Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2018 | Aug. 06, 2018 | |
Document Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 1, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | TER | |
Entity Registrant Name | TERADYNE, INC | |
Entity Central Index Key | 97,210 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 186,437,930 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 480,384 | $ 429,843 | |
Marketable securities | 712,309 | 1,347,979 | |
Accounts receivable, less allowance for doubtful accounts of $2,216 and $2,219 at July 1, 2018 and December 31, 2017, respectively | 454,122 | 272,783 | |
Inventories, net | 135,550 | 107,525 | |
Prepayments and other current assets | 111,820 | 112,151 | |
Total current assets | 1,894,185 | 2,270,281 | |
Property, plant and equipment, net | 285,302 | 268,447 | |
Marketable securities | 111,417 | 125,926 | |
Deferred tax assets | 73,574 | 84,026 | |
Retirement plans assets | 18,252 | 17,491 | |
Other assets | 12,192 | 12,275 | |
Acquired intangible assets, net | 148,173 | 79,088 | |
Goodwill | 388,625 | 252,011 | |
Total assets | 2,931,720 | [1] | 3,109,545 |
Current liabilities: | |||
Accounts payable | 102,737 | 86,393 | |
Accrued employees' compensation and withholdings | 115,264 | 141,694 | |
Deferred revenue and customer advances | 82,491 | 83,614 | |
Other accrued liabilities | 83,681 | 59,083 | |
Contingent consideration | 35,911 | 24,497 | |
Income taxes payable | 32,226 | 59,055 | |
Total current liabilities | 452,310 | 454,336 | |
Retirement plans liabilities | 124,258 | 119,776 | |
Long-term deferred revenue and customer advances | 25,375 | 30,127 | |
Deferred tax liabilities | 22,281 | 6,720 | |
Long-term other accrued liabilities | 22,296 | 10,273 | |
Long-term contingent consideration | 25,003 | 20,605 | |
Long-term incomes taxes payable | 147,360 | 148,075 | |
Long-term debt | 372,897 | 365,987 | |
Total liabilities | 1,191,780 | 1,155,899 | |
Commitments and contingencies (See Note Q) | |||
SHAREHOLDERS' EQUITY | |||
Common stock, $0.125 par value, 1,000,000 shares authorized; 187,962 and 195,548 shares issued and outstanding at July 1, 2018 and December 31, 2017, respectively | 23,495 | 24,444 | |
Additional paid-in capital | 1,645,679 | 1,638,413 | |
Accumulated other comprehensive (loss) income | (3,504) | 18,776 | |
Retained earnings | 74,270 | 272,013 | |
Total shareholders' equity | 1,739,940 | 1,953,646 | |
Total liabilities and shareholders' equity | $ 2,931,720 | $ 3,109,545 | |
[1] | Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Accounts receivable, less allowance for doubtful accounts | $ 2,216 | $ 2,219 |
Common stock, par value | $ 0.125 | $ 0.125 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 187,962,000 | 195,548,000 |
Common stock, shares outstanding | 187,962,000 | 195,548,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Revenues: | ||||
Total revenues | $ 526,929 | $ 696,901 | $ 1,014,396 | $ 1,153,814 |
Cost of revenues: | ||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 219,595 | 306,263 | 437,230 | 498,159 |
Gross profit | 307,334 | 390,638 | 577,166 | 655,655 |
Operating expenses: | ||||
Selling and administrative | 99,410 | 90,111 | 189,916 | 174,903 |
Engineering and development | 75,342 | 82,270 | 149,750 | 158,248 |
Acquired intangible assets amortization | 9,793 | 8,166 | 17,491 | 16,118 |
Restructuring and other | 2,389 | 2,288 | 2,076 | 4,799 |
Total operating expenses | 186,934 | 182,835 | 359,233 | 354,068 |
Income from operations | 120,400 | 207,803 | 217,933 | 301,587 |
Non-operating (income) expense: | ||||
Interest income | (5,427) | (3,292) | (11,407) | (6,812) |
Interest expense | 5,639 | 5,509 | 12,530 | 10,911 |
Other (income) expense, net | 176 | (1,291) | 979 | (1,405) |
Income before income taxes | 120,012 | 206,877 | 215,831 | 298,893 |
Income tax provision | 18,975 | 31,901 | 27,821 | 38,696 |
Net income | $ 101,037 | $ 174,976 | $ 188,010 | $ 260,197 |
Net income per common share: | ||||
Basic | $ 0.53 | $ 0.88 | $ 0.97 | $ 1.30 |
Diluted | $ 0.52 | $ 0.87 | $ 0.94 | $ 1.29 |
Weighted average common shares-basic | 190,730 | 198,774 | 192,992 | 199,390 |
Weighted average common shares-diluted | 194,909 | 201,529 | 199,197 | 201,732 |
Cash dividend declared per common share | $ 0.09 | $ 0.07 | $ 0.18 | $ 0.14 |
Product [Member] | ||||
Revenues: | ||||
Total revenues | $ 434,051 | $ 610,356 | $ 837,976 | $ 983,560 |
Cost of revenues: | ||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 180,777 | 267,752 | 361,735 | 422,634 |
Service [Member] | ||||
Revenues: | ||||
Total revenues | 92,878 | 86,545 | 176,420 | 170,254 |
Cost of revenues: | ||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 38,818 | $ 38,511 | $ 75,495 | $ 75,525 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Net income | $ 101,037 | $ 174,976 | $ 188,010 | $ 260,197 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment | (29,322) | 15,981 | (18,781) | 24,944 |
Available-for-sale marketable securities: | ||||
Unrealized gains (losses) on marketable securities arising during period, net of tax of $(25), $765, $(744), $1,185, respectively | 198 | 985 | (2,489) | 1,498 |
Less: Reclassification adjustment for (gains) losses included in net income, net of tax of $(68), $(42), $11, $(106) respectively | (199) | (83) | 1,469 | (177) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | (1) | 902 | (1,020) | 1,321 |
Defined benefit pension and post-retirement plans: | ||||
Amortization of prior service benefit included in net periodic pension and post-retirement benefit, net of tax of $(18), $(38), $(35), $(77), respectively | (61) | (68) | (123) | (136) |
Other comprehensive (loss) income | (29,384) | 16,815 | (19,924) | 26,129 |
Comprehensive income | $ 71,653 | $ 191,791 | $ 168,086 | $ 286,326 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Unrealized (losses) gains on marketable securities arising during period, tax | $ (25) | $ 765 | $ (744) | $ 1,185 |
Reclassification adjustment for gains included in net income, tax | (68) | (42) | 11 | (106) |
Amortization of prior service benefit included in net periodic pension and post-retirement benefit, net of tax | $ (18) | $ (38) | $ (35) | $ (77) |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 188,010 | $ 260,197 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 33,156 | 32,474 |
Amortization | 20,177 | 22,412 |
Stock-based compensation | 17,625 | 17,312 |
Deferred taxes | 17,312 | (3,563) |
Provision for excess and obsolete inventory | 6,175 | 5,295 |
Contingent consideration adjustment | (8,468) | 2,133 |
Retirement plan actuarial gains | (71) | (2,504) |
Other | 1,168 | 1,153 |
Changes in operating assets and liabilities, net of businesses acquired: | ||
Accounts receivable | (179,403) | (214,189) |
Inventories | (21,283) | (8,149) |
Prepayments and other assets | 1,641 | 4,425 |
Accounts payable and other accrued expenses | (8,155) | 34,504 |
Deferred revenue and customer advances | 10,518 | 5,312 |
Retirement plans contributions | (2,173) | (1,983) |
Income taxes | (26,308) | 14,363 |
Net cash provided by operating activities | 49,921 | 169,192 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (62,663) | (45,967) |
Purchases of marketable securities | (647,071) | (334,819) |
Proceeds from sales of marketable securities | 829,053 | 313,254 |
Proceeds from maturities of marketable securities | 469,862 | 307,607 |
Acquisition of businesses, net of cash acquired | (170,632) | |
Net cash provided by investing activities | 418,549 | 240,075 |
Cash flows from financing activities: | ||
Issuance of common stock under stock purchase and stock option plans | 10,681 | 15,215 |
Repurchase of common stock | (360,795) | (94,328) |
Dividend payments | (34,682) | (27,925) |
Payments related to net settlement of employee stock compensation awards | (19,751) | (12,438) |
Payments of contingent consideration | (13,571) | (1,050) |
Net cash used for financing activities | (418,118) | (120,526) |
Effects of exchange rate changes on cash and cash equivalents | 189 | 1,724 |
Increase in cash and cash equivalents | 50,541 | 290,465 |
Cash and cash equivalents at beginning of period | 429,843 | 307,884 |
Cash and cash equivalents at end of period | $ 480,384 | $ 598,349 |
The Company
The Company | 6 Months Ended |
Jul. 01, 2018 | |
The Company | A. THE COMPANY Teradyne, Inc. (“Teradyne”) is a leading global supplier of automation equipment for test and industrial applications. Teradyne designs, develops, manufactures and sells automatic test systems used to test semiconductors, wireless products, data storage and complex electronics systems in the consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s industrial automation products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing and light industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing costs. Teradyne’s automatic test equipment and industrial automation products and services include: • semiconductor test (“Semiconductor Test”) systems; • 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”); • industrial automation (“Industrial Automation”) products; and • wireless test (“Wireless Test”) systems. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jul. 01, 2018 | |
Accounting Policies | B. ACCOUNTING POLICIES Basis of Presentation The consolidated interim financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair statement of such interim financial statements. Certain prior year amounts were reclassified to conform to the current year presentation. The December 31, 2017 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form 10-K, Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Actual results may differ significantly from these estimates. Revenue from Contracts with Customers Teradyne adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers” (“ASC 606”) “Revenue Recognition” (“ASC 605”) 10-K In accordance with ASC 606, Teradyne recognizes revenues, when or as control is transferred to a customer. Teradyne’s determination of revenue is dependent upon a five step process outlined below. Step 1: Identify the contract with the customer Teradyne accounts for a contract with a customer when there is written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. Step 2: Identify the performance obligations in the contract Teradyne periodically enters into contracts with its customers in which a customer may purchase a combination of goods and or services, such as products with extended warranty obligations. Teradyne determines performance obligations by assessing whether the products or services are distinct from the other elements of the contract. In order to be distinct, the product or service must perform either on its own or with readily available resources and must be separate within the context of the contract. Step 3: Determine the transaction price Teradyne considers the amount stated on the face of the purchase order to be the transaction price. Teradyne does not have material variable consideration, which could impact the stated purchase price agreed to by Teradyne and the customer. Step 4: Allocate the transaction price to the performance obligations in the contract Transaction price is allocated to each individual performance obligation based on the standalone selling price of that performance obligation. Teradyne uses standalone transactions when available to value each performance obligation. If standalone transactions are not available, Teradyne will estimate the standalone selling price through market assessments or cost plus a reasonable margin analysis. Any discounts from standalone selling price are spread proportionally to each performance obligation. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation In order to determine the appropriate timing for revenue recognition, Teradyne first determines if the transaction meets any of three criteria for over time recognition. If the transaction meets the criteria for over time recognition, Teradyne recognizes revenue as the good or service is delivered. Teradyne uses input variables such as hours or months utilized or costs incurred to determine the amount of revenue to recognize in a given period. Input variables are used as they best align consumption with benefit to the customer. For transactions that do not meet the criteria for over time recognition, Teradyne will recognize revenue at a point in time based on an assessment of the five criteria for transfer of control. Teradyne has concluded that revenue should be recognized when shipped or delivered based on contractual terms. Typically acceptance of Teradyne’s products and services is a formality as Teradyne delivers similar systems, instruments and robots to standard specifications. In cases where acceptance is not deemed a formality, Teradyne will defer revenue recognition until customer acceptance. Revenue recognized in accordance with ASC 606 was $523.3 million and $1,006.5 million for the three and six months ended July 1, 2018, respectively. For the three and six months ended July 1, 2018, Teradyne also recognized $3.6 million and $7.9 million, respectively, in revenue on leases of Teradyne systems, which are accounted for outside of ASC 606. Disaggregation of Revenue The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition. For the Three Months Ended July 1, 2018 Semiconductor Test System Test Industrial Wireless Corporate Consolidated System Memory Defense/ Aerospace Storage Production Universal Mobile (in thousands) Americas Point in time $ 12,111 $ 2,827 $ 15,256 $ 5 $ 1,429 $ 16,053 $ 1,199 $ 4,716 $ (110 ) $ 53,486 Over time 8,934 710 6,237 — 795 327 — 122 — 17,125 Europe, Middle East and Africa Point in time 10,227 847 447 — 4,849 26,616 2,000 26 — 45,012 Over time 5,689 254 539 — 1,713 526 — 257 — 8,978 Asia Pacific Point in time 218,352 59,633 385 31,824 3,741 13,895 1,310 27,663 — 356,803 Over time 34,951 2,285 258 1,428 744 131 — 2,103 — 41,900 Lease revenue 3,268 — — — 32 — — 325 — 3,625 Total $ 293,532 $ 66,556 $ 23,122 $ 33,257 $ 13,303 $ 57,548 $ 4,509 $ 35,212 $ (110 ) $ 526,929 For the Six Months Ended July 1, 2018 Semiconductor System Test Industrial Wireless Corporate Consolidated SOC Memory Defense/ Aerospace Storage Production Universal Mobile (in thousands) Americas Point in time $ 21,711 $ 5,691 $ 26,853 $ 284 $ 3,189 $ 30,190 $ 1,199 $ 9,695 $ (332 ) $ 98,480 Over time 17,517 1,406 12,425 — 1,552 652 — 233 — 33,785 Europe, Middle East and Africa Point in time 22,352 986 1,943 — 8,886 49,190 2,000 1,066 — 86,423 Over time 10,888 523 1,090 — 3,272 668 — 484 — 16,925 Asia Pacific Point in time 446,543 125,904 487 41,946 5,603 25,478 1,310 41,329 — 688,600 Over time 68,173 4,607 466 2,961 1,479 204 — 4,399 — 82,289 Lease revenue 7,115 — — — 266 — — 513 — 7,894 Total $ 594,299 $ 139,117 $ 43,264 $ 45,191 $ 24,247 $ 106,382 $ 4,509 $ 57,719 $ (332 ) $ 1,014,396 Performance Obligations Hardware Teradyne hardware consists primarily of semiconductor test systems and instruments, defense/aerospace test instrumentation and systems, storage test systems and instruments, circuit-board test and inspection systems and instruments, collaborative robots, autonomous mobile robots and wireless test systems. The hardware includes a standard 12-month Extended Warranty Customers have the option to purchase an extended warranty, which extends the warranty period for systems and robots beyond the one-year Training and Applications Support Teradyne sells training and applications support to customers either in standalone transactions or included with system purchases. The training and support allow the customer to use Teradyne’s systems efficiently and effectively. Training and applications support included in system orders are valued based on their standalone selling price and all training and applications support is recognized over time as the customer receives and consumes the benefit associated with each. Both are recognized using an input method of hours consumed as this best depicts the transfer of services to the customer. Service Agreements Service agreements are recognized ratably over the period of agreement based on months completed. Post-Contract Customer Support (“PCS”) Teradyne provides support services for certain systems and robots outside of warranty. These services include telephone support, bug fixes, and when-and-if Teradyne does not allow customer returns or provide refunds to customers for any products or services. Contract Balances The following table provides information about contract liabilities. Teradyne does not have material contract assets on the balance sheet. July 1, January 1, (as adjusted) Increase/ (in thousands) Deferred revenue and customer advances $ 82,491 $ 76,638 $ 5,853 Long-term deferred revenue and customer advances 25,375 20,848 4,527 The amount of revenue recognized during the three and six months ended July 1, 2018 that was included within the deferred revenue and customer advances balance at January 1, 2018 was $24.7 million and $46.5 million, respectively, and primarily relates to extended warranties, training, application support, and PCS. Each of these represents a distinct performance obligation. Customers typically pay for these services net 30 to 60 days from the date that transfer of control of the associated system or product occurs. Remaining Performance Obligations Teradyne does not have material remaining performance obligations from contracts with an original expected duration of greater than one year. Significant Judgments Teradyne makes no significant judgements in determining the amount or timing of revenue recognition. Practical Expedients Teradyne has adopted the practical expedients available within ASC 340 “Other Assets and Deferred Costs” Teradyne has adopted the practical expedient, which states an entity need not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. Teradyne does not have material payments associated with performance obligations outside this one-year Impacts The following tables summarize the impact of ASC 606 to Teradyne’s consolidated financial statements. Differences are the result of timing differences between the recognition of revenue under ASC 606 and ASC 605 primarily with respect to software transactions deferred due to lack of vendor specific objective evidence of price under ASC 605 and Teradyne’s assessment of acceptance under ASC 606. Under Legacy GAAP, Teradyne did not recognize revenue prior to acceptance if payment, title, or risk of loss was tied to acceptance. Under ASC 606, Teradyne recognizes revenue prior to receipt of acceptance if acceptance is deemed a formality. Condensed Consolidated Balance Sheet: July 1, 2018 As Adjustments to Legacy (in thousands, except per share amount) ASSETS Accounts receivable, less allowance for doubtful accounts $ 454,122 $ (95,102 ) $ 359,020 Inventories, net 135,550 33,830 169,380 Deferred tax assets 73,574 (3,494 ) 70,080 LIABILITIES Deferred revenue and customer advances $ 82,491 $ (7,254 ) $ 75,237 Income taxes payable 32,226 (9,002 ) 23,224 Long-term deferred revenue and customer advances 25,375 (9,836 ) 15,539 SHAREHOLDERS’ EQUITY Retained earnings $ 74,270 $ (38,674 ) $ 35,596 Condensed Consolidated Statement of Operation: For the Three Months ended July 1, 2018 As Adjustments to Legacy (in thousands, except per share amount) Total revenues $ 526,929 $ (28,626 ) $ 498,303 Total cost of revenues 219,595 (6,081 ) 213,514 Income tax provision 18,975 (4,569 ) 14,406 Net income 101,037 (17,976 ) 83,061 Net income per common share: Basic $ 0.53 $ (0.09 ) $ 0.44 Diluted $ 0.52 $ (0.09 ) $ 0.43 For the Six Months ended July 1, 2018 As Adjustments to Legacy (in thousands, except per share amount) Total revenues $ 1,014,396 $ (94,268 ) $ 920,128 Total cost of revenues 437,230 (33,830 ) 403,400 Income tax provision 27,821 (9,084 ) 18,737 Net income 188,010 (51,354 ) 136,656 Net income per common share: Basic $ 0.97 $ (0.27 ) $ 0.71 Diluted $ 0.94 $ (0.26 ) $ 0.69 Retirement Benefits In March 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost non-service non-service non-operating Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Contingencies and Litigation Teradyne may be subject to certain legal proceedings, lawsuits and other claims as discussed in Note Q: “Commitments and Contingencies.” Teradyne accrues for a loss contingency, including legal proceedings, lawsuits, pending claims and other legal matters, when the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. When the reasonable estimate of the loss is within a range of amounts, and no amount in the range constitutes a better estimate than any other amount, Teradyne accrues the amount at the low end of the range. Teradyne adjusts the accruals from time to time as additional information is received, but the loss incurred may be significantly greater than or less than the amount accrued. Loss contingencies are disclosed when they are material and there is at least a reasonable possibility that a loss has been incurred. Attorney fees related to legal matters are expensed as incurred. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jul. 01, 2018 | |
Recently Issued Accounting Pronouncements | C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS On January 26, 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment.” one-step In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” “Leases.” of-use |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 01, 2018 | |
Acquisitions | D. ACQUISITIONS Mobile Industrial Robots On April 25, 2018, Teradyne acquired all the issued and outstanding shares of Mobile Industrial Robots ApS (“MiR”), a Danish limited liability company located in Odense, Denmark. MiR is the leading maker of collaborative autonomous mobile robots for industrial applications. MiR is part of Teradyne’s Industrial Automation segment. The total preliminary purchase price of $196.6 million consisted of $145.2 million of cash paid and $51.4 million of contingent consideration, measured at fair value. The contingent consideration is payable in Euros upon the achievement of certain thresholds and targets for revenue and earnings before interest and taxes for periods from January 1, 2018 to December 31, 2018; January 1, 2018 to December 31, 2019; and January 1, 2018 to December 31, 2020. At July 1, 2018, the maximum amount of contingent consideration that could be paid is $117 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 significant portion of the risk in achieving the contingent consideration was captured in the probabilities assigned to meeting each target. The MiR 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 preliminary total purchase price to MiR’s net tangible liabilities 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 assets and net tangible liabilities in the amount of $135.7 million was allocated to goodwill, which is not deductible for tax purposes. The purchase price and purchase price allocation are preliminary pending the final determination of the fair value of contingent consideration, acquired assets and assumed liabilities. MiR’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition. The following table represents the preliminary allocation of the preliminary purchase price: Purchase Price Allocation (in thousands) Goodwill $ 135,747 Intangible assets 79,660 Tangible assets acquired and liabilities assumed: Current assets 6,039 Non-current 299 Accounts payable and current liabilities (7,336 ) Long-term deferred tax liabilities (17,779 ) Total purchase price $ 196,630 Teradyne estimated the fair value of intangible assets using the income and cost approaches. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives. Components of these intangible assets and their estimated useful lives at the acquisition date are as follows: Fair Value Estimated Useful Life (in thousands) (in years) Developed technology $ 63,820 7.0 Trademarks and tradenames 12,060 11.0 Customer relationships 3,770 2.5 Backlog 10 0.2 Total intangible assets $ 79,660 7.4 For the period from April 25, 2018 to July 1, 2018, MiR contributed $4.5 million of revenues and had a $(1.5) million loss from operations before income taxes. The following unaudited pro forma information gives effect to the acquisition of MiR as if the acquisition occurred on January 1, 2017. 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 Three Months Ended For the Six Months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 (in thousands) Revenue $ 528,238 $ 699,790 $ 1,021,194 $ 1,158,228 Net income 101,780 172,238 186,787 251,728 Net income per common share: Basic $ 0.53 $ 0.87 $ 0.97 $ 1.26 Diluted $ 0.52 $ 0.85 $ 0.94 $ 1.25 Pro forma results for the three and six months ended July 1, 2018 were adjusted to exclude $2.3 million and $2.9 million, respectively, of acquisition related costs, and $0.4 million of non-recurring Pro forma results for the six months ended July 2, 2017 were adjusted to include $2.9 million of acquisition related costs, and $0.4 million of non-recurring Energid Technologies Corporation On February 26, 2018, Teradyne acquired all of the issued and outstanding shares of Energid Technologies Corporation (“Energid”) for a total purchase price of approximately $27.6 million. Energid’s technology enables and simplifies the programming of complex robotic motions used in a wide variety of end markets, ranging from heavy industry to healthcare, utilizing both traditional robots and collaborative robots. The Energid acquisition was accounted for as a business combination and, accordingly, Energid’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition. As of the acquisition date, Teradyne’s purchase price allocation was goodwill of $14.4 million, acquired intangible assets of $12.3 million with an average estimated useful life of 7.7 years, and $1.0 million of net tangible assets. The acquisition was not material to Teradyne’s condensed consolidated financial statements. |
Inventories
Inventories | 6 Months Ended |
Jul. 01, 2018 | |
Inventories | E. INVENTORIES Inventories, net consisted of the following at July 1, 2018 and December 31, 2017: July 1, December 31, (in thousands) Raw material $ 76,888 $ 62,668 Work-in-process 26,378 19,464 Finished goods 32,284 25,393 $ 135,550 $ 107,525 Inventory reserves at July 1, 2018 and December 31, 2017 were $103.2 million and $102.9 million, respectively. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jul. 01, 2018 | |
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 Effective January 1, 2018, Teradyne adopted ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): 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. Teradyne uses the market and income approach techniques to value its financial instruments and there were no changes in valuation techniques during the three and six months ended July 1, 2018 and July 2, 2017. As defined in ASC 820-10, Fair Value Measurements and Disclosures, 820-10 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 is considered a Level 2 input; or 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. Teradyne’s available-for-sale Realized gains recorded in the three and six months ended July 1, 2018 were $0.1 million and $0.4 million, respectively. Realized losses recorded in the three and six months ended July 1, 2018 were $0.0 million and $1.5 million, respectively. Realized gains recorded in the three and six months ended July 2, 2017 were $0.2 million and $0.5 million, respectively. Realized losses recorded in the three and six months ended July 2, 2017 were $0.1 million and $0.2 million, respectively. Realized gains are included in interest income and realized losses are included in interest expense. Unrealized gains and losses on available-for-sale During the three and six months ended July 1, 2018 and July 2, 2017, 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 July 1, 2018 and December 31, 2017. July 1, 2018 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 209,827 $ — $ — $ 209,827 Cash equivalents 247,525 23,032 — 270,557 Available-for-sale U.S. Treasury securities — 528,857 — 528,857 Commercial paper — 218,520 — 218,520 Corporate debt securities — 38,372 — 38,372 U.S. government agency securities — 10,009 — 10,009 Certificates of deposit and time deposits — 1,318 — 1,318 Debt mutual funds 2,810 — — 2,810 Non-U.S. — 551 — 551 Equity securities: Mutual funds 23,289 — — 23,289 $ 483,451 $ 820,659 $ — $ 1,304,110 Derivative assets — 7 — 7 Total $ 483,451 $ 820,666 $ — $ 1,304,117 Liabilities Contingent consideration $ — $ — $ 60,914 $ 60,914 Derivative liabilities — 253 — 253 Total $ — $ 253 $ 60,914 $ 61,167 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 457,352 $ 23,032 $ — $ 480,384 Marketable securities — 712,309 — 712,309 Long-term marketable securities 26,099 85,318 — 111,417 Prepayments — 7 — 7 Total $ 483,451 $ 820,666 $ — $ 1,304,117 Liabilities . Other current liabilities $ — $ 253 $ — $ 253 Contingent consideration — — 35,911 35,911 Long-term contingent consideration — — 25,003 25,003 Total $ — $ 253 $ 60,914 $ 61,167 December 31, 2017 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 197,955 $ — $ — $ 197,955 Cash equivalents 206,335 25,553 — 231,888 Available for sale securities: U.S. Treasury securities — 855,795 — 855,795 Commercial paper — 282,840 — 282,840 Certificates of deposit and time deposits — 167,342 — 167,342 Corporate debt securities — 133,186 — 133,186 Equity and debt mutual funds 23,430 — — 23,430 U.S. government agency securities — 10,726 — 10,726 Non-U.S. — 586 — 586 $ 427,720 $ 1,476,028 $ — $ 1,903,748 Derivative assets — 389 — 389 Total $ 427,720 $ 1,476,417 $ — $ 1,904,137 Liabilities Contingent consideration $ — $ — $ 45,102 $ 45,102 Derivative liabilities — 446 — 446 Total $ — $ 446 $ 45,102 $ 45,548 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 404,290 $ 25,553 $ — $ 429,843 Marketable securities — 1,347,979 — 1,347,979 Long-term marketable securities 23,430 102,496 — 125,926 Prepayments — 389 — 389 Total $ 427,720 $ 1,476,417 $ — $ 1,904,137 Liabilities Other accrued liabilities $ — $ 446 $ — $ 446 Contingent consideration — — 24,497 24,497 Long-term contingent consideration — — 20,605 20,605 Total $ — $ 446 $ 45,102 $ 45,548 Changes in the fair value of Level 3 contingent consideration for the three and six months ended July 1, 2018 and July 2, 2017 were as follows: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Balance at beginning of period $ 15,581 $ 37,916 $ 45,102 $ 38,332 Acquisition of MiR 51,399 — 51,399 — Foreign currency impact (2,566 ) — (2,566 ) — Payments (a) — — (24,553 ) (1,050 ) Fair value adjustment (b) (3,500 ) 1,499 (8,468 ) 2,133 Balance at end of period $ 60,914 $ 39,415 $ 60,914 $ 39,415 (a) In the six months ended July 1, 2018, Teradyne paid $24.6 million of contingent consideration for the earn-out earn-out (b) In the three and six months ended July 1, 2018, the fair value of contingent consideration for the earn-out earn-out The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instruments: Liability July 1, Valuation Technique Unobservable Inputs (in thousands) Contingent consideration (Universal Robots) $12,081 Monte Carlo Simulation Revenue volatility 11.4% Discount Rate 3.2% Contingent consideration (MiR) $48,833 Monte Carlo Simulation Revenue volatility 18.0% Discount Rate 0.5% As of July 1, 2018, the significant unobservable inputs used in the Monte Carlo simulation to fair value the Universal Robots contingent consideration include forecasted revenue, revenue volatility and discount rate. Increases or decreases in the inputs would result in a higher or lower fair value measurement. The maximum payment for the remaining Universal Robots revenue earn-out As of July 1, 2018, the significant unobservable inputs used in the Monte Carlo simulation to fair value the MiR contingent consideration include forecasted revenue, revenue volatility, and discount rate. Increases or decreases in the inputs would result in a higher or lower fair value measurement. As of July 1, 2018, the maximum amount of contingent consideration that could be paid in connection with the acquisition of MiR is $117.0 million. The earn-out The carrying amounts and fair values of Teradyne’s financial instruments at July 1, 2018 and December 31, 2017 were as follows: July 1, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 480,384 $ 480,384 $ 429,843 $ 429,843 Marketable securities 823,726 823,726 1,473,905 1,473,905 Derivative assets 7 7 389 389 Liabilities Contingent consideration 60,914 60,914 45,102 45,102 Derivative liabilities 253 253 446 446 Convertible debt (1) 372,897 612,693 365,987 659,525 (1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. The fair values of accounts receivable, net and accounts payable approximate the carrying value due to the short-term nature of these instruments. The following table summarizes the composition of available-for-sale July 1, 2018 Available-for-Sale Fair Market Value of Investments with Unrealized Cost Unrealized Gain Unrealized (Loss) Fair Market Value (in thousands) U.S. Treasury securities $ 530,944 $ 29 $ (2,116 ) $ 528,857 $ 477,385 Commercial paper 218,594 9 (83 ) 218,520 184,349 Corporate debt securities 38,709 668 (1,005 ) 38,372 20,956 U.S. government agency securities 10,066 1 (58 ) 10,009 7,034 Debt mutual funds 2,878 — (68 ) 2,810 1,681 Certificates of deposit and time deposits 1,318 — — 1,318 — Non-U.S. 552 — (1 ) 551 179 $ 803,061 $ 707 $ (3,331 ) $ 800,437 $ 691,584 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 712,732 $ 68 $ (491 ) $ 712,309 $ 620,327 Long-term marketable securities 90,329 639 (2,840 ) 88,128 71,257 $ 803,061 $ 707 $ (3,331 ) $ 800,437 $ 691,584 The following table summarizes the composition of available-for-sale December 31, 2017 Available-for-Sale Fair Market Value of Investments with Unrealized Losses Cost Unrealized Gain Unrealized (Loss) Fair Market Value (in thousands) U.S. Treasury securities $ 858,258 $ 72 $ (2,535 ) $ 855,795 $ 850,163 Commercial paper 283,009 18 (187 ) 282,840 258,933 Certificates of deposit and time deposits 167,523 6 (187 ) 167,342 138,340 Corporate debt securities 131,179 2,380 (373 ) 133,186 91,010 Equity and debt mutual funds 19,403 4,102 (75 ) 23,430 1,723 U.S. government agency securities 10,775 — (49 ) 10,726 10,726 Non-U.S. 582 4 — 586 — $ 1,470,729 $ 6,582 $ (3,406 ) $ 1,473,905 $ 1,350,895 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 1,349,970 $ 38 $ (2,029 ) $ 1,347,979 $ 1,288,844 Long-term marketable securities 120,759 6,544 (1,377 ) 125,926 62,051 $ 1,470,729 $ 6,582 $ (3,406 ) $ 1,473,905 $ 1,350,895 As of July 1, 2018, the fair market value of investments in available-for-sale As of December 31, 2017, the fair market value of investments with unrealized losses totaled $1,350.9 million. Of this value, $141.0 million had unrealized losses of $1.2 million for greater than one year and $1,209.9 million had unrealized losses of $2.2 million 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 July 1, 2018 and December 31, 2017 were temporary. The contractual maturities of investments in debt securities held at July 1, 2018 were as follows: July 1, 2018 Cost Fair Market (in thousands) Due within one year $ 712,732 $ 712,309 Due after 1 year through 5 years 32,201 32,080 Due after 5 years through 10 years 15,455 14,587 Due after 10 years 39,795 38,651 Total $ 800,183 $ 797,627 Contractual maturities of investments in debt securities held at July 1, 2018 exclude $2.8 million of debt mutual funds as they do not have a contractual maturity date. 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 monetary assets and liabilities denominated in foreign currencies. The notional amount of foreign currency forward contracts at July 1, 2018 and December 31, 2017 was $93.4 million and $116.8 million, respectively. 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 July 1, 2018 and December 31, 2017: Balance Sheet Location July 1, 2018 December 31, 2017 (in thousands) Derivatives not designated as hedging instruments: Foreign currency forward contracts assets Prepayments $ 7 $ 389 Foreign currency forward contracts liabilities Other current liabilities (253 ) (446 ) Total derivatives $ (246 ) $ (57 ) The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and six months ended July 1, 2018 and July 2, 2017. Location of Losses (Gains) Recognized in For the Three Months Ended For the Six Months Ended July 1, July 2, July 1, July 2, (in thousands) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other (income) expense, net $ 1,826 $ (1,586 ) $ 3,401 $ (575 ) (1) The table does not reflect the corresponding gains and losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies. (2) For the three and six months ended July 1, 2018, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.9 million and $2.5 million, respectively. (3) For the three and six months ended July 2, 2017, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.4 million and $0.9 million, respectively. See Note G: “Debt” regarding derivatives related to the convertible senior notes. |
Debt
Debt | 6 Months Ended |
Jul. 01, 2018 | |
Debt | G. DEBT Convertible Senior Notes On December 12, 2016, Teradyne completed a private offering of $460.0 million convertible senior unsecured notes (the “Notes”). The Notes will mature on December 15, 2023, unless earlier repurchased or converted. The Notes bear interest from December 12, 2016 at a rate of 1.25% per year payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2017. The Notes will be convertible at the option of the noteholders at any time prior to the close of business on the business day immediately preceding September 15, 2023, under the following circumstances: (1) during any calendar quarter beginning after March 31, 2017 (and only during such calendar quarter), if the closing sale price of Teradyne’s common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the closing sale price of the Teradyne’s common stock and the conversion rate on each such trading day; and (3) upon the occurrence of specified corporate events. On or after September 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Teradyne may satisfy its conversion obligation by paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock, at Teradyne’s election. The conversion rate for the Notes is 31.4463 shares per $1,000 principal amount, which is equivalent to a conversion price of approximately $31.80 per share of Teradyne’s common stock. The conversion rate is subject to adjustment under certain circumstances. Concurrent with the offering of the Notes, Teradyne entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of approximately $31.80. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 14.5 million shares of Teradyne’s common stock. The convertible note hedge is considered indexed to Teradyne’s stock as the terms of the Note Hedge Transactions do not contain an exercise contingency and the settlement amount equals the difference between the fair value of a fixed number of Teradyne’s shares and a fixed strike price. Because the only variable that can affect the settlement amount is Teradyne’s stock price, which is an input to the fair value of a fixed-for-fixed Separately and concurrent with the pricing of the Notes, Teradyne entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which it sold net-share-settled The Note Hedge Transactions are expected to reduce the potential dilution to Teradyne’s common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of Teradyne’s common stock exceeds the applicable strike price of the warrant. The net cost of the Notes Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33 million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to Teradyne’s common stock and/or purchased shares of Teradyne’s common stock or other securities, including the Notes, concurrent with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to Teradyne’s common stock or by selling Teradyne’s common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely affect the value of Teradyne’s common stock and the Notes. Teradyne’s effective annual interest rate on the Notes will be approximately 5.0%. The Notes are classified as long-term debt in the balance sheet based on their December 15, 2023 maturity date. Debt issuance costs of approximately $7.2 million are being amortized to interest expense using the effective interest method over the seven year term of the Notes. As of July 1, 2018, unamortized debt issuance costs were approximately $5.8 million. The below tables represent the key components of Teradyne’s convertible senior notes: July 1, 2018 December 31, 2017 (in thousands) Debt principal $ 460,000 $ 460,000 Unamortized discount 87,103 94,013 Net carrying amount of convertible debt $ 372,897 $ 365,987 For the Three Months For the Six Months July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 (in thousands) Contractual interest expense on the coupon $ 1,438 $ 1,438 $ 2,875 $ 2,875 Amortization of the discount component and debt issue fees recognized as interest expense 3,477 3,308 6,911 6,576 Total interest expense on the convertible debt $ 4,915 $ 4,746 $ 9,786 $ 9,451 As of July 1, 2018, the remaining unamortized discount was $87.1 million, which will be amortized over 5.5 years using the effective interest rate method. The carrying amount of the equity component was $100.8 million. As of July 1, 2018, the if-converted Revolving Credit Facility On April 27, 2015, Teradyne entered into a Credit Agreement (the “Credit Agreement”) with Barclays Bank PLC, as administrative agent and collateral agent, and the lenders party thereto. The Credit Agreement provides for a five-year, senior secured revolving credit facility of up to $350 million (the “Credit Facility”). The Credit Agreement further provides that, subject to customary conditions, Teradyne may seek to obtain from existing or new lenders incremental commitments under the Credit Facility in an aggregate principal amount not to exceed $150 million. Proceeds from the Credit Facility may be used for general corporate purposes and working capital. Teradyne incurred $2.3 million in costs related to the revolving credit facility. These costs are being amortized over the five-year term of the revolving credit facility and are included in interest expense in the statements of operations. As of August 10, 2018, Teradyne has not borrowed any funds under the Credit Facility. The interest rates applicable to loans under the Credit Facility are, at Teradyne’s option, equal to either a base rate plus a margin ranging from 0.00% to 1.00% per annum or LIBOR plus a margin ranging from 1.00% to 2.00% per annum, based on the Consolidated Leverage Ratio of Teradyne and its Restricted Subsidiaries. In addition, Teradyne will pay a commitment fee on the unused portion of the commitments under the Credit Facility ranging from 0.125% to 0.350% per annum, based on the then applicable Consolidated Leverage Ratio. Teradyne is not required to repay any loans under the Credit Facility prior to maturity, subject to certain customary exceptions. Teradyne is permitted to prepay all or any portion of the loans under the Credit Facility prior to maturity without premium or penalty, other than customary LIBOR breakage costs. The Credit Agreement contains customary events of default, representations, warranties and affirmative and negative covenants that, among other things, limit Teradyne’s and its Restricted Subsidiaries’ ability to sell assets, grant liens on assets, incur other secured indebtedness and make certain investments and restricted payments, all subject to exceptions set forth in the Credit Agreement. The Credit Agreement also requires Teradyne to satisfy two financial ratios measured as of the end of each fiscal quarter: a consolidated leverage ratio and an interest coverage ratio. As of August 10, 2018, Teradyne was in compliance with all covenants. The Credit Facility is guaranteed by certain of Teradyne’s domestic subsidiaries and collateralized by assets of Teradyne and such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. |
Prepayments
Prepayments | 6 Months Ended |
Jul. 01, 2018 | |
Prepayments | H. PREPAYMENTS Prepayments consist of the following and are included in prepayments and other assets on the balance sheet: July 1, December 31, (in thousands) Contract manufacturer and supplier prepayments $ 78,148 $ 82,503 Prepaid maintenance and other services 8,651 8,189 Prepaid taxes 6,801 5,039 Other prepayments 13,114 12,386 Total prepayments $ 106,714 $ 108,117 |
Deferred Revenue and Customer A
Deferred Revenue and Customer Advances | 6 Months Ended |
Jul. 01, 2018 | |
Deferred Revenue and Customer Advances | I. DEFERRED REVENUE AND CUSTOMER ADVANCES Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances on the balance sheet: July 1, December 31, (in thousands) Maintenance and training $ 60,993 $ 57,256 Extended warranty 25,971 24,438 Customer advances, undelivered elements and other 20,902 32,047 Total deferred revenue and customer advances $ 107,866 $ 113,741 |
Product Warranty
Product Warranty | 6 Months Ended |
Jul. 01, 2018 | |
Product Warranty | J. PRODUCT WARRANTY Teradyne generally provides a one-year For the Three Months Ended For the Six Months Ended July 1, July 2, July 1, July 2, (in thousands) Balance at beginning of period $ 7,548 $ 7,054 $ 8,200 $ 7,203 Acquisition 41 — 41 — Accruals for warranties issued during the period 3,348 5,294 6,411 8,315 Adjustments related to pre-existing (34 ) 7 (173 ) (464 ) Settlements made during the period (3,767 ) (3,262 ) (7,343 ) (5,961 ) Balance at end of period $ 7,136 $ 9,093 $ 7,136 $ 9,093 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 on the balance sheet. For the Three Months Ended For the Six Months Ended July 1, July 2, July 1, July 2, (in thousands) Balance at beginning of period $ 24,590 $ 24,969 $ 24,438 $ 28,200 Deferral of new extended warranty revenue 6,701 10,442 11,839 14,490 Recognition of extended warranty deferred revenue (5,320 ) (6,034 ) (10,306 ) (13,313 ) Balance at end of period $ 25,971 $ 29,377 $ 25,971 $ 29,377 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 01, 2018 | |
Stock-Based Compensation | K. STOCK-BASED COMPENSATION Under Teradyne’s stock compensation plans, Teradyne grants 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”). 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 Commencing in January 2014, Teradyne granted performance-based restricted stock units (“PRSUs”) to its executive officers with a performance metric based on relative total shareholder return (“TSR”). For TSR grants issued in 2018 and 2017, Teradyne’s three-year TSR performance is measured against the New York Stock Exchange (“NYSE”) Composite Index. The final number of TSR PRSUs that vest will vary based upon the level of performance achieved from 200% to 0% of the target shares capped at four times the grant date value. The TSR PRSUs will vest upon the three-year anniversary of the grant date. 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 shorter of the three-year service period or the period from the grant date to the date described in the retirement provisions below. Compensation expense for employees meeting the retirement provisions prior to the grant date will be recognized in full on the date of the grant. 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 below. In January 2018 and 2017, Teradyne granted PRSUs to its executive officers with a performance metric based on three-year cumulative non-GAAP Non-GAAP non-cash non-recurring 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 all or a portion of 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. Except as set forth in the preceding sentence, no PRSUs will vest if the executive officer is no longer an employee at the end of the three-year period. During the six months ended July 1, 2018 and July 2, 2017, Teradyne granted 0.1 million and 0.1 million TSR PRSUs, respectively, with a grant date fair value of $54.85 and $35.66, respectively. The fair value was estimated using the Monte Carlo simulation model with the following assumptions: For the Six Months July 1, July 2, Risk-free interest rate 2.2 % 1.5 % Teradyne volatility-historical 26.8 % 26.6 % NYSE Composite Index volatility-historical 12.4 % 13.4 % Dividend yield 0.8 % 1.0 % Expected volatility was based on the historical volatility of Teradyne’s stock and the NYSE Composite Index for the 2018 and 2017 grant 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 $0.36 per share for 2018 grants and $0.28 per share for 2017 grants, divided by Teradyne’s stock price on the grant date of $47.70 for the 2018 grant and $28.56 for the 2017 grant. During the six months ended July 1, 2018 and July 2, 2017, Teradyne granted 0.1 million and 0.1 million, respectively, of PBIT PRSUs with a grant date fair value of $46.62 and $27.72, respectively. During the six months ended July 1, 2018, Teradyne granted 0.6 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $46.38, 0.1 million of service-based restricted stock unit awards to non-employee directors at a weighted average grant date fair value of $35.81, and 0.1 million of service-based stock options to executive officers at a weighted average grant date fair value of $12.17. During the six months ended July 2, 2017, Teradyne granted 0.8 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $27.98, 0.1 million of service-based restricted stock unit awards to non-employee Restricted stock unit awards granted to employees vest in equal annual installments over four years. 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. The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Six Months July 1, July 2, Expected life (years) 5.0 5.0 Risk-free interest rate 2.4 % 2.0 % Volatility-historical 26.4 % 27.8 % Dividend yield 0.8 % 1.0 % Teradyne determined the stock options’ expected life based upon historical exercise data for executive officers, the age of the executive officers and the terms of the stock option grant. Volatility was determined using historical volatility for a period equal to the expected life. The risk-free 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 $0.36 per share for 2018 grants and $0.28 per share for 2017 grants divided by Teradyne’s stock price on the grant date of $47.70 for the 2018 grant and $28.56 for the 2017 grant. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) | L. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss), which are presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Six Months Ended July 1, 2018 Balance at December 31, 2017, net of tax of $0, $1,815, $(932), respectively $ 15,919 $ 1,362 $ 1,495 $ 18,776 Other comprehensive loss before reclassifications, net of tax of $0, $(744), $0, respectively (18,781 ) (2,489 ) — (21,270 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $0, $11, $(35), respectively — 1,469 (123 ) 1,346 Net current period other comprehensive loss, net of tax of $0, $(733), $(35), respectively (18,781 ) (1,020 ) (123 ) (19,924 ) Reclassification of tax effects resulting of the Tax Reform Act, $0, $(691), $(78), respectively (a) — 691 78 769 Reclassification of unrealized gains on equity securities, net of tax of $0, $(902), $0, respectively (b) — (3,125 ) — (3,125 ) Balance at July 1, 2018, net of tax of $0, $(511), $(1,045), respectively $ (2,862 ) $ (2,092 ) $ 1,450 $ (3,504 ) (a) In the six months ended July 1, 2018, Teradyne early adopted the ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” (b) In the six months ended July 1, 2018, Teradyne adopted the ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Six Months Ended July 2, 2017 Balance at December 31, 2016, net of tax of $0, $209, $(778), respectively $ (21,921 ) $ (60 ) $ 1,767 $ (20,214 ) Other comprehensive income before reclassifications, net of tax of $0, $1,185, $0, respectively 24,944 1,498 — 26,442 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(106), $(77), respectively — (177 ) (136 ) (313 ) Net current period other comprehensive income (loss), net of tax of $0, $1,079, $(77), respectively 24,944 1,321 (136 ) 26,129 Balance at July 2, 2017, net of tax of $0, $1,288, $(855), respectively $ 3,023 $ 1,261 $ 1,631 $ 5,915 Reclassifications out of accumulated other comprehensive income (loss) to the statement of operations for the three and six months ended July 1, 2018 and July 2, 2017 were as follows: Details about Accumulated Other Comprehensive Income For the Three Months Ended For the Six Months Ended Affected Line Item July 1, July 2, July 1, July 2, (in thousands) Available-for-sale Unrealized gains (losses), net of tax of $68, $42, $(11), $106, respectively $ 199 $ 83 $ (1,469 ) $ 177 Interest income and Interest (expense) Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $18, $38, $35, $77, respectively 61 68 123 136 (a) Total reclassifications, net of tax of $86, $80, $24, $183, respectively $ 260 $ 151 $ (1,346 ) $ 313 Net income (a) The amortization of prior service benefit is included in the computation of net periodic pension cost and postretirement benefit. See Note P: “Retirement Plans.” |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 6 Months Ended |
Jul. 01, 2018 | |
Goodwill and Acquired Intangible Assets | M. GOODWILL AND ACQUIRED INTANGIBLE ASSETS Goodwill Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, “Intangibles—Goodwill and Other” The changes in the carrying amount of goodwill by reportable segments for the six months ended July 1, 2018, were as follows: Wireless Test Industrial Automation System Test Semiconductor Test Total (in thousands) Balance at December 31, 2017 Goodwill $ 361,819 $ 233,519 $ 158,699 $ 260,540 $ 1,014,577 Accumulated impairment losses (353,843 ) — (148,183 ) (260,540 ) (762,566 ) 7,976 233,519 10,516 — 252,011 MiR acquisition — 135,747 — — 135,747 Energid acquisition — 14,394 — — 14,394 Foreign currency translation adjustment — (13,527 ) — — (13,527 ) Balance at July 1, 2018 Goodwill 361,819 370,133 158,699 260,540 1,151,191 Accumulated impairment losses (353,843 ) — (148,183 ) (260,540 ) (762,566 ) $ 7,976 $ 370,133 $ 10,516 $ — $ 388,625 Intangible 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. Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet: July 1, 2018 Gross Carrying Amount (1)(2) Accumulated Amortization (2) Foreign Net Carrying Amount (in thousands) Developed technology $ 341,227 $ (236,924 ) $ (2,687 ) $ 101,616 Customer relationships 100,891 (86,509 ) (118 ) 14,264 Tradenames and trademarks 63,240 (30,530 ) (437 ) 32,273 Non-compete 320 (300 ) — 20 Backlog 10 (10 ) — — Total intangible assets $ 505,688 $ (354,273 ) $ (3,242 ) $ 148,173 December 31, 2017 Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) Developed technology $ 270,877 $ (226,190 ) $ 1,618 $ 46,305 Customer relationships 92,741 (83,585 ) 171 9,327 Tradenames and trademarks 50,100 (27,120 ) 416 23,396 Non-compete 320 (260 ) — 60 Total intangible assets $ 414,038 $ (337,155 ) $ 2,205 $ 79,088 (1) Includes intangible assets acquired in 2018, $79.7 million from the MiR acquisition and $12.3 million from the Energid acquisition. (2) In 2018, $0.3 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. Aggregate intangible asset amortization expense was $9.8 million and $17.5 million, respectively, for the three and six months ended July 1, 2018 and $8.2 million and $16.1 million, respectively, for the three and six months ended July 2, 2017. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2018 (remainder) 20,856 2019 37,891 2020 23,671 2021 14,734 2022 13,841 Thereafter 37,180 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jul. 01, 2018 | |
Net Income Per Common Share | N. NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 101,037 $ 174,976 $ 188,010 $ 260,197 Weighted average common shares-basic 190,730 198,774 192,992 199,390 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 2,643 752 3,520 376 Convertible note hedge warrant shares (2) — — 915 — Restricted stock units 1,219 1,622 1,444 1,576 Stock options 274 318 298 354 Employee stock purchase plan 43 63 28 36 Dilutive potential common shares 4,179 2,755 6,205 2,342 Weighted average common shares-diluted 194,909 201,529 199,197 201,732 Net income per common share-basic $ 0.53 $ 0.88 $ 0.97 $ 1.30 Net income per common share-diluted $ 0.52 $ 0.87 $ 0.94 $ 1.29 (1) Incremental shares from 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 $31.80, multiplied by 14.5 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 $39.91, multiplied by 14.5 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. The computation of diluted net income per common share for the three and six months ended July 1, 2018 excludes the effect of the potential vesting of 0.7 million and 0.6 million shares of restricted stock units because the effect would have been anti-dilutive. The computation of diluted net income per common share for the three and six months ended July 2, 2017 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 million shares because the effect would have been anti-dilutive. |
Restructuring and Other
Restructuring and Other | 6 Months Ended |
Jul. 01, 2018 | |
Restructuring and Other | O. RESTRUCTURING AND OTHER During the three months ended July 1, 2018, Teradyne recorded $2.5 million of acquisition related expenses, and $2.4 million for employee severance charges, primarily in Semiconductor Test, partially offset by a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. During the six months ended July 1, 2018, Teradyne recorded $6.3 million for employee severance charges, primarily in Semiconductor Test and Industrial Automation, $3.3 million for acquisition related expenses, partially offset by an $8.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. During the three months ended July 2, 2017, Teradyne recorded $1.5 million for the increase in the fair value of the Universal Robots contingent consideration liability and $0.8 million for employee severance charges. During the six months ended July 2, 2017, Teradyne recorded $2.1 million for the increase in the fair value of the Universal Robots contingent consideration liability, $1.4 million for employee severance charges, primarily in Corporate and Industrial Automation, and a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, which was terminated in September 2017. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jul. 01, 2018 | |
Defined Benefit Pension Plans | |
Retirement Plans | P. RETIREMENT PLANS ASC 715, “Compensation—Retirement Benefits” Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. During the three months ended July 1, 2018, Teradyne purchased a group annuity contract for its retiree participants in the U.S. qualified pension plan. Under the group annuity, the accrued pension obligations for approximately 1,700 retiree participants were transferred to an insurance company. The reduction in the pension benefit obligation and pension assets was $150.9 million. During the three and six months ended July 1, 2018, Teradyne recorded a settlement loss of $0.1 million related to the retiree group annuity transaction. In the six months ended July 1, 2018, Teradyne contributed $1.3 million to the U.S. supplemental executive defined benefit pension plan and $0.4 million to certain qualified pension plans for non-U.S. For the three and six months ended July 1, 2018 and July 2, 2017, Teradyne’s net periodic pension cost was comprised of the following: For the Three Months Ended July 1, 2018 July 2, 2017 United States Foreign United States Foreign (in thousands) Service cost $ 545 $ 200 $ 560 $ 206 Interest cost 2,430 175 3,264 179 Expected return on plan assets (2,550 ) (5 ) (3,004 ) (6 ) Amortization of prior service cost 14 — 18 243 Net actuarial gain (189 ) — (2,732 ) — Settlement loss 78 — — — Total net periodic pension cost (benefit) $ 328 $ 370 $ (1,894 ) $ 622 For the Six Months Ended July 1, 2018 July 2, 2017 United Foreign United Foreign (in thousands) Service cost $ 1,116 $ 426 $ 1,120 $ 392 Interest cost 5,427 372 6,576 342 Expected return on plan assets (5,919 ) (10 ) (6,004 ) (12 ) Amortization of prior service cost 29 — 35 — Net actuarial gain (189 ) — (2,732 ) 243 Settlement loss 78 — — — Total net periodic pension cost (benefit) $ 542 $ 788 $ (1,005 ) $ 965 Postretirement Benefit Plan In addition to receiving pension benefits, Teradyne employees in the United States who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes 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. For the three and six months ended July 1, 2018 and July 2, 2017, Teradyne’s net periodic postretirement benefit cost (income) was comprised of the following: For the Three For the Six July 1, July 2, July 1, July 2, (in thousands) Service cost $ 10 $ 7 $ 19 $ 17 Interest cost 48 50 98 100 Amortization of prior service credit (93 ) (124 ) (187 ) (248 ) Net actuarial loss (gain) 40 (15 ) 40 (15 ) Special termination benefits 1,192 — 2,818 — Total net periodic postretirement benefit cost (income) $ 1,197 $ (82 ) $ 2,788 $ (146 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 01, 2018 | |
Commitments and Contingencies | Q. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of July 1, 2018, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $310.4 million, of which $302.7 million is for less than one year. Legal Claims Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on Teradyne’s results of operations, financial condition or cash flows. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 01, 2018 | |
Income Taxes | R. INCOME TAXES The effective tax rate for the three months ended July 1, 2018 and July 2, 2017 was 15.8% and 15.4%, respectively. The effective tax rate for the six months ended July 1, 2018 and July 2, 2017 was 12.9%. The increase in the effective tax rate from the three months ended July 2, 2017 to the three months ended July 1, 2018 primarily resulted from a projected shift in the geographic distribution of income, which increased income subject to taxation in the U.S. relative to lower tax rate jurisdictions. This increase was partially offset by an increase in discrete tax benefits recognized, the benefit of the reduction in the U.S. corporate tax rate from 35% to 21%, and the U.S. foreign derived intangible income deduction. The effective tax rate for the six months ended July 1, 2018 and July 2, 2017 was unchanged notwithstanding a projected shift in the geographic distribution of income, which increased income subject to taxation in the U.S. relative to lower tax rate jurisdictions. The impact of the shift in income distribution was offset by the benefit of the reduction in the U.S. corporate tax rate from 35% to 21% and the U.S. foreign derived intangible income deduction. The effective tax rates for the three and six months ended July 1, 2018 and July 2, 2017 differed from the expected federal statutory rate primarily because of the favorable effect of statutory rates applicable to income earned outside the United States. The tax rate for the three and six months ended July 1, 2018 and July 2, 2017 was also reduced by the benefit from U.S. research and development tax credits, partially offset by additions to the uncertain tax positions for transfer pricing, both of which are included in the projected annual effective tax rate. Discrete tax benefits recorded in the three and six months ended July 1, 2018 amounted to $0.7 million and $6.7 million respectively. The $0.7 million of discrete tax benefit recorded in the three months ended July 1, 2018 consisted primarily of non-taxable non-taxable Discrete tax items recorded in the three and six months ended July 2, 2017 amounted to expense of $0.5 million and benefit of $6.5 million, respectively. The $0.5 million of discrete tax expense recorded in the three months ended July 2, 2017 was primarily composed of $1.0 million of expense related to actuarial gains, $0.7 million of expense from non-taxable non-taxable On a quarterly basis, Teradyne evaluates the realizability of the deferred tax assets by jurisdiction and assesses the need for a valuation allowance. As of July 1, 2018, Teradyne believes that it will ultimately realize the deferred tax assets recorded on the condensed consolidated balance sheet. However, should Teradyne believe that it is more-likely-than-not As of July 1, 2018 and December 31, 2017, Teradyne had $37.9 million and $36.3 million, respectively, of reserves for uncertain tax positions. The $1.6 million net increase in reserves for uncertain tax positions is primarily composed of additions related to transfer pricing exposures and U.S. research and development tax credits. Teradyne is currently under examination by the Internal Revenue Service. The timing of resolution and closure of the tax audit is highly unpredictable. Given the uncertainty, it is reasonably possible that the balance of unrecognized tax benefits could significantly change within the next twelve months. However, an estimate of the range of reasonably possible adjustments cannot presently be made. Teradyne recognizes interest and penalties related to income tax matters in income tax expense. As of July 1, 2018 and December 31, 2017, $0.3 million and $0.3 million, respectively, of interest and penalties were accrued for uncertain tax positions. For the six months ended July 1, 2018, an expense of $0.1 million was recorded for interest and penalties related to income tax items. For the six months ended July 2, 2017, a benefit of $0.1 million was recorded for interest and penalties related to income tax items. 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 due to the tax holiday for the six months ended July 1, 2018 was $4.8 million, or $0.02 per diluted share. The tax savings due to the tax holiday for the six months ended July 2, 2017 was $15.1 million, or $0.07 per diluted share. The tax holiday is scheduled to expire on December 31, 2020. In the fourth quarter of 2017, Teradyne recorded a provisional amount of $186.0 million of additional income tax expense, which represents Teradyne’s best estimate of the impact of the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”) in accordance with Teradyne’s understanding of the Tax Reform Act and guidance available at that time. The $186.0 million is composed of expense of $161.0 million related to the one-time |
Segment Information
Segment Information | 6 Months Ended |
Jul. 01, 2018 | |
Segment Information | S. SEGMENT INFORMATION Teradyne has four reportable segments (Semiconductor Test, System Test, Industrial Automation and Wireless Test). Each of the Semiconductor Test, System Test, and Wireless Test segments is also an individual operating segment. The Industrial Automation reportable segment consists of operating segments with discrete financial information, which have been combined into one reportable segment as they share similar economic characteristics, types of products, production processes, distribution channels, and currency risks. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor 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. The Industrial Automation segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms, autonomous mobile robots and advanced robotic control software. The Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income (loss) before income taxes. The accounting policies of the business segments in effect are described in Note B: “Accounting Policies” in Teradyne’s Annual Report on Form 10-K Segment information for the three months ended July 1, 2018 and July 2, 2017 is as follows: Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Eliminations Consolidated (in thousands) Three Months Ended July 1, 2018 Revenues $ 360,088 $ 69,682 $ 62,057 $ 35,212 $ (110 ) $ 526,929 Income (loss) before income taxes (1)(2) 91,159 20,352 (2,922 ) 10,308 1,115 120,012 Total assets (3) 765,484 107,199 597,293 77,638 1,384,106 2,931,720 Three Months Ended July 2, 2017 Revenues $ 593,152 $ 36,732 $ 39,337 $ 27,680 $ — $ 696,901 Income (loss) before income taxes (1)(2) 211,278 (5,692 ) (1,081 ) 4,514 (2,142 ) 206,877 Total assets (3) 766,395 108,083 349,023 62,900 1,743,824 3,030,225 Six Months Ended July 1, 2018 Revenues $ 733,416 $ 112,702 $ 110,891 $ 57,719 $ (332 ) $ 1,014,396 Income (loss) before income taxes (1)(2) 179,238 26,240 (2,138 ) 10,772 1,719 215,831 Total assets (3) 765,484 107,199 597,293 77,638 1,384,106 2,931,720 Six Months Ended July 2, 2017 Revenues $ 948,679 $ 76,578 $ 75,610 $ 52,947 $ — $ 1,153,814 Income (loss) before income taxes (1)(2) 309,244 (8,451 ) (3,652 ) 6,046 (4,294 ) 298,893 Total assets (3) 766,395 108,083 349,023 62,900 1,743,824 3,030,225 (1) Included in Corporate and Other are: contingent consideration adjustments, severance charges, interest income, interest expense, net foreign exchange gains (losses), and acquisition related charges. (2) Included in the income (loss) before income taxes for each of the segments are charges and credits related to restructuring and other and inventory 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 line items in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Restructuring and other—employee severance $ 2,179 $ 132 $ 5,940 $ (133 ) Cost of revenues—inventory charge 1,613 1,624 3,779 2,943 Included in the System Test segment are charges in the following line item in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, 2018 2017 2018 2017 (in thousands) Cost of revenues—inventory charge $ 256 $ 473 $ 576 $ 1,358 Included in the Industrial Automation segment are charges in the following line items in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Restructuring and other—employee severance $ 218 $ 321 $ 338 $ 945 Included in the Wireless Test segment are charges in the following line items in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Cost of revenues—inventory charge $ 627 $ 472 $ 1,463 $ 994 Restructuring and other—lease impairment — — — 1,313 Included in Corporate and Eliminations are charges and credits in the following line items in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Restructuring and other—Universal Robots contingent consideration adjustment $ (3,500 ) $ 1,499 $ (8,468 ) $ 2,133 Restructuring and other—acquisition related expense 2,544 — 3,318 — Restructuring and other 872 — 872 — Restructuring and other—employee severance — 325 — 530 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jul. 01, 2018 | |
Shareholders' Equity | T. SHAREHOLDERS’ EQUITY Stock Repurchase Program In January 2018, Teradyne’s Board of Directors cancelled the December 2016 stock repurchase program and authorized a new stock repurchase program for up to $1.5 billion of common stock. Teradyne intends to repurchase $750 million in 2018. During the six months ended July 1, 2018, Teradyne repurchased 8.8 million shares of common stock for $360.8 million at an average price of $40.82 per share. In December 2016, the Board of Directors approved a $500 million share repurchase authorization which commenced on January 1, 2017. During the six months ended July 2, 2017, Teradyne repurchased 3.0 million shares of common stock for $94.3 million at an average price of $31.77 per share. The total price includes commissions and is recorded as a reduction to retained earnings. Dividend Holders of Teradyne’s common stock are entitled to receive dividends when they are declared by Teradyne’s Board of Directors. In January 2018 and May 2018, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.09 per share. Dividend payments for the three and six months ended July 1, 2018 were $17.1 million and $34.7 million, respectively. In January 2017 and May 2017, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.07 per share. Dividend payments for the three and six months ended July 2, 2017 were $13.9 million and $27.9 million, respectively. 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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jul. 01, 2018 | |
Basis of Presentation | Basis of Presentation The consolidated interim financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair statement of such interim financial statements. Certain prior year amounts were reclassified to conform to the current year presentation. The December 31, 2017 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form 10-K, |
Preparation of Financial Statements and Use of Estimates | Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Actual results may differ significantly from these estimates. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Teradyne adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers” (“ASC 606”) “Revenue Recognition” (“ASC 605”) 10-K In accordance with ASC 606, Teradyne recognizes revenues, when or as control is transferred to a customer. Teradyne’s determination of revenue is dependent upon a five step process outlined below. Step 1: Identify the contract with the customer Teradyne accounts for a contract with a customer when there is written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. Step 2: Identify the performance obligations in the contract Teradyne periodically enters into contracts with its customers in which a customer may purchase a combination of goods and or services, such as products with extended warranty obligations. Teradyne determines performance obligations by assessing whether the products or services are distinct from the other elements of the contract. In order to be distinct, the product or service must perform either on its own or with readily available resources and must be separate within the context of the contract. Step 3: Determine the transaction price Teradyne considers the amount stated on the face of the purchase order to be the transaction price. Teradyne does not have material variable consideration, which could impact the stated purchase price agreed to by Teradyne and the customer. Step 4: Allocate the transaction price to the performance obligations in the contract Transaction price is allocated to each individual performance obligation based on the standalone selling price of that performance obligation. Teradyne uses standalone transactions when available to value each performance obligation. If standalone transactions are not available, Teradyne will estimate the standalone selling price through market assessments or cost plus a reasonable margin analysis. Any discounts from standalone selling price are spread proportionally to each performance obligation. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation In order to determine the appropriate timing for revenue recognition, Teradyne first determines if the transaction meets any of three criteria for over time recognition. If the transaction meets the criteria for over time recognition, Teradyne recognizes revenue as the good or service is delivered. Teradyne uses input variables such as hours or months utilized or costs incurred to determine the amount of revenue to recognize in a given period. Input variables are used as they best align consumption with benefit to the customer. For transactions that do not meet the criteria for over time recognition, Teradyne will recognize revenue at a point in time based on an assessment of the five criteria for transfer of control. Teradyne has concluded that revenue should be recognized when shipped or delivered based on contractual terms. Typically acceptance of Teradyne’s products and services is a formality as Teradyne delivers similar systems, instruments and robots to standard specifications. In cases where acceptance is not deemed a formality, Teradyne will defer revenue recognition until customer acceptance. Revenue recognized in accordance with ASC 606 was $523.3 million and $1,006.5 million for the three and six months ended July 1, 2018, respectively. For the three and six months ended July 1, 2018, Teradyne also recognized $3.6 million and $7.9 million, respectively, in revenue on leases of Teradyne systems, which are accounted for outside of ASC 606. Disaggregation of Revenue The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition. For the Three Months Ended July 1, 2018 Semiconductor Test System Test Industrial Wireless Corporate Consolidated System Memory Defense/ Aerospace Storage Production Universal Mobile (in thousands) Americas Point in time $ 12,111 $ 2,827 $ 15,256 $ 5 $ 1,429 $ 16,053 $ 1,199 $ 4,716 $ (110 ) $ 53,486 Over time 8,934 710 6,237 — 795 327 — 122 — 17,125 Europe, Middle East and Africa Point in time 10,227 847 447 — 4,849 26,616 2,000 26 — 45,012 Over time 5,689 254 539 — 1,713 526 — 257 — 8,978 Asia Pacific Point in time 218,352 59,633 385 31,824 3,741 13,895 1,310 27,663 — 356,803 Over time 34,951 2,285 258 1,428 744 131 — 2,103 — 41,900 Lease revenue 3,268 — — — 32 — — 325 — 3,625 Total $ 293,532 $ 66,556 $ 23,122 $ 33,257 $ 13,303 $ 57,548 $ 4,509 $ 35,212 $ (110 ) $ 526,929 For the Six Months Ended July 1, 2018 Semiconductor System Test Industrial Wireless Corporate Consolidated SOC Memory Defense/ Aerospace Storage Production Universal Mobile (in thousands) Americas Point in time $ 21,711 $ 5,691 $ 26,853 $ 284 $ 3,189 $ 30,190 $ 1,199 $ 9,695 $ (332 ) $ 98,480 Over time 17,517 1,406 12,425 — 1,552 652 — 233 — 33,785 Europe, Middle East and Africa Point in time 22,352 986 1,943 — 8,886 49,190 2,000 1,066 — 86,423 Over time 10,888 523 1,090 — 3,272 668 — 484 — 16,925 Asia Pacific Point in time 446,543 125,904 487 41,946 5,603 25,478 1,310 41,329 — 688,600 Over time 68,173 4,607 466 2,961 1,479 204 — 4,399 — 82,289 Lease revenue 7,115 — — — 266 — — 513 — 7,894 Total $ 594,299 $ 139,117 $ 43,264 $ 45,191 $ 24,247 $ 106,382 $ 4,509 $ 57,719 $ (332 ) $ 1,014,396 Performance Obligations Hardware Teradyne hardware consists primarily of semiconductor test systems and instruments, defense/aerospace test instrumentation and systems, storage test systems and instruments, circuit-board test and inspection systems and instruments, collaborative robots, autonomous mobile robots and wireless test systems. The hardware includes a standard 12-month Extended Warranty Customers have the option to purchase an extended warranty, which extends the warranty period for systems and robots beyond the one-year Training and Applications Support Teradyne sells training and applications support to customers either in standalone transactions or included with system purchases. The training and support allow the customer to use Teradyne’s systems efficiently and effectively. Training and applications support included in system orders are valued based on their standalone selling price and all training and applications support is recognized over time as the customer receives and consumes the benefit associated with each. Both are recognized using an input method of hours consumed as this best depicts the transfer of services to the customer. Service Agreements Service agreements are recognized ratably over the period of agreement based on months completed. Post-Contract Customer Support (“PCS”) Teradyne provides support services for certain systems and robots outside of warranty. These services include telephone support, bug fixes, and when-and-if Teradyne does not allow customer returns or provide refunds to customers for any products or services. Contract Balances The following table provides information about contract liabilities. Teradyne does not have material contract assets on the balance sheet. July 1, January 1, (as adjusted) Increase/ (in thousands) Deferred revenue and customer advances $ 82,491 $ 76,638 $ 5,853 Long-term deferred revenue and customer advances 25,375 20,848 4,527 The amount of revenue recognized during the three and six months ended July 1, 2018 that was included within the deferred revenue and customer advances balance at January 1, 2018 was $24.7 million and $46.5 million, respectively, and primarily relates to extended warranties, training, application support, and PCS. Each of these represents a distinct performance obligation. Customers typically pay for these services net 30 to 60 days from the date that transfer of control of the associated system or product occurs. Remaining Performance Obligations Teradyne does not have material remaining performance obligations from contracts with an original expected duration of greater than one year. Significant Judgments Teradyne makes no significant judgements in determining the amount or timing of revenue recognition. Practical Expedients Teradyne has adopted the practical expedients available within ASC 340 “Other Assets and Deferred Costs” Teradyne has adopted the practical expedient, which states an entity need not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. Teradyne does not have material payments associated with performance obligations outside this one-year Impacts The following tables summarize the impact of ASC 606 to Teradyne’s consolidated financial statements. Differences are the result of timing differences between the recognition of revenue under ASC 606 and ASC 605 primarily with respect to software transactions deferred due to lack of vendor specific objective evidence of price under ASC 605 and Teradyne’s assessment of acceptance under ASC 606. Under Legacy GAAP, Teradyne did not recognize revenue prior to acceptance if payment, title, or risk of loss was tied to acceptance. Under ASC 606, Teradyne recognizes revenue prior to receipt of acceptance if acceptance is deemed a formality. Condensed Consolidated Balance Sheet: July 1, 2018 As Adjustments to Legacy (in thousands, except per share amount) ASSETS Accounts receivable, less allowance for doubtful accounts $ 454,122 $ (95,102 ) $ 359,020 Inventories, net 135,550 33,830 169,380 Deferred tax assets 73,574 (3,494 ) 70,080 LIABILITIES Deferred revenue and customer advances $ 82,491 $ (7,254 ) $ 75,237 Income taxes payable 32,226 (9,002 ) 23,224 Long-term deferred revenue and customer advances 25,375 (9,836 ) 15,539 SHAREHOLDERS’ EQUITY Retained earnings $ 74,270 $ (38,674 ) $ 35,596 Condensed Consolidated Statement of Operation: For the Three Months ended July 1, 2018 As Adjustments to Legacy (in thousands, except per share amount) Total revenues $ 526,929 $ (28,626 ) $ 498,303 Total cost of revenues 219,595 (6,081 ) 213,514 Income tax provision 18,975 (4,569 ) 14,406 Net income 101,037 (17,976 ) 83,061 Net income per common share: Basic $ 0.53 $ (0.09 ) $ 0.44 Diluted $ 0.52 $ (0.09 ) $ 0.43 For the Six Months ended July 1, 2018 As Adjustments to Legacy (in thousands, except per share amount) Total revenues $ 1,014,396 $ (94,268 ) $ 920,128 Total cost of revenues 437,230 (33,830 ) 403,400 Income tax provision 27,821 (9,084 ) 18,737 Net income 188,010 (51,354 ) 136,656 Net income per common share: Basic $ 0.97 $ (0.27 ) $ 0.71 Diluted $ 0.94 $ (0.26 ) $ 0.69 |
Retirement Benefits | Retirement Benefits In March 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost non-service non-service non-operating |
Financial Assets and Financial Liabilities | Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): |
Contingencies and Litigation | Contingencies and Litigation Teradyne may be subject to certain legal proceedings, lawsuits and other claims as discussed in Note Q: “Commitments and Contingencies.” Teradyne accrues for a loss contingency, including legal proceedings, lawsuits, pending claims and other legal matters, when the likelihood of a loss is probable and the amount of the loss can be reasonably estimated. When the reasonable estimate of the loss is within a range of amounts, and no amount in the range constitutes a better estimate than any other amount, Teradyne accrues the amount at the low end of the range. Teradyne adjusts the accruals from time to time as additional information is received, but the loss incurred may be significantly greater than or less than the amount accrued. Loss contingencies are disclosed when they are material and there is at least a reasonable possibility that a loss has been incurred. Attorney fees related to legal matters are expensed as incurred. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition | The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition. For the Three Months Ended July 1, 2018 Semiconductor Test System Test Industrial Wireless Corporate Consolidated System Memory Defense/ Aerospace Storage Production Universal Mobile (in thousands) Americas Point in time $ 12,111 $ 2,827 $ 15,256 $ 5 $ 1,429 $ 16,053 $ 1,199 $ 4,716 $ (110 ) $ 53,486 Over time 8,934 710 6,237 — 795 327 — 122 — 17,125 Europe, Middle East and Africa Point in time 10,227 847 447 — 4,849 26,616 2,000 26 — 45,012 Over time 5,689 254 539 — 1,713 526 — 257 — 8,978 Asia Pacific Point in time 218,352 59,633 385 31,824 3,741 13,895 1,310 27,663 — 356,803 Over time 34,951 2,285 258 1,428 744 131 — 2,103 — 41,900 Lease revenue 3,268 — — — 32 — — 325 — 3,625 Total $ 293,532 $ 66,556 $ 23,122 $ 33,257 $ 13,303 $ 57,548 $ 4,509 $ 35,212 $ (110 ) $ 526,929 For the Six Months Ended July 1, 2018 Semiconductor System Test Industrial Wireless Corporate Consolidated SOC Memory Defense/ Aerospace Storage Production Universal Mobile (in thousands) Americas Point in time $ 21,711 $ 5,691 $ 26,853 $ 284 $ 3,189 $ 30,190 $ 1,199 $ 9,695 $ (332 ) $ 98,480 Over time 17,517 1,406 12,425 — 1,552 652 — 233 — 33,785 Europe, Middle East and Africa Point in time 22,352 986 1,943 — 8,886 49,190 2,000 1,066 — 86,423 Over time 10,888 523 1,090 — 3,272 668 — 484 — 16,925 Asia Pacific Point in time 446,543 125,904 487 41,946 5,603 25,478 1,310 41,329 — 688,600 Over time 68,173 4,607 466 2,961 1,479 204 — 4,399 — 82,289 Lease revenue 7,115 — — — 266 — — 513 — 7,894 Total $ 594,299 $ 139,117 $ 43,264 $ 45,191 $ 24,247 $ 106,382 $ 4,509 $ 57,719 $ (332 ) $ 1,014,396 |
Information about Contract Liabilities | The following table provides information about contract liabilities. Teradyne does not have material contract assets on the balance sheet. July 1, January 1, (as adjusted) Increase/ (in thousands) Deferred revenue and customer advances $ 82,491 $ 76,638 $ 5,853 Long-term deferred revenue and customer advances 25,375 20,848 4,527 |
ASU 2014-09 | |
Summarize Impact of ASC 606 to Consolidated Financial Statements | The following tables summarize the impact of ASC 606 to Teradyne’s consolidated financial statements. Differences are the result of timing differences between the recognition of revenue under ASC 606 and ASC 605 primarily with respect to software transactions deferred due to lack of vendor specific objective evidence of price under ASC 605 and Teradyne’s assessment of acceptance under ASC 606. Under Legacy GAAP, Teradyne did not recognize revenue prior to acceptance if payment, title, or risk of loss was tied to acceptance. Under ASC 606, Teradyne recognizes revenue prior to receipt of acceptance if acceptance is deemed a formality. Condensed Consolidated Balance Sheet: July 1, 2018 As Adjustments to Legacy (in thousands, except per share amount) ASSETS Accounts receivable, less allowance for doubtful accounts $ 454,122 $ (95,102 ) $ 359,020 Inventories, net 135,550 33,830 169,380 Deferred tax assets 73,574 (3,494 ) 70,080 LIABILITIES Deferred revenue and customer advances $ 82,491 $ (7,254 ) $ 75,237 Income taxes payable 32,226 (9,002 ) 23,224 Long-term deferred revenue and customer advances 25,375 (9,836 ) 15,539 SHAREHOLDERS’ EQUITY Retained earnings $ 74,270 $ (38,674 ) $ 35,596 Condensed Consolidated Statement of Operation: For the Three Months ended July 1, 2018 As Adjustments to Legacy (in thousands, except per share amount) Total revenues $ 526,929 $ (28,626 ) $ 498,303 Total cost of revenues 219,595 (6,081 ) 213,514 Income tax provision 18,975 (4,569 ) 14,406 Net income 101,037 (17,976 ) 83,061 Net income per common share: Basic $ 0.53 $ (0.09 ) $ 0.44 Diluted $ 0.52 $ (0.09 ) $ 0.43 For the Six Months ended July 1, 2018 As Adjustments to Legacy (in thousands, except per share amount) Total revenues $ 1,014,396 $ (94,268 ) $ 920,128 Total cost of revenues 437,230 (33,830 ) 403,400 Income tax provision 27,821 (9,084 ) 18,737 Net income 188,010 (51,354 ) 136,656 Net income per common share: Basic $ 0.97 $ (0.27 ) $ 0.71 Diluted $ 0.94 $ (0.26 ) $ 0.69 |
Acquisitions (Tables)
Acquisitions (Tables) - Mobile Industrial Robots (MiR) | 6 Months Ended |
Jul. 01, 2018 | |
Allocation of Preliminary Purchase Price | The following table represents the preliminary allocation of the preliminary purchase price: Purchase Price Allocation (in thousands) Goodwill $ 135,747 Intangible assets 79,660 Tangible assets acquired and liabilities assumed: Current assets 6,039 Non-current 299 Accounts payable and current liabilities (7,336 ) Long-term deferred tax liabilities (17,779 ) Total purchase price $ 196,630 |
Components of Intangible Assets and Their Estimated Useful Lives at Acquisition Date | Components of these intangible assets and their estimated useful lives at the acquisition date are as follows: Fair Value Estimated Useful Life (in thousands) (in years) Developed technology $ 63,820 7.0 Trademarks and tradenames 12,060 11.0 Customer relationships 3,770 2.5 Backlog 10 0.2 Total intangible assets $ 79,660 7.4 |
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 Three Months Ended For the Six Months Ended July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 (in thousands) Revenue $ 528,238 $ 699,790 $ 1,021,194 $ 1,158,228 Net income 101,780 172,238 186,787 251,728 Net income per common share: Basic $ 0.53 $ 0.87 $ 0.97 $ 1.26 Diluted $ 0.52 $ 0.85 $ 0.94 $ 1.25 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Composition of Inventories, Net | Inventories, net consisted of the following at July 1, 2018 and December 31, 2017: July 1, December 31, (in thousands) Raw material $ 76,888 $ 62,668 Work-in-process 26,378 19,464 Finished goods 32,284 25,393 $ 135,550 $ 107,525 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
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 July 1, 2018 and December 31, 2017. July 1, 2018 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 209,827 $ — $ — $ 209,827 Cash equivalents 247,525 23,032 — 270,557 Available-for-sale U.S. Treasury securities — 528,857 — 528,857 Commercial paper — 218,520 — 218,520 Corporate debt securities — 38,372 — 38,372 U.S. government agency securities — 10,009 — 10,009 Certificates of deposit and time deposits — 1,318 — 1,318 Debt mutual funds 2,810 — — 2,810 Non-U.S. — 551 — 551 Equity securities: Mutual funds 23,289 — — 23,289 $ 483,451 $ 820,659 $ — $ 1,304,110 Derivative assets — 7 — 7 Total $ 483,451 $ 820,666 $ — $ 1,304,117 Liabilities Contingent consideration $ — $ — $ 60,914 $ 60,914 Derivative liabilities — 253 — 253 Total $ — $ 253 $ 60,914 $ 61,167 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 457,352 $ 23,032 $ — $ 480,384 Marketable securities — 712,309 — 712,309 Long-term marketable securities 26,099 85,318 — 111,417 Prepayments — 7 — 7 Total $ 483,451 $ 820,666 $ — $ 1,304,117 Liabilities . Other current liabilities $ — $ 253 $ — $ 253 Contingent consideration — — 35,911 35,911 Long-term contingent consideration — — 25,003 25,003 Total $ — $ 253 $ 60,914 $ 61,167 December 31, 2017 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 197,955 $ — $ — $ 197,955 Cash equivalents 206,335 25,553 — 231,888 Available for sale securities: U.S. Treasury securities — 855,795 — 855,795 Commercial paper — 282,840 — 282,840 Certificates of deposit and time deposits — 167,342 — 167,342 Corporate debt securities — 133,186 — 133,186 Equity and debt mutual funds 23,430 — — 23,430 U.S. government agency securities — 10,726 — 10,726 Non-U.S. — 586 — 586 $ 427,720 $ 1,476,028 $ — $ 1,903,748 Derivative assets — 389 — 389 Total $ 427,720 $ 1,476,417 $ — $ 1,904,137 Liabilities Contingent consideration $ — $ — $ 45,102 $ 45,102 Derivative liabilities — 446 — 446 Total $ — $ 446 $ 45,102 $ 45,548 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 404,290 $ 25,553 $ — $ 429,843 Marketable securities — 1,347,979 — 1,347,979 Long-term marketable securities 23,430 102,496 — 125,926 Prepayments — 389 — 389 Total $ 427,720 $ 1,476,417 $ — $ 1,904,137 Liabilities Other accrued liabilities $ — $ 446 $ — $ 446 Contingent consideration — — 24,497 24,497 Long-term contingent consideration — — 20,605 20,605 Total $ — $ 446 $ 45,102 $ 45,548 |
Schedule of Changes in Fair Value of Level 3 Contingent Consideration | Changes in the fair value of Level 3 contingent consideration for the three and six months ended July 1, 2018 and July 2, 2017 were as follows: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Balance at beginning of period $ 15,581 $ 37,916 $ 45,102 $ 38,332 Acquisition of MiR 51,399 — 51,399 — Foreign currency impact (2,566 ) — (2,566 ) — Payments (a) — — (24,553 ) (1,050 ) Fair value adjustment (b) (3,500 ) 1,499 (8,468 ) 2,133 Balance at end of period $ 60,914 $ 39,415 $ 60,914 $ 39,415 (a) In the six months ended July 1, 2018, Teradyne paid $24.6 million of contingent consideration for the earn-out earn-out (b) In the three and six months ended July 1, 2018, the fair value of contingent consideration for the earn-out earn-out |
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 instruments: Liability July 1, Valuation Technique Unobservable Inputs (in thousands) Contingent consideration (Universal Robots) $12,081 Monte Carlo Simulation Revenue volatility 11.4% Discount Rate 3.2% Contingent consideration (MiR) $48,833 Monte Carlo Simulation Revenue volatility 18.0% Discount Rate 0.5% |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of Teradyne’s financial instruments at July 1, 2018 and December 31, 2017 were as follows: July 1, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 480,384 $ 480,384 $ 429,843 $ 429,843 Marketable securities 823,726 823,726 1,473,905 1,473,905 Derivative assets 7 7 389 389 Liabilities Contingent consideration 60,914 60,914 45,102 45,102 Derivative liabilities 253 253 446 446 Convertible debt (1) 372,897 612,693 365,987 659,525 (1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. |
Schedule of Available-for-Sale Marketable Securities | The following table summarizes the composition of available-for-sale July 1, 2018 Available-for-Sale Fair Market Value of Investments with Unrealized Cost Unrealized Gain Unrealized (Loss) Fair Market Value (in thousands) U.S. Treasury securities $ 530,944 $ 29 $ (2,116 ) $ 528,857 $ 477,385 Commercial paper 218,594 9 (83 ) 218,520 184,349 Corporate debt securities 38,709 668 (1,005 ) 38,372 20,956 U.S. government agency securities 10,066 1 (58 ) 10,009 7,034 Debt mutual funds 2,878 — (68 ) 2,810 1,681 Certificates of deposit and time deposits 1,318 — — 1,318 — Non-U.S. 552 — (1 ) 551 179 $ 803,061 $ 707 $ (3,331 ) $ 800,437 $ 691,584 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 712,732 $ 68 $ (491 ) $ 712,309 $ 620,327 Long-term marketable securities 90,329 639 (2,840 ) 88,128 71,257 $ 803,061 $ 707 $ (3,331 ) $ 800,437 $ 691,584 The following table summarizes the composition of available-for-sale December 31, 2017 Available-for-Sale Fair Market Value of Investments with Unrealized Losses Cost Unrealized Gain Unrealized (Loss) Fair Market Value (in thousands) U.S. Treasury securities $ 858,258 $ 72 $ (2,535 ) $ 855,795 $ 850,163 Commercial paper 283,009 18 (187 ) 282,840 258,933 Certificates of deposit and time deposits 167,523 6 (187 ) 167,342 138,340 Corporate debt securities 131,179 2,380 (373 ) 133,186 91,010 Equity and debt mutual funds 19,403 4,102 (75 ) 23,430 1,723 U.S. government agency securities 10,775 — (49 ) 10,726 10,726 Non-U.S. 582 4 — 586 — $ 1,470,729 $ 6,582 $ (3,406 ) $ 1,473,905 $ 1,350,895 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 1,349,970 $ 38 $ (2,029 ) $ 1,347,979 $ 1,288,844 Long-term marketable securities 120,759 6,544 (1,377 ) 125,926 62,051 $ 1,470,729 $ 6,582 $ (3,406 ) $ 1,473,905 $ 1,350,895 |
Contractual Maturities of Investments in Debt Securities Held | The contractual maturities of investments in debt securities held at July 1, 2018 were as follows: July 1, 2018 Cost Fair Market (in thousands) Due within one year $ 712,732 $ 712,309 Due after 1 year through 5 years 32,201 32,080 Due after 5 years through 10 years 15,455 14,587 Due after 10 years 39,795 38,651 Total $ 800,183 $ 797,627 |
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value | The following table summarizes the fair value of derivative instruments as of July 1, 2018 and December 31, 2017: Balance Sheet Location July 1, 2018 December 31, 2017 (in thousands) Derivatives not designated as hedging instruments: Foreign currency forward contracts assets Prepayments $ 7 $ 389 Foreign currency forward contracts liabilities Other current liabilities (253 ) (446 ) Total derivatives $ (246 ) $ (57 ) |
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized | The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and six months ended July 1, 2018 and July 2, 2017. Location of Losses (Gains) Recognized in For the Three Months Ended For the Six Months Ended July 1, July 2, July 1, July 2, (in thousands) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other (income) expense, net $ 1,826 $ (1,586 ) $ 3,401 $ (575 ) (1) The table does not reflect the corresponding gains and losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies. (2) For the three and six months ended July 1, 2018, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.9 million and $2.5 million, respectively. (3) For the three and six months ended July 2, 2017, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.4 million and $0.9 million, respectively. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Components of Convertible Senior Notes | The below tables represent the key components of Teradyne’s convertible senior notes: July 1, 2018 December 31, 2017 (in thousands) Debt principal $ 460,000 $ 460,000 Unamortized discount 87,103 94,013 Net carrying amount of convertible debt $ 372,897 $ 365,987 For the Three Months For the Six Months July 1, 2018 July 2, 2017 July 1, 2018 July 2, 2017 (in thousands) Contractual interest expense on the coupon $ 1,438 $ 1,438 $ 2,875 $ 2,875 Amortization of the discount component and debt issue fees recognized as interest expense 3,477 3,308 6,911 6,576 Total interest expense on the convertible debt $ 4,915 $ 4,746 $ 9,786 $ 9,451 |
Prepayments (Tables)
Prepayments (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Schedule of Prepayments and other assets | Prepayments consist of the following and are included in prepayments and other assets on the balance sheet: July 1, December 31, (in thousands) Contract manufacturer and supplier prepayments $ 78,148 $ 82,503 Prepaid maintenance and other services 8,651 8,189 Prepaid taxes 6,801 5,039 Other prepayments 13,114 12,386 Total prepayments $ 106,714 $ 108,117 |
Deferred Revenue and Customer35
Deferred Revenue and Customer Advances (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Deferred Revenue and Customer Advances | Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances on the balance sheet: July 1, December 31, (in thousands) Maintenance and training $ 60,993 $ 57,256 Extended warranty 25,971 24,438 Customer advances, undelivered elements and other 20,902 32,047 Total deferred revenue and customer advances $ 107,866 $ 113,741 |
Product Warranty (Tables)
Product Warranty (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Other Accrued Liabilities | The warranty balance below is included in other accrued liabilities on the balance sheet. For the Three Months Ended For the Six Months Ended July 1, July 2, July 1, July 2, (in thousands) Balance at beginning of period $ 7,548 $ 7,054 $ 8,200 $ 7,203 Acquisition 41 — 41 — Accruals for warranties issued during the period 3,348 5,294 6,411 8,315 Adjustments related to pre-existing (34 ) 7 (173 ) (464 ) Settlements made during the period (3,767 ) (3,262 ) (7,343 ) (5,961 ) Balance at end of period $ 7,136 $ 9,093 $ 7,136 $ 9,093 |
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances | 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 on the balance sheet. For the Three Months Ended For the Six Months Ended July 1, July 2, July 1, July 2, (in thousands) Balance at beginning of period $ 24,590 $ 24,969 $ 24,438 $ 28,200 Deferral of new extended warranty revenue 6,701 10,442 11,839 14,490 Recognition of extended warranty deferred revenue (5,320 ) (6,034 ) (10,306 ) (13,313 ) Balance at end of period $ 25,971 $ 29,377 $ 25,971 $ 29,377 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
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: For the Six Months July 1, July 2, Risk-free interest rate 2.2 % 1.5 % Teradyne volatility-historical 26.8 % 26.6 % NYSE Composite Index volatility-historical 12.4 % 13.4 % Dividend yield 0.8 % 1.0 % |
Fair Value of Stock Options Using Assumptions | The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Six Months July 1, July 2, Expected life (years) 5.0 5.0 Risk-free interest rate 2.4 % 2.0 % Volatility-historical 26.4 % 27.8 % Dividend yield 0.8 % 1.0 % |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss), which are presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Six Months Ended July 1, 2018 Balance at December 31, 2017, net of tax of $0, $1,815, $(932), respectively $ 15,919 $ 1,362 $ 1,495 $ 18,776 Other comprehensive loss before reclassifications, net of tax of $0, $(744), $0, respectively (18,781 ) (2,489 ) — (21,270 ) Amounts reclassified from accumulated other comprehensive (loss) income, net of tax of $0, $11, $(35), respectively — 1,469 (123 ) 1,346 Net current period other comprehensive loss, net of tax of $0, $(733), $(35), respectively (18,781 ) (1,020 ) (123 ) (19,924 ) Reclassification of tax effects resulting of the Tax Reform Act, $0, $(691), $(78), respectively (a) — 691 78 769 Reclassification of unrealized gains on equity securities, net of tax of $0, $(902), $0, respectively (b) — (3,125 ) — (3,125 ) Balance at July 1, 2018, net of tax of $0, $(511), $(1,045), respectively $ (2,862 ) $ (2,092 ) $ 1,450 $ (3,504 ) (a) In the six months ended July 1, 2018, Teradyne early adopted the ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” (b) In the six months ended July 1, 2018, Teradyne adopted the ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Six Months Ended July 2, 2017 Balance at December 31, 2016, net of tax of $0, $209, $(778), respectively $ (21,921 ) $ (60 ) $ 1,767 $ (20,214 ) Other comprehensive income before reclassifications, net of tax of $0, $1,185, $0, respectively 24,944 1,498 — 26,442 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(106), $(77), respectively — (177 ) (136 ) (313 ) Net current period other comprehensive income (loss), net of tax of $0, $1,079, $(77), respectively 24,944 1,321 (136 ) 26,129 Balance at July 2, 2017, net of tax of $0, $1,288, $(855), respectively $ 3,023 $ 1,261 $ 1,631 $ 5,915 |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) to Statements of Operations | Reclassifications out of accumulated other comprehensive income (loss) to the statement of operations for the three and six months ended July 1, 2018 and July 2, 2017 were as follows: Details about Accumulated Other Comprehensive Income For the Three Months Ended For the Six Months Ended Affected Line Item July 1, July 2, July 1, July 2, (in thousands) Available-for-sale Unrealized gains (losses), net of tax of $68, $42, $(11), $106, respectively $ 199 $ 83 $ (1,469 ) $ 177 Interest income and Interest (expense) Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $18, $38, $35, $77, respectively 61 68 123 136 (a) Total reclassifications, net of tax of $86, $80, $24, $183, respectively $ 260 $ 151 $ (1,346 ) $ 313 Net income (a) The amortization of prior service benefit is included in the computation of net periodic pension cost and postretirement benefit. See Note P: “Retirement Plans.” |
Goodwill and Acquired Intangi39
Goodwill and Acquired Intangible Assets (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segments for the six months ended July 1, 2018, were as follows: Wireless Test Industrial Automation System Test Semiconductor Test Total (in thousands) Balance at December 31, 2017 Goodwill $ 361,819 $ 233,519 $ 158,699 $ 260,540 $ 1,014,577 Accumulated impairment losses (353,843 ) — (148,183 ) (260,540 ) (762,566 ) 7,976 233,519 10,516 — 252,011 MiR acquisition — 135,747 — — 135,747 Energid acquisition — 14,394 — — 14,394 Foreign currency translation adjustment — (13,527 ) — — (13,527 ) Balance at July 1, 2018 Goodwill 361,819 370,133 158,699 260,540 1,151,191 Accumulated impairment losses (353,843 ) — (148,183 ) (260,540 ) (762,566 ) $ 7,976 $ 370,133 $ 10,516 $ — $ 388,625 |
Schedule of Estimated Intangible Asset Amortization Expense | Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2018 (remainder) 20,856 2019 37,891 2020 23,671 2021 14,734 2022 13,841 Thereafter 37,180 |
Wireless Test | |
Schedule of Amortizable Intangible Assets | Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet: July 1, 2018 Gross Carrying Amount (1)(2) Accumulated Amortization (2) Foreign Net Carrying Amount (in thousands) Developed technology $ 341,227 $ (236,924 ) $ (2,687 ) $ 101,616 Customer relationships 100,891 (86,509 ) (118 ) 14,264 Tradenames and trademarks 63,240 (30,530 ) (437 ) 32,273 Non-compete 320 (300 ) — 20 Backlog 10 (10 ) — — Total intangible assets $ 505,688 $ (354,273 ) $ (3,242 ) $ 148,173 December 31, 2017 Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) Developed technology $ 270,877 $ (226,190 ) $ 1,618 $ 46,305 Customer relationships 92,741 (83,585 ) 171 9,327 Tradenames and trademarks 50,100 (27,120 ) 416 23,396 Non-compete 320 (260 ) — 60 Total intangible assets $ 414,038 $ (337,155 ) $ 2,205 $ 79,088 (1) Includes intangible assets acquired in 2018, $79.7 million from the MiR acquisition and $12.3 million from the Energid acquisition. (2) In 2018, $0.3 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Computation of Basic and Diluted Net Income Per Common Share | The following table sets forth the computation of basic and diluted net income per common share: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 101,037 $ 174,976 $ 188,010 $ 260,197 Weighted average common shares-basic 190,730 198,774 192,992 199,390 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 2,643 752 3,520 376 Convertible note hedge warrant shares (2) — — 915 — Restricted stock units 1,219 1,622 1,444 1,576 Stock options 274 318 298 354 Employee stock purchase plan 43 63 28 36 Dilutive potential common shares 4,179 2,755 6,205 2,342 Weighted average common shares-diluted 194,909 201,529 199,197 201,732 Net income per common share-basic $ 0.53 $ 0.88 $ 0.97 $ 1.30 Net income per common share-diluted $ 0.52 $ 0.87 $ 0.94 $ 1.29 (1) Incremental shares from 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 $31.80, multiplied by 14.5 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 $39.91, multiplied by 14.5 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. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Defined Benefit Pension Plans | |
Net Periodic Pension and Postretirement benefit Cost (Income) | For the three and six months ended July 1, 2018 and July 2, 2017, Teradyne’s net periodic pension cost was comprised of the following: For the Three Months Ended July 1, 2018 July 2, 2017 United States Foreign United States Foreign (in thousands) Service cost $ 545 $ 200 $ 560 $ 206 Interest cost 2,430 175 3,264 179 Expected return on plan assets (2,550 ) (5 ) (3,004 ) (6 ) Amortization of prior service cost 14 — 18 243 Net actuarial gain (189 ) — (2,732 ) — Settlement loss 78 — — — Total net periodic pension cost (benefit) $ 328 $ 370 $ (1,894 ) $ 622 For the Six Months Ended July 1, 2018 July 2, 2017 United Foreign United Foreign (in thousands) Service cost $ 1,116 $ 426 $ 1,120 $ 392 Interest cost 5,427 372 6,576 342 Expected return on plan assets (5,919 ) (10 ) (6,004 ) (12 ) Amortization of prior service cost 29 — 35 — Net actuarial gain (189 ) — (2,732 ) 243 Settlement loss 78 — — — Total net periodic pension cost (benefit) $ 542 $ 788 $ (1,005 ) $ 965 |
Postretirement Benefit Plans | |
Net Periodic Pension and Postretirement benefit Cost (Income) | For the three and six months ended July 1, 2018 and July 2, 2017, Teradyne’s net periodic postretirement benefit cost (income) was comprised of the following: For the Three For the Six July 1, July 2, July 1, July 2, (in thousands) Service cost $ 10 $ 7 $ 19 $ 17 Interest cost 48 50 98 100 Amortization of prior service credit (93 ) (124 ) (187 ) (248 ) Net actuarial loss (gain) 40 (15 ) 40 (15 ) Special termination benefits 1,192 — 2,818 — Total net periodic postretirement benefit cost (income) $ 1,197 $ (82 ) $ 2,788 $ (146 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 01, 2018 | |
Segment Information | Segment information for the three months ended July 1, 2018 and July 2, 2017 is as follows: Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Eliminations Consolidated (in thousands) Three Months Ended July 1, 2018 Revenues $ 360,088 $ 69,682 $ 62,057 $ 35,212 $ (110 ) $ 526,929 Income (loss) before income taxes (1)(2) 91,159 20,352 (2,922 ) 10,308 1,115 120,012 Total assets (3) 765,484 107,199 597,293 77,638 1,384,106 2,931,720 Three Months Ended July 2, 2017 Revenues $ 593,152 $ 36,732 $ 39,337 $ 27,680 $ — $ 696,901 Income (loss) before income taxes (1)(2) 211,278 (5,692 ) (1,081 ) 4,514 (2,142 ) 206,877 Total assets (3) 766,395 108,083 349,023 62,900 1,743,824 3,030,225 Six Months Ended July 1, 2018 Revenues $ 733,416 $ 112,702 $ 110,891 $ 57,719 $ (332 ) $ 1,014,396 Income (loss) before income taxes (1)(2) 179,238 26,240 (2,138 ) 10,772 1,719 215,831 Total assets (3) 765,484 107,199 597,293 77,638 1,384,106 2,931,720 Six Months Ended July 2, 2017 Revenues $ 948,679 $ 76,578 $ 75,610 $ 52,947 $ — $ 1,153,814 Income (loss) before income taxes (1)(2) 309,244 (8,451 ) (3,652 ) 6,046 (4,294 ) 298,893 Total assets (3) 766,395 108,083 349,023 62,900 1,743,824 3,030,225 (1) Included in Corporate and Other are: contingent consideration adjustments, severance charges, interest income, interest expense, net foreign exchange gains (losses), and acquisition related charges. (2) Included in the income (loss) before income taxes for each of the segments are charges and credits related to restructuring and other and inventory 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. |
Wireless Test | |
Schedule of Segment Reporting Information by Segment Charges | Included in the Wireless Test segment are charges in the following line items in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Cost of revenues—inventory charge $ 627 $ 472 $ 1,463 $ 994 Restructuring and other—lease impairment — — — 1,313 |
Semiconductor Test | |
Schedule of Segment Reporting Information by Segment Charges | Included in the Semiconductor Test segment are charges and credits in the following line items in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Restructuring and other—employee severance $ 2,179 $ 132 $ 5,940 $ (133 ) Cost of revenues—inventory charge 1,613 1,624 3,779 2,943 |
System Test | |
Schedule of Segment Reporting Information by Segment Charges | Included in the System Test segment are charges in the following line item in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, 2018 2017 2018 2017 (in thousands) Cost of revenues—inventory charge $ 256 $ 473 $ 576 $ 1,358 |
Industrial Automation | |
Schedule of Segment Reporting Information by Segment Charges | Included in the Industrial Automation segment are charges in the following line items in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Restructuring and other—employee severance $ 218 $ 321 $ 338 $ 945 |
Corporate and Other | |
Schedule of Segment Reporting Information by Segment Charges | Included in Corporate and Eliminations are charges and credits in the following line items in the statements of operations: For the Three Months For the Six Months July 1, July 2, July 1, July 2, (in thousands) Restructuring and other—Universal Robots contingent consideration adjustment $ (3,500 ) $ 1,499 $ (8,468 ) $ 2,133 Restructuring and other—acquisition related expense 2,544 — 3,318 — Restructuring and other 872 — 872 — Restructuring and other—employee severance — 325 — 530 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2018 | Jul. 02, 2017 | Apr. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Jan. 01, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognized in accordance with ASC 606 | $ 526,929 | $ 696,901 | $ 1,014,396 | $ 1,153,814 | ||
Revenue on leases | 3,600 | $ 7,900 | ||||
Standard warranty period | 12 months | |||||
Deferred revenue and customer advances balance | 24,700 | $ 46,500 | ||||
ASU 2014-09 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognized in accordance with ASC 606 | $ 523,300 | $ 1,006,500 | ||||
ASU 2017-07 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Decrease in income from operations | $ (2,100) | $ (1,700) | ||||
Retained Earnings | ASU 2014-09 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Increase (decrease) in adoption of new accounting guidance amount | $ 12,700 | |||||
Retained Earnings | ASU 2016-01 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Increase (decrease) in adoption of new accounting guidance amount | 3,100 | |||||
Accumulated Other Comprehensive Income (Loss) | ASU 2016-01 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Increase (decrease) in adoption of new accounting guidance amount | $ (3,100) |
Disaggregated Revenue by Primar
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 526,929 | $ 696,901 | $ 1,014,396 | $ 1,153,814 |
Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 360,088 | 593,152 | 733,416 | 948,679 |
System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 69,682 | 36,732 | 112,702 | 76,578 |
Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 62,057 | 39,337 | 110,891 | 75,610 |
Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 35,212 | $ 27,680 | 57,719 | $ 52,947 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | (110) | (332) | ||
Americas | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 53,486 | 98,480 | ||
Americas | Point in time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 4,716 | 9,695 | ||
Americas | Point in time | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | (110) | (332) | ||
Americas | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 17,125 | 33,785 | ||
Americas | Over time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 122 | 233 | ||
Europe, Middle East and Africa | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 45,012 | 86,423 | ||
Europe, Middle East and Africa | Point in time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 26 | 1,066 | ||
Europe, Middle East and Africa | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8,978 | 16,925 | ||
Europe, Middle East and Africa | Over time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 257 | 484 | ||
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,625 | 7,894 | ||
Asia Pacific | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 325 | 513 | ||
Asia Pacific | Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 356,803 | 688,600 | ||
Asia Pacific | Point in time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 27,663 | 41,329 | ||
Asia Pacific | Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 41,900 | 82,289 | ||
Asia Pacific | Over time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,103 | 4,399 | ||
SOC | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 293,532 | 594,299 | ||
SOC | Americas | Point in time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 12,111 | 21,711 | ||
SOC | Americas | Over time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8,934 | 17,517 | ||
SOC | Europe, Middle East and Africa | Point in time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10,227 | 22,352 | ||
SOC | Europe, Middle East and Africa | Over time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 5,689 | 10,888 | ||
SOC | Asia Pacific | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,268 | 7,115 | ||
SOC | Asia Pacific | Point in time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 218,352 | 446,543 | ||
SOC | Asia Pacific | Over time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 34,951 | 68,173 | ||
Memory | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 66,556 | 139,117 | ||
Memory | Americas | Point in time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,827 | 5,691 | ||
Memory | Americas | Over time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 710 | 1,406 | ||
Memory | Europe, Middle East and Africa | Point in time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 847 | 986 | ||
Memory | Europe, Middle East and Africa | Over time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 254 | 523 | ||
Memory | Asia Pacific | Point in time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 59,633 | 125,904 | ||
Memory | Asia Pacific | Over time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,285 | 4,607 | ||
Defense/Aerospace | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 23,122 | 43,264 | ||
Defense/Aerospace | Americas | Point in time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 15,256 | 26,853 | ||
Defense/Aerospace | Americas | Over time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 6,237 | 12,425 | ||
Defense/Aerospace | Europe, Middle East and Africa | Point in time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 447 | 1,943 | ||
Defense/Aerospace | Europe, Middle East and Africa | Over time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 539 | 1,090 | ||
Defense/Aerospace | Asia Pacific | Point in time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 385 | 487 | ||
Defense/Aerospace | Asia Pacific | Over time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 258 | 466 | ||
Storage Test | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 33,257 | 45,191 | ||
Storage Test | Americas | Point in time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 5 | 284 | ||
Storage Test | Asia Pacific | Point in time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 31,824 | 41,946 | ||
Storage Test | Asia Pacific | Over time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,428 | 2,961 | ||
Production Board Test | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 13,303 | 24,247 | ||
Production Board Test | Americas | Point in time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,429 | 3,189 | ||
Production Board Test | Americas | Over time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 795 | 1,552 | ||
Production Board Test | Europe, Middle East and Africa | Point in time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 4,849 | 8,886 | ||
Production Board Test | Europe, Middle East and Africa | Over time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,713 | 3,272 | ||
Production Board Test | Asia Pacific | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 32 | 266 | ||
Production Board Test | Asia Pacific | Point in time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,741 | 5,603 | ||
Production Board Test | Asia Pacific | Over time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 744 | 1,479 | ||
Universal Robots (UR) | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 57,548 | 106,382 | ||
Universal Robots (UR) | Americas | Point in time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 16,053 | 30,190 | ||
Universal Robots (UR) | Americas | Over time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 327 | 652 | ||
Universal Robots (UR) | Europe, Middle East and Africa | Point in time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 26,616 | 49,190 | ||
Universal Robots (UR) | Europe, Middle East and Africa | Over time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 526 | 668 | ||
Universal Robots (UR) | Asia Pacific | Point in time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 13,895 | 25,478 | ||
Universal Robots (UR) | Asia Pacific | Over time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 131 | 204 | ||
Mobile Industrial Robots (MiR) | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 4,509 | 4,509 | ||
Mobile Industrial Robots (MiR) | Americas | Point in time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,199 | 1,199 | ||
Mobile Industrial Robots (MiR) | Europe, Middle East and Africa | Point in time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,000 | 2,000 | ||
Mobile Industrial Robots (MiR) | Asia Pacific | Point in time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 1,310 | $ 1,310 |
Information about Contract Liab
Information about Contract Liabilities (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue and customer advances | $ 82,491 | $ 83,614 | |
Long-term deferred revenue and customer advances | 25,375 | $ 30,127 | |
ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue and customer advances | 75,237 | $ 76,638 | |
Long-term deferred revenue and customer advances | 15,539 | 20,848 | |
ASU 2014-09 | Adjustments to Recognize Under Legacy GAAP | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue and customer advances | (7,254) | 5,853 | |
Long-term deferred revenue and customer advances | $ (9,836) | $ 4,527 |
Summarize Impact of ASC 606 to
Summarize Impact of ASC 606 to Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
ASSETS | |||
Accounts receivable, less allowance for doubtful accounts | $ 454,122 | $ 272,783 | |
Inventories, net | 135,550 | 107,525 | |
Deferred tax assets | 73,574 | 84,026 | |
LIABILITIES | |||
Deferred revenue and customer advances | 82,491 | 83,614 | |
Income taxes payable | 32,226 | 59,055 | |
Long-term deferred revenue and customer advances | 25,375 | 30,127 | |
SHAREHOLDERS' EQUITY | |||
Retained earnings | 74,270 | $ 272,013 | |
ASU 2014-09 | |||
ASSETS | |||
Accounts receivable, less allowance for doubtful accounts | 359,020 | ||
Inventories, net | 169,380 | ||
Deferred tax assets | 70,080 | ||
LIABILITIES | |||
Deferred revenue and customer advances | 75,237 | $ 76,638 | |
Income taxes payable | 23,224 | ||
Long-term deferred revenue and customer advances | 15,539 | 20,848 | |
SHAREHOLDERS' EQUITY | |||
Retained earnings | 35,596 | ||
ASU 2014-09 | Adjustments to Recognize Under Legacy GAAP | |||
ASSETS | |||
Accounts receivable, less allowance for doubtful accounts | (95,102) | ||
Inventories, net | 33,830 | ||
Deferred tax assets | (3,494) | ||
LIABILITIES | |||
Deferred revenue and customer advances | (7,254) | 5,853 | |
Income taxes payable | (9,002) | ||
Long-term deferred revenue and customer advances | (9,836) | $ 4,527 | |
SHAREHOLDERS' EQUITY | |||
Retained earnings | $ (38,674) |
Summarize Impact of ASC 606 t47
Summarize Impact of ASC 606 to Condensed Consolidated Statement of Operation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 526,929 | $ 696,901 | $ 1,014,396 | $ 1,153,814 |
Total cost of revenues | 219,595 | 437,230 | ||
Income tax provision | 18,975 | 31,901 | 27,821 | 38,696 |
Net income | $ 101,037 | $ 174,976 | $ 188,010 | $ 260,197 |
Net income per common share: | ||||
Basic | $ 0.53 | $ 0.88 | $ 0.97 | $ 1.30 |
Diluted | $ 0.52 | $ 0.87 | $ 0.94 | $ 1.29 |
ASU 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 523,300 | $ 1,006,500 | ||
ASU 2014-09 | Adjustments to Recognize Under Legacy GAAP | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | (28,626) | (94,268) | ||
Total cost of revenues | (6,081) | (33,830) | ||
Income tax provision | (4,569) | (9,084) | ||
Net income | $ (17,976) | $ (51,354) | ||
Net income per common share: | ||||
Basic | $ (0.09) | $ (0.27) | ||
Diluted | $ (0.09) | $ (0.26) | ||
ASU 2014-09 | Legacy GAAP | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 498,303 | $ 920,128 | ||
Total cost of revenues | 213,514 | 403,400 | ||
Income tax provision | 14,406 | 18,737 | ||
Net income | $ 83,061 | $ 136,656 | ||
Net income per common share: | ||||
Basic | $ 0.44 | $ 0.71 | ||
Diluted | $ 0.43 | $ 0.69 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Apr. 25, 2018 | Feb. 26, 2018 | Jul. 01, 2018 | Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||||
Revenues | $ 4,500,000 | |||||||
Income (loss) before income taxes | (1,500,000) | |||||||
Goodwill | 388,625,000 | $ 388,625,000 | $ 388,625,000 | $ 252,011,000 | ||||
Mobile Industrial Robots (MiR) | ||||||||
Business Acquisition [Line Items] | ||||||||
Total preliminary purchase price | $ 196,630,000 | |||||||
Cash paid to acquire outstanding common and preferred stock | 145,200,000 | |||||||
Contingent consideration | 51,400,000 | |||||||
Arrangement range of outcomes value high | $ 117,000,000 | 117,000,000 | 117,000,000 | |||||
Goodwill, not deductible for tax purposes | 135,700,000 | |||||||
Net income | 101,780,000 | $ 172,238,000 | 186,787,000 | $ 251,728,000 | ||||
Goodwill | $ 135,747,000 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 4 months 24 days | |||||||
Mobile Industrial Robots (MiR) | Fair Value Adjustment to Inventory | ||||||||
Business Acquisition [Line Items] | ||||||||
Net income | 400,000 | 400,000 | 400,000 | |||||
Mobile Industrial Robots (MiR) | Acquisition Related Costs | ||||||||
Business Acquisition [Line Items] | ||||||||
Net income | $ 2,300,000 | $ 2,900,000 | $ 2,900,000 | |||||
Energid Technologies Corporation | ||||||||
Business Acquisition [Line Items] | ||||||||
Total preliminary purchase price | $ 27,600,000 | |||||||
Goodwill | 14,400,000 | |||||||
Acquired value of intangible assets | $ 12,300,000 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 8 months 12 days | |||||||
Net tangible assets | $ 1,000,000 |
Allocation of Preliminary Purch
Allocation of Preliminary Purchase Price (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 25, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 388,625 | $ 252,011 | |
Mobile Industrial Robots (MiR) | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 135,747 | ||
Intangible assets | 79,660 | ||
Current assets | 6,039 | ||
Non-current assets | 299 | ||
Accounts payable and current liabilities | (7,336) | ||
Long-term deferred tax liabilities | (17,779) | ||
Total purchase price | $ 196,630 |
Components of Intangible Assets
Components of Intangible Assets and Their Estimated Useful Lives at Acquisition Date (Detail) - Mobile Industrial Robots (MiR) - USD ($) $ in Thousands | Apr. 25, 2018 | Jul. 01, 2018 |
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 79,660 | $ 79,700 |
Total intangible assets, estimated useful life, years | 7 years 4 months 24 days | |
Developed technology | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 63,820 | |
Total intangible assets, estimated useful life, years | 7 years | |
Trademarks and tradenames | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 12,060 | |
Total intangible assets, estimated useful life, years | 11 years | |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 3,770 | |
Total intangible assets, estimated useful life, years | 2 years 6 months | |
Customer backlog | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 10 | |
Total intangible assets, estimated useful life, years | 2 months 12 days |
Pro Forma Results Under Acquisi
Pro Forma Results Under Acquisition (Detail) - Mobile Industrial Robots (MiR) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 528,238 | $ 699,790 | $ 1,021,194 | $ 1,158,228 |
Net income | $ 101,780 | $ 172,238 | $ 186,787 | $ 251,728 |
Net income per common share, basic | $ 0.53 | $ 0.87 | $ 0.97 | $ 1.26 |
Net income per common share, diluted | $ 0.52 | $ 0.85 | $ 0.94 | $ 1.25 |
Composition of Inventories, Net
Composition of Inventories, Net (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw material | $ 76,888 | $ 62,668 |
Work-in-process | 26,378 | 19,464 |
Finished goods | 32,284 | 25,393 |
Inventories, net | $ 135,550 | $ 107,525 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Jul. 01, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Inventory reserves | $ 103.2 | $ 102.9 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 | |
Financial Instruments and Fair Value [Line Items] | |||||
Available-for-sale securities, realized gain | $ 100,000 | $ 200,000 | $ 400,000 | $ 500,000 | |
Available-for-sale securities, realized loss | 0 | $ 100,000 | 1,500,000 | $ 200,000 | |
Available-for-sale marketable securities, Fair Market Value of Investments in debt securities with Unrealized Losses | 691,584,000 | 691,584,000 | $ 1,350,895,000 | ||
Fair market value of investments with unrealized losses greater than one year | 32,700,000 | 32,700,000 | 141,000,000 | ||
Aggregate loss of investments with unrealized losses greater than one year | 1,600,000 | 1,600,000 | 1,200,000 | ||
Fair market value of investments with unrealized losses less than one year | 658,900,000 | 658,900,000 | 1,209,900,000 | ||
Aggregate loss of investments with unrealized losses less than one year | 1,700,000 | 1,700,000 | 2,200,000 | ||
Debt Mutual Funds | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Available-for-sale marketable securities, Fair Market Value of Investments in debt securities with Unrealized Losses | 1,681,000 | 1,681,000 | |||
Available for sale securities with out contractual maturity date | 2,800,000 | 2,800,000 | |||
Universal Robots (UR) | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Maximum payment per earn-out | 25,000,000 | ||||
Mobile Industrial Robots (MiR) | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Maximum amount of contingent consideration paid for acquisition | 117,000,000 | 117,000,000 | |||
Foreign Exchange Contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of foreign currency forward contracts | $ 93,400,000 | $ 93,400,000 | $ 116,800,000 |
Schedule of Fair Value of Finan
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 800,437 | $ 1,473,905 |
U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 528,857 | 855,795 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 218,520 | 282,840 |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 38,372 | 133,186 |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 10,009 | 10,726 |
Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 1,318 | 167,342 |
Equity and Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 23,430 | |
Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 2,810 | |
Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 551 | 586 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 1,304,110 | 1,903,748 |
Derivative assets | 7 | 389 |
Total | 1,304,117 | 1,904,137 |
Contingent consideration | 60,914 | 45,102 |
Derivative liabilities | 253 | 446 |
Total | 61,167 | 45,548 |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 209,827 | 197,955 |
Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 270,557 | 231,888 |
Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale debt securities | 528,857 | |
Available for sale securities | 855,795 | |
Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale debt securities | 218,520 | |
Available for sale securities | 282,840 | |
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale debt securities | 38,372 | |
Available for sale securities | 133,186 | |
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale debt securities | 10,009 | |
Available for sale securities | 10,726 | |
Fair Value, Measurements, Recurring | Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale debt securities | 1,318 | |
Available for sale securities | 167,342 | |
Fair Value, Measurements, Recurring | Equity and Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 23,430 | |
Fair Value, Measurements, Recurring | Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale debt securities | 2,810 | |
Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale debt securities | 551 | |
Available for sale securities | 586 | |
Fair Value, Measurements, Recurring | Equity Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | 23,289 | |
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 | ||
Total | 483,451 | 427,720 |
Total | 483,451 | 427,720 |
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 | 209,827 | 197,955 |
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 | 247,525 | 206,335 |
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 | 23,430 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale debt securities | 2,810 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Equity Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | 23,289 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 820,659 | 1,476,028 |
Derivative assets | 7 | 389 |
Total | 820,666 | 1,476,417 |
Derivative liabilities | 253 | 446 |
Total | 253 | 446 |
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 | 23,032 | 25,553 |
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 debt securities | 528,857 | |
Available for sale securities | 855,795 | |
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 debt securities | 218,520 | |
Available for sale securities | 282,840 | |
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 debt securities | 38,372 | |
Available for sale securities | 133,186 | |
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 debt securities | 10,009 | |
Available for sale securities | 10,726 | |
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 debt securities | 1,318 | |
Available for sale securities | 167,342 | |
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 debt securities | 551 | |
Available for sale securities | 586 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration | 60,914 | 45,102 |
Total | $ 60,914 | $ 45,102 |
Schedule of Reported Financial
Schedule of Reported Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 1,304,117 | $ 1,904,137 |
Liabilities | 61,167 | 45,548 |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 253 | 446 |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 480,384 | 429,843 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 712,309 | 1,347,979 |
Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 111,417 | 125,926 |
Prepayments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 7 | 389 |
Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 35,911 | 24,497 |
Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 25,003 | 20,605 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 483,451 | 427,720 |
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 | 457,352 | 404,290 |
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 | 26,099 | 23,430 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 820,666 | 1,476,417 |
Liabilities | 253 | 446 |
Significant Other Observable Inputs (Level 2) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 253 | 446 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 23,032 | 25,553 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 712,309 | 1,347,979 |
Significant Other Observable Inputs (Level 2) | Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 85,318 | 102,496 |
Significant Other Observable Inputs (Level 2) | Prepayments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 7 | 389 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 60,914 | 45,102 |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 35,911 | 24,497 |
Significant Unobservable Inputs (Level 3) | Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | $ 25,003 | $ 20,605 |
Schedule of Changes in Fair Val
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Balance at beginning of period | $ 15,581 | $ 37,916 | $ 45,102 | $ 38,332 | |
Acquisition of MiR | 51,399 | 51,399 | |||
Foreign currency impact | (2,566) | (2,566) | |||
Payments | [1] | (24,553) | (1,050) | ||
Fair value adjustment | [2] | (3,500) | 1,499 | (8,468) | 2,133 |
Balance at end of period | $ 60,914 | $ 39,415 | $ 60,914 | $ 39,415 | |
[1] | In the six months ended July 1, 2018, Teradyne paid $24.6 million of contingent consideration for the earn-out in connection with the acquisition of Universal Robots A/S ("Universal Robots"). In the six months ended July 2, 2017, Teradyne paid $1.1 million of contingent consideration for the earn-out in connection with the acquisition of Avionics Interface Technology, LLC ("AIT"). | ||||
[2] | In the three and six months ended July 1, 2018, the fair value of contingent consideration for the earn-out in connection with the acquisition of Universal Robots was decreased by $3.5 million and $8.5 million, respectively, primarily due to a decrease in forecasted revenue. In the three and six months ended July 2, 2017, the fair value of contingent consideration for the earn-out in connection with the acquisition of Universal Robots was increased by $1.5 million and $2.1 million, respectively, primarily due to a decrease in the discount rate. |
Schedule of Changes in Fair V58
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Payments of contingent consideration | $ 13,571 | $ 1,050 | ||
Increase (decrease) in contingent consideration | (8,468) | 2,133 | ||
Universal Robots (UR) | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Payments of contingent consideration | 24,600 | |||
Increase (decrease) in contingent consideration | $ (3,500) | $ 1,500 | $ (8,500) | 2,100 |
Avionics Interface Technologies, LLC | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Payments of contingent consideration | $ 1,100 |
Quantitative Information Associ
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2018 | Apr. 25, 2018 | |
Mobile Industrial Robots (MiR) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 51,400 | |
Monte Carlo Simulation | Revenue for the period July 1, 2015-December 31, 2018 | Universal Robots (UR) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Target achievement, volatility | 11.40% | |
Discount Rate | 3.20% | |
Monte Carlo Simulation | Revenue for the period July 1, 2015-December 31, 2018 | Universal Robots (UR) | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 12,081 | |
Monte Carlo Simulation | Revenue for the period January 1, 2018-December 31, 2018 | Mobile Industrial Robots (MiR) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Target achievement, volatility | 18.00% | |
Discount Rate | 0.50% | |
Monte Carlo Simulation | Revenue for the period January 1, 2018-December 31, 2018 | Mobile Industrial Robots (MiR) | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 48,833 |
Schedule of Carrying Amounts an
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Marketable securities | $ 800,437 | $ 1,473,905 | |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | 480,384 | 429,843 | |
Marketable securities | 823,726 | 1,473,905 | |
Derivative assets | 7 | 389 | |
Contingent consideration | 60,914 | 45,102 | |
Derivative liabilities | 253 | 446 | |
Convertible debt | [1] | 372,897 | 365,987 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | 480,384 | 429,843 | |
Marketable securities | 823,726 | 1,473,905 | |
Derivative assets | 7 | 389 | |
Contingent consideration | 60,914 | 45,102 | |
Derivative liabilities | 253 | 446 | |
Convertible debt | [1] | $ 612,693 | $ 659,525 |
[1] | The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. |
Schedule of Available for Sale
Schedule of Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 803,061 | $ 1,470,729 |
Available-for-sale marketable securities, Unrealized Gain | 707 | 6,582 |
Available-for-sale marketable securities, Unrealized (Loss) | (3,331) | (3,406) |
Available-for-sale marketable securities, Fair Market Value | 800,437 | 1,473,905 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 691,584 | 1,350,895 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 530,944 | 858,258 |
Available-for-sale marketable securities, Unrealized Gain | 29 | 72 |
Available-for-sale marketable securities, Unrealized (Loss) | (2,116) | (2,535) |
Available-for-sale marketable securities, Fair Market Value | 528,857 | 855,795 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 477,385 | 850,163 |
Commercial Paper | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 218,594 | 283,009 |
Available-for-sale marketable securities, Unrealized Gain | 9 | 18 |
Available-for-sale marketable securities, Unrealized (Loss) | (83) | (187) |
Available-for-sale marketable securities, Fair Market Value | 218,520 | 282,840 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 184,349 | 258,933 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 38,709 | 131,179 |
Available-for-sale marketable securities, Unrealized Gain | 668 | 2,380 |
Available-for-sale marketable securities, Unrealized (Loss) | (1,005) | (373) |
Available-for-sale marketable securities, Fair Market Value | 38,372 | 133,186 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 20,956 | 91,010 |
U.S. Government Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 10,066 | 10,775 |
Available-for-sale marketable securities, Unrealized Gain | 1 | |
Available-for-sale marketable securities, Unrealized (Loss) | (58) | (49) |
Available-for-sale marketable securities, Fair Market Value | 10,009 | 10,726 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 7,034 | 10,726 |
Debt Mutual Funds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 2,878 | |
Available-for-sale marketable securities, Unrealized (Loss) | (68) | |
Available-for-sale marketable securities, Fair Market Value | 2,810 | |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 1,681 | |
Equity and Debt Mutual Funds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 19,403 | |
Available-for-sale marketable securities, Unrealized Gain | 4,102 | |
Available-for-sale marketable securities, Unrealized (Loss) | (75) | |
Available-for-sale marketable securities, Fair Market Value | 23,430 | |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 1,723 | |
Certificates of Deposit and Time Deposits | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 1,318 | 167,523 |
Available-for-sale marketable securities, Unrealized Gain | 6 | |
Available-for-sale marketable securities, Unrealized (Loss) | (187) | |
Available-for-sale marketable securities, Fair Market Value | 1,318 | 167,342 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 138,340 | |
Non-U.S. Government Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 552 | 582 |
Available-for-sale marketable securities, Unrealized Gain | 4 | |
Available-for-sale marketable securities, Unrealized (Loss) | (1) | |
Available-for-sale marketable securities, Fair Market Value | 551 | $ 586 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $ 179 |
Schedule of Reported Available
Schedule of Reported Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 803,061 | $ 1,470,729 |
Available-for-sale marketable securities, Unrealized Gain | 707 | 6,582 |
Available-for-sale marketable securities, Unrealized (Loss) | (3,331) | (3,406) |
Available-for-sale marketable securities, Fair Market Value | 800,437 | 1,473,905 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 691,584 | 1,350,895 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 712,732 | 1,349,970 |
Available-for-sale marketable securities, Unrealized Gain | 68 | 38 |
Available-for-sale marketable securities, Unrealized (Loss) | (491) | (2,029) |
Available-for-sale marketable securities, Fair Market Value | 712,309 | 1,347,979 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 620,327 | 1,288,844 |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 90,329 | 120,759 |
Available-for-sale marketable securities, Unrealized Gain | 639 | 6,544 |
Available-for-sale marketable securities, Unrealized (Loss) | (2,840) | (1,377) |
Available-for-sale marketable securities, Fair Market Value | 88,128 | 125,926 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $ 71,257 | $ 62,051 |
Contractual Maturities of Inves
Contractual Maturities of Investments in Debt Securities Held (Detail) $ in Thousands | Jul. 01, 2018USD ($) |
Schedule of Available-for-sale Securities | |
Due within one year, cost | $ 712,732 |
Due after 1 year through 5 years, cost | 32,201 |
Due after 5 years through 10 years, cost | 15,455 |
Due after 10 years, cost | 39,795 |
Total, cost | 800,183 |
Due within one year, fair market value | 712,309 |
Due after 1 year through 5 years, fair market value | 32,080 |
Due after 5 years through 10 years, fair market value | 14,587 |
Due after 10 years, fair maket value | 38,651 |
Total, fair market value | $ 797,627 |
Schedule of Derivative Instrume
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets (liabilities), net | $ (246) | $ (57) |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Prepayments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 7 | 389 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (253) | $ (446) |
Schedule of Effect of Derivativ
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Losses (Gains) on derivatives recognized in statements of operations | $ 1,826 | $ (1,586) | $ 3,401 | $ (575) |
Schedule of Effect of Derivat66
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on foreign currency transactions | $ 1.9 | $ 2.4 | $ 2.5 | $ 0.9 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, shares in Millions | Dec. 12, 2016USD ($)d$ / shares | Apr. 27, 2015USD ($) | Jul. 01, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) |
Debt Instrument | ||||
Term of loan, years | 5 years | |||
Pledge percentage of capital stock | 65.00% | |||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | ||||
Debt Instrument | ||||
Aggregate principal amount | $ 460,000,000 | $ 460,000,000 | $ 460,000,000 | |
Debt instrument, interest rate, stated percentage | 1.25% | |||
Senior notes maturity date | Dec. 15, 2023 | |||
Debt instrument, frequency of periodic payment | Payable semi-annually in arrears on June 15 and December 15 of each year | |||
Debt instrument, date of first required payment | Jun. 15, 2017 | |||
Debt instrument, conversion option expiration date | Sep. 15, 2023 | |||
Debt instrument conversion rate, shares | 0.314463 | |||
Debt instrument conversion price | $ / shares | $ 31.80 | $ 31.80 | ||
Shares that would be issued upon conversion | shares | 14.5 | |||
Strike price per share of warrant | $ / shares | $ 39.91 | |||
Payment for net cost of convertible note hedges net of warrant proceeds | $ 33,000,000 | |||
Debt instrument, effective annual interest rate | 5.00% | |||
Financing cost | $ 7,200,000 | $ 5,800,000 | ||
Debt issuance costs, amortization period | 7 years | |||
Unamortized discount | $ 87,100,000 | |||
Debt Instrument, convertible, remaining discount amortization period | 5 years 6 months | |||
Debt instrument, convertible, carrying amount of equity component | $ 100,800,000 | |||
Value of notes converted | 550,700,000 | |||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Conversion option one | ||||
Debt Instrument | ||||
Trading days measurement period | d | 20 | |||
Consecutive trading days measurement period | d | 30 | |||
Percentage of conversion price | 130.00% | |||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Conversion option two | ||||
Debt Instrument | ||||
Trading days measurement period | d | 5 | |||
Consecutive trading days measurement period | d | 5 | |||
Percentage of closing sale price of common stock and conversion rate product | 98.00% | |||
Maximum | ||||
Debt Instrument | ||||
Aggregate principal amount | $ 150,000,000 | |||
Commitment fee percentage of unused portion of credit facility | 0.35% | |||
Minimum | ||||
Debt Instrument | ||||
Commitment fee percentage of unused portion of credit facility | 0.125% | |||
Base Rate | Maximum | ||||
Debt Instrument | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Base Rate | Minimum | ||||
Debt Instrument | ||||
Debt instrument, basis spread on variable rate | 0.00% | |||
London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt Instrument | ||||
Debt instrument, basis spread on variable rate | 2.00% | |||
London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt Instrument | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Revolving Credit Facility | ||||
Debt Instrument | ||||
Financing cost | $ 2,300,000 | |||
Financing cost, amortization term | 5 years | |||
Revolving Credit Facility | Maximum | ||||
Debt Instrument | ||||
Credit facility, borrowing capacity | $ 350,000,000 |
Components of Convertible Senio
Components of Convertible Senior Notes (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 | Dec. 12, 2016 |
Debt Instrument | |||
Net carrying amount of convertible debt | $ 372,897 | $ 365,987 | |
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | |||
Debt Instrument | |||
Debt principal | 460,000 | 460,000 | $ 460,000 |
Unamortized discount | 87,103 | 94,013 | |
Net carrying amount of convertible debt | $ 372,897 | $ 365,987 |
Interest Expense on Convertible
Interest Expense on Convertible Senior Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Debt Instrument | ||||
Contractual interest expense on the coupon | $ 1,438 | $ 1,438 | $ 2,875 | $ 2,875 |
Amortization of the discount component and debt issue fees recognized as interest expense | 3,477 | 3,308 | 6,911 | 6,576 |
Total interest expense on the convertible debt | $ 4,915 | $ 4,746 | $ 9,786 | $ 9,451 |
Schedule of Prepayments and Oth
Schedule of Prepayments and Other Assets (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2017 |
Prepaid And Other Current Assets [Line Items] | ||
Contract manufacturer and supplier prepayments | $ 78,148 | $ 82,503 |
Prepaid maintenance and other services | 8,651 | 8,189 |
Prepaid taxes | 6,801 | 5,039 |
Other prepayments | 13,114 | 12,386 |
Total prepayments | $ 106,714 | $ 108,117 |
Deferred Revenue and Customer71
Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Apr. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 31, 2016 |
Deferred Revenue Arrangement | |||||||
Maintenance and training | $ 60,993 | $ 57,256 | |||||
Extended warranty | 25,971 | $ 24,590 | $ 24,438 | 24,438 | $ 29,377 | $ 24,969 | $ 28,200 |
Customer advances, undelivered elements and other | 20,902 | 32,047 | |||||
Total deferred revenue and customer advances | $ 107,866 | $ 113,741 |
Warranty Accrual Included in Ot
Warranty Accrual Included in Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Product Warranty Liability [Line Items] | ||||
Balance at beginning of period | $ 7,548 | $ 7,054 | $ 8,200 | $ 7,203 |
Acquisition | 41 | 41 | ||
Accruals for warranties issued during the period | 3,348 | 5,294 | 6,411 | 8,315 |
Adjustments related to pre-existing warranties | (34) | 7 | (173) | (464) |
Settlements made during the period | (3,767) | (3,262) | (7,343) | (5,961) |
Balance at end of period | $ 7,136 | $ 9,093 | $ 7,136 | $ 9,093 |
Extended Product Warranty of Sh
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Product Warranty Liability [Line Items] | ||||
Balance at beginning of period | $ 24,590 | $ 24,969 | $ 24,438 | $ 28,200 |
Deferral of new extended warranty revenue | 6,701 | 10,442 | 11,839 | 14,490 |
Recognition of extended warranty deferred revenue | (5,320) | (6,034) | (10,306) | (13,313) |
Balance at end of period | $ 25,971 | $ 29,377 | $ 25,971 | $ 29,377 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares shares in Millions | 1 Months Ended | 6 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2014 | Jul. 01, 2018 | Jul. 02, 2017 | |
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Period of stock granted to employees and executive officers vest in equal annual installments | 4 years | ||||
Percentage of common stock price paid | 100.00% | ||||
Stock options term | 7 years | ||||
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 annual 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 annual 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 years | ||||
Minimum years of service for retirement to be eligible for PRSUs | 10 years | ||||
Restricted stock unit awards granted | 0.1 | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 54.85 | $ 35.66 | |||
Stock price | 47.70 | 28.56 | |||
TSR Performance-Based Restricted Stock Units | Measurement Input, Expected Dividend Payment [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Estimated annual dividend amount per share | $ 0.36 | $ 0.28 | |||
TSR Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche One | |||||
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 | Share-based Compensation Award, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Percentage of vesting of target shares upon performance achieved | 0.00% | ||||
PBIT Performance-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total shareholder return performance measurement period | 3 years | ||||
Restricted stock unit awards granted | 0.1 | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 46.62 | $ 27.72 | |||
PBIT Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Percentage of vesting of target shares upon performance achieved | 200.00% | ||||
PBIT Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Percentage of vesting of target shares upon performance achieved | 0.00% | ||||
Service-Based Restricted Stock Units | Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Restricted stock unit awards granted | 0.6 | 0.8 | |||
Weighted average grant date fair value of restricted stock units granted | $ 46.38 | $ 27.98 | |||
Service-Based Restricted Stock Units | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Restricted stock unit awards granted | 0.1 | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 35.81 | $ 35.21 | |||
Service-Based Restricted Stock Units | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Restricted stock unit awards granted | 0.1 | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 12.17 | $ 7.13 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions (Detail) - TSR Performance-Based Restricted Stock Units | 6 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Risk-free interest rate | 2.20% | 1.50% |
Expected historical volatility | 26.80% | 26.60% |
Dividend yield | 0.80% | 1.00% |
New York Stock Exchange Composite Index | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected historical volatility | 12.40% | 13.40% |
Schedule of Estimated Fair Va76
Schedule of Estimated Fair Value of Stock Options Grant Using Black Scholes Option Pricing Model (Detail) - Stock Options | 6 Months Ended | |
Jul. 01, 2018 | Jul. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected life (years) | 5 years | 5 years |
Risk-free interest rate | 2.40% | 2.00% |
Volatility-historical | 26.40% | 27.80% |
Dividend yield | 0.80% | 1.00% |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, net of tax | $ (21,270) | $ 26,442 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1,346 | (313) | ||
Other comprehensive (loss) income | $ (29,384) | $ 16,815 | (19,924) | 26,129 |
Reclassification of income tax effects from the Tax Reform Act, net of tax | 769 | |||
Reclassification of unrealized gains on equity securities, net of tax | (199) | (83) | 1,469 | (177) |
Balance | 1,739,940 | 1,739,940 | ||
ASU 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification of unrealized gains on equity securities, net of tax | (3,125) | |||
Foreign Currency Translation Reclassification Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 15,919 | (21,921) | ||
Other comprehensive income (loss) before reclassifications, net of tax | (18,781) | 24,944 | ||
Other comprehensive (loss) income | (18,781) | 24,944 | ||
Balance | (2,862) | 3,023 | (2,862) | 3,023 |
Unrealized Gains (Losses) on Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 1,362 | (60) | ||
Other comprehensive income (loss) before reclassifications, net of tax | (2,489) | 1,498 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1,469 | (177) | ||
Other comprehensive (loss) income | (1,020) | 1,321 | ||
Reclassification of income tax effects from the Tax Reform Act, net of tax | 691 | |||
Balance | (2,092) | 1,261 | (2,092) | 1,261 |
Unrealized Gains (Losses) on Marketable Securities | ASU 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification of unrealized gains on equity securities, net of tax | (3,125) | |||
Amortization of Prior Service Credit | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 1,495 | 1,767 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (61) | (68) | (123) | (136) |
Other comprehensive (loss) income | (123) | (136) | ||
Reclassification of income tax effects from the Tax Reform Act, net of tax | 78 | |||
Balance | 1,450 | 1,631 | 1,450 | 1,631 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 18,776 | (20,214) | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (260) | (151) | 1,346 | (313) |
Balance | $ (3,504) | $ 5,915 | $ (3,504) | $ 5,915 |
Changes in Accumulated Other 78
Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ (86) | $ (80) | $ (24) | $ (183) | ||
Foreign currency translation adjustments, tax | 0 | 0 | 0 | 0 | $ 0 | $ 0 |
Unrealized gains on marketable securities, tax | (511) | 1,288 | (511) | 1,288 | 1,815 | 209 |
Retirement plans prior service benefit, tax | (1,045) | (855) | (1,045) | (855) | $ (932) | $ (778) |
Reclassification of unrealized gains on equity securities, net of tax | 68 | 42 | (11) | 106 | ||
Foreign Currency Translation Reclassification Adjustments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | 0 | 0 | ||||
Other comprehensive income (loss), tax | 0 | 0 | ||||
Reclassification of income tax effects from the Tax Reform Act, net of tax | 0 | |||||
Unrealized Gains (Losses) on Marketable Securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, tax | (744) | 1,185 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | (68) | (42) | 11 | (106) | ||
Other comprehensive income (loss), tax | (733) | 1,079 | ||||
Reclassification of income tax effects from the Tax Reform Act, net of tax | (691) | |||||
Amortization of Prior Service Credit | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ (18) | $ (38) | (35) | (77) | ||
Other comprehensive income (loss), tax | (35) | $ (77) | ||||
Reclassification of income tax effects from the Tax Reform Act, net of tax | (78) | |||||
ASU 2016-01 | Foreign Currency Translation Reclassification Adjustments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification of unrealized gains on equity securities, net of tax | 0 | |||||
ASU 2016-01 | Unrealized Gains (Losses) on Marketable Securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification of unrealized gains on equity securities, net of tax | (902) | |||||
ASU 2016-01 | Amortization of Prior Service Credit | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification of unrealized gains on equity securities, net of tax | $ 0 |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) to Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income and interest expense | $ (5,427) | $ (3,292) | $ (11,407) | $ (6,812) |
Reclassifications, net of tax | (1,346) | 313 | ||
Unrealized Gains (Losses) on Marketable Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | (1,469) | 177 | ||
Amortization of Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | 61 | 68 | 123 | 136 |
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | 260 | 151 | (1,346) | 313 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Marketable Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income and interest expense | $ 199 | $ 83 | $ (1,469) | $ 177 |
Reclassifications Out of Accu80
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) to Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | $ 86 | $ 80 | $ 24 | $ 183 |
Unrealized Gains (Losses) on Marketable Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | 68 | 42 | (11) | 106 |
Amortization of Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | $ 18 | $ 38 | $ 35 | $ 77 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | 6 Months Ended | |||
Jul. 01, 2018 | Apr. 25, 2018 | Feb. 26, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||||
Foreign currency translation adjustment | $ (13,527) | |||
Goodwill | 1,151,191 | $ 1,014,577 | ||
Accumulated impairment losses | (762,566) | (762,566) | ||
Goodwill | 388,625 | 252,011 | ||
Mobile Industrial Robots (MiR) | ||||
Goodwill [Line Items] | ||||
Goodwill acquisition | 135,747 | |||
Goodwill | $ 135,747 | |||
Energid Technologies Corporation | ||||
Goodwill [Line Items] | ||||
Goodwill acquisition | 14,394 | |||
Goodwill | $ 14,400 | |||
Wireless Test | ||||
Goodwill [Line Items] | ||||
Goodwill | 361,819 | 361,819 | ||
Accumulated impairment losses | (353,843) | (353,843) | ||
Goodwill | 7,976 | 7,976 | ||
Industrial Automation | ||||
Goodwill [Line Items] | ||||
Foreign currency translation adjustment | (13,527) | |||
Goodwill | 370,133 | 233,519 | ||
Goodwill | 370,133 | 233,519 | ||
Industrial Automation | Mobile Industrial Robots (MiR) | ||||
Goodwill [Line Items] | ||||
Goodwill acquisition | 135,747 | |||
Industrial Automation | Energid Technologies Corporation | ||||
Goodwill [Line Items] | ||||
Goodwill acquisition | 14,394 | |||
System Test | ||||
Goodwill [Line Items] | ||||
Goodwill | 158,699 | 158,699 | ||
Accumulated impairment losses | (148,183) | (148,183) | ||
Goodwill | 10,516 | 10,516 | ||
Semiconductor Test | ||||
Goodwill [Line Items] | ||||
Goodwill | 260,540 | 260,540 | ||
Accumulated impairment losses | $ (260,540) | $ (260,540) |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jul. 01, 2018 | Dec. 31, 2017 | |||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | $ 505,688 | [1],[2] | $ 414,038 | |
Accumulated Amortization | (354,273) | [1] | (337,155) | |
Foreign Currency Translation Adjustment | (3,242) | 2,205 | ||
Net Carrying Amount | 148,173 | 79,088 | ||
Developed technology | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 341,227 | [1],[2] | 270,877 | |
Accumulated Amortization | (236,924) | [1] | (226,190) | |
Foreign Currency Translation Adjustment | (2,687) | 1,618 | ||
Net Carrying Amount | 101,616 | 46,305 | ||
Customer Relationships | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 100,891 | [1],[2] | 92,741 | |
Accumulated Amortization | (86,509) | [1] | (83,585) | |
Foreign Currency Translation Adjustment | (118) | 171 | ||
Net Carrying Amount | 14,264 | 9,327 | ||
Trademarks and tradenames | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 63,240 | [1],[2] | 50,100 | |
Accumulated Amortization | (30,530) | [1] | (27,120) | |
Foreign Currency Translation Adjustment | (437) | 416 | ||
Net Carrying Amount | 32,273 | 23,396 | ||
Non-compete Agreements | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | 320 | [1],[2] | 320 | |
Accumulated Amortization | (300) | [1] | (260) | |
Net Carrying Amount | 20 | $ 60 | ||
Customer backlog | ||||
Finite-Lived Intangible Assets | ||||
Gross Carrying Amount | [1],[2] | 10 | ||
Accumulated Amortization | [1] | $ (10) | ||
[1] | In 2018, $0.3 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. | |||
[2] | Includes intangible assets acquired in 2018, $79.7 million from the MiR acquisition and $12.3 million from the Energid acquisition. |
Schedule of Amortizable Intan83
Schedule of Amortizable Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 25, 2018 | Jul. 01, 2018 |
Finite-Lived Intangible Assets | ||
Impairment of intangible assets | $ 300 | |
Mobile Industrial Robots (MiR) | ||
Finite-Lived Intangible Assets | ||
Intangible assets acquired | $ 79,660 | 79,700 |
Energid Technologies Corporation | ||
Finite-Lived Intangible Assets | ||
Intangible assets acquired | $ 12,300 |
Goodwill and Acquired Intangi84
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Acquired intangible assets amortization | $ 9,793 | $ 8,166 | $ 17,491 | $ 16,118 |
Schedule of Estimated Intangibl
Schedule of Estimated Intangible Asset Amortization Expense (Detail) $ in Thousands | Jul. 01, 2018USD ($) |
Finite-Lived Intangible Assets | |
2018 (remainder) | $ 20,856 |
2,019 | 37,891 |
2,020 | 23,671 |
2,021 | 14,734 |
2,022 | 13,841 |
Thereafter | $ 37,180 |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | ||
Net Income Loss Per Common Share | |||||
Net income for basic and diluted net income per share | $ 101,037 | $ 174,976 | $ 188,010 | $ 260,197 | |
Weighted average common shares-basic | 190,730 | 198,774 | 192,992 | 199,390 | |
Incremental shares from assumed conversion of convertible notes | [1] | 2,643 | 752 | 3,520 | 376 |
Convertible note hedge warrant shares | [2] | 915 | |||
Employee stock purchase plan | 43 | 63 | 28 | 36 | |
Dilutive potential common shares | 4,179 | 2,755 | 6,205 | 2,342 | |
Weighted average common shares-diluted | 194,909 | 201,529 | 199,197 | 201,732 | |
Net income per common share-basic | $ 0.53 | $ 0.88 | $ 0.97 | $ 1.30 | |
Net income per common share-diluted | $ 0.52 | $ 0.87 | $ 0.94 | $ 1.29 | |
Restricted Stock Units | |||||
Net Income Loss Per Common Share | |||||
Incremental shares attributable to share based payment arrangements | 1,219 | 1,622 | 1,444 | 1,576 | |
Stock Options | |||||
Net Income Loss Per Common Share | |||||
Incremental shares attributable to share based payment arrangements | 274 | 318 | 298 | 354 | |
[1] | Incremental shares from 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 $31.80, multiplied by 14.5 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 $39.91, multiplied by 14.5 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. |
Computation of Basic and Dilu87
Computation of Basic and Diluted Net Income Per Common Share (Parenthetical) (Detail) shares in Millions | 6 Months Ended |
Jul. 01, 2018$ / sharesshares | |
Convertible Notes | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $ / shares | $ 31.80 |
Shares that would be issued upon conversion | shares | 14.5 |
Convertible Notes Hedge Warrant | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $ / shares | $ 39.91 |
Shares that would be issued upon conversion | shares | 14.5 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Net Income Loss Per Common Share | ||||
Exercise of stock options | 0.1 | 0.1 | ||
Restricted Stock Units | ||||
Net Income Loss Per Common Share | ||||
Dilutive securities excluded from earning per share | 0.6 | 0.5 |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Restructuring Cost and Reserve | ||||
Severance benefit and charges | $ 800 | |||
Acquisition related expenses | $ 2,500 | $ 3,300 | ||
Contingent consideration adjustment | (8,468) | $ 2,133 | ||
Lease termination year | 2017-09 | |||
Semiconductor Test | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | 2,400 | |||
Semiconductor Test and Industrial Automation [Member] | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | 6,300 | |||
Wireless Test | ||||
Restructuring Cost and Reserve | ||||
Lease impairment | $ 1,300 | |||
Industrial Automation | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | 1,400 | |||
Universal Robots (UR) | ||||
Restructuring Cost and Reserve | ||||
Contingent consideration adjustment | $ (3,500) | $ 1,500 | $ (8,500) | $ 2,100 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 01, 2018USD ($)Participant | Jul. 01, 2018USD ($) | |
Defined Benefit Plan Disclosure | ||
Number of retiree participants | Participant | 1,700 | |
Defined Benefit Plan, decrease in benefit obligation | $ (150.9) | |
Defined Benefit Plan, decrease in plan assets | (150.9) | |
Gain (Loss) Due to Settlement | $ (0.1) | $ (0.1) |
U.S. Supplemental Executive Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure | ||
Contribution to defined benefit pension plans | 1.3 | |
Non-United States Subsidiaries | ||
Defined Benefit Plan Disclosure | ||
Contribution to defined benefit pension plans | $ 0.4 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension and Postretirement benefit Cost (Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Defined Benefit Plan Disclosure | ||||
Net actuarial loss (gain) | $ (71) | $ (2,504) | ||
Settlement loss | $ 100 | 100 | ||
UNITED STATES | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 545 | $ 560 | 1,116 | 1,120 |
Interest cost | 2,430 | 3,264 | 5,427 | 6,576 |
Expected return on plan assets | (2,550) | (3,004) | (5,919) | (6,004) |
Amortization of prior service cost | 14 | 18 | 29 | 35 |
Net actuarial loss (gain) | (189) | (2,732) | (189) | (2,732) |
Settlement loss | 78 | 78 | ||
Total | 328 | (1,894) | 542 | (1,005) |
Foreign Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 200 | 206 | 426 | 392 |
Interest cost | 175 | 179 | 372 | 342 |
Expected return on plan assets | (5) | (6) | (10) | (12) |
Amortization of prior service cost | 243 | |||
Net actuarial loss (gain) | 243 | |||
Total | 370 | 622 | 788 | 965 |
Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 10 | 7 | 19 | 17 |
Interest cost | 48 | 50 | 98 | 100 |
Amortization of prior service credit | (93) | (124) | (187) | (248) |
Net actuarial loss (gain) | 40 | (15) | 40 | (15) |
Special termination benefits | 1,192 | 2,818 | ||
Total | $ 1,197 | $ (82) | $ 2,788 | $ (146) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Jul. 01, 2018USD ($) |
Purchase Commitment, Excluding Long-term Commitment | |
Aggregate purchase commitments | $ 310.4 |
Purchase commitments less than one year | $ 302.7 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 01, 2018 | Dec. 31, 2017 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||||
Effective tax rate | 15.80% | 15.40% | 12.90% | 12.90% | ||
U.S. statutory federal tax rate | 21.00% | 21.00% | 35.00% | |||
Discrete tax benefits | $ 0.7 | $ 6.5 | $ 6.7 | $ 6.5 | ||
Discrete tax benefits, non-taxable foregn exchange gain | 0.7 | (0.7) | 1.1 | (0.3) | ||
Discrete tax benefits, net | 9.1 | |||||
Discrete tax expense | 0.5 | 2.4 | 0.5 | |||
Discrete tax benefits, stock based compensation | 1 | 7.6 | 6.5 | |||
Discrete tax benefits, other | 0.2 | 0.4 | 0.6 | |||
Discrete tax expense, remeasurement of deferred tax assets | 1.7 | |||||
Discrete tax expenses, Other | 0.7 | |||||
Discrete tax expense, actuarial gains | $ 1 | 1 | ||||
Discrete tax benefits, U.S research and development tax credits | 0.7 | |||||
Uncertain tax positions | 37.9 | $ 36.3 | 37.9 | $ 36.3 | ||
Net Increase in uncertain tax positions | 1.6 | |||||
Accrued interest and penalties | $ 0.3 | 0.3 | 0.3 | $ 0.3 | ||
Interest and penalties related to income tax, expense (benefit) | 0.1 | 0.1 | ||||
Tax savings due to the tax holiday | $ 4.8 | $ 15.1 | ||||
Tax savings due to the tax holiday, per share | $ 0.02 | $ 0.07 | ||||
Tax holiday expiration date | December 31, 2020 | |||||
Provisional amount of additional income tax expense | 186 | |||||
Transition tax on mandatory deemed repatriation of foreign earnings | 161 | |||||
Expense related to remeasurement of deferred tax assets and liabilities | 33.6 | |||||
Benefit associated with impact of correlative adjustments on tax positions | 10.3 | |||||
Expense related to remeasurement of certain deferred | $ 1.7 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jul. 01, 2018Segment | |
Segment Reporting Information [Line Items] | |
Reportable segments | 4 |
Schedule of Segment Information
Schedule of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2017 | ||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | $ 526,929 | $ 696,901 | $ 1,014,396 | $ 1,153,814 | ||||||
Income (loss) before income taxes | [1],[2] | 120,012 | 206,877 | 215,831 | 298,893 | |||||
Total assets | 2,931,720 | [3] | 3,030,225 | [3] | 2,931,720 | [3] | 3,030,225 | [3] | $ 3,109,545 | |
Semiconductor Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 360,088 | 593,152 | 733,416 | 948,679 | ||||||
Income (loss) before income taxes | [1],[2] | 91,159 | 211,278 | 179,238 | 309,244 | |||||
Total assets | [3] | 765,484 | 766,395 | 765,484 | 766,395 | |||||
System Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 69,682 | 36,732 | 112,702 | 76,578 | ||||||
Income (loss) before income taxes | [1],[2] | 20,352 | (5,692) | 26,240 | (8,451) | |||||
Total assets | [3] | 107,199 | 108,083 | 107,199 | 108,083 | |||||
Industrial Automation | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 62,057 | 39,337 | 110,891 | 75,610 | ||||||
Income (loss) before income taxes | [1],[2] | (2,922) | (1,081) | (2,138) | (3,652) | |||||
Total assets | [3] | 597,293 | 349,023 | 597,293 | 349,023 | |||||
Wireless Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 35,212 | 27,680 | 57,719 | 52,947 | ||||||
Income (loss) before income taxes | [1],[2] | 10,308 | 4,514 | 10,772 | 6,046 | |||||
Total assets | [3] | 77,638 | 62,900 | 77,638 | 62,900 | |||||
Corporate and Eliminations | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | (110) | (332) | ||||||||
Income (loss) before income taxes | [1],[2] | 1,115 | (2,142) | 1,719 | (4,294) | |||||
Total assets | [3] | $ 1,384,106 | $ 1,743,824 | $ 1,384,106 | $ 1,743,824 | |||||
[1] | Included in Corporate and Other are: contingent consideration adjustments, severance charges, interest income, interest expense, net foreign exchange gains (losses), and acquisition related charges. | |||||||||
[2] | Included in the income (loss) before income taxes for each of the segments are charges and credits related to restructuring and other and inventory 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. |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | |
Segment Reporting Information [Line Items] | ||||
Contingent consideration adjustment | $ (8,468) | $ 2,133 | ||
Acquisition related expense | $ 2,500 | 3,300 | ||
Restructuring and other-employee severance | 2,389 | $ 2,288 | 2,076 | 4,799 |
Universal Robots (UR) | ||||
Segment Reporting Information [Line Items] | ||||
Contingent consideration adjustment | (3,500) | 1,500 | (8,500) | 2,100 |
Semiconductor Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues-inventory charge | 1,613 | 1,624 | 3,779 | 2,943 |
Semiconductor Test | Severance And Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other-employee severance | 2,179 | 132 | 5,940 | (133) |
System Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues-inventory charge | 256 | 473 | 576 | 1,358 |
Industrial Automation | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other-employee severance | 218 | 321 | 338 | 945 |
Wireless Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues-inventory charge | 627 | 472 | 1,463 | 994 |
Restructuring and other-lease impairment | 1,313 | |||
Corporate and Eliminations | Restructuring and other | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition related expense | 2,544 | 3,318 | ||
Restructuring and other | 872 | 872 | ||
Restructuring and other-employee severance | 325 | 530 | ||
Corporate and Eliminations | Universal Robots (UR) | Restructuring and other | ||||
Segment Reporting Information [Line Items] | ||||
Contingent consideration adjustment | $ (3,500) | $ 1,499 | $ (8,468) | $ 2,133 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2018 | Jul. 02, 2017 | Dec. 31, 2018 | May 31, 2018 | Jan. 31, 2018 | May 31, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | |
Stockholders Equity Note Disclosure [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 500,000,000 | |||||||||
Cumulative repurchases, value | $ 360,800,000 | $ 94,300,000 | ||||||||
Cumulative repurchases, shares | 8.8 | 3 | ||||||||
Common stock average price | $ 40.82 | $ 31.77 | ||||||||
Dividends payable, amount per share | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.07 | ||||||
Dividend payment | $ 17,100,000 | $ 13,900,000 | $ 34,682,000 | $ 27,925,000 | ||||||
Scenario, Forecast | ||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||
Cumulative repurchases, value | $ 750,000,000 | |||||||||
Maximum | ||||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 1,500,000,000 |