Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 02, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2022 | |
Entity Central Index Key | 0000097210 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Oct. 02, 2022 | |
Entity Registrant Name | TERADYNE, INC | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | TER | |
Document Quarterly 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 | 155,756,146 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 | |
Current assets: | |||
Cash and cash equivalents | $ 710,746 | $ 1,122,199 | |
Marketable securities | 65,310 | 244,231 | |
Accounts receivable, less allowance for credit losses of $1,865 and $2,012 at October 2, 2022 and December 31, 2021, respectively | 530,349 | 550,749 | |
Inventories, net | 310,754 | 243,330 | |
Prepayments | 502,678 | 406,266 | |
Other current assets | 7,717 | 9,452 | |
Total current assets | 2,127,554 | 2,576,227 | |
Property, plant and equipment, net | 415,181 | 387,240 | |
Operating lease right-of-use assets, net | 61,430 | 68,807 | |
Marketable securities | 111,039 | 133,858 | |
Deferred tax assets | 130,207 | 102,428 | |
Retirement plans assets | 13,805 | 15,110 | |
Other assets | 29,311 | 24,096 | |
Acquired intangible assets, net | 55,580 | 75,635 | |
Goodwill | 375,799 | 426,024 | |
Total assets | 3,319,906 | [1] | 3,809,425 |
Current liabilities: | |||
Accounts payable | 167,975 | 153,133 | |
Accrued employees' compensation and withholdings | 168,102 | 253,667 | |
Deferred revenue and customer advances | 143,591 | 146,185 | |
Other accrued liabilities | 126,457 | 124,187 | |
Operating lease liabilities | 17,079 | 19,977 | |
Income taxes payable | 64,141 | 88,789 | |
Current debt | 14,596 | 19,182 | |
Total current liabilities | 701,941 | 805,120 | |
Retirement plans liabilities | 137,317 | 151,141 | |
Long-term deferred revenue and customer advances | 48,488 | 54,921 | |
Long-term other accrued liabilities | 15,506 | 15,497 | |
Deferred tax liabilities | 1,327 | 6,327 | |
Long-term operating lease liabilities | 51,872 | 56,178 | |
Long-term incomes taxes payable | 59,135 | 67,041 | |
Debt | 50,195 | 89,244 | |
Total liabilities | 1,065,781 | 1,245,469 | |
Commitments and contingencies (Note Q) | |||
Mezzanine equity: | |||
Convertible common shares | 1,512 | ||
SHAREHOLDERS' EQUITY | |||
Common stock, $0.125 par value, 1,000,000 shares authorized; 157,880 and 162,251 shares issued and outstanding at July 3, 2022 and December 31, 2021, respectively | 19,473 | 20,281 | |
Additional paid-in capital | 1,746,779 | 1,811,545 | |
Accumulated other comprehensive loss | (84,779) | (5,948) | |
Retained earnings | 572,652 | 736,566 | |
Total shareholders' equity | 2,254,125 | 2,562,444 | |
Total liabilities and shareholders' equity | $ 3,319,906 | $ 3,809,425 | |
[1]Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Accounts receivable, less allowance for credit losses | $ 1,865 | $ 2,012 |
Common stock, par value | $ 0.125 | $ 0.125 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 155,782 | 162,251 |
Common stock, shares outstanding | 155,782 | 162,251 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |||||
Revenues: | ||||||||
Total revenues | $ 827,073 | [1] | $ 950,501 | [1] | $ 2,423,209 | [2] | $ 2,817,835 | |
Cost of revenues: | ||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 341,694 | 379,500 | 976,508 | 1,138,227 | ||||
Gross profit | 485,379 | 571,001 | 1,446,701 | 1,679,608 | ||||
Operating expenses: | ||||||||
Selling and administrative | 135,632 | 134,829 | 415,351 | 404,812 | ||||
Engineering and development | 111,715 | 107,220 | 331,781 | 317,644 | ||||
Acquired intangible assets amortization | 4,729 | 5,355 | 14,663 | 16,293 | ||||
Restructuring and other | 1,796 | 1,197 | 19,554 | (3,426) | ||||
Total operating expenses | 253,872 | 248,601 | 781,349 | 735,323 | ||||
Income from operations | 231,507 | 322,400 | 665,352 | 944,285 | ||||
Non-operating (income) expense: | ||||||||
Interest income | (1,318) | (626) | (2,972) | (2,066) | ||||
Interest expense | 779 | 3,785 | 2,704 | 15,354 | ||||
Other (income) expense, net | 5,849 | 21,486 | 20,472 | 25,223 | ||||
Income before income taxes | [3],[4] | 226,197 | 297,755 | 645,148 | 905,774 | |||
Income tax provision | 42,712 | 41,037 | 101,948 | 115,225 | ||||
Net income | $ 183,485 | $ 256,718 | $ 543,200 | $ 790,549 | ||||
Net income per common share: | ||||||||
Basic | $ 1.17 | $ 1.56 | $ 3.41 | $ 4.77 | ||||
Diluted | $ 1.1 | $ 1.41 | $ 3.17 | $ 4.26 | ||||
Weighted average common shares—basic | 156,364 | 164,583 | 159,325 | 165,690 | ||||
Weighted average common shares—diluted | 166,733 | 181,987 | 171,156 | 185,492 | ||||
Product [Member] | ||||||||
Revenues: | ||||||||
Total revenues | $ 676,252 | $ 825,448 | $ 2,000,081 | $ 2,437,901 | ||||
Cost of revenues: | ||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 277,539 | 333,229 | 795,229 | 989,859 | ||||
Service [Member] | ||||||||
Revenues: | ||||||||
Total revenues | 150,821 | 125,053 | 423,128 | 379,934 | ||||
Cost of revenues: | ||||||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 64,155 | $ 46,271 | $ 181,279 | $ 148,368 | ||||
[1]Includes $3.8 million and $3.8 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”[2]Includes $11.1 million and $11.1 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers.”[3]Included in Corporate and Eliminations are: legal and environmental fees, contingent consideration fair value adjustments, interest income, interest expense, severance charges, net foreign exchange gains (losses), acquisition related charges and compensation, pension, intercompany eliminations and for the three and nine months ended October 3, 2021, loss on convertible debt conversions.[4]Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and, for the three and nine months ended October 3, 2021, loss on convertible debt conversions. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Net income | $ 183,485 | $ 256,718 | $ 543,200 | $ 790,549 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment, net of tax of $0, $0, $0, $0, respectively | (28,951) | (10,698) | (66,258) | (26,672) |
Available-for-sale marketable securities: | ||||
Unrealized losses arising during period, net of tax of $(997), $(44), $(3,570), $(516), respectively | (3,581) | (176) | (13,491) | (1,952) |
Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $(11), $(65), $(48), $(186), respectively | 177 | (229) | 386 | (670) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | (3,404) | (405) | (13,105) | (2,622) |
Defined benefit post-retirement plan: | ||||
Amortization of prior service credit, net of tax of $0, $0, $(2), $(2), respectively | (2) | (2) | (5) | (5) |
Cash flow hedges: | ||||
Unrealized gains arising during period, net of tax of $0, $0, $0, $0, respectively | 537 | 0 | 537 | 0 |
Other comprehensive (loss) income | (31,820) | (11,105) | (78,831) | (29,299) |
Comprehensive income | $ 151,665 | $ 245,613 | $ 464,369 | $ 761,250 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Foreign currency translation adjustment, net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized (losses) gains on marketable securities arising during period | 997 | 44 | 3,570 | 516 |
Reclassification adjustment for gains included in net income | 11 | 65 | 48 | 186 |
Amortization of prior service credit, net of tax | 0 | 0 | 2 | 2 |
Cash flow hedges Unrealized gains | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Convertible Common Shares | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings (Accumulated Deficit) |
Balance at Dec. 31, 2020 | $ 2,207,018 | $ 20,765 | $ 1,765,323 | $ 33,516 | $ 387,414 | |
Balance, Shares at Dec. 31, 2020 | 3,787 | 166,123 | ||||
Net issuance of common stock under stock-based plans | 64 | $ 112 | (48) | |||
Net issuance of common stock under stock-based plans (in shares) | 893 | |||||
Stock-based compensation expense | 35,915 | 35,915 | ||||
Repurchase of common stock | $ (416,180) | $ (411) | (415,769) | |||
Repurchase of common stock (in shares) | 3,300 | (3,288) | ||||
Cash dividends | $ (49,757) | (49,757) | ||||
Settlements of convertible notes | 841,202 | $ 897 | 840,305 | |||
Settlement of convertible debt (in shares) | 7,178 | |||||
Exercise of convertible notes hedge call options | (842,925) | $ (897) | (842,028) | |||
Exercise of convertible notes hedge call options (in shares) | (7,178) | |||||
Convertible common shares | 906 | 906 | ||||
Convertible common shares (in shares) | (906) | |||||
Net income | 790,549 | 790,549 | ||||
Other comprehensive loss | (29,299) | (29,299) | ||||
Balance at Oct. 03, 2021 | 2,537,493 | $ 20,466 | 1,800,373 | 4,217 | 712,437 | |
Balance, Shares at Oct. 03, 2021 | 2,881 | 163,728 | ||||
Balance at Jul. 04, 2021 | 2,493,256 | $ 20,680 | 1,772,302 | 15,322 | 684,952 | |
Balance, Shares at Jul. 04, 2021 | 21,386 | 165,444 | ||||
Net issuance of common stock under stock-based plans | (258) | $ 1 | (259) | |||
Net issuance of common stock under stock-based plans (in shares) | 8 | |||||
Stock-based compensation expense | 10,042 | 10,042 | ||||
Repurchase of common stock | (212,996) | $ (215) | (212,781) | |||
Repurchase of common stock (in shares) | (1,724) | |||||
Cash dividends | (16,452) | (16,452) | ||||
Settlements of convertible notes | 637,497 | $ 699 | 636,798 | |||
Settlement of convertible debt (in shares) | 5,589 | |||||
Exercise of convertible notes hedge call options | (637,714) | $ (699) | (637,015) | |||
Exercise of convertible notes hedge call options (in shares) | (5,589) | |||||
Convertible common shares | 18,505 | 18,505 | ||||
Convertible common shares (in shares) | (18,505) | |||||
Net income | 256,718 | 256,718 | ||||
Other comprehensive loss | (11,105) | (11,105) | ||||
Balance at Oct. 03, 2021 | 2,537,493 | $ 20,466 | 1,800,373 | 4,217 | 712,437 | |
Balance, Shares at Oct. 03, 2021 | 2,881 | 163,728 | ||||
Balance at Dec. 31, 2021 | 2,562,444 | $ 20,281 | 1,811,545 | (5,948) | 736,566 | |
Balance, Shares at Dec. 31, 2021 | 1,512 | 162,251 | ||||
Net issuance of common stock under stock-based plans | (4,192) | $ 95 | (4,287) | |||
Net issuance of common stock under stock-based plans (in shares) | 754 | |||||
Stock-based compensation expense | 39,056 | 39,056 | ||||
Repurchase of common stock | $ (750,000) | $ (903) | (749,097) | |||
Repurchase of common stock (in shares) | 7,200 | (7,223) | ||||
Cash dividends | $ (52,617) | (52,617) | ||||
Settlements of convertible notes | (213) | $ 151 | (364) | |||
Settlement of convertible debt (in shares) | 1,211 | |||||
Exercise of convertible notes hedge call options | 0 | $ (151) | 151 | |||
Exercise of convertible notes hedge call options (in shares) | (1,211) | |||||
Convertible common shares | 1,512 | |||||
Convertible common shares (in shares) | (1,512) | |||||
Cumulative-effect of change in accounting principle related to convertible debt | (6,234) | (100,834) | 94,600 | |||
Net income | 543,200 | 543,200 | ||||
Other comprehensive loss | (78,831) | (78,831) | ||||
Balance at Oct. 02, 2022 | 2,254,125 | $ 19,473 | 1,746,779 | (84,779) | 572,652 | |
Balance, Shares at Oct. 02, 2022 | 0 | 155,782 | ||||
Balance at Jul. 03, 2022 | 2,298,596 | $ 19,735 | 1,721,586 | (52,959) | 610,234 | |
Balance, Shares at Jul. 03, 2022 | 0 | 157,880 | ||||
Net issuance of common stock under stock-based plans | 12,052 | $ 21 | 12,031 | |||
Net issuance of common stock under stock-based plans (in shares) | 169 | |||||
Stock-based compensation expense | 13,194 | 13,194 | ||||
Repurchase of common stock | (204,201) | $ (283) | (203,918) | |||
Repurchase of common stock (in shares) | (2,267) | |||||
Cash dividends | (17,149) | (17,149) | ||||
Settlements of convertible notes | (32) | $ 26 | (58) | |||
Settlement of convertible debt (in shares) | 207 | |||||
Exercise of convertible notes hedge call options | 0 | $ (26) | 26 | |||
Exercise of convertible notes hedge call options (in shares) | (207) | |||||
Net income | 183,485 | 183,485 | ||||
Other comprehensive loss | (31,820) | (31,820) | ||||
Balance at Oct. 02, 2022 | $ 2,254,125 | $ 19,473 | $ 1,746,779 | $ (84,779) | $ 572,652 | |
Balance, Shares at Oct. 02, 2022 | 0 | 155,782 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES AND SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.11 | $ 0.1 | $ 0.33 | $ 0.3 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 543,200 | $ 790,549 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||
Depreciation | 67,902 | 67,866 |
Stock-based compensation | 37,420 | 34,649 |
Provision for excess and obsolete inventory | 18,929 | 11,775 |
Amortization | 15,012 | 27,626 |
Losses (gains) on investments | 11,436 | (4,750) |
Deferred taxes | (28,373) | (10,732) |
Contingent consideration fair value adjustments | 0 | (7,227) |
Loss on convertible debt conversions | 0 | 25,397 |
Retirement plan actuarial (gains) losses | 0 | (627) |
Other | 740 | 243 |
Changes in operating assets and liabilities, net of businesses acquired: | ||
Accounts receivable | 4,248 | (103,299) |
Inventories | (68,817) | 21,943 |
Prepayments and other assets | (94,331) | (138,564) |
Accounts payable and other liabilities | (71,682) | 65,064 |
Deferred revenue and customer advances | (5,896) | 8,699 |
Retirement plans contributions | (3,897) | (4,123) |
Income taxes | (31,370) | (17,406) |
Net cash provided by operating activities | 394,521 | 767,083 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (128,672) | (103,162) |
Purchases of marketable securities | (267,175) | (509,470) |
Proceeds from sales of marketable securities | 259,200 | 209,437 |
Proceeds from maturities of marketable securities | 182,092 | 571,277 |
Purchase of investment | 0 | (12,000) |
Net cash provided by investing activities | 45,445 | 156,082 |
Cash flows from financing activities: | ||
Issuance of common stock under stock purchase and stock option plans | 28,733 | 32,590 |
Repurchase of common stock | (750,000) | (406,180) |
Payments related to net settlement of employee stock compensation awards | (32,987) | (32,045) |
Payments of convertible debt principal | (52,005) | (301,997) |
Dividend payments | (52,578) | (49,711) |
Net cash used for financing activities | (858,837) | (757,343) |
Effects of exchange rate changes on cash and cash equivalents | 7,418 | (489) |
(Decrease) increase in cash and cash equivalents | (411,453) | 165,333 |
Cash and cash equivalents at beginning of period | 1,122,199 | 914,121 |
Cash and cash equivalents at end of period | 710,746 | 1,079,454 |
Non-cash investing activities: | ||
Capital expenditures incurred but not yet paid | $ 2,349 | $ 2,286 |
The Company
The Company | 9 Months Ended |
Oct. 02, 2022 | |
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 many industries including 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, logistics and light industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Teradyne’s automatic test equipment and industrial automation products and services include: • semiconductor test (“Semiconductor Test”) systems; • storage and system level test (“Storage Test”) systems, defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); • wireless test (“Wireless Test”) systems; and • industrial automation (“Industrial Automation”) products. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Oct. 02, 2022 | |
Accounting Policies | B. ACCOUNTING POLICIES Basis of Presentation The consolidated interim financial statements include the accounts of Teradyne and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair statement of such interim financial statements. Certain prior year amounts may have been reclassified to conform to the current year presentation. The December 31, 2021 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by United States of America generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form 10-K, Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent liabilities. On an on-going COVID-19 10-Q. Convertible Debt Teradyne adopted Accounting Standards Update (“ASU”) ASU 2020-06 “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” . 2020-06, if-converted paid-in |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Oct. 02, 2022 | |
Recently Issued Accounting Pronouncements | C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS For the nine months ended October 2, 2022, there were no |
Investment In Other Company
Investment In Other Company | 9 Months Ended |
Oct. 02, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment In Other Company | D. INVESTMENT IN OTHER COMPANY On June 1, 2021, Teradyne invested $12.0 million in MachineMetrics, Inc. (“MachineMetrics”), a private company that develops and sells products to improve manufacturing performance through automated machine data collection, alerting, and analytics. Teradyne’s investment in MachineMetrics aligns with its strategy of providing and investing in leading edge products for automating industrial production processes in growing markets. 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. At October 2, 2022, the value of the investment was $12.0 million, and there were no changes during the three and nine months ended October 2, 2022. |
Revenue
Revenue | 9 Months Ended |
Oct. 02, 2022 | |
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. During the three months ended October 2, 2022 Teradyne combined Mobile Industrial Robots and AutoGuide into one business unit. Revenues for all periods shown below have been combined accordingly. Semiconductor Test Industrial System on-a-Chip Memory System Universal Mobile Wireless Test Corporate and Eliminations Total (in thousands) For the Three Months Ended October 2, 2022 (1) Timing of Revenue Recognition Point in Time $ 383,801 $ 117,943 $ 93,248 $ 71,300 $ 15,025 $ 42,885 $ — $ 724,202 Over Time 66,614 7,346 22,906 2,062 680 3,263 — 102,871 Total $ 450,415 $ 125,289 $ 116,154 $ 73,362 $ 15,705 $ 46,148 $ — $ 827,073 Geographical Market Asia Pacific $ 399,323 $ 122,839 $ 73,768 $ 18,850 $ 2,917 $ 34,420 $ — $ 652,117 Americas 31,719 2,129 35,865 26,515 8,877 9,481 — 114,586 Europe, Middle East and Africa 19,373 321 6,521 27,997 3,911 2,247 — 60,370 Total $ 450,415 $ 125,289 $ 116,154 $ 73,362 $ 15,705 $ 46,148 $ — $ 827,073 For the Three Months Ended October 3, 2021 (1) Timing of Revenue Recognition Point in Time $ 508,747 $ 105,454 $ 88,155 $ 76,008 $ 12,577 $ 65,409 $ (63 ) $ 856,287 Over Time 66,270 7,761 14,450 1,742 687 3,304 — 94,214 Total $ 575,017 $ 113,215 $ 102,605 $ 77,750 $ 13,264 $ 68,713 $ (63 ) $ 950,501 Geographical Market Asia Pacific $ 519,886 $ 110,362 $ 62,757 $ 19,654 $ 2,788 $ 54,344 $ — $ 769,791 Americas 29,119 2,281 34,560 23,429 5,321 11,352 (63 ) 105,999 Europe, Middle East and Africa 26,012 572 5,288 34,667 5,155 3,017 — 74,711 Total $ 575,017 $ 113,215 $ 102,605 $ 77,750 $ 13,264 $ 68,713 $ (63 ) $ 950,501 For the Nine Months Ended October 2, 2022 (2) Timing of Revenue Recognition Point in Time $ 1,102,467 $ 281,456 $ 317,230 $ 234,352 $ 49,570 $ 152,079 $ — $ 2,137,154 Over Time 193,996 21,473 52,295 6,268 2,582 9,441 — 286,055 Total $ 1,296,463 $ 302,929 $ 369,525 $ 240,620 $ 52,152 $ 161,520 $ — $ 2,423,209 Geographical Market Asia Pacific $ 1,153,599 $ 294,986 $ 243,135 $ 54,828 $ 10,826 $ 113,472 $ — $ 1,870,846 Americas 90,148 6,727 105,884 81,857 24,670 36,628 — 345,914 Europe, Middle East and Africa 52,716 1,216 20,506 103,935 16,656 11,420 — 206,449 Total $ 1,296,463 $ 302,929 $ 369,525 $ 240,620 $ 52,152 $ 161,520 $ — $ 2,423,209 Semiconductor Test Industrial System on-a-Chip Memory System Universal Mobile Wireless Test Corporate and Eliminations Total (in thousands) For the Nine Months Ended October 3, 2021 (2) Timing of Revenue Recognition Point in Time $ 1,548,895 $ 291,578 $ 295,666 $ 214,427 $ 41,612 $ 154,908 $ (352 ) $ 2,546,734 Over Time 188,022 21,776 44,595 5,001 2,111 9,596 — 271,101 Total $ 1,736,917 $ 313,354 $ 340,261 $ 219,428 $ 43,723 $ 164,504 $ (352 ) $ 2,817,835 Geographical Market Asia Pacific $ 1,618,117 $ 301,562 $ 223,507 $ 55,531 $ 8,674 $ 133,678 $ — $ 2,341,069 Americas 71,562 9,373 98,475 66,390 17,799 24,228 (352 ) 287,475 Europe, Middle East and Africa 47,238 2,419 18,279 97,507 17,250 6,598 — 189,291 Total $ 1,736,917 $ 313,354 $ 340,261 $ 219,428 $ 43,723 $ 164,504 $ (352 ) $ 2,817,835 (1) Includes $1.8 million and $3.8 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.” (2) Includes $5.9 million and $11.1 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers.” Contract Balances During the three and nine months ended October 2, 2022, Teradyne recognized $27.1 million and $87.3 million, respectively, that was previously included within the deferred revenue and customer advances balances at the beginning of the period. During the three and nine months ended October 3, 2021, Teradyne recognized $32.9 million and $82.5 million, respectively, that was previously included within the deferred revenue and customer advances balances. This revenue primarily relates to undelivered hardware, extended warranties, training, application support, and post contract support. Each of these represents a distinct performance obligation. As of October 2, 2022, Teradyne has $1,506 million of unsatisfied performance obligations. Teradyne expects to recognize 88% of the remaining performance obligations in the next 12 months and 12% in 1-3 Deferred revenue and customer advances consist of the following at October 2, 2022 and December 31, 2021, and are included in short and long-term deferred revenue and customer advances on the balance sheet: October 2, December 31, (in thousands) Maintenance, service and training $ 76,310 $ 81,826 Extended warranty 61,920 64,168 Customer advances, undelivered elements and other 53,849 55,112 Total deferred revenue and customer advances $ 192,079 $ 201,106 Accounts Receivable During the three and nine months ended October 2, 2022 and October 3, 2021, Teradyne sold certain trade accounts receivables on a non-recourse |
Inventories
Inventories | 9 Months Ended |
Oct. 02, 2022 | |
Inventories | F. INVENTORIES Inventories, net consisted of the following at October 2, 2022 and December 31, 2021: October 2, December 31, (in thousands) Raw material $ 228,762 $ 155,641 Work-in-process 42,093 37,740 Finished goods 39,899 49,949 $ 310,754 $ 243,330 Inventory reserves at October 2, 2022 and December 31, 2021 were $124.8 million and $114.1 million, respectively. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Oct. 02, 2022 | |
Financial Instruments | G. FINANCIAL INSTRUMENTS Cash Equivalents Teradyne considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents. Marketable Securities Teradyne’s equity and debt mutual funds are classified as Level 1 and available-for-sale During the three and nine months ended October 2, 2022 and October 3, 2021, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in the three and nine months ended October 2, 2022 were $0.1 million and $0.6 million, respectively. Realized gains recorded in the three and nine months ended October 3, 2021 were $0.5 million and $2.6 million, respectively. Realized losses recorded in the three and nine months ended October 2, 2022 were $0.3 million and $0.9 million, respectively. No realized losses were recorded in the three and nine months ended October 3, 2021. Realized gains and losses are included in other (income) expense, net. Unrealized losses on equity securities recorded in the three and nine months ended October 2, 2022 were $2.3 million and $11.1 million, respectively. No unrealized gains on equity securities were recorded in the three and nine months ended October 2, 2022. Unrealized gains on equity securities recorded in the Unrealized gains and losses on available-for-sale The cost of securities sold is based on average cost. 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 October 2, 2022 and December 31, 2021. October 2, 2022 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 $ 464,744 $ — $ — $ 464,744 Cash equivalents 51,243 194,759 — 246,002 Available-for-sale U.S. Treasury securities — 65,354 — 65,354 Corporate debt securities — 45,864 — 45,864 Commercial paper — 17,719 — 17,719 Debt mutual funds 6,441 — — 6,441 U.S. government agency securities — 4,681 — 4,681 Certificates of deposit and time deposits — 1,205 — 1,205 Non-U.S. — 512 — 512 Equity securities: Mutual funds 34,573 — — 34,573 $ 557,001 $ 330,094 $ — $ 887,095 Derivative assets — 546 — 546 Total $ 557,001 $ 330,640 $ — $ 887,641 Liabilities Derivative liabilities $ — $ 1,106 $ — $ 1,106 Total $ — $ 1,106 $ — $ 1,106 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 515,987 $ 194,759 $ — $ 710,746 Marketable securities — 65,310 — 65,310 Long-term marketable securities 41,014 70,025 — 111,039 Prepayments and other current assets — 546 — 546 Total $ 557,001 $ 330,640 $ — $ 887,641 Liabilities . Other cur r $ — $ 1,106 $ — $ 1,106 Total $ — $ 1,106 $ — $ 1,106 December 31, 2021 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 $ 628,740 $ — $ — $ 628,740 Cash equivalents 412,212 81,247 — 493,459 Available-for-sale — Commercial paper — 189,620 — 189,620 U.S. Treasury securities — 77,789 — 77,789 Corporate debt securities — 56,901 — 56,901 Debt mutual funds 7,971 — — 7,971 U.S. government agency securities — 4,610 — 4,610 Certificates of deposit and time deposits — 1,356 — 1,356 Non-U.S. — 589 — 589 Equity securities: Mutual Funds 39,253 — — 39,253 $ 1,088,176 $ 412,112 $ — $ 1,500,288 Derivative assets — 92 — 92 Total $ 1,088,176 $ 412,204 $ — $ 1,500,380 Liabilities Derivative liabilities — 118 — 118 Total $ — $ 118 $ — $ 118 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 1,040,952 $ 81,247 $ — $ 1,122,199 Marketable securities — 244,231 — 244,231 Long-term marketable securities 47,224 86,634 — 133,858 Prepayments and other current assets — 92 — 92 Total $ 1,088,176 $ 412,204 $ — $ 1,500,380 Liabilities Other current liabilities $ — $ 118 $ — $ 118 Total $ — $ 118 $ — $ 118 Changes in the fair value of Level 3 contingent consideration for the nine months ended October 2, 2022, and October 3, 2021 were as follows: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Balance at beginning of period $ — $ — $ — $ 7,227 Fair value adjustment (a) — — — (7,227 ) Balance at end of period $ — $ — $ — $ — (a) In the nine months ended October 3, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. On March 25, 2022, the arbitration claim filed by Industrial Automation LLC, sellers of AutoGuide, against Teradyne alleging non-compliance earn-out earn-out The carrying amounts and fair values of Teradyne’s financial instruments at October 2, 2022 and December 31, 2021 were as follows: October 2, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 710,746 $ 710,746 $ 1,122,199 $ 1,122,199 Marketable securities 176,349 176,349 378,089 378,089 Derivative assets 546 546 92 92 Liabilities Derivative liabilities 1,106 1,106 118 118 Convertible debt 64,791 154,486 108,426 604,648 The fair values of accounts receivable, net and accounts payable approximate the carrying value due to the short-term nature of these instruments. The following table summarizes the composition of available-for-sale October 2, 2022 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 69,598 $ — $ (4,244 ) $ 65,354 $ 65,354 Corporate debt securities 52,926 1 (7,063 ) 45,864 45,622 Commercial paper 17,691 35 (7 ) 17,719 8,983 Debt mutual funds 6,897 — (456 ) 6,441 3,075 U.S. government agency securities 4,790 — (109 ) 4,681 4,681 Certificates of deposit and time deposits 1,205 — — 1,205 — Non-U.S. 512 — — 512 — $ 153,619 $ 36 $ (11,879 ) $ 141,776 $ 127,715 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 65,744 $ 35 $ (469 ) $ 65,310 $ 55,369 Long-term marketable securities 87,875 1 (11,410 ) 76,466 72,346 $ 153,619 $ 36 $ (11,879 ) $ 141,776 $ 127,715 The following table summarizes the composition of available-for-sale December 31, 2021 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Commercial paper $ 189,614 $ 15 $ (9 ) $ 189,620 $ 22,784 U.S. Treasury securities 77,707 551 (470 ) 77,789 46,435 Corporate debt securities 52,266 4,863 (227 ) 56,901 19,422 Debt mutual funds 7,928 43 — 7,971 — U.S. government agency securities 4,617 5 (12 ) 4,610 3,296 Certificates of deposit and time deposits 1,356 — — 1,356 — Non-U.S. 589 — — 589 — $ 334,077 $ 5,477 $ (718 ) $ 338,836 $ 91,937 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 244,213 $ 64 $ (46 ) $ 244,231 $ 54,798 Long-term marketable securities 89,864 5,413 (672 ) 94,605 37,139 $ 334,077 $ 5,477 $ (718 ) $ 338,836 $ 91,937 As of October 2, 2022, the fair market value of investments with unrealized losses less than one year and greater than one year totaled $99.7 million and $28.0 million, respectively. As of December 31, 2021, the fair market value of investments with unrealized losses for less than one year and greater than one year totaled $85.4 million and $6.5 million, respectively. 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 October 2, 2022 and December 31, 2021 were not other than temporary. The contractual maturities of investments in available-for-sale October 2, 2022 Cost Fair Market Value (in thousands) Due within one year $ 65,744 $ 65,310 Due after 1 year through 5 years 35,934 34,116 Due after 5 years through 10 years 4,800 4,209 Due after 10 years 40,244 31,700 Total $ 146,722 $ 135,335 Contractual maturities of investments in available-for-sale Derivatives Teradyne conducts business in various foreign countries, with certain transactions denominated in local currencies. As a result, Teradyne is exposed to risks relating to changes in foreign currency exchange rates. Teradyne’s foreign currency risk management objective is to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, and changes in its cash inflows attributable to the forecasted cash flows from certain foreign currency denominated revenues. To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings and is used to offset the change in value of monetary assets and liabilities denominated in foreign currencies. Teradyne also enters into foreign currency forward and option contracts designated as cash flow hedges to hedge the risk of changes in its cash inflows attributable to changes in foreign currency exchange rates. The cash flow hedges have maturities of less than six months and mature in the period of revenue recognition for certain products and services in b a Teradyne does not use derivative financial instruments for speculative purposes. At October 2, 2022 and December 31, 2021, Teradyne had the following foreign currency forward contracts to buy and sell non-U.S. non-U.S. October 2, 2022 December 31, 2021 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (37.5 ) $ — $ (37.5 ) $ (31.4 ) $ — $ (31.4 ) Taiwan Dollar (35.2 ) — (35.2 ) (35.1 ) — (35.1 ) Korean Won (5.4 ) — (5.4 ) (4.2 ) — (4.2 ) British Pound Sterling (1.1 ) — (1.1 ) (1.8 ) — (1.8 ) Danish Krone (0.5 ) — (0.5 ) — — — Singapore Dollar — 24.4 24.4 — 61.9 61.9 Euro — 36.7 36.7 — 44.9 44.9 Philippine Peso — 2.8 2.8 — 3.9 3.9 Chinese Yuan — 2.4 2.4 — 2.8 2.8 Total $ (79.7 ) $ 66.3 $ (13.4 ) $ (72.5 ) $ 113.5 $ 41.0 The fair value of the outstanding foreign currency forward contracts was a loss of $1.1 million and $0.1 million, respectively, at October 2, 2022 and December 31, 2021. Unrealized 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. At October 2, 2022 and December 31, 2021, Teradyne had the following cash flow hedge contracts to buy and sell non-U.S. October 2, 2022 December 31, 2021 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (5.4 ) $ 26.6 $ 21.2 $ — $ — $ — Taiwan Dollar (9.2 ) 18.3 9.1 — — — Total $ (14.6 ) $ 44.9 $ 30.3 $ — $ — $ — The fair value of the outstanding cash flow hedge contracts was a gain of $0.5 million at October 2, 2022. Unrealized gains and losses on foreign currency cash flow hedge contracts are included in accumulated other comprehensive income (loss). At maturity the gains or losses associated with cash flow hedge contracts are recorded to revenue. The following table summarizes the fair value of derivative instruments as of October 2, 2022 and December 31, 2021: Balance Sheet Location October 2, December 31, (in thousands) Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepayments $ 9 $ 92 Foreign currency forward contracts Other current liabilities (1,106 ) (118 ) Derivatives designated as hedging instruments: Foreign currency option contracts Prepayments 537 — Total derivatives $ (560 ) $ (26 ) The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and nine months ended October 2, 2022 and October 3, 2021: Location of Losses (Gains) Recognized in For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other (income) expense, net $ 1,246 $ 2,288 $ (2,209 ) $ 5,937 Derivatives designated as hedging instruments: Foreign currency option contracts Revenue — — — — Total derivatives $ 1,246 $ 2,288 $ (2,209 ) $ 5,937 The above table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities denominated in foreign currencies. For the three and nine months ended October 2, 2022, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.6 million and $9.5 million, respectively. For the three and nine months ended October 3, 2021, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.0 million and $1.3 million, respectively. See Note H: “Debt” regarding derivatives related to the convertible senior notes. |
Debt
Debt | 9 Months Ended |
Oct. 02, 2022 | |
Debt | H. DEBT Convertible Senior Notes On December 12, 2016, Teradyne completed a private offering of $460.0 million aggregate principal amount of 1.25 % convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately million, of specified corporate events. On or after September 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Teradyne may satisfy its future conversion obligation by paying cash for the principal amount of the Notes and paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock, at Teradyne’s election for the amount in excess of principal. As of October 2, 2022, the conversion price was approximately $31.47 per share of Teradyne’s common stock. The conversion rate is subject to adjustment under certain circumstances. As of November 4, 2022, one hundred and sixteen holders had exercised the option to convert $401.8 million worth of notes. 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 $31.47. 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. Originally, Teradyne allocated $100.8 million of the $460.0 million principal amount of the Notes to the equity component, which represented a discount to the debt and was amortized to interest expense using the effective interest method through December 2023. Effective January 1, 2022, Teradyne adopted ASC 2020-06 paid-in On November 4, 2021, Teradyne made an irrevocable election under the Indenture to require the principal portion of the remaining Notes to be settled in cash. Debt issuance fees of approximately $0.2 million, at October 2, 2022, are being amortized to interest expense using the effective interest method over the seven-year term of the Notes. The below tables represent the key components of Teradyne’s convertible senior notes: October 2, December 31, (in thousands) Debt principal $ 64,980 $ 116,980 Unamortized debt issuance fees (1) 189 8,554 Net Carrying amount of convertible debt $ 64,791 $ 108,426 Reported as follows: October 2, December 31, (in thousands) Current debt $ 14,596 $ 19,182 Long-term debt 50,195 89,244 Net carrying amount of convertible debt $ 64,791 $ 108,426 For the Three Months For the Nine Months October 2, October 3, October 2, October 3, (in thousands) (in thousands) Contractual interest expense on the coupon $ 159 $ 355 $ 592 $ 2,666 Amortization of debt issuance fees recognized as interest expense (2) 43 2,424 173 9,771 Total interest expense on the convertible debt $ 202 $ 2,779 $ 765 $ 12,437 (1) Unamortized debt issuance fees as of December 31, 2021 include unamortized debt discount of $8.1 million, which was eliminated with the adoption of ASU 2020- 0 (2) Three and nine months ended October 3, 2021 includes the amortization of debt discount component, which was eliminated with the adoption of ASU 2020-06 As of October 2, 2022, the conversion price was approximately $31.47 per share and the if-converted During the nine months ended October 2, 2022, thirty-three debt holders elected to convert $52.0 million of debt principal. The conversion of the debt was settled in cash for principal amount and in shares for the excess of conversion value over principal amount. The 1.2 million shares issued to the debt holders were received from exercising the convertible notes hedge call options. Additional conversions of approximately $14.6 million of debt principal will occur in the fourth quarter of 2022 and the liability is included in current debt. Teradyne expects to make contractual interest payme nts of $0.6 million in the next 12 months and $0.3 million thereafter. Revolving Credit Facility On May 1, 2020, Teradyne entered into a credit agreement (the “Credit Agreement”) with Truist Bank, as administrative agent and collateral agent, and the lenders party thereto. The Credit Agreement provided for a three-year, senior secured revolving credit facility of $400.0 million (the “Credit Facility”). On December 10, 2021, the Credit Agreement was amended to extend the maturity date of the Credit Facility to December 10, 2026. On October 5, 2022, the Credit Agreement was amended to increase the amount of the Credit Facility to $750.0 million from $400.0 million. The Credit Agreement provides that, subject to customary conditions, Teradyne may seek to obtain from existing or new lenders the available incremental amount under the Credit Facility, not to exceed the greater of $ million or % of consolidated EBIDTA. Teradyne is not required to repay any loans under the Credit Facility prior to maturity, subject to certain customary exceptions. Teradyne is permitted to prepay all or any portion of the loans under the Credit Facility prior to maturity without premium or penalty, other than customary SOFR breakage costs. The Credit Agreement contains customary events of default, representations, warranties and affirmative and negative covenants that, among other things, limit Teradyne’s ability to sell assets, grant liens on assets, incur other secured indebtedness and make certain investments and restricted payments, all subject to exceptions set forth in the Credit Agreement. The Credit Agreement also requires Teradyne to satisfy two financial ratios measured as of the end of each fiscal quarter a consolidated leverage ratio and an interest coverage ratio. The Credit Facility is guaranteed by certain of Teradyne’s domestic subsidiaries and collateralized by assets of Teradyne and such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries. As of November 4, 2022, Teradyne has not borrowed any funds under the credit facility and was in compliance with all covenants. See Note U: “Subsequent Event” regarding an increase in the amount of the Credit Facility. |
Prepayments
Prepayments | 9 Months Ended |
Oct. 02, 2022 | |
Prepayments [Abstract] | |
Prepayments | I. PREPAYMENTS Prepayments consist of the following: October 2, December 31, (in thousands) Contract manufacturer and supplier prepayments $ 466,648 $ 364,478 Prepaid maintenance and other services 13,760 13,660 Prepaid taxes 12,531 15,090 Other prepayments 9,739 13,038 Total prepayments $ 502,678 $ 406,266 |
Product Warranty
Product Warranty | 9 Months Ended |
Oct. 02, 2022 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | J. PRODUCT WARRANTY Teradyne generally provides a one-year For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Balance at beginning of period $ 16,036 $ 25,676 $ 24,577 $ 16,633 Accruals for warranties issued during the period 4,930 6,641 15,460 28,719 Accruals related to pre-existing (654 ) (963 ) (5,024 ) (3,966 ) Settlements made during the period (6,181 ) (5,233 ) (20,882 ) (15,265 ) Balance at end of period $ 14,131 $ 26,121 $ 14,131 $ 26,121 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. For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Balance at beginning of period $ 65,791 $ 63,525 $ 64,168 $ 51,929 Deferral of new extended warranty revenue 6,987 12,728 28,550 36,533 Recognition of extended warranty deferred revenue (10,858 ) (8,771 ) (30,798 ) (20,980 ) Balance at end of period $ 61,920 $ 67,482 $ 61,920 $ 67,482 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 02, 2022 | |
Stock-Based Compensation | K. STOCK-BASED COMPENSATION Under Teradyne’s stock compensation plans, Teradyne grants service-based restricted stock units, performance-based restricted stock units and stock options, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Service-based restricted stock unit awards granted to employees vest in equal annual installments over four years. Restricted stock unit awards granted to non-employee one-year Performance-based restricted stock units (“PRSUs”) granted to Teradyne’s executive officers may have a performance metric based on relative total shareholder return (“TSR”). Teradyne’s three-year TSR performance is measured against the New York Stock Exchange (“NYSE”) Composite Index. The final number of TSR PRSUs that vest will vary based upon the level of performance achieved from 0% to 200% of the target shares. The TSR PRSUs will vest upon the three-year anniversary of the grant date. The TSR PRSUs are valued using a Monte Carlo simulation model. The number of units expected to be earned, based upon the achievement of the TSR market condition, is factored into the grant date Monte Carlo valuation. Compensation expense is recognized on a straight-line basis over the shorter of the three-year service period or the period from the grant to the date described in the retirement provisions below. Compensation expense for executive officers meeting the retirement provisions prior to the grant date is recognized during the year following 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 granted to Teradyne’s executive officers may also have a performance metric based on three-year cumulative non-GAAP Non-GAAP non-recurring 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 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 the nine months ended October 2, 2022 and October 3, 2021, Teradyne granted 0.4 million and 0.3 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $110.34 and $113.76, respectively, and $0.1 million of service-based restricted stock unit awards to non-employee During the nine months ended October 2, 2022 and October 3, 2021, Teradyne granted 0.1 million of PBIT PRSUs with a grant date fair value of $110.84 and $113.65, respectively. Duri ng the nine months ended October 2, 2022 and October 3, 2021, Teradyne granted 0.1 million of TSR PRSUs, with a grant date fair value of $101.06 and $125.02, respectively. The fair value was estimated using the Monte Carlo simulation model with the following assumptions: For the Nine Months Ended October 2, October 3, Risk-free interest rate 1.4 % 0.2 % Teradyne volatility-historical 47.1 % 43.9 % NYSE Composite Index volatility-historical 22.7 % 22.9 % Dividend yield 0.4 % 0.4 % Expected volatility was based on the historical volatility of Teradyne’s stock and the NYSE Composite Index over the most recent three-year period. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. Dividend yield was based upon an estimated annual dividend amount of $0.44 per share divided by Teradyne’s stock price on the grant date of $112.12 for the 2022 grant and an estimated annual dividend amount of $0.40 per share divided by Teradyne’s stock price on the grant date of $113.48 for the 2021 grant. During the nine months ended October 2, 2022 and October 3, 2021, Teradyne granted 0.1 million of service-based stock options to executive officers at a weighted average grant date fair value of $39.01 and $36.60, respectively. The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Nine Months Ended October 2, October 3, Expected life (years) 4.0 5.0 Risk-free interest rate 1.6 % 0.4 % Volatility-historical 43.7 % 37.8 % Dividend yield 0.4 % 0.4 % 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 $0.44 per share divided by Teradyne’s stock price on the grant date of $112.12 for the 2022 grant and an estimated annual dividend amount of $0.40 per share divided by Teradyne’s stock price on the grant date of $113.48 for the 2021 grant. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Oct. 02, 2022 | |
Accumulated Other Comprehensive Income (Loss) | L. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss), which are presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Unrealized Retirement Plans Service Credit Total (in thousands) Nine Months Ended October 2, 2022 Balance at December 31, 2021, net of tax of $0, $1,055, $0, $(1,128), respectively $ (10,818 ) $ 3,704 $ — $ 1,166 $ (5,948 ) Other comprehensive (loss) gain before reclassifications, net of tax of $0, $(3,570), $0, $0, respectively (66,258 ) (13,491 ) 537 — (79,212 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $48, $0, $(2), respectively — 386 — (5 ) 381 Net current period other comprehensive (loss) gain, net of tax of $0, $(3,522), $0, $(2), respectively (66,258 ) (13,105 ) 537 (5 ) (78,831 ) Balance at October 2, 2022, net of tax of $0, $(2,467), $0, $(1,130), respectively $ (77,076 ) $ (9,401 ) $ 537 $ 1,161 $ (84,779 ) Nine Months Ended October 3, 2021 Balance at December 31, 2020, net of tax of $0, $1,910, $0, $(1,126), respectively $ 25,389 $ 6,954 $ — $ 1,173 $ 33,516 Other comprehensive loss before reclassifications, net of tax of $0, $(516), $0, $0, respectively (26,672 ) (1,952 ) — — (28,624 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(186), $0, $(2), respectively — (670 ) — (5 ) (675 ) Net current period other comprehensive loss, net of tax of $0, $(702), $0, $(2), respectively (26,672 ) (2,622 ) — (5 ) (29,299 ) Balance at October 3, 2021, net of tax of $0, $1,208, $0, $(1,128), respectively $ (1,283 ) $ 4,332 $ — $ 1,168 $ 4,217 Reclassifications out of accumulated other comprehensive income (loss) to the statement of operations for the three and nine months ended October 2, 2022 and October 3, 2021 were as follows: Details about Accumulated Other Comprehensive Income (Loss) Components For the Three Months Ended For the Nine Months Ended Affected Line Item in the Statements of Operations October 2, October 3, October 2, October 3, (in thousands) Available-for-sale Unrealized (losses) gains, net of tax of $11, $65, $(48 ) $ (177 ) $ 229 $ (386 ) $ 670 Other (income) Defined benefit postretirement plan: Amortization of prior service credit, net of tax of $0, $0, $2, $2, respectively 2 2 5 5 (a) Total reclassifications, net of tax of $11, $65, $46, $188, respectively $ (175 ) $ 231 $ (381 ) $ 675 Net income (a) The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note P: “Retirement Plans.” |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 9 Months Ended |
Oct. 02, 2022 | |
Goodwill and Acquired Intangible Assets | M. GOODWILL AND ACQUIRED INTANGIBLE ASSETS Goodwill Teradyne performs its annual goodwill impairment test as required under the provisions of ASC 350-10, “Intangibles—Goodwill and Other” The changes in the carrying amount of goodwill by reportable segments for the nine months ended October 2, 2022, were as follows: Industrial Automation Wireless Semiconductor System Test Total (in thousands) Balance at December 31, 2021 Goodwill $ 405,971 $ 361,819 $ 262,101 $ 158,699 $ 1,188,590 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) Total Goodwill 405,971 7,976 1,561 10,516 426,024 Foreign currency translation adjustment (50,126 ) — (99 ) — (50,225 ) Balance at October 2, 2022 Goodwill 355,845 361,819 262,002 158,699 1,138,365 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) Total Goodwill $ 355,845 $ 7,976 $ 1,462 $ 10,516 $ 375,799 Intangible Assets Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet: Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) Balance at October 2, 2022 Developed technology $ 272,547 $ (232,802 ) $ (7,620 ) $ 32,125 Customer relationships 57,739 (50,623 ) 126 7,242 Tradenames and trademarks 59,387 (40,809 ) (2,365 ) 16,213 Total intangible assets $ 389,673 $ (324,234 ) $ (9,859 ) $ 55,580 Balance, December 31, 2021 Developed technology $ 272,547 $ (223,413 ) $ (4,093 ) $ 45,041 Customer relationships 57,739 (48,921 ) 209 9,027 Tradenames and trademarks 59,387 (37,237 ) (583 ) 21,567 Total intangible assets $ 389,673 $ (309,571 ) $ (4,467 ) $ 75,635 Aggregate intangible asset amortization expense was $4.7 million and $14.7 million, respectively, for the three and nine months ended October 2, 2022 and $5.4 million and $16.3 million, respectively, for the three and nine months ended October 3, 2021. Estimated intangible asset amortization expense for each of the five succeeding fiscal years and thereafter is as follows: Year Amortization Expense (in thousands) 2022 $ 4,592 2023 17,922 2024 17,617 2025 10,855 2026 2,262 Thereafter 2,332 |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Oct. 02, 2022 | |
Net Income per Common Share | N. NET INCOME PER COMMON SHARE The following table sets forth the computation of basic and diluted net income per common share: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 183,485 $ 256,718 $ 543,200 $ 790,549 Weighted average common shares-basic 156,364 164,583 159,325 165,690 Effect of dilutive potential common shares: Convertible note hedge warrant shares (1) 8,284 9,819 9,114 9,774 Incremental shares from assumed conversion of convertible notes (2) 1,453 6,464 1,965 8,784 Restricted stock units 564 1,035 673 1,147 Stock options 45 73 56 87 Employee stock purchase plan 23 13 23 10 Dilutive potential common shares 10,369 17,404 11,831 19,802 Weighted average common shares-diluted 166,733 181,987 171,156 185,492 Net income per common share-basic $ 1.17 $ 1.56 $ 3.41 $ 4.77 Net income per common share-diluted $ 1.10 $ 1.41 $ 3.17 $ 4.26 (1) Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant 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. (2) Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes 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. The computation of diluted net income per common share for the three and nine months ended October 2, 2022 excludes the effect of the potential vesting of 0.7 million and 0.9 million, respectively, of restricted stock units because the effect would have been anti-dilutive. The computation of diluted net income per common share for the three and nine months ended October 3, 2021 excludes the effect of the potential vesting of 0.1 million and 0.1 million, respectively, of restricted stock units because the effect would have been anti-dilutive. |
Restructuring and Other
Restructuring and Other | 9 Months Ended |
Oct. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | O. RESTRUCTURING AND OTHER During the three months ended October 2, 2022, Teradyne recorded $1.2 million of severance charges primarily in Industrial Automation and $0.7 million for an increase in legal liabilities. During the three months ended October 3, 2021, Teradyne recorded $0.6 million of severance charges primarily in Industrial Automation. During the nine months ended October 2, 2022, Teradyne recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out earn-out During the nine months ended October 3, 2021, Teradyne recorded a gain of $7.2 million for the decrease in the fair value of the AutoGuide contingent consideration liability, partially offset by a charge of $1.7 million for an increase in environmental and legal liabilities, and $1.2 million of severance charges primarily in Industrial Automation. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Oct. 02, 2022 | |
Retirement Plans | P. RETIREMENT PLANS ASC 715, “Compensation—Retirement Benefits,” requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715. The pension asset or liability represents a difference between the fair value of the pension plan’s assets and the projected benefit obligation at December 31. Teradyne uses a December 31 measurement date for all its plans. Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. In the nine months ended October 2, 2022 and October 3, 2021, Teradyne contributed $2.5 million and $2.5 million, respectively, to the U.S. supplemental executive defined benefit pension plan, and $0.7 million and $0.8 million, respectively, to certain qualified pension plans for non-U.S. For the three and nine months ended October 2, 2022 and October 3, 2021, Teradyne’s net periodic pension cost was comprised of the following: For the Three Months Ended October 2, 2022 October 3, 2021 United States Foreign United States Foreign (in thousands) Service cost $ 397 $ 153 $ 452 $ 240 Interest cost 1,222 96 1,098 86 Expected return on plan assets (732 ) (16 ) (936 ) (17 ) Total net periodic pension cost $ 887 $ 233 $ 614 $ 309 For the Nine Months Ended October 2, 2022 October 3, 2021 United States Foreign United States Foreign (in thousands) Service cost $ 1,191 $ 539 $ 1,357 $ 720 Interest cost 3,665 333 3,295 257 Expected return on plan assets (2,195 ) (54 ) (2,809 ) (50 ) Net actuarial gain (45 ) — (400 ) — Total net periodic pension cost $ 2,616 $ 818 $ 1,443 $ 927 Postretirement Benefit Plan In addition to receiving pension benefits, Teradyne employees in the United States who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne’s Welfare Plan, which includes medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees. For the three and nine months ended October 2, 2022 and October 3, 2021, Teradyne’s net periodic postretirement benefit cost (credit) was comprised of the following: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Service cost $ 16 $ 16 $ 48 $ 48 Interest cost 44 43 132 128 Amortization of prior service credit (2 ) (2 ) (7 ) (7 ) Net actuarial loss (gain) — — 54 (228 ) Total net periodic postretirement benefit cost (credit) $ 58 $ 57 $ 227 $ (59 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 02, 2022 | |
Commitments and Contingencies | Q. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of October 2, 2022, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $887.1 million, of which $808.3 million is for less than one year. Legal Claims Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business 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. On March 8, 2021, Industrial Automation LLC, sellers of AutoGuide, submitted a demand for arbitration against Teradyne and AutoGuide in Wilmington, Delaware alleging that Teradyne and AutoGuide breached certain provisions of the Membership Interests Purchase Agreement (the “Purchase Agreement”), dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide. The arbitration demand sought full acceleration of the maximum earn-out earn-out earn-out 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 may enter 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 business, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a one-year In addition, in the ordinary course of business, Teradyne provides minimum purchase guarantees to certain vendors to ensure continuity of supply against the market demand. Although some of these guarantees provide penalties for cancellations and/or modifications to the purchase commitments as the market demand decreases, most of the guarantees do not. Therefore, as the market demand decreases, Teradyne re-evaluates With respect to its agreements covering product, business or entity divestitures and acquisitions, Teradyne provides certain representations, warranties and covenants to purchasers and agrees to indemnify and hold such purchasers harmless against breaches of such representations, warranties and covenants. Many of the indemnification claims have a definite expiration date while some remain in force indefinitely. With respect to its acquisitions, Teradyne may, from time to time, assume the liability for certain events or occurrences that took place prior to the date of acquisition. As a matter of ordinary course of business, Teradyne occasionally guarantees certain indebtedness obligations of its subsidiary companies, limited to the borrowings from financial institutions, purchase commitments to certain vendors, and lease commitments to landlords. Based on historical experience and information known as of October 2, 2022 and December 31, 2021, except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2022 | |
Income Taxes | R. INCOME TAXES A reconciliation of the United States federal statutory corporate tax rate to Teradyne’s effective tax rate was as follows: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, U.S. statutory federal tax rate 21.0 % 21.0 % 21.0 % 21.0 % Non-deductible 1.8 0.8 1.4 0.8 Foreign taxes (0.7 ) (4.4 ) (2.4 ) (4.4 ) Tax credits (2.1 ) (1.9 ) (1.9 ) (1.4 ) International provisions of the U.S. Tax Cuts and Jobs Act of 2017 (1.4 ) (1.5 ) (1.2 ) (1.6 ) Discrete benefit related to equity compensation (0.1 ) (0.1 ) (1.9 ) (1.6 ) Other, net 0.4 (0.1 ) 0.8 (0.1 ) Effective tax rate 18.9 % 13.8 % 15.8 % 12.7 % On a quarterly basis, Teradyne evaluates the realizability of the deferred tax assets by jurisdiction and assesses the need for a valuation allowance. As of October 2, 2022, Teradyne believes that it will ultimately realize the deferred tax assets recorded on the condensed consolidated balance sheet. However, should Teradyne believe that it is more-likely-than-not As of October 2, 2022 and December 31, 2021, Teradyne had $14.8 million and $14.5 million, respectively, of reserves for uncertain tax positions. The $0.3 million net increase in reserves for uncertain tax positions consists of an increase related to U.S. federal research and development credits generated in the current year partially offset by the release of reserves related to prior year loss carryforwards. As of October 2, 2022, Teradyne does not anticipate a material change in the balance of unrecognized tax benefits during the next twelve months. Teradyne recognizes interest and penalties related to income tax matters in income tax expense. As of October 2, 2022 and December 31, 2021, $0.4 million and $0.3 million, respectively, of interest and penalties were accrued for uncertain tax positions. For the nine months ended October 2, 2022 and October 3, 2021, expense s ere Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements of an agreement with the Singapore Economic Development Board under which certain headcount and spending requirements must be met. The tax savings due to the tax holiday for the nine months ended October 2, 2022 was $9.7 million, or $0.05 per diluted share. The tax savings due to the tax holiday for the nine months ended October 3, 2021 was $23.9 million, or $0.13 per diluted share. In November 2020, Teradyne entered into an agreement with the Singapore Economic Development Board which extended its Singapore tax holiday under substantially similar terms to the agreement which expired on December 31, 2020. The new tax holiday is scheduled to expire on December 31, 2025. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 02, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | S. SEGMENT INFORMATION Teradyne has four reportable segments (Semiconductor Test, System Test, Industrial Automation and Wireless Test). Each of the reportable segments is also an individual operating segment. 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 and system level 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. Each operating segment has a segment manager who is accountable to and maintains regular contact with Teradyne’s chief operating decision maker (Teradyne’s chief executive officer) to discuss operating activities, financial results, forecasts, and plans for the segment. Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income (loss) before income taxes. The accounting policies of the business segments in effect are described in Note B: “Accounting Policies” in Teradyne’s Annual Report on Form 10-K Segment information for the three and nine months ended October 2, 2022 and October 3, 2021 is as follows: Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Eliminations Consolidated (in thousands) Three Months Ended October 2, 2022 Revenues $ 575,704 $ 116,154 $ 89,067 $ 46,148 $ — $ 827,073 Income (loss) before income taxes (1)(2) 182,625 40,201 (3,992 ) 12,647 (5,284 ) 226,197 Total assets (3) 1,366,478 192,684 614,558 110,484 1,035,702 3,319,906 Three Months Ended October 3, 2021 Revenues $ 688,232 $ 102,605 $ 91,014 $ 68,713 $ (63 ) $ 950,501 Income (loss) before income taxes (1)(2) 265,017 31,773 (4,226 ) 31,726 (26,535 ) 297,755 Total assets (3) 1,251,549 147,970 696,792 119,568 1,546,303 3,762,182 Nine Months Ended October 2, 2022 Revenues $ 1,599,392 $ 369,525 $ 292,772 $ 161,520 $ — $ 2,423,209 Income (loss) before income taxes (1)(2) 510,112 135,566 (15,496 ) 56,659 (41,693 ) 645,148 Total assets (3) 1,366,478 192,684 614,558 110,484 1,035,702 3,319,906 Nine Months Ended October 3, 2021 Revenues $ 2,050,271 $ 340,261 $ 263,151 $ 164,504 $ (352 ) $ 2,817,835 Income (loss) before income taxes (1)(2) 778,687 116,788 (14,586 ) 63,810 (38,925 ) 905,774 Total assets (3) 1,251,549 147,970 696,792 119,568 1,546,303 3,762,182 (1) Included in Corporate and Eliminations are: legal and environmental fees, contingent consideration fair value adjustments, interest income, interest expense, severance charges, net foreign exchange gains (losses), acquisition related charges and compensation, pension, intercompany eliminations and for the three and nine months ended October 3, 2021, loss on convertible debt conversions. (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and, for the three and nine months ended October 3, 2021, loss on convertible debt conversions. (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 operations: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Semiconductor Test: Cost of revenues—inventory charge $ 10,829 $ 3,725 $ 13,144 $ 4,959 Industrial Automation: Restructuring and other—employee severance $ 1,074 $ — $ 1,616 $ 965 Cost of revenues—inventory charge — 3,656 1,411 4,941 Restructuring and other—acquisition related expenses and compensation — — — 825 Wireless: Cost of revenues—inventory charge $ 966 $ 679 $ 3,942 $ 1,351 System Test: Cost of revenues—inventory charge $ — $ — $ — $ 524 Corporate and Eliminations: Restructuring and other—other $ 700 $ — $ 2,700 $ 1,846 Restructuring and other—legal settlement charge — — 14,700 — Other (income) expense, net—loss on convertible debt conversions — 20,153 — 25,397 Restructuring and other—AutoGuide contingent consideration adjustment — — — (7,227 ) Restructuring and other—acquisition related expenses and compensation — — — (513 ) |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Oct. 02, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | T. SHAREHOLDERS’ EQUITY Stock Repurchase Program In January 2021, Teradyne’s Board of Directors approved a new repurchase program for up to $2.0 billion of common stock. The total price includes commissions and is recorded as a reduction to retained earnings. Dividend Holders of Teradyne’s common stock are entitled to receive dividends when they are declared by Teradyne’s Board of Directors. In January 2022, May 2022 and August 2022, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.11 per share. Dividend payments for the three and nine months ended October 2, 2022 were $17.1 million and $52.6 million, respectively. In January 2021, May 2021 and August 2021, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.10 per share. Dividend payments for the three and nine months ended October 3, 2021 were $16.4 million and $49.7 million, respectively. While Teradyne declared a quarterly cash dividend and authorized a share repurchase program, it may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of Teradyne’s Board of Directors which will consider, among other things, Teradyne’s earnings, capital requirements and financial condition. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 02, 2022 | |
Subsequent Events | U. SUBSEQUENT EVENT On October 5, 2022, Teradyne amended its existing credit agreement to increase the amount of its senior secured revolving credit facility to $750 million from $400 million. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2022 | |
Basis of Presentation | Basis of Presentation The consolidated interim financial statements include the accounts of Teradyne and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair statement of such interim financial statements. Certain prior year amounts may have been reclassified to conform to the current year presentation. The December 31, 2021 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by United States of America generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form 10-K, |
Preparation of Financial Statements and Use of Estimates | Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent liabilities. On an on-going COVID-19 10-Q. |
Convertible Debt | Convertible Debt Teradyne adopted Accounting Standards Update (“ASU”) ASU 2020-06 “Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity,” . 2020-06, if-converted paid-in |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
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. During the three months ended October 2, 2022 Teradyne combined Mobile Industrial Robots and AutoGuide into one business unit. Revenues for all periods shown below have been combined accordingly. Semiconductor Test Industrial System on-a-Chip Memory System Universal Mobile Wireless Test Corporate and Eliminations Total (in thousands) For the Three Months Ended October 2, 2022 (1) Timing of Revenue Recognition Point in Time $ 383,801 $ 117,943 $ 93,248 $ 71,300 $ 15,025 $ 42,885 $ — $ 724,202 Over Time 66,614 7,346 22,906 2,062 680 3,263 — 102,871 Total $ 450,415 $ 125,289 $ 116,154 $ 73,362 $ 15,705 $ 46,148 $ — $ 827,073 Geographical Market Asia Pacific $ 399,323 $ 122,839 $ 73,768 $ 18,850 $ 2,917 $ 34,420 $ — $ 652,117 Americas 31,719 2,129 35,865 26,515 8,877 9,481 — 114,586 Europe, Middle East and Africa 19,373 321 6,521 27,997 3,911 2,247 — 60,370 Total $ 450,415 $ 125,289 $ 116,154 $ 73,362 $ 15,705 $ 46,148 $ — $ 827,073 For the Three Months Ended October 3, 2021 (1) Timing of Revenue Recognition Point in Time $ 508,747 $ 105,454 $ 88,155 $ 76,008 $ 12,577 $ 65,409 $ (63 ) $ 856,287 Over Time 66,270 7,761 14,450 1,742 687 3,304 — 94,214 Total $ 575,017 $ 113,215 $ 102,605 $ 77,750 $ 13,264 $ 68,713 $ (63 ) $ 950,501 Geographical Market Asia Pacific $ 519,886 $ 110,362 $ 62,757 $ 19,654 $ 2,788 $ 54,344 $ — $ 769,791 Americas 29,119 2,281 34,560 23,429 5,321 11,352 (63 ) 105,999 Europe, Middle East and Africa 26,012 572 5,288 34,667 5,155 3,017 — 74,711 Total $ 575,017 $ 113,215 $ 102,605 $ 77,750 $ 13,264 $ 68,713 $ (63 ) $ 950,501 For the Nine Months Ended October 2, 2022 (2) Timing of Revenue Recognition Point in Time $ 1,102,467 $ 281,456 $ 317,230 $ 234,352 $ 49,570 $ 152,079 $ — $ 2,137,154 Over Time 193,996 21,473 52,295 6,268 2,582 9,441 — 286,055 Total $ 1,296,463 $ 302,929 $ 369,525 $ 240,620 $ 52,152 $ 161,520 $ — $ 2,423,209 Geographical Market Asia Pacific $ 1,153,599 $ 294,986 $ 243,135 $ 54,828 $ 10,826 $ 113,472 $ — $ 1,870,846 Americas 90,148 6,727 105,884 81,857 24,670 36,628 — 345,914 Europe, Middle East and Africa 52,716 1,216 20,506 103,935 16,656 11,420 — 206,449 Total $ 1,296,463 $ 302,929 $ 369,525 $ 240,620 $ 52,152 $ 161,520 $ — $ 2,423,209 Semiconductor Test Industrial System on-a-Chip Memory System Universal Mobile Wireless Test Corporate and Eliminations Total (in thousands) For the Nine Months Ended October 3, 2021 (2) Timing of Revenue Recognition Point in Time $ 1,548,895 $ 291,578 $ 295,666 $ 214,427 $ 41,612 $ 154,908 $ (352 ) $ 2,546,734 Over Time 188,022 21,776 44,595 5,001 2,111 9,596 — 271,101 Total $ 1,736,917 $ 313,354 $ 340,261 $ 219,428 $ 43,723 $ 164,504 $ (352 ) $ 2,817,835 Geographical Market Asia Pacific $ 1,618,117 $ 301,562 $ 223,507 $ 55,531 $ 8,674 $ 133,678 $ — $ 2,341,069 Americas 71,562 9,373 98,475 66,390 17,799 24,228 (352 ) 287,475 Europe, Middle East and Africa 47,238 2,419 18,279 97,507 17,250 6,598 — 189,291 Total $ 1,736,917 $ 313,354 $ 340,261 $ 219,428 $ 43,723 $ 164,504 $ (352 ) $ 2,817,835 (1) Includes $1.8 million and $3.8 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.” (2) Includes $5.9 million and $11.1 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers.” |
Deferred Revenue and Customer Advances | Deferred revenue and customer advances consist of the following at October 2, 2022 and December 31, 2021, and are included in short and long-term deferred revenue and customer advances on the balance sheet: October 2, December 31, (in thousands) Maintenance, service and training $ 76,310 $ 81,826 Extended warranty 61,920 64,168 Customer advances, undelivered elements and other 53,849 55,112 Total deferred revenue and customer advances $ 192,079 $ 201,106 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Composition of Inventories, Net | Inventories, net consisted of the following at October 2, 2022 and December 31, 2021: October 2, December 31, (in thousands) Raw material $ 228,762 $ 155,641 Work-in-process 42,093 37,740 Finished goods 39,899 49,949 $ 310,754 $ 243,330 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 and December 31, 2021. October 2, 2022 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 $ 464,744 $ — $ — $ 464,744 Cash equivalents 51,243 194,759 — 246,002 Available-for-sale U.S. Treasury securities — 65,354 — 65,354 Corporate debt securities — 45,864 — 45,864 Commercial paper — 17,719 — 17,719 Debt mutual funds 6,441 — — 6,441 U.S. government agency securities — 4,681 — 4,681 Certificates of deposit and time deposits — 1,205 — 1,205 Non-U.S. — 512 — 512 Equity securities: Mutual funds 34,573 — — 34,573 $ 557,001 $ 330,094 $ — $ 887,095 Derivative assets — 546 — 546 Total $ 557,001 $ 330,640 $ — $ 887,641 Liabilities Derivative liabilities $ — $ 1,106 $ — $ 1,106 Total $ — $ 1,106 $ — $ 1,106 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 515,987 $ 194,759 $ — $ 710,746 Marketable securities — 65,310 — 65,310 Long-term marketable securities 41,014 70,025 — 111,039 Prepayments and other current assets — 546 — 546 Total $ 557,001 $ 330,640 $ — $ 887,641 Liabilities . Other cur r $ — $ 1,106 $ — $ 1,106 Total $ — $ 1,106 $ — $ 1,106 December 31, 2021 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 $ 628,740 $ — $ — $ 628,740 Cash equivalents 412,212 81,247 — 493,459 Available-for-sale — Commercial paper — 189,620 — 189,620 U.S. Treasury securities — 77,789 — 77,789 Corporate debt securities — 56,901 — 56,901 Debt mutual funds 7,971 — — 7,971 U.S. government agency securities — 4,610 — 4,610 Certificates of deposit and time deposits — 1,356 — 1,356 Non-U.S. — 589 — 589 Equity securities: Mutual Funds 39,253 — — 39,253 $ 1,088,176 $ 412,112 $ — $ 1,500,288 Derivative assets — 92 — 92 Total $ 1,088,176 $ 412,204 $ — $ 1,500,380 Liabilities Derivative liabilities — 118 — 118 Total $ — $ 118 $ — $ 118 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 1,040,952 $ 81,247 $ — $ 1,122,199 Marketable securities — 244,231 — 244,231 Long-term marketable securities 47,224 86,634 — 133,858 Prepayments and other current assets — 92 — 92 Total $ 1,088,176 $ 412,204 $ — $ 1,500,380 Liabilities Other current liabilities $ — $ 118 $ — $ 118 Total $ — $ 118 $ — $ 118 |
Schedule of Changes in Fair Value of Level 3 Contingent Consideration | Changes in the fair value of Level 3 contingent consideration for the nine months ended October 2, 2022, and October 3, 2021 were as follows: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Balance at beginning of period $ — $ — $ — $ 7,227 Fair value adjustment (a) — — — (7,227 ) Balance at end of period $ — $ — $ — $ — (a) In the nine months ended October 3, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of Teradyne’s financial instruments at October 2, 2022 and December 31, 2021 were as follows: October 2, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 710,746 $ 710,746 $ 1,122,199 $ 1,122,199 Marketable securities 176,349 176,349 378,089 378,089 Derivative assets 546 546 92 92 Liabilities Derivative liabilities 1,106 1,106 118 118 Convertible debt 64,791 154,486 108,426 604,648 |
Schedule of Available-for-Sale Marketable Securities | The following table summarizes the composition of available-for-sale October 2, 2022 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 69,598 $ — $ (4,244 ) $ 65,354 $ 65,354 Corporate debt securities 52,926 1 (7,063 ) 45,864 45,622 Commercial paper 17,691 35 (7 ) 17,719 8,983 Debt mutual funds 6,897 — (456 ) 6,441 3,075 U.S. government agency securities 4,790 — (109 ) 4,681 4,681 Certificates of deposit and time deposits 1,205 — — 1,205 — Non-U.S. 512 — — 512 — $ 153,619 $ 36 $ (11,879 ) $ 141,776 $ 127,715 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 65,744 $ 35 $ (469 ) $ 65,310 $ 55,369 Long-term marketable securities 87,875 1 (11,410 ) 76,466 72,346 $ 153,619 $ 36 $ (11,879 ) $ 141,776 $ 127,715 The following table summarizes the composition of available-for-sale December 31, 2021 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Commercial paper $ 189,614 $ 15 $ (9 ) $ 189,620 $ 22,784 U.S. Treasury securities 77,707 551 (470 ) 77,789 46,435 Corporate debt securities 52,266 4,863 (227 ) 56,901 19,422 Debt mutual funds 7,928 43 — 7,971 — U.S. government agency securities 4,617 5 (12 ) 4,610 3,296 Certificates of deposit and time deposits 1,356 — — 1,356 — Non-U.S. 589 — — 589 — $ 334,077 $ 5,477 $ (718 ) $ 338,836 $ 91,937 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 244,213 $ 64 $ (46 ) $ 244,231 $ 54,798 Long-term marketable securities 89,864 5,413 (672 ) 94,605 37,139 $ 334,077 $ 5,477 $ (718 ) $ 338,836 $ 91,937 |
Contractual Maturities of Investments Held | The contractual maturities of investments in available-for-sale October 2, 2022 Cost Fair Market Value (in thousands) Due within one year $ 65,744 $ 65,310 Due after 1 year through 5 years 35,934 34,116 Due after 5 years through 10 years 4,800 4,209 Due after 10 years 40,244 31,700 Total $ 146,722 $ 135,335 |
Schedule of Notional Amount of Derivatives | At October 2, 2022 and December 31, 2021, Teradyne had the following foreign currency forward contracts to buy and sell non-U.S. non-U.S. October 2, 2022 December 31, 2021 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (37.5 ) $ — $ (37.5 ) $ (31.4 ) $ — $ (31.4 ) Taiwan Dollar (35.2 ) — (35.2 ) (35.1 ) — (35.1 ) Korean Won (5.4 ) — (5.4 ) (4.2 ) — (4.2 ) British Pound Sterling (1.1 ) — (1.1 ) (1.8 ) — (1.8 ) Danish Krone (0.5 ) — (0.5 ) — — — Singapore Dollar — 24.4 24.4 — 61.9 61.9 Euro — 36.7 36.7 — 44.9 44.9 Philippine Peso — 2.8 2.8 — 3.9 3.9 Chinese Yuan — 2.4 2.4 — 2.8 2.8 Total $ (79.7 ) $ 66.3 $ (13.4 ) $ (72.5 ) $ 113.5 $ 41.0 |
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value | The following table summarizes the fair value of derivative instruments as of October 2, 2022 and December 31, 2021: Balance Sheet Location October 2, December 31, (in thousands) Derivatives not designated as hedging instruments: Foreign currency forward contracts Prepayments $ 9 $ 92 Foreign currency forward contracts Other current liabilities (1,106 ) (118 ) Derivatives designated as hedging instruments: Foreign currency option contracts Prepayments 537 — Total derivatives $ (560 ) $ (26 ) |
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized | The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and nine months ended October 2, 2022 and October 3, 2021: Location of Losses (Gains) Recognized in For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Derivatives not designated as hedging instruments: Foreign currency forward contracts Other (income) expense, net $ 1,246 $ 2,288 $ (2,209 ) $ 5,937 Derivatives designated as hedging instruments: Foreign currency option contracts Revenue — — — — Total derivatives $ 1,246 $ 2,288 $ (2,209 ) $ 5,937 |
Schedule of Foreign Currency Cash Flow Hedges | At October 2, 2022 and December 31, 2021, Teradyne had the following cash flow hedge contracts to buy and sell non-U.S. October 2, 2022 December 31, 2021 Buy Position Sell Position Net Total Buy Position Sell Position Net Total (in millions) Japanese Yen $ (5.4 ) $ 26.6 $ 21.2 $ — $ — $ — Taiwan Dollar (9.2 ) 18.3 9.1 — — — Total $ (14.6 ) $ 44.9 $ 30.3 $ — $ — $ — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Components of Convertible Senior Notes | The below tables represent the key components of Teradyne’s convertible senior notes: October 2, December 31, (in thousands) Debt principal $ 64,980 $ 116,980 Unamortized debt issuance fees (1) 189 8,554 Net Carrying amount of convertible debt $ 64,791 $ 108,426 October 2, December 31, (in thousands) Current debt $ 14,596 $ 19,182 Long-term debt 50,195 89,244 Net carrying amount of convertible debt $ 64,791 $ 108,426 For the Three Months For the Nine Months October 2, October 3, October 2, October 3, (in thousands) (in thousands) Contractual interest expense on the coupon $ 159 $ 355 $ 592 $ 2,666 Amortization of debt issuance fees recognized as interest expense (2) 43 2,424 173 9,771 Total interest expense on the convertible debt $ 202 $ 2,779 $ 765 $ 12,437 (1) Unamortized debt issuance fees as of December 31, 2021 include unamortized debt discount of $8.1 million, which was eliminated with the adoption of ASU 2020- 0 (2) Three and nine months ended October 3, 2021 includes the amortization of debt discount component, which was eliminated with the adoption of ASU 2020-06 |
Prepayments (Tables)
Prepayments (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Prepayments [Abstract] | |
Schedule of Prepayments and other assets | Prepayments consist of the following: October 2, December 31, (in thousands) Contract manufacturer and supplier prepayments $ 466,648 $ 364,478 Prepaid maintenance and other services 13,760 13,660 Prepaid taxes 12,531 15,090 Other prepayments 9,739 13,038 Total prepayments $ 502,678 $ 406,266 |
Product Warranty (Tables)
Product Warranty (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Other Accrued Liabilities | Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities. For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Balance at beginning of period $ 16,036 $ 25,676 $ 24,577 $ 16,633 Accruals for warranties issued during the period 4,930 6,641 15,460 28,719 Accruals related to pre-existing (654 ) (963 ) (5,024 ) (3,966 ) Settlements made during the period (6,181 ) (5,233 ) (20,882 ) (15,265 ) Balance at end of period $ 14,131 $ 26,121 $ 14,131 $ 26,121 |
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances | Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances. For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Balance at beginning of period $ 65,791 $ 63,525 $ 64,168 $ 51,929 Deferral of new extended warranty revenue 6,987 12,728 28,550 36,533 Recognition of extended warranty deferred revenue (10,858 ) (8,771 ) (30,798 ) (20,980 ) Balance at end of period $ 61,920 $ 67,482 $ 61,920 $ 67,482 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions | The fair value was estimated using the Monte Carlo simulation model with the following assumptions: For the Nine Months Ended October 2, October 3, Risk-free interest rate 1.4 % 0.2 % Teradyne volatility-historical 47.1 % 43.9 % NYSE Composite Index volatility-historical 22.7 % 22.9 % Dividend yield 0.4 % 0.4 % |
Fair Value of Stock Options Using Assumptions | The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Nine Months Ended October 2, October 3, Expected life (years) 4.0 5.0 Risk-free interest rate 1.6 % 0.4 % Volatility-historical 43.7 % 37.8 % Dividend yield 0.4 % 0.4 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Changes in Accumulated Other Comprehensive Income | Changes in accumulated other comprehensive income (loss), which are presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Unrealized Retirement Plans Service Credit Total (in thousands) Nine Months Ended October 2, 2022 Balance at December 31, 2021, net of tax of $0, $1,055, $0, $(1,128), respectively $ (10,818 ) $ 3,704 $ — $ 1,166 $ (5,948 ) Other comprehensive (loss) gain before reclassifications, net of tax of $0, $(3,570), $0, $0, respectively (66,258 ) (13,491 ) 537 — (79,212 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $48, $0, $(2), respectively — 386 — (5 ) 381 Net current period other comprehensive (loss) gain, net of tax of $0, $(3,522), $0, $(2), respectively (66,258 ) (13,105 ) 537 (5 ) (78,831 ) Balance at October 2, 2022, net of tax of $0, $(2,467), $0, $(1,130), respectively $ (77,076 ) $ (9,401 ) $ 537 $ 1,161 $ (84,779 ) Nine Months Ended October 3, 2021 Balance at December 31, 2020, net of tax of $0, $1,910, $0, $(1,126), respectively $ 25,389 $ 6,954 $ — $ 1,173 $ 33,516 Other comprehensive loss before reclassifications, net of tax of $0, $(516), $0, $0, respectively (26,672 ) (1,952 ) — — (28,624 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(186), $0, $(2), respectively — (670 ) — (5 ) (675 ) Net current period other comprehensive loss, net of tax of $0, $(702), $0, $(2), respectively (26,672 ) (2,622 ) — (5 ) (29,299 ) Balance at October 3, 2021, net of tax of $0, $1,208, $0, $(1,128), respectively $ (1,283 ) $ 4,332 $ — $ 1,168 $ 4,217 |
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations | Reclassifications out of accumulated other comprehensive income (loss) to the statement of operations for the three and nine months ended October 2, 2022 and October 3, 2021 were as follows: Details about Accumulated Other Comprehensive Income (Loss) Components For the Three Months Ended For the Nine Months Ended Affected Line Item in the Statements of Operations October 2, October 3, October 2, October 3, (in thousands) Available-for-sale Unrealized (losses) gains, net of tax of $11, $65, $(48 ) $ (177 ) $ 229 $ (386 ) $ 670 Other (income) Defined benefit postretirement plan: Amortization of prior service credit, net of tax of $0, $0, $2, $2, respectively 2 2 5 5 (a) Total reclassifications, net of tax of $11, $65, $46, $188, respectively $ (175 ) $ 231 $ (381 ) $ 675 Net income (a) The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note P: “Retirement Plans.” |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segments for the nine months ended October 2, 2022, were as follows: Industrial Automation Wireless Semiconductor System Test Total (in thousands) Balance at December 31, 2021 Goodwill $ 405,971 $ 361,819 $ 262,101 $ 158,699 $ 1,188,590 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) Total Goodwill 405,971 7,976 1,561 10,516 426,024 Foreign currency translation adjustment (50,126 ) — (99 ) — (50,225 ) Balance at October 2, 2022 Goodwill 355,845 361,819 262,002 158,699 1,138,365 Accumulated impairment losses — (353,843 ) (260,540 ) (148,183 ) (762,566 ) Total Goodwill $ 355,845 $ 7,976 $ 1,462 $ 10,516 $ 375,799 |
Schedule of Amortizable Intangible Assets | Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet: Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) Balance at October 2, 2022 Developed technology $ 272,547 $ (232,802 ) $ (7,620 ) $ 32,125 Customer relationships 57,739 (50,623 ) 126 7,242 Tradenames and trademarks 59,387 (40,809 ) (2,365 ) 16,213 Total intangible assets $ 389,673 $ (324,234 ) $ (9,859 ) $ 55,580 Balance, December 31, 2021 Developed technology $ 272,547 $ (223,413 ) $ (4,093 ) $ 45,041 Customer relationships 57,739 (48,921 ) 209 9,027 Tradenames and trademarks 59,387 (37,237 ) (583 ) 21,567 Total intangible assets $ 389,673 $ (309,571 ) $ (4,467 ) $ 75,635 |
Schedule of Estimated Intangible Assets Amortization Expense | Estimated intangible asset amortization expense for each of the five succeeding fiscal years and thereafter is as follows: Year Amortization Expense (in thousands) 2022 $ 4,592 2023 17,922 2024 17,617 2025 10,855 2026 2,262 Thereafter 2,332 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
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: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 183,485 $ 256,718 $ 543,200 $ 790,549 Weighted average common shares-basic 156,364 164,583 159,325 165,690 Effect of dilutive potential common shares: Convertible note hedge warrant shares (1) 8,284 9,819 9,114 9,774 Incremental shares from assumed conversion of convertible notes (2) 1,453 6,464 1,965 8,784 Restricted stock units 564 1,035 673 1,147 Stock options 45 73 56 87 Employee stock purchase plan 23 13 23 10 Dilutive potential common shares 10,369 17,404 11,831 19,802 Weighted average common shares-diluted 166,733 181,987 171,156 185,492 Net income per common share-basic $ 1.17 $ 1.56 $ 3.41 $ 4.77 Net income per common share-diluted $ 1.10 $ 1.41 $ 3.17 $ 4.26 (1) Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant 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. (2) Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes 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. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Defined Benefit Pension Plans | |
Net Periodic Pension and Postretirement Benefit Costs | For the three and nine months ended October 2, 2022 and October 3, 2021, Teradyne’s net periodic pension cost was comprised of the following: For the Three Months Ended October 2, 2022 October 3, 2021 United States Foreign United States Foreign (in thousands) Service cost $ 397 $ 153 $ 452 $ 240 Interest cost 1,222 96 1,098 86 Expected return on plan assets (732 ) (16 ) (936 ) (17 ) Total net periodic pension cost $ 887 $ 233 $ 614 $ 309 For the Nine Months Ended October 2, 2022 October 3, 2021 United States Foreign United States Foreign (in thousands) Service cost $ 1,191 $ 539 $ 1,357 $ 720 Interest cost 3,665 333 3,295 257 Expected return on plan assets (2,195 ) (54 ) (2,809 ) (50 ) Net actuarial gain (45 ) — (400 ) — Total net periodic pension cost $ 2,616 $ 818 $ 1,443 $ 927 |
Postretirement Benefit Plans | |
Net Periodic Pension and Postretirement Benefit Costs | For the three and nine months ended October 2, 2022 and October 3, 2021, Teradyne’s net periodic postretirement benefit cost (credit) was comprised of the following: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Service cost $ 16 $ 16 $ 48 $ 48 Interest cost 44 43 132 128 Amortization of prior service credit (2 ) (2 ) (7 ) (7 ) Net actuarial loss (gain) — — 54 (228 ) Total net periodic postretirement benefit cost (credit) $ 58 $ 57 $ 227 $ (59 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Reconciliation of Effective Tax Rate | A reconciliation of the United States federal statutory corporate tax rate to Teradyne’s effective tax rate was as follows: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, U.S. statutory federal tax rate 21.0 % 21.0 % 21.0 % 21.0 % Non-deductible 1.8 0.8 1.4 0.8 Foreign taxes (0.7 ) (4.4 ) (2.4 ) (4.4 ) Tax credits (2.1 ) (1.9 ) (1.9 ) (1.4 ) International provisions of the U.S. Tax Cuts and Jobs Act of 2017 (1.4 ) (1.5 ) (1.2 ) (1.6 ) Discrete benefit related to equity compensation (0.1 ) (0.1 ) (1.9 ) (1.6 ) Other, net 0.4 (0.1 ) 0.8 (0.1 ) Effective tax rate 18.9 % 13.8 % 15.8 % 12.7 % |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 02, 2022 | |
Segment Information | Segment information for the three and nine months ended October 2, 2022 and October 3, 2021 is as follows: Semiconductor Test System Test Industrial Automation Wireless Test Corporate and Eliminations Consolidated (in thousands) Three Months Ended October 2, 2022 Revenues $ 575,704 $ 116,154 $ 89,067 $ 46,148 $ — $ 827,073 Income (loss) before income taxes (1)(2) 182,625 40,201 (3,992 ) 12,647 (5,284 ) 226,197 Total assets (3) 1,366,478 192,684 614,558 110,484 1,035,702 3,319,906 Three Months Ended October 3, 2021 Revenues $ 688,232 $ 102,605 $ 91,014 $ 68,713 $ (63 ) $ 950,501 Income (loss) before income taxes (1)(2) 265,017 31,773 (4,226 ) 31,726 (26,535 ) 297,755 Total assets (3) 1,251,549 147,970 696,792 119,568 1,546,303 3,762,182 Nine Months Ended October 2, 2022 Revenues $ 1,599,392 $ 369,525 $ 292,772 $ 161,520 $ — $ 2,423,209 Income (loss) before income taxes (1)(2) 510,112 135,566 (15,496 ) 56,659 (41,693 ) 645,148 Total assets (3) 1,366,478 192,684 614,558 110,484 1,035,702 3,319,906 Nine Months Ended October 3, 2021 Revenues $ 2,050,271 $ 340,261 $ 263,151 $ 164,504 $ (352 ) $ 2,817,835 Income (loss) before income taxes (1)(2) 778,687 116,788 (14,586 ) 63,810 (38,925 ) 905,774 Total assets (3) 1,251,549 147,970 696,792 119,568 1,546,303 3,762,182 (1) Included in Corporate and Eliminations are: legal and environmental fees, contingent consideration fair value adjustments, interest income, interest expense, severance charges, net foreign exchange gains (losses), acquisition related charges and compensation, pension, intercompany eliminations and for the three and nine months ended October 3, 2021, loss on convertible debt conversions. (2) Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and, for the three and nine months ended October 3, 2021, loss on convertible debt conversions. (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 operations: For the Three Months Ended For the Nine Months Ended October 2, October 3, October 2, October 3, (in thousands) Semiconductor Test: Cost of revenues—inventory charge $ 10,829 $ 3,725 $ 13,144 $ 4,959 Industrial Automation: Restructuring and other—employee severance $ 1,074 $ — $ 1,616 $ 965 Cost of revenues—inventory charge — 3,656 1,411 4,941 Restructuring and other—acquisition related expenses and compensation — — — 825 Wireless: Cost of revenues—inventory charge $ 966 $ 679 $ 3,942 $ 1,351 System Test: Cost of revenues—inventory charge $ — $ — $ — $ 524 Corporate and Eliminations: Restructuring and other—other $ 700 $ — $ 2,700 $ 1,846 Restructuring and other—legal settlement charge — — 14,700 — Other (income) expense, net—loss on convertible debt conversions — 20,153 — 25,397 Restructuring and other—AutoGuide contingent consideration adjustment — — — (7,227 ) Restructuring and other—acquisition related expenses and compensation — — — (513 ) |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Oct. 02, 2022 | Dec. 31, 2021 |
Summary Of Significant Accounting Policies [Line Items] | |||
Debt | $ 50,195 | $ 89,244 | |
Retained earnings | 572,652 | 736,566 | |
Mezzanine equity | 1,512 | ||
Additional paid-in capital | $ 1,746,779 | $ 1,811,545 | |
Increase Decrease in deferred tax assets | $ 1,800 | ||
Teradyne Member [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Current debt, | 1,400 | ||
Debt | 6,600 | ||
Retained earnings | 94,600 | ||
Mezzanine equity | 100,800 | ||
Additional paid-in capital | 100,800 | ||
Teradyne Member [Member] | Accounting Standards Update 2020-06 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Mezzanine equity | $ 0 |
Investment In Other Company - A
Investment In Other Company - Additional Information (Details) - MachineMetrics, Inc [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 02, 2022 | Oct. 02, 2022 | Jun. 01, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Long-term Investments | $ 12 | $ 12 | $ 12 |
Unrealized Gain (Loss) on Investments | $ 0 | $ 0 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Deferred Revenue And Customer Advances | $ 27.1 | $ 32.9 | $ 87.3 | $ 82.5 |
Deferred Revenue and Trade Accounts Receivable | 15.9 | $ 66.9 | 73 | $ 81.7 |
Revenue, Remaining Performance Obligation, Amount | $ 1,506 | $ 1,506 | ||
Short-term Contract with Customer [Member] | ||||
Revenue, Remaining Performance Obligation, Percentage | 88% | 88% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 12 months | |||
Long-term Contract with Customer [Member] | ||||
Revenue, Remaining Performance Obligation, Percentage | 12% | 12% | ||
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 | 3 Months Ended | 9 Months Ended | |||||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | ||||
Disaggregation of Revenue [Line Items] | |||||||
Total | $ 827,073 | [1] | $ 950,501 | [1] | $ 2,423,209 | [2] | $ 2,817,835 |
Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 575,704 | 688,232 | 1,599,392 | 2,050,271 | |||
System Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 116,154 | [1] | 102,605 | [1] | 369,525 | [2] | 340,261 |
Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 89,067 | 91,014 | 292,772 | 263,151 | |||
Wireless Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 46,148 | [1] | 68,713 | [1] | 161,520 | [2] | 164,504 |
Corporate and Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 0 | [1] | (63) | [1] | 0 | [2] | (352) |
Point in Time | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 724,202 | [1] | 856,287 | [1] | 2,137,154 | [2] | 2,546,734 |
Point in Time | System Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 93,248 | [1] | 88,155 | [1] | 317,230 | [2] | 295,666 |
Point in Time | Wireless Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 42,885 | [1] | 65,409 | [1] | 152,079 | [2] | 154,908 |
Point in Time | Corporate and Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 0 | [1] | (63) | [1] | 0 | [2] | (352) |
Over Time | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 102,871 | [1] | 94,214 | [1] | 286,055 | [2] | 271,101 |
Over Time | System Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 22,906 | [1] | 14,450 | [1] | 52,295 | [2] | 44,595 |
Over Time | Wireless Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 3,263 | [1] | 3,304 | [1] | 9,441 | [2] | 9,596 |
Over Time | Corporate and Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 0 | [1] | 0 | [1] | 0 | [2] | 0 |
Americas | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 114,586 | [1] | 105,999 | [1] | 345,914 | [2] | 287,475 |
Americas | System Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 35,865 | [1] | 34,560 | [1] | 105,884 | [2] | 98,475 |
Americas | Wireless Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 9,481 | [1] | 11,352 | [1] | 36,628 | [2] | 24,228 |
Americas | Corporate and Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 0 | [1] | (63) | [1] | 0 | [2] | (352) |
Europe, Middle East and Africa | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 60,370 | [1] | 74,711 | [1] | 206,449 | [2] | 189,291 |
Europe, Middle East and Africa | System Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 6,521 | [1] | 5,288 | [1] | 20,506 | [2] | 18,279 |
Europe, Middle East and Africa | Wireless Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 2,247 | [1] | 3,017 | [1] | 11,420 | [2] | 6,598 |
Europe, Middle East and Africa | Corporate and Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 0 | [1] | 0 | [1] | 0 | [2] | 0 |
Asia Pacific | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 652,117 | [1] | 769,791 | [1] | 1,870,846 | [2] | 2,341,069 |
Asia Pacific | System Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 73,768 | [1] | 62,757 | [1] | 243,135 | [2] | 223,507 |
Asia Pacific | Wireless Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 34,420 | [1] | 54,344 | [1] | 113,472 | [2] | 133,678 |
Asia Pacific | Corporate and Eliminations | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 0 | [1] | 0 | [1] | 0 | [2] | 0 |
SOC | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 450,415 | [1] | 575,017 | [1] | 1,296,463 | [2] | 1,736,917 |
SOC | Point in Time | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 383,801 | [1] | 508,747 | [1] | 1,102,467 | [2] | 1,548,895 |
SOC | Over Time | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 66,614 | [1] | 66,270 | [1] | 193,996 | [2] | 188,022 |
SOC | Americas | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 31,719 | [1] | 29,119 | [1] | 90,148 | [2] | 71,562 |
SOC | Europe, Middle East and Africa | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 19,373 | [1] | 26,012 | [1] | 52,716 | [2] | 47,238 |
SOC | Asia Pacific | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 399,323 | [1] | 519,886 | [1] | 1,153,599 | [2] | 1,618,117 |
Memory | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 125,289 | [1] | 113,215 | [1] | 302,929 | [2] | 313,354 |
Memory | Point in Time | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 117,943 | [1] | 105,454 | [1] | 281,456 | [2] | 291,578 |
Memory | Over Time | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 7,346 | [1] | 7,761 | [1] | 21,473 | [2] | 21,776 |
Memory | Americas | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 2,129 | [1] | 2,281 | [1] | 6,727 | [2] | 9,373 |
Memory | Europe, Middle East and Africa | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 321 | [1] | 572 | [1] | 1,216 | [2] | 2,419 |
Memory | Asia Pacific | Semiconductor Test | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 122,839 | [1] | 110,362 | [1] | 294,986 | [2] | 301,562 |
Universal Robots (UR) | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 73,362 | [1] | 77,750 | [1] | 240,620 | [2] | 219,428 |
Universal Robots (UR) | Point in Time | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 71,300 | [1] | 76,008 | [1] | 234,352 | [2] | 214,427 |
Universal Robots (UR) | Over Time | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 2,062 | [1] | 1,742 | [1] | 6,268 | [2] | 5,001 |
Universal Robots (UR) | Americas | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 26,515 | [1] | 23,429 | [1] | 81,857 | [2] | 66,390 |
Universal Robots (UR) | Europe, Middle East and Africa | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 27,997 | [1] | 34,667 | [1] | 103,935 | [2] | 97,507 |
Universal Robots (UR) | Asia Pacific | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 18,850 | [1] | 19,654 | [1] | 54,828 | [2] | 55,531 |
MiR | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 15,705 | [1] | 13,264 | [1] | 52,152 | [2] | 43,723 |
MiR | Point in Time | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 15,025 | [1] | 12,577 | [1] | 49,570 | [2] | 41,612 |
MiR | Over Time | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 680 | [1] | 687 | [1] | 2,582 | [2] | 2,111 |
MiR | Americas | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 8,877 | [1] | 5,321 | [1] | 24,670 | [2] | 17,799 |
MiR | Europe, Middle East and Africa | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | 3,911 | [1] | 5,155 | [1] | 16,656 | [2] | 17,250 |
MiR | Asia Pacific | Industrial Automation | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total | $ 2,917 | [1] | $ 2,788 | [1] | $ 10,826 | [2] | $ 8,674 |
[1]Includes $3.8 million and $3.8 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”[2]Includes $11.1 million and $11.1 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers.” |
Disaggregated Revenue by Prim_2
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Accounting Policies [Abstract] | ||||
Revenue on leases | $ 1.8 | $ 3.8 | $ 5.9 | $ 11.1 |
Deferred Revenue and Customer A
Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 02, 2022 | Dec. 31, 2021 | Oct. 03, 2021 | Jul. 03, 2021 | Dec. 31, 2020 |
Deferred Revenue Arrangement | ||||||
Maintenance, service and training | $ 76,310 | $ 81,826 | ||||
Extended warranty | 61,920 | $ 65,791 | 64,168 | $ 67,482 | $ 63,525 | $ 51,929 |
Customer advances, undelivered elements and other | 53,849 | 55,112 | ||||
Total deferred revenue and customer advances | $ 192,079 | $ 201,106 |
Composition of Inventories, Net
Composition of Inventories, Net (Detail) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 228,762 | $ 155,641 |
Work-in-process | 42,093 | 37,740 |
Finished goods | 39,899 | 49,949 |
Inventories, net | $ 310,754 | $ 243,330 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Oct. 02, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Inventory reserves | $ 124.8 | $ 114.1 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 25, 2022 | Oct. 03, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Dec. 31, 2021 | |
Financial Instruments and Fair Value [Line Items] | |||||||
Available-for-sale securities, realized gain | $ 0.1 | $ 0.5 | $ 0.6 | $ 2.6 | |||
Fair market value of investments with unrealized losses greater than one year | 28 | 28 | $ 6.5 | ||||
Fair market value of investments with unrealized losses less than one year | 99.7 | 99.7 | 85.4 | ||||
Unrealized Gain (loss) on contracts | 1.6 | 1 | 9.5 | 1.3 | |||
Equity securities unrealized gain | 0 | 0 | 3.3 | ||||
Equity securities unrealized loss | 2.3 | 0.4 | 11.1 | 1.1 | |||
Available For Sale Securities Gross Realized Loss | 0.3 | $ 0 | 0.9 | $ 0 | |||
Cash Flow Hedging [Member] | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Other comprehensive income (Loss), cash flow hedge, gain (loss), before reclassification, after tax | 0.5 | ||||||
Debt Mutual Funds | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Available for sale securities with out contractual maturity date | $ 6.4 | $ 6.4 | |||||
TER Auto Guide Llc [Member] | Dispute In Respect Of Contingent Consideration [Member] | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Litigation Settlement, Amount settled between parties | $ 26.7 | ||||||
Foreign Exchange Contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Unrealized Gain (loss) on contracts | $ (1.1) | $ (0.1) |
Schedule of Fair Value of Finan
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 141,776 | $ 338,836 |
U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 65,354 | 77,789 |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 45,864 | 56,901 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 17,719 | 189,620 |
Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 1,205 | 1,356 |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 4,681 | 4,610 |
Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 6,441 | 7,971 |
Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 512 | 589 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 887,095 | 1,500,288 |
Derivative assets | 546 | 92 |
Total | 887,641 | 1,500,380 |
Derivative liabilities | 1,106 | 118 |
Total | 1,106 | 118 |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 464,744 | 628,740 |
Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 246,002 | 493,459 |
Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 65,354 | 77,789 |
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 45,864 | 56,901 |
Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 17,719 | 189,620 |
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 | 1,205 | 1,356 |
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 4,681 | 4,610 |
Fair Value, Measurements, Recurring | Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 6,441 | 7,971 |
Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 512 | 589 |
Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | 34,573 | 39,253 |
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 | 557,001 | 1,088,176 |
Derivative assets | 0 | 0 |
Total | 557,001 | 1,088,176 |
Derivative liabilities | 0 | 0 |
Total | 0 | 0 |
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 | 464,744 | 628,740 |
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 | 51,243 | 412,212 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | 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 | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
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 | 6,441 | 7,971 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | 34,573 | 39,253 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 330,094 | 412,112 |
Derivative assets | 546 | 92 |
Total | 330,640 | 412,204 |
Derivative liabilities | 1,106 | 118 |
Total | 1,106 | 118 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
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 | 194,759 | 81,247 |
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 | 65,354 | 77,789 |
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 | 45,864 | 56,901 |
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 | 17,719 | 189,620 |
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 | 1,205 | 1,356 |
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 | 4,681 | 4,610 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
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 | 512 | 589 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 0 | 0 |
Derivative assets | 0 | 0 |
Total | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | 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 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | $ 0 | $ 0 |
Schedule of Reported Financial
Schedule of Reported Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 887,641 | $ 1,500,380 |
Liabilities | 1,106 | 118 |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 1,106 | 118 |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 710,746 | 1,122,199 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 65,310 | 244,231 |
Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 111,039 | 133,858 |
Prepayments and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 546 | 92 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 557,001 | 1,088,176 |
Liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 0 | 0 |
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 | 515,987 | 1,040,952 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 0 | 0 |
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 | 41,014 | 47,224 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Prepayments and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 330,640 | 412,204 |
Liabilities | 1,106 | 118 |
Significant Other Observable Inputs (Level 2) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 1,106 | 118 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 194,759 | 81,247 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 65,310 | 244,231 |
Significant Other Observable Inputs (Level 2) | Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 70,025 | 86,634 |
Significant Other Observable Inputs (Level 2) | Prepayments and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 546 | 92 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Prepayments and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 0 | $ 0 |
Schedule of Changes in Fair Val
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Balance at beginning of period | $ 0 | $ 0 | $ 0 | $ 7,227 | |
Fair value adjustment | [1] | 0 | 0 | 0 | (7,227) |
Balance at end of period | $ 0 | $ 0 | $ 0 | $ 0 | |
[1]In the nine months ended October 3, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. |
Schedule of Changes in Fair V_2
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Increase (decrease) in contingent consideration | $ 0 | $ (7,227) |
Autoguide LLC [Member] | Dispute In Respect Of Contingent Consideration [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Increase (decrease) in contingent consideration | $ 7,200 |
Schedule of Carrying Amounts an
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Marketable securities | $ 141,776 | $ 338,836 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and cash equivalents | 710,746 | 1,122,199 |
Marketable securities | 176,349 | 378,089 |
Derivative assets | 546 | 92 |
Derivative liabilities | 1,106 | 118 |
Convertible debt | 64,791 | 108,426 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and cash equivalents | 710,746 | 1,122,199 |
Marketable securities | 176,349 | 378,089 |
Derivative assets | 546 | 92 |
Derivative liabilities | 1,106 | 118 |
Convertible debt | $ 154,486 | $ 604,648 |
Schedule of Available for Sale
Schedule of Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 153,619 | $ 334,077 |
Available-for-sale marketable securities, Unrealized Gain | 36 | 5,477 |
Available-for-sale marketable securities, Unrealized (Loss) | (11,879) | (718) |
Available-for-sale marketable securities, Fair Market Value | 141,776 | 338,836 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 127,715 | 91,937 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 69,598 | 77,707 |
Available-for-sale marketable securities, Unrealized Gain | 0 | 551 |
Available-for-sale marketable securities, Unrealized (Loss) | (4,244) | (470) |
Available-for-sale marketable securities, Fair Market Value | 65,354 | 77,789 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 65,354 | 46,435 |
Commercial Paper | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 17,691 | 189,614 |
Available-for-sale marketable securities, Unrealized Gain | 35 | 15 |
Available-for-sale marketable securities, Unrealized (Loss) | (7) | (9) |
Available-for-sale marketable securities, Fair Market Value | 17,719 | 189,620 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 8,983 | 22,784 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 52,926 | 52,266 |
Available-for-sale marketable securities, Unrealized Gain | 1 | 4,863 |
Available-for-sale marketable securities, Unrealized (Loss) | (7,063) | (227) |
Available-for-sale marketable securities, Fair Market Value | 45,864 | 56,901 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 45,622 | 19,422 |
Certificates of Deposit and Time Deposits | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 1,205 | 1,356 |
Available-for-sale marketable securities, Fair Market Value | 1,205 | 1,356 |
U.S. Government Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 4,790 | 4,617 |
Available-for-sale marketable securities, Unrealized Gain | 5 | |
Available-for-sale marketable securities, Unrealized (Loss) | (109) | (12) |
Available-for-sale marketable securities, Fair Market Value | 4,681 | 4,610 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 4,681 | 3,296 |
Debt Mutual Funds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 6,897 | 7,928 |
Available-for-sale marketable securities, Unrealized Gain | 43 | |
Available-for-sale marketable securities, Unrealized (Loss) | (456) | |
Available-for-sale marketable securities, Fair Market Value | 6,441 | 7,971 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 3,075 | |
Non-U.S. Government Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 512 | 589 |
Available-for-sale marketable securities, Fair Market Value | $ 512 | $ 589 |
Schedule Of Foreign Currency Ca
Schedule Of Foreign Currency Cash Flow Hedges (Details) - USD ($) $ in Millions | Oct. 02, 2022 | Dec. 31, 2021 |
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Asset, Notional Amount | $ 13.4 | $ 41 |
Japan, Yen | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Liability, Notional amounts | (37.5) | (31.4) |
Taiwan, New Dollars | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Liability, Notional amounts | (35.2) | (35.1) |
Short [Member] | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Asset, Notional Amount | 66.3 | 113.5 |
Long [Member] | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Liability, Notional amounts | (79.7) | (72.5) |
Long [Member] | Japan, Yen | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Liability, Notional amounts | (37.5) | (31.4) |
Long [Member] | Taiwan, New Dollars | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Liability, Notional amounts | (35.2) | (35.1) |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative, Notional Amount | 30.3 | 0 |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Japan, Yen | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative, Notional Amount | 21.2 | 0 |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Taiwan, New Dollars | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative, Notional Amount | 9.1 | 0 |
Foreign Exchange Forward [Member] | Short [Member] | Cash Flow Hedging [Member] | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Asset, Notional Amount | 44.9 | 0 |
Foreign Exchange Forward [Member] | Short [Member] | Cash Flow Hedging [Member] | Japan, Yen | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Asset, Notional Amount | 26.6 | 0 |
Foreign Exchange Forward [Member] | Short [Member] | Cash Flow Hedging [Member] | Taiwan, New Dollars | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Asset, Notional Amount | 18.3 | 0 |
Foreign Exchange Forward [Member] | Long [Member] | Cash Flow Hedging [Member] | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Liability, Notional amounts | (14.6) | 0 |
Foreign Exchange Forward [Member] | Long [Member] | Cash Flow Hedging [Member] | Japan, Yen | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Liability, Notional amounts | (5.4) | 0 |
Foreign Exchange Forward [Member] | Long [Member] | Cash Flow Hedging [Member] | Taiwan, New Dollars | ||
Schedule of Foreign Currency Cash Flow Hedges [Line Items] | ||
Derivative Liability, Notional amounts | $ (9.2) | $ 0 |
Schedule of Reported Available
Schedule of Reported Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 153,619 | $ 334,077 |
Available-for-sale marketable securities, Unrealized Gain | 36 | 5,477 |
Available-for-sale marketable securities, Unrealized (Loss) | (11,879) | (718) |
Available-for-sale marketable securities, Fair Market Value | 141,776 | 338,836 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 127,715 | 91,937 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 65,744 | 244,213 |
Available-for-sale marketable securities, Unrealized Gain | 35 | 64 |
Available-for-sale marketable securities, Unrealized (Loss) | (469) | (46) |
Available-for-sale marketable securities, Fair Market Value | 65,310 | 244,231 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 55,369 | 54,798 |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 87,875 | 89,864 |
Available-for-sale marketable securities, Unrealized Gain | 1 | 5,413 |
Available-for-sale marketable securities, Unrealized (Loss) | (11,410) | (672) |
Available-for-sale marketable securities, Fair Market Value | 76,466 | 94,605 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $ 72,346 | $ 37,139 |
Contractual Maturities of Inves
Contractual Maturities of Investments in Debt Securities Held (Detail) $ in Thousands | Oct. 02, 2022 USD ($) |
Schedule of Available-for-sale Securities | |
Due within one year, cost | $ 65,744 |
Due after 1 year through 5 years, cost | 35,934 |
Due after 5 years through 10 years, cost | 4,800 |
Due after 10 years, cost | 40,244 |
Total, cost | 146,722 |
Due within one year, fair market value | 65,310 |
Due after 1 year through 5 years, fair market value | 34,116 |
Due after 5 years through 10 years, fair market value | 4,209 |
Due after 10 years, fair maket value | 31,700 |
Total, fair market value | $ 135,335 |
Schedule of Notional Amount of
Schedule of Notional Amount of Derivatives (Detail) - USD ($) $ in Millions | Oct. 02, 2022 | Dec. 31, 2021 |
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | $ 13.4 | $ 41 |
Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (79.7) | (72.5) |
Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 66.3 | 113.5 |
Japanese Yen | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (37.5) | (31.4) |
Japanese Yen | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (37.5) | (31.4) |
Taiwan Dollar | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (35.2) | (35.1) |
Taiwan Dollar | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (35.2) | (35.1) |
Korean Won | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (5.4) | (4.2) |
Korean Won | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (5.4) | (4.2) |
British Pound Sterling | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (1.1) | (1.8) |
British Pound Sterling | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (1.1) | (1.8) |
Danish Krone | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (0.5) | |
Danish Krone | Buy Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Liability, Notional amounts | (0.5) | |
Singapore Dollar | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 24.4 | 61.9 |
Singapore Dollar | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 24.4 | 61.9 |
Euro | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 36.7 | 44.9 |
Euro | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 36.7 | 44.9 |
Philippines, Pesos | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 2.8 | 3.9 |
Philippines, Pesos | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 2.8 | 3.9 |
China, Yuan Renminbi | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | 2.4 | 2.8 |
China, Yuan Renminbi | Sell Position | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Derivative Asset, Notional amounts | $ 2.4 | $ 2.8 |
Schedule of Derivative Instrume
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value (Detail) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets (liabilities), net | $ (560) | $ (26) |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Prepayments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 9 | 92 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (1,106) | $ (118) |
Designated as Hedging Instrument [Member] | Foreign currency forward contracts | Prepayments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 537 |
Schedule of Effect of Derivativ
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 1,246 | $ 2,288 | $ (2,209) | $ 5,937 |
Other (income) expense, net | Not Designated as Hedging Instrument [Member] | Foreign Exchange Option [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Losses (Gains) on derivatives recognized in statements of operations | 1,246 | 2,288 | (2,209) | 5,937 |
Sales [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Option [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 0 | $ 0 | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands, shares in Millions | 9 Months Ended | ||||||||
Nov. 04, 2022 USD ($) | May 01, 2020 USD ($) | Dec. 12, 2016 USD ($) Day $ / shares shares | Oct. 02, 2022 USD ($) $ / shares shares | Oct. 03, 2021 USD ($) shares | Oct. 05, 2022 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Instrument | |||||||||
Repurchase of common stock | $ 750,000 | $ 406,180 | |||||||
Repurchase of stock, shares | shares | 7.2 | 3.3 | |||||||
Trading days measurement period | Day | 5 | ||||||||
Debt issuance costs, amortization period | 7 years | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000 | ||||||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 200,000 | ||||||||
Line of Credit Facility, Interest Rate Description | The interest rate applicable to loans under the Credit Facility are, at Teradyne’s option, equal to either a base rate plus a margin ranging from 0.00% to 0.75% per annum or SOFR plus a margin ranging from 1.10% to 1.85% per annum, based on the consolidated leverage ratio of Teradyne. In addition, Teradyne will pay a commitment fee on the unused portion of the commitments under the Credit Facility ranging from 0.15% to 0.25% per annum, based on the then applicable consolidated leverage ratio. | ||||||||
Term of revolving credit facility | 3 years | ||||||||
Current debt, Conversion | 14,596 | $ 19,182 | |||||||
Mezzanine equity | 1,512 | ||||||||
Convertible common shares | 52,000 | ||||||||
Debt | 50,195 | 89,244 | |||||||
Retained earnings | 572,652 | 736,566 | |||||||
Long Term Debt Maturities Repayments Of Principal Interest Payments In Next Twelve Months | 600 | ||||||||
Long Term Debt Maturities Repayments Of Principal Intereat Payments Thereafter | $ 300 | ||||||||
Available Incremental Amount Under The Credit Facility Not To Exceed Percentage Of Consolidated EBIDTA | 15% | ||||||||
Convertible Common Shares [Member] | |||||||||
Debt Instrument | |||||||||
Mezzanine equity | $ 14,600 | ||||||||
Shares Issued, Stock Options Exercised | 1,200 | ||||||||
Subsequent Event [Member] | |||||||||
Debt Instrument | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 0 | ||||||||
Subsequent Event [Member] | Amended Credit Agreement [Member] | |||||||||
Debt Instrument | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000 | ||||||||
Collateral Pledged [Member] | |||||||||
Debt Instrument | |||||||||
Line of Credit Facility, Interest Rate Description | 65 | ||||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | |||||||||
Debt Instrument | |||||||||
Aggregate principal amount | $ 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 | ||||||||
Debt instrument, frequency of periodic payment | payable semiannually in arrears on June 15 and December 15 of each year. | ||||||||
Debt instrument, date of first required payment | Mar. 31, 2017 | ||||||||
Debt instrument, conversion option expiration date | Sep. 15, 2023 | ||||||||
Consecutive trading days measurement period | Day | 5 | ||||||||
Debt instrument conversion price | $ / shares | $ 31.47 | $ 31.47 | |||||||
Shares that would be issued upon conversion | shares | 14.6 | ||||||||
Strike price per share of warrant | $ / shares | $ 39.5 | ||||||||
Debt instrument, convertible, carrying amount of equity component | $ 100,800 | ||||||||
Debt issuance fees | $ 200 | ||||||||
Value of notes converted | $ 155,200 | ||||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Subsequent Event [Member] | |||||||||
Debt Instrument | |||||||||
Debt instrument conversion converted instrument amount | $ 401,800 | ||||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Conversion option one | |||||||||
Debt Instrument | |||||||||
Trading days measurement period | Day | 20 | ||||||||
Consecutive trading days measurement period | Day | 30 | ||||||||
Percentage of conversion price | 130% | ||||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Conversion option two | |||||||||
Debt Instrument | |||||||||
Aggregate principal amount | $ 1,000 | ||||||||
Percentage of closing sale price of common stock and conversion rate product | 98% | ||||||||
Teradyne [Member] | |||||||||
Debt Instrument | |||||||||
Current debt, Conversion | $ 1,400 | ||||||||
Mezzanine equity | 100,800 | ||||||||
Debt | 6,600 | ||||||||
Retained earnings | 94,600 | ||||||||
Teradyne [Member] | Accounting Standards Update 2020-06 [Member] | |||||||||
Debt Instrument | |||||||||
Deferred Tax Assets | 1,800 | ||||||||
Teradyne [Member] | Accounting Standards Update 2020-06 [Member] | Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | |||||||||
Debt Instrument | |||||||||
Mezzanine equity | $ 0 |
Components of Convertible Senio
Components of Convertible Senior Notes (Detail) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
Current debt | $ 14,596 | $ 19,182 |
Long-term debt | 50,195 | 89,244 |
Net carrying amount of convertible debt | 64,791 | 108,426 |
Convertible Senior Notes [Member] | ||
Debt Instrument | ||
Debt principal | 64,980 | 116,980 |
Unamortized debt issuance fees | 189 | 8,554 |
Net carrying amount of convertible debt | $ 64,791 | $ 108,426 |
Interest Expense on Convertible
Interest Expense on Convertible Senior Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Debt Instrument | ||||
Contractual interest expense on the coupon | $ 159 | $ 355 | $ 592 | $ 2,666 |
Amortization of debt issuance fees recognized as interest expense | 43 | 2,424 | 173 | 9,771 |
Total interest expense on the convertible debt | $ 202 | $ 2,779 | $ 765 | $ 12,437 |
Interest Expense on Convertib_2
Interest Expense on Convertible Senior Notes (Parenthetical) (Detail) $ in Millions | Dec. 31, 2021 USD ($) |
Debt Instrument [Line Items] | |
Unamortized debt discount | $ 8.1 |
Prepayments (Detail)
Prepayments (Detail) - USD ($) $ in Thousands | Oct. 02, 2022 | Dec. 31, 2021 |
Prepaid And Other Current Assets [Line Items] | ||
Contract manufacturer and supplier prepayments | $ 466,648 | $ 364,478 |
Prepaid maintenance and other services | 13,760 | 13,660 |
Prepaid taxes | 12,531 | 15,090 |
Other prepayments | 9,739 | 13,038 |
Total prepayments | $ 502,678 | $ 406,266 |
Product Warranty (Detail)
Product Warranty (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Product Warranty Liability [Line Items] | ||||
Balance at beginning of period | $ 16,036 | $ 25,676 | $ 24,577 | $ 16,633 |
Accruals for warranties issued during the period | 4,930 | 6,641 | 15,460 | 28,719 |
Accruals related to pre-existing warranties | (654) | (963) | (5,024) | (3,966) |
Settlements made during the period | (6,181) | (5,233) | (20,882) | (15,265) |
Balance at end of period | $ 14,131 | $ 26,121 | $ 14,131 | $ 26,121 |
Extended Product Warranty of Sh
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Product Warranty Liability [Line Items] | ||||
Balance at beginning of period | $ 65,791 | $ 63,525 | $ 64,168 | $ 51,929 |
Deferral of new extended warranty revenue | 6,987 | 12,728 | 28,550 | 36,533 |
Recognition of extended warranty deferred revenue | (10,858) | (8,771) | (30,798) | (20,980) |
Balance at end of period | $ 61,920 | $ 67,482 | $ 61,920 | $ 67,482 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Oct. 03, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock price | $ 112.12 | $ 112.12 | $ 113.48 | $ 113.48 |
Stock Options | Measurement Input, Expected Dividend Payment [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Estimated annual dividend amount per share | $ 0.44 | 0.4 | ||
Restricted Stock Units | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Period of stock granted to employees and executive officers vest in equal annual installments | 4 years | |||
Percentage of awards vesting on the first anniversary of grant date | 100% | |||
Restricted Stock Units | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Period of stock granted to employees and executive officers vest in equal annual installments | 1 year | |||
TSR Performance-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total shareholder return performance measurement period | 3 years | |||
Minimum age of retirement to be eligible for PRSUs | 60 years | |||
Minimum years of service for retirement to be eligible for PRSUs | 10 years | |||
Restricted stock unit awards granted | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 101.06 | 125.02 | ||
Stock price | $ 112.12 | $ 112.12 | 113.48 | 113.48 |
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 | 0% | |||
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 | 200% | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Percentage of common stock price paid | 100% | |||
PBIT Performance-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock unit awards granted | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 110.84 | $ 113.65 | ||
Service-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 | $ 0.44 | $ 0.4 | ||
Service-Based Restricted Stock Units | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock unit awards granted | 0.4 | 0.3 | ||
Weighted average grant date fair value of restricted stock units granted | $ 110.34 | $ 113.76 | ||
Service-Based Restricted Stock Units | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock unit awards granted | 0.1 | |||
Service-Based Restricted Stock Units | Non Employee Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock unit awards granted | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 106.91 | 127.77 | ||
Service Based Stock Options | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Weighted average grant date fair value of restricted stock units granted | $ 39.01 | $ 36.6 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions (Detail) | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
New York Stock Exchange Composite Index | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected historical volatility | 22.70% | 22.90% |
TSR Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Risk-free interest rate | 1.40% | 0.20% |
Expected historical volatility | 47.10% | 43.90% |
Dividend yield | 0.40% | 0.40% |
Schedule of Estimated Fair Va_2
Schedule of Estimated Fair Value of Stock Options Grant Using Black Scholes Option Pricing Model (Detail) - Stock Options | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected life (years) | 4 years | 5 years |
Risk-free interest rate | 1.60% | 0.40% |
Volatility-historical | 43.70% | 37.80% |
Dividend yield | 0.40% | 0.40% |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 02, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Oct. 03, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance | $ 2,298,596 | $ 2,493,256 | $ 2,562,444 | $ 2,207,018 | ||||
Other comprehensive (loss) income | (31,820) | (11,105) | (78,831) | (29,299) | ||||
Balance | $ 2,254,125 | 2,254,125 | $ 2,537,493 | 2,537,493 | $ 2,254,125 | 2,254,125 | $ 2,537,493 | 2,537,493 |
Foreign Currency Translation Reclassification Adjustments | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance | (10,818) | 25,389 | ||||||
Other comprehensive (loss) gain before reclassifications, net of tax | (66,258) | (26,672) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | ||||||
Other comprehensive (loss) income | (66,258) | (26,672) | ||||||
Balance | (77,076) | (77,076) | (1,283) | (1,283) | (77,076) | (77,076) | (1,283) | (1,283) |
Unrealized Gains (Losses) on Marketable Securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance | 3,704 | 6,954 | ||||||
Other comprehensive (loss) gain before reclassifications, net of tax | (13,491) | (1,952) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 386 | (670) | ||||||
Other comprehensive (loss) income | (13,105) | (2,622) | ||||||
Balance | (9,401) | (9,401) | 4,332 | 4,332 | (9,401) | (9,401) | 4,332 | 4,332 |
Unrealized Gains on Cash Flow Hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance | 0 | 0 | ||||||
Other comprehensive (loss) gain before reclassifications, net of tax | 537 | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | ||||||
Other comprehensive (loss) income | 537 | 0 | ||||||
Balance | 537 | 537 | 0 | 0 | 537 | 537 | 0 | 0 |
Retirement Plans Prior Service Credit | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance | 1,166 | 1,173 | ||||||
Other comprehensive (loss) gain before reclassifications, net of tax | 0 | 0 | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (2) | (2) | (5) | (5) | (5) | (5) | ||
Other comprehensive (loss) income | (5) | (5) | ||||||
Balance | 1,161 | 1,161 | 1,168 | 1,168 | 1,161 | 1,161 | 1,168 | 1,168 |
Accumulated Other Comprehensive Income (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Balance | (52,959) | 15,322 | (5,948) | 33,516 | ||||
Other comprehensive (loss) gain before reclassifications, net of tax | (79,212) | (28,624) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 175 | (231) | 381 | 381 | (675) | (675) | ||
Other comprehensive (loss) income | (31,820) | (11,105) | (78,831) | (29,299) | ||||
Balance | $ (84,779) | $ (84,779) | $ 4,217 | $ 4,217 | $ (84,779) | $ (84,779) | $ 4,217 | $ 4,217 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ (11) | $ (65) | $ (46) | $ (188) | ||
Foreign currency translation adjustments, tax | 0 | 0 | $ 0 | $ 0 | ||
Unrealized (losses) gains on marketable securities, tax | 1,208 | 1,208 | 1,055 | 1,910 | ||
Retirement plans prior service benefit, tax | (1,128) | (1,128) | (1,128) | (1,126) | ||
Unrealized Gains on Cash Flow Hedges , tax | 0 | 0 | $ 0 | $ 0 | ||
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 | ||||
Foreign currency translation adjustments, tax | 0 | 0 | ||||
Unrealized (Losses) Gains on Marketable Securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, tax | (3,570) | (516) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | (11) | (65) | 48 | (186) | ||
Other comprehensive income (loss), tax | (3,522) | (702) | ||||
Unrealized (losses) gains on marketable securities, tax | (2,467) | (2,467) | ||||
Unrealized Gains on Cash Flow Hedges | ||||||
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 | ||||
Unrealized Gains on Cash Flow Hedges , tax | 0 | 0 | ||||
Retirement Plans 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 | 0 | $ 0 | (2) | (2) | ||
Other comprehensive income (loss), tax | (2) | $ (2) | ||||
Retirement plans prior service benefit, tax | $ (1,130) | $ (1,130) |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) to Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 02, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 02, 2022 | Oct. 03, 2021 | Oct. 03, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Interest income (expense) | $ (177) | $ (177) | $ 229 | $ 229 | $ (386) | $ (386) | $ 670 | $ 670 |
Retirement Plans Prior Service Credit | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Reclassifications, net of tax | 2 | 2 | 5 | 5 | 5 | 5 | ||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Reclassifications, net of tax | $ (175) | $ 231 | $ (381) | $ (381) | $ 675 | $ 675 |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) to Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | $ 11 | $ 65 | $ 46 | $ 188 |
Unrealized (Losses) Gains on Marketable Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | 11 | 65 | (48) | 186 |
Amortization of Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | $ 0 | $ 0 | $ 2 | $ 2 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Acquired intangible assets amortization | $ 4,729 | $ 5,355 | $ 14,663 | $ 16,293 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Goodwill | $ 1,138,365 | $ 1,188,590 |
Accumulated impairment losses | (762,566) | (762,566) |
Total goodwill | 375,799 | 426,024 |
Foreign currency translation adjustment | (50,225) | |
Industrial Automation | ||
Goodwill [Line Items] | ||
Goodwill | 355,845 | 405,971 |
Total goodwill | 355,845 | 405,971 |
Foreign currency translation adjustment | (50,126) | |
Wireless Test | ||
Goodwill [Line Items] | ||
Goodwill | 361,819 | 361,819 |
Accumulated impairment losses | (353,843) | (353,843) |
Total goodwill | 7,976 | 7,976 |
Foreign currency translation adjustment | 0 | |
Semiconductor Test | ||
Goodwill [Line Items] | ||
Goodwill | 262,002 | 262,101 |
Accumulated impairment losses | (260,540) | (260,540) |
Total goodwill | 1,462 | 1,561 |
Foreign currency translation adjustment | (99) | |
System Test | ||
Goodwill [Line Items] | ||
Goodwill | 158,699 | 158,699 |
Accumulated impairment losses | (148,183) | (148,183) |
Total goodwill | 10,516 | $ 10,516 |
Foreign currency translation adjustment | $ 0 |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 02, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 389,673 | $ 389,673 |
Accumulated Amortization | (324,234) | (309,571) |
Foreign Currency Translation Adjustment | (9,859) | (4,467) |
Net Carrying Amount | 55,580 | 75,635 |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 272,547 | 272,547 |
Accumulated Amortization | (232,802) | (223,413) |
Foreign Currency Translation Adjustment | (7,620) | (4,093) |
Net Carrying Amount | 32,125 | 45,041 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 57,739 | 57,739 |
Accumulated Amortization | (50,623) | (48,921) |
Foreign Currency Translation Adjustment | 126 | 209 |
Net Carrying Amount | 7,242 | 9,027 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 59,387 | 59,387 |
Accumulated Amortization | (40,809) | (37,237) |
Foreign Currency Translation Adjustment | (2,365) | (583) |
Net Carrying Amount | $ 16,213 | $ 21,567 |
Schedule of Estimated Intangibl
Schedule of Estimated Intangible Asset Amortization Expense (Detail) $ in Thousands | Oct. 02, 2022 USD ($) |
Finite-Lived Intangible Assets | |
2022 | $ 4,592 |
2023 | 17,922 |
2024 | 17,617 |
2025 | 10,855 |
2026 | 2,262 |
Thereafter | $ 2,332 |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | ||
Net Income Loss Per Common Share | |||||
Net income for basic and diluted net income per share | $ 183,485 | $ 256,718 | $ 543,200 | $ 790,549 | |
Weighted average common shares-basic | 156,364 | 164,583 | 159,325 | 165,690 | |
Convertible note hedge warrant shares | [1] | 8,284 | 9,819 | 9,114 | 9,774 |
Incremental shares from assumed conversion of convertible notes | [2] | 1,453 | 6,464 | 1,965 | 8,784 |
Employee stock purchase plan | 23 | 13 | 23 | 10 | |
Dilutive potential common shares | 10,369 | 17,404 | 11,831 | 19,802 | |
Weighted average common shares-diluted | 166,733 | 181,987 | 171,156 | 185,492 | |
Net income per common share-basic | $ 1.17 | $ 1.56 | $ 3.41 | $ 4.77 | |
Net income per common share-diluted | $ 1.1 | $ 1.41 | $ 3.17 | $ 4.26 | |
Restricted Stock Units | |||||
Net Income Loss Per Common Share | |||||
Incremental shares attributable to share based payment arrangements | 564 | 1,035 | 673 | 1,147 | |
Stock Options | |||||
Net Income Loss Per Common Share | |||||
Incremental shares attributable to share based payment arrangements | 45 | 73 | 56 | 87 | |
[1]Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant 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.[2]Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes 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. |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Net Income Loss Per Common Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.7 | 0.1 | 0.9 | 0.1 |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 25, 2022 | Oct. 02, 2022 | Dec. 31, 2021 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Restructuring Cost and Reserve | ||||||
Increase Decrease in environmental and legal liabilities | $ 700 | $ 2,700 | $ 1,700 | |||
Severance benefit and charges | $ 1,200 | $ 600 | 2,100 | 1,200 | ||
Contingent consideration adjustment | 0 | (7,227) | ||||
Settled Litigation [Member] | ||||||
Restructuring Cost and Reserve | ||||||
Legal settlement charges | $ 12,000 | $ 14,700 | ||||
Mobile Industrial Robots (MiR) | ||||||
Restructuring Cost and Reserve | ||||||
Contingent consideration adjustment | $ 7,200 | |||||
TER Corporate And Eliminations | TER Dispute In Respect Of Contingent Consideration [Member] | ||||||
Restructuring Cost and Reserve | ||||||
Litigation Settlement, Amount settled between parties | $ 26,700 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - United States Plans - Annuity Plan For Participants In The US Qualified Pension Plan [Member] - USD ($) $ in Millions | 9 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2021 | |
Defined Benefit Plan Disclosure | ||
Pension benefit obligation acturial gain loss | $ 2.5 | $ 2.5 |
Defined benefit obligation increase decrease for remeasurement due to settlement | $ 0.7 | $ 0.8 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension and Postretirement (income) Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Defined Benefit Plan Disclosure | ||||
Net actuarial loss (gain) | $ 0 | $ (627) | ||
UNITED STATES | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 397 | $ 452 | 1,191 | 1,357 |
Interest cost | 1,222 | 1,098 | 3,665 | 3,295 |
Expected return on plan assets | (732) | (936) | (2,195) | (2,809) |
Net actuarial loss (gain) | (45) | (400) | ||
Total net periodic pension cost | 887 | 614 | 2,616 | 1,443 |
Foreign Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 153 | 240 | 539 | 720 |
Interest cost | 96 | 86 | 333 | 257 |
Expected return on plan assets | (16) | (17) | (54) | (50) |
Total net periodic pension cost | 233 | 309 | 818 | 927 |
Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 16 | 16 | 48 | 48 |
Interest cost | 44 | 43 | 132 | 128 |
Amortization of prior service cost | (2) | (2) | (7) | (7) |
Net actuarial loss (gain) | 0 | 0 | 54 | (228) |
Total net periodic pension cost | $ 58 | $ 57 | $ 227 | $ (59) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 08, 2021 | Mar. 31, 2022 | Oct. 02, 2022 | Dec. 31, 2021 | |
Purchase Commitment, Excluding Long-term Commitment | ||||
Aggregate purchase commitments | $ 887.1 | |||
Purchase commitments less than one year | 808.3 | |||
Product warranty accrual | 14.1 | $ 24.6 | ||
Revenue deferrals related to extended warranties | $ 61.9 | $ 64.2 | ||
Auto Guide Llc [Member] | Dispute In Respect Of Contingent Consideration [Member] | ||||
Purchase Commitment, Excluding Long-term Commitment | ||||
Legal claims, damage sought by party | $ 106.9 | |||
Litigation Settlement, Amount settled between parties | $ 26.7 |
Schedule of Reconciliation of E
Schedule of Reconciliation of Effective Tax Rate (Detail) | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Income Tax Disclosure [Line Items] | ||||
U.S. statutory federal tax rate | 21% | 21% | 21% | 21% |
Non-deductible officers' compensation | 1.80% | 0.80% | 1.40% | 0.80% |
Foreign taxes | (0.70%) | (4.40%) | (2.40%) | (4.40%) |
Tax credits | (2.10%) | (1.90%) | (1.90%) | (1.40%) |
International provisions of the U.S. Tax Cuts and Jobs Act of 2017 | (1.40%) | (1.50%) | (1.20%) | (1.60%) |
Discrete benefit related to equity compensation | (0.10%) | (0.10%) | (1.90%) | (1.60%) |
Other, net | 0.40% | (0.10%) | 0.80% | (0.10%) |
Effective tax rate | 18.90% | 13.80% | 15.80% | 12.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Dec. 31, 2021 | |
Income Taxes [Line Items] | |||
Tax savings due to the tax holiday | $ 9.7 | $ 23.9 | |
Tax savings due to the tax holiday, per share | $ 0.05 | $ 0.13 | |
Accrued interest and penalties | $ 0.4 | $ 0.3 | |
Interest and penalties related to income tax, expense (benefit) | 0.1 | $ 0.3 | |
Uncertain tax positions | 14.8 | $ 14.5 | |
Net decrease in reserves for uncertain tax positions | $ 0.3 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Oct. 02, 2022 Segment | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 4 |
Schedule of Segment Information
Schedule of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Dec. 31, 2021 | ||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | $ 827,073 | [1] | $ 950,501 | [1] | $ 2,423,209 | [2] | $ 2,817,835 | |||
Income (loss) before income taxes | [3],[4] | 226,197 | 297,755 | 645,148 | 905,774 | |||||
Total assets | 3,319,906 | [5] | 3,762,182 | [5] | 3,319,906 | [5] | 3,762,182 | [5] | $ 3,809,425 | |
Semiconductor Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 575,704 | 688,232 | 1,599,392 | 2,050,271 | ||||||
Income (loss) before income taxes | [3],[4] | 182,625 | 265,017 | 510,112 | 778,687 | |||||
Total assets | [5] | 1,366,478 | 1,251,549 | 1,366,478 | 1,251,549 | |||||
System Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 116,154 | [1] | 102,605 | [1] | 369,525 | [2] | 340,261 | |||
Income (loss) before income taxes | [3],[4] | 40,201 | 31,773 | 135,566 | 116,788 | |||||
Total assets | [5] | 192,684 | 147,970 | 192,684 | 147,970 | |||||
Industrial Automation | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 89,067 | 91,014 | 292,772 | 263,151 | ||||||
Income (loss) before income taxes | [3],[4] | (3,992) | (4,226) | (15,496) | (14,586) | |||||
Total assets | [5] | 614,558 | 696,792 | 614,558 | 696,792 | |||||
Wireless Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 46,148 | [1] | 68,713 | [1] | 161,520 | [2] | 164,504 | |||
Income (loss) before income taxes | [3],[4] | 12,647 | 31,726 | 56,659 | 63,810 | |||||
Total assets | [5] | 110,484 | 119,568 | 110,484 | 119,568 | |||||
Corporate And Eliminations | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 0 | (63) | 0 | (352) | ||||||
Income (loss) before income taxes | [3],[4] | (5,284) | (26,535) | (41,693) | (38,925) | |||||
Total assets | [5] | $ 1,035,702 | $ 1,546,303 | $ 1,035,702 | $ 1,546,303 | |||||
[1]Includes $3.8 million and $3.8 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers.”[2]Includes $11.1 million and $11.1 million in 2022 and 2021, respectively, for leases of Teradyne’s systems recognized outside ASC 606 “Revenue from Contracts with Customers.”[3]Included in Corporate and Eliminations are: legal and environmental fees, contingent consideration fair value adjustments, interest income, interest expense, severance charges, net foreign exchange gains (losses), acquisition related charges and compensation, pension, intercompany eliminations and for the three and nine months ended October 3, 2021, loss on convertible debt conversions.[4]Included in income (loss) before taxes are charges and credits related to restructuring and other, inventory charges and, for the three and nine months ended October 3, 2021, loss on convertible debt conversions.[5]Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets. |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | |
Segment Reporting Information [Line Items] | ||||
Restructuring and other—employee severance | $ 1,796 | $ 1,197 | $ 19,554 | $ (3,426) |
Other (income) expense, net - loss on convertible debt conversion | (5,849) | (21,486) | (20,472) | (25,223) |
Restructuring and other—AutoGuide contingent consideration adjustment | 0 | (7,227) | ||
Semiconductor Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues - inventory charge | 10,829 | 3,725 | 13,144 | 4,959 |
Industrial Automation | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues - inventory charge | 0 | 3,656 | 1,411 | 4,941 |
Restructuring and other—employee severance | 1,074 | 0 | 1,616 | 965 |
Restructuring and other—acquisition related expenses and compensation | 825 | |||
Wireless Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues - inventory charge | 966 | 679 | 3,942 | 1,351 |
System Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues - inventory charge | 524 | |||
Corporate And Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other | 700 | 0 | 2,700 | 1,846 |
Corporate And Eliminations | Restructuring and other | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other—legal settlement charge | 0 | 0 | 14,700 | 0 |
Other (income) expense, net - loss on convertible debt conversion | 0 | 20,153 | 0 | 25,397 |
Restructuring and other—AutoGuide contingent consideration adjustment | 0 | 0 | 0 | (7,227) |
Restructuring and other—acquisition related expenses and compensation | $ 0 | $ 0 | $ 0 | $ (513) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 02, 2022 | Oct. 03, 2021 | Oct. 02, 2022 | Oct. 03, 2021 | Jan. 01, 2022 | Jan. 31, 2021 | |
Treasury Stock Amount Due To Be Repurchased | $ 1,350,000 | |||||
Cumulative repurchases, shares | 7.2 | 3.3 | ||||
Common stock average price | $ 103.83 | $ 123.53 | ||||
Dividends Payable, Amount Per Share | $ 0.11 | $ 0.1 | ||||
Dividend payment | $ 17,100 | $ 16,400 | $ 52,578 | $ 49,711 | ||
Share Repurchase Program [Member] | ||||||
Treasury Stock Amount Due To Be Repurchased | $ 750,000 | $ 406,200 | ||||
Two Thousand And Twenty One Share Purchase Programme [Member] | ||||||
Stock repurchase program, authorized amount | $ 2,000,000 | |||||
Common stock average price | $ 112.55 | |||||
Treasury Stock, Value | $ 2,000,000 | $ 2,000,000 | ||||
Treasury Stock, Shares | 12 | 12 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Millions | Nov. 04, 2022 | Oct. 05, 2022 | May 01, 2020 |
Subsequent Event [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 0 | ||
Subsequent Event | Amended Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750 |