012. As defined in ASC 820-10, “Fair Value Measurements and Disclosures,” fair value is the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820-10 requires that assets and liabilities are carried at fair value and are classified in one of the following three categories: | |||||||||||||||||||||
Level 1: Quoted prices in active markets for identical assets as of the reporting date. | |||||||||||||||||||||
Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices. | |||||||||||||||||||||
Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. | |||||||||||||||||||||
Most of Teradyne’s fixed income securities are classified as Level 2, with the exception of U.S. Treasury securities and investments in equity and debt mutual funds, which are classified as Level 1, and contingent consideration, which is classified as Level 3. The majority of Level 2 securities are priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities. | |||||||||||||||||||||
There were no realized losses recorded in the three and nine months ended September 29, 2013 and September 30, 2012. Realized gains recorded in the three and nine months ended September 29, 2013, were $0.2 million and $0.5 million, respectively. Realized gains recorded in the three and nine months ended September 30, 2012, were $0.3 million and $0.9 million, respectively. Realized gains are included in interest income. | |||||||||||||||||||||
During the nine months ended September 29, 2013 and September 30, 2012, there were no transfers in or out of Level 1, Level 2 or Level 3 financial instruments. | |||||||||||||||||||||
The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of September 29, 2013 and December 31, 2012. | |||||||||||||||||||||
September 29, 2013 | |||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | ||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash | $ | 147,819 | $ | — | $ | — | $ | 147,819 | |||||||||||||
Cash equivalents | 417,823 | 7,226 | — | 425,049 | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
U.S. government agency securities | — | 229,129 | — | 229,129 | |||||||||||||||||
U.S. Treasury securities | 211,956 | — | — | 211,956 | |||||||||||||||||
Commercial paper | — | 88,891 | — | 88,891 | |||||||||||||||||
Corporate debt securities | — | 43,982 | — | 43,982 | |||||||||||||||||
Equity and debt mutual funds | 12,122 | — | — | 12,122 | |||||||||||||||||
Certificates of deposit and time deposits | — | 261 | — | 261 | |||||||||||||||||
Non-U.S. government securities | — | 80 | — | 80 | |||||||||||||||||
Total | 789,720 | 369,569 | — | 1,159,289 | |||||||||||||||||
Derivatives | — | 276 | — | 276 | |||||||||||||||||
Total | $ | 789,720 | $ | 369,845 | $ | — | $ | 1,159,565 | |||||||||||||
Reported as follows: | |||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 565,642 | $ | 7,226 | $ | — | $ | 572,868 | |||||||||||||
Marketable securities | 185,085 | 199,249 | — | 384,334 | |||||||||||||||||
Long-term marketable securities | 38,993 | 163,094 | — | 202,087 | |||||||||||||||||
Other current assets | — | 276 | — | 276 | |||||||||||||||||
$ | 789,720 | $ | 369,845 | $ | — | $ | 1,159,565 | ||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | ||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash | $ | 139,354 | $ | — | $ | — | $ | 139,354 | |||||||||||||
Cash equivalents | 183,039 | 16,527 | — | 199,566 | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
U.S. Treasury securities | 312,116 | — | — | 312,116 | |||||||||||||||||
U.S. government agency securities | — | 217,655 | — | 217,655 | |||||||||||||||||
Commercial paper | — | 70,434 | — | 70,434 | |||||||||||||||||
Corporate debt securities | — | 55,755 | — | 55,755 | |||||||||||||||||
Equity and debt mutual funds | 9,717 | — | — | 9,717 | |||||||||||||||||
Certificates of deposit and time deposits | — | 1,627 | — | 1,627 | |||||||||||||||||
Non-U.S. government securities | — | 84 | — | 84 | |||||||||||||||||
Total | 644,226 | 362,082 | — | 1,006,308 | |||||||||||||||||
Derivatives | — | 121 | — | 121 | |||||||||||||||||
Total | $ | 644,226 | $ | 362,203 | $ | — | $ | 1,006,429 | |||||||||||||
Liabilities | |||||||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 388 | $ | 388 | |||||||||||||
Total | $ | — | $ | — | $ | 388 | $ | 388 | |||||||||||||
Reported as follows: | |||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 322,393 | $ | 16,527 | $ | — | $ | 338,920 | |||||||||||||
Marketable securities | 239,192 | 192,324 | — | 431,516 | |||||||||||||||||
Long-term marketable securities | 82,641 | 153,231 | — | 235,872 | |||||||||||||||||
Other current assets | — | 121 | — | 121 | |||||||||||||||||
$ | 644,226 | $ | 362,203 | $ | — | $ | 1,006,429 | ||||||||||||||
Liabilities | |||||||||||||||||||||
Other accrued liabilities | $ | — | $ | — | $ | 388 | $ | 388 | |||||||||||||
$ | — | $ | — | $ | 388 | $ | 388 | ||||||||||||||
During the nine months ended September 29, 2013, Teradyne made the final payment for Level 3 contingent consideration of $0.4 million. | |||||||||||||||||||||
The carrying amounts and fair values of financial instruments at September 29, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||
September 29, 2013 | December 31, 2012 | ||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cash and cash equivalents | $ | 572,868 | $ | 572,868 | $ | 338,920 | $ | 338,920 | |||||||||||||
Marketable securities | 586,421 | 586,421 | 667,388 | 667,388 | |||||||||||||||||
Convertible debt(1) | 181,550 | 580,206 | 169,896 | 589,000 | |||||||||||||||||
Japan loan | 2,023 | 2,023 | 3,491 | 3,491 | |||||||||||||||||
-1 | The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion feature. | ||||||||||||||||||||
The fair values of cash and cash equivalents, accounts receivable, net and accounts payable approximate the carrying amount due to the short-term nature of these instruments. | |||||||||||||||||||||
The following tables summarize the composition of available-for-sale marketable securities at September 29, 2013 and December 31, 2012: | |||||||||||||||||||||
September 29, 2013 | |||||||||||||||||||||
Available-for-Sale | Fair Market | ||||||||||||||||||||
Value of | |||||||||||||||||||||
Investments | |||||||||||||||||||||
with Unrealized | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Losses | |||||||||||||||||
Gain | (Loss) | Value | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
U.S. government agency securities | $ | 229,133 | $ | 142 | $ | (146 | ) | $ | 229,129 | $ | 103,165 | ||||||||||
U.S. Treasury securities | 211,966 | 140 | (150 | ) | 211,956 | 5,605 | |||||||||||||||
Commercial paper | 88,884 | 12 | (5 | ) | 88,891 | 25,169 | |||||||||||||||
Corporate debt securities | 44,132 | 905 | (1,055 | ) | 43,982 | 16,439 | |||||||||||||||
Equity and debt mutual funds | 9,843 | 2,315 | (36 | ) | 12,122 | 595 | |||||||||||||||
Certificates of deposit and time deposits | 261 | — | — | 261 | — | ||||||||||||||||
Non-U.S. government securities | 80 | — | — | 80 | — | ||||||||||||||||
$ | 584,299 | $ | 3,514 | $ | (1,392 | ) | $ | 586,421 | $ | 150,973 | |||||||||||
Reported as follows: | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Fair Market | |||||||||||||||||
Gain | (Loss) | Value | Value of | ||||||||||||||||||
Investments | |||||||||||||||||||||
with Unrealized | |||||||||||||||||||||
Losses | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Marketable securities | $ | 384,180 | $ | 168 | $ | (14 | ) | $ | 384,334 | $ | 37,823 | ||||||||||
Long-term marketable securities | 200,119 | 3,346 | (1,378 | ) | 202,087 | 113,150 | |||||||||||||||
$ | 584,299 | $ | 3,514 | $ | (1,392 | ) | $ | 586,421 | $ | 150,973 | |||||||||||
December 31, 2012 | |||||||||||||||||||||
Available-for-Sale | Fair Market | ||||||||||||||||||||
Value of | |||||||||||||||||||||
Investments | |||||||||||||||||||||
with Unrealized | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Losses | |||||||||||||||||
Gain | (Loss) | Value | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
U.S. Treasury securities | $ | 311,915 | $ | 216 | $ | (15 | ) | $ | 312,116 | $ | 1,018 | ||||||||||
U.S. government agency securities | 217,396 | 262 | (3 | ) | 217,655 | 9,018 | |||||||||||||||
Commercial paper | 70,431 | 9 | (6 | ) | 70,434 | 25,209 | |||||||||||||||
Corporate debt securities | 53,405 | 2,414 | (64 | ) | 55,755 | 23,255 | |||||||||||||||
Equity and debt mutual funds | 8,767 | 961 | (11 | ) | 9,717 | 600 | |||||||||||||||
Certificates of deposit and time deposits | 1,627 | — | — | 1,627 | — | ||||||||||||||||
Non-U.S. government securities | 84 | — | — | 84 | — | ||||||||||||||||
$ | 663,625 | $ | 3,862 | $ | (99 | ) | $ | 667,388 | $ | 59,100 | |||||||||||
Reported as follows: | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Fair Market | |||||||||||||||||
Gain | (Loss) | Value | Value of | ||||||||||||||||||
Investments | |||||||||||||||||||||
with Unrealized | |||||||||||||||||||||
Losses | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Marketable securities | $ | 431,324 | $ | 203 | $ | (11 | ) | $ | 431,516 | $ | 41,110 | ||||||||||
Long-term marketable securities | 232,301 | 3,659 | (88 | ) | 235,872 | 17,990 | |||||||||||||||
$ | 663,625 | $ | 3,862 | $ | (99 | ) | $ | 667,388 | $ | 59,100 | |||||||||||
As of September 29, 2013, the fair market value of marketable securities with unrealized losses totaled $151.0 million. Of this value, $0.5 million had unrealized losses greater than one year and $150.5 million had unrealized losses less than one year. As of December 31, 2012, the fair market value of marketable securities with unrealized losses totaled $59.1 million and none of the unrealized losses were greater than one year. | |||||||||||||||||||||
The contractual maturities of available-for-sale marketable securities at September 29, 2013 were as follows: | |||||||||||||||||||||
September 29, 2013 | |||||||||||||||||||||
Cost | Fair Market | ||||||||||||||||||||
Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Due within one year | $ | 384,180 | $ | 384,334 | |||||||||||||||||
Due after 1 year through 5 years | 173,407 | 175,657 | |||||||||||||||||||
Due after 5 years through 10 years | 3,131 | 3,188 | |||||||||||||||||||
Due after 10 years | 23,581 | 23,242 | |||||||||||||||||||
Total | $ | 584,299 | $ | 586,421 | |||||||||||||||||
Derivatives | |||||||||||||||||||||
Teradyne conducts business in a number of foreign countries, with certain transactions denominated in local currencies. The purpose of Teradyne’s foreign currency management is to minimize the effect of exchange rate fluctuations on certain foreign currency denominated net monetary assets. Teradyne does not use derivative financial instruments for trading or speculative purposes. | |||||||||||||||||||||
To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings, and is used to offset the change in fair value of the monetary assets and liabilities denominated in foreign currencies. | |||||||||||||||||||||
The notional amount of foreign exchange contracts hedging monetary assets and liabilities denominated in foreign currencies was $64.1 million and $64.1 million at September 29, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
The following table summarizes the fair value of derivative instruments at September 29, 2013 and December 31, 2012: | |||||||||||||||||||||
Balance Sheet Location | September 29, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 276 | $ | 121 | ||||||||||||||||
$ | 276 | $ | 121 | ||||||||||||||||||
Teradyne had no offsetting foreign exchange contracts at September 29, 2013 and December 31, 2012. | |||||||||||||||||||||
The following table summarizes the effect of derivative instruments recognized in the statement of operations during the three and nine months ended September 29, 2013 and September 30, 2012. The table does not reflect the corresponding (losses) gains from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. For the three and nine months ended September 29, 2013, losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $(0.4) million and $(5.0) million, respectively. For the three and nine months ended September 30, 2012, gains from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $1.2 million and $0.8 million, respectively. | |||||||||||||||||||||
Location of Gains | For the Three | For the Nine | |||||||||||||||||||
(Losses) | Months Ended | Months Ended | |||||||||||||||||||
Recognized in | |||||||||||||||||||||
Statement | |||||||||||||||||||||
of Operations | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Foreign exchange contracts | Interest expense | $ | 1 | $ | (1,197 | ) | $ | 4,068 | $ | (677 | ) | ||||||||||
and other | |||||||||||||||||||||
$ | 1 | $ | (1,197 | ) | $ | 4,068 | $ | (677 | ) | ||||||||||||
See Note E “Debt” regarding derivatives related to convertible senior notes. |
Debt
Debt | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Debt | ' | ||||||||||||||||
E. Debt | |||||||||||||||||
Loan Agreement | |||||||||||||||||
On March 31, 2009, Teradyne K.K., Teradyne’s wholly-owned subsidiary in Japan, entered into a loan agreement with a local bank in Japan to borrow approximately $10.0 million (the loan is denominated in Japanese Yen). The loan has a term of 5 years and a fixed interest rate of 0.8%. Approximately $6.0 million of the loan is collateralized by a real estate mortgage on Teradyne K.K.’s building and land in Kumamoto, Japan and approximately $4.0 million is unsecured. Teradyne, Inc. has guaranteed payment of the loan obligation. The loan is amortized over the term of the loan with semiannual principal payments of approximately $1.0 million payable on September 30 and March 30 each year. At September 29, 2013, the outstanding loan principal of approximately $2.0 million is included in current debt. | |||||||||||||||||
Convertible Senior Notes | |||||||||||||||||
In April 2009, Teradyne issued 4.50% convertible senior notes (the “Notes”) at an aggregate principal amount of $190 million. The Notes will mature on March 15, 2014, unless earlier repurchased by Teradyne or converted. The Notes are senior unsecured obligations and rank equally with all of Teradyne’s existing and future senior debt and senior to any of Teradyne’s subordinated debt. | |||||||||||||||||
The Notes may be converted, at the option of the holder, under certain circumstances and during certain periods, at an initial conversion rate of approximately 182.65 shares of Teradyne’s common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $5.48, a 25% conversion premium based on the last reported sale price of $4.38 per share of Teradyne’s common stock on March 31, 2009. The conversion rate is subject to adjustment in certain circumstances including but not limited to Teradyne issuing a cash or stock dividend or effecting a stock split. | |||||||||||||||||
During the three months ended September 29, 2013, the following circumstance occurred that allows holders to convert their Notes at their option prior to December 15, 2013: the last reported sale price of Teradyne’s common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeded 130% of the conversion price in effect on the last trading day of the immediately preceding calendar quarter. As of November 8, 2013, one holder exercised the option to convert two thousand dollars worth of Notes which Teradyne settled in cash. | |||||||||||||||||
Concurrently with the offering of the Notes, Teradyne entered into a convertible note hedge transaction with a strike price equal to the initial conversion price of the Notes, or approximately $5.48. The convertible note hedge allows Teradyne to receive shares of its common stock and/or cash related to the excess conversion value that it would pay to the holders of the Notes upon conversion. The convertible note hedges will cover, subject to customary antidilution adjustments, approximately 34,703,196 shares of Teradyne’s common stock. Teradyne paid approximately $64.6 million for the convertible note hedges. | |||||||||||||||||
On March 31, 2009, Teradyne entered into a warrant transaction with a strike price of approximately $7.67 per share, which was 75% higher than the closing price of Teradyne’s common stock. Teradyne received approximately $43.0 million for the warrants. | |||||||||||||||||
The convertible note hedge and warrant transaction will generally have the effect of increasing the conversion price of the Notes to approximately $7.67 per share of Teradyne’s common stock, representing a 75% conversion premium based upon the closing price of Teradyne’s common stock on March 31, 2009. | |||||||||||||||||
The Notes are classified as current debt in the balance sheet at September 29, 2013. The tables below represent the components of Teradyne’s convertible senior notes: | |||||||||||||||||
September 29, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Debt principal | $ | 189,998 | $ | 190,000 | |||||||||||||
Unamortized debt discount | 8,448 | 20,104 | |||||||||||||||
Net carrying amount of the convertible debt | $ | 181,550 | $ | 169,896 | |||||||||||||
The interest expense on Teradyne’s convertible senior notes for the three and nine months ended September 29, 2013 and September 30, 2012 was as follows: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Contractual interest expense | $ | 2,114 | $ | 2,114 | $ | 6,388 | $ | 6,413 | |||||||||
Amortization of the discount component and debt issue fees | 4,221 | 3,710 | 12,266 | 10,781 | |||||||||||||
Total interest expense on the convertible debt | $ | 6,335 | $ | 5,824 | $ | 18,654 | $ | 17,194 | |||||||||
As of September 29, 2013, the unamortized discount was $8.4 million, which will be amortized over the next six months, and the carrying amount of the equity component was $63.4 million. As of September 29, 2013, the conversion rate was equal to the initial conversion price of approximately $5.48 per share and the if-converted value of the Notes was $579.9 million. |
Deferred_Revenue_and_Customer_
Deferred Revenue and Customer Advances | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Deferred Revenue and Customer Advances | ' | ||||||||
F. Deferred Revenue and Customer Advances | |||||||||
Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances. | |||||||||
September 29, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Maintenance, training and extended warranty | $ | 56,481 | $ | 51,198 | |||||
Customer advances | 22,287 | 39,613 | |||||||
Undelivered elements | 9,054 | 6,773 | |||||||
Total deferred revenue and customer advances | $ | 87,822 | $ | 97,584 | |||||
Product_Warranty
Product Warranty | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Product Warranty | ' | ||||||||||||||||
G. Product Warranty | |||||||||||||||||
Teradyne generally provides a one-year warranty on its products commencing upon installation or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. The warranty balance below is included in other accrued liabilities. | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 7,351 | $ | 11,047 | $ | 9,786 | $ | 8,154 | |||||||||
Accruals for warranties issued during the period | 3,674 | 4,118 | 8,781 | 13,543 | |||||||||||||
Adjustments related to pre-existing warranties | (524 | ) | 1,226 | (2,323 | ) | 1,369 | |||||||||||
Settlements made during the period | (2,470 | ) | (3,813 | ) | (8,213 | ) | (10,488 | ) | |||||||||
Balance at end of period | $ | 8,031 | $ | 12,578 | $ | 8,031 | $ | 12,578 | |||||||||
When Teradyne receives revenue for extended warranty beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The extended warranty balance below is included in short and long-term deferred revenue and customer advances. | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 34,854 | $ | 20,754 | $ | 26,987 | $ | 12,742 | |||||||||
Deferral of new extended warranty revenue | 5,586 | 8,733 | 17,791 | 21,015 | |||||||||||||
Recognition of extended warranty deferred revenue | (4,120 | ) | (2,007 | ) | (8,458 | ) | (6,277 | ) | |||||||||
Balance at end of period | $ | 36,320 | $ | 27,480 | $ | 36,320 | $ | 27,480 | |||||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Stock-Based Compensation | ' | ||||||||
H. Stock-Based Compensation | |||||||||
Restricted stock unit awards granted to employees vest in equal installments over four years. A portion of restricted stock unit awards granted to executive officers is subject to time-based vesting and a portion is subject to performance-based vesting. The percentage level of performance satisfied for performance-based grants is assessed on or near the anniversary of the grant date and, in turn, that percentage level determines the number of performance-based restricted stock units available for vesting over the vesting period; portions of the performance-based grants not available for vesting will be forfeited. Stock options vest in equal installments over four years, and have a term of seven years from the date of grant. | |||||||||
During the nine months ended September 29, 2013, Teradyne granted 1.9 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.60 and 0.2 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.09. | |||||||||
During the nine months ended September 30, 2012, Teradyne granted 1.7 million of restricted stock unit awards to employees at a weighted average grant date fair value of $16.73 and 0.2 million of service-based stock options to executive officers at a weighted average grant date fair value of $6.85. | |||||||||
The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: | |||||||||
For the Nine Months | |||||||||
Ended | |||||||||
September 29, | September 30, | ||||||||
2013 | 2012 | ||||||||
Expected life (years) | 4 | 3.5 | |||||||
Interest rate | 0.6 | % | 0.4 | % | |||||
Volatility-historical | 46.8 | % | 56 | % | |||||
Dividend yield | 0 | % | 0 | % | |||||
Teradyne determined the stock options’ expected life based upon historical exercise data for executive officers, the age of the executive officers and the terms of the stock option grant. Volatility was determined using historical volatility for a period equal to the expected life. The risk-free rate was determined using the U.S. Treasury yield curve in effect at the time of grant. | |||||||||
Effective January 1, 2013, the price paid by employees for Teradyne’s common stock purchased through the employee stock purchase plan is equal to 85% of the stock price on the last business day of the purchase period. | |||||||||
During 2012, the price paid by employees for Teradyne’s common stock purchased through the employee stock purchase plan was equal to 85% of the lower of the stock price on the first or last business day of the purchase period. | |||||||||
The weighted-average fair value of employee stock purchase rights granted in the nine months ended September 30, 2012 was $3.75. The fair value of the employees’ purchase rights granted in the nine months ended September 30, 2012 was estimated using the Black-Scholes option-pricing model with the following assumptions: | |||||||||
For the Nine Months Ended | |||||||||
September 30, | |||||||||
2012 | |||||||||
Expected life (years) | 0.5 | ||||||||
Interest rate | 0.11 | % | |||||||
Volatility-historical | 42.7 | % | |||||||
Dividend yield | 0 | % |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||
I. Accumulated Other Comprehensive Income | |||||||||||||||||||
Changes in accumulated other comprehensive income, which is presented net of tax, consist of the following: | |||||||||||||||||||
Unrealized Gains on | Retirement Plans | Total | |||||||||||||||||
Marketable Securities | Prior Service Credit | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Balance at December 31, 2012 (a) | $ | 2,925 | $ | 2,895 | $ | 5,820 | |||||||||||||
Other comprehensive income before reclassifications | (1,019 | ) | — | (1,019 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (621 | ) | (325 | ) | (946 | ) | |||||||||||||
Net current period other comprehensive income | (1,640 | ) | (325 | ) | (1,965 | ) | |||||||||||||
Balance at September 29, 2013 (a) | $ | 1,285 | $ | 2,570 | $ | 3,855 | |||||||||||||
(a) | Net of tax of $835 for unrealized gains on marketable securities and $(125) for retirement plans prior service credit. | ||||||||||||||||||
Reclassifications out of accumulated other comprehensive income to the statement of operations for the three and nine months ended September 29, 2013 and September 30, 2012, were as follows: | |||||||||||||||||||
Details about Accumulated | For the Three Months Ended | For the Nine Months Ended | Affected Line Item | ||||||||||||||||
Other Comprehensive Income | in the Statements | ||||||||||||||||||
Components | of Operations | ||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Available-for-sale marketable securities | |||||||||||||||||||
Unrealized gains | $ | 202 | $ | 93 | $ | 621 | $ | 583 | Interest income | ||||||||||
$ | 202 | $ | 93 | $ | 621 | $ | 583 | ||||||||||||
Amortization of defined benefit pension and postretirement plans | |||||||||||||||||||
Prior service benefit | $ | 109 | $ | 92 | $ | 325 | $ | 275 | (a) | ||||||||||
$ | 109 | $ | 92 | $ | 325 | $ | 275 | ||||||||||||
Total reclassifications | $ | 311 | $ | 185 | $ | 946 | $ | 858 | Net income | ||||||||||
(a) | The amortization of prior service benefit is included in the computation of net periodic pension cost and postretirement benefit; see Note M “Retirement Plans.” |
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
J. Intangible Assets | |||||||||||||||||
Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet: | |||||||||||||||||
September 29, 2013 | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Useful Life | |||||||||||||||
(in thousands) | |||||||||||||||||
Developed technology | $ | 358,555 | $ | 180,960 | $ | 177,595 | 6.3 years | ||||||||||
Customer relationships and service and software maintenance contracts | 144,971 | 77,139 | 67,832 | 8.0 years | |||||||||||||
Trade names and trademarks | 33,840 | 13,562 | 20,278 | 9.0 years | |||||||||||||
Customer backlog | 1,000 | 1,000 | — | 0.4 years | |||||||||||||
Total intangible assets | $ | 538,366 | $ | 272,661 | $ | 265,705 | 7.0 years | ||||||||||
December 31, 2012 | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Useful Life | |||||||||||||||
(in thousands) | |||||||||||||||||
Developed technology | $ | 357,555 | $ | 143,126 | $ | 214,429 | 6.3 years | ||||||||||
Customer relationships and service and software maintenance contracts | 144,971 | 63,464 | 81,507 | 8.0 years | |||||||||||||
Trade names and trademarks | 33,840 | 10,909 | 22,931 | 9.0 years | |||||||||||||
Customer backlog | 1,000 | 1,000 | — | 0.4 years | |||||||||||||
Total intangible assets | $ | 537,366 | $ | 218,499 | $ | 318,867 | 7.0 years | ||||||||||
Aggregate intangible asset amortization expense was $18.1 million and $54.2 million, respectively, for the three and nine months ended September 29, 2013 and $18.4 million and $55.3 million, respectively, for the three and nine months ended September 30, 2012. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: | |||||||||||||||||
Year | Amortization Expense | ||||||||||||||||
(in thousands) | |||||||||||||||||
2013 (remainder) | $ | 18,052 | |||||||||||||||
2014 | 69,213 | ||||||||||||||||
2015 | 52,462 | ||||||||||||||||
2016 | 52,462 | ||||||||||||||||
2017 | 46,304 |
Net_Income_per_Common_Share
Net Income per Common Share | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Net Income per Common Share | ' | ||||||||||||||||
K. Net Income per Common Share | |||||||||||||||||
The following table sets forth the computation of basic and diluted net income per common share: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net income for basic and diluted net income per share | $ | 69,459 | $ | 88,641 | $ | 142,604 | $ | 233,592 | |||||||||
Weighted average common shares-basic | 191,307 | 187,364 | 190,521 | 186,592 | |||||||||||||
Effect of dilutive potential common shares: | |||||||||||||||||
Incremental shares from assumed conversion of convertible notes(1) | 23,257 | 21,890 | 23,303 | 22,397 | |||||||||||||
Convertible note hedge warrant shares(2) | 18,678 | 16,765 | 18,742 | 17,474 | |||||||||||||
Restricted stock units | 1,102 | 1,423 | 1,000 | 1,413 | |||||||||||||
Stock options | 1,465 | 1,735 | 1,564 | 2,075 | |||||||||||||
Employee stock purchase rights | 19 | 33 | 35 | 52 | |||||||||||||
Dilutive potential common shares | 44,521 | 41,846 | 44,644 | 43,411 | |||||||||||||
Weighted average common shares-diluted | 235,828 | 229,210 | 235,165 | 230,003 | |||||||||||||
Net income per common share-basic | $ | 0.36 | $ | 0.47 | $ | 0.75 | $ | 1.25 | |||||||||
Net income per common share-diluted | $ | 0.29 | $ | 0.39 | $ | 0.61 | $ | 1.02 | |||||||||
-1 | Incremental shares from assumed conversion of the convertible notes for the three and nine months ended September 29, 2013 and September 30, 2012 are calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing the total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period. | ||||||||||||||||
-2 | Convertible note hedge warrant shares for the three and nine months ended September 29, 2013 and September 30, 2012 are calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing the total intrinsic value of the warrant, is divided by the average Teradyne stock price for the period. | ||||||||||||||||
The computation of diluted net income per common share for the three and nine months ended September 29, 2013 excludes the effect of the potential exercise of stock options to purchase approximately 0.4 million shares because the effect would have been anti-dilutive. | |||||||||||||||||
The computation of diluted net income per common share for the three and nine months ended September 30, 2012 excludes the effect of the potential exercise of stock options to purchase approximately 0.3 million shares, and the computation of the three and nine months ended September 30, 2012 excludes the effect of the potential exercise of restricted stock units of 0.1 million and 0.4 million, because the effect would have been anti-dilutive. | |||||||||||||||||
With respect to Teradyne’s convertible debt, Teradyne intends to settle its conversion spread (i.e., the intrinsic value of the embedded option feature contained in the convertible debt) in shares. Teradyne accounts for its conversion spread using the treasury stock method. |
Restructuring_and_Other
Restructuring and Other | 9 Months Ended | ||||||||||||
Sep. 29, 2013 | |||||||||||||
Restructuring and Other | ' | ||||||||||||
L. Restructuring and Other | |||||||||||||
Restructuring | |||||||||||||
During the nine months ended September 29, 2013, Teradyne recorded $1.3 million of severance charges related to headcount reductions of 40 people, of which $1.0 million was in System Test and $0.3 million was in Semiconductor Test, and a $(0.4) million credit in Corporate for a change in the estimated exit costs related to a leased facility. | |||||||||||||
During the nine months ended September 30, 2012, Teradyne recorded $0.7 million of severance charges related to headcount reductions of 9 people, of which $0.5 million and 7 people were in System Test, $0.2 million and 2 people were in Wireless Test. | |||||||||||||
Severance | Facility | Total | |||||||||||
and | Exit | ||||||||||||
Benefits | Costs | ||||||||||||
(in thousands) | |||||||||||||
Pre-2012 Activities | |||||||||||||
Balance at December 31, 2011 | $ | 325 | $ | 1,862 | $ | 2,187 | |||||||
Cash payments | (325 | ) | (778 | ) | (1,103 | ) | |||||||
Balance at December 31, 2012 | — | 1,084 | 1,084 | ||||||||||
Change in estimate | — | (105 | ) | (105 | ) | ||||||||
Cash payments | — | (183 | ) | (183 | ) | ||||||||
Balance at March 31, 2013 | — | 796 | 796 | ||||||||||
Cash payments | — | (199 | ) | (199 | ) | ||||||||
Balance at June 30, 2013 | — | 597 | 597 | ||||||||||
Change in estimate | — | (448 | ) | (448 | ) | ||||||||
Cash payments | — | (149 | ) | (149 | ) | ||||||||
Balance at September 29, 2013 | $ | — | $ | — | $ | — | |||||||
2012 Activities | |||||||||||||
Q3 2012 Activity: | |||||||||||||
Provision | $ | 687 | $ | — | $ | 687 | |||||||
Cash payments | (444 | ) | — | (444 | ) | ||||||||
Balance at December 31, 2012 | 243 | — | 243 | ||||||||||
Cash payments | (243 | ) | — | (243 | ) | ||||||||
Balance at March 31, 2013 | $ | — | $ | — | $ | — | |||||||
2013 Activities | |||||||||||||
Q3 2013 Activity: | |||||||||||||
Provision | $ | 1,337 | $ | — | $ | 1,337 | |||||||
Cash payments | (884 | ) | — | (884 | ) | ||||||||
Balance at September 29, 2013 | $ | 453 | $ | — | $ | 453 | |||||||
Balance at September 29, 2013 | $ | 453 | $ | — | $ | 453 | |||||||
The remaining accrual for severance and benefits of $0.5 million is reflected in the accrued employees’ compensation and withholdings on the balance sheet and is expected to be paid by June 2014. | |||||||||||||
Other | |||||||||||||
During the nine months ended September 30, 2012, due to a decrease in specified new product revenue through December 31, 2012 earn-out period end date, Teradyne recorded an $8.4 million fair value adjustment to decrease the LitePoint acquisition contingent consideration. |
Retirement_Plans
Retirement Plans | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Retirement Plans | ' | ||||||||||||||||
M. Retirement Plans | |||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||
Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. subsidiaries. Benefits under these plans are based on employees’ years of service and compensation. Teradyne’s funding policy is to make contributions to these plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of these plans consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act (“ERISA”) and the Internal Revenue Code (“IRC”), as well as unfunded foreign plans. | |||||||||||||||||
Net periodic pension cost was comprised of the following: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Service cost | $ | 871 | $ | 685 | $ | 2,557 | $ | 2,054 | |||||||||
Interest cost | 3,350 | 4,111 | 10,001 | 12,333 | |||||||||||||
Expected return on plan assets | (3,664 | ) | (4,090 | ) | (10,925 | ) | (12,269 | ) | |||||||||
Amortization of unrecognized prior service cost | 41 | 58 | 123 | 174 | |||||||||||||
Actuarial loss (gain) | — | 1,937 | (1,122 | ) | 5,083 | ||||||||||||
Total net periodic pension cost | $ | 598 | $ | 2,701 | $ | 634 | $ | 7,375 | |||||||||
In the nine months ended September 29, 2013, Teradyne contributed $1.3 million to the U.S. supplemental executive defined benefit pension plan and $1.3 million to certain qualified plans for non-U.S. subsidiaries. | |||||||||||||||||
During the three months ended September 30, 2012, Teradyne offered to certain former U.S. employees the option to receive their vested pension benefit as a one-time lump sum payment. Approximately 2,000 former employees selected to receive a one-time lump sum payment. Total one-time lump sum payments were approximately $52.0 million. | |||||||||||||||||
Postretirement Benefit Plan | |||||||||||||||||
In addition to receiving pension benefits, U.S. Teradyne employees who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes death, and medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees. | |||||||||||||||||
Net periodic postretirement benefit was comprised of the following: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Service cost | $ | 19 | $ | 17 | $ | 56 | $ | 50 | |||||||||
Interest cost | 86 | 109 | 257 | 328 | |||||||||||||
Amortization of unrecognized prior service benefit | (150 | ) | (150 | ) | (449 | ) | (449 | ) | |||||||||
Actuarial gain | — | — | (236 | ) | (92 | ) | |||||||||||
Total net periodic post-retirement benefit | $ | (45 | ) | $ | (24 | ) | $ | (372 | ) | $ | (163 | ) | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2013 | |
Commitments and Contingencies | ' |
N. Commitments and Contingencies | |
Purchase Commitments | |
As of September 29, 2013, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments aggregate to approximately $243.3 million, of which $231.5 million is for less than one year. | |
Legal Claims | |
Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business. In the opinion of management, other than set forth herein, the ultimate disposition of these matters will not have a material adverse effect on Teradyne’s results of operations, financial condition or cash flows. | |
On May 17, 2013, Boston Semi Equipment (“BSE”) filed a complaint against Teradyne for antitrust violations and unfair business practices alleging that Teradyne excluded BSE from competing in the market for the sale of reconfigured Teradyne equipment and the market for the repair of Teradyne equipment. BSE sought unspecified damages and an injunction. Teradyne filed a motion to dismiss the complaint. On October 18, 2013, the parties settled the litigation. The settlement included no monetary consideration. The settlement did not and will not have a material impact on Teradyne’s consolidated financial results. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2013 | |
Income Taxes | ' |
O. Income Taxes | |
The effective tax rate for the three months ended September 29, 2013 and September 30, 2012 was 21% and 14%, respectively. The increase in Teradyne’s tax rate for the three months ended September 29, 2013 compared to the three months ended September 30, 2012, was primarily attributable to the reduction to deferred income tax benefit recognized discretely in 2012 in connection with Teradyne’s plan to repatriate the unremitted earnings of its Japanese subsidiary. | |
The effective tax rate for the nine months ended September 29, 2013 and September 30, 2012 was 14% and 21%, respectively. The decrease in Teradyne’s tax rate for the nine months ended September 29, 2013 compared to the nine months ended September 30, 2012, was primarily the result of recognizing the tax benefit attributable to the retroactive reinstatement of the U.S. research and development credit and the mix of income by jurisdiction. | |
The effective tax rate for the three months and nine months ended September 29, 2013 is lower than the 35% U.S. statutory federal tax rate primarily due to the research and development credit and the effect of foreign income taxed at a rate lower than the U.S. statutory rate. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||
P. Segment Information | |||||||||||||||||||||
Teradyne has three operating segments (Semiconductor Test, Wireless Test and System Test), which are its reportable segments. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The Wireless Test segment includes operations related to design, manufacturing and marketing of wireless test products and services. The System Test segment includes operations related to design, manufacturing and marketing of products and services for military/aerospace instrumentation test, storage test and circuit-board test. Each operating segment has a segment manager who is directly accountable to and maintains regular contact with Teradyne’s chief operating decision maker (Teradyne’s chief executive officer) to discuss operating activities, financial results, forecasts, and plans for the segment. | |||||||||||||||||||||
Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income before income taxes. The accounting policies of the business segments are the same as those described in Note B “Accounting Policies” in Teradyne’s Annual Report on Form 10-K for the year ended December 31, 2012. Segment information is as follows: | |||||||||||||||||||||
Semiconductor | Wireless | System | Corporate | Consolidated | |||||||||||||||||
Test | Test | Test | and | ||||||||||||||||||
Eliminations | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Three months ended September 29, 2013: | |||||||||||||||||||||
Net revenues | $ | 304,131 | $ | 93,132 | $ | 36,113 | $ | — | $ | 433,376 | |||||||||||
Income (loss) before income taxes(1)(2) | 68,932 | 27,575 | (2,462 | ) | (6,493 | ) | 87,552 | ||||||||||||||
Three months ended September 30, 2012: | |||||||||||||||||||||
Net revenues | $ | 310,979 | $ | 118,571 | $ | 33,844 | $ | — | $ | 463,394 | |||||||||||
Income (loss) before income taxes(1)(2) | 55,348 | 58,902 | (2,642 | ) | (8,583 | ) | 103,025 | ||||||||||||||
Nine months ended September 29, 2013: | |||||||||||||||||||||
Net revenues | $ | 808,068 | $ | 226,116 | $ | 108,448 | $ | — | $ | 1,142,632 | |||||||||||
Income (loss) before income taxes(1)(2) | 141,304 | 41,491 | (153 | ) | (16,159 | ) | 166,483 | ||||||||||||||
Nine months ended September 30, 2012: | |||||||||||||||||||||
Net revenues | $ | 943,625 | $ | 261,827 | $ | 202,894 | $ | — | $ | 1,408,346 | |||||||||||
Income (loss) before income taxes(1)(2) | 181,594 | 97,729 | 30,964 | (14,026 | ) | 296,261 | |||||||||||||||
-1 | Pension and post retirement actuarial gains and losses, interest income, and interest expense and other are included in Corporate and Eliminations. | ||||||||||||||||||||
-2 | Included in the income (loss) before income taxes for each of the segments are charges and credits for the three and nine months ended September 29, 2013 and September 30, 2012 that include restructuring and other, and provision for excess and obsolete inventory, as follows: | ||||||||||||||||||||
Included in the Semiconductor Test segment are charges for the following: | |||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—provision for excess and obsolete inventory | $ | 1,378 | $ | 3,085 | $ | 1,878 | $ | 9,254 | |||||||||||||
Restructuring and other | 282 | (4 | ) | 416 | 315 | ||||||||||||||||
Total | $ | 1,660 | $ | 3,081 | $ | 2,294 | $ | 9,569 | |||||||||||||
Included in the Wireless Test segment are charges for the following: | |||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—provision for excess and obsolete inventory | $ | 2,059 | $ | 2,018 | $ | 6,125 | $ | 4,134 | |||||||||||||
Cost of revenues—inventory step-up | — | — | — | 6,089 | |||||||||||||||||
Restructuring and other | — | 236 | 82 | 236 | |||||||||||||||||
Total | $ | 2,059 | $ | 2,254 | $ | 6,207 | $ | 10,459 | |||||||||||||
Included in the System Test segment are charges for the following: | |||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—provision for excess and obsolete inventory | $ | 404 | $ | 378 | $ | 1,613 | $ | 3,020 | |||||||||||||
Restructuring and other | 1,055 | 451 | 1,430 | 451 | |||||||||||||||||
Total | $ | 1,459 | $ | 829 | $ | 3,043 | $ | 3,471 | |||||||||||||
Included in Corporate and Eliminations are credits for the following: | |||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Restructuring and other | $ | (448 | ) | $ | — | $ | (448 | ) | $ | (8,406 | ) | ||||||||||
Total | $ | (448 | ) | $ | — | $ | (448 | ) | $ | (8,406 | ) | ||||||||||
Stock_Repurchase_Program
Stock Repurchase Program | 9 Months Ended |
Sep. 29, 2013 | |
Stock Repurchase Program | ' |
Q. Stock Repurchase Program | |
In November 2010, Teradyne’s board of directors authorized a stock repurchase program for up to $200 million. In the three and nine months ended September 29, 2013 and September 30, 2012, Teradyne did not repurchase any shares. Cumulatively, as of September 29, 2013, Teradyne has repurchased 2.6 million shares of common stock for $31.2 million at an average price of $11.84. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 29, 2013 | |
Subsequent Events | ' |
R. Subsequent Events | |
On October 25, 2013, Teradyne completed its acquisition of ZTEC Instruments, Inc. (“ZTEC”) located in Albuquerque, New Mexico. The acquisition was completed by acquiring all of the common and preferred stock of ZTEC for approximately $15 million and up to $5 million payable upon achievement of certain performance targets through December 31, 2015. The fair value of assets and liabilities acquired has not been disclosed because Teradyne has not completed the valuation. ZTEC is a supplier of modular wireless test instruments. The acquisition of ZTEC expands Teradyne’s wireless segment into the design verification test of wireless components and chipsets. | |
On November 1, 2013, Teradyne sold its equity interest in Empirix Inc. and received proceeds of $34.2 million. An additional $5.2 million of proceeds will be held in escrow for 15 months, for potential indemnifications to the buyer. Teradyne will record a gain of $34.2 million in the fourth quarter of 2013. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Sep. 29, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated interim financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of such interim financial statements. Certain prior year’s amounts were reclassified to conform to the current year presentation. The December 31, 2012 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. | |
The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form 10-K, filed with the U.S. Security and Exchange Commission (“SEC”) on March 1, 2013, for the year ended December 31, 2012. | |
Preparation of Financial Statements and Use of Estimates | ' |
Preparation of Financial Statements and Use of Estimates | |
The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Actual results may differ significantly from these estimates. |
Financial_Instruments_and_Deri1
Financial Instruments and Derivatives (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||
The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of September 29, 2013 and December 31, 2012. | |||||||||||||||||||||
September 29, 2013 | |||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | ||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash | $ | 147,819 | $ | — | $ | — | $ | 147,819 | |||||||||||||
Cash equivalents | 417,823 | 7,226 | — | 425,049 | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
U.S. government agency securities | — | 229,129 | — | 229,129 | |||||||||||||||||
U.S. Treasury securities | 211,956 | — | — | 211,956 | |||||||||||||||||
Commercial paper | — | 88,891 | — | 88,891 | |||||||||||||||||
Corporate debt securities | — | 43,982 | — | 43,982 | |||||||||||||||||
Equity and debt mutual funds | 12,122 | — | — | 12,122 | |||||||||||||||||
Certificates of deposit and time deposits | — | 261 | — | 261 | |||||||||||||||||
Non-U.S. government securities | — | 80 | — | 80 | |||||||||||||||||
Total | 789,720 | 369,569 | — | 1,159,289 | |||||||||||||||||
Derivatives | — | 276 | — | 276 | |||||||||||||||||
Total | $ | 789,720 | $ | 369,845 | $ | — | $ | 1,159,565 | |||||||||||||
Reported as follows: | |||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 565,642 | $ | 7,226 | $ | — | $ | 572,868 | |||||||||||||
Marketable securities | 185,085 | 199,249 | — | 384,334 | |||||||||||||||||
Long-term marketable securities | 38,993 | 163,094 | — | 202,087 | |||||||||||||||||
Other current assets | — | 276 | — | 276 | |||||||||||||||||
$ | 789,720 | $ | 369,845 | $ | — | $ | 1,159,565 | ||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | ||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash | $ | 139,354 | $ | — | $ | — | $ | 139,354 | |||||||||||||
Cash equivalents | 183,039 | 16,527 | — | 199,566 | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
U.S. Treasury securities | 312,116 | — | — | 312,116 | |||||||||||||||||
U.S. government agency securities | — | 217,655 | — | 217,655 | |||||||||||||||||
Commercial paper | — | 70,434 | — | 70,434 | |||||||||||||||||
Corporate debt securities | — | 55,755 | — | 55,755 | |||||||||||||||||
Equity and debt mutual funds | 9,717 | — | — | 9,717 | |||||||||||||||||
Certificates of deposit and time deposits | — | 1,627 | — | 1,627 | |||||||||||||||||
Non-U.S. government securities | — | 84 | — | 84 | |||||||||||||||||
Total | 644,226 | 362,082 | — | 1,006,308 | |||||||||||||||||
Derivatives | — | 121 | — | 121 | |||||||||||||||||
Total | $ | 644,226 | $ | 362,203 | $ | — | $ | 1,006,429 | |||||||||||||
Liabilities | |||||||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 388 | $ | 388 | |||||||||||||
Total | $ | — | $ | — | $ | 388 | $ | 388 | |||||||||||||
Reported as follows: | |||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 322,393 | $ | 16,527 | $ | — | $ | 338,920 | |||||||||||||
Marketable securities | 239,192 | 192,324 | — | 431,516 | |||||||||||||||||
Long-term marketable securities | 82,641 | 153,231 | — | 235,872 | |||||||||||||||||
Other current assets | — | 121 | — | 121 | |||||||||||||||||
$ | 644,226 | $ | 362,203 | $ | — | $ | 1,006,429 | ||||||||||||||
Liabilities | |||||||||||||||||||||
Other accrued liabilities | $ | — | $ | — | $ | 388 | $ | 388 | |||||||||||||
$ | — | $ | — | $ | 388 | $ | 388 | ||||||||||||||
Schedule of Carrying Amounts and Fair Values of Financial Instruments | ' | ||||||||||||||||||||
The carrying amounts and fair values of financial instruments at September 29, 2013 and December 31, 2012 were as follows: | |||||||||||||||||||||
September 29, 2013 | December 31, 2012 | ||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cash and cash equivalents | $ | 572,868 | $ | 572,868 | $ | 338,920 | $ | 338,920 | |||||||||||||
Marketable securities | 586,421 | 586,421 | 667,388 | 667,388 | |||||||||||||||||
Convertible debt(1) | 181,550 | 580,206 | 169,896 | 589,000 | |||||||||||||||||
Japan loan | 2,023 | 2,023 | 3,491 | 3,491 | |||||||||||||||||
-1 | The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion feature. | ||||||||||||||||||||
Schedule of Available-for-Sale Marketable Securities | ' | ||||||||||||||||||||
The following tables summarize the composition of available-for-sale marketable securities at September 29, 2013 and December 31, 2012: | |||||||||||||||||||||
September 29, 2013 | |||||||||||||||||||||
Available-for-Sale | Fair Market | ||||||||||||||||||||
Value of | |||||||||||||||||||||
Investments | |||||||||||||||||||||
with Unrealized | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Losses | |||||||||||||||||
Gain | (Loss) | Value | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
U.S. government agency securities | $ | 229,133 | $ | 142 | $ | (146 | ) | $ | 229,129 | $ | 103,165 | ||||||||||
U.S. Treasury securities | 211,966 | 140 | (150 | ) | 211,956 | 5,605 | |||||||||||||||
Commercial paper | 88,884 | 12 | (5 | ) | 88,891 | 25,169 | |||||||||||||||
Corporate debt securities | 44,132 | 905 | (1,055 | ) | 43,982 | 16,439 | |||||||||||||||
Equity and debt mutual funds | 9,843 | 2,315 | (36 | ) | 12,122 | 595 | |||||||||||||||
Certificates of deposit and time deposits | 261 | — | — | 261 | — | ||||||||||||||||
Non-U.S. government securities | 80 | — | — | 80 | — | ||||||||||||||||
$ | 584,299 | $ | 3,514 | $ | (1,392 | ) | $ | 586,421 | $ | 150,973 | |||||||||||
Reported as follows: | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Fair Market | |||||||||||||||||
Gain | (Loss) | Value | Value of | ||||||||||||||||||
Investments | |||||||||||||||||||||
with Unrealized | |||||||||||||||||||||
Losses | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Marketable securities | $ | 384,180 | $ | 168 | $ | (14 | ) | $ | 384,334 | $ | 37,823 | ||||||||||
Long-term marketable securities | 200,119 | 3,346 | (1,378 | ) | 202,087 | 113,150 | |||||||||||||||
$ | 584,299 | $ | 3,514 | $ | (1,392 | ) | $ | 586,421 | $ | 150,973 | |||||||||||
December 31, 2012 | |||||||||||||||||||||
Available-for-Sale | Fair Market | ||||||||||||||||||||
Value of | |||||||||||||||||||||
Investments | |||||||||||||||||||||
with Unrealized | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Losses | |||||||||||||||||
Gain | (Loss) | Value | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
U.S. Treasury securities | $ | 311,915 | $ | 216 | $ | (15 | ) | $ | 312,116 | $ | 1,018 | ||||||||||
U.S. government agency securities | 217,396 | 262 | (3 | ) | 217,655 | 9,018 | |||||||||||||||
Commercial paper | 70,431 | 9 | (6 | ) | 70,434 | 25,209 | |||||||||||||||
Corporate debt securities | 53,405 | 2,414 | (64 | ) | 55,755 | 23,255 | |||||||||||||||
Equity and debt mutual funds | 8,767 | 961 | (11 | ) | 9,717 | 600 | |||||||||||||||
Certificates of deposit and time deposits | 1,627 | — | — | 1,627 | — | ||||||||||||||||
Non-U.S. government securities | 84 | — | — | 84 | — | ||||||||||||||||
$ | 663,625 | $ | 3,862 | $ | (99 | ) | $ | 667,388 | $ | 59,100 | |||||||||||
Reported as follows: | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Fair Market | |||||||||||||||||
Gain | (Loss) | Value | Value of | ||||||||||||||||||
Investments | |||||||||||||||||||||
with Unrealized | |||||||||||||||||||||
Losses | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Marketable securities | $ | 431,324 | $ | 203 | $ | (11 | ) | $ | 431,516 | $ | 41,110 | ||||||||||
Long-term marketable securities | 232,301 | 3,659 | (88 | ) | 235,872 | 17,990 | |||||||||||||||
$ | 663,625 | $ | 3,862 | $ | (99 | ) | $ | 667,388 | $ | 59,100 | |||||||||||
Contractual Maturities of Available-for-Sale Marketable Securities | ' | ||||||||||||||||||||
The contractual maturities of available-for-sale marketable securities at September 29, 2013 were as follows: | |||||||||||||||||||||
September 29, 2013 | |||||||||||||||||||||
Cost | Fair Market | ||||||||||||||||||||
Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Due within one year | $ | 384,180 | $ | 384,334 | |||||||||||||||||
Due after 1 year through 5 years | 173,407 | 175,657 | |||||||||||||||||||
Due after 5 years through 10 years | 3,131 | 3,188 | |||||||||||||||||||
Due after 10 years | 23,581 | 23,242 | |||||||||||||||||||
Total | $ | 584,299 | $ | 586,421 | |||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value | ' | ||||||||||||||||||||
The following table summarizes the fair value of derivative instruments at September 29, 2013 and December 31, 2012: | |||||||||||||||||||||
Balance Sheet Location | September 29, | December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | 276 | $ | 121 | ||||||||||||||||
$ | 276 | $ | 121 | ||||||||||||||||||
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized | ' | ||||||||||||||||||||
The following table summarizes the effect of derivative instruments recognized in the statement of operations during the three and nine months ended September 29, 2013 and September 30, 2012. The table does not reflect the corresponding (losses) gains from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. For the three and nine months ended September 29, 2013, losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $(0.4) million and $(5.0) million, respectively. For the three and nine months ended September 30, 2012, gains from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $1.2 million and $0.8 million, respectively. | |||||||||||||||||||||
Location of Gains | For the Three | For the Nine | |||||||||||||||||||
(Losses) | Months Ended | Months Ended | |||||||||||||||||||
Recognized in | |||||||||||||||||||||
Statement | |||||||||||||||||||||
of Operations | September 29, | September 30, | September 29, | September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Foreign exchange contracts | Interest expense | $ | 1 | $ | (1,197 | ) | $ | 4,068 | $ | (677 | ) | ||||||||||
and other | |||||||||||||||||||||
$ | 1 | $ | (1,197 | ) | $ | 4,068 | $ | (677 | ) | ||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Components of Convertible Senior Notes | ' | ||||||||||||||||
The tables below represent the components of Teradyne’s convertible senior notes: | |||||||||||||||||
September 29, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Debt principal | $ | 189,998 | $ | 190,000 | |||||||||||||
Unamortized debt discount | 8,448 | 20,104 | |||||||||||||||
Net carrying amount of the convertible debt | $ | 181,550 | $ | 169,896 | |||||||||||||
Interest Expense on Convertible Senior Notes | ' | ||||||||||||||||
The interest expense on Teradyne’s convertible senior notes for the three and nine months ended September 29, 2013 and September 30, 2012 was as follows: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Contractual interest expense | $ | 2,114 | $ | 2,114 | $ | 6,388 | $ | 6,413 | |||||||||
Amortization of the discount component and debt issue fees | 4,221 | 3,710 | 12,266 | 10,781 | |||||||||||||
Total interest expense on the convertible debt | $ | 6,335 | $ | 5,824 | $ | 18,654 | $ | 17,194 | |||||||||
Deferred_Revenue_and_Customer_1
Deferred Revenue and Customer Advances (Tables) | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Deferred Revenue and Customer Advances | ' | ||||||||
Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances. | |||||||||
September 29, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands) | |||||||||
Maintenance, training and extended warranty | $ | 56,481 | $ | 51,198 | |||||
Customer advances | 22,287 | 39,613 | |||||||
Undelivered elements | 9,054 | 6,773 | |||||||
Total deferred revenue and customer advances | $ | 87,822 | $ | 97,584 | |||||
Product_Warranty_Tables
Product Warranty (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Other Accrued Liabilities | ' | ||||||||||||||||
The warranty balance below is included in other accrued liabilities. | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 7,351 | $ | 11,047 | $ | 9,786 | $ | 8,154 | |||||||||
Accruals for warranties issued during the period | 3,674 | 4,118 | 8,781 | 13,543 | |||||||||||||
Adjustments related to pre-existing warranties | (524 | ) | 1,226 | (2,323 | ) | 1,369 | |||||||||||
Settlements made during the period | (2,470 | ) | (3,813 | ) | (8,213 | ) | (10,488 | ) | |||||||||
Balance at end of period | $ | 8,031 | $ | 12,578 | $ | 8,031 | $ | 12,578 | |||||||||
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances | ' | ||||||||||||||||
The extended warranty balance below is included in short and long-term deferred revenue and customer advances. | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 34,854 | $ | 20,754 | $ | 26,987 | $ | 12,742 | |||||||||
Deferral of new extended warranty revenue | 5,586 | 8,733 | 17,791 | 21,015 | |||||||||||||
Recognition of extended warranty deferred revenue | (4,120 | ) | (2,007 | ) | (8,458 | ) | (6,277 | ) | |||||||||
Balance at end of period | $ | 36,320 | $ | 27,480 | $ | 36,320 | $ | 27,480 | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Stock Option | ' | ||||||||
Schedule of Estimated Fair Value of Stock Options Assumptions | ' | ||||||||
The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: | |||||||||
For the Nine Months | |||||||||
Ended | |||||||||
September 29, | September 30, | ||||||||
2013 | 2012 | ||||||||
Expected life (years) | 4 | 3.5 | |||||||
Interest rate | 0.6 | % | 0.4 | % | |||||
Volatility-historical | 46.8 | % | 56 | % | |||||
Dividend yield | 0 | % | 0 | % | |||||
Stock Purchase Rights | ' | ||||||||
Schedule of Estimated Fair Value of Stock Options Assumptions | ' | ||||||||
The fair value of the employees’ purchase rights granted in the nine months ended September 30, 2012 was estimated using the Black-Scholes option-pricing model with the following assumptions: | |||||||||
For the Nine Months Ended | |||||||||
September 30, | |||||||||
2012 | |||||||||
Expected life (years) | 0.5 | ||||||||
Interest rate | 0.11 | % | |||||||
Volatility-historical | 42.7 | % | |||||||
Dividend yield | 0 | % |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||
Changes in Accumulated Other Comprehensive Income | ' | ||||||||||||||||||
Changes in accumulated other comprehensive income, which is presented net of tax, consist of the following: | |||||||||||||||||||
Unrealized Gains on | Retirement Plans | Total | |||||||||||||||||
Marketable Securities | Prior Service Credit | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Balance at December 31, 2012 (a) | $ | 2,925 | $ | 2,895 | $ | 5,820 | |||||||||||||
Other comprehensive income before reclassifications | (1,019 | ) | — | (1,019 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (621 | ) | (325 | ) | (946 | ) | |||||||||||||
Net current period other comprehensive income | (1,640 | ) | (325 | ) | (1,965 | ) | |||||||||||||
Balance at September 29, 2013 (a) | $ | 1,285 | $ | 2,570 | $ | 3,855 | |||||||||||||
(a) | Net of tax of $835 for unrealized gains on marketable securities and $(125) for retirement plans prior service credit. | ||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||
Reclassifications out of accumulated other comprehensive income to the statement of operations for the three and nine months ended September 29, 2013 and September 30, 2012, were as follows: | |||||||||||||||||||
Details about Accumulated | For the Three Months Ended | For the Nine Months Ended | Affected Line Item | ||||||||||||||||
Other Comprehensive Income | in the Statements | ||||||||||||||||||
Components | of Operations | ||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Available-for-sale marketable securities | |||||||||||||||||||
Unrealized gains | $ | 202 | $ | 93 | $ | 621 | $ | 583 | Interest income | ||||||||||
$ | 202 | $ | 93 | $ | 621 | $ | 583 | ||||||||||||
Amortization of defined benefit pension and postretirement plans | |||||||||||||||||||
Prior service benefit | $ | 109 | $ | 92 | $ | 325 | $ | 275 | (a) | ||||||||||
$ | 109 | $ | 92 | $ | 325 | $ | 275 | ||||||||||||
Total reclassifications | $ | 311 | $ | 185 | $ | 946 | $ | 858 | Net income | ||||||||||
(a) | The amortization of prior service benefit is included in the computation of net periodic pension cost and postretirement benefit; see Note M “Retirement Plans.” |
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Schedule of Amortizable Intangible Assets | ' | ||||||||||||||||
Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet: | |||||||||||||||||
September 29, 2013 | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Useful Life | |||||||||||||||
(in thousands) | |||||||||||||||||
Developed technology | $ | 358,555 | $ | 180,960 | $ | 177,595 | 6.3 years | ||||||||||
Customer relationships and service and software maintenance contracts | 144,971 | 77,139 | 67,832 | 8.0 years | |||||||||||||
Trade names and trademarks | 33,840 | 13,562 | 20,278 | 9.0 years | |||||||||||||
Customer backlog | 1,000 | 1,000 | — | 0.4 years | |||||||||||||
Total intangible assets | $ | 538,366 | $ | 272,661 | $ | 265,705 | 7.0 years | ||||||||||
December 31, 2012 | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Useful Life | |||||||||||||||
(in thousands) | |||||||||||||||||
Developed technology | $ | 357,555 | $ | 143,126 | $ | 214,429 | 6.3 years | ||||||||||
Customer relationships and service and software maintenance contracts | 144,971 | 63,464 | 81,507 | 8.0 years | |||||||||||||
Trade names and trademarks | 33,840 | 10,909 | 22,931 | 9.0 years | |||||||||||||
Customer backlog | 1,000 | 1,000 | — | 0.4 years | |||||||||||||
Total intangible assets | $ | 537,366 | $ | 218,499 | $ | 318,867 | 7.0 years | ||||||||||
Schedule of Estimated Intangible Asset Amortization Expense | ' | ||||||||||||||||
Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: | |||||||||||||||||
Year | Amortization Expense | ||||||||||||||||
(in thousands) | |||||||||||||||||
2013 (remainder) | $ | 18,052 | |||||||||||||||
2014 | 69,213 | ||||||||||||||||
2015 | 52,462 | ||||||||||||||||
2016 | 52,462 | ||||||||||||||||
2017 | 46,304 |
Net_Income_per_Common_Share_Ta
Net Income per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Schedule of Computation of Basic and Diluted Net Income Per Common Share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted net income per common share: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net income for basic and diluted net income per share | $ | 69,459 | $ | 88,641 | $ | 142,604 | $ | 233,592 | |||||||||
Weighted average common shares-basic | 191,307 | 187,364 | 190,521 | 186,592 | |||||||||||||
Effect of dilutive potential common shares: | |||||||||||||||||
Incremental shares from assumed conversion of convertible notes(1) | 23,257 | 21,890 | 23,303 | 22,397 | |||||||||||||
Convertible note hedge warrant shares(2) | 18,678 | 16,765 | 18,742 | 17,474 | |||||||||||||
Restricted stock units | 1,102 | 1,423 | 1,000 | 1,413 | |||||||||||||
Stock options | 1,465 | 1,735 | 1,564 | 2,075 | |||||||||||||
Employee stock purchase rights | 19 | 33 | 35 | 52 | |||||||||||||
Dilutive potential common shares | 44,521 | 41,846 | 44,644 | 43,411 | |||||||||||||
Weighted average common shares-diluted | 235,828 | 229,210 | 235,165 | 230,003 | |||||||||||||
Net income per common share-basic | $ | 0.36 | $ | 0.47 | $ | 0.75 | $ | 1.25 | |||||||||
Net income per common share-diluted | $ | 0.29 | $ | 0.39 | $ | 0.61 | $ | 1.02 | |||||||||
-1 | Incremental shares from assumed conversion of the convertible notes for the three and nine months ended September 29, 2013 and September 30, 2012 are calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing the total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period. | ||||||||||||||||
-2 | Convertible note hedge warrant shares for the three and nine months ended September 29, 2013 and September 30, 2012 are calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing the total intrinsic value of the warrant, is divided by the average Teradyne stock price for the period. |
Restructuring_and_Other_Tables
Restructuring and Other (Tables) | 9 Months Ended | ||||||||||||
Sep. 29, 2013 | |||||||||||||
Restructuring and Other | ' | ||||||||||||
Severance | Facility | Total | |||||||||||
and | Exit | ||||||||||||
Benefits | Costs | ||||||||||||
(in thousands) | |||||||||||||
Pre-2012 Activities | |||||||||||||
Balance at December 31, 2011 | $ | 325 | $ | 1,862 | $ | 2,187 | |||||||
Cash payments | (325 | ) | (778 | ) | (1,103 | ) | |||||||
Balance at December 31, 2012 | — | 1,084 | 1,084 | ||||||||||
Change in estimate | — | (105 | ) | (105 | ) | ||||||||
Cash payments | — | (183 | ) | (183 | ) | ||||||||
Balance at March 31, 2013 | — | 796 | 796 | ||||||||||
Cash payments | — | (199 | ) | (199 | ) | ||||||||
Balance at June 30, 2013 | — | 597 | 597 | ||||||||||
Change in estimate | — | (448 | ) | (448 | ) | ||||||||
Cash payments | — | (149 | ) | (149 | ) | ||||||||
Balance at September 29, 2013 | $ | — | $ | — | $ | — | |||||||
2012 Activities | |||||||||||||
Q3 2012 Activity: | |||||||||||||
Provision | $ | 687 | $ | — | $ | 687 | |||||||
Cash payments | (444 | ) | — | (444 | ) | ||||||||
Balance at December 31, 2012 | 243 | — | 243 | ||||||||||
Cash payments | (243 | ) | — | (243 | ) | ||||||||
Balance at March 31, 2013 | $ | — | $ | — | $ | — | |||||||
2013 Activities | |||||||||||||
Q3 2013 Activity: | |||||||||||||
Provision | $ | 1,337 | $ | — | $ | 1,337 | |||||||
Cash payments | (884 | ) | — | (884 | ) | ||||||||
Balance at September 29, 2013 | $ | 453 | $ | — | $ | 453 | |||||||
Balance at September 29, 2013 | $ | 453 | $ | — | $ | 453 | |||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Defined Benefit Pension Plans | ' | ||||||||||||||||
Net Periodic Pension (Benefit) Cost | ' | ||||||||||||||||
Net periodic pension cost was comprised of the following: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Service cost | $ | 871 | $ | 685 | $ | 2,557 | $ | 2,054 | |||||||||
Interest cost | 3,350 | 4,111 | 10,001 | 12,333 | |||||||||||||
Expected return on plan assets | (3,664 | ) | (4,090 | ) | (10,925 | ) | (12,269 | ) | |||||||||
Amortization of unrecognized prior service cost | 41 | 58 | 123 | 174 | |||||||||||||
Actuarial loss (gain) | — | 1,937 | (1,122 | ) | 5,083 | ||||||||||||
Total net periodic pension cost | $ | 598 | $ | 2,701 | $ | 634 | $ | 7,375 | |||||||||
Post-Retirement Benefit Plans | ' | ||||||||||||||||
Net Periodic Pension (Benefit) Cost | ' | ||||||||||||||||
Net periodic postretirement benefit was comprised of the following: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended | Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Service cost | $ | 19 | $ | 17 | $ | 56 | $ | 50 | |||||||||
Interest cost | 86 | 109 | 257 | 328 | |||||||||||||
Amortization of unrecognized prior service benefit | (150 | ) | (150 | ) | (449 | ) | (449 | ) | |||||||||
Actuarial gain | — | — | (236 | ) | (92 | ) | |||||||||||
Total net periodic post-retirement benefit | $ | (45 | ) | $ | (24 | ) | $ | (372 | ) | $ | (163 | ) | |||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||
Segment information is as follows: | |||||||||||||||||||||
Semiconductor | Wireless | System | Corporate | Consolidated | |||||||||||||||||
Test | Test | Test | and | ||||||||||||||||||
Eliminations | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Three months ended September 29, 2013: | |||||||||||||||||||||
Net revenues | $ | 304,131 | $ | 93,132 | $ | 36,113 | $ | — | $ | 433,376 | |||||||||||
Income (loss) before income taxes(1)(2) | 68,932 | 27,575 | (2,462 | ) | (6,493 | ) | 87,552 | ||||||||||||||
Three months ended September 30, 2012: | |||||||||||||||||||||
Net revenues | $ | 310,979 | $ | 118,571 | $ | 33,844 | $ | — | $ | 463,394 | |||||||||||
Income (loss) before income taxes(1)(2) | 55,348 | 58,902 | (2,642 | ) | (8,583 | ) | 103,025 | ||||||||||||||
Nine months ended September 29, 2013: | |||||||||||||||||||||
Net revenues | $ | 808,068 | $ | 226,116 | $ | 108,448 | $ | — | $ | 1,142,632 | |||||||||||
Income (loss) before income taxes(1)(2) | 141,304 | 41,491 | (153 | ) | (16,159 | ) | 166,483 | ||||||||||||||
Nine months ended September 30, 2012: | |||||||||||||||||||||
Net revenues | $ | 943,625 | $ | 261,827 | $ | 202,894 | $ | — | $ | 1,408,346 | |||||||||||
Income (loss) before income taxes(1)(2) | 181,594 | 97,729 | 30,964 | (14,026 | ) | 296,261 | |||||||||||||||
-1 | Pension and post retirement actuarial gains and losses, interest income, and interest expense and other are included in Corporate and Eliminations. | ||||||||||||||||||||
-2 | Included in the income (loss) before income taxes for each of the segments are charges and credits for the three and nine months ended September 29, 2013 and September 30, 2012 that include restructuring and other, and provision for excess and obsolete inventory, as follows: | ||||||||||||||||||||
Semiconductor Test | ' | ||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Charges | ' | ||||||||||||||||||||
Included in the Semiconductor Test segment are charges for the following: | |||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—provision for excess and obsolete inventory | $ | 1,378 | $ | 3,085 | $ | 1,878 | $ | 9,254 | |||||||||||||
Restructuring and other | 282 | (4 | ) | 416 | 315 | ||||||||||||||||
Total | $ | 1,660 | $ | 3,081 | $ | 2,294 | $ | 9,569 | |||||||||||||
Wireless Test | ' | ||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Charges | ' | ||||||||||||||||||||
Included in the Wireless Test segment are charges for the following: | |||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—provision for excess and obsolete inventory | $ | 2,059 | $ | 2,018 | $ | 6,125 | $ | 4,134 | |||||||||||||
Cost of revenues—inventory step-up | — | — | — | 6,089 | |||||||||||||||||
Restructuring and other | — | 236 | 82 | 236 | |||||||||||||||||
Total | $ | 2,059 | $ | 2,254 | $ | 6,207 | $ | 10,459 | |||||||||||||
System Test | ' | ||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Charges | ' | ||||||||||||||||||||
Included in the System Test segment are charges for the following: | |||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—provision for excess and obsolete inventory | $ | 404 | $ | 378 | $ | 1,613 | $ | 3,020 | |||||||||||||
Restructuring and other | 1,055 | 451 | 1,430 | 451 | |||||||||||||||||
Total | $ | 1,459 | $ | 829 | $ | 3,043 | $ | 3,471 | |||||||||||||
Corporate And Eliminations | ' | ||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Charges | ' | ||||||||||||||||||||
Included in Corporate and Eliminations are credits for the following: | |||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Restructuring and other | $ | (448 | ) | $ | — | $ | (448 | ) | $ | (8,406 | ) | ||||||||||
Total | $ | (448 | ) | $ | — | $ | (448 | ) | $ | (8,406 | ) | ||||||||||
Financial_Instruments_and_Deri2
Financial Instruments and Derivatives - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale securities, realized gain | $200,000 | $300,000 | $500,000 | $900,000 | ' |
Final payment for Level 3 contingent consideration | ' | ' | 400,000 | ' | ' |
Fair market value of investments with unrealized losses | 150,973,000 | ' | 150,973,000 | ' | 59,100,000 |
Available-for-sale marketable securities, fair market value of investments with unrealized losses greater than one year | 500,000 | ' | 500,000 | ' | ' |
Available-for-sale marketable securities, fair market value of investments with unrealized losses less than one year | 150,500,000 | ' | 150,500,000 | ' | ' |
Gain (loss) on foreign currency transactions | -400,000 | 1,200,000 | -5,000,000 | 800,000 | ' |
Foreign Exchange Contract | ' | ' | ' | ' | ' |
Financial Instruments and Fair Value [Line Items] | ' | ' | ' | ' | ' |
Notional amount of foreign exchange contracts hedging monetary assets and liabilities | $64,100,000 | ' | $64,100,000 | ' | $64,100,000 |
Schedule_of_Fair_Value_of_Fina
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | $586,421 | $667,388 |
Derivatives | 276 | 121 |
Total including derivatives | 1,159,565 | 1,006,429 |
Contingent consideration | ' | 388 |
Liabilities | ' | 388 |
Cash | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash and Cash equivalents | 147,819 | 139,354 |
Cash Equivalents | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash and Cash equivalents | 425,049 | 199,566 |
U.S. Treasury Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 211,956 | 312,116 |
U.S. Government Agency Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 229,129 | 217,655 |
Commercial Paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 88,891 | 70,434 |
Corporate Debt Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 43,982 | 55,755 |
Equity And Debt Mutual Funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 12,122 | 9,717 |
Certificates Of Deposit And Time Deposits | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 261 | 1,627 |
Non-U.S. Government Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 80 | 84 |
Subtotal | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 1,159,289 | 1,006,308 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Total including derivatives | 789,720 | 644,226 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash and Cash equivalents | 147,819 | 139,354 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash Equivalents | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash and Cash equivalents | 417,823 | 183,039 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | U.S. Treasury Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 211,956 | 312,116 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Equity And Debt Mutual Funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 12,122 | 9,717 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Subtotal | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 789,720 | 644,226 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Derivatives | 276 | 121 |
Total including derivatives | 369,845 | 362,203 |
Significant Other Observable Inputs (Level 2) | Cash Equivalents | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash and Cash equivalents | 7,226 | 16,527 |
Significant Other Observable Inputs (Level 2) | U.S. Government Agency Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 229,129 | 217,655 |
Significant Other Observable Inputs (Level 2) | Commercial Paper | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 88,891 | 70,434 |
Significant Other Observable Inputs (Level 2) | Corporate Debt Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 43,982 | 55,755 |
Significant Other Observable Inputs (Level 2) | Certificates Of Deposit And Time Deposits | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 261 | 1,627 |
Significant Other Observable Inputs (Level 2) | Non-U.S. Government Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 80 | 84 |
Significant Other Observable Inputs (Level 2) | Subtotal | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available for sale securities | 369,569 | 362,082 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Contingent consideration | ' | 388 |
Liabilities | ' | $388 |
Schedule_of_Reported_Financial
Schedule of Reported Financial Assets and Liabilities (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | $1,159,565 | $1,006,429 |
Liabilities | ' | 388 |
Cash and Cash Equivalents | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 572,868 | 338,920 |
Marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 384,334 | 431,516 |
Long-term marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 202,087 | 235,872 |
Other current assets | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 276 | 121 |
Other Accrued Liabilities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Liabilities | ' | 388 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 789,720 | 644,226 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash and Cash Equivalents | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 565,642 | 322,393 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 185,085 | 239,192 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Long-term marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 38,993 | 82,641 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 369,845 | 362,203 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 7,226 | 16,527 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 199,249 | 192,324 |
Significant Other Observable Inputs (Level 2) | Long-term marketable securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 163,094 | 153,231 |
Significant Other Observable Inputs (Level 2) | Other current assets | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Assets | 276 | 121 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Liabilities | ' | 388 |
Significant Unobservable Inputs (Level 3) | Other Accrued Liabilities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Liabilities | ' | $388 |
Schedule_of_Carrying_Amounts_a
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Mar. 31, 2009 | ||
In Thousands, unless otherwise specified | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ' | ' | ' | ||
Cash and cash equivalents, Carrying Value | $572,868 | $338,920 | $485,692 | $573,736 | ' | ||
Convertible debt, Carrying Value | 181,550 | 169,896 | ' | ' | ' | ||
Japan loan, Carrying Value | ' | ' | ' | ' | 10,000 | ||
Carrying Value | ' | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ' | ' | ' | ||
Cash and cash equivalents, Carrying Value | 572,868 | 338,920 | ' | ' | ' | ||
Marketable securities, Carrying Value | 586,421 | 667,388 | ' | ' | ' | ||
Convertible debt, Carrying Value | 181,550 | [1] | 169,896 | [1] | ' | ' | ' |
Japan loan, Carrying Value | 2,023 | 3,491 | ' | ' | ' | ||
Fair Value | ' | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ' | ' | ' | ||
Cash and cash equivalents, Fair Value | 572,868 | 338,920 | ' | ' | ' | ||
Marketable securities, Fair Value | 586,421 | 667,388 | ' | ' | ' | ||
Convertible debt, Fair Value | 580,206 | [1] | 589,000 | [1] | ' | ' | ' |
Japan loan, Fair Value | $2,023 | $3,491 | ' | ' | ' | ||
[1] | The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note which includes the equity conversion feature. |
Schedule_of_Available_for_Sale
Schedule of Available for Sale Marketable Securities (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | $584,299 | $663,625 |
Available-for-sale marketable securities, Unrealized Gain | 3,514 | 3,862 |
Available-for-sale marketable securities, Unrealized (Loss) | -1,392 | -99 |
Available-for-sale marketable securities, Fair Market Value | 586,421 | 667,388 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 150,973 | 59,100 |
U.S. Government Agency Securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | 229,133 | 217,396 |
Available-for-sale marketable securities, Unrealized Gain | 142 | 262 |
Available-for-sale marketable securities, Unrealized (Loss) | -146 | -3 |
Available-for-sale marketable securities, Fair Market Value | 229,129 | 217,655 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 103,165 | 9,018 |
U.S. Treasury Securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | 211,966 | 311,915 |
Available-for-sale marketable securities, Unrealized Gain | 140 | 216 |
Available-for-sale marketable securities, Unrealized (Loss) | -150 | -15 |
Available-for-sale marketable securities, Fair Market Value | 211,956 | 312,116 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 5,605 | 1,018 |
Commercial Paper | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | 88,884 | 70,431 |
Available-for-sale marketable securities, Unrealized Gain | 12 | 9 |
Available-for-sale marketable securities, Unrealized (Loss) | -5 | -6 |
Available-for-sale marketable securities, Fair Market Value | 88,891 | 70,434 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 25,169 | 25,209 |
Corporate Debt Securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | 44,132 | 53,405 |
Available-for-sale marketable securities, Unrealized Gain | 905 | 2,414 |
Available-for-sale marketable securities, Unrealized (Loss) | -1,055 | -64 |
Available-for-sale marketable securities, Fair Market Value | 43,982 | 55,755 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 16,439 | 23,255 |
Equity And Debt Mutual Funds | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | 9,843 | 8,767 |
Available-for-sale marketable securities, Unrealized Gain | 2,315 | 961 |
Available-for-sale marketable securities, Unrealized (Loss) | -36 | -11 |
Available-for-sale marketable securities, Fair Market Value | 12,122 | 9,717 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 595 | 600 |
Certificates Of Deposit And Time Deposits | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | 261 | 1,627 |
Available-for-sale marketable securities, Fair Market Value | 261 | 1,627 |
Non-U.S. Government Securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | 80 | 84 |
Available-for-sale marketable securities, Fair Market Value | $80 | $84 |
Schedule_of_Reported_Available
Schedule of Reported Available for Sale Marketable Securities (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | $584,299 | $663,625 |
Available-for-sale marketable securities, Unrealized Gain | 3,514 | 3,862 |
Available-for-sale marketable securities, Unrealized (Loss) | -1,392 | -99 |
Available-for-sale marketable securities, Fair Market Value | 586,421 | 667,388 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 150,973 | 59,100 |
Marketable securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | 384,180 | 431,324 |
Available-for-sale marketable securities, Unrealized Gain | 168 | 203 |
Available-for-sale marketable securities, Unrealized (Loss) | -14 | -11 |
Available-for-sale marketable securities, Fair Market Value | 384,334 | 431,516 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 37,823 | 41,110 |
Long-term marketable securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available-for-sale marketable securities, Cost | 200,119 | 232,301 |
Available-for-sale marketable securities, Unrealized Gain | 3,346 | 3,659 |
Available-for-sale marketable securities, Unrealized (Loss) | -1,378 | -88 |
Available-for-sale marketable securities, Fair Market Value | 202,087 | 235,872 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $113,150 | $17,990 |
Contractual_Maturities_of_Avai
Contractual Maturities of Available-for-Sale Marketable Securities (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ' | ' |
Available for sale securities, Cost | $584,299 | $663,625 |
Available for sale securities, Fair Market Value | 586,421 | 667,388 |
Due In One Year Or Less | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available for sale securities, Cost | 384,180 | ' |
Available for sale securities, Fair Market Value | 384,334 | ' |
Due After One Year Through Five Years | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available for sale securities, Cost | 173,407 | ' |
Available for sale securities, Fair Market Value | 175,657 | ' |
Due After Five Years Through Ten Years | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available for sale securities, Cost | 3,131 | ' |
Available for sale securities, Fair Market Value | 3,188 | ' |
Due After Ten Years | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available for sale securities, Cost | 23,581 | ' |
Available for sale securities, Fair Market Value | 23,242 | ' |
Available-for-sale Securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Available for sale securities, Cost | 584,299 | ' |
Available for sale securities, Fair Market Value | $586,421 | ' |
Schedule_of_Effect_of_Derivati
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' | ' |
Derivatives asset not designated as hedging instruments | $276 | ' | $276 | ' | $121 |
Foreign exchange contracts derivatives not designated as hedging instruments, Gains (Losses) Recognized in Statement of Operations | 1 | -1,197 | 4,068 | -677 | ' |
Interest Expense and Other | ' | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' | ' |
Foreign exchange contracts derivatives not designated as hedging instruments, Gains (Losses) Recognized in Statement of Operations | 1 | -1,197 | 4,068 | -677 | ' |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other current assets | ' | ' | ' | ' | ' |
Fair Value, Option, Quantitative Disclosures | ' | ' | ' | ' | ' |
Derivatives asset not designated as hedging instruments | $276 | ' | $276 | ' | $121 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||||||
Mar. 31, 2009 | Mar. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Mar. 31, 2009 | Sep. 29, 2013 | Apr. 30, 2009 | Mar. 31, 2009 | Sep. 29, 2013 | Sep. 29, 2013 | Nov. 08, 2013 | |
Y | Convertible Notes Hedge Warrant | Convertible Notes Hedge Warrant | Convertible Notes Hedge Warrant | Convertible Notes Hedge Warrant | Convertible Notes Hedge Warrant | Convertible Senior Notes | 4.50% Convertible Senior Notes Due March 15, 2014 | 4.50% Convertible Senior Notes Due March 15, 2014 | 4.50% Convertible Senior Notes Due March 15, 2014 | 4.50% Convertible Senior Notes Due March 15, 2014 | 4.50% Convertible Senior Notes Due March 15, 2014 | |||||
D | Subsequent Event | |||||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings from local bank | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of loan, years | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate, stated percentage | 0.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | ' | ' | ' | ' |
Loan collateralized by real estate mortgage | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured loan | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Semiannual principal payments of loan | ' | 1,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan principal amount | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | 189,998,000 | ' | 190,000,000 | ' | ' | ' | ' | ' | ' | 190,000,000 | ' | ' | ' | ' |
Senior notes maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'March 15, 2014 | ' | ' | ' | ' |
Initial conversion rate in number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 182.65 | ' |
Additional aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' |
Initial debt conversion price | ' | ' | $5.48 | ' | ' | $7.67 | $7.67 | $7.67 | $7.67 | $7.67 | ' | ' | $5.48 | ' | ' | ' |
Debt conversion premium percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Last reported sale price per share of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.38 | ' | ' | ' |
Initial conversion rate | ' | ' | 'The Notes may be converted, at the option of the holder, under certain circumstances and during certain periods, at an initial conversion rate of approximately 182.65 shares of Teradyne's common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $5.48, a 25% conversion premium based on the last reported sale price of $4.38 per share of Teradyne's common stock on March 31, 2009. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold trading days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' |
Threshold consecutive trading days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' |
Threshold percentage of stock price trigger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' |
Stock price trigger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000 |
Antidilution adjustments, shares | ' | ' | 34,703,196 | ' | ' | 34,700,000 | 34,700,000 | 34,700,000 | 34,700,000 | ' | ' | ' | ' | ' | ' | ' |
Convertible note hedges | ' | ' | 64,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Strike price per share of warrant | $7.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of warrant price in excess of closing price of common stock | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from warrants | 43,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants conversion premium percentage | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized discount | ' | ' | 8,448,000 | ' | 20,104,000 | ' | ' | ' | ' | ' | 8,400,000 | ' | ' | ' | ' | ' |
Amortization period of unamortized discount, months | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of equity component | ' | ' | 63,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument conversion price | ' | ' | $5.48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
If-converted value of notes | ' | ' | $579,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Components_of_Convertible_Seni
Components of Convertible Senior Notes (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ' | ' |
Debt principal | $189,998 | $190,000 |
Unamortized debt discount | 8,448 | 20,104 |
Net carrying amount of the convertible debt | $181,550 | $169,896 |
Interest_Expense_on_Convertibl
Interest Expense on Convertible Senior Notes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Debt Instrument | ' | ' | ' | ' |
Contractual interest expense | $2,114 | $2,114 | $6,388 | $6,413 |
Amortization of the discount component and debt issue fees | 4,221 | 3,710 | 12,266 | 10,781 |
Total interest expense on the convertible debt | $6,335 | $5,824 | $18,654 | $17,194 |
Deferred_Revenue_and_Customer_2
Deferred Revenue and Customer Advances (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement | ' | ' |
Maintenance, training and extended warranty | $56,481 | $51,198 |
Customer advances | 22,287 | 39,613 |
Undelivered elements | 9,054 | 6,773 |
Total deferred revenue and customer advances | $87,822 | $97,584 |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Schedule of Accrued Liabilities [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | $7,351 | $11,047 | $9,786 | $8,154 |
Accruals for warranties issued during the period | 3,674 | 4,118 | 8,781 | 13,543 |
Adjustments related to pre-existing warranties | -524 | 1,226 | -2,323 | 1,369 |
Settlements made during the period | -2,470 | -3,813 | -8,213 | -10,488 |
Balance at end of period | 8,031 | 12,578 | 8,031 | 12,578 |
Balance at beginning of period | 34,854 | 20,754 | 26,987 | 12,742 |
Deferral of new extended warranty revenue | 5,586 | 8,733 | 17,791 | 21,015 |
Recognition of extended warranty deferred revenue | -4,120 | -2,007 | -8,458 | -6,277 |
Balance at end of period | $36,320 | $27,480 | $36,320 | $27,480 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Stock options term | '7 years | ' | ' |
Restricted stock unit awards to employees | 1.9 | 1.7 | ' |
Weighted average grant date fair value of restricted stock units granted | $16.60 | $16.73 | ' |
Number of service-based stock options granted to executive officers | 0.2 | 0.2 | ' |
Weighted average grant date fair value of stock options granted to executive officers | $6.09 | $6.85 | ' |
Price paid by employees for common stock purchased through employee stock purchase plan as percentage of stock price | 85.00% | ' | 85.00% |
Restricted Stock Units | Employees | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Period of stock granted to employees and executive officers vest in equal installments | '4 years | ' | ' |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Period of stock granted to employees and executive officers vest in equal installments | '4 years | ' | ' |
Stock Purchase Rights | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Weighted average grant date fair value of stock options granted to executive officers | ' | $3.75 | ' |
Black_Scholes_Option_Pricing_M
Black Scholes Option Pricing Model (Detail) (Stock Options) | 9 Months Ended | |
Sep. 29, 2013 | Sep. 30, 2012 | |
Stock Options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Expected life (years) | '4 years | '3 years 6 months |
Interest rate | 0.60% | 0.40% |
Volatility-historical | 46.80% | 56.00% |
Dividend yield | 0.00% | 0.00% |
Schedule_of_Estimated_Fair_Val
Schedule of Estimated Fair Value of Stock Options Assumptions (Detail) (Stock Purchase Rights) | 9 Months Ended |
Sep. 30, 2012 | |
Stock Purchase Rights | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Expected life (years) | '6 months |
Interest rate | 0.11% |
Volatility-historical | 42.70% |
Dividend yield | 0.00% |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income Balances (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | $5,820 | [1] | ' | |
Other comprehensive income before reclassifications | ' | ' | -1,019 | ' | ||
Amounts reclassified from accumulated other comprehensive income | -311 | -185 | -946 | -858 | ||
Other comprehensive income (loss) | 576 | 1,074 | -1,965 | 1,597 | ||
Ending balance | 3,855 | [1] | ' | 3,855 | [1] | ' |
Unrealized Gains on Marketable Securities | ' | ' | ' | ' | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | 2,925 | [1] | ' | |
Other comprehensive income before reclassifications | ' | ' | -1,019 | ' | ||
Amounts reclassified from accumulated other comprehensive income | ' | ' | -621 | ' | ||
Other comprehensive income (loss) | ' | ' | -1,640 | ' | ||
Ending balance | 1,285 | [1] | ' | 1,285 | [1] | ' |
Retirement Plans Prior Service Credit | ' | ' | ' | ' | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | 2,895 | [1] | ' | |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -325 | ' | ||
Other comprehensive income (loss) | ' | ' | -325 | ' | ||
Ending balance | $2,570 | [1] | ' | $2,570 | [1] | ' |
[1] | Net of tax of $835 for unrealized gains on marketable securities and $(125) for retirement plans prior service credit. |
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Income Balances (Parenthetical) (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Unrealized gains on marketable securities, tax | $835 | $835 |
Retirement plans prior service benefit, tax | ($125) | ($125) |
Reclassification_Out_of_Accumu
Reclassification Out of Accumulated Other Comprehensive Income to Statement of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Unrealized gains | $202 | $93 | $621 | $583 | ||||
Net income | 202 | 93 | 621 | 583 | ||||
Prior service benefit | 109 | [1] | 92 | [1] | 325 | [1] | 275 | [1] |
Net income | 109 | 92 | 325 | 275 | ||||
Total reclassifications | $311 | $185 | $946 | $858 | ||||
[1] | The amortization of prior service benefit is included in the computation of net periodic pension cost and postretirement benefit; see Note M "Retirement Plans." |
Schedule_of_Amortizable_Intang
Schedule of Amortizable Intangible Assets (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | $538,366 | $537,366 |
Accumulated Amortization | 272,661 | 218,499 |
Net Carrying Amount | 265,705 | 318,867 |
Weighted Average Useful Life, years | '7 years | '7 years |
Developed technology | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 358,555 | 357,555 |
Accumulated Amortization | 180,960 | 143,126 |
Net Carrying Amount | 177,595 | 214,429 |
Weighted Average Useful Life, years | '6 years 3 months 18 days | '6 years 3 months 18 days |
Customer Relationships And Service And Software Maintenance Contracts | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 144,971 | 144,971 |
Accumulated Amortization | 77,139 | 63,464 |
Net Carrying Amount | 67,832 | 81,507 |
Weighted Average Useful Life, years | '8 years | '8 years |
Trade Names And Trademarks | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 33,840 | 33,840 |
Accumulated Amortization | 13,562 | 10,909 |
Net Carrying Amount | 20,278 | 22,931 |
Weighted Average Useful Life, years | '9 years | '9 years |
Customer Backlog | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 1,000 | 1,000 |
Accumulated Amortization | $1,000 | $1,000 |
Weighted Average Useful Life, years | '4 months 24 days | '4 months 24 days |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' | ' | ' |
Aggregate intangible asset amortization expense | $18,064 | $18,429 | $54,163 | $55,287 |
Schedule_of_Estimated_Intangib
Schedule of Estimated Intangible Asset Amortization Expense (Detail) (USD $) | Sep. 29, 2013 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets | ' |
2013 (remainder) | $18,052 |
2014 | 69,213 |
2015 | 52,462 |
2016 | 52,462 |
2017 | $46,304 |
Net_Income_Per_Common_Share_De
Net Income Per Common Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Net Income Loss Per Common Share | ' | ' | ' | ' | ||||
Net income for basic and diluted net income per share | $69,459 | $88,641 | $142,604 | $233,592 | ||||
Weighted average common shares-basic | 191,307 | 187,364 | 190,521 | 186,592 | ||||
Incremental shares from assumed conversion of convertible notes | 23,257 | [1] | 21,890 | [1] | 23,303 | [1] | 22,397 | [1] |
Convertible note hedge warrant shares | 18,678 | [2] | 16,765 | [2] | 18,742 | [2] | 17,474 | [2] |
Restricted stock units | 1,102 | 1,423 | 1,000 | 1,413 | ||||
Stock options | 1,465 | 1,735 | 1,564 | 2,075 | ||||
Employee stock purchase rights | 19 | 33 | 35 | 52 | ||||
Dilutive potential common shares | 44,521 | 41,846 | 44,644 | 43,411 | ||||
Weighted average common shares-diluted | 235,828 | 229,210 | 235,165 | 230,003 | ||||
Net income per common share-basic | $0.36 | $0.47 | $0.75 | $1.25 | ||||
Net income per common share-diluted | $0.29 | $0.39 | $0.61 | $1.02 | ||||
[1] | Incremental shares from assumed conversion of the convertible notes for the three and nine months ended September 29, 2013 and September 30, 2012 are calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing the total intrinsic value of the convertible debt, is divided by the average Teradyne stock price for the period. | |||||||
[2] | Convertible note hedge warrant shares for the three and nine months ended September 29, 2013 and September 30, 2012 are calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by the 34.7 million shares that would be issued upon conversion. The result of this calculation, representing the total intrinsic value of the warrant, is divided by the average Teradyne stock price for the period. |
Net_Income_Per_Common_Share_Pa
Net Income Per Common Share (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Mar. 31, 2009 | |
Net Income Loss Per Common Share | ' | ' | ' | ' | ' |
Initial debt conversion price | $5.48 | ' | $5.48 | ' | ' |
Shares that would be issued upon conversion | ' | ' | 34,703,196 | ' | ' |
Convertible Notes | ' | ' | ' | ' | ' |
Net Income Loss Per Common Share | ' | ' | ' | ' | ' |
Initial debt conversion price | $5.48 | $5.48 | $5.48 | $5.48 | ' |
Shares that would be issued upon conversion | 34,700,000 | 34,700,000 | 34,700,000 | 34,700,000 | ' |
Convertible Notes Hedge Warrant | ' | ' | ' | ' | ' |
Net Income Loss Per Common Share | ' | ' | ' | ' | ' |
Initial debt conversion price | $7.67 | $7.67 | $7.67 | $7.67 | $7.67 |
Shares that would be issued upon conversion | 34,700,000 | 34,700,000 | 34,700,000 | 34,700,000 | ' |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Net Income Loss Per Common Share | ' | ' | ' | ' |
Exercise of stock options | 0.4 | 0.3 | 0.4 | 0.3 |
Restricted stock units exercise to purchase shares | ' | 0.1 | ' | 0.4 |
Restructuring_and_Other_Additi
Restructuring and Other - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Employee | Employee | |
Restructuring Cost and Reserve | ' | ' |
Severance benefit and charges | $1.30 | $0.70 |
Reduction in employees head count | 40 | 9 |
Change in estimated exit costs related to leased facility | -0.4 | ' |
Accrual for severance and benefits | 0.5 | ' |
Business acquisition, contingent consideration | 8.4 | ' |
System Test | ' | ' |
Restructuring Cost and Reserve | ' | ' |
Severance benefit and charges | 1 | 0.5 |
Reduction in employees head count | ' | 7 |
Wireless Test | ' | ' |
Restructuring Cost and Reserve | ' | ' |
Severance benefit and charges | ' | 0.2 |
Reduction in employees head count | ' | 2 |
Semiconductor Test | ' | ' |
Restructuring Cost and Reserve | ' | ' |
Severance benefit and charges | $0.30 | ' |
Schedule_of_Restructuring_and_
Schedule of Restructuring and Other Net (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve | ' | ' | ' | ' |
Ending balance | $453 | ' | ' | ' |
Pre-2012 Activities | ' | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' | ' |
Beginning Balance | 597 | 796 | 1,084 | 2,187 |
Change in estimate | -448 | ' | -105 | ' |
Cash payments | -149 | -199 | -183 | -1,103 |
Ending balance | ' | 597 | 796 | 1,084 |
Q3 2012 Activity | ' | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' | ' |
Beginning Balance | ' | ' | 243 | ' |
Provision | ' | ' | ' | 687 |
Cash payments | ' | ' | -243 | -444 |
Ending balance | ' | ' | ' | 243 |
Q3 2013 Activity | ' | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' | ' |
Provision | 1,337 | ' | ' | ' |
Cash payments | -884 | ' | ' | ' |
Ending balance | 453 | ' | ' | ' |
Employee Serverance And Benefits | ' | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' | ' |
Ending balance | 453 | ' | ' | ' |
Employee Serverance And Benefits | Pre-2012 Activities | ' | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 325 |
Cash payments | ' | ' | ' | -325 |
Employee Serverance And Benefits | Q3 2012 Activity | ' | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' | ' |
Beginning Balance | ' | ' | 243 | ' |
Provision | ' | ' | ' | 687 |
Cash payments | ' | ' | -243 | -444 |
Ending balance | ' | ' | ' | 243 |
Employee Serverance And Benefits | Q3 2013 Activity | ' | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' | ' |
Provision | 1,337 | ' | ' | ' |
Cash payments | -884 | ' | ' | ' |
Ending balance | 453 | ' | ' | ' |
Facility Exit Costs | Pre-2012 Activities | ' | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' | ' |
Beginning Balance | 597 | 796 | 1,084 | 1,862 |
Change in estimate | -448 | ' | -105 | ' |
Cash payments | -149 | -199 | -183 | -778 |
Ending balance | ' | $597 | $796 | $1,084 |
Schedule_of_Net_Periodic_Pensi
Schedule of Net Periodic Pension (Benefit) Costs (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Actuarial (gain) loss | ' | ' | ($1,359) | $4,991 |
Defined Benefit Pension Plans | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Service cost | 871 | 685 | 2,557 | 2,054 |
Interest cost | 3,350 | 4,111 | 10,001 | 12,333 |
Expected return on plan assets | -3,664 | -4,090 | -10,925 | -12,269 |
Amortization of unrecognized prior service cost (benefit) | 41 | 58 | 123 | 174 |
Actuarial (gain) loss | ' | 1,937 | -1,122 | 5,083 |
Total net periodic (benefit) cost | 598 | 2,701 | 634 | 7,375 |
Post-Retirement Benefit Plans | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Service cost | 19 | 17 | 56 | 50 |
Interest cost | 86 | 109 | 257 | 328 |
Amortization of unrecognized prior service cost (benefit) | -150 | -150 | -449 | -449 |
Actuarial (gain) loss | ' | ' | -236 | -92 |
Total net periodic (benefit) cost | ($45) | ($24) | ($372) | ($163) |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 |
Employee | United States Pension Plans of US Entity, Defined Benefit | Foreign Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure | ' | ' | ' |
Contribution to defined benefit pension plans | ' | $1.30 | $1.30 |
Number of former employees elected to receive lump-sum payment | 2,000 | ' | ' |
Lump sum payment made for former employees | $52 | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 29, 2013 |
Purchase Commitment, Excluding Long-term Commitment | ' |
Aggregate purchase commitments | 243.3 |
Purchase commitments less than one year | 231.5 |
Maximum | ' |
Purchase Commitment, Excluding Long-term Commitment | ' |
Purchase commitments period | '1 year |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Effective tax rate | 21.00% | 14.00% | 14.00% | 21.00% |
U.S. statutory federal tax rate | 35.00% | ' | 35.00% | ' |
Schedule_of_Segment_Informatio
Schedule of Segment Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | $433,376 | $463,394 | $1,142,632 | $1,408,346 | ||||
Income (loss) before income taxes | 87,552 | [1],[2] | 103,025 | [1],[2] | 166,483 | [1],[2] | 296,261 | [1],[2] |
Semiconductor Test | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 304,131 | 310,979 | 808,068 | 943,625 | ||||
Income (loss) before income taxes | 68,932 | [1],[2] | 55,348 | [1],[2] | 141,304 | [1],[2] | 181,594 | [1],[2] |
Wireless Test | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 93,132 | 118,571 | 226,116 | 261,827 | ||||
Income (loss) before income taxes | 27,575 | [1],[2] | 58,902 | [1],[2] | 41,491 | [1],[2] | 97,729 | [1],[2] |
System Test | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 36,113 | 33,844 | 108,448 | 202,894 | ||||
Income (loss) before income taxes | -2,462 | [1],[2] | -2,642 | [1],[2] | -153 | [1],[2] | 30,964 | [1],[2] |
Corporate And Eliminations | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Income (loss) before income taxes | ($6,493) | [1],[2] | ($8,583) | [1],[2] | ($16,159) | [1],[2] | ($14,026) | [1],[2] |
[1] | Pension and post retirement actuarial gains and losses, interest income, and interest expense and other are included in Corporate and Eliminations. | |||||||
[2] | Included in the income (loss) before income taxes for each of the segments are charges and credits for the three and nine months ended September 29, 2013 and September 30, 2012 that include restructuring and other, and provision for excess and obsolete inventory, as follows: |
Schedule_of_Segment_Reporting_
Schedule of Segment Reporting Information by Segment Charges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Semiconductor Test | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Cost of revenues-provision for excess and obsolete inventory | $1,378 | $3,085 | $1,878 | $9,254 |
Restructuring and other | 282 | -4 | 416 | 315 |
Total | 1,660 | 3,081 | 2,294 | 9,569 |
Wireless Test | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Cost of revenues-provision for excess and obsolete inventory | 2,059 | 2,018 | 6,125 | 4,134 |
Cost of revenues-inventory step-up | ' | ' | ' | 6,089 |
Restructuring and other | ' | 236 | 82 | 236 |
Total | 2,059 | 2,254 | 6,207 | 10,459 |
System Test | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Cost of revenues-provision for excess and obsolete inventory | 404 | 378 | 1,613 | 3,020 |
Restructuring and other | 1,055 | 451 | 1,430 | 451 |
Total | 1,459 | 829 | 3,043 | 3,471 |
Corporate And Eliminations | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Restructuring and other | -448 | ' | -448 | -8,406 |
Total | ($448) | ' | ($448) | ($8,406) |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 1 Months Ended | 34 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Nov. 30, 2010 | Sep. 29, 2013 |
Stock Repurchase Program | ' | ' |
Stock repurchase program, authorized amount | $200 | ' |
Repurchase of stock, shares | ' | 2.6 |
Repurchase of stock, value | ' | $31.20 |
Common stock average price | ' | $11.84 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | Dec. 31, 2012 | Dec. 31, 2013 | Nov. 01, 2013 | Oct. 25, 2013 | Oct. 25, 2013 |
Scenario, Forecast | Subsequent Event | Subsequent Event | Subsequent Event | ||
ZTEC | ZTEC | ||||
Maximum | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Acquisition price | ' | ' | ' | $15,000,000 | ' |
Amount payable upon completion of performance target | 388,000 | ' | ' | ' | 5,000,000 |
Proceeds from sale of equity interest | ' | ' | 34,200,000 | ' | ' |
Additional proceeds held in escrow | ' | ' | 5,200,000 | ' | ' |
Amount of gain will record | ' | $34,200,000 | ' | ' | ' |