Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 29, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | TERADYNE, INC | ||
Entity Central Index Key | 97,210 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 6.4 | ||
Trading Symbol | TER | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 173,629,283 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 926,752 | $ 429,843 | |
Marketable securities | 190,096 | 1,347,979 | |
Accounts receivable, less allowance for doubtful accounts of $1,673 and $2,219 in 2018 and 2017, respectively | 291,267 | 272,783 | |
Inventories, net | 153,541 | 107,525 | |
Prepayments and other current assets | 170,826 | 112,151 | |
Total current assets | 1,732,482 | 2,270,281 | |
Property, plant and equipment, net | 279,821 | 268,447 | |
Marketable securities | 87,731 | 125,926 | |
Deferred tax assets | 70,848 | 84,026 | |
Retirement plans assets | 16,883 | 17,491 | |
Other assets | 11,509 | 12,275 | |
Acquired intangible assets, net | 125,482 | 79,088 | |
Goodwill | 381,850 | 252,011 | |
Total assets | [1] | 2,706,606 | 3,109,545 |
Current liabilities: | |||
Accounts payable | 100,688 | 86,393 | |
Accrued employees' compensation and withholdings | 148,566 | 141,694 | |
Deferred revenue and customer advances | 77,711 | 83,614 | |
Other accrued liabilities | 78,272 | 59,083 | |
Contingent consideration | 34,865 | 24,497 | |
Income taxes payable | 36,185 | 59,055 | |
Total current liabilities | 476,287 | 454,336 | |
Retirement plans liabilities | 117,456 | 119,776 | |
Long-term deferred revenue and customer advances | 32,750 | 30,127 | |
Long-term contingent consideration | 35,678 | 20,605 | |
Deferred tax liabilities | 20,662 | 6,720 | |
Long-term other accrued liabilities | 37,547 | 10,273 | |
Long-term income taxes payable | 83,891 | 148,075 | |
Long-term debt | 379,981 | 365,987 | |
Total liabilities | 1,184,252 | 1,155,899 | |
Commitments and contingencies (Note K) | |||
Shareholders' equity | |||
Common stock, $0.125 par value, 1,000,000 shares authorized, 175,522 and 195,548 shares issued and outstanding at December 31, 2018 and 2017, respectively | 21,940 | 24,444 | |
Additional paid-in capital | 1,671,645 | 1,638,413 | |
Accumulated other comprehensive (loss) income | (13,040) | 18,776 | |
(Accumulated deficit) Retained earnings | (158,191) | 272,013 | |
Total shareholders' equity | 1,522,354 | 1,953,646 | |
Total liabilities and shareholders' equity | $ 2,706,606 | $ 3,109,545 | |
[1] | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, less allowance for doubtful accounts | $ 1,673 | $ 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 | 175,522,000 | 195,548,000 |
Common stock, shares outstanding | 175,522,000 | 195,548,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | [1],[2] | Sep. 30, 2018 | [2],[3] | Jul. 01, 2018 | [2],[4] | Apr. 01, 2018 | [5] | Dec. 31, 2017 | [6],[7] | Oct. 01, 2017 | [7],[8] | Jul. 02, 2017 | [7],[9] | Apr. 02, 2017 | [10] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||||||||||||||||||
Total revenues | $ 519,558 | $ 566,848 | $ 526,929 | $ 487,467 | $ 479,415 | $ 503,378 | $ 696,901 | $ 456,913 | $ 2,100,802 | $ 2,136,606 | $ 1,753,250 | ||||||||
Cost of revenues: | |||||||||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 210,023 | 233,155 | 219,595 | 217,635 | 208,485 | 208,509 | 306,263 | 191,897 | 880,408 | 915,153 | 794,642 | ||||||||
Gross profit | 309,535 | 333,693 | 307,334 | 269,832 | 270,930 | 294,869 | 390,638 | 265,016 | 1,220,394 | 1,221,453 | 958,608 | ||||||||
Operating expenses: | |||||||||||||||||||
Selling and administrative | 100,552 | 100,202 | 99,410 | 90,505 | 87,880 | 86,130 | 90,111 | 84,792 | 390,669 | 348,913 | 316,544 | ||||||||
Engineering and development | 74,706 | 77,049 | 75,342 | 74,408 | 72,070 | 76,986 | 82,270 | 75,978 | 301,505 | 307,305 | 292,159 | ||||||||
Acquired intangible assets amortization | 10,558 | 11,142 | 9,793 | 7,698 | 7,384 | 7,028 | 8,166 | 7,952 | 39,191 | 30,530 | 52,648 | ||||||||
Restructuring and other | 11,446 | 1,710 | 2,389 | (313) | 8,970 | (4,407) | 2,288 | 2,511 | 15,232 | 9,362 | 21,942 | ||||||||
Goodwill impairment | 254,946 | ||||||||||||||||||
Acquired intangible assets impairment | 8,800 | 83,339 | |||||||||||||||||
Total operating expenses | 197,262 | 190,103 | 186,934 | 172,298 | 176,304 | 165,737 | 182,835 | 171,233 | 746,597 | 696,110 | 1,021,578 | ||||||||
Income (loss) from operations | 112,273 | 143,590 | 120,400 | 97,534 | 94,626 | 129,132 | 207,803 | 93,783 | 473,797 | 525,343 | (62,970) | ||||||||
Non-operating (income) expenses: | |||||||||||||||||||
Interest income | (9,083) | (6,213) | (5,427) | (5,981) | (6,476) | (4,517) | (3,292) | (3,520) | (26,704) | (17,805) | (9,296) | ||||||||
Interest expense | 13,182 | 5,557 | 5,639 | 6,890 | 5,380 | 5,372 | 5,509 | 5,402 | 31,269 | 21,663 | 3,637 | ||||||||
Other (income) expense, net | (2,954) | 3,405 | 176 | 805 | (2,362) | 840 | (1,291) | (115) | 1,431 | (2,927) | (2,251) | ||||||||
Income (loss) before income taxes | 111,128 | 140,841 | 120,012 | 95,820 | 98,084 | 127,437 | 206,877 | 92,016 | 467,801 | 524,412 | (55,060) | ||||||||
Income tax provision (benefit) | (32,662) | 20,863 | 18,975 | 8,846 | 204,007 | 24,017 | 31,901 | 6,795 | 16,022 | 266,720 | (11,639) | ||||||||
Net income (loss) | $ 143,790 | $ 119,978 | $ 101,037 | $ 86,974 | $ (105,923) | $ 103,420 | $ 174,976 | $ 85,221 | $ 451,779 | $ 257,692 | $ (43,421) | ||||||||
Net income (loss) per common share: | |||||||||||||||||||
Basic | $ 0.80 | $ 0.65 | $ 0.53 | $ 0.45 | $ (0.54) | $ 0.52 | $ 0.88 | $ 0.43 | $ 2.41 | $ 1.30 | $ (0.21) | ||||||||
Diluted | 0.79 | 0.63 | 0.52 | 0.43 | (0.54) | 0.52 | 0.87 | 0.42 | $ 2.35 | $ 1.28 | $ (0.21) | ||||||||
Weighted average common shares-basic | 187,672 | 198,069 | 202,578 | ||||||||||||||||
Weighted average common shares-diluted | 192,605 | 201,641 | 202,578 | ||||||||||||||||
Cash dividend declared per common share | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.36 | $ 0.28 | $ 0.24 | ||||||||
Product [Member] | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Total revenues | $ 420,652 | $ 470,994 | $ 434,051 | $ 403,925 | $ 388,282 | $ 412,854 | $ 610,356 | $ 373,204 | $ 1,729,621 | $ 1,784,695 | $ 1,453,248 | ||||||||
Cost of revenues: | |||||||||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 170,064 | 195,339 | 180,777 | 180,958 | 168,672 | 169,661 | 267,752 | 154,883 | 727,138 | 760,967 | 660,056 | ||||||||
Service [Member] | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Total revenues | 98,906 | 95,854 | 92,878 | 83,542 | 91,133 | 90,524 | 86,545 | 83,709 | 371,181 | 351,911 | 300,002 | ||||||||
Cost of revenues: | |||||||||||||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 39,959 | $ 37,816 | $ 38,818 | $ 36,677 | $ 39,813 | $ 38,848 | $ 38,511 | $ 37,014 | $ 153,270 | $ 154,186 | $ 134,586 | ||||||||
[1] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[4] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | ||||||||||||||||||
[5] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | ||||||||||||||||||
[6] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | ||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[8] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | ||||||||||||||||||
[9] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | ||||||||||||||||||
[10] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss) | $ 451,779 | $ 257,692 | $ (43,421) |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustment, net of tax of $0, $0, $0 | (28,442) | 37,840 | (13,162) |
Available-for-sale marketable securities: | |||
Unrealized (losses) gains on marketable securities arising during period, net of tax of $(722), $1,903, $923, respectively | (2,110) | 1,863 | 2,037 |
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $(255), $(297), $(21) respectively | 1,337 | (441) | (683) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | (773) | 1,422 | 1,354 |
Defined benefit pension and post-retirement plans: | |||
Amortization of prior service benefit included in net periodic pension and post-retirement benefit, net of tax $(71), $(154), $(190), respectively | (245) | (272) | (321) |
Prior service benefit arising during period, net of tax of $0, $0, $34, respectively | 59 | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (245) | (272) | (262) |
Other comprehensive (loss) income | (29,460) | 38,990 | (12,070) |
Comprehensive income (loss) | $ 422,319 | $ 296,682 | $ (55,491) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 |
Unrealized (losses) gains on marketable securities arising during period, tax | (722) | 1,903 | 923 |
Reclassification adjustment for losses (gains) included in net income, tax | (21) | (297) | (255) |
Amortization of net prior service (credit) cost included in net periodic pension and post-retirement expense/income, tax | (71) | (154) | (190) |
Prior service credit, tax | $ 0 | $ 0 | $ 34 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | |
Balance at Dec. 31, 2015 | $ 1,965,786 | $ 25,455 | $ 1,480,647 | $ (8,144) | $ 467,828 | |
Balance, Shares at Dec. 31, 2015 | 203,641 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax (in shares) | 2,377 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax | 10,665 | $ 297 | 10,368 | |||
Equity component of convertible debt | 100,836 | 100,836 | ||||
Equity component of convertible notes issuance cost | (2,017) | (2,017) | ||||
Purchase of convertible notes hedges | (100,834) | (100,834) | ||||
Proceeds from issuance of warrants | 67,852 | 67,852 | ||||
Stock-based compensation expense | 30,745 | 30,745 | ||||
Repurchase of common stock | $ (146,331) | $ (855) | (145,476) | |||
Repurchase of common stock (in shares) | 6,800 | (6,841) | ||||
Tax benefit related to stock options and restricted stock units | $ 6,087 | 6,087 | ||||
Cash dividends | (48,639) | (48,639) | ||||
Net income (loss) | (43,421) | (43,421) | ||||
Foreign currency translation adjustment | (13,162) | (13,162) | ||||
Unrealized gains (losses) on marketable securities: | ||||||
Unrealized (losses) gains on marketable securities arising during period, net of tax of $923, 1903, (722) respectively | 2,037 | 2,037 | ||||
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $(255), $(297), $(21) respectively | (683) | (683) | ||||
Amortization of prior service benefit, net of tax of $(190), $(154), $(71) respectively | (321) | (321) | ||||
Reclassification of tax effects resulting from the Tax Reform Act, net of tax of $769 | 1,004 | |||||
Prior service income arising during period, net of tax of $34 | 59 | 59 | ||||
Balance at Dec. 31, 2016 | 1,828,659 | $ 24,897 | 1,593,684 | (20,214) | 230,292 | |
Balance, Shares at Dec. 31, 2016 | 199,177 | |||||
Net income (loss) | [1] | 85,221 | ||||
Balance at Dec. 31, 2016 | 1,828,659 | $ 24,897 | 1,593,684 | (20,214) | 230,292 | |
Balance, Shares at Dec. 31, 2016 | 199,177 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax (in shares) | 2,211 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax | 11,024 | $ 277 | 10,747 | |||
Stock-based compensation expense | 33,982 | 33,982 | ||||
Repurchase of common stock | (200,304) | $ (730) | (199,574) | |||
Repurchase of common stock (in shares) | (5,840) | |||||
Cumulative effect adjustment for prior year tax benefits related to stock options and restricted stock units | 39,081 | 39,081 | ||||
Cash dividends | (55,478) | (55,478) | ||||
Net income (loss) | 257,692 | 257,692 | ||||
Foreign currency translation adjustment | 37,840 | 37,840 | ||||
Unrealized gains (losses) on marketable securities: | ||||||
Unrealized (losses) gains on marketable securities arising during period, net of tax of $923, 1903, (722) respectively | 1,863 | 1,863 | ||||
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $(255), $(297), $(21) respectively | (441) | (441) | ||||
Amortization of prior service benefit, net of tax of $(190), $(154), $(71) respectively | (272) | (272) | ||||
Reclassification of tax effects resulting from the Tax Reform Act, net of tax of $769 | 713 | 713 | ||||
Balance at Dec. 31, 2017 | 1,953,646 | $ 24,444 | 1,638,413 | 18,776 | 272,013 | |
Balance, Shares at Dec. 31, 2017 | 195,548 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax (in shares) | 1,613 | |||||
Issuance of stock to employees under benefit plans, net of shares withheld for payroll tax | 129 | $ 201 | (72) | |||
Stock-based compensation expense | 33,304 | 33,304 | ||||
Repurchase of common stock | (832,356) | $ (2,705) | (829,651) | |||
Repurchase of common stock (in shares) | (21,639) | |||||
Cash dividends | (67,367) | (67,367) | ||||
Net income (loss) | 451,779 | 451,779 | ||||
Foreign currency translation adjustment | (28,442) | (28,442) | ||||
Unrealized gains (losses) on marketable securities: | ||||||
Unrealized (losses) gains on marketable securities arising during period, net of tax of $923, 1903, (722) respectively | (2,110) | (2,110) | ||||
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $(255), $(297), $(21) respectively | 1,337 | 1,337 | ||||
Reclassification of unrealized gains on equity securities, net of tax of $(902) | 0 | (3,125) | 3,125 | |||
Amortization of prior service benefit, net of tax of $(190), $(154), $(71) respectively | (245) | (245) | ||||
Reclassification of tax effects resulting from the Tax Reform Act, net of tax of $769 | 0 | 769 | (769) | |||
Balance at Dec. 31, 2018 | 1,522,354 | $ 21,940 | $ 1,671,645 | $ (13,040) | (158,191) | |
Balance, Shares at Dec. 31, 2018 | 175,522 | |||||
Unrealized gains (losses) on marketable securities: | ||||||
Cumulative effect of changes in accounting principle related to revenue recognition | $ 12,679 | $ 12,679 | ||||
[1] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Issuance of stock to employees under benefit plans, shares withheld for payroll tax | $ 20,025 |
Cumulative effect of changes in accounting principle, net of tax | (1,670) |
Unrealized (losses) gains on marketable securities arising during period, tax | (722) |
Reclassification adjustment for gains included in net income, tax | (21) |
Amortization of prior service (credit) cost included in net periodic pension and post-retirement expense/income, tax | (71) |
Prior service income arising during period, tax | 0 |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings Tax Effect | 769 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |
Reclassification adjustment for gains included in net income, tax | (902) |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings Tax Effect | $ (691) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 451,779 | $ 257,692 | $ (43,421) |
Adjustments to reconcile net income (loss) from operations to net cash provided by operating activities: | |||
Depreciation | 67,415 | 66,122 | 64,782 |
Amortization | 45,809 | 41,953 | 55,227 |
Stock-based compensation | 33,577 | 34,097 | 30,750 |
Deferred taxes | 28,340 | 37,105 | (62,936) |
Provision for excess and obsolete inventory | 11,242 | 8,844 | 17,493 |
Contingent consideration fair value adjustment | 987 | 7,820 | 15,896 |
Losses (gains) on investments | 3,494 | (878) | (1,050) |
Retirement plans actuarial gains | (3,316) | (6,624) | (3,203) |
Property insurance recovery, net | (4,309) | ||
Goodwill impairment | 254,946 | ||
Acquired intangible assets impairment | 8,800 | 83,339 | |
Tax benefit related to employee stock compensation awards | (6,198) | ||
Other | 1,083 | 1,585 | 602 |
Changes in operating assets and liabilities, net of businesses acquired: | |||
Accounts receivable | (17,938) | (80,584) | 18,325 |
Inventories | (29,498) | 44,960 | 34,263 |
Prepayments and other assets | (58,402) | 2,254 | (19,194) |
Accounts payable and other accrued expenses | 13,693 | 43,574 | 6,820 |
Deferred revenue and customer advances | 13,379 | 4,984 | (3,634) |
Retirement plan contributions | (4,334) | (5,902) | (6,044) |
Income taxes | (80,429) | 173,802 | 18,434 |
Net cash provided by operating activities | 476,881 | 626,495 | 455,197 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (114,379) | (105,375) | (85,272) |
Proceeds from government subsidy for property, plant and equipment | 7,920 | ||
Purchases of marketable securities | (918,744) | (1,391,917) | (1,656,267) |
Proceeds from maturities of marketable securities | 1,270,439 | 701,681 | 243,232 |
Proceeds from sales of marketable securities | 846,122 | 527,746 | 852,794 |
Proceeds from insurance | 1,126 | 5,064 | 5,051 |
Acquisition of businesses, net of cash acquired | (169,474) | ||
Net cash provided by (used for) investing activities | 923,010 | (262,801) | (640,462) |
Cash flows from financing activities: | |||
Issuance of common stock under stock purchase and stock option plans | 20,973 | 24,493 | 20,473 |
Repurchase of common stock | (823,478) | (200,304) | (146,331) |
Dividend payments | (67,322) | (55,447) | (48,619) |
Payments related to net settlement of employee stock compensation awards | (20,023) | (12,881) | (9,398) |
Payments of contingent consideration | (13,571) | (1,050) | (11,697) |
Proceeds from issuance of convertible notes, net of issuance costs | 450,800 | ||
Purchase of convertible note hedges | (100,834) | ||
Proceeds from issuance of warrants | 67,852 | ||
Tax benefit related to employee stock compensation awards | 6,198 | ||
Net cash (used for) provided by financing activities | (903,421) | (245,189) | 228,444 |
Effects of exchange rate changes on cash and cash equivalents | 439 | 3,454 | |
Increase in cash and cash equivalents | 496,909 | 121,959 | 43,179 |
Cash and cash equivalents at beginning of year | 429,843 | 307,884 | 264,705 |
Cash and cash equivalents at end of year | 926,752 | 429,843 | 307,884 |
Cash paid for: | |||
Interest | 6,205 | 6,446 | 446 |
Income taxes | $ 72,811 | $ 53,775 | $ 40,424 |
The Company
The Company | 12 Months Ended |
Dec. 31, 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. On June 11, 2015, Teradyne acquired Universal Robots A/S (“Universal Robots”) for approximately $284 million of cash plus up to an additional $65 million of cash if certain performance targets are met extending through 2018. Universal Robots is the leading supplier of collaborative robots which are low-cost, easy-to-deploy and simple-to-program robots that work side by side with production workers. Universal Robots is a separate operating and reportable segment, Industrial Automation. On February 26, 2018, Teradyne acquired Energid Technologies Corporation (“Energid”) for a total purchase price of approximately $28 On April 25, 2018, Teradyne acquired Mobile Industrial Robots ApS (“MiR”), a Danish limited liability company, for a total purchase price of approximately $198 $145 million of cash paid and $53 $115 Universal Robots, MiR and Energid are included in Teradyne’s Industrial Automation segment. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies | B. ACCOUNTING POLICIES The consolidated financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions are eliminated. Certain prior years’ amounts were reclassified to conform to the current year presentation. Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going Revenue Recognition Revenue from Contracts with Customers Teradyne adopted Accounting Standards Codification (“ASC”) 606, “ Revenue from Contracts with Customers” “Revenue Recognition,” 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 customers in which a customer may purchase a combination of goods and 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 $2,088.8 million for the twelve months ended December 31, 2018. For the twelve months ended December 31, 2018, Teradyne also recognized $12.0 million 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 Year Ended December 31, 2018 Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Other Consolidated System on a Chip Memory Defense/ Aerospace Storage Test Production Board Test Universal Robots Mobile Industrial Robots Energid (in thousands) Americas Point in time $ 43,398 $ 14,579 $ 59,246 $ 767 $ 9,082 $ 68,289 $ 7,326 $ 543 $ 17,730 $ (1,205 ) $ 219,755 Over time 35,100 2,774 24,577 — 3,091 649 — 997 1,436 — 68,624 Europe, Middle East and Africa Point in time 50,988 9,726 3,056 — 16,733 105,776 10,839 — 3,821 — 200,939 Over time 21,584 1,125 2,124 — 6,467 1,000 — 1,591 1,147 — 35,038 Asia Pacific Point in time 916,107 235,061 2,769 58,004 17,761 57,830 5,950 10 100,985 — 1,394,477 Over time 140,887 10,203 965 7,877 3,221 551 — 101 6,127 — 169,932 Lease revenue 10,885 — — — 392 — — — 760 — 12,037 Total $ 1,218,949 $ 273,468 $ 92,737 $ 66,648 $ 56,747 $ 234,095 $ 24,115 $ 3,242 $ 132,006 $ (1,205 ) $ 2,100,802 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 warranty. This warranty is not considered a distinct performance obligation because it does not obligate Teradyne to provide a separate service to the customer and it cannot be purchased separately. Teradyne’s hardware is recognized at a point in time upon transfer of control to the customer. 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. December 31, 2018 January 1, 2018 (as adjusted) Increase (in thousands) Deferred revenue and customer advances $ 77,711 $ 76,638 $ 1,073 Long-term deferred revenue and customer advances 32,750 20,848 11,902 The amount of revenue recognized during the twelve months ended December 31 , 2018 that was previously included within the deferred revenue and customer advances balance was 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: December 31, 2018 As Reported Adjustments to Recognize under Legacy GAAP Legacy GAAP (in thousands, except per share amount) Assets Accounts receivable, less allowance for doubtful accounts $ 291,267 $ (37,348 ) $ 253,919 Inventories, net 153,541 10,759 164,300 Deferred tax assets 70,848 (3,874 ) 66,974 Liabilities Deferred revenue and customer advances $ 77,711 $ (4,118 ) $ 73,593 Income taxes payable 36,185 (4,495 ) 31,690 Long-term deferred revenue and customer advances 32,750 (10,303 ) 22,447 Shareholders’ equity Accumulated deficit $ (158,191 ) $ (11,547 ) $ (169,738 ) Condensed Consolidated Stateme nt of Operation: For the Year Ended December 31, 2018 As Reported Adjustments to Recognize under Legacy GAAP Legacy GAAP (in thousands, except per share amount) Total revenues $ 2,100,802 $ (39,184 ) $ 2,061,618 Total cost of revenues 880,408 (10,760 ) 869,648 Income tax provision 16,022 (4,197 ) 11,825 Net income 451,779 (24,227 ) 427,552 Net income per common share: Basic $ 2.41 $ (0.13 ) $ 2.28 Diluted $ 2.35 $ (0.13 ) $ 2.22 As of December 31, 2018 and 2017, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2018 2017 (in thousands) Maintenance and training $ 58,362 $ 57,256 Extended warranty 27,422 24,438 Customer advances, undelivered elements and other 24,677 32,047 Total deferred revenue and customer advances $ 110,461 $ 113,741 Product Warranty When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances: Amount (in thousands) Balance at December 31, 2015 $ 30,024 Deferral of new extended warranty revenue 19,909 Recognition of extended warranty deferred revenue (21,733 ) Balance at December 31, 2016 28,200 Deferral of new extended warranty revenue 20,513 Recognition of extended warranty deferred revenue (24,275 ) Balance at December 31, 2017 24,438 Deferral of new extended warranty revenue 23,753 Recognition of extended warranty deferred revenue (20,769 ) Balance at December 31, 2018 $ 27,422 Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The volatility of the industries that Teradyne serves can cause certain of its customers to experience shortages of cash flows, which can impact their ability to make required payments. Teradyne maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are written off against the allowance when it is determined the receivable will not be recovered. Teradyne sells certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. Teradyne accounts for these transactions as sales of receivables and presents cash proceeds as a cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $52.2 million and $5.4 million during 2018 and 2017, respectively. Factoring fees for the sales of receivables were recorded in interest expense and were not material. Inventories Inventories are stated at the lower of cost (first-in, first-out Investments Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, Investments—Debt and Equity Securities 320-10 available-for-sale held-to-maturity • 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 twelve months ended December 31, 2018 and 2017. As defined in ASC 820-10, “ Fair Value Measurements and Disclosures, 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 ’s own data. In accordance with ASC 820-10, Teradyne measures its debt and equity investments at fair value. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. Financial Assets and Financial Liabilities In January 2016 , the Financial Accounting Standards Board (“FASB”) issued ASU 2016 - 01 , “Financial Instruments—Overall (Subtopic 825 - 10) : Recognition and Measurement of Financial Assets and Financial Liabilities.” Teradyne adopted the new accounting guidance in the first quarter of 2018 using the modified retrospective approach. This guidance requires that changes in fair value of equity securities be accounted for directly in earnings. Previously, the changes in fair value were recorded in accumulated other comprehensive income on the balance sheet. Teradyne continues to record realized gains in interest income and realized losses in interest expense. The adoption of this new accounting guidance increased the January 1 , 2018 retained earnings balance by $3.1 Prepayments Prepayments consist of the following and are included in prepayments and other current assets on the balance sheet: 2018 2017 (in thousands) Contract manufacturer and supplier prepayments $ 131,642 $ 82,503 Prepaid taxes 9,646 5,039 Prepaid maintenance and other services 8,487 8,189 Other prepayments 12,744 12,386 Total prepayments $ 162,519 $ 108,117 Retirement and Postretirement Plans Teradyne recogn izes net ac tuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. Retirement Benefits In March 2017 , the FA SB issu ed ASU 2017 - 07 , “ Compensation—Retirement Benefits (Topic 715) : Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost 2018 . This guidance requires the service cost component of net benefit costs to be reported in the same line item in the consolidated statement of operations as other employee compensation costs. The non-service components of net benefit costs such as interest cost, expected return on assets, amortization of prior service cost, and actuarial gains or losses, are required to be reported separately outside of income or loss from operations. Following the adoption of this guidance, Teradyne continues to record the service cost component in the same line item as other employee compensation costs and the non-service components of net benefit costs such as interest cost, expected return on assets, amortization of prior service cost, and actuarial gains or losses are reported within other (income) expense, net. In the twelve months ended December 31 , 2017 and 2016 , the retrospective adoption of this standard decreased income from operations by $ 5.0 million and $ 3.0 million, respectively, due to the removal of net actuarial pension gains and increased non-operating (income) expense by the same amount with no impact to net income. Goodwill, Intangible and Long-Lived Assets Teradyne accounts for go odwill an d intangible assets in accordance with ASC 350 - 10 , Intangibles-Goodwill and Other. 31 , on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. In accordance with ASC 350 - 10 , more likely than not two-step more likely than not two-step In accordance with ASC 360 - 10 , Impairmen t or Disposal of Long-Lived Assets, Property, Plant and Equipment Property, plant and equipment are stated at cos t and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years Building improvements 5 to 10 years Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 years Machinery and equipment 3 to 5 years Software 3 to 5 years Test systems manufactured internally are used by Te radyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year 31 , 2018 , 2017 , and 2016 was $3.8 million, $3.6 million, and $11.4 million, respectively. Engineering and Development Costs Teradyne’s products are highly technical in nature and require a larg e and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees including non-recurring Stock Compensation Plans and Employee Stock Purchase Plan Stock-based compensation expense is based on the grant-date fair val ue e 718 - 10 , Compensation-Stock Compensation In March 2016 , the FASB issued ASU 2016 - 09 , “Compensation-Stoc k C 718) : Improvements to Employee Share-Based Payment Accounting.” 2017 . This ASU changes how Teradyne accounts for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statements of cash flows. Adoption of this ASU required recognition of a cumulative effect adjustment to reta million was recorded in the first quarter of 2017 as an increase to retained earnings and deferred tax assets. This ASU also required a change in how Teradyne recognizes the excess tax benefits or tax defic 2016 - 09 , paid-in 2016 - 09 , 2017 , these excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations. ASU 2016 - 09 requires companies to adopt the amendment related to accounting for excess tax ben efit 2017 , Teradyne recognized a discrete tax benefit of $ 6.3 million related to net excess tax benefit. In addition, under ASU 2016 - 09 , as Upon adoption of ASU 2016 - 09 , or Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and p erf Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Income Taxes Deferred tax assets and liabilities are determined based on differences between financial re porti 740 , “Accounting for Income Taxes.” Advertising Costs Teradyne expenses all advertising costs as incurred. Adve million, $9.1 million, and $6.4 million in 2018 , 2017 , and 2016 , respectively. Translation of Non-U.S. The functional currency for all subsidiaries is the U.S. dollar, except for the Uni ver Net foreign exchange gains and losses resulting from remeasurement are included in other (incom e) e 31 , 2018 , 2017 , and 2016 , (gains) losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $(2.4) million, $2.9 million, and $(8.0) million, respectively. These amounts do not reflect the corresponding (gains) losses from foreign exchange con trac Net Income (Loss) per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the w With respect to its convertible debt issued in 2016 , Teradyne has determined that it has the abili ty a Teradyne is accounting for the conversion spread using the treasury stock method. Comprehensive Income (Loss) Comprehensive income (loss) includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities and foreign currency translation adjustment. Prior to 2018, comprehensive income (loss) included unrealized gains and losses on investments in equity marketable securities. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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.” |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions | D. ACQUISITIONS Business Mobile Industrial Robots On April 25, 2018, Teradyne acquired all the issued and outstanding shares of 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 purchase price of $197.8 million included $145.2 million of cash paid and $52.6 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 December 31, 2018, the maximum amount of contingent consideration that could be paid is $115 The valuation of the contingent consideration is dependent on the following assumptions: forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. These assumptions were estimated based on a review of the historical and projected results. 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. MiR’s products will help expand the Industrial Automation segment, which is a key component of our growth strategy. The allocation of the 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 $ 136.0 million was allocated to goodwill, which is not deductible for tax purposes. MiR’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition. The following table represents the final allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 135,976 Intangible assets 80,670 Tangible assets acquired and liabilities assumed: Current assets 6,039 Non-current assets 1,336 Accounts payable and current liabilities (7,336 ) Long-term deferred tax liabilities (18,007 ) Other long-term liabilities (900 ) Total purchase price $ 197,778 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 $ 58,900 7.0 Trademarks and tradenames 13,240 11.0 Customer relationships 8,500 2.5 Backlog 30 0.2 Total intangible assets $ 80,670 7.2 For the period 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 Year Ended December 31, 2018 December 31, 2017 (in thousands, except per share amounts) Revenues $ 2,107,600 $ 2,148,320 Net income $ 450,559 $ 243,399 Net income per common share: Basic $ 2.40 $ 1.23 Diluted $ 2.34 $ 1.21 Pro forma results fo non-recurring Pro forma results for the year ende d non-recurring Energid Technologies Corporation On February 26, 2018, Teradyne acquired a ll of the issued and outstanding shares of 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 which is deductible for tax purposes , 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 | 12 Months Ended |
Dec. 31, 2018 | |
Inventories | E. INVENTORIES Inventories, net consisted of the following at December 31, 2018 and 2017: 2018 2017 (in thousands) Raw material $ 89,365 $ 62,668 Work-in-process 31,014 19,464 Finished goods 33,162 25,393 $ 153,541 $ 107,525 Inventory reserves for the years ended December 31, 2018 and 2017 were $100.8 million and $102.9 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment | F. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consisted of the following at December 31, 2018 and 2017: 2018 2017 (in thousands) Land $ 16,561 $ 16,561 Buildings 105,935 98,369 Machinery and equipment 689,770 647,961 Furniture and fixtures, and software 90,384 88,539 Leasehold improvements 52,536 49,540 Construction in progress 6,276 13,522 961,462 914,492 Less: accumulated depreciation 681,641 646,045 $ 279,821 $ 268,447 Depreciation of property, plant and equipment for the years ended December 31, 2018, 2017, and 2016 was $67.4 million, $66.1 million, and $64.8 million, respectively. As of December 31, 2018 and 2017, the gross book value included in machinery and equipment for internally manufactured test systems being leased by customers was $5.5 million and $18.1 million, respectively. As of December 31, 2018 and 2017, the accumulated depreciation on these test systems was $5.2 million and $13.7 million, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments | G. 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): Teradyne’s available-for-sale debt securities are classified as Level 2 and equity securities are classified as Level 1. Contingent consideration is classified as Level 3. The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities. During the years ended December 31, 2018 and 2017, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in 2018, 2017, and 2016 were $4.0 million, $1.1 million, and $1.6 million, respectively. Realized losses recorded in 2018, 2017, and 2016 were $1.6 million, $0.3 million, and $0.5 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 Unrealized gains related to equity securities are included in interest income and unrealized losses are included in interest expense. Unrealized losses related to equity securities recognized in 2018 were $6.0 million. The cost of securities sold is based on the specific identification method. The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2018 and 2017: December 31, 2018 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 312,512 $ — $ — $ 312,512 Cash equivalents 253,525 360,715 — 614,240 Available for sale securities: U.S. Treasury securities — 109,721 — 109,721 Commercial paper — 86,117 — 86,117 Corporate debt securities — 40,020 — 40,020 U.S. government agency securities — 9,611 — 9,611 Certificates of deposit and time deposits — 7,604 — 7,604 Debt mutual funds 3,187 — — 3,187 Non-U.S. — 376 — 376 Equity securities: Mutual funds 21,191 — — 21,191 590,415 614,164 — 1,204,579 Derivative assets — 79 — 79 Total $ 590,415 $ 614,243 $ — $ 1,204,658 Liabilities Contingent consideration $ — $ — $ 70,543 $ 70,543 Derivative liabilities — 514 — 514 Total $ — $ 514 $ 70,543 $ 71,057 Reported as follows: Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents $ 566,037 $ 360,715 $ — $ 926,752 Marketable securities — 190,096 — 190,096 Long-term marketable securities 24,378 63,353 — 87,731 Prepayments — 79 — 79 Total $ 590,415 $ 614,243 $ — $ 1,204,658 Liabilities Other current liabilities $ — $ 514 $ — $ 514 Contingent consideration — — 34,865 34,865 Long-term contingent consideration — — 35,678 35,678 Total $ — $ 514 $ 70,543 $ 71,057 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 $ 427,720 $ 1,476,417 $ — $ 1,904,137 Liabilities Other current liabilities $ — $ 446 $ — $ 446 Contingent consideration — — 24,497 24,497 Long-term contingent consideration — — 20,605 20,605 $ — $ 446 $ 45,102 $ 45,548 Changes in the fair value of Level 3 contingent consideration for the years ended December 31, 2018 and 2017 were as follows: Contingent Consideration (in thousands) Balance at December 31, 2016 $ 38,332 Payments (1) (1,050 ) Fair value adjustment (2) 7,820 Balance at December 31, 2017 45,102 Acquisition of MiR 52,547 Foreign currency impact (3,540 ) Payments (3) (24,553 ) Fair value adjustment (4) 987 Balance at December 31, 2018 $ 70,543 (1) During the year ended December 31, 2017, Teradyne paid $1.1 million of contingent consideration for the earn-out in connection with the acquisition of Avionics Interface Technologies, LLC (“AIT”). (2) During the year ended December 31, 2017, the fair value of contingent consideration for the earn-out (3) During the year ended December 31, 2018, Teradyne paid $24.6 million of contingent consideration for the earn-out (4) During the year ended December 31, 2018, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was increased by $ 17.7 16.7 The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instrument: Liability December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Weighted Average (in thousands) Contingent consideration (MiR) $ 66,672 (1) Monte Carlo simulation Revenue volatility 18.0 % Discount rate 1.1 % Contingent consideration (Universal Robots) $ 3,871 (1) (1) Contingent consideration related to MiR and acquisitions of $31.0 million and $3.9 million, respectively, is expected to be paid in March 2019. As of December 31, 2018, the significant unobservable inputs used in the Monte Carlo simulation to fair value the MiR contingent consideration include forecasted revenues, revenue volatility, earnings before interest and taxes and discount rate. Increases or decreases in the inputs would result in a higher or lower fair value measurement. As of December 31, 2018, the maximum amount of contingent consideration that could be paid in connection with the acquisition of MiR is $115 million. The earn-out The carrying amounts and fair values of Teradyne’s financial instruments at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 926,752 $ 926,752 $ 429,843 $ 429,843 Marketable securities 277,827 277,827 1,473,905 1,473,905 Derivative assets 79 79 389 389 Liabilities Contingent consideration 70,543 70,543 45,102 45,102 Derivative liabilities 514 514 446 446 Convertible debt (1) 379,981 547,113 365,987 659,525 (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 amount due to the short term nature of these instruments. The following tables summarize the composition of available-for-sale marketable securities at December 31, 2018 and 2017: December 31, 2018 Available-for-Sale Fair Market Cost Unrealized Gain Unrealized (Loss) Fair Market Value Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 110,969 $ 112 $ (1,360 ) $ 109,721 $ 75,040 Commercial paper 86,130 13 (26 ) 86,117 85,094 Corporate debt securities 41,133 432 (1,545 ) 40,020 24,767 U.S. government agency securities 9,646 1 (36 ) 9,611 7,077 Certificates of deposit and time deposits 7,604 — — 7,604 — Debt mutual funds 3,153 34 — 3,187 — Non-U.S. 376 — — 376 — $ 259,011 $ 592 $ (2,967 ) $ 256,636 $ 191,978 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 190,100 $ 88 $ (92 ) $ 190,096 $ 140,262 Long-term marketable securities 68,911 504 (2,875 ) 66,540 51,716 $ 259,011 $ 592 $ (2,967 ) $ 256,636 $ 191,978 December 31, 2017 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 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 10,727 Non-U.S. 582 4 — 586 — $ 1,470,729 $ 6,582 $ (3,406 ) $ 1,473,905 $ 1,350,896 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 62,052 $ 1,470,729 $ 6,582 $ (3,406 ) $ 1,473,905 $ 1,350,896 As of December 31, 2018, the fair market value of investments with unrealized losses totaled $192.0 million. Of this value, $28.5 million had unrealized losses of $1.6 million greater than one year and $163.5 million had unrealized losses of $1.4 million for less than one year. 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 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 December 31, 2018 and 2017, were temporary. The contractual maturities of investments in available-for-sale marketable securities held at December 31, 2018 were as follows: Cost Fair Value (in thousands) Due within one year $ 190,100 $ 190,096 Due after 1 year through 5 years 9,199 9,144 Due after 5 years through 10 years 14,081 13,405 Due after 10 years 42,478 40,804 Total $ 255,858 $ 253,449 Contractual maturities of investments is available-for-sale marketable securities held at December 31, 2018 exclude $ 3.2 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 the monetary assets and liabilities denominated in foreign currencies. At December 31, 2018 and 2017, Teradyne had the following contracts to buy and sell non-U.S. non-U.S. December 31, 2018 December 31, 2017 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (35.0 ) $ — $ (35.0 ) $ (35.7 ) $ — $ (35.7 ) Taiwan Dollar (11.2 ) — (11.2 ) (9.9 ) — (9.9 ) Korean Won (9.6 ) — (9.6 ) (8.9 ) — (8.9 ) British Pound Sterling (1.4 ) — (1.4 ) (1.4 ) — (1.4 ) Euro — 82.2 82.2 — 27.4 27.4 Singapore Dollar — 15.7 15.7 — 33.5 33.5 Philippine Peso — 5.2 5.2 — — — Chinese Yuan — 2.8 2.8 — — — Total $ (57.2 ) $ 105.9 $ 48.7 $ (55.9 ) $ 60.9 $ 5.0 The fair value of the outstanding contracts was a loss of $0.4 million and $0.1 million, respectively, at December 31, 2018 and 2017. Gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. The following table summarizes the fair value of derivative instruments as of December 31, 2018 and 2017: Balance Sheet Location December 31, 2018 December 31, 2017 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Prepayments $ 79 $ 389 Foreign exchange contracts Other current liabilities (514 ) (446 ) Total derivatives $ (435 ) $ (57 ) The following table summarizes the effect of derivative instruments in the statements of operations recognized for the years ended December 31, 2018, 2017, and 2016. Location of (Gains) Losses Recognized in Statement of Operations 2018 2017 2016 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 7,257 $ (1,133 ) $ 8,671 (1) The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. (2) For the years ended December 31, 2018 and 2016, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.4 (3) For the year ended December 31, 2017, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.9 million. See Note H: “Debt” regarding derivatives related to the convertible senior notes. Concentration of Credit Risk Financial instruments which potentially subject Teradyne to concentrations of credit risk consist principally of cash equivalents, marketable securities, forward currency contracts and accounts receivable. Teradyne’s cash equivalents consist primarily of money market funds invested in U.S. Treasuries and government agencies. Teradyne’s fixed income available-for-sale |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt | H. DEBT Convertible Senior Notes On December 12, 2016, Teradyne completed a private offering of $460.0 million aggregate principal amount of 1.25% convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately $450.8 million, $33.0 million of which was used to pay the net cost of the convertible note hedge transactions and $50.1 million of which was used to repurchase 2.0 million shares of Teradyne’s common stock under its existing stock repurchase program from purchasers of the Notes in privately negotiated transactions effected through one of the initial purchasers or its affiliates conducted concurrently with the pricing of the Note offering. The Notes will mature on December 15, 2023 June 15, 2017 September 15, 2023 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 $31.70. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 14.5 million shares of Teradyne’s common stock. 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 (or, at its election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions cover, subject to customary anti-dilution adjustments, approximately 14.5 million shares of common stock. As of December 31, 2018, the strike price of the warrants was approximately $39.78 per share. The strike price is subject to adjustment under certain circumstances. The Warrant Transactions could have a dilutive effect to Teradyne’s common stock to the extent that the market price per share of Teradyne’s common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. 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 Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 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 considered the guidance of ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” and concluded that the convertible note hedge is both indexed to Teradyne’s stock and should be classified in stockholders’ equity in its statements of financial position. 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 option contract, the convertible note hedge is considered indexed to Teradyne’s stock. Teradyne assessed whether the convertible note hedge should be classified as equity under ASC 815-40. In the Note Hedge Transactions contract the settlement terms permit net cash settlement or net share settlement, at the option of Teradyne. Therefore, the criteria as set forth in ASC 815-40 were evaluated by Teradyne. In reviewing the criteria, Teradyne noted the following: (1) the convertible note hedge does not require Teradyne to issue shares; (2) there is no requirement to net cash settle the convertible note hedge for failure to make timely filings with the SEC; (3) in the case of termination, the convertible note hedge is settled in the same consideration as the holders of the underlying stock; (4) the counterparty does not have rights that rank higher than those of a shareholder of the stock underlying the convertible note hedge; and (5) there is no requirement to post collateral. Based on its analysis of those criteria, Teradyne concluded that the convertible note hedge should be recorded in equity and no further adjustment should be made in future periods to adjust the value of the convertible note hedge. Teradyne analyzed the Warrant Transactions under ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” and other relevant literature, and determined that it met the criteria for classification as an equity transaction and is considered indexed to Teradyne’s stock. As a result, Teradyne recorded the proceeds from the warrants as an increase to additional paid-in capital. Teradyne does not recognize subsequent changes in fair value of the warrants in its financial statements. The provisions of ASC 470-20, “ Debt with Conversion and Other Options, ” are applicable to the Notes. ASC 470-20 requires Teradyne to separately account for the liability (debt) and equity (conversion feature) components of the Notes in a manner that reflects Teradyne’s nonconvertible debt borrowing rate at the date of issuance when interest cost is recognized in subsequent periods. Teradyne allocated $100.8 million of the $460.0 million principal amount of the Notes to the equity component, which represents a discount to the debt and will be amortized to interest expense using the effective interest method through December 2023. Accordingly, 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 December 31, 2018, debt issuance costs were approximately $5.3 million. The below tables represents the key components of Teradyne’s convertible senior notes: December 31, 2018 December 31, 2017 (in thousands) Debt principal $ 460,000 $ 460,000 Unamortized discount 80,019 94,013 Net carrying amount of convertible debt $ 379,981 $ 365,987 For the year ended December 31, 2018 December 31, 2017 (in thousands) Contractual interest expense on the coupon $ 5,750 $ 5,734 Amortization of the discount component and debt issue fees recognized as interest expense 13,995 13,318 Total interest expense on the convertible debt $ 19,745 $ 19,052 As of December 31, 2018, the unamortized discount was $80.0 million, which will be amortized over five years using the effective interest rate method. The carrying amount of the equity component was $100.8 million. As of December 31, 2018, the conversion price was approximately $31.70 per share and if converted the value of the notes was $455.4 million. 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 March 1, 2019, 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 December 31, 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive (Loss) Income | I. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Changes in accumulated other comprehensive (loss) income, which is presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Balance at December 31, 2016, net of tax of $0, $209, $(778) $ (21,921 ) $ (60 ) $ 1,767 $ (20,214 ) Other comprehensive income before reclassifications, net of tax of $0, $1,903, $0 37,840 1,863 — 39,703 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(297), $(154) — (441 ) (272 ) (713 ) Net current period other comprehensive income, net of tax of $0, $1,606, $(154) 37,840 1,422 (272 ) 38,990 Balance at December 31, 2017, net of tax of $0, $1,815, $(932) 15,919 1,362 1,495 18,776 Other comprehensive loss before reclassifications, net of tax of $0, $(722), $0 (28,442 ) (2,110 ) — (30,552 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(21), $(71) — 1,337 (245 ) 1,092 Net current period other comprehensive loss, net of tax of $0, $(743), $(71) (28,442 ) (773 ) (245 ) (29,460 ) Reclassification of tax effects resulting from the Tax Reform Act, net of tax of $0, $(691), $(78), respectively (a) — 691 78 769 Reclassification of unrealized gains on equity securities, net of tax of $0, $(902), $0, respectively, (b) — (3,125 ) — (3,125 ) Balance at December 31, 2018, net of tax of $0, $(521), $(1,081) $ (12,523 ) $ (1,845 ) $ 1,328 $ (13,040 ) (a) In the year ended December 31, 2018, Teradyne early adopted ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” As a result, the stranded tax effects resulting from the Tax Reform Act enacted in December 2017 were reclassified from accumulated other comprehensive income to retained earnings. (b) In the year ended December 31, 2018, Teradyne adopted ASU 2016-01, “ Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities .” See Note B: “Accounting Policies.” Reclassifications out of accumulated other comprehensive income to the statements of operations for the years ended December 31, 2018, 2017, and 2016 were as follows: Details about Accumulated Components For the year ended Affected Line Item in the Statements of Operations December 31, 2018 December 31, 2017 December 31, 2016 (in thousands) Available-for-sale marketable securities Unrealized (losses) gains, net of tax of $21, $297, $255 $ (1,337 ) $ 441 $ 683 Interest income (expense) Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $71, $154, $190 245 272 321 (a) Total reclassifications, net of tax of $92, $451, $445 $ (1,092 ) $ 713 $ 1,004 Net income (a) The amortization of prior service credit is included in the computation of net periodic pension cost and postretirement benefit; see Note N: “Retirement Plans.” |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets | J. GOODWILL AND INTANGIBLE ASSETS Goodwill Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, Intangibles—Goodwill and Other, Teradyne has the option to perform a qualitative assessment (“Step zero”) to determine whether it is more likely than not two-step more likely than not two-step two-step In the second quarter of 2016, the Wireless Test reporting unit (which is Teradyne’s Wireless Test operating and reportable segment) reduced headcount by 11% as a result of a sharp decline in projected demand attributable to an estimated smaller future wireless test market. The decrease in projected demand was due to lower forecasted buying from Teradyne’s largest Wireless Test segment customer (who has contributed between 51% and 73% of annual Wireless Test sales since the LitePoint acquisition in 2011 through 2015) as a result of the customer’s numerous operational efficiencies; slower smartphone growth rates; and a slowdown of new wireless technology adoption. Teradyne considered the headcount reduction and sharp decline in projected demand to be a triggering event for an interim goodwill impairment test. Teradyne allocated the fair value of the Wireless Test reporting unit to all of its assets and liabilities (including unrecognized intangible assets). The net book value of raw materials inventory was estimated as an approximation of current replacement costs. The fair value of finished goods inventory was estimated at the present value of selling price less direct selling costs and profit on the selling effort. The selling price used in the inventory fair values was based upon the product gross margins included in Teradyne’s forecast. The fair value of the deferred revenue liability was estimated by assessing the costs required to service the obligation plus a reasonable profit margin. The fair value for personal property assets, which consisted of furniture and fixtures, machinery and equipment, computer equipment, software and leasehold improvements, was estimated using the replacement cost approach, which approximated carrying value. The fair value of intangible assets was estimated using the income approach and, in particular, developed technology and trademarks/trade names were valued using the relief-from-royalty method and customer relationships and customer backlog were valued using the discounted cash flow method. Royalty rates were estimated using rates applicable to wireless testing equipment and other similar technologies. Based upon this allocation, Teradyne determined that the Wireless Test reporting unit goodwill is valued at $8.0 million and recorded an impairment loss of $254.9 million in the second quarter of 2016. In the fourth quarter of 2018, Teradyne performed the annual goodwill impairment test. Teradyne completed step one of the two-step In the fourth quarter of 2017, Teradyne performed the annual goodwill impairment test. Teradyne completed step one of the two-step In the fourth quarter of 2016, Teradyne performed the annual goodwill impairment test. Teradyne completed step one of the two-step The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2018 and 2017 are as follows: Industrial Automation System Test Wireless Test Semiconductor Test Total (in thousands) Balance at December 31, 2016: Goodwill $ 204,851 $ 158,699 $ 361,819 $ 260,540 $ 985,909 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) 204,851 10,516 7,976 — 223,343 Foreign currency translation adjustment 28,668 — — — 28,668 Balance at December 31, 2017: Goodwill 233,519 158,699 361,819 260,540 1,014,577 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) 233,519 10,516 7,976 — 252,011 MiR acquisition 135,976 — — — 135,976 Energid acquisition 14,394 — — — 14,394 Foreign currency translation adjustment (20,531 ) — — — (20,531 ) Balance at December 31, 2018: Goodwill 363,358 158,699 361,819 260,540 1,144,416 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) $ 363,358 $ 10,516 $ 7,976 $ — $ 381,850 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. As a result of the Wireless Test segment goodwill impairment review in the second quarter of 2016, Teradyne performed an impairment test of the Wireless Test segment’s intangible and long-lived assets. The impairment test is based on a comparison of the estimated undiscounted cash flows to the carrying value of the asset group. If undiscounted cash flows for the asset group are less than the carrying amount, the asset group is written down to its estimated fair value based on a discounted cash flow analysis. The cash flow estimates used to determine the impairment contain management’s best estimates using appropriate assumptions and projections at that time. The fair value of intangible assets was estimated using the income approach and, in particular, developed technology and trademarks/trade names were valued using the relief-from-royalty method and customer relationships were valued using the discounted cash flow method. Royalty rates were estimated using rates applicable to wireless testing equipment and other similar technologies. As a result of the analysis, Teradyne recorded an $83.3 million impairment charge in the second quarter of 2016 in acquired intangible assets impairment on the statements of operations, resulting in a remaining intangible assets balance of $2.2 million at December 31, 2018 for the Wireless Test segment. There were no events or circumstances indicating that the carrying value of intangible and long-lived assets may not be recoverable in 2018 and 2017. Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: December 31, 2018 Gross Carryin Amount (1)(2) Accumulated Amortization (2) Foreign Currency Translation Adjustment Net Carrying Amount (in thousan ds) Developed technology $ 336,308 $ (252,080 ) $ (4,079 ) $ 80,149 Customer relationships 97,153 (83,448 ) (340 ) 13,365 Tradenames and trademarks 64,420 (31,653 ) (799 ) 31,968 Non-compete agreement 320 (320 ) — — Backlog 30 (30 ) — — Total intangible assets $ 498,231 $ (367,531 ) $ (5,218 ) $ 125,482 December 31, 2017 Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment 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 agreement 320 (260 ) — 60 Total intangible assets $ 414,038 $ (337,155 ) $ 2,205 $ 79,088 (1) Includes intangible assets acquired in 2018, $80.7 million from the MiR acquisition and $12.3 million from the Energid acquisition. (2) In 2018, $8.8 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. Aggregate intangible assets amortization expense for the years ended December 31, 2018, 2017, and 2016 was $39.2 million, $30.5 million, and $52.6 million, respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2019 $ 38,496 2020 24,186 2021 13,945 2022 13,052 2023 12,785 Thereafter 23,018 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies | K. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of December 31, 2018, Teradyne had entered into non-cancelable Commitments Teradyne leases certain of its office buildings and other facilities under various operating lease arrangements that include renewal options and escalation clauses for adjusting rent payments to reflect changes in price indices. Rental expense for leases with fixed escalation clauses is recognized on a straight line basis over the lease term. Rental expense for the years ended December 31, 2018, 2017, and 2016 was $19.3 million, $20.2 million, and $19.1 million, respectively. The following table reflects Teradyne’s non-cancelable Non-cancelable Lease Commitments (in thousands) 2019 $ 19,570 2020 18,293 2021 13,578 2022 9,693 2023 5,449 Beyond 2024 9,472 Total $ 76,055 Legal Claims Teradyne is subject to legal proceedings, claims and investigations that arise in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations. Guarantees and Indemnification Obligations Teradyne provides indemnification, to the extent permitted by law, to its officers, directors, employees and agents for liabilities arising from certain events or occurrences while the officer, director, employee, or agent, is or was serving, at Teradyne’s request in such capacity. Teradyne has entered into indemnification agreements with certain of its officers and directors. With respect to acquisitions, Teradyne provides indemnifications to or assumes indemnification obligations for the current and former directors, officers and employees of the acquired companies in accordance with the acquired companies’ by-laws Teradyne enters into agreements in the ordinary course of business with customers, resellers, distributors, integrators and suppliers. Most of these agreements require Teradyne to defend and/or indemnify the other party against intellectual property infringement claims brought by a third party with respect to Teradyne’s products. From time to time, Teradyne also indemnifies customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, breach of confidentiality obligations and environmental claims relating to the use of Teradyne’s products and services or resulting from the acts or omissions of Teradyne, its employees, authorized agents or subcontractors. On occasion, Teradyne has also provided guarantees to customers regarding the delivery and performance of its products in addition to the warranty described below. As a matter of ordinary business course, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a one-year In addition, in the ordinary course of business, Teradyne provides minimum purchase guarantees to certain vendors to ensure continuity of supply against the market demand. Although some of these guarantees provide penalties for cancellations and/or modifications to the purchase commitments as the market demand decreases, most of the guarantees do not. Therefore, as the market demand decreases, Teradyne re-evaluates With respect to its agreements covering product, business or entity divestitures and acquisitions, Teradyne provides certain representations, warranties and covenants to purchasers and agrees to indemnify and hold such purchasers harmless against breaches of such representations, warranties and covenants. Many of the indemnification claims have a definite expiration date while some remain in force indefinitely. With respect to its acquisitions, Teradyne may, from time to time, assume the liability for certain events or occurrences that took place prior to the date of acquisition. As a matter of ordinary course of business, Teradyne occasionally guarantees certain indebtedness obligations of its subsidiary companies, limited to the borrowings from financial institutions, purchase commitments to certain vendors, and lease commitments to landlords. Based on historical experience and information known as of December 31, 2018 and 2017, except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial. |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Net Income (Loss) per Common Share | L. NET INCOME (LOSS) PER COMMON SHARE The following table sets forth the computation of basic and diluted net income (loss) per common share: 2018 2017 2016 (in thousands, except per share amounts) Net income (loss) for basic and diluted net income per share $ 451,779 $ 257,692 $ (43,421 ) Weighted average common shares-basic 187,672 198,069 202,578 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 2,749 1,298 — Convertible note hedge warrant shares (2) 485 112 — Restricted stock units 1,385 1,800 — Stock options 278 335 0 Employee stock purchase rights 36 27 0 Dilutive potential common shares 4,933 3,572 — Weighted average common shares-diluted 192,605 201,641 202,578 Net income (loss) per common share-basic $ 2.41 $ 1.30 $ (0.21 ) Net income (loss) per common share-diluted $ 2.35 $ 1.28 $ (0.21 ) (1) Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.70, 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 $39.78, 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 2018 excludes the effect of the potential exercise of stock options to purchase approximately 0.1 The computation of diluted net income per common share for 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. The computation of diluted net loss per common share for 2016 excludes the effect of the potential exercise of all outstanding stock options and restricted stock units because Teradyne had a net loss and inclusion would be anti-dilutive. |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Other | M. RESTRUCTURING AND OTHER During the year ended December 31, 2018, Teradyne recorded an expense of $17.7 million for the increase in the fair value of the MiR contingent consideration liability, $8.7 million of severance charges related to headcount reductions primarily in Semiconductor Test, and $4.5 million for acquisition related expenses and compensation, partially offset by a gain of $16.7 million for the decrease in the fair value of the Universal Robots contingent consideration liability. During the year ended December 31, 2017, Teradyne recorded an expense of $7.8 million for the increase in the fair value of the Universal Robots contingent consideration liability, $3.8 million of severance charges related to headcount reductions primarily in Semiconductor Test, $1.1 million for an impairment of fixed assets in Semiconductor Test, $1.0 million for a lease impairment of a Wireless Test facility in Sunnyvale, CA, which was terminated in September 2017, and $0.8 million of expenses related to an earthquake in Kumamoto, Japan, partially offset by $5.1 million of property insurance recovery related to the Japan earthquake. During the year ended December 31, 2016, Teradyne recorded an expense of $15.9 million for the increase in the fair value of the contingent consideration liability, of which $15.3 million was related to Universal Robots and $0.6 million was related to AIT, $6.0 million of severance charges related to headcount reductions primarily in Wireless Test, $4.2 million for an impairment of fixed assets, and $0.9 million for expenses related to an earthquake in Kumamoto, Japan, partially offset by $5.1 million of property insurance recovery related to the Japan earthquake. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Pension Plans | |
Retirement Plans | N. 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 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 $151.3 million. During 2018, Teradyne recorded a settlement loss of $0.3 million related to the retiree group annuity transaction. The December 31 balances of these defined benefit pension plans assets and obligations are shown below: 2018 2017 United States Foreign United States Foreign (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 363,026 $ 39,353 $ 353,616 $ 60,738 Service cost 2,196 786 2,239 818 Interest cost 8,940 687 13,151 852 Actuarial (gain) loss (30,136 ) 773 12,702 262 Benefits paid (14,793 ) (741 ) (18,682 ) (994 ) Retiree annuity purchase (151,341 ) — — — Liability loss due to settlement 345 — — — Settlements — — — (28,560 ) Admin expenses paid — — — (40 ) Non-U.S. — (1,712 ) — 6,277 End of year 178,237 39,146 363,026 39,353 Change in plan assets: Fair value of plan assets: Beginning of year 324,506 1,307 307,304 27,571 Company contributions 2,587 822 4,462 883 Actual return on plan assets (16,658 ) 50 31,422 737 Benefits paid (14,793 ) (741 ) (18,682 ) (994 ) Retiree annuity purchase (151,341 ) — — — Settlements — — — (28,560 ) Admin expenses paid — — — (40 ) Non-U.S. — (38 ) — 1,710 End of year 144,301 1,400 324,506 1,307 Funded status $ (33,936 ) $ (37,746 ) $ (38,520 ) $ (38,046 ) The following table provides amounts recorded within the account line items of the statements of financial position as of December 31: 2018 2017 United States Foreign United States Foreign (in thousands) Retirement plans assets $ 16,883 $ — $ 17,491 $ — Accrued employees’ compensation and withholdings (2,676 ) (852 ) (2,524 ) (863 ) Retirement plans liabilities (48,143 ) (36,894 ) (53,487 ) (37,183 ) Funded status $ (33,936 ) $ (37,746 ) $ (38,520 ) $ (38,046 ) The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2018 2017 United States Foreign United States Foreign (in thousands) Prior service cost, before tax $ — $ — $ 58 $ — Deferred taxes 560 — 539 — Total recognized in other comprehensive income, net of tax $ 560 $ — $ 597 $ — The accumulated benefit obligation for the United States defined benefit pension plans was $172.8 million and $354.3 million at December 31, 2018 and 2017, respectively. The accumulated benefit obligation for foreign defined benefit pension plans was $35.6 million and $34.7 million at December 31, 2018 and 2017, respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31: 2018 2017 United States Foreign United States Foreign (in millions) Projected benefit obligation $ 50.8 $ 39.1 $ 56.0 $ 39.4 Accumulated benefit obligation 48.6 35.6 51.6 34.7 Fair value of plan assets — 1.4 — 1.3 Expense For the years ended December 31, 2018, 2017, and 2016, Teradyne’s net periodic pension (income) cost was comprised of the following: 2018 2017 2016 United States Foreign United States Foreign United States Foreign (in thousands) Components of Net Periodic Pension (Income) Cost: Service cost $ 2,196 $ 786 $ 2,239 $ 818 $ 2,302 $ 761 Interest cost 8,940 687 13,151 852 13,630 1,185 Expected return on plan assets (9,049 ) (19 ) (12,008 ) (165 ) (13,830 ) (443 ) Amortization of prior service cost 58 — 70 — 96 — Net actuarial (gain) loss (4,429 ) 743 (6,712 ) (310 ) (4,013 ) 815 Settlement loss 345 — — — — — Total net periodic pension (income) cost $ (1,939 ) $ 2,197 $ (3,260 ) $ 1,195 $ (1,815 ) $ 2,318 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Reversal of amortization items: Prior service cost (58 ) — (70 ) — (96 ) — Total recognized in other comprehensive income (58 ) — (70 ) — (96 ) — Total recognized in net periodic pension (income) cost and other comprehensive income $ (1,997 ) $ 2,197 $ (3,330 ) $ 1,195 $ (1,911 ) $ 2,318 Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: 2018 2017 2016 United States Foreign United States Foreign United States Foreign Discount rate 3.4 % 1.8 % 3.9 % 1.8 % 4.0 % 2.3 % Expected return on plan assets 4.3 1.5 4.0 2.0 4.8 2.0 Salary progression rate 2.3 2.7 2.6 2.7 2.7 3.2 Weighted Average Assumptions to Determine Pension Obligations at December 31: 2018 2017 United States Foreign United States Foreign Discount rate 4.1 % 1.8 % 3.4 % 1.8 % Salary progression rate 2.3 2.6 2.3 2.7 In developing the expected return on plan assets assumption, Teradyne evaluates input from its investment manager and pension consultants, including their forecast of asset class return expectations. Teradyne believes that 4.25% was an appropriate rate to use for fiscal 2018 for the U.S. Qualified Pension Plan (“U.S. Plan”). Teradyne recognizes net actuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. The discount rate utilized to determine future pension obligations for the U.S. Plan is based on FTSE Pension Index adjusted for the plan’s expected cash flows and was 4.15% at December 31, 2018, up from 3.4% at December 31, 2017. Plan Assets As of December 31, 2018, the fair value of Teradyne’s pension plans’ assets totaled $145.7 million of which $144.3 million was related to the U.S. Plan and $1.4 million was related to the Taiwan defined benefit pension plan. Substantially all of Teradyne’s pension plans’ assets are held in individual trusts, which were established for the investment of assets of Teradyne’s sponsored retirement plans. The following table provides weighted average pension asset allocation by asset category at December 31, 2018 and 2017: 2018 2017 United States Foreign United States Foreign Fixed income securities 94.0 % — % 88.1 % — % Equity securities 5.0 — 9.9 — Other 1.0 100.0 2.0 100.0 100.0 % 100.0 % 100.0 % 100.0 % The assets of the U.S. Plan are overseen by the Teradyne Fiduciary Committee which is comprised of members of senior management drawn from appropriate diversified levels of the management team. The Fiduciary Committee is responsible for setting the policy that provides the framework for management of the U.S. Plan assets. In accordance with its responsibilities, the Fiduciary Committee meets on a regular basis to review the performance of the U.S. Plan assets and compliance with the investment policy. The policy sets forth an investment structure for managing U.S. Plan assets, including setting the asset allocation ranges, which are expected to provide an appropriate level of overall diversification required to maximize the long-term return on plan assets for a prudent and reasonable level of risk given prevailing market conditions, total investment return over the long term, and preservation of capital, while maintaining sufficient liquidity to pay the benefits of the U.S. Plan. The investment portfolio will not, at any time, have a direct investment in Teradyne stock. It may have indirect investment in Teradyne stock, if one of the funds selected by the investment manager invests in Teradyne stock. In developing the asset allocation ranges, third party asset allocation studies are periodically performed that consider the current and expected positions of the plan assets and funded status. Based on this study and other appropriate information, the Fiduciary Committee establishes asset allocation ranges taking into account acceptable risk targets and associated returns. The investment return objectives are to avoid excessive volatility and produce a rate of return that at least matches the Policy Index identified below. The manager’s investment performance is reviewed at least annually. Results for the total portfolio and for each major category of assets are evaluated in comparison with appropriate market indices and the Policy Index. The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows: Asset Category: Policy Index: Target Allocation U.S. corporate fixed income Barclays U.S. Corporate A or Better Index 75 % Global equity MSCI World Minimum Volatility Index 5 U.S. government fixed income Barclays Index 14 High yield fixed income Barclays U.S. Corporate High Yield 2% Issuer Cap Index 5 Cash Citigroup Three Month U.S. Treasury Bill Index 1 Teradyne’s U.S. Plan invests primarily in common trust funds. Units held in the common trust funds are valued at the unit price as reported by the investment manager based on the asset value of the underlying investments; underlying investments in equity securities are valued at the last reported sales price, and underlying investments in fixed-income securities are generally valued using methods based upon market transactions for comparable securities. In 2017, the U.K. defined benefit pension was terminated and the obligations and assets of the plan were transferred to an insurance company. During the year ended December 31, 2018, $2.7 million of pension assets were transferred out of Level 3 to Level 2. During the year ended December 31, 2017, there were no transfers of pension assets in or out of Level 1, Level 2 or Level 3. The fair value of pension plan assets by asset category and by level at December 31, 2018 and December 31, 2017 were as follows: December 31, 2018 United States Foreign Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) Fixed income securities: Corporate debt securities $ — $ 115,424 $ — $ 115,424 $ — $ — $ — $ — U.S. government securities — 20,176 — 20,176 — — — — Global equity — 7,252 — 7,252 — — — — Other — — — — — 1,400 — 1,400 Cash and cash equivalents 1,449 — — 1,449 — — — — Total $ 1,449 $ 142,852 $ — $ 144,301 $ — $ 1,400 $ — $ 1,400 December 31, 2017 United States Foreign Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) Fixed income securities: Corporate debt securities $ — $ 260,294 $ — $ 260,294 $ — $ — $ — $ — U.S. government securities — 25,709 — 25,709 — — — — Global equity — 32,120 — 32,120 — — — — Group annuity insurance contracts — — 3,166 3,166 — — — — Other — — — — — 1,307 — 1,307 Cash and cash equivalents 3,217 — — 3,217 — — — — Total $ 3,217 $ 318,123 $ 3,166 $ 324,506 $ — $ 1,307 $ — $ 1,307 The pension plan assets identified as Level 3 above are related to group annuity insurance contracts held by the U.S. Plan. Changes in the fair value of Level 3 group annuity insurance contracts for the years ended December 31, 2018 and 2017 were as follows: Group Annuity Insurance Contracts (in thousands) Balance at December 31, 2016 $ 29,456 Settlements (28,560 ) Interest and market value adjustments 959 Benefits paid (244 ) Other (61 ) Non-U.S. 1,616 Balance at December 31, 2017 3,166 Transfer out of Level 3 (2,658 ) Purchases of retiree annuity insurance contracts (512 ) Interest and market value adjustments 59 Benefits paid (40 ) Other (15 ) Balance at December 31, 2018 $ — Contributions Teradyne’s funding policy is to make contributions to the plans in accordance with local laws and to the extent that such contributions are tax deductible. During 2018, Teradyne contributed $2.6 million to the U.S. supplemental executive defined benefit pension plan and $0.8 million to certain qualified plans for non-U.S. non-U.S. non-U.S. Future benefit payments are expected to be paid as follows: United States Foreign (in thousands) 2019 $ 6,903 $ 874 2020 7,133 1,522 2021 8,026 905 2022 8,863 888 2023 9,584 1,199 2024-2028 57,120 5,921 Postretirement Benefit Plans In addition to receiving pension benefits, U.S. Teradyne employees who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees. The December 31 balances of the postretirement assets and obligations are shown below: 2018 2017 (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 6,177 $ 5,510 Service cost 39 34 Interest cost 196 201 Actuarial loss 25 398 Special termination benefits 3,708 591 Benefits paid (889 ) (557 ) End of year 9,256 6,177 Change in plan assets: Fair value of plan assets: Beginning of year — — Company contributions 889 557 Benefits paid (889 ) (557 ) End of year — — Funded status $ (9,256 ) $ (6,177 ) The following table provides amounts recorded within the account line items of financial position as of December 31: 2018 2017 (in thousands) Accrued employees’ compensation and withholdings $ (1,310 ) $ (591 ) Retirement plans liability (7,946 ) (5,586 ) Funded status $ (9,256 ) $ (6,177 ) The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2018 2017 (in thousands) Prior service credit, before tax $ (249 ) $ (622 ) Deferred taxes (1,641 ) (1,472 ) Total recognized in other comprehensive income, net of tax $ (1,890 ) $ (2,094 ) The estimated portion of prior service credit remaining in accumulated other comprehensive income that is expected to be recognized as a component of net periodic postretirement benefit income in 2019 is $(0.2) million. Expense For the years ended December 31, 2018, 2017, and 2016, Teradyne’s net periodic postretirement benefit cost (income) was comprised of the following: 2018 2017 2016 (in thousands) Components of Net Periodic Postretirement Benefit Cost (income): Service cost $ 39 $ 34 $ 37 Interest cost 196 201 218 Amortization of prior service credit (373 ) (496 ) (607 ) Net actuarial loss 25 398 5 Special termination benefits 3,708 591 — Total net periodic postretirement benefit cost (income) 3,595 728 (347 ) Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Prior service cost — — (93 ) Reversal of amortization items: Prior service credit 373 496 607 Total recognized in other comprehensive income 373 496 514 Total recognized in net periodic postretirement benefit cost (income) and other comprehensive income $ 3,968 $ 1,224 $ 167 Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1: 2018 2017 2016 Discount rate 3.4 % 3.9 % 3.9 % Initial health care cost trend rate 7.9 7.3 7.5 Ultimate health care cost trend rate 4.5 5.0 5.0 Year in which ultimate health care cost trend rate is reached 2026 2023 2023 Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31: 2018 2017 2016 Discount rate 4.0 % 3.4 % 3.9 % Initial medical trend 7.5 7.9 7.3 Ultimate health care trend 4.5 4.5 5.0 Medical cost trend rate decrease to ultimate rate in year 2026 2026 2023 Assumed health care trend rates could have a significant effect on the amounts reported for health care plans. A one percentage point change in the assumed health care cost trend rates for the year ended December 31, 2018 would have the following effects: 1 Percentage Point Increase 1 Percentage Point Decrease (in thousands) Effect on total service and interest cost components $ 7 $ (7 ) Effect on postretirement benefit obligations 181 (171 ) Expected Future Benefit Payments Future benefit payments are expected to be paid as follows: Benefit Payments (in thousands) 2019 $ 1,310 2020 1,234 2021 1,181 2022 984 2023 811 2024-2028 2,364 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation | O. STOCK-BASED COMPENSATION Stock Compensation Plans 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”). Stock options to purchase Teradyne’s common stock at 100% of the fair market value on the grant date vest in equal annual installments over four years from the grant date and have a maximum term of seven years. Time-based restricted stock unit awards granted to employees vest in equal annual installments over four years. Restricted stock unit awards granted to non-employee directors vest in full, on the earlier of (a) the first anniversary of the grant date or (b) the date of the following year’s Annual Meeting of Shareholders. Teradyne expenses the cost of the restricted stock unit awards subject to time based vesting, which is determined to be the fair market value of the shares at the date of grant, ratably over the period during which the restrictions lapse. Teradyne grants 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, 2017, and 2016, 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 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, 2017, and 2016, Teradyne granted PRSUs to its executive officers with a performance metric based on three-year cumulative non-GAAP profit before interest and tax (“PBIT”) as a percent of Teradyne’s revenue. Non-GAAP PBIT is a financial measure equal to GAAP income from operations less restructuring and other, net; amortization of acquired intangible assets; acquisition and divestiture related charges or credits; pension actuarial gains and losses; non-cash convertible debt interest expense; and other non-recurring gains and charges. The final number of PBIT PRSUs that vest will vary based upon the level of performance achieved from 200% to 0% of the target shares. The PBIT PRSUs will vest upon the three-year anniversary of the grant date. Compensation expense is recognized on a straight-line basis over the three-year service period. Compensation expense is recognized based on the number of units that are earned based upon the three-year Teradyne PBIT as a percent of Teradyne’s revenue, provided the executive officer remains an employee at the end of the three-year period subject to the retirement and termination eligibility provisions noted below. If a PRSU 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 2018, 2017, and 2016, Teradyne granted 0.1 million TSR PRSUs, with a grant date fair value of $54.85, $35.66 and $20.29, respectively. The fair value was estimated using the Monte Carlo simulation model with the following assumptions: 2018 2017 2016 Risk-free interest rate 2.2 % 1.5 % 1.0 % Teradyne volatility-historical 26.8 % 26.6 % 27.0 % NYSE Composite Index volatility-historical 12.4 % 13.4 % 13.1 % Dividend yield 0.8 % 1.0 % 1.2 % Expected volatility was based on the historical volatility of Teradyne’s stock and the NYSE Composite Index for the 2018, 2017 and 2016 grants, 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 for 2018, 2017 and 2016 was based upon an estimated annual dividend amount of $0.36 per share for 2018, $0.28 per share for 2017 and $0.24 per share for 2016 divided by Teradyne’s stock price on the grant date of $47.70 for the 2018 grant, $28.56 for the 2017 grant, and $19.43 for the 2016 grant. During 2018, 2017, and 2016, Teradyne granted 0.1 million PBIT PRSUs with a grant date fair value of $46.62, $27.72 and $18.71, respectively. During 2018, 2017, and 2016, Teradyne granted 0.6 million, 0.8 million, and 1.2 million of service-based restricted stock unit awards to employees, respectively, at a weighted average grant date fair value of $45.92, $28.19, and $18.88, respectively. During 2018, 2017, and 2016, Teradyne granted 0.1 million of service-based restricted stock unit awards to non-employee During 2018, 2017, and 2016, Teradyne granted 0.1 million of service-based stock options to executive officers at a weighted average grant date fair value of $12.17, $7.13, and $5.30, respectively. The fair value of the stock options at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions: 2018 2017 2016 Expected life (years) 5.0 5.0 5.0 Risk-free interest rate 2.4 % 2.0 % 1.4 % Volatility-historical 26.4 % 27.8 % 32.9 % Dividend yield 0.80 % 1.00 % 1.20 % Teradyne determined the stock option’s expected life based upon historical exercise data for executive officers, the age of executives and the terms of the stock option award. Volatility was determined using historical volatility for a period equal to the expected life. The interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. Dividend yield was based upon an estimated annual dividend amount of $0.36 per share for 2018, $0.28 per share for 2017, and $0.24 per share for 2016 divided by Teradyne’s stock price on the grant date of $47.70 for the 2018 grants, $28.56 for the 2017 grants, and $19.43 for the 2016 grants. Stock compensation plan activity for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 (in thousands) Restricted Stock Units: Non-vested 3,174 3,778 4,070 Awarded 790 939 1,471 Vested (1,382 ) (1,434 ) (1,530 ) Forfeited (128 ) (109 ) (233 ) Non-vested 2,454 3,174 3,778 Stock Options: Outstanding at January 1 531 926 1,121 Granted 69 111 130 Exercised (94 ) (501 ) (324 ) Expired — (5 ) (2 ) Outstanding at December 31 506 531 926 Vested and expected to vest at December 31 506 531 926 Exercisable at December 31 256 233 598 Total shares available for the years 2018, 2017, and 2016: 2018 2017 2016 (in thousands) Shares available: Available for grant at January 1 8,605 9,546 10,914 Options granted (69 ) (111 ) (130 ) Restricted stock units awarded (790 ) (939 ) (1,471 ) Restricted stock units forfeited 128 109 233 Available for grant at December 31 7,874 8,605 9,546 Weighted average restricted stock unit award date fair value information for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 Non-vested $ 21.71 $ 18.27 $ 17.66 Awarded 45.99 28.91 18.95 Vested 20.20 17.90 17.36 Forfeited 24.67 20.35 17.80 Non-vested $ 29.22 $ 21.71 $ 18.27 Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 (in thousands) Vested $ 63,688 $ 40,649 $ 30,008 Outstanding 77,015 132,875 95,952 Expected to vest 77,187 130,594 91,871 Restricted stock units weighted average remaining contractual terms (in years) information at December 31, for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 Outstanding 0.92 1.00 1.04 Expected to vest 0.91 0.99 1.03 Weighted average stock options exercise price information for the year ended December 31, 2018 is as follows: 2018 Outstanding at January 1 $ 13.92 Options granted 47.70 Options exercised 10.89 Outstanding at December 31 19.06 Exercisable at December 31 8.31 The total cash received from employees as a result of employee stock options exercises during the years ended December 31, 2018, 2017, and 2016, was $1.0 million, $6.8 million and $2.9 million, respectively. In connection with these exercises, the tax benefit realized by Teradyne for the years ended December 31, 2018, 2017, and 2016, was $0.4 million, $2.5 million, and $0.8 million, respectively. Stock option aggregate intrinsic value information for the years ended December 31, 2018, 2017, and 2016 is as follows: 2018 2017 2016 (in thousands) Exercised $ 2,960 $ 8,035 $ 3,729 Outstanding 7,359 14,831 12,468 Vested and expected to vest 7,359 14,831 12,468 Exercisable 5,905 9,076 10,217 Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 Outstanding 3.6 4.1 3.9 Vested and expected to vest 3.6 4.1 3.9 Exercisable 2.4 2.8 3.2 Significant option groups outstanding at December 31, 2018 and related weighted average price and remaining contractual life information follow: Options Outstanding Options Exercisable Range Of Exercise Prices Weighted- Average Remaining Contractual Life (Years) Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price (shares in thousands) $1.48 – $2.58 1.23 67 $ 1.83 67 $ 1.83 $2.67 – $3.28 2.20 103 2.69 103 2.69 $7.71 – $19.43 3.41 166 18.59 68 18.02 $28.56 – $47.70 5.62 170 36.30 18 28.56 506 $ 19.06 256 $ 8.31 As of December 31, 2018, total unrecognized expense related to non-vested Employee Stock Purchase Plan Under the ESPP, eligible employees may purchase shares of common stock through regular payroll deductions of up to 10% of their compensation, to a maximum of shares with a fair market value of $25,000 per calendar year, not to exceed 6,000 shares. Under the plan, the price paid for the common stock is equal to 85% of the stock price on the last business day of the six-month In July 2018, 0.3 million shares of common stock were issued to employees who participated in the plan during the first half of 2018 at the price of $32.36 per share. In January 2019, Teradyne issued 0.4 million shares of common stock to employees who participated in the plan during the second half of 2018 at the price of $26.67 per share. In July 2017, 0.3 million shares of common stock were issued to employees who participated in the plan during the first half of 2017 at the price of $25.53 per share. In January 2018, Teradyne issued 0.3 million shares of common stock to employees who participated in the plan during the second half of 2017 at the price of $35.59 per share. In July 2016, 0.5 million shares of common stock were issued to employees who participated in the plan during the first half of 2016 at the price of $16.74 per share. In January 2017, Teradyne issued 0.4 million shares of common stock to employees who participated in the plan during the second half of 2016 at the price of $21.59 per share. As of December 31, 2018, there were 2.5 million shares available for grant under the ESPP. The following table provides the effect to income from operations for recording stock-based compensation for the years ended December 31, 2018, 2017, and 2016: 2018 2017 2016 (in thousands) Cost of revenues $ 3,129 $ 3,212 $ 3,153 Engineering and development 9,181 9,370 9,458 Selling and administrative 21,267 21,515 18,139 Stock-based compensation 33,577 34,097 30,750 Income tax benefit (12,036 ) (10,462 ) (8,752 ) Total stock-based compensation expense after income taxes $ 21,541 $ 23,635 $ 21,998 |
Savings Plan
Savings Plan | 12 Months Ended |
Dec. 31, 2018 | |
Savings Plan | P. SAVINGS PLAN Teradyne sponsors a defined contribution employee retirement savings plan (“Savings Plan”) covering substantially all U.S. employees. Under the Savings Plan, employees may contribute up to 20 25 In addition, Teradyne established an unfunded U.S. Supplemental Savings Plan to provide savings benefits in excess of those allowed by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. The provisions of this plan are the same as the Savings Plan. Teradyne also established defined contribution savings plans for its foreign employees. Under Teradyne’s savings plans, amounts charged to the statements of operations for the years ended December 31, 2018, 2017, and 2016 were $17.2 million, $15.3 million, and $14.5 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | Q. INCOME TAXES The components of income (loss) before income taxes and the provision (benefit) for income taxes as shown in the consolidated statements of operations were as follows: 2018 2017 2016 (in thousands) Income (loss) before income taxes: U.S. $ 189,691 $ 76,699 $ (341,018 ) Non-U.S. 278,110 447,713 285,958 $ 467,801 $ 524,412 $ (55,060 ) Provision (benefit) for income taxes: Current: U.S. Federal $ (59,122 ) $ 162,679 $ 7,750 Non-U.S. 45,083 64,313 41,579 State 1,721 2,623 1,968 (12,318 ) 229,615 51,297 Deferred: U.S. Federal 29,252 43,687 (51,482 ) Non-U.S. (1,243 ) (6,476 ) (9,240 ) State 331 (106 ) (2,214 ) 28,340 37,105 (62,936 ) Total provision (benefit) for income taxes: $ 16,022 $ 266,720 $ (11,639 ) Income tax expense for 2018 and 2017 totaled $ 16.0 266.7 11.6 3.4 50.9 21.1 On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”), making significant changes to the Internal Revenue Code. The Tax Reform Act has significant direct and indirect implications for accounting for income taxes under ASC 740, “Accounting for Income Taxes” some of which could not be calculated with precision until further clarification and guidance was made available from tax authorities, regulatory bodies or the FASB. In light of this uncertainty, on December 22, 2017 the SEC issued Staff Accounting Bulletin (“SAB”) No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” to address uncertainty in the application of U.S. GAAP when the registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. In accordance with SAB 118, Teradyne recorded a provisional amount of $186.0 million of additional income tax expense in the fourth quarter of 2017 which represented Teradyne’s best estimate of the impact of the Tax Reform Act in accordance with Teradyne’s understanding of the Tax Reform Act and available guidance as of that date. The $186.0 million was primarily composed of expense of $161.0 million related to the one- time 49.5 one-time The Tax Reform Act also includes a new U.S. tax base erosion provision, the global intangible low-taxed income (“GILTI”) provision, which imposes a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Teradyne has made an accounting policy election to account for GILTI as a component of tax expense in the period in which Teradyne is subject to the rules and therefore did not provide any deferred tax impacts of GILTI in its consolidated financial statements. The decrease in the effective tax rate from 2017 to 2018 was primarily attributable to the $186.0 million of income tax expense recorded in the fourth quarter of 2017 as a provisional estimate of the impact of the Tax Reform Act and the $51.7 million of income tax benefit recorded in the fourth quarter of 2018 resulting from a reduction in the estimate of the one-time non-taxable The increase in the effective tax rate from 2016 to 2017 was primarily attributable to the $186.0 million of income tax expense recorded in the fourth quarter of 2017 as a provisional estimate of the impact of the Tax Reform Act. The change in the effective rate from 2016 to 2017 was also impacted by the U.S. non-deductible non-taxable A reconciliation of the effective tax rate for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 U.S. statutory federal tax rate 21.0 % 35.0 % 35.0 % U.S. transition tax (10.5 ) 28.7 — U.S. foreign derived intangible income (1.8 ) — — Impact of rate change on deferred tax 0.3 6.9 — Uncertain tax positions 1.0 1.7 (2.6 ) Foreign taxes (2.0 ) (16.3 ) 78.0 Foreign tax credits (2.2 ) (2.2 ) 49.1 U.S. research and development credit (2.2 ) (1.6 ) 15.8 Equity compensation (1.2 ) (0.8 ) (2.7 ) State income taxes, net of federal tax benefit 0.1 (0.4 ) 2.3 Domestic production activities deduction — (0.3 ) 2.3 Goodwill impairment — — (162.1 ) U.S. alternative minimum tax credit — — 3.7 Inventory cost capitalization — — 1.8 Other, net 0.9 0.2 0.5 3.4 % 50.9 % 21.1 % Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements of an agreement with the Singapore Economic Development Board under which certain headcount and spending requirements must be met. The tax savings attributable to the Singapore tax holiday for the years ended December 31, 2018, 2017 and 2016 were $11.9 million or $0.06 per diluted share, $24.8 million or $0.12 per diluted share and $17.0 million or $0.08 per diluted share, respectively. The tax holiday is scheduled to expire on December 31, 2020. Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2018 and 2017 were as follows: 2018 2017 (in thousands) Deferred tax assets: Tax credits $ 69,091 $ 76,083 Accruals 23,449 27,508 Pension liabilities 20,826 22,602 Inventory valuations 18,514 17,793 Deferred revenue 9,130 9,016 Equity compensation 7,190 6,861 Vacation accrual 4,772 4,747 Net operating loss carryforwards 3,658 5,440 Marketable securities 962 — Other 685 713 Gross deferred tax assets 158,277 170,763 Less: valuation allowance (69,852 ) (63,919 ) Total deferred tax assets $ 88,425 $ 106,844 Deferred tax liabilities: Intangible assets $ (24,211 ) $ (16,120 ) Depreciation (14,028 ) (12,293 ) Marketable securities — (1,125 ) Total deferred tax liabilities $ (38,239 ) $ (29,538 ) Net deferred assets $ 50,186 $ 77,306 As of December 31, 2018 and 2017, Teradyne evaluated the likelihood that it would realize the deferred income taxes to offset future taxable income and concluded that it is more likely than not that a substantial majority of its deferred tax assets will be realized through consideration of both the positive and negative evidence. At December 31, 2018 and 2017, Teradyne maintained a valuation allowance for certain deferred tax assets of $69.9 million and $63.9 million, respectively, primarily related to state net operating losses and state tax credit carryforwards, due to the uncertainty regarding their realization. Adjustments could be required in the future if Teradyne estimates that the amount of deferred tax assets to be realized is more or less than the net amount recorded. At December 31, 2018, Teradyne had operating loss carryforwards that expire in the following years: State Operating Loss Carryforwards Foreign Operating Loss Carryforwards (in thousands) 2019 $ 258 $ — 2020 269 — 2021 2,977 — 2022 5,749 — 2023 6,241 — 2024-2028 4,672 — 2029-2033 22,724 44 Beyond 2033 5,305 72 Non-expiring — 4,389 Total $ 48,195 $ 4,505 Teradyne has approximately $98.4 million of tax credit carryforwards including federal business tax credits of approximately $ 0.9 Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2018, 2017, and 2016 were as follows: 2018 2017 2016 (in thousands) Beginning balance, as of January 1 $ 36,263 $ 38,958 $ 36,792 Additions: Tax positions for current year 4,716 8,208 9,766 Tax positions for prior years 2,626 199 187 Reductions: Tax positions for prior years (153 ) (10,573 ) (1,960 ) Expiration of statutes (57 ) (325 ) (3,532 ) Settlements with tax authorities — (204 ) (2,295 ) Ending balance as of December 31 $ 43,395 $ 36,263 $ 38,958 Current year and prior year additions include assessment of potential transfer pricing issues worldwide, federal and state tax credits and incentives, capitalization rules, domestic production activities deductions and correlative effects of the transition tax charge. Of the $ 43.4 On February 4, 2019, the IRS issued a closing audit letter related to the U.S. Federal income tax return for the year ended December 31, 2015 indicating that there was no change to the reported tax. As a result of the completion of the 2015 audit, Teradyne anticipates recording a $ 33.8 33.8 5.9 27.9 2.0 Teradyne estimates that it is reasonably possible that the balance of unrecognized tax benefits as of December 31, 2018 may decrease an additional $ 0.2 Teradyne records all interest and penalties related to income taxes as a component of income tax expense. Accrued interest and penalties related to income tax items at December 31, 2018 and 2017 amounted to $0.3 million and $0.3 million, respectively. For the years ended December 31, 2018, 2017, and 2016, expense of $0.1 million, benefit of $0.1 million and benefit of $0.1 million, respectively, was recorded for interest and penalties related to income tax items. Teradyne is subject to U.S. federal income tax, as well as income tax in multiple state, local and foreign jurisdictions. As of December 31, 2018, all material state and local income tax matters have been concluded through 2013, all material federal income tax matters have been concluded through 2014 and all material foreign income tax matters have been concluded through 2012. However, in some jurisdictions, including the United States, operating losses and tax credits may be subject to adjustment until such time as they are utilized and the year of utilization is closed to adjustment. As of December 31, 2018, Teradyne is not permanently reinvested with respect to the unremitted earnings of non-U.S. subsidiaries to the extent that those earnings exceed local statutory and operational requirements. Remittance of those earnings is not expected to result in material income tax. |
Operating Segment, Geographic a
Operating Segment, Geographic and Significant Customer Information | 12 Months Ended |
Dec. 31, 2018 | |
Operating Segment, Geographic and Significant Customer Information | R. OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER 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 are the same as those described in Note B: “Accounting Policies.” Segment information for the years ended December 31, 2018, 2017, and 2016 is as follows: Semiconductor Test System Test Industrial Automation Wireless Test Corporate And Other Consolidated (in thousands) 2018 Revenues $ 1,492,417 $ 216,132 $ 261,452 $ 132,006 $ (1,205 ) $ 2,100,802 Income (loss) before taxes (1)(2) 397,645 48,857 7,670 29,052 (15,423 ) 467,801 Total assets (3) 669,452 88,098 607,502 77,570 1,263,984 2,706,606 Property additions 94,496 3,469 11,188 5,226 — 114,379 Depreciation and amortization expense 58,095 6,430 36,755 5,328 6,616 113,224 2017 Revenues $ 1,662,549 $ 192,135 $ 170,056 $ 111,866 $ — $ 2,136,606 Income (loss) before taxes (1)(2) 491,361 10,305 8,763 17,350 (3,368 ) 524,411 Total assets (3) 597,480 97,018 368,037 59,912 1,987,098 3,109,545 Property additions 87,920 5,976 7,044 4,435 — 105,375 Depreciation and amortization expense 58,901 6,646 25,711 5,392 11,425 108,075 2016 Revenues $ 1,368,169 $ 189,846 $ 99,031 $ 96,204 $ — $ 1,753,250 Income (loss) before taxes (1)(2) 311,939 28,916 (16,783 ) (371,409 ) (7,723 ) (55,060 ) Total assets (3) 557,546 110,361 317,635 62,366 1,714,585 2,762,493 Property additions 70,543 3,788 6,755 4,186 — 85,272 Depreciation and amortization expense 58,087 6,551 26,869 25,921 2,581 120,009 (1) Included in Corporate and Other are: contingent consideration adjustments, pension and postretirement plans actuarial gains (losses), severance charges, impairment of fixed assets and expenses related to the Japan earthquake, property insurance recovery, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations and acquisition related charges. (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. In 2016, loss before income taxes in Wireless Test also included charges related to goodwill and acquired intangible assets impairment. (3) Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. Included in the Semiconductor Test segment are charges in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Restructuring and other—employee severance $ 8,429 $ 1,779 $ 2,860 Cost of revenues—inventory charge 6,822 4,606 9,656 Restructuring and other—impairment of fixed assets — 1,124 — Included in the System Test segment are charges in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Cost of revenues—inventory charge $ 1,175 $ 1,918 $ 630 Included in the Industrial Automation segment are charges in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Restructuring and other—acquisition related expenses and compensation $ 1,163 $ — $ — Cost of revenues—inventory charge 680 — — Restructuring and other—employee severance — 1,414 585 Included in the Wireless Test segment are charges in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Cost of revenues—inventory charge $ 2,565 $ 2,190 $ 7,207 Restructuring and other—lease impairment — 972 — Restructuring and other—employee severance — — 2,650 Goodwill impairment charge — — 254,946 Intangible assets impairment charge — — 83,339 Included in Corporate and Other are charges and credits in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Restructuring and other—MiR contingent consideration adjustment $ 17,666 $ — $ — Restructuring and other—Universal Robots contingent consideration adjustment (16,679 ) 7,820 15,346 Restructuring and other—acquisition related expenses 3,422 — — Restructuring and other 872 — — Restructuring and other—expense related to Japan earthquake and impairment of fixed assets — 755 5,051 Restructuring and other—property insurance recovery — (5,064 ) (5,051 ) Information as to Teradyne’s revenues by country is as follows: 2018 2017 2016 (in thousands) Revenues from customers (1): Taiwan $ 516,322 $ 687,031 $ 653,076 China 348,942 260,451 174,876 United States 282,869 252,516 221,948 Europe 223,207 163,715 117,671 Korea 163,224 206,819 147,882 Japan 158,281 169,093 135,978 Malaysia 122,797 124,048 103,472 Singapore 108,618 101,085 73,172 Philippines 77,996 105,850 54,705 Thailand 59,184 29,566 43,097 Rest of the World 39,362 36,432 27,373 $ 2,100,802 $ 2,136,606 $ 1,753,250 (1) Revenues attributable to a country are based on location of customer site. In 2018, no single customer accounted for more than 10% of total consolidated revenue. In 2017 and 2016, one customer of Teradyne’s Semiconductor Test segment accounted for 13 % and 12%, respectively, of total consolidated revenues. In 2016, a different customer of Teradyne’s Semiconductor Test segment accounted for 12% of total consolidated revenues. Teradyne estimates driven by a single OEM customer, combining direct sales to that customer with sales to the customer’s outsourced semiconductor assembly and test providers (“OSATs”), accounted for approximately 13%, 22%, and 26% of Teradyne’s consolidated revenues in 2018, 2017, and 2016, respectively. Long-lived assets by geographic area: United States Foreign(1) Total (in thousands) December 31, 2018 $ 209,368 $ 70,453 $ 279,821 December 31, 2017 $ 198,855 $ 69,592 $ 268,447 (1) As of December 31, 2018 and 2017, long-lived assets attributable to Singapore were $19.4 million and $23.6 million, respectively. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2018 | |
Stock Repurchase Program | S. STOCK REPURCHASE PROGRAM In January 2015, Teradyne’s Board of Directors authorized a stock repurchase program for up to $500 million of common stock. In 2016, Teradyne repurchased 6.8 In December 2016, Teradyne’s Board of Directors cancelled the January 2015 stock repurchase program and approved a new $500 million share repurchase authorization which commenced on January 1, 2017. The cumulative repurchases as of December 31, 2017 totaled 5.8 million shares of common stock for $200 million at an average price per share of $34.30. 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. The cumulative repurchases as of December 31, 2018 totaled 21.6 million shares of common stock for $823.5 million at an average price per share of $38.06. Teradyne intends to repurchase $500 million in 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events | T. SUBSEQUENT EVENTS In January 2019, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.09 per share to be paid on March 22, 2019 to shareholders of record as of February 22, 2019. While 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 ’s Board of Directors which will consider, among other things, ’s earnings, capital requirements and financial condition. |
Supplementary Information
Supplementary Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplementary Information | SUPPLEMENTARY INFORMATION (Unaudited) The following sets forth certain unaudited consolidated quarterly statements of operations data for each of Teradyne’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of Teradyne and the notes thereto included elsewhere herein. 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2)(5) (3)(5) (4)(5) (in thousands, except per share amounts) Revenues: Products $ 403,925 $ 434,051 $ 470,994 $ 420,652 Services 83,542 92,878 95,854 98,906 Total revenues 487,467 526,929 566,848 519,558 Cost of revenues: Cost of products 180,958 180,777 195,339 170,064 Cost of services 36,677 38,818 37,816 39,959 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 217,635 219,595 233,155 210,023 Gross profit 269,832 307,334 333,693 309,535 Operating expenses: Selling and administrative 90,505 99,410 100,202 100,552 Engineering and development 74,408 75,342 77,049 74,706 Acquired intangible assets amortization 7,698 9,793 11,142 10,558 Restructuring and other (313 ) 2,389 1,710 11,446 Total operating expenses 172,298 186,934 190,103 197,262 Income (loss) from operations 97,534 120,400 143,590 112,273 Non-operating Interest income (5,981 ) (5,427 ) (6,213 ) (9,083 ) Interest expense 6,890 5,639 5,557 13,182 Other (income) expense, net 805 176 3,405 (2,954 ) Income (loss) before income taxes 95,820 120,012 140,841 111,128 Income tax provision (benefit) 8,846 18,975 20,863 (32,662 ) Net income (loss) $ 86,974 $ 101,037 $ 119,978 $ 143,790 Net income (loss) per common share—basic $ 0.45 $ 0.53 $ 0.65 $ 0.80 Net income (loss) per common share—diluted $ 0.43 $ 0.52 $ 0.63 $ 0.79 Cash dividend declared per common share $ 0.09 $ 0.09 $ 0.09 $ 0.09 (1) Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. (2) Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. (3) Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. (4) Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. (5) Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2)(5) (3) (4)(5) (in thousands, except per share amounts) Revenues: Products $ 373,204 $ 610,356 $ 412,854 $ 388,282 Services 83,709 86,545 90,524 91,133 Total revenues 456,913 696,901 503,378 479,415 Cost of revenues: Cost of products 154,883 267,752 169,661 168,672 Cost of services 37,014 38,511 38,848 39,813 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 191,897 306,263 208,509 208,485 Gross profit 265,016 390,638 294,869 270,930 Operating expenses: Selling and administrative 84,792 90,111 86,130 87,880 Engineering and development 75,978 82,270 76,986 72,070 Acquired intangible assets amortization 7,952 8,166 7,028 7,384 Restructuring and other 2,511 2,288 (4,407 ) 8,970 Total operating expenses 171,233 182,835 165,737 176,304 Income from operations 93,783 207,803 129,132 94,626 Non-operating Interest income (3,520 ) (3,292 ) (4,517 ) (6,476 ) Interest expense 5,402 5,509 5,372 5,380 Other (income) expense, net (115 ) (1,291 ) 840 (2,362 ) Income before income taxes 92,016 206,877 127,437 98,084 Income tax provision 6,795 31,901 24,017 204,007 Net income (loss) $ 85,221 $ 174,976 $ 103,420 $ (105,923 ) Net income (loss) per common share—basic $ 0.43 $ 0.88 $ 0.52 $ (0.54 ) Net income (loss) per common share—diluted $ 0.42 $ 0.87 $ 0.52 $ (0.54 ) Cash dividend declared per common share $ 0.07 $ 0.07 $ 0.07 $ 0.07 (1) Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. (2) Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. (3) Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. (4) Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. (5) Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Valuation and Qualifying Accounts | TERADYNE, INC. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Column A Column B Column C Column D Column E Column F Description Balance at Beginning of Period Additions Charged to Cost and Expenses Other Deductions Balance at End of Period (in thousands) Valuation reserve deducted in the balance sheet from the asset to which it applies: Accounts receivable: 2018 Allowance for doubtful accounts $ 2,219 $ — $ 20 $ 566 $ 1,673 2017 Allowance for doubtful accounts $ 2,356 $ 4 $ — $ 141 $ 2,219 2016 Allowance for doubtful accounts $ 2,407 $ — $ — $ 51 $ 2,356 Column A Column B Column C Column D Column E Column F Description Balance at Beginning of Period Additions Charged to Cost and Expenses Other Deductions Balance at End of Period (in thousands) Valuation reserve deducted in the balance sheet from the asset to which it applies: Inventory: 2018 Inventory reserve $ 102,896 $ 11,242 $ 368 $ 13,727 $ 100,779 2017 Inventory reserve $ 116,016 $ 8,844 $ (126 ) $ 21,838 $ 102,896 2016 Inventory reserve $ 119,376 $ 17,493 $ 4,417 $ 25,270 $ 116,016 Column A Column B Column C Column D Column E Column F Description Balance at Beginning of Period Additions Charged to Cost and Expenses Other Deductions Balance at End of Period (in thousands) Valuation reserve deducted in the balance sheet from the asset to which it applies: Deferred taxes: 2018 Valuation allowance $ 63,919 $ 6,333 $ — $ 400 $ 69,852 2017 Valuation allowance $ 48,369 $ 15,571 $ — $ 21 $ 63,919 2016 Valuation allowance $ 43,039 $ 5,413 $ — $ 83 $ 48,369 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Preparation of Financial Statements and Use of Estimates | Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an on-going |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers Teradyne adopted Accounting Standards Codification (“ASC”) 606, “ Revenue from Contracts with Customers” “Revenue Recognition,” 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 customers in which a customer may purchase a combination of goods and 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 $2,088.8 million for the twelve months ended December 31, 2018. For the twelve months ended December 31, 2018, Teradyne also recognized $12.0 million 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 Year Ended December 31, 2018 Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Other Consolidated System on a Chip Memory Defense/ Aerospace Storage Test Production Board Test Universal Robots Mobile Industrial Robots Energid (in thousands) Americas Point in time $ 43,398 $ 14,579 $ 59,246 $ 767 $ 9,082 $ 68,289 $ 7,326 $ 543 $ 17,730 $ (1,205 ) $ 219,755 Over time 35,100 2,774 24,577 — 3,091 649 — 997 1,436 — 68,624 Europe, Middle East and Africa Point in time 50,988 9,726 3,056 — 16,733 105,776 10,839 — 3,821 — 200,939 Over time 21,584 1,125 2,124 — 6,467 1,000 — 1,591 1,147 — 35,038 Asia Pacific Point in time 916,107 235,061 2,769 58,004 17,761 57,830 5,950 10 100,985 — 1,394,477 Over time 140,887 10,203 965 7,877 3,221 551 — 101 6,127 — 169,932 Lease revenue 10,885 — — — 392 — — — 760 — 12,037 Total $ 1,218,949 $ 273,468 $ 92,737 $ 66,648 $ 56,747 $ 234,095 $ 24,115 $ 3,242 $ 132,006 $ (1,205 ) $ 2,100,802 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 warranty. This warranty is not considered a distinct performance obligation because it does not obligate Teradyne to provide a separate service to the customer and it cannot be purchased separately. Teradyne’s hardware is recognized at a point in time upon transfer of control to the customer. 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. December 31, 2018 January 1, 2018 (as adjusted) Increase (in thousands) Deferred revenue and customer advances $ 77,711 $ 76,638 $ 1,073 Long-term deferred revenue and customer advances 32,750 20,848 11,902 The amount of revenue recognized during the twelve months ended December 31 , 2018 that was previously included within the deferred revenue and customer advances balance was 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: December 31, 2018 As Reported Adjustments to Recognize under Legacy GAAP Legacy GAAP (in thousands, except per share amount) Assets Accounts receivable, less allowance for doubtful accounts $ 291,267 $ (37,348 ) $ 253,919 Inventories, net 153,541 10,759 164,300 Deferred tax assets 70,848 (3,874 ) 66,974 Liabilities Deferred revenue and customer advances $ 77,711 $ (4,118 ) $ 73,593 Income taxes payable 36,185 (4,495 ) 31,690 Long-term deferred revenue and customer advances 32,750 (10,303 ) 22,447 Shareholders’ equity Accumulated deficit $ (158,191 ) $ (11,547 ) $ (169,738 ) Condensed Consolidated Stateme nt of Operation: For the Year Ended December 31, 2018 As Reported Adjustments to Recognize under Legacy GAAP Legacy GAAP (in thousands, except per share amount) Total revenues $ 2,100,802 $ (39,184 ) $ 2,061,618 Total cost of revenues 880,408 (10,760 ) 869,648 Income tax provision 16,022 (4,197 ) 11,825 Net income 451,779 (24,227 ) 427,552 Net income per common share: Basic $ 2.41 $ (0.13 ) $ 2.28 Diluted $ 2.35 $ (0.13 ) $ 2.22 As of December 31, 2018 and 2017, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2018 2017 (in thousands) Maintenance and training $ 58,362 $ 57,256 Extended warranty 27,422 24,438 Customer advances, undelivered elements and other 24,677 32,047 Total deferred revenue and customer advances $ 110,461 $ 113,741 |
Product Warranty | Product Warranty When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances: Amount (in thousands) Balance at December 31, 2015 $ 30,024 Deferral of new extended warranty revenue 19,909 Recognition of extended warranty deferred revenue (21,733 ) Balance at December 31, 2016 28,200 Deferral of new extended warranty revenue 20,513 Recognition of extended warranty deferred revenue (24,275 ) Balance at December 31, 2017 24,438 Deferral of new extended warranty revenue 23,753 Recognition of extended warranty deferred revenue (20,769 ) Balance at December 31, 2018 $ 27,422 |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The volatility of the industries that Teradyne serves can cause certain of its customers to experience shortages of cash flows, which can impact their ability to make required payments. Teradyne maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically taking into account the customer’s recent payment history, the customer’s current financial statements and other information regarding the customer’s credit worthiness. Account balances are written off against the allowance when it is determined the receivable will not be recovered. Teradyne sells certain trade accounts receivables on a non-recourse basis to third-party financial institutions pursuant to factoring agreements. Teradyne accounts for these transactions as sales of receivables and presents cash proceeds as a cash provided by operating activities in the consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreements were $52.2 million and $5.4 million during 2018 and 2017, respectively. Factoring fees for the sales of receivables were recorded in interest expense and were not material. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out |
Investments | Investments Teradyne accounts for its investments in debt and equity securities in accordance with the provisions of ASC 320-10, Investments—Debt and Equity Securities 320-10 available-for-sale held-to-maturity • 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 twelve months ended December 31, 2018 and 2017. As defined in ASC 820-10, “ Fair Value Measurements and Disclosures, 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 ’s own data. In accordance with ASC 820-10, Teradyne measures its debt and equity investments at fair value. Teradyne’s debt investments are classified as Level 2, and equity investments are classified as Level 1. Acquisition-related contingent consideration is classified as Level 3. Teradyne determines the fair value of acquisition-related contingent consideration using a Monte Carlo simulation model. Assumptions utilized in the model include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. |
Financial Assets and Financial Liabilities | Financial Assets and Financial Liabilities In January 2016 , the Financial Accounting Standards Board (“FASB”) issued ASU 2016 - 01 , “Financial Instruments—Overall (Subtopic 825 - 10) : Recognition and Measurement of Financial Assets and Financial Liabilities.” Teradyne adopted the new accounting guidance in the first quarter of 2018 using the modified retrospective approach. This guidance requires that changes in fair value of equity securities be accounted for directly in earnings. Previously, the changes in fair value were recorded in accumulated other comprehensive income on the balance sheet. Teradyne continues to record realized gains in interest income and realized losses in interest expense. The adoption of this new accounting guidance increased the January 1 , 2018 retained earnings balance by $3.1 |
Prepayments | Prepayments Prepayments consist of the following and are included in prepayments and other current assets on the balance sheet: 2018 2017 (in thousands) Contract manufacturer and supplier prepayments $ 131,642 $ 82,503 Prepaid taxes 9,646 5,039 Prepaid maintenance and other services 8,487 8,189 Other prepayments 12,744 12,386 Total prepayments $ 162,519 $ 108,117 |
Retirement and Postretirement Plans | Retirement and Postretirement Plans Teradyne recogn izes net ac tuarial gains and losses and the change in the fair value of the plan assets in its operating results in the year in which they occur or upon any interim remeasurement of the plans. Teradyne calculates the expected return on plan assets using the fair value of the plan assets. Actuarial gains and losses are generally measured annually as of December 31 and, accordingly, recorded during the fourth quarter of each year or upon any interim remeasurement of the plans. |
Retirement Benefits | Retirement Benefits In March 2017 , the FA SB issu ed ASU 2017 - 07 , “ Compensation—Retirement Benefits (Topic 715) : Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost 2018 . This guidance requires the service cost component of net benefit costs to be reported in the same line item in the consolidated statement of operations as other employee compensation costs. The non-service components of net benefit costs such as interest cost, expected return on assets, amortization of prior service cost, and actuarial gains or losses, are required to be reported separately outside of income or loss from operations. Following the adoption of this guidance, Teradyne continues to record the service cost component in the same line item as other employee compensation costs and the non-service components of net benefit costs such as interest cost, expected return on assets, amortization of prior service cost, and actuarial gains or losses are reported within other (income) expense, net. In the twelve months ended December 31 , 2017 and 2016 , the retrospective adoption of this standard decreased income from operations by $ 5.0 million and $ 3.0 million, respectively, due to the removal of net actuarial pension gains and increased non-operating (income) expense by the same amount with no impact to net income. |
Goodwill, Intangible and Long-Lived Assets | Goodwill, Intangible and Long-Lived Assets Teradyne accounts for go odwill an d intangible assets in accordance with ASC 350 - 10 , Intangibles-Goodwill and Other. 31 , on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. In accordance with ASC 350 - 10 , more likely than not two-step more likely than not two-step In accordance with ASC 360 - 10 , Impairmen t or Disposal of Long-Lived Assets, |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cos t and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations. Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years Building improvements 5 to 10 years Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 years Machinery and equipment 3 to 5 years Software 3 to 5 years Test systems manufactured internally are used by Te radyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six-year 31 , 2018 , 2017 , and 2016 was $3.8 million, $3.6 million, and $11.4 million, respectively. |
Engineering and Development Costs | Engineering and Development Costs Teradyne’s products are highly technical in nature and require a larg e and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility are charged to expense. Software development costs incurred subsequent to the establishment of technological feasibility are capitalized until the product is available for release to customers. To date, the period between achieving technological feasibility and general availability of the product has been short and software development costs eligible for capitalization have not been material. Engineering and development costs are expensed as incurred and consist primarily of salaries, contractor fees including non-recurring |
Stock Compensation Plans and Employee Stock Purchase Plan | Stock Compensation Plans and Employee Stock Purchase Plan Stock-based compensation expense is based on the grant-date fair val ue e 718 - 10 , Compensation-Stock Compensation In March 2016 , the FASB issued ASU 2016 - 09 , “Compensation-Stoc k C 718) : Improvements to Employee Share-Based Payment Accounting.” 2017 . This ASU changes how Teradyne accounts for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statements of cash flows. Adoption of this ASU required recognition of a cumulative effect adjustment to reta million was recorded in the first quarter of 2017 as an increase to retained earnings and deferred tax assets. This ASU also required a change in how Teradyne recognizes the excess tax benefits or tax defic 2016 - 09 , paid-in 2016 - 09 , 2017 , these excess tax benefits or tax deficiencies are recognized as a discrete tax benefit or discrete tax expense to the current income tax provision in Teradyne’s consolidated statements of operations. ASU 2016 - 09 requires companies to adopt the amendment related to accounting for excess tax ben efit 2017 , Teradyne recognized a discrete tax benefit of $ 6.3 million related to net excess tax benefit. In addition, under ASU 2016 - 09 , as Upon adoption of ASU 2016 - 09 , or Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and p erf Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on differences between financial re porti 740 , “Accounting for Income Taxes.” |
Advertising Costs | Advertising Costs Teradyne expenses all advertising costs as incurred. Adve million, $9.1 million, and $6.4 million in 2018 , 2017 , and 2016 , respectively. |
Translation of Non-U.S. Currencies | Translation of Non-U.S. The functional currency for all subsidiaries is the U.S. dollar, except for the Uni ver Net foreign exchange gains and losses resulting from remeasurement are included in other (incom e) e 31 , 2018 , 2017 , and 2016 , (gains) losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $(2.4) million, $2.9 million, and $(8.0) million, respectively. These amounts do not reflect the corresponding (gains) losses from foreign exchange con trac |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the w With respect to its convertible debt issued in 2016 , Teradyne has determined that it has the abili ty a Teradyne is accounting for the conversion spread using the treasury stock method. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes net income, unrealized pension and postretirement prior service costs and benefits, unrealized gains and losses on investments in debt marketable securities and foreign currency translation adjustment. Prior to 2018, comprehensive income (loss) included unrealized gains and losses on investments in equity marketable securities. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 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 Year Ended December 31, 2018 Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Other Consolidated System on a Chip Memory Defense/ Aerospace Storage Test Production Board Test Universal Robots Mobile Industrial Robots Energid (in thousands) Americas Point in time $ 43,398 $ 14,579 $ 59,246 $ 767 $ 9,082 $ 68,289 $ 7,326 $ 543 $ 17,730 $ (1,205 ) $ 219,755 Over time 35,100 2,774 24,577 — 3,091 649 — 997 1,436 — 68,624 Europe, Middle East and Africa Point in time 50,988 9,726 3,056 — 16,733 105,776 10,839 — 3,821 — 200,939 Over time 21,584 1,125 2,124 — 6,467 1,000 — 1,591 1,147 — 35,038 Asia Pacific Point in time 916,107 235,061 2,769 58,004 17,761 57,830 5,950 10 100,985 — 1,394,477 Over time 140,887 10,203 965 7,877 3,221 551 — 101 6,127 — 169,932 Lease revenue 10,885 — — — 392 — — — 760 — 12,037 Total $ 1,218,949 $ 273,468 $ 92,737 $ 66,648 $ 56,747 $ 234,095 $ 24,115 $ 3,242 $ 132,006 $ (1,205 ) $ 2,100,802 |
Information about Contract Liabilities | The following table provides information about contract liabilities. Teradyne does not have material contract assets on the balance sheet. December 31, 2018 January 1, 2018 (as adjusted) Increase (in thousands) Deferred revenue and customer advances $ 77,711 $ 76,638 $ 1,073 Long-term deferred revenue and customer advances 32,750 20,848 11,902 |
Deferred Revenue and Customer Advances | As of December 31, 2018 and 2017, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2018 2017 (in thousands) Maintenance and training $ 58,362 $ 57,256 Extended warranty 27,422 24,438 Customer advances, undelivered elements and other 24,677 32,047 Total deferred revenue and customer advances $ 110,461 $ 113,741 |
Other Accrued Liabilities | The balance below is included in other accrued liabilities: Amount (in thousands) Balance at December 31, 2015 $ 6,925 Accruals for warranties issued during the period 14,291 Accruals related to pre-existing (1,354 ) Settlements made during the period (12,659 ) Balance at December 31, 2016 7,203 Accruals for warranties issued during the period 14,223 Accruals related to pre-existing (379 ) Settlements made during the period (12,847 ) Balance at December 31, 2017 8,200 Acquisition 41 Accruals for warranties issued during the period 13,045 Accruals related to pre-existing 921 Settlements made during the period (14,298 ) Balance at December 31, 2018 $ 7,909 |
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances | The balance below is included in short and long-term deferred revenue and customer advances: Amount (in thousands) Balance at December 31, 2015 $ 30,024 Deferral of new extended warranty revenue 19,909 Recognition of extended warranty deferred revenue (21,733 ) Balance at December 31, 2016 28,200 Deferral of new extended warranty revenue 20,513 Recognition of extended warranty deferred revenue (24,275 ) Balance at December 31, 2017 24,438 Deferral of new extended warranty revenue 23,753 Recognition of extended warranty deferred revenue (20,769 ) Balance at December 31, 2018 $ 27,422 |
Schedule of Prepayments and Other Current Assets | Prepayments consist of the following and are included in prepayments and other current assets on the balance sheet: 2018 2017 (in thousands) Contract manufacturer and supplier prepayments $ 131,642 $ 82,503 Prepaid taxes 9,646 5,039 Prepaid maintenance and other services 8,487 8,189 Other prepayments 12,744 12,386 Total prepayments $ 162,519 $ 108,117 |
Useful Lives of Assets | Teradyne provides for depreciation of its assets principally on the straight-line method with the cost of the assets being charged to expense over their useful lives as follows: Buildings 40 years Building improvements 5 to 10 years Leasehold improvements Lesser of lease term or 10 years Furniture and fixtures 10 years Test systems manufactured internally 6 years Machinery and equipment 3 to 5 years Software 3 to 5 years |
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: December 31, 2018 As Reported Adjustments to Recognize under Legacy GAAP Legacy GAAP (in thousands, except per share amount) Assets Accounts receivable, less allowance for doubtful accounts $ 291,267 $ (37,348 ) $ 253,919 Inventories, net 153,541 10,759 164,300 Deferred tax assets 70,848 (3,874 ) 66,974 Liabilities Deferred revenue and customer advances $ 77,711 $ (4,118 ) $ 73,593 Income taxes payable 36,185 (4,495 ) 31,690 Long-term deferred revenue and customer advances 32,750 (10,303 ) 22,447 Shareholders’ equity Accumulated deficit $ (158,191 ) $ (11,547 ) $ (169,738 ) Condensed Consolidated Stateme nt of Operation: For the Year Ended December 31, 2018 As Reported Adjustments to Recognize under Legacy GAAP Legacy GAAP (in thousands, except per share amount) Total revenues $ 2,100,802 $ (39,184 ) $ 2,061,618 Total cost of revenues 880,408 (10,760 ) 869,648 Income tax provision 16,022 (4,197 ) 11,825 Net income 451,779 (24,227 ) 427,552 Net income per common share: Basic $ 2.41 $ (0.13 ) $ 2.28 Diluted $ 2.35 $ (0.13 ) $ 2.22 |
Acquisitions (Tables)
Acquisitions (Tables) - Mobile Industrial Robots (MiR) | 12 Months Ended |
Dec. 31, 2018 | |
Final Allocation of Purchase Price | The following table represents the final allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 135,976 Intangible assets 80,670 Tangible assets acquired and liabilities assumed: Current assets 6,039 Non-current assets 1,336 Accounts payable and current liabilities (7,336 ) Long-term deferred tax liabilities (18,007 ) Other long-term liabilities (900 ) Total purchase price $ 197,778 |
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 $ 58,900 7.0 Trademarks and tradenames 13,240 11.0 Customer relationships 8,500 2.5 Backlog 30 0.2 Total intangible assets $ 80,670 7.2 |
Pro Forma Results Under Acquisitions | The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented: For the Year Ended December 31, 2018 December 31, 2017 (in thousands, except per share amounts) Revenues $ 2,107,600 $ 2,148,320 Net income $ 450,559 $ 243,399 Net income per common share: Basic $ 2.40 $ 1.23 Diluted $ 2.34 $ 1.21 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Composition of Inventories, Net | Inventories, net consisted of the following at December 31, 2018 and 2017: 2018 2017 (in thousands) Raw material $ 89,365 $ 62,668 Work-in-process 31,014 19,464 Finished goods 33,162 25,393 $ 153,541 $ 107,525 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant and Equipment, Net | Property, plant and equipment, net consisted of the following at December 31, 2018 and 2017: 2018 2017 (in thousands) Land $ 16,561 $ 16,561 Buildings 105,935 98,369 Machinery and equipment 689,770 647,961 Furniture and fixtures, and software 90,384 88,539 Leasehold improvements 52,536 49,540 Construction in progress 6,276 13,522 961,462 914,492 Less: accumulated depreciation 681,641 646,045 $ 279,821 $ 268,447 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2018 and 2017: December 31, 2018 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 312,512 $ — $ — $ 312,512 Cash equivalents 253,525 360,715 — 614,240 Available for sale securities: U.S. Treasury securities — 109,721 — 109,721 Commercial paper — 86,117 — 86,117 Corporate debt securities — 40,020 — 40,020 U.S. government agency securities — 9,611 — 9,611 Certificates of deposit and time deposits — 7,604 — 7,604 Debt mutual funds 3,187 — — 3,187 Non-U.S. — 376 — 376 Equity securities: Mutual funds 21,191 — — 21,191 590,415 614,164 — 1,204,579 Derivative assets — 79 — 79 Total $ 590,415 $ 614,243 $ — $ 1,204,658 Liabilities Contingent consideration $ — $ — $ 70,543 $ 70,543 Derivative liabilities — 514 — 514 Total $ — $ 514 $ 70,543 $ 71,057 Reported as follows: Level 1 Level 2 Level 3 Total (in thousands) Assets Cash and cash equivalents $ 566,037 $ 360,715 $ — $ 926,752 Marketable securities — 190,096 — 190,096 Long-term marketable securities 24,378 63,353 — 87,731 Prepayments — 79 — 79 Total $ 590,415 $ 614,243 $ — $ 1,204,658 Liabilities Other current liabilities $ — $ 514 $ — $ 514 Contingent consideration — — 34,865 34,865 Long-term contingent consideration — — 35,678 35,678 Total $ — $ 514 $ 70,543 $ 71,057 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 $ 427,720 $ 1,476,417 $ — $ 1,904,137 Liabilities Other current liabilities $ — $ 446 $ — $ 446 Contingent consideration — — 24,497 24,497 Long-term contingent consideration — — 20,605 20,605 $ — $ 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 years ended December 31, 2018 and 2017 were as follows: Contingent Consideration (in thousands) Balance at December 31, 2016 $ 38,332 Payments (1) (1,050 ) Fair value adjustment (2) 7,820 Balance at December 31, 2017 45,102 Acquisition of MiR 52,547 Foreign currency impact (3,540 ) Payments (3) (24,553 ) Fair value adjustment (4) 987 Balance at December 31, 2018 $ 70,543 (1) During the year ended December 31, 2017, Teradyne paid $1.1 million of contingent consideration for the earn-out in connection with the acquisition of Avionics Interface Technologies, LLC (“AIT”). (2) During the year ended December 31, 2017, the fair value of contingent consideration for the earn-out (3) During the year ended December 31, 2018, Teradyne paid $24.6 million of contingent consideration for the earn-out (4) During the year ended December 31, 2018, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was increased by $ 17.7 16.7 |
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument | The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instrument: Liability December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Weighted Average (in thousands) Contingent consideration (MiR) $ 66,672 (1) Monte Carlo simulation Revenue volatility 18.0 % Discount rate 1.1 % Contingent consideration (Universal Robots) $ 3,871 (1) (1) Contingent consideration related to MiR and acquisitions of $31.0 million and $3.9 million, respectively, is expected to be paid in March 2019. |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of Teradyne’s financial instruments at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 926,752 $ 926,752 $ 429,843 $ 429,843 Marketable securities 277,827 277,827 1,473,905 1,473,905 Derivative assets 79 79 389 389 Liabilities Contingent consideration 70,543 70,543 45,102 45,102 Derivative liabilities 514 514 446 446 Convertible debt (1) 379,981 547,113 365,987 659,525 (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 tables summarize the composition of available-for-sale marketable securities at December 31, 2018 and 2017: December 31, 2018 Available-for-Sale Fair Market Cost Unrealized Gain Unrealized (Loss) Fair Market Value Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 110,969 $ 112 $ (1,360 ) $ 109,721 $ 75,040 Commercial paper 86,130 13 (26 ) 86,117 85,094 Corporate debt securities 41,133 432 (1,545 ) 40,020 24,767 U.S. government agency securities 9,646 1 (36 ) 9,611 7,077 Certificates of deposit and time deposits 7,604 — — 7,604 — Debt mutual funds 3,153 34 — 3,187 — Non-U.S. 376 — — 376 — $ 259,011 $ 592 $ (2,967 ) $ 256,636 $ 191,978 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 190,100 $ 88 $ (92 ) $ 190,096 $ 140,262 Long-term marketable securities 68,911 504 (2,875 ) 66,540 51,716 $ 259,011 $ 592 $ (2,967 ) $ 256,636 $ 191,978 December 31, 2017 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 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 10,727 Non-U.S. 582 4 — 586 — $ 1,470,729 $ 6,582 $ (3,406 ) $ 1,473,905 $ 1,350,896 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 62,052 $ 1,470,729 $ 6,582 $ (3,406 ) $ 1,473,905 $ 1,350,896 |
Contractual Maturities of Investments Held | The contractual maturities of investments in available-for-sale marketable securities held at December 31, 2018 were as follows: Cost Fair Value (in thousands) Due within one year $ 190,100 $ 190,096 Due after 1 year through 5 years 9,199 9,144 Due after 5 years through 10 years 14,081 13,405 Due after 10 years 42,478 40,804 Total $ 255,858 $ 253,449 |
Schedule of Notional Amount of Derivatives | At December 31, 2018 and 2017, Teradyne had the following contracts to buy and sell non-U.S. non-U.S. December 31, 2018 December 31, 2017 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (35.0 ) $ — $ (35.0 ) $ (35.7 ) $ — $ (35.7 ) Taiwan Dollar (11.2 ) — (11.2 ) (9.9 ) — (9.9 ) Korean Won (9.6 ) — (9.6 ) (8.9 ) — (8.9 ) British Pound Sterling (1.4 ) — (1.4 ) (1.4 ) — (1.4 ) Euro — 82.2 82.2 — 27.4 27.4 Singapore Dollar — 15.7 15.7 — 33.5 33.5 Philippine Peso — 5.2 5.2 — — — Chinese Yuan — 2.8 2.8 — — — Total $ (57.2 ) $ 105.9 $ 48.7 $ (55.9 ) $ 60.9 $ 5.0 |
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value | The following table summarizes the fair value of derivative instruments as of December 31, 2018 and 2017: Balance Sheet Location December 31, 2018 December 31, 2017 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Prepayments $ 79 $ 389 Foreign exchange contracts Other current liabilities (514 ) (446 ) Total derivatives $ (435 ) $ (57 ) |
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized | The following table summarizes the effect of derivative instruments in the statements of operations recognized for the years ended December 31, 2018, 2017, and 2016. Location of (Gains) Losses Recognized in Statement of Operations 2018 2017 2016 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 7,257 $ (1,133 ) $ 8,671 (1) The table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. (2) For the years ended December 31, 2018 and 2016, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.4 (3) For the year ended December 31, 2017, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $2.9 million. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Components of Convertible Senior Notes | The below tables represents the key components of Teradyne’s convertible senior notes: December 31, 2018 December 31, 2017 (in thousands) Debt principal $ 460,000 $ 460,000 Unamortized discount 80,019 94,013 Net carrying amount of convertible debt $ 379,981 $ 365,987 For the year ended December 31, 2018 December 31, 2017 (in thousands) Contractual interest expense on the coupon $ 5,750 $ 5,734 Amortization of the discount component and debt issue fees recognized as interest expense 13,995 13,318 Total interest expense on the convertible debt $ 19,745 $ 19,052 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Changes in Accumulated Other Comprehensive (Loss) Income | Changes in accumulated other comprehensive (loss) income, which is presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Balance at December 31, 2016, net of tax of $0, $209, $(778) $ (21,921 ) $ (60 ) $ 1,767 $ (20,214 ) Other comprehensive income before reclassifications, net of tax of $0, $1,903, $0 37,840 1,863 — 39,703 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(297), $(154) — (441 ) (272 ) (713 ) Net current period other comprehensive income, net of tax of $0, $1,606, $(154) 37,840 1,422 (272 ) 38,990 Balance at December 31, 2017, net of tax of $0, $1,815, $(932) 15,919 1,362 1,495 18,776 Other comprehensive loss before reclassifications, net of tax of $0, $(722), $0 (28,442 ) (2,110 ) — (30,552 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(21), $(71) — 1,337 (245 ) 1,092 Net current period other comprehensive loss, net of tax of $0, $(743), $(71) (28,442 ) (773 ) (245 ) (29,460 ) Reclassification of tax effects resulting from the Tax Reform Act, net of tax of $0, $(691), $(78), respectively (a) — 691 78 769 Reclassification of unrealized gains on equity securities, net of tax of $0, $(902), $0, respectively, (b) — (3,125 ) — (3,125 ) Balance at December 31, 2018, net of tax of $0, $(521), $(1,081) $ (12,523 ) $ (1,845 ) $ 1,328 $ (13,040 ) (a) In the year ended December 31, 2018, Teradyne early adopted ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” As a result, the stranded tax effects resulting from the Tax Reform Act enacted in December 2017 were reclassified from accumulated other comprehensive income to retained earnings. (b) In the year ended December 31, 2018, Teradyne adopted ASU 2016-01, “ Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities .” See Note B: “Accounting Policies.” |
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations | Reclassifications out of accumulated other comprehensive income to the statements of operations for the years ended December 31, 2018, 2017, and 2016 were as follows: Details about Accumulated Components For the year ended Affected Line Item in the Statements of Operations December 31, 2018 December 31, 2017 December 31, 2016 (in thousands) Available-for-sale marketable securities Unrealized (losses) gains, net of tax of $21, $297, $255 $ (1,337 ) $ 441 $ 683 Interest income (expense) Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $71, $154, $190 245 272 321 (a) Total reclassifications, net of tax of $92, $451, $445 $ (1,092 ) $ 713 $ 1,004 Net income (a) The amortization of prior service credit is included in the computation of net periodic pension cost and postretirement benefit; see Note N: “Retirement Plans.” |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2018 and 2017 are as follows: Industrial Automation System Test Wireless Test Semiconductor Test Total (in thousands) Balance at December 31, 2016: Goodwill $ 204,851 $ 158,699 $ 361,819 $ 260,540 $ 985,909 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) 204,851 10,516 7,976 — 223,343 Foreign currency translation adjustment 28,668 — — — 28,668 Balance at December 31, 2017: Goodwill 233,519 158,699 361,819 260,540 1,014,577 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) 233,519 10,516 7,976 — 252,011 MiR acquisition 135,976 — — — 135,976 Energid acquisition 14,394 — — — 14,394 Foreign currency translation adjustment (20,531 ) — — — (20,531 ) Balance at December 31, 2018: Goodwill 363,358 158,699 361,819 260,540 1,144,416 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) $ 363,358 $ 10,516 $ 7,976 $ — $ 381,850 |
Schedule of Amortizable Intangible Assets | Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: December 31, 2018 Gross Carryin Amount (1)(2) Accumulated Amortization (2) Foreign Currency Translation Adjustment Net Carrying Amount (in thousan ds) Developed technology $ 336,308 $ (252,080 ) $ (4,079 ) $ 80,149 Customer relationships 97,153 (83,448 ) (340 ) 13,365 Tradenames and trademarks 64,420 (31,653 ) (799 ) 31,968 Non-compete agreement 320 (320 ) — — Backlog 30 (30 ) — — Total intangible assets $ 498,231 $ (367,531 ) $ (5,218 ) $ 125,482 December 31, 2017 Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Adjustment 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 agreement 320 (260 ) — 60 Total intangible assets $ 414,038 $ (337,155 ) $ 2,205 $ 79,088 |
Wireless Test | |
Schedule of Estimated Intangible Assets Amortization Expense | Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2019 $ 38,496 2020 24,186 2021 13,945 2022 13,052 2023 12,785 Thereafter 23,018 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Non-Cancelable Operating Lease Commitments | The following table reflects Teradyne’s non-cancelable Non-cancelable Lease Commitments (in thousands) 2019 $ 19,570 2020 18,293 2021 13,578 2022 9,693 2023 5,449 Beyond 2024 9,472 Total $ 76,055 |
Net Income (Loss) per Common _2
Net Income (Loss) per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Computation of Basic and Diluted Net Income (Loss) Per Common Share | The following table sets forth the computation of basic and diluted net income (loss) per common share: 2018 2017 2016 (in thousands, except per share amounts) Net income (loss) for basic and diluted net income per share $ 451,779 $ 257,692 $ (43,421 ) Weighted average common shares-basic 187,672 198,069 202,578 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 2,749 1,298 — Convertible note hedge warrant shares (2) 485 112 — Restricted stock units 1,385 1,800 — Stock options 278 335 0 Employee stock purchase rights 36 27 0 Dilutive potential common shares 4,933 3,572 — Weighted average common shares-diluted 192,605 201,641 202,578 Net income (loss) per common share-basic $ 2.41 $ 1.30 $ (0.21 ) Net income (loss) per common share-diluted $ 2.35 $ 1.28 $ (0.21 ) (1) Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.70, 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 $39.78, 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) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Pension Plans | |
Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations | The December 31 balances of these defined benefit pension plans assets and obligations are shown below: 2018 2017 United States Foreign United States Foreign (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 363,026 $ 39,353 $ 353,616 $ 60,738 Service cost 2,196 786 2,239 818 Interest cost 8,940 687 13,151 852 Actuarial (gain) loss (30,136 ) 773 12,702 262 Benefits paid (14,793 ) (741 ) (18,682 ) (994 ) Retiree annuity purchase (151,341 ) — — — Liability loss due to settlement 345 — — — Settlements — — — (28,560 ) Admin expenses paid — — — (40 ) Non-U.S. — (1,712 ) — 6,277 End of year 178,237 39,146 363,026 39,353 Change in plan assets: Fair value of plan assets: Beginning of year 324,506 1,307 307,304 27,571 Company contributions 2,587 822 4,462 883 Actual return on plan assets (16,658 ) 50 31,422 737 Benefits paid (14,793 ) (741 ) (18,682 ) (994 ) Retiree annuity purchase (151,341 ) — — — Settlements — — — (28,560 ) Admin expenses paid — — — (40 ) Non-U.S. — (38 ) — 1,710 End of year 144,301 1,400 324,506 1,307 Funded status $ (33,936 ) $ (37,746 ) $ (38,520 ) $ (38,046 ) |
Amounts Recorded within Statement of Financial Position | The following table provides amounts recorded within the account line items of the statements of financial position as of December 31: 2018 2017 United States Foreign United States Foreign (in thousands) Retirement plans assets $ 16,883 $ — $ 17,491 $ — Accrued employees’ compensation and withholdings (2,676 ) (852 ) (2,524 ) (863 ) Retirement plans liabilities (48,143 ) (36,894 ) (53,487 ) (37,183 ) Funded status $ (33,936 ) $ (37,746 ) $ (38,520 ) $ (38,046 ) |
Amounts Recognized in Accumulated Other Comprehensive Income | The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2018 2017 United States Foreign United States Foreign (in thousands) Prior service cost, before tax $ — $ — $ 58 $ — Deferred taxes 560 — 539 — Total recognized in other comprehensive income, net of tax $ 560 $ — $ 597 $ — |
Pension Plans with Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31: 2018 2017 United States Foreign United States Foreign (in millions) Projected benefit obligation $ 50.8 $ 39.1 $ 56.0 $ 39.4 Accumulated benefit obligation 48.6 35.6 51.6 34.7 Fair value of plan assets — 1.4 — 1.3 |
Net Periodic Pension and Postretirement Benefit Costs | For the years ended December 31, 2018, 2017, and 2016, Teradyne’s net periodic pension (income) cost was comprised of the following: 2018 2017 2016 United States Foreign United States Foreign United States Foreign (in thousands) Components of Net Periodic Pension (Income) Cost: Service cost $ 2,196 $ 786 $ 2,239 $ 818 $ 2,302 $ 761 Interest cost 8,940 687 13,151 852 13,630 1,185 Expected return on plan assets (9,049 ) (19 ) (12,008 ) (165 ) (13,830 ) (443 ) Amortization of prior service cost 58 — 70 — 96 — Net actuarial (gain) loss (4,429 ) 743 (6,712 ) (310 ) (4,013 ) 815 Settlement loss 345 — — — — — Total net periodic pension (income) cost $ (1,939 ) $ 2,197 $ (3,260 ) $ 1,195 $ (1,815 ) $ 2,318 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Reversal of amortization items: Prior service cost (58 ) — (70 ) — (96 ) — Total recognized in other comprehensive income (58 ) — (70 ) — (96 ) — Total recognized in net periodic pension (income) cost and other comprehensive income $ (1,997 ) $ 2,197 $ (3,330 ) $ 1,195 $ (1,911 ) $ 2,318 |
Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation | Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: 2018 2017 2016 United States Foreign United States Foreign United States Foreign Discount rate 3.4 % 1.8 % 3.9 % 1.8 % 4.0 % 2.3 % Expected return on plan assets 4.3 1.5 4.0 2.0 4.8 2.0 Salary progression rate 2.3 2.7 2.6 2.7 2.7 3.2 Weighted Average Assumptions to Determine Pension Obligations at December 31: 2018 2017 United States Foreign United States Foreign Discount rate 4.1 % 1.8 % 3.4 % 1.8 % Salary progression rate 2.3 2.6 2.3 2.7 |
Weighted Average Pension Asset Allocations by Category | The following table provides weighted average pension asset allocation by asset category at December 31, 2018 and 2017: 2018 2017 United States Foreign United States Foreign Fixed income securities 94.0 % — % 88.1 % — % Equity securities 5.0 — 9.9 — Other 1.0 100.0 2.0 100.0 100.0 % 100.0 % 100.0 % 100.0 % |
Target Asset Allocation and Index for Each Asset Category | The target asset allocation and the index for each asset category for the U.S. Plan, per the investment policy, are as follows: Asset Category: Policy Index: Target Allocation U.S. corporate fixed income Barclays U.S. Corporate A or Better Index 75 % Global equity MSCI World Minimum Volatility Index 5 U.S. government fixed income Barclays Index 14 High yield fixed income Barclays U.S. Corporate High Yield 2% Issuer Cap Index 5 Cash Citigroup Three Month U.S. Treasury Bill Index 1 |
Changes in Fair Value of Pension Assets | The fair value of pension plan assets by asset category and by level at December 31, 2018 and December 31, 2017 were as follows: December 31, 2018 United States Foreign Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) Fixed income securities: Corporate debt securities $ — $ 115,424 $ — $ 115,424 $ — $ — $ — $ — U.S. government securities — 20,176 — 20,176 — — — — Global equity — 7,252 — 7,252 — — — — Other — — — — — 1,400 — 1,400 Cash and cash equivalents 1,449 — — 1,449 — — — — Total $ 1,449 $ 142,852 $ — $ 144,301 $ — $ 1,400 $ — $ 1,400 December 31, 2017 United States Foreign Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) Fixed income securities: Corporate debt securities $ — $ 260,294 $ — $ 260,294 $ — $ — $ — $ — U.S. government securities — 25,709 — 25,709 — — — — Global equity — 32,120 — 32,120 — — — — Group annuity insurance contracts — — 3,166 3,166 — — — — Other — — — — — 1,307 — 1,307 Cash and cash equivalents 3,217 — — 3,217 — — — — Total $ 3,217 $ 318,123 $ 3,166 $ 324,506 $ — $ 1,307 $ — $ 1,307 |
Expected Future Benefit Payments | Future benefit payments are expected to be paid as follows: United States Foreign (in thousands) 2019 $ 6,903 $ 874 2020 7,133 1,522 2021 8,026 905 2022 8,863 888 2023 9,584 1,199 2024-2028 57,120 5,921 |
Group Annuity Insurance Contracts | |
Changes in Fair Value of Pension Assets | Changes in the fair value of Level 3 group annuity insurance contracts for the years ended December 31, 2018 and 2017 were as follows: Group Annuity Insurance Contracts (in thousands) Balance at December 31, 2016 $ 29,456 Settlements (28,560 ) Interest and market value adjustments 959 Benefits paid (244 ) Other (61 ) Non-U.S. 1,616 Balance at December 31, 2017 3,166 Transfer out of Level 3 (2,658 ) Purchases of retiree annuity insurance contracts (512 ) Interest and market value adjustments 59 Benefits paid (40 ) Other (15 ) Balance at December 31, 2018 $ — |
Postretirement Benefit Plans | |
Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligations | The December 31 balances of the postretirement assets and obligations are shown below: 2018 2017 (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 6,177 $ 5,510 Service cost 39 34 Interest cost 196 201 Actuarial loss 25 398 Special termination benefits 3,708 591 Benefits paid (889 ) (557 ) End of year 9,256 6,177 Change in plan assets: Fair value of plan assets: Beginning of year — — Company contributions 889 557 Benefits paid (889 ) (557 ) End of year — — Funded status $ (9,256 ) $ (6,177 ) |
Amounts Recorded within Statement of Financial Position | The following table provides amounts recorded within the account line items of financial position as of December 31: 2018 2017 (in thousands) Accrued employees’ compensation and withholdings $ (1,310 ) $ (591 ) Retirement plans liability (7,946 ) (5,586 ) Funded status $ (9,256 ) $ (6,177 ) |
Amounts Recognized in Accumulated Other Comprehensive Income | The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2018 2017 (in thousands) Prior service credit, before tax $ (249 ) $ (622 ) Deferred taxes (1,641 ) (1,472 ) Total recognized in other comprehensive income, net of tax $ (1,890 ) $ (2,094 ) |
Net Periodic Pension and Postretirement Benefit Costs | For the years ended December 31, 2018, 2017, and 2016, Teradyne’s net periodic postretirement benefit cost (income) was comprised of the following: 2018 2017 2016 (in thousands) Components of Net Periodic Postretirement Benefit Cost (income): Service cost $ 39 $ 34 $ 37 Interest cost 196 201 218 Amortization of prior service credit (373 ) (496 ) (607 ) Net actuarial loss 25 398 5 Special termination benefits 3,708 591 — Total net periodic postretirement benefit cost (income) 3,595 728 (347 ) Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Prior service cost — — (93 ) Reversal of amortization items: Prior service credit 373 496 607 Total recognized in other comprehensive income 373 496 514 Total recognized in net periodic postretirement benefit cost (income) and other comprehensive income $ 3,968 $ 1,224 $ 167 |
Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation | Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1: 2018 2017 2016 Discount rate 3.4 % 3.9 % 3.9 % Initial health care cost trend rate 7.9 7.3 7.5 Ultimate health care cost trend rate 4.5 5.0 5.0 Year in which ultimate health care cost trend rate is reached 2026 2023 2023 Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31: 2018 2017 2016 Discount rate 4.0 % 3.4 % 3.9 % Initial medical trend 7.5 7.9 7.3 Ultimate health care trend 4.5 4.5 5.0 Medical cost trend rate decrease to ultimate rate in year 2026 2026 2023 |
Expected Future Benefit Payments | Future benefit payments are expected to be paid as follows: Benefit Payments (in thousands) 2019 $ 1,310 2020 1,234 2021 1,181 2022 984 2023 811 2024-2028 2,364 |
One Percentage Point Change in Assumed Health Care Cost Trend Rates for Year | A one percentage point change in the assumed health care cost trend rates for the year ended December 31, 2018 would have the following effects: 1 Percentage Point Increase 1 Percentage Point Decrease (in thousands) Effect on total service and interest cost components $ 7 $ (7 ) Effect on postretirement benefit obligations 181 (171 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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: 2018 2017 2016 Risk-free interest rate 2.2 % 1.5 % 1.0 % Teradyne volatility-historical 26.8 % 26.6 % 27.0 % NYSE Composite Index volatility-historical 12.4 % 13.4 % 13.1 % Dividend yield 0.8 % 1.0 % 1.2 % |
Fair Value of Stock Options Using Assumptions | The fair value of the stock options at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions: 2018 2017 2016 Expected life (years) 5.0 5.0 5.0 Risk-free interest rate 2.4 % 2.0 % 1.4 % Volatility-historical 26.4 % 27.8 % 32.9 % Dividend yield 0.80 % 1.00 % 1.20 % |
Stock Compensation Plan Activity | Stock compensation plan activity for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 (in thousands) Restricted Stock Units: Non-vested 3,174 3,778 4,070 Awarded 790 939 1,471 Vested (1,382 ) (1,434 ) (1,530 ) Forfeited (128 ) (109 ) (233 ) Non-vested 2,454 3,174 3,778 Stock Options: Outstanding at January 1 531 926 1,121 Granted 69 111 130 Exercised (94 ) (501 ) (324 ) Expired — (5 ) (2 ) Outstanding at December 31 506 531 926 Vested and expected to vest at December 31 506 531 926 Exercisable at December 31 256 233 598 |
Share Based Compensation Total Shares Available | Total shares available for the years 2018, 2017, and 2016: 2018 2017 2016 (in thousands) Shares available: Available for grant at January 1 8,605 9,546 10,914 Options granted (69 ) (111 ) (130 ) Restricted stock units awarded (790 ) (939 ) (1,471 ) Restricted stock units forfeited 128 109 233 Available for grant at December 31 7,874 8,605 9,546 |
Weighted-Average Restricted Stock Unit Award Date Fair Value | Weighted average restricted stock unit award date fair value information for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 Non-vested $ 21.71 $ 18.27 $ 17.66 Awarded 45.99 28.91 18.95 Vested 20.20 17.90 17.36 Forfeited 24.67 20.35 17.80 Non-vested $ 29.22 $ 21.71 $ 18.27 |
Restricted Stock Unit Awards Aggregate Intrinsic Value | Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 (in thousands) Vested $ 63,688 $ 40,649 $ 30,008 Outstanding 77,015 132,875 95,952 Expected to vest 77,187 130,594 91,871 |
Restricted Stock Units Weighted Average Remaining Contractual Terms | Restricted stock units weighted average remaining contractual terms (in years) information at December 31, for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 Outstanding 0.92 1.00 1.04 Expected to vest 0.91 0.99 1.03 |
Weighted Average Stock Options Exercise Price | Weighted average stock options exercise price information for the year ended December 31, 2018 is as follows: 2018 Outstanding at January 1 $ 13.92 Options granted 47.70 Options exercised 10.89 Outstanding at December 31 19.06 Exercisable at December 31 8.31 |
Stock Option Aggregate Intrinsic Value Information | Stock option aggregate intrinsic value information for the years ended December 31, 2018, 2017, and 2016 is as follows: 2018 2017 2016 (in thousands) Exercised $ 2,960 $ 8,035 $ 3,729 Outstanding 7,359 14,831 12,468 Vested and expected to vest 7,359 14,831 12,468 Exercisable 5,905 9,076 10,217 |
Stock Options Weighted Average Remaining Contractual Terms | Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 Outstanding 3.6 4.1 3.9 Vested and expected to vest 3.6 4.1 3.9 Exercisable 2.4 2.8 3.2 |
Significant Option Groups Outstanding | Significant option groups outstanding at December 31, 2018 and related weighted average price and remaining contractual life information follow: Options Outstanding Options Exercisable Range Of Exercise Prices Weighted- Average Remaining Contractual Life (Years) Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price (shares in thousands) $1.48 – $2.58 1.23 67 $ 1.83 67 $ 1.83 $2.67 – $3.28 2.20 103 2.69 103 2.69 $7.71 – $19.43 3.41 166 18.59 68 18.02 $28.56 – $47.70 5.62 170 36.30 18 28.56 506 $ 19.06 256 $ 8.31 |
Effect to Income (Loss) from Operations for Recording Stock-Based Compensation | The following table provides the effect to income from operations for recording stock-based compensation for the years ended December 31, 2018, 2017, and 2016: 2018 2017 2016 (in thousands) Cost of revenues $ 3,129 $ 3,212 $ 3,153 Engineering and development 9,181 9,370 9,458 Selling and administrative 21,267 21,515 18,139 Stock-based compensation 33,577 34,097 30,750 Income tax benefit (12,036 ) (10,462 ) (8,752 ) Total stock-based compensation expense after income taxes $ 21,541 $ 23,635 $ 21,998 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Income (Loss) Before Income Taxes and Provision (Benefit) for Income Taxes from Operations | The components of income (loss) before income taxes and the provision (benefit) for income taxes as shown in the consolidated statements of operations were as follows: 2018 2017 2016 (in thousands) Income (loss) before income taxes: U.S. $ 189,691 $ 76,699 $ (341,018 ) Non-U.S. 278,110 447,713 285,958 $ 467,801 $ 524,412 $ (55,060 ) Provision (benefit) for income taxes: Current: U.S. Federal $ (59,122 ) $ 162,679 $ 7,750 Non-U.S. 45,083 64,313 41,579 State 1,721 2,623 1,968 (12,318 ) 229,615 51,297 Deferred: U.S. Federal 29,252 43,687 (51,482 ) Non-U.S. (1,243 ) (6,476 ) (9,240 ) State 331 (106 ) (2,214 ) 28,340 37,105 (62,936 ) Total provision (benefit) for income taxes: $ 16,022 $ 266,720 $ (11,639 ) |
Reconciliation of Effective Tax Rate | A reconciliation of the effective tax rate for the years 2018, 2017, and 2016 is as follows: 2018 2017 2016 U.S. statutory federal tax rate 21.0 % 35.0 % 35.0 % U.S. transition tax (10.5 ) 28.7 — U.S. foreign derived intangible income (1.8 ) — — Impact of rate change on deferred tax 0.3 6.9 — Uncertain tax positions 1.0 1.7 (2.6 ) Foreign taxes (2.0 ) (16.3 ) 78.0 Foreign tax credits (2.2 ) (2.2 ) 49.1 U.S. research and development credit (2.2 ) (1.6 ) 15.8 Equity compensation (1.2 ) (0.8 ) (2.7 ) State income taxes, net of federal tax benefit 0.1 (0.4 ) 2.3 Domestic production activities deduction — (0.3 ) 2.3 Goodwill impairment — — (162.1 ) U.S. alternative minimum tax credit — — 3.7 Inventory cost capitalization — — 1.8 Other, net 0.9 0.2 0.5 3.4 % 50.9 % 21.1 % |
Deferred Tax Assets (Liabilities) | Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2018 and 2017 were as follows: 2018 2017 (in thousands) Deferred tax assets: Tax credits $ 69,091 $ 76,083 Accruals 23,449 27,508 Pension liabilities 20,826 22,602 Inventory valuations 18,514 17,793 Deferred revenue 9,130 9,016 Equity compensation 7,190 6,861 Vacation accrual 4,772 4,747 Net operating loss carryforwards 3,658 5,440 Marketable securities 962 — Other 685 713 Gross deferred tax assets 158,277 170,763 Less: valuation allowance (69,852 ) (63,919 ) Total deferred tax assets $ 88,425 $ 106,844 Deferred tax liabilities: Intangible assets $ (24,211 ) $ (16,120 ) Depreciation (14,028 ) (12,293 ) Marketable securities — (1,125 ) Total deferred tax liabilities $ (38,239 ) $ (29,538 ) Net deferred assets $ 50,186 $ 77,306 |
Operating Loss Carryforwards | At December 31, 2018, Teradyne had operating loss carryforwards that expire in the following years: State Operating Loss Carryforwards Foreign Operating Loss Carryforwards (in thousands) 2019 $ 258 $ — 2020 269 — 2021 2,977 — 2022 5,749 — 2023 6,241 — 2024-2028 4,672 — 2029-2033 22,724 44 Beyond 2033 5,305 72 Non-expiring — 4,389 Total $ 48,195 $ 4,505 |
Unrecognized Tax Benefits | Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2018, 2017, and 2016 were as follows: 2018 2017 2016 (in thousands) Beginning balance, as of January 1 $ 36,263 $ 38,958 $ 36,792 Additions: Tax positions for current year 4,716 8,208 9,766 Tax positions for prior years 2,626 199 187 Reductions: Tax positions for prior years (153 ) (10,573 ) (1,960 ) Expiration of statutes (57 ) (325 ) (3,532 ) Settlements with tax authorities — (204 ) (2,295 ) Ending balance as of December 31 $ 43,395 $ 36,263 $ 38,958 |
Operating Segment, Geographic_2
Operating Segment, Geographic and Significant Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Information | Segment information for the years ended December 31, 2018, 2017, and 2016 is as follows: Semiconductor Test System Test Industrial Automation Wireless Test Corporate And Other Consolidated (in thousands) 2018 Revenues $ 1,492,417 $ 216,132 $ 261,452 $ 132,006 $ (1,205 ) $ 2,100,802 Income (loss) before taxes (1)(2) 397,645 48,857 7,670 29,052 (15,423 ) 467,801 Total assets (3) 669,452 88,098 607,502 77,570 1,263,984 2,706,606 Property additions 94,496 3,469 11,188 5,226 — 114,379 Depreciation and amortization expense 58,095 6,430 36,755 5,328 6,616 113,224 2017 Revenues $ 1,662,549 $ 192,135 $ 170,056 $ 111,866 $ — $ 2,136,606 Income (loss) before taxes (1)(2) 491,361 10,305 8,763 17,350 (3,368 ) 524,411 Total assets (3) 597,480 97,018 368,037 59,912 1,987,098 3,109,545 Property additions 87,920 5,976 7,044 4,435 — 105,375 Depreciation and amortization expense 58,901 6,646 25,711 5,392 11,425 108,075 2016 Revenues $ 1,368,169 $ 189,846 $ 99,031 $ 96,204 $ — $ 1,753,250 Income (loss) before taxes (1)(2) 311,939 28,916 (16,783 ) (371,409 ) (7,723 ) (55,060 ) Total assets (3) 557,546 110,361 317,635 62,366 1,714,585 2,762,493 Property additions 70,543 3,788 6,755 4,186 — 85,272 Depreciation and amortization expense 58,087 6,551 26,869 25,921 2,581 120,009 (1) Included in Corporate and Other are: contingent consideration adjustments, pension and postretirement plans actuarial gains (losses), severance charges, impairment of fixed assets and expenses related to the Japan earthquake, property insurance recovery, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations and acquisition related charges. (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. In 2016, loss before income taxes in Wireless Test also included charges related to goodwill and acquired intangible assets impairment. (3) Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
Revenues by Country | Information as to Teradyne’s revenues by country is as follows: 2018 2017 2016 (in thousands) Revenues from customers (1): Taiwan $ 516,322 $ 687,031 $ 653,076 China 348,942 260,451 174,876 United States 282,869 252,516 221,948 Europe 223,207 163,715 117,671 Korea 163,224 206,819 147,882 Japan 158,281 169,093 135,978 Malaysia 122,797 124,048 103,472 Singapore 108,618 101,085 73,172 Philippines 77,996 105,850 54,705 Thailand 59,184 29,566 43,097 Rest of the World 39,362 36,432 27,373 $ 2,100,802 $ 2,136,606 $ 1,753,250 (1) Revenues attributable to a country are based on location of customer site. |
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area: United States Foreign(1) Total (in thousands) December 31, 2018 $ 209,368 $ 70,453 $ 279,821 December 31, 2017 $ 198,855 $ 69,592 $ 268,447 (1) As of December 31, 2018 and 2017, long-lived assets attributable to Singapore were $19.4 million and $23.6 million, respectively. |
Wireless Test | |
Schedule of Segment Reporting Information by Segment Charges | Included in the Wireless Test segment are charges in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Cost of revenues—inventory charge $ 2,565 $ 2,190 $ 7,207 Restructuring and other—lease impairment — 972 — Restructuring and other—employee severance — — 2,650 Goodwill impairment charge — — 254,946 Intangible assets impairment charge — — 83,339 |
Semiconductor Test | |
Schedule of Segment Reporting Information by Segment Charges | Included in the Semiconductor Test segment are charges in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Restructuring and other—employee severance $ 8,429 $ 1,779 $ 2,860 Cost of revenues—inventory charge 6,822 4,606 9,656 Restructuring and other—impairment of fixed assets — 1,124 — |
System Test | |
Schedule of Segment Reporting Information by Segment Charges | Included in the System Test segment are charges in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Cost of revenues—inventory charge $ 1,175 $ 1,918 $ 630 |
Industrial Automation | |
Schedule of Segment Reporting Information by Segment Charges | Included in the Industrial Automation segment are charges in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Restructuring and other—acquisition related expenses and compensation $ 1,163 $ — $ — Cost of revenues—inventory charge 680 — — Restructuring and other—employee severance — 1,414 585 |
Corporate And Eliminations | |
Schedule of Segment Reporting Information by Segment Charges | Included in Corporate and Other are charges and credits in the following accounts: For the Year Ended December 31, 2018 2017 2016 (in thousands) Restructuring and other—MiR contingent consideration adjustment $ 17,666 $ — $ — Restructuring and other—Universal Robots contingent consideration adjustment (16,679 ) 7,820 15,346 Restructuring and other—acquisition related expenses 3,422 — — Restructuring and other 872 — — Restructuring and other—expense related to Japan earthquake and impairment of fixed assets — 755 5,051 Restructuring and other—property insurance recovery — (5,064 ) (5,051 ) |
Supplementary Information (Tabl
Supplementary Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Consolidated Quarterly Statements of Operations | The following sets forth certain unaudited consolidated quarterly statements of operations data for each of Teradyne’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of Teradyne and the notes thereto included elsewhere herein. 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2)(5) (3)(5) (4)(5) (in thousands, except per share amounts) Revenues: Products $ 403,925 $ 434,051 $ 470,994 $ 420,652 Services 83,542 92,878 95,854 98,906 Total revenues 487,467 526,929 566,848 519,558 Cost of revenues: Cost of products 180,958 180,777 195,339 170,064 Cost of services 36,677 38,818 37,816 39,959 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 217,635 219,595 233,155 210,023 Gross profit 269,832 307,334 333,693 309,535 Operating expenses: Selling and administrative 90,505 99,410 100,202 100,552 Engineering and development 74,408 75,342 77,049 74,706 Acquired intangible assets amortization 7,698 9,793 11,142 10,558 Restructuring and other (313 ) 2,389 1,710 11,446 Total operating expenses 172,298 186,934 190,103 197,262 Income (loss) from operations 97,534 120,400 143,590 112,273 Non-operating Interest income (5,981 ) (5,427 ) (6,213 ) (9,083 ) Interest expense 6,890 5,639 5,557 13,182 Other (income) expense, net 805 176 3,405 (2,954 ) Income (loss) before income taxes 95,820 120,012 140,841 111,128 Income tax provision (benefit) 8,846 18,975 20,863 (32,662 ) Net income (loss) $ 86,974 $ 101,037 $ 119,978 $ 143,790 Net income (loss) per common share—basic $ 0.45 $ 0.53 $ 0.65 $ 0.80 Net income (loss) per common share—diluted $ 0.43 $ 0.52 $ 0.63 $ 0.79 Cash dividend declared per common share $ 0.09 $ 0.09 $ 0.09 $ 0.09 (1) Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. (2) Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. (3) Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. (4) Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. (5) Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2)(5) (3) (4)(5) (in thousands, except per share amounts) Revenues: Products $ 373,204 $ 610,356 $ 412,854 $ 388,282 Services 83,709 86,545 90,524 91,133 Total revenues 456,913 696,901 503,378 479,415 Cost of revenues: Cost of products 154,883 267,752 169,661 168,672 Cost of services 37,014 38,511 38,848 39,813 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 191,897 306,263 208,509 208,485 Gross profit 265,016 390,638 294,869 270,930 Operating expenses: Selling and administrative 84,792 90,111 86,130 87,880 Engineering and development 75,978 82,270 76,986 72,070 Acquired intangible assets amortization 7,952 8,166 7,028 7,384 Restructuring and other 2,511 2,288 (4,407 ) 8,970 Total operating expenses 171,233 182,835 165,737 176,304 Income from operations 93,783 207,803 129,132 94,626 Non-operating Interest income (3,520 ) (3,292 ) (4,517 ) (6,476 ) Interest expense 5,402 5,509 5,372 5,380 Other (income) expense, net (115 ) (1,291 ) 840 (2,362 ) Income before income taxes 92,016 206,877 127,437 98,084 Income tax provision 6,795 31,901 24,017 204,007 Net income (loss) $ 85,221 $ 174,976 $ 103,420 $ (105,923 ) Net income (loss) per common share—basic $ 0.43 $ 0.88 $ 0.52 $ (0.54 ) Net income (loss) per common share—diluted $ 0.42 $ 0.87 $ 0.52 $ (0.54 ) Cash dividend declared per common share $ 0.07 $ 0.07 $ 0.07 $ 0.07 (1) Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. (2) Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. (3) Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. (4) Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. (5) Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. |
The Company - Additional inform
The Company - Additional information (Detail) - USD ($) | Apr. 25, 2018 | Feb. 26, 2018 | Jun. 11, 2015 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Contingent consideration | $ 31,000,000 | |||
Universal Robots (UR) | ||||
Business Acquisition [Line Items] | ||||
Cash paid to acquire outstanding common and preferred stock | $ 284,000,000 | |||
Arrangement range of outcomes value high | $ 65,000,000 | |||
Energid Technologies Corporation | ||||
Business Acquisition [Line Items] | ||||
Total purchase price | $ 28,000,000 | |||
Mobile Industrial Robots (MiR) | ||||
Business Acquisition [Line Items] | ||||
Cash paid to acquire outstanding common and preferred stock | $ 145,200,000 | |||
Arrangement range of outcomes value high | $ 115,000,000 | |||
Total purchase price | 197,778,000 | |||
Contingent consideration | $ 52,600,000 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | [3],[4] | Jul. 01, 2018 | [3],[5] | Apr. 01, 2018 | [6] | Dec. 31, 2017 | Oct. 01, 2017 | [8],[9] | Jul. 02, 2017 | [8],[10] | Apr. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Revenue recognized in accordance with ASC 606 | [1] | $ 2,100,802 | $ 2,136,606 | $ 1,753,250 | |||||||||||||||||
Revenue on leases | $ 12,000 | ||||||||||||||||||||
Standard warranty period | 12 months | ||||||||||||||||||||
Depreciation over life to cost of revenues and selling and administrative expenses, years | 6 years | ||||||||||||||||||||
Net book value of internally manufactured test systems sold | $ 3,800 | 3,600 | 11,400 | ||||||||||||||||||
Cumulative effect adjustment to increase retained earnings and deferred tax assets | $ 12,679 | 12,679 | |||||||||||||||||||
Income tax provision (benefit) | (32,662) | [2],[3] | $ 20,863 | $ 18,975 | $ 8,846 | $ 204,007 | [7],[8] | $ 24,017 | $ 31,901 | $ 6,795 | [11] | 16,022 | 266,720 | (11,639) | |||||||
Advertising costs | 15,400 | 9,100 | 6,400 | ||||||||||||||||||
Losses (gains) on foreign currency transactions | (2,400) | 2,900 | (8,000) | ||||||||||||||||||
Trade Accounts Receivable | 52,200 | 5,400 | 52,200 | 5,400 | |||||||||||||||||
Deferred Revenue And Customer Advances | $ 110,461 | $ 113,741 | $ 110,461 | 113,741 | |||||||||||||||||
Short-term Contract with Customer [Member] | |||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Revenue, Remaining Performance Obligation, Percentage | 70.00% | 70.00% | |||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 12 months | ||||||||||||||||||||
Long-term Contract with Customer [Member] | |||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Revenue, Remaining Performance Obligation, Percentage | 25.00% | 25.00% | |||||||||||||||||||
Long-term Contract with Customer [Member] | Maximum [Member] | |||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 3 years | ||||||||||||||||||||
Long-term Contract with Customer [Member] | Minimum [Member] | |||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 1 year | ||||||||||||||||||||
ASU 2014-09 | |||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Revenue recognized in accordance with ASC 606 | $ 2,088,800 | ||||||||||||||||||||
ASU 2016-09 | |||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Cumulative effect adjustment to increase retained earnings and deferred tax assets | $ 39 | ||||||||||||||||||||
Income tax provision (benefit) | (6,300) | ||||||||||||||||||||
ASU 2017-07 | |||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Increase (decrease) in income from operations | $ (5,000) | $ (3,000) | |||||||||||||||||||
Retained Earnings | |||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Cumulative effect adjustment to increase retained earnings and deferred tax assets | $ 12,679 | $ 12,679 | |||||||||||||||||||
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) | ||||||||||||||||||||
[1] | Revenues attributable to a country are based on location of customer site. | ||||||||||||||||||||
[2] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||||
[3] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||
[4] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||||
[5] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | ||||||||||||||||||||
[6] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | ||||||||||||||||||||
[7] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | ||||||||||||||||||||
[8] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||
[9] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | ||||||||||||||||||||
[10] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | ||||||||||||||||||||
[11] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
Disaggregated Revenue by Primar
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disaggregation of Revenue [Line Items] | ||||
Total | [1] | $ 2,100,802 | $ 2,136,606 | $ 1,753,250 |
Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,492,417 | 1,662,549 | 1,368,169 | |
System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 216,132 | 192,135 | 189,846 | |
Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 261,452 | 170,056 | 99,031 | |
Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 132,006 | $ 111,866 | $ 96,204 | |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | (1,205) | |||
Americas | Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 219,755 | |||
Americas | Point in Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 17,730 | |||
Americas | Point in Time | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | (1,205) | |||
Americas | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 68,624 | |||
Americas | Over Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,436 | |||
Europe, Middle East and Africa | Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 200,939 | |||
Europe, Middle East and Africa | Point in Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,821 | |||
Europe, Middle East and Africa | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 35,038 | |||
Europe, Middle East and Africa | Over Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,147 | |||
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 12,037 | |||
Asia Pacific | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 760 | |||
Asia Pacific | Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,394,477 | |||
Asia Pacific | Point in Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 100,985 | |||
Asia Pacific | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 169,932 | |||
Asia Pacific | Over Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 6,127 | |||
SOC | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,218,949 | |||
SOC | Americas | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 43,398 | |||
SOC | Americas | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 35,100 | |||
SOC | Europe, Middle East and Africa | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 50,988 | |||
SOC | Europe, Middle East and Africa | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 21,584 | |||
SOC | Asia Pacific | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10,885 | |||
SOC | Asia Pacific | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 916,107 | |||
SOC | Asia Pacific | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 140,887 | |||
Memory | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 273,468 | |||
Memory | Americas | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 14,579 | |||
Memory | Americas | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,774 | |||
Memory | Europe, Middle East and Africa | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 9,726 | |||
Memory | Europe, Middle East and Africa | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,125 | |||
Memory | Asia Pacific | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 235,061 | |||
Memory | Asia Pacific | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10,203 | |||
Defense/Aerospace | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 92,737 | |||
Defense/Aerospace | Americas | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 59,246 | |||
Defense/Aerospace | Americas | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 24,577 | |||
Defense/Aerospace | Europe, Middle East and Africa | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,056 | |||
Defense/Aerospace | Europe, Middle East and Africa | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,124 | |||
Defense/Aerospace | Asia Pacific | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,769 | |||
Defense/Aerospace | Asia Pacific | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 965 | |||
Storage Test | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 66,648 | |||
Storage Test | Americas | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 767 | |||
Storage Test | Asia Pacific | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 58,004 | |||
Storage Test | Asia Pacific | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 7,877 | |||
Production Board Test | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 56,747 | |||
Production Board Test | Americas | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 9,082 | |||
Production Board Test | Americas | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,091 | |||
Production Board Test | Europe, Middle East and Africa | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 16,733 | |||
Production Board Test | Europe, Middle East and Africa | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 6,467 | |||
Production Board Test | Asia Pacific | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 392 | |||
Production Board Test | Asia Pacific | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 17,761 | |||
Production Board Test | Asia Pacific | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,221 | |||
Universal Robots (UR) | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 234,095 | |||
Universal Robots (UR) | Americas | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 68,289 | |||
Universal Robots (UR) | Americas | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 649 | |||
Universal Robots (UR) | Europe, Middle East and Africa | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 105,776 | |||
Universal Robots (UR) | Europe, Middle East and Africa | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,000 | |||
Universal Robots (UR) | Asia Pacific | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 57,830 | |||
Universal Robots (UR) | Asia Pacific | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 551 | |||
Mobile Industrial Robots (MiR) | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 24,115 | |||
Mobile Industrial Robots (MiR) | Americas | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 7,326 | |||
Mobile Industrial Robots (MiR) | Europe, Middle East and Africa | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10,839 | |||
Mobile Industrial Robots (MiR) | Asia Pacific | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 5,950 | |||
Energid Technologies Corporation | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,242 | |||
Energid Technologies Corporation | Americas | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 543 | |||
Energid Technologies Corporation | Americas | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 997 | |||
Energid Technologies Corporation | Europe, Middle East and Africa | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,591 | |||
Energid Technologies Corporation | Asia Pacific | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10 | |||
Energid Technologies Corporation | Asia Pacific | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 101 | |||
[1] | Revenues attributable to a country are based on location of customer site. |
Information about Contract Liab
Information about Contract Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue and customer advances | $ 77,711 | $ 83,614 | |
Long-term deferred revenue and customer advances | 32,750 | $ 30,127 | |
ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Deferred revenue and customer advances | 73,593 | $ 76,638 | |
Long-term deferred revenue and customer advances | 22,447 | 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 | (4,118) | 1,073 | |
Long-term deferred revenue and customer advances | $ (10,303) | $ 11,902 |
Summarize Impact of ASC 606 to
Summarize Impact of ASC 606 to Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Accounts receivable, less allowance for doubtful accounts | $ 291,267 | $ 272,783 | |
Inventories, net | 153,541 | 107,525 | |
Deferred tax assets | 70,848 | 84,026 | |
LIABILITIES | |||
Deferred revenue and customer advances | 77,711 | 83,614 | |
Income taxes payable | 36,185 | 59,055 | |
Long-term deferred revenue and customer advances | 32,750 | 30,127 | |
Shareholders' equity | |||
Accumulated deficit | (158,191) | $ 272,013 | |
ASU 2014-09 | |||
Assets | |||
Accounts receivable, less allowance for doubtful accounts | 253,919 | ||
Inventories, net | 164,300 | ||
Deferred tax assets | 66,974 | ||
LIABILITIES | |||
Deferred revenue and customer advances | 73,593 | $ 76,638 | |
Income taxes payable | 31,690 | ||
Long-term deferred revenue and customer advances | 22,447 | 20,848 | |
Shareholders' equity | |||
Accumulated deficit | (169,738) | ||
ASU 2014-09 | Adjustments to Recognize Under Legacy GAAP | |||
Assets | |||
Accounts receivable, less allowance for doubtful accounts | (37,348) | ||
Inventories, net | 10,759 | ||
Deferred tax assets | (3,874) | ||
LIABILITIES | |||
Deferred revenue and customer advances | (4,118) | 1,073 | |
Income taxes payable | (4,495) | ||
Long-term deferred revenue and customer advances | (10,303) | $ 11,902 | |
Shareholders' equity | |||
Accumulated deficit | $ (11,547) |
Summarize Impact of ASC 606 t_2
Summarize Impact of ASC 606 to Condensed Consolidated Statement of Operation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2018 | [2],[3] | Sep. 30, 2018 | [3],[4] | Jul. 01, 2018 | [3],[5] | Apr. 01, 2018 | [6] | Dec. 31, 2017 | [7],[8] | Oct. 01, 2017 | [8],[9] | Jul. 02, 2017 | [8],[10] | Apr. 02, 2017 | [11] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||||||||||
Total revenues | [1] | $ 2,100,802 | $ 2,136,606 | $ 1,753,250 | ||||||||||||||||
Total cost of revenues | 880,408 | |||||||||||||||||||
Income tax provision | $ (32,662) | $ 20,863 | $ 18,975 | $ 8,846 | $ 204,007 | $ 24,017 | $ 31,901 | $ 6,795 | 16,022 | 266,720 | (11,639) | |||||||||
Net income | $ 143,790 | $ 119,978 | $ 101,037 | $ 86,974 | $ (105,923) | $ 103,420 | $ 174,976 | $ 85,221 | $ 451,779 | $ 257,692 | $ (43,421) | |||||||||
Net income per common share: | ||||||||||||||||||||
Basic | $ 0.80 | $ 0.65 | $ 0.53 | $ 0.45 | $ (0.54) | $ 0.52 | $ 0.88 | $ 0.43 | $ 2.41 | $ 1.30 | $ (0.21) | |||||||||
Diluted | $ 0.79 | $ 0.63 | $ 0.52 | $ 0.43 | $ (0.54) | $ 0.52 | $ 0.87 | $ 0.42 | $ 2.35 | $ 1.28 | $ (0.21) | |||||||||
ASU 2014-09 | ||||||||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||||||||||
Total revenues | $ 2,088,800 | |||||||||||||||||||
ASU 2014-09 | Adjustments to Recognize Under Legacy GAAP | ||||||||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||||||||||
Total revenues | (39,184) | |||||||||||||||||||
Total cost of revenues | (10,760) | |||||||||||||||||||
Income tax provision | (4,197) | |||||||||||||||||||
Net income | $ (24,227) | |||||||||||||||||||
Net income per common share: | ||||||||||||||||||||
Basic | $ (0.13) | |||||||||||||||||||
Diluted | $ (0.13) | |||||||||||||||||||
ASU 2014-09 | Legacy GAAP | ||||||||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||||||||||
Total revenues | $ 2,061,618 | |||||||||||||||||||
Total cost of revenues | 869,648 | |||||||||||||||||||
Income tax provision | 11,825 | |||||||||||||||||||
Net income | $ 427,552 | |||||||||||||||||||
Net income per common share: | ||||||||||||||||||||
Basic | $ 2.28 | |||||||||||||||||||
Diluted | $ 2.22 | |||||||||||||||||||
[1] | Revenues attributable to a country are based on location of customer site. | |||||||||||||||||||
[2] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||
[3] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[4] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||
[5] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | |||||||||||||||||||
[6] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | |||||||||||||||||||
[7] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | |||||||||||||||||||
[8] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[9] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | |||||||||||||||||||
[10] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | |||||||||||||||||||
[11] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
Deferred Revenue and Customer A
Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Revenue Arrangement | ||||
Maintenance and training | $ 58,362 | $ 57,256 | ||
Extended warranty | 27,422 | 24,438 | $ 28,200 | $ 30,024 |
Customer advances, undelivered elements and other | 24,677 | 32,047 | ||
Total deferred revenue and customer advances | $ 110,461 | $ 113,741 |
Warranty Accrual Included in Ot
Warranty Accrual Included in Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product Warranty Liability [Line Items] | |||
Balance at beginning of period | $ 8,200 | $ 7,203 | $ 6,925 |
Acquisition | 41 | ||
Accruals for warranties issued during the period | 13,045 | 14,223 | 14,291 |
Accruals related to pre-existing warranties | 921 | (379) | (1,354) |
Settlements made during the period | (14,298) | (12,847) | (12,659) |
Balance at end of period | $ 7,909 | $ 8,200 | $ 7,203 |
Extended Product Warranty of Sh
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product Warranty Liability [Line Items] | |||
Balance at beginning of period | $ 24,438 | $ 28,200 | $ 30,024 |
Deferral of new extended warranty revenue | 23,753 | 20,513 | 19,909 |
Recognition of extended warranty deferred revenue | (20,769) | (24,275) | (21,733) |
Balance at end of period | $ 27,422 | $ 24,438 | $ 28,200 |
Schedule of Prepayments and Oth
Schedule of Prepayments and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid And Other Current Assets [Line Items] | ||
Contract manufacturer and supplier prepayments | $ 131,642 | $ 82,503 |
Prepaid taxes | 9,646 | 5,039 |
Prepaid maintenance and other services | 8,487 | 8,189 |
Other prepayments | 12,744 | 12,386 |
Total prepayments | $ 162,519 | $ 108,117 |
Useful Lives of Assets (Detail)
Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 40 years |
Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 5 years |
Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 10 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Useful lives, description | Lesser of lease term or 10 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 10 years |
Test Systems Manufactured Internally | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 6 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 5 years |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements - Additional Information (Detail) - Scenario, Forecast [Member] $ in Millions | Jan. 31, 2019USD ($) |
Operating Lease, Right-of-Use Asset | $ 50 |
Operating Lease, Liability | $ 60 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | Apr. 25, 2018 | Feb. 26, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Contingent consideration | $ 31,000,000 | $ 31,000,000 | ||||
Revenues | 24,100,000 | |||||
Income (loss) before income taxes | (7,600,000) | |||||
Goodwill | 381,850,000 | 381,850,000 | $ 252,011,000 | $ 223,343,000 | ||
Mobile Industrial Robots (MiR) | ||||||
Business Acquisition [Line Items] | ||||||
Total preliminary purchase price | $ 197,778,000 | |||||
Cash paid to acquire outstanding common and preferred stock | 145,200,000 | |||||
Contingent consideration | 52,600,000 | |||||
Arrangement range of outcomes value high | $ 115,000,000 | 115,000,000 | ||||
Goodwill, not deductible for tax purposes | 136,000,000 | |||||
Net income | 450,559,000 | 243,399,000 | ||||
Goodwill | $ 135,976,000 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 2 months 12 days | |||||
Mobile Industrial Robots (MiR) | Fair Value Adjustment to Inventory | ||||||
Business Acquisition [Line Items] | ||||||
Net income | 400,000 | 2,900,000 | ||||
Mobile Industrial Robots (MiR) | Acquisition Related Costs | ||||||
Business Acquisition [Line Items] | ||||||
Net income | $ 2,900,000 | $ 400,000 | ||||
Energid Technologies Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Total preliminary purchase price | $ 28,000,000 | |||||
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 |
Final Allocation of Purchase Pr
Final Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 25, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 381,850 | $ 252,011 | $ 223,343 | |
Mobile Industrial Robots (MiR) | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 135,976 | |||
Intangible assets | 80,670 | |||
Current assets | 6,039 | |||
Non-current assets | 1,336 | |||
Accounts payable and current liabilities | (7,336) | |||
Long-term deferred tax liabilities | (18,007) | |||
Other long-term liabilities | (900) | |||
Total purchase price | $ 197,778 |
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 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 80,670 | $ 80,700 |
Total intangible assets, estimated useful life, years | 7 years 2 months 12 days | |
Developed technology | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 58,900 | |
Total intangible assets, estimated useful life, years | 7 years | |
Trademarks and tradenames | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 13,240 | |
Total intangible assets, estimated useful life, years | 11 years | |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 8,500 | |
Total intangible assets, estimated useful life, years | 2 years 6 months | |
Customer backlog | ||
Business Acquisition [Line Items] | ||
Total intangible assets, fair value | $ 30 | |
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 2,107,600 | $ 2,148,320 |
Net income | $ 450,559 | $ 243,399 |
Net income per common share, basic | $ 2.40 | $ 1.23 |
Net income per common share, diluted | $ 2.34 | $ 1.21 |
Composition of Inventories, Net
Composition of Inventories, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw material | $ 89,365 | $ 62,668 |
Work-in-process | 31,014 | 19,464 |
Finished goods | 33,162 | 25,393 |
Inventories, net | $ 153,541 | $ 107,525 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Inventory reserves | $ 100.8 | $ 102.9 |
Property Plant and Equipment, N
Property Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 16,561 | $ 16,561 |
Buildings | 105,935 | 98,369 |
Machinery and equipment | 689,770 | 647,961 |
Furniture and fixtures, and software | 90,384 | 88,539 |
Leasehold improvements | 52,536 | 49,540 |
Construction in progress | 6,276 | 13,522 |
Property, Plant and Equipment, Gross, Total | 961,462 | 914,492 |
Less: accumulated depreciation | 681,641 | 646,045 |
Property, plant and equipment, net | $ 279,821 | $ 268,447 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation of property, plant and equipment | $ 67,415 | $ 66,122 | $ 64,782 |
Machinery and equipment | 689,770 | 647,961 | |
Accumulated depreciation | 681,641 | 646,045 | |
Test Systems Leased By Customers | |||
Property, Plant and Equipment [Line Items] | |||
Machinery and equipment | 5,500 | 18,100 | |
Accumulated depreciation | $ 5,200 | $ 13,700 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial Instruments and Fair Value [Line Items] | |||
Available-for-sale securities, realized gain | $ 4,000,000 | $ 1,100,000 | $ 1,600,000 |
Available-for-sale securities, realized loss | 1,600,000 | 300,000 | 500,000 |
Unrealized loss related to equity securities | 6,000,000 | ||
Available-for-sale marketable securities, Fair Market Value of Investments in debt securities with Unrealized Losses | 191,978,000 | 1,350,896,000 | |
Fair market value of investments with unrealized losses greater than one year | 28,500,000 | 141,000,000 | |
Aggregate loss of investments with unrealized losses greater than one year | 1,600,000 | 1,200,000 | |
Fair market value of investments with unrealized losses less than one year | 163,500,000 | 1,209,900,000 | |
Aggregate loss of investments with unrealized losses less than one year | 1,400,000 | 2,200,000 | |
Unrealized Gain (loss) on contracts | $ 2,400,000 | $ (2,900,000) | $ 8,000,000 |
Accounts Receivable | Customer 1 | Minimum | |||
Financial Instruments and Fair Value [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable | Customer 2 | Minimum | |||
Financial Instruments and Fair Value [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
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 | $ 0 | ||
Available for sale securities with out contractual maturity date | 3,200,000 | ||
Mobile Industrial Robots (MiR) | |||
Financial Instruments and Fair Value [Line Items] | |||
Maximum amount of contingent consideration paid for acquisition | 115,000,000 | ||
Foreign Exchange Contracts | |||
Financial Instruments and Fair Value [Line Items] | |||
Unrealized Gain (loss) on contracts | $ (400,000) | $ (100,000) |
Schedule of Fair Value of Finan
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 256,636 | $ 1,473,905 |
Contingent consideration | 31,000 | |
U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 109,721 | 855,795 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 86,117 | 282,840 |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 40,020 | 133,186 |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 9,611 | 10,726 |
Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 7,604 | 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 | 3,187 | |
Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 376 | 586 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 1,204,579 | 1,903,748 |
Derivative assets | 79 | 389 |
Total | 1,204,658 | 1,904,137 |
Contingent consideration | 70,543 | 45,102 |
Derivative liabilities | 514 | 446 |
Total | 71,057 | 45,548 |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 312,512 | 197,955 |
Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 614,240 | 231,888 |
Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 109,721 | 855,795 |
Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 86,117 | 282,840 |
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 40,020 | 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 securities | 9,611 | 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 securities | 7,604 | 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 securities | 3,187 | |
Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 376 | 586 |
Fair Value, Measurements, Recurring | Equity Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | 21,191 | |
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 | 590,415 | 427,720 |
Total | 590,415 | 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 | 312,512 | 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 | 253,525 | 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 securities | 3,187 | |
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 | 21,191 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 614,164 | 1,476,028 |
Derivative assets | 79 | 389 |
Total | 614,243 | 1,476,417 |
Derivative liabilities | 514 | 446 |
Total | 514 | 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 | 360,715 | 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 securities | 109,721 | 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 securities | 86,117 | 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 securities | 40,020 | 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 securities | 9,611 | 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 securities | 7,604 | 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 securities | 376 | 586 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration | 70,543 | 45,102 |
Total | $ 70,543 | $ 45,102 |
Schedule of Reported Financial
Schedule of Reported Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 1,204,658 | $ 1,904,137 |
Liabilities | 71,057 | 45,548 |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 514 | 446 |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 926,752 | 429,843 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 190,096 | 1,347,979 |
Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 87,731 | 125,926 |
Prepayments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 79 | 389 |
Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 34,865 | 24,497 |
Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 35,678 | 20,605 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 590,415 | 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 | 566,037 | 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 | 24,378 | 23,430 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 614,243 | 1,476,417 |
Liabilities | 514 | 446 |
Significant Other Observable Inputs (Level 2) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 514 | 446 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 360,715 | 25,553 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 190,096 | 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 | 63,353 | 102,496 |
Significant Other Observable Inputs (Level 2) | Prepayments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 79 | 389 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 70,543 | 45,102 |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 34,865 | 24,497 |
Significant Unobservable Inputs (Level 3) | Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | $ 35,678 | $ 20,605 |
Schedule of Changes in Fair Val
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | $ 45,102 | $ 38,332 | ||
Acquisition of MiR | 52,547 | |||
Foreign currency impact | (3,540) | |||
Payments | (24,553) | [1] | (1,050) | [2] |
Fair value adjustment | 987 | [3] | 7,820 | [4] |
Balance at end of period | $ 70,543 | $ 45,102 | ||
[1] | During the year ended December 31, 2018, Teradyne paid $24.6 million of contingent consideration for the earn-out in connection with the acquisition of Universal Robots. | |||
[2] | During the year ended December 31, 2017, Teradyne paid $1.1 million of contingent consideration for the earn-out in connection with the acquisition of AIT. | |||
[3] | During the year ended December 31, 2018, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was increased by $17.7 million primarily due to an increase in forecasted revenues. During the year ended December 31, 2018, the fair value of contingent consideration for the earn-out in connection with the acquisition of Universal Robots was decreased by $16.7 million primarily due to a decrease in forecasted revenues. | |||
[4] | During the year ended December 31, 2017, the fair value of contingent consideration for the earn-out in connection with the acquisition of Universal Robots was increased by $7.8 million primarily due to an increase in forecasted revenues and decrease in discount rate. |
Schedule of Changes in Fair V_2
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||
Payments of contingent consideration | $ 13,571 | $ 1,050 | $ 11,697 | ||||||||
Increase (decrease) in contingent consideration | 987 | 7,820 | 15,896 | ||||||||
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 | $ 7,400 | $ 800 | $ 3,500 | $ 5,000 | $ 6,000 | $ (300) | $ 1,500 | $ 600 | (16,700) | 7,800 | 15,300 |
Avionics Interface Technologies, LLC | |||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||
Payments of contingent consideration | $ 1,100 | ||||||||||
Increase (decrease) in contingent consideration | $ 600 | ||||||||||
MiR | |||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||
Increase (decrease) in contingent consideration | $ 17,700 |
Quantitative Information Associ
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Apr. 25, 2018 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration | $ 31,000 | ||
Mobile Industrial Robots (MiR) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration | $ 52,600 | ||
Monte Carlo Simulation | Revenue for the period July 1, 2015-December 31, 2018 | Mobile Industrial Robots (MiR) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Target achievement, volatility | 18.00% | ||
Discount Rate | 1.10% | ||
Monte Carlo Simulation | Revenue for the period July 1, 2015-December 31, 2018 | Significant Unobservable Inputs (Level 3) | Mobile Industrial Robots (MiR) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration | [1] | $ 66,672 | |
Monte Carlo Simulation | Revenue for the period July 1, 2018-December 31, 2018 | Significant Unobservable Inputs (Level 3) | Universal Robots (UR) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration | [1] | $ 3,871 | |
[1] | Contingent consideration related to MiR and Universal Robots acquisitions of $31.0 million and $3.9 million, respectively, is expected to be paid in March 2019. |
Quantitative Information Asso_2
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument (Parenthetical) (Detail) - Scenario, Forecast $ in Millions | 1 Months Ended |
Mar. 31, 2019USD ($) | |
Universal Robots (UR) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Payment for contingent consideration | $ 3.9 |
Mobile Industrial Robots (MiR) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Payment for contingent consideration | $ 31 |
Schedule of Carrying Amounts an
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Marketable securities | $ 256,636 | $ 1,473,905 | |
Contingent consideration | 31,000 | ||
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | 926,752 | 429,843 | |
Marketable securities | 277,827 | 1,473,905 | |
Derivative assets | 79 | 389 | |
Contingent consideration | 70,543 | 45,102 | |
Derivative liabilities | 514 | 446 | |
Convertible debt | [1] | 379,981 | 365,987 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | 926,752 | 429,843 | |
Marketable securities | 277,827 | 1,473,905 | |
Derivative assets | 79 | 389 | |
Contingent consideration | 70,543 | 45,102 | |
Derivative liabilities | 514 | 446 | |
Convertible debt | [1] | $ 547,113 | $ 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 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 259,011 | $ 1,470,729 |
Available-for-sale marketable securities, Unrealized Gain | 592 | 6,582 |
Available-for-sale marketable securities, Unrealized (Loss) | (2,967) | (3,406) |
Available-for-sale marketable securities, Fair Market Value | 256,636 | 1,473,905 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 191,978 | 1,350,896 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 110,969 | 858,258 |
Available-for-sale marketable securities, Unrealized Gain | 112 | 72 |
Available-for-sale marketable securities, Unrealized (Loss) | (1,360) | (2,535) |
Available-for-sale marketable securities, Fair Market Value | 109,721 | 855,795 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 75,040 | 850,163 |
Commercial Paper | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 86,130 | 283,009 |
Available-for-sale marketable securities, Unrealized Gain | 13 | 18 |
Available-for-sale marketable securities, Unrealized (Loss) | (26) | (187) |
Available-for-sale marketable securities, Fair Market Value | 86,117 | 282,840 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 85,094 | 258,933 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 41,133 | 131,179 |
Available-for-sale marketable securities, Unrealized Gain | 432 | 2,380 |
Available-for-sale marketable securities, Unrealized (Loss) | (1,545) | (373) |
Available-for-sale marketable securities, Fair Market Value | 40,020 | 133,186 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 24,767 | 91,010 |
U.S. Government Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 9,646 | 10,775 |
Available-for-sale marketable securities, Unrealized Gain | 1 | |
Available-for-sale marketable securities, Unrealized (Loss) | (36) | (49) |
Available-for-sale marketable securities, Fair Market Value | 9,611 | 10,726 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 7,077 | 10,727 |
Certificates of Deposit and Time Deposits | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 7,604 | 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 | 7,604 | 167,342 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 138,340 | |
Debt Mutual Funds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 3,153 | |
Available-for-sale marketable securities, Unrealized Gain | 34 | |
Available-for-sale marketable securities, Fair Market Value | 3,187 | |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 0 | |
Non-U.S. Government Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 376 | 582 |
Available-for-sale marketable securities, Unrealized Gain | 4 | |
Available-for-sale marketable securities, Fair Market Value | $ 376 | 586 |
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 |
Schedule of Reported Available
Schedule of Reported Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 259,011 | $ 1,470,729 |
Available-for-sale marketable securities, Unrealized Gain | 592 | 6,582 |
Available-for-sale marketable securities, Unrealized (Loss) | (2,967) | (3,406) |
Available-for-sale marketable securities, Fair Market Value | 256,636 | 1,473,905 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 191,978 | 1,350,896 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 190,100 | 1,349,970 |
Available-for-sale marketable securities, Unrealized Gain | 88 | 38 |
Available-for-sale marketable securities, Unrealized (Loss) | (92) | (2,029) |
Available-for-sale marketable securities, Fair Market Value | 190,096 | 1,347,979 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 140,262 | 1,288,844 |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 68,911 | 120,759 |
Available-for-sale marketable securities, Unrealized Gain | 504 | 6,544 |
Available-for-sale marketable securities, Unrealized (Loss) | (2,875) | (1,377) |
Available-for-sale marketable securities, Fair Market Value | 66,540 | 125,926 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $ 51,716 | $ 62,052 |
Contractual Maturities of Inves
Contractual Maturities of Investments in Debt Securities Held (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Schedule of Available-for-sale Securities | |
Due within one year, cost | $ 190,100 |
Due after 1 year through 5 years, cost | 9,199 |
Due after 5 years through 10 years, cost | 14,081 |
Due after 10 years, cost | 42,478 |
Total, cost | 255,858 |
Due within one year, fair market value | 190,096 |
Due after 1 year through 5 years, fair market value | 9,144 |
Due after 5 years through 10 years, fair market value | 13,405 |
Due after 10 years, fair maket value | 40,804 |
Total, fair market value | $ 253,449 |
Schedule of Notional Amount of
Schedule of Notional Amount of Derivatives (Detail) - Foreign Exchange Contracts - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | $ 48.7 | $ 5 |
Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (57.2) | (55.9) |
Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 105.9 | 60.9 |
Japanese Yen | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (35) | (35.7) |
Japanese Yen | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (35) | (35.7) |
Taiwan Dollar | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (11.2) | (9.9) |
Taiwan Dollar | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (11.2) | (9.9) |
Korean Won | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (9.6) | (8.9) |
Korean Won | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (9.6) | (8.9) |
British Pound Sterling | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (1.4) | (1.4) |
British Pound Sterling | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (1.4) | (1.4) |
Euro | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 82.2 | 27.4 |
Euro | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 82.2 | 27.4 |
Singapore Dollar | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 15.7 | 33.5 |
Singapore Dollar | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 15.7 | $ 33.5 |
Philippines, Pesos | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 5.2 | |
Philippines, Pesos | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 5.2 | |
China, Yuan Renminbi | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 2.8 | |
China, Yuan Renminbi | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | $ 2.8 |
Schedule of Derivative Instrume
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets (liabilities), net | $ (435) | $ (57) |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Prepayments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 79 | 389 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (514) | $ (446) |
Schedule of Effect of Derivativ
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other (income) expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Losses (Gains) on derivatives recognized in statements of operations | $ 7,257 | $ (1,133) | $ 8,671 |
Schedule of Effect of Derivat_2
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on foreign currency transactions | $ 2.4 | $ (2.9) | $ 8 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands, shares in Millions | Dec. 12, 2016USD ($)Customershares | Apr. 27, 2015USD ($) | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)$ / sharesshares |
Debt Instrument | |||||
Debt instrument, net proceeds after issuance costs | $ 450,800 | ||||
Repurchase of common stock | $ 823,478 | $ 200,304 | $ 146,331 | ||
Repurchase of stock, shares | shares | 6.8 | ||||
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 | $ 460,000 | $ 460,000 | ||
Debt instrument, interest rate, stated percentage | 1.25% | ||||
Debt instrument, net proceeds after issuance costs | $ 450,800 | ||||
Payment for net cost of convertible note hedges net of warrant proceeds | 33,000 | ||||
Repurchase of common stock | $ 50,100 | ||||
Repurchase of stock, shares | shares | 2 | ||||
Senior notes maturity date | Dec. 15, 2023 | ||||
Debt instrument, frequency of periodic payment | payable semiannually 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 price | $ / shares | $ 31.70 | $ 31.70 | |||
Shares that would be issued upon conversion | shares | 14.5 | ||||
Strike price per share of warrant | $ / shares | $ 39.78 | ||||
Debt instrument, convertible, carrying amount of equity component | $ 100,800 | $ 100,800 | |||
Debt instrument, effective annual interest rate | 5.00% | ||||
Financing cost | $ 5,300 | $ 7,200 | |||
Debt issuance costs, amortization period | 7 years | ||||
Unamortized discount | $ 80,000 | ||||
Debt Instrument, convertible, remaining discount amortization period | 5 years | ||||
Value of notes converted | $ 455,400 | ||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Conversion option one | |||||
Debt Instrument | |||||
Trading days measurement period | Customer | 20 | ||||
Consecutive trading days measurement period | Customer | 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 | Customer | 5 | ||||
Consecutive trading days measurement period | Customer | 5 | ||||
Percentage of closing sale price of common stock and conversion rate product | 98.00% | ||||
Maximum | |||||
Debt Instrument | |||||
Aggregate principal amount | $ 150,000 | ||||
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 | ||||
Financing cost, amortization term | 5 years | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument | |||||
Credit facility, borrowing capacity | $ 350,000 |
Components of Convertible Senio
Components of Convertible Senior Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument | |||
Net carrying amount of convertible debt | $ 379,981 | $ 365,987 | |
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | |||
Debt Instrument | |||
Debt principal | 460,000 | 460,000 | $ 460,000 |
Unamortized discount | 80,019 | 94,013 | |
Net carrying amount of convertible debt | $ 379,981 | $ 365,987 |
Interest Expense on Convertible
Interest Expense on Convertible Senior Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument | ||
Contractual interest expense on the coupon | $ 5,750 | $ 5,734 |
Amortization of the discount component and debt issue fees recognized as interest expense | 13,995 | 13,318 |
Total interest expense on the convertible debt | $ 19,745 | $ 19,052 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 1,953,646 | $ 1,828,659 | $ 1,965,786 | |
Other comprehensive income (loss) before reclassifications, net of tax | (30,552) | 39,703 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | (713) | ||
Other comprehensive (loss) income | (29,460) | 38,990 | (12,070) | |
Reclassification of tax effects resulting from the Tax Reform Act, net of tax | [1] | 769 | ||
Reclassification of unrealized gains on equity securities, net of tax | 1,337 | (441) | (683) | |
Balance | 1,522,354 | 1,953,646 | 1,828,659 | |
ASU 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification of unrealized gains on equity securities, net of tax | [2] | (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 | (28,442) | 37,840 | ||
Other comprehensive (loss) income | (28,442) | 37,840 | ||
Balance | (12,523) | 15,919 | (21,921) | |
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 | (2,110) | 1,863 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1,337 | (441) | ||
Other comprehensive (loss) income | (773) | 1,422 | ||
Reclassification of tax effects resulting from the Tax Reform Act, net of tax | [1] | 691 | ||
Balance | (1,845) | 1,362 | (60) | |
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 | [2] | (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 | (245) | (272) | (321) | |
Other comprehensive (loss) income | (245) | (272) | ||
Reclassification of tax effects resulting from the Tax Reform Act, net of tax | [1] | 78 | ||
Balance | 1,328 | 1,495 | 1,767 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | 18,776 | (20,214) | (8,144) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (769) | (713) | (1,004) | |
Reclassification of unrealized gains on equity securities, net of tax | 1,337 | (441) | (683) | |
Balance | $ (13,040) | $ 18,776 | $ (20,214) | |
[1] | In the year ended December 31, 2018, Teradyne early adopted ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” As a result, the stranded tax effects resulting from the Tax Reform Act enacted in December 2017 were reclassified from accumulated other comprehensive income to retained earnings. | |||
[2] | In the year ended December 31, 2018, Teradyne adopted ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” See Note B: “Accounting Policies.” |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ (92) | $ (451) | $ (445) |
Reclassification of income tax effects from the Tax Reform Act, net of tax | 769 | ||
Reclassification of unrealized gains on equity securities, net of tax | 21 | 297 | 255 |
Foreign currency translation adjustments, tax | 0 | 0 | 0 |
Unrealized (losses) gains on marketable securities, tax | (521) | 1,815 | 209 |
Retirement plans prior service benefit, tax | (1,081) | (932) | (778) |
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 (Losses) Gains on Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, tax | (722) | 1,903 | |
Amounts reclassified from accumulated other comprehensive income (loss), tax | (21) | (297) | (255) |
Other comprehensive income (loss), tax | (743) | 1,606 | |
Reclassification of income tax effects from the Tax Reform Act, net of tax | (691) | ||
Reclassification of unrealized gains on equity securities, net of tax | 902 | ||
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 | (71) | (154) | $ (190) |
Other comprehensive income (loss), tax | (71) | $ (154) | |
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 (Losses) Gains 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 to Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | [1],[2] | Sep. 30, 2018 | [2],[3] | Jul. 01, 2018 | [2],[4] | Apr. 01, 2018 | [5] | Dec. 31, 2017 | [6],[7] | Oct. 01, 2017 | [7],[8] | Jul. 02, 2017 | [7],[9] | Apr. 02, 2017 | [10] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Interest income and interest expense | $ (9,083) | $ (6,213) | $ (5,427) | $ (5,981) | $ (6,476) | $ (4,517) | $ (3,292) | $ (3,520) | $ (26,704) | $ (17,805) | $ (9,296) | ||||||||
Reclassifications, net of tax | 0 | 713 | |||||||||||||||||
Unrealized (Losses) Gains on Marketable Securities | |||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Reclassifications, net of tax | (1,337) | 441 | |||||||||||||||||
Amortization of Prior Service Credit | |||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Reclassifications, net of tax | 245 | 272 | 321 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Reclassifications, net of tax | 769 | 713 | 1,004 | ||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized (Losses) Gains on Marketable Securities | |||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Interest income and interest expense | $ (1,337) | $ 441 | $ 683 | ||||||||||||||||
[1] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[4] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | ||||||||||||||||||
[5] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | ||||||||||||||||||
[6] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | ||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[8] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | ||||||||||||||||||
[9] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | ||||||||||||||||||
[10] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, tax | $ 92 | $ 451 | $ 445 |
Unrealized (Losses) Gains on Marketable Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, tax | 21 | 297 | 255 |
Amortization of Prior Service Credit | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, tax | $ 71 | $ 154 | $ 190 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | [2],[3] | Jul. 01, 2018 | [2],[4] | Apr. 01, 2018 | [5] | Dec. 31, 2017 | Oct. 01, 2017 | [7],[8] | Jul. 02, 2017 | [7],[9] | Apr. 02, 2017 | [10] | Jul. 03, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||||||||||||
Goodwill | $ 381,850 | $ 252,011 | $ 381,850 | $ 252,011 | $ 223,343 | |||||||||||||||
Goodwill impairment | 254,946 | |||||||||||||||||||
Acquired intangible assets impairment | 8,800 | 83,339 | ||||||||||||||||||
Intangible assets remaining balance | 125,482 | 79,088 | 125,482 | 79,088 | ||||||||||||||||
Acquired intangible assets amortization | 10,558 | [1],[2] | $ 11,142 | $ 9,793 | $ 7,698 | 7,384 | [6],[7] | $ 7,028 | $ 8,166 | $ 7,952 | 39,191 | 30,530 | 52,648 | |||||||
Wireless Test | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||||||||||||
Employee reduction, percentage | 11.00% | |||||||||||||||||||
Goodwill | 7,976 | $ 7,976 | $ 8,000 | 7,976 | $ 7,976 | 7,976 | ||||||||||||||
Goodwill impairment | 254,900 | 254,946 | ||||||||||||||||||
Acquired intangible assets impairment | $ 83,300 | $ 83,339 | ||||||||||||||||||
Intangible assets remaining balance | $ 2,200 | $ 2,200 | ||||||||||||||||||
Wireless Test | Sales Revenue, Segment | Customer Concentration Risk | Minimum | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||||||||||||
Concentration risk, percentage | 51.00% | |||||||||||||||||||
Wireless Test | Sales Revenue, Segment | Customer Concentration Risk | Maximum | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||||||||||||
Concentration risk, percentage | 73.00% | |||||||||||||||||||
[1] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[3] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||
[4] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | |||||||||||||||||||
[5] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | |||||||||||||||||||
[6] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | |||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[8] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | |||||||||||||||||||
[9] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | |||||||||||||||||||
[10] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jul. 03, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Apr. 25, 2018 | Feb. 26, 2018 | |
Goodwill [Line Items] | ||||||
Foreign currency translation adjustment | $ (20,531) | $ 28,668 | ||||
Goodwill impairment losses | (254,946) | |||||
Goodwill | 1,014,577 | 985,909 | $ 1,144,416 | |||
Accumulated impairment losses | (762,566) | (762,566) | (762,566) | |||
Goodwill | 252,011 | 223,343 | 381,850 | |||
Mobile Industrial Robots (MiR) | ||||||
Goodwill [Line Items] | ||||||
Goodwill acquisition | 135,976 | |||||
Goodwill | $ 135,976 | |||||
Energid Technologies Corporation | ||||||
Goodwill [Line Items] | ||||||
Goodwill acquisition | 14,394 | |||||
Goodwill | $ 14,400 | |||||
Industrial Automation | ||||||
Goodwill [Line Items] | ||||||
Foreign currency translation adjustment | (20,531) | 28,668 | ||||
Goodwill | 233,519 | 204,851 | 363,358 | |||
Goodwill | 233,519 | 204,851 | 363,358 | |||
Industrial Automation | Mobile Industrial Robots (MiR) | ||||||
Goodwill [Line Items] | ||||||
Goodwill acquisition | 135,976 | |||||
Industrial Automation | Energid Technologies Corporation | ||||||
Goodwill [Line Items] | ||||||
Goodwill acquisition | 14,394 | |||||
Wireless Test | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment losses | $ (254,900) | (254,946) | ||||
Goodwill | 361,819 | 361,819 | 361,819 | |||
Accumulated impairment losses | (353,843) | (353,843) | (353,843) | |||
Goodwill | $ 8,000 | 7,976 | 7,976 | 7,976 | ||
Semiconductor Test | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 260,540 | 260,540 | 260,540 | |||
Accumulated impairment losses | (260,540) | (260,540) | (260,540) | |||
Goodwill | 0 | 0 | 0 | |||
System Test | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 158,699 | 158,699 | 158,699 | |||
Accumulated impairment losses | (148,183) | (148,183) | (148,183) | |||
Goodwill | $ 10,516 | $ 10,516 | $ 10,516 |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 498,231 | $ 414,038 |
Accumulated Amortization | (367,531) | (337,155) |
Foreign Currency Translation Adjustment | (5,218) | 2,205 |
Net Carrying Amount | 125,482 | 79,088 |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 336,308 | 270,877 |
Accumulated Amortization | (252,080) | (226,190) |
Foreign Currency Translation Adjustment | (4,079) | 1,618 |
Net Carrying Amount | 80,149 | 46,305 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 97,153 | 92,741 |
Accumulated Amortization | (83,448) | (83,585) |
Foreign Currency Translation Adjustment | (340) | 171 |
Net Carrying Amount | 13,365 | 9,327 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 64,420 | 50,100 |
Accumulated Amortization | (31,653) | (27,120) |
Foreign Currency Translation Adjustment | (799) | 416 |
Net Carrying Amount | 31,968 | 23,396 |
Non-compete Agreements | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 320 | 320 |
Accumulated Amortization | (320) | (260) |
Net Carrying Amount | $ 60 | |
Backlog [Member] | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 30 | |
Accumulated Amortization | $ (30) |
Schedule of Amortizable Intan_2
Schedule of Amortizable Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 25, 2018 | Dec. 31, 2018 | Dec. 31, 2016 |
Finite-Lived Intangible Assets | |||
Impairment of intangible assets | $ 8,800 | $ 83,339 | |
Intangible Assets [Member] | |||
Finite-Lived Intangible Assets | |||
Impairment of intangible assets | 8,800 | ||
Mobile Industrial Robots (MiR) | |||
Finite-Lived Intangible Assets | |||
Intangible assets acquired | $ 80,670 | 80,700 | |
Energid Technologies Corporation | |||
Finite-Lived Intangible Assets | |||
Intangible assets acquired | $ 12,300 |
Schedule of Estimated Intangibl
Schedule of Estimated Intangible Asset Amortization Expense (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets | |
2,019 | $ 38,496 |
2,020 | 24,186 |
2,021 | 13,945 |
2,022 | 13,052 |
2,023 | 12,785 |
Thereafter | $ 23,018 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Purchase Commitment, Excluding Long-term Commitment | |||
Aggregate purchase commitments | $ 242.1 | ||
Purchase commitments less than one year | 232.5 | ||
Rental expense under lease commitments | $ 19.3 | $ 20.2 | $ 19.1 |
Warranty period | 1 year | ||
Product warranty accrual | $ 7.9 | 8.2 | |
Revenue deferrals related to extended warranties | $ 27.4 | $ 24.4 |
Non Cancelable Operating Lease
Non Cancelable Operating Lease Commitments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |
2,019 | $ 19,570 |
2,020 | 18,293 |
2,021 | 13,578 |
2,022 | 9,693 |
2,023 | 5,449 |
Beyond 2,024 | 9,472 |
Total | $ 76,055 |
Computation of Basic and Dilute
Computation of Basic and Diluted Net (Loss) Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2018 | [1],[2] | Sep. 30, 2018 | [2],[3] | Jul. 01, 2018 | [2],[4] | Apr. 01, 2018 | [5] | Dec. 31, 2017 | [6],[7] | Oct. 01, 2017 | [7],[8] | Jul. 02, 2017 | [7],[9] | Apr. 02, 2017 | [10] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net Income Loss Per Common Share | ||||||||||||||||||||
Net income (loss) for basic and diluted net income per share | $ 143,790 | $ 119,978 | $ 101,037 | $ 86,974 | $ (105,923) | $ 103,420 | $ 174,976 | $ 85,221 | $ 451,779 | $ 257,692 | $ (43,421) | |||||||||
Weighted average common shares-basic | 187,672 | 198,069 | 202,578 | |||||||||||||||||
Incremental shares from assumed conversion of convertible notes | [11] | 2,749 | 1,298 | |||||||||||||||||
Convertible note hedge warrant shares | [12] | 485 | 112 | |||||||||||||||||
Employee stock purchase rights | 36 | 27 | 0 | |||||||||||||||||
Dilutive potential common shares | 4,933 | 3,572 | ||||||||||||||||||
Weighted average common shares-diluted | 192,605 | 201,641 | 202,578 | |||||||||||||||||
Net income (loss) per common share-basic | $ 0.80 | $ 0.65 | $ 0.53 | $ 0.45 | $ (0.54) | $ 0.52 | $ 0.88 | $ 0.43 | $ 2.41 | $ 1.30 | $ (0.21) | |||||||||
Net income (loss) per common share-diluted | $ 0.79 | $ 0.63 | $ 0.52 | $ 0.43 | $ (0.54) | $ 0.52 | $ 0.87 | $ 0.42 | $ 2.35 | $ 1.28 | $ (0.21) | |||||||||
Restricted Stock Units | ||||||||||||||||||||
Net Income Loss Per Common Share | ||||||||||||||||||||
Incremental shares attributable to share based payment arrangements | 1,385 | 1,800 | ||||||||||||||||||
Stock Options | ||||||||||||||||||||
Net Income Loss Per Common Share | ||||||||||||||||||||
Incremental shares attributable to share based payment arrangements | 278 | 335 | 0 | |||||||||||||||||
[1] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[3] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||
[4] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | |||||||||||||||||||
[5] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | |||||||||||||||||||
[6] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | |||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[8] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | |||||||||||||||||||
[9] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | |||||||||||||||||||
[10] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. | |||||||||||||||||||
[11] | Incremental shares from the assumed conversion of the convertible notes was calculated using the difference between the average Teradyne stock price for the period and the conversion price of $31.70, 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. | |||||||||||||||||||
[12] | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.78, multiplied by 14.5 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Net (Loss) Income Per Common Share (Parenthetical) (Detail) shares in Millions | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Convertible Notes | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $ / shares | $ 31.70 |
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 | $ 39.78 |
Shares that would be issued upon conversion | shares | 14.5 |
Net (Loss) Income Per Common Sh
Net (Loss) Income Per Common Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income Loss Per Common Share | ||
Exercise of stock options | 0.1 | 0.1 |
Restricted Stock Units (RSUs) [Member] | ||
Net Income Loss Per Common Share | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.5 |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve | |||||||||||
Contingent consideration adjustment | $ 987 | $ 7,820 | $ 15,896 | ||||||||
Severance benefit and charges | $ 800 | $ 1,700 | $ 2,400 | $ 3,900 | $ 1,800 | $ 600 | $ 800 | $ 600 | |||
Acquisition related costs | 500 | 800 | 2,500 | 800 | 4,500 | ||||||
Lease termination period | 2017-09 | ||||||||||
Property, Plant and Equipment | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Impairment of fixed assets and other expenses | 4,200 | ||||||||||
Wireless Test | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Lease impairment | $ 1,000 | ||||||||||
Semiconductor Test | Property, Plant and Equipment | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Impairment of fixed assets and other expenses | 1,100 | ||||||||||
Impairment of Fixed Assets and Expenses Related to the Japan Earthquake | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Property insurance, recovery | 5,100 | 5,100 | 5,100 | ||||||||
Impairment of Fixed Assets and Expenses Related to the Japan Earthquake | Earthquake Related Expenses | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Impairment of fixed assets and other expenses | 800 | 800 | 900 | ||||||||
Universal Robots (UR) | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Contingent consideration adjustment | 7,400 | $ 800 | $ 3,500 | $ 5,000 | $ 6,000 | $ (300) | $ 1,500 | $ 600 | (16,700) | 7,800 | 15,300 |
Avionics Interface Technologies, LLC | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Contingent consideration adjustment | 600 | ||||||||||
Mobile Industrial Robots (MiR) | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Contingent consideration adjustment | $ 17,700 | 17,700 | |||||||||
Semiconductor Test and Wireless Test | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Severance benefit and charges | $ 6,000 | ||||||||||
System Test and Semiconductor Test | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Severance benefit and charges | $ 8,700 | ||||||||||
Semiconductor Test, Industrial Automation and Corporate | |||||||||||
Restructuring Cost and Reserve | |||||||||||
Severance benefit and charges | $ 3,800 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Participant | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure | |||
Number of retiree participants | Participant | 1,700 | ||
Defined Benefit Plan, decrease in benefit obligation | $ (151,300) | ||
Defined Benefit Plan, decrease in plan assets | (151,300) | ||
Gain (Loss) Due to Settlement | (300) | ||
Fair value of pension plans assets totaled | 145,700 | ||
Transfer out of level 3 | $ 2,700 | ||
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Discount rate utilized to determine future pension obligations | 4.00% | 3.40% | 3.90% |
Fair value of pension plans assets totaled | |||
Contribution to defined benefit pension plans | 889 | $ 557 | |
Accumulated other comprehensive income (loss), prior service cost expected to be recognized in 2018 | $ (200) | ||
United States Plans | |||
Defined Benefit Plan Disclosure | |||
Percentage of expected return on plan assets assumption | 4.25% | ||
Discount rate utilized to determine future pension obligations | 4.15% | 3.40% | |
Fair value of pension plans assets totaled | $ 144,300 | ||
Contribution to defined benefit pension plans | 2,600 | $ 1,900 | |
U.S. Supplemental Executive Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Contribution to defined benefit pension plans | 800 | 2,600 | |
Contribution to defined benefit pension plans in 2018 | 2,700 | ||
Non-United States Subsidiaries | |||
Defined Benefit Plan Disclosure | |||
Contribution to defined benefit pension plans | 900 | 900 | |
Contribution to defined benefit pension plans in 2018 | 900 | ||
Taiwan Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plans assets totaled | 1,400 | ||
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation for defined benefit pension plans | $ 172,800 | $ 354,300 | |
Percentage of expected return on plan assets assumption | 4.30% | 4.00% | 4.80% |
Discount rate utilized to determine future pension obligations | 4.10% | 3.40% | |
Fair value of pension plans assets totaled | $ 144,301 | $ 324,506 | $ 307,304 |
Contribution to defined benefit pension plans | 2,587 | 4,462 | |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation for defined benefit pension plans | $ 35,600 | $ 34,700 | |
Percentage of expected return on plan assets assumption | 1.50% | 2.00% | 2.00% |
Discount rate utilized to determine future pension obligations | 1.80% | 1.80% | |
Fair value of pension plans assets totaled | $ 1,400 | $ 1,307 | $ 27,571 |
Contribution to defined benefit pension plans | $ 822 | $ 883 |
Schedule of Defined Benefit Pen
Schedule of Defined Benefit Pension and Postretirement Benefit Plan Assets and Obligation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Dec. 31, 2017 | Jul. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure | ||||||||
Actuarial (gain) loss | $ (3,500) | $ 300 | $ (100) | $ (3,800) | $ (2,800) | |||
Ending Balance | 145,700 | $ 145,700 | ||||||
UNITED STATES | ||||||||
Defined Benefit Plan Disclosure | ||||||||
Projected benefit obligation, Beginning of year | 363,026 | $ 353,616 | ||||||
Service cost | 2,196 | 2,239 | $ 2,302 | |||||
Interest cost | 8,940 | 13,151 | 13,630 | |||||
Actuarial (gain) loss | (30,136) | 12,702 | ||||||
Benefits paid | (14,793) | (18,682) | ||||||
Retiree annuity purchase | (151,341) | |||||||
Liability loss due to settlement | 345 | |||||||
Projected benefit obligation, End of year | 178,237 | 363,026 | 178,237 | 363,026 | 353,616 | |||
Beginning Balance | 324,506 | 307,304 | ||||||
Company contributions | 2,587 | 4,462 | ||||||
Actual return on plan assets | (16,658) | 31,422 | ||||||
Benefits paid | (14,793) | (18,682) | ||||||
Retiree annuity purchase | (151,341) | |||||||
Ending Balance | 144,301 | 324,506 | 144,301 | 324,506 | 307,304 | |||
Funded status | (33,936) | (38,520) | (33,936) | (38,520) | ||||
Foreign Pension Plans, Defined Benefit | ||||||||
Defined Benefit Plan Disclosure | ||||||||
Projected benefit obligation, Beginning of year | 39,353 | 60,738 | ||||||
Service cost | 786 | 818 | 761 | |||||
Interest cost | 687 | 852 | 1,185 | |||||
Actuarial (gain) loss | 773 | 262 | ||||||
Benefits paid | (741) | (994) | ||||||
Settlements | (28,560) | |||||||
Admin expenses paid | (40) | |||||||
Non-U.S. currency movement | (1,712) | 6,277 | ||||||
Projected benefit obligation, End of year | 39,146 | 39,353 | 39,146 | 39,353 | 60,738 | |||
Beginning Balance | 1,307 | 27,571 | ||||||
Company contributions | 822 | 883 | ||||||
Actual return on plan assets | 50 | 737 | ||||||
Benefits paid | (741) | (994) | ||||||
Settlements | (28,560) | |||||||
Admin expenses paid | (40) | |||||||
Non-U.S. currency movement | (38) | 1,710 | ||||||
Ending Balance | 1,400 | 1,307 | 1,400 | 1,307 | 27,571 | |||
Funded status | (37,746) | (38,046) | (37,746) | (38,046) | ||||
Postretirement Benefit Plans | ||||||||
Defined Benefit Plan Disclosure | ||||||||
Projected benefit obligation, Beginning of year | 6,177 | 5,510 | ||||||
Service cost | 39 | 34 | 37 | |||||
Interest cost | 196 | 201 | 218 | |||||
Actuarial (gain) loss | 25 | 398 | ||||||
Special termination benefits | 3,708 | 591 | ||||||
Benefits paid | (889) | (557) | ||||||
Projected benefit obligation, End of year | 9,256 | 6,177 | 9,256 | 6,177 | $ 5,510 | |||
Beginning Balance | ||||||||
Company contributions | 889 | 557 | ||||||
Benefits paid | (889) | (557) | ||||||
Ending Balance | ||||||||
Funded status | $ (9,256) | $ (6,177) | $ (9,256) | $ (6,177) |
Schedule of Amounts Recorded wi
Schedule of Amounts Recorded within Statements of Financial Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure | ||
Retirement plans assets | $ 16,883 | $ 17,491 |
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Retirement plans assets | 16,883 | 17,491 |
Accrued employees' compensation and withholdings | (2,676) | (2,524) |
Retirement plans liabilities | (48,143) | (53,487) |
Funded status | (33,936) | (38,520) |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Accrued employees' compensation and withholdings | (852) | (863) |
Retirement plans liabilities | (36,894) | (37,183) |
Funded status | (37,746) | (38,046) |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure | ||
Accrued employees' compensation and withholdings | (1,310) | (591) |
Retirement plans liabilities | (7,946) | (5,586) |
Funded status | $ (9,256) | $ (6,177) |
Schedule of Amounts Recognized
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure | |||
Deferred taxes | $ (20,025) | $ (12,881) | $ (9,398) |
Total recognized in other comprehensive income, net of tax | |||
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Prior service cost, before tax | 58 | ||
Deferred taxes | 560 | 539 | |
Total recognized in other comprehensive income, net of tax | 560 | 597 | |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Prior service cost, before tax | |||
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Prior service cost, before tax | (249) | (622) | |
Deferred taxes | (1,641) | (1,472) | |
Total recognized in other comprehensive income, net of tax | $ (1,890) | $ (2,094) |
Schedule of Pension Plans with
Schedule of Pension Plans with Accumulated Benefit Obligation and Projected Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure | ||
Fair value of plan assets | ||
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Projected benefit obligation | 50.8 | $ 56 |
Accumulated benefit obligation | 48.6 | 51.6 |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Projected benefit obligation | 39.1 | 39.4 |
Accumulated benefit obligation | 35.6 | 34.7 |
Fair value of plan assets | $ 1.4 | $ 1.3 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension and Postretirement (income) Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure | |||
Net actuarial (gain) loss | $ (3,316) | $ (6,624) | $ (3,203) |
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Service cost | 2,196 | 2,239 | 2,302 |
Interest cost | 8,940 | 13,151 | 13,630 |
Expected return on plan assets | (9,049) | (12,008) | (13,830) |
Amortization of prior service cost | 58 | 70 | 96 |
Net actuarial (gain) loss | (4,429) | (6,712) | (4,013) |
Settlement loss | 345 | ||
Total net periodic pension (income) cost | (1,939) | (3,260) | (1,815) |
Prior service cost | (58) | (70) | (96) |
Total recognized in other comprehensive income | (58) | (70) | (96) |
Total recognized in net periodic postretirement benefit cost (income) and other comprehensive income | (1,997) | (3,330) | (1,911) |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Service cost | 786 | 818 | 761 |
Interest cost | 687 | 852 | 1,185 |
Expected return on plan assets | (19) | (165) | (443) |
Amortization of prior service cost | |||
Net actuarial (gain) loss | 743 | (310) | 815 |
Settlement loss | |||
Total net periodic pension (income) cost | 2,197 | 1,195 | 2,318 |
Prior service cost | |||
Total recognized in other comprehensive income | |||
Total recognized in net periodic postretirement benefit cost (income) and other comprehensive income | 2,197 | 1,195 | 2,318 |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Service cost | 39 | 34 | 37 |
Interest cost | 196 | 201 | 218 |
Amortization of prior service cost | (373) | (496) | (607) |
Net actuarial (gain) loss | 25 | 398 | 5 |
Special termination benefits | 3,708 | 591 | |
Total net periodic pension (income) cost | 3,595 | 728 | (347) |
Prior service cost | (93) | ||
Prior service credit | 373 | 496 | 607 |
Total recognized in other comprehensive income | 373 | 496 | 514 |
Total recognized in net periodic postretirement benefit cost (income) and other comprehensive income | $ 3,968 | $ 1,224 | $ 167 |
Schedule of Weighted Average -
Schedule of Weighted Average - Assumptions to Determine Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 3.40% | 3.90% | 4.00% |
Expected return on plan assets | 4.30% | 4.00% | 4.80% |
Salary progression rate | 2.30% | 2.60% | 2.70% |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 1.80% | 1.80% | 2.30% |
Expected return on plan assets | 1.50% | 2.00% | 2.00% |
Salary progression rate | 2.70% | 2.70% | 3.20% |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 3.40% | 3.90% | 3.90% |
Initial health care cost trend rate | 7.90% | 7.30% | 7.50% |
Ultimate health care cost trend rate | 4.50% | 4.50% | 5.00% |
Year in which ultimate health care cost trend rate is reached | 2,026 | 2,023 | 2,023 |
Schedule of Weighted Average As
Schedule of Weighted Average Assumptions to Determine Pension Obligations (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 4.00% | 3.40% | 3.90% |
Initial medical trend | 7.50% | 7.90% | 7.30% |
Ultimate health care trend | 4.50% | 4.50% | 5.00% |
Medical cost trend rate decrease to ultimate rate in year | 2,026 | 2,026 | 2,023 |
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 4.10% | 3.40% | |
Salary progression rate | 2.30% | 2.30% | |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 1.80% | 1.80% | |
Salary progression rate | 2.60% | 2.70% |
Schedule of Weighted Average Pe
Schedule of Weighted Average Pension Assets Allocations by Category (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
UNITED STATES | Fixed income securities | ||
Defined Benefit Plan Disclosure | ||
Total | 94.00% | 88.10% |
UNITED STATES | Equity securities | ||
Defined Benefit Plan Disclosure | ||
Total | 5.00% | 9.90% |
UNITED STATES | Other than Securities Investment | ||
Defined Benefit Plan Disclosure | ||
Total | 1.00% | 2.00% |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
Foreign Pension Plans, Defined Benefit | Fixed income securities | ||
Defined Benefit Plan Disclosure | ||
Total | ||
Foreign Pension Plans, Defined Benefit | Equity securities | ||
Defined Benefit Plan Disclosure | ||
Total | ||
Foreign Pension Plans, Defined Benefit | Other than Securities Investment | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
Schedule of Target Assets Alloc
Schedule of Target Assets Allocation (Detail) | Dec. 31, 2018 |
Barclays Corporate or Better Index | U.S. corporate fixed income | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 75.00% |
MSCI World Minimum Volatility Index | Global equity Securities | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 5.00% |
Barclays Year Treasury Strips Index | U.S. government fixed income | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 14.00% |
Barclays Corporate High Yield Issuer Cap Index | High yield fixed income | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 5.00% |
Citi Group Three Month Treasury Bill Index | Cash | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 1.00% |
Schedule of Fair Value of Pensi
Schedule of Fair Value of Pensions Plan Assets by Asset Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure | |||
Total | $ 145,700 | ||
Group Annuity Insurance Contracts | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | $ 3,166 | $ 29,456 | |
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Total | 144,301 | 324,506 | 307,304 |
UNITED STATES | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,449 | 3,217 | |
UNITED STATES | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 142,852 | 318,123 | |
UNITED STATES | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 3,166 | ||
UNITED STATES | Corporate Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 115,424 | 260,294 | |
UNITED STATES | Corporate Debt Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 115,424 | 260,294 | |
UNITED STATES | US Government Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 20,176 | 25,709 | |
UNITED STATES | US Government Debt Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 20,176 | 25,709 | |
UNITED STATES | Global equity Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 7,252 | 32,120 | |
UNITED STATES | Global equity Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 7,252 | 32,120 | |
UNITED STATES | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure | |||
Total | 1,449 | 3,217 | |
UNITED STATES | Cash and Cash Equivalents | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,449 | 3,217 | |
UNITED STATES | Group Annuity Insurance Contracts | |||
Defined Benefit Plan Disclosure | |||
Total | 3,166 | ||
UNITED STATES | Group Annuity Insurance Contracts | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 3,166 | ||
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Total | 1,400 | 1,307 | $ 27,571 |
Foreign Pension Plans, Defined Benefit | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,400 | 1,307 | |
Foreign Pension Plans, Defined Benefit | Other | |||
Defined Benefit Plan Disclosure | |||
Total | 1,400 | 1,307 | |
Foreign Pension Plans, Defined Benefit | Other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | $ 1,400 | $ 1,307 |
Schedule of Defined Benefit Pla
Schedule of Defined Benefit Plans Disclosures (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure | ||
Transfer out of Level 3 | $ 2,700 | |
Ending Balance | 145,700 | |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure | ||
Settlements | $ (28,560) | |
Interest and market value adjustments | 59 | 959 |
Benefits paid | (40) | (244) |
Other | (15) | (61) |
Significant Unobservable Inputs (Level 3) | Group Annuity Insurance Contracts | ||
Defined Benefit Plan Disclosure | ||
Beginning Balance | 3,166 | 29,456 |
Transfer out of Level 3 | (2,658) | |
Purchases of retiree annuity insurance contracts | (512) | |
Non-U.S. currency movement | 1,616 | |
Ending Balance | $ 3,166 |
Schedule of Expected Future Ben
Schedule of Expected Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
UNITED STATES | |
Defined Benefit Plan Disclosure | |
2,019 | $ 6,903 |
2,020 | 7,133 |
2,021 | 8,026 |
2,022 | 8,863 |
2,023 | 9,584 |
2024-2028 | 57,120 |
Foreign Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure | |
2,019 | 874 |
2,020 | 1,522 |
2,021 | 905 |
2,022 | 888 |
2,023 | 1,199 |
2024-2028 | 5,921 |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure | |
2,019 | 1,310 |
2,020 | 1,234 |
2,021 | 1,181 |
2,022 | 984 |
2,023 | 811 |
2024-2028 | $ 2,364 |
Schedule of One Percent Point C
Schedule of One Percent Point Change in assumed Health Care Cost Trends Rate (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure | |
Effect of one percentage point increase on total service and interest cost components | $ 7 |
Effect of one percentage point increase on postretirement benefit obligations | 181 |
Effect of one percentage point decrease on total service and interest cost components | (7) |
Effect of one percentage point decrease on postretirement benefit obligations | $ (171) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2017 | Jul. 31, 2016 | Dec. 31, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Restricted stock unit awards granted | 790,000 | 939,000 | 1,471,000 | ||||||||
Weighted average grant date fair value of restricted stock units granted | $ 45.99 | $ 28.91 | $ 18.95 | ||||||||
Tax benefit from compensation expense | $ 12,036,000 | $ 10,462,000 | $ 8,752,000 | ||||||||
Total unrecognized expense related to non-vested restricted stock unit awards and stock options | $ 44,000,000 | ||||||||||
Unrecognized expense related to non-vested restricted stock unit awards and stock options expected to be recognized over weighted average period, in years | 2 years 4 months 24 days | ||||||||||
Maximum percent of shares allowed to purchase | 10.00% | ||||||||||
Fair market value | $ 25,000 | ||||||||||
Maximum number of shares allowed to purchase | 6,000 | ||||||||||
Percentage of common stock price paid | 85.00% | ||||||||||
Common stock issued to employees | 300,000 | 300,000 | 300,000 | 400,000 | 500,000 | ||||||
Value of common stock issued to employees per share | $ 32.36 | $ 35.59 | $ 25.53 | $ 21.59 | $ 16.74 | $ 35.59 | |||||
Number of shares available for grant | 7,874,000 | 8,605,000 | 9,546,000 | 10,914,000 | |||||||
Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Cash received from employees, employee stock options exercises | $ 1,000,000 | $ 6,800,000 | $ 2,900,000 | ||||||||
Tax benefit from compensation expense | $ 400,000 | $ 2,500,000 | $ 800,000 | ||||||||
Percentage of common stock price paid | 100.00% | ||||||||||
Stock Options | Minimum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Period of stock granted to employees and executive officers vest in equal installments | 4 years | ||||||||||
Stock Options | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Period of stock granted to employees and executive officers vest in equal installments | 7 years | ||||||||||
Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Restricted stock unit awards granted | 790,000 | 939,000 | 1,471,000 | ||||||||
Restricted Stock Units | Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Period of stock granted to employees and executive officers vest in equal installments | 4 years | ||||||||||
TSR Performance-Based Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Total shareholder return performance measurement period | 3 years | ||||||||||
Share-based compensation arrangement by share-based payment award, description | Capped at four times the grant date value | ||||||||||
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 | 100,000 | 100,000 | 100,000 | ||||||||
Weighted average grant date fair value of restricted stock units granted | $ 54.85 | $ 35.66 | $ 20.29 | ||||||||
Stock price | 47.70 | 28.56 | 19.43 | ||||||||
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 | $ 0.24 | ||||||||
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% | ||||||||||
Employee Stock Purchase Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Number of shares available for grant | 2,500,000 | ||||||||||
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 | 100,000 | 100,000 | 100,000 | ||||||||
Weighted average grant date fair value of restricted stock units granted | $ 46.62 | $ 27.72 | $ 18.71 | ||||||||
Service-Based Restricted Stock Units | Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Restricted stock unit awards granted | 600,000 | 800,000 | 1,200,000 | ||||||||
Weighted average grant date fair value of restricted stock units granted | $ 45.92 | $ 28.19 | $ 18.88 | ||||||||
Service-Based Restricted Stock Units | Non Employee Directors And Certain Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Restricted stock unit awards granted | 100,000 | 100,000 | 100,000 | ||||||||
Weighted average grant date fair value of restricted stock units granted | $ 35.81 | $ 34.48 | $ 18.71 | ||||||||
Service-Based Restricted Stock Units | Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Restricted stock unit awards granted | 100,000 | 100,000 | 100,000 | ||||||||
Weighted average grant date fair value of restricted stock units granted | $ 12.17 | $ 7.13 | $ 5.30 | ||||||||
Subsequent Event | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Common stock issued to employees | 400,000 | ||||||||||
Value of common stock issued to employees per share | $ 26.67 |
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 2.20% | 1.50% | 1.00% |
Expected historical volatility | 26.80% | 26.60% | 27.00% |
Dividend yield | 0.80% | 1.00% | 1.20% |
New York Stock Exchange Composite Index | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected historical volatility | 12.40% | 13.40% | 13.10% |
Schedule of Estimated Fair Va_2
Schedule of Estimated Fair Value of Stock Options Grant Using Black Scholes Option Pricing Model (Detail) - Stock Options | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (years) | 5 years | 5 years | 5 years |
Risk-free interest rate | 2.40% | 2.00% | 1.40% |
Volatility-historical | 26.40% | 27.80% | 32.90% |
Dividend yield | 0.80% | 1.00% | 1.20% |
Schedule of Stock Compensation
Schedule of Stock Compensation Plan Activity (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awarded | 790 | 939 | 1,471 |
Forfeited | (128) | (109) | (233) |
Outstanding at January 1 | 531 | 926 | 1,121 |
Granted | 69 | 111 | 130 |
Exercised | (94) | (501) | (324) |
Expired | 0 | (5) | (2) |
Outstanding at December 31 | 506 | 531 | 926 |
Vested and expected to vest at December 31 | 506 | 531 | 926 |
Exercisable at December 31 | 256 | 233 | 598 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Non-vested at January 1 | 3,174 | 3,778 | 4,070 |
Awarded | 790 | 939 | 1,471 |
Vested | (1,382) | (1,434) | (1,530) |
Forfeited | (128) | (109) | (233) |
Non-vested at December 31 | 2,454 | 3,174 | 3,778 |
Schedule of Share Based Compens
Schedule of Share Based Compensation Total Shares Available (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Available for grant at January 1 | 8,605 | 9,546 | 10,914 |
Options granted | (69) | (111) | (130) |
Restricted stock units awarded | (790) | (939) | (1,471) |
Restricted stock units forfeited | 128 | 109 | 233 |
Available for grant at December 31 | 7,874 | 8,605 | 9,546 |
Schedule of Weighted-Average Re
Schedule of Weighted-Average Restricted Stock Unit Award Fair Value (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Non-vested at January 1 | $ 21.71 | $ 18.27 | $ 17.66 |
Awarded | 45.99 | 28.91 | 18.95 |
Vested | 20.20 | 17.90 | 17.36 |
Forfeited | 24.67 | 20.35 | 17.80 |
Non-vested at December 31 | $ 29.22 | $ 21.71 | $ 18.27 |
Schedule of Restricted Stock Un
Schedule of Restricted Stock Unit Awards Aggregate Intrinsic Value (Detail) - Restricted Stock Units - USD ($) $ / shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vested | $ 63,688 | $ 40,649 | $ 30,008 |
Outstanding | $ 77,015 | $ 132,875 | $ 95,952 |
Expected to vest | $ 77,187 | $ 130,594 | $ 91,871 |
Schedule of Restricted Stock _2
Schedule of Restricted Stock Units Weighted Average Remaining Contractual Terms (Detail) - Restricted Stock Units | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding | 11 months 1 day | 1 year | 1 year 14 days |
Expected to vest | 10 months 28 days | 11 months 26 days | 1 year 11 days |
Schedule of Weighted Average St
Schedule of Weighted Average Stock Options Exercise Price (Detail) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Outstanding at January 1 | $ 13.92 |
Options granted | 47.70 |
Options exercised | 10.89 |
Outstanding at December 31 | 19.06 |
Exercisable at December 31 | $ 8.31 |
Schedule of Stock Option Aggreg
Schedule of Stock Option Aggregated Intrinsic Value Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercised | $ 2,960 | $ 8,035 | $ 3,729 |
Outstanding | 7,359 | 14,831 | 12,468 |
Vested and expected to vest | 7,359 | 14,831 | 12,468 |
Exercisable | $ 5,905 | $ 9,076 | $ 10,217 |
Schedule of Stock Options Weigh
Schedule of Stock Options Weighted Average Remaining Contractual Terms (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding | 3 years 7 months 6 days | 4 years 1 month 6 days | 3 years 10 months 24 days |
Vested and expected to vest | 3 years 7 months 6 days | 4 years 1 month 6 days | 3 years 10 months 24 days |
Exercisable | 2 years 4 months 24 days | 2 years 9 months 18 days | 3 years 2 months 12 days |
Schedule of Significant Option
Schedule of Significant Option Groups Outstanding (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Shares | shares | 506 |
Options Exercisable, Shares | shares | 256 |
Options Outstanding, Weighted-Average Exercise Price | $ 19.06 |
Options Exercisable, Weighted-Average Exercise Price | $ 8.31 |
$1.48 - $2.58 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 1 year 2 months 23 days |
Options Outstanding, Shares | shares | 67 |
Options Exercisable, Shares | shares | 67 |
Range Of Exercise Prices, Lower Limit | $ 1.48 |
Range Of Exercise Prices, Upper Limit | 2.58 |
Options Outstanding, Weighted-Average Exercise Price | 1.83 |
Options Exercisable, Weighted-Average Exercise Price | $ 1.83 |
$2.67 - $3.28 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 2 years 2 months 12 days |
Options Outstanding, Shares | shares | 103 |
Options Exercisable, Shares | shares | 103 |
Range Of Exercise Prices, Lower Limit | $ 2.67 |
Range Of Exercise Prices, Upper Limit | 3.28 |
Options Outstanding, Weighted-Average Exercise Price | 2.69 |
Options Exercisable, Weighted-Average Exercise Price | $ 2.69 |
$7.71 - $19.43 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 3 years 4 months 28 days |
Options Outstanding, Shares | shares | 166 |
Options Exercisable, Shares | shares | 68 |
Range Of Exercise Prices, Lower Limit | $ 7.71 |
Range Of Exercise Prices, Upper Limit | 19.43 |
Options Outstanding, Weighted-Average Exercise Price | 18.59 |
Options Exercisable, Weighted-Average Exercise Price | $ 18.02 |
$28.56 - $47.70 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 5 years 7 months 13 days |
Options Outstanding, Shares | shares | 170 |
Options Exercisable, Shares | shares | 18 |
Range Of Exercise Prices, Lower Limit | $ 28.56 |
Range Of Exercise Prices, Upper Limit | 47.70 |
Options Outstanding, Weighted-Average Exercise Price | 36.30 |
Options Exercisable, Weighted-Average Exercise Price | $ 28.56 |
Stock Based Compensation (Detai
Stock Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 33,577 | $ 34,097 | $ 30,750 |
Income tax benefit | (12,036) | (10,462) | (8,752) |
Total stock-based compensation expense after income taxes | 21,541 | 23,635 | 21,998 |
Cost Of Revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 3,129 | 3,212 | 3,153 |
Engineering And Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 9,181 | 9,370 | 9,458 |
Selling and Administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 21,267 | $ 21,515 | $ 18,139 |
Savings Plan - Additional Infor
Savings Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Savings Plan [Line Items] | |||
Savings plan maximum percentage of employees contribution allowable | 20.00% | ||
Percentage of employer contributions vested per year | 25.00% | ||
Maximum employment period considered for vesting of employers' contribution, in years | 4 years | ||
Liability, Retirement and Postemployment Benefits | $ 24.4 | $ 23.4 | |
U.S. Qualified Pension Plan | |||
Savings Plan [Line Items] | |||
Maximum percentage of matching contributions made by the employer | 100.00% | 100.00% | 100.00% |
Percentage of employer match on employee contribution | 4.00% | 4.00% | 4.00% |
Savings Plan | |||
Savings Plan [Line Items] | |||
Amounts charged to statements of operations | $ 17.2 | $ 15.3 | $ 14.5 |
Schedule of Income (Loss) Befor
Schedule of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | [1],[2] | Sep. 30, 2018 | [2],[3] | Jul. 01, 2018 | [2],[4] | Apr. 01, 2018 | [5] | Dec. 31, 2017 | [6],[7] | Oct. 01, 2017 | [7],[8] | Jul. 02, 2017 | [7],[9] | Apr. 02, 2017 | [10] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||||||||||||||||||
U.S. | $ 189,691 | $ 76,699 | $ (341,018) | ||||||||||||||||
Non-U.S. | 278,110 | 447,713 | 285,958 | ||||||||||||||||
Income (loss) before income taxes | $ 111,128 | $ 140,841 | $ 120,012 | $ 95,820 | $ 98,084 | $ 127,437 | $ 206,877 | $ 92,016 | $ 467,801 | $ 524,412 | $ (55,060) | ||||||||
[1] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[4] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | ||||||||||||||||||
[5] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | ||||||||||||||||||
[6] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | ||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[8] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | ||||||||||||||||||
[9] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | ||||||||||||||||||
[10] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
Schedule of Provision (Benefit)
Schedule of Provision (Benefit) for Income Taxes from Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | [1],[2] | Sep. 30, 2018 | [2],[3] | Jul. 01, 2018 | [2],[4] | Apr. 01, 2018 | [5] | Dec. 31, 2017 | [6],[7] | Oct. 01, 2017 | [7],[8] | Jul. 02, 2017 | [7],[9] | Apr. 02, 2017 | [10] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||||||||||||||||||
Current, U.S. Federal | $ (59,122) | $ 162,679 | $ 7,750 | ||||||||||||||||
Current, Non-U.S. | 45,083 | 64,313 | 41,579 | ||||||||||||||||
Current, State | 1,721 | 2,623 | 1,968 | ||||||||||||||||
Current, Total | (12,318) | 229,615 | 51,297 | ||||||||||||||||
Deferred, U.S. Federal | 29,252 | 43,687 | (51,482) | ||||||||||||||||
Deferred, Non-U.S. | (1,243) | (6,476) | (9,240) | ||||||||||||||||
Deferred, State | 331 | (106) | (2,214) | ||||||||||||||||
Deferred, Total | 28,340 | 37,105 | (62,936) | ||||||||||||||||
Total provision (benefit) for income taxes | $ (32,662) | $ 20,863 | $ 18,975 | $ 8,846 | $ 204,007 | $ 24,017 | $ 31,901 | $ 6,795 | $ 16,022 | $ 266,720 | $ (11,639) | ||||||||
[1] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[4] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | ||||||||||||||||||
[5] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | ||||||||||||||||||
[6] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | ||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[8] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | ||||||||||||||||||
[9] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | ||||||||||||||||||
[10] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | [2],[3] | Jul. 01, 2018 | [2],[4] | Apr. 01, 2018 | [5] | Dec. 31, 2017 | Oct. 01, 2017 | [7],[8] | Jul. 02, 2017 | [7],[9] | Apr. 02, 2017 | [10] | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Income Taxes [Line Items] | ||||||||||||||||||||||
Total (benefit) provision for income taxes | $ (32,662) | [1],[2] | $ 20,863 | $ 18,975 | $ 8,846 | $ 204,007 | [6],[7] | $ 24,017 | $ 31,901 | $ 6,795 | $ 16,022 | $ 266,720 | $ (11,639) | |||||||||
Effective tax rate | 3.40% | 50.90% | 21.10% | |||||||||||||||||||
Provisional amount of additional income tax expense | (49,500) | 186,000 | ||||||||||||||||||||
Transition tax on mandatory deemed repatriation of foreign earnings | $ (51,700) | $ 161,000 | ||||||||||||||||||||
Expense related to remeasurement of deferred tax assets and liabilities | 33,600 | |||||||||||||||||||||
Expense (benefit) associated with impact of correlative adjustments on tax positions | 2,200 | (10,300) | ||||||||||||||||||||
Tax savings due to the tax holiday | $ 11,900 | $ 24,800 | $ 17,000 | |||||||||||||||||||
Tax savings due to the tax holiday, per share | $ 0.06 | $ 0.12 | $ 0.08 | |||||||||||||||||||
Tax holiday expiration date | December 31, 2020 | |||||||||||||||||||||
Valuation allowance includes net deferred tax assets | 69,852 | 63,919 | $ 69,852 | $ 63,919 | ||||||||||||||||||
Tax credit carryforwards, approximately | 98,400 | 98,400 | ||||||||||||||||||||
Tax credits carryforwards | 69,091 | 76,083 | 69,091 | 76,083 | ||||||||||||||||||
Reduction in un recognized tax benefits | 43,395 | 36,263 | 43,395 | 36,263 | $ 38,958 | $ 36,792 | ||||||||||||||||
Unrecognized tax benefits, if recognized would impact effective tax rate | 30,700 | 30,700 | ||||||||||||||||||||
Unrecognized tax benefits, if recognized would impact deferred taxes | 12,600 | 12,600 | ||||||||||||||||||||
Accrued interest and penalties | 300 | 300 | 300 | 300 | ||||||||||||||||||
Interest and penalties related to income tax, expense (benefit) | 100 | (100) | $ (100) | |||||||||||||||||||
Deferred tax | 5,900 | 5,900 | ||||||||||||||||||||
Reduction of federal of state benefit reserves | 2,000 | |||||||||||||||||||||
Unrecognized Tax Benefits, Period Increase (Decrease) | 200 | |||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||
Total (benefit) provision for income taxes | $ 27,900 | |||||||||||||||||||||
Reduction in un recognized tax benefits | $ 33,800 | |||||||||||||||||||||
United States | ||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||
Tax credits carryforwards, business | 900 | $ 900 | ||||||||||||||||||||
Tax credit carryforward, expiration date | 2,028 | |||||||||||||||||||||
State and Local Jurisdiction | ||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||
Provisional amount of additional income tax expense | 49,500 | 186,000 | ||||||||||||||||||||
Transition tax on mandatory deemed repatriation of foreign earnings | 51,700 | |||||||||||||||||||||
Expense (benefit) associated with impact of correlative adjustments on tax positions | $ 10,300 | |||||||||||||||||||||
Tax credits carryforwards | 97,500 | $ 97,500 | ||||||||||||||||||||
Reduction in un recognized tax benefits | $ 43,400 | $ 43,400 | ||||||||||||||||||||
State and Local Jurisdiction | Earliest Tax Year | ||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||
Tax credit carryforward, expiration date | 2,019 | |||||||||||||||||||||
State and Local Jurisdiction | Latest Tax Year | ||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||
Tax credit carryforward, expiration date | 2,038 | |||||||||||||||||||||
State and Local Jurisdiction | Do Not Expire | ||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||
Tax credits carryforwards | $ 55,600 | $ 55,600 | ||||||||||||||||||||
[1] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||||
[3] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||||
[4] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | |||||||||||||||||||||
[5] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | |||||||||||||||||||||
[6] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | |||||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||||
[8] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | |||||||||||||||||||||
[9] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | |||||||||||||||||||||
[10] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
Schedule of Reconciliation of E
Schedule of Reconciliation of Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
U.S. statutory federal tax rate | 21.00% | 35.00% | 35.00% |
U.S. transition tax | (10.50%) | 28.70% | |
U.S, foreign derived intangible income | (1.80%) | ||
Impact of rate change on deferred tax | 0.30% | 6.90% | |
Uncertain tax positions | 1.00% | 1.70% | (2.60%) |
Foreign taxes | (2.00%) | (16.30%) | 78.00% |
Foreign tax credits | (2.20%) | (2.20%) | 49.10% |
U.S. research and development credit | (2.20%) | (1.60%) | 15.80% |
Equity compensation | (1.20%) | (0.80%) | (2.70%) |
State income taxes, net of federal tax benefit | 0.10% | (0.40%) | 2.30% |
Domestic production activities deduction | (0.30%) | 2.30% | |
Goodwill impairment | (162.10%) | ||
U.S. alternative minimum tax credit | 3.70% | ||
Inventory cost capitalization | 1.80% | ||
Other, net | 0.90% | 0.20% | 0.50% |
Effective tax rate, Total | 3.40% | 50.90% | 21.10% |
Schedule of Components of Defer
Schedule of Components of Deferred Tax Assets Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Line Items] | ||
Tax credits | $ 69,091 | $ 76,083 |
Accruals | 20,826 | 22,602 |
Pension liabilities | 23,449 | 27,508 |
Inventory valuations | 18,514 | 17,793 |
Deferred revenue | 9,130 | 9,016 |
Equity compensation | 7,190 | 6,861 |
Vacation accrual | 4,772 | 4,747 |
Net operating loss carryforwards | 3,658 | 5,440 |
Marketable securities | 962 | |
Other | 685 | 713 |
Gross deferred tax assets | 158,277 | 170,763 |
Less: valuation allowance | (69,852) | (63,919) |
Total deferred tax assets | 88,425 | 106,844 |
Intangible assets | (24,211) | (16,120) |
Depreciation | (14,028) | (12,293) |
Marketable securities | (1,125) | |
Total deferred tax liabilities | (38,239) | (29,538) |
Net deferred assets | $ 50,186 | $ 77,306 |
Summary of Operating Loss Carry
Summary of Operating Loss Carryforwards (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | $ 48,195 |
Foreign Operating Loss Carryforwards | 4,505 |
2,019 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 258 |
Foreign Operating Loss Carryforwards | |
2,020 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 269 |
Foreign Operating Loss Carryforwards | |
2,021 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 2,977 |
Foreign Operating Loss Carryforwards | |
2,022 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 5,749 |
Foreign Operating Loss Carryforwards | |
2,023 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 6,241 |
Foreign Operating Loss Carryforwards | |
2024-2028 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 4,672 |
Foreign Operating Loss Carryforwards | |
2029-2033 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 22,724 |
Foreign Operating Loss Carryforwards | 44 |
Beyond 2,033 | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | 5,305 |
Foreign Operating Loss Carryforwards | 72 |
Non-Expiring | |
Operating Loss Carryforwards [Line Items] | |
State Operating Loss Carryforwards | |
Foreign Operating Loss Carryforwards | $ 4,389 |
Schedule of Unrecognized Tax Be
Schedule of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
Beginning balance, as of January 1 | $ 36,263 | $ 38,958 | $ 36,792 |
Tax positions for current year, Additions | 4,716 | 8,208 | 9,766 |
Tax positions for prior years, Additions | 2,626 | 199 | 187 |
Tax positions for prior years, Reductions | (153) | (10,573) | (1,960) |
Expiration of statutes, Reductions | (57) | (325) | (3,532) |
Settlements with tax authorities, Reductions | (204) | (2,295) | |
Ending balance as of December 31 | $ 43,395 | $ 36,263 | $ 38,958 |
Operating Segment, Geographic_3
Operating Segment, Geographic and Significant Customer Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018SegmentCustomer | Dec. 31, 2017Customer | Dec. 31, 2016Customer | |
Segment Reporting Information [Line Items] | |||
Operating segments | Segment | 4 | ||
Number of customer accounted for more than ten percent of consolidated revenue | Customer | 0 | 1 | 1 |
Consolidated Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Semiconductor Test | Consolidated Revenue | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 13.00% | 22.00% | 26.00% |
Semiconductor Test | Customer 1 | Consolidated Revenue | Revenue from Rights Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 13.00% | 12.00% | |
Semiconductor Test | Customer 2 | Consolidated Revenue | Revenue from Rights Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 12.00% |
Schedule of Segment Information
Schedule of Segment Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | $ 2,100,802 | $ 2,136,606 | $ 1,753,250 |
Income (loss) before taxes | [2],[3] | 467,801 | 524,411 | (55,060) |
Total assets | [4] | 2,706,606 | 3,109,545 | 2,762,493 |
Property additions | 114,379 | 105,375 | 85,272 | |
Depreciation and amortization expense | 113,224 | 108,075 | 120,009 | |
Semiconductor Test | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,492,417 | 1,662,549 | 1,368,169 | |
Income (loss) before taxes | [2],[3] | 397,645 | 491,361 | 311,939 |
Total assets | [4] | 669,452 | 597,480 | 557,546 |
Property additions | 94,496 | 87,920 | 70,543 | |
Depreciation and amortization expense | 58,095 | 58,901 | 58,087 | |
System Test | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 216,132 | 192,135 | 189,846 | |
Income (loss) before taxes | [2],[3] | 48,857 | 10,305 | 28,916 |
Total assets | [4] | 88,098 | 97,018 | 110,361 |
Property additions | 3,469 | 5,976 | 3,788 | |
Depreciation and amortization expense | 6,430 | 6,646 | 6,551 | |
Industrial Automation | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 261,452 | 170,056 | 99,031 | |
Income (loss) before taxes | [2],[3] | 7,670 | 8,763 | (16,783) |
Total assets | [4] | 607,502 | 368,037 | 317,635 |
Property additions | 11,188 | 7,044 | 6,755 | |
Depreciation and amortization expense | 36,755 | 25,711 | 26,869 | |
Wireless Test | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 132,006 | 111,866 | 96,204 | |
Income (loss) before taxes | [2],[3] | 29,052 | 17,350 | (371,409) |
Total assets | [4] | 77,570 | 59,912 | 62,366 |
Property additions | 5,226 | 4,435 | 4,186 | |
Depreciation and amortization expense | 5,328 | 5,392 | 25,921 | |
Corporate And Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (1,205) | |||
Income (loss) before taxes | [2],[3] | (15,423) | (3,368) | (7,723) |
Total assets | [4] | 1,263,984 | 1,987,098 | 1,714,585 |
Depreciation and amortization expense | $ 6,616 | $ 11,425 | $ 2,581 | |
[1] | Revenues attributable to a country are based on location of customer site. | |||
[2] | Included in Corporate and Other are: contingent consideration adjustments, pension and postretirement plans actuarial gains (losses), severance charges, impairment of fixed assets and expenses related to the Japan earthquake, property insurance recovery, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations and acquisition related charges. | |||
[3] | Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. In 2016, loss before income taxes in Wireless Test also included charges related to goodwill and acquired intangible assets impairment. | |||
[4] | Total assets are attributable to each segment. 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 | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Jul. 03, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Acquisition related costs | $ 500 | $ 800 | $ 2,500 | $ 800 | $ 4,500 | |||||||||||||||
Restructuring and other-employee severance | 11,446 | [1],[2] | 1,710 | [2],[3] | 2,389 | [2],[4] | (313) | [5] | $ 8,970 | [6],[7] | $ (4,407) | [7],[8] | $ 2,288 | [7],[9] | $ 2,511 | [10] | 15,232 | $ 9,362 | $ 21,942 | |
Goodwill impairment charge | 254,946 | |||||||||||||||||||
Intangible assets impairment charge | 8,800 | 83,339 | ||||||||||||||||||
Contingent consideration adjustment | 987 | 7,820 | 15,896 | |||||||||||||||||
Universal Robots (UR) | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Contingent consideration adjustment | 7,400 | $ 800 | $ 3,500 | $ 5,000 | $ 6,000 | $ (300) | $ 1,500 | $ 600 | (16,700) | 7,800 | 15,300 | |||||||||
Mobile Industrial Robots (MiR) | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Contingent consideration adjustment | $ 17,700 | 17,700 | ||||||||||||||||||
Semiconductor Test | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Cost of revenues-inventory charge | 6,822 | 4,606 | 9,656 | |||||||||||||||||
Semiconductor Test | Fixed Assets [Member] | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Restructuring and other-employee severance | 1,124 | |||||||||||||||||||
Semiconductor Test | Severance And Benefits | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Restructuring and other-employee severance | 8,429 | 1,779 | 2,860 | |||||||||||||||||
System Test | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Cost of revenues-inventory charge | 1,175 | 1,918 | 630 | |||||||||||||||||
Industrial Automation | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Acquisition related costs | 1,163 | |||||||||||||||||||
Cost of revenues-inventory charge | 680 | |||||||||||||||||||
Restructuring and other-employee severance | 1,414 | 585 | ||||||||||||||||||
Wireless Test | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Cost of revenues-inventory charge | 2,565 | 2,190 | 7,207 | |||||||||||||||||
Restructuring and other-lease impairment | 972 | |||||||||||||||||||
Restructuring and other-employee severance | 2,650 | |||||||||||||||||||
Goodwill impairment charge | $ 254,900 | 254,946 | ||||||||||||||||||
Intangible assets impairment charge | $ 83,300 | 83,339 | ||||||||||||||||||
Corporate And Eliminations | Restructuring and other | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Acquisition related costs | 3,422 | |||||||||||||||||||
Restructuring and other | 872 | |||||||||||||||||||
Property insurance recovery | (5,064) | (5,051) | ||||||||||||||||||
Corporate And Eliminations | Universal Robots (UR) | Restructuring and other | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Contingent consideration adjustment | (16,679) | 7,820 | 15,346 | |||||||||||||||||
Corporate And Eliminations | Impairment of Fixed Assets and Expenses Related to the Japan Earthquake | Restructuring and other | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Building impairment and other expenses | $ 755 | $ 5,051 | ||||||||||||||||||
Corporate And Eliminations | Mobile Industrial Robots (MiR) | Restructuring and other | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Contingent consideration adjustment | $ 17,666 | |||||||||||||||||||
[1] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[3] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | |||||||||||||||||||
[4] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | |||||||||||||||||||
[5] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | |||||||||||||||||||
[6] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | |||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[8] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | |||||||||||||||||||
[9] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | |||||||||||||||||||
[10] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
Schedule of Revenues by Country
Schedule of Revenues by Country (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | $ 2,100,802 | $ 2,136,606 | $ 1,753,250 |
TAIWAN | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 516,322 | 687,031 | 653,076 |
CHINA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 348,942 | 260,451 | 174,876 |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 282,869 | 252,516 | 221,948 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 223,207 | 163,715 | 117,671 |
KOREA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 163,224 | 206,819 | 147,882 |
JAPAN | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 158,281 | 169,093 | 135,978 |
MALAYSIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 122,797 | 124,048 | 103,472 |
SINGAPORE | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 108,618 | 101,085 | 73,172 |
PHILIPPINES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 77,996 | 105,850 | 54,705 |
THAILAND | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | 59,184 | 29,566 | 43,097 |
Rest Of The World | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue from unaffiliated customers | [1] | $ 39,362 | $ 36,432 | $ 27,373 |
[1] | Revenues attributable to a country are based on location of customer site. |
Schedule of Long-Lived Assets b
Schedule of Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 279,821 | $ 268,447 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 209,368 | 198,855 | |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | $ 70,453 | $ 69,592 |
[1] | As of December 31, 2018 and 2017, long-lived assets attributable to Singapore were $19.4 million and $23.6 million, respectively. |
Schedule of Long-Lived Assets_2
Schedule of Long-Lived Assets by Geographic Area (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 279,821 | $ 268,447 |
SINGAPORE | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 19,400 | $ 23,600 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2018 | Jan. 31, 2015 | |
Stock Repurchase Programs [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 500,000,000 | |||||
Stock Repurchased During Period, Shares | 6.8 | |||||
Cumulative repurchases, value | $ 832,356,000 | $ 200,304,000 | $ 146,331,000 | |||
Treasury stock average price per share | $ 21.39 | |||||
Cumulative repurchases, shares | 21.6 | 5.8 | 22.5 | |||
Cumulative repurchases, value | $ 823,500,000 | $ 200,000,000 | $ 446,000,000 | |||
Common stock average price | $ 38.06 | $ 34.30 | $ 19.87 | |||
Scenario, Forecast | ||||||
Stock Repurchase Programs [Line Items] | ||||||
Cumulative repurchases, value | $ 500,000,000 | |||||
Maximum | ||||||
Stock Repurchase Programs [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 1,500,000,000 | $ 500,000,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event | 1 Months Ended |
Jan. 31, 2019$ / shares | |
Subsequent Event [Line Items] | |
Cash Dividends payable, amount per share | $ 0.09 |
Cash Dividends payable, date to be paid | Mar. 22, 2019 |
Cash Dividends payable, record date | Feb. 22, 2019 |
Consolidated Quarterly Statemen
Consolidated Quarterly Statements of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | [1],[2] | Sep. 30, 2018 | [2],[3] | Jul. 01, 2018 | [2],[4] | Apr. 01, 2018 | [5] | Dec. 31, 2017 | [6],[7] | Oct. 01, 2017 | [7],[8] | Jul. 02, 2017 | [7],[9] | Apr. 02, 2017 | [10] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total revenues | $ 519,558 | $ 566,848 | $ 526,929 | $ 487,467 | $ 479,415 | $ 503,378 | $ 696,901 | $ 456,913 | $ 2,100,802 | $ 2,136,606 | $ 1,753,250 | ||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 210,023 | 233,155 | 219,595 | 217,635 | 208,485 | 208,509 | 306,263 | 191,897 | 880,408 | 915,153 | 794,642 | ||||||||
Gross profit | 309,535 | 333,693 | 307,334 | 269,832 | 270,930 | 294,869 | 390,638 | 265,016 | 1,220,394 | 1,221,453 | 958,608 | ||||||||
Selling and administrative | 100,552 | 100,202 | 99,410 | 90,505 | 87,880 | 86,130 | 90,111 | 84,792 | 390,669 | 348,913 | 316,544 | ||||||||
Engineering and development | 74,706 | 77,049 | 75,342 | 74,408 | 72,070 | 76,986 | 82,270 | 75,978 | 301,505 | 307,305 | 292,159 | ||||||||
Acquired intangible assets amortization | 10,558 | 11,142 | 9,793 | 7,698 | 7,384 | 7,028 | 8,166 | 7,952 | 39,191 | 30,530 | 52,648 | ||||||||
Restructuring and other | 11,446 | 1,710 | 2,389 | (313) | 8,970 | (4,407) | 2,288 | 2,511 | 15,232 | 9,362 | 21,942 | ||||||||
Total operating expenses | 197,262 | 190,103 | 186,934 | 172,298 | 176,304 | 165,737 | 182,835 | 171,233 | 746,597 | 696,110 | 1,021,578 | ||||||||
Income (loss) from operations | 112,273 | 143,590 | 120,400 | 97,534 | 94,626 | 129,132 | 207,803 | 93,783 | 473,797 | 525,343 | (62,970) | ||||||||
Interest income | (9,083) | (6,213) | (5,427) | (5,981) | (6,476) | (4,517) | (3,292) | (3,520) | (26,704) | (17,805) | (9,296) | ||||||||
Interest expense | 13,182 | 5,557 | 5,639 | 6,890 | 5,380 | 5,372 | 5,509 | 5,402 | 31,269 | 21,663 | 3,637 | ||||||||
Other (income) expense, net | (2,954) | 3,405 | 176 | 805 | (2,362) | 840 | (1,291) | (115) | 1,431 | (2,927) | (2,251) | ||||||||
Income (loss) before income taxes | 111,128 | 140,841 | 120,012 | 95,820 | 98,084 | 127,437 | 206,877 | 92,016 | 467,801 | 524,412 | (55,060) | ||||||||
Income tax provision (benefit) | (32,662) | 20,863 | 18,975 | 8,846 | 204,007 | 24,017 | 31,901 | 6,795 | 16,022 | 266,720 | (11,639) | ||||||||
Net income (loss) | $ 143,790 | $ 119,978 | $ 101,037 | $ 86,974 | $ (105,923) | $ 103,420 | $ 174,976 | $ 85,221 | $ 451,779 | $ 257,692 | $ (43,421) | ||||||||
Net income (loss) per common share-basic | $ 0.80 | $ 0.65 | $ 0.53 | $ 0.45 | $ (0.54) | $ 0.52 | $ 0.88 | $ 0.43 | $ 2.41 | $ 1.30 | $ (0.21) | ||||||||
Net income (loss) per common share-diluted | 0.79 | 0.63 | 0.52 | 0.43 | (0.54) | 0.52 | 0.87 | 0.42 | 2.35 | 1.28 | (0.21) | ||||||||
Cash dividend declared per common share | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.36 | $ 0.28 | $ 0.24 | ||||||||
Product [Member] | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total revenues | $ 420,652 | $ 470,994 | $ 434,051 | $ 403,925 | $ 388,282 | $ 412,854 | $ 610,356 | $ 373,204 | $ 1,729,621 | $ 1,784,695 | $ 1,453,248 | ||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 170,064 | 195,339 | 180,777 | 180,958 | 168,672 | 169,661 | 267,752 | 154,883 | 727,138 | 760,967 | 660,056 | ||||||||
Service [Member] | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total revenues | 98,906 | 95,854 | 92,878 | 83,542 | 91,133 | 90,524 | 86,545 | 83,709 | 371,181 | 351,911 | 300,002 | ||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 39,959 | $ 37,816 | $ 38,818 | $ 36,677 | $ 39,813 | $ 38,848 | $ 38,511 | $ 37,014 | $ 153,270 | $ 154,186 | $ 134,586 | ||||||||
[1] | Restructuring and other includes a $17.7 million fair value adjustment to increase the MiR acquisition contingent consideration, $0.8 million of employee severance charges, and $0.5 million acquisition related expenses and compensation, partially offset by a $7.4 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial (gains) losses of $(0.1) million, $0.3 million and $(3.5) million for the second, third and fourth quarter in 2018, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes $1.7 million of employee severance charges, $0.8 million of acquisition related expenses and compensation, partially offset by a $0.8 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability. | ||||||||||||||||||
[4] | Restructuring and other includes a $5.0 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $3.9 million of employee severance charges and $0.8 million of acquisition related expenses and compensation. | ||||||||||||||||||
[5] | Restructuring and other includes a $3.5 million gain for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $2.5 million of acquisition related expenses and compensation and $2.4 million of employee severance charges. | ||||||||||||||||||
[6] | Restructuring and other includes a $6.0 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, $1.8 million of employee severance charges, and $1.1 million of charges for impairment of fixed assets. | ||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $2.8 million and $3.8 million for the second and fourth quarter in 2017, respectively. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[8] | Restructuring and other includes $5.1 million of property insurance recovery related to the Japan earthquake, a $0.4 million credit related to previously impaired lease termination of a Wireless Test facility in Sunnyvale, CA, and a $0.3 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability, partially offset by $0.8 million of Japan earthquake related expenses and $0.6 million of employee severance charges. | ||||||||||||||||||
[9] | Restructuring and other includes a $1.5 million charge for a fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.8 million of employee severance charges. | ||||||||||||||||||
[10] | Restructuring and other includes a $1.3 million charge for a lease impairment of a Wireless Test facility in Sunnyvale, CA, a $0.6 million fair value adjustment to increase the Universal Robots acquisition contingent consideration, and $0.6 million of employee severance charges. |
Consolidated Quarterly Statem_2
Consolidated Quarterly Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Oct. 01, 2017 | Jul. 02, 2017 | Apr. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information [Line Items] | |||||||||||
Contingent consideration fair value adjustment | $ 987 | $ 7,820 | $ 15,896 | ||||||||
Severance benefit and charges | $ 800 | $ 1,700 | $ 2,400 | $ 3,900 | $ 1,800 | $ 600 | $ 800 | $ 600 | |||
Acquisition related expense and compensation | 500 | 800 | 2,500 | 800 | 4,500 | ||||||
Impairment of fixed assets | 1,100 | ||||||||||
Pension and post retirement net actuarial (gains) losses | (3,500) | 300 | (100) | (3,800) | (2,800) | ||||||
Impairment of Fixed Assets and Expenses Related to the Japan Earthquake | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Property insurance recovery | 5,100 | 5,100 | 5,100 | ||||||||
Impairment of Fixed Assets and Expenses Related to the Japan Earthquake | Earthquake Related Expenses | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Impairment of fixed assets and other expenses | 800 | 800 | 900 | ||||||||
Universal Robots (UR) | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Contingent consideration fair value adjustment | 7,400 | $ 800 | $ 3,500 | $ 5,000 | $ 6,000 | (300) | $ 1,500 | 600 | (16,700) | $ 7,800 | $ 15,300 |
Mobile Industrial Robots (MiR) | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Contingent consideration fair value adjustment | $ 17,700 | $ 17,700 | |||||||||
Wireless Test | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Lease impairment | $ 1,300 | ||||||||||
Previously impaired lease termination | $ 400 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 2,219 | $ 2,356 | $ 2,407 |
Additions Charged to Cost and Expenses | 4 | ||
Other | 20 | ||
Deductions | 566 | 141 | 51 |
Balance at End of Period | 1,673 | 2,219 | 2,356 |
Inventory Reserve | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 102,896 | 116,016 | 119,376 |
Additions Charged to Cost and Expenses | 11,242 | 8,844 | 17,493 |
Other | 368 | (126) | 4,417 |
Deductions | 13,727 | 21,838 | 25,270 |
Balance at End of Period | 100,779 | 102,896 | 116,016 |
Valuation Allowance of Deferred Tax Assets | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 63,919 | 48,369 | 43,039 |
Additions Charged to Cost and Expenses | 6,333 | 15,571 | 5,413 |
Other | |||
Deductions | 400 | 21 | 83 |
Balance at End of Period | $ 69,852 | $ 63,919 | $ 48,369 |