Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2019 | ||
Entity Central Index Key | 0000097210 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | TERADYNE, INC | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 7.3 | ||
Trading Symbol | TER | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity Current Reporting Status | Yes | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-06462 | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Tax Identification Number | 04-2272148 | ||
Entity Address, Address Line One | 600 RIVERPARK DRIVE | ||
Entity Address, City or Town | NORTH READING | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01864 | ||
City Area Code | 978 | ||
Local Phone Number | 370-2700 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 166,784,497 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 773,924 | $ 926,752 | |
Marketable securities | 137,303 | 190,096 | |
Accounts receivable, less allowance for doubtful accounts of $1,736 and $1,673 in 2019 and 2018, respectively | 362,368 | 291,267 | |
Inventories, net | 196,691 | 153,541 | |
Prepayments and other current assets | 188,598 | 170,826 | |
Total current assets | 1,658,884 | 1,732,482 | |
Property, plant and equipment, net | 320,216 | 279,821 | |
Lease right-of-use assets | 57,539 | ||
Marketable securities | 104,490 | 87,731 | |
Deferred tax assets | 75,185 | 70,848 | |
Retirement plans assets | 18,457 | 16,883 | |
Other assets | 10,332 | 11,509 | |
Acquired intangible assets, net | 125,480 | 125,482 | |
Goodwill | 416,431 | 381,850 | |
Total assets | [1] | 2,787,014 | 2,706,606 |
Current liabilities: | |||
Accounts payable | 126,617 | 100,688 | |
Accrued employees' compensation and withholdings | 163,883 | 148,566 | |
Deferred revenue and customer advances | 104,876 | 77,711 | |
Other accrued liabilities | 70,871 | 78,272 | |
Operating lease liabilities | 19,476 | ||
Contingent consideration | 9,106 | 34,865 | |
Income taxes payable | 44,200 | 36,185 | |
Total current liabilities | 539,029 | 476,287 | |
Retirement plans liabilities | 134,471 | 117,456 | |
Long-term deferred revenue and customer advances | 45,974 | 32,750 | |
Long-term contingent consideration | 30,599 | 35,678 | |
Deferred tax liabilities | 14,070 | 20,662 | |
Long-term other accrued liabilities | 19,535 | 37,547 | |
Long-term operating lease liabilities | 45,849 | ||
Long-term income taxes payable | 82,642 | 83,891 | |
Debt | 394,687 | 379,981 | |
Total liabilities | 1,306,856 | 1,184,252 | |
Commitments and contingencies (Note M) | |||
SHAREHOLDERS' EQUITY | |||
Common stock, $0.125 par value, 1,000,000 shares authorized, 166,410 and 175,522 shares issued and outstanding at December 31, 2019 and 2018, respectively | 20,801 | 21,940 | |
Additional paid-in capital | 1,720,129 | 1,671,645 | |
Accumulated other comprehensive loss | (18,854) | (13,040) | |
Accumulated deficit | (241,918) | (158,191) | |
Total shareholders' equity | 1,480,158 | 1,522,354 | |
Total liabilities and shareholders' equity | $ 2,787,014 | $ 2,706,606 | |
[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, 2019 | Dec. 31, 2018 |
Accounts receivable, less allowance for doubtful accounts | $ 1,736 | $ 1,673 |
Common stock, par value | $ 0.125 | $ 0.125 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 166,410,000 | 175,522,000 |
Common stock, shares outstanding | 166,410,000 | 175,522,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Revenues: | ||||||
Total revenues | [2] | $ 2,294,965 | [1] | $ 2,100,802 | [1] | $ 2,136,606 |
Cost of revenues: | ||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 955,136 | 880,408 | 915,153 | |||
Gross profit | 1,339,829 | 1,220,394 | 1,221,453 | |||
Operating expenses: | ||||||
Selling and administrative | 437,084 | 390,669 | 348,913 | |||
Engineering and development | 322,824 | 301,505 | 307,305 | |||
Acquired intangible assets amortization | 40,147 | 39,191 | 30,530 | |||
Restructuring and other | (13,880) | 15,232 | 9,362 | |||
Total operating expenses | 786,175 | 746,597 | 696,110 | |||
Income from operations | 553,654 | 473,797 | 525,343 | |||
Non-operating (income) expense: | ||||||
Interest income | (24,785) | (26,704) | (17,805) | |||
Interest expense | 23,145 | 31,269 | 21,663 | |||
Other (income) expense, net | 29,522 | 1,431 | (2,927) | |||
Income before income taxes | 525,772 | 467,801 | 524,412 | |||
Income tax provision | 58,304 | 16,022 | 266,720 | |||
Net income | $ 467,468 | $ 451,779 | $ 257,692 | |||
Net income per common share: | ||||||
Basic | $ 2.74 | $ 2.41 | $ 1.30 | |||
Diluted | $ 2.60 | $ 2.35 | $ 1.28 | |||
Weighted average common shares—basic | 170,425 | 187,672 | 198,069 | |||
Weighted average common shares—diluted | 179,459 | 192,605 | 201,641 | |||
Cash dividend declared per common share | $ 0.36 | $ 0.36 | $ 0.28 | |||
Product [Member] | ||||||
Revenues: | ||||||
Total revenues | $ 1,887,674 | $ 1,729,621 | $ 1,784,695 | |||
Cost of revenues: | ||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 782,047 | 727,138 | 760,967 | |||
Service [Member] | ||||||
Revenues: | ||||||
Total revenues | 407,291 | 371,181 | 351,911 | |||
Cost of revenues: | ||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 173,089 | $ 153,270 | $ 154,186 | |||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | |||||
[2] | Revenues attributable to a country are based on location of customer site. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 467,468 | $ 451,779 | $ 257,692 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustment, net of tax of $0, $0, $0 | (10,991) | (28,442) | 37,840 |
Available-for-sale marketable securities: | |||
Unrealized gains (losses) on debt securities arising during period, net of tax of $1,659, $(722), $1,903, respectively | 6,015 | (2,110) | 1,863 |
Less: Reclassification adjustment for (gains) losses included in net income, net of tax of $(192), $(21), $(297), respectively | (690) | 1,337 | (441) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | 5,325 | (773) | 1,422 |
Defined benefit pension and post-retirement plans: | |||
Amortization of prior service benefit included in net periodic pension and post-retirement benefit, net of tax $(43), $(71), $(154), respectively | (148) | (245) | (272) |
Other comprehensive (loss) income | (5,814) | (29,460) | 38,990 |
Comprehensive income | $ 461,654 | $ 422,319 | $ 296,682 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 |
Unrealized (losses) gains on marketable securities arising during period, net of tax | 1,659 | (722) | 1,903 |
Reclassification adjustment for losses (gains) included in net income, net of tax | (192) | (21) | (297) |
Amortization of prior service (credit) cost included in net periodic pension and post-retirement expense/income, net of tax | $ (43) | $ (71) | $ (154) |
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 (Loss) Income | Accumulated Deficit | |
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 issuance of common stock under stock-based plans | 11,024 | $ 277 | 10,747 | |||
Net issuance of common stock under stock-based plans (in shares) | 2,211 | |||||
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) | |||||
Tax benefit related to stock options and restricted stock units | 39,081 | 39,081 | ||||
Cash dividends | (55,478) | (55,478) | ||||
Net income | 257,692 | 257,692 | ||||
Other comprehensive loss | 38,990 | 38,990 | ||||
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 | |||||
Net issuance of common stock under stock-based plans | 129 | $ 201 | (72) | |||
Net issuance of common stock under stock-based plans (in shares) | 1,613 | |||||
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 | 451,779 | 451,779 | ||||
Other comprehensive loss | (29,460) | (29,460) | ||||
Reclassification of unrealized gains on equity securities | (3,125) | 3,125 | ||||
Reclassification of tax effects resulting from the Tax Reform Act | 769 | [1] | 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 | |||||
Cumulative effect of changes in accounting principle related to revenue recognition | 12,679 | 12,679 | ||||
Net issuance of common stock under stock-based plans | 10,622 | $ 223 | 10,399 | |||
Net issuance of common stock under stock-based plans (in shares) | 1,784 | |||||
Stock-based compensation expense | 38,085 | 38,085 | ||||
Repurchase of common stock | (491,202) | $ (1,362) | (489,840) | |||
Repurchase of common stock (in shares) | (10,896) | |||||
Cash dividends | (61,355) | (61,355) | ||||
Net income | 467,468 | 467,468 | ||||
Other comprehensive loss | (5,814) | (5,814) | ||||
Balance at Dec. 31, 2019 | $ 1,480,158 | $ 20,801 | $ 1,720,129 | $ (18,854) | $ (241,918) | |
Balance, Shares at Dec. 31, 2019 | 166,410 | |||||
[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. |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 | $ 0.09 | $ 0.07 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 467,468 | $ 451,779 | $ 257,692 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: | |||
Depreciation | 70,834 | 67,415 | 66,122 |
Amortization | 49,821 | 45,809 | 41,953 |
Stock-based compensation | 37,897 | 33,577 | 34,097 |
Deferred taxes | (9,456) | 28,340 | 37,105 |
Provision for excess and obsolete inventory | 15,244 | 11,242 | 8,844 |
Investment impairment | 15,000 | ||
Contingent consideration fair value adjustment | (19,257) | 987 | 7,820 |
(Gains) losses on investments | (6,033) | 3,494 | (878) |
Retirement plans actuarial losses (gains) | 8,176 | (3,316) | (6,624) |
Property insurance recovery, net | (4,309) | ||
Other | 766 | 1,083 | 1,585 |
Changes in operating assets and liabilities, net of businesses acquired: | |||
Accounts receivable | (70,440) | (17,938) | (80,584) |
Inventories | (27,408) | (29,498) | 44,960 |
Prepayments and other assets | (23,784) | (58,402) | 2,254 |
Accounts payable and other liabilities | 49,279 | 13,693 | 43,574 |
Deferred revenue and customer advances | 39,313 | 13,379 | 4,984 |
Retirement plans contributions | (5,086) | (4,334) | (5,902) |
Income taxes | (13,584) | (80,429) | 173,802 |
Net cash provided by operating activities | 578,750 | 476,881 | 626,495 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (134,642) | (114,379) | (105,375) |
Proceeds from government subsidy for property, plant and equipment | 7,920 | ||
Purchases of marketable securities | (662,701) | (918,744) | (1,391,917) |
Proceeds from maturities of marketable securities | 611,927 | 1,270,439 | 701,681 |
Proceeds from sales of marketable securities | 105,586 | 846,122 | 527,746 |
Proceeds from insurance | 2,912 | 1,126 | 5,064 |
Purchase of investment and acquisition of businesses, net of cash acquired | (79,742) | (169,474) | |
Net cash (used for) provided by investing activities | (156,660) | 923,010 | (262,801) |
Cash flows from financing activities: | |||
Issuance of common stock under stock purchase and stock option plans | 29,312 | 20,973 | 24,493 |
Repurchase of common stock | (500,000) | (823,478) | (200,304) |
Dividend payments | (61,305) | (67,322) | (55,447) |
Payments related to net settlement of employee stock compensation awards | (14,741) | (20,023) | (12,881) |
Payments of contingent consideration | (27,615) | (13,571) | (1,050) |
Net cash used for financing activities | (574,349) | (903,421) | (245,189) |
Effects of exchange rate changes on cash and cash equivalents | (569) | 439 | 3,454 |
(Decrease) Increase in cash and cash equivalents | (152,828) | 496,909 | 121,959 |
Cash and cash equivalents at beginning of year | 926,752 | 429,843 | 307,884 |
Cash and cash equivalents at end of year | 773,924 | 926,752 | 429,843 |
Cash paid for: | |||
Interest | 5,996 | 6,205 | 6,446 |
Income taxes | $ 81,410 | $ 72,811 | $ 53,775 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2019 | |
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; • industrial automation (“Industrial Automation”) products; • 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”); and • wireless test (“Wireless Test”) systems. On February 26, 2018, Teradyne acquired Energid Technologies Corporation (“Energid”) for a total purchase price of approximately $27.6 million. Energid’s technology enables and simplifies the programming of complex robotic motions used in a wide variety of end markets, ranging from heavy industry to healthcare, utilizing both traditional robots and collaborative robots. Energid is included in Teradyne’s Industrial Automation segment. On April 25, 2018, Teradyne acquired Mobile Industrial Robots ApS (“MiR”), a Danish limited liability company . MiR is a of approximately $145.2 million a nd in fair value Contingent consideration for 2018 was $30.8 million and was paid in March 2019. Contingent consideration for 2019 was $9.1 million and is expected to be paid in March 2020. MiR is ’s Industrial Automation segment. On January 30, 2019, Teradyne acquired all of the issued and outstanding shares of Lemsys SA (“Lemsys”) for a total purchase price of approximately $9.1 million. Lemsys strengthens Teradyne’s position in the electrification of vehicles, solar and wind power, and industrial applications. Lemsys is included in Teradyne’s Semiconductor Test segment. On June 3, 2019, Teradyne invested $15.0 million in RealWear, Inc. (“RealWear”). RealWear, a private company, develops and sells advanced wearable technology including industrial, hands-free, head-mounted augmented reality devices that make the workplace safer and more productive. On February 28, 2020, RealWear’s debt holder demanded repayment of its $25.0 million loan to RealWear. As a result, in the fourth quarter of 2019, Teradyne recorded an impairment charge of $15.0 million to reduce its investment in RealWear to zero as of December 31, 2019. On November 1 3 , membership interests . T he total purchase price was approximately $81.7 million, which included cash paid of approximately $57.8 million and $24.0 million in fair value of contingent consideration payable upon achievement of certain performance targets, extending potentially through 2022. The maximum contingent consideration that could be paid million. AutoGuide’s AMRs are used for material transport of payloads up to 4,500 kg in manufacturing, warehouse and logistics applications. These products complement MiR’s lower payload products. AutoGuide is included in our Industrial Automation segment. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 contingent consideration liabil ities , Revenue Recognition Revenue from Contracts with Customers Teradyne adopted Accounting Standard Codification (“ASC”) 606 “ Revenue from Contracts with Customers” 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. • 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. • 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. • 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. • 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. • 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. Performance Obligations Products Teradyne products consist 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, industrial automation products and wireless test systems. Teradyne’s hardware is recognized at a point in time upon transfer of control to the customer. Services Teradyne services consist of extended warranties, training and application support, service agreement, post contract customer support (“PCS”) and replacement parts. Each service is recognized based on relative standalone selling price. Extended warranty, training and support, service agreements and PCS are recognized over time based on the period of service. Replacement parts are recognized at a point in time upon transfer of control to the customer. Teradyne does not allow customer returns or provide refunds to customers for any products or services. Teradyne products include a standard 12-month As of December 31, 2019 and 2018, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2019 2018 (in thousands) Maintenance , service $ 63,815 $ 58,362 Extended warranty 30,677 27,422 Customer advances, undelivered elements and other 56,358 24,677 Total deferred revenue and customer advances $ 150,850 $ 110,461 Product Warranty Teradyne generally provides a one-year Amount (in thousands) 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 Acquisition 14 Accruals for warranties issued during the period 14,106 Accruals related to pre-existing 4,026 Settlements made during the period (17,059 ) Balance at December 31, 2019 $ 8,996 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, 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 Deferral of new extended warranty revenue 23,271 Recognition of extended warranty deferred revenue (20,016 ) Balance at December 31, 2019 $ 30,677 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 are are 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, 2019 and 2018. As defined in ASC 820-10, Fair Value Measurements and Disclosures, 820-10 Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. In accordance with ASC 820-10, 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 Investment in Other Company Teradyne holds an investment in a private company that develops and sells advanced wearable technology. Teradyne does not have the ability to exert significant influence over the company. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer on a quarterly basis. See Note D: “Acquisitions and Investment in Other Company.” Prepayments Prepayments consist of the following and are included in prepayments and other current assets on the balance sheet: 2019 2018 (in thousands) Contract manufacturer and supplier prepayments $ 143,392 $ 131,642 Prepaid taxes 8,046 9,646 Prepaid maintenance and other services 8,503 8,487 Other prepayments 16,753 12,744 Total prepayments $ 176,694 $ 162,519 Retirement and Postretirement Plans 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. Retirement Benefits In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost non-service 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 , million , 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 goodwill and intangible assets in accordance with ASC 350-10, Intangibles-Goodwill and Other. 350-10, two-step two-step In accordance with ASC 360-10, Impairment or Disposal of Long-Lived Assets, carrying Business Combination Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of identifiable intangible assets is based on detailed cash flow valuations that use information and assumptions provided by management. Teradyne estimates the fair value of contingent consideration at the time of the acquisition using all pertinent information known to us at the time to assess the probability of payment of contingent amounts or through the use of a Monte Carlo simulation model. Teradyne allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill. The assumptions used in the valuations for our acquisitions may differ materially from actual results depending on performance of the acquired businesses and other factors. While Teradyne believes the assumptions used were appropriate, different assumptions in the valuation of assets acquired and liabilities assumed could have a material impact on the timing and extent of impact on our statements of operations. Goodwill is assigned to reporting units as of the date of the related acquisition. Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related 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 software 3 to 5 years Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” right-of-use 2018-11, “Leases (Topic 842): Targeted Improvements,” Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset. Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. Teradyne determines if the lease is an lease For leases commencing after January 1, 2019, the lease liability is measured at the present value of future lease payments, discounted using the discount rate for the lease at the commencement date. As Teradyne is typically unable to determine the implicit rate, Teradyne uses an incremental borrowing rate based on the lease term and economic environment at commencement date. Teradyne initially measures payments based on an index by using the applicable rate at lease commencement. Variable payments that do not depend on an index are not included in the lease liability and are recognized as they are incurred. The ROU asset is initially measured as the amount of lease liability, adjusted for any initial lease costs, prepaid lease payments, and reduced by any lease incentives. Teradyne’s contracts often include non-lease non-lease Engineering and Development Costs Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility non-recurring Stock Compensation Plans and Employee Stock Purchase Plan Stock-based compensation expense is based on the grant-date fair value estimated in accordance with the provisions of ASC 718-10, Compensation-Stock Compensation In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Adoption of this ASU required recognition of a cumulative effect adjustment to retained earnings for any prior year excess tax benefits or tax deficiencies not previously recorded. The cumulative effect adjustment of $39 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 deficiencies related to stock-based compensation. Prior to adopting ASU 2016-09, paid-in 2016-09, ASU 2016-09 In addition, under ASU 2016-09, Upon adoption of ASU 2016-09, Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the “Accounting for Income Taxes.” tax-planning Advertising Costs Teradyne expenses all advertising costs as incurred. Advertising costs were $16.6 million, $15.4 million and $9.1 million in 2019, 2018 and 2017, respectively. Translation of Non-U.S. The functional currency for all non-U.S. non-monetary Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2019, 2018, and 2017, (gains) losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $(1.6) million, $(2.5) million, and $2.9 million, respectively. These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. Net Income (Loss) per Common Share Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, diluted net income (loss) per common share is calculated by dividing net income (loss) by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. With respect to its convertible debt issued in 2016, Teradyne has determined that it has the ability and intent to settle the principal of the convertible debt in cash; accordingly, the principal amount is excluded from the determination of diluted earnings per share. As a result, 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, 2019 | |
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 |
Acquisitions and Investment In
Acquisitions and Investment In Other Company | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions and Investment In Other Company | D. ACQUISITIONS AND INVESTMENT IN OTHER COMPANY Acquisitions AutoGuide LLC On November 1 3 me mbership interests . The total purchase price was approximately $81.7 million, which included cash paid of approximately $57.8 million and $ million in fair value of contingent consideration payable upon achievement of certain performance targets, extending potentially through 2022. At December 31, 2019, the maximum contingent consideration that could be paid is $ million. The contingent consideration is payable upon achievement o t 1 2 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 AutoGuide 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. AutoGuide’s AMRs are used for material transport of payloads up to 4,500 kg in manufacturing, warehouse and logistics applications. These products complement MiR’s lower payload products and expand the Industrial Automation segment , which is a key c omponent of Teradyne ’ s growth strateg y. The preliminary allocation of the total purchase price to AutoGuide’s net tangible assets and identifiable intangible assets was based on their estimated preliminary fair values as of the acquisition date. The excess of the purchase price over the identifiable intangible assets and net tangible assets in the amount of $41.4 million was allocated to goodwill, which is deductible for tax purposes. AutoGuide’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition. The following table represents the preliminary allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 41,372 Intangible assets 37,660 Tangible assets acquired and liabilities assumed: Other c 3,661 Non-current 1,227 Accounts payable and current liabilities (1,223 ) Long-term other (949 ) Total purchase price $ 81,748 Teradyne estimated the fair value of intangible assets using the income approach. Forecasted revenues is the key assumption for estimating the fair value. 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 (in thousands) (in years) Developed technology $ 24,590 6.0 Customer relationships 7,360 6.0 Trademarks and tradenames 5,450 7.0 Backlog 260 0.3 Total intangible assets $ 37,660 6.1 For the period from November 13, 2019 to December 31, 2019, AutoGuide contributed $ 1.4 (0.9) Lemsys SA On January 30, 2019, Teradyne acquired all of the issued and outstanding shares of Lemsys SA (“Lemsys”) for a total purchase price of approximately $ 9.1 and wind power , 1.4 4.6 5.2 3.1 Mobile Industrial Robots On April 25, 2018, Teradyne acquired all of a The total purchase price of $ 197.8 145.2 52.6 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. Contingent consideration for the period from January 1, 2018 to December 31, 2018 was $31.0 million and was paid in March 2019. Contingent consideration for the period from January 1, 201 8 $ 9.1 million , based on the results during the period and modifi ca tion of t he earn - , At December 31, 2019, the remaining maximum amount of contingent consideration that could be paid is $63.2 million. 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 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 (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 from April 25, 2018 to December 31, 2018, MiR contributed $24.1 million of revenues and had a $( 7.6 Energid Technologies Corporation On February 26, 2018, Teradyne acquired all 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 consolidated financial statements. Pro Forma Information The following unaudited pro forma information gives effect to the acquisition of AutoGuide as if the acquisition occurred on January 1, 2018 and 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, 2019 December 31, 2018 (in thousands, except per share amounts) Revenues $ 2,303,737 $ 2,111,373 Net income $ 464,602 $ 442,082 Net income per common share: Basic $ 2.73 $ 2.36 Diluted $ 2.59 $ 2.30 Pro forma results for the year ended December 31, 2019 were adjusted to exclude $1.2 million of AutoGuide acquisition related costs and $0.1 million of AutoGuide non-recurring Pro forma results for the year ended December 31, 2018 were adjusted to include $1.2 million of AutoGuide acquisition related costs and $0.4 million of AutoGuide non-recurring Pro forma results for the year ended December 31, 2018 were adjusted to exclude $2.9 million of MiR acquisition related costs and $0.4 million of MiR non-recurring Investment in Other Company On June 3, 2019, Teradyne invested $15.0 million in RealWear, Inc. (“RealWear”). RealWear, a private company, develops and sells advanced wearable technology including industrial, hands-free, head-mounted augmented reality devices that make the workplace safer and more productive. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on a quarterly basis. On February 28, 2020, RealWear’s debt holder demanded repayment of its $25.0 million loan to RealWear. As a result, in the fourth quarter of 2019, Teradyne recorded an impairment charge of $15.0 million to reduce its investment in RealWear to zero as of December 31, 2019. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | E. REVENUE Disaggregation of Revenue The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. Semiconductor Industrial Automation System Test Wireless Test Corporate and Other Total System on-a-chip Memory Universal Mobile AutoGuide Energid (in thousands) For the Year Ended December 31, 2019 (1) Timing of Revenue Recognition Point in Time $ 1,070,375 $ 247,221 $ 244,515 $ 44,329 $ 1,144 $ — $ 237,686 $ 148,322 $ (515 ) $ 1,993,077 Over Time 216,065 18,910 3,952 74 234 3,891 49,769 8,993 — 301,888 Total $ 1,286,440 $ 266,131 $ 248,467 $ 44,403 $ 1,378 $ 3,891 $ 287,455 $ 157,315 $ (515 ) $ 2,294,965 Geographical Market Asia Pacific $ 1,152,881 $ 238,714 $ 67,806 $ 9,513 $ — $ 221 $ 132,826 $ 126,549 $ — $ 1,728,510 Americas 73,257 23,826 70,165 14,438 1,378 1,761 129,840 24,234 (515 ) 338,384 Europe, Middle East and Africa 60,302 3,591 110,496 20,452 — 1,909 24,789 6,532 — 228,071 Total $ 1,286,440 $ 266,131 $ 248,467 $ 44,403 $ 1,378 $ 3,891 $ 287,455 $ 157,315 $ (515 ) $ 2,294,965 For the Year Ended December 31, 2018 (1) Timing of Revenue Recognition Point in Time $ 1,010,493 $ 259,366 $ 231,895 $ 24,115 $ — $ 553 $ 167,418 $ 122,536 $ (1,205 ) $ 1,815,171 Over Time 208,456 14,102 2,200 — — 2,689 48,714 9,470 — 285,631 Total $ 1,218,949 $ 273,468 $ 234,095 $ 24,115 $ — $ 3,242 $ 216,132 $ 132,006 $ (1,205 ) $ 2,100,802 Geographical Market Asia Pacific $ 1,067,879 $ 245,264 $ 58,381 $ 5,950 $ — $ 111 $ 90,989 $ 107,872 $ — $ 1,576,446 Americas 78,498 17,353 68,938 7,326 — 1,540 96,763 19,166 (1,205 ) 288,379 Europe, Middle East and Africa 72,572 10,851 106,776 10,839 — 1,591 28,380 4,968 — 235,977 Total $ 1,218,949 $ 273,468 $ 234,095 $ 24,115 $ — $ 3,242 $ 216,132 $ 132,006 $ (1,205 ) $ 2,100,802 (1) Includes $8.4 million and $12.0 million in 2019 and 2018, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” Contract Balances For the year s , 1-3 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | F. INVENTORIES Inventories, net consisted of the following at December 31, 2019 and 2018: 2019 2018 (in thousands) Raw material $ 118,595 $ 89,365 Work-in-process 32,695 31,014 Finished g 45,401 33,162 $ 196,691 $ 153,541 Inventory reserves for the years ended December 31, 2019 and 2018 were $103.6 million and $100.8 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment | G. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consisted of the following at December 31, 2019 and 2018: 2019 2018 (in thousands) Land $ 16,561 $ 16,561 Buildings 107,282 105,935 Machinery , and s oftware 834,970 752,722 Furniture and fixtures 29,157 27,432 Leasehold improvements 59,378 52,536 Construction in progress 2,537 6,276 1,049,885 961,462 Less: accumulated depreciation 729,669 681,641 $ 320,216 $ 279,821 Depreciation of property, plant and equipment for the years ended December 31, 2019, 2018, and 2017 was $70.8 million, $67.4 million, and $66.1 million, respectively. As of December 31, 2019 and 2018, the gross book value included in machinery and equipment for internally manufactured test systems being leased by customers was $5.4 million and $5.5 million, respectively. As of December 31, 2019 and 2018, the accumulated depreciation on these test systems was $5.1 million and $5.2 million, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments | H. 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): Recognition and Measurement of Financial Assets and Financial Liabilities, Teradyne’s available-for-sale 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, 2019 and 2018, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in 2019, 2018, and 2017 were $1.3 million, $4.0 million, and $1.1 million, respectively. Realized losses recorded in 2019, 2018, and 2017 were $0.2 million, $1.6 million, and $0.3 million, respectively. Realized gains are included in interest income and realized losses are included in interest expense. Unrealized gains on equity securities recorded during the years ended December 31, 2019 and 2018 were $5.3 million and $1.4 million, respectively. Unrealized losses on equity securities recorded during the years ended December 31, 2019 and 2018 were $0.4 million and $7.4 million, respectively. Unrealized gains on equity securities are included in interest income and unrealized losses are included in interest expense. Unrealized gains and losses on available-for-sale 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, 2019 and 2018: December 31, 2019 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 $ 311,975 $ — $ — $ 311,975 Cash equivalents 410,285 51,664 — 461,949 Available for sale securities: Corporate debt securities — 97,307 — 97,307 Commercial paper — 54,149 — 54,149 U.S. Treasury securities — 42,382 — 42,382 U.S. government agency securities — 9,952 — 9,952 Debt mutual funds 6,888 — — 6,888 Certificates of deposit and time deposits — 4,751 — 4,751 Non-U.S. government securities — 592 — 592 Equity securities: Equity mutual funds 25,772 — — 25,772 Total $ 754,920 $ 260,797 $ — $ 1,015,717 Derivative assets — 528 — 528 Total $ 754,920 $ 261,325 $ — $ 1,016,245 Liabilities Contingent consideration $ — $ — $ 39,705 $ 39,705 Derivative liabilities — 203 — 203 Total $ — $ 203 $ 39,705 $ 39,908 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 722,260 $ 51,664 $ — $ 773,924 Marketable securities — 137,303 — 137,303 Long-term marketable securities 32,660 71,830 — 104,490 Prepayments — 528 — 528 Total $ 754,920 $ 261,325 $ — $ 1,016,245 Liabilities Other current liabilities $ — $ 203 $ — $ 203 Contingent consideration — — 9,106 9,106 Long-term contingent consideration — — 30,599 30,599 Total $ — $ 203 $ 39,705 $ 39,908 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: Equity 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 $ 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 $ — $ 514 $ 70,543 $ 71,057 Changes in the fair value of Level 3 contingent consideration for the years ended December 31, 2019 and 2018 were as follows: Contingent Consideration (in thousands) Balance at December 31, 2017 $ 45,102 Acquisition of MiR 52,547 Foreign currency impact (3,540 ) Payments ( 1 (24,553 ) Fair value adjustment ( 2 987 Balance at December 31, 2018 70,543 Acquisition of AutoGuide 23,976 Foreign currency impact (967 ) Payments (3) (34,590 ) Fair value adjustment (4) (19,257 ) Balance at December 31, 2019 $ 39,705 (1) During the year ended December 31, 201 8 24.6 earn-out Un iversal Robots. (2) 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, earn-out de 16.7 a de (3) During the year ended December 31, 201 9 30.8 and $3.8 million earn-out s s MiR a d , respectively (4) During the year ended December 31, 201 9 earn-out de 22.2 de partially offset by the impact from modification of the earn-out structure. 9 earn-out Auto G in 3.0 n in c rease revenues The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instrument: Liability December 31, 2019 Fair Value Valuation Technique Unobservable Inputs Weighted Average (in thousands) Contingent c (AutoGuide) $ 26,952 Monte Carlo simulation Revenue Volatility 11.5 % Discount Rate 2.6 % Contingent c (MiR) $ 12,753 Monte Carlo simulation Revenue Volatility 14.0 % Discount Rate 0.2 % (1) Contingent consideration related to MiR of $ 9.1 20 As of December 31, 2019, the significant unobservable inputs used in the Monte Carlo simulation to fair value the AutoGuide and MiR contingent value measurement. As of December 31, 2019, the maximum amount of contingent consideration that could be paid in connection with the acquisition of AutoGuide is $ million. The earn-out periods end on December 31, 2020, December 31, 2021 and December 31, 2022 . As of December 31, 2019, the remaining maximum amount of contingent consideration that could be paid in connection with the acquisition of MiR is $63.2 million. The remaining earn-out period ends on December 31, 2020. The carrying amounts and fair values of Teradyne’s financial instruments at December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 773,924 $ 773,924 $ 926,752 $ 926,752 Marketable securities 241,793 241,793 277,827 277,827 Derivative assets 528 528 79 79 Liabilities Contingent consideration 39,705 39,705 70,543 70,543 Derivative liabilities 203 203 514 514 Convertible debt (1) 394,687 1,010,275 379,981 547,113 (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 December 31, 2019 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Corporate debt securities $ 93,267 $ 4,081 $ (41 ) $ 97,307 $ 2,009 Commercial paper 54,124 26 (1 ) 54,149 1,391 U.S. Treasury securities 42,167 431 (216 ) 42,382 17,556 U.S. government agency securities 9,942 14 (4 ) 9,952 3,043 Debt mutual funds 6,753 135 — 6,888 — Certificates of deposit and time deposits 4,751 — — 4,751 — Non-U.S. government securities 592 — — 592 — $ 211,596 $ 4,687 $ (262 ) $ 216,021 $ 23,999 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 137,144 $ 160 $ (1 ) $ 137,303 $ 2,922 Long-term marketable securities 74,452 4,527 (261 ) 78,718 21,077 $ 211,596 $ 4,687 $ (262 ) $ 216,021 $ 23,999 December 31, 2018 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 $ 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. government securities 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 As of December 31, 2019, the fair market value of investments with unrealized losses les s than one year totaled 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. 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, 2019 and 2018, were not other than temporary. The contractual available-for-sale Cost Fair Value (in thousands) Due within one year $ 137,144 $ 137,303 Due after 1 year through 5 years 15,264 15,351 Due after 5 years through 10 years 14,436 14,576 Due after 10 years 37,999 41,903 Total $ 204,843 $ 209,133 The fair value of the outstanding contracts was a gain of $0.3 million and a 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, 2019 and 2018: December 31, 2019 December 31, 2018 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Prepayments $ 528 $ 79 Foreign exchange contracts Other current liabilities (203 ) (514 ) Total $ 325 $ (435 ) The following table summarizes the effect of derivative instruments in the statements of operations recognized for the years ended December 31, 2019, 2018, and 2017. Location of (Gains) Losses Recognized in Statement of Operations December 31, 2019 December 31, 2018 December 31, 2017 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 5,960 $ 7,386 $ (1,133 ) (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, 2019 and 2018, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $ 1.6 2.5 (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 See Note J: “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 or more |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Lease | I. LEASES On January 1, 2019, Teradyne adopted ASC 842 using the modified retrospective approach. Under this method of adoption, the comparative information in the consolidated financial statements has not been revised and continues to be reported under the previously applicable lease accounting guidance (ASC 840). Adoption of ASC 842 resulted in recording ROU assets and lease liabilities of approximately $50.1 million and $54.3 million, respectively. The adoption of ASC 842 did not have a material impact on beginning retained earnings, the consolidated statement of operations, cash flows, or earnings per share. Teradyne has facility and auto leases, which are accounted for as operating leases. Teradyne’s facility leases are primarily used for administrative functions, research and development, manufacturing, and storage and distribution. Remaining lease terms range from less than one year to twelve Total lease expense for the year ended December 31, 2019 was $35.6 million and included $11.1 million of variable lease costs and $2.6 million of costs related to short-term leases , At December 31, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.5 years and 5.0%, respectively. Supplemental cash flow information related to leases was as follows: For the Year December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows $ 19,400 Right-of-use 26,739 Maturities of lease liabilities as of December 31, 2019 were as follows: Operating Lease (in thousands) 2020 $ 21,874 2021 17,638 2022 12,944 2023 6,496 2024 5,106 Thereafter 8,388 Total lease payments 72,446 Less imputed interest (7,121 ) Total lease liabilities $ 65,325 As of December 31, 2018, future non-cancelable Operating Lease (in thousands) 2019 $ 19,570 2020 18,293 2021 13,578 2022 9,693 2023 5,449 Thereafter 9,472 Total lease payments $ 76,055 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt | J. 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 $ million, $ million of which was used to pay the net cost of the convertible note hedge transactions and $ million of which was used to repurchase million shares of ’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 , , unless earlier repurchased or converted. The Notes bear interest at a rate of % per year . The Notes will be convertible at the option of the at any time prior to the close of business on the business day immediately preceding , only under the following circumstances: during any calendar quarter beginning after March , (and only during such calendar quarter), if the closing sale price of ’s common stock, for at least trading days (whether or not consecutive) during a period of consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than % of the conversion price on each applicable trading day; during the business day period after any consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $ principal amount of Notes for each trading day of the measurement period was less than % of the product of the closing sale price of the ’s common stock and the conversion rate on each such trading day; and upon the occurrence of specified corporate events. On or after September , until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. may satisfy its conversion obligation by paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock, at ’s election. As of December , , the conversion price was approximately $ per share of ’s common stock. The conversion rate is subject to adjustment under certain circumstances. Concurrent with the offering of the Notes, Teradyne entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.62. 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 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,” fixed-for-fixed Teradyne assessed whether the convertible note hedge should be classified as equity under ASC 815-40. 815-40 Teradyne analyzed the Warrant Transactions under ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” paid-in The provisions of ASC 470-20, Debt with Conversion and Other Options, 470-20 The below tables represents the key components of Teradyne’s convertible senior notes: December 31, December 31, (in thousands) Debt p $ 460,000 $ 460,000 Unamortized discount 65,313 80,019 Net c $ 394,687 $ 379,981 For the year ended December 31, December 31, (in thousands) Contractual interest expense on the coupon $ 5,750 $ 5,750 Amortization of the discount component and debt issue fees recognized as interest expense 14,706 13,995 Total interest expense on the convertible debt $ 20,456 $ 19,745 As of December 31, 2019, the unamortized discount was $65.3 million, which will be amortized over four years using the effective interest rate method. The carrying amount of the equity component was $100.8 million. As of December 31, 2019, the conversion price was approximately $31. 62 Revolving Credit Facility On June 27, 2019, Teradyne terminated its credit agreement, which Teradyne entered into with Barclays Bank PLC on April 27, 2015. The terminated credit agreement , which w as und r a w at ter mination , a , senior secured revolving credit facility of up to $ million . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | K. 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 Gain s (Losses) on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Balance at December 31, 2017, net of tax of $0, $1,815, $(932) $ 15,919 $ 1,362 $ 1,495 $ 18,776 Other comprehensive loss (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 (28,442 ) (773 ) (245 ) (29,460 ) Reclassification of tax effects resulting f rom net of tax of — 691 78 769 Reclassification of unrealized gains on equity securities, net of tax of — (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 ) Other comprehensive (loss) (10,991 ) 6,015 — (4,976 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(192), $(43) — (690 ) (148 ) (838 ) Net current period other comprehensive (loss) (10,991 ) 5,325 (148 ) (5,814 ) Balance at December 31, 2019, net of tax of $0, $946, $(1,124) $ (23,514 ) $ 3,480 $ 1,180 $ (18,854 ) (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.” (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 Reclassifications out of accumulated other comprehensive income to the statements of operations for the years ended December 31, 2019, 2018, and 2017, were as follows: Details about Accumulated Other Comprehensive Income Components For the year ended Affected Line Item in the Statements of Operations December 31, 2019 December 31, 2018 December 31, 2017 (in thousands) Available-for-sale Unrealized gains $ 690 $ (1,337 ) $ 441 Interest income (expense) Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $43, $71, $154 148 245 272 (a) Total reclassifications, net of tax of $235, $92, $451 $ 838 $ (1,092 ) $ 713 Net income (a) The amortization of prior service credit is included in the computation of net periodic pension cost and postretirement benefit; see Note P: “Retirement Plans.” |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets | L. 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 that the fair value of a reporting unit is less than its carrying amount. If Teradyne determines this is the case, Teradyne is required to perform the two-step two-step two-step , weighting the fair value determined under each approach to determine an estimated fair value for a report ing unit business combination, whereby the estimated fair value of the reporting unit is allocated to all of the assets and a business combination and the fair value of the reporting unit was the purchase price paid. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. In the fourth quarter of 201 9 two-step , MiR and Energid units , AutoGuide 9 Based on Teradyne’s December 31, 2019 goodwill impairment test, the MiR reporting unit’s estimated fair value exceeded its carrying value by 14%. The MiR goodwill amount is $123.6 million as of December 31, 2019. Key assumptions in the goodwill valuation model are forecasted revenues, discount rate, earnings before interest and taxes, and revenue multiples from comparable companies. A change in any of these key assumptions could result in the reporting unit being impaired in a future period. In the fourth quarter of 201 8 two-step , MiR , and Energi d 8 In the fourth quarter of 2017, 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, 2019 and 2018 are as follows: Industrial Automation Wireless Test Semiconductor Test System Test Total (in thousands) Balance at December 31, 2017: Goodwill $ 233,519 $ 361,819 $ 260,540 $ 158,699 $ 1,014,577 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 233,519 7,976 — 10,516 252,011 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 363,358 361,819 260,540 158,699 1,144,416 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 363,358 7,976 — 10,516 381,850 Lemsys acquisition — — 1,428 — 1,428 Auto G 41,372 — — — 41,372 Foreign currency translation adjustment (8,247 ) — 28 — (8,219 ) Balance at December 31, 2019: Goodwill 396,483 361,819 261,996 158,699 1,178,997 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) $ 396,483 $ 7,976 $ 1,456 $ 10,516 $ 416,431 Intangible 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. There were no events or circumstances indicating that the carrying value of intangible and long-lived assets may not be recoverable in 2019 , 2018 2017 Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheets: December 31, 2019 Gross Carrying Amount (1 ) Accumulated Amortization (2) Foreign Net Carrying Amount (in thousands) Developed technology $ 361,787 $ (279,000 ) $ (5,709 ) $ 77,078 Customer relationships 75,669 (59,077 ) (455 ) 16,137 Tradenames and trademarks 70,120 (36,671 ) (1,184 ) 32,265 Backlog 260 (260 ) — — Total intangible assets $ 507,836 $ (375,008 ) $ (7,348 ) $ 125,480 December 31, 2018 Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) 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 320 (320 ) — — Backlog 30 (30 ) — — Total intangible assets $ 498,231 $ (367,531 ) $ (5,218 ) $ 125,482 (1) Includes intangible assets acquired in 2019, $37.7 million from the AutoGuide Lemsys (2) In 2019, $32.7 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, 2019, 2018, and 2017, was $40.1 million, $39.2 million, and $30.5 million, respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2020 $ 30,606 2021 20,593 2022 19,700 2023 19,226 2024 18,921 Thereafter 16,434 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | M. COMMITMENTS Purchase Commitments As of December 31, 2019, Teradyne non-cancelable 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 course of one-year the revenue - , 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, 2019, and 2018, 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, 2019 | |
Net Income per Common Share | N. NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share: 2019 2018 2017 (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 467,468 $ 451,779 $ 257,692 Weighted average common shares-basic 170,425 187,672 198,069 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 4,909 2,749 1,298 Convertible note hedge warrant shares (2) 2,698 485 112 Restricted stock units 1,236 1,385 1,800 Stock options 178 278 335 Employee stock purchase rights 13 36 27 Dilutive potential common shares 9,034 4,933 3,572 Weighted average common shares-diluted 179,459 192,605 201,641 Net income per common share-basic $ 2.74 $ 2.41 $ 1.30 Net income per common share-diluted $ 2.60 $ 2.35 $ 1.28 (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 $31.62, 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 $39.68, 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 million shares and restricted stock units to purchase approximately 0.5 million shares because the effect would have been anti-dilutive. 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. |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Other | O. RESTRUCTURING AND OTHER During the year ended December 31, 2019, Teradyne recorded a gain 22.2 million for the , parti a ffset by increase in the fair value of the AutoGuide contingent consideration liability , Industrial Automation, and $2.5 . 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 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. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Plans | P. RETIREMENT PLANS ASC 715 , Compensation—Retirement Benefits, Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. During 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: 2019 2018 United States Foreign United States Foreign (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 178,237 $ 39,146 $ 363,026 $ 39,353 Service cost 1,608 751 2,196 786 Interest cost 7,189 691 8,940 687 Actuarial loss 24,447 4,520 (30,136 ) 773 Benefits paid (7,690 ) (836 ) (14,793 ) (741 ) Retiree annuity purchase — — (151,341 ) — Liability loss due to settlement — — 345 — Non-U.S. — (320 ) — (1,712 ) End of year 203,791 43,952 178,237 39,146 Change in plan assets: Fair value of plan assets: Beginning of year 144,301 1,400 324,506 1,307 Company contributions 2,805 923 2,587 822 Actual return on plan assets 27,516 64 (16,658 ) 50 Benefits paid (7,690 ) (836 ) (14,793 ) (741 ) Retiree annuity purchase — — (151,341 ) — Non-U.S. — 35 — (38 ) End of year 166,932 1,586 144,301 1,400 Funded status $ (36,859 ) $ (42,366 ) $ (33,936 ) $ (37,746 ) The following table provides amounts recorded within the account line items of the statements of financial position as of December 31: 2019 2018 United States Foreign United States Foreign (in thousands) Retirement plans assets $ 18,457 $ — $ 16,883 $ — Accrued employees’ compensation and withholdings (2,826 ) (922 ) (2,676 ) (852 ) Retirement plans liabilities (52,490 ) (41,444 ) (48,143 ) (36,894 ) Funded status $ (36,859 ) $ (42,366 ) $ (33,936 ) $ (37,746 ) The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2019 2018 United States Foreign United States Foreign (in thousands) Deferred taxes related to prior service cost recognized in other comprehensive income $ 560 $ — $ 560 $ — The accumulated benefit obligation for the United States defined benefit pension plans was $198.2 million and $172.8 million at December 31, 2019 and 2018, respectively. The accumulated benefit obligation for foreign defined benefit pension plans was $39.9 million and $35.6 million at December 31, 2019 and 2018, respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31: 2019 2018 United States Foreign United States Foreign (in millions) Projected benefit obligation $ 55.3 $ 44.0 $ 50.8 $ 39.1 Accumulated benefit obligation 53.2 39.9 48.6 35.6 Fair value of plan assets — 1.6 — 1.4 Expense For the years ended December 31, 2019, 2018, and 2017, Teradyne’s net periodic pension cost 2019 2018 2017 United States Foreign United States Foreign United States Foreign (in thousands) Components of Net Periodic Pension Cost Service cost $ 1,608 $ 751 $ 2,196 $ 786 $ 2,239 $ 818 Interest cost 7,189 691 8,940 687 13,151 852 Expected return on plan assets (6,042 ) (29 ) (9,049 ) (19 ) (12,008 ) (165 ) Amortization of prior service cost — — 58 — 70 — Net actuarial loss 2,973 4,485 (4,429 ) 743 (6,712 ) (310 ) Settlement loss — — 345 — — — Total net periodic pension cost $ 5,728 $ 5,898 $ (1,939 ) $ 2,197 $ (3,260 ) $ 1,195 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Reversal of amortization items: Prior service cost — — (58 ) — (70 ) — Total recognized in other comprehensive income — — (58 ) — (70 ) — Total recognized in net periodic pension cost and other comprehensive income $ 5,728 $ 5,898 $ (1,997 ) $ 2,197 $ (3,330 ) $ 1,195 Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: 2019 2018 2017 United States Foreign United States Foreign United States Foreign Discount rate 4.1 % 1.8 % 3.4 % 1.8 % 3.9 % 1.8 % Expected return on plan assets 4.3 2.0 4.3 1.5 4.0 2.0 Salary progression rate 2.5 2.5 2.3 2.7 2.6 2.7 Weighted Average Assumptions to Determine Pension Obligations at December 31: 2019 2018 United States Foreign United States Foreign Discount rate 3.0 % 1.1 % 4.1 % 1.8 % Salary progression rate 2.6 2.5 2.5 2.6 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 2019 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 3.10% at December 31, 2019, down Plan Assets As of December 31, 2019, the fair value of Teradyne’s pension plans’ assets totaled $168.5 million of which $166.9 million was related to the U.S. Plan and $1.6 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, 2019 and 2018: 2019 2018 United States Foreign United States Foreign Fixed income securities 94.0 % — % 94.0 % — % Equity securities 5.0 — 5.0 — Other 1.0 100.0 1.0 100.0 100.0 % 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 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 U.S. Long Government Bond Index 14 High yield fixed income Barclays U.S. High Yield 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, 2019, there were no transfers of pension assets in or out of Level 1, Level 2, and Level 3. During the year ended December 31, 2018, $2.7 million of pension assets were transferred out of Level 3 to Level 2. The fair value of pension plan assets by asset category and by level at December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 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 $ — $ 133,792 $ — $ 133,792 $ — $ — $ — $ — U.S. government securities — 23,186 — 23,186 — — — — Global equity — 8,344 — 8,344 — — — — Other — — — — — 1,586 — 1,586 Cash and cash equivalents 1,610 — — 1,610 — — — — Total $ 1,610 $ 165,322 $ — $ 166,932 $ — $ 1,586 $ — $ 1,586 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 Changes in the fair value of Level 3 group annuity insurance contracts for the year ended December 31, 2018 were Group Annuity Insurance Contracts (in thousands) Balance at December 31, 2017 $ 3,166 Transfer out of level 3 (2,658 ) Purchase s f insurance ontracts (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 2019, Teradyne contributed $2.8 million to the U.S. supplemental executive defined benefit pension plan and $0.9 million to certain qualified plans for non-U.S. non-U.S. 2020 non-U.S. Expected Future Pension Benefit Payments Future benefit payments are expected to be paid as follows: United States Foreign (in thousands) 2020 $ 8,027 $ 1,237 2021 8,416 985 2022 9,163 982 2023 9,785 1,258 2024 10,558 1,098 2025-2029 59,665 6,129 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: 2019 2018 (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 9,256 $ 6,177 Service cost 41 39 Interest cost 347 196 Actuarial loss 717 25 Benefits paid (1,358 ) (889 ) Special termination benefits — 3,708 End of year 9,003 9,256 Change in plan assets: Fair value of plan assets: Beginning of year — — Company contributions 1,358 889 Benefits paid (1,358 ) (889 ) End of year — — Funded status $ (9,003 ) $ (9,256 ) The following table provides amounts recorded within the account line items of financial position as of December 31: 2019 2018 (in thousands) Accrued employees’ compensation and withholdings $ (1,231 ) $ (1,310 ) Retirement plans liability (7,772 ) (7,946 ) Funded status $ (9,003 ) $ (9,256 ) The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2019 2018 (in thousands) Prior service credit, before tax $ (58 ) $ (249 ) Deferred taxes (1,684 ) (1,641 ) Total recognized in other comprehensive income, net of tax $ (1,742 ) $ (1,890 ) Expense For the years ended December 31, 2019, 2018, and 2017, Teradyne’s net periodic postretirement benefit cost (income) was comprised of the following: 2019 2018 2017 (in thousands) Components of Net Periodic Postretirement Benefit Cost (income): Service cost $ 41 $ 39 $ 34 Interest cost 347 196 201 Amortization of prior service credit (191 ) (373 ) (496 ) Net actuarial loss 717 25 398 Special termination benefits — 3,708 591 Total net periodic postretirement benefit cost 914 3,595 728 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Prior service cost — — — Reversal of amortization items: Prior service credit 191 373 496 Total recognized in other comprehensive income 191 373 496 Total recognized in net periodic postretirement cost and other comprehensive income $ 1,105 $ 3,968 $ 1,224 Weighted Average Assumptions to Determine Net Periodic Postretirement Benefit Income as of January 1: 2019 2018 2017 Discount rate 4.0 % 3.4 % 3.9 % Initial health care cost trend rate 7.5 7.9 7.3 Ultimate health care cost trend rate 4.5 4.5 5.0 Year in which ultimate health care cost trend rate is reached 2026 2026 2023 Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31: 2019 2018 2017 Discount rate 3.0 % 4.0 % 3.4 % Initial medical trend 7.1 7.5 7.9 Ultimate health care trend 4.5 4.5 4.5 Medical cost trend rate decrease to ultimate rate in year 2026 2026 2026 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, 2019 would have the following effects: 1 Percentage Point Increase 1 Percentage Point Decrease (in thousands) Effect on total service and interest cost components $ 6 $ (6 ) Effect on postretirement benefit obligations 139 (133 ) Expected Future Benefit Payments Future benefit payments are expected to be paid as follows: Benefit Payments (in thousands) 2020 $ 1,231 2021 1,171 2022 958 2023 789 2024 662 2025-2029 1,965 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | Q. STOCK-BASED COMPENSATION Stock Compensation Plans On July 17, 2019 (the “Retirement Date”), former Chief Financial Officer Gregory Beecher retired as Vice President and Senior Advisor of Teradyne, and Teradyne entered into an agreement (the “Retirement Agreement”) with Mr. Beecher. Under the Retirement Agreement, Mr. Beecher’s unvested time-based restricted stock units and stock options granted prior to 2019 were modified to allow continued vesting; unvested time-based restricted stock units and stock options granted in 2019 were modified to allow continued vesting through January 31, 2023 (the “Non-Competition pro-rated pro-rated Non-Competition Under Teradyne’s stock compensation plans, Teradyne grants time-based , stock s 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 after a one ear p eriod, with f he - P - granted Teradyne’ s may 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. PRSUs Teradyne’s may also have three-year non-GAAP Non-GAAP non-cash non-recurring shorter of the or the period from the grant date to the date described in the retirement provisions below. Compensation expense for employees meeting the retirement provisions prior to the grant date will be recognized in full on the date of grant 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 three 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. During 2019, 2018 and 2017, Teradyne granted 0.8 million, 0.6 million and 0.8 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $37.65, $45.92 and $28.19, respectively. During 2019, 2018 and 2017, Teradyne granted 0.1 million of service-based restricted stock unit awards to non-employee directors at a weighted average grant date fair value of $48.03, $35.81 and $34.48, respectively. During 2019, 2018 and 2017, Teradyne granted 0.1 million TSR PRSUs, with a grant date fair value of $51.51, $54.85 and $35.66 respectively. The fair value was estimated using the Monte Carlo simulation model with the following assumptions: 2019 2018 2017 Risk-free interest rate 2.6 % 2.2 % 1.5 % Teradyne volatility-historical 31.9 % 26.8 % 26.6 % NYSE Composite Index volatility-historical 11.9 % 12.4 % 13.4 % Dividend yield 1.0 % 0.8 % 1.0 % Expected volatility was based on the historical volatility of Teradyne’s stock and the NYSE Composite Index for each of the 2019, 2018 and 2017 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 each of the grants . Dividend yield was based upon an estimated annual dividend amount of $0.36 per share for 2019 and 2018 and $0.28 per share for 2017 , grants , $47.70 for the 2018 grants and $28.56 for 2017 grants . During 2019, 2018 and 2017, Teradyne granted 0.1 million of During , and , granted million of service-based stock options to executive officers at a weighted average grant date fair value of $ , $ and $ , respectively. The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: 2019 2018 2017 Expected life (years) 5.0 5.0 5.0 Risk-free interest rate 2.5 % 2.4 % 2.0 % Volatility-historical 30.1 % 26.4 % 27.8 % Dividend yield 1.00 % 0.80 % 1.00 % Teradyne determined the stock options’ expected life based upon historical exercise data for executive officers, the age of the executive officers and the terms of the stock option grant . Volatility was determined using historical volatility for a period equal to the expected life. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. Dividend yield was based upon an estimated annual dividend amount of $0.36 per share divided by Teradyne’s stock price on the grant date of $37.95 for the 2019 grants, $47.70 for the 2018 grants and $28.56 for the 2017 grants. Stock compensation plan activity for the years 2019, 2018, and 2017, is as follows: 2019 2018 2017 (in thousands) Restricted Stock Units: Non-vested 2,454 3,174 3,778 Awarded 1,139 790 939 Vested (1,237 ) (1,382 ) (1,434 ) Forfeited (87 ) (128 ) (109 ) Non-vested 2,269 2,454 3,174 Stock Options: Outstanding at January 1 506 531 926 Granted 102 69 111 Exercised (280 ) (94 ) (501 ) Forfeited (7 ) — — Expired (2 ) — (5 ) Outstanding at December 31 319 506 531 Vested and expected to vest at December 31 319 506 531 Exercisable at December 31 85 256 233 Total shares available for the years 2019, 2018, and 2017: 2019 2018 2017 (in thousands) Shares available: Available for grant at January 1 7,874 8,605 9,546 Options granted (102 ) (69 ) (111 ) Options forfeited 7 — — Restricted stock units awarded (1,139 ) (790 ) (939 ) Restricted stock units forfeited 87 128 109 Available for grant at December 31 6,727 7,874 8,605 Weighted average restricted stock unit award date fair value information for the years 2019, 2018, and 2017 , 2019 2018 2017 Non-vested $ 29.22 $ 21.71 $ 18.27 Awarded 39.08 45.99 28.91 Vested 23.59 20.20 17.90 Forfeited 35.60 24.67 20.35 Non-vested $ 35.58 $ 29.22 $ 21.71 Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2019, 2018 , 2019 2018 2017 (in thousands) Vested $ 46,110 $ 63,688 $ 40,649 Outstanding 154,752 77,015 132,875 Expected to vest 152,374 77,187 130,594 Restricted stock units weighted average remaining contractual terms (in years) information at December 31 for the years 2019, 2018, and 2019 2018 2017 Outstanding 1.02 0.92 1.00 Expected to vest 1.02 0.91 0.99 Weighted average stock options exercise price information for the year ended December 31, 2019 is as follows: 2019 Outstanding at January 1 $ 19.06 Options granted 37.95 Options exercised 13.20 Options forfeited 36.75 Options cancelled 1.48 Outstanding at December 31 29.91 Exercisable at December 31 14.97 The total cash received from employees as a result of employee stock options exercises during the years ended December 31, 2019, 2018, and 2017, was $3.7 million, $1.0 million and $6.8 million, respectively. In connection with these exercises, the tax benefit realized by Teradyne for the years ended December 31, 2019, 2018, and 2017, was $2.0 million, $0.4 million, and $2.5 million, respectively. Stock option aggregate intrinsic value information for the years ended December 31, 2019, 2018, and 2017 is as follows: 2019 2018 2017 (in thousands) Exercised $ 9,232 $ 2,960 $ 8,035 Outstanding 12,218 7,359 14,831 Vested and expected to vest 7,701 7,359 14,831 Exercisable 4,517 5,905 9,076 Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2019, 2018, and 2017 is as follows: 2019 2018 2017 Outstanding 4.2 3.6 4.1 Vested and expected to vest 5.0 3.6 4.1 Exercisable 2.1 2.4 2.8 As of December 31, 2019, 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 2019, 0.3 million shares of common stock were issued to employees who participated in the plan during the first half of 2019 at the price of $40.72 per share. In January 2020, Teradyne issued 0.2 million shares of common stock to employees who participated in the plan during the second half of 2019 at the price of $57.96 per share. 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. As of December 31, 2019, there were 1.8 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, 2019, 2018, and 2017: 2019 2018 2017 (in thousands) Cost of revenues $ 3,480 $ 3,129 $ 3,212 Engineering and development 9,913 9,181 9,370 Selling and administrative 24,504 21,267 21,515 Stock-based compensation 37,897 33,577 34,097 Income tax benefit (8,360 ) (12,036 ) (10,462 ) Total stock-based compensation expense after income taxes $ 29,537 $ 21,541 $ 23,635 |
Savings Plan
Savings Plan | 12 Months Ended |
Dec. 31, 2019 | |
Savings Plan | R. SAVINGS PLAN Teradyne sponsors a defined contribution employee retirement savings plan (“Savings Plan”) covering substantially all U.S. employees. Under the Savings Plan, employees may contribute up to 20% of their compensation (subject to Internal Revenue Service limitations). The Savings Plan provides for a discretionary employer match that is determined each year. In 2019, 2018 and 2017, Teradyne matched 100% of eligible employee contributions up to 4% of their compensation for employees not accruing benefits in the U.S. Qualified Pension Plan. There was no match for employees still actively accruing benefits in the U.S. Qualified Pension Plan. Teradyne’s contributions vest 25% per year for the first four years of employment, and contributions for those employees with four years of service vest immediately. In addition, Teradyne sponsors 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. The liability for the U.S. Supplemental Savings Plan at December 31, 2019 and 2018, was $32.7 million and $24.4 million, respectively, and is included in retirement plan liabilities. Teradyne contributes to defined contributions savings plans for its foreign employees. Under Teradyne’s savings plans, amounts charged to the statements of operations for the years ended December 31, 2019, 2018, and 2017 were $20.9 million, $19.4 million, and $16.8 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | S. 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: 2019 2018 2017 (in thousands) Income before income taxes U.S. $ 192,442 $ 189,691 $ 76,699 Non-U.S. 333,330 278,110 447,713 $ 525,772 $ 467,801 $ 524,412 Provision (benefit) for income taxes Current: U.S. Federal $ 19,297 $ (59,122 ) $ 162,679 Non-U.S. 52,810 45,083 64,313 State (4,347 ) 1,721 2,623 67,760 (12,318 ) 229,615 Deferred: U.S. Federal (4,522 ) 29,252 43,687 Non-U.S. (8,007 ) (1,243 ) (6,476 ) State 3,073 331 (106 ) (9,456 ) 28,340 37,105 Total provision for income taxes $ 58,304 $ 16,022 $ 266,720 Income tax expense for 2019 , million million 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 $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 , one-time 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 increase in the effective tax rate from 2018 to 2019 is primarily attributable to increases in expense associated with GILTI and the transition tax on the mandatory deemed repatriation of foreign earnings. These increases in expense were partially offset by increased benefit from the U.S. foreign derived intangible income deduction, foreign tax credits and a net reduction of reserves for uncertain tax positions. On July 27, 2015, in Altera Corp. (“Altera”) v. Commissioner, the U.S. Tax Court issued an opinion invalidating the regulations relating to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was issued by the Tax Court in December 2015. The IRS appealed the decision in June 2016. On July 24, 2018, the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”) issued a decision that was subsequently withdrawn and a reconstituted panel conferred on the appeal. On June 7, 2019, the Ninth Circuit upheld the cost-sharing regulations. On November 12, 2019 the Ninth Circuit denied Altera’s petition for rehearing of its case. As a result, during the fourth quarter of 2019, Teradyne recognized a tax expense of approximately $6.3 million related to the inclusion of stock-based compensation in its intercompany cost-sharing arrangement. 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 for one-time non-taxable A reconciliation of the effective tax rate for the years 2019, 2018 and 2017 is as follows: 2019 2018 2017 U.S. statutory federal tax rate 21.0 % 21.0 % 35.0 % U.S. global intangible low-taxed income 6.2 0.3 — U.S. transition tax 1.9 (10.5 ) 28.7 State income taxes, net of federal tax benefit 0.5 0.1 (0.4 ) Foreign tax credits (5.9 ) (2.2 ) (2.2 ) Uncertain tax positions (4.3 ) 1.0 1.7 Foreign taxes (4.0 ) (2.0 ) (16.3 ) U.S. foreign derived intangible income (2.6 ) (1.8 ) — U.S. research and development credit (1.8 ) (2.2 ) (1.6 ) Equity compensation (0.7 ) (1.2 ) (0.8 ) Impact of rate change on deferred taxes — 0.3 6.9 Domestic production activities deduction — — (0.3 ) Other, net 0.8 0.6 0.2 11.1 % 3.4 % 50.9 % 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, 2019, 2018 and 2017 were $15.1 million or $ 0.08 11.9 December 31, 2020 Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2019 and 2018 were as follows: 2019 2018 (in thousands) Deferred tax assets Tax credits $ 79,480 $ 69,091 Accruals 25,424 23,449 Pension liabilities 24,459 20,826 Inventory valuations 18,572 18,514 Deferred revenue 7,622 9,130 Equity compensation 7,042 7,190 Vacation accrual 4,768 4,772 Investment impairment 3,292 — Net operating loss carryforwards 2,705 3,658 Marketable s — 962 Other 1,472 685 Gross deferred tax assets 174,836 158,277 Less: valuation allowance (77,177 ) (69,852 ) Total deferred tax assets $ 97,659 $ 88,425 Deferred tax liabilities: Depreciation $ (18,238 ) $ (14,028 ) Intangible assets (16,705 ) (24,211 ) Marketable securities (1,601 ) — Total deferred tax liabilities $ (36,544 ) $ (38,239 ) Net deferred assets $ 61,115 $ 50,186 As of December 31, 2019 and 2018, Teradyne evaluated the likelihood that it would realize 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, 2019 and 2018, Teradyne maintained a valuation allowance for certain deferred tax assets of $77.2 million and $69.9 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, 2019, Teradyne had operating loss carryforwards that expire in the following years: State Operating Loss Carryforwards Federal Operating Loss Carryforwards Foreign Operating Loss Carryforwards ( in t 2020 $ 269 $ — $ — 2021 2,141 — — 2022 4,934 — — 2023 4,342 — — 2024 1,498 — — 2025-2029 7,673 — — 2030-2034 4,329 — 15 Beyond 2034 2,185 554 74 Non-expiring 1,357 — 4,207 Total $ 28,728 $ 554 $ 4,296 Teradyne has approximately $108.4 million of tax credit carryforwards including federal business tax credits of approximately $2.1 million which expire in 2028 , and state tax credits of $106.3 million, of which $59.7 million do not expire and the remainder expires in the years 2020 through 2039. Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Beginning balance, as of January 1 $ 43,395 $ 36,263 $ 38,958 Additions: Tax positions for current year 1,322 4,716 8,208 Tax positions for prior years 8,043 2,626 199 Reductions: Tax positions for prior years (31,397 ) (153 ) (10,573 ) Expiration of statutes (183 ) (57 ) (325 ) Settlements with tax authorities — — (204 ) Ending balance as of December 31 $ 21,180 $ 43,395 $ 36,263 Current year additions relate to federal and state research credits. Prior year additions primarily relate to stock-based compensation . Prior year reductions are primarily composed of federal and state reserves related to transfer pricing and research credits and resulted from the completion of the 2015 U.S. federal audit in the first quarter of 2019. Of the $21.2 million of unrecognized tax benefits as of December 31, 2019, $12.7 million would impact the consolidated income tax rate if ultimately recognized. The remaining $8.5 million would impact deferred taxes if recognized. Teradyne does not anticipate a material change in the balance of unrecognized tax benefits as of December 31, 2019 in the next twelve months . 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, 2019 and 2018 amounted to $1.4 million and $0.3 million, respectively. For the years ended December 31, 2019, 2018 and 2017, expense of $1.1 million, expense 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, 2019, all material state and local income tax matters have been concluded through 2013, all material federal income tax matters have been concluded through 2015 2011 As of December 31, 2019, Teradyne is not permanently reinvested with respect to the unremitted earnings of non-U.S. |
Operating Segment, Geographic a
Operating Segment, Geographic and Significant Customer Information | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segment, Geographic and Significant Customer Information | T. OPERATING SEGMENT, GEOGRAPHIC AND SIGNIFICANT CUSTOMER INFORMATION Teradyne has four reportable segments (Semiconductor Test, Industrial Automation , System Test 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, 2019, 2018, and 2017 is as follows: Semiconductor Test Industrial Automation System Test Wireless Test Corporate And Other Consolidated (in thousands) 2019 Revenues $ 1,552,571 $ 298,139 $ 287,455 $ 157,315 $ (515 ) $ 2,294,965 Income (loss) before taxes (1)(2) 416,973 (5,916 ) 93,543 35,585 (14,413 ) 525,772 Total assets (3) 784,808 671,559 131,428 97,299 1,101,920 2,787,014 Property additions 112,145 9,076 3,059 10,362 — 134,642 Depreciation and amortization expense 59,197 40,904 5,518 5,365 9,671 120,655 2018 Revenues $ 1,492,417 $ 261,452 $ 216,132 $ 132,006 $ (1,205 ) $ 2,100,802 Income (loss) before taxes (1)(2) 397,645 7,670 48,857 29,052 (15,423 ) 467,801 Total assets (3) 669,452 607,502 88,098 77,570 1,263,984 2,706,606 Property additions 94,496 11,188 3,469 5,226 — 114,379 Depreciation and amortization expense 58,095 36,755 6,430 5,328 6,616 113,224 2017 Revenues $ 1,662,549 $ 170,056 $ 192,135 $ 111,866 $ — $ 2,136,606 Income (loss) before taxes (1)(2) 491,361 8,763 10,305 17,350 (3,368 ) 524,411 Total assets (3) 597,480 368,037 97,018 59,912 1,987,098 3,109,545 Property additions 87,920 7,044 5,976 4,435 — 105,375 Depreciation and amortization expense 58,901 25,711 6,646 5,392 11,425 108,075 (1) Included in Corporate and Other are: contingent consideration adjustments, investment impairment , , property insurance recovery (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. (3) Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. Included in each segment are charges and credits in the following line items in the statements of operation s For the Year Ended December 31, 2019 2018 2017 (in thousands) Semiconductor Test: Cost of revenues—inventory charge $ 8,731 $ 6,822 $ 4,606 Restructuring and other—employee severance 1,277 8,429 1,779 Restructuring and other—impairment of fixed assets — — 1,124 Industrial Automation: Restructuring and other—employee severance $ 796 $ — $ 1,414 Restructuring and other—acquisition related expenses and compensation 741 1,163 — Cost of revenues—inventory charge 508 680 — System Test: Cost of revenues—inventory charge $ 2,000 $ 1,175 $ 1,918 Wireless: Cost of revenues—inventory charge $ 4,005 $ 2,565 $ 2,190 Restructuring and other—lease impairment — — 972 Corporate and Other: Restructuring and other—MiR contingent consideration adjustment $ (22,199 ) $ 17,666 $ — Other (income) expense, net—investment impairment charge 15,000 — — Restructuring and other—AutoGuide contingent consideration adjustment 2,976 — — Selling and administrative—equity modification charge 2,108 — — Restructuring and other—acquisition related expenses and compensation 1,765 3,422 — Restructuring and other—Universal Robots contingent consideration adjustment — (16,679 ) 7,820 Restructuring and other—property insurance recovery related to Japan earthquake — — (5,064 ) Information as to Teradyne’s revenues by country is as follows: 2019 2018 2017 (in thousands) Revenues from customers (1): China $ 514,327 $ 348,942 $ 260,451 Taiwan 485,681 516,322 687,031 United States 333,059 282,869 252,516 Korea 239,504 163,224 206,819 Europe 219,015 223,207 163,715 Japan 175,322 158,281 169,093 Thailand 87,503 59,184 29,566 Singapore 84,111 108,618 101,085 Malaysia 58,200 122,797 124,048 Philippines 54,560 77,996 105,850 Rest of the World 43,683 39,362 36,432 $ 2,294,965 $ 2,100,802 $ 2,136,606 (1) Revenues attributable to a country are based on location of customer site. In 2019 and 2018, no single direct Teradyne’ s consolidated revenues. In 2017, revenues from Taiwan Semiconductor Manufacturing Company Ltd. accounted for 13% of its consolidated revenues . Taiwan Semiconductor Manufacturing Company Ltd. is a customer of Ltd. (“Huawei”), combining direct sales to that customer with sales to the customer’s OSATs , its consolidated revenues in 2019 and 2018, respectively. Teradyne estimates consolidated revenues driven by another OEM customer, combining direct sales to that customer with sales to the customer’s OSATs (which include Taiwan Semiconductor Manufacturing Company Ltd.), accounted for approximately %, % and % of its consolidated revenues in 2019, 2018 and 2017, respectively. Long-lived assets by geographic area: United Foreign(1) Total (in thousands) December 31, 2019 $ 252,812 $ 124,943 $ 377,755 December 31, 2018 $ 209,368 $ 70,453 $ 279,821 (1) As of December 31, 2019 and 2018, long-lived assets attributable to Singapore were $35.2 |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
Stock Repurchase Program | U. STOCK REPURCHASE PROGRAM In December 2016, Teradyne’s Board of Directors approved a $500.0 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 $200.0 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. In 2019, Teradyne repurchased 10.9 million shares of common stock for $500.0 million at an average price per share of $45.89. In 2018, Teradyne repurchased 21.6 million shares of common stock for $823.5 million at an average price per share of $38.06. The cumulative repurchases as of December 31, 2019 totaled 32.5 million shares of common stock for $1,323.0 million at an average price per share of $40.68. In January 2020, Teradyne’s Board of Directors cancelled the January 2018 repurchase program and approved a new stock repurchase program for up to $1.0 billion of common stock. Teradyne intends to repurchase a minimum of $250.0 million in 2020 . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | V. SUBSEQUENT EVENTS In January 2020 March 20, 2020 February 21, 2020 While Teradyne declared a quarterly cash dividend and authorized a share repurchase program, it may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of Teradyne’s Board of Directors which will consider, among other things, Teradyne’s earnings, capital requirements and financial condition. On February 28, 2020, RealWear’s debt holder demanded repayment of its $25.0 million loan to RealWear. As a result, in the fourth quarter of 2019, Teradyne recorded an impairment charge of $15.0 million to reduce its investment in RealWear to zero as of December 31, 2019. |
Supplementary Information
Supplementary Information | 12 Months Ended |
Dec. 31, 2019 | |
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. 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2) (3) (4)(5) ( 6 (in thousands, except per share amounts) Revenues: Products $ 393,442 $ 457,511 $ 488,170 $ 548,552 Services 100,657 106,667 93,868 106,098 Total revenues 494,099 564,178 582,038 654,650 Cost of revenues: Cost of products 165,368 193,299 197,196 226,184 Cost of services 41,096 46,961 39,804 45,228 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 206,464 240,260 237,000 271,412 Gross profit 287,635 323,918 345,038 383,238 Operating expenses: Selling and administrative 102,013 108,811 109,166 117,092 Engineering and development 76,791 81,434 77,804 86,794 Acquired intangible assets amortization 10,634 10,083 9,647 9,784 Restructuring and other 5,112 (10,404 ) (6,500 ) (2,088 ) Total operating expenses 194,550 189,924 190,117 211,582 Income from operations 93,085 133,994 154,921 171,656 Non-operating Interest income (8,052 ) (5,430 ) (5,159 ) (6,145 ) Interest expense 5,713 5,800 5,682 5,950 Other (income) expense, net 1,445 2,447 2,665 22,965 Income before income taxes 93,979 131,177 151,733 148,886 Income tax (benefit) provision (15,159 ) 33,780 15,873 23,811 Net income $ 109,138 $ 97,397 $ 135,860 $ 125,075 Net income per common share—basic $ 0.63 $ 0.57 $ 0.80 $ 0.75 Net income per common share—diluted $ 0.62 $ 0.55 $ 0.75 $ 0.69 Cash dividend declared per common share $ 0.09 $ 0.09 $ 0.09 $ 0.09 (1) Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. (2) Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR (3) Restructuring and other includes a million gain for the decrease in the fair value of Mi R contingent consideration liability, partially offset by of employee severance charges and of acquisition related expenses an d compensa t (4) Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation (5) Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. (6) Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2) (3) (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 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 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 $ 86,974 $ 101,037 $ 119,978 $ 143,790 Net income per common share—basic $ 0.45 $ 0.53 $ 0.65 $ 0.80 Net income 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 of $3.5 million for the fourth quarter in 2018. 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, 2019 | |
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: 2019 Allowance for doubtful account $ 1,673 $ 87 $ 28 $ 52 $ 1,736 2018 Allowance for doubtful account $ 2,219 $ — $ 20 $ 566 $ 1,673 2017 Allowance for doubtful accounts $ 2,356 $ 4 $ — $ 141 $ 2,219 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: 2019 Inventory reserve $ 100,779 $ 15,244 $ (85 ) $ 12,382 $ 103,556 2018 Inventory reserve $ 102,896 $ 11,242 $ 368 $ 13,727 $ 100,779 2017 Inventory reserve $ 116,016 $ 8,844 $ (126 ) $ 21,838 $ 102,896 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: 2019 Valuation allowance $ 69,852 $ 7,325 $ — $ — $ 77,177 2018 Valuation allowance $ 63,919 $ 6,333 $ — $ 400 $ 69,852 2017 Valuation allowance $ 48,369 $ 15,571 $ — $ 21 $ 63,919 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Basis of 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 contingent consideration liabil ities , |
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 contingent consideration liabil ities , |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers Teradyne adopted Accounting Standard Codification (“ASC”) 606 “ Revenue from Contracts with Customers” 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. • 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. • 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. • 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. • 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. • 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. Performance Obligations Products Teradyne products consist 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, industrial automation products and wireless test systems. Teradyne’s hardware is recognized at a point in time upon transfer of control to the customer. Services Teradyne services consist of extended warranties, training and application support, service agreement, post contract customer support (“PCS”) and replacement parts. Each service is recognized based on relative standalone selling price. Extended warranty, training and support, service agreements and PCS are recognized over time based on the period of service. Replacement parts are recognized at a point in time upon transfer of control to the customer. Teradyne does not allow customer returns or provide refunds to customers for any products or services. Teradyne products include a standard 12-month As of December 31, 2019 and 2018, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2019 2018 (in thousands) Maintenance , service $ 63,815 $ 58,362 Extended warranty 30,677 27,422 Customer advances, undelivered elements and other 56,358 24,677 Total deferred revenue and customer advances $ 150,850 $ 110,461 |
Product Warranty | Product Warranty Teradyne generally provides a one-year Amount (in thousands) 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 Acquisition 14 Accruals for warranties issued during the period 14,106 Accruals related to pre-existing 4,026 Settlements made during the period (17,059 ) Balance at December 31, 2019 $ 8,996 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, 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 Deferral of new extended warranty revenue 23,271 Recognition of extended warranty deferred revenue (20,016 ) Balance at December 31, 2019 $ 30,677 |
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 are are |
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, 2019 and 2018. As defined in ASC 820-10, Fair Value Measurements and Disclosures, 820-10 Level 1: Quoted prices in active markets for identical assets as of the reporting date; Level 2: Inputs other than Level 1, that are observable either directly or indirectly as of the reporting date. For example, a common approach for valuing fixed income securities is the use of matrix pricing. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices, and is considered a Level 2 input; or Level 3: Unobservable inputs that are not supported by market data. Unobservable inputs are developed based on the best information available, which might include Teradyne’s own data. In accordance with ASC 820-10, |
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 |
Investment in Other Company | Investment in Other Company Teradyne holds an investment in a private company that develops and sells advanced wearable technology. Teradyne does not have the ability to exert significant influence over the company. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer on a quarterly basis. See Note D: “Acquisitions and Investment in Other Company.” |
Prepayments | Prepayments Prepayments consist of the following and are included in prepayments and other current assets on the balance sheet: 2019 2018 (in thousands) Contract manufacturer and supplier prepayments $ 143,392 $ 131,642 Prepaid taxes 8,046 9,646 Prepaid maintenance and other services 8,503 8,487 Other prepayments 16,753 12,744 Total prepayments $ 176,694 $ 162,519 |
Retirement and Postretirement Plans | Retirement and Postretirement Plans 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. |
Retirement Benefits | Retirement Benefits In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost non-service 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 , million , 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 goodwill and intangible assets in accordance with ASC 350-10, Intangibles-Goodwill and Other. 350-10, two-step two-step In accordance with ASC 360-10, Impairment or Disposal of Long-Lived Assets, carrying |
Business Combination | Business Combination Teradyne recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair value of identifiable intangible assets is based on detailed cash flow valuations that use information and assumptions provided by management. Teradyne estimates the fair value of contingent consideration at the time of the acquisition using all pertinent information known to us at the time to assess the probability of payment of contingent amounts or through the use of a Monte Carlo simulation model. Teradyne allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill. The assumptions used in the valuations for our acquisitions may differ materially from actual results depending on performance of the acquired businesses and other factors. While Teradyne believes the assumptions used were appropriate, different assumptions in the valuation of assets acquired and liabilities assumed could have a material impact on the timing and extent of impact on our statements of operations. Goodwill is assigned to reporting units as of the date of the related acquisition. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Leasehold improvements and major renewals are capitalized and included in property, plant and equipment accounts while expenditures for maintenance and repairs and minor renewals are charged to expense. When assets are retired, the assets and related 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 software 3 to 5 years Test systems manufactured internally are used by Teradyne for customer evaluations and manufacturing and support of its customers. Teradyne depreciates the test systems manufactured internally over a six |
Leases | Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” right-of-use 2018-11, “Leases (Topic 842): Targeted Improvements,” Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset. Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. Teradyne determines if the lease is an lease For leases commencing after January 1, 2019, the lease liability is measured at the present value of future lease payments, discounted using the discount rate for the lease at the commencement date. As Teradyne is typically unable to determine the implicit rate, Teradyne uses an incremental borrowing rate based on the lease term and economic environment at commencement date. Teradyne initially measures payments based on an index by using the applicable rate at lease commencement. Variable payments that do not depend on an index are not included in the lease liability and are recognized as they are incurred. The ROU asset is initially measured as the amount of lease liability, adjusted for any initial lease costs, prepaid lease payments, and reduced by any lease incentives. Teradyne’s contracts often include non-lease non-lease |
Engineering and Development Costs | Engineering and Development Costs Teradyne’s products are highly technical in nature and require a large and continuing engineering and development effort. Software development costs incurred prior to the establishment of technological feasibility 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 value estimated in accordance with the provisions of ASC 718-10, Compensation-Stock Compensation In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Adoption of this ASU required recognition of a cumulative effect adjustment to retained earnings for any prior year excess tax benefits or tax deficiencies not previously recorded. The cumulative effect adjustment of $39 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 deficiencies related to stock-based compensation. Prior to adopting ASU 2016-09, paid-in 2016-09, ASU 2016-09 In addition, under ASU 2016-09, Upon adoption of ASU 2016-09, Under its stock compensation plans, Teradyne has granted stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the “Accounting for Income Taxes.” tax-planning |
Advertising Costs | Advertising Costs Teradyne expenses all advertising costs as incurred. Advertising costs were $16.6 million, $15.4 million and $9.1 million in 2019, 2018 and 2017, respectively. |
Translation of Non-U.S. Currencies | Translation of Non-U.S. The functional currency for all non-U.S. non-monetary Net foreign exchange gains and losses resulting from remeasurement are included in other (income) expense, net. For the years ended December 31, 2019, 2018, and 2017, (gains) losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies were $(1.6) million, $(2.5) million, and $2.9 million, respectively. These amounts do not reflect the corresponding (gains) losses from foreign exchange contracts. See Note H: “Financial Instruments” regarding foreign exchange contracts. |
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 weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, diluted net income (loss) per common share is calculated by dividing net income (loss) by the sum of the weighted average number of common shares plus common stock equivalents, if applicable. With respect to its convertible debt issued in 2016, Teradyne has determined that it has the ability and intent to settle the principal of the convertible debt in cash; accordingly, the principal amount is excluded from the determination of diluted earnings per share. As a result, 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, 2019 | |
Deferred Revenue and Customer Advances | As of December 31, 2019 and 2018, deferred revenue and customer advances consisted of the following and are included in the short and long-term deferred revenue and customer advances: 2019 2018 (in thousands) Maintenance , service $ 63,815 $ 58,362 Extended warranty 30,677 27,422 Customer advances, undelivered elements and other 56,358 24,677 Total deferred revenue and customer advances $ 150,850 $ 110,461 |
Other Accrued Liabilities | The balance below is included in other accrued liabilities: Amount (in thousands) 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 Acquisition 14 Accruals for warranties issued during the period 14,106 Accruals related to pre-existing 4,026 Settlements made during the period (17,059 ) Balance at December 31, 2019 $ 8,996 |
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, 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 Deferral of new extended warranty revenue 23,271 Recognition of extended warranty deferred revenue (20,016 ) Balance at December 31, 2019 $ 30,677 |
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: 2019 2018 (in thousands) Contract manufacturer and supplier prepayments $ 143,392 $ 131,642 Prepaid taxes 8,046 9,646 Prepaid maintenance and other services 8,503 8,487 Other prepayments 16,753 12,744 Total prepayments $ 176,694 $ 162,519 |
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 software 3 to 5 years |
Acquisitions and Investment I_2
Acquisitions and Investment In Other Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Autoguide LLC [Member] | |
Final Allocation of Purchase Price | The following table represents the preliminary allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 41,372 Intangible assets 37,660 Tangible assets acquired and liabilities assumed: Other c 3,661 Non-current 1,227 Accounts payable and current liabilities (1,223 ) Long-term other (949 ) Total purchase price $ 81,748 |
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 (in thousands) (in years) Developed technology $ 24,590 6.0 Customer relationships 7,360 6.0 Trademarks and tradenames 5,450 7.0 Backlog 260 0.3 Total intangible assets $ 37,660 6.1 |
Mobile Industrial Robots (MiR) | |
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 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 (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, 2019 December 31, 2018 (in thousands, except per share amounts) Revenues $ 2,303,737 $ 2,111,373 Net income $ 464,602 $ 442,082 Net income per common share: Basic $ 2.73 $ 2.36 Diluted $ 2.59 $ 2.30 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition | The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines. Semiconductor Industrial Automation System Test Wireless Test Corporate and Other Total System on-a-chip Memory Universal Mobile AutoGuide Energid (in thousands) For the Year Ended December 31, 2019 (1) Timing of Revenue Recognition Point in Time $ 1,070,375 $ 247,221 $ 244,515 $ 44,329 $ 1,144 $ — $ 237,686 $ 148,322 $ (515 ) $ 1,993,077 Over Time 216,065 18,910 3,952 74 234 3,891 49,769 8,993 — 301,888 Total $ 1,286,440 $ 266,131 $ 248,467 $ 44,403 $ 1,378 $ 3,891 $ 287,455 $ 157,315 $ (515 ) $ 2,294,965 Geographical Market Asia Pacific $ 1,152,881 $ 238,714 $ 67,806 $ 9,513 $ — $ 221 $ 132,826 $ 126,549 $ — $ 1,728,510 Americas 73,257 23,826 70,165 14,438 1,378 1,761 129,840 24,234 (515 ) 338,384 Europe, Middle East and Africa 60,302 3,591 110,496 20,452 — 1,909 24,789 6,532 — 228,071 Total $ 1,286,440 $ 266,131 $ 248,467 $ 44,403 $ 1,378 $ 3,891 $ 287,455 $ 157,315 $ (515 ) $ 2,294,965 For the Year Ended December 31, 2018 (1) Timing of Revenue Recognition Point in Time $ 1,010,493 $ 259,366 $ 231,895 $ 24,115 $ — $ 553 $ 167,418 $ 122,536 $ (1,205 ) $ 1,815,171 Over Time 208,456 14,102 2,200 — — 2,689 48,714 9,470 — 285,631 Total $ 1,218,949 $ 273,468 $ 234,095 $ 24,115 $ — $ 3,242 $ 216,132 $ 132,006 $ (1,205 ) $ 2,100,802 Geographical Market Asia Pacific $ 1,067,879 $ 245,264 $ 58,381 $ 5,950 $ — $ 111 $ 90,989 $ 107,872 $ — $ 1,576,446 Americas 78,498 17,353 68,938 7,326 — 1,540 96,763 19,166 (1,205 ) 288,379 Europe, Middle East and Africa 72,572 10,851 106,776 10,839 — 1,591 28,380 4,968 — 235,977 Total $ 1,218,949 $ 273,468 $ 234,095 $ 24,115 $ — $ 3,242 $ 216,132 $ 132,006 $ (1,205 ) $ 2,100,802 (1) Includes $8.4 million and $12.0 million in 2019 and 2018, respectively, for leases of Teradyne’s systems recognized outside of ASC 606: “Revenue from Contracts with Customers.” |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Composition of Inventories, Net | Inventories, net consisted of the following at December 31, 2019 and 2018: 2019 2018 (in thousands) Raw material $ 118,595 $ 89,365 Work-in-process 32,695 31,014 Finished g 45,401 33,162 $ 196,691 $ 153,541 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant and Equipment, Net | Property, plant and equipment, net consisted of the following at December 31, 2019 and 2018: 2019 2018 (in thousands) Land $ 16,561 $ 16,561 Buildings 107,282 105,935 Machinery , and s oftware 834,970 752,722 Furniture and fixtures 29,157 27,432 Leasehold improvements 59,378 52,536 Construction in progress 2,537 6,276 1,049,885 961,462 Less: accumulated depreciation 729,669 681,641 $ 320,216 $ 279,821 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018: December 31, 2019 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 $ 311,975 $ — $ — $ 311,975 Cash equivalents 410,285 51,664 — 461,949 Available for sale securities: Corporate debt securities — 97,307 — 97,307 Commercial paper — 54,149 — 54,149 U.S. Treasury securities — 42,382 — 42,382 U.S. government agency securities — 9,952 — 9,952 Debt mutual funds 6,888 — — 6,888 Certificates of deposit and time deposits — 4,751 — 4,751 Non-U.S. government securities — 592 — 592 Equity securities: Equity mutual funds 25,772 — — 25,772 Total $ 754,920 $ 260,797 $ — $ 1,015,717 Derivative assets — 528 — 528 Total $ 754,920 $ 261,325 $ — $ 1,016,245 Liabilities Contingent consideration $ — $ — $ 39,705 $ 39,705 Derivative liabilities — 203 — 203 Total $ — $ 203 $ 39,705 $ 39,908 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 722,260 $ 51,664 $ — $ 773,924 Marketable securities — 137,303 — 137,303 Long-term marketable securities 32,660 71,830 — 104,490 Prepayments — 528 — 528 Total $ 754,920 $ 261,325 $ — $ 1,016,245 Liabilities Other current liabilities $ — $ 203 $ — $ 203 Contingent consideration — — 9,106 9,106 Long-term contingent consideration — — 30,599 30,599 Total $ — $ 203 $ 39,705 $ 39,908 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: Equity 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 $ 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 $ — $ 514 $ 70,543 $ 71,057 |
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, 2019 and 2018 were as follows: Contingent Consideration (in thousands) Balance at December 31, 2017 $ 45,102 Acquisition of MiR 52,547 Foreign currency impact (3,540 ) Payments ( 1 (24,553 ) Fair value adjustment ( 2 987 Balance at December 31, 2018 70,543 Acquisition of AutoGuide 23,976 Foreign currency impact (967 ) Payments (3) (34,590 ) Fair value adjustment (4) (19,257 ) Balance at December 31, 2019 $ 39,705 (1) During the year ended December 31, 201 8 24.6 earn-out Un iversal Robots. (2) 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, earn-out de 16.7 a de (3) During the year ended December 31, 201 9 30.8 and $3.8 million earn-out s s MiR a d , respectively (4) During the year ended December 31, 201 9 earn-out de 22.2 de partially offset by the impact from modification of the earn-out structure. 9 earn-out Auto G in 3.0 n in c rease revenues |
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, 2019 Fair Value Valuation Technique Unobservable Inputs Weighted Average (in thousands) Contingent c (AutoGuide) $ 26,952 Monte Carlo simulation Revenue Volatility 11.5 % Discount Rate 2.6 % Contingent c (MiR) $ 12,753 Monte Carlo simulation Revenue Volatility 14.0 % Discount Rate 0.2 % (1) Contingent consideration related to MiR of $ 9.1 20 |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of Teradyne’s financial instruments at December 31, 2019 and 2018 were as follows: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 773,924 $ 773,924 $ 926,752 $ 926,752 Marketable securities 241,793 241,793 277,827 277,827 Derivative assets 528 528 79 79 Liabilities Contingent consideration 39,705 39,705 70,543 70,543 Derivative liabilities 203 203 514 514 Convertible debt (1) 394,687 1,010,275 379,981 547,113 (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 December 31, 2019 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Corporate debt securities $ 93,267 $ 4,081 $ (41 ) $ 97,307 $ 2,009 Commercial paper 54,124 26 (1 ) 54,149 1,391 U.S. Treasury securities 42,167 431 (216 ) 42,382 17,556 U.S. government agency securities 9,942 14 (4 ) 9,952 3,043 Debt mutual funds 6,753 135 — 6,888 — Certificates of deposit and time deposits 4,751 — — 4,751 — Non-U.S. government securities 592 — — 592 — $ 211,596 $ 4,687 $ (262 ) $ 216,021 $ 23,999 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 137,144 $ 160 $ (1 ) $ 137,303 $ 2,922 Long-term marketable securities 74,452 4,527 (261 ) 78,718 21,077 $ 211,596 $ 4,687 $ (262 ) $ 216,021 $ 23,999 December 31, 2018 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 $ 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. government securities 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 |
Contractual Maturities of Investments Held | The contractual available-for-sale Cost Fair Value (in thousands) Due within one year $ 137,144 $ 137,303 Due after 1 year through 5 years 15,264 15,351 Due after 5 years through 10 years 14,436 14,576 Due after 10 years 37,999 41,903 Total $ 204,843 $ 209,133 Contractual maturities of investments in available-for-sale marketable securities held at December 31, 2019 exclude $6.9 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, 2019 and 2018, Teradyne had the following contracts to buy and sell non-U.S. non-U.S. December 31, 2019 December 31, 2018 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (29.3 ) $ — $ (29.3 ) $ (35.0 ) $ — $ (35.0 ) Taiwan Dollar (18.4 ) — (18.4 ) (11.2 ) — (11.2 ) Korean Won (10.7 ) — (10.7 ) (9.6 ) — (9.6 ) British Pound Sterling (3.8 ) — (3.8 ) (1.4 ) — (1.4 ) Euro — 47.8 47.8 — 82.2 82.2 Singapore Dollar — 25.3 25.3 — 15.7 15.7 Philippine Peso — 5.2 5.2 — 5.2 5.2 Chinese Yuan — 4.4 4.4 — 2.8 2.8 Total $ (62.2 ) $ 82.7 $ 20.5 $ (57.2 ) $ 105.9 $ 48.7 |
Schedule of Notional Amount of Derivatives | At December 31, 2019 and 2018, Teradyne had the following contracts to buy and sell non-U.S. non-U.S. December 31, 2019 December 31, 2018 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (29.3 ) $ — $ (29.3 ) $ (35.0 ) $ — $ (35.0 ) Taiwan Dollar (18.4 ) — (18.4 ) (11.2 ) — (11.2 ) Korean Won (10.7 ) — (10.7 ) (9.6 ) — (9.6 ) British Pound Sterling (3.8 ) — (3.8 ) (1.4 ) — (1.4 ) Euro — 47.8 47.8 — 82.2 82.2 Singapore Dollar — 25.3 25.3 — 15.7 15.7 Philippine Peso — 5.2 5.2 — 5.2 5.2 Chinese Yuan — 4.4 4.4 — 2.8 2.8 Total $ (62.2 ) $ 82.7 $ 20.5 $ (57.2 ) $ 105.9 $ 48.7 |
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, 2019 and 2018: December 31, 2019 December 31, 2018 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Prepayments $ 528 $ 79 Foreign exchange contracts Other current liabilities (203 ) (514 ) Total $ 325 $ (435 ) |
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, 2019, 2018, and 2017. Location of (Gains) Losses Recognized in Statement of Operations December 31, 2019 December 31, 2018 December 31, 2017 (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 5,960 $ 7,386 $ (1,133 ) (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, 2019 and 2018, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $ 1.6 2.5 (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 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: For the Year December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows $ 19,400 Right-of-use 26,739 |
Schedule of operating lease, maturity | Maturities of lease liabilities as of December 31, 2019 were as follows: Operating Lease (in thousands) 2020 $ 21,874 2021 17,638 2022 12,944 2023 6,496 2024 5,106 Thereafter 8,388 Total lease payments 72,446 Less imputed interest (7,121 ) Total lease liabilities $ 65,325 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2018, future non-cancelable Operating Lease (in thousands) 2019 $ 19,570 2020 18,293 2021 13,578 2022 9,693 2023 5,449 Thereafter 9,472 Total lease payments $ 76,055 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Components of Convertible Senior Notes | The below tables represents the key components of Teradyne’s convertible senior notes: December 31, December 31, (in thousands) Debt p $ 460,000 $ 460,000 Unamortized discount 65,313 80,019 Net c $ 394,687 $ 379,981 For the year ended December 31, December 31, (in thousands) Contractual interest expense on the coupon $ 5,750 $ 5,750 Amortization of the discount component and debt issue fees recognized as interest expense 14,706 13,995 Total interest expense on the convertible debt $ 20,456 $ 19,745 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Gain s (Losses) on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Balance at December 31, 2017, net of tax of $0, $1,815, $(932) $ 15,919 $ 1,362 $ 1,495 $ 18,776 Other comprehensive loss (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 (28,442 ) (773 ) (245 ) (29,460 ) Reclassification of tax effects resulting f rom net of tax of — 691 78 769 Reclassification of unrealized gains on equity securities, net of tax of — (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 ) Other comprehensive (loss) (10,991 ) 6,015 — (4,976 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(192), $(43) — (690 ) (148 ) (838 ) Net current period other comprehensive (loss) (10,991 ) 5,325 (148 ) (5,814 ) Balance at December 31, 2019, net of tax of $0, $946, $(1,124) $ (23,514 ) $ 3,480 $ 1,180 $ (18,854 ) (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.” (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 |
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, 2019, 2018, and 2017, were as follows: Details about Accumulated Other Comprehensive Income Components For the year ended Affected Line Item in the Statements of Operations December 31, 2019 December 31, 2018 December 31, 2017 (in thousands) Available-for-sale Unrealized gains $ 690 $ (1,337 ) $ 441 Interest income (expense) Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $43, $71, $154 148 245 272 (a) Total reclassifications, net of tax of $235, $92, $451 $ 838 $ (1,092 ) $ 713 Net income (a) The amortization of prior service credit is included in the computation of net periodic pension cost and postretirement benefit; see Note P: “Retirement Plans.” |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 are as follows: Industrial Automation Wireless Test Semiconductor Test System Test Total (in thousands) Balance at December 31, 2017: Goodwill $ 233,519 $ 361,819 $ 260,540 $ 158,699 $ 1,014,577 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 233,519 7,976 — 10,516 252,011 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 363,358 361,819 260,540 158,699 1,144,416 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) 363,358 7,976 — 10,516 381,850 Lemsys acquisition — — 1,428 — 1,428 Auto G 41,372 — — — 41,372 Foreign currency translation adjustment (8,247 ) — 28 — (8,219 ) Balance at December 31, 2019: Goodwill 396,483 361,819 261,996 158,699 1,178,997 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) $ 396,483 $ 7,976 $ 1,456 $ 10,516 $ 416,431 |
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) 2020 $ 30,606 2021 20,593 2022 19,700 2023 19,226 2024 18,921 Thereafter 16,434 |
Wireless Test | |
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, 2019 Gross Carrying Amount (1 ) Accumulated Amortization (2) Foreign Net Carrying Amount (in thousands) Developed technology $ 361,787 $ (279,000 ) $ (5,709 ) $ 77,078 Customer relationships 75,669 (59,077 ) (455 ) 16,137 Tradenames and trademarks 70,120 (36,671 ) (1,184 ) 32,265 Backlog 260 (260 ) — — Total intangible assets $ 507,836 $ (375,008 ) $ (7,348 ) $ 125,480 December 31, 2018 Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) 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 320 (320 ) — — Backlog 30 (30 ) — — Total intangible assets $ 498,231 $ (367,531 ) $ (5,218 ) $ 125,482 |
Net Income (Loss) per Common _2
Net Income (Loss) per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Computation of Basic and Diluted Net Income (Loss) Per Common Share | The following table sets forth the computation of basic and diluted net income per common share: 2019 2018 2017 (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 467,468 $ 451,779 $ 257,692 Weighted average common shares-basic 170,425 187,672 198,069 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 4,909 2,749 1,298 Convertible note hedge warrant shares (2) 2,698 485 112 Restricted stock units 1,236 1,385 1,800 Stock options 178 278 335 Employee stock purchase rights 13 36 27 Dilutive potential common shares 9,034 4,933 3,572 Weighted average common shares-diluted 179,459 192,605 201,641 Net income per common share-basic $ 2.74 $ 2.41 $ 1.30 Net income per common share-diluted $ 2.60 $ 2.35 $ 1.28 (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 $31.62, 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 $39.68, 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, 2019 | |
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: 2019 2018 United States Foreign United States Foreign (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 178,237 $ 39,146 $ 363,026 $ 39,353 Service cost 1,608 751 2,196 786 Interest cost 7,189 691 8,940 687 Actuarial loss 24,447 4,520 (30,136 ) 773 Benefits paid (7,690 ) (836 ) (14,793 ) (741 ) Retiree annuity purchase — — (151,341 ) — Liability loss due to settlement — — 345 — Non-U.S. — (320 ) — (1,712 ) End of year 203,791 43,952 178,237 39,146 Change in plan assets: Fair value of plan assets: Beginning of year 144,301 1,400 324,506 1,307 Company contributions 2,805 923 2,587 822 Actual return on plan assets 27,516 64 (16,658 ) 50 Benefits paid (7,690 ) (836 ) (14,793 ) (741 ) Retiree annuity purchase — — (151,341 ) — Non-U.S. — 35 — (38 ) End of year 166,932 1,586 144,301 1,400 Funded status $ (36,859 ) $ (42,366 ) $ (33,936 ) $ (37,746 ) |
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: 2019 2018 United States Foreign United States Foreign (in thousands) Retirement plans assets $ 18,457 $ — $ 16,883 $ — Accrued employees’ compensation and withholdings (2,826 ) (922 ) (2,676 ) (852 ) Retirement plans liabilities (52,490 ) (41,444 ) (48,143 ) (36,894 ) Funded status $ (36,859 ) $ (42,366 ) $ (33,936 ) $ (37,746 ) |
Amounts Recognized in Accumulated Other Comprehensive Income | The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2019 2018 United States Foreign United States Foreign (in thousands) Deferred taxes related to prior service cost recognized in other comprehensive income $ 560 $ — $ 560 $ — |
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: 2019 2018 United States Foreign United States Foreign (in millions) Projected benefit obligation $ 55.3 $ 44.0 $ 50.8 $ 39.1 Accumulated benefit obligation 53.2 39.9 48.6 35.6 Fair value of plan assets — 1.6 — 1.4 |
Net Periodic Pension and Postretirement Benefit Costs | For the years ended December 31, 2019, 2018, and 2017, Teradyne’s net periodic pension cost 2019 2018 2017 United States Foreign United States Foreign United States Foreign (in thousands) Components of Net Periodic Pension Cost Service cost $ 1,608 $ 751 $ 2,196 $ 786 $ 2,239 $ 818 Interest cost 7,189 691 8,940 687 13,151 852 Expected return on plan assets (6,042 ) (29 ) (9,049 ) (19 ) (12,008 ) (165 ) Amortization of prior service cost — — 58 — 70 — Net actuarial loss 2,973 4,485 (4,429 ) 743 (6,712 ) (310 ) Settlement loss — — 345 — — — Total net periodic pension cost $ 5,728 $ 5,898 $ (1,939 ) $ 2,197 $ (3,260 ) $ 1,195 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Reversal of amortization items: Prior service cost — — (58 ) — (70 ) — Total recognized in other comprehensive income — — (58 ) — (70 ) — Total recognized in net periodic pension cost and other comprehensive income $ 5,728 $ 5,898 $ (1,997 ) $ 2,197 $ (3,330 ) $ 1,195 |
Weighted Average Assumptions to Determine Net Periodic Cost and Benefit Obligation | Weighted Average Assumptions to Determine Net Periodic Pension Cost at January 1: 2019 2018 2017 United States Foreign United States Foreign United States Foreign Discount rate 4.1 % 1.8 % 3.4 % 1.8 % 3.9 % 1.8 % Expected return on plan assets 4.3 2.0 4.3 1.5 4.0 2.0 Salary progression rate 2.5 2.5 2.3 2.7 2.6 2.7 Weighted Average Assumptions to Determine Pension Obligations at December 31: 2019 2018 United States Foreign United States Foreign Discount rate 3.0 % 1.1 % 4.1 % 1.8 % Salary progression rate 2.6 2.5 2.5 2.6 |
Weighted Average Pension Asset Allocations by Category | The following table provides weighted average pension asset allocation by asset category at December 31, 2019 and 2018: 2019 2018 United States Foreign United States Foreign Fixed income securities 94.0 % — % 94.0 % — % Equity securities 5.0 — 5.0 — Other 1.0 100.0 1.0 100.0 100.0 % 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 U.S. Long Government Bond Index 14 High yield fixed income Barclays U.S. High Yield 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, 2019 and December 31, 2018 were as follows: December 31, 2019 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 $ — $ 133,792 $ — $ 133,792 $ — $ — $ — $ — U.S. government securities — 23,186 — 23,186 — — — — Global equity — 8,344 — 8,344 — — — — Other — — — — — 1,586 — 1,586 Cash and cash equivalents 1,610 — — 1,610 — — — — Total $ 1,610 $ 165,322 $ — $ 166,932 $ — $ 1,586 $ — $ 1,586 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 |
Expected Future Benefit Payments | Future benefit payments are expected to be paid as follows: United States Foreign (in thousands) 2020 $ 8,027 $ 1,237 2021 8,416 985 2022 9,163 982 2023 9,785 1,258 2024 10,558 1,098 2025-2029 59,665 6,129 |
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 year ended December 31, 2018 were Group Annuity Insurance Contracts (in thousands) Balance at December 31, 2017 $ 3,166 Transfer out of level 3 (2,658 ) Purchase s f insurance ontracts (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: 2019 2018 (in thousands) Assets and Obligations Change in benefit obligation: Projected benefit obligation: Beginning of year $ 9,256 $ 6,177 Service cost 41 39 Interest cost 347 196 Actuarial loss 717 25 Benefits paid (1,358 ) (889 ) Special termination benefits — 3,708 End of year 9,003 9,256 Change in plan assets: Fair value of plan assets: Beginning of year — — Company contributions 1,358 889 Benefits paid (1,358 ) (889 ) End of year — — Funded status $ (9,003 ) $ (9,256 ) |
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: 2019 2018 (in thousands) Accrued employees’ compensation and withholdings $ (1,231 ) $ (1,310 ) Retirement plans liability (7,772 ) (7,946 ) Funded status $ (9,003 ) $ (9,256 ) |
Amounts Recognized in Accumulated Other Comprehensive Income | The following table provides amounts recognized in accumulated other comprehensive income as of December 31: 2019 2018 (in thousands) Prior service credit, before tax $ (58 ) $ (249 ) Deferred taxes (1,684 ) (1,641 ) Total recognized in other comprehensive income, net of tax $ (1,742 ) $ (1,890 ) |
Net Periodic Pension and Postretirement Benefit Costs | For the years ended December 31, 2019, 2018, and 2017, Teradyne’s net periodic postretirement benefit cost (income) was comprised of the following: 2019 2018 2017 (in thousands) Components of Net Periodic Postretirement Benefit Cost (income): Service cost $ 41 $ 39 $ 34 Interest cost 347 196 201 Amortization of prior service credit (191 ) (373 ) (496 ) Net actuarial loss 717 25 398 Special termination benefits — 3,708 591 Total net periodic postretirement benefit cost 914 3,595 728 Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Prior service cost — — — Reversal of amortization items: Prior service credit 191 373 496 Total recognized in other comprehensive income 191 373 496 Total recognized in net periodic postretirement cost and other comprehensive income $ 1,105 $ 3,968 $ 1,224 |
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: 2019 2018 2017 Discount rate 4.0 % 3.4 % 3.9 % Initial health care cost trend rate 7.5 7.9 7.3 Ultimate health care cost trend rate 4.5 4.5 5.0 Year in which ultimate health care cost trend rate is reached 2026 2026 2023 Weighted Average Assumptions to Determine Postretirement Benefit Obligation as of December 31: 2019 2018 2017 Discount rate 3.0 % 4.0 % 3.4 % Initial medical trend 7.1 7.5 7.9 Ultimate health care trend 4.5 4.5 4.5 Medical cost trend rate decrease to ultimate rate in year 2026 2026 2026 |
Expected Future Benefit Payments | Future benefit payments are expected to be paid as follows: Benefit Payments (in thousands) 2020 $ 1,231 2021 1,171 2022 958 2023 789 2024 662 2025-2029 1,965 |
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, 2019 would have the following effects: 1 Percentage Point Increase 1 Percentage Point Decrease (in thousands) Effect on total service and interest cost components $ 6 $ (6 ) Effect on postretirement benefit obligations 139 (133 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 2017 Risk-free interest rate 2.6 % 2.2 % 1.5 % Teradyne volatility-historical 31.9 % 26.8 % 26.6 % NYSE Composite Index volatility-historical 11.9 % 12.4 % 13.4 % Dividend yield 1.0 % 0.8 % 1.0 % |
Fair Value of Stock Options Using Assumptions | The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: 2019 2018 2017 Expected life (years) 5.0 5.0 5.0 Risk-free interest rate 2.5 % 2.4 % 2.0 % Volatility-historical 30.1 % 26.4 % 27.8 % Dividend yield 1.00 % 0.80 % 1.00 % |
Stock Compensation Plan Activity | Stock compensation plan activity for the years 2019, 2018, and 2017, is as follows: 2019 2018 2017 (in thousands) Restricted Stock Units: Non-vested 2,454 3,174 3,778 Awarded 1,139 790 939 Vested (1,237 ) (1,382 ) (1,434 ) Forfeited (87 ) (128 ) (109 ) Non-vested 2,269 2,454 3,174 Stock Options: Outstanding at January 1 506 531 926 Granted 102 69 111 Exercised (280 ) (94 ) (501 ) Forfeited (7 ) — — Expired (2 ) — (5 ) Outstanding at December 31 319 506 531 Vested and expected to vest at December 31 319 506 531 Exercisable at December 31 85 256 233 |
Share Based Compensation Total Shares Available | Total shares available for the years 2019, 2018, and 2017: 2019 2018 2017 (in thousands) Shares available: Available for grant at January 1 7,874 8,605 9,546 Options granted (102 ) (69 ) (111 ) Options forfeited 7 — — Restricted stock units awarded (1,139 ) (790 ) (939 ) Restricted stock units forfeited 87 128 109 Available for grant at December 31 6,727 7,874 8,605 |
Weighted-Average Restricted Stock Unit Award Date Fair Value | Weighted average restricted stock unit award date fair value information for the years 2019, 2018, and 2017 , 2019 2018 2017 Non-vested $ 29.22 $ 21.71 $ 18.27 Awarded 39.08 45.99 28.91 Vested 23.59 20.20 17.90 Forfeited 35.60 24.67 20.35 Non-vested $ 35.58 $ 29.22 $ 21.71 |
Restricted Stock Unit Awards Aggregate Intrinsic Value | Restricted stock unit awards aggregate intrinsic value information at December 31 for the years 2019, 2018 , 2019 2018 2017 (in thousands) Vested $ 46,110 $ 63,688 $ 40,649 Outstanding 154,752 77,015 132,875 Expected to vest 152,374 77,187 130,594 |
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 2019, 2018, and 2019 2018 2017 Outstanding 1.02 0.92 1.00 Expected to vest 1.02 0.91 0.99 |
Weighted Average Stock Options Exercise Price | Weighted average stock options exercise price information for the year ended December 31, 2019 is as follows: 2019 Outstanding at January 1 $ 19.06 Options granted 37.95 Options exercised 13.20 Options forfeited 36.75 Options cancelled 1.48 Outstanding at December 31 29.91 Exercisable at December 31 14.97 |
Stock Option Aggregate Intrinsic Value Information | Stock option aggregate intrinsic value information for the years ended December 31, 2019, 2018, and 2017 is as follows: 2019 2018 2017 (in thousands) Exercised $ 9,232 $ 2,960 $ 8,035 Outstanding 12,218 7,359 14,831 Vested and expected to vest 7,701 7,359 14,831 Exercisable 4,517 5,905 9,076 |
Stock Options Weighted Average Remaining Contractual Terms | Stock options weighted average remaining contractual terms (in years) information at December 31, for the years 2019, 2018, and 2017 is as follows: 2019 2018 2017 Outstanding 4.2 3.6 4.1 Vested and expected to vest 5.0 3.6 4.1 Exercisable 2.1 2.4 2.8 |
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, 2019, 2018, and 2017: 2019 2018 2017 (in thousands) Cost of revenues $ 3,480 $ 3,129 $ 3,212 Engineering and development 9,913 9,181 9,370 Selling and administrative 24,504 21,267 21,515 Stock-based compensation 37,897 33,577 34,097 Income tax benefit (8,360 ) (12,036 ) (10,462 ) Total stock-based compensation expense after income taxes $ 29,537 $ 21,541 $ 23,635 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 2017 (in thousands) Income before income taxes U.S. $ 192,442 $ 189,691 $ 76,699 Non-U.S. 333,330 278,110 447,713 $ 525,772 $ 467,801 $ 524,412 Provision (benefit) for income taxes Current: U.S. Federal $ 19,297 $ (59,122 ) $ 162,679 Non-U.S. 52,810 45,083 64,313 State (4,347 ) 1,721 2,623 67,760 (12,318 ) 229,615 Deferred: U.S. Federal (4,522 ) 29,252 43,687 Non-U.S. (8,007 ) (1,243 ) (6,476 ) State 3,073 331 (106 ) (9,456 ) 28,340 37,105 Total provision for income taxes $ 58,304 $ 16,022 $ 266,720 |
Reconciliation of Effective Tax Rate | A reconciliation of the effective tax rate for the years 2019, 2018 and 2017 is as follows: 2019 2018 2017 U.S. statutory federal tax rate 21.0 % 21.0 % 35.0 % U.S. global intangible low-taxed income 6.2 0.3 — U.S. transition tax 1.9 (10.5 ) 28.7 State income taxes, net of federal tax benefit 0.5 0.1 (0.4 ) Foreign tax credits (5.9 ) (2.2 ) (2.2 ) Uncertain tax positions (4.3 ) 1.0 1.7 Foreign taxes (4.0 ) (2.0 ) (16.3 ) U.S. foreign derived intangible income (2.6 ) (1.8 ) — U.S. research and development credit (1.8 ) (2.2 ) (1.6 ) Equity compensation (0.7 ) (1.2 ) (0.8 ) Impact of rate change on deferred taxes — 0.3 6.9 Domestic production activities deduction — — (0.3 ) Other, net 0.8 0.6 0.2 11.1 % 3.4 % 50.9 % |
Deferred Tax Assets (Liabilities) | Significant components of Teradyne’s deferred tax assets (liabilities) as of December 31, 2019 and 2018 were as follows: 2019 2018 (in thousands) Deferred tax assets Tax credits $ 79,480 $ 69,091 Accruals 25,424 23,449 Pension liabilities 24,459 20,826 Inventory valuations 18,572 18,514 Deferred revenue 7,622 9,130 Equity compensation 7,042 7,190 Vacation accrual 4,768 4,772 Investment impairment 3,292 — Net operating loss carryforwards 2,705 3,658 Marketable s — 962 Other 1,472 685 Gross deferred tax assets 174,836 158,277 Less: valuation allowance (77,177 ) (69,852 ) Total deferred tax assets $ 97,659 $ 88,425 Deferred tax liabilities: Depreciation $ (18,238 ) $ (14,028 ) Intangible assets (16,705 ) (24,211 ) Marketable securities (1,601 ) — Total deferred tax liabilities $ (36,544 ) $ (38,239 ) Net deferred assets $ 61,115 $ 50,186 |
Operating Loss Carryforwards | At December 31, 2019, Teradyne had operating loss carryforwards that expire in the following years: State Operating Loss Carryforwards Federal Operating Loss Carryforwards Foreign Operating Loss Carryforwards ( in t 2020 $ 269 $ — $ — 2021 2,141 — — 2022 4,934 — — 2023 4,342 — — 2024 1,498 — — 2025-2029 7,673 — — 2030-2034 4,329 — 15 Beyond 2034 2,185 554 74 Non-expiring 1,357 — 4,207 Total $ 28,728 $ 554 $ 4,296 |
Unrecognized Tax Benefits | Teradyne’s gross unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Beginning balance, as of January 1 $ 43,395 $ 36,263 $ 38,958 Additions: Tax positions for current year 1,322 4,716 8,208 Tax positions for prior years 8,043 2,626 199 Reductions: Tax positions for prior years (31,397 ) (153 ) (10,573 ) Expiration of statutes (183 ) (57 ) (325 ) Settlements with tax authorities — — (204 ) Ending balance as of December 31 $ 21,180 $ 43,395 $ 36,263 |
Operating Segment, Geographic_2
Operating Segment, Geographic and Significant Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | Segment information for the years ended December 31, 2019, 2018, and 2017 is as follows: Semiconductor Test Industrial Automation System Test Wireless Test Corporate And Other Consolidated (in thousands) 2019 Revenues $ 1,552,571 $ 298,139 $ 287,455 $ 157,315 $ (515 ) $ 2,294,965 Income (loss) before taxes (1)(2) 416,973 (5,916 ) 93,543 35,585 (14,413 ) 525,772 Total assets (3) 784,808 671,559 131,428 97,299 1,101,920 2,787,014 Property additions 112,145 9,076 3,059 10,362 — 134,642 Depreciation and amortization expense 59,197 40,904 5,518 5,365 9,671 120,655 2018 Revenues $ 1,492,417 $ 261,452 $ 216,132 $ 132,006 $ (1,205 ) $ 2,100,802 Income (loss) before taxes (1)(2) 397,645 7,670 48,857 29,052 (15,423 ) 467,801 Total assets (3) 669,452 607,502 88,098 77,570 1,263,984 2,706,606 Property additions 94,496 11,188 3,469 5,226 — 114,379 Depreciation and amortization expense 58,095 36,755 6,430 5,328 6,616 113,224 2017 Revenues $ 1,662,549 $ 170,056 $ 192,135 $ 111,866 $ — $ 2,136,606 Income (loss) before taxes (1)(2) 491,361 8,763 10,305 17,350 (3,368 ) 524,411 Total assets (3) 597,480 368,037 97,018 59,912 1,987,098 3,109,545 Property additions 87,920 7,044 5,976 4,435 — 105,375 Depreciation and amortization expense 58,901 25,711 6,646 5,392 11,425 108,075 (1) Included in Corporate and Other are: contingent consideration adjustments, investment impairment , , property insurance recovery (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. (3) 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 Information by Segment Charges | Included in each segment are charges and credits in the following line items in the statements of operation s For the Year Ended December 31, 2019 2018 2017 (in thousands) Semiconductor Test: Cost of revenues—inventory charge $ 8,731 $ 6,822 $ 4,606 Restructuring and other—employee severance 1,277 8,429 1,779 Restructuring and other—impairment of fixed assets — — 1,124 Industrial Automation: Restructuring and other—employee severance $ 796 $ — $ 1,414 Restructuring and other—acquisition related expenses and compensation 741 1,163 — Cost of revenues—inventory charge 508 680 — System Test: Cost of revenues—inventory charge $ 2,000 $ 1,175 $ 1,918 Wireless: Cost of revenues—inventory charge $ 4,005 $ 2,565 $ 2,190 Restructuring and other—lease impairment — — 972 Corporate and Other: Restructuring and other—MiR contingent consideration adjustment $ (22,199 ) $ 17,666 $ — Other (income) expense, net—investment impairment charge 15,000 — — Restructuring and other—AutoGuide contingent consideration adjustment 2,976 — — Selling and administrative—equity modification charge 2,108 — — Restructuring and other—acquisition related expenses and compensation 1,765 3,422 — Restructuring and other—Universal Robots contingent consideration adjustment — (16,679 ) 7,820 Restructuring and other—property insurance recovery related to Japan earthquake — — (5,064 ) |
Revenues by Country | Information as to Teradyne’s revenues by country is as follows: 2019 2018 2017 (in thousands) Revenues from customers (1): China $ 514,327 $ 348,942 $ 260,451 Taiwan 485,681 516,322 687,031 United States 333,059 282,869 252,516 Korea 239,504 163,224 206,819 Europe 219,015 223,207 163,715 Japan 175,322 158,281 169,093 Thailand 87,503 59,184 29,566 Singapore 84,111 108,618 101,085 Malaysia 58,200 122,797 124,048 Philippines 54,560 77,996 105,850 Rest of the World 43,683 39,362 36,432 $ 2,294,965 $ 2,100,802 $ 2,136,606 (1) Revenues attributable to a country are based on location of customer site. |
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area: United Foreign(1) Total (in thousands) December 31, 2019 $ 252,812 $ 124,943 $ 377,755 December 31, 2018 $ 209,368 $ 70,453 $ 279,821 (1) As of December 31, 2019 and 2018, long-lived assets attributable to Singapore were $35.2 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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. 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2) (3) (4)(5) ( 6 (in thousands, except per share amounts) Revenues: Products $ 393,442 $ 457,511 $ 488,170 $ 548,552 Services 100,657 106,667 93,868 106,098 Total revenues 494,099 564,178 582,038 654,650 Cost of revenues: Cost of products 165,368 193,299 197,196 226,184 Cost of services 41,096 46,961 39,804 45,228 Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) 206,464 240,260 237,000 271,412 Gross profit 287,635 323,918 345,038 383,238 Operating expenses: Selling and administrative 102,013 108,811 109,166 117,092 Engineering and development 76,791 81,434 77,804 86,794 Acquired intangible assets amortization 10,634 10,083 9,647 9,784 Restructuring and other 5,112 (10,404 ) (6,500 ) (2,088 ) Total operating expenses 194,550 189,924 190,117 211,582 Income from operations 93,085 133,994 154,921 171,656 Non-operating Interest income (8,052 ) (5,430 ) (5,159 ) (6,145 ) Interest expense 5,713 5,800 5,682 5,950 Other (income) expense, net 1,445 2,447 2,665 22,965 Income before income taxes 93,979 131,177 151,733 148,886 Income tax (benefit) provision (15,159 ) 33,780 15,873 23,811 Net income $ 109,138 $ 97,397 $ 135,860 $ 125,075 Net income per common share—basic $ 0.63 $ 0.57 $ 0.80 $ 0.75 Net income per common share—diluted $ 0.62 $ 0.55 $ 0.75 $ 0.69 Cash dividend declared per common share $ 0.09 $ 0.09 $ 0.09 $ 0.09 (1) Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. (2) Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR (3) Restructuring and other includes a million gain for the decrease in the fair value of Mi R contingent consideration liability, partially offset by of employee severance charges and of acquisition related expenses an d compensa t (4) Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation (5) Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. (6) Other (income) expense, net includes a $15.0 million charge for the impairment of the investment in RealWear. 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (1) (2) (3) (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 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 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 $ 86,974 $ 101,037 $ 119,978 $ 143,790 Net income per common share—basic $ 0.45 $ 0.53 $ 0.65 $ 0.80 Net income 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 of $3.5 million for the fourth quarter in 2018. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. |
The Company - Additional inform
The Company - Additional information (Detail) | Nov. 14, 2019 | Nov. 13, 2019USD ($) | Apr. 25, 2018USD ($) | Apr. 25, 2018USD ($) | Feb. 26, 2018USD ($) | Jan. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Feb. 28, 2020USD ($) | Jun. 03, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||
Contingent consideration | $ 24,000,000 | $ 30,800,000 | $ 30,800,000 | $ 9,100,000 | $ 9,100,000 | ||||||
Investment impairment | 15,000,000 | 15,000,000 | |||||||||
Real War In [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity Method Investments | 0 | 0 | $ 15,000,000 | ||||||||
Real War In [Member] | Subsequent Event [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Repayment of debt demanded | $ 25,000,000 | ||||||||||
Industrial Automation [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total preliminary purchase price | 81,700,000 | ||||||||||
Energid Technologies Corporation | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total preliminary purchase price | $ 27,600,000 | ||||||||||
Mobile Industrial Robots (MiR) | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash paid to acquire outstanding common and preferred stock | 145,200,000 | 145,200,000 | |||||||||
Total preliminary purchase price | 197,680,000 | ||||||||||
Contingent consideration | $ 52,600,000 | $ 52,600,000 | 9,100,000 | 9,100,000 | $ 31,000,000 | ||||||
Arrangement range of outcomes value high | 63,200,000 | 63,200,000 | |||||||||
Lemsys | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total preliminary purchase price | $ 9,100,000 | ||||||||||
Autoguide LLC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Arrangement range of outcomes value high | 106,900,000 | $ 106,900,000 | $ 106,900,000 | ||||||||
Autoguide LLC [Member] | Industrial Automation [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash paid to acquire outstanding common and preferred stock | 57,800,000 | ||||||||||
Contingent consideration | $ 24,000,000 | ||||||||||
Business acquisition percentage of equity | 100.00% | 100.00% | |||||||||
Arrangement range of outcomes value high | $ 106,900,000 | ||||||||||
Quantity of material to be transported | 4,500 | 4,500 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2019 | Sep. 29, 2019 | [3] | Jun. 30, 2019 | [4] | Mar. 31, 2019 | [5] | Dec. 31, 2018 | Sep. 30, 2018 | [8] | Jul. 01, 2018 | [9] | Apr. 01, 2018 | [10] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Mar. 31, 2017 | Feb. 28, 2016 | |||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
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 | $ 5,000 | $ 3,800 | $ 3,600 | ||||||||||||||||||||
Cumulative effect adjustment to increase retained earnings and deferred tax assets | $ 12,679 | 12,679 | |||||||||||||||||||||
Income tax provision (benefit) | $ 23,811 | [1],[2] | $ 15,873 | $ 33,780 | $ (15,159) | (32,662) | [6],[7] | $ 20,863 | $ 18,975 | $ 8,846 | 58,304 | 16,022 | 266,720 | ||||||||||
Advertising costs | 16,600 | 15,400 | 9,100 | ||||||||||||||||||||
Losses (gains) on foreign currency transactions | (1,600) | (2,500) | 2,900 | ||||||||||||||||||||
Trade Accounts Receivable | 143,600 | 52,200 | 143,600 | 52,200 | |||||||||||||||||||
Lease right-of-use assets | 57,539 | 57,539 | $ 50,100 | $ 50,100 | |||||||||||||||||||
Operating Lease, Liability | $ 65,325 | 65,325 | $ 54,300 | $ 54,300 | |||||||||||||||||||
ASU 2016-09 | |||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Cumulative effect adjustment to increase retained earnings and deferred tax assets | $ 39,000 | ||||||||||||||||||||||
Income tax provision (benefit) | $ 4,900 | 7,600 | 6,300 | ||||||||||||||||||||
ASU 2017-07 | |||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Increase (decrease) in income from operations | $ (5,000) | ||||||||||||||||||||||
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 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] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||||
[3] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||||||
[4] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||||||
[5] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. | ||||||||||||||||||||||
[6] | 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. | ||||||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $3.5 million for the fourth quarter in 2018. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||||
[8] | 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. | ||||||||||||||||||||||
[9] | 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. | ||||||||||||||||||||||
[10] | 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 $2.4 million of employee severance charges. |
Deferred Revenue and Customer A
Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Revenue Arrangement | ||||
Maintenance, service and training | $ 63,815 | $ 58,362 | ||
Extended warranty | 30,677 | 27,422 | $ 24,438 | $ 28,200 |
Customer advances, undelivered elements and other | 56,358 | 24,677 | ||
Total deferred revenue and customer advances | $ 150,850 | $ 110,461 |
Warranty Accrual Included in Ot
Warranty Accrual Included in Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Product Warranty Liability [Line Items] | |||
Balance at beginning of period | $ 7,909 | $ 8,200 | $ 7,203 |
Acquisition | 14 | 41 | |
Accruals for warranties issued during the period | 14,106 | 13,045 | 14,223 |
Accruals related to pre-existing warranties | 4,026 | 921 | (379) |
Settlements made during the period | (17,059) | (14,298) | (12,847) |
Balance at end of period | $ 8,996 | $ 7,909 | $ 8,200 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Product Warranty Liability [Line Items] | |||
Balance at beginning of period | $ 27,422 | $ 24,438 | $ 28,200 |
Deferral of new extended warranty revenue | 23,271 | 23,753 | 20,513 |
Recognition of extended warranty deferred revenue | (20,016) | (20,769) | (24,275) |
Balance at end of period | $ 30,677 | $ 27,422 | $ 24,438 |
Schedule of Prepayments and Oth
Schedule of Prepayments and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid And Other Current Assets [Line Items] | ||
Contract manufacturer and supplier prepayments | $ 143,392 | $ 131,642 |
Prepaid taxes | 8,046 | 9,646 |
Prepaid maintenance and other services | 8,503 | 8,487 |
Other prepayments | 16,753 | 12,744 |
Total prepayments | $ 176,694 | $ 162,519 |
Useful Lives of Assets (Detail)
Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
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 Equipment And Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 3 years |
Machinery Equipment And Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful lives, maximum years | 5 years |
Acquisitions and Investment I_3
Acquisitions and Investment In Other Company - Additional Information (Detail) | Nov. 14, 2019USD ($) | Nov. 13, 2019USD ($) | Apr. 25, 2018USD ($) | Apr. 25, 2018USD ($) | Feb. 26, 2018USD ($) | Jan. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2020USD ($) | Jun. 03, 2019USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||||||||
Business acquisiton consideration through earnouts | $ 24,000,000 | $ 30,800,000 | $ 30,800,000 | $ 9,100,000 | $ 9,100,000 | $ 9,100,000 | ||||||||
Goodwill | 416,431,000 | 416,431,000 | $ 381,850,000 | 416,431,000 | $ 381,850,000 | $ 252,011,000 | ||||||||
Investment impairment | 15,000,000 | 15,000,000 | ||||||||||||
Industrial Automation | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total preliminary purchase price | 81,700,000 | |||||||||||||
Goodwill | 396,483,000 | 396,483,000 | 363,358,000 | 396,483,000 | 363,358,000 | $ 233,519,000 | ||||||||
Estimate of Fair Value Measurement [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business acquisiton consideration through earnouts | 39,705,000 | 39,705,000 | 70,543,000 | 39,705,000 | 70,543,000 | |||||||||
Real War In [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Equity Method Investments | 0 | 0 | 0 | $ 15,000,000 | ||||||||||
Subsequent Event [Member] | Real War In [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Repayment of debt demanded | $ 25,000,000 | |||||||||||||
Autoguide LLC [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total preliminary purchase price | $ 81,748,000 | |||||||||||||
Arrangement range of outcomes value high | 106,900,000 | 106,900,000 | 106,900,000 | 106,900,000 | ||||||||||
Goodwill, not deductible for tax purposes | 41,400,000 | |||||||||||||
Revenues | 1,400,000 | |||||||||||||
Business combination earnings or loss of acquiree since acquisition date | (900,000) | |||||||||||||
Goodwill | $ 41,372,000 | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 1 month 6 days | |||||||||||||
Autoguide LLC [Member] | Industrial Automation | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total preliminary purchase price | 81,700,000 | |||||||||||||
Cash paid to acquire outstanding common and preferred stock | 57,800,000 | |||||||||||||
Business acquisiton consideration through earnouts | 24,000,000 | |||||||||||||
Arrangement range of outcomes value high | $ 106,900,000 | |||||||||||||
Quantity of material to be transported | 4,500 | 4,500 | ||||||||||||
Business acquisition percentage of equity | 100.00% | 100.00% | ||||||||||||
Autoguide LLC [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenues | 100,000 | 400,000 | ||||||||||||
Autoguide LLC [Member] | Acquisition Related Costs | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Net income | 1,200,000 | 1,200,000 | ||||||||||||
Mobile Industrial Robots (MiR) | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total preliminary purchase price | 197,778,000 | 197,778,000 | ||||||||||||
Cash paid to acquire outstanding common and preferred stock | 145,200,000 | 145,200,000 | ||||||||||||
Business acquisiton consideration through earnouts | 52,600,000 | 52,600,000 | 9,100,000 | 9,100,000 | 31,000,000 | 9,100,000 | 31,000,000 | |||||||
Arrangement range of outcomes value high | $ 63,200,000 | $ 63,200,000 | 63,200,000 | |||||||||||
Goodwill, not deductible for tax purposes | 136,000,000 | 136,000,000 | ||||||||||||
Revenues | 24,100,000 | |||||||||||||
Business combination earnings or loss of acquiree since acquisition date | $ (7,600,000) | |||||||||||||
Net income | $ 464,602,000 | 442,082,000 | ||||||||||||
Total preliminary purchase price | 197,680,000 | |||||||||||||
Goodwill | $ 135,976,000 | $ 135,976,000 | ||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 2 months 12 days | |||||||||||||
Mobile Industrial Robots (MiR) | Estimate of Fair Value Measurement [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenues | 400,000 | |||||||||||||
Mobile Industrial Robots (MiR) | Acquisition Related Costs | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Net income | $ 2,900,000 | |||||||||||||
Energid Technologies Corporation | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total preliminary purchase price | $ 27,600,000 | |||||||||||||
Goodwill | 14,400,000 | |||||||||||||
Acquired value of intangible assets | $ 12,300,000 | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 8 months 12 days | |||||||||||||
Net tangible assets | $ 1,000,000 | |||||||||||||
Lemsys [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total preliminary purchase price | $ 1.4 | |||||||||||||
Total preliminary purchase price | 9,100,000 | |||||||||||||
Acquired value of intangible assets | $ 4,600,000 | |||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 2 months 12 days | |||||||||||||
Net tangible assets | $ 3,100,000 |
Final Allocation of Purchase Pr
Final Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 14, 2019 | Dec. 31, 2018 | Apr. 25, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 416,431 | $ 381,850 | $ 252,011 | ||
Autoguide LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 41,372 | ||||
Intangible assets | 37,660 | ||||
Other current assets | 3,661 | ||||
Non-current assets | 1,227 | ||||
Accounts payable and current liabilities | (1,223) | ||||
Long-term deferred tax liabilities | (949) | ||||
Total purchase price | $ 81,748 | ||||
Mobile Industrial Robots (MiR) | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 135,976 | ||||
Intangible assets | 80,670 | ||||
Other 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) - USD ($) $ in Thousands | Nov. 14, 2019 | Apr. 25, 2018 | Dec. 31, 2019 |
Autoguide LLC [Member] | |||
Business Acquisition [Line Items] | |||
Total intangible assets, fair value | $ 37,660 | ||
Total intangible assets, estimated useful life, years | 6 years 1 month 6 days | ||
Mobile Industrial Robots (MiR) | |||
Business Acquisition [Line Items] | |||
Total intangible assets, fair value | $ 80,670 | $ 37,700 | |
Total intangible assets, estimated useful life, years | 7 years 2 months 12 days | ||
Developed technology | Autoguide LLC [Member] | |||
Business Acquisition [Line Items] | |||
Total intangible assets, fair value | $ 24,590 | ||
Total intangible assets, estimated useful life, years | 6 years | ||
Developed technology | Mobile Industrial Robots (MiR) | |||
Business Acquisition [Line Items] | |||
Total intangible assets, fair value | $ 58,900 | ||
Total intangible assets, estimated useful life, years | 7 years | ||
Trademarks and tradenames | Autoguide LLC [Member] | |||
Business Acquisition [Line Items] | |||
Total intangible assets, fair value | $ 7,360 | ||
Total intangible assets, estimated useful life, years | 6 years | ||
Trademarks and tradenames | Mobile Industrial Robots (MiR) | |||
Business Acquisition [Line Items] | |||
Total intangible assets, fair value | $ 13,240 | ||
Total intangible assets, estimated useful life, years | 11 years | ||
Customer Relationships | Autoguide LLC [Member] | |||
Business Acquisition [Line Items] | |||
Total intangible assets, fair value | $ 5,450 | ||
Total intangible assets, estimated useful life, years | 7 years | ||
Customer Relationships | Mobile Industrial Robots (MiR) | |||
Business Acquisition [Line Items] | |||
Total intangible assets, fair value | $ 8,500 | ||
Total intangible assets, estimated useful life, years | 2 years 6 months | ||
Customer backlog | Autoguide LLC [Member] | |||
Business Acquisition [Line Items] | |||
Total intangible assets, fair value | $ 260 | ||
Total intangible assets, estimated useful life, years | 3 months 18 days | ||
Customer backlog | Mobile Industrial Robots (MiR) | |||
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, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 2,303,737 | $ 2,111,373 |
Net income | $ 464,602 | $ 442,082 |
Net income per common share, basic | $ 2.73 | $ 2.36 |
Net income per common share, diluted | $ 2.59 | $ 2.30 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Revenue And Customer Advances | $ 65.6 | $ 69.9 |
Short-term Contract with Customer [Member] | ||
Revenue, Remaining Performance Obligation, Percentage | 70.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 12 months | |
Long-term Contract with Customer [Member] | ||
Revenue, Remaining Performance Obligation, Percentage | 26.00% | |
Long-term Contract with Customer [Member] | Maximum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 3 years | |
Long-term Contract with Customer [Member] | Minimum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 1 year |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [2] | $ 2,294,965 | [1] | $ 2,100,802 | [1] | $ 2,136,606 |
Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | 1,552,571 | 1,492,417 | 1,662,549 | |||
System Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | 287,455 | [1] | 216,132 | [1] | 192,135 | |
Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | 298,139 | 261,452 | 170,056 | |||
Wireless Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | 157,315 | [1] | 132,006 | [1] | $ 111,866 | |
Corporate and Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | (515) | (1,205) | |||
Point in Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,993,077 | 1,815,171 | |||
Point in Time | System Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 237,686 | 167,418 | |||
Point in Time | Wireless Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 148,322 | 122,536 | |||
Point in Time | Corporate and Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | (515) | (1,205) | |||
Over Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 301,888 | 285,631 | |||
Over Time | System Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 49,769 | 48,714 | |||
Over Time | Wireless Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 8,993 | 9,470 | |||
Americas | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 338,384 | 288,379 | |||
Americas | System Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 129,840 | 96,763 | |||
Americas | Wireless Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 24,234 | 19,166 | |||
Americas | Corporate and Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | (515) | (1,205) | |||
Europe, Middle East and Africa | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 228,071 | 235,977 | |||
Europe, Middle East and Africa | System Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 24,789 | 28,380 | |||
Europe, Middle East and Africa | Wireless Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 6,532 | 4,968 | |||
Asia Pacific | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,728,510 | 1,576,446 | |||
Asia Pacific | System Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 132,826 | 90,989 | |||
Asia Pacific | Wireless Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 126,549 | 107,872 | |||
SOC | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,286,440 | 1,218,949 | |||
SOC | Point in Time | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,070,375 | 1,010,493 | |||
SOC | Over Time | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 216,065 | 208,456 | |||
SOC | Americas | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 73,257 | 78,498 | |||
SOC | Europe, Middle East and Africa | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 60,302 | 72,572 | |||
SOC | Asia Pacific | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,152,881 | 1,067,879 | |||
Memory | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 266,131 | 273,468 | |||
Memory | Point in Time | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 247,221 | 259,366 | |||
Memory | Over Time | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 18,910 | 14,102 | |||
Memory | Americas | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 23,826 | 17,353 | |||
Memory | Europe, Middle East and Africa | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 3,591 | 10,851 | |||
Memory | Asia Pacific | Semiconductor Test | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 238,714 | 245,264 | |||
Universal Robots (UR) | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 248,467 | 234,095 | |||
Universal Robots (UR) | Point in Time | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 244,515 | 231,895 | |||
Universal Robots (UR) | Over Time | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 3,952 | 2,200 | |||
Universal Robots (UR) | Americas | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 70,165 | 68,938 | |||
Universal Robots (UR) | Europe, Middle East and Africa | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 110,496 | 106,776 | |||
Universal Robots (UR) | Asia Pacific | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 67,806 | 58,381 | |||
MiR | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 44,403 | 24,115 | |||
MiR | Point in Time | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 44,329 | 24,115 | |||
MiR | Over Time | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 74 | ||||
MiR | Americas | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 14,438 | 7,326 | |||
MiR | Europe, Middle East and Africa | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 20,452 | 10,839 | |||
MiR | Asia Pacific | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 9,513 | 5,950 | |||
AutoGuide | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,378 | ||||
AutoGuide | Point in Time | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,144 | ||||
AutoGuide | Over Time | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 234 | ||||
AutoGuide | Americas | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,378 | ||||
AutoGuide | Europe, Middle East and Africa | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 0 | ||||
Energid | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 3,891 | 3,242 | |||
Energid | Point in Time | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 553 | ||||
Energid | Over Time | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 3,891 | 2,689 | |||
Energid | Americas | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,761 | 1,540 | |||
Energid | Europe, Middle East and Africa | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | 1,909 | 1,591 | |||
Energid | Asia Pacific | Industrial Automation | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total | [1] | $ 221 | $ 111 | |||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | |||||
[2] | Revenues attributable to a country are based on location of customer site. |
Disaggregated Revenue by Prim_2
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Revenue on leases | $ 8.4 | $ 12 |
Composition of Inventories, Net
Composition of Inventories, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Raw material | $ 118,595 | $ 89,365 |
Work-in-process | 32,695 | 31,014 |
Finished goods | 45,401 | 33,162 |
Inventories, net | $ 196,691 | $ 153,541 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Inventory reserves | $ 103.6 | $ 100.8 |
Property Plant and Equipment, N
Property Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 16,561 | $ 16,561 |
Buildings | 107,282 | 105,935 |
Machinery, equipment and software | 834,970 | 752,722 |
Furniture and fixtures | 29,157 | 27,432 |
Leasehold improvements | 59,378 | 52,536 |
Construction in progress | 2,537 | 6,276 |
Property, Plant and Equipment, Gross, Total | 1,049,885 | 961,462 |
Less: accumulated depreciation | 729,669 | 681,641 |
Property, plant and equipment, net | $ 320,216 | $ 279,821 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation of property, plant and equipment | $ 70,834 | $ 67,415 | $ 66,122 |
Accumulated depreciation | 729,669 | 681,641 | |
Test Systems Leased By Customers | |||
Property, Plant and Equipment [Line Items] | |||
Machinery and equipment | 5,400 | 5,500 | |
Accumulated depreciation | $ 5,100 | $ 5,200 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 13, 2019 | |
Financial Instruments and Fair Value [Line Items] | ||||
Available-for-sale securities, realized gain | $ 1,300,000 | $ 4,000,000 | $ 1,100,000 | |
Available-for-sale securities, realized loss | 200,000 | 1,600,000 | 300,000 | |
Available-for-sale marketable securities, Fair Market Value of Investments in debt securities with Unrealized Losses | 23,999,000 | 191,978,000 | ||
Fair market value of investments with unrealized losses greater than one year | 28,500,000 | |||
Aggregate loss of investments with unrealized losses greater than one year | 1,600,000 | |||
Fair market value of investments with unrealized losses less than one year | 163,500,000 | |||
Aggregate loss of investments with unrealized losses less than one year | 23,600,000 | 1,400,000 | ||
Unrealized Gain (loss) on contracts | 1,600,000 | 2,500,000 | $ (2,900,000) | |
Equity securities unrealized gain | 5,300,000 | 1,400,000 | ||
Equity securities unrealized loss | $ 400,000 | $ 7,400,000 | ||
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 securities with out contractual maturity date | $ 6,900 | |||
Mobile Industrial Robots (MiR) | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Maximum amount of contingent consideration paid for acquisition | 63,200,000 | |||
Autoguide LLC [Member] | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Maximum amount of contingent consideration paid for acquisition | 106,900,000 | $ 106,900,000 | ||
Foreign Exchange Contracts | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Unrealized Gain (loss) on contracts | $ 300,000 | $ 400,000 |
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, 2019 | Nov. 13, 2019 | Dec. 31, 2018 | Apr. 25, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | $ 216,021 | $ 256,636 | ||
Contingent consideration | 9,100 | $ 24,000 | $ 30,800 | |
Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 97,307 | 40,020 | ||
Commercial Paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 54,149 | 86,117 | ||
U.S. Treasury Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 42,382 | 109,721 | ||
U.S. Government Agency Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 9,952 | 9,611 | ||
Debt Mutual Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 6,888 | 3,187 | ||
Certificates of Deposit and Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 4,751 | 7,604 | ||
Non-U.S. Government Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 592 | 376 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Total | 1,015,717 | 1,204,579 | ||
Derivative assets | 528 | 79 | ||
Total | 1,016,245 | 1,204,658 | ||
Contingent consideration | 39,705 | 70,543 | ||
Derivative liabilities | 203 | 514 | ||
Total | 39,908 | 71,057 | ||
Fair Value, Measurements, Recurring | Cash | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Cash and cash equivalents | 311,975 | 312,512 | ||
Fair Value, Measurements, Recurring | Cash Equivalents | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Cash and cash equivalents | 461,949 | 614,240 | ||
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 97,307 | 40,020 | ||
Fair Value, Measurements, Recurring | Commercial Paper | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 54,149 | 86,117 | ||
Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 42,382 | 109,721 | ||
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 9,952 | 9,611 | ||
Fair Value, Measurements, Recurring | Debt Mutual Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 6,888 | 3,187 | ||
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 | 4,751 | 7,604 | ||
Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale securities | 592 | 376 | ||
Fair Value, Measurements, Recurring | Equity Mutual Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Available for sale equity securities | 25,772 | 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 | 754,920 | 590,415 | ||
Total | 754,920 | 590,415 | ||
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 | 311,975 | 312,512 | ||
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 | 410,285 | 253,525 | ||
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 | 6,888 | 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 | 25,772 | 21,191 | ||
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Total | 260,797 | 614,164 | ||
Derivative assets | 528 | 79 | ||
Total | 261,325 | 614,243 | ||
Derivative liabilities | 203 | 514 | ||
Total | 203 | 514 | ||
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 | 51,664 | 360,715 | ||
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 | 97,307 | 40,020 | ||
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 | 54,149 | 86,117 | ||
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 | 42,382 | 109,721 | ||
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 | 9,952 | 9,611 | ||
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 | 4,751 | 7,604 | ||
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 | 592 | 376 | ||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Contingent consideration | 39,705 | 70,543 | ||
Total | $ 39,705 | $ 70,543 |
Schedule of Reported Financial
Schedule of Reported Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 1,016,245 | $ 1,204,658 |
Liabilities | 39,908 | 71,057 |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 203 | 514 |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 773,924 | 926,752 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 137,303 | 190,096 |
Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 104,490 | 87,731 |
Prepayments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 528 | 79 |
Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 9,106 | 34,865 |
Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 30,599 | 35,678 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 754,920 | 590,415 |
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 | 722,260 | 566,037 |
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 | 32,660 | 24,378 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 261,325 | 614,243 |
Liabilities | 203 | 514 |
Significant Other Observable Inputs (Level 2) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 203 | 514 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 51,664 | 360,715 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 137,303 | 190,096 |
Significant Other Observable Inputs (Level 2) | Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 71,830 | 63,353 |
Significant Other Observable Inputs (Level 2) | Prepayments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 528 | 79 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 39,705 | 70,543 |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 9,106 | 34,865 |
Significant Unobservable Inputs (Level 3) | Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | $ 30,599 | $ 35,678 |
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, 2019 | Dec. 31, 2018 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance at beginning of period | $ 70,543 | $ 45,102 | |
Acquisition of MiR | 23,976 | 52,547 | |
Foreign currency impact | (967) | (3,540) | |
Payments | [1] | (34,590) | (24,553) |
Fair value adjustment | [2] | (19,257) | 987 |
Balance at end of period | $ 39,705 | $ 70,543 | |
[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, 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 $16.7 million primarily due to a decrease in forecasted revenues. |
Schedule of Changes in Fair V_2
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Payments of contingent consideration | $ 27,615 | $ 13,571 | $ 1,050 | ||||||
Increase (decrease) in contingent consideration | (19,257) | 987 | $ 7,820 | ||||||
Universal Robots (UR) | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Payments of contingent consideration | 30,800 | ||||||||
Increase (decrease) in contingent consideration | $ 11,700 | $ 3,000 | $ 7,400 | $ 5,000 | $ 3,500 | 3,800 | 16,700 | ||
Avionics Interface Technologies, LLC | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Payments of contingent consideration | 24,600 | ||||||||
MiR | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Increase (decrease) in contingent consideration | (22,200) | $ 17,700 | |||||||
Autoguide LLC [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Increase (decrease) in contingent consideration | $ 3,000 | $ 3,000 |
Quantitative Information Associ
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Nov. 13, 2019 | Dec. 31, 2018 | Apr. 25, 2018 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent consideration | $ 9,100 | $ 24,000 | $ 30,800 | ||
Mobile Industrial Robots (MiR) | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Contingent consideration | $ 9,100 | $ 31,000 | $ 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 | 11.50% | ||||
Discount rate | 2.60% | ||||
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] | $ 26,952 | |||
Monte Carlo Simulation | Revenue for the period July 1, 2018-December 31, 2018 | Universal Robots (UR) | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Target achievement, volatility | 14.00% | ||||
Discount rate | 0.20% | ||||
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] | $ 12,753 | |||
[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) $ in Millions | 1 Months Ended |
Mar. 31, 2019USD ($) | |
Mobile Industrial Robots (MiR) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Payment for contingent consideration | $ 9.1 |
Schedule of Carrying Amounts an
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 13, 2019 | Dec. 31, 2018 | Apr. 25, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||
Marketable securities | $ 216,021 | $ 256,636 | |||
Contingent consideration | 9,100 | $ 24,000 | $ 30,800 | ||
Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||
Cash and cash equivalents | 773,924 | 926,752 | |||
Marketable securities | 241,793 | 277,827 | |||
Derivative assets | 528 | 79 | |||
Contingent consideration | 39,705 | 70,543 | |||
Derivative liabilities | 203 | 514 | |||
Convertible debt | [1] | 394,687 | 379,981 | ||
Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||||
Cash and cash equivalents | 773,924 | 926,752 | |||
Marketable securities | 241,793 | 277,827 | |||
Derivative assets | 528 | 79 | |||
Contingent consideration | 39,705 | 70,543 | |||
Derivative liabilities | 203 | 514 | |||
Convertible debt | [1] | $ 1,010,275 | $ 547,113 | ||
[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, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 211,596 | $ 259,011 |
Available-for-sale marketable securities, Unrealized Gain | 4,687 | 592 |
Available-for-sale marketable securities, Unrealized (Loss) | (262) | (2,967) |
Available-for-sale marketable securities, Fair Market Value | 216,021 | 256,636 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 23,999 | 191,978 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 93,267 | 41,133 |
Available-for-sale marketable securities, Unrealized Gain | 4,081 | 432 |
Available-for-sale marketable securities, Unrealized (Loss) | (41) | (1,545) |
Available-for-sale marketable securities, Fair Market Value | 97,307 | 40,020 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 2,009 | 24,767 |
Commercial Paper | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 54,124 | 86,130 |
Available-for-sale marketable securities, Unrealized Gain | 26 | 13 |
Available-for-sale marketable securities, Unrealized (Loss) | (1) | (26) |
Available-for-sale marketable securities, Fair Market Value | 54,149 | 86,117 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 1,391 | 85,094 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 42,167 | 110,969 |
Available-for-sale marketable securities, Unrealized Gain | 431 | 112 |
Available-for-sale marketable securities, Unrealized (Loss) | (216) | (1,360) |
Available-for-sale marketable securities, Fair Market Value | 42,382 | 109,721 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 17,556 | 75,040 |
U.S. Government Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 9,942 | 9,646 |
Available-for-sale marketable securities, Unrealized Gain | 14 | 1 |
Available-for-sale marketable securities, Unrealized (Loss) | (4) | (36) |
Available-for-sale marketable securities, Fair Market Value | 9,952 | 9,611 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 3,043 | 7,077 |
Debt Mutual Funds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 6,753 | 3,153 |
Available-for-sale marketable securities, Unrealized Gain | 135 | 34 |
Available-for-sale marketable securities, Fair Market Value | 6,888 | 3,187 |
Certificates of Deposit and Time Deposits | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 4,751 | 7,604 |
Available-for-sale marketable securities, Unrealized Gain | 0 | |
Available-for-sale marketable securities, Fair Market Value | 4,751 | 7,604 |
Non-U.S. Government Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 592 | 376 |
Available-for-sale marketable securities, Fair Market Value | $ 592 | $ 376 |
Schedule of Reported Available
Schedule of Reported Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 211,596 | $ 259,011 |
Available-for-sale marketable securities, Unrealized Gain | 4,687 | 592 |
Available-for-sale marketable securities, Unrealized (Loss) | (262) | (2,967) |
Available-for-sale marketable securities, Fair Market Value | 216,021 | 256,636 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 23,999 | 191,978 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 137,144 | 190,100 |
Available-for-sale marketable securities, Unrealized Gain | 160 | 88 |
Available-for-sale marketable securities, Unrealized (Loss) | (1) | (92) |
Available-for-sale marketable securities, Fair Market Value | 137,303 | 190,096 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 2,922 | 140,262 |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 74,452 | 68,911 |
Available-for-sale marketable securities, Unrealized Gain | 4,527 | 504 |
Available-for-sale marketable securities, Unrealized (Loss) | (261) | (2,875) |
Available-for-sale marketable securities, Fair Market Value | 78,718 | 66,540 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $ 21,077 | $ 51,716 |
Contractual Maturities of Inves
Contractual Maturities of Investments in Debt Securities Held (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Schedule of Available-for-sale Securities | |
Due within one year, cost | $ 137,144 |
Due after 1 year through 5 years, cost | 15,264 |
Due after 5 years through 10 years, cost | 14,436 |
Due after 10 years, cost | 37,999 |
Total, cost | 204,843 |
Due within one year, fair market value | 137,303 |
Due after 1 year through 5 years, fair market value | 15,351 |
Due after 5 years through 10 years, fair market value | 14,576 |
Due after 10 years, fair maket value | 41,903 |
Total, fair market value | $ 209,133 |
Schedule of Notional Amount of
Schedule of Notional Amount of Derivatives (Detail) - Foreign Exchange Contracts - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | $ 20.5 | $ 48.7 |
Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (62.2) | (57.2) |
Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 82.7 | 105.9 |
Japanese Yen | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (29.3) | (35) |
Japanese Yen | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (29.3) | (35) |
Taiwan Dollar | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (18.4) | (11.2) |
Taiwan Dollar | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (18.4) | (11.2) |
Korean Won | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (10.7) | (9.6) |
Korean Won | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (10.7) | (9.6) |
British Pound Sterling | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (3.8) | (1.4) |
British Pound Sterling | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (3.8) | (1.4) |
Euro | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 47.8 | 82.2 |
Euro | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 47.8 | 82.2 |
Singapore Dollar | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 25.3 | 15.7 |
Singapore Dollar | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 25.3 | 15.7 |
Philippines, Pesos | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 5.2 | 5.2 |
Philippines, Pesos | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 5.2 | 5.2 |
China, Yuan Renminbi | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 4.4 | 2.8 |
China, Yuan Renminbi | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | $ 4.4 | $ 2.8 |
Schedule of Derivative Instrume
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets (liabilities), net | $ 325 | $ (435) |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Prepayments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 528 | 79 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (203) | $ (514) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other (income) expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Losses (Gains) on derivatives recognized in statements of operations | $ 5,960 | $ 7,386 | $ (1,133) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) on foreign currency transactions | $ 1.6 | $ 2.5 | $ (2.9) |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Feb. 28, 2016 | |
Total lease expense | $ 35,600 | ||
Variable lease costs | 11,100 | ||
Lease right-of-use assets | 57,539 | $ 50,100 | $ 50,100 |
Operating Lease, Liability | $ 65,325 | $ 54,300 | $ 54,300 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 6 months | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.00% | ||
Short-term Lease, Cost | $ 2,600 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows | $ 19,400 |
Right-of-use assets obtained in exchange for new lease obligations | $ 26,739 |
Schedule of Operating Lease, Ma
Schedule of Operating Lease, Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Feb. 28, 2016 |
2020 | $ 21,874 | |||
2021 | 17,638 | |||
2022 | 12,944 | |||
2023 | 6,496 | |||
2024 | 5,106 | |||
Thereafter | 8,388 | |||
Total lease payments | 72,446 | |||
Less imputed interest | (7,121) | |||
Total lease liabilities | $ 65,325 | $ 54,300 | $ 54,300 | |
2019 | $ 19,570 | |||
2020 | 18,293 | |||
2021 | 13,578 | |||
2022 | 9,693 | |||
2023 | 5,449 | |||
Thereafter | 9,472 | |||
Total lease payments | $ 76,055 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands, shares in Millions | Dec. 12, 2016USD ($)Customershares | Apr. 27, 2015USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)$ / shares |
Debt Instrument | ||||||
Repurchase of common stock | $ 500,000 | $ 823,478 | $ 200,304 | |||
Term of loan, years | 5 years | |||||
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 | $ 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, conversion option expiration date | Sep. 15, 2023 | |||||
Debt instrument conversion price | $ / shares | $ 31.62 | $ 31.62 | ||||
Shares that would be issued upon conversion | shares | 14.5 | |||||
Strike price per share of warrant | $ / shares | $ 39.68 | |||||
Debt instrument, convertible, carrying amount of equity component | $ 100,800 | |||||
Debt instrument, effective annual interest rate | 5.00% | |||||
Financing cost | $ 4,300 | $ 7,200 | ||||
Debt issuance costs, amortization period | 7 years | |||||
Unamortized discount | $ 65,300 | |||||
Debt Instrument, convertible, remaining discount amortization period | 4 years | |||||
Value of notes converted | $ 992,000 | |||||
Debt Instrument, Face Amount | $ 460,000 | $ 460,000 | $ 460,000 | |||
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 | ||||||
Aggregate principal amount | $ 1,000 | |||||
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% | |||||
Debt Instrument, Face Amount | $ 1,000 | |||||
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, 2019 | Dec. 31, 2018 | Dec. 12, 2016 |
Debt Instrument | |||
Net carrying amount of convertible debt | $ 394,687 | $ 379,981 | |
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | |||
Debt Instrument | |||
Debt principal | 460,000 | 460,000 | $ 460,000 |
Unamortized discount | 65,313 | 80,019 | |
Net carrying amount of convertible debt | $ 394,687 | $ 379,981 |
Interest Expense on Convertible
Interest Expense on Convertible Senior Notes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument | ||
Contractual interest expense on the coupon | $ 5,750 | $ 5,750 |
Amortization of the discount component and debt issue fees recognized as interest expense | 14,706 | 13,995 |
Total interest expense on the convertible debt | $ 20,456 | $ 19,745 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | $ 1,522,354 | $ 1,953,646 | $ 1,828,659 | |
Other comprehensive income (loss) before reclassifications, net of tax | (4,976) | (30,552) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | (838) | 1,092 | ||
Other comprehensive (loss) income | (5,814) | (29,460) | 38,990 | |
Reclassification of tax effects resulting from the Tax Reform Act | [1] | 769 | ||
Reclassification of unrealized gains on equity securities,net of tax | (690) | 1,337 | (441) | |
Balance | 1,480,158 | 1,522,354 | 1,953,646 | |
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 | (12,523) | 15,919 | ||
Other comprehensive income (loss) before reclassifications, net of tax | (10,991) | (28,442) | ||
Other comprehensive (loss) income | (10,991) | (28,442) | ||
Balance | (23,514) | (12,523) | 15,919 | |
Unrealized Gains (Losses) on Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (1,845) | 1,362 | ||
Other comprehensive income (loss) before reclassifications, net of tax | 6,015 | (2,110) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | (690) | 1,337 | ||
Other comprehensive (loss) income | 5,325 | (773) | ||
Reclassification of tax effects resulting from the Tax Reform Act | [1] | 691 | ||
Balance | 3,480 | (1,845) | 1,362 | |
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 | 1,328 | 1,495 | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | (148) | (245) | (272) | |
Other comprehensive (loss) income | (148) | (245) | ||
Reclassification of tax effects resulting from the Tax Reform Act | [1] | 78 | ||
Balance | 1,180 | 1,328 | 1,495 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance | (13,040) | 18,776 | (20,214) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | (838) | 1,092 | (713) | |
Other comprehensive (loss) income | (5,814) | (29,460) | 38,990 | |
Reclassification of tax effects resulting from the Tax Reform Act | 769 | |||
Balance | $ (18,854) | $ (13,040) | $ 18,776 | |
[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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ (235) | $ (92) | $ (451) |
Reclassification of unrealized gains on equity securities, net of tax | (192) | (21) | (297) |
Foreign currency translation adjustments, tax | 0 | 0 | 0 |
Unrealized (losses) gains on marketable securities, tax | 946 | (521) | 1,815 |
Retirement plans prior service benefit, tax | (1,124) | (1,081) | (932) |
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 | 1,659 | (722) | |
Amounts reclassified from accumulated other comprehensive income (loss), tax | (192) | (21) | (297) |
Other comprehensive income (loss), tax | 1,467 | (743) | |
Reclassification of income tax effects from the Tax Reform Act, net of tax | (691) | ||
Amortization of Prior Service Credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss), tax | (43) | (71) | $ (154) |
Other comprehensive income (loss), tax | $ (43) | (71) | |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income (expense) | $ 690 | $ (1,337) | $ 441 |
Reclassifications, net of tax | 838 | (1,092) | |
Amortization of Prior Service Credit | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, net of tax | 148 | 245 | 272 |
Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, net of tax | $ 838 | $ (1,092) | $ 713 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, tax | $ 235 | $ 92 | $ 451 |
Unrealized (Losses) Gains on Marketable Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, tax | 192 | 21 | 297 |
Amortization of Prior Service Credit | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, tax | $ 43 | $ 71 | $ 154 |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 29, 2019 | [3] | Jun. 30, 2019 | [4] | Mar. 31, 2019 | [5] | Dec. 31, 2018 | [6],[7] | Sep. 30, 2018 | [8] | Jul. 01, 2018 | [9] | Apr. 01, 2018 | [10] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||||||||||||||
Acquired intangible assets amortization | $ 9,784 | [1],[2] | $ 9,647 | $ 10,083 | $ 10,634 | $ 10,558 | $ 11,142 | $ 9,793 | $ 7,698 | $ 40,147 | $ 39,191 | $ 30,530 | |||||||
MiR Reporting Unit Percentage | 14.00% | 14.00% | |||||||||||||||||
MiR Goodwill Amount | $ 123,600 | $ 123,600 | |||||||||||||||||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[4] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[5] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. | ||||||||||||||||||
[6] | 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. | ||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $3.5 million for the fourth quarter in 2018. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[8] | 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. | ||||||||||||||||||
[9] | 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. | ||||||||||||||||||
[10] | 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 $2.4 million of employee severance charges. |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Nov. 14, 2019 | Apr. 25, 2018 | Feb. 26, 2018 | |
Goodwill [Line Items] | ||||||
Goodwill acquisition | $ 1,428 | |||||
Foreign currency translation adjustment | $ (20,531) | |||||
Goodwill | 1,144,416 | 1,014,577 | $ 1,178,997 | |||
Accumulated impairment losses | (762,566) | (762,566) | (762,566) | |||
Goodwill | 381,850 | 252,011 | 416,431 | |||
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 | |||||
Lemsys | ||||||
Goodwill [Line Items] | ||||||
Goodwill acquisition | 41,372 | |||||
Autoguide LLC | ||||||
Goodwill [Line Items] | ||||||
Foreign currency translation adjustment | (8,219) | |||||
Goodwill | $ 41,372 | |||||
Industrial Automation | ||||||
Goodwill [Line Items] | ||||||
Foreign currency translation adjustment | (20,531) | |||||
Goodwill | 363,358 | 233,519 | 396,483 | |||
Accumulated impairment losses | 0 | 0 | 0 | |||
Goodwill | 363,358 | 233,519 | 396,483 | |||
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 | |||||
Industrial Automation | Lemsys | ||||||
Goodwill [Line Items] | ||||||
Goodwill acquisition | 41,372 | |||||
Industrial Automation | Autoguide LLC | ||||||
Goodwill [Line Items] | ||||||
Foreign currency translation adjustment | (8,247) | |||||
Wireless Test | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 361,819 | 361,819 | 361,819 | |||
Accumulated impairment losses | (353,843) | (353,843) | (353,843) | |||
Goodwill | 7,976 | 7,976 | 7,976 | |||
Semiconductor Test | ||||||
Goodwill [Line Items] | ||||||
Goodwill acquisition | 1,428 | |||||
Goodwill | 260,540 | 260,540 | 261,996 | |||
Accumulated impairment losses | (260,540) | (260,540) | (260,540) | |||
Goodwill | 1,456 | |||||
Semiconductor Test | Autoguide LLC | ||||||
Goodwill [Line Items] | ||||||
Foreign currency translation adjustment | 28 | |||||
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, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 507,836 | $ 498,231 |
Accumulated Amortization | (375,008) | (367,531) |
Foreign Currency Translation Adjustment | (7,348) | (5,218) |
Net Carrying Amount | 125,480 | 125,482 |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 361,787 | 336,308 |
Accumulated Amortization | (279,000) | (252,080) |
Foreign Currency Translation Adjustment | (5,709) | (4,079) |
Net Carrying Amount | 77,078 | 80,149 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 75,669 | 97,153 |
Accumulated Amortization | (59,077) | (83,448) |
Foreign Currency Translation Adjustment | (455) | (340) |
Net Carrying Amount | 16,137 | 13,365 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 70,120 | 64,420 |
Accumulated Amortization | (36,671) | (31,653) |
Foreign Currency Translation Adjustment | (1,184) | (799) |
Net Carrying Amount | 32,265 | 31,968 |
Non-compete Agreements | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 320 | |
Accumulated Amortization | (320) | |
Backlog | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 260 | 30 |
Accumulated Amortization | $ (260) | $ (30) |
Schedule of Amortizable Intan_2
Schedule of Amortizable Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 25, 2018 | Dec. 31, 2019 |
Intangible Assets [Member] | ||
Finite-Lived Intangible Assets | ||
Impairment of intangible assets | $ 32,700 | |
Mobile Industrial Robots (MiR) | ||
Finite-Lived Intangible Assets | ||
Intangible assets acquired | $ 80,670 | 37,700 |
Energid Technologies Corporation | ||
Finite-Lived Intangible Assets | ||
Intangible assets acquired | $ 4,600 |
Schedule of Estimated Intangibl
Schedule of Estimated Intangible Asset Amortization Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets | |
2020 | $ 30,606 |
2021 | 20,593 |
2022 | 19,700 |
2023 | 19,226 |
2024 | 18,921 |
Thereafter | $ 16,434 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Purchase Commitment, Excluding Long-term Commitment | ||
Aggregate purchase commitments | $ 415.6 | |
Purchase commitments less than one year | $ 412.9 | |
Warranty period | 1 year | |
Product warranty accrual | $ 9 | $ 7.9 |
Revenue deferrals related to extended warranties | $ 30.7 | $ 27.4 |
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, 2019 | [1],[2] | Sep. 29, 2019 | [3] | Jun. 30, 2019 | [4] | Mar. 31, 2019 | [5] | Dec. 31, 2018 | [6],[7] | Sep. 30, 2018 | [8] | Jul. 01, 2018 | [9] | Apr. 01, 2018 | [10] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net Income Loss Per Common Share | ||||||||||||||||||||
Net income for basic and diluted net income per share | $ 125,075 | $ 135,860 | $ 97,397 | $ 109,138 | $ 143,790 | $ 119,978 | $ 101,037 | $ 86,974 | $ 467,468 | $ 451,779 | $ 257,692 | |||||||||
Weighted average common shares-basic | 170,425 | 187,672 | 198,069 | |||||||||||||||||
Incremental shares from assumed conversion of convertible notes | [11] | 4,909 | 2,749 | 1,298 | ||||||||||||||||
Convertible note hedge warrant shares | [12] | 2,698 | 485 | 112 | ||||||||||||||||
Employee stock purchase plan | 13 | 36 | 27 | |||||||||||||||||
Dilutive potential common shares | 9,034 | 4,933 | 3,572 | |||||||||||||||||
Weighted average common shares-diluted | 179,459 | 192,605 | 201,641 | |||||||||||||||||
Net income per common share-basic | $ 0.75 | $ 0.80 | $ 0.57 | $ 0.63 | $ 0.80 | $ 0.65 | $ 0.53 | $ 0.45 | $ 2.74 | $ 2.41 | $ 1.30 | |||||||||
Net income per common share-diluted | $ 0.69 | $ 0.75 | $ 0.55 | $ 0.62 | $ 0.79 | $ 0.63 | $ 0.52 | $ 0.43 | $ 2.60 | $ 2.35 | $ 1.28 | |||||||||
Restricted Stock Units | ||||||||||||||||||||
Net Income Loss Per Common Share | ||||||||||||||||||||
Incremental shares attributable to share based payment arrangements | 1,236 | 1,385 | 1,800 | |||||||||||||||||
Stock Options | ||||||||||||||||||||
Net Income Loss Per Common Share | ||||||||||||||||||||
Incremental shares attributable to share based payment arrangements | 178 | 278 | 335 | |||||||||||||||||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | |||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[3] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | |||||||||||||||||||
[4] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | |||||||||||||||||||
[5] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. | |||||||||||||||||||
[6] | 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. | |||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $3.5 million for the fourth quarter in 2018. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[8] | 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. | |||||||||||||||||||
[9] | 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. | |||||||||||||||||||
[10] | 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. | |||||||||||||||||||
[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 $39.78, multiplied by 14.5 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Net (Loss) Income Per Common Share (Parenthetical) (Detail) shares in Millions | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Convertible Notes | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $ / shares | $ 31.62 |
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 | $ 39.68 |
Shares that would be issued upon conversion | shares | 14.5 |
Net Income per Common Share - A
Net Income per Common Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Option [Member] | ||
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, 2019 | Sep. 30, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | $ (19,257) | $ 987 | $ 7,820 | |||||||||
Severance benefit and charges | $ 500 | $ 7,800 | $ 800 | $ 800 | $ 800 | $ 3,900 | $ 2,400 | |||||
Acquisition related costs | 200 | 800 | 500 | 1,300 | 500 | $ 800 | 800 | 2,500 | ||||
Wireless Test | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Lease impairment | 1,000 | |||||||||||
Semiconductor Test | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Acquisition related costs | 2,500 | 4,500 | ||||||||||
Semiconductor Test | Property, Plant and Equipment | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Impairment charges fixed assets | 1,100 | |||||||||||
AutoGuide | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | 3,000 | |||||||||||
Impairment of Fixed Assets and Expenses Related to the Japan Earthquake | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Property insurance recovery | 5,100 | |||||||||||
Impairment of Fixed Assets and Expenses Related to the Japan Earthquake | Earthquake Related Expenses | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Impairment charges fixed assets | 800 | |||||||||||
Universal Robots (UR) | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | $ 11,700 | $ 3,000 | 7,400 | $ 5,000 | $ 3,500 | 3,800 | 16,700 | |||||
Severance benefit and charges | $ 1,700 | $ 500 | $ 800 | |||||||||
Mobile Industrial Robots (MiR) | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | $ 5,800 | $ 17,700 | 17,700 | |||||||||
Semiconductor Test and Wireless Test | Universal Robots (UR) | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | 7,800 | |||||||||||
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 | 2,900 | $ 3,800 | ||||||||||
Semiconductor Test, Industrial Automation and Corporate | Mobile Industrial Robots (MiR) | ||||||||||||
Restructuring Cost and Reserve | ||||||||||||
Contingent consideration adjustment | $ 22,200 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)Participant | Dec. 31, 2017USD ($) | |
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 | $ 168,500 | ||
Transfer out of level 3 | $ 2,700 | ||
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 | 3.10% | 4.15% | |
Fair value of pension plans assets totaled | $ 166,900 | ||
U.S. Supplemental Executive Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Contribution to defined benefit pension plans | 900 | $ 2,600 | |
Contribution to defined benefit pension plans in 2018 | 2,800 | ||
Non-United States Subsidiaries | |||
Defined Benefit Plan Disclosure | |||
Contribution to defined benefit pension plans | 800 | ||
Contribution to defined benefit pension plans in 2018 | 1,000 | ||
Taiwan Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Fair value of pension plans assets totaled | 1,600 | ||
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation for defined benefit pension plans | $ 198,200 | $ 172,800 | |
Percentage of expected return on plan assets assumption | 4.30% | 4.30% | 4.00% |
Discount rate utilized to determine future pension obligations | 3.00% | 4.10% | |
Fair value of pension plans assets totaled | $ 166,932 | $ 144,301 | $ 324,506 |
Contribution to defined benefit pension plans | 2,805 | 2,587 | |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation for defined benefit pension plans | $ 39,900 | $ 35,600 | |
Percentage of expected return on plan assets assumption | 2.00% | 1.50% | 2.00% |
Discount rate utilized to determine future pension obligations | 1.10% | 1.80% | |
Fair value of pension plans assets totaled | $ 1,586 | $ 1,400 | $ 1,307 |
Contribution to defined benefit pension plans | $ 923 | $ 822 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure | |||||
Actuarial (gain) loss | $ 7,700 | $ (3,500) | |||
Ending Balance | 168,500 | $ 168,500 | |||
UNITED STATES | |||||
Defined Benefit Plan Disclosure | |||||
Projected benefit obligation, Beginning of year | 178,237 | $ 363,026 | |||
Service cost | 1,608 | 2,196 | $ 2,239 | ||
Interest cost | 7,189 | 8,940 | 13,151 | ||
Actuarial (gain) loss | 24,447 | (30,136) | |||
Benefits paid | (7,690) | (14,793) | |||
Retiree annuity purchase | (151,341) | ||||
Liability loss due to settlement | 345 | ||||
Projected benefit obligation, End of year | 203,791 | 178,237 | 203,791 | 178,237 | 363,026 |
Beginning Balance | 144,301 | 324,506 | |||
Company contributions | 2,805 | 2,587 | |||
Actual return on plan assets | 27,516 | (16,658) | |||
Benefits paid | (7,690) | (14,793) | |||
Retiree annuity purchase | (151,341) | ||||
Ending Balance | 166,932 | 144,301 | 166,932 | 144,301 | 324,506 |
Funded status | (36,859) | (33,936) | (36,859) | (33,936) | |
Foreign Pension Plans, Defined Benefit | |||||
Defined Benefit Plan Disclosure | |||||
Projected benefit obligation, Beginning of year | 39,146 | 39,353 | |||
Service cost | 751 | 786 | 818 | ||
Interest cost | 691 | 687 | 852 | ||
Actuarial (gain) loss | 4,520 | 773 | |||
Benefits paid | (836) | (741) | |||
Non-U.S. currency movement | (320) | (1,712) | |||
Projected benefit obligation, End of year | 43,952 | 39,146 | 43,952 | 39,146 | 39,353 |
Beginning Balance | 1,400 | 1,307 | |||
Company contributions | 923 | 822 | |||
Actual return on plan assets | 64 | 50 | |||
Benefits paid | (836) | (741) | |||
Non-U.S. currency movement | 35 | (38) | |||
Ending Balance | 1,586 | 1,400 | 1,586 | 1,400 | 1,307 |
Funded status | (42,366) | (37,746) | (42,366) | (37,746) | |
Postretirement Benefit Plans | |||||
Defined Benefit Plan Disclosure | |||||
Projected benefit obligation, Beginning of year | 9,256 | 6,177 | |||
Service cost | 41 | 39 | 34 | ||
Interest cost | 347 | 196 | 201 | ||
Actuarial (gain) loss | 717 | 25 | |||
Benefits paid | (1,358) | (889) | |||
Special termination benefits | 3,708 | 591 | |||
Projected benefit obligation, End of year | 9,003 | 9,256 | 9,003 | 9,256 | $ 6,177 |
Company contributions | 1,358 | 889 | |||
Benefits paid | (1,358) | (889) | |||
Funded status | $ (9,003) | $ (9,256) | $ (9,003) | $ (9,256) |
Schedule of Amounts Recorded wi
Schedule of Amounts Recorded within Statements of Financial Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure | ||
Retirement plans assets | $ 18,457 | $ 16,883 |
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Retirement plans assets | 18,457 | 16,883 |
Accrued employees' compensation and withholdings | (2,826) | (2,676) |
Retirement plans liabilities | (52,490) | (48,143) |
Funded status | (36,859) | (33,936) |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Accrued employees' compensation and withholdings | (922) | (852) |
Retirement plans liabilities | (41,444) | (36,894) |
Funded status | (42,366) | (37,746) |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure | ||
Accrued employees' compensation and withholdings | (1,231) | (1,310) |
Retirement plans liabilities | (7,772) | (7,946) |
Funded status | $ (9,003) | $ (9,256) |
Schedule of Amounts Recognized
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Deferred taxes related to prior service cost recognized in other comprehensive income | $ 560 | $ 560 |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure | ||
Prior service cost, before tax | (58) | (249) |
Deferred taxes | (1,684) | (1,641) |
Deferred taxes related to prior service cost recognized in other comprehensive income | $ (1,742) | $ (1,890) |
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, 2019 | Dec. 31, 2018 |
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Projected benefit obligation | $ 55.3 | $ 50.8 |
Accumulated benefit obligation | 53.2 | 48.6 |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Projected benefit obligation | 44 | 39.1 |
Accumulated benefit obligation | 39.9 | 35.6 |
Fair value of plan assets | $ 1.6 | $ 1.4 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension and Postretirement (income) Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure | |||
Net actuarial (gain) loss | $ 8,176 | $ (3,316) | $ (6,624) |
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Service cost | 1,608 | 2,196 | 2,239 |
Interest cost | 7,189 | 8,940 | 13,151 |
Expected return on plan assets | (6,042) | (9,049) | (12,008) |
Amortization of prior service cost | 58 | 70 | |
Net actuarial (gain) loss | 2,973 | (4,429) | (6,712) |
Settlement loss | 345 | ||
Total net periodic pension cost | 5,728 | (1,939) | (3,260) |
Prior service cost | (58) | (70) | |
Total recognized in other comprehensive income | (58) | (70) | |
Total recognized in net periodic pension (income) cost and other comprehensive income | 5,728 | (1,997) | (3,330) |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Service cost | 751 | 786 | 818 |
Interest cost | 691 | 687 | 852 |
Expected return on plan assets | (29) | (19) | (165) |
Net actuarial (gain) loss | 4,485 | 743 | (310) |
Total net periodic pension cost | 5,898 | 2,197 | 1,195 |
Total recognized in net periodic pension (income) cost and other comprehensive income | 5,898 | 2,197 | 1,195 |
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure | |||
Service cost | 41 | 39 | 34 |
Interest cost | 347 | 196 | 201 |
Amortization of prior service cost | (191) | (373) | (496) |
Net actuarial (gain) loss | 717 | 25 | 398 |
Special termination benefits | 3,708 | 591 | |
Total net periodic pension cost | 914 | 3,595 | 728 |
Prior service cost | 191 | 373 | 496 |
Total recognized in other comprehensive income | 191 | 373 | 496 |
Total recognized in net periodic pension (income) cost and other comprehensive income | $ 1,105 | $ 3,968 | $ 1,224 |
Schedule of Weighted Average -
Schedule of Weighted Average - Assumptions to Determine Net Periodic Pension Cost (Detail) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | |
UNITED STATES | ||||||
Defined Benefit Plan Disclosure | ||||||
Discount rate | 4.10% | 3.40% | 3.90% | |||
Expected return on plan assets | 4.30% | 4.30% | 4.00% | |||
Salary progression rate | 2.50% | 2.30% | 2.60% | |||
Foreign Pension Plans, Defined Benefit | ||||||
Defined Benefit Plan Disclosure | ||||||
Discount rate | 1.80% | 1.80% | 1.80% | |||
Expected return on plan assets | 2.00% | 1.50% | 2.00% | |||
Salary progression rate | 2.50% | 2.70% | 2.70% | |||
Postretirement Benefit Plans | ||||||
Defined Benefit Plan Disclosure | ||||||
Discount rate | 4.00% | 3.40% | 3.90% | |||
Initial health care cost trend rate | 7.50% | 7.90% | 7.30% | |||
Ultimate health care cost trend rate | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 5.00% |
Year in which ultimate health care cost trend rate is reached | 2026 | 2026 | 2023 |
Schedule of Weighted Average As
Schedule of Weighted Average Assumptions to Determine Pension Obligations (Detail) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | |
Postretirement Benefit Plans | ||||||
Defined Benefit Plan Disclosure | ||||||
Discount rate | 3.00% | 4.00% | 3.40% | |||
Initial medical trend | 7.10% | 7.50% | 7.90% | |||
Ultimate health care trend | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 5.00% |
Medical cost trend rate decrease to ultimate rate in year | 2026 | 2026 | 2026 | |||
UNITED STATES | ||||||
Defined Benefit Plan Disclosure | ||||||
Discount rate | 3.00% | 4.10% | ||||
Salary progression rate | 2.60% | 2.50% | ||||
Foreign Pension Plans, Defined Benefit | ||||||
Defined Benefit Plan Disclosure | ||||||
Discount rate | 1.10% | 1.80% | ||||
Salary progression rate | 2.50% | 2.60% |
Schedule of Weighted Average Pe
Schedule of Weighted Average Pension Assets Allocations by Category (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
UNITED STATES | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
UNITED STATES | Fixed income securities | ||
Defined Benefit Plan Disclosure | ||
Total | 94.00% | 94.00% |
UNITED STATES | Equity securities | ||
Defined Benefit Plan Disclosure | ||
Total | 5.00% | 5.00% |
UNITED STATES | Other than Securities Investment | ||
Defined Benefit Plan Disclosure | ||
Total | 1.00% | 1.00% |
Foreign Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure | ||
Total | 100.00% | 100.00% |
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, 2019 |
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 Long Government Bond Index | U.S. government fixed income | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 14.00% |
Barclays High Yield Index | High yield fixed income | |
Defined Benefit Plan Disclosure | |
Target assets allocation percentage | 5.00% |
Citigroup 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure | |||
Total | $ 168,500 | ||
UNITED STATES | |||
Defined Benefit Plan Disclosure | |||
Total | 166,932 | $ 144,301 | $ 324,506 |
UNITED STATES | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,610 | 1,449 | |
UNITED STATES | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 165,322 | 142,852 | |
UNITED STATES | Corporate Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 133,792 | 115,424 | |
UNITED STATES | Corporate Debt Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 133,792 | 115,424 | |
UNITED STATES | US Government Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 23,186 | 20,176 | |
UNITED STATES | US Government Debt Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 23,186 | 20,176 | |
UNITED STATES | Global equity Securities | |||
Defined Benefit Plan Disclosure | |||
Total | 8,344 | 7,252 | |
UNITED STATES | Global equity Securities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 8,344 | 7,252 | |
UNITED STATES | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure | |||
Total | 1,610 | 1,449 | |
UNITED STATES | Cash and Cash Equivalents | Quoted Prices in Active Markets for Identical Instruments (Level 1) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,610 | 1,449 | |
Foreign Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure | |||
Total | 1,586 | 1,400 | $ 1,307 |
Foreign Pension Plans, Defined Benefit | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,586 | 1,400 | |
Foreign Pension Plans, Defined Benefit | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,586 | 1,400 | |
Foreign Pension Plans, Defined Benefit | Other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure | |||
Total | 1,586 | 1,400 | |
Foreign Pension Plans, Defined Benefit | Other | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure | |||
Total | $ 1,586 | $ 1,400 |
Schedule of Defined Benefit Pla
Schedule of Defined Benefit Plans Disclosures (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure | ||
Transfer out of Level 3 | $ 2,700 | |
Ending Balance | $ 168,500 | |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure | ||
Interest and market value adjustments | 59 | |
Benefits paid | (40) | |
Other | (15) | |
Significant Unobservable Inputs (Level 3) | Group Annuity Insurance Contracts | ||
Defined Benefit Plan Disclosure | ||
Beginning Balance | $ 0 | 3,166 |
Transfer out of Level 3 | (2,658) | |
Purchases of retiree annuity insurance contracts | (512) | |
Ending Balance | $ 0 |
Schedule of Expected Future Ben
Schedule of Expected Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
UNITED STATES | |
Defined Benefit Plan Disclosure | |
2020 | $ 8,027 |
2021 | 8,416 |
2022 | 9,163 |
2023 | 9,785 |
2024 | 10,558 |
2025-2029 | 59,665 |
Foreign Pension Plans, Defined Benefit | |
Defined Benefit Plan Disclosure | |
2020 | 1,237 |
2021 | 985 |
2022 | 982 |
2023 | 1,258 |
2024 | 1,098 |
2025-2029 | 6,129 |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure | |
2020 | 1,231 |
2021 | 1,171 |
2022 | 958 |
2023 | 789 |
2024 | 662 |
2025-2029 | $ 1,965 |
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, 2019USD ($) | |
Defined Benefit Plan Disclosure | |
Effect of one percentage point increase on total service and interest cost components | $ 6 |
Effect of one percentage point increase on postretirement benefit obligations | 139 |
Effect of one percentage point decrease on total service and interest cost components | (6) |
Effect of one percentage point decrease on postretirement benefit obligations | $ (133) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2020 | Jul. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2018 | Jul. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Total shareholder return performance measurement period | 3 years | ||||||||
Restricted stock unit awards granted | 1,139,000 | 790,000 | 939,000 | ||||||
Weighted average grant date fair value of restricted stock units granted | $ 39.08 | $ 45.99 | $ 28.91 | ||||||
Stock price | $ 37.95 | $ 47.70 | $ 28.56 | ||||||
Tax benefit from compensation expense | $ 8,360,000 | $ 12,036,000 | $ 10,462,000 | ||||||
Total unrecognized expense related to non-vested restricted stock unit awards and stock options | $ 45,000,000 | ||||||||
Unrecognized expense related to non-vested restricted stock unit awards and stock options expected to be recognized over weighted average period, in years | 1 year 9 months 18 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 | 300,000 | 400,000 | ||||
Value of common stock issued to employees per share | $ 40.72 | $ 32.36 | $ 35.59 | $ 25.53 | $ 57.96 | $ 26.67 | |||
Number of shares available for grant | 6,727,000 | 7,874,000 | 8,605,000 | 9,546,000 | |||||
Stock Based Compensation Relating To Retirement Agreement | $ 37,897,000 | $ 33,577,000 | $ 34,097,000 | ||||||
Retirement Agreement [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Stock Based Compensation Relating To Retirement Agreement | 2,100,000 | ||||||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Cash received from employees, employee stock options exercises | 3,700,000 | 1,000,000 | 6,800,000 | ||||||
Tax benefit from compensation expense | $ 2,000,000 | $ 400,000 | $ 2,500,000 | ||||||
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 | 1,139,000 | 790,000 | 939,000 | ||||||
Restricted Stock Units | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Period of stock granted to employees and executive officers vest in equal installments | 4 years | ||||||||
Restricted Stock Units | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Period of stock granted to employees and executive officers vest in equal installments | 1 year | ||||||||
Percentage of awards vesting on the first anniversary of grant date | 100.00% | ||||||||
TSR Performance-Based Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Total shareholder return performance measurement period | 3 years | ||||||||
Share-based compensation arrangement by share-based payment award, description | capped at four times the grant date value for grants prior to 2019 | ||||||||
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 | $ 51.51 | $ 54.85 | $ 35.66 | ||||||
Stock price | 37.95 | 47.70 | 28.56 | ||||||
TSR Performance-Based Restricted Stock Units | Measurement Input, Expected Dividend Payment [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Estimated annual dividend amount per share | $ 0.36 | $ 0.36 | $ 0.28 | ||||||
TSR Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Percentage of vesting of target shares upon performance achieved | 200.00% | ||||||||
TSR Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Percentage of vesting of target shares upon performance achieved | 0.00% | ||||||||
Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of shares available for grant | 1,800,000 | ||||||||
PBIT Performance-Based Restricted Stock Units | |||||||||
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 | $ 36.88 | $ 46.62 | $ 27.72 | ||||||
Service-Based Restricted Stock Units | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Restricted stock unit awards granted | 800,000 | 600,000 | 800,000 | ||||||
Weighted average grant date fair value of restricted stock units granted | $ 37.65 | $ 45.92 | $ 28.19 | ||||||
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 | $ 48.03 | $ 35.81 | $ 34.48 | ||||||
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 | $ 10.64 | $ 12.17 | $ 7.13 | ||||||
Subsequent Event | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Common stock issued to employees | 200,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 2.60% | 2.20% | 1.50% |
Expected historical volatility | 31.90% | 26.80% | 26.60% |
Dividend yield | 1.00% | 0.80% | 1.00% |
New York Stock Exchange Composite Index | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected historical volatility | 11.90% | 12.40% | 13.40% |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (years) | 5 years | 5 years | 5 years |
Risk-free interest rate | 2.50% | 2.40% | 2.00% |
Volatility-historical | 30.10% | 26.40% | 27.80% |
Dividend yield | 1.00% | 0.80% | 1.00% |
Schedule of Stock Compensation
Schedule of Stock Compensation Plan Activity (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Awarded | 1,139 | 790 | 939 |
Forfeited | (87) | (128) | (109) |
Outstanding at January 1 | 506 | 531 | 926 |
Granted | 102 | 69 | 111 |
Exercised | (280) | (94) | (501) |
Forfeited | (7) | ||
Expired | (2) | (5) | |
Outstanding at December 31 | 319 | 506 | 531 |
Vested and expected to vest at December 31 | 319 | 506 | 531 |
Exercisable at December 31 | 85 | 256 | 233 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Non-vested at January 1 | 2,454 | 3,174 | 3,778 |
Awarded | 1,139 | 790 | 939 |
Vested | (1,237) | (1,382) | (1,434) |
Forfeited | (87) | (128) | (109) |
Non-vested at December 31 | 2,269 | 2,454 | 3,174 |
Schedule of Share Based Compens
Schedule of Share Based Compensation Total Shares Available (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Available for grant at January 1 | 7,874 | 8,605 | 9,546 |
Options granted | (102) | (69) | (111) |
Options forfeited | 7 | ||
Restricted stock units awarded | (1,139) | (790) | (939) |
Restricted stock units forfeited | 87 | 128 | 109 |
Available for grant at December 31 | 6,727 | 7,874 | 8,605 |
Schedule of Weighted-Average Re
Schedule of Weighted-Average Restricted Stock Unit Award Fair Value (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Non-vested at January 1 | $ 29.22 | $ 21.71 | $ 18.27 |
Awarded | 39.08 | 45.99 | 28.91 |
Vested | 23.59 | 20.20 | 17.90 |
Forfeited | 35.60 | 24.67 | 20.35 |
Non-vested at December 31 | $ 35.58 | $ 29.22 | $ 21.71 |
Schedule of Restricted Stock Un
Schedule of Restricted Stock Unit Awards Aggregate Intrinsic Value (Detail) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vested | $ 46,110 | $ 63,688 | $ 40,649 |
Outstanding | $ 154,752 | $ 77,015 | $ 132,875 |
Expected to vest | $ 152,374 | $ 77,187 | $ 130,594 |
Schedule of Restricted Stock _2
Schedule of Restricted Stock Units Weighted Average Remaining Contractual Terms (Detail) - Restricted Stock Units | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding | 1 year 7 days | 11 months 1 day | 1 year |
Expected to vest | 1 year 7 days | 10 months 28 days | 11 months 26 days |
Schedule of Weighted Average St
Schedule of Weighted Average Stock Options Exercise Price (Detail) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Outstanding at January 1 | $ 19.06 |
Options granted | 37.95 |
Options exercised | 13.20 |
Option forfeited | 36.75 |
Option cancelled | 1.48 |
Outstanding at December 31 | 29.91 |
Exercisable at December 31 | $ 14.97 |
Schedule of Stock Option Aggreg
Schedule of Stock Option Aggregated Intrinsic Value Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercised | $ 9,232 | $ 2,960 | $ 8,035 |
Outstanding | 12,218 | 7,359 | 14,831 |
Vested and expected to vest | 7,701 | 7,359 | 14,831 |
Exercisable | $ 4,517 | $ 5,905 | $ 9,076 |
Schedule of Stock Options Weigh
Schedule of Stock Options Weighted Average Remaining Contractual Terms (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Outstanding | 4 years 2 months 12 days | 3 years 7 months 6 days | 4 years 1 month 6 days |
Vested and expected to vest | 5 years | 3 years 7 months 6 days | 4 years 1 month 6 days |
Exercisable | 2 years 1 month 6 days | 2 years 4 months 24 days | 2 years 9 months 18 days |
Stock Based Compensation (Detai
Stock Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 37,897 | $ 33,577 | $ 34,097 |
Income tax benefit | (8,360) | (12,036) | (10,462) |
Total stock-based compensation expense after income taxes | 29,537 | 21,541 | 23,635 |
Cost Of Revenues | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 3,480 | 3,129 | 3,212 |
Engineering And Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 9,913 | 9,181 | 9,370 |
Selling and Administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 24,504 | $ 21,267 | $ 21,515 |
Savings Plan - Additional Infor
Savings Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 32.7 | $ 24.4 | |
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 | $ 20.9 | $ 19.4 | $ 16.8 |
Schedule of Income (Loss) Befor
Schedule of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | [1],[2] | Sep. 29, 2019 | [3] | Jun. 30, 2019 | [4] | Mar. 31, 2019 | [5] | Dec. 31, 2018 | [6],[7] | Sep. 30, 2018 | [8] | Jul. 01, 2018 | [9] | Apr. 01, 2018 | [10] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||||||||||||||||||
U.S. | $ 192,442 | $ 189,691 | $ 76,699 | ||||||||||||||||
Non-U.S. | 333,330 | 278,110 | 447,713 | ||||||||||||||||
Income before income taxes | $ 148,886 | $ 151,733 | $ 131,177 | $ 93,979 | $ 111,128 | $ 140,841 | $ 120,012 | $ 95,820 | $ 525,772 | $ 467,801 | $ 524,412 | ||||||||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[4] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[5] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. | ||||||||||||||||||
[6] | 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. | ||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $3.5 million for the fourth quarter in 2018. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[8] | 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. | ||||||||||||||||||
[9] | 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. | ||||||||||||||||||
[10] | 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 $2.4 million of employee severance charges. |
Schedule of Provision (Benefit)
Schedule of Provision (Benefit) for Income Taxes from Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | [1],[2] | Sep. 29, 2019 | [3] | Jun. 30, 2019 | [4] | Mar. 31, 2019 | [5] | Dec. 31, 2018 | [6],[7] | Sep. 30, 2018 | [8] | Jul. 01, 2018 | [9] | Apr. 01, 2018 | [10] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||||||||||||||||||
Current, U.S. Federal | $ 19,297 | $ (59,122) | $ 162,679 | ||||||||||||||||
Current, Non-U.S. | 52,810 | 45,083 | 64,313 | ||||||||||||||||
Current, State | (4,347) | 1,721 | 2,623 | ||||||||||||||||
Current, Total | 67,760 | (12,318) | 229,615 | ||||||||||||||||
Deferred, U.S. Federal | (4,522) | 29,252 | 43,687 | ||||||||||||||||
Deferred, Non-U.S. | (8,007) | (1,243) | (6,476) | ||||||||||||||||
Deferred, State | 3,073 | 331 | (106) | ||||||||||||||||
Deferred, Total | (9,456) | 28,340 | 37,105 | ||||||||||||||||
Total provision (benefit) for income taxes | $ 23,811 | $ 15,873 | $ 33,780 | $ (15,159) | $ (32,662) | $ 20,863 | $ 18,975 | $ 8,846 | $ 58,304 | $ 16,022 | $ 266,720 | ||||||||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[3] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[4] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||
[5] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. | ||||||||||||||||||
[6] | 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. | ||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $3.5 million for the fourth quarter in 2018. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||
[8] | 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. | ||||||||||||||||||
[9] | 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. | ||||||||||||||||||
[10] | 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 $2.4 million of employee severance charges. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | Sep. 29, 2019 | [3] | Jun. 30, 2019 | [4] | Mar. 31, 2019 | [5] | Dec. 31, 2018 | Sep. 30, 2018 | [8] | Jul. 01, 2018 | [9] | Apr. 01, 2018 | [10] | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income Taxes [Line Items] | |||||||||||||||||||||
Total (benefit) provision for income taxes | $ 23,811 | [1],[2] | $ 15,873 | $ 33,780 | $ (15,159) | $ (32,662) | [6],[7] | $ 20,863 | $ 18,975 | $ 8,846 | $ 58,304 | $ 16,022 | $ 266,720 | ||||||||
Effective tax rate | 11.10% | 3.40% | 50.90% | ||||||||||||||||||
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 | ||||||||||||||||||||
Tax savings due to the tax holiday | $ 15,100 | $ 11,900 | $ 24,800 | ||||||||||||||||||
Tax savings due to the tax holiday, per share | $ 0.08 | $ 0.06 | $ 0.12 | ||||||||||||||||||
Tax holiday expiration date | December 31, 2020 | ||||||||||||||||||||
Valuation allowance includes net deferred tax assets | 77,177 | 69,852 | $ 77,177 | $ 69,852 | |||||||||||||||||
Tax credit carryforwards, approximately | 108,400 | $ 108,400 | |||||||||||||||||||
Tax credits carryforwards | 79,480 | 69,091 | 79,480 | 69,091 | |||||||||||||||||
Reduction in un recognized tax benefits | 21,180 | 43,395 | 36,263 | 21,180 | 43,395 | 36,263 | $ 38,958 | ||||||||||||||
Unrecognized tax benefits, if recognized would impact effective tax rate | 12,700 | 12,700 | |||||||||||||||||||
Unrecognized tax benefits, if recognized would impact deferred taxes | 8,500 | 8,500 | |||||||||||||||||||
Accrued interest and penalties | 1,400 | 300 | 1,400 | 300 | |||||||||||||||||
Interest and penalties related to income tax, expense (benefit) | 1,100 | $ 100 | 100 | ||||||||||||||||||
Intercompany Cost Sharing Arrangement [Member] | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Total (benefit) provision for income taxes | 6,300 | ||||||||||||||||||||
United States | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Tax credits carryforwards, business | 2,100 | $ 2,100 | |||||||||||||||||||
Tax credit carryforward, expiration date | 2028 | ||||||||||||||||||||
State and Local Jurisdiction | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Provisional amount of additional income tax expense | 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 | 106,300 | $ 106,300 | |||||||||||||||||||
Reduction in un recognized tax benefits | $ 21,200 | $ 21,200 | |||||||||||||||||||
State and Local Jurisdiction | Earliest Tax Year | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Tax credit carryforward, expiration date | 2020 | ||||||||||||||||||||
State and Local Jurisdiction | Latest Tax Year | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Tax credit carryforward, expiration date | 2039 | ||||||||||||||||||||
State and Local Jurisdiction | Do Not Expire | |||||||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||||||
Tax credits carryforwards | $ 59,700 | $ 59,700 | |||||||||||||||||||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | ||||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||
[3] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||||
[4] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | ||||||||||||||||||||
[5] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. | ||||||||||||||||||||
[6] | 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. | ||||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $3.5 million for the fourth quarter in 2018. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | ||||||||||||||||||||
[8] | 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. | ||||||||||||||||||||
[9] | 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. | ||||||||||||||||||||
[10] | 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 $2.4 million of employee severance charges. |
Schedule of Reconciliation of E
Schedule of Reconciliation of Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||
U.S. statutory federal tax rate | 21.00% | 21.00% | 35.00% |
U.S. global intangible low-taxed income | 6.20% | 0.30% | |
U.S. transition tax | 1.90% | (10.50%) | 28.70% |
State income taxes, net of federal tax benefit | 0.50% | 0.10% | (0.40%) |
Foreign tax credits | (5.90%) | (2.20%) | (2.20%) |
Uncertain tax positions | (4.30%) | 1.00% | 1.70% |
Foreign taxes | (4.00%) | (2.00%) | (16.30%) |
U.S, foreign derived intangible income | (2.60%) | (1.80%) | |
U.S. research and development credit | (1.80%) | (2.20%) | (1.60%) |
Equity compensation | (0.70%) | (1.20%) | (0.80%) |
Impact of rate change on deferred taxs | 0.30% | 6.90% | |
Domestic production activities deduction | (0.30%) | ||
Other, net | 0.80% | 0.60% | 0.20% |
Effective tax rate, Total | 11.10% | 3.40% | 50.90% |
Schedule of Components of Defer
Schedule of Components of Deferred Tax Assets Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Line Items] | ||
Tax credits | $ 79,480 | $ 69,091 |
Accruals | 18,572 | 18,514 |
Pension liabilities | 25,424 | 23,449 |
Inventory valuations | 24,459 | 20,826 |
Deferred revenue | 7,622 | 9,130 |
Equity compensation | 7,042 | 7,190 |
Vacation accrual | 4,768 | 4,772 |
Investment impairment | 3,292 | |
Net operating loss carryforwards | 2,705 | 3,658 |
Marketable securities | 962 | |
Other | 1,472 | 685 |
Gross deferred tax assets | 174,836 | 158,277 |
Less: valuation allowance | (77,177) | (69,852) |
Total deferred tax assets | 97,659 | 88,425 |
Intangible assets | (18,238) | (14,028) |
Depreciation | (16,705) | (24,211) |
Marketable securities | (1,601) | |
Total deferred tax liabilities | (36,544) | (38,239) |
Net deferred assets | $ 61,115 | $ 50,186 |
Summary of Operating Loss Carry
Summary of Operating Loss Carryforwards (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | $ 554 | |
State Operating Loss Carryforwards | 28,728 | |
Foreign Operating Loss Carryforwards | $ 4,296 | |
2020 | ||
Operating Loss Carryforwards [Line Items] | ||
State Operating Loss Carryforwards | 269 | |
2021 | ||
Operating Loss Carryforwards [Line Items] | ||
State Operating Loss Carryforwards | 2,141 | |
2022 | ||
Operating Loss Carryforwards [Line Items] | ||
State Operating Loss Carryforwards | 4,934 | |
2023 | ||
Operating Loss Carryforwards [Line Items] | ||
State Operating Loss Carryforwards | 4,342 | |
2024 | ||
Operating Loss Carryforwards [Line Items] | ||
State Operating Loss Carryforwards | 1,498 | |
2025-2029 | ||
Operating Loss Carryforwards [Line Items] | ||
State Operating Loss Carryforwards | 7,673 | |
2030-2034 | ||
Operating Loss Carryforwards [Line Items] | ||
State Operating Loss Carryforwards | 4,329 | |
Foreign Operating Loss Carryforwards | 15 | |
Beyond 2034 | ||
Operating Loss Carryforwards [Line Items] | ||
U.S. Federal Operating Loss Carryforwards | 554 | |
State Operating Loss Carryforwards | 2,185 | |
Foreign Operating Loss Carryforwards | 74 | |
Non-Expiring | ||
Operating Loss Carryforwards [Line Items] | ||
State Operating Loss Carryforwards | $ 1,357 | |
Foreign Operating Loss Carryforwards | $ 4,207 |
Schedule of Unrecognized Tax Be
Schedule of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||
Beginning balance, as of January 1 | $ 43,395 | $ 36,263 | $ 38,958 |
Tax positions for current year, Additions | 1,322 | 4,716 | 8,208 |
Tax positions for prior years, Additions | 8,043 | 2,626 | 199 |
Tax positions for prior years, Reductions | (31,397) | (153) | (10,573) |
Expiration of statutes, Reductions | (183) | (57) | (325) |
Settlements with tax authorities, Reductions | (204) | ||
Ending balance as of December 31 | $ 21,180 | $ 43,395 | $ 36,263 |
Operating Segment, Geographic_3
Operating Segment, Geographic and Significant Customer Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019CustomerSegment | Dec. 31, 2018Customer | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Operating segments | Segment | 4 | ||
Number of customer accounted for more than ten percent of consolidated revenue | Customer | 0 | 0 | |
Consolidated Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Semiconductor Test | Consolidated Revenue | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 10.00% | 13.00% | 22.00% |
Semiconductor Test | Customer 1 | Consolidated Revenue | Revenue from Rights Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 11.00% | 4.00% | |
Semiconductor Test | Customer 2 | Consolidated Revenue | Revenue from Rights Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 13.00% |
Schedule of Segment Information
Schedule of Segment Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [2] | $ 2,294,965 | [1] | $ 2,100,802 | [1] | $ 2,136,606 |
Income (loss) before taxes | [3],[4] | 525,772 | 467,801 | 524,411 | ||
Total assets | [5] | 2,787,014 | 2,706,606 | 3,109,545 | ||
Property additions | 134,642 | 114,379 | 105,375 | |||
Depreciation and amortization expense | 120,655 | 113,224 | 108,075 | |||
Semiconductor Test | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,552,571 | 1,492,417 | 1,662,549 | |||
Income (loss) before taxes | [3],[4] | 416,973 | 397,645 | 491,361 | ||
Total assets | [5] | 784,808 | 669,452 | 597,480 | ||
Property additions | 112,145 | 94,496 | 87,920 | |||
Depreciation and amortization expense | 59,197 | 58,095 | 58,901 | |||
System Test | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 287,455 | [1] | 216,132 | [1] | 192,135 | |
Income (loss) before taxes | [3],[4] | 93,543 | 48,857 | 10,305 | ||
Total assets | [5] | 131,428 | 88,098 | 97,018 | ||
Property additions | 3,059 | 3,469 | 5,976 | |||
Depreciation and amortization expense | 5,518 | 6,430 | 6,646 | |||
Industrial Automation | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 298,139 | 261,452 | 170,056 | |||
Income (loss) before taxes | [3],[4] | (5,916) | 7,670 | 8,763 | ||
Total assets | [5] | 671,559 | 607,502 | 368,037 | ||
Property additions | 9,076 | 11,188 | 7,044 | |||
Depreciation and amortization expense | 40,904 | 36,755 | 25,711 | |||
Wireless Test | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 157,315 | [1] | 132,006 | [1] | 111,866 | |
Income (loss) before taxes | [3],[4] | 35,585 | 29,052 | 17,350 | ||
Total assets | [5] | 97,299 | 77,570 | 59,912 | ||
Property additions | 10,362 | 5,226 | 4,435 | |||
Depreciation and amortization expense | 5,365 | 5,328 | 5,392 | |||
Corporate And Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | (515) | (1,205) | ||||
Income (loss) before taxes | [3],[4] | (14,413) | (15,423) | (3,368) | ||
Total assets | [5] | 1,101,920 | 1,263,984 | 1,987,098 | ||
Depreciation and amortization expense | $ 9,671 | $ 6,616 | $ 11,425 | |||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | |||||
[2] | Revenues attributable to a country are based on location of customer site. | |||||
[3] | Included in Corporate and Other are: contingent consideration adjustments, investment impairment, pension and postretirement plans actuarial gains (losses), severance charges, property insurance recovery related to the Japan earthquake, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations and acquisition related charges. | |||||
[4] | Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. In 2016, loss before income taxes in Wireless Test also included charges related to goodwill and acquired intangible assets impairment. | |||||
[5] | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||||
Acquisition related costs | $ 200 | $ 800 | $ 500 | $ 1,300 | $ 500 | $ 800 | $ 800 | $ 2,500 | ||||
Restructuring and other-employee severance | (2,088) | $ (6,500) | (10,404) | 5,112 | 11,446 | $ 1,710 | 2,389 | (313) | $ (13,880) | $ 15,232 | $ 9,362 | |
Contingent consideration adjustment | (19,257) | 987 | 7,820 | |||||||||
Investment of impairment charge | 15,000 | 15,000 | ||||||||||
Universal Robots (UR) | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contingent consideration adjustment | $ 11,700 | $ 3,000 | 7,400 | $ 5,000 | $ 3,500 | 3,800 | 16,700 | |||||
Mobile Industrial Robots (MiR) | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contingent consideration adjustment | 5,800 | $ 17,700 | 17,700 | |||||||||
Autoguide LLC [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contingent consideration adjustment | $ 3,000 | 3,000 | ||||||||||
Semiconductor Test | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Acquisition related costs | 2,500 | 4,500 | ||||||||||
Cost of revenues-inventory charge | 1,277 | 8,429 | 1,779 | |||||||||
Restructuring and other-employee severance | 8,731 | |||||||||||
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 | 6,822 | 4,606 | ||||||||||
System Test | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Cost of revenues-inventory charge | 2,000 | 1,175 | 1,918 | |||||||||
Industrial Automation | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Cost of revenues-inventory charge | 508 | 680 | ||||||||||
Restructuring and other-employee severance | 796 | 0 | 1,414 | |||||||||
Industrial Automation | Restructuring and other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Acquisition related costs | 741 | 1,163 | ||||||||||
Industrial Automation | Severance And Benefits | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and other-employee severance | 0 | |||||||||||
Wireless Test | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Cost of revenues-inventory charge | 4,005 | 2,565 | 2,190 | |||||||||
Restructuring and other-lease impairment | 972 | |||||||||||
Corporate And Eliminations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Selling and administrative – equity modification charge | 2,108 | |||||||||||
Corporate And Eliminations | Restructuring and other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Acquisition related costs | 1,765 | 3,422 | ||||||||||
Property insurance recovery | (5,064) | |||||||||||
Investment of impairment charge | 15,000 | |||||||||||
Corporate And Eliminations | Universal Robots (UR) | Restructuring and other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contingent consideration adjustment | (16,679) | $ 7,820 | ||||||||||
Corporate And Eliminations | Mobile Industrial Robots (MiR) | Restructuring and other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contingent consideration adjustment | (22,199) | $ 17,666 | ||||||||||
Corporate And Eliminations | Autoguide LLC [Member] | Restructuring and other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contingent consideration adjustment | $ 2,976 |
Schedule of Revenues by Country
Schedule of Revenues by Country (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | $ 2,294,965 | [1] | $ 2,100,802 | [1] | $ 2,136,606 |
CHINA | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 514,327 | 348,942 | 260,451 | ||
TAIWAN | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 485,681 | 516,322 | 687,031 | ||
UNITED STATES | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 333,059 | 282,869 | 252,516 | ||
KOREA | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 239,504 | 163,224 | 206,819 | ||
Europe | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 219,015 | 223,207 | 163,715 | ||
JAPAN | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 175,322 | 158,281 | 169,093 | ||
THAILAND | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 87,503 | 59,184 | 29,566 | ||
SINGAPORE | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 84,111 | 108,618 | 101,085 | ||
MALAYSIA | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 58,200 | 122,797 | 124,048 | ||
PHILIPPINES | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | 54,560 | 77,996 | 105,850 | ||
Rest Of The World | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue from unaffiliated customers | [2] | $ 43,683 | $ 39,362 | $ 36,432 | ||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | |||||
[2] | Revenues attributable to a country are based on location of customer site. |
Schedule of Long-Lived Assets b
Schedule of Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 377,755 | $ 279,821 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 252,812 | 209,368 | |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | $ 124,943 | $ 70,453 |
[1] | As of December 31, 2019 and 2018, long-lived assets attributable to Singapore were $__ million and $19.4 million, respectively. |
Schedule of Long-Lived Assets_2
Schedule of Long-Lived Assets by Geographic Area (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 377,755 | $ 279,821 |
SINGAPORE | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 35,200 | $ 19,400 |
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. 01, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Stock Repurchase Programs [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 500,000,000 | ||||||
Cumulative repurchases, value | $ 491,202,000 | $ 832,356,000 | $ 200,304,000 | ||||
Cumulative repurchases, shares | 32.5 | 21.6 | 5.8 | 1 | 10.9 | ||
Cumulative repurchases, value | $ 1,323,000,000 | $ 823,500,000 | $ 200,000,000 | $ 250,000,000 | |||
Common stock average price | $ 40.68 | $ 38.06 | $ 34.30 | $ 45.89 | |||
Maximum [Member] | Scenario, Plan [Member] | |||||||
Stock Repurchase Programs [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 1,500,000,000 | ||||||
Cumulative repurchases, value | $ 500,000,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Feb. 28, 2020 | Jun. 03, 2019 | |
Subsequent Event [Line Items] | |||||
Cash Dividends payable, amount per share | $ 0.10 | ||||
Cash Dividends payable, date to be paid | Mar. 20, 2020 | ||||
Cash Dividends payable, record date | Feb. 21, 2020 | ||||
Investment impairment | $ 15,000,000 | $ 15,000,000 | |||
Real War In [Member] | |||||
Subsequent Event [Line Items] | |||||
Equity method investments | $ 0 | $ 0 | $ 15,000,000 | ||
Subsequent Event | Real War In [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayment of debt demanded | $ 25,000,000 |
Consolidated Quarterly Statemen
Consolidated Quarterly Statements of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 29, 2019 | [3] | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||
Total revenues | $ 654,650 | [1],[2] | $ 582,038 | $ 564,178 | [4] | $ 494,099 | [5] | $ 519,558 | [6],[7] | $ 566,848 | [8] | $ 526,929 | [9] | $ 487,467 | [10] | |||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 271,412 | [1],[2] | 237,000 | 240,260 | [4] | 206,464 | [5] | 210,023 | [6],[7] | 233,155 | [8] | 219,595 | [9] | 217,635 | [10] | $ 955,136 | $ 880,408 | $ 915,153 | ||
Gross profit | 383,238 | [1],[2] | 345,038 | 323,918 | [4] | 287,635 | [5] | 309,535 | [6],[7] | 333,693 | [8] | 307,334 | [9] | 269,832 | [10] | 1,339,829 | 1,220,394 | 1,221,453 | ||
Selling and administrative | 117,092 | [1],[2] | 109,166 | 108,811 | [4] | 102,013 | [5] | 100,552 | [6],[7] | 100,202 | [8] | 99,410 | [9] | 90,505 | [10] | 437,084 | 390,669 | 348,913 | ||
Engineering and development | 86,794 | [1],[2] | 77,804 | 81,434 | [4] | 76,791 | [5] | 74,706 | [6],[7] | 77,049 | [8] | 75,342 | [9] | 74,408 | [10] | 322,824 | 301,505 | 307,305 | ||
Acquired intangible assets amortization | 9,784 | [1],[2] | 9,647 | 10,083 | [4] | 10,634 | [5] | 10,558 | [6],[7] | 11,142 | [8] | 9,793 | [9] | 7,698 | [10] | 40,147 | 39,191 | 30,530 | ||
Restructuring and other | (2,088) | $ (6,500) | (10,404) | 5,112 | 11,446 | 1,710 | 2,389 | (313) | (13,880) | 15,232 | 9,362 | |||||||||
Total operating expenses | 211,582 | [1],[2] | 190,117 | 189,924 | [4] | 194,550 | [5] | 197,262 | [6],[7] | 190,103 | [8] | 186,934 | [9] | 172,298 | [10] | 786,175 | 746,597 | 696,110 | ||
Income from operations | 171,656 | [1],[2] | 154,921 | 133,994 | [4] | 93,085 | [5] | 112,273 | [6],[7] | 143,590 | [8] | 120,400 | [9] | 97,534 | [10] | 553,654 | 473,797 | 525,343 | ||
Interest income | (6,145) | [1],[2] | (5,159) | (5,430) | [4] | (8,052) | [5] | (9,083) | [6],[7] | (6,213) | [8] | (5,427) | [9] | (5,981) | [10] | (24,785) | (26,704) | (17,805) | ||
Interest expense | 5,950 | [1],[2] | 5,682 | 5,800 | [4] | 5,713 | [5] | 13,182 | [6],[7] | 5,557 | [8] | 5,639 | [9] | 6,890 | [10] | 23,145 | 31,269 | 21,663 | ||
Other (income) expense, net | 22,965 | [1],[2] | 2,665 | 2,447 | [4] | 1,445 | [5] | (2,954) | [6],[7] | 3,405 | [8] | 176 | [9] | 805 | [10] | 29,522 | 1,431 | (2,927) | ||
Income before income taxes | 148,886 | [1],[2] | 151,733 | 131,177 | [4] | 93,979 | [5] | 111,128 | [6],[7] | 140,841 | [8] | 120,012 | [9] | 95,820 | [10] | 525,772 | 467,801 | 524,412 | ||
Income tax (benefit) provision | 23,811 | [1],[2] | 15,873 | 33,780 | [4] | (15,159) | [5] | (32,662) | [6],[7] | 20,863 | [8] | 18,975 | [9] | 8,846 | [10] | 58,304 | 16,022 | 266,720 | ||
Net income | $ 125,075 | [1],[2] | $ 135,860 | $ 97,397 | [4] | $ 109,138 | [5] | $ 143,790 | [6],[7] | $ 119,978 | [8] | $ 101,037 | [9] | $ 86,974 | [10] | $ 467,468 | $ 451,779 | $ 257,692 | ||
Net income per common share—basic | $ 0.75 | [1],[2] | $ 0.80 | $ 0.57 | [4] | $ 0.63 | [5] | $ 0.80 | [6],[7] | $ 0.65 | [8] | $ 0.53 | [9] | $ 0.45 | [10] | $ 2.74 | $ 2.41 | $ 1.30 | ||
Net income per common share—diluted | 0.69 | [1],[2] | 0.75 | 0.55 | [4] | 0.62 | [5] | 0.79 | [6],[7] | 0.63 | [8] | 0.52 | [9] | 0.43 | [10] | 2.60 | 2.35 | 1.28 | ||
Cash dividend declared per common share | $ 0.09 | [1],[2] | $ 0.09 | $ 0.09 | [4] | $ 0.09 | [5] | $ 0.09 | [6],[7] | $ 0.09 | [8] | $ 0.09 | [9] | $ 0.09 | [10] | $ 0.36 | $ 0.36 | $ 0.28 | ||
Product [Member] | ||||||||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||
Total revenues | $ 548,552 | [1],[2] | $ 488,170 | $ 457,511 | [4] | $ 393,442 | [5] | $ 420,652 | [6],[7] | $ 470,994 | [8] | $ 434,051 | [9] | $ 403,925 | [10] | |||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 226,184 | [1],[2] | 197,196 | 193,299 | [4] | 165,368 | [5] | 170,064 | [6],[7] | 195,339 | [8] | 180,777 | [9] | 180,958 | [10] | $ 782,047 | $ 727,138 | $ 760,967 | ||
Service [Member] | ||||||||||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||
Total revenues | 106,098 | [1],[2] | 93,868 | 106,667 | [4] | 100,657 | [5] | 98,906 | [6],[7] | 95,854 | [8] | 92,878 | [9] | 83,542 | [10] | |||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 45,228 | [1],[2] | $ 39,804 | $ 46,961 | [4] | $ 41,096 | [5] | $ 39,959 | [6],[7] | $ 37,816 | [8] | $ 38,818 | [9] | $ 36,677 | [10] | $ 173,089 | $ 153,270 | $ 154,186 | ||
[1] | Restructuring and other includes a $5.8 million gain for the decrease in the fair value adjustment to the MiR acquisition contingent consideration, partially offset by a $3.0 million fair value adjustment to increase the AutoGuide acquisition contingent consideration, $0.5 million of employee severance charges and $0.2 million of acquisition related expenses and compensation. | |||||||||||||||||||
[2] | Teradyne recorded pension and post retirement net actuarial losses of $7.7 million for the fourth quarter in 2019. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[3] | Restructuring and other includes a $7.8 million gain for the decrease in the fair value of MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | |||||||||||||||||||
[4] | Restructuring and other includes a $11.7 million gain for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $0.8 million of employee severance charges and $0.5 million of acquisition related expenses and compensation. | |||||||||||||||||||
[5] | Restructuring and other includes a $3.0 million fair value adjustment to increase the MiR acquisition contingent consideration, $1.3 million of acquisition related expenses and compensation and $0.8 million of employee severance charges. | |||||||||||||||||||
[6] | 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. | |||||||||||||||||||
[7] | Teradyne recorded pension and post retirement net actuarial gains of $3.5 million for the fourth quarter in 2018. See Note B: “Accounting Policies” for a discussion of Teradyne’s accounting policy. | |||||||||||||||||||
[8] | 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. | |||||||||||||||||||
[9] | 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. | |||||||||||||||||||
[10] | 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 $2.4 million of employee severance charges. |
Consolidated Quarterly Statem_2
Consolidated Quarterly Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information [Line Items] | ||||||||||||
Contingent consideration fair value adjustment | $ (19,257) | $ 987 | $ 7,820 | |||||||||
Severance benefit and charges | $ 500 | $ 7,800 | $ 800 | $ 800 | $ 800 | $ 3,900 | $ 2,400 | |||||
Acquisition related expense and compensation | 200 | 800 | 500 | 1,300 | 500 | $ 800 | 800 | 2,500 | ||||
Pension and post retirement net actuarial gains (losses) | (7,700) | 3,500 | ||||||||||
Investment impairment | 15,000 | 15,000 | ||||||||||
Universal Robots (UR) | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Contingent consideration fair value adjustment | $ 11,700 | $ 3,000 | 7,400 | $ 5,000 | $ 3,500 | 3,800 | 16,700 | |||||
Severance benefit and charges | $ 1,700 | $ 500 | $ 800 | |||||||||
Mobile Industrial Robots (MiR) | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Contingent consideration fair value adjustment | 5,800 | $ 17,700 | $ 17,700 | |||||||||
Autoguide LLC [Member] | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Contingent consideration fair value adjustment | $ 3,000 | $ 3,000 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 1,673 | $ 2,219 | $ 2,356 | |
Additions Charged to Cost and Expenses | 87 | 4 | ||
Other | 28 | 20 | ||
Deductions | 52 | 566 | 141 | |
Balance at End of Period | $ 1,673 | 1,736 | 1,673 | 2,219 |
Inventory Reserve | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 100,779 | 102,896 | 116,016 | |
Additions Charged to Cost and Expenses | 15,244 | 11,242 | 8,844 | |
Other | (85) | 368 | (126) | |
Deductions | 13,727 | 21,838 | ||
Balance at End of Period | 100,779 | 103,556 | 100,779 | 102,896 |
Valuation Allowance of Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 63,919 | 69,852 | 63,919 | 48,369 |
Additions Charged to Cost and Expenses | 7,325 | 6,333 | 15,571 | |
Deductions | 400 | 21 | ||
Balance at End of Period | $ 69,852 | $ 77,177 | $ 69,852 | $ 63,919 |