Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 27, 2014 | |
Document Information | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TER | ||
Entity Registrant Name | TERADYNE, INC | ||
Entity Central Index Key | 97210 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 217,783,809 | ||
Entity Public Float | $3,800,000,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $294,256 | $341,638 | ||
Marketable securities | 533,787 | 586,882 | ||
Accounts receivable, less allowance for doubtful accounts of $2,491 and $2,912 in 2014 and 2013, respectively | 151,034 | 157,642 | ||
Inventories: | ||||
Parts | 70,821 | 84,232 | ||
Assemblies in process | 10,347 | 15,539 | ||
Finished goods | 23,961 | 38,168 | ||
Inventory, Net, Total | 105,129 | 137,939 | ||
Deferred tax assets | 57,239 | 72,478 | ||
Prepayments | 95,819 | 136,374 | ||
Other current assets | 6,582 | 7,324 | ||
Total current assets | 1,243,846 | 1,440,277 | ||
Net property, plant and equipment | 329,038 | 275,236 | ||
Marketable securities | 470,789 | 271,078 | ||
Deferred tax assets | 7,494 | 5,217 | ||
Other assets | 10,419 | 14,591 | ||
Retirement plans assets | 12,896 | 9,342 | ||
Intangible assets, net | 190,600 | 252,291 | ||
Goodwill | 273,438 | 361,792 | ||
Total assets | 2,538,520 | [1] | 2,629,824 | [1] |
Current liabilities: | ||||
Accounts payable | 47,763 | 62,874 | ||
Accrued employees' compensation and withholdings | 100,994 | 95,619 | ||
Deferred revenue and customer advances | 71,603 | 55,404 | ||
Other accrued liabilities | 51,997 | 63,712 | ||
Accrued income taxes | 20,049 | 11,360 | ||
Debt | 186,663 | |||
Total current liabilities | 292,406 | 475,632 | ||
Long-term deferred revenue and customer advances | 19,929 | 13,756 | ||
Retirement plans liabilities | 108,460 | 91,517 | ||
Deferred tax liabilities | 23,315 | 40,686 | ||
Long-term other accrued liabilities | 15,430 | 23,139 | ||
Total liabilities | 459,540 | 644,730 | ||
Commitments and contingencies (Note J) | ||||
SHAREHOLDERS' EQUITY | ||||
Common stock, $0.125 par value, 1,000,000 shares authorized, 216,613 and 191,731 shares issued and outstanding at December 31, 2014 and 2013, respectively | 27,077 | 23,966 | ||
Additional paid-in capital | 1,437,135 | 1,390,896 | ||
Accumulated other comprehensive income | 4,689 | 4,000 | ||
Retained earnings | 610,079 | 566,232 | ||
Total shareholders' equity | 2,078,980 | 1,985,094 | ||
Total liabilities and shareholders' equity | $2,538,520 | $2,629,824 | ||
[1] | Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, less allowance for doubtful accounts | $2,491 | $2,912 |
Common stock, par value | $0.13 | $0.13 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 216,613 | 191,731 |
Common stock, shares outstanding | 216,613 | 191,731 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Revenues: | ||||||||||||||||||
Products | $253,162 | [1],[2],[3] | $402,987 | [1],[4] | $452,488 | [1] | $255,386 | $211,710 | [5],[6] | $365,825 | $363,087 | $214,300 | $1,364,024 | $1,154,922 | $1,383,569 | |||
Services | 70,074 | [1],[2],[3] | 75,023 | [1],[4] | 73,079 | [1] | 65,624 | 73,591 | [5],[6] | 67,551 | 65,802 | 66,067 | 283,800 | 273,011 | 273,181 | |||
Total revenues | 323,236 | [1],[2],[3] | 478,010 | [1],[4] | 525,567 | [1] | 321,010 | 285,301 | [5],[6] | 433,376 | 428,889 | 280,367 | 1,647,824 | [7] | 1,427,933 | [7] | 1,656,750 | [7] |
Cost of revenues: | ||||||||||||||||||
Cost of products | 131,337 | [1],[2],[3] | 182,591 | [1],[4] | 202,411 | [1] | 124,448 | 93,461 | [5],[6] | 150,365 | 158,411 | 96,793 | 640,787 | 499,030 | 642,881 | |||
Cost of services | 31,673 | [1],[2],[3] | 34,298 | [1],[4] | 32,743 | [1] | 29,515 | 31,983 | [5],[6] | 28,717 | 29,245 | 30,157 | 128,229 | 120,102 | 127,832 | |||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 163,010 | [1],[2],[3] | 216,889 | [1],[4] | 235,154 | [1] | 153,963 | 125,444 | [5],[6] | 179,082 | 187,656 | 126,950 | 769,016 | 619,132 | 770,713 | |||
Gross profit | 160,226 | [1],[2],[3] | 261,121 | [1],[4] | 290,413 | [1] | 167,047 | 159,857 | [5],[6] | 254,294 | 241,233 | 153,417 | 878,808 | 808,801 | 886,037 | |||
Operating expenses: | ||||||||||||||||||
Engineering and development | 79,188 | [1],[2],[3] | 71,953 | [1],[4] | 73,414 | [1] | 67,085 | 64,613 | [5],[6] | 68,918 | 67,773 | 62,751 | 291,639 | 264,055 | 255,866 | |||
Selling and administrative | 91,157 | [1],[2],[3] | 73,064 | [1],[4] | 77,489 | [1] | 78,003 | 69,523 | [5],[6] | 72,917 | 69,230 | 67,890 | 319,713 | 279,560 | 277,016 | |||
Goodwill impairment | 98,897 | [1],[2],[3] | 98,897 | |||||||||||||||
Acquired intangible assets amortization | 15,957 | [1],[2],[3] | 18,271 | [1],[4] | 18,271 | [1] | 18,271 | 18,284 | [5],[6] | 18,064 | 18,063 | 18,036 | 70,771 | 72,447 | 73,508 | |||
Restructuring and other | 1,198 | [1],[2],[3] | -405 | [1],[4] | 572 | [1] | 600 | [5],[6] | 889 | 259 | 332 | 1,365 | 2,080 | -7,721 | ||||
Total operating expenses | 286,397 | [1],[2],[3] | 162,883 | [1],[4] | 169,746 | [1] | 163,359 | 153,020 | [5],[6] | 160,788 | 155,325 | 149,009 | 782,385 | 618,142 | 598,669 | |||
Income from operations | -126,171 | [1],[2],[3] | 98,238 | [1],[4] | 120,667 | [1] | 3,688 | 6,837 | [5],[6] | 93,506 | 85,908 | 4,408 | 96,423 | 190,659 | 287,368 | |||
Non-operating (income) expenses: | ||||||||||||||||||
Interest income | -2,035 | [1],[2],[3] | -1,922 | [1],[4] | -1,266 | [1] | -1,036 | -1,206 | [5],[6] | -948 | -903 | -1,072 | -6,259 | -4,129 | -4,090 | |||
Interest expense | 214 | [1],[2],[3] | 144 | [1],[4] | 159 | [1] | 6,417 | 6,771 | [5],[6] | 6,488 | 6,435 | 6,403 | 6,934 | 26,097 | 24,534 | |||
Other (income) expense, net | 463 | [1],[2],[3] | -654 | [1],[4] | 382 | [1] | 180 | -34,168 | [5],[6] | 414 | 19 | 503 | 372 | -33,231 | 948 | |||
Income (loss) before income taxes | -124,813 | [1],[2],[3] | 100,670 | [1],[4] | 121,392 | [1] | -1,873 | 35,439 | [5],[6] | 87,552 | 80,357 | -1,426 | 95,376 | [8],[9] | 201,922 | [8],[9] | 265,976 | [8],[9] |
Provision for income taxes | -21,002 | [1],[2],[3] | 17,721 | [1],[4] | 20,187 | [1] | -2,802 | 13,096 | [5],[6] | 18,093 | 13,801 | -8,015 | 14,104 | 36,975 | 48,927 | |||
Net income | ($103,811) | [1],[2],[3] | $82,949 | [1],[4] | $101,205 | [1] | $929 | $22,343 | [5],[6] | $69,459 | $66,556 | $6,589 | $81,272 | $164,947 | $217,049 | |||
Net income per common share: | ||||||||||||||||||
Basic | ($0.48) | [1],[2],[3] | $0.40 | [1],[4] | $0.52 | [1] | $0 | $0.12 | [5],[6] | $0.36 | $0.35 | $0.03 | $0.40 | $0.86 | $1.16 | |||
Diluted | ($0.48) | [1],[2],[3] | $0.38 | [1],[4] | $0.47 | [1] | $0 | $0.09 | [5],[6] | $0.29 | $0.28 | $0.03 | $0.37 | $0.70 | $0.94 | |||
Weighted average common shares-basic | 202,908 | 190,772 | 186,878 | |||||||||||||||
Weighted average common shares-diluted | 222,550 | 235,599 | 230,246 | |||||||||||||||
Cash dividend declared per common share | $0.06 | [1],[2],[3] | $0.06 | [1],[4] | $0.06 | [1] | $0 | $0 | [5],[6] | $0 | $0 | $0 | $0.18 | |||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | |||||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | |||||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | |||||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | |||||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[7] | Revenues attributable to a country are based on location of customer site. | |||||||||||||||||
[8] | Interest income, interest expense, other (income) expense, net and pension and postretirement plans actuarial gains and losses are included in Corporate and Eliminations. | |||||||||||||||||
[9] | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and goodwill impairment charges. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Net income | $81,272 | $164,947 | $217,049 | |||
Unrealized gains (losses) on marketable securities: | ||||||
Unrealized gains (losses) on marketable securities arising during period, net of tax of $1,449, $216, $370 | 2,417 | -1,097 | 2,009 | |||
Less: Reclassification adjustment for gains included in net income, net of tax of $(645), $(257), $(201) | -1,433 | -447 | -702 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | 984 | -1,544 | 1,307 | |||
Defined benefit pension and post-retirement plans: | ||||||
Amortization of prior service (benefit) cost included in net periodic pension and post-retirement expense/income, net of tax $(169), $(159), $(134) | -295 | [1] | -276 | [1] | -233 | [1] |
Other comprehensive income (loss) | 689 | -1,820 | 1,074 | |||
Comprehensive income | $81,961 | $163,127 | $218,123 | |||
[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." |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other comprehensive income before reclassifications, tax | $1,449 | $216 | $370 |
Amounts reclassified from accumulated other comprehensive income, tax | -645 | -257 | -201 |
Amortization of prior service (benefit) costs, tax | ($169) | ($159) | ($134) |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | |
In Thousands, unless otherwise specified | ||||||
Balance, at Dec. 31, 2011 | $1,505,060 | $22,948 | $1,293,130 | $4,746 | $184,236 | |
Balance, Shares at Dec. 31, 2011 | 183,587 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax (in shares) | 4,321 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax | 6,894 | 540 | 6,354 | |||
Stock-based compensation expense | 39,920 | 39,920 | ||||
Tax benefit related to stock options and restricted stock units | 8,358 | 8,358 | ||||
Net income | 217,049 | 217,049 | ||||
Unrealized loss (gain) on marketable securities: | ||||||
Unrealized gain (loss) on marketable securities, net of tax of $370 in 2012, $216 in 2013 and $1,449 in 2014 | 2,009 | 2,009 | ||||
Less: reclassification adjustment for gains included in net income, net of tax of $(201) in 2012, $(257) in 2013 and $(645) in 2014 | -702 | -702 | ||||
Amortization of prior service benefit, net of tax of $(134) in 2012, $(159) in 2013 and $(169)in 2014 | -233 | [1] | -233 | |||
Balance, at Dec. 31, 2012 | 1,778,355 | 23,488 | 1,347,762 | 5,820 | 401,285 | |
Balance, Shares at Dec. 31, 2012 | 187,908 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax (in shares) | 3,823 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax | 5,404 | 478 | 4,926 | |||
Stock-based compensation expense | 35,612 | 35,612 | ||||
Tax benefit related to stock options and restricted stock units | 2,596 | 2,596 | ||||
Net income | 164,947 | 164,947 | ||||
Unrealized loss (gain) on marketable securities: | ||||||
Unrealized gain (loss) on marketable securities, net of tax of $370 in 2012, $216 in 2013 and $1,449 in 2014 | -1,097 | -1,097 | ||||
Less: reclassification adjustment for gains included in net income, net of tax of $(201) in 2012, $(257) in 2013 and $(645) in 2014 | -447 | -447 | ||||
Amortization of prior service benefit, net of tax of $(134) in 2012, $(159) in 2013 and $(169)in 2014 | -276 | [1] | -276 | |||
Balance, at Dec. 31, 2013 | 1,985,094 | 23,966 | 1,390,896 | 4,000 | 566,232 | |
Balance, Shares at Dec. 31, 2013 | 191,731 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax (in shares) | 3,661 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax | 9,273 | 458 | 8,815 | |||
Warrant settlement | 2,653 | -2,653 | ||||
Warrant settlement Shares | 21,221 | |||||
Stock-based compensation expense | 39,868 | 39,868 | ||||
Tax benefit related to stock options and restricted stock units | 209 | 209 | ||||
Cash dividends | -37,425 | -37,425 | ||||
Net income | 81,272 | 81,272 | ||||
Unrealized loss (gain) on marketable securities: | ||||||
Unrealized gain (loss) on marketable securities, net of tax of $370 in 2012, $216 in 2013 and $1,449 in 2014 | 2,417 | 2,417 | ||||
Less: reclassification adjustment for gains included in net income, net of tax of $(201) in 2012, $(257) in 2013 and $(645) in 2014 | -1,433 | -1,433 | ||||
Amortization of prior service benefit, net of tax of $(134) in 2012, $(159) in 2013 and $(169)in 2014 | -295 | [1] | -295 | |||
Balance, at Dec. 31, 2014 | $2,078,980 | $27,077 | $1,437,135 | $4,689 | $610,079 | |
Balance, Shares at Dec. 31, 2014 | 216,613 | |||||
[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." |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Issuance of stock to employees under benefit plans, shares withheld for payroll tax | $12,018 | $12,192 | $11,582 |
Unrealized gain (loss) on marketable securities, tax portion | 1,449 | 216 | 370 |
Amounts reclassified from accumulated other comprehensive income, tax | -645 | -257 | -201 |
Amortization of prior service benefit, tax | ($169) | ($159) | ($134) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $81,272 | $164,947 | $217,049 |
Adjustments to reconcile income from operations to net cash provided by operating activities: | |||
Depreciation | 73,390 | 57,317 | 55,049 |
Amortization | 79,154 | 93,370 | 90,465 |
Stock-based compensation | 40,307 | 36,612 | 39,920 |
Goodwill impairment | 98,897 | ||
Provision for excess and obsolete inventory | 22,193 | 16,592 | 26,849 |
Deferred taxes | -4,411 | -4,284 | 5,556 |
Gain from the sale of an equity investment | -34,212 | ||
Tax benefit related to stock options and restricted stock units | -535 | -2,675 | -8,490 |
Non cash charge for the sale of inventories revalued at the date of acquisition | 6,089 | ||
Retirement plans actuarial losses (gains) | 46,564 | -10,340 | 23,320 |
Contingent consideration adjustment | -630 | -8,761 | |
Other | 3,505 | 1,107 | -2,250 |
Changes in operating assets and liabilities, net of businesses acquired: | |||
Accounts receivable | 8,060 | -3,656 | -24,093 |
Inventories | 51,172 | 21,170 | 17,652 |
Prepayments and other assets | 41,537 | -49,572 | -2,995 |
Accounts payable and other accrued expenses | -45,430 | 15,205 | -32,810 |
Deferred revenue and customer advances | 22,033 | -28,979 | -14,627 |
Retirement plan contributions | -33,916 | -5,540 | -4,778 |
Accrued income taxes | 8,900 | 1,648 | 19,804 |
Net cash provided by operating activities | 492,062 | 268,710 | 402,949 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | -168,982 | -106,731 | -119,080 |
Purchases of available-for-sale marketable securities | -1,578,743 | -1,170,506 | -748,229 |
Acquisition of businesses, net of cash acquired | -19,419 | -14,999 | |
Proceeds from maturities of available-for-sale marketable securities | 570,358 | 516,499 | 225,085 |
Proceeds from sales of available-for-sale marketable securities | 859,729 | 458,491 | 38,284 |
Proceeds from (purchases of) life insurance | 4,184 | -307 | 1,451 |
Proceeds from the sale of an equity investment | 34,212 | ||
Net cash used for investing activities | -332,873 | -283,341 | -602,489 |
Cash flows from financing activities: | |||
Issuance of common stock under stock option and stock purchase plans | 21,291 | 17,596 | 18,477 |
Tax benefit related to stock options and restricted stock units | 535 | 2,675 | 8,490 |
Dividend payments | -37,425 | ||
Payments of long-term debt | -190,972 | -2,534 | -2,533 |
Payments of contingent consideration | -388 | -59,710 | |
Net cash (used for) provided by financing activities | -206,571 | 17,349 | -35,276 |
(Decrease) increase in cash and cash equivalents | -47,382 | 2,718 | -234,816 |
Cash and cash equivalents at beginning of year | 341,638 | 338,920 | 573,736 |
Cash and cash equivalents at end of year | 294,256 | 341,638 | 338,920 |
Cash paid during the year for: | |||
Interest | 4,294 | 8,590 | 8,602 |
Income taxes | $25,893 | $38,156 | $8,084 |
The_Company
The Company | 12 Months Ended | |||
Dec. 31, 2014 | ||||
The Company | A. THE COMPANY | |||
Teradyne, Inc. 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 | |||
• | defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, storage test (“Storage Test”) systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”). |
Accounting_Policies
Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies | B. ACCOUNTING POLICIES | ||||||||
The consolidated financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions are eliminated. Certain prior years’ amounts were reclassified to conform to the current year presentation. | |||||||||
Preparation of Financial Statements and Use of Estimates | |||||||||
The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going basis, management evaluates its estimates, including those related to inventories, investments, goodwill, intangible and other long-lived assets, doubtful accounts, income taxes, deferred tax assets, pensions, warranties, and loss contingencies. Management bases its estimates on historical experience and on appropriate and customary assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ significantly from these estimates. | |||||||||
Revenue Recognition | |||||||||
Teradyne recognizes revenue when there is persuasive evidence of an arrangement, title and risk of loss have passed, delivery has occurred or the services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Title and risk of loss generally pass to its customers upon shipment or at delivery destination point. In circumstances where either title or risk of loss pass upon destination, acceptance or cash payment, Teradyne defers revenue recognition until such events occur. | |||||||||
Teradyne’s equipment has non-software and embedded software components that function together to deliver the equipment’s essential functionality. Revenue is recognized upon shipment or at delivery destination point, provided that customer acceptance criteria can be demonstrated prior to shipment. Certain contracts require Teradyne to perform tests of the product to ensure that performance meets the published product specifications or customer requested specifications, which are generally conducted prior to shipment. Where the criteria cannot be demonstrated prior to shipment, revenue is deferred until customer acceptance has been received. Teradyne also defers the portion of the sales price that is not due until acceptance, which represents deferred profit. | |||||||||
For multiple element arrangements, Teradyne allocates revenue to all deliverables based on their relative selling prices. In such circumstances, a hierarchy is used to determine the selling price for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of selling price (“VSOE”), (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of the selling price (“BESP”). For a delivered item to be considered a separate unit the delivered item must have value to the customer on a standalone basis and the delivery or performance of the undelivered item must be considered probable and substantially in Teradyne’s control. | |||||||||
Teradyne’s post-shipment obligations include installation, training services, one-year standard warranties, and extended warranties. Installation does not alter the product capabilities, does not require specialized skills or tools and can be performed by the customers or other vendors. Installation is typically provided within five days of product shipment and is completed within one to two days thereafter. Training services are optional and do not affect the customers’ ability to use the product. Teradyne defers revenue for the selling price of installation and training. Revenue associated with the one year standard warranty is recognized at the time product revenue is recognized. Extended warranties constitute warranty obligations beyond one year and Teradyne defers revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605-20, “Separately Priced Extended Warranty and Product Maintenance Contracts” and ASC 605-25, “Revenue Recognition Multiple-Element Arrangements.” Service revenue is recognized over the contractual period or as services are performed. | |||||||||
Teradyne’s products are generally subject to warranty and related costs of the warranty are provided for in cost of revenues when product revenue is recognized. Teradyne classifies shipping and handling costs in cost of revenues. Teradyne generally does not provide its customers with contractual rights of return for any of its products. | |||||||||
As of December 31, 2014 and 2013, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Extended warranty | $ | 43,300 | $ | 34,909 | |||||
Equipment maintenance and training | 30,500 | 22,455 | |||||||
Customer advances | 8,875 | 4,825 | |||||||
Undelivered elements | 8,857 | 6,971 | |||||||
Total deferred revenue and customer advances | $ | 91,532 | $ | 69,160 | |||||
Product Warranty | |||||||||
Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance 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 balance below is included in other accrued liabilities. | |||||||||
Amount | |||||||||
(in thousands) | |||||||||
Balance at December 31, 2011 | $ | 8,153 | |||||||
Accruals for warranties issued during the period | 14,704 | ||||||||
Accruals related to pre-existing warranties | 877 | ||||||||
Settlements made during the period | (13,948 | ) | |||||||
Balance at December 31, 2012 | 9,786 | ||||||||
Accruals for warranties issued during the period | 10,574 | ||||||||
Accruals related to pre-existing warranties | (3,534 | ) | |||||||
Settlements made during the period | (10,166 | ) | |||||||
Balance at December 31, 2013 | 6,660 | ||||||||
Accruals for warranties issued during the period | 15,406 | ||||||||
Accruals related to pre-existing warranties | (2,008 | ) | |||||||
Settlements made during the period | (11,116 | ) | |||||||
Balance at December 31, 2014 | $ | 8,942 | |||||||
When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances. | |||||||||
Amount | |||||||||
(in thousands) | |||||||||
Balance at December 31, 2011 | $ | 14,030 | |||||||
Deferral of new extended warranty revenue | 22,704 | ||||||||
Recognition of extended warranty deferred revenue | (8,690 | ) | |||||||
Balance at December 31, 2012 | 28,044 | ||||||||
Deferral of new extended warranty revenue | 20,630 | ||||||||
Recognition of extended warranty deferred revenue | (13,765 | ) | |||||||
Balance at December 31, 2013 | 34,909 | ||||||||
Deferral of new extended warranty revenue | 29,519 | ||||||||
Recognition of extended warranty deferred revenue | (21,128 | ) | |||||||
Balance at December 31, 2014 | $ | 43,300 | |||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The volatility of the industries that Teradyne serves can cause certain of its customers to experience shortages of cash flows, which can impact their ability to make required payments. Teradyne maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are charged off against the allowance when it is determined the receivable will not be recovered. | |||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost (first-in, first-out basis) or net realizable value. On a quarterly basis, Teradyne uses consistent methodologies to evaluate all inventories for net realizable value. Teradyne records a provision for both excess and obsolete inventory when such write-downs or write-offs are identified through the quarterly review process. The inventory valuation is based upon assumptions about future demand, product mix and possible alternative uses. | |||||||||
Investments | |||||||||
Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, “Investments—Debt and Equity Securities.” ASC 320-10 requires that certain debt and equity securities be classified into one of three categories; trading, available-for-sale or held-to-maturity securities. On a quarterly basis, Teradyne reviews its investments to identify and evaluate those that have an indication of a potential other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include: | |||||||||
• | The length of time and the extent to which the market value has been less than cost; | ||||||||
• | The financial condition and near-term prospects of the issuer; and | ||||||||
• | The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. | ||||||||
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. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the years ended December 31, 2014, 2013 and 2012. ASC 820-10 requires that assets and liabilities carried at fair value be classified and disclosed 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, and therefore is considered a Level 2 input. | |||||||||
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. | |||||||||
In accordance with ASC 820-10, Teradyne measures its debt and equity investments at fair value. Teradyne’s debt and equity investments are primarily classified within Level 1 and 2, with the exception of acquisition-related contingent consideration, which was classified within Level 3. Teradyne determines the fair value of acquisition-related contingent consideration based on assessment of the probability that it would be required to make such payment. | |||||||||
Prepayments | |||||||||
Prepayments consist of the following and are included in prepayments on the balance sheet: | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Contract manufacturer prepayments | $ | 65,972 | $ | 115,388 | |||||
Prepaid taxes | 11,462 | 3,281 | |||||||
Prepaid maintenance and other services | 7,343 | 6,538 | |||||||
Other prepayments | 11,042 | 11,167 | |||||||
Total prepayments | $ | 95,819 | $ | 136,374 | |||||
Retirement and Postretirement Plans | |||||||||
Effective January 1, 2012, Teradyne changed the method of recognizing actuarial gains and losses for its defined benefit pension plans and postretirement benefit plan and calculating the expected return on plan assets for its defined benefit pension plans. Historically, Teradyne recognized net actuarial gains and losses in accumulated other comprehensive income within shareholders’ equity on its consolidated balance sheet on an annual basis and amortized them into operating results over the average remaining years of service of the plan participants, to the extent such gains and losses were outside of a range (“corridor”). Teradyne elected to immediately recognize net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. In addition, Teradyne used to calculate the expected return on plan assets using a calculated market-related value of plan assets. Effective January 1, 2012, Teradyne elected to calculate the expected return on plan assets using the fair value of the plan assets. | |||||||||
Teradyne believes that this new method is preferable as it eliminates the delay in recognizing gains and losses in its operating results and it will improve the transparency by faster recognition of the effects of economic and interest rate trends on plan obligations and investments. These actuarial gains and losses are generally measured annually as of December 31 and, accordingly, will be recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. In accordance with FASB ASC Topic 250, “Accounting Changes and Error Corrections,” all prior periods presented in this Annual Report on Form 10-K have been adjusted to apply the new accounting method retrospectively. | |||||||||
Goodwill, Intangible and Long-Lived Assets | |||||||||
Teradyne accounts for goodwill and intangible assets in accordance with ASC 350-10, “Intangibles-Goodwill and Other.” Intangible assets are amortized over their estimated useful economic life and are carried at cost less accumulated amortization. Goodwill is assessed for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. In accordance with ASC 350-10, Teradyne has the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If Teradyne determines this is the case, Teradyne is required to perform the two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If Teradyne determines that it is more-likely-than-not that the fair value of the reporting unit is greater than its carrying amounts, the two-step goodwill impairment test is not required. | |||||||||
In accordance with ASC 360-10, “Impairment or Disposal of Long-Lived Assets,” Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the estimated undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. The cash flow estimates used to determine the impairment, if any, contain management’s best estimates using appropriate assumptions and projections at that time. There were no events or circumstances indicating that the carrying value of intangible and long-lived assets may not be recoverable in 2013 or 2012. As a result of the Wireless Test segment goodwill impairment charge in the fourth quarter of 2014, Teradyne performed an impairment test of the Wireless Test segment’s intangible and long-lived assets based on a comparison of the estimated undiscounted cash flows to the recorded value of the assets and there was no indication of impairment. | |||||||||
Property, Plant and Equipment | |||||||||
Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related allowances for depreciation are removed from the accounts and any resulting gain or loss is reflected in the statement of operations. | |||||||||
Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: | |||||||||
Buildings | 40 years | ||||||||
Building improvements | 5 to 10 years | ||||||||
Leasehold improvements | Lesser of lease term or 10 years | ||||||||
Furniture and fixtures | 10 years | ||||||||
Test systems manufactured internally | 6 years | ||||||||
Machinery and equipment | 3 to 5 years | ||||||||
Software | 3 to 5 years | ||||||||
Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year life to cost of revenues, engineering and development, and selling and administrative expenses. Teradyne often sells internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. Test systems leased by customers are depreciated over an estimated useful life of approximately four years. The net book value of internally manufactured test systems sold in the years ended December 31, 2014, 2013 and 2012 was $9.7 million, $9.0 million and $6.0 million, respectively. | |||||||||
Engineering and Development Costs | |||||||||
Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees, allocated facility costs, depreciation, and tooling costs. | |||||||||
Stock Compensation Plans and Employee Stock Purchase Plan | |||||||||
Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, “Compensation-Stock Compensation.” As required by ASC 718-10, Teradyne has made an estimate of expected forfeitures and is recognizing compensation costs only for those stock-based compensation awards expected to vest. | |||||||||
Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). | |||||||||
Income Taxes | |||||||||
Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Teradyne performed the required assessment of positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes.” This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on its assessment, Teradyne concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized. U.S. income taxes are not provided for on the earnings of non-U.S. subsidiaries, except Japan, which are expected to be reinvested indefinitely in operations outside the U.S. For intra-period tax allocations, Teradyne first utilizes non-equity related tax attributes, such as net operating losses and credit carryforwards and then equity-related tax attributes. Teradyne uses the with-and-without method for calculating excess stock compensation deductions and does not take into account any indirect impacts of excess stock compensation deductions on its research and development tax credits, domestic production activities deduction, and other differences between financial reporting and tax reporting. | |||||||||
Advertising Costs | |||||||||
Teradyne expenses all advertising costs as incurred. Advertising costs were $1.9 million, $1.7 million and $1.6 million in 2014, 2013 and 2012, respectively. | |||||||||
Translation of Non-U.S. Currencies | |||||||||
The functional currency for all subsidiaries is the U.S. dollar. All foreign currency denominated monetary assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net and were a loss of $0.9 million, $6.9 million and $4.5 million, respectively, for the years ended December 31, 2014, 2013 and 2012. These amounts do not reflect the corresponding gains (losses) from foreign exchange contracts. See Note F: “Financial Instruments” regarding foreign exchange contracts. Revenue and expense amounts are translated using an average of exchange rates in effect during the period. | |||||||||
Net Income per Common Share | |||||||||
Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Except where the result would be antidilutive, diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. | |||||||||
Dilutive potential common shares included incremental shares from the assumed conversion of the convertible notes and the convertible notes hedge warrant shares, during the periods the convertible notes and warrants were outstanding. Incremental shares from the assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. Teradyne’s call option for 34.7 million shares at an exercise price of $5.48 was not used in the GAAP earnings per share calculation as its effect was anti-dilutive. | |||||||||
Teradyne settled its conversion spread (i.e., the intrinsic value of the embedded option feature contained in the convertible debt) in shares. Teradyne accounted for its conversion spread using the treasury stock method. Teradyne determined that it had the ability and intent to settle the principal amount of the convertible debt in cash; accordingly, the principal amount was excluded from the determination of diluted earnings per share. | |||||||||
Comprehensive Income (Loss) | |||||||||
Comprehensive income (loss) includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt and equity marketable securities. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recently Issued Accounting Pronouncements | C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” which will replace numerous requirements in U.S. GAAP, including industry-specific requirements, and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to show the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled to in exchange for those goods or services. The new standard will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. For Teradyne, the standard will be effective in the first quarter of 2017. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. Teradyne has not yet selected a transition method. Teradyne is currently evaluating the impact of this ASU on its financial position and results of operations. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Acquisitions | D. ACQUISITIONS | ||||||||
Business | |||||||||
Avionics Interface Technologies, LLC. | |||||||||
On October 31, 2014, Teradyne completed its acquisition of Avionics Interface Technologies, LLC (“AIT”) located in Omaha, Nebraska and Dayton, Ohio. AIT is a supplier of equipment for testing state-of-the-art data communication buses. The acquisition of AIT complements Teradyne’s Defense/Aerospace line of bus test instrumentation for commercial and defense avionics systems. AIT is included in Teradyne’s System Test segment. | |||||||||
The total purchase price of $21.2 million consisted of $19.4 million of cash paid to acquire AIT’s assets and liabilities and $1.8 million in fair value of contingent consideration payable upon achievement of certain revenue and gross margin targets in 2015 and 2016. The maximum amount of contingent consideration that could be paid is $2.1 million. | |||||||||
The valuation of the contingent consideration utilized the following assumptions: (1) probability of meeting each target; (2) expected timing of meeting each target; and (3) discount rate reflecting the risk associated with the expected payments. The probabilities and timing for each target were estimated based on a review of the historical and projected results. A discount rate of 4.7 percent was selected based on the cost of debt for the business, as a significant portion of the risk in achieving the contingent consideration was captured in the probabilities assigned to meeting each target. | |||||||||
The AIT acquisition was accounted for as a business combination and, accordingly, the results have been included in Teradyne’s consolidated results of operations from the date of acquisition. The allocation of the total purchase price of AIT’s net tangible and identifiable intangible assets was based on their estimated fair values as of the acquisition date. The excess of the purchase price over the identifiable intangible and net tangible assets in the amount of $10.5 million was allocated to goodwill, which is deductible for tax purposes. | |||||||||
The purchase price allocation is preliminary pending the final determination of the fair value of certain acquired assets and assumed liabilities. | |||||||||
The following represents the allocation of the purchase price: | |||||||||
Purchase Price Allocation | |||||||||
(in thousands) | |||||||||
Goodwill | $ | 10,516 | |||||||
Intangible assets | 9,080 | ||||||||
Tangible assets acquired and liabilities assumed: | |||||||||
Other current assets | 2,452 | ||||||||
Non-current assets | 359 | ||||||||
Accounts payable and current liabilities | (1,164 | ) | |||||||
Total purchase price | $ | 21,243 | |||||||
Teradyne estimated the fair value of intangible assets using the income approach. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives. The following table lists these intangible assets and their estimated useful lives at the acquisition date: | |||||||||
Fair Value | Estimated Useful | ||||||||
Life | |||||||||
(in thousands) | (in years) | ||||||||
Developed technology | $ | 2,580 | 4.8 | ||||||
Customer relationships | 5,630 | 5 | |||||||
Trademark | 380 | 5 | |||||||
Non-competes | 320 | 4 | |||||||
Backlog | 170 | 0.3 | |||||||
Total intangible assets | $ | 9,080 | 4.8 | ||||||
For the period from October 31, 2014 to December 31, 2014, AIT contributed $0.6 million of revenues and had a $(0.8) million loss from operations before income taxes. | |||||||||
The following unaudited pro forma information gives effect to the acquisition of AIT as if the acquisition occurred on January 1, 2013. The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented: | |||||||||
For the Year Ended | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands, except | |||||||||
per share amounts) | |||||||||
Revenues | $ | 1,655,038 | 1,434,699 | ||||||
Net income | $ | 82,169 | $ | 164,087 | |||||
Income per common share: | |||||||||
Basic | $ | 0.4 | $ | 0.86 | |||||
Diluted | $ | 0.37 | $ | 0.7 | |||||
ZTEC Instruments, Inc. | |||||||||
On October 25, 2013, Teradyne completed its acquisition of ZTEC Instruments, Inc. (“ZTEC”) located in Albuquerque, New Mexico. ZTEC is a supplier of modular wireless test instruments. The acquisition of ZTEC expands Teradyne’s Wireless Test segment into the design verification test of wireless components and chipsets. | |||||||||
The total purchase price of $17.3 million consisted of $15.1 million of cash paid to acquire the outstanding common and preferred stock of ZTEC and $2.2 million in fair value of contingent consideration payable upon achievement of certain customer order and revenue targets through 2015. The maximum amount of contingent consideration that could be paid is $5.0 million. Based on the projected results for the acquisition, no value was assigned to the revenue component of the contingent consideration. | |||||||||
The valuation of the customer order component of the contingent consideration utilized the following assumptions: (1) probability of meeting each target; (2) expected timing of meeting each target; and (3) discount rate reflecting the risk associated with the expected payments. The probabilities and timing for each target were estimated based on a review of the historical and projected results. A discount rate of 5.2 percent was selected based on the cost of debt for the business, as a significant portion of the risk in achieving the customer order contingent consideration was captured in the probabilities assigned to meeting each target. | |||||||||
The ZTEC acquisition was accounted for as a purchase business combination and, accordingly, the results have been included in Teradyne’s consolidated results of operation from the date of acquisition. The allocation of the total purchase price of ZTEC net tangible and identifiable intangible assets was based on their estimated fair values as of the acquisition date. The excess of the purchase price over the identifiable intangible and net tangible assets in the amount of $12.5 million was allocated to goodwill, which is not deductible for tax purposes. | |||||||||
The following represents the allocation of the purchase price: | |||||||||
Purchase Price Allocation | |||||||||
(in thousands) | |||||||||
Goodwill | $ | 12,520 | |||||||
Intangible assets | 4,870 | ||||||||
Tangible assets acquired and liabilities assumed: | |||||||||
Cash | 79 | ||||||||
Other current assets | 1,612 | ||||||||
Non-current assets | 1,757 | ||||||||
Accounts payable and current liabilities | (1,811 | ) | |||||||
Long-term deferred tax liabilities | (1,719 | ) | |||||||
Total purchase price | $ | 17,308 | |||||||
Teradyne estimated the fair value of intangible assets using the income approach. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives. The following table lists these intangible assets and their estimated useful lives at the acquisition date: | |||||||||
Fair Value | Estimated Useful | ||||||||
Life | |||||||||
(in thousands) | (in years) | ||||||||
Developed technology | $ | 3,500 | 5 | ||||||
Customer relationships | 1,370 | 6 | |||||||
Total intangible assets | $ | 4,870 | 5.3 | ||||||
For the period from October 25, 2013 to December 31, 2013, ZTEC contributed $0.4 million of revenues and had a $(0.8) million loss from operations before income taxes. | |||||||||
The following unaudited pro forma information gives effect to the acquisition of ZTEC as if the acquisition occurred on January 1, 2012. The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented: | |||||||||
For the Year Ended | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands, except | |||||||||
per share amounts) | |||||||||
Revenues | $ | 1,431,270 | $ | 1,660,758 | |||||
Net income | $ | 163,394 | $ | 215,654 | |||||
Income per common share: | |||||||||
Basic | $ | 0.86 | $ | 1.15 | |||||
Diluted | $ | 0.69 | $ | 0.94 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment | E. PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment consist of the following: | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Land | $ | 16,561 | $ | 16,561 | |||||
Buildings | 108,671 | 107,632 | |||||||
Machinery and equipment | 659,743 | 600,848 | |||||||
Furniture and fixtures, and software | 77,566 | 81,994 | |||||||
Leasehold improvements | 31,981 | 30,757 | |||||||
Construction in progress | 2,508 | 622 | |||||||
897,030 | 838,414 | ||||||||
Less: accumulated depreciation | 567,992 | 563,178 | |||||||
$ | 329,038 | $ | 275,236 | ||||||
Depreciation of property, plant and equipment for the years ended December 31, 2014, 2013 and 2012 was $73.4 million, $57.3 million and $55.0 million, respectively. As of December 31, 2014, $66.9 million of gross book value included in machinery and equipment was for internally manufactured test systems being leased by customers. As of December 31, 2014, the accumulated depreciation on these test systems was $10.1 million. As of December 31, 2014, minimum non-cancelable future lease payments for the year ending December 31, 2015, total approximately $13.9 million, in the aggregate. There are no payments due beyond 2015. |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Financial Instruments | F. FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||
Cash Equivalents | |||||||||||||||||||||||||
Teradyne considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents. | |||||||||||||||||||||||||
Marketable Securities | |||||||||||||||||||||||||
Teradyne’s available-for-sale fixed income securities are classified as Level 2. Contingent consideration is classified as Level 3. The vast 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 2014, 2013 and 2012. Realized gains recorded in 2014, 2013 and 2012 were $2.4 million, $1.0 million and $1.4 million, respectively. Realized gains are included in interest income. Unrealized gains and losses are included in accumulated other comprehensive income (loss). The cost of securities sold is based on the specific identification method. | |||||||||||||||||||||||||
During the years ended December 31, 2014 and 2013, 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 December 31, 2014 and 2013. | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
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 | $ | 111,471 | $ | — | $ | — | $ | 111,471 | |||||||||||||||||
Cash equivalents | 160,218 | 22,567 | — | 182,785 | |||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||
U.S. Treasury securities | — | 402,154 | — | 402,154 | |||||||||||||||||||||
U.S. government agency securities | — | 258,502 | — | 258,502 | |||||||||||||||||||||
Corporate debt securities | — | 141,467 | — | 141,467 | |||||||||||||||||||||
Commercial paper | — | 140,638 | — | 140,638 | |||||||||||||||||||||
Certificates of deposit and time deposits | — | 49,036 | — | 49,036 | |||||||||||||||||||||
Equity and debt mutual funds | 12,333 | — | — | 12,333 | |||||||||||||||||||||
Non-U.S. government securities | — | 446 | — | 446 | |||||||||||||||||||||
Total | $ | 284,022 | $ | 1,014,810 | $ | — | $ | 1,298,832 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 3,350 | $ | 3,350 | |||||||||||||||||
Derivatives | — | 149 | — | 149 | |||||||||||||||||||||
Total | $ | — | $ | 149 | $ | 3,350 | $ | 3,499 | |||||||||||||||||
Reported as follows: | |||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 271,689 | $ | 22,567 | $ | — | $ | 294,256 | |||||||||||||||||
Marketable securities | — | 533,787 | — | 533,787 | |||||||||||||||||||||
Long-term marketable securities | 12,333 | 458,456 | — | 470,789 | |||||||||||||||||||||
$ | 284,022 | $ | 1,014,810 | $ | — | $ | 1,298,832 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other current liabilities | $ | — | $ | 149 | $ | 1,750 | $ | 1,899 | |||||||||||||||||
Long-term other accrued liabilities | — | — | 1,600 | 1,600 | |||||||||||||||||||||
$ | — | $ | 149 | $ | 3,350 | 3,499 | |||||||||||||||||||
December 31, 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 | $ | 117,242 | $ | — | $ | — | $ | 117,242 | |||||||||||||||||
Cash equivalents | 165,865 | 58,531 | — | 224,396 | |||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||
U.S. Treasury securities | — | 467,895 | — | 467,895 | |||||||||||||||||||||
U.S. government agency securities | — | 202,588 | — | 202,588 | |||||||||||||||||||||
Commercial paper | — | 105,598 | — | 105,598 | |||||||||||||||||||||
Corporate debt securities | — | 65,387 | — | 65,387 | |||||||||||||||||||||
Equity and debt mutual funds | 13,156 | — | — | 13,156 | |||||||||||||||||||||
Certificates of deposit and time deposits | — | 3,258 | — | 3,258 | |||||||||||||||||||||
Non-U.S. government securities | — | 78 | — | 78 | |||||||||||||||||||||
Total | 296,263 | 903,335 | — | 1,199,598 | |||||||||||||||||||||
Derivatives | — | 153 | — | 153 | |||||||||||||||||||||
Total | $ | 296,263 | $ | 903,488 | $ | — | $ | 1,199,751 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 2,230 | $ | 2,230 | |||||||||||||||||
Total | $ | — | $ | — | $ | 2,230 | $ | 2,230 | |||||||||||||||||
Reported as follows: | |||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 283,107 | $ | 58,531 | $ | — | $ | 341,638 | |||||||||||||||||
Marketable securities | — | 586,882 | — | 586,882 | |||||||||||||||||||||
Long-term marketable securities | 13,156 | 257,922 | — | 271,078 | |||||||||||||||||||||
Other current assets | — | 153 | — | 153 | |||||||||||||||||||||
$ | 296,263 | $ | 903,488 | $ | — | $ | 1,199,751 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Long-term other accrued liabilities | $ | — | $ | — | $ | 2,230 | $ | 2,230 | |||||||||||||||||
$ | — | $ | — | $ | 2,230 | $ | 2,230 | ||||||||||||||||||
Changes in the fair value of Level 3 contingent consideration for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
Contingent Consideration | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 388 | |||||||||||||||||||||||
Acquisition of ZTEC | 2,230 | ||||||||||||||||||||||||
Payments | (388 | ) | |||||||||||||||||||||||
Balance at December 31, 2013 | 2,230 | ||||||||||||||||||||||||
Fair value adjustment | (630 | ) | |||||||||||||||||||||||
Acquisition of AIT | 1,750 | ||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 3,350 | |||||||||||||||||||||||
The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instrument: | |||||||||||||||||||||||||
Liability | December 31, | Valuation | Unobservable Inputs | Weighted | |||||||||||||||||||||
2014 | Technique | Average | |||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Contingent consideration | $1,600 | Income approach- | Revenue earn-out-probability for calendar year 2015 revenue. | 0% | |||||||||||||||||||||
(ZTEC) | discounted cash | ||||||||||||||||||||||||
flow | Customer orders-probability of achievement during earn out period (acquisition date through December 31, 2015) | 40% | |||||||||||||||||||||||
Discount rate for revenue earn-out | N/A | ||||||||||||||||||||||||
Discount rate for customer orders | 5.20% | ||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of contingent consideration are the probabilities of successful achievement of calendar year 2015 revenue, customer orders, and a discount rate. Increases or decreases in the revenue and customer order probabilities and the period in which results will be achieved would result in a higher or lower fair value measurement. | |||||||||||||||||||||||||
The carrying amounts and fair values of financial instruments at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 294,256 | $ | 294,256 | $ | 341,638 | $ | 341,638 | |||||||||||||||||
Marketable securities | 1,004,576 | 1,004,576 | 857,960 | 857,960 | |||||||||||||||||||||
Convertible debt (1) | — | — | 185,708 | 611,433 | |||||||||||||||||||||
Japan loan | — | — | 955 | 955 | |||||||||||||||||||||
-1 | The carrying value represented the bifurcated debt component only, while the fair value was based on quoted market prices for the convertible note which included the equity conversion feature. | ||||||||||||||||||||||||
The fair values of 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 December 31, 2014 and 2013: | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available-for-Sale | Fair Market | ||||||||||||||||||||||||
Value of Investments | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | with Unrealized Losses | |||||||||||||||||||||
Gain | (Loss) | Value | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 402,197 | $ | 362 | $ | (405 | ) | $ | 402,154 | $ | 317,771 | ||||||||||||||
U.S. government agency securities | 258,452 | 135 | (85 | ) | 258,502 | 104,642 | |||||||||||||||||||
Corporate debt securities | 139,374 | 2,414 | (321 | ) | 141,467 | 96,998 | |||||||||||||||||||
Commercial paper | 140,616 | 26 | (4 | ) | 140,638 | 41,747 | |||||||||||||||||||
Certificates of deposit and time deposits | 49,048 | 11 | (23 | ) | 49,036 | 20,684 | |||||||||||||||||||
Equity and debt mutual funds | 10,492 | 1,870 | (29 | ) | 12,333 | 1,234 | |||||||||||||||||||
Non-U.S. government securities | 446 | — | — | 446 | — | ||||||||||||||||||||
$ | 1,000,625 | $ | 4,818 | $ | (867 | ) | $ | 1,004,576 | $ | 583,076 | |||||||||||||||
Reported as follows: | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Fair Market | |||||||||||||||||||||
Gain | (Loss) | Value | Value of Investments | ||||||||||||||||||||||
with Unrealized Losses | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Marketable securities | $ | 533,833 | $ | 99 | $ | (145 | ) | $ | 533,787 | $ | 240,234 | ||||||||||||||
Long-term marketable securities | 466,792 | 4,719 | (722 | ) | 470,789 | 342,842 | |||||||||||||||||||
$ | 1,000,625 | $ | 4,818 | $ | (867 | ) | $ | 1,004,576 | $ | 583,076 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Available-for-Sale | Fair Market | ||||||||||||||||||||||||
Value of Investments | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | with Unrealized Losses | |||||||||||||||||||||
Gain | (Loss) | Value | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 468,084 | $ | 94 | $ | (283 | ) | $ | 467,895 | $ | 108,212 | ||||||||||||||
U.S. government agency securities | 202,573 | 75 | (60 | ) | 202,588 | 84,498 | |||||||||||||||||||
Commercial paper | 105,583 | 16 | (1 | ) | 105,598 | 7,993 | |||||||||||||||||||
Corporate debt securities | 65,747 | 762 | (1,122 | ) | 65,387 | 40,355 | |||||||||||||||||||
Equity and debt mutual funds | 10,463 | 2,742 | (49 | ) | 13,156 | 702 | |||||||||||||||||||
Certificates of deposit and time deposits | 3,258 | — | — | 3,258 | — | ||||||||||||||||||||
Non-U.S. government securities | 78 | — | — | 78 | — | ||||||||||||||||||||
$ | 855,786 | $ | 3,689 | $ | (1,515 | ) | $ | 857,960 | $ | 241,760 | |||||||||||||||
Reported as follows: | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Fair Market | |||||||||||||||||||||
Gain | (Loss) | Value | Value of Investments | ||||||||||||||||||||||
with Unrealized Losses | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Marketable securities | $ | 586,818 | $ | 85 | $ | (21 | ) | $ | 586,882 | $ | 137,670 | ||||||||||||||
Long-term marketable securities | 268,968 | 3,604 | (1,494 | ) | 271,078 | 104,090 | |||||||||||||||||||
$ | 855,786 | $ | 3,689 | $ | (1,515 | ) | $ | 857,960 | $ | 241,760 | |||||||||||||||
As of December 31, 2014, the fair market value of investments with unrealized losses totaled $583.1 million. Of this value, $2.3 million had unrealized losses for greater than one year and $580.8 million had unrealized losses for less than one year. | |||||||||||||||||||||||||
As of December 31, 2013, the fair market value of investments with unrealized losses totaled $241.8 million. Of this value, $0.9 million had unrealized losses for greater than one year and $240.9 million had unrealized losses for less than one year. | |||||||||||||||||||||||||
Teradyne reviews its investments to identify and evaluate investments that have an indication of possible impairment. Based on this review, Teradyne determined that the unrealized losses related to these investments, at December 31, 2014 and 2013, were temporary. | |||||||||||||||||||||||||
The contractual maturities of investments held at December 31, 2014 were as follows: | |||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Due within one year | $ | 533,833 | $ | 533,787 | |||||||||||||||||||||
Due after 1 year through 5 years | 418,732 | 418,363 | |||||||||||||||||||||||
Due after 5 years through 10 years | 5,735 | 5,924 | |||||||||||||||||||||||
Due after 10 years | 31,833 | 34,169 | |||||||||||||||||||||||
Total | $ | 990,133 | $ | 992,243 | |||||||||||||||||||||
Contractual maturities of investments held at December 31, 2014, exclude equity and debt mutual funds as they do not have a contractual maturity date. | |||||||||||||||||||||||||
Assets of Teradyne measured at fair value on a non-recurring basis as of December 31, 2014 are summarized as follows: | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Period | |||||||||||||||||||||||||
December 31, | Quoted Prices | Significant | Significant | Total Losses | |||||||||||||||||||||
2014 | in Active | Other | Other | ||||||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||||||
Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Goodwill | $ | 273,438 | $ | — | $ | — | $ | 273,438 | $ | 98,897 | |||||||||||||||
Definite lived intangible assets | 158,237 | — | — | 158,237 | — | ||||||||||||||||||||
Long-lived assets held and used | 10,189 | — | 10,189 | — | — | ||||||||||||||||||||
$ | 441,864 | $ | — | $ | 10,189 | $ | 431,675 | $ | 98,897 | ||||||||||||||||
In accordance with the provisions of ASC 350-10, “Intangibles- Goodwill and Other,” goodwill with a carrying amount of $372.3 million was written down to its implied fair value of $273.4 million, resulting in an impairment charge of $98.9 million in the fourth quarter of 2014. See Note I: “Goodwill and Intangibles” regarding goodwill impairment. | |||||||||||||||||||||||||
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 monetary assets and liabilities. 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 value of the monetary assets and liabilities denominated in foreign currencies. | |||||||||||||||||||||||||
At December 31, 2014 and 2013, Teradyne had the following contracts to buy and sell non-U.S. currencies for U.S. dollars and other non-U.S. currencies with the following notional amounts: | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Buy | Sell | Net | Buy | Sell | Net | ||||||||||||||||||||
Position | Position | Total | Position | Position | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Japanese Yen | $ | — | $ | 19.7 | $ | 19.7 | $ | — | $ | 32.6 | $ | 32.6 | |||||||||||||
Taiwan Dollar | (0.9 | ) | 5.7 | 4.8 | — | 4 | 4 | ||||||||||||||||||
British Pound Sterling | — | 11.7 | 11.7 | — | 6.9 | 6.9 | |||||||||||||||||||
Korean Won | — | 4.4 | 4.4 | — | 5.8 | 5.8 | |||||||||||||||||||
Euro | (30.6 | ) | — | (30.6 | ) | (24.8 | ) | 0.7 | (24.1 | ) | |||||||||||||||
Total | $ | (31.5 | ) | $ | 41.5 | $ | 10 | $ | (24.8 | ) | $ | 50 | $ | 25.2 | |||||||||||
The fair value of the outstanding contracts was a loss of $0.1 million at December 31, 2014 and a gain of $0.2 million at December 31, 2013. | |||||||||||||||||||||||||
In 2014, Teradyne recorded net realized losses of $0.2 million related to foreign currency forward contracts hedging net monetary position. In 2013 and 2012, Teradyne recorded net realized gains of $5.9 million and $4.0 million, respectively, related to foreign currency forward contracts hedging net monetary positions. Gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. | |||||||||||||||||||||||||
The following table summarizes the fair value of derivative instruments as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
Balance Sheet Location | December 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign exchange contracts | Other current liabilities | $ | 149 | $ | — | ||||||||||||||||||||
Foreign exchange contracts | Other current assets | — | 153 | ||||||||||||||||||||||
Total derivatives | $ | 149 | $ | 153 | |||||||||||||||||||||
The following table summarizes the effect of derivative instruments in the statement of operations recognized for the years ended December 31, 2014, 2013 and 2012. The table does not reflect the corresponding losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. For the years ended December 31, 2014, 2013, and 2012, losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $0.9 million, $6.9 million, and $4.5 million, respectively. | |||||||||||||||||||||||||
Location of Losses (Gains) | December 31, | December 31, | December 31, | ||||||||||||||||||||||
Recognized in Statement | 2014 | 2013 | 2012 | ||||||||||||||||||||||
of Operations | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign exchange contracts | Other (income) expense, net | $ | 237 | $ | (5,933 | ) | $ | (3,974 | ) | ||||||||||||||||
Total derivatives | $ | 237 | $ | (5,933 | ) | $ | (3,974 | ) | |||||||||||||||||
See Note G: “Debt” regarding derivatives related to the convertible senior notes. | |||||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||||
Financial instruments which potentially subject Teradyne to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Teradyne’s cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Teradyne’s fixed income available-for-sale marketable securities have a minimum rating of AA by one or more of the major credit rating agencies. Teradyne places foreign currency forward contracts with high credit-quality financial institutions in order to minimize credit risk exposure. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of geographically dispersed customers. Teradyne performs ongoing credit evaluations of its customers’ financial condition and from time to time may require customers to provide a letter of credit from a bank to secure accounts receivable. | |||||||||||||||||||||||||
Equity Interest | |||||||||||||||||||||||||
On November 1, 2013, in connection with the acquisition of Empirix, Inc. by Thoma Bravo LLC, Teradyne sold its equity interest in Empirix, Inc., a private company, and received cash proceeds of $34.2 million which was recorded as other income. An additional $4.8 million of cash proceeds that was held in escrow for 15 months, for potential indemnifications to the buyer, was paid to Teradyne in February 2015 and it will be recorded as other income in the first quarter of 2015. |
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt | G. DEBT | ||||||||
At December 31, 2014 and 2013, debt consisted of the following: | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Convertible senior notes | $ | — | $ | 185,708 | |||||
Japan loan | — | 955 | |||||||
Total debt | — | 186,663 | |||||||
Current portion of long-term debt | — | 186,663 | |||||||
Long-term 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 was denominated in Japanese Yen). The loan had a term of 5 years and a fixed interest rate of 0.8%. Approximately $6.0 million of the loan was collateralized by a real estate mortgage on Teradyne K.K.’s building and land in Kumamoto, Japan and approximately $4.0 million was unsecured. Teradyne, Inc. had guaranteed payment of the loan obligation. The principal was amortized over the term of the loan with semi-annual principal payments of approximately $1 million payable on September 30 and March 30 each year. The final principal and interest payments were made in March 2014. | |||||||||
Convertible Senior Notes | |||||||||
On March 31, 2009, Teradyne entered into an underwriting agreement regarding a public offering of $175.0 million aggregate principal amount of 4.50% convertible senior notes due March 15, 2014 (the “Notes”). On April 1, 2009, the underwriters exercised their option to purchase an additional $15.0 million aggregate principal amount of the Notes for a total aggregate principal amount of $190.0 million. The Notes bore interest at a rate of 4.50% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2009. The Notes had a maturity date of March 15, 2014. Substantially all of the Notes were converted prior to March 15, 2014 and were “net share settled,” meaning that the holders received, for each $1,000 in principal amount of Notes, $1,000 in cash and approximately 131.95 shares of Teradyne common stock (calculated by taking 182.65 shares, being the fixed number specified in the Notes purchase agreement, less 50.7 shares). The 50.7 shares were determined, as specified in the Notes purchase agreement, by dividing the $1,000 principal amount by the $19.74 average trading price of Teradyne’s common stock over the 25 day trading period from February 5, 2014 to March 12, 2014. | |||||||||
Teradyne satisfied the Notes “net share settlement” by paying the aggregate principal amount of $190 million in cash and issuing 25.1 million shares of common stock. On March 13, 2014, Teradyne exercised its call option agreement entered into with Goldman, Sachs & Co. (the “hedge counterparty”) at the time of issuance of the Notes and received 25.1 million shares of Teradyne’s common stock, which Teradyne retired. | |||||||||
From June 17, 2014 to September 17, 2014, the hedge counterparty exercised its warrant agreement entered into with Teradyne at the time of issuance of the Notes. The warrants were net share settled. In 2014, Teradyne issued 21.2 million shares of its common stock for warrants exercised at a weighted average strike price of $7.6348 per share. | |||||||||
The below tables represent the key components of Teradyne’s convertible senior notes: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Debt principal | $ | — | $ | 189,998 | |||||
Unamortized discount | — | 4,290 | |||||||
Net carrying amount of the convertible debt | $ | — | $ | 185,708 | |||||
For the year ended | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Contractual interest expense on the coupon | $ | 1,757 | $ | 8,550 | |||||
Amortization of the discount component and debt issue fees recognized as interest expense | 4,493 | 16,628 | |||||||
Total interest expense on the convertible debt | $ | 6,250 | $ | 25,178 | |||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Accumulated Other Comprehensive Income | H. ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||
Changes in accumulated other comprehensive income, which is presented net of tax, consists of the following: | |||||||||||||||
Unrealized Gains on | Retirement Plans | Total | |||||||||||||
Marketable Securities | Prior Service Benefit | ||||||||||||||
(in thousands) | |||||||||||||||
Balance at December 31, 2012, net of tax of $835, $(125) | $ | 2,925 | $ | 2,895 | $ | 5,820 | |||||||||
Other comprehensive income before reclassifications, net of tax of $216 | (1,097 | ) | — | (1,097 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $(257), $(159) | (447 | ) | (276 | ) | (723 | ) | |||||||||
Net current period other comprehensive income, net of tax of $(41), $(159) | (1,544 | ) | (276 | ) | (1,820 | ) | |||||||||
Balance at December 31, 2013, net of tax of $794, $(284) | 1,381 | 2,619 | 4,000 | ||||||||||||
Other comprehensive income before reclassifications, net of tax of $1,449 | 2,417 | — | 2,417 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $(645), $(169) | (1,433 | ) | (295 | ) | (1,728 | ) | |||||||||
Net current period other comprehensive income, net of tax of $804, $(169) | 984 | (295 | ) | 689 | |||||||||||
Balance at December 31, 2014, net of tax of $1,598, $(453) | $ | 2,365 | $ | 2,324 | $ | 4,689 | |||||||||
Reclassifications out of accumulated other comprehensive income to the statement of operations for the years ended December 31, 2014, 2013 and 2012, were as follows: | |||||||||||||||
Details about Accumulated | For the year ended | Affected Line Item | |||||||||||||
Other Comprehensive Income | in the Statements | ||||||||||||||
Components | of Operations | ||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(in thousands) | |||||||||||||||
Available-for-sale marketable securities | |||||||||||||||
Unrealized gains, net of tax of $645, $257, $201 | $ | 1,433 | $ | 447 | $ | 702 | Interest income | ||||||||
$ | 1,433 | $ | 447 | $ | 702 | ||||||||||
Amortization of defined benefit pension and postretirement plans | |||||||||||||||
Prior service benefit, net of tax of $169, $159, $134 | $ | 295 | $ | 276 | $ | 233 | (a) | ||||||||
$ | 295 | $ | 276 | $ | 233 | ||||||||||
Total reclassifications, net of tax of $814, $416, $335 | $ | 1,728 | $ | 723 | $ | 935 | 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.” |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets | I. GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||
Goodwill | |||||||||||||||||
Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, “Intangibles—Goodwill and Other” on December 31 of each fiscal year unless interim indicators of impairment exist. Goodwill is considered to be impaired when the net book value of a reporting unit exceeds its estimated fair value. | |||||||||||||||||
Goodwill impairment is determined using a two-step process. The first step involves a comparison of the estimated fair value of a reporting unit to its carrying amount, including goodwill. In performing the first step, Teradyne determines the fair value of a reporting unit using a discounted cash flow (“DCF”) analysis. Determining fair value requires the exercise of significant judgment, including judgments about appropriate discount rates, perpetual growth rates, and the amount and timing of expected future cash flows. Discount rates are based on a weighted average cost of capital (“WACC”), which represents the average rate a business must pay its providers of debt and equity, plus a risk premium. The WACC used to test goodwill is derived from a group of comparable companies. The cash flows employed in the DCF analysis are derived from internal forecasts and external market forecasts. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. If the carrying amount of a reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed. The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with its carrying amount of goodwill to measure the amount of impairment loss, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, whereby the estimated fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. | |||||||||||||||||
As a result of decreased projected demand attributable to an estimated smaller future wireless test market due to reuse of wireless test equipment, price competition and different testing techniques, Teradyne determined that for its Wireless Test reporting unit, the carrying amount of its net assets exceeded its respective fair value, indicating that a potential impairment existed. After completing the second step of the goodwill impairment test, Teradyne recorded a $98.9 million goodwill impairment charge in the fourth quarter of 2014. | |||||||||||||||||
The fourth quarter 2014 goodwill impairment test of Teradyne’s Defense/Aerospace reporting unit, which is included in Teradyne’s System Test reportable segment, did not identify any goodwill impairment. | |||||||||||||||||
Teradyne performed step one of the two step impairment test for 2013 and 2012. No goodwill impairment was identified in 2013 and 2012. | |||||||||||||||||
The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||
Semiconductor | System | Wireless | Total | ||||||||||||||
Test | Test | Test | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance at December 31, 2012: | |||||||||||||||||
Goodwill | $ | 260,540 | $ | 148,183 | $ | 349,272 | $ | 757,995 | |||||||||
Accumulated impairment losses | (260,540 | ) | (148,183 | ) | — | (408,723 | ) | ||||||||||
— | — | 349,272 | 349,272 | ||||||||||||||
ZTEC acquisition | — | — | 12,520 | 12,520 | |||||||||||||
Balance at December 31, 2013: | |||||||||||||||||
Goodwill | 260,540 | 148,183 | 361,792 | 770,515 | |||||||||||||
Accumulated impairment losses | (260,540 | ) | (148,183 | ) | — | (408,723 | ) | ||||||||||
— | — | 361,792 | 361,792 | ||||||||||||||
ZTEC adjustment | — | — | 27 | 27 | |||||||||||||
AIT acquisition | — | 10,516 | — | 10,516 | |||||||||||||
Balance at December 31, 2014: | |||||||||||||||||
Goodwill | 260,540 | 158,699 | 361,819 | 781,058 | |||||||||||||
Accumulated impairment losses | (260,540 | ) | (148,183 | ) | (98,897 | ) | (507,620 | ) | |||||||||
$ | — | $ | 10,516 | $ | 262,922 | $ | 273,438 | ||||||||||
Intangible Assets | |||||||||||||||||
Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Useful Life | |||||||||||||||
(in thousands) | |||||||||||||||||
Developed technology | $ | 345,513 | $ | 224,059 | $ | 121,454 | 6.2 years | ||||||||||
Customer relationships | 146,635 | 93,998 | 52,637 | 7.7 years | |||||||||||||
Tradenames and trademarks | 30,414 | 14,205 | 16,209 | 9.0 years | |||||||||||||
Non-competes | 320 | 20 | 300 | 4.0 years | |||||||||||||
Customer backlog | 170 | 170 | — | 0.0 years | |||||||||||||
Total intangible assets | $ | 523,052 | $ | 332,452 | $ | 190,600 | 6.8 years | ||||||||||
December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Useful Life | |||||||||||||||
(in thousands) | |||||||||||||||||
Developed technology | $ | 342,933 | $ | 174,563 | $ | 168,370 | 6.2 years | ||||||||||
Customer relationships | 141,497 | 76,963 | 64,534 | 8.0 years | |||||||||||||
Tradenames and trademarks | 30,034 | 10,647 | 19,387 | 9.1 years | |||||||||||||
Customer backlog | 1,000 | 1,000 | — | 0.4 years | |||||||||||||
Total intangible assets | $ | 515,464 | $ | 263,173 | $ | 252,291 | 6.9 years | ||||||||||
During the year ended December 31, 2014, Teradyne recorded intangible assets in the amount of $9.1 million related to its AIT acquisition. | |||||||||||||||||
During the year ended December 31, 2013, Teradyne recorded intangible assets in the amount of $4.9 million related to its ZTEC acquisition. | |||||||||||||||||
Aggregate intangible assets amortization expense for the years ended December 31, 2014, 2013 and 2012 was $70.8 million, $72.4 million, and $73.5 million, respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: | |||||||||||||||||
Year | Amortization Expense | ||||||||||||||||
(in thousands) | |||||||||||||||||
2015 | $ | 55,231 | |||||||||||||||
2016 | 55,231 | ||||||||||||||||
2017 | 49,046 | ||||||||||||||||
2018 | 24,405 | ||||||||||||||||
2019 | 4,889 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | J. COMMITMENTS AND CONTINGENCIES | ||||
Purchase Commitments | |||||
As of December 31, 2014, Teradyne had entered into non-cancelable purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $151.5 million. | |||||
Commitments | |||||
Teradyne leases certain of its office buildings and other facilities under various operating lease arrangements that include renewal options and escalation clauses for adjusting rent payments to reflect changes in price indices. Rental expense for leases with fixed escalation clauses is recognized on a straight line basis over the lease term. | |||||
Rental expense for the years ended December 31, 2014, 2013 and 2012 was $16.0 million, $16.5 million and $15.5 million, respectively. | |||||
The following table reflects Teradyne’s non-cancelable operating lease commitments: | |||||
Non-cancelable | |||||
Lease | |||||
Commitments | |||||
(in thousands) | |||||
2015 | $ | 13,521 | |||
2016 | 11,776 | ||||
2017 | 6,842 | ||||
2018 | 4,535 | ||||
2019 | 4,103 | ||||
Beyond 2019 | 13,214 | ||||
Total | $ | 53,991 | |||
Legal Claims | |||||
Teradyne is subject to legal proceedings, claims and investigations that arise in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. | |||||
Guarantees and Indemnification Obligations | |||||
Teradyne provides indemnification, to the extent permitted by law, to its officers, directors, employees and agents for liabilities arising from certain events or occurrences while the officer, director, employee, or agent, is or was serving, at Teradyne’s request in such capacity. Teradyne has entered into indemnification agreements with certain of its officers and directors. With respect to acquisitions, Teradyne provides indemnifications to or assumes indemnification obligations for the current and former directors, officers and employees of the acquired companies in accordance with the acquired companies’ by-laws and charter. As a matter of practice, Teradyne has maintained directors’ and officers’ liability insurance coverage including coverage for directors and officers of acquired companies. | |||||
Teradyne enters into agreements in the ordinary course of business with customers, resellers, distributors, integrators and suppliers. Most of these agreements require Teradyne to defend and/or indemnify the other party against intellectual property infringement claims brought by a third party with respect to Teradyne’s products. From time to time, Teradyne also indemnifies customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, breach of confidentiality obligations and environmental claims relating to the use of Teradyne’s products and services or resulting from the acts or omissions of Teradyne, its employees, authorized agents or subcontractors. On occasion, Teradyne has also provided guarantees to customers regarding the delivery and performance of its products in addition to the warranty described below. | |||||
As a matter of ordinary business course, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a one year duration commencing from installation. A provision is recorded upon revenue recognition to cost of revenue for estimated warranty expense based upon historical experience. When Teradyne receives revenue for extended warranties beyond the standard duration, it is deferred and recognized on a straight line basis over the contract period. Related costs are expensed as incurred. As of December 31, 2014 and 2013, Teradyne had a product warranty accrual of $8.9 million and $6.7 million, respectively, included in other accrued liabilities, and revenue deferrals related to extended warranties of $43.3 million and $34.9 million, respectively, included in short and long-term deferred revenue and customer advances. | |||||
In addition, and in the ordinary course of business, Teradyne provides minimum purchase guarantees to certain vendors to ensure continuity of supply against the market demand. Although some of these guarantees provide penalties for cancellations and/or modifications to the purchase commitments as the market demand decreases, most of the guarantees do not. Therefore, as the market demand decreases, Teradyne re-evaluates these guarantees and determines what charges, if any, should be recorded. | |||||
With respect to its agreements covering product, business or entity divestitures and acquisitions, Teradyne provides certain representations, warranties and covenants to purchasers and agrees to indemnify and hold such purchasers harmless against breaches of such representations, warranties and covenants. Many of the indemnification claims have a definite expiration date while some remain in force indefinitely. With respect to its acquisitions, Teradyne may, from time to time, assume the liability for certain events or occurrences that took place prior to the date of acquisition. | |||||
As a matter of ordinary course of business, Teradyne occasionally guarantees certain indebtedness obligations of its subsidiary companies, limited to the borrowings from financial institutions, purchase commitments to certain vendors, and lease commitments to landlords. | |||||
Based on historical experience and information known as of December 31, 2014 and 2013, except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial. |
Net_Income_per_Common_Share
Net Income per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 from operations: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Net income for basic and diluted net income per share | $ | 81,272 | $ | 164,947 | $ | 217,049 | |||||||
Weighted average common shares-basic | 202,908 | 190,772 | 186,878 | ||||||||||
Effect of dilutive potential common shares: | |||||||||||||
Incremental shares from assumed conversion of convertible notes (1) | 5,013 | 23,341 | 22,367 | ||||||||||
Convertible note hedge warrant shares (2) | 12,562 | 18,795 | 17,433 | ||||||||||
Restricted stock units | 1,092 | 1,127 | 2,291 | ||||||||||
Stock options | 944 | 1,528 | 1,213 | ||||||||||
Employee stock purchase rights | 31 | 36 | 64 | ||||||||||
Dilutive potential common shares | 19,642 | 44,827 | 43,368 | ||||||||||
Weighted average common shares-diluted | 222,550 | 235,599 | 230,246 | ||||||||||
Net income per common share-basic | $ | 0.4 | $ | 0.86 | $ | 1.16 | |||||||
Net income per common share-diluted | $ | 0.37 | $ | 0.7 | $ | 0.94 | |||||||
-1 | Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. | ||||||||||||
-2 | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. Teradyne’s call option on its common stock (convertible note hedge transaction) was excluded from the calculation of diluted shares because the effect was anti-dilutive. See Note G: “Debt” regarding the convertible note hedge transaction. | ||||||||||||
The computation of diluted net income per common share for 2014 excludes the effect of the potential exercise of stock options to purchase approximately 0.3 million shares because the effect would have been anti-dilutive. | |||||||||||||
The computation of diluted net income per common share for 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 2012 excludes the effect of the potential exercise of stock options to purchase approximately 0.3 million shares and restricted stock units to purchase approximately 0.3 million shares because the effect would have been anti-dilutive. |
Restructuring_and_Other
Restructuring and Other | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Other | L. RESTRUCTURING AND OTHER | ||||||||||||
Restructuring | |||||||||||||
During the year ended December 31, 2014, Teradyne recorded $0.5 million of charges related to headcount reductions of 8 people in Semiconductor Test, $0.5 million of charges related to headcount reductions of 28 people in Wireless Test, $0.4 million of charges related to headcount reductions of 4 people in System Test, and $0.2 million charges related to headcount reduction of 3 people in Corporate. | |||||||||||||
During the year ended December 31, 2013, Teradyne recorded $1.9 million of severance charges related to headcount reductions of 48 people primarily in System Test and Semiconductor Test and a $(0.4) million credit in Corporate related to a change in the estimated exit costs related to a leased facility. | |||||||||||||
During the year ended December 31, 2012, Teradyne recorded $1.0 million of severance charges related to headcount reductions of 19 people primarily in System Test and Semiconductor Test. | |||||||||||||
The remaining accrual for severance of $0.4 million, as of December 31, 2014, is reflected in the accrued employees’ compensation and withholdings on the balance sheet and is expected to be paid by June 2015. | |||||||||||||
Severance | Facility | Total | |||||||||||
and | Exit | ||||||||||||
Benefits | Costs | ||||||||||||
(in thousands) | |||||||||||||
Pre-2012 Activities | |||||||||||||
Balance at December 31, 2012 | — | 1,084 | 1,084 | ||||||||||
Change in estimate | — | (553 | ) | (553 | ) | ||||||||
Cash payments | — | (531 | ) | (531 | ) | ||||||||
Balance at December 31, 2013 | $ | — | $ | — | $ | — | |||||||
2012 Activities | |||||||||||||
Q2 2012 Activities: | |||||||||||||
Provision | $ | 286 | $ | — | $ | 286 | |||||||
Change in estimate | (4 | ) | — | (4 | ) | ||||||||
Cash payments | (282 | ) | — | (282 | ) | ||||||||
Balance at December 31, 2012 | $ | — | $ | — | $ | — | |||||||
Q3 2012 Activity: | |||||||||||||
Provision | $ | 687 | $ | — | $ | 687 | |||||||
Cash payments | (444 | ) | — | (444 | ) | ||||||||
Balance at December 31, 2012 | 243 | — | 243 | ||||||||||
Cash payments | (243 | ) | — | (243 | ) | ||||||||
Balance at December 31, 2013 | $ | — | $ | — | $ | — | |||||||
2013 Activities | |||||||||||||
Q3 2013 Activity: | |||||||||||||
Provision | $ | 1,337 | $ | — | $ | 1,337 | |||||||
Cash payments | (966 | ) | — | (966 | ) | ||||||||
Balance at December 31, 2013 | $ | 371 | $ | — | $ | 371 | |||||||
Cash payments | (371 | ) | — | (371 | ) | ||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||
Q4 2013 Activity: | |||||||||||||
Provision | $ | 600 | $ | — | $ | 600 | |||||||
Cash payments | (486 | ) | — | (486 | ) | ||||||||
Balance at December 31, 2013 | $ | 114 | $ | — | $ | 114 | |||||||
Cash payments | (114 | ) | — | (114 | ) | ||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||
2014 Activities | |||||||||||||
Q2 2014 Activity: | |||||||||||||
Provision | $ | 572 | $ | — | $ | 572 | |||||||
Cash payments | (572 | ) | — | (572 | ) | ||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||
Q3 2014 Activity: | |||||||||||||
Provision | $ | 225 | $ | — | $ | 225 | |||||||
Cash payments | (225 | ) | — | (225 | ) | ||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||
Q4 2014 Activity: | |||||||||||||
Provision | $ | 826 | $ | — | $ | 826 | |||||||
Cash payments | (432 | ) | — | (432 | ) | ||||||||
Balance at December 31, 2014 | $ | 394 | $ | — | $ | 394 | |||||||
Balance at December 31, 2014 | $ | 394 | $ | — | $ | 394 | |||||||
Other | |||||||||||||
During the year ended December 31, 2014, Teradyne recorded a $0.6 million fair value adjustment to decrease the ZTEC acquisition contingent consideration, partially offset by $0.4 million of acquisition costs related to AIT. | |||||||||||||
During the year ended December 31, 2012, due to a decrease in specified new product revenue through the December 31, 2012 earn-out period end date, Teradyne recorded an $8.8 million fair value adjustment to decrease the LitePoint acquisition contingent consideration. |
Retirement_Plans
Retirement Plans | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Retirement Plans | M. RETIREMENT PLANS | ||||||||||||||||||||||||||||||||
ASC 715, “Compensation—Retirement Benefits” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715. The pension asset or liability represents a difference between the fair value of the pension plan’s assets and the projected benefit obligation at December 31. Teradyne uses a December 31 measurement date for all of its 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 the 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 (the “IRC”), as well as unfunded qualified foreign plans. | |||||||||||||||||||||||||||||||||
The December 31 balances of these defined benefit pension plans assets and obligations are shown below: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Assets and Obligations | |||||||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||||||
Projected benefit obligation: | |||||||||||||||||||||||||||||||||
Beginning of year | $ | 293,912 | $ | 52,182 | $ | 325,118 | $ | 51,380 | |||||||||||||||||||||||||
Service cost | 2,218 | 897 | 2,393 | 1,034 | |||||||||||||||||||||||||||||
Interest cost | 12,875 | 1,837 | 11,318 | 1,948 | |||||||||||||||||||||||||||||
Actuarial loss (gain) | 72,596 | 8,975 | (31,259 | ) | (1,020 | ) | |||||||||||||||||||||||||||
Benefits paid | (13,982 | ) | (1,265 | ) | (13,658 | ) | (2,511 | ) | |||||||||||||||||||||||||
Plan participants’ contributions | — | 88 | — | 95 | |||||||||||||||||||||||||||||
Non-U.S. currency movement | — | (4,504 | ) | — | 1,256 | ||||||||||||||||||||||||||||
End of year | 367,619 | 58,210 | 293,912 | 52,182 | |||||||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||
Fair value of plan assets: | |||||||||||||||||||||||||||||||||
Beginning of year | 256,373 | 25,756 | 278,856 | 24,043 | |||||||||||||||||||||||||||||
Company contributions | 31,753 | 1,168 | 1,738 | 2,522 | |||||||||||||||||||||||||||||
Plan participants’ contributions | — | 88 | — | 95 | |||||||||||||||||||||||||||||
Actual return on plan assets | 41,928 | 5,192 | (10,563 | ) | 1,190 | ||||||||||||||||||||||||||||
Benefits paid | (13,982 | ) | (1,265 | ) | (13,658 | ) | (2,511 | ) | |||||||||||||||||||||||||
Non-U.S. currency movement | — | (1,428 | ) | — | 417 | ||||||||||||||||||||||||||||
End of year | 316,072 | 29,511 | 256,373 | 25,756 | |||||||||||||||||||||||||||||
Funded status | $ | (51,547 | ) | $ | (28,699 | ) | $ | (37,539 | ) | $ | (26,426 | ) | |||||||||||||||||||||
The following table provides amounts recorded within the account line items of the statement of financial position as of December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United | Foreign | United | Foreign | ||||||||||||||||||||||||||||||
States | States | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Retirement plans assets | $ | 3,090 | $ | 9,806 | $ | 4,259 | $ | 5,083 | |||||||||||||||||||||||||
Accrued employees’ compensation and withholdings | (2,492 | ) | (906 | ) | (1,781 | ) | (1,143 | ) | |||||||||||||||||||||||||
Retirement plans liabilities | (52,145 | ) | (37,599 | ) | (40,017 | ) | (30,366 | ) | |||||||||||||||||||||||||
Funded status | $ | (51,547 | ) | $ | (28,699 | ) | $ | (37,539 | ) | $ | (26,426 | ) | |||||||||||||||||||||
The following table provides amounts recognized in accumulated other comprehensive income as of December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Prior service cost, before tax | $ | 358 | $ | — | $ | 493 | $ | — | |||||||||||||||||||||||||
Deferred taxes | 429 | — | 380 | — | |||||||||||||||||||||||||||||
Total recognized in other comprehensive income, net of tax | $ | 787 | $ | — | $ | 873 | $ | — | |||||||||||||||||||||||||
The estimated portion of prior service cost remaining in accumulated other comprehensive income that is expected to be recognized as a component of net periodic pension cost in 2015 is $0.1 million. | |||||||||||||||||||||||||||||||||
The accumulated benefit obligation for the United States defined benefit pension plans was $357.0 million and $286.2 million at December 31, 2014 and 2013, respectively. The accumulated benefit obligation for foreign defined benefit pension plans was $49.8 million and $45.0 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 54.6 | $ | 39.5 | $ | 41.8 | $ | 32.4 | |||||||||||||||||||||||||
Accumulated benefit obligation | 48.5 | 32.7 | 37.9 | 27.5 | |||||||||||||||||||||||||||||
Fair value of plan assets | — | 1 | — | 0.9 | |||||||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, Teradyne’s net periodic pension cost (income) was comprised of the following: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
United | Foreign | United | Foreign | United | Foreign | ||||||||||||||||||||||||||||
States | States | States | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Components of Net Periodic Pension Cost (Income): | |||||||||||||||||||||||||||||||||
Service cost | $ | 2,218 | $ | 897 | $ | 2,393 | $ | 1,034 | $ | 2,102 | $ | 686 | |||||||||||||||||||||
Interest cost | 12,875 | 1,837 | 11,318 | 1,948 | 13,713 | 1,956 | |||||||||||||||||||||||||||
Expected return on plan assets | (12,500 | ) | (868 | ) | (13,632 | ) | (959 | ) | (15,248 | ) | (698 | ) | |||||||||||||||||||||
Amortization of prior service cost | 135 | — | 164 | — | 232 | — | |||||||||||||||||||||||||||
Net actuarial loss (gain) | 43,168 | 4,651 | (7,063 | ) | (1,252 | ) | 15,458 | 7,779 | |||||||||||||||||||||||||
Total net periodic pension cost (income) | $ | 45,896 | $ | 6,517 | $ | (6,820 | ) | $ | 771 | $ | 16,257 | $ | 9,723 | ||||||||||||||||||||
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||||||||||||||||||||||||||||||||
Reversal of amortization items: | |||||||||||||||||||||||||||||||||
Prior service cost | (135 | ) | — | (164 | ) | — | (232 | ) | — | ||||||||||||||||||||||||
Total recognized in other comprehensive income | (135 | ) | — | (164 | ) | — | (232 | ) | — | ||||||||||||||||||||||||
Total recognized in net periodic pension cost (income) and other comprehensive income | $ | 45,761 | $ | 6,517 | $ | (6,984 | ) | $ | 771 | $ | 16,025 | $ | 9,723 | ||||||||||||||||||||
Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||
Discount rate | 4.5 | % | 3.8 | % | 3.6 | % | 3.7 | % | 4.2 | % | 4.9 | % | |||||||||||||||||||||
Expected return on plan assets | 5 | 3.4 | 5 | 3.7 | 5 | 3.1 | |||||||||||||||||||||||||||
Salary progression rate | 3 | 3.5 | 3 | 3.5 | 3 | 3.4 | |||||||||||||||||||||||||||
Weighted Average Assumptions to Determine Pension Obligations at December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
Discount rate | 3.7 | % | 2.6 | % | 4.5 | % | 3.8 | % | |||||||||||||||||||||||||
Salary progression rate | 2.9 | 3.2 | 3 | 3.5 | |||||||||||||||||||||||||||||
In developing the expected return on plan assets assumption, Teradyne evaluates input from its investment manager and pension consultants, including their review of asset class return expectations. Based on this review, Teradyne believes that 5.0% was an appropriate rate to use for fiscal 2014 for the U.S. Qualified Pension Plan (“U.S. Plan”). | |||||||||||||||||||||||||||||||||
Effective January 1, 2012, Teradyne elected to immediately recognize net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. In addition, Teradyne used to calculate the expected return on plan assets using a calculated market-related value of plan assets. Effective January 1, 2012, Teradyne elected to calculate the expected return on plan assets using the fair value of the plan assets. | |||||||||||||||||||||||||||||||||
The discount rate utilized to determine future pension obligations for the U.S. Plan is based on Citigroup Pension Index adjusted for the plan’s expected cash flows and was 3.7% at December 31, 2014, down from 4.5% at December 31, 2013. | |||||||||||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||||||||||
As of December 31, 2014, the fair value of Teradyne’s pension plans’ assets totaled $345.6 million of which $316.1 million was related to the U.S. Plan, $28.5 million was related to the U.K. defined benefit pension plan, and $1.0 million was related to the Taiwan defined benefit pension plan. Substantially all Teradyne’s pension plans’ assets are held in individual trusts, which were established for the investment of assets of Teradyne’s sponsored retirement plans. | |||||||||||||||||||||||||||||||||
Teradyne’s weighted average pension asset allocation at December 31, 2014 and 2013, by asset category is as follows: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
Fixed Income Securities | 83.3 | % | 78.2 | % | 86.7 | % | 77.1 | % | |||||||||||||||||||||||||
Equity Securities | 15.4 | 20.7 | 12.1 | 21.6 | |||||||||||||||||||||||||||||
Other | 1.3 | 1.1 | 1.2 | 1.3 | |||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||
The assets of the U.S. Plan are overseen by the Teradyne Fiduciary Committee which is comprised of members of senior management drawn from appropriate diversified levels of the management team. The Fiduciary Committee is responsible for setting the policy that provides the framework for management of the U.S. Plan assets. In accordance with its responsibilities, the Fiduciary Committee meets on a regular basis to review the performance of the U.S. Plan assets and compliance with the investment policy. The policy sets forth an investment structure for managing U.S. Plan assets, including setting the asset allocation ranges, which are expected to provide an appropriate level of overall diversification required to maximize the long-term return on plan assets for a prudent and reasonable level of risk given prevailing market conditions, total investment return over the long term, and preservation of capital, while maintaining sufficient liquidity to pay the benefits of the U.S. Plan. The investment portfolio will not, at any time, have a direct investment in Teradyne stock. It may have indirect investment in Teradyne stock, if one of the funds selected by the investment manager invests in Teradyne stock. In developing the asset allocation ranges, third party asset allocation studies are periodically performed that consider the current and expected positions of the plan assets and funded status. Based on this study and other appropriate information, the Fiduciary Committee establishes asset allocation ranges taking into account acceptable risk targets and associated returns. The investment return objectives are to avoid excessive volatility and produce a rate of return that at least matches the Policy Index identified below. The manager’s investment performance is reviewed at least annually. Results for the total portfolio and for each major category of assets are evaluated in comparison with appropriate market indices and the Policy Index. | |||||||||||||||||||||||||||||||||
The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows: | |||||||||||||||||||||||||||||||||
Asset Category: | Policy Index: | Target | |||||||||||||||||||||||||||||||
Allocation | |||||||||||||||||||||||||||||||||
Passive and Active Fixed Income | Barclays U.S. Long Government/Credit Bond Index | 85 | % | ||||||||||||||||||||||||||||||
Equity (Large cap) | S&P 500 Stock Index | 10 | |||||||||||||||||||||||||||||||
International Equity | MSCI EAFE Index | 5 | |||||||||||||||||||||||||||||||
Teradyne’s U.S. Plan invests primarily in common trust funds and fixed income securities. Units held in the common trust funds are valued at the unit price as reported by the investment managers based on the asset value of the underlying investments; underlying investments in equity securities are valued at the last reported sales price, and underlying investments in fixed-income securities are generally valued using methods based upon market transactions for comparable securities. | |||||||||||||||||||||||||||||||||
The assets of Teradyne’s foreign pension plans are invested in funds which seek to combine long-term growth potential offered through equity exposure with the relative security provided by bonds, and are governed locally by local management in accordance with specific jurisdictional requirements. Investments in the non-U.S. plans consist primarily of fixed-income and equity securities. The target asset allocation for the U.K. defined benefit pension plan, per the investment policy, is 80% fixed-income securities and 20% equity securities. | |||||||||||||||||||||||||||||||||
During the years ended December 31, 2014 and 2013, there were no transfers of pension assets in or out of Level 1, Level 2 or Level 3. | |||||||||||||||||||||||||||||||||
The fair value of pension plan assets by asset category and by level at December 31, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
United States | Foreign | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 193,741 | $ | — | $ | 193,741 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
U.S. government securities | — | 65,830 | — | 65,830 | — | — | — | — | |||||||||||||||||||||||||
U.K. government securities | — | — | — | — | — | 22,811 | — | 22,811 | |||||||||||||||||||||||||
Asset backed securities | — | 3,747 | — | 3,747 | — | — | — | — | |||||||||||||||||||||||||
U.S. equity (large cap) | — | 33,970 | — | 33,970 | — | — | — | — | |||||||||||||||||||||||||
International equity | — | 14,631 | — | 14,631 | — | 5,610 | — | 5,610 | |||||||||||||||||||||||||
Guarantee annuity contract | — | 2,990 | — | 2,990 | — | — | — | — | |||||||||||||||||||||||||
Other | — | 65 | — | 65 | — | 957 | — | 957 | |||||||||||||||||||||||||
Cash and cash equivalents | 1,098 | — | — | 1,098 | 133 | — | — | 133 | |||||||||||||||||||||||||
Total | $ | 1,098 | $ | 314,974 | $ | — | $ | 316,072 | $ | 133 | $ | 29,378 | $ | — | $ | 29,511 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
United States | Foreign | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 156,860 | $ | — | $ | 156,860 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
U.S. government securities | — | 62,555 | — | 62,555 | — | — | — | — | |||||||||||||||||||||||||
U.K. government securities | — | — | — | — | — | 19,610 | — | 19,610 | |||||||||||||||||||||||||
Asset backed securities | — | 2,919 | — | 2,919 | — | — | — | — | |||||||||||||||||||||||||
U.S. equity (large cap) | — | 21,309 | — | 21,309 | — | — | — | — | |||||||||||||||||||||||||
International equity | — | 9,599 | — | 9,599 | — | 5,204 | — | 5,204 | |||||||||||||||||||||||||
Guarantee annuity contract | — | 2,985 | — | 2,985 | — | — | — | — | |||||||||||||||||||||||||
Other | — | — | — | — | — | 906 | — | 906 | |||||||||||||||||||||||||
Cash and cash equivalents | 146 | — | — | 146 | — | 36 | — | 36 | |||||||||||||||||||||||||
Total | $ | 146 | $ | 256,227 | $ | — | $ | 256,373 | $ | — | $ | 25,756 | $ | — | $ | 25,756 | |||||||||||||||||
Contributions | |||||||||||||||||||||||||||||||||
Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. During 2014, Teradyne contributed $30.0 million to the U.S Plan, $1.8 million to the U.S. supplemental executive defined benefit pension plan and $1.2 million to certain qualified plans for non-U.S. subsidiaries. During 2013, Teradyne contributed $1.7 million to the U.S. supplemental executive defined benefit pension plan and $2.5 million to certain qualified plans for non-U.S. subsidiaries. | |||||||||||||||||||||||||||||||||
Expected Future Pension Benefit Payments | |||||||||||||||||||||||||||||||||
Future benefit payments are expected to be paid as follows: | |||||||||||||||||||||||||||||||||
United States | Foreign | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
2015 | $ | 24,407 | $ | 1,018 | |||||||||||||||||||||||||||||
2016 | 23,399 | 862 | |||||||||||||||||||||||||||||||
2017 | 23,129 | 1,069 | |||||||||||||||||||||||||||||||
2018 | 22,455 | 1,076 | |||||||||||||||||||||||||||||||
2019 | 21,826 | 1,230 | |||||||||||||||||||||||||||||||
2020-2024 | 112,546 | 9,349 | |||||||||||||||||||||||||||||||
Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||
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, 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. | |||||||||||||||||||||||||||||||||
The December 31 balances of the postretirement assets and obligations are shown below: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Assets and Obligations | |||||||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||||||
Projected benefit obligation: | |||||||||||||||||||||||||||||||||
Beginning of year | $ | 9,019 | $ | 11,907 | |||||||||||||||||||||||||||||
Service cost | 59 | 75 | |||||||||||||||||||||||||||||||
Interest cost | 335 | 342 | |||||||||||||||||||||||||||||||
Actuarial (gain) loss | (1,255 | ) | (2,025 | ) | |||||||||||||||||||||||||||||
Benefits paid | (996 | ) | (1,280 | ) | |||||||||||||||||||||||||||||
End of year | 7,162 | 9,019 | |||||||||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||
Fair value of plan assets: | |||||||||||||||||||||||||||||||||
Beginning of year | — | — | |||||||||||||||||||||||||||||||
Company contributions | 996 | 1,280 | |||||||||||||||||||||||||||||||
Benefits paid | (996 | ) | (1,280 | ) | |||||||||||||||||||||||||||||
End of year | — | — | |||||||||||||||||||||||||||||||
Funded status | $ | (7,162 | ) | $ | (9,019 | ) | |||||||||||||||||||||||||||
The following table provides amounts recorded within the account line items of financial position as of December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Accrued employees’ compensation and withholdings | $ | (780 | ) | $ | (1,042 | ) | |||||||||||||||||||||||||||
Retirement plans liability | (6,382 | ) | (7,977 | ) | |||||||||||||||||||||||||||||
Funded status | $ | (7,162 | ) | $ | (9,019 | ) | |||||||||||||||||||||||||||
The following table provides amounts recognized in accumulated other comprehensive income as of December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Prior service credit, before tax | $ | (2,230 | ) | $ | (2,829 | ) | |||||||||||||||||||||||||||
Deferred taxes | (882 | ) | (664 | ) | |||||||||||||||||||||||||||||
Total recognized in other comprehensive income, net of tax | $ | (3,112 | ) | $ | (3,493 | ) | |||||||||||||||||||||||||||
The estimated portion of prior service credit remaining in accumulated other comprehensive income that is expected to be recognized as a component of net periodic postretirement benefit (income) expense in 2015 is $(0.6) million. | |||||||||||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, Teradyne’s net periodic postretirement benefit income was comprised of the following: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Components of Net Periodic Postretirement Benefit Income: | |||||||||||||||||||||||||||||||||
Service cost | $ | 59 | $ | 75 | $ | 67 | |||||||||||||||||||||||||||
Interest cost | 335 | 342 | 437 | ||||||||||||||||||||||||||||||
Amortization of prior service cost | (598 | ) | (598 | ) | (599 | ) | |||||||||||||||||||||||||||
Net actuarial (gain) loss | (1,255 | ) | (2,025 | ) | 83 | ||||||||||||||||||||||||||||
Total net periodic postretirement benefit income | (1,459 | ) | (2,206 | ) | (12 | ) | |||||||||||||||||||||||||||
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||||||||||||||||||||||||||||||||
Reversal of amortization items: | |||||||||||||||||||||||||||||||||
Prior service credit | 598 | 598 | 599 | ||||||||||||||||||||||||||||||
Total recognized in other comprehensive income | 598 | 598 | 599 | ||||||||||||||||||||||||||||||
Total recognized in net periodic postretirement benefit income and other comprehensive income | $ | (861 | ) | $ | (1,608 | ) | $ | 587 | |||||||||||||||||||||||||
Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Discount rate | 4.1 | % | 3.1 | % | 3.7 | % | |||||||||||||||||||||||||||
Initial Health Care Cost Trend Rate | 8 | 8.5 | 9 | ||||||||||||||||||||||||||||||
Ultimate Health Care Cost Trend Rate | 5 | 5 | 5 | ||||||||||||||||||||||||||||||
Year in which Ultimate Health Care Cost Trend Rate is reached | 2020 | 2020 | 2020 | ||||||||||||||||||||||||||||||
Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Discount rate | 3.5 | % | 4.1 | % | 3.1 | % | |||||||||||||||||||||||||||
Initial Medical Trend | 7.5 | 8 | 8.5 | ||||||||||||||||||||||||||||||
Ultimate Health Care Trend | 5 | 5 | 5 | ||||||||||||||||||||||||||||||
Medical cost trend rate decrease to ultimate rate in year | 2022 | 2020 | 2020 | ||||||||||||||||||||||||||||||
Assumed health care trend rates could have a significant effect on the amounts reported for health care plans. A one percentage point change in the assumed health care cost trend rates for the year ended December 31, 2014, would have the following effects: | |||||||||||||||||||||||||||||||||
1 Percentage | 1 Percentage | ||||||||||||||||||||||||||||||||
Point | Point | ||||||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Effect on total service and interest cost components | $ | 6 | $ | (6 | ) | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligations | 87 | (83 | ) | ||||||||||||||||||||||||||||||
Expected Future Benefit Payments | |||||||||||||||||||||||||||||||||
Future benefit payments are expected to be paid as follows: | |||||||||||||||||||||||||||||||||
Benefits Payments | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
2015 | $ | 780 | |||||||||||||||||||||||||||||||
2016 | 738 | ||||||||||||||||||||||||||||||||
2017 | 657 | ||||||||||||||||||||||||||||||||
2018 | 599 | ||||||||||||||||||||||||||||||||
2019 | 535 | ||||||||||||||||||||||||||||||||
2020-2024 | 2,045 |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stock Based Compensation | N. STOCK BASED COMPENSATION | ||||||||||||||||||||
Stock Compensation Plans | |||||||||||||||||||||
At Teradyne’s annual meeting of stockholders held May 21, 2013, Teradyne’s stockholders approved an amendment to Teradyne’s 2006 Equity and Cash Compensation Incentive Plan to increase the number of shares issuable by 10.0 million for an aggregate of 32.0 million shares issuable thereunder. Teradyne’s stockholders also approved an amendment to Teradyne’s 1996 Employee Stock Purchase Plan to increase the number of shares issuable by 5.0 million, for an aggregate of 30.4 million shares issuable thereunder. | |||||||||||||||||||||
Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). | |||||||||||||||||||||
Stock options to purchase Teradyne’s common stock at 100% of the fair market value on the grant date vest in equal annual installments over four years from the grant date and have a maximum term of seven years. | |||||||||||||||||||||
Time-based restricted stock unit awards granted to employees vest in equal annual installments over four years. Restricted stock unit awards granted to non-employee directors vest after a one year period, with 100% of the award vesting on the first anniversary of the grant date. Teradyne expenses the cost of the restricted stock unit awards subject to time-based vesting, which is determined to be the fair market value of the shares at the date of grant, ratably over the period during which the restrictions lapse. | |||||||||||||||||||||
For grants prior to January 2014, performance-based restricted stock units (“PRSUs”) granted to executive officers were subject to time-based vesting and performance-based vesting. The percentage level of performance satisfied for performance-based grants was assessed on or near the anniversary of the grant date and, in turn, that percentage level determined the number of performance-based restricted stock units available for vesting over a four-year vesting period; portions of the performance-based grants not available for vesting were forfeited. | |||||||||||||||||||||
Commencing in January 2014, Teradyne granted PRSUs to its executive officers with a performance metric based on relative total shareholder return (“TSR”). Teradyne’s three-year TSR performance will be measured against the Philadelphia Semiconductor Index, which consists of thirty companies in the semiconductor device and capital equipment industries. The final number of TSR PRSUs that vest will vary based upon the level of performance achieved from 200% of the target shares to 0% of the target shares. The TSR PRSUs will vest upon the three-year anniversary of the grant date. No TSR PRSUs will vest if the executive officer is no longer an employee at the end of the three-year period. Beginning with PRSUs granted in January 2014, if the recipient’s employment ends prior to the determination of the performance percentage due to (1) permanent disability or death or (2) retirement or termination other than for cause, after attaining both at least age sixty and at least ten years of service, then the recipient’s PRSUs (based on the actual performance percentage achieved on the determination date) will vest on the date the performance percentage is determined. | |||||||||||||||||||||
The TSR PRSUs are valued using a Monte Carlo simulation model. The number of units expected to be earned, based upon the achievement of the TSR market condition, is factored into the grant date Monte Carlo valuation. Compensation expense is recognized on a straight-line basis over the three-year service period. Compensation expense is recognized regardless of the eventual number of units that are earned based upon the market condition, provided the executive officer remains an employee at the end of the three-year period. Compensation expense is reversed if at any time during the three-year service period the executive officer is no longer an employee, subject to the retirement and termination eligibility provisions noted above. During the year ended December 31, 2014, Teradyne granted 0.1 million TSR PRSUs with a grant date fair value of $22.06 per unit. The fair value was estimated using the Monte Carlo simulation model with the following assumptions: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Risk-free interest rate | 0.75 | % | |||||||||||||||||||
Teradyne volatility-historical | 36.1 | % | |||||||||||||||||||
Philadelphia Semiconductor Index volatility-historical | 24.6 | % | |||||||||||||||||||
Dividend yield | 1.25 | % | |||||||||||||||||||
Expected volatility was based on the historical volatility of Teradyne’s stock and the Philadelphia Semiconductor Index over the most recent three year period. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. Dividend yield was based upon an estimated annual dividend amount of $0.24 per share divided by $19.16, Teradyne’s stock price on January 24, 2014, the date the awards were granted. | |||||||||||||||||||||
Stock Options Valuation Assumptions: | |||||||||||||||||||||
The total number of stock options granted in 2014, 2013 and 2012 were 0.1 million, 0.2 million and 0.2 million, respectively, at the weighted average grant date fair value of $5.49, $6.09 and $6.85 per share, respectively. The fair value of the stock options at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected life (years) | 4 | 4 | 3.5 | ||||||||||||||||||
Risk-free interest rate | 1.2 | % | 0.6 | % | 0.4 | % | |||||||||||||||
Volatility-historical | 38.8 | % | 46.8 | % | 56 | % | |||||||||||||||
Dividend yield | 1.25 | % | 0 | % | 0 | % | |||||||||||||||
Teradyne determined the stock option’s expected life based upon historical exercise data for executive officers, the age of executives and the terms of the stock option award. Volatility was determined using historical volatility for a period equal to the expected life. The interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||||||||||
Stock compensation plan activity for the years 2014, 2013 and 2012 follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Restricted Stock Units: | |||||||||||||||||||||
Non-vested at January 1 | 4,636 | 4,970 | 5,840 | ||||||||||||||||||
Awarded | 1,870 | 2,110 | 1,844 | ||||||||||||||||||
Vested | (1,965 | ) | (2,322 | ) | (2,510 | ) | |||||||||||||||
Forfeited | (190 | ) | (122 | ) | (204 | ) | |||||||||||||||
Non-vested at December 31 | 4,351 | 4,636 | 4,970 | ||||||||||||||||||
Stock Options: | |||||||||||||||||||||
Outstanding at January 1 | 2,706 | 3,841 | 5,335 | ||||||||||||||||||
Granted | 89 | 213 | 151 | ||||||||||||||||||
Exercised | (1,248 | ) | (1,220 | ) | (1,396 | ) | |||||||||||||||
Forfeited | (38 | ) | (104 | ) | (203 | ) | |||||||||||||||
Cancelled | (2 | ) | (24 | ) | (46 | ) | |||||||||||||||
Outstanding at December 31 | 1,507 | 2,706 | 3,841 | ||||||||||||||||||
Vested and expected to vest at December 31 | 1,507 | 2,694 | 3,785 | ||||||||||||||||||
Exercisable at December 31 | 1,089 | 1,814 | 2,004 | ||||||||||||||||||
Total shares available for the years 2014, 2013 and 2012: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Shares available: | |||||||||||||||||||||
Available for grant at January 1 | 14,213 | 6,414 | 8,205 | ||||||||||||||||||
Options granted | (89 | ) | (213 | ) | (151 | ) | |||||||||||||||
Restricted stock units awarded | (1,870 | ) | (2,110 | ) | (1,844 | ) | |||||||||||||||
Restricted stock units forfeited | 189 | 122 | 204 | ||||||||||||||||||
Additional shares reserved | — | 10,000 | — | ||||||||||||||||||
Available for grant at December 31 | 12,443 | 14,213 | 6,414 | ||||||||||||||||||
Weighted-average restricted stock unit award date fair value information for the years 2014, 2013 and 2012 follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Non-vested at January 1 | $ | 15.56 | $ | 12.72 | $ | 10.01 | |||||||||||||||
Awarded | 19.3 | 16.53 | 16.67 | ||||||||||||||||||
Vested | 14.38 | 10.4 | 9.29 | ||||||||||||||||||
Forfeited | 17.21 | 15.48 | 13.32 | ||||||||||||||||||
Non-vested at December 31 | $ | 17.58 | $ | 15.56 | $ | 12.72 | |||||||||||||||
Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2014, 2013 and 2012 follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Outstanding | $ | 86,113 | $ | 81,680 | $ | 83,949 | |||||||||||||||
Expected to vest | 81,582 | 77,388 | 78,718 | ||||||||||||||||||
Restricted stock units weighted average remaining contractual terms (in years) information at December 31, for the years 2014, 2013 and 2012 follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Outstanding | 1.11 | 1.14 | 1.01 | ||||||||||||||||||
Expected to vest | 1.1 | 1.13 | 1 | ||||||||||||||||||
Weighted average stock options exercise price information for the years 2014, 2013 and 2012 follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Outstanding at January 1 | $ | 6.29 | $ | 4.64 | $ | 4.12 | |||||||||||||||
Options granted | 19.16 | 16.56 | 16.95 | ||||||||||||||||||
Options exercised | 5.34 | 3.28 | 3.87 | ||||||||||||||||||
Options forfeited | 3.59 | 2.57 | 3.11 | ||||||||||||||||||
Options cancelled | 2.21 | 8.05 | 16.21 | ||||||||||||||||||
Outstanding at December 31 | 7.89 | 6.29 | 4.64 | ||||||||||||||||||
Exercisable at December 31 | 5 | 4.55 | 3.7 | ||||||||||||||||||
Stock option aggregate intrinsic value information for the years ended December 31, 2014, 2013 and 2012 follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Exercised | $ | 17,847 | $ | 16,848 | $ | 17,136 | |||||||||||||||
Outstanding | 17,936 | 30,673 | 47,051 | ||||||||||||||||||
Vested and expected to vest | 17,936 | 30,512 | 46,283 | ||||||||||||||||||
Exercisable | 16,101 | 23,707 | 26,436 | ||||||||||||||||||
Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2014, 2013 and 2012 follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Outstanding | 4.5 | 4.9 | 5.7 | ||||||||||||||||||
Vested and Expected to vest | 4.5 | 4.9 | 5.6 | ||||||||||||||||||
Exercisable | 4.2 | 4.3 | 4.9 | ||||||||||||||||||
Significant option groups outstanding at December 31, 2014 and related weighted average price and remaining contractual life information follow: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range Of Exercise Prices | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Remaining | Average | Average | |||||||||||||||||||
Contractual Life | Exercise Price | Exercise Price | |||||||||||||||||||
(Years) | |||||||||||||||||||||
(shares in thousands) | |||||||||||||||||||||
$1.48 – $2.58 | 5.07 | 269 | $ | 1.91 | 269 | $ | 1.91 | ||||||||||||||
$2.67 – $2.74 | 4.4 | 462 | 2.69 | 429 | 2.69 | ||||||||||||||||
$3.23 – $16.23 | 3.61 | 370 | 8.47 | 306 | 7.69 | ||||||||||||||||
$16.56 – $19.16 | 4.99 | 406 | 17.25 | 85 | 16.79 | ||||||||||||||||
1,507 | $ | 7.89 | 1,089 | $ | 5 | ||||||||||||||||
As of December 31, 2014, total unrecognized expense related to non-vested restricted stock unit awards and stock options was $51.3 million, and is expected to be recognized over a weighted average period of 2.4 years. | |||||||||||||||||||||
Effective January 31, 2014, Michael Bradley retired as Chief Executive Officer of Teradyne. Mr. Bradley will continue to serve on Teradyne’s Board of Directors. On January 22, 2014, Teradyne entered into an agreement (the “Retirement Agreement”) with Mr. Bradley. Under the Retirement Agreement, Mr. Bradley’s unvested restricted stock units and stock options granted prior to his retirement date will continue to vest in accordance with their terms through January 31, 2017; and any vested options or options that vest during that period may be exercised for the remainder of the applicable option term. In the Retirement Agreement, Mr. Bradley agreed to be bound by non-competition and non-solicitation restrictions through January 31, 2017. In January 2014, Teradyne recorded a one-time charge to stock-based compensation expense of $6.6 million related to the Retirement Agreement. | |||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||
Under the Teradyne 1996 Employee Stock Purchase Plan, eligible employees may purchase shares of common stock through regular payroll deductions of up to 10% of their compensation, to a maximum of shares with a fair market value of $25,000 per calendar year, not to exceed 6,000 shares. Under the plan, the price paid for the common stock, in 2014 and 2013, is equal to 85% of the stock price on the last business day of the six month purchase period. In 2012, the price paid for the common stock was equal to 85% of the lower of the fair market value of Teradyne’s common stock on the first business day and the last business day of each six month purchase period within each year. | |||||||||||||||||||||
Employee Stock Purchase Rights Valuation Assumptions: | |||||||||||||||||||||
The weighted-average fair value of employee stock purchase rights granted pursuant to the ESPP in the first and last six months of 2012 was $4.09 and $3.42, respectively. The fair value of the employees’ purchase rights was estimated using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||||||
2012 | |||||||||||||||||||||
Expected life (years) | 0.5 | ||||||||||||||||||||
Risk-free interest rate | 0.1 | % | |||||||||||||||||||
Volatility-historical | 42.7 | % | |||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||
In July 2014, 0.5 million shares of common stock were issued to employees who participated in the plan during the first half of 2014, at the price of $16.66 per share. In January 2015, Teradyne issued 0.5 million shares of common stock to employees who participated in the plan during the second half of 2014, at the price of $16.82 per share. | |||||||||||||||||||||
In July 2013, 0.4 million shares of common stock were issued to employees who participated in the plan during the first half of 2013, at the price of $14.94 per share. In January 2014, Teradyne issued 0.4 million shares of common stock to employees who participated in the plan during the second half of 2013, at the price of $14.98 per share. | |||||||||||||||||||||
In July 2012, 0.6 million shares of common stock were issued to employees who participated in the plan during the first half of 2012, at the price of $11.69 per share. In January 2013, Teradyne issued 0.6 million shares of common stock to employees who participated in the plan during the second half of 2012, at the price of $11.91 per share. | |||||||||||||||||||||
As of December 31, 2014, there were 5.3 million shares available for grant under the ESPP. | |||||||||||||||||||||
The effect to income from operations for recording stock-based compensation for the years ended December 31 was as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues | $ | 3,675 | $ | 4,338 | $ | 6,604 | |||||||||||||||
Engineering and development | 10,146 | 12,452 | 13,589 | ||||||||||||||||||
Selling and administrative | 26,486 | 19,822 | 19,727 | ||||||||||||||||||
Stock-based compensation | 40,307 | 36,612 | 39,920 | ||||||||||||||||||
Income tax benefit | (11,537 | ) | (9,762 | ) | (9,548 | ) | |||||||||||||||
Total stock-based compensation expense after income taxes | $ | 28,771 | $ | 26,850 | $ | 30,372 | |||||||||||||||
Savings_Plan
Savings Plan | 12 Months Ended |
Dec. 31, 2014 | |
Savings Plan | O. SAVINGS PLAN |
Teradyne sponsors a defined contribution employee retirement savings plan (“Savings Plan”) covering substantially all U.S. employees. Under the Savings Plan, employees may contribute up to 20% of their compensation (subject to Internal Revenue Service limitations). In January 2009, Teradyne amended the Savings Plan to eliminate a fixed formula used to calculate the match and provide for a variable discretionary match to be determined each year. In 2014, 2013 and 2012, Teradyne matched 100% of eligible employee contributions up to 4% of their compensation for employees not accruing benefits in the U.S. Qualified Pension Plan. There was no match for employees still actively accruing benefits in the U.S. Qualified Pension Plan. Teradyne’s contributions vest 25% per year for the first four years of employment, and contributions for those employees with four years of service vest immediately. | |
In addition Teradyne established an unfunded U.S. Supplemental Savings Plan to provide savings benefits in excess of those allowed by Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. The provisions of this plan are the same as the Savings Plan. Teradyne also established defined contribution savings plans for its foreign employees. Under Teradyne’s savings plans, amounts charged to the statement of operations for the years ended December 31, 2014, 2013 and 2012 were $12.8 million, $12.0 million and $10.6 million, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes | P. INCOME TAXES | ||||||||||||
The components of income (loss) before income taxes and the provision for income taxes as shown in the consolidated statements of operations were as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Income (loss) before income taxes: | |||||||||||||
U.S. | $ | (151,889 | ) | $ | 79,229 | $ | 112,008 | ||||||
Non-U.S. | 247,265 | 122,693 | 153,968 | ||||||||||
$ | 95,376 | $ | 201,922 | $ | 265,976 | ||||||||
Provision (benefit) for income taxes: | |||||||||||||
Current: | |||||||||||||
U.S. Federal | $ | 5,197 | $ | 18,051 | $ | 22,695 | |||||||
Non-U.S. | 28,157 | 22,509 | 18,261 | ||||||||||
State | 678 | (269 | ) | (12 | ) | ||||||||
34,032 | 40,291 | 40,944 | |||||||||||
Deferred: | |||||||||||||
U.S. Federal | (20,449 | ) | (1,692 | ) | 8,158 | ||||||||
Non-U.S. | (404 | ) | (1,386 | ) | 5,997 | ||||||||
State | 925 | (238 | ) | (6,172 | ) | ||||||||
(19,928 | ) | (3,316 | ) | 7,983 | |||||||||
Total provision for income taxes: | $ | 14,104 | $ | 36,975 | $ | 48,927 | |||||||
For the years ended December 31, 2014, 2013 and 2012, income tax expense totaled $14.1 million, $37.0 million and $48.9 million, respectively, primarily attributable to a U.S. federal tax provision and tax provisions for foreign taxes. The decrease in income tax expense from 2013 to 2014 was primarily attributable to a shift in the geographic distribution of income which decreased income subject to taxation in the United States relative to lower tax rate jurisdictions partially offset by an increase in income tax expense associated with uncertain tax positions and a reduction in the benefit from U.S. research and development tax credits. The decrease in income tax expense from 2012 to 2013 resulted from the reinstatement of the U.S. research and development tax credit in 2013 for fiscal years 2012 and 2013 and lower pre-tax income, partially offset by higher tax expense for uncertain tax positions and state taxes. | |||||||||||||
A reconciliation of the effective tax rate for the years 2014, 2013 and 2012 follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. statutory federal tax rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign taxes | (58.1 | ) | (11.4 | ) | (10.5 | ) | |||||||
Goodwill impairment | 36.3 | — | — | ||||||||||
U.S. research and development credit | (7.9 | ) | (7.2 | ) | — | ||||||||
Uncertain tax positions | 7.9 | 4.2 | (1.2 | ) | |||||||||
Other permanent items | 3.4 | (0.1 | ) | (2.8 | ) | ||||||||
Valuation allowance | — | 0.4 | (0.5 | ) | |||||||||
State income taxes, net of federal tax benefit | (0.1 | ) | 0.1 | (1.7 | ) | ||||||||
Other, net | (1.7 | ) | (2.7 | ) | 0.1 | ||||||||
14.8 | % | 18.3 | % | 18.4 | % | ||||||||
U.S. research and development tax credits provided a 7.9% and 7.2% reduction to the 2014 and 2013 U.S. statutory federal tax rate of 35.0%, respectively. The research and development tax credit expired at the end of 2014. | |||||||||||||
Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements of an agreement with the Singapore Economic Development Board under which certain headcount and spending requirements must be met. The tax savings attributable to the tax holiday for the years ended December 31, 2014, 2013 and 2012 were $13.2 million or $0.06 per diluted share, $4.7 million or $0.02 per diluted share and $10.9 million or $0.05 per diluted share, respectively. The tax holiday is currently expected to expire on December 31, 2015. Teradyne is in discussions with the Singapore Economic Development Board with respect to extension of the tax holiday for periods after December 31, 2015. | |||||||||||||
Teradyne records all interest and penalties related to income taxes as a component of income tax expense. Accrued interest and penalties related to income tax items at December 31, 2014 and 2013 amounted to $0.6 million and $0.4 million respectively. For the years ended December 31, 2014, 2013 and 2012 expense of $0.2 million, $0.2 million and $0.1 million respectively, was recorded for interest and penalties related to income tax items. | |||||||||||||
Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2014 and 2013 were as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 10,989 | $ | 14,679 | |||||||||
Tax credits | 50,554 | 65,210 | |||||||||||
Pension liability | 30,036 | 22,966 | |||||||||||
Inventory valuations | 29,105 | 38,452 | |||||||||||
Accruals | 23,323 | 17,828 | |||||||||||
Equity compensation | 11,131 | 10,498 | |||||||||||
Deferred revenue | 10,242 | 12,379 | |||||||||||
Vacation accrual | 7,425 | 7,291 | |||||||||||
Other | 1,725 | 2,613 | |||||||||||
Gross deferred tax assets | 174,530 | 191,916 | |||||||||||
Less: valuation allowance | (41,737 | ) | (40,386 | ) | |||||||||
Total deferred tax assets | 132,793 | 151,530 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Marketable securities | (1,599 | ) | (794 | ) | |||||||||
Intangible assets | (64,871 | ) | (89,268 | ) | |||||||||
Excess of tax over book depreciation | (24,905 | ) | (24,458 | ) | |||||||||
Total deferred tax liabilities | (91,375 | ) | (114,520 | ) | |||||||||
Net deferred assets | $ | 41,418 | $ | 37,010 | |||||||||
During 2014, Teradyne’s valuation allowance increased by $1.3 million primarily due to the increase in the deferred tax assets related to state tax credits generated in 2014. During 2013, Teradyne reduced both its net operating loss deferred tax asset and related valuation allowance by approximately $19.5 million which was attributable to pre-2006 windfall stock based compensation deductions, the benefit of which will be credited to additional paid-in capital if and when realized through a reduction in Teradyne’s income tax payable. As of December 31, 2014 and 2013, these windfall stock option deductions were tracked off balance sheet in accordance with ASC 718, “Compensation—Stock Compensation.” | |||||||||||||
As of December 31, 2014 and 2013, Teradyne evaluated the likelihood that it would realize the deferred income taxes to offset future taxable income and concluded that it is more likely than not that a substantial majority of its deferred tax assets will be realized through consideration of both the positive and negative evidence. At December 31, 2014 and 2013, Teradyne maintained a valuation allowance for certain deferred tax assets of $41.7 million and $40.4 million, respectively, primarily related to state net operating losses and state tax credit carryforwards, due to the uncertainty regarding their realization. Adjustments could be required in the future if Teradyne estimates that the amount of deferred tax assets to be realized is more or less than the net amount recorded. | |||||||||||||
At December 31, 2014, Teradyne had operating loss carryforwards that expire in the following years: | |||||||||||||
U.S. Federal | State | Foreign | |||||||||||
Operating Loss | Operating Loss | Operating Loss | |||||||||||
Carryforwards | Carryforwards | Carryforwards | |||||||||||
(in thousands) | |||||||||||||
2015 | $ | — | $ | 1 | $ | — | |||||||
2016 | — | 56 | — | ||||||||||
2017 | — | 738 | — | ||||||||||
2018 | — | 679 | — | ||||||||||
2019 | — | 133 | — | ||||||||||
2020-2025 | 10,698 | 2,686 | — | ||||||||||
2026-2028 | — | 676 | — | ||||||||||
Beyond 2028 | 806 | 3,055 | 115 | ||||||||||
Non-expiring | — | — | 8,460 | ||||||||||
Total | $ | 11,504 | $ | 8,024 | $ | 8,575 | |||||||
Of the U.S. federal operating loss carryforwards, $10.7 million relates to the acquisition of GenRad, Inc. (“GenRad”) in 2001 and $0.8 million relates to the acquisition of ZTEC in 2013. Both GenRad and ZTEC losses are limited in the annual amount that can be used as a result of “change in ownership” rules as defined in the Internal Revenue Code of 1986. The operating loss carryforward does not include any excess tax deduction related to stock based compensation which has not been recognized for financial statement purposes. | |||||||||||||
Teradyne has approximately $140.8 million of tax credit carry forwards. Federal business tax credits of approximately $37.0 million expire in the years 2017 through 2034. Teradyne has foreign tax credits of approximately $27.5 million expiring in the years 2018 through 2022 and alternative minimum tax credits of approximately $6.6 million, which do not expire. In addition, there are state tax credits of $69.7 million which begin to expire in 2015. Teradyne has federal tax credits of $46.6 million, that are attributable to stock based compensation deductions which will be recorded as an increase in additional paid in capital on the consolidated balance sheet if and when they are “realized” in accordance with ASC 718-10, “Compensation—Stock Compensation.” | |||||||||||||
Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Beginning balance, as of January 1 | $ | 21,203 | $ | 18,666 | $ | 19,391 | |||||||
Additions: | |||||||||||||
Tax positions for current year | 8,414 | 4,586 | 459 | ||||||||||
Tax positions for prior years | 3,781 | 2,112 | 2,259 | ||||||||||
Reductions: | |||||||||||||
Tax positions for prior years | (2,480 | ) | (4,161 | ) | (3,443 | ) | |||||||
Settlements with tax authorities | (500 | ) | — | — | |||||||||
Ending Balance as of December 31 | $ | 30,418 | $ | 21,203 | $ | 18,666 | |||||||
Current year and prior year additions include assessment of potential transfer pricing issues worldwide, federal and state tax credits and incentives, capitalization rules, and domestic production activities deductions. Reductions for tax positions for prior years primarily relate to statute expiration, stock-based compensation deduction in a foreign jurisdiction, and the settlement of a foreign tax audit. Of the $30.4 million of unrecognized tax benefits as of December 31, 2014, $24.1 million would impact the consolidated income tax rate if ultimately recognized. The remaining $6.3 million would impact the valuation allowance if recognized. Teradyne estimates that it is reasonably possible that the balance of unrecognized tax benefits as of December 31, 2014 may decrease approximately $0.8 million in the next twelve months, as a result of a lapse of statutes of limitation and the settlement of a tax audit. The estimated decrease is composed primarily of reserves relating to state tax credits and transfer pricing. | |||||||||||||
Teradyne is subject to U.S. federal income tax, as well as income tax in multiple state, local and foreign jurisdictions. As of December 31, 2014, all material state and local income tax matters have been concluded through 2009, all material federal income tax matters have been concluded through 2010 and all material foreign income tax matters have been concluded through 2008. However, in some jurisdictions, including the United States, operating losses and tax credits may be subject to adjustment until such time as they are utilized and the year of utilization is closed to adjustment. | |||||||||||||
As of December 31, 2014, a deferred tax liability has not been established for approximately $556.9 million of cumulative undistributed earnings of non-U.S. subsidiaries, which are expected to be reinvested indefinitely in operations outside the U.S. Determination of the unrecognized deferred tax liability on unremitted earnings is not practicable due to uncertainty regarding the remittance structure, the mix of earnings and earnings and profit pools in the year of remittance, and overall complexity of the calculation. |
Operating_Segment_Geographic_a
Operating Segment, Geographic and Significant Customer Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Operating Segment, Geographic and Significant Customer Information | Q. OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER 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 the design, manufacturing and marketing of wireless test products and services. The System Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/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 using several factors, of which the primary financial measure is business segment income from operations before taxes. The accounting policies of the business segments are the same as those described in Note B: “Accounting Policies.” | |||||||||||||||||||||
Segment information for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||||||||||
Semiconductor | Wireless | System Test | Corporate | Consolidated | |||||||||||||||||
Test | Test | And | |||||||||||||||||||
Eliminations | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Revenues | $ | 1,300,790 | $ | 184,535 | $ | 162,499 | $ | — | $ | 1,647,824 | |||||||||||
Income (Loss) before taxes (1)(2) | 255,803 | (116,196 | ) | 12,116 | (56,347 | ) | 95,376 | ||||||||||||||
Total assets (3) | 580,501 | 478,974 | 95,105 | 1,383,940 | 2,538,520 | ||||||||||||||||
Property additions | 159,783 | 3,730 | 5,469 | — | 168,982 | ||||||||||||||||
Depreciation and amortization expense | 84,990 | 53,308 | 5,399 | 8,847 | 152,544 | ||||||||||||||||
2013 | |||||||||||||||||||||
Revenues | $ | 1,023,041 | $ | 251,871 | $ | 153,021 | $ | — | $ | 1,427,933 | |||||||||||
Income before taxes (1)(2) | 153,797 | 23,153 | 3,115 | 21,857 | 201,922 | ||||||||||||||||
Total assets (3) | 632,840 | 645,001 | 79,983 | 1,272,000 | 2,629,824 | ||||||||||||||||
Property additions | 94,303 | 5,358 | 7,070 | — | 106,731 | ||||||||||||||||
Depreciation and amortization expense | 72,472 | 51,675 | 5,180 | 21,360 | 150,687 | ||||||||||||||||
2012 | |||||||||||||||||||||
Revenues | $ | 1,127,726 | $ | 286,355 | $ | 242,669 | $ | — | $ | 1,656,750 | |||||||||||
Income (Loss) before taxes (1)(2) | 185,985 | 83,077 | 34,164 | (37,250 | ) | 265,976 | |||||||||||||||
Total assets (3) | 604,127 | 672,048 | 71,116 | 1,082,054 | 2,429,345 | ||||||||||||||||
Property additions | 105,074 | 7,608 | 6,398 | — | 119,080 | ||||||||||||||||
Depreciation and amortization expense | 73,537 | 50,362 | 4,549 | 17,066 | 145,514 | ||||||||||||||||
-1 | Interest income, interest expense, other (income) expense, net and pension and postretirement plans actuarial gains and losses are included in Corporate and Eliminations. | ||||||||||||||||||||
-2 | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and goodwill impairment charges. | ||||||||||||||||||||
-3 | Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. | ||||||||||||||||||||
Included in the Semiconductor Test segment are charges and credits in the following accounts: | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—inventory charge (1) | $ | 14,389 | $ | 5,218 | $ | 18,433 | |||||||||||||||
Restructuring and other | 490 | 1,016 | 386 | ||||||||||||||||||
-1 | Included in the cost of revenues for the years ended December 31, 2014 and 2012 are charges for excess inventory provisions recorded primarily as a result of product transition. | ||||||||||||||||||||
Included in the System Test segment are charges and credits in the following accounts: | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—inventory charge | $ | 2,125 | $ | 4,168 | $ | 4,271 | |||||||||||||||
Restructuring and other | 742 | 1,431 | 451 | ||||||||||||||||||
Included in the Wireless Test segment are charges and credits in the following accounts: | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—inventory step-up (2) | $ | — | $ | — | $ | 6,089 | |||||||||||||||
Cost of revenues—inventory charge | 5,679 | 7,206 | 4,145 | ||||||||||||||||||
Restructuring and other | 565 | 82 | 236 | ||||||||||||||||||
Goodwill impairment charge | 98,897 | — | — | ||||||||||||||||||
-2 | Included in the cost of revenues for the years ended December 31, 2012 is the cost for purchase accounting inventory step-up. | ||||||||||||||||||||
Included in the Corporate and Eliminations segment are charges and credits in the following accounts: | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Restructuring and other | $ | (432 | ) | $ | (449 | ) | $ | (8,794 | ) | ||||||||||||
Information as to Teradyne’s revenues by country is as follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues from customers (1): | |||||||||||||||||||||
Taiwan | $ | 495,942 | $ | 265,472 | $ | 299,359 | |||||||||||||||
China | 292,145 | 323,564 | 351,335 | ||||||||||||||||||
United States | 213,104 | 230,178 | 238,280 | ||||||||||||||||||
Korea | 145,608 | 119,286 | 216,445 | ||||||||||||||||||
Singapore | 119,421 | 114,765 | 101,502 | ||||||||||||||||||
Europe | 111,043 | 90,797 | 77,099 | ||||||||||||||||||
Malaysia | 83,910 | 86,900 | 69,064 | ||||||||||||||||||
Philippines | 68,662 | 63,392 | 111,571 | ||||||||||||||||||
Japan | 63,761 | 81,806 | 100,807 | ||||||||||||||||||
Thailand | 44,117 | 32,209 | 80,518 | ||||||||||||||||||
Rest of the World | 10,111 | 19,564 | 10,770 | ||||||||||||||||||
$ | 1,647,824 | $ | 1,427,933 | $ | 1,656,750 | ||||||||||||||||
-1 | Revenues attributable to a country are based on location of customer site. | ||||||||||||||||||||
In 2014, no single customer accounted for more than 10% of total consolidated revenues. In 2013 and 2012, one customer of Teradyne’s Wireless Test and Semiconductor Test segments, accounted for 12% and 10%, respectively, of total consolidated revenues. | |||||||||||||||||||||
Long-lived assets by geographic area: | |||||||||||||||||||||
United | Foreign(1) | Total | |||||||||||||||||||
States | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
December 31, 2014 | $ | 206,334 | $ | 122,704 | $ | 329,038 | |||||||||||||||
December 31, 2013 | $ | 211,455 | $ | 63,781 | $ | 275,236 | |||||||||||||||
-1 | As of December 31, 2014 and 2013, long-lived assets attributable to Singapore were $99.2 million and $42.5 million, respectively. |
Stock_Repurchase_Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2014 | |
Stock Repurchase Program | R. STOCK REPURCHASE PROGRAM |
In November 2010, the Board authorized a stock repurchase program for up to $200 million. In the years ended December 31, 2014, 2013 and 2012, Teradyne did not repurchase any shares. The cumulative repurchases under the 2010 program as of December 31, 2014 totaled 2.6 million shares of common stock for $31.2 million at an average price of $11.84. In January 2015, the Board of Directors cancelled the 2010 stock repurchase program. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events | S. SUBSEQUENT EVENTS |
In January 2015, Teradyne’s Board of Directors declared a quarterly dividend of $0.06 per share to be paid on March 24, 2015 to shareholders of record as of February 27, 2015. | |
In January 2015, Teradyne’s Board of Directors authorized Teradyne to repurchase up to $500 million of common stock, $300 million of which Teradyne intends to repurchase in 2015. The cumulative repurchases under the 2015 program as of February 25, 2015 totaled 0.9 million shares of common stock for $16.9 million at an average price of $19.44. | |
While Teradyne declared a quarterly cash dividend and authorized a share repurchase program, it may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of Teradyne’s Board of Directors which will consider, among other things, Teradyne’s earnings, capital requirements and financial condition. |
Supplementary_Information
Supplementary Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Supplementary Information | SUPPLEMENTARY INFORMATION | ||||||||||||||||
(Unaudited) | |||||||||||||||||
The following sets forth certain unaudited consolidated quarterly statements of operations data for each of Teradyne’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of Teradyne and the notes thereto included elsewhere herein. | |||||||||||||||||
2014 | |||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
-1 | (1)(2) | (1)(3)(4) | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Revenues: | |||||||||||||||||
Products | $ | 255,386 | $ | 452,488 | $ | 402,987 | $ | 253,162 | |||||||||
Services | 65,624 | 73,079 | 75,023 | 70,074 | |||||||||||||
Total revenues | 321,010 | 525,567 | 478,010 | 323,236 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Cost of products | 124,448 | 202,411 | 182,591 | 131,337 | |||||||||||||
Cost of services | 29,515 | 32,743 | 34,298 | 31,673 | |||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 153,963 | 235,154 | 216,889 | 163,010 | |||||||||||||
Gross profit | 167,047 | 290,413 | 261,121 | 160,226 | |||||||||||||
Operating expenses: | |||||||||||||||||
Engineering and development | 67,085 | 73,414 | 71,953 | 79,188 | |||||||||||||
Selling and administrative | 78,003 | 77,489 | 73,064 | 91,157 | |||||||||||||
Goodwill impairment | — | — | — | 98,897 | |||||||||||||
Acquired intangible assets amortization | 18,271 | 18,271 | 18,271 | 15,957 | |||||||||||||
Restructuring and other | — | 572 | (405 | ) | 1,198 | ||||||||||||
Total operating expenses | 163,359 | 169,746 | 162,883 | 286,397 | |||||||||||||
Income (loss) from operations | 3,688 | 120,667 | 98,238 | (126,171 | ) | ||||||||||||
Non-operating (income) expenses: | |||||||||||||||||
Interest income | (1,036 | ) | (1,266 | ) | (1,922 | ) | (2,035 | ) | |||||||||
Interest expense | 6,417 | 159 | 144 | 214 | |||||||||||||
Other (income) expense, net | 180 | 382 | (654 | ) | 463 | ||||||||||||
(Loss) income before income taxes | (1,873 | ) | 121,392 | 100,670 | (124,813 | ) | |||||||||||
(Benefit) provision for income taxes | (2,802 | ) | 20,187 | 17,721 | (21,002 | ) | |||||||||||
Net income (loss) | $ | 929 | $ | 101,205 | $ | 82,949 | $ | (103,811 | ) | ||||||||
Net income (loss) per common share—basic | $ | 0 | $ | 0.52 | $ | 0.4 | $ | (0.48 | ) | ||||||||
Net income (loss) per common share—diluted | $ | 0 | $ | 0.47 | $ | 0.38 | $ | (0.48 | ) | ||||||||
Cash dividend declared per common share | $ | 0 | $ | 0.06 | $ | 0.06 | $ | 0.06 | |||||||||
-1 | Dividends declared by Teradyne’s Board of Directors were paid in each of the second, third and fourth quarters of 2014. | ||||||||||||||||
-2 | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | ||||||||||||||||
-3 | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: “Accounting Policies” for a discussion of our accounting policy. | ||||||||||||||||
-4 | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | ||||||||||||||||
2013 | |||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
(1)(2) | |||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Revenues: | |||||||||||||||||
Products | $ | 214,300 | $ | 363,087 | $ | 365,825 | $ | 211,710 | |||||||||
Services | 66,067 | 65,802 | 67,551 | 73,591 | |||||||||||||
Total revenues | 280,367 | 428,889 | 433,376 | 285,301 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Cost of products | 96,793 | 158,411 | 150,365 | 93,461 | |||||||||||||
Cost of services | 30,157 | 29,245 | 28,717 | 31,983 | |||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 126,950 | 187,656 | 179,082 | 125,444 | |||||||||||||
Gross profit | 153,417 | 241,233 | 254,294 | 159,857 | |||||||||||||
Operating expenses: | |||||||||||||||||
Engineering and development | 62,751 | 67,773 | 68,918 | 64,613 | |||||||||||||
Selling and administrative | 67,890 | 69,230 | 72,917 | 69,523 | |||||||||||||
Acquired intangible assets amortization | 18,036 | 18,063 | 18,064 | 18,284 | |||||||||||||
Restructuring and other | 332 | 259 | 889 | 600 | |||||||||||||
Total operating expenses | 149,009 | 155,325 | 160,788 | 153,020 | |||||||||||||
Income from operations | 4,408 | 85,908 | 93,506 | 6,837 | |||||||||||||
Non-operating (income) expenses: | |||||||||||||||||
Interest income | (1,072 | ) | (903 | ) | (948 | ) | (1,206 | ) | |||||||||
Interest expense | 6,403 | 6,435 | 6,488 | 6,771 | |||||||||||||
Other (income) expense, net | 503 | 19 | 414 | (34,168 | ) | ||||||||||||
(Loss) income from operations before income taxes | (1,426 | ) | 80,357 | 87,552 | 35,439 | ||||||||||||
(Benefit) provision for income taxes | (8,015 | ) | 13,801 | 18,093 | 13,096 | ||||||||||||
Net income | $ | 6,589 | $ | 66,556 | $ | 69,459 | $ | 22,343 | |||||||||
Net income per common share—basic | $ | 0.03 | $ | 0.35 | $ | 0.36 | $ | 0.12 | |||||||||
Net income per common share—diluted | $ | 0.03 | $ | 0.28 | $ | 0.29 | $ | 0.09 | |||||||||
Cash dividend declared per common share | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||
-1 | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | ||||||||||||||||
-2 | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: “Accounting Policies” for a discussion of our accounting policy. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts | TERADYNE, INC. | ||||||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | ||||||||||||||||
Description | Balance at | Additions | Other | Deductions | Balance at | ||||||||||||||||
Beginning of Period | Charged to | End of Period | |||||||||||||||||||
Cost and Expenses | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | |||||||||||||||||||||
Accounts receivable: | |||||||||||||||||||||
2014 Allowance for doubtful accounts | $ | 2,912 | $ | 55 | $ | — | $ | 476 | $ | 2,491 | |||||||||||
2013 Allowance for doubtful accounts | $ | 4,118 | $ | 69 | $ | — | $ | 1,275 | (1) | $ | 2,912 | ||||||||||
2012 Allowance for doubtful accounts | $ | 4,102 | $ | 78 | $ | — | $ | 62 | $ | 4,118 | |||||||||||
-1 | Based upon an improvement in the aging of accounts receivables in 2013, Teradyne reduced its allowance for doubtful accounts by approximately $1 million. | ||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | ||||||||||||||||
Description | Balance at | Additions | Other | Deductions | Balance at | ||||||||||||||||
Beginning of Period | Charged to | End of Period | |||||||||||||||||||
Cost and Expenses | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | |||||||||||||||||||||
Inventory: | |||||||||||||||||||||
2014 Inventory reserve | $ | 115,857 | $ | 22,193 | $ | 6,918 | $ | 33,716 | $ | 111,252 | |||||||||||
2013 Inventory reserve | $ | 141,838 | $ | 16,592 | $ | 2,568 | $ | 45,141 | $ | 115,857 | |||||||||||
2012 Inventory reserve | $ | 123,512 | $ | 26,849 | $ | 5,353 | $ | 13,876 | $ | 141,838 | |||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | ||||||||||||||||
Description | Balance at | Additions | Other | Deductions | Balance at | ||||||||||||||||
Beginning of Period | Charged to | End of Period | |||||||||||||||||||
Cost and Expenses | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | |||||||||||||||||||||
Deferred taxes: | |||||||||||||||||||||
2014 Valuation allowance | $ | 40,386 | $ | 1,380 | $ | — | $ | 29 | $ | 41,737 | |||||||||||
2013 Valuation allowance | $ | 55,446 | $ | 4,546 | $ | — | $ | 19,606 | $ | 40,386 | |||||||||||
2012 Valuation allowance | $ | 51,066 | $ | 4,626 | $ | — | $ | 246 | $ | 55,446 | |||||||||||
Accounting_Policies_Policies
Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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 reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going basis, management evaluates its estimates, including those related to inventories, investments, goodwill, intangible and other long-lived assets, doubtful accounts, income taxes, deferred tax assets, pensions, warranties, and loss contingencies. Management bases its estimates on historical experience and on appropriate and customary assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ significantly from these estimates. | |||||||||
Revenue Recognition | Revenue Recognition | ||||||||
Teradyne recognizes revenue when there is persuasive evidence of an arrangement, title and risk of loss have passed, delivery has occurred or the services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Title and risk of loss generally pass to its customers upon shipment or at delivery destination point. In circumstances where either title or risk of loss pass upon destination, acceptance or cash payment, Teradyne defers revenue recognition until such events occur. | |||||||||
Teradyne’s equipment has non-software and embedded software components that function together to deliver the equipment’s essential functionality. Revenue is recognized upon shipment or at delivery destination point, provided that customer acceptance criteria can be demonstrated prior to shipment. Certain contracts require Teradyne to perform tests of the product to ensure that performance meets the published product specifications or customer requested specifications, which are generally conducted prior to shipment. Where the criteria cannot be demonstrated prior to shipment, revenue is deferred until customer acceptance has been received. Teradyne also defers the portion of the sales price that is not due until acceptance, which represents deferred profit. | |||||||||
For multiple element arrangements, Teradyne allocates revenue to all deliverables based on their relative selling prices. In such circumstances, a hierarchy is used to determine the selling price for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of selling price (“VSOE”), (ii) third-party evidence of selling price (“TPE”), and (iii) best estimate of the selling price (“BESP”). For a delivered item to be considered a separate unit the delivered item must have value to the customer on a standalone basis and the delivery or performance of the undelivered item must be considered probable and substantially in Teradyne’s control. | |||||||||
Teradyne’s post-shipment obligations include installation, training services, one-year standard warranties, and extended warranties. Installation does not alter the product capabilities, does not require specialized skills or tools and can be performed by the customers or other vendors. Installation is typically provided within five days of product shipment and is completed within one to two days thereafter. Training services are optional and do not affect the customers’ ability to use the product. Teradyne defers revenue for the selling price of installation and training. Revenue associated with the one year standard warranty is recognized at the time product revenue is recognized. Extended warranties constitute warranty obligations beyond one year and Teradyne defers revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605-20, “Separately Priced Extended Warranty and Product Maintenance Contracts” and ASC 605-25, “Revenue Recognition Multiple-Element Arrangements.” Service revenue is recognized over the contractual period or as services are performed. | |||||||||
Teradyne’s products are generally subject to warranty and related costs of the warranty are provided for in cost of revenues when product revenue is recognized. Teradyne classifies shipping and handling costs in cost of revenues. Teradyne generally does not provide its customers with contractual rights of return for any of its products. | |||||||||
As of December 31, 2014 and 2013, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Extended warranty | $ | 43,300 | $ | 34,909 | |||||
Equipment maintenance and training | 30,500 | 22,455 | |||||||
Customer advances | 8,875 | 4,825 | |||||||
Undelivered elements | 8,857 | 6,971 | |||||||
Total deferred revenue and customer advances | $ | 91,532 | $ | 69,160 | |||||
Product Warranty | Product Warranty | ||||||||
Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance 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 balance below is included in other accrued liabilities. | |||||||||
Amount | |||||||||
(in thousands) | |||||||||
Balance at December 31, 2011 | $ | 8,153 | |||||||
Accruals for warranties issued during the period | 14,704 | ||||||||
Accruals related to pre-existing warranties | 877 | ||||||||
Settlements made during the period | (13,948 | ) | |||||||
Balance at December 31, 2012 | 9,786 | ||||||||
Accruals for warranties issued during the period | 10,574 | ||||||||
Accruals related to pre-existing warranties | (3,534 | ) | |||||||
Settlements made during the period | (10,166 | ) | |||||||
Balance at December 31, 2013 | 6,660 | ||||||||
Accruals for warranties issued during the period | 15,406 | ||||||||
Accruals related to pre-existing warranties | (2,008 | ) | |||||||
Settlements made during the period | (11,116 | ) | |||||||
Balance at December 31, 2014 | $ | 8,942 | |||||||
When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances. | |||||||||
Amount | |||||||||
(in thousands) | |||||||||
Balance at December 31, 2011 | $ | 14,030 | |||||||
Deferral of new extended warranty revenue | 22,704 | ||||||||
Recognition of extended warranty deferred revenue | (8,690 | ) | |||||||
Balance at December 31, 2012 | 28,044 | ||||||||
Deferral of new extended warranty revenue | 20,630 | ||||||||
Recognition of extended warranty deferred revenue | (13,765 | ) | |||||||
Balance at December 31, 2013 | 34,909 | ||||||||
Deferral of new extended warranty revenue | 29,519 | ||||||||
Recognition of extended warranty deferred revenue | (21,128 | ) | |||||||
Balance at December 31, 2014 | $ | 43,300 | |||||||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts | ||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The volatility of the industries that Teradyne serves can cause certain of its customers to experience shortages of cash flows, which can impact their ability to make required payments. Teradyne maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are charged off against the allowance when it is determined the receivable will not be recovered. | |||||||||
Inventories | Inventories | ||||||||
Inventories are stated at the lower of cost (first-in, first-out basis) or net realizable value. On a quarterly basis, Teradyne uses consistent methodologies to evaluate all inventories for net realizable value. Teradyne records a provision for both excess and obsolete inventory when such write-downs or write-offs are identified through the quarterly review process. The inventory valuation is based upon assumptions about future demand, product mix and possible alternative uses. | |||||||||
Investments | Investments | ||||||||
Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, “Investments—Debt and Equity Securities.” ASC 320-10 requires that certain debt and equity securities be classified into one of three categories; trading, available-for-sale or held-to-maturity securities. On a quarterly basis, Teradyne reviews its investments to identify and evaluate those that have an indication of a potential other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include: | |||||||||
• | The length of time and the extent to which the market value has been less than cost; | ||||||||
• | The financial condition and near-term prospects of the issuer; and | ||||||||
• | The intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. | ||||||||
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. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the years ended December 31, 2014, 2013 and 2012. ASC 820-10 requires that assets and liabilities carried at fair value be classified and disclosed 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, and therefore is considered a Level 2 input. | |||||||||
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. | |||||||||
In accordance with ASC 820-10, Teradyne measures its debt and equity investments at fair value. Teradyne’s debt and equity investments are primarily classified within Level 1 and 2, with the exception of acquisition-related contingent consideration, which was classified within Level 3. Teradyne determines the fair value of acquisition-related contingent consideration based on assessment of the probability that it would be required to make such payment. | |||||||||
Prepayments | Prepayments | ||||||||
Prepayments consist of the following and are included in prepayments on the balance sheet: | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Contract manufacturer prepayments | $ | 65,972 | $ | 115,388 | |||||
Prepaid taxes | 11,462 | 3,281 | |||||||
Prepaid maintenance and other services | 7,343 | 6,538 | |||||||
Other prepayments | 11,042 | 11,167 | |||||||
Total prepayments | $ | 95,819 | $ | 136,374 | |||||
Retirement and Postretirement Plans | Retirement and Postretirement Plans | ||||||||
Effective January 1, 2012, Teradyne changed the method of recognizing actuarial gains and losses for its defined benefit pension plans and postretirement benefit plan and calculating the expected return on plan assets for its defined benefit pension plans. Historically, Teradyne recognized net actuarial gains and losses in accumulated other comprehensive income within shareholders’ equity on its consolidated balance sheet on an annual basis and amortized them into operating results over the average remaining years of service of the plan participants, to the extent such gains and losses were outside of a range (“corridor”). Teradyne elected to immediately recognize net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. In addition, Teradyne used to calculate the expected return on plan assets using a calculated market-related value of plan assets. Effective January 1, 2012, Teradyne elected to calculate the expected return on plan assets using the fair value of the plan assets. | |||||||||
Teradyne believes that this new method is preferable as it eliminates the delay in recognizing gains and losses in its operating results and it will improve the transparency by faster recognition of the effects of economic and interest rate trends on plan obligations and investments. These actuarial gains and losses are generally measured annually as of December 31 and, accordingly, will be recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. In accordance with FASB ASC Topic 250, “Accounting Changes and Error Corrections,” all prior periods presented in this Annual Report on Form 10-K have been adjusted to apply the new accounting method retrospectively. | |||||||||
Goodwill, Intangible and Long-Lived Assets | Goodwill, Intangible and Long-Lived Assets | ||||||||
Teradyne accounts for goodwill and intangible assets in accordance with ASC 350-10, “Intangibles-Goodwill and Other.” Intangible assets are amortized over their estimated useful economic life and are carried at cost less accumulated amortization. Goodwill is assessed for impairment at least annually in the fourth quarter, as of December 31, on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. In accordance with ASC 350-10, Teradyne has the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If Teradyne determines this is the case, Teradyne is required to perform the two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized. If Teradyne determines that it is more-likely-than-not that the fair value of the reporting unit is greater than its carrying amounts, the two-step goodwill impairment test is not required. | |||||||||
In accordance with ASC 360-10, “Impairment or Disposal of Long-Lived Assets,” Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the estimated undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. The cash flow estimates used to determine the impairment, if any, contain management’s best estimates using appropriate assumptions and projections at that time. There were no events or circumstances indicating that the carrying value of intangible and long-lived assets may not be recoverable in 2013 or 2012. As a result of the Wireless Test segment goodwill impairment charge in the fourth quarter of 2014, Teradyne performed an impairment test of the Wireless Test segment’s intangible and long-lived assets based on a comparison of the estimated undiscounted cash flows to the recorded value of the assets and there was no indication of impairment. | |||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||
Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related allowances for depreciation are removed from the accounts and any resulting gain or loss is reflected in the statement of operations. | |||||||||
Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: | |||||||||
Buildings | 40 years | ||||||||
Building improvements | 5 to 10 years | ||||||||
Leasehold improvements | Lesser of lease term or 10 years | ||||||||
Furniture and fixtures | 10 years | ||||||||
Test systems manufactured internally | 6 years | ||||||||
Machinery and equipment | 3 to 5 years | ||||||||
Software | 3 to 5 years | ||||||||
Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year life to cost of revenues, engineering and development, and selling and administrative expenses. Teradyne often sells internally manufactured test equipment to customers. Upon the sale of an internally manufactured test system, the net book value of the system is transferred to inventory and expensed as cost of revenues. Test systems leased by customers are depreciated over an estimated useful life of approximately four years. The net book value of internally manufactured test systems sold in the years ended December 31, 2014, 2013 and 2012 was $9.7 million, $9.0 million and $6.0 million, respectively. | |||||||||
Engineering and Development Costs | Engineering and Development Costs | ||||||||
Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees, allocated facility costs, depreciation, and tooling costs. | |||||||||
Stock Compensation Plans and Employee Stock Purchase Plan | Stock Compensation Plans and Employee Stock Purchase Plan | ||||||||
Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, “Compensation-Stock Compensation.” As required by ASC 718-10, Teradyne has made an estimate of expected forfeitures and is recognizing compensation costs only for those stock-based compensation awards expected to vest. | |||||||||
Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). | |||||||||
Income Taxes | Income Taxes | ||||||||
Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The measurement of deferred tax assets is reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Teradyne performed the required assessment of positive and negative evidence regarding the realization of the net deferred tax assets in accordance with ASC 740, “Accounting for Income Taxes.” This assessment included the evaluation of scheduled reversals of deferred tax liabilities, estimates of projected future taxable income and tax-planning strategies. Although realization is not assured, based on its assessment, Teradyne concluded that it is more likely than not that such assets, net of the existing valuation allowance, will be realized. U.S. income taxes are not provided for on the earnings of non-U.S. subsidiaries, except Japan, which are expected to be reinvested indefinitely in operations outside the U.S. For intra-period tax allocations, Teradyne first utilizes non-equity related tax attributes, such as net operating losses and credit carryforwards and then equity-related tax attributes. Teradyne uses the with-and-without method for calculating excess stock compensation deductions and does not take into account any indirect impacts of excess stock compensation deductions on its research and development tax credits, domestic production activities deduction, and other differences between financial reporting and tax reporting. | |||||||||
Advertising Costs | Advertising Costs | ||||||||
Teradyne expenses all advertising costs as incurred. Advertising costs were $1.9 million, $1.7 million and $1.6 million in 2014, 2013 and 2012, respectively. | |||||||||
Translation of Non-U.S. Currencies | Translation of Non-U.S. Currencies | ||||||||
The functional currency for all subsidiaries is the U.S. dollar. All foreign currency denominated monetary assets and liabilities are remeasured on a monthly basis into the functional currency using exchange rates in effect at the end of the period. All foreign currency denominated non-monetary assets and liabilities are remeasured into the functional currency using historical exchange rates. Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net and were a loss of $0.9 million, $6.9 million and $4.5 million, respectively, for the years ended December 31, 2014, 2013 and 2012. These amounts do not reflect the corresponding gains (losses) from foreign exchange contracts. See Note F: “Financial Instruments” regarding foreign exchange contracts. Revenue and expense amounts are translated using an average of exchange rates in effect during the period. | |||||||||
Net Income per Common Share | Net Income per Common Share | ||||||||
Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Except where the result would be antidilutive, diluted net income per common share is calculated by dividing net income by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. | |||||||||
Dilutive potential common shares included incremental shares from the assumed conversion of the convertible notes and the convertible notes hedge warrant shares, during the periods the convertible notes and warrants were outstanding. Incremental shares from the assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. Teradyne’s call option for 34.7 million shares at an exercise price of $5.48 was not used in the GAAP earnings per share calculation as its effect was anti-dilutive. | |||||||||
Teradyne settled its conversion spread (i.e., the intrinsic value of the embedded option feature contained in the convertible debt) in shares. Teradyne accounted for its conversion spread using the treasury stock method. Teradyne determined that it had the ability and intent to settle the principal amount of the convertible debt in cash; accordingly, the principal amount was excluded from the determination of diluted earnings per share. | |||||||||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | ||||||||
Comprehensive income (loss) includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt and equity marketable securities. |
Accounting_Policies_Tables
Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Revenue and Customer Advances | As of December 31, 2014 and 2013, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Extended warranty | $ | 43,300 | $ | 34,909 | |||||
Equipment maintenance and training | 30,500 | 22,455 | |||||||
Customer advances | 8,875 | 4,825 | |||||||
Undelivered elements | 8,857 | 6,971 | |||||||
Total deferred revenue and customer advances | $ | 91,532 | $ | 69,160 | |||||
Warranty Accrual Included in Other Accrued Liabilities | The balance below is included in other accrued liabilities. | ||||||||
Amount | |||||||||
(in thousands) | |||||||||
Balance at December 31, 2011 | $ | 8,153 | |||||||
Accruals for warranties issued during the period | 14,704 | ||||||||
Accruals related to pre-existing warranties | 877 | ||||||||
Settlements made during the period | (13,948 | ) | |||||||
Balance at December 31, 2012 | 9,786 | ||||||||
Accruals for warranties issued during the period | 10,574 | ||||||||
Accruals related to pre-existing warranties | (3,534 | ) | |||||||
Settlements made during the period | (10,166 | ) | |||||||
Balance at December 31, 2013 | 6,660 | ||||||||
Accruals for warranties issued during the period | 15,406 | ||||||||
Accruals related to pre-existing warranties | (2,008 | ) | |||||||
Settlements made during the period | (11,116 | ) | |||||||
Balance at December 31, 2014 | $ | 8,942 | |||||||
Extended Product Warranty Included in Short and Long-Term Deferred Revenue and Customer Advances | The balance below is included in short and long-term deferred revenue and customer advances. | ||||||||
Amount | |||||||||
(in thousands) | |||||||||
Balance at December 31, 2011 | $ | 14,030 | |||||||
Deferral of new extended warranty revenue | 22,704 | ||||||||
Recognition of extended warranty deferred revenue | (8,690 | ) | |||||||
Balance at December 31, 2012 | 28,044 | ||||||||
Deferral of new extended warranty revenue | 20,630 | ||||||||
Recognition of extended warranty deferred revenue | (13,765 | ) | |||||||
Balance at December 31, 2013 | 34,909 | ||||||||
Deferral of new extended warranty revenue | 29,519 | ||||||||
Recognition of extended warranty deferred revenue | (21,128 | ) | |||||||
Balance at December 31, 2014 | $ | 43,300 | |||||||
Schedule of Prepayments | Prepayments consist of the following and are included in prepayments on the balance sheet: | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Contract manufacturer prepayments | $ | 65,972 | $ | 115,388 | |||||
Prepaid taxes | 11,462 | 3,281 | |||||||
Prepaid maintenance and other services | 7,343 | 6,538 | |||||||
Other prepayments | 11,042 | 11,167 | |||||||
Total prepayments | $ | 95,819 | $ | 136,374 | |||||
Useful Lives of Assets | Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: | ||||||||
Buildings | 40 years | ||||||||
Building improvements | 5 to 10 years | ||||||||
Leasehold improvements | Lesser of lease term or 10 years | ||||||||
Furniture and fixtures | 10 years | ||||||||
Test systems manufactured internally | 6 years | ||||||||
Machinery and equipment | 3 to 5 years | ||||||||
Software | 3 to 5 years |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Avionics Interface Technologies, LLC | |||||||||
Allocation of Purchase Price | The following represents the allocation of the purchase price: | ||||||||
Purchase Price Allocation | |||||||||
(in thousands) | |||||||||
Goodwill | $ | 10,516 | |||||||
Intangible assets | 9,080 | ||||||||
Tangible assets acquired and liabilities assumed: | |||||||||
Other current assets | 2,452 | ||||||||
Non-current assets | 359 | ||||||||
Accounts payable and current liabilities | (1,164 | ) | |||||||
Total purchase price | $ | 21,243 | |||||||
Lists of Intangible Assets and Their Estimated Useful Lives at Acquisition Date | The following table lists these intangible assets and their estimated useful lives at the acquisition date: | ||||||||
Fair Value | Estimated Useful | ||||||||
Life | |||||||||
(in thousands) | (in years) | ||||||||
Developed technology | $ | 2,580 | 4.8 | ||||||
Customer relationships | 5,630 | 5 | |||||||
Trademark | 380 | 5 | |||||||
Non-competes | 320 | 4 | |||||||
Backlog | 170 | 0.3 | |||||||
Total intangible assets | $ | 9,080 | 4.8 | ||||||
Pro Forma Results Under Acquisitions | The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented: | ||||||||
For the Year Ended | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands, except | |||||||||
per share amounts) | |||||||||
Revenues | $ | 1,655,038 | 1,434,699 | ||||||
Net income | $ | 82,169 | $ | 164,087 | |||||
Income per common share: | |||||||||
Basic | $ | 0.4 | $ | 0.86 | |||||
Diluted | $ | 0.37 | $ | 0.7 | |||||
ZTEC Instruments, Inc. | |||||||||
Allocation of Purchase Price | The following represents the allocation of the purchase price: | ||||||||
Purchase Price Allocation | |||||||||
(in thousands) | |||||||||
Goodwill | $ | 12,520 | |||||||
Intangible assets | 4,870 | ||||||||
Tangible assets acquired and liabilities assumed: | |||||||||
Cash | 79 | ||||||||
Other current assets | 1,612 | ||||||||
Non-current assets | 1,757 | ||||||||
Accounts payable and current liabilities | (1,811 | ) | |||||||
Long-term deferred tax liabilities | (1,719 | ) | |||||||
Total purchase price | $ | 17,308 | |||||||
Lists of Intangible Assets and Their Estimated Useful Lives at Acquisition Date | The following table lists these intangible assets and their estimated useful lives at the acquisition date: | ||||||||
Fair Value | Estimated Useful | ||||||||
Life | |||||||||
(in thousands) | (in years) | ||||||||
Developed technology | $ | 3,500 | 5 | ||||||
Customer relationships | 1,370 | 6 | |||||||
Total intangible assets | $ | 4,870 | 5.3 | ||||||
Pro Forma Results Under Acquisitions | The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented: | ||||||||
For the Year Ended | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
(in thousands, except | |||||||||
per share amounts) | |||||||||
Revenues | $ | 1,431,270 | $ | 1,660,758 | |||||
Net income | $ | 163,394 | $ | 215,654 | |||||
Income per common share: | |||||||||
Basic | $ | 0.86 | $ | 1.15 | |||||
Diluted | $ | 0.69 | $ | 0.94 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property Plant and Equipment | Property, plant and equipment consist of the following: | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Land | $ | 16,561 | $ | 16,561 | |||||
Buildings | 108,671 | 107,632 | |||||||
Machinery and equipment | 659,743 | 600,848 | |||||||
Furniture and fixtures, and software | 77,566 | 81,994 | |||||||
Leasehold improvements | 31,981 | 30,757 | |||||||
Construction in progress | 2,508 | 622 | |||||||
897,030 | 838,414 | ||||||||
Less: accumulated depreciation | 567,992 | 563,178 | |||||||
$ | 329,038 | $ | 275,236 | ||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
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 December 31, 2014 and 2013. | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
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 | $ | 111,471 | $ | — | $ | — | $ | 111,471 | |||||||||||||||||
Cash equivalents | 160,218 | 22,567 | — | 182,785 | |||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||
U.S. Treasury securities | — | 402,154 | — | 402,154 | |||||||||||||||||||||
U.S. government agency securities | — | 258,502 | — | 258,502 | |||||||||||||||||||||
Corporate debt securities | — | 141,467 | — | 141,467 | |||||||||||||||||||||
Commercial paper | — | 140,638 | — | 140,638 | |||||||||||||||||||||
Certificates of deposit and time deposits | — | 49,036 | — | 49,036 | |||||||||||||||||||||
Equity and debt mutual funds | 12,333 | — | — | 12,333 | |||||||||||||||||||||
Non-U.S. government securities | — | 446 | — | 446 | |||||||||||||||||||||
Total | $ | 284,022 | $ | 1,014,810 | $ | — | $ | 1,298,832 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 3,350 | $ | 3,350 | |||||||||||||||||
Derivatives | — | 149 | — | 149 | |||||||||||||||||||||
Total | $ | — | $ | 149 | $ | 3,350 | $ | 3,499 | |||||||||||||||||
Reported as follows: | |||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 271,689 | $ | 22,567 | $ | — | $ | 294,256 | |||||||||||||||||
Marketable securities | — | 533,787 | — | 533,787 | |||||||||||||||||||||
Long-term marketable securities | 12,333 | 458,456 | — | 470,789 | |||||||||||||||||||||
$ | 284,022 | $ | 1,014,810 | $ | — | $ | 1,298,832 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other current liabilities | $ | — | $ | 149 | $ | 1,750 | $ | 1,899 | |||||||||||||||||
Long-term other accrued liabilities | — | — | 1,600 | 1,600 | |||||||||||||||||||||
$ | — | $ | 149 | $ | 3,350 | 3,499 | |||||||||||||||||||
December 31, 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 | $ | 117,242 | $ | — | $ | — | $ | 117,242 | |||||||||||||||||
Cash equivalents | 165,865 | 58,531 | — | 224,396 | |||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||||
U.S. Treasury securities | — | 467,895 | — | 467,895 | |||||||||||||||||||||
U.S. government agency securities | — | 202,588 | — | 202,588 | |||||||||||||||||||||
Commercial paper | — | 105,598 | — | 105,598 | |||||||||||||||||||||
Corporate debt securities | — | 65,387 | — | 65,387 | |||||||||||||||||||||
Equity and debt mutual funds | 13,156 | — | — | 13,156 | |||||||||||||||||||||
Certificates of deposit and time deposits | — | 3,258 | — | 3,258 | |||||||||||||||||||||
Non-U.S. government securities | — | 78 | — | 78 | |||||||||||||||||||||
Total | 296,263 | 903,335 | — | 1,199,598 | |||||||||||||||||||||
Derivatives | — | 153 | — | 153 | |||||||||||||||||||||
Total | $ | 296,263 | $ | 903,488 | $ | — | $ | 1,199,751 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 2,230 | $ | 2,230 | |||||||||||||||||
Total | $ | — | $ | — | $ | 2,230 | $ | 2,230 | |||||||||||||||||
Reported as follows: | |||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 283,107 | $ | 58,531 | $ | — | $ | 341,638 | |||||||||||||||||
Marketable securities | — | 586,882 | — | 586,882 | |||||||||||||||||||||
Long-term marketable securities | 13,156 | 257,922 | — | 271,078 | |||||||||||||||||||||
Other current assets | — | 153 | — | 153 | |||||||||||||||||||||
$ | 296,263 | $ | 903,488 | $ | — | $ | 1,199,751 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Long-term other accrued liabilities | $ | — | $ | — | $ | 2,230 | $ | 2,230 | |||||||||||||||||
$ | — | $ | — | $ | 2,230 | $ | 2,230 | ||||||||||||||||||
Schedule of Changes in Fair Value of Level 3 Contingent Consideration | Changes in the fair value of Level 3 contingent consideration for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
Contingent Consideration | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 388 | |||||||||||||||||||||||
Acquisition of ZTEC | 2,230 | ||||||||||||||||||||||||
Payments | (388 | ) | |||||||||||||||||||||||
Balance at December 31, 2013 | 2,230 | ||||||||||||||||||||||||
Fair value adjustment | (630 | ) | |||||||||||||||||||||||
Acquisition of AIT | 1,750 | ||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 3,350 | |||||||||||||||||||||||
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument | The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instrument: | ||||||||||||||||||||||||
Liability | December 31, | Valuation | Unobservable Inputs | Weighted | |||||||||||||||||||||
2014 | Technique | Average | |||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Contingent consideration | $1,600 | Income approach- | Revenue earn-out-probability for calendar year 2015 revenue. | 0% | |||||||||||||||||||||
(ZTEC) | discounted cash | ||||||||||||||||||||||||
flow | Customer orders-probability of achievement during earn out period (acquisition date through December 31, 2015) | 40% | |||||||||||||||||||||||
Discount rate for revenue earn-out | N/A | ||||||||||||||||||||||||
Discount rate for customer orders | 5.20% | ||||||||||||||||||||||||
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of financial instruments at December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 294,256 | $ | 294,256 | $ | 341,638 | $ | 341,638 | |||||||||||||||||
Marketable securities | 1,004,576 | 1,004,576 | 857,960 | 857,960 | |||||||||||||||||||||
Convertible debt (1) | — | — | 185,708 | 611,433 | |||||||||||||||||||||
Japan loan | — | — | 955 | 955 | |||||||||||||||||||||
-1 | The carrying value represented the bifurcated debt component only, while the fair value was based on quoted market prices for the convertible note which included the equity conversion feature. | ||||||||||||||||||||||||
Schedule of Available-for-Sale Marketable Securities | The following tables summarize the composition of available for sale marketable securities at December 31, 2014 and 2013: | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available-for-Sale | Fair Market | ||||||||||||||||||||||||
Value of Investments | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | with Unrealized Losses | |||||||||||||||||||||
Gain | (Loss) | Value | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 402,197 | $ | 362 | $ | (405 | ) | $ | 402,154 | $ | 317,771 | ||||||||||||||
U.S. government agency securities | 258,452 | 135 | (85 | ) | 258,502 | 104,642 | |||||||||||||||||||
Corporate debt securities | 139,374 | 2,414 | (321 | ) | 141,467 | 96,998 | |||||||||||||||||||
Commercial paper | 140,616 | 26 | (4 | ) | 140,638 | 41,747 | |||||||||||||||||||
Certificates of deposit and time deposits | 49,048 | 11 | (23 | ) | 49,036 | 20,684 | |||||||||||||||||||
Equity and debt mutual funds | 10,492 | 1,870 | (29 | ) | 12,333 | 1,234 | |||||||||||||||||||
Non-U.S. government securities | 446 | — | — | 446 | — | ||||||||||||||||||||
$ | 1,000,625 | $ | 4,818 | $ | (867 | ) | $ | 1,004,576 | $ | 583,076 | |||||||||||||||
Reported as follows: | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Fair Market | |||||||||||||||||||||
Gain | (Loss) | Value | Value of Investments | ||||||||||||||||||||||
with Unrealized Losses | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Marketable securities | $ | 533,833 | $ | 99 | $ | (145 | ) | $ | 533,787 | $ | 240,234 | ||||||||||||||
Long-term marketable securities | 466,792 | 4,719 | (722 | ) | 470,789 | 342,842 | |||||||||||||||||||
$ | 1,000,625 | $ | 4,818 | $ | (867 | ) | $ | 1,004,576 | $ | 583,076 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Available-for-Sale | Fair Market | ||||||||||||||||||||||||
Value of Investments | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | with Unrealized Losses | |||||||||||||||||||||
Gain | (Loss) | Value | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 468,084 | $ | 94 | $ | (283 | ) | $ | 467,895 | $ | 108,212 | ||||||||||||||
U.S. government agency securities | 202,573 | 75 | (60 | ) | 202,588 | 84,498 | |||||||||||||||||||
Commercial paper | 105,583 | 16 | (1 | ) | 105,598 | 7,993 | |||||||||||||||||||
Corporate debt securities | 65,747 | 762 | (1,122 | ) | 65,387 | 40,355 | |||||||||||||||||||
Equity and debt mutual funds | 10,463 | 2,742 | (49 | ) | 13,156 | 702 | |||||||||||||||||||
Certificates of deposit and time deposits | 3,258 | — | — | 3,258 | — | ||||||||||||||||||||
Non-U.S. government securities | 78 | — | — | 78 | — | ||||||||||||||||||||
$ | 855,786 | $ | 3,689 | $ | (1,515 | ) | $ | 857,960 | $ | 241,760 | |||||||||||||||
Reported as follows: | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Market | Fair Market | |||||||||||||||||||||
Gain | (Loss) | Value | Value of Investments | ||||||||||||||||||||||
with Unrealized Losses | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Marketable securities | $ | 586,818 | $ | 85 | $ | (21 | ) | $ | 586,882 | $ | 137,670 | ||||||||||||||
Long-term marketable securities | 268,968 | 3,604 | (1,494 | ) | 271,078 | 104,090 | |||||||||||||||||||
$ | 855,786 | $ | 3,689 | $ | (1,515 | ) | $ | 857,960 | $ | 241,760 | |||||||||||||||
Contractual Maturities of Investments Held | The contractual maturities of investments held at December 31, 2014 were as follows: | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Due within one year | $ | 533,833 | $ | 533,787 | |||||||||||||||||||||
Due after 1 year through 5 years | 418,732 | 418,363 | |||||||||||||||||||||||
Due after 5 years through 10 years | 5,735 | 5,924 | |||||||||||||||||||||||
Due after 10 years | 31,833 | 34,169 | |||||||||||||||||||||||
Total | $ | 990,133 | $ | 992,243 | |||||||||||||||||||||
Assets Measured at Fair Value on Non-Recurring Basis | Assets of Teradyne measured at fair value on a non-recurring basis as of December 31, 2014 are summarized as follows: | ||||||||||||||||||||||||
Fair Value Measurements at Reporting Period | |||||||||||||||||||||||||
December 31, | Quoted Prices | Significant | Significant | Total Losses | |||||||||||||||||||||
2014 | in Active | Other | Other | ||||||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||||||
Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Goodwill | $ | 273,438 | $ | — | $ | — | $ | 273,438 | $ | 98,897 | |||||||||||||||
Definite lived intangible assets | 158,237 | — | — | 158,237 | — | ||||||||||||||||||||
Long-lived assets held and used | 10,189 | — | 10,189 | — | — | ||||||||||||||||||||
$ | 441,864 | $ | — | $ | 10,189 | $ | 431,675 | $ | 98,897 | ||||||||||||||||
Schedule of Notional Amount of Derivatives | At December 31, 2014 and 2013, Teradyne had the following contracts to buy and sell non-U.S. currencies for U.S. dollars and other non-U.S. currencies with the following notional amounts: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Buy | Sell | Net | Buy | Sell | Net | ||||||||||||||||||||
Position | Position | Total | Position | Position | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Japanese Yen | $ | — | $ | 19.7 | $ | 19.7 | $ | — | $ | 32.6 | $ | 32.6 | |||||||||||||
Taiwan Dollar | (0.9 | ) | 5.7 | 4.8 | — | 4 | 4 | ||||||||||||||||||
British Pound Sterling | — | 11.7 | 11.7 | — | 6.9 | 6.9 | |||||||||||||||||||
Korean Won | — | 4.4 | 4.4 | — | 5.8 | 5.8 | |||||||||||||||||||
Euro | (30.6 | ) | — | (30.6 | ) | (24.8 | ) | 0.7 | (24.1 | ) | |||||||||||||||
Total | $ | (31.5 | ) | $ | 41.5 | $ | 10 | $ | (24.8 | ) | $ | 50 | $ | 25.2 | |||||||||||
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value | The following table summarizes the fair value of derivative instruments as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
Balance Sheet Location | December 31, | December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign exchange contracts | Other current liabilities | $ | 149 | $ | — | ||||||||||||||||||||
Foreign exchange contracts | Other current assets | — | 153 | ||||||||||||||||||||||
Total derivatives | $ | 149 | $ | 153 | |||||||||||||||||||||
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized | The following table summarizes the effect of derivative instruments in the statement of operations recognized for the years ended December 31, 2014, 2013 and 2012. The table does not reflect the corresponding losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. For the years ended December 31, 2014, 2013, and 2012, losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $0.9 million, $6.9 million, and $4.5 million, respectively. | ||||||||||||||||||||||||
Location of Losses (Gains) | December 31, | December 31, | December 31, | ||||||||||||||||||||||
Recognized in Statement | 2014 | 2013 | 2012 | ||||||||||||||||||||||
of Operations | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign exchange contracts | Other (income) expense, net | $ | 237 | $ | (5,933 | ) | $ | (3,974 | ) | ||||||||||||||||
Total derivatives | $ | 237 | $ | (5,933 | ) | $ | (3,974 | ) | |||||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt | At December 31, 2014 and 2013, debt consisted of the following: | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Convertible senior notes | $ | — | $ | 185,708 | |||||
Japan loan | — | 955 | |||||||
Total debt | — | 186,663 | |||||||
Current portion of long-term debt | — | 186,663 | |||||||
Long-term debt | $ | — | $ | — | |||||
Components of Convertible Senior Notes | The below tables represent the key components of Teradyne’s convertible senior notes: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Debt principal | $ | — | $ | 189,998 | |||||
Unamortized discount | — | 4,290 | |||||||
Net carrying amount of the convertible debt | $ | — | $ | 185,708 | |||||
For the year ended | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Contractual interest expense on the coupon | $ | 1,757 | $ | 8,550 | |||||
Amortization of the discount component and debt issue fees recognized as interest expense | 4,493 | 16,628 | |||||||
Total interest expense on the convertible debt | $ | 6,250 | $ | 25,178 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Changes in Accumulated Other Comprehensive Income | Changes in accumulated other comprehensive income, which is presented net of tax, consists of the following: | ||||||||||||||
Unrealized Gains on | Retirement Plans | Total | |||||||||||||
Marketable Securities | Prior Service Benefit | ||||||||||||||
(in thousands) | |||||||||||||||
Balance at December 31, 2012, net of tax of $835, $(125) | $ | 2,925 | $ | 2,895 | $ | 5,820 | |||||||||
Other comprehensive income before reclassifications, net of tax of $216 | (1,097 | ) | — | (1,097 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $(257), $(159) | (447 | ) | (276 | ) | (723 | ) | |||||||||
Net current period other comprehensive income, net of tax of $(41), $(159) | (1,544 | ) | (276 | ) | (1,820 | ) | |||||||||
Balance at December 31, 2013, net of tax of $794, $(284) | 1,381 | 2,619 | 4,000 | ||||||||||||
Other comprehensive income before reclassifications, net of tax of $1,449 | 2,417 | — | 2,417 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax of $(645), $(169) | (1,433 | ) | (295 | ) | (1,728 | ) | |||||||||
Net current period other comprehensive income, net of tax of $804, $(169) | 984 | (295 | ) | 689 | |||||||||||
Balance at December 31, 2014, net of tax of $1,598, $(453) | $ | 2,365 | $ | 2,324 | $ | 4,689 | |||||||||
Reclassification Out of Accumulated Other Comprehensive Income to Statement of Operations | Reclassifications out of accumulated other comprehensive income to the statement of operations for the years ended December 31, 2014, 2013 and 2012, were as follows: | ||||||||||||||
Details about Accumulated | For the year ended | Affected Line Item | |||||||||||||
Other Comprehensive Income | in the Statements | ||||||||||||||
Components | of Operations | ||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(in thousands) | |||||||||||||||
Available-for-sale marketable securities | |||||||||||||||
Unrealized gains, net of tax of $645, $257, $201 | $ | 1,433 | $ | 447 | $ | 702 | Interest income | ||||||||
$ | 1,433 | $ | 447 | $ | 702 | ||||||||||
Amortization of defined benefit pension and postretirement plans | |||||||||||||||
Prior service benefit, net of tax of $169, $159, $134 | $ | 295 | $ | 276 | $ | 233 | (a) | ||||||||
$ | 295 | $ | 276 | $ | 233 | ||||||||||
Total reclassifications, net of tax of $814, $416, $335 | $ | 1,728 | $ | 723 | $ | 935 | 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.” |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Changes in Carrying Amount of Goodwill by Reporting Units | The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||||||
Semiconductor | System | Wireless | Total | ||||||||||||||
Test | Test | Test | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance at December 31, 2012: | |||||||||||||||||
Goodwill | $ | 260,540 | $ | 148,183 | $ | 349,272 | $ | 757,995 | |||||||||
Accumulated impairment losses | (260,540 | ) | (148,183 | ) | — | (408,723 | ) | ||||||||||
— | — | 349,272 | 349,272 | ||||||||||||||
ZTEC acquisition | — | — | 12,520 | 12,520 | |||||||||||||
Balance at December 31, 2013: | |||||||||||||||||
Goodwill | 260,540 | 148,183 | 361,792 | 770,515 | |||||||||||||
Accumulated impairment losses | (260,540 | ) | (148,183 | ) | — | (408,723 | ) | ||||||||||
— | — | 361,792 | 361,792 | ||||||||||||||
ZTEC adjustment | — | — | 27 | 27 | |||||||||||||
AIT acquisition | — | 10,516 | — | 10,516 | |||||||||||||
Balance at December 31, 2014: | |||||||||||||||||
Goodwill | 260,540 | 158,699 | 361,819 | 781,058 | |||||||||||||
Accumulated impairment losses | (260,540 | ) | (148,183 | ) | (98,897 | ) | (507,620 | ) | |||||||||
$ | — | $ | 10,516 | $ | 262,922 | $ | 273,438 | ||||||||||
Schedule of Amortizable Intangible Assets | Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Useful Life | |||||||||||||||
(in thousands) | |||||||||||||||||
Developed technology | $ | 345,513 | $ | 224,059 | $ | 121,454 | 6.2 years | ||||||||||
Customer relationships | 146,635 | 93,998 | 52,637 | 7.7 years | |||||||||||||
Tradenames and trademarks | 30,414 | 14,205 | 16,209 | 9.0 years | |||||||||||||
Non-competes | 320 | 20 | 300 | 4.0 years | |||||||||||||
Customer backlog | 170 | 170 | — | 0.0 years | |||||||||||||
Total intangible assets | $ | 523,052 | $ | 332,452 | $ | 190,600 | 6.8 years | ||||||||||
December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Net | Weighted | ||||||||||||||
Carrying | Amortization | Carrying | Average | ||||||||||||||
Amount | Amount | Useful Life | |||||||||||||||
(in thousands) | |||||||||||||||||
Developed technology | $ | 342,933 | $ | 174,563 | $ | 168,370 | 6.2 years | ||||||||||
Customer relationships | 141,497 | 76,963 | 64,534 | 8.0 years | |||||||||||||
Tradenames and trademarks | 30,034 | 10,647 | 19,387 | 9.1 years | |||||||||||||
Customer backlog | 1,000 | 1,000 | — | 0.4 years | |||||||||||||
Total intangible assets | $ | 515,464 | $ | 263,173 | $ | 252,291 | 6.9 years | ||||||||||
Schedule of Estimated Intangible Asset Amortization Expense | Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: | ||||||||||||||||
Year | Amortization Expense | ||||||||||||||||
(in thousands) | |||||||||||||||||
2015 | $ | 55,231 | |||||||||||||||
2016 | 55,231 | ||||||||||||||||
2017 | 49,046 | ||||||||||||||||
2018 | 24,405 | ||||||||||||||||
2019 | 4,889 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Non-Cancelable Operating Lease Commitments | The following table reflects Teradyne’s non-cancelable operating lease commitments: | ||||
Non-cancelable | |||||
Lease | |||||
Commitments | |||||
(in thousands) | |||||
2015 | $ | 13,521 | |||
2016 | 11,776 | ||||
2017 | 6,842 | ||||
2018 | 4,535 | ||||
2019 | 4,103 | ||||
Beyond 2019 | 13,214 | ||||
Total | $ | 53,991 |
Net_Income_per_Common_Share_Ta
Net Income per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 from operations: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Net income for basic and diluted net income per share | $ | 81,272 | $ | 164,947 | $ | 217,049 | |||||||
Weighted average common shares-basic | 202,908 | 190,772 | 186,878 | ||||||||||
Effect of dilutive potential common shares: | |||||||||||||
Incremental shares from assumed conversion of convertible notes (1) | 5,013 | 23,341 | 22,367 | ||||||||||
Convertible note hedge warrant shares (2) | 12,562 | 18,795 | 17,433 | ||||||||||
Restricted stock units | 1,092 | 1,127 | 2,291 | ||||||||||
Stock options | 944 | 1,528 | 1,213 | ||||||||||
Employee stock purchase rights | 31 | 36 | 64 | ||||||||||
Dilutive potential common shares | 19,642 | 44,827 | 43,368 | ||||||||||
Weighted average common shares-diluted | 222,550 | 235,599 | 230,246 | ||||||||||
Net income per common share-basic | $ | 0.4 | $ | 0.86 | $ | 1.16 | |||||||
Net income per common share-diluted | $ | 0.37 | $ | 0.7 | $ | 0.94 | |||||||
-1 | Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. | ||||||||||||
-2 | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. Teradyne’s call option on its common stock (convertible note hedge transaction) was excluded from the calculation of diluted shares because the effect was anti-dilutive. See Note G: “Debt” regarding the convertible note hedge transaction. |
Restructuring_and_Other_Tables
Restructuring and Other (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Other | |||||||||||||
Severance | Facility | Total | |||||||||||
and | Exit | ||||||||||||
Benefits | Costs | ||||||||||||
(in thousands) | |||||||||||||
Pre-2012 Activities | |||||||||||||
Balance at December 31, 2012 | — | 1,084 | 1,084 | ||||||||||
Change in estimate | — | (553 | ) | (553 | ) | ||||||||
Cash payments | — | (531 | ) | (531 | ) | ||||||||
Balance at December 31, 2013 | $ | — | $ | — | $ | — | |||||||
2012 Activities | |||||||||||||
Q2 2012 Activities: | |||||||||||||
Provision | $ | 286 | $ | — | $ | 286 | |||||||
Change in estimate | (4 | ) | — | (4 | ) | ||||||||
Cash payments | (282 | ) | — | (282 | ) | ||||||||
Balance at December 31, 2012 | $ | — | $ | — | $ | — | |||||||
Q3 2012 Activity: | |||||||||||||
Provision | $ | 687 | $ | — | $ | 687 | |||||||
Cash payments | (444 | ) | — | (444 | ) | ||||||||
Balance at December 31, 2012 | 243 | — | 243 | ||||||||||
Cash payments | (243 | ) | — | (243 | ) | ||||||||
Balance at December 31, 2013 | $ | — | $ | — | $ | — | |||||||
2013 Activities | |||||||||||||
Q3 2013 Activity: | |||||||||||||
Provision | $ | 1,337 | $ | — | $ | 1,337 | |||||||
Cash payments | (966 | ) | — | (966 | ) | ||||||||
Balance at December 31, 2013 | $ | 371 | $ | — | $ | 371 | |||||||
Cash payments | (371 | ) | — | (371 | ) | ||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||
Q4 2013 Activity: | |||||||||||||
Provision | $ | 600 | $ | — | $ | 600 | |||||||
Cash payments | (486 | ) | — | (486 | ) | ||||||||
Balance at December 31, 2013 | $ | 114 | $ | — | $ | 114 | |||||||
Cash payments | (114 | ) | — | (114 | ) | ||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||
2014 Activities | |||||||||||||
Q2 2014 Activity: | |||||||||||||
Provision | $ | 572 | $ | — | $ | 572 | |||||||
Cash payments | (572 | ) | — | (572 | ) | ||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||
Q3 2014 Activity: | |||||||||||||
Provision | $ | 225 | $ | — | $ | 225 | |||||||
Cash payments | (225 | ) | — | (225 | ) | ||||||||
Balance at December 31, 2014 | $ | — | $ | — | $ | — | |||||||
Q4 2014 Activity: | |||||||||||||
Provision | $ | 826 | $ | — | $ | 826 | |||||||
Cash payments | (432 | ) | — | (432 | ) | ||||||||
Balance at December 31, 2014 | $ | 394 | $ | — | $ | 394 | |||||||
Balance at December 31, 2014 | $ | 394 | $ | — | $ | 394 | |||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans | |||||||||||||||||||||||||||||||||
Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations | The December 31 balances of these defined benefit pension plans assets and obligations are shown below: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Assets and Obligations | |||||||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||||||
Projected benefit obligation: | |||||||||||||||||||||||||||||||||
Beginning of year | $ | 293,912 | $ | 52,182 | $ | 325,118 | $ | 51,380 | |||||||||||||||||||||||||
Service cost | 2,218 | 897 | 2,393 | 1,034 | |||||||||||||||||||||||||||||
Interest cost | 12,875 | 1,837 | 11,318 | 1,948 | |||||||||||||||||||||||||||||
Actuarial loss (gain) | 72,596 | 8,975 | (31,259 | ) | (1,020 | ) | |||||||||||||||||||||||||||
Benefits paid | (13,982 | ) | (1,265 | ) | (13,658 | ) | (2,511 | ) | |||||||||||||||||||||||||
Plan participants’ contributions | — | 88 | — | 95 | |||||||||||||||||||||||||||||
Non-U.S. currency movement | — | (4,504 | ) | — | 1,256 | ||||||||||||||||||||||||||||
End of year | 367,619 | 58,210 | 293,912 | 52,182 | |||||||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||
Fair value of plan assets: | |||||||||||||||||||||||||||||||||
Beginning of year | 256,373 | 25,756 | 278,856 | 24,043 | |||||||||||||||||||||||||||||
Company contributions | 31,753 | 1,168 | 1,738 | 2,522 | |||||||||||||||||||||||||||||
Plan participants’ contributions | — | 88 | — | 95 | |||||||||||||||||||||||||||||
Actual return on plan assets | 41,928 | 5,192 | (10,563 | ) | 1,190 | ||||||||||||||||||||||||||||
Benefits paid | (13,982 | ) | (1,265 | ) | (13,658 | ) | (2,511 | ) | |||||||||||||||||||||||||
Non-U.S. currency movement | — | (1,428 | ) | — | 417 | ||||||||||||||||||||||||||||
End of year | 316,072 | 29,511 | 256,373 | 25,756 | |||||||||||||||||||||||||||||
Funded status | $ | (51,547 | ) | $ | (28,699 | ) | $ | (37,539 | ) | $ | (26,426 | ) | |||||||||||||||||||||
Amounts Recorded Within Statement of Financial Position | The following table provides amounts recorded within the account line items of the statement of financial position as of December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United | Foreign | United | Foreign | ||||||||||||||||||||||||||||||
States | States | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Retirement plans assets | $ | 3,090 | $ | 9,806 | $ | 4,259 | $ | 5,083 | |||||||||||||||||||||||||
Accrued employees’ compensation and withholdings | (2,492 | ) | (906 | ) | (1,781 | ) | (1,143 | ) | |||||||||||||||||||||||||
Retirement plans liabilities | (52,145 | ) | (37,599 | ) | (40,017 | ) | (30,366 | ) | |||||||||||||||||||||||||
Funded status | $ | (51,547 | ) | $ | (28,699 | ) | $ | (37,539 | ) | $ | (26,426 | ) | |||||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income | The following table provides amounts recognized in accumulated other comprehensive income as of December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Prior service cost, before tax | $ | 358 | $ | — | $ | 493 | $ | — | |||||||||||||||||||||||||
Deferred taxes | 429 | — | 380 | — | |||||||||||||||||||||||||||||
Total recognized in other comprehensive income, net of tax | $ | 787 | $ | — | $ | 873 | $ | — | |||||||||||||||||||||||||
Pension Plans with Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 54.6 | $ | 39.5 | $ | 41.8 | $ | 32.4 | |||||||||||||||||||||||||
Accumulated benefit obligation | 48.5 | 32.7 | 37.9 | 27.5 | |||||||||||||||||||||||||||||
Fair value of plan assets | — | 1 | — | 0.9 | |||||||||||||||||||||||||||||
Net Periodic Pension and Postretirement Benefit Costs | For the years ended December 31, 2014, 2013 and 2012, Teradyne’s net periodic postretirement benefit income was comprised of the following: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Components of Net Periodic Postretirement Benefit Income: | |||||||||||||||||||||||||||||||||
Service cost | $ | 59 | $ | 75 | $ | 67 | |||||||||||||||||||||||||||
Interest cost | 335 | 342 | 437 | ||||||||||||||||||||||||||||||
Amortization of prior service cost | (598 | ) | (598 | ) | (599 | ) | |||||||||||||||||||||||||||
Net actuarial (gain) loss | (1,255 | ) | (2,025 | ) | 83 | ||||||||||||||||||||||||||||
Total net periodic postretirement benefit income | (1,459 | ) | (2,206 | ) | (12 | ) | |||||||||||||||||||||||||||
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||||||||||||||||||||||||||||||||
Reversal of amortization items: | |||||||||||||||||||||||||||||||||
Prior service credit | 598 | 598 | 599 | ||||||||||||||||||||||||||||||
Total recognized in other comprehensive income | 598 | 598 | 599 | ||||||||||||||||||||||||||||||
Total recognized in net periodic postretirement benefit income and other comprehensive income | $ | (861 | ) | $ | (1,608 | ) | $ | 587 | |||||||||||||||||||||||||
Weighted Average Assumptions to Determine Net Periodic Pension Cost | Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||
Discount rate | 4.5 | % | 3.8 | % | 3.6 | % | 3.7 | % | 4.2 | % | 4.9 | % | |||||||||||||||||||||
Expected return on plan assets | 5 | 3.4 | 5 | 3.7 | 5 | 3.1 | |||||||||||||||||||||||||||
Salary progression rate | 3 | 3.5 | 3 | 3.5 | 3 | 3.4 | |||||||||||||||||||||||||||
Weighted Average Assumptions to Determine Pension Obligations | Weighted Average Assumptions to Determine Pension Obligations at December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
Discount rate | 3.7 | % | 2.6 | % | 4.5 | % | 3.8 | % | |||||||||||||||||||||||||
Salary progression rate | 2.9 | 3.2 | 3 | 3.5 | |||||||||||||||||||||||||||||
Weighted Average Pension Asset Allocations by Category | Teradyne’s weighted average pension asset allocation at December 31, 2014 and 2013, by asset category is as follows: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
United States | Foreign | United States | Foreign | ||||||||||||||||||||||||||||||
Fixed Income Securities | 83.3 | % | 78.2 | % | 86.7 | % | 77.1 | % | |||||||||||||||||||||||||
Equity Securities | 15.4 | 20.7 | 12.1 | 21.6 | |||||||||||||||||||||||||||||
Other | 1.3 | 1.1 | 1.2 | 1.3 | |||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||
Target Asset Allocation and Index for Each Asset Category | The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows: | ||||||||||||||||||||||||||||||||
Asset Category: | Policy Index: | Target | |||||||||||||||||||||||||||||||
Allocation | |||||||||||||||||||||||||||||||||
Passive and Active Fixed Income | Barclays U.S. Long Government/Credit Bond Index | 85 | % | ||||||||||||||||||||||||||||||
Equity (Large cap) | S&P 500 Stock Index | 10 | |||||||||||||||||||||||||||||||
International Equity | MSCI EAFE Index | 5 | |||||||||||||||||||||||||||||||
Changes in Fair Value of Pension Assets | The fair value of pension plan assets by asset category and by level at December 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
United States | Foreign | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 193,741 | $ | — | $ | 193,741 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
U.S. government securities | — | 65,830 | — | 65,830 | — | — | — | — | |||||||||||||||||||||||||
U.K. government securities | — | — | — | — | — | 22,811 | — | 22,811 | |||||||||||||||||||||||||
Asset backed securities | — | 3,747 | — | 3,747 | — | — | — | — | |||||||||||||||||||||||||
U.S. equity (large cap) | — | 33,970 | — | 33,970 | — | — | — | — | |||||||||||||||||||||||||
International equity | — | 14,631 | — | 14,631 | — | 5,610 | — | 5,610 | |||||||||||||||||||||||||
Guarantee annuity contract | — | 2,990 | — | 2,990 | — | — | — | — | |||||||||||||||||||||||||
Other | — | 65 | — | 65 | — | 957 | — | 957 | |||||||||||||||||||||||||
Cash and cash equivalents | 1,098 | — | — | 1,098 | 133 | — | — | 133 | |||||||||||||||||||||||||
Total | $ | 1,098 | $ | 314,974 | $ | — | $ | 316,072 | $ | 133 | $ | 29,378 | $ | — | $ | 29,511 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
United States | Foreign | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||
Corporate debt securities | $ | — | $ | 156,860 | $ | — | $ | 156,860 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
U.S. government securities | — | 62,555 | — | 62,555 | — | — | — | — | |||||||||||||||||||||||||
U.K. government securities | — | — | — | — | — | 19,610 | — | 19,610 | |||||||||||||||||||||||||
Asset backed securities | — | 2,919 | — | 2,919 | — | — | — | — | |||||||||||||||||||||||||
U.S. equity (large cap) | — | 21,309 | — | 21,309 | — | — | — | — | |||||||||||||||||||||||||
International equity | — | 9,599 | — | 9,599 | — | 5,204 | — | 5,204 | |||||||||||||||||||||||||
Guarantee annuity contract | — | 2,985 | — | 2,985 | — | — | — | — | |||||||||||||||||||||||||
Other | — | — | — | — | — | 906 | — | 906 | |||||||||||||||||||||||||
Cash and cash equivalents | 146 | — | — | 146 | — | 36 | — | 36 | |||||||||||||||||||||||||
Total | $ | 146 | $ | 256,227 | $ | — | $ | 256,373 | $ | — | $ | 25,756 | $ | — | $ | 25,756 | |||||||||||||||||
Expected Future Benefit Payments | Future benefit payments are expected to be paid as follows: | ||||||||||||||||||||||||||||||||
United States | Foreign | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
2015 | $ | 24,407 | $ | 1,018 | |||||||||||||||||||||||||||||
2016 | 23,399 | 862 | |||||||||||||||||||||||||||||||
2017 | 23,129 | 1,069 | |||||||||||||||||||||||||||||||
2018 | 22,455 | 1,076 | |||||||||||||||||||||||||||||||
2019 | 21,826 | 1,230 | |||||||||||||||||||||||||||||||
2020-2024 | 112,546 | 9,349 | |||||||||||||||||||||||||||||||
Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||
Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations | The December 31 balances of the postretirement assets and obligations are shown below: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Assets and Obligations | |||||||||||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||||||
Projected benefit obligation: | |||||||||||||||||||||||||||||||||
Beginning of year | $ | 9,019 | $ | 11,907 | |||||||||||||||||||||||||||||
Service cost | 59 | 75 | |||||||||||||||||||||||||||||||
Interest cost | 335 | 342 | |||||||||||||||||||||||||||||||
Actuarial (gain) loss | (1,255 | ) | (2,025 | ) | |||||||||||||||||||||||||||||
Benefits paid | (996 | ) | (1,280 | ) | |||||||||||||||||||||||||||||
End of year | 7,162 | 9,019 | |||||||||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||
Fair value of plan assets: | |||||||||||||||||||||||||||||||||
Beginning of year | — | — | |||||||||||||||||||||||||||||||
Company contributions | 996 | 1,280 | |||||||||||||||||||||||||||||||
Benefits paid | (996 | ) | (1,280 | ) | |||||||||||||||||||||||||||||
End of year | — | — | |||||||||||||||||||||||||||||||
Funded status | $ | (7,162 | ) | $ | (9,019 | ) | |||||||||||||||||||||||||||
Amounts Recorded Within Statement of Financial Position | The following table provides amounts recorded within the account line items of financial position as of December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Accrued employees’ compensation and withholdings | $ | (780 | ) | $ | (1,042 | ) | |||||||||||||||||||||||||||
Retirement plans liability | (6,382 | ) | (7,977 | ) | |||||||||||||||||||||||||||||
Funded status | $ | (7,162 | ) | $ | (9,019 | ) | |||||||||||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income | The following table provides amounts recognized in accumulated other comprehensive income as of December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Prior service credit, before tax | $ | (2,230 | ) | $ | (2,829 | ) | |||||||||||||||||||||||||||
Deferred taxes | (882 | ) | (664 | ) | |||||||||||||||||||||||||||||
Total recognized in other comprehensive income, net of tax | $ | (3,112 | ) | $ | (3,493 | ) | |||||||||||||||||||||||||||
Net Periodic Pension and Postretirement Benefit Costs | For the years ended December 31, 2014, 2013 and 2012, Teradyne’s net periodic pension cost (income) was comprised of the following: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
United | Foreign | United | Foreign | United | Foreign | ||||||||||||||||||||||||||||
States | States | States | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Components of Net Periodic Pension Cost (Income): | |||||||||||||||||||||||||||||||||
Service cost | $ | 2,218 | $ | 897 | $ | 2,393 | $ | 1,034 | $ | 2,102 | $ | 686 | |||||||||||||||||||||
Interest cost | 12,875 | 1,837 | 11,318 | 1,948 | 13,713 | 1,956 | |||||||||||||||||||||||||||
Expected return on plan assets | (12,500 | ) | (868 | ) | (13,632 | ) | (959 | ) | (15,248 | ) | (698 | ) | |||||||||||||||||||||
Amortization of prior service cost | 135 | — | 164 | — | 232 | — | |||||||||||||||||||||||||||
Net actuarial loss (gain) | 43,168 | 4,651 | (7,063 | ) | (1,252 | ) | 15,458 | 7,779 | |||||||||||||||||||||||||
Total net periodic pension cost (income) | $ | 45,896 | $ | 6,517 | $ | (6,820 | ) | $ | 771 | $ | 16,257 | $ | 9,723 | ||||||||||||||||||||
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||||||||||||||||||||||||||||||||
Reversal of amortization items: | |||||||||||||||||||||||||||||||||
Prior service cost | (135 | ) | — | (164 | ) | — | (232 | ) | — | ||||||||||||||||||||||||
Total recognized in other comprehensive income | (135 | ) | — | (164 | ) | — | (232 | ) | — | ||||||||||||||||||||||||
Total recognized in net periodic pension cost (income) and other comprehensive income | $ | 45,761 | $ | 6,517 | $ | (6,984 | ) | $ | 771 | $ | 16,025 | $ | 9,723 | ||||||||||||||||||||
Weighted Average Assumptions to Determine Net Periodic Pension Cost | Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Discount rate | 4.1 | % | 3.1 | % | 3.7 | % | |||||||||||||||||||||||||||
Initial Health Care Cost Trend Rate | 8 | 8.5 | 9 | ||||||||||||||||||||||||||||||
Ultimate Health Care Cost Trend Rate | 5 | 5 | 5 | ||||||||||||||||||||||||||||||
Year in which Ultimate Health Care Cost Trend Rate is reached | 2020 | 2020 | 2020 | ||||||||||||||||||||||||||||||
Weighted Average Assumptions to Determine Pension Obligations | Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Discount rate | 3.5 | % | 4.1 | % | 3.1 | % | |||||||||||||||||||||||||||
Initial Medical Trend | 7.5 | 8 | 8.5 | ||||||||||||||||||||||||||||||
Ultimate Health Care Trend | 5 | 5 | 5 | ||||||||||||||||||||||||||||||
Medical cost trend rate decrease to ultimate rate in year | 2022 | 2020 | 2020 | ||||||||||||||||||||||||||||||
Expected Future Benefit Payments | Future benefit payments are expected to be paid as follows: | ||||||||||||||||||||||||||||||||
Benefits Payments | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
2015 | $ | 780 | |||||||||||||||||||||||||||||||
2016 | 738 | ||||||||||||||||||||||||||||||||
2017 | 657 | ||||||||||||||||||||||||||||||||
2018 | 599 | ||||||||||||||||||||||||||||||||
2019 | 535 | ||||||||||||||||||||||||||||||||
2020-2024 | 2,045 | ||||||||||||||||||||||||||||||||
One Percentage Point Change in Assumed Health Care Cost Trend Rates for Year | A one percentage point change in the assumed health care cost trend rates for the year ended December 31, 2014, would have the following effects: | ||||||||||||||||||||||||||||||||
1 Percentage | 1 Percentage | ||||||||||||||||||||||||||||||||
Point | Point | ||||||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Effect on total service and interest cost components | $ | 6 | $ | (6 | ) | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligations | 87 | (83 | ) |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions | The fair value was estimated using the Monte Carlo simulation model with the following assumptions: | ||||||||||||||||||||
2014 | |||||||||||||||||||||
Risk-free interest rate | 0.75 | % | |||||||||||||||||||
Teradyne volatility-historical | 36.1 | % | |||||||||||||||||||
Philadelphia Semiconductor Index volatility-historical | 24.6 | % | |||||||||||||||||||
Dividend yield | 1.25 | % | |||||||||||||||||||
Stock Compensation Plan Activity | Stock compensation plan activity for the years 2014, 2013 and 2012 follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Restricted Stock Units: | |||||||||||||||||||||
Non-vested at January 1 | 4,636 | 4,970 | 5,840 | ||||||||||||||||||
Awarded | 1,870 | 2,110 | 1,844 | ||||||||||||||||||
Vested | (1,965 | ) | (2,322 | ) | (2,510 | ) | |||||||||||||||
Forfeited | (190 | ) | (122 | ) | (204 | ) | |||||||||||||||
Non-vested at December 31 | 4,351 | 4,636 | 4,970 | ||||||||||||||||||
Stock Options: | |||||||||||||||||||||
Outstanding at January 1 | 2,706 | 3,841 | 5,335 | ||||||||||||||||||
Granted | 89 | 213 | 151 | ||||||||||||||||||
Exercised | (1,248 | ) | (1,220 | ) | (1,396 | ) | |||||||||||||||
Forfeited | (38 | ) | (104 | ) | (203 | ) | |||||||||||||||
Cancelled | (2 | ) | (24 | ) | (46 | ) | |||||||||||||||
Outstanding at December 31 | 1,507 | 2,706 | 3,841 | ||||||||||||||||||
Vested and expected to vest at December 31 | 1,507 | 2,694 | 3,785 | ||||||||||||||||||
Exercisable at December 31 | 1,089 | 1,814 | 2,004 | ||||||||||||||||||
Share Based Compensation Total Shares Available | Total shares available for the years 2014, 2013 and 2012: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Shares available: | |||||||||||||||||||||
Available for grant at January 1 | 14,213 | 6,414 | 8,205 | ||||||||||||||||||
Options granted | (89 | ) | (213 | ) | (151 | ) | |||||||||||||||
Restricted stock units awarded | (1,870 | ) | (2,110 | ) | (1,844 | ) | |||||||||||||||
Restricted stock units forfeited | 189 | 122 | 204 | ||||||||||||||||||
Additional shares reserved | — | 10,000 | — | ||||||||||||||||||
Available for grant at December 31 | 12,443 | 14,213 | 6,414 | ||||||||||||||||||
Weighted-Average Restricted Stock Unit Award Date Fair Value | Weighted-average restricted stock unit award date fair value information for the years 2014, 2013 and 2012 follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Non-vested at January 1 | $ | 15.56 | $ | 12.72 | $ | 10.01 | |||||||||||||||
Awarded | 19.3 | 16.53 | 16.67 | ||||||||||||||||||
Vested | 14.38 | 10.4 | 9.29 | ||||||||||||||||||
Forfeited | 17.21 | 15.48 | 13.32 | ||||||||||||||||||
Non-vested at December 31 | $ | 17.58 | $ | 15.56 | $ | 12.72 | |||||||||||||||
Restricted Stock Unit Awards Aggregate Intrinsic Value | Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2014, 2013 and 2012 follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Outstanding | $ | 86,113 | $ | 81,680 | $ | 83,949 | |||||||||||||||
Expected to vest | 81,582 | 77,388 | 78,718 | ||||||||||||||||||
Restricted Stock Units Weighted Average Remaining Contractual Terms | Restricted stock units weighted average remaining contractual terms (in years) information at December 31, for the years 2014, 2013 and 2012 follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Outstanding | 1.11 | 1.14 | 1.01 | ||||||||||||||||||
Expected to vest | 1.1 | 1.13 | 1 | ||||||||||||||||||
Weighted Average Stock Options Exercise Price | Weighted average stock options exercise price information for the years 2014, 2013 and 2012 follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Outstanding at January 1 | $ | 6.29 | $ | 4.64 | $ | 4.12 | |||||||||||||||
Options granted | 19.16 | 16.56 | 16.95 | ||||||||||||||||||
Options exercised | 5.34 | 3.28 | 3.87 | ||||||||||||||||||
Options forfeited | 3.59 | 2.57 | 3.11 | ||||||||||||||||||
Options cancelled | 2.21 | 8.05 | 16.21 | ||||||||||||||||||
Outstanding at December 31 | 7.89 | 6.29 | 4.64 | ||||||||||||||||||
Exercisable at December 31 | 5 | 4.55 | 3.7 | ||||||||||||||||||
Stock Option Aggregate Intrinsic Value Information | Stock option aggregate intrinsic value information for the years ended December 31, 2014, 2013 and 2012 follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Exercised | $ | 17,847 | $ | 16,848 | $ | 17,136 | |||||||||||||||
Outstanding | 17,936 | 30,673 | 47,051 | ||||||||||||||||||
Vested and expected to vest | 17,936 | 30,512 | 46,283 | ||||||||||||||||||
Exercisable | 16,101 | 23,707 | 26,436 | ||||||||||||||||||
Stock Options Weighted Average Remaining Contractual Terms | Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2014, 2013 and 2012 follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Outstanding | 4.5 | 4.9 | 5.7 | ||||||||||||||||||
Vested and Expected to vest | 4.5 | 4.9 | 5.6 | ||||||||||||||||||
Exercisable | 4.2 | 4.3 | 4.9 | ||||||||||||||||||
Significant Option Groups Outstanding | Significant option groups outstanding at December 31, 2014 and related weighted average price and remaining contractual life information follow: | ||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range Of Exercise Prices | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average Remaining | Average | Average | |||||||||||||||||||
Contractual Life | Exercise Price | Exercise Price | |||||||||||||||||||
(Years) | |||||||||||||||||||||
(shares in thousands) | |||||||||||||||||||||
$1.48 – $2.58 | 5.07 | 269 | $ | 1.91 | 269 | $ | 1.91 | ||||||||||||||
$2.67 – $2.74 | 4.4 | 462 | 2.69 | 429 | 2.69 | ||||||||||||||||
$3.23 – $16.23 | 3.61 | 370 | 8.47 | 306 | 7.69 | ||||||||||||||||
$16.56 – $19.16 | 4.99 | 406 | 17.25 | 85 | 16.79 | ||||||||||||||||
1,507 | $ | 7.89 | 1,089 | $ | 5 | ||||||||||||||||
Effect to Income (Loss) from Operations for Recording Stock-Based Compensation | The effect to income from operations for recording stock-based compensation for the years ended December 31 was as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues | $ | 3,675 | $ | 4,338 | $ | 6,604 | |||||||||||||||
Engineering and development | 10,146 | 12,452 | 13,589 | ||||||||||||||||||
Selling and administrative | 26,486 | 19,822 | 19,727 | ||||||||||||||||||
Stock-based compensation | 40,307 | 36,612 | 39,920 | ||||||||||||||||||
Income tax benefit | (11,537 | ) | (9,762 | ) | (9,548 | ) | |||||||||||||||
Total stock-based compensation expense after income taxes | $ | 28,771 | $ | 26,850 | $ | 30,372 | |||||||||||||||
Stock Options | |||||||||||||||||||||
Fair Value of Stock Options Using Assumptions | The fair value of the stock options at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected life (years) | 4 | 4 | 3.5 | ||||||||||||||||||
Risk-free interest rate | 1.2 | % | 0.6 | % | 0.4 | % | |||||||||||||||
Volatility-historical | 38.8 | % | 46.8 | % | 56 | % | |||||||||||||||
Dividend yield | 1.25 | % | 0 | % | 0 | % | |||||||||||||||
Stock Purchase Rights | |||||||||||||||||||||
Fair Value of Stock Options Using Assumptions | The fair value of the employees’ purchase rights was estimated using the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||||||||||
2012 | |||||||||||||||||||||
Expected life (years) | 0.5 | ||||||||||||||||||||
Risk-free interest rate | 0.1 | % | |||||||||||||||||||
Volatility-historical | 42.7 | % | |||||||||||||||||||
Dividend yield | 0 | % |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income (loss) Before Income Taxes | The components of income (loss) before income taxes and the provision for income taxes as shown in the consolidated statements of operations were as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Income (loss) before income taxes: | |||||||||||||
U.S. | $ | (151,889 | ) | $ | 79,229 | $ | 112,008 | ||||||
Non-U.S. | 247,265 | 122,693 | 153,968 | ||||||||||
$ | 95,376 | $ | 201,922 | $ | 265,976 | ||||||||
Provision (benefit) for income taxes: | |||||||||||||
Current: | |||||||||||||
U.S. Federal | $ | 5,197 | $ | 18,051 | $ | 22,695 | |||||||
Non-U.S. | 28,157 | 22,509 | 18,261 | ||||||||||
State | 678 | (269 | ) | (12 | ) | ||||||||
34,032 | 40,291 | 40,944 | |||||||||||
Deferred: | |||||||||||||
U.S. Federal | (20,449 | ) | (1,692 | ) | 8,158 | ||||||||
Non-U.S. | (404 | ) | (1,386 | ) | 5,997 | ||||||||
State | 925 | (238 | ) | (6,172 | ) | ||||||||
(19,928 | ) | (3,316 | ) | 7,983 | |||||||||
Total provision for income taxes: | $ | 14,104 | $ | 36,975 | $ | 48,927 | |||||||
Reconciliation of Effective Tax Rate | A reconciliation of the effective tax rate for the years 2014, 2013 and 2012 follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. statutory federal tax rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign taxes | (58.1 | ) | (11.4 | ) | (10.5 | ) | |||||||
Goodwill impairment | 36.3 | — | — | ||||||||||
U.S. research and development credit | (7.9 | ) | (7.2 | ) | — | ||||||||
Uncertain tax positions | 7.9 | 4.2 | (1.2 | ) | |||||||||
Other permanent items | 3.4 | (0.1 | ) | (2.8 | ) | ||||||||
Valuation allowance | — | 0.4 | (0.5 | ) | |||||||||
State income taxes, net of federal tax benefit | (0.1 | ) | 0.1 | (1.7 | ) | ||||||||
Other, net | (1.7 | ) | (2.7 | ) | 0.1 | ||||||||
14.8 | % | 18.3 | % | 18.4 | % | ||||||||
Deferred Tax Assets (Liabilities) | Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2014 and 2013 were as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 10,989 | $ | 14,679 | |||||||||
Tax credits | 50,554 | 65,210 | |||||||||||
Pension liability | 30,036 | 22,966 | |||||||||||
Inventory valuations | 29,105 | 38,452 | |||||||||||
Accruals | 23,323 | 17,828 | |||||||||||
Equity compensation | 11,131 | 10,498 | |||||||||||
Deferred revenue | 10,242 | 12,379 | |||||||||||
Vacation accrual | 7,425 | 7,291 | |||||||||||
Other | 1,725 | 2,613 | |||||||||||
Gross deferred tax assets | 174,530 | 191,916 | |||||||||||
Less: valuation allowance | (41,737 | ) | (40,386 | ) | |||||||||
Total deferred tax assets | 132,793 | 151,530 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Marketable securities | (1,599 | ) | (794 | ) | |||||||||
Intangible assets | (64,871 | ) | (89,268 | ) | |||||||||
Excess of tax over book depreciation | (24,905 | ) | (24,458 | ) | |||||||||
Total deferred tax liabilities | (91,375 | ) | (114,520 | ) | |||||||||
Net deferred assets | $ | 41,418 | $ | 37,010 | |||||||||
Operating Loss Carryforwards | At December 31, 2014, Teradyne had operating loss carryforwards that expire in the following years: | ||||||||||||
U.S. Federal | State | Foreign | |||||||||||
Operating Loss | Operating Loss | Operating Loss | |||||||||||
Carryforwards | Carryforwards | Carryforwards | |||||||||||
(in thousands) | |||||||||||||
2015 | $ | — | $ | 1 | $ | — | |||||||
2016 | — | 56 | — | ||||||||||
2017 | — | 738 | — | ||||||||||
2018 | — | 679 | — | ||||||||||
2019 | — | 133 | — | ||||||||||
2020-2025 | 10,698 | 2,686 | — | ||||||||||
2026-2028 | — | 676 | — | ||||||||||
Beyond 2028 | 806 | 3,055 | 115 | ||||||||||
Non-expiring | — | — | 8,460 | ||||||||||
Total | $ | 11,504 | $ | 8,024 | $ | 8,575 | |||||||
Unrecognized Tax Benefits | Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Beginning balance, as of January 1 | $ | 21,203 | $ | 18,666 | $ | 19,391 | |||||||
Additions: | |||||||||||||
Tax positions for current year | 8,414 | 4,586 | 459 | ||||||||||
Tax positions for prior years | 3,781 | 2,112 | 2,259 | ||||||||||
Reductions: | |||||||||||||
Tax positions for prior years | (2,480 | ) | (4,161 | ) | (3,443 | ) | |||||||
Settlements with tax authorities | (500 | ) | — | — | |||||||||
Ending Balance as of December 31 | $ | 30,418 | $ | 21,203 | $ | 18,666 | |||||||
Operating_Segment_Geographic_a1
Operating Segment, Geographic and Significant Customer Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Segment Information | Segment information for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||||||||||
Semiconductor | Wireless | System Test | Corporate | Consolidated | |||||||||||||||||
Test | Test | And | |||||||||||||||||||
Eliminations | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
2014 | |||||||||||||||||||||
Revenues | $ | 1,300,790 | $ | 184,535 | $ | 162,499 | $ | — | $ | 1,647,824 | |||||||||||
Income (Loss) before taxes (1)(2) | 255,803 | (116,196 | ) | 12,116 | (56,347 | ) | 95,376 | ||||||||||||||
Total assets (3) | 580,501 | 478,974 | 95,105 | 1,383,940 | 2,538,520 | ||||||||||||||||
Property additions | 159,783 | 3,730 | 5,469 | — | 168,982 | ||||||||||||||||
Depreciation and amortization expense | 84,990 | 53,308 | 5,399 | 8,847 | 152,544 | ||||||||||||||||
2013 | |||||||||||||||||||||
Revenues | $ | 1,023,041 | $ | 251,871 | $ | 153,021 | $ | — | $ | 1,427,933 | |||||||||||
Income before taxes (1)(2) | 153,797 | 23,153 | 3,115 | 21,857 | 201,922 | ||||||||||||||||
Total assets (3) | 632,840 | 645,001 | 79,983 | 1,272,000 | 2,629,824 | ||||||||||||||||
Property additions | 94,303 | 5,358 | 7,070 | — | 106,731 | ||||||||||||||||
Depreciation and amortization expense | 72,472 | 51,675 | 5,180 | 21,360 | 150,687 | ||||||||||||||||
2012 | |||||||||||||||||||||
Revenues | $ | 1,127,726 | $ | 286,355 | $ | 242,669 | $ | — | $ | 1,656,750 | |||||||||||
Income (Loss) before taxes (1)(2) | 185,985 | 83,077 | 34,164 | (37,250 | ) | 265,976 | |||||||||||||||
Total assets (3) | 604,127 | 672,048 | 71,116 | 1,082,054 | 2,429,345 | ||||||||||||||||
Property additions | 105,074 | 7,608 | 6,398 | — | 119,080 | ||||||||||||||||
Depreciation and amortization expense | 73,537 | 50,362 | 4,549 | 17,066 | 145,514 | ||||||||||||||||
-1 | Interest income, interest expense, other (income) expense, net and pension and postretirement plans actuarial gains and losses are included in Corporate and Eliminations. | ||||||||||||||||||||
-2 | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and goodwill impairment charges. | ||||||||||||||||||||
-3 | Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. | ||||||||||||||||||||
Revenues by Country | Information as to Teradyne’s revenues by country is as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues from customers (1): | |||||||||||||||||||||
Taiwan | $ | 495,942 | $ | 265,472 | $ | 299,359 | |||||||||||||||
China | 292,145 | 323,564 | 351,335 | ||||||||||||||||||
United States | 213,104 | 230,178 | 238,280 | ||||||||||||||||||
Korea | 145,608 | 119,286 | 216,445 | ||||||||||||||||||
Singapore | 119,421 | 114,765 | 101,502 | ||||||||||||||||||
Europe | 111,043 | 90,797 | 77,099 | ||||||||||||||||||
Malaysia | 83,910 | 86,900 | 69,064 | ||||||||||||||||||
Philippines | 68,662 | 63,392 | 111,571 | ||||||||||||||||||
Japan | 63,761 | 81,806 | 100,807 | ||||||||||||||||||
Thailand | 44,117 | 32,209 | 80,518 | ||||||||||||||||||
Rest of the World | 10,111 | 19,564 | 10,770 | ||||||||||||||||||
$ | 1,647,824 | $ | 1,427,933 | $ | 1,656,750 | ||||||||||||||||
-1 | Revenues attributable to a country are based on location of customer site. | ||||||||||||||||||||
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area: | ||||||||||||||||||||
United | Foreign(1) | Total | |||||||||||||||||||
States | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
December 31, 2014 | $ | 206,334 | $ | 122,704 | $ | 329,038 | |||||||||||||||
December 31, 2013 | $ | 211,455 | $ | 63,781 | $ | 275,236 | |||||||||||||||
-1 | As of December 31, 2014 and 2013, long-lived assets attributable to Singapore were $99.2 million and $42.5 million, respectively. | ||||||||||||||||||||
Semiconductor Test | |||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Charges | Included in the Semiconductor Test segment are charges and credits in the following accounts: | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—inventory charge (1) | $ | 14,389 | $ | 5,218 | $ | 18,433 | |||||||||||||||
Restructuring and other | 490 | 1,016 | 386 | ||||||||||||||||||
-1 | Included in the cost of revenues for the years ended December 31, 2014 and 2012 are charges for excess inventory provisions recorded primarily as a result of product transition. | ||||||||||||||||||||
System Test | |||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Charges | Included in the System Test segment are charges and credits in the following accounts: | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—inventory charge | $ | 2,125 | $ | 4,168 | $ | 4,271 | |||||||||||||||
Restructuring and other | 742 | 1,431 | 451 | ||||||||||||||||||
Wireless Test | |||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Charges | Included in the Wireless Test segment are charges and credits in the following accounts: | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Cost of revenues—inventory step-up (2) | $ | — | $ | — | $ | 6,089 | |||||||||||||||
Cost of revenues—inventory charge | 5,679 | 7,206 | 4,145 | ||||||||||||||||||
Restructuring and other | 565 | 82 | 236 | ||||||||||||||||||
Goodwill impairment charge | 98,897 | — | — | ||||||||||||||||||
-2 | Included in the cost of revenues for the years ended December 31, 2012 is the cost for purchase accounting inventory step-up. | ||||||||||||||||||||
Corporate And Eliminations | |||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Charges | Included in the Corporate and Eliminations segment are charges and credits in the following accounts: | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Restructuring and other | $ | (432 | ) | $ | (449 | ) | $ | (8,794 | ) |
Supplementary_Information_Tabl
Supplementary Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Consolidated Quarterly Statements of Operations | The following sets forth certain unaudited consolidated quarterly statements of operations data for each of Teradyne’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of Teradyne and the notes thereto included elsewhere herein. | ||||||||||||||||
2014 | |||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
-1 | (1)(2) | (1)(3)(4) | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Revenues: | |||||||||||||||||
Products | $ | 255,386 | $ | 452,488 | $ | 402,987 | $ | 253,162 | |||||||||
Services | 65,624 | 73,079 | 75,023 | 70,074 | |||||||||||||
Total revenues | 321,010 | 525,567 | 478,010 | 323,236 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Cost of products | 124,448 | 202,411 | 182,591 | 131,337 | |||||||||||||
Cost of services | 29,515 | 32,743 | 34,298 | 31,673 | |||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 153,963 | 235,154 | 216,889 | 163,010 | |||||||||||||
Gross profit | 167,047 | 290,413 | 261,121 | 160,226 | |||||||||||||
Operating expenses: | |||||||||||||||||
Engineering and development | 67,085 | 73,414 | 71,953 | 79,188 | |||||||||||||
Selling and administrative | 78,003 | 77,489 | 73,064 | 91,157 | |||||||||||||
Goodwill impairment | — | — | — | 98,897 | |||||||||||||
Acquired intangible assets amortization | 18,271 | 18,271 | 18,271 | 15,957 | |||||||||||||
Restructuring and other | — | 572 | (405 | ) | 1,198 | ||||||||||||
Total operating expenses | 163,359 | 169,746 | 162,883 | 286,397 | |||||||||||||
Income (loss) from operations | 3,688 | 120,667 | 98,238 | (126,171 | ) | ||||||||||||
Non-operating (income) expenses: | |||||||||||||||||
Interest income | (1,036 | ) | (1,266 | ) | (1,922 | ) | (2,035 | ) | |||||||||
Interest expense | 6,417 | 159 | 144 | 214 | |||||||||||||
Other (income) expense, net | 180 | 382 | (654 | ) | 463 | ||||||||||||
(Loss) income before income taxes | (1,873 | ) | 121,392 | 100,670 | (124,813 | ) | |||||||||||
(Benefit) provision for income taxes | (2,802 | ) | 20,187 | 17,721 | (21,002 | ) | |||||||||||
Net income (loss) | $ | 929 | $ | 101,205 | $ | 82,949 | $ | (103,811 | ) | ||||||||
Net income (loss) per common share—basic | $ | 0 | $ | 0.52 | $ | 0.4 | $ | (0.48 | ) | ||||||||
Net income (loss) per common share—diluted | $ | 0 | $ | 0.47 | $ | 0.38 | $ | (0.48 | ) | ||||||||
Cash dividend declared per common share | $ | 0 | $ | 0.06 | $ | 0.06 | $ | 0.06 | |||||||||
-1 | Dividends declared by Teradyne’s Board of Directors were paid in each of the second, third and fourth quarters of 2014. | ||||||||||||||||
-2 | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | ||||||||||||||||
-3 | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: “Accounting Policies” for a discussion of our accounting policy. | ||||||||||||||||
-4 | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | ||||||||||||||||
2013 | |||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||||
(1)(2) | |||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Revenues: | |||||||||||||||||
Products | $ | 214,300 | $ | 363,087 | $ | 365,825 | $ | 211,710 | |||||||||
Services | 66,067 | 65,802 | 67,551 | 73,591 | |||||||||||||
Total revenues | 280,367 | 428,889 | 433,376 | 285,301 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Cost of products | 96,793 | 158,411 | 150,365 | 93,461 | |||||||||||||
Cost of services | 30,157 | 29,245 | 28,717 | 31,983 | |||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 126,950 | 187,656 | 179,082 | 125,444 | |||||||||||||
Gross profit | 153,417 | 241,233 | 254,294 | 159,857 | |||||||||||||
Operating expenses: | |||||||||||||||||
Engineering and development | 62,751 | 67,773 | 68,918 | 64,613 | |||||||||||||
Selling and administrative | 67,890 | 69,230 | 72,917 | 69,523 | |||||||||||||
Acquired intangible assets amortization | 18,036 | 18,063 | 18,064 | 18,284 | |||||||||||||
Restructuring and other | 332 | 259 | 889 | 600 | |||||||||||||
Total operating expenses | 149,009 | 155,325 | 160,788 | 153,020 | |||||||||||||
Income from operations | 4,408 | 85,908 | 93,506 | 6,837 | |||||||||||||
Non-operating (income) expenses: | |||||||||||||||||
Interest income | (1,072 | ) | (903 | ) | (948 | ) | (1,206 | ) | |||||||||
Interest expense | 6,403 | 6,435 | 6,488 | 6,771 | |||||||||||||
Other (income) expense, net | 503 | 19 | 414 | (34,168 | ) | ||||||||||||
(Loss) income from operations before income taxes | (1,426 | ) | 80,357 | 87,552 | 35,439 | ||||||||||||
(Benefit) provision for income taxes | (8,015 | ) | 13,801 | 18,093 | 13,096 | ||||||||||||
Net income | $ | 6,589 | $ | 66,556 | $ | 69,459 | $ | 22,343 | |||||||||
Net income per common share—basic | $ | 0.03 | $ | 0.35 | $ | 0.36 | $ | 0.12 | |||||||||
Net income per common share—diluted | $ | 0.03 | $ | 0.28 | $ | 0.29 | $ | 0.09 | |||||||||
Cash dividend declared per common share | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||
-1 | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | ||||||||||||||||
-2 | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: “Accounting Policies” for a discussion of our accounting policy. |
Deferred_Revenue_and_Customer_
Deferred Revenue and Customer Advances (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Deferred Revenue Arrangement | ||||
Extended warranty | $43,300 | $34,909 | $28,044 | $14,030 |
Equipment maintenance and training | 30,500 | 22,455 | ||
Customer advances | 8,875 | 4,825 | ||
Undelivered elements | 8,857 | 6,971 | ||
Total deferred revenue and customer advances | $91,532 | $69,160 |
Warranty_Accrual_Included_in_O
Warranty Accrual Included in Other Accrued Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Accrued Liabilities [Line Items] | |||
Balance at beginning of period | $6,660 | $9,786 | $8,153 |
Accruals for warranties issued during the period | 15,406 | 10,574 | 14,704 |
Accruals related to pre-existing warranties | -2,008 | -3,534 | 877 |
Settlements made during the period | -11,116 | -10,166 | -13,948 |
Balance at end of period | $8,942 | $6,660 | $9,786 |
Extended_Product_Warranty_Incl
Extended Product Warranty Included in Short and Long-Term Deferred Revenue and Customer Advances (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Accrued Liabilities [Line Items] | |||
Balance at beginning of period | $34,909 | $28,044 | $14,030 |
Deferral of new extended warranty revenue | 29,519 | 20,630 | 22,704 |
Recognition of extended warranty deferred revenue | -21,128 | -13,765 | -8,690 |
Balance at end of period | $43,300 | $34,909 | $28,044 |
Schedule_of_Prepayments_Detail
Schedule of Prepayments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid And Other Current Assets [Line Items] | ||
Contract manufacturer prepayments | $65,972 | $115,388 |
Prepaid taxes | 11,462 | 3,281 |
Prepaid maintenance and other services | 7,343 | 6,538 |
Other prepayments | 11,042 | 11,167 |
Total prepayments | $95,819 | $136,374 |
Useful_Lives_of_Assets_Detail
Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 40 years |
Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 5 years |
Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 10 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Useful lives, description | Lesser of lease term or 10 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 10 years |
Test Systems Manufactured Internally | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 6 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 5 years |
Accounting_Policies_Additional
Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary Of Significant Accounting Policies [Line Items] | |||
Depreciation over life to cost of revenues and selling and administrative expenses, years | 6 years | ||
Net book value of internally manufactured test systems sold | $9.70 | $9 | $6 |
Advertising costs | 1.9 | 1.7 | 1.6 |
Gains and losses on foreign exchange contracts | $0.90 | $6.90 | $4.50 |
Exercise price | $5.48 | ||
Call option, shares | 34.7 | ||
Warrant price | $7.67 | ||
Percentage of common stock price | 85.00% | 85.00% | 85.00% |
Stock options term | 7 years | ||
Test Systems Leased By Customers | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Depreciation over estimated useful life, years | 4 years | ||
Stock Options | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of common stock price | 100.00% | ||
Period of stock granted to employees and executive officers vest in equal annual installments | 4 years |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 2 Months Ended | ||||||||||||||||||
Oct. 31, 2014 | Oct. 25, 2013 | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Business acquisition, Contingent consideration discount rate | 4.70% | 5.20% | ||||||||||||||||||||
Goodwill | $273,438,000 | $361,792,000 | $273,438,000 | $361,792,000 | $349,272,000 | $273,438,000 | $361,792,000 | |||||||||||||||
Total net revenues | 323,236,000 | [1],[2],[3] | 478,010,000 | [1],[4] | 525,567,000 | [1] | 321,010,000 | 285,301,000 | [5],[6] | 433,376,000 | 428,889,000 | 280,367,000 | 1,647,824,000 | [7] | 1,427,933,000 | [7] | 1,656,750,000 | [7] | ||||
Income (loss) from operations before taxes | -124,813,000 | [1],[2],[3] | 100,670,000 | [1],[4] | 121,392,000 | [1] | -1,873,000 | 35,439,000 | [5],[6] | 87,552,000 | 80,357,000 | -1,426,000 | 95,376,000 | [8],[9] | 201,922,000 | [8],[9] | 265,976,000 | [8],[9] | ||||
Avionics Interface Technologies, LLC | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Total purchase price | 21,200,000 | |||||||||||||||||||||
Cash paid to acquire outstanding common and preferred stock | 19,400,000 | |||||||||||||||||||||
Contingent consideration | 1,800,000 | |||||||||||||||||||||
Goodwill | 10,516,000 | 10,516,000 | 10,516,000 | 10,516,000 | ||||||||||||||||||
Total net revenues | 600,000 | |||||||||||||||||||||
Income (loss) from operations before taxes | -800,000 | |||||||||||||||||||||
Avionics Interface Technologies, LLC | Maximum | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Contingent consideration | 2,100,000 | |||||||||||||||||||||
ZTEC Instruments, Inc. | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Total purchase price | 17,300,000 | |||||||||||||||||||||
Cash paid to acquire outstanding common and preferred stock | 15,100,000 | |||||||||||||||||||||
Contingent consideration | 2,200,000 | |||||||||||||||||||||
Goodwill | 12,520,000 | |||||||||||||||||||||
Total net revenues | 400,000 | |||||||||||||||||||||
Income (loss) from operations before taxes | -800,000 | |||||||||||||||||||||
ZTEC Instruments, Inc. | Maximum | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Contingent consideration | 5,000,000 | |||||||||||||||||||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | |||||||||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | |||||||||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | |||||||||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | |||||||||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||||||
[7] | Revenues attributable to a country are based on location of customer site. | |||||||||||||||||||||
[8] | Interest income, interest expense, other (income) expense, net and pension and postretirement plans actuarial gains and losses are included in Corporate and Eliminations. | |||||||||||||||||||||
[9] | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and goodwill impairment charges. |
Allocation_of_Purchase_Price_D
Allocation of Purchase Price (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | Oct. 25, 2013 |
In Thousands, unless otherwise specified | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $273,438 | $361,792 | $349,272 | ||
Avionics Interface Technologies, LLC | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 10,516 | 10,516 | |||
Intangible assets | 9,100 | 9,080 | |||
Other current assets | 2,452 | ||||
Non-current assets | 359 | ||||
Accounts payable and current liabilities | -1,164 | ||||
Total purchase price | 21,243 | ||||
ZTEC Instruments, Inc. | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 12,520 | ||||
Intangible assets | 4,900 | 4,870 | |||
Cash, cash equivalents and short term marketable securities | 79 | ||||
Other current assets | 1,612 | ||||
Non-current assets | 1,757 | ||||
Accounts payable and current liabilities | -1,811 | ||||
Long-term deferred tax liabilities | -1,719 | ||||
Total purchase price | $17,308 |
Lists_of_Intangible_Assets_and
Lists of Intangible Assets and Their Estimated Useful Lives at Acquisition Date (Detail) (USD $) | 0 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 25, 2013 |
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $9,080 | |
Avionics Interface Technologies, LLC | ||
Business Acquisition [Line Items] | ||
Total intangible assets, estimated useful life, years | 4 years 9 months 18 days | |
ZTEC Instruments, Inc. | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | 4,870 | |
Total intangible assets, estimated useful life, years | 5 years 3 months 18 days | |
Developed technology | Avionics Interface Technologies, LLC | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | 2,580 | |
Total intangible assets, estimated useful life, years | 4 years 9 months 18 days | |
Developed technology | ZTEC Instruments, Inc. | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | 3,500 | |
Total intangible assets, estimated useful life, years | 5 years | |
Customer Relationships | Avionics Interface Technologies, LLC | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | 5,630 | |
Total intangible assets, estimated useful life, years | 5 years | |
Customer Relationships | ZTEC Instruments, Inc. | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | 1,370 | |
Total intangible assets, estimated useful life, years | 6 years | |
Trade Names | Avionics Interface Technologies, LLC | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | 380 | |
Total intangible assets, estimated useful life, years | 5 years | |
Noncompete Agreements | Avionics Interface Technologies, LLC | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | 320 | |
Total intangible assets, estimated useful life, years | 4 years | |
Customer backlog | Avionics Interface Technologies, LLC | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $170 | |
Total intangible assets, estimated useful life, years | 3 months 18 days |
Pro_Forma_Results_Under_Acquis
Pro Forma Results Under Acquisition (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Avionics Interface Technologies, LLC | |||
Business Acquisition, Pro Forma Information [Line Items] | |||
Revenues | $1,655,038 | $1,434,699 | |
Net income | 82,169 | 164,087 | |
Net income per common share, basic | $0.40 | $0.86 | |
Net income per common share, diluted | $0.37 | $0.70 | |
ZTEC Instruments, Inc. | |||
Business Acquisition, Pro Forma Information [Line Items] | |||
Revenues | 1,431,270 | 1,660,758 | |
Net income | $163,394 | $215,654 | |
Net income per common share, basic | $0.86 | $1.15 | |
Net income per common share, diluted | $0.69 | $0.94 |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land | $16,561 | $16,561 |
Buildings | 108,671 | 107,632 |
Machinery and equipment | 659,743 | 600,848 |
Furniture and fixtures, and software | 77,566 | 81,994 |
Leasehold improvements | 31,981 | 30,757 |
Construction in progress | 2,508 | 622 |
Property, Plant and Equipment, Gross, Total | 897,030 | 838,414 |
Less: accumulated depreciation | 567,992 | 563,178 |
Net property, plant and equipment | $329,038 | $275,236 |
Property_Plant_and_Equipment_A
Property Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation of property, plant and equipment | $73,390,000 | $57,317,000 | $55,049,000 |
Machinery and equipment | 659,743,000 | 600,848,000 | |
Accumulated depreciation | 567,992,000 | 563,178,000 | |
Minimum non-cancelable future lease payments for year 2015 | 13,521,000 | ||
Test Systems Leased By Customers | |||
Property, Plant and Equipment [Line Items] | |||
Machinery and equipment | 66,900,000 | ||
Accumulated depreciation | 10,100,000 | ||
Minimum non-cancelable future lease payments for year 2015 | 13,900,000 | ||
Minimum non-cancelable future lease payments beyond 2015 | $0 |
Financial_Instruments_and_Deri
Financial Instruments and Derivatives - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||
Nov. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 27, 2015 | ||
Financial Instruments and Fair Value [Line Items] | |||||||
Available-for-sale securities, realized loss | $0 | $0 | $0 | ||||
Available-for-sale securities, realized gain | 2,400,000 | 1,000,000 | 1,400,000 | ||||
Fair market value of investments with unrealized losses | 583,076,000 | 583,076,000 | 241,760,000 | ||||
Fair market value of investments with unrealized losses greater than one year | 2,300,000 | 2,300,000 | 900,000 | ||||
Fair market value of investments with unrealized losses less than one year | 580,800,000 | 580,800,000 | 240,900,000 | ||||
Goodwill, carrying value | 781,058,000 | 781,058,000 | 770,515,000 | 757,995,000 | |||
Goodwill, impairment loss | 98,897,000 | [1],[2],[3] | 98,897,000 | ||||
Gains (losses) on foreign currency transactions | -900,000 | -6,900,000 | -4,500,000 | ||||
Realized (losses) gains on foreign currency contracts | -200,000 | 5,900,000 | 4,000,000 | ||||
Proceeds from sale of equity interest | 34,200,000 | 34,212,000 | |||||
Fair Value, Measurements, Nonrecurring | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Goodwill, carrying value | 372,300,000 | 372,300,000 | |||||
Goodwill, fair value | 273,438,000 | 273,438,000 | |||||
Goodwill, impairment loss | 98,897,000 | 98,897,000 | |||||
Subsequent Event | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Cash proceeds from escrow account | 4,800,000 | ||||||
Foreign Currency Forward Contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Gains (losses) on foreign currency transactions | ($100,000) | $200,000 | |||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | ||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | ||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. |
Schedule_of_Fair_Value_of_Fina
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $1,004,576 | $857,960 |
U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 402,154 | 467,895 |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 258,502 | 202,588 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 140,638 | 105,598 |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 141,467 | 65,387 |
Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 49,036 | 3,258 |
Equity And Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 12,333 | 13,156 |
Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 446 | 78 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 1,199,598 | |
Derivatives assets | 153 | |
Total including derivatives | 1,298,832 | 1,199,751 |
Contingent consideration | 3,350 | 2,230 |
Liabilities | 3,499 | 2,230 |
Derivatives liabilities | 149 | |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and Cash equivalents | 111,471 | 117,242 |
Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and Cash equivalents | 182,785 | 224,396 |
Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 402,154 | 467,895 |
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 258,502 | 202,588 |
Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 140,638 | 105,598 |
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 141,467 | 65,387 |
Fair Value, Measurements, Recurring | Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 49,036 | 3,258 |
Fair Value, Measurements, Recurring | Equity And Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 12,333 | 13,156 |
Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 446 | 78 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 296,263 | |
Total including derivatives | 284,022 | 296,263 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and Cash equivalents | 111,471 | 117,242 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and Cash equivalents | 160,218 | 165,865 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Equity And Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 12,333 | 13,156 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 903,335 | |
Derivatives assets | 153 | |
Total including derivatives | 1,014,810 | 903,488 |
Liabilities | 149 | |
Derivatives liabilities | 149 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and Cash equivalents | 22,567 | 58,531 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 402,154 | 467,895 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 258,502 | 202,588 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 140,638 | 105,598 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 141,467 | 65,387 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 49,036 | 3,258 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 446 | 78 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration | 3,350 | 2,230 |
Liabilities | $3,350 | $2,230 |
Schedule_of_Reported_Financial
Schedule of Reported Financial Assets and Liabilities (Detail) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $1,298,832 | $1,199,751 |
Liabilities | 3,499 | 2,230 |
Other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 153 | |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 1,899 | |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 294,256 | 341,638 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 533,787 | 586,882 |
Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 470,789 | 271,078 |
Long-term other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 1,600 | 2,230 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 284,022 | 296,263 |
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 | 271,689 | 283,107 |
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 | 12,333 | 13,156 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 1,014,810 | 903,488 |
Liabilities | 149 | |
Significant Other Observable Inputs (Level 2) | Other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 153 | |
Significant Other Observable Inputs (Level 2) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 149 | |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 22,567 | 58,531 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 533,787 | 586,882 |
Significant Other Observable Inputs (Level 2) | Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 458,456 | 257,922 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 3,350 | 2,230 |
Significant Unobservable Inputs (Level 3) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 1,750 | |
Significant Unobservable Inputs (Level 3) | Long-term other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | $1,600 | $2,230 |
Schedule_of_Changes_in_Fair_Va
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Measurements | ||
Beginning Balance | $2,230 | $388 |
Fair value adjustment | -630 | |
Payments | -388 | |
Ending Balance | 3,350 | 2,230 |
ZTEC Instruments, Inc. | ||
Fair Value Measurements | ||
Acquisition | 2,230 | |
Avionics Interface Technologies, LLC | ||
Fair Value Measurements | ||
Acquisition | $1,750 |
Quantitative_Information_Assoc
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 25, 2013 | Dec. 31, 2014 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 4.70% | 5.20% | |
Significant Unobservable Inputs (Level 3) | Income Approach Valuation Technique | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | 1,600 | ||
Revenue Earnout | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Target achievement, probability | 0.00% | ||
Customer Orders | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Target achievement, probability | 40.00% | ||
Discount rate | 5.20% |
Schedule_of_Carrying_Amounts_a
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 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 | $294,256 | $341,638 | $338,920 | $573,736 | ||
Marketable securities, Carrying Value | 1,004,576 | 857,960 | ||||
Convertible debt, Carrying Value | 185,708 | |||||
Japan loan, Carrying Value | 10,000 | |||||
Carrying Value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Cash and cash equivalents, Carrying Value | 294,256 | 341,638 | ||||
Marketable securities, Carrying Value | 1,004,576 | 857,960 | ||||
Convertible debt, Carrying Value | 185,708 | [1] | ||||
Japan loan, Carrying Value | 955 | |||||
Fair Value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||||||
Cash and cash equivalents, Fair Value | 294,256 | 341,638 | ||||
Marketable securities, Carrying Value | 1,004,576 | 857,960 | ||||
Convertible debt, Fair Value | 611,433 | [1] | ||||
Japan loan, Fair Value | $955 | |||||
[1] | The carrying value represented the bifurcated debt component only, while the fair value was based on quoted market prices for the convertible note which included the equity conversion feature. |
Schedule_of_Available_for_Sale
Schedule of Available for Sale Marketable Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $1,000,625 | $855,786 |
Available-for-sale marketable securities, Unrealized Gain | 4,818 | 3,689 |
Available-for-sale marketable securities, Unrealized (Loss) | -867 | -1,515 |
Available-for-sale marketable securities, Fair Market Value | 1,004,576 | 857,960 |
Available-for-sale marketable securities, Fair Market Value of Investment with Unrealized Losses | 583,076 | 241,760 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 402,197 | 468,084 |
Available-for-sale marketable securities, Unrealized Gain | 362 | 94 |
Available-for-sale marketable securities, Unrealized (Loss) | -405 | -283 |
Available-for-sale marketable securities, Fair Market Value | 402,154 | 467,895 |
Available-for-sale marketable securities, Fair Market Value of Investment with Unrealized Losses | 317,771 | 108,212 |
U.S. Government Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 258,452 | 202,573 |
Available-for-sale marketable securities, Unrealized Gain | 135 | 75 |
Available-for-sale marketable securities, Unrealized (Loss) | -85 | -60 |
Available-for-sale marketable securities, Fair Market Value | 258,502 | 202,588 |
Available-for-sale marketable securities, Fair Market Value of Investment with Unrealized Losses | 104,642 | 84,498 |
Commercial Paper | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 140,616 | 105,583 |
Available-for-sale marketable securities, Unrealized Gain | 26 | 16 |
Available-for-sale marketable securities, Unrealized (Loss) | -4 | -1 |
Available-for-sale marketable securities, Fair Market Value | 140,638 | 105,598 |
Available-for-sale marketable securities, Fair Market Value of Investment with Unrealized Losses | 41,747 | 7,993 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 139,374 | 65,747 |
Available-for-sale marketable securities, Unrealized Gain | 2,414 | 762 |
Available-for-sale marketable securities, Unrealized (Loss) | -321 | -1,122 |
Available-for-sale marketable securities, Fair Market Value | 141,467 | 65,387 |
Available-for-sale marketable securities, Fair Market Value of Investment with Unrealized Losses | 96,998 | 40,355 |
Equity And Debt Mutual Funds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 10,492 | 10,463 |
Available-for-sale marketable securities, Unrealized Gain | 1,870 | 2,742 |
Available-for-sale marketable securities, Unrealized (Loss) | -29 | -49 |
Available-for-sale marketable securities, Fair Market Value | 12,333 | 13,156 |
Available-for-sale marketable securities, Fair Market Value of Investment with Unrealized Losses | 1,234 | 702 |
Certificates of Deposit and Time Deposits | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 49,048 | 3,258 |
Available-for-sale marketable securities, Unrealized Gain | 11 | |
Available-for-sale marketable securities, Unrealized (Loss) | -23 | |
Available-for-sale marketable securities, Fair Market Value | 49,036 | 3,258 |
Available-for-sale marketable securities, Fair Market Value of Investment with Unrealized Losses | 20,684 | |
Non-U.S. Government Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 446 | 78 |
Available-for-sale marketable securities, Fair Market Value | $446 | $78 |
Schedule_of_Reported_Available
Schedule of Reported Available for Sale Marketable Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $1,000,625 | $855,786 |
Available-for-sale marketable securities, Unrealized Gain | 4,818 | 3,689 |
Available-for-sale marketable securities, Unrealized (Loss) | -867 | -1,515 |
Available-for-sale marketable securities, Fair Market Value | 1,004,576 | 857,960 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 583,076 | 241,760 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 533,833 | 586,818 |
Available-for-sale marketable securities, Unrealized Gain | 99 | 85 |
Available-for-sale marketable securities, Unrealized (Loss) | -145 | -21 |
Available-for-sale marketable securities, Fair Market Value | 533,787 | 586,882 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 240,234 | 137,670 |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 466,792 | 268,968 |
Available-for-sale marketable securities, Unrealized Gain | 4,719 | 3,604 |
Available-for-sale marketable securities, Unrealized (Loss) | -722 | -1,494 |
Available-for-sale marketable securities, Fair Market Value | 470,789 | 271,078 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $342,842 | $104,090 |
Contractual_Maturities_of_Inve
Contractual Maturities of Investments Held (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities | |
Due within one year, cost | $533,833 |
Due after 1 year through 5 years, cost | 418,732 |
Due after 5 years through 10 years, cost | 5,735 |
Due after 10 years, cost | 31,833 |
Total, cost | 990,133 |
Due within one year, fair value | 533,787 |
Due after 1 year through 5 years, fair value | 418,363 |
Due after 5 years through 10 years, fair value | 5,924 |
Due after 10 years, fair value | 34,169 |
Total, fair value | $992,243 |
Assets_Measured_at_Fair_Value_
Assets Measured at Fair Value on Non-Recurring Basis (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | |
Assets, impairment loss | |||
Goodwill, impairment loss | $98,897 | [1],[2],[3] | $98,897 |
Fair Value, Measurements, Nonrecurring | |||
Assets | |||
Goodwill, fair value | 273,438 | 273,438 | |
Definite lived intangible assets, fair value | 158,237 | 158,237 | |
Long-lived assets held and used, fair value | 10,189 | 10,189 | |
Total including derivatives | 441,864 | 441,864 | |
Assets, impairment loss | |||
Goodwill, impairment loss | 98,897 | 98,897 | |
Definite lived intangible assets, impairment loss | 0 | ||
Long-lived assets held and used, impairment loss | 0 | ||
Asset Impairment Charges, Total | 98,897 | ||
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Long-lived assets held and used, fair value | 10,189 | 10,189 | |
Total including derivatives | 10,189 | 10,189 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Goodwill, fair value | 273,438 | 273,438 | |
Definite lived intangible assets, fair value | 158,237 | 158,237 | |
Total including derivatives | $431,675 | $431,675 | |
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | ||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | ||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. |
Schedule_of_Notional_Amount_of
Schedule of Notional Amount of Derivatives (Detail) (Foreign Currency Forward Contracts, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | $10 | $25.20 |
Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | -31.5 | -24.8 |
Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | 41.5 | 50 |
Japanese Yen | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | 19.7 | 32.6 |
Japanese Yen | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | 19.7 | 32.6 |
Taiwan Dollar | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | 4.8 | 4 |
Taiwan Dollar | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | -0.9 | |
Taiwan Dollar | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | 5.7 | 4 |
British Pound Sterling | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | 11.7 | 6.9 |
British Pound Sterling | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | 11.7 | 6.9 |
Korean Won | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | 4.4 | 5.8 |
Korean Won | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | 4.4 | 5.8 |
Euro | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | -30.6 | -24.1 |
Euro | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | -30.6 | -24.8 |
Euro | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Notional amounts | $0.70 |
Schedule_of_Effect_of_Derivati
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Option, Quantitative Disclosures | |||
Derivatives asset not designated as hedging instruments | $149 | $153 | |
Foreign exchange contracts derivatives not designated as hedging instruments, Gains (Losses) Recognized in Statement of Operations | 237 | -5,933 | -3,974 |
Other (income) expense, net | |||
Fair Value, Option, Quantitative Disclosures | |||
Foreign exchange contracts derivatives not designated as hedging instruments, Gains (Losses) Recognized in Statement of Operations | 237 | -5,933 | -3,974 |
Not Designated as Hedging Instrument | Foreign Currency Forward Contracts | Other Current Liabilities | |||
Fair Value, Option, Quantitative Disclosures | |||
Derivatives asset not designated as hedging instruments | 149 | ||
Not Designated as Hedging Instrument | Foreign Currency Forward Contracts | Other current assets | |||
Fair Value, Option, Quantitative Disclosures | |||
Derivatives asset not designated as hedging instruments | $153 |
Debt_Detail
Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt [Line Items] | ||
Total debt | $186,663 | |
Current portion of long-term debt | 186,663 | |
Long-term debt | 0 | 0 |
Convertible Senior Notes | ||
Debt [Line Items] | ||
Total debt | 185,708 | |
Japan Loan | ||
Debt [Line Items] | ||
Total debt | $955 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||
Mar. 31, 2009 | Mar. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 13, 2014 | Apr. 01, 2009 | |
Debt Instrument | ||||||||
Borrowings from local bank | $10,000,000 | |||||||
Term of loan, years | 5 years | |||||||
Debt instrument, interest rate, stated percentage | 0.80% | |||||||
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 | ||||||
Aggregate principal amount | 189,998,000 | |||||||
Payments of long-term debt | 190,972,000 | 2,534,000 | 2,533,000 | |||||
Common stock shares were issued for warrants exercised | 21,200,000 | |||||||
Strike price per share of warrant | $7.63 | |||||||
4.50% Convertible Senior Notes Due March 15, 2014 | ||||||||
Debt Instrument | ||||||||
Debt instrument, interest rate, stated percentage | 4.50% | |||||||
Aggregate principal amount | 175,000,000 | 190,000,000 | ||||||
Additional aggregate principal amount | 1,000 | 15,000,000 | ||||||
Senior notes maturity date | 15-Mar-14 | 15-Mar-14 | ||||||
Conversion rate in number of shares | 182.65 | 131.95 | ||||||
Number of shares excluded for conversion rate calculation | 50.7 | |||||||
Trading days used to determine average price per share | 25 days | |||||||
Average trading price of common shares | $19.74 | |||||||
Payments of long-term debt | $190,000,000 | |||||||
Stock issued in conversion of notes | 25,100,000 | |||||||
Stock received and retired | 25,100,000 |
Components_of_Convertible_Seni
Components of Convertible Senior Notes (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Debt Instrument | |
Debt principal | $189,998 |
Unamortized discount | 4,290 |
Net carrying amount of the convertible debt | $185,708 |
Interest_Expense_on_Convertibl
Interest Expense on Convertible Senior Notes (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument | ||
Contractual interest expense on the coupon | $1,757 | $8,550 |
Amortization of the discount component and debt issue fees recognized as interest expense | 4,493 | 16,628 |
Total interest expense on the convertible debt | $6,250 | $25,178 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income Balances (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $4,000 | $5,820 | |
Other comprehensive income before reclassifications, net of tax | 2,417 | -1,097 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | -1,728 | -723 | -935 |
Other comprehensive income (loss) | 689 | -1,820 | 1,074 |
Ending balance | 4,689 | 4,000 | 5,820 |
Unrealized Gains on Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 1,381 | 2,925 | |
Other comprehensive income before reclassifications, net of tax | 2,417 | -1,097 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | -1,433 | -447 | |
Other comprehensive income (loss) | 984 | -1,544 | |
Ending balance | 2,365 | 1,381 | |
Retirement Plans Prior Service Benefit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 2,619 | 2,895 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | -295 | -276 | |
Other comprehensive income (loss) | -295 | -276 | |
Ending balance | $2,324 | $2,619 |
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Income Balances (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income before reclassifications, tax | $1,449 | $216 | $370 |
Amounts reclassified from accumulated other comprehensive income, tax | -645 | -257 | -201 |
Amounts reclassified from accumulated other comprehensive income, tax | -169 | -159 | -134 |
Unrealized gains on marketable securities, tax | 1,598 | 794 | 835 |
Retirement plans prior service benefit, tax | -453 | -284 | -125 |
Unrealized Gains on Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | 804 | -41 | |
Retirement Plans Prior Service Benefit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | ($169) | ($159) |
Reclassification_Out_of_Accumu
Reclassification Out of Accumulated Other Comprehensive Income to Statement of Operations (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Unrealized gains, net of tax | $1,433 | $447 | $702 | |||
Prior service benefit | 295 | [1] | 276 | [1] | 233 | [1] |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | 295 | 276 | 233 | |||
Total reclassifications | 1,728 | 723 | 935 | |||
Interest Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Unrealized gains, net of tax | $1,433 | $447 | $702 | |||
[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." |
Reclassification_Out_of_Accumu1
Reclassification Out of Accumulated Other Comprehensive Income to Statement of Operations (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized gains, tax | ($645) | ($257) | ($201) |
Prior service benefit, tax | 169 | 159 | 134 |
Total reclassifications, tax | $814 | $416 | $335 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 25, 2013 | Oct. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||||||||||||
Goodwill impairment charge | $98,897 | [1],[2],[3] | $98,897 | ||||||||||||||
Acquired intangible assets amortization | 15,957 | [1],[2],[3] | 18,271 | [1],[4] | 18,271 | [1] | 18,271 | 18,284 | [5],[6] | 18,064 | 18,063 | 18,036 | 70,771 | 72,447 | 73,508 | ||
ZTEC Instruments, Inc. | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||||||||||||
Intangible assets | 4,900 | 4,900 | 4,870 | ||||||||||||||
Avionics Interface Technologies, LLC | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||||||||||||
Intangible assets | $9,100 | $9,100 | $9,080 | ||||||||||||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | ||||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | ||||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | ||||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | ||||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | ||||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill by Reporting Units (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Oct. 25, 2013 | Oct. 31, 2014 |
Goodwill [Line Items] | |||||
Goodwill | $770,515 | $757,995 | $781,058 | ||
Accumulated impairment losses | -408,723 | -408,723 | -507,620 | ||
Goodwill | 361,792 | 349,272 | 273,438 | ||
ZTEC Instruments, Inc. | |||||
Goodwill [Line Items] | |||||
Goodwill | 12,520 | ||||
Adjustment | 27 | ||||
Acquisition | 12,520 | ||||
Avionics Interface Technologies, LLC | |||||
Goodwill [Line Items] | |||||
Goodwill | 10,516 | 10,516 | |||
Acquisition | 10,516 | ||||
Semiconductor Test | |||||
Goodwill [Line Items] | |||||
Goodwill | 260,540 | 260,540 | 260,540 | ||
Accumulated impairment losses | -260,540 | -260,540 | -260,540 | ||
System Test | |||||
Goodwill [Line Items] | |||||
Goodwill | 148,183 | 148,183 | 158,699 | ||
Accumulated impairment losses | -148,183 | -148,183 | -148,183 | ||
Goodwill | 10,516 | ||||
System Test | Avionics Interface Technologies, LLC | |||||
Goodwill [Line Items] | |||||
Acquisition | 10,516 | ||||
Wireless Test | |||||
Goodwill [Line Items] | |||||
Goodwill | 361,792 | 349,272 | 361,819 | ||
Accumulated impairment losses | -98,897 | ||||
Goodwill | 361,792 | 349,272 | 262,922 | ||
Wireless Test | ZTEC Instruments, Inc. | |||||
Goodwill [Line Items] | |||||
Adjustment | 27 | ||||
Acquisition | $12,520 |
Schedule_of_Amortizable_Intang
Schedule of Amortizable Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $523,052 | $515,464 |
Accumulated Amortization | 332,452 | 263,173 |
Net Carrying Amount | 190,600 | 252,291 |
Weighted Average Useful Life, years | 6 years 9 months 18 days | 6 years 10 months 24 days |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 345,513 | 342,933 |
Accumulated Amortization | 224,059 | 174,563 |
Net Carrying Amount | 121,454 | 168,370 |
Weighted Average Useful Life, years | 6 years 2 months 12 days | 6 years 2 months 12 days |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 146,635 | 141,497 |
Accumulated Amortization | 93,998 | 76,963 |
Net Carrying Amount | 52,637 | 64,534 |
Weighted Average Useful Life, years | 7 years 8 months 12 days | 8 years |
Tradenames and trademarks | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 30,414 | 30,034 |
Accumulated Amortization | 14,205 | 10,647 |
Net Carrying Amount | 16,209 | 19,387 |
Weighted Average Useful Life, years | 9 years | 9 years 1 month 6 days |
Customer backlog | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 170 | 1,000 |
Accumulated Amortization | 170 | 1,000 |
Weighted Average Useful Life, years | 0 years | 4 months 24 days |
Non Compete | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 320 | |
Accumulated Amortization | 20 | |
Net Carrying Amount | $300 | |
Weighted Average Useful Life, years | 4 years |
Schedule_of_Estimated_Intangib
Schedule of Estimated Intangible Asset Amortization Expense (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets | |
2015 | $55,231 |
2016 | 55,231 |
2017 | 49,046 |
2018 | 24,405 |
2019 | $4,889 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Purchase Commitment, Excluding Long-term Commitment | |||
Aggregate purchase commitments | $151.50 | ||
Rental expense under lease commitments | 16 | 16.5 | 15.5 |
Purchase commitments maximum period | 1 year | ||
Product warranty accrual | 8.9 | 6.7 | |
Revenue deferrals related to extended warranties | $43.30 | $34.90 |
Non_Cancelable_Operating_Lease
Non Cancelable Operating Lease Commitments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Line Items] | |
2015 | $13,521 |
2016 | 11,776 |
2017 | 6,842 |
2018 | 4,535 |
2019 | 4,103 |
Beyond 2019 | 13,214 |
Total | $53,991 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Income Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Net Income Loss Per Common Share | ||||||||||||||||||
Net income for basic and diluted net income per share | ($103,811) | [1],[2],[3] | $82,949 | [1],[4] | $101,205 | [1] | $929 | $22,343 | [5],[6] | $69,459 | $66,556 | $6,589 | $81,272 | $164,947 | $217,049 | |||
Weighted average common shares-basic | 202,908 | 190,772 | 186,878 | |||||||||||||||
Incremental shares from assumed conversion of convertible notes | 5,013 | [7] | 23,341 | [7] | 22,367 | [7] | ||||||||||||
Convertible note hedge warrant shares | 12,562 | [8] | 18,795 | [8] | 17,433 | [8] | ||||||||||||
Employee stock purchase rights | 31 | 36 | 64 | |||||||||||||||
Dilutive potential common shares | 19,642 | 44,827 | 43,368 | |||||||||||||||
Weighted average common shares-diluted | 222,550 | 235,599 | 230,246 | |||||||||||||||
Net income per common share-basic | ($0.48) | [1],[2],[3] | $0.40 | [1],[4] | $0.52 | [1] | $0 | $0.12 | [5],[6] | $0.36 | $0.35 | $0.03 | $0.40 | $0.86 | $1.16 | |||
Net income per common share-diluted | ($0.48) | [1],[2],[3] | $0.38 | [1],[4] | $0.47 | [1] | $0 | $0.09 | [5],[6] | $0.29 | $0.28 | $0.03 | $0.37 | $0.70 | $0.94 | |||
Restricted Stock Units | ||||||||||||||||||
Net Income Loss Per Common Share | ||||||||||||||||||
Incremental shares attributable to share based payment arrangements | 1,092 | 1,127 | 2,291 | |||||||||||||||
Stock Option | ||||||||||||||||||
Net Income Loss Per Common Share | ||||||||||||||||||
Incremental shares attributable to share based payment arrangements | 944 | 1,528 | 1,213 | |||||||||||||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | |||||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | |||||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | |||||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | |||||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[7] | Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $5.48, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. | |||||||||||||||||
[8] | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $7.67, multiplied by 34.7 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. Teradyne's call option on its common stock (convertible note hedge transaction) was excluded from the calculation of diluted shares because the effect was anti-dilutive. See Note G: "Debt" regarding the convertible note hedge transaction. |
Computation_of_Basic_and_Dilut1
Computation of Basic and Diluted Net Income Per Common Share (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Convertible Notes | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $5.48 |
Shares that would be issued upon conversion | 34.7 |
Convertible Notes Hedge Warrant | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $7.67 |
Shares that would be issued upon conversion | 34.7 |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income Loss Per Common Share | |||
Exercise of stock options | 0.3 | 0.4 | 0.3 |
Restricted stock units exercise to purchase shares | 0.3 |
Restructuring_and_Other_Additi
Restructuring and Other - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |
Employee | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | $400,000 | |||
Business acquisition, contingent consideration | -630,000 | -630,000 | -8,761,000 | |
Acquisition cost related to AIT | 400,000 | |||
Wireless Test | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | 500,000 | |||
Reduction in employees head count | 28 | |||
System Test and Semiconductor Test | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | 500,000 | 1,000,000 | 1,900,000 | |
Reduction in employees head count | 8 | 19 | 48 | |
System Test | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | 400,000 | |||
Reduction in employees head count | 4 | |||
Corporate And Eliminations | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | 200,000 | |||
Reduction in employees head count | 3 | |||
Change in estimated exit costs related to leased facility | ($400,000) |
Schedule_of_Restructuring_and_
Schedule of Restructuring and Other Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Restructuring Cost and Reserve | |||
Ending balance | $394 | ||
Pre-2012 Activities | |||
Restructuring Cost and Reserve | |||
Beginning Balance | 1,084 | ||
Change in estimate | -553 | ||
Cash payments | -531 | ||
Q2 2012 Activity | |||
Restructuring Cost and Reserve | |||
Provision | 286 | ||
Change in estimate | -4 | ||
Cash payments | -282 | ||
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 | |||
Beginning Balance | 371 | ||
Provision | 1,337 | ||
Cash payments | -966 | -371 | |
Ending balance | 371 | ||
Q4 2013 Activity | |||
Restructuring Cost and Reserve | |||
Beginning Balance | 114 | ||
Provision | 600 | ||
Cash payments | -486 | -114 | |
Ending balance | 114 | ||
Q2 2014 Activity | |||
Restructuring Cost and Reserve | |||
Provision | 572 | ||
Cash payments | -572 | ||
Q3 2014 Activity | |||
Restructuring Cost and Reserve | |||
Provision | 225 | ||
Cash payments | -225 | ||
Q4 2014 Activity | |||
Restructuring Cost and Reserve | |||
Provision | 826 | ||
Cash payments | -432 | ||
Ending balance | 394 | ||
Severance and Benefits | |||
Restructuring Cost and Reserve | |||
Ending balance | 394 | ||
Severance and Benefits | Q2 2012 Activity | |||
Restructuring Cost and Reserve | |||
Provision | 286 | ||
Change in estimate | -4 | ||
Cash payments | -282 | ||
Severance and Benefits | Q3 2012 Activity | |||
Restructuring Cost and Reserve | |||
Beginning Balance | 243 | ||
Provision | 687 | ||
Cash payments | -243 | -444 | |
Ending balance | 243 | ||
Severance and Benefits | Q3 2013 Activity | |||
Restructuring Cost and Reserve | |||
Beginning Balance | 371 | ||
Provision | 1,337 | ||
Cash payments | -966 | -371 | |
Ending balance | 371 | ||
Severance and Benefits | Q4 2013 Activity | |||
Restructuring Cost and Reserve | |||
Beginning Balance | 114 | ||
Provision | 600 | ||
Cash payments | -486 | -114 | |
Ending balance | 114 | ||
Severance and Benefits | Q2 2014 Activity | |||
Restructuring Cost and Reserve | |||
Provision | 572 | ||
Cash payments | -572 | ||
Severance and Benefits | Q3 2014 Activity | |||
Restructuring Cost and Reserve | |||
Provision | 225 | ||
Cash payments | -225 | ||
Severance and Benefits | Q4 2014 Activity | |||
Restructuring Cost and Reserve | |||
Provision | 826 | ||
Cash payments | -432 | ||
Ending balance | 394 | ||
Facility Exit Costs | Pre-2012 Activities | |||
Restructuring Cost and Reserve | |||
Beginning Balance | 1,084 | ||
Change in estimate | -553 | ||
Cash payments | ($531) |
Schedule_of_Defined_Benefit_Pe
Schedule of Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure | |||
Actuarial (gain) loss | ($46,564) | $10,340 | ($23,320) |
Fair value of plan assets, ending balance | 345,600 | ||
United States | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets, ending balance | 316,072 | 256,373 | |
Foreign | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets, ending balance | 29,511 | 25,756 | |
Defined Benefit Pension Plans | United States | |||
Defined Benefit Plan Disclosure | |||
Projected benefit obligation, Beginning of year | 293,912 | 325,118 | |
Service cost | 2,218 | 2,393 | 2,102 |
Interest cost | 12,875 | 11,318 | 13,713 |
Actuarial (gain) loss | 72,596 | -31,259 | |
Benefits paid | -13,982 | -13,658 | |
Projected benefit obligation, End of year | 367,619 | 293,912 | 325,118 |
Fair value of plan assets, beginning balance | 256,373 | 278,856 | |
Company contributions | 31,753 | 1,738 | |
Actual return on plan assets | 41,928 | -10,563 | |
Benefits paid | -13,982 | -13,658 | |
Fair value of plan assets, ending balance | 316,072 | 256,373 | 278,856 |
Funded status | -51,547 | -37,539 | |
Defined Benefit Pension Plans | Foreign | |||
Defined Benefit Plan Disclosure | |||
Projected benefit obligation, Beginning of year | 52,182 | 51,380 | |
Service cost | 897 | 1,034 | 686 |
Interest cost | 1,837 | 1,948 | 1,956 |
Actuarial (gain) loss | 8,975 | -1,020 | |
Benefits paid | -1,265 | -2,511 | |
Plan participants' contributions | 88 | 95 | |
Non-U.S. currency movement | -4,504 | 1,256 | |
Projected benefit obligation, End of year | 58,210 | 52,182 | 51,380 |
Fair value of plan assets, beginning balance | 25,756 | 24,043 | |
Company contributions | 1,168 | 2,522 | |
Plan participants' contributions | 88 | 95 | |
Actual return on plan assets | 5,192 | 1,190 | |
Benefits paid | -1,265 | -2,511 | |
Non-U.S. currency movement | -1,428 | 417 | |
Fair value of plan assets, ending balance | 29,511 | 25,756 | 24,043 |
Funded status | -28,699 | -26,426 | |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Projected benefit obligation, Beginning of year | 9,019 | 11,907 | |
Service cost | 59 | 75 | 67 |
Interest cost | 335 | 342 | 437 |
Actuarial (gain) loss | -1,255 | -2,025 | |
Benefits paid | -996 | -1,280 | |
Projected benefit obligation, End of year | 7,162 | 9,019 | 11,907 |
Company contributions | 996 | 1,280 | |
Benefits paid | -996 | -1,280 | |
Funded status | ($7,162) | ($9,019) |
Schedule_of_Amounts_Recorded_w
Schedule of Amounts Recorded within Statement of Financial Position (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Pension Plans | United States | ||
Defined Benefit Plan Disclosure | ||
Retirement plans assets | $3,090 | $4,259 |
Accrued employees' compensation and withholdings | -2,492 | -1,781 |
Retirement plans liabilities | -52,145 | -40,017 |
Funded status | -51,547 | -37,539 |
Defined Benefit Pension Plans | Foreign | ||
Defined Benefit Plan Disclosure | ||
Retirement plans assets | 9,806 | 5,083 |
Accrued employees' compensation and withholdings | -906 | -1,143 |
Retirement plans liabilities | -37,599 | -30,366 |
Funded status | -28,699 | -26,426 |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure | ||
Accrued employees' compensation and withholdings | -780 | -1,042 |
Retirement plans liabilities | -6,382 | -7,977 |
Funded status | ($7,162) | ($9,019) |
Schedule_of_Amounts_Recognized
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Pension and Other Postretirement Benefits Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Deferred taxes | ($12,018) | ($12,192) | ($11,582) |
Defined Benefit Pension Plans | United States | |||
Schedule of Pension and Other Postretirement Benefits Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Prior service cost, before tax | 358 | 493 | |
Deferred taxes | 429 | 380 | |
Total recognized in other comprehensive income, net of tax | 787 | 873 | |
Postretirement Benefit Plans | |||
Schedule of Pension and Other Postretirement Benefits Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Prior service cost, before tax | -2,230 | -2,829 | |
Deferred taxes | -882 | -664 | |
Total recognized in other comprehensive income, net of tax | ($3,112) | ($3,493) |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure | |||
Fair value of pension plans assets totaled | $345,600,000 | ||
United States | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation for defined benefit pension plans | 357,000,000 | 286,200,000 | |
Fair value of pension plans assets totaled | 316,072,000 | 256,373,000 | |
Foreign | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation for defined benefit pension plans | 49,800,000 | 45,000,000 | |
Fair value of pension plans assets totaled | 29,511,000 | 25,756,000 | |
United States Plans | |||
Defined Benefit Plan Disclosure | |||
Percentage of expected return on plan assets assumption | 5.00% | ||
Discount rate utilized to determine future pension obligations | 3.70% | 4.50% | |
Fair value of pension plans assets totaled | 316,100,000 | ||
Contribution to defined benefit pension plans | 30,000,000 | ||
U.K. Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plans assets totaled | 28,500,000 | ||
U.K. Defined Benefit Pension Plan | Fixed Income Funds | |||
Defined Benefit Plan Disclosure | |||
Target assets allocation percentage | 80.00% | ||
U.K. Defined Benefit Pension Plan | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Target assets allocation percentage | 20.00% | ||
Other Foreign Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plans assets totaled | 1,000,000 | ||
U.S. Supplemental Executive Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Contribution to defined benefit pension plans | 1,800,000 | 1,700,000 | |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Contribution to defined benefit pension plans | 1,200,000 | 2,500,000 | |
Net Periodic Benefit Cost | |||
Defined Benefit Plan Disclosure | |||
Accumulated other comprehensive income (loss), prior service cost expected to be recognized | 100,000 | ||
Postretirement Benefit Costs | Scenario, Forecast | |||
Defined Benefit Plan Disclosure | |||
Accumulated other comprehensive income (loss), prior service cost expected to be recognized | ($600,000) |
Schedule_of_Pension_Plans_with
Schedule of Pension Plans with Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets (Detail) (Defined Benefit Pension Plans, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
United States | ||
Defined Benefit Plan Disclosure | ||
Projected benefit obligation | $54.60 | $41.80 |
Accumulated benefit obligation | 48.5 | 37.9 |
Foreign | ||
Defined Benefit Plan Disclosure | ||
Projected benefit obligation | 39.5 | 32.4 |
Accumulated benefit obligation | 32.7 | 27.5 |
Fair value of plan assets | $1 | $0.90 |
Schedule_of_Net_Periodic_Pensi
Schedule of Net Periodic Pension and Postretirement (income) Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Service cost | $59 | $75 | $67 |
Interest cost | 335 | 342 | 437 |
Amortization of prior service cost | -598 | -598 | -599 |
Net actuarial (gain) loss | -1,255 | -2,025 | 83 |
Total net periodic pension cost (income) | -1,459 | -2,206 | -12 |
Prior service cost | 598 | 598 | 599 |
Total recognized in other comprehensive income | 598 | 598 | 599 |
Total recognized in net periodic pension cost (income) and other comprehensive income | -861 | -1,608 | 587 |
Defined Benefit Pension Plans | United States | |||
Defined Benefit Plan Disclosure | |||
Service cost | 2,218 | 2,393 | 2,102 |
Interest cost | 12,875 | 11,318 | 13,713 |
Expected return on plan assets | -12,500 | -13,632 | -15,248 |
Amortization of prior service cost | 135 | 164 | 232 |
Net actuarial (gain) loss | 43,168 | -7,063 | 15,458 |
Total net periodic pension cost (income) | 45,896 | -6,820 | 16,257 |
Prior service cost | -135 | -164 | -232 |
Total recognized in other comprehensive income | -135 | -164 | -232 |
Total recognized in net periodic pension cost (income) and other comprehensive income | 45,761 | -6,984 | 16,025 |
Defined Benefit Pension Plans | Foreign | |||
Defined Benefit Plan Disclosure | |||
Service cost | 897 | 1,034 | 686 |
Interest cost | 1,837 | 1,948 | 1,956 |
Expected return on plan assets | -868 | -959 | -698 |
Net actuarial (gain) loss | 4,651 | -1,252 | 7,779 |
Total net periodic pension cost (income) | 6,517 | 771 | 9,723 |
Total recognized in net periodic pension cost (income) and other comprehensive income | $6,517 | $771 | $9,723 |
Schedule_of_Weighted_Average_A
Schedule of Weighted Average - Assumptions to Determine Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Postretirement Benefit Plans | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate | 4.10% | 3.10% | 3.70% |
Initial Health Care Cost Trend Rate | 8.00% | 8.50% | 9.00% |
Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% | 5.00% |
Year in which Ultimate Health Care Cost Trend Rate is reached | 2020 | 2020 | 2020 |
United States | Defined Benefit Pension Plans | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate | 4.50% | 3.60% | 4.20% |
Expected return on plan assets | 5.00% | 5.00% | 5.00% |
Salary progression rate | 3.00% | 3.00% | 3.00% |
Foreign | Defined Benefit Pension Plans | |||
Schedule of Net Periodic Benefit Costs Weighted Average Assumptions [Line Items] | |||
Discount rate | 3.80% | 3.70% | 4.90% |
Expected return on plan assets | 3.40% | 3.70% | 3.10% |
Salary progression rate | 3.50% | 3.50% | 3.40% |
Schedule_of_Weighted_Average_A1
Schedule of Weighted Average Assumptions to Determine Pension Obligations (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Postretirement Benefit Plans | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Discount rate | 3.50% | 4.10% | 3.10% |
Initial Medical Trend | 7.50% | 8.00% | 8.50% |
Ultimate Health Care Trend | 5.00% | 5.00% | 5.00% |
Medical cost trend rate decrease to ultimate rate in year | 2022 | 2020 | 2020 |
Defined Benefit Pension Plans | United States | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Discount rate | 3.70% | 4.50% | |
Salary progression rate | 2.90% | 3.00% | |
Defined Benefit Pension Plans | Foreign | |||
Schedule of Benefit Obligations Weighted Average Assumptions [Line Items] | |||
Discount rate | 2.60% | 3.80% | |
Salary progression rate | 3.20% | 3.50% |
Schedule_of_Weighted_Average_P
Schedule of Weighted Average Pension Assets Allocations by Category (Detail) (Defined Benefit Pension Plans) | Dec. 31, 2014 | Dec. 31, 2013 |
United States | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
United States | Fixed Income Securities | ||
Defined Benefit Plan Disclosure | ||
Total | 83.30% | 86.70% |
United States | Equity Securities | ||
Defined Benefit Plan Disclosure | ||
Total | 15.40% | 12.10% |
United States | Other than Securities Investment | ||
Defined Benefit Plan Disclosure | ||
Total | 1.30% | 1.20% |
Foreign | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
Foreign | Fixed Income Securities | ||
Defined Benefit Plan Disclosure | ||
Total | 78.20% | 77.10% |
Foreign | Equity Securities | ||
Defined Benefit Plan Disclosure | ||
Total | 20.70% | 21.60% |
Foreign | Other than Securities Investment | ||
Defined Benefit Plan Disclosure | ||
Total | 1.10% | 1.30% |
Schedule_of_Target_Assets_Allo
Schedule of Target Assets Allocation (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Passive And Active Fixed Income | Barclays U.S. Long Government/Credit Bond Index | Fixed Income Funds | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Target assets allocation percentage | 85.00% |
Equity (Large Cap) | S&P 500 Stock Index | Equity Securities | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Target assets allocation percentage | 10.00% |
International Equity | MSCI EAFE Index | Equity Securities | |
Schedule of Defined Benefit Plan Asset Allocation Targets [Line Items] | |
Target assets allocation percentage | 5.00% |
Schedule_of_Fair_Value_of_Pens
Schedule of Fair Value of Pensions Plan Assets by Asset Category (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | $345,600 | |
United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 316,072 | 256,373 |
Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 29,511 | 25,756 |
Fixed Income Securities | Corporate Debt Securities | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 193,741 | 156,860 |
Fixed Income Securities | US Government Debt Securities | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 65,830 | 62,555 |
Fixed Income Securities | U.K. Government Securities | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 22,811 | 19,610 |
Fixed Income Securities | Asset-backed Securities | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 3,747 | 2,919 |
U.S. Equity (Large Cap) | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 33,970 | 21,309 |
International Equity | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 14,631 | 9,599 |
International Equity | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 5,610 | 5,204 |
Guarantee Annuity Contract | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 2,990 | 2,985 |
Other | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 65 | |
Other | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 957 | 906 |
Cash and Cash Equivalents | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 1,098 | 146 |
Cash and Cash Equivalents | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 133 | 36 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 1,098 | 146 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 133 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash and Cash Equivalents | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 1,098 | 146 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash and Cash Equivalents | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 133 | |
Significant Other Observable Inputs (Level 2) | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 314,974 | 256,227 |
Significant Other Observable Inputs (Level 2) | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 29,378 | 25,756 |
Significant Other Observable Inputs (Level 2) | Fixed Income Securities | Corporate Debt Securities | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 193,741 | 156,860 |
Significant Other Observable Inputs (Level 2) | Fixed Income Securities | US Government Debt Securities | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 65,830 | 62,555 |
Significant Other Observable Inputs (Level 2) | Fixed Income Securities | U.K. Government Securities | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 22,811 | 19,610 |
Significant Other Observable Inputs (Level 2) | Fixed Income Securities | Asset-backed Securities | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 3,747 | 2,919 |
Significant Other Observable Inputs (Level 2) | U.S. Equity (Large Cap) | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 33,970 | 21,309 |
Significant Other Observable Inputs (Level 2) | International Equity | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 14,631 | 9,599 |
Significant Other Observable Inputs (Level 2) | International Equity | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 5,610 | 5,204 |
Significant Other Observable Inputs (Level 2) | Guarantee Annuity Contract | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 2,990 | 2,985 |
Significant Other Observable Inputs (Level 2) | Other | United States | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 65 | |
Significant Other Observable Inputs (Level 2) | Other | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | 957 | 906 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | Foreign | ||
Schedule of Pension Plan Assets by Fair Value [Line Items] | ||
Total | $36 |
Schedule_of_Expected_Future_Be
Schedule of Expected Future Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Postretirement Benefit Plans | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2015 | $780 |
2016 | 738 |
2017 | 657 |
2018 | 599 |
2019 | 535 |
2020-2024 | 2,045 |
United States | Defined Benefit Pension Plans | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2015 | 24,407 |
2016 | 23,399 |
2017 | 23,129 |
2018 | 22,455 |
2019 | 21,826 |
2020-2024 | 112,546 |
Foreign | Defined Benefit Pension Plans | |
Schedule of Pension Expected Future Benefit Payments [Line Items] | |
2015 | 1,018 |
2016 | 862 |
2017 | 1,069 |
2018 | 1,076 |
2019 | 1,230 |
2020-2024 | $9,349 |
Schedule_of_One_Percent_Point_
Schedule of One Percent Point Change in assumed Health Care Cost Trends Rate (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Assumed Health Care Cost Trend Rates, Effect of One Percentage Point Change [Line Items] | |
Effect of one percentage point increase on total service and interest cost components | $6 |
Effect of one percentage point increase on postretirement benefit obligations | 87 |
Effect of one percentage point decrease on total service and interest cost components | -6 |
Effect of one percentage point decrease on postretirement benefit obligations | ($83) |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||
Jul. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 | Jan. 31, 2014 | 21-May-13 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2011 | Jan. 24, 2014 | |
Age | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Restricted stock unit awards granted | 1,870,000 | 2,110,000 | 1,844,000 | |||||||||||||||||
Weighted average grant date fair value of restricted stock units granted | $19.30 | $16.53 | $16.67 | |||||||||||||||||
Stock options granted | 89,000 | 213,000 | 151,000 | |||||||||||||||||
Weighted average grant date fair value | $3.42 | $4.09 | $5.49 | $6.09 | $6.85 | |||||||||||||||
Total unrecognized expense related to non-vested restricted stock unit awards and stock options | $51,300,000 | |||||||||||||||||||
Unrecognized expense related to non-vested restricted stock unit awards and stock options expected to be recognized over weighted average period, in years | 2 years 4 months 24 days | |||||||||||||||||||
Stock based compensation expense related to retirement agreement | 6,600,000 | |||||||||||||||||||
Maximum percent of shares allowed to purchase | 10.00% | |||||||||||||||||||
Fair market value | $25,000 | |||||||||||||||||||
Maximum number of shares allowed to purchase | 6,000 | |||||||||||||||||||
Percentage of common stock price paid | 85.00% | 85.00% | 85.00% | |||||||||||||||||
Common stock issued to employees | 500,000 | 400,000 | 400,000 | 600,000 | 600,000 | |||||||||||||||
Value of common stock issued to employees per share | $11.91 | $16.82 | $16.66 | $14.98 | $14.94 | $11.69 | ||||||||||||||
Number of shares available for grant | 6,414,000 | 12,443,000 | 14,213,000 | 6,414,000 | 8,205,000 | |||||||||||||||
Subsequent Event | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Common stock issued to employees | 500,000 | |||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Restricted stock unit awards granted | 1,870,000 | 2,110,000 | 1,844,000 | |||||||||||||||||
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 | |||||||||||||||||||
Restricted Stock Units | Director | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Period of stock granted to employees and executive officers vest in equal installments | 1 year | |||||||||||||||||||
Percentage of awards vesting on the first anniversary of grant date | 100.00% | |||||||||||||||||||
TSR Performance-Based Restricted Stock Units | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Total shareholder return performance measurement period | 3 years | |||||||||||||||||||
Minimum age of retirement to be eligible for PRSUs | 60 | |||||||||||||||||||
Minimum years of service for retirement to be eligible for PRSUs | 10 years | |||||||||||||||||||
Restricted stock unit awards granted | 100,000 | |||||||||||||||||||
Weighted average grant date fair value of restricted stock units granted | $22.06 | |||||||||||||||||||
Estimated annual dividend amount per share | $0.24 | |||||||||||||||||||
Stock price | $19.16 | |||||||||||||||||||
TSR Performance-Based Restricted Stock Units | Maximum | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Percentage of vesting of target shares upon performance achieved | 200.00% | |||||||||||||||||||
TSR Performance-Based Restricted Stock Units | Minimum | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Percentage of vesting of target shares upon performance achieved | 0.00% | |||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Number of shares available for grant | 5,300,000 | |||||||||||||||||||
Twenty Zero Six Incentive Compensation Plan | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Employee Stock Purchase Plan to increase the number of shares issuable | 10,000,000 | |||||||||||||||||||
Aggregate number of shares issuable | 32,000,000 | |||||||||||||||||||
1996 Employee Stock Purchase Plan | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||||||
Employee Stock Purchase Plan to increase the number of shares issuable | 5,000,000 | |||||||||||||||||||
Aggregate number of shares issuable | 30,400,000 |
Schedule_of_Estimated_Fair_Val
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions (Detail) (TSR Performance-Based Restricted Stock Units) | 12 Months Ended |
Dec. 31, 2014 | |
TSR Performance-Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Risk-free interest rate | 0.75% |
Teradyne volatility-historical | 36.10% |
Philadelphia Semiconductor Index volatility-historical | 24.60% |
Dividend yield | 1.25% |
Schedule_of_Estimated_Fair_Val1
Schedule of Estimated Fair Value of Stock Options Grant Using Black Scholes Option Pricing Model (Detail) (Stock Options) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (years) | 4 years | 4 years | 3 years 6 months |
Risk-free interest rate | 1.20% | 0.60% | 0.40% |
Volatility-historical | 38.80% | 46.80% | 56.00% |
Dividend yield | 1.25% | 0.00% | 0.00% |
Schedule_of_Stock_Compensation
Schedule of Stock Compensation Plan Activity (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awarded | 1,870 | 2,110 | 1,844 |
Forfeited | -189 | -122 | -204 |
Outstanding at January 1 | 2,706 | 3,841 | 5,335 |
Granted | 89 | 213 | 151 |
Exercised | -1,248 | -1,220 | -1,396 |
Forfeited | -38 | -104 | -203 |
Cancelled | -2 | -24 | -46 |
Outstanding at December 31 | 1,507 | 2,706 | 3,841 |
Vested and expected to vest at December 31 | 1,507 | 2,694 | 3,785 |
Exercisable at December 31 | 1,089 | 1,814 | 2,004 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Non-vested at January 1 | 4,636 | 4,970 | 5,840 |
Awarded | 1,870 | 2,110 | 1,844 |
Vested | -1,965 | -2,322 | -2,510 |
Forfeited | -190 | -122 | -204 |
Non-vested at December 31 | 4,351 | 4,636 | 4,970 |
Schedule_of_Share_Based_Compen
Schedule of Share Based Compensation Total Shares Available (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Available for grant at January 1 | 14,213 | 6,414 | 8,205 |
Options granted | -89 | -213 | -151 |
Restricted stock units awarded | -1,870 | -2,110 | -1,844 |
Restricted stock units forfeited | 189 | 122 | 204 |
Additional shares reserved | 10,000 | ||
Available for grant at December 31 | 12,443 | 14,213 | 6,414 |
Schedule_of_WeightedAverage_Re
Schedule of Weighted-Average Restricted Stock Unit Award Fair Value (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Non-vested at January 1 | $15.56 | $12.72 | $10.01 |
Awarded | $19.30 | $16.53 | $16.67 |
Vested | $14.38 | $10.40 | $9.29 |
Forfeited | $17.21 | $15.48 | $13.32 |
Non-vested at December 31 | $17.58 | $15.56 | $12.72 |
Schedule_of_Restricted_Stock_U
Schedule of Restricted Stock Unit Awards Aggregate Intrinsic Value (Detail) (Restricted Stock Units, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding | $86,113 | $81,680 | $83,949 |
Expected to vest | $81,582 | $77,388 | $78,718 |
Schedule_of_Restricted_Stock_U1
Schedule of Restricted Stock Units Weighted Average Remaining Contractual Terms (Detail) (Restricted Stock Units) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding | 1 year 1 month 10 days | 1 year 1 month 21 days | 1 year 4 days |
Expected to vest | 1 year 1 month 6 days | 1 year 1 month 17 days | 1 year |
Schedule_of_Weighted_Average_S
Schedule of Weighted Average Stock Options Exercise Price (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding at January 1 | $6.29 | $4.64 | $4.12 |
Options granted | $19.16 | $16.56 | $16.95 |
Options exercised | $5.34 | $3.28 | $3.87 |
Options forfeited | $3.59 | $2.57 | $3.11 |
Options cancelled | $2.21 | $8.05 | $16.21 |
Outstanding at December 31 | $7.89 | $6.29 | $4.64 |
Exercisable at December 31 | $5 | $4.55 | $3.70 |
Schedule_of_Stock_Option_Aggre
Schedule of Stock Option Aggregated Intrinsic Value Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercised | $17,847 | $16,848 | $17,136 |
Outstanding | 17,936 | 30,673 | 47,051 |
Vested and expected to vest | 17,936 | 30,512 | 46,283 |
Exercisable | $16,101 | $23,707 | $26,436 |
Schedule_of_Stock_Options_Weig
Schedule of Stock Options Weighted Average Remaining Contractual Terms (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding | 4 years 6 months | 4 years 10 months 24 days | 5 years 8 months 12 days |
Vested and Expected to vest | 4 years 6 months | 4 years 10 months 24 days | 5 years 7 months 6 days |
Exercisable | 4 years 2 months 12 days | 4 years 3 months 18 days | 4 years 10 months 24 days |
Schedule_of_Significant_Option
Schedule of Significant Option Groups Outstanding (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Shares | 1,507 |
Options Exercisable, Shares | 1,089 |
Options Outstanding, Weighted-Average Exercise Price | $7.89 |
Options Exercisable, Weighted-Average Exercise Price | $5 |
$1.48 - $2.58 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 5 years 26 days |
Options Outstanding, Shares | 269 |
Options Exercisable, Shares | 269 |
Range Of Exercise Prices, Lower Limit | $1.48 |
Range Of Exercise Prices, Upper Limit | $2.58 |
Options Outstanding, Weighted-Average Exercise Price | $1.91 |
Options Exercisable, Weighted-Average Exercise Price | $1.91 |
$2.67 - $2.74 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 4 years 4 months 24 days |
Options Outstanding, Shares | 462 |
Options Exercisable, Shares | 429 |
Range Of Exercise Prices, Lower Limit | $2.67 |
Range Of Exercise Prices, Upper Limit | $2.74 |
Options Outstanding, Weighted-Average Exercise Price | $2.69 |
Options Exercisable, Weighted-Average Exercise Price | $2.69 |
$3.23 - $16.23 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 3 years 7 months 10 days |
Options Outstanding, Shares | 370 |
Options Exercisable, Shares | 306 |
Range Of Exercise Prices, Lower Limit | $3.23 |
Range Of Exercise Prices, Upper Limit | $16.23 |
Options Outstanding, Weighted-Average Exercise Price | $8.47 |
Options Exercisable, Weighted-Average Exercise Price | $7.69 |
$16.56 - $19.16 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 4 years 11 months 27 days |
Options Outstanding, Shares | 406 |
Options Exercisable, Shares | 85 |
Range Of Exercise Prices, Lower Limit | $16.56 |
Range Of Exercise Prices, Upper Limit | $19.16 |
Options Outstanding, Weighted-Average Exercise Price | $17.25 |
Options Exercisable, Weighted-Average Exercise Price | $16.79 |
Schedule_of_Estimated_Fair_Val2
Schedule of Estimated Fair Value Employees Purchase Right Using Black Scholes Option Pricing Mode (Detail) (Stock Purchase Rights) | 12 Months Ended |
Dec. 31, 2012 | |
Stock Purchase Rights | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Expected life (years) | 6 months |
Risk-free interest rate | 0.10% |
Volatility-historical | 42.70% |
Dividend yield | 0.00% |
Stock_Based_Compensation_Detai
Stock Based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $40,307 | $36,612 | $39,920 |
Income tax benefit | -535 | -2,675 | -8,490 |
Total stock-based compensation expense after income taxes | 28,771 | 26,850 | 30,372 |
Cost Of Revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 3,675 | 4,338 | 6,604 |
Engineering And Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 10,146 | 12,452 | 13,589 |
Selling And Administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 26,486 | 19,822 | 19,727 |
Stock Based Compensation | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Income tax benefit | ($11,537) | ($9,762) | ($9,548) |
Savings_Plan_Additional_Inform
Savings Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Savings Plan [Line Items] | |||
Savings plan maximum percentage of employees contribution allowable | 20.00% | ||
Percentage of employer contributions vested per year | 25.00% | ||
Maximum employment period considered for vesting of employers' contribution, in years | 4 | ||
U.S. Qualified Pension Plan | |||
Savings Plan [Line Items] | |||
Maximum percentage of matching contributions made by the employer | 100.00% | 100.00% | 100.00% |
Percentage of employer match on employee contribution | 4.00% | 4.00% | 4.00% |
Savings Plan | |||
Savings Plan [Line Items] | |||
Amounts charged to statement of operations | 12.8 | 12 | 10.6 |
Schedule_of_Income_loss_Before
Schedule of Income (loss) Before Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Income Tax Disclosure [Line Items] | ||||||||||||||||||
U.S. | ($151,889) | $79,229 | $112,008 | |||||||||||||||
Non-U.S. | 247,265 | 122,693 | 153,968 | |||||||||||||||
Income (loss) before income taxes | ($124,813) | [1],[2],[3] | $100,670 | [1],[4] | $121,392 | [1] | ($1,873) | $35,439 | [5],[6] | $87,552 | $80,357 | ($1,426) | $95,376 | [7],[8] | $201,922 | [7],[8] | $265,976 | [7],[8] |
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | |||||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | |||||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | |||||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | |||||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[7] | Interest income, interest expense, other (income) expense, net and pension and postretirement plans actuarial gains and losses are included in Corporate and Eliminations. | |||||||||||||||||
[8] | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and goodwill impairment charges. |
Schedule_of_Provision_Benefit_
Schedule of Provision Benefit for Income Taxes from Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Income Tax Disclosure [Line Items] | |||||||||||||||
Current, U.S. Federal | $5,197 | $18,051 | $22,695 | ||||||||||||
Current, Non-U.S. | 28,157 | 22,509 | 18,261 | ||||||||||||
Current, State | 678 | -269 | -12 | ||||||||||||
Current, Total | 34,032 | 40,291 | 40,944 | ||||||||||||
Deferred, U.S. Federal | -20,449 | -1,692 | 8,158 | ||||||||||||
Deferred, Non-U.S. | -404 | -1,386 | 5,997 | ||||||||||||
Deferred, State | 925 | -238 | -6,172 | ||||||||||||
Deferred, Total | -19,928 | -3,316 | 7,983 | ||||||||||||
Total provision for income taxes: | ($21,002) | [1],[2],[3] | $17,721 | [1],[4] | $20,187 | [1] | ($2,802) | $13,096 | [5],[6] | $18,093 | $13,801 | ($8,015) | $14,104 | $36,975 | $48,927 |
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | ||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | ||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | ||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | ||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | ||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Income Taxes [Line Items] | ||||||||||||||||
Income tax expense (benefit) from operations, total | ($21,002,000) | [1],[2],[3] | $17,721,000 | [1],[4] | $20,187,000 | [1] | ($2,802,000) | $13,096,000 | [5],[6] | $18,093,000 | $13,801,000 | ($8,015,000) | $14,104,000 | $36,975,000 | $48,927,000 | |
U.S. research and development tax credit reduction Percentage | -7.90% | -7.20% | ||||||||||||||
U.S. statutory federal tax rate | 35.00% | 35.00% | 35.00% | |||||||||||||
Tax savings due to the tax holiday | 13,200,000 | 4,700,000 | 10,900,000 | |||||||||||||
Tax savings due to the tax holiday, per share | $0.06 | $0.02 | $0.05 | |||||||||||||
Tax holiday expiration date | 31-Dec-15 | |||||||||||||||
Accrued interest and penalties | 600,000 | 400,000 | 600,000 | 400,000 | ||||||||||||
Interest and penalties related to income tax | 200,000 | 200,000 | 100,000 | |||||||||||||
Valuation allowance amount decrease/increase | 1,300,000 | -19,500,000 | ||||||||||||||
Valuation allowance includes net deferred tax assets | 41,737,000 | 40,386,000 | 41,737,000 | 40,386,000 | ||||||||||||
U.S. Federal operating loss carryforwards | 11,504,000 | 11,504,000 | ||||||||||||||
Net operating loss carryforward excess tax deductions related to stock based compensation | 0 | 0 | ||||||||||||||
Tax credit carry forwards, approximately | 140,800,000 | 140,800,000 | ||||||||||||||
Tax credits carry forwards | 50,554,000 | 65,210,000 | 50,554,000 | 65,210,000 | ||||||||||||
Alternative minimum tax credits carry forwards | 6,600,000 | 6,600,000 | ||||||||||||||
Unrecognized tax benefits | 30,418,000 | 21,203,000 | 30,418,000 | 21,203,000 | 18,666,000 | 19,391,000 | ||||||||||
Unrecognized tax benefits, if recognized would impact effective tax rate | 24,100,000 | 24,100,000 | ||||||||||||||
Unrecognized tax benefits, if recognized would impact valuation allowance | 6,300,000 | 6,300,000 | ||||||||||||||
Decrease in unrecognized tax benefits | 800,000 | |||||||||||||||
Deferred tax liability not been established | 556,900,000 | 556,900,000 | ||||||||||||||
General Business Tax Credit Carryforward | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Tax credits carry forwards | 37,000,000 | 37,000,000 | ||||||||||||||
Foreign | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Tax credits carry forwards | 27,500,000 | 27,500,000 | ||||||||||||||
State and Local Jurisdiction | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Tax credits carry forwards | 69,700,000 | 69,700,000 | ||||||||||||||
Stock Option | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Tax credits carry forwards | 46,600,000 | 46,600,000 | ||||||||||||||
GenRad, Inc. | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
U.S. Federal operating loss carryforwards | 10,700,000 | 10,700,000 | ||||||||||||||
ZTEC Instruments, Inc. | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
U.S. Federal operating loss carryforwards | $800,000 | $800,000 | ||||||||||||||
Minimum | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Tax credit carry forward, expiration date | 2017 | |||||||||||||||
Minimum | Foreign | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Tax credit carry forward, expiration date | 2018 | |||||||||||||||
Maximum | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Tax credit carry forward, expiration date | 2034 | |||||||||||||||
Maximum | Foreign | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Tax credit carry forward, expiration date | 2022 | |||||||||||||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | |||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | |||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | |||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | |||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. |
Schedule_of_Reconciliation_of_
Schedule of Reconciliation of Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | |||
U.S. statutory federal tax rate | 35.00% | 35.00% | 35.00% |
Foreign taxes | -58.10% | -11.40% | -10.50% |
Goodwill impairment | 36.30% | ||
U.S. research and development credit | -7.90% | -7.20% | |
Uncertain tax positions | 7.90% | 4.20% | -1.20% |
Other permanent items | 3.40% | -0.10% | -2.80% |
Valuation allowance | 0.40% | -0.50% | |
State income taxes, net of federal tax benefit | -0.10% | 0.10% | -1.70% |
Other, net | -1.70% | -2.70% | 0.10% |
Effective tax rate, Total | 14.80% | 18.30% | 18.40% |
Schedule_of_Components_of_Defe
Schedule of Components of Deferred Tax Assets Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | $10,989 | $14,679 |
Tax credits | 50,554 | 65,210 |
Pension liability | 30,036 | 22,966 |
Inventory valuations | 29,105 | 38,452 |
Accruals | 23,323 | 17,828 |
Equity compensation | 11,131 | 10,498 |
Deferred revenue | 10,242 | 12,379 |
Vacation accrual | 7,425 | 7,291 |
Other | 1,725 | 2,613 |
Gross deferred tax assets | 174,530 | 191,916 |
Less: valuation allowance | -41,737 | -40,386 |
Total deferred tax assets | 132,793 | 151,530 |
Marketable securities | -1,599 | -794 |
Intangible assets | -64,871 | -89,268 |
Excess of tax over book depreciation | -24,905 | -24,458 |
Total deferred tax liabilities | -91,375 | -114,520 |
Net deferred assets | $41,418 | $37,010 |
Summary_of_Operating_Loss_Carr
Summary of Operating Loss Carryforwards (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Loss Carryforwards [Line Items] | |
U.S. Federal operating loss carryforwards | $11,504 |
State Operating Loss Carryforwards | 8,024 |
Foreign Operating Loss Carryforwards | 8,575 |
2015 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 1 |
2016 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 56 |
2017 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 738 |
2018 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 679 |
2019 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 133 |
2020-2025 | |
Operating Loss Carryforwards [Line Items] | |
U.S. Federal operating loss carryforwards | 10,698 |
State Operating Loss Carryforwards | 2,686 |
2026-2028 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 676 |
Beyond 2028 | |
Operating Loss Carryforwards [Line Items] | |
U.S. Federal operating loss carryforwards | 806 |
State Operating Loss Carryforwards | 3,055 |
Foreign Operating Loss Carryforwards | 115 |
Non-Expiring | |
Operating Loss Carryforwards [Line Items] | |
Foreign Operating Loss Carryforwards | $8,460 |
Schedule_of_Unrecognized_Tax_B
Schedule of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Line Items] | |||
Beginning balance, as of January 1 | $21,203 | $18,666 | $19,391 |
Tax positions for current year | 8,414 | 4,586 | 459 |
Tax positions for prior years | 3,781 | 2,112 | 2,259 |
Tax positions for prior years | -2,480 | -4,161 | -3,443 |
Settlements with tax authorities | -500 | ||
Ending Balance as of December 31 | $30,418 | $21,203 | $18,666 |
Operating_Segment_Geographic_a2
Operating Segment Geographic and Significant Customer Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | |||
Segment | |||
Segment Reporting Information [Line Items] | |||
Operating segments | 3 | ||
Number of customer accounted for more than consolidated revenue | 0 | ||
Customer 1 | Consolidated Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 12.00% | 10.00% |
Schedule_of_Segment_Informatio
Schedule of Segment Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | $323,236 | [1],[2],[3] | $478,010 | [1],[4] | $525,567 | [1] | $321,010 | $285,301 | [5],[6] | $433,376 | $428,889 | $280,367 | $1,647,824 | [7] | $1,427,933 | [7] | $1,656,750 | [7] |
Income (Loss) before taxes | -124,813 | [1],[2],[3] | 100,670 | [1],[4] | 121,392 | [1] | -1,873 | 35,439 | [5],[6] | 87,552 | 80,357 | -1,426 | 95,376 | [8],[9] | 201,922 | [8],[9] | 265,976 | [8],[9] |
Total assets | 2,538,520 | [10] | 2,629,824 | [10] | 2,538,520 | [10] | 2,629,824 | [10] | 2,429,345 | [10] | ||||||||
Property additions | 168,982 | 106,731 | 119,080 | |||||||||||||||
Depreciation and amortization expense | 152,544 | 150,687 | 145,514 | |||||||||||||||
Semiconductor Test | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | 1,300,790 | 1,023,041 | 1,127,726 | |||||||||||||||
Income (Loss) before taxes | 255,803 | [8],[9] | 153,797 | [8],[9] | 185,985 | [8],[9] | ||||||||||||
Total assets | 580,501 | [10] | 632,840 | [10] | 580,501 | [10] | 632,840 | [10] | 604,127 | [10] | ||||||||
Property additions | 159,783 | 94,303 | 105,074 | |||||||||||||||
Depreciation and amortization expense | 84,990 | 72,472 | 73,537 | |||||||||||||||
System Test | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | 162,499 | 153,021 | 242,669 | |||||||||||||||
Income (Loss) before taxes | 12,116 | [8],[9] | 3,115 | [8],[9] | 34,164 | [8],[9] | ||||||||||||
Total assets | 95,105 | [10] | 79,983 | [10] | 95,105 | [10] | 79,983 | [10] | 71,116 | [10] | ||||||||
Property additions | 5,469 | 7,070 | 6,398 | |||||||||||||||
Depreciation and amortization expense | 5,399 | 5,180 | 4,549 | |||||||||||||||
Wireless Test | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Revenues | 184,535 | 251,871 | 286,355 | |||||||||||||||
Income (Loss) before taxes | -116,196 | [8],[9] | 23,153 | [8],[9] | 83,077 | [8],[9] | ||||||||||||
Total assets | 478,974 | [10] | 645,001 | [10] | 478,974 | [10] | 645,001 | [10] | 672,048 | [10] | ||||||||
Property additions | 3,730 | 5,358 | 7,608 | |||||||||||||||
Depreciation and amortization expense | 53,308 | 51,675 | 50,362 | |||||||||||||||
Corporate And Eliminations | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Income (Loss) before taxes | -56,347 | [8],[9] | 21,857 | [8],[9] | -37,250 | [8],[9] | ||||||||||||
Total assets | 1,383,940 | [10] | 1,272,000 | [10] | 1,383,940 | [10] | 1,272,000 | [10] | 1,082,054 | [10] | ||||||||
Depreciation and amortization expense | $8,847 | $21,360 | $17,066 | |||||||||||||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | |||||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | |||||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | |||||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | |||||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[7] | Revenues attributable to a country are based on location of customer site. | |||||||||||||||||
[8] | Interest income, interest expense, other (income) expense, net and pension and postretirement plans actuarial gains and losses are included in Corporate and Eliminations. | |||||||||||||||||
[9] | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and goodwill impairment charges. | |||||||||||||||||
[10] | Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
Schedule_of_Segment_Reporting_
Schedule of Segment Reporting Information by Segment Charges (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Restructuring and other | $1,198 | [1],[2],[3] | ($405) | [1],[4] | $572 | [1] | $600 | [5],[6] | $889 | $259 | $332 | $1,365 | $2,080 | ($7,721) | |||
Goodwill impairment charge | 98,897 | [1],[2],[3] | 98,897 | ||||||||||||||
Corporate And Eliminations | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Restructuring and other | -432 | -449 | -8,794 | ||||||||||||||
Semiconductor Test | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Cost of revenues-inventory charge | 14,389 | [7] | 5,218 | [7] | 18,433 | [7] | |||||||||||
Restructuring and other | 490 | 1,016 | 386 | ||||||||||||||
Wireless Test | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Cost of revenues-inventory step-up | 6,089 | [8] | |||||||||||||||
Cost of revenues-inventory charge | 5,679 | 7,206 | 4,145 | ||||||||||||||
Restructuring and other | 565 | 82 | 236 | ||||||||||||||
Goodwill impairment charge | 98,897 | ||||||||||||||||
System Test | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Cost of revenues-inventory charge | 2,125 | 4,168 | 4,271 | ||||||||||||||
Restructuring and other | $742 | $1,431 | $451 | ||||||||||||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | ||||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | ||||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | ||||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | ||||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | ||||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | ||||||||||||||||
[7] | Included in the cost of revenues for the years ended December 31, 2014 and 2012 are charges for excess inventory provisions recorded primarily as a result of product transition. | ||||||||||||||||
[8] | Included in the cost of revenues for the years ended December 31, 2012 is the cost for purchase accounting inventory step-up. |
Schedule_of_Revenues_by_Countr
Schedule of Revenues by Country (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | $323,236 | [1],[2],[3] | $478,010 | [1],[4] | $525,567 | [1] | $321,010 | $285,301 | [5],[6] | $433,376 | $428,889 | $280,367 | $1,647,824 | [7] | $1,427,933 | [7] | $1,656,750 | [7] |
TAIWAN, PROVINCE OF CHINA | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 495,942 | [7] | 265,472 | [7] | 299,359 | [7] | ||||||||||||
CHINA | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 292,145 | [7] | 323,564 | [7] | 351,335 | [7] | ||||||||||||
UNITED STATES | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 213,104 | [7] | 230,178 | [7] | 238,280 | [7] | ||||||||||||
KOREA, REPUBLIC OF | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 145,608 | [7] | 119,286 | [7] | 216,445 | [7] | ||||||||||||
SINGAPORE | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 119,421 | [7] | 114,765 | [7] | 101,502 | [7] | ||||||||||||
Europe | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 111,043 | [7] | 90,797 | [7] | 77,099 | [7] | ||||||||||||
MALAYSIA | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 83,910 | [7] | 86,900 | [7] | 69,064 | [7] | ||||||||||||
PHILIPPINES | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 68,662 | [7] | 63,392 | [7] | 111,571 | [7] | ||||||||||||
JAPAN | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 63,761 | [7] | 81,806 | [7] | 100,807 | [7] | ||||||||||||
THAILAND | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | 44,117 | [7] | 32,209 | [7] | 80,518 | [7] | ||||||||||||
Rest Of The World | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Revenue from unaffiliated customers | $10,111 | [7] | $19,564 | [7] | $10,770 | [7] | ||||||||||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | |||||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | |||||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | |||||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | |||||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[7] | Revenues attributable to a country are based on location of customer site. |
Schedule_of_LongLived_Assets_b
Schedule of Long-Lived Assets by Geographic Area (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Long-lived assets | $329,038 | $275,236 | ||
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Long-lived assets | 206,334 | 211,455 | ||
Foreign | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Long-lived assets | $122,704 | [1] | $63,781 | [1] |
[1] | As of December 31, 2014 and 2013, long-lived assets attributable to Singapore were $99.2 million and $42.5 million, respectively. |
Schedule_of_LongLived_Assets_b1
Schedule of Long-Lived Assets by Geographic Area - Additional Information (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $329,038 | $275,236 |
SINGAPORE | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $99,200 | $42,500 |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 12 Months Ended | 50 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Nov. 30, 2010 |
Stock Repurchase Programs [Line Items] | |||||
Repurchase of stock, shares | 0 | 0 | 0 | 2,600,000 | |
Repurchase of stock, value | $31.20 | ||||
Common stock average price | $11.84 | ||||
Maximum | |||||
Stock Repurchase Programs [Line Items] | |||||
Stock repurchase program, authorized amount | $200 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 50 Months Ended | 0 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Feb. 25, 2015 | Jan. 31, 2015 | Nov. 30, 2010 |
Subsequent Event [Line Items] | |||||||
Repurchase of stock, shares | 0 | 0 | 0 | 2,600,000 | |||
Repurchase of stock, value | $31.20 | ||||||
Common stock average price | $11.84 | ||||||
Maximum | |||||||
Subsequent Event [Line Items] | |||||||
Stock repurchase program, authorized amount | 200 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Dividends payable, amount per share | $0.06 | ||||||
Dividends payable, date to be paid | 24-Mar-15 | ||||||
Dividends payable, record date | 27-Feb-15 | ||||||
Stock repurchase program, intend to repurchase | 300 | ||||||
Repurchase of stock, shares | 900,000 | ||||||
Repurchase of stock, value | 16.9 | ||||||
Common stock average price | $19.44 | ||||||
Subsequent Event | Maximum | |||||||
Subsequent Event [Line Items] | |||||||
Stock repurchase program, authorized amount | $500 |
Consolidated_Quarterly_Stateme
Consolidated Quarterly Statements of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||
Products | $253,162 | [1],[2],[3] | $402,987 | [1],[4] | $452,488 | [1] | $255,386 | $211,710 | [5],[6] | $365,825 | $363,087 | $214,300 | $1,364,024 | $1,154,922 | $1,383,569 | |||
Services | 70,074 | [1],[2],[3] | 75,023 | [1],[4] | 73,079 | [1] | 65,624 | 73,591 | [5],[6] | 67,551 | 65,802 | 66,067 | 283,800 | 273,011 | 273,181 | |||
Total revenues | 323,236 | [1],[2],[3] | 478,010 | [1],[4] | 525,567 | [1] | 321,010 | 285,301 | [5],[6] | 433,376 | 428,889 | 280,367 | 1,647,824 | [7] | 1,427,933 | [7] | 1,656,750 | [7] |
Cost of products | 131,337 | [1],[2],[3] | 182,591 | [1],[4] | 202,411 | [1] | 124,448 | 93,461 | [5],[6] | 150,365 | 158,411 | 96,793 | 640,787 | 499,030 | 642,881 | |||
Cost of services | 31,673 | [1],[2],[3] | 34,298 | [1],[4] | 32,743 | [1] | 29,515 | 31,983 | [5],[6] | 28,717 | 29,245 | 30,157 | 128,229 | 120,102 | 127,832 | |||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 163,010 | [1],[2],[3] | 216,889 | [1],[4] | 235,154 | [1] | 153,963 | 125,444 | [5],[6] | 179,082 | 187,656 | 126,950 | 769,016 | 619,132 | 770,713 | |||
Gross profit | 160,226 | [1],[2],[3] | 261,121 | [1],[4] | 290,413 | [1] | 167,047 | 159,857 | [5],[6] | 254,294 | 241,233 | 153,417 | 878,808 | 808,801 | 886,037 | |||
Engineering and development | 79,188 | [1],[2],[3] | 71,953 | [1],[4] | 73,414 | [1] | 67,085 | 64,613 | [5],[6] | 68,918 | 67,773 | 62,751 | 291,639 | 264,055 | 255,866 | |||
Selling and administrative | 91,157 | [1],[2],[3] | 73,064 | [1],[4] | 77,489 | [1] | 78,003 | 69,523 | [5],[6] | 72,917 | 69,230 | 67,890 | 319,713 | 279,560 | 277,016 | |||
Goodwill impairment | 98,897 | [1],[2],[3] | 98,897 | |||||||||||||||
Acquired intangible assets amortization | 15,957 | [1],[2],[3] | 18,271 | [1],[4] | 18,271 | [1] | 18,271 | 18,284 | [5],[6] | 18,064 | 18,063 | 18,036 | 70,771 | 72,447 | 73,508 | |||
Restructuring and other | 1,198 | [1],[2],[3] | -405 | [1],[4] | 572 | [1] | 600 | [5],[6] | 889 | 259 | 332 | 1,365 | 2,080 | -7,721 | ||||
Total operating expenses | 286,397 | [1],[2],[3] | 162,883 | [1],[4] | 169,746 | [1] | 163,359 | 153,020 | [5],[6] | 160,788 | 155,325 | 149,009 | 782,385 | 618,142 | 598,669 | |||
Income (loss) from operations | -126,171 | [1],[2],[3] | 98,238 | [1],[4] | 120,667 | [1] | 3,688 | 6,837 | [5],[6] | 93,506 | 85,908 | 4,408 | 96,423 | 190,659 | 287,368 | |||
Interest income | -2,035 | [1],[2],[3] | -1,922 | [1],[4] | -1,266 | [1] | -1,036 | -1,206 | [5],[6] | -948 | -903 | -1,072 | -6,259 | -4,129 | -4,090 | |||
Interest expense | 214 | [1],[2],[3] | 144 | [1],[4] | 159 | [1] | 6,417 | 6,771 | [5],[6] | 6,488 | 6,435 | 6,403 | 6,934 | 26,097 | 24,534 | |||
Other (income) expense, net | 463 | [1],[2],[3] | -654 | [1],[4] | 382 | [1] | 180 | -34,168 | [5],[6] | 414 | 19 | 503 | 372 | -33,231 | 948 | |||
(Loss) income before income taxes | -124,813 | [1],[2],[3] | 100,670 | [1],[4] | 121,392 | [1] | -1,873 | 35,439 | [5],[6] | 87,552 | 80,357 | -1,426 | 95,376 | [8],[9] | 201,922 | [8],[9] | 265,976 | [8],[9] |
(Benefit) provision for income taxes | -21,002 | [1],[2],[3] | 17,721 | [1],[4] | 20,187 | [1] | -2,802 | 13,096 | [5],[6] | 18,093 | 13,801 | -8,015 | 14,104 | 36,975 | 48,927 | |||
Net income | ($103,811) | [1],[2],[3] | $82,949 | [1],[4] | $101,205 | [1] | $929 | $22,343 | [5],[6] | $69,459 | $66,556 | $6,589 | $81,272 | $164,947 | $217,049 | |||
Net income (loss) per common share-basic | ($0.48) | [1],[2],[3] | $0.40 | [1],[4] | $0.52 | [1] | $0 | $0.12 | [5],[6] | $0.36 | $0.35 | $0.03 | $0.40 | $0.86 | $1.16 | |||
Net income (loss) per common share-diluted | ($0.48) | [1],[2],[3] | $0.38 | [1],[4] | $0.47 | [1] | $0 | $0.09 | [5],[6] | $0.29 | $0.28 | $0.03 | $0.37 | $0.70 | $0.94 | |||
Cash dividend declared per common share | $0.06 | [1],[2],[3] | $0.06 | [1],[4] | $0.06 | [1] | $0 | $0 | [5],[6] | $0 | $0 | $0 | $0.18 | |||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | |||||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | |||||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | |||||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | |||||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | |||||||||||||||||
[7] | Revenues attributable to a country are based on location of customer site. | |||||||||||||||||
[8] | Interest income, interest expense, other (income) expense, net and pension and postretirement plans actuarial gains and losses are included in Corporate and Eliminations. | |||||||||||||||||
[9] | Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and goodwill impairment charges. |
Consolidated_Quarterly_Stateme1
Consolidated Quarterly Statements of Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Changes to fair value of contingent consideration | ($630) | ($630) | ($8,761) | ||||||||||||
Pension and post retirement net actuarial losses (gain) | 46,564 | -10,340 | 23,320 | ||||||||||||
Goodwill impairment | 98,897 | [1],[2],[3] | 98,897 | ||||||||||||
Other (income) expense, net | -463 | [1],[2],[3] | 654 | [1],[4] | -382 | [1] | -180 | 34,168 | [5],[6] | -414 | -19 | -503 | -372 | 33,231 | -948 |
Defined Benefit Pension And Post Retirement Benefit Plans | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Pension and post retirement net actuarial losses (gain) | $46,600 | ($9,000) | |||||||||||||
[1] | Dividends declared by Teradyne's Board of Directors were paid in each of the second, third and fourth quarters of 2014. | ||||||||||||||
[2] | In the fourth quarter ended December 31, 2014, Teradyne recorded pension and post retirement net actuarial losses of $46.6 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. | ||||||||||||||
[3] | In the fourth quarter ended December 31, 2014, Teradyne recorded a goodwill impairment charge of $98.9 million in its Wireless Test segment. | ||||||||||||||
[4] | Restructuring and other includes a $(0.6) million fair value adjustment to decrease the ZTEC acquisition contingent consideration. | ||||||||||||||
[5] | Other (income) expense, net includes a $34.2 million gain from the sale of an equity investment. | ||||||||||||||
[6] | In the fourth quarter ended December 31, 2013, Teradyne recorded pension and post retirement net actuarial gains of $9.0 million. See Note B: "Accounting Policies" for a discussion of our accounting policy. |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $2,912 | $4,118 | $4,102 | |
Additions Charged to Cost and Expenses | 55 | 69 | 78 | |
Deductions | 476 | 1,275 | [1] | 62 |
Balance at End of Period | 2,491 | 2,912 | 4,118 | |
Inventory Reserve | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 115,857 | 141,838 | 123,512 | |
Additions Charged to Cost and Expenses | 22,193 | 16,592 | 26,849 | |
Other | 6,918 | 2,568 | 5,353 | |
Deductions | 33,716 | 45,141 | 13,876 | |
Balance at End of Period | 111,252 | 115,857 | 141,838 | |
Valuation Allowance of Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 40,386 | 55,446 | 51,066 | |
Additions Charged to Cost and Expenses | 1,380 | 4,546 | 4,626 | |
Deductions | 29 | 19,606 | 246 | |
Balance at End of Period | $41,737 | $40,386 | $55,446 | |
[1] | Based upon an improvement in the aging of accounts receivables in 2013, Teradyne reduced its allowance for doubtful accounts by approximately $1 million. |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Accounts receivable, less allowance for doubtful accounts | $2,491 | $2,912 |
Allowance for Doubtful Accounts | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Accounts receivable, less allowance for doubtful accounts | $1,000 |