Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Document and Entity Information [Abstract] | ||
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000097210 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Jun. 30, 2019 | |
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 | 169,945,820 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 495,107 | $ 926,752 | |
Marketable securities | 400,227 | 190,096 | |
Accounts receivable, less allowance for doubtful accounts of $1,736 and $1,673 at June 30, 2019 and December 31, 2018, respectively | 372,199 | 291,267 | |
Inventories, net | 164,461 | 153,541 | |
Prepayments and other current assets | 184,832 | 170,826 | |
Total current assets | 1,616,826 | 1,732,482 | |
Property, plant and equipment, net | 295,895 | 279,821 | |
Operating lease right-of-use assets, net | 56,315 | ||
Marketable securities | 99,001 | 87,731 | |
Deferred tax assets | 67,886 | 70,848 | |
Other assets | 25,712 | 11,509 | |
Retirement plans assets | 16,449 | 16,883 | |
Acquired intangible assets, net | 109,494 | 125,482 | |
Goodwill | 383,936 | 381,850 | |
Total assets | 2,671,514 | [1] | 2,706,606 |
Current liabilities: | |||
Accounts payable | 103,449 | 100,688 | |
Accrued employees' compensation and withholdings | 121,940 | 148,566 | |
Deferred revenue and customer advances | 89,837 | 77,711 | |
Other accrued liabilities | 77,053 | 78,272 | |
Current operating lease liabilities | 18,041 | ||
Contingent consideration | 11,753 | 34,865 | |
Income taxes payable | 44,927 | 36,185 | |
Total current liabilities | 467,000 | 476,287 | |
Retirement plans liabilities | 122,596 | 117,456 | |
Long-term deferred revenue and customer advances | 37,365 | 32,750 | |
Deferred tax liabilities | 17,800 | 20,662 | |
Long-term other accrued liabilities | 9,660 | 37,547 | |
Long-term contingent consideration | 15,094 | 35,678 | |
Long-term operating lease liabilities | 46,460 | ||
Long-term incomes taxes payable | 88,884 | 83,891 | |
Debt | 387,243 | 379,981 | |
Total liabilities | 1,192,102 | 1,184,252 | |
SHAREHOLDERS' EQUITY | |||
Common stock, $0.125 par value, 1,000,000 shares authorized; 170,436 and 175,522 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 21,305 | 21,940 | |
Additional paid-in capital | 1,688,211 | 1,671,645 | |
Accumulated other comprehensive loss | (7,591) | (13,040) | |
Accumulated deficit | (222,513) | (158,191) | |
Total shareholders' equity | 1,479,412 | 1,522,354 | |
Total liabilities and shareholders' equity | $ 2,671,514 | $ 2,706,606 | |
[1] | Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts receivable, less allowance for doubtful accounts | $ 1,736 | $ 1,673 |
Common stock, par value | $ 0.125 | $ 0.125 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 170,436,000 | 175,522,000 |
Common stock, shares outstanding | 170,436,000 | 175,522,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Revenues: | ||||
Total revenues | $ 564,178 | $ 526,929 | $ 1,058,277 | $ 1,014,396 |
Cost of revenues: | ||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 240,260 | 219,595 | 446,724 | 437,230 |
Gross profit | 323,918 | 307,334 | 611,553 | 577,166 |
Operating expenses: | ||||
Selling and administrative | 108,811 | 99,410 | 210,824 | 189,916 |
Engineering and development | 81,434 | 75,342 | 158,225 | 149,750 |
Acquired intangible assets amortization | 10,083 | 9,793 | 20,717 | 17,491 |
Restructuring and other | (10,404) | 2,389 | (5,292) | 2,076 |
Total operating expenses | 189,924 | 186,934 | 384,474 | 359,233 |
Income from operations | 133,994 | 120,400 | 227,079 | 217,933 |
Non-operating (income) expense: | ||||
Interest income | (5,430) | (5,427) | (13,482) | (11,407) |
Interest expense | 5,800 | 5,639 | 11,513 | 12,530 |
Other (income) expense, net | 2,447 | 176 | 3,892 | 979 |
Income before income taxes | 131,177 | 120,012 | 225,156 | 215,831 |
Income tax provision | 33,780 | 18,975 | 18,621 | 27,821 |
Net income | $ 97,397 | $ 101,037 | $ 206,535 | $ 188,010 |
Net income per common share: | ||||
Basic | $ 0.57 | $ 0.53 | $ 1.20 | $ 0.97 |
Diluted | $ 0.55 | $ 0.52 | $ 1.16 | $ 0.94 |
Weighted average common shares-basic | 171,241 | 190,730 | 172,387 | 192,992 |
Weighted average common shares-diluted | 178,590 | 194,909 | 177,781 | 199,197 |
Product [Member] | ||||
Revenues: | ||||
Total revenues | $ 457,511 | $ 434,051 | $ 850,953 | $ 837,976 |
Cost of revenues: | ||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | 193,299 | 180,777 | 358,667 | 361,735 |
Service [Member] | ||||
Revenues: | ||||
Total revenues | 106,667 | 92,878 | 207,324 | 176,420 |
Cost of revenues: | ||||
Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | $ 46,961 | $ 38,818 | $ 88,057 | $ 75,495 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Net income | $ 97,397 | $ 101,037 | $ 206,535 | $ 188,010 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment, net of tax of $0 | 5,642 | (29,323) | 983 | (18,781) |
Available-for-sale marketable securities: | ||||
Unrealized gains (losses) on marketable securities arising during period, net of tax of $678, $(25), $1,256, $(744), respectively | 2,537 | 198 | 4,637 | (2,489) |
Less: Reclassification adjustment for (gains) losses included in net income, net of tax of $(6), $(68), $(26), $11, respectively | (27) | (199) | (97) | 1,469 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Total | 2,510 | (1) | 4,540 | (1,020) |
Defined benefit pension and post-retirement plans: | ||||
Amortization of prior service benefit included in net periodic pension and post-retirement benefit, net of tax of $(11), $(18), $(21), $(35), respectively | (37) | (61) | (74) | (123) |
Other comprehensive income (loss) | 8,115 | (29,385) | 5,449 | (19,924) |
Comprehensive income | $ 105,512 | $ 71,652 | $ 211,984 | $ 168,086 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Foreign currency translation adjustments, tax | $ 0 | |||
Unrealized gains (losses) on marketable securities arising during period, net of tax | 678 | $ (25) | $ 1,256 | $ (744) |
Reclassification adjustment for (gains) losses included in net income, net of tax | (6) | (68) | (26) | 11 |
Amortization of prior service benefit included in net periodic pension and post-retirement benefit, net of tax | $ (11) | $ (18) | $ (21) | $ (35) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance at Jan. 01, 2018 | $ 1,953,646 | $ 24,444 | $ 1,638,413 | $ 18,776 | $ 272,013 |
Balance, Shares at Jan. 01, 2018 | 195,548 | ||||
Net issuance of common stock under stock-based plans | (8,086) | $ 157 | (8,243) | ||
Net issuance of common stock under stock-based plans (in shares) | 1,253 | ||||
Stock-based compensation expense | 15,509 | 15,509 | |||
Repurchase of common stock | (367,191) | $ (1,106) | (366,085) | ||
Repurchase of common stock (in shares) | (8,839) | ||||
Cash dividends | (34,703) | (34,703) | |||
Net income | 188,010 | 188,010 | |||
Other comprehensive Income (loss) | (19,924) | (19,924) | |||
Reclassification of unrealized gains on equity securities | (3,125) | 3,125 | |||
Reclassification of tax effects resulting from the Tax Reform Act | 769 | (769) | |||
Balance at Jul. 01, 2018 | 1,739,940 | $ 23,495 | 1,645,679 | (3,504) | 74,270 |
Balance, Shares at Jul. 01, 2018 | 187,962 | ||||
Balance at Apr. 01, 2018 | 1,904,983 | $ 24,226 | 1,638,756 | 25,881 | 216,120 |
Balance, Shares at Apr. 01, 2018 | 193,808 | ||||
Net issuance of common stock under stock-based plans | (107) | $ 7 | (114) | ||
Net issuance of common stock under stock-based plans (in shares) | 54 | ||||
Stock-based compensation expense | 7,037 | 7,037 | |||
Repurchase of common stock | (226,520) | $ (738) | (225,782) | ||
Repurchase of common stock (in shares) | (5,900) | ||||
Cash dividends | (17,105) | (17,105) | |||
Net income | 101,037 | 101,037 | |||
Other comprehensive Income (loss) | (29,385) | (29,385) | |||
Reclassification of tax effects resulting from the Tax Reform Act | 260 | ||||
Balance at Jul. 01, 2018 | 1,739,940 | $ 23,495 | 1,645,679 | (3,504) | 74,270 |
Balance, Shares at Jul. 01, 2018 | 187,962 | ||||
Cumulative effect of changes in accounting principle related to revenue recognition | 12,679 | 12,679 | |||
Balance at Dec. 31, 2018 | 1,522,354 | $ 21,940 | 1,671,645 | (13,040) | (158,191) |
Balance, Shares at Dec. 31, 2018 | 175,522 | ||||
Net issuance of common stock under stock-based plans | 643 | $ 174 | 469 | ||
Net issuance of common stock under stock-based plans (in shares) | 1,385 | ||||
Stock-based compensation expense | 16,097 | 16,097 | |||
Repurchase of common stock | (240,624) | $ (809) | (239,815) | ||
Repurchase of common stock (in shares) | (6,471) | ||||
Cash dividends | (31,042) | (31,042) | |||
Net income | 206,535 | 206,535 | |||
Other comprehensive Income (loss) | 5,449 | 5,449 | |||
Reclassification of tax effects resulting from the Tax Reform Act | 171 | ||||
Balance at Jun. 30, 2019 | 1,479,412 | $ 21,305 | 1,688,211 | (7,591) | (222,513) |
Balance, Shares at Jun. 30, 2019 | 170,436 | ||||
Balance at Mar. 31, 2019 | 1,470,228 | $ 21,544 | 1,679,997 | (15,706) | (215,607) |
Balance, Shares at Mar. 31, 2019 | 172,353 | ||||
Net issuance of common stock under stock-based plans | 692 | $ 13 | 679 | ||
Net issuance of common stock under stock-based plans (in shares) | 99 | ||||
Stock-based compensation expense | 7,535 | 7,535 | |||
Repurchase of common stock | (89,154) | $ (252) | (88,902) | ||
Repurchase of common stock (in shares) | (2,016) | ||||
Cash dividends | (15,401) | (15,401) | |||
Net income | 97,397 | 97,397 | |||
Other comprehensive Income (loss) | 8,115 | 8,115 | |||
Reclassification of tax effects resulting from the Tax Reform Act | 64 | ||||
Balance at Jun. 30, 2019 | $ 1,479,412 | $ 21,305 | $ 1,688,211 | $ (7,591) | $ (222,513) |
Balance, Shares at Jun. 30, 2019 | 170,436 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 206,535 | $ 188,010 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 33,882 | 33,156 |
Amortization | 24,976 | 20,177 |
Stock-based compensation | 18,109 | 17,625 |
Deferred taxes | 515 | 17,312 |
Provision for excess and obsolete inventory | 5,799 | 6,175 |
Contingent consideration fair value adjustment | (8,701) | (8,468) |
(Gains) losses on marketable securities | (3,741) | 762 |
Retirement plan actuarial losses (gains) | 448 | (71) |
Other | 429 | 406 |
Changes in operating assets and liabilities, net of businesses acquired: | ||
Accounts receivable | (79,478) | (179,403) |
Inventories | (2,447) | (21,283) |
Prepayments and other assets | (17,067) | 1,641 |
Accounts payable and other liabilities | (14,424) | (8,155) |
Deferred revenue and customer advances | 15,826 | 10,518 |
Retirement plans contributions | (2,414) | (2,173) |
Income taxes | (14,973) | (26,308) |
Net cash provided by operating activities | 163,274 | 49,921 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (58,956) | (62,663) |
Purchases of marketable securities | (484,181) | (647,071) |
Proceeds from sales of marketable securities | 42,454 | 829,053 |
Proceeds from maturities of marketable securities | 233,193 | 469,862 |
Proceeds from life insurance | 273 | |
Purchase of investments and acquisition of businesses, net of cash acquired | (21,970) | (170,632) |
Net cash (used for) provided by investing activities | (289,187) | 418,549 |
Cash flows from financing activities: | ||
Issuance of common stock under stock purchase and stock option plans | 15,089 | 10,681 |
Repurchase of common stock | (247,222) | (360,795) |
Dividend payments | (31,019) | (34,682) |
Payments related to net settlement of employee stock compensation awards | (14,446) | (19,751) |
Payments of contingent consideration | (27,615) | (13,571) |
Net cash used for financing activities | (305,213) | (418,118) |
Effects of exchange rate changes on cash and cash equivalents | (519) | 189 |
(Decrease) increase in cash and cash equivalents | (431,645) | 50,541 |
Cash and cash equivalents at beginning of period | 926,752 | 429,843 |
Cash and cash equivalents at end of period | $ 495,107 | $ 480,384 |
The Company
The Company | 6 Months Ended |
Jun. 30, 2019 | |
The Company | A. THE COMPANY Teradyne, Inc. (“Teradyne”) is a leading global supplier of automation equipment for test and industrial applications. Teradyne designs, develops, manufactures and sells automatic test systems used to test semiconductors, wireless products, data storage and complex electronics systems in the consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne’s industrial automation products include collaborative robotic arms, autonomous mobile robots, and advanced robotic control software used by global manufacturing and light industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing costs. Teradyne’s automatic test equipment and industrial automation products and services include: • semiconductor test (“Semiconductor Test”) systems; • industrial automation (“Industrial Automation”) products; • defense/aerospace (“Defense/Aerospace”) test instrumentation and systems, storage test (“Storage Test”) systems, and circuit-board test and inspection (“Production Board Test”) systems (collectively these products represent “System Test”); and • wireless test (“Wireless Test”) systems. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies | B. ACCOUNTING POLICIES Basis of Presentation The consolidated interim financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair statement of such interim financial statements. Certain prior year amounts were reclassified to conform to the current year presentation. The December 31, 2018 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form 10-K, Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Actual results may differ significantly from these estimates. Investment in Other Company Teradyne holds an investment in a private company that develops and sells advanced wearable technology . Teradyne does not have the ability to exert significant influence over the company. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer on a quarterly basis. See Note D: “Acquisitions and Investment in Other Company.” Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” right-of-use 2018-11, “Leases (Topic 842): Targeted Improvements,” under the transition guidance which included the carry-forward of historical lease classification. Adoption of ASC resulted in recording ROU assets and lease liabilities of approximately $ million and $ million, respectively. Operating lease liabilities were calculated using the discount rate on January , . The adoption of ASC did not have a material impact on beginning retained earnings, the consolidated statement of operations, cash flows, or earnings per share. Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset. Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The commencement date of the lease is the date that the lessor makes an underlying asset available for use by Teradyne. As of June 30, 2019, Teradyne does not have material leases that have not yet commenced. Teradyne determines if the lease is operating or finance at the lease commencement date based upon the terms of the lease and the nature of the asset. The lease term used to calculate the lease liability includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. For leases commencing after January 1, 2019, the lease liability is measured at the present value of future lease payments, discounted using the discount rate for the lease at the commencement date. As Teradyne is typically unable to determine the implicit rate, Teradyne uses an incremental borrowing rate based on the lease term and economic environment at commencement date. Teradyne initially measures payments based on an index by using the applicable rate at lease commencement. Variable payments that do not depend on an index are not included in the lease liability and are recognized as they are incurred. The ROU asset is initially measured as the amount of lease liability, adjusted for any initial lease costs, prepaid lease payments, and reduced by any lease incentives. Teradyne’s contracts often include non-lease non-lease |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Recently Issued Accounting Pronouncements | C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS On January 26, 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment.” one-step |
Acquisitions and Investment In
Acquisitions and Investment In Other Company | 6 Months Ended |
Jun. 30, 2019 | |
Acquisitions and Investment In Other Company | D. ACQUISITIONS Acquisitions Lemsys SA On January 30, 2019, Teradyne acquired all of the issued and outstanding shares of Lemsys SA (“Lemsys”) for a total purchase price of approximately $9.1 million. Lemsys strengthens Teradyne’s position in the electrification trends of vehicles, solar, wind, and industrial applications. The Lemsys acquisition was accounted for as a business combination and, accordingly, the results have been included in Teradyne’s Semiconductor Test segment from the date of acquisition. Teradyne’s final allocation of the purchase price was goodwill of $1.4 million, which is not deductible for tax purposes, acquired intangible assets of $4.6 million with an average estimated useful life of 5.2 years, and $3.1 million of net tangible assets. The acquisition was not material to Teradyne’s condensed consolidated financial statements. Mobile Industrial Robots On April 25, 2018, Teradyne acquired all of the issued and outstanding shares of Mobile Industrial Robots Aps (“MiR”), a Danish limited liability company located in Odense, Denmark. MiR is the leading maker of collaborative autonomous mobile robots for industrial applications. MiR is part of Teradyne’s Industrial Automation segment. The total purchase price of $197.8 million included $145.2 million of cash paid and $52.6 million of contingent consideration measured at fair value. The contingent consideration is payable in Euros upon the achievement of certain thresholds and targets for revenue and earnings before interest and taxes for periods from January 1, 2018 to December 31, 2018; January 1, 2018 to December 31, 2019; and January 1, 2018 to December 31, 2020. The contingent consideration related to revenue for the period from January 1, 2018 to December 31, 2018 in the amount of $30.8 million was paid in March 2019. The remaining maximum contingent consideration that could be paid is $84.1 million. The valuation of the contingent consideration is dependent on the following assumptions: forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. These assumptions were estimated based on a review of the historical and projected results. The MiR acquisition was accounted for as a business combination and, accordingly, the results have been included in Teradyne’s consolidated results of operations from the date of acquisition. MiR’s products will help expand the Industrial Automation segment, which is a key component of Teradyne’s growth strategy. The allocation of the total purchase price to MiR’s net tangible liabilities and identifiable intangible assets was based on their estimated fair values as of the acquisition date. The excess of the purchase price over the identifiable intangible assets and net tangible liabilities in the amount of $136.0 million was allocated to goodwill, which is not deductible for tax purposes. MiR’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition. The following table represents the final allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 135,976 Intangible assets 80,670 Tangible assets acquired and liabilities assumed: Current assets 6,039 Non-current 1,336 Accounts payable and current liabilities (7,336 ) Long-term deferred tax liabilities (18,007 ) Other long-term liabilities (900 ) Total purchase price $ 197,778 Teradyne estimated the fair value of intangible assets using the income and cost approaches. Acquired intangible assets are amortized on a straight-line basis over their estimated useful lives. Components of these intangible assets and their estimated useful lives at the acquisition date are as follows: Fair Value Estimated Useful Life (in thousands) (in years) Developed technology $ 58,900 7.0 Trademarks and tradenames 13,240 11.0 Customer relationships 8,500 2.5 Backlog 30 0.2 Total intangible assets $ 80,670 7.2 The following unaudited pro forma information gives effect to the acquisition of MiR as if the acquisition occurred on January 1, 2018. The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented: For the Three Months For the Six Months Ended July 1, 2018 July 1, 2018 (in thousands) Revenue $ 528,238 $ 1,021,194 Net income 101,780 186,787 Net income per common share: Basic $ 0.53 $ 0.97 Diluted $ 0.52 $ 0.94 Pro forma results for the three and six months ended July 1, 2018 were adjusted to exclude $2.3 million and $2.9 million of acquisition related costs . Energid Technologies Corporation On February 26, 2018, Teradyne acquired all of the issued and outstanding shares of Energid Technologies Corporation (“Energid”) for a total purchase price of approximately $27.6 million. Energid’s technology enables and simplifies the programming of complex robotic motions used in a wide variety of end markets, ranging from heavy industry to healthcare, utilizing both traditional robots and collaborative robots. The Energid acquisition was accounted for as a business combination and, accordingly, Energid’s results have been included in Teradyne’s Industrial Automation segment from the date of acquisition. As of the acquisition date, Teradyne’s purchase price allocation was goodwill of $14.4 million which is deductible for tax purposes, acquired intangible assets of $12.3 million with an average estimated useful life of 7.7 years, and $1.0 million of net tangible assets. The acquisition was not material to Teradyne’s condensed consolidated financial statements. Investment in Other Company On June 3, 2019, Teradyne invested $15.0 million in RealWear, Inc. (“RealWear”). RealWear, a private company, develops and sells advanced wearable technology including industrial, hands-free, head-mounted augmented reality devices that make the workplace safer and more productive. Teradyne’s investment in RealWear aligns with its strategy of bringing the power of advanced automation to companies of all sizes to improve the productivity of their employees and the quality of their products and services. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer on a quarterly basis. At June 30, 2019 the value of the investment was $15.0 million. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | E. REVENUE For the three and six months ended June 30, 2019, revenues recognized in accordance with ASC 606: “ Revenue from Contracts with Customers” For the three and six months ended July 1, 2018, revenues recognized in accordance with ASC 606: “ Revenue from Contracts with Customers” For the three and six months ended July 1, 2018, Teradyne also recognized $ $7.9 million, respectively, of revenues from leases of Teradyne systems, which are accounted for outside of ASC 606. Disaggregation of Revenue The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition. For the Three Months Ended June 30, 2019 Semiconductor Test System Test Industrial Automation Wireless Corporate Consolidated System Memory Defense/ Aerospace Storage Production Universal Mobile Energid (in thousands) Americas Point in time $ 7,426 $ 8,059 $ 17,225 $ 3,703 $ 1,341 $ 16,938 $ 2,783 $ — $ 5,250 $ (89 ) $ 62,636 Over time 8,175 724 6,850 — 792 255 — 787 676 — 18,259 Europe, Middle East and Africa Point in time 9,819 2,016 211 — 2,974 26,545 5,041 — 620 — 47,226 Over time 5,212 284 505 — 1,615 399 — 477 48 — 8,540 Asia Pacific Point in time 247,885 43,909 163 27,672 6,848 18,532 2,681 — 33,366 — 381,056 Over time 36,566 3,293 329 2,310 775 279 — 9 1,242 — 44,803 Lease Revenue 1,530 — — — 94 — — — 34 — 1,658 Total $ 316,613 $ 58,285 $ 25,283 $ 33,685 $ 14,439 $ 62,948 $ 10,505 $ 1,273 $ 41,236 $ (89 ) $ 564,178 For the Three Months Ended July 1, 2018 Semiconductor Test System Test Industrial Automation Wireless Corporate Consolidated SOC Memory Defense/ Aerospace Storage Production Universal Mobile Energid (in thousands) Americas Point in time $ 12,111 $ 2,827 $ 15,256 $ 5 $ 1,429 $ 16,053 $ 1,199 $ — $ 4,716 $ (110 ) $ 53,486 Over time 8,934 710 6,237 — 795 327 — — 122 — 17,125 Europe, Middle East and Africa Point in time 10,227 847 447 — 4,849 26,616 2,000 — 26 — 45,012 Over time 5,689 254 539 — 1,713 526 — — 257 — 8,978 Asia Pacific Point in time 218,352 59,633 385 31,824 3,741 13,895 1,310 — 27,663 — 356,803 Over time 34,951 2,285 258 1,428 744 131 — — 2,103 — 41,900 Lease Revenue 3,268 — — — 32 — — — 325 — 3,625 Total $ 293,532 $ 66,556 $ 23,122 $ 33,257 $ 13,303 $ 57,548 $ 4,509 $ — $ 35,212 $ (110 ) $ 526,929 For the Six Months Ended June 30, 2019 Semiconductor Test System Test Industrial Automation Wireless Corporate Consolidated SOC Memory Defense/ Aerospace Storage Production Universal Mobile Energid (in thousands) Americas Point in time $ 15,403 $ 16,110 $ 32,007 $ 5,295 $ 4,595 $ 32,235 $ 6,322 $ — $ 7,340 $ (240 ) $ 119,067 Over time 16,365 1,436 13,300 — 1,521 501 — 1,047 827 — 34,997 Europe, Middle East and Africa Point in time 20,851 2,168 250 — 8,038 52,448 8,883 — 1,356 — 93,994 Over time 10,493 563 974 — 3,169 815 — 766 93 — 16,873 Asia Pacific Point in time 467,698 79,415 426 44,279 10,483 32,709 4,408 — 57,995 — 697,413 Over time 75,479 6,573 1,093 4,364 1,696 507 — 221 2,601 — 92,534 Lease Revenue 3,197 — — — 137 — — — 65 — 3,399 Total $ 609,486 $ 106,265 $ 48,050 $ 53,938 $ 29,639 $ 121,249 $ 19,613 $ 2,034 $ 70,277 $ (240 ) $ 1,058,277 For the Six Months Ended July 1, 2018 Semiconductor Test System Test Industrial Automation Wireless Corporate Consolidated SOC Memory Defense/ Aerospace Storage Production Universal Mobile Energid (in thousands) Americas Point in time $ 21,711 $ 5,691 $ 26,853 $ 284 $ 3,189 $ 30,190 $ 1,199 $ — $ 9,695 $ (332 ) $ 98,480 Over time 17,517 1,406 12,425 — 1,552 652 — — 233 — 33,785 Europe, Middle East and Africa Point in time 22,352 986 1,943 — 8,886 49,190 2,000 — 1,066 — 86,423 Over time 10,888 523 1,090 — 3,272 668 — — 484 — 16,925 Asia Pacific Point in time 446,543 125,904 487 41,946 5,603 25,478 1,310 — 41,329 — 688,600 Over time 68,173 4,607 466 2,961 1,479 204 — — 4,399 — 82,289 Lease Revenue 7,115 — — — 266 — — — 513 — 7,894 Total $ 594,299 $ 139,117 $ 43,264 $ 45,191 $ 24,247 $ 106,382 $ 4,509 $ — $ 57,719 $ (332 ) $ 1,014,396 Contract Balances During the three and six months ended June 30, 2019, Teradyne recognized $13.3 million and $33.4 million, respectively, that was previously included within the deferred revenue and customer advances balances. During the three and six months ended July 1, 2018, Teradyne recognized $ million and $ million, respectively, % of the remaining performance obligation in the next months, % in 1-3 years, and the remainder thereafter. Accounts Receivable Teradyne sells certain trade accounts receivables on a non-recourse |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventories | F. INVENTORIES Inventories, net consisted of the following at June 30, 2019 and December 31, 2018: June 30, December 31, (in thousands) Raw material $ 96,824 $ 89,365 Work-in-process 31,676 31,014 Finished goods 35,961 33,162 $ 164,461 $ 153,541 Inventory reserves at June 30, 2019 and December 31, 2018 were $102.6 million and $100.8 million, respectively. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
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 available-for-sale During the three and six months ended June 30, 2019 and July 1, 2018, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments. Realized gains recorded in the three and six months ended June 30, 2019 were $0.1 million and $0.2 million, respectively. Realized losses recorded in the six months ended June 30, 2019 were $0.1 million. Realized gains recorded in the three and six months ended July 1, 2018 were $0.1 million and $0.4 million, respectively. Realized losses recorded in the six months ended July 1, 2018 were $1.5 million. Realized gains are included in interest income and realized losses are included in interest expense. Unrealized gains on equity securities recorded in the three and six months ended June 30, 2019 were $0.9 million and $3.7 million, respectively. Unrealized gains on equity securities recorded in the three and six months ended July 1, 2018 were $0.4 million. Unrealized gains on equity securities are included in interest income and unrealized losses are included in interest expense. Unrealized gains and losses on available-for-sale The cost of securities sold is based on the specific identification method. The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018. June 30, 2019 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 235,370 $ — $ — $ 235,370 Cash equivalents 223,150 36,587 — 259,737 Available-for-sale U.S. Treasury securities — 190,322 — 190,322 Commercial paper — 154,910 — 154,910 Corporate debt securities — 94,431 — 94,431 Certificates of deposit and time deposits — 19,723 — 19,723 U.S. government agency securities — 9,838 — 9,838 Debt mutual funds 3,299 — — 3,299 Non-U.S. — 388 — 388 Equity securities: Mutual funds 26,317 — — 26,317 $ 488,136 $ 506,199 $ — $ 994,335 Derivative assets — 34 — 34 Total $ 488,136 $ 506,233 $ — $ 994,369 Liabilities Contingent consideration $ — $ — $ 26,847 $ 26,847 Derivative liabilities — 324 — 324 Total $ — $ 324 $ 26,847 $ 27,171 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 458,520 $ 36,587 $ — $ 495,107 Marketable securities — 400,227 — 400,227 Long-term marketable securities 29,616 69,385 — 99,001 Prepayments — 34 — 34 Total $ 488,136 $ 506,233 $ — $ 994,369 Liabilities . Other current liabilities $ — $ 324 $ — $ 324 Contingent consideration — — 11,753 11,753 Long-term contingent consideration — — 15,094 15,094 Total $ — $ 324 $ 26,847 $ 27,171 December 31, 2018 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 312,512 $ — $ — $ 312,512 Cash equivalents 253,525 360,715 — 614,240 Available-for-sale U.S. Treasury securities — 109,721 — 109,721 Commercial paper — 86,117 — 86,117 Corporate debt securities — 40,020 — 40,020 U.S. government agency securities — 9,611 — 9,611 Certificates of deposit and time deposits — 7,604 — 7,604 Debt mutual funds 3,187 — — 3,187 Non-U.S. — 376 — 376 Equity securities: Mutual funds 21,191 — — 21,191 $ 590,415 $ 614,164 $ — $ 1,204,579 Derivative assets — 79 — 79 Total $ 590,415 $ 614,243 $ — $ 1,204,658 Liabilities Contingent consideration $ — $ — $ 70,543 $ 70,543 Derivative liabilities — 514 — 514 Total $ — $ 514 $ 70,543 $ 71,057 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 566,037 $ 360,715 $ — $ 926,752 Marketable securities — 190,096 — 190,096 Long-term marketable securities 24,378 63,353 — 87,731 Prepayments — 79 — 79 Total $ 590,415 $ 614,243 $ — $ 1,204,658 Liabilities Other accrued liabilities $ — $ 514 $ — $ 514 Contingent consideration — — 34,865 34,865 Long-term contingent consideration — — 35,678 35,678 Total $ — $ 514 $ 70,543 $ 71,057 Changes in the fair value of Level 3 contingent consideration for the three and six months ended June 30, 2019 and July 1, 2018 were as follows: For the Three Months Ended For the Six Months Ended June 30, July 1, June 30, July 1, (in thousands) Balance at beginning of period $ 38,313 $ 15,581 $ 70,543 $ 45,102 Fair value adjustment (a) (11,672 ) (3,500 ) (8,701 ) (8,468 ) Foreign currency impact 206 (2,566 ) (405 ) (2,566 ) Payments (b) — — (34,590 ) (24,553 ) Acquisition of MiR — 51,399 — 51,399 Balance at end of period $ 26,847 $ 60,914 $ 26,847 $ 60,914 (a) In the three and six months ended June 30, 2019, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was decreased by $11.7 million and $8.7 million, respectively, primarily due to a decrease in the forecasted revenue. In the three and six months ended July 1, 2018, the fair value of contingent consideration for the earn-out in connection with the acquisition of Universal Robots A/S (“Universal Robots”) was decreased by $ 3.5 (b) In the six months ended June 30, 2019, Teradyne paid $30.8 million and $3.8 million of contingent consideration for the earn-outs in connection with the acquisition of MiR and Universal Robots, respectively. In the six months ended July 1, 2018, Teradyne paid $24.6 million of contingent consideration for the earn-out in connection with the acquisition of Universal Robots. The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instruments: Liability June 30, 2019 Valuation Technique Unobservable Inputs Weighted Average (in thousands) Contingent consideration (MiR) $ 26,847 Monte Carlo Simulation Revenue volatility 19.0 Discount rate 0.2% As of June 30, 2019, the significant unobservable inputs used in the Monte Carlo simulation to fair value the MiR contingent consideration include forecasted revenues, revenue volatility, earnings before interest and taxes, and discount rate. Increases or decreases in the inputs would result in a higher or lower fair value measurement. As of June 30, 2019, the maximum amount of contingent consideration that could be paid in connection with the acquisition of MiR is $84.1 million. The remaining earn-out The carrying amounts and fair values of Teradyne’s financial instruments at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 495,107 $ 495,107 $ 926,752 $ 926,752 Marketable securities 499,228 499,228 277,827 277,827 Derivative assets 34 34 79 79 Liabilities Contingent consideration 26,847 26,847 70,543 70,543 Derivative liabilities 324 324 514 514 Convertible debt (1) 387,243 747,213 379,981 547,113 (1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. The fair values of accounts receivable, net and accounts payable approximate the carrying value due to the short-term nature of these instruments. The following table summarizes the composition of available-for-sale June 30, 2019 Available-for-Sale Fair Market Cost Unrealized Gain Unrealized (Loss) Fair Value Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 189,927 $ 668 $ (273 ) $ 190,322 $ 18,195 Commercial paper 154,903 9 (2 ) 154,910 10,322 Corporate debt securities 91,553 3,035 (157 ) 94,431 4,581 Certificates of deposit and time deposits 19,717 6 — 19,723 2,232 U.S. government agency securities 9,829 15 (6 ) 9,838 2,947 Debt mutual funds 3,187 112 — 3,299 — Non-U.S. 388 — — 388 — $ 469,504 $ 3,845 $ (438 ) $ 472,911 $ 38,277 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 399,852 $ 391 $ (16 ) $ 400,227 $ 21,708 Long-term marketable securities 69,652 3,454 (422 ) 72,684 16,569 $ 469,504 $ 3,845 $ (438 ) $ 472,911 $ 38,277 The following table summarizes the composition of available-for-sale December 31, 2018 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 110,969 $ 112 $ (1,360 ) $ 109,721 $ 75,040 Commercial paper 86,130 13 (26 ) 86,117 85,094 Corporate debt securities 41,133 432 (1,545 ) 40,020 24,767 U.S. government agency securities 9,646 1 (36 ) 9,611 7,077 Certificates of deposit and time deposits 7,604 — — 7,604 — Debt mutual funds 3,153 34 — 3,187 — Non-U.S. 376 — — 376 — $ 259,011 $ 592 $ (2,967 ) $ 256,636 $ 191,978 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 190,100 $ 88 $ (92 ) $ 190,096 $ 140,262 Long-term marketable securities 68,911 504 (2,875 ) 66,540 51,716 $ 259,011 $ 592 $ (2,967 ) $ 256,636 $ 191,978 As of June 30, 2019, the fair market value of investments in available-for-sale As of December 31, 2018, the fair market value of investments with unrealized losses totaled $192.0 million. Of this value, $28.5 million had unrealized losses of $1.6 million greater than one year and $163.5 million had unrealized losses of $1.4 million for less than one year. Teradyne reviews its investments to identify and evaluate investments that have an indication of possible impairment. Based on this review, Teradyne determined that the unrealized losses related to these investments at June 30, 2019 and December 31, 2018 were temporary. The contractual maturities of investments in available-for-sale June 30, 2019 Cost Fair Market Value (in thousands) Due within one year $ 399,852 $ 400,227 Due after 1 year through 5 years 12,304 12,411 Due after 5 years through 10 years 14,101 14,156 Due after 10 years 40,060 42,818 Total $ 466,317 $ 469,612 Contractual maturities of investments in available-for-sale Derivatives Teradyne conducts business in a number of foreign countries, with certain transactions denominated in local currencies. The purpose of Teradyne’s foreign currency management is to minimize the effect of exchange rate fluctuations on certain foreign currency denominated monetary assets and liabilities. Teradyne does not use derivative financial instruments for trading or speculative purposes. To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings, and is used to offset the change in value of monetary assets and liabilities denominated in foreign currencies. The notional amount of foreign currency forward contracts at June 30, 2019 and December 31, 2018 was $143.3 million and $163.1 million, respectively. Gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net. The following table summarizes the fair value of derivative instruments as of June 30, 2019 and December 31, 2018: Balance Sheet Location June 30, December 31, (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts – derivative assets Prepayments $ 34 $ 79 Foreign exchange contracts – Other current liabilities (324 ) (514 ) Total derivatives $ (290 ) $ (435 ) The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and six months ended June 30, 2019 and July 1, 2018. Location of Losses (Gains) Recognized in Statement of Operations For the Three Months Ended For the Six Months Ended June 30, July 1, June 30, July 1, (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 239 $ 1,826 $ 4,173 $ 3,401 (1) The table does not reflect the corresponding gains and losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies. (2) For the three months ended June 30, 2019, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.3 million. For the six months ended June 30, 2019, net gains from the remeasurement of monetary assets and liabilities denominated in (3) For the three and six months ended July 1, 2018, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.9 million and $2.5 million, respectively. See Note I: “Debt” regarding derivatives related to the convertible senior notes. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Lease | H. LEASES On January 1, 2019, Teradyne adopted ASC 842 using the modified retrospective approach. Under this method of adoption, the comparative information in the consolidated financial statements has not been revised and continues to be reported under the previously applicable lease accounting guidance (ASC 840). Adoption of ASC 842 resulted in recording ROU assets and lease liabilities of approximately $50.1 million and $54.3 million, respectively. The adoption of ASC 842 did not have a material impact on beginning retained earnings, the consolidated statement of operations, cash flows, or earnings per share. Teradyne has facility and auto leases, which are accounted for as operating leases. Teradyne’s facility leases are primarily used for administrative functions, research and development, manufacturing, and storage and distribution. Remaining lease terms range from less than one year to ten years. Total lease expense for the three months ended June 30, 2019 was $8.9 million and included $2.6 million of variable lease costs and $0.8 million of costs related to short-term leases which are not recorded on the consolidated balance sheets. Total lease expense for the six months ended June 30, 2019 was $17.1 million and included $5.0 million of variable lease costs and $1.5 million of costs related to short-term leases which are not recorded on the consolidated balance sheets. At June 30, 2019, the weighted average remaining lease term and weighted average discount rate for operating leases was 4.7 years and 5.2%, respectively. Supplemental cash flow information related to leases was as follows: For the Three Months For the Six Months June 30, 2019 June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows: $ 4,993 $ 10,052 Right-of-use 9,675 15,412 Maturities of lease liabilities as of June 30, 2019 were as follows: Operating Lease (in thousands) 2019 $ 10,725 2020 19,177 2021 16,510 2022 12,226 2023 5,849 Thereafter 12,583 Total lease payments 77,070 Less imputed interest (12,569 ) Total lease liabilities $ 64,501 As of December 31, 2018, future non-cancelable Operating Lease (in thousands) 2019 $ 19,570 2020 18,293 2021 13,578 2022 9,693 2023 5,449 Thereafter 9,472 Total lease payments $ 76,055 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt | I. DEBT Convertible Senior Notes On December , , Teradyne completed a private offering of $ million aggregate principal amount of % convertible senior unsecured notes (the “Notes”) due December 15, 2023 and received net proceeds, after issuance costs, of approximately $ million, $ million of which was used to pay the net cost of the convertible note hedge transactions and $ million of which was used to repurchase million shares of Teradyne’s common stock under its existing stock repurchase program from purchasers of the Notes in privately negotiated transactions effected through one of the initial purchasers or its affiliates conducted concurrently with the pricing of the Note offering. The Notes will mature on December , , unless earlier repurchased or converted. The Notes bear interest from December , at a rate of % per year , beginning on June 15, 2017 . The Notes will be convertible at the option of the noteholders at any time prior to the close of business on the business day immediately preceding September 15, 2023 , only under the following circumstances: during any calendar quarter beginning after March , (and only during such calendar quarter), if the closing sale price of Teradyne’s common stock, for at least trading days (whether or not consecutive) during a period of consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than % of the conversion price on each applicable trading day; during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $ principal amount of Notes for each trading day of the measurement period was less than % of the product of the closing sale price of the Teradyne’s common stock and the conversion rate on each such trading day; and upon the occurrence of specified corporate events. On or after September , until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Teradyne may satisfy its conversion obligation by paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock, at Teradyne’s election. As of June , , the conversion price was approximately $ per share of Teradyne’s common stock. The conversion rate is subject to adjustment under certain circumstances. Concurrent with the offering of the Notes, Teradyne entered into convertible note hedge transactions (the “Note Hedge Transactions”) with the initial purchasers or their affiliates (the “Option Counterparties”). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.70. The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, approximately 14.5 million shares of Teradyne’s common stock. Separately and concurrent with the pricing of the Notes, Teradyne entered into warrant transactions with the Option Counterparties (the “Warrant Transactions”) in which it sold net-share-settled 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 $ million. In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to Teradyne’s common stock and/or purchased shares of Teradyne’s common stock or other securities, including the Notes, concurrent with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to Teradyne’s common stock or by selling Teradyne’s common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely affect the value of Teradyne’s common stock and the Notes. Teradyne considered the guidance of ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” and concluded that the convertible note hedge is both indexed to Teradyne’s common stock and should be classified in stockholders’ equity in its statements of financial position. The convertible note hedge is considered indexed to Teradyne’s common stock as the terms of the Note Hedge Transactions do not contain an exercise contingency and the settlement amount equals the difference between the fair value of a fixed number of Teradyne’s shares and a fixed strike price. Because the only variable that can affect the settlement amount is Teradyne’s stock price, which is an input to the fair value of a fixed-for-fixed option contract, the convertible note hedge is considered indexed to Teradyne’s common stock. Teradyne assessed whether the convertible note hedge should be classified as equity under ASC 815-40. In the Note Hedge Transactions contract the settlement terms permit net cash settlement or net share settlement, at the option of Teradyne. Therefore, the criteria as set forth in ASC 815-40 were evaluated by Teradyne. In reviewing the criteria, Teradyne noted the following: the convertible note hedge does not require Teradyne to issue shares; there is no requirement to net cash settle the convertible note hedge for failure to make timely filings with the SEC; in the case of termination, the convertible note hedge is settled in the same consideration as the holders of the underlying stock; (4) the counterparty does not have rights that rank higher than those of a shareholder of the stock underlying the convertible note hedge; and (5) there is no requirement to post collateral. Based on its analysis of those criteria, Teradyne concluded that the convertible note hedge should be recorded in equity and no further adjustment should be made in future periods to adjust the value of the convertible note hedge. Teradyne analyzed the Warrant Transactions under ASC 815-40, “Derivatives and Hedging—Contracts in Entity’s Own Equity,” The provisions of ASC 470-20, “ Debt with Conversion and Other Options, ” are applicable to the Notes. ASC 470-20 requires Teradyne to separately account for the liability (debt) and equity (conversion feature) components of the Notes in a manner that reflects Teradyne’s nonconvertible debt borrowing rate at the date of issuance when interest cost is recognized in subsequent periods. Teradyne allocated $100.8 million of the $460.0 million principal amount of the Notes to the equity component, which represents a discount to the debt and will be amortized to interest expense using the effective interest method through December 2023. Accordingly, Teradyne’s effective annual interest rate on the Notes will be approximately 5.0%. The Notes are classified as long-term debt in the balance sheet based on their December 15, 2023 maturity date. Debt issuance costs of approximately $ million are being amortized to interest expense using the effective interest method over the term of the Notes. As of June 30, 2019, debt issuance costs were approximately $ million. The below tables represent the key components of Teradyne’s convertible senior notes: June 30, December 31, (in thousands) Debt Principal $ 460,000 $ 460,000 Unamortized discount 72,757 80,019 Net Carrying amount of convertible debt $ 387,243 $ 379,981 For the Three Months For the Six Months June 30, July 1, June 30, July 1, (in thousands) Contractual interest expense on the coupon $ 1,438 $ 1,438 $ 2,875 $ 2,875 Amortization of the discount component recognized as interest expense 3,653 3,477 7,262 6,911 Total interest expense on the convertible debt $ 5,091 $ 4,915 $ 10,137 $ 9,786 As of June 30, 2019, the remaining unamortized discount was $72.8 million, which will be amortized over 4.5 years using the effective interest rate method. The carrying amount of the equity component was $100.8 million. As of June 30, 2019, the if-converted Revolving Credit Facility On , Teradyne terminated its , which Teradyne entered into with Barclays Bank PLC, on April 27, 2015. The terminated provided for a five-year, senior secured revolving credit facility of up to $ million. |
Prepayments
Prepayments | 6 Months Ended |
Jun. 30, 2019 | |
Prepayments | J. PREPAYMENTS Prepayments consist of the following and are included in prepayments and other assets on the balance sheet: June 30, 2019 December 31, 2018 (in thousands) Contract manufacturer and supplier prepayments $ 139,232 $ 131,642 Prepaid taxes 10,810 9,646 Prepaid maintenance and other services 9,935 8,487 Other prepayments 16,086 12,744 Total prepayments $ 176,063 $ 162,519 |
Deferred Revenue and Customer A
Deferred Revenue and Customer Advances | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Revenue and Customer Advances | K. DEFERRED REVENUE AND CUSTOMER ADVANCES Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances on the balance sheet: June 30, 2019 December 31, (in thousands) Maintenance and training $ 60,331 $ 58,362 Extended warranty 28,716 27,422 Customer advances, undelivered performance obligations and other 38,155 24,677 Total deferred revenue and customer advances $ 127,202 $ 110,461 |
Product Warranty
Product Warranty | 6 Months Ended |
Jun. 30, 2019 | |
Product Warranty | L. PRODUCT WARRANTY Teradyne generally provides a one-year warranty on its products, commencing upon installation, acceptance, delivery or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Balance at beginning of period $ 7,752 $ 7,548 $ 7,909 $ 8,200 Acquisition — 41 14 41 Accruals for warranties issued during the period 2,295 3,348 5,360 6,411 Accruals related to pre-existing 694 (34 ) 2,024 (173 ) Settlements made during the period (2,608 ) (3,767 ) (7,174 ) (7,343 ) Balance at end of period $ 8,133 $ 7,136 $ 8,133 $ 7,136 When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances on the balance sheet. For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Balance at beginning of period $ 27,242 $ 24,590 $ 27,422 $ 24,438 Deferral of new extended warranty revenue 5,476 6,701 11,296 11,839 Recognition of extended warranty deferred revenue (4,002 ) (5,320 ) (10,002 ) (10,306 ) Balance at end of period $ 28,716 $ 25,971 $ 28,716 $ 25,971 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Stock-Based Compensation | M. STOCK-BASED COMPENSATION Under Teradyne’s stock compensation plans, Teradyne grants stock options, restricted stock units and performance-based restricted stock units, and employees are eligible to purchase Teradyne’s common stock through its Employee Stock Purchase Plan (“ESPP”). Time-based restricted stock unit awards granted to employees vest in equal annual installments over . Restricted stock unit awards granted to non-employee directors vest after a period, with % of the award vesting on the earlier of (a) the first anniversary of the grant date or (b) the date of the following year’s Annual Meeting of Shareholders. Teradyne expenses the cost of the restricted stock unit awards subject to time-based vesting, which is determined to be the fair market value of the shares at the date of grant, ratably over the period during which the restrictions lapse. Performance-based restricted stock units (“PRSUs”) granted to Teradyne’s executive officers 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 % to % of the target shares capped at four times the grant date value. The TSR PRSUs will vest upon the three-year anniversary of the grant date. The TSR PRSUs are valued using a Monte Carlo simulation model. The number of units expected to be earned, based upon the achievement of the TSR market condition, is factored into the grant date Monte Carlo valuation. Compensation expense is recognized on a straight-line basis over the shorter of the three-year service period or the period from the grant to the date described in the retirement provisions below. Compensation expense for employees meeting the retirement provisions prior to the grant date will be recognized in full on the date of the grant. Compensation expense is recognized regardless of the eventual number of units that are earned based upon the market condition, provided the executive officer remains an employee at the end of the three-year period. Compensation expense is reversed if at any time during the three-year service period the executive officer is no longer an employee, subject to the retirement and termination eligibility provisions noted below. During the six months ended June 30, 2019 and July 1, 2018, Teradyne granted PRSUs to its executive officers with a performance metric based on three-year cumulative non-GAAP Non-GAAP non-cash non-recurring will be recognized in full on the date of grant. Compensation expense is recognized based on the number of units that are earned based upon the three-year Teradyne PBIT as a percent of Teradyne’s revenue, provided the executive officer remains an employee at the end of the three-year period subject to the retirement and termination eligibility provisions noted below. If a PRSU recipient’s employment ends prior to the determination of the performance percentage due to (1) permanent disability or death or (2) retirement or termination other than for cause, after attaining both at least age sixty During the six months ended June 30, 2019 and July 1, 2018, Teradyne granted 0.1 million and 0.1 million TSR PRSUs, respectively, with a grant date fair value of $51.51 and $54.85, respectively. The fair value was estimated using the Monte Carlo simulation model with the following assumptions: For the Six Months Ended June 30, 2019 July 1, 2018 Risk-free interest rate 2.6 % 2.2 % Teradyne volatility-historical 31.9 % 26.8 % NYSE Composite Index volatility-historical 11.9 % 12.4 % Dividend yield 1.0 % 0.8 % Expected volatility was based on the historical volatility of Teradyne’s stock and the NYSE Composite Index for each of the 2019 and 2018 grants over the most recent three-year period. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of each of the grants. Dividend yield was based upon an estimated annual dividend amount of $0.36 per share for 2019 grants and 2018 grants, divided by Teradyne’s stock price on the grant date of $37.95 $ for the 2018 grant. During the six months ended June 30, 2019 and July 1, 2018, Teradyne granted 0.1 million and 0.1 million, respectively, of PBIT PRSUs with a grant date fair value of $36.88 and $46.62, respectively. During the six months ended June 30 , 2019 , Teradyne granted 0.7 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $36.10 , 0.1 million of service-based restricted stock unit awards to non-employee directors at a weighted average grant date fair value of $ 48.03 and 0.1 million of service-based stock options to executive officers at a weighted average grant date fair value of $ 10.61 . During the six months ended July 1, 2018, Teradyne granted 0.6 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $46.38 , 0.1 million of service-based restricted stock unit awards to non-employee directors at a weighted average grant date fair value of $35.81, and million of service-based stock options to executive officers at a weighted average grant date fair value of $ . Restricted stock unit awards granted to employees vest in equal annual installments over four years. Stock options to purchase Teradyne’s common stock at 100% of the fair market value on the grant date vest in equal annual installments over four years from the grant date and have a maximum term of seven years. The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Six Months Ended June 30, 2019 July 1, 2018 Expected life (years) 5.0 5.0 Risk-free interest rate 2.5 % 2.4 % Volatility-historical 30.1 % 26.4 % Dividend yield 1.0 % 0.8 % Teradyne determined the stock options’ expected life based upon historical exercise data for executive officers, the age of the executive officers and the terms of the stock option grant. Volatility was determined using historical volatility for a period equal to the expected life. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. Dividend yield was based upon an estimated annual dividend amount of $0.36 per share divided by Teradyne’s stock price on the grant date of $37.95 for 2019 grants and $47.70 for the 2018 grant. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) | N. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss), which are presented net of tax, consist of the following: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Six Months Ended June 30, 2019 Balance at December 31, 2018, net of tax of $0, $(521), $(1,081), respectively $ (12,523 ) $ (1,845 ) $ 1,328 $ (13,040 ) Other comprehensive income before reclassifications, net of tax of $0, $1,256, $0, respectively 983 4,637 — 5,620 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(26), $(21), respectively — (97 ) (74 ) (171 ) Net current period other comprehensive income (loss), net of tax of $0, $1,230, $(21), respectively 983 4,540 (74 ) 5,449 Balance at June 30, 2019, net of tax of $0, $709, $(1,102), respectively $ (11,540 ) $ 2,695 $ 1,254 $ (7,591 ) Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Six Months Ended July 1, 2018 Balance at December 31, 2017, net of tax of $0, $1,815, $(932), respectively $ 15,919 $ 1,362 $ 1,495 $ 18,776 Other comprehensive income (loss) before reclassifications, net of tax of $0, $(774), $0, respectively (18,781 ) (2,489 ) — (21,270 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $11, $(35), respectively — 1,469 (123 ) 1,346 Net current period other comprehensive income (loss), net of tax of $0, $(733), $(35), respectively (18,781 ) (1,020 ) (123 ) (19,924 ) Reclassification of income tax effects from the Tax Reform Act, net of tax of $0, $(691), $(78), respectively (a) — 691 78 769 Reclassification of unrealized gains on equity securities, net of tax of $0, $(902), $0, respectively (b) — (3,125 ) — (3,125 ) Balance as July 1, 2018, net of tax of $0, $(511), $(1,045), respectively $ (2,862 ) $ (2,092 ) $ 1,450 $ (3,504 ) (a) In the six months ended July 1, 2018, Teradyne early adopted the ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” (b) In the six months ended July 1, 2018, Teradyne adopted the ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” Reclassifications out of accumulated other comprehensive income (loss) to the statement of operations for the three and six months ended June 30, 2019 and July 1, 2018 were as follows: Details about Accumulated Other Comprehensive Income Components For the Three Months Ended For the Six Months Ended Affected Line Item in the Statements of Operations June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Available-for-sale Unrealized gains (losses), net of tax of $6, $68, $26, $(11), $ 27 $ 199 $ 97 $ (1,469 ) Interest income Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $11, $18, 37 61 74 123 (a) Total reclassifications, net of tax of $17, $86, $47, $24, respectively $ 64 $ 260 $ 171 $ (1,346 ) Net income (a) The amortization of prior service benefit is included in the computation of net periodic pension cost and postretirement benefit. See Note R: “Retirement Plans.” |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets | O. 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” on December 31 of each fiscal year unless interim indicators of impairment exist. Goodwill is considered impaired when the net book value of a reporting unit exceeds its estimated fair value. The changes in the carrying amount of goodwill by reportable segments for the six months ended June 30, 2019, were as follows: Industrial Automation System Test Wireless Test Semiconductor Test Total (in thousands) Balance at December 31, 2018 Goodwill $ 363,358 $ 158,699 $ 361,819 $ 260,540 $ 1,144,416 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) 363,358 10,516 7,976 — 381,850 Lemsys acquisition — — — 1,428 1,428 Foreign currency translation adjustment 626 — — 32 658 Balance at June 30, 2019 Goodwill 363,984 158,699 361,819 262,000 1,146,502 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) $ 363,984 $ 10,516 $ 7,976 $ 1,460 $ 383,936 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: June 30, 2019 Gross Carrying Amount (1)(2) Accumulated Amortization (2) Foreign Adjustment Net Carrying Amount (in thousands) Developed technology $ 337,198 $ (265,951 ) $ (4,035 ) $ 67,212 Customer relationships 100,313 (87,496 ) (285 ) 12,532 Tradenames and trademarks 64,670 (34,131 ) (789 ) 29,750 Total intangible assets $ 502,181 $ (387,578 ) $ (5,109 ) $ 109,494 December 31, 2018 Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) Developed technology $ 336,308 $ (252,080 ) $ (4,079 ) $ 80,149 Customer relationships 97,153 (83,448 ) (340 ) 13,365 Tradenames and trademarks 64,420 (31,653 ) (799 ) 31,968 Non-compete 320 (320 ) — — Backlog 30 (30 ) — — Total intangible assets $ 498,231 $ (367,531 ) $ (5,218 ) $ 125,482 (1) Includes $4.6 million of intangible assets from Lemsys acquisition. (2) $0.7 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. Aggregate intangible asset amortization expense was $10.1 million and $20.7 million, respectively, for the three and six months ended June 30, 2019 and $9.8 million and $17.5 million, respectively, for the three and six months ended July 1, 2018. Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2019 (remainder) 18,745 2020 25,037 2021 14,778 2022 13,885 2023 13,410 Thereafter 23,639 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Net Income per Common Share | P. 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 Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 97,397 $ 101,037 $ 206,535 $ 188,010 Weighted average common shares-basic 171,241 190,730 172,387 192,992 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 4,364 2,643 3,275 3,520 Convertible note hedge warrant shares (2) 1,778 — 889 915 Restricted stock units 1,002 1,219 1,012 1,444 Stock options 183 274 202 298 Employee stock purchase plan 22 43 16 28 Dilutive potential common shares 7,349 4,179 5,394 6,205 Weighted average common shares-diluted 178,590 194,909 177,781 199,197 Net income per common share-basic $ 0.57 $ 0.53 $ 1.20 $ 0.97 Net income per common share-diluted $ 0.55 $ 0.52 $ 1.16 $ 0.94 (1) 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 of $ 31.70 (2) Convertible note hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.78, multiplied by 14.5 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. The computation of diluted net income per common share for the three and six months ended June 30, 2019 excludes the effect of the potential vesting of 0.2 million and 0.4 million of stock options, respectively because the effect would have been anti-dilutive. The computation of diluted net income per common share for the three and six months ended July 1, 2018 excludes the effect of the potential vesting of 0.6 million and 0.5 million shares, respectively of restricted stock units because the effect would have been anti-dilutive. |
Restructuring and Other
Restructuring and Other | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Other | Q. RESTRUCTURING AND OTHER During the three months ended June 30, 2019, Teradyne recorded an $ million credit for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $ million recorded for severance charges primarily in Semiconductor Test and $ million of acquisition related compensation and expenses. During the three months ended July 1, 2018, Teradyne recorded a $2.5 million charge for acquisition related expenses, and $ million for employee severance charges, primarily in Semiconductor Test, partially offset by a $ million credit for the decrease in the fair value of the Universal Robots. During the six months ended June 30, 2019, Teradyne recorded an $ million credit for the decrease in the fair value of the MiR contingent consideration liability, partially offset by $ million of acquisition related compensation and expenses and $ million recorded for severance charges primarily in Semiconductor Test. During the six months ended July 1, 2018, Teradyne recorded $6.3 million for severance charges, primarily in Semiconductor Test and Industrial Automation, $3.3 million for acquisition related expenses, partially offset by an $8.5 million credit for the decrease in the fair value of the Universal Robots contingent consideration liability. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Plans | R. RETIREMENT PLANS ASC 715, “Compensation—Retirement Benefits” Defined Benefit Pension Plans Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain non-U.S. In the six months ended June 30, 2019, Teradyne contributed $1.3 million to the U.S. supplemental executive defined benefit pension plan and $0.4 million to certain qualified pension plans for non-U.S. For the three and six months ended June 30, 2019 and July 1, 2018, Teradyne’s net periodic pension cost was comprised of the following: For the Three Months Ended June 30, 2019 July 1, 2018 United States Foreign United States Foreign (in thousands) Service cost $ 399 $ 192 $ 545 $ 200 Interest cost 1,799 176 2,430 175 Expected return on plan assets (1,510 ) (7 ) (2,550 ) (5 ) Amortization of prior service cost — — 14 — Net actuarial loss (gain) 252 — (189 ) — Settlement loss — — 78 — Total net periodic pension cost $ 940 $ 361 $ 328 $ 370 For the Six Months Ended June 30, 2019 July 1, 2018 United States Foreign United States Foreign (in thousands) Service cost $ 804 $ 381 $ 1,116 $ 426 Interest cost 3,595 349 5,427 372 Expected return on plan assets (3,021 ) (14 ) (5,919 ) (10 ) Amortization of prior service cost — — 29 — Net actuarial loss (gain) 252 — (189 ) — Settlement loss — — 78 — Total net periodic pension cost $ 1,630 $ 716 $ 542 $ 788 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 . Death benefits provide a fixed sum to retirees’ survivors and are available to all retirees. Substantially all of Teradyne’s current U.S. employees could become eligible for these benefits, and the existing benefit obligation relates primarily to those employees. For the three and six months ended June 30, 2019 and July 1, 2018, Teradyne’s net periodic postretirement benefit cost was comprised of the following: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Service cost $ 11 $ 10 $ 20 $ 19 Interest cost 88 48 173 98 Amortization of prior service credit (48 ) (93 ) (95 ) (187 ) Net actuarial loss 196 40 196 40 Special termination benefits — 1,192 — 2,818 Total net periodic postretirement benefit cost $ 247 $ 1,197 $ 294 $ 2,788 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies | S. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of June 30, 2019, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $306.9 million, of which $300.7 million is for less than one year. Legal Claims Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on Teradyne’s results of operations, financial condition or cash flows. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes | T. 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 Six Months Ended June 30, July 1, June 30, July 1, US statutory federal tax rate 21.0 % 21.0 % 21.0 % 21.0 % Discrete expense related to U.S. transition tax 11.2 % 0.0 % 6.5 % 0.0 % International provisions of the U.S. Tax Cuts and Jobs Act of 2017 0.8 % (1.4 %) 0.8 % (1.4 %) Discrete benefit related to equity compensation (0.5 %) (0.1 %) (2.0 %) (3.5 %) Foreign taxes (4.9 %) (3.4 %) (4.9 %) (3.4 %) Tax credits (2.5 %) (2.1 %) (2.5 %) (2.1 %) Discrete benefit related to release of reserves for uncertain tax positions (0.1 %) 0.0 % (12.9 %) 0.0 % Other, net 0.8 % 1.8 % 2.3 % 2.3 % Effective tax rate 25.8 % 15.8 % 8.3 % 12.9 % 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 June 30, 2019, 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 June 30, 2019 and December 31, 2018, Teradyne had $13.4 million and $43.4 million, respectively, of reserves for uncertain tax positions. The $30.0 million net decrease in reserves for uncertain tax positions is primarily composed of reductions in uncertain tax positions amounting to $22.4 million related to transfer pricing and $7.3 million associated with U.S. research and development tax credits. These reductions resulted from the conclusion of the U.S. Federal income tax audit for the year ended December 31, 2015. As of June 30, 2019, Teradyne does not anticipate a material change in the balance of unrecognized tax benefits during the next twelve months. On July 27, 2015, in Altera Corp. v. Commissioner (“Altera”), the U.S. Tax Court issued an opinion invalidating the regulations relating to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was issued by the Tax Court in December 2015. The IRS appealed the decision in June 2016. On July 24, 2018, the Ninth Circuit Federal Court issued a decision that was subsequently withdrawn and a reconstituted panel has conferred on the appeal. On June 7, 2019, the Ninth Circuit Federal Court upheld the cost-sharing regulations. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits or obligations, the outcome of the appeals process, and questions regarding jurisdiction, Teradyne has not established any income tax reserves as of June 30, 2019 related to Altera. Teradyne estimates that including stock-based compensation in Teradyne’s intercompany cost-sharing arrangement could result in a potential tax reserve of $5 million to $11 million. Teradyne will continue to monitor ongoing developments and potential impacts to our consolidated financial statements. Teradyne recognizes interest and penalties related to income tax matters in income tax expense. As of June 30, 2019 and December 31, 2018, $0.4 million and $0.3 million, respectively, of interest and penalties were accrued for uncertain tax positions. For the six months ended June 30, 2019 and July 1, 2018, expense of $0.1 million and $0.1 million, respectively, was recorded for interest and penalties related to income tax items. Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements of an agreement with the Singapore Economic Development Board under which certain headcount and spending requirements must be met. The tax savings due to the tax holiday for the six months ended June 30, 2019 was $7.0 million, or $0.04 per diluted share. The tax savings due to the tax holiday for the six months ended July 1, 2018 was $4.8 million, or $0.02 per diluted share. The tax holiday is scheduled to expire on December 31, 2020. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | U. SEGMENT INFORMATION Teradyne has four reportable segments (Semiconductor Test, System Test, Industrial Automation and Wireless Test). Each of the Semiconductor Test, System Test, and Wireless Test segments is also an individual operating segment. The Industrial Automation reportable segment consists of operating segments with discrete financial information, which have been combined into one reportable segment as they share similar economic characteristics, types of products, production processes, distribution channels, and currency risks. The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The System Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace instrumentation test, storage test and circuit-board test. The Industrial Automation segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms, autonomous mobile robots and advanced robotic control software. The Wireless Test segment includes operations related to the design, manufacturing and marketing of wireless test products and services. Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income (loss) before income taxes. The accounting policies of the business segments in effect are described in Note B: “Accounting Policies” in Teradyne’s Annual Report on Form 10-K for the year ended December 31, 2018, and Note B: “Accounting Policies” in this filing for any changes in the three and six months ended June 30, 2019. Segment information for the three and six months ended June 30, 2019 and July 1, 2018 is as follows: Semiconductor Test Industrial Automation System Test Wireless Test Corporate and Other Consolidated (in thousands) Three Months Ended June 30, 2019 Revenues $ 374,898 $ 74,726 $ 73,407 $ 41,236 $ (89 ) $ 564,178 Income (loss) before income taxes (1)(2) 91,355 (3,730 ) 23,535 10,930 9,087 131,177 Total assets (3) 745,073 601,676 123,460 93,232 1,108,073 2,671,514 Three Months Ended July 1, 2018 Revenues $ 360,088 $ 62,057 $ 69,682 $ 35,212 $ (110 ) $ 526,929 Income (loss) before income taxes (1)(2) 91,159 (2,922 ) 20,352 10,308 1,115 120,012 Total assets (3) 765,484 597,293 107,199 77,638 1,384,106 2,931,720 Six Months Ended June 30, 2019 Revenues $ 715,751 $ 140,862 $ 131,627 $ 70,277 $ (240 ) $ 1,058,277 Income (loss) before income taxes (1)(2) 174,404 (9,025 ) 38,875 14,558 6,344 225,156 Total assets (3) 745,073 601,676 123,460 93,232 1,108,073 2,671,514 Six Months Ended July 1, 2018 Revenues $ 733,416 $ 110,891 $ 112,702 $ 57,719 $ (332 ) $ 1,014,396 Income (loss) before income taxes (1)(2) 179,238 (2,138 ) 26,240 10,772 1,719 215,831 Total assets (3) 765,484 597,293 107,199 77,638 1,384,106 2,931,720 (1) Included in Corporate and Other are: contingent consideration adjustments, severance charges, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, acquisition related charges, and pension and postretirement plans actuarial losses. (2) Included in the income (loss) before income taxes for each of the segments are charges and credits related to restructuring and other and inventory charges. (3) Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. Included in the Semiconductor Test segment are charges in the following line items in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Cost of revenues—inventory charge $ 2,278 $ 1,613 $ 3,452 $ 3,779 Restructuring and other—employee severance 357 2,179 924 5,940 Included in the Industrial Automation segment are charges in the following line items in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Restructuring and other—acquisition related expenses and compensation $ 434 $ — $ 1,695 $ — Restructuring and other—employee severance 202 218 297 338 — — 416 — Included in the System Test segment are charges in the following line item in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Cost of revenues—inventory charge $ 295 $ 256 $ 763 $ 576 Included in the Wireless Test segment are charges in the following line items in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Cost of revenues—inventory charge $ 829 $ 627 $ 1,168 $ 1,463 Included in Corporate and Other are charges and credits in the following line items in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Restructuring and other—MiR contingent consideration adjustment $ (11,671 ) $ — $ (8,668 ) $ — Restructuring and other—Universal Robots contingent consideration adjustment — (3,500 ) — (8,468 ) Restructuring and other—acquisition related expenses and compensation — 2,544 — 3,318 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | V. SHAREHOLDERS’ EQUITY Stock Repurchase Program In January 2018, Teradyne’s Board of Directors cancelled the December 2016 stock repurchase program and authorized a new stock repurchase program for up to $1.5 billion of common stock. Teradyne intends to repurchase $500 million in 2019. During the six months ended June 30, 2019, Teradyne repurchased 6.5 million shares of common stock for $247.2 million at an average price of $38.20 per share. The cumulative repurchases under the $1.5 billion stock repurchase program as of June 30, 2019 totaled 28.1 million shares of common stock for $1.1 billion at an average price per share of $38.09. During the six months ended July 1, 2018, Teradyne repurchased 8.8 million shares of common stock for $360.8 million at an average price of $40.82 per share. 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 2019 and May 2019, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.09 per share. Dividend payments for the three and six months ended June 30, 2019 were $15.4 million and $31.0 million, respectively. In January 2018 and May 2018, Teradyne’s Board of Directors declared a quarterly cash dividend of $0.09 per share. Dividend payments for the three and six months ended July 1, 2018 were $17.1 million and $34.7 million, respectively. 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 | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events | W. SUBSEQUENT EVENTS Gregory Beecher retired as Vice President and Senior Advisor of Teradyne effective July 17, 2019 (the “Retirement Date”). In connection with the retirement, Teradyne entered into an agreement on July 17, 2019 Under the Retirement Agreement, Mr. Beecher’s unvested time-based restricted stock units and stock options granted prior to 2019 will continue to vest in accordance with their terms; unvested time-based restricted stock units and stock options granted in 2019 prior to the Retirement Date will continue to vest during the Non-Competition Period in a pro-rated amount based on the number of days that Mr. Beecher was employed during 2019; unvested, performance-based restricted stock units awarded prior to 2019 will continue to vest in accordance with their terms; unvested, performance-based restricted stock units awarded in 2019 will vest on the date the amount of shares underlying the performance-based restricted stock units are determined in a pro-rated amount of shares based on the number of days that Mr. Beecher was employed during the 365 calendar day period Teradyne will record a stock based compensation expense of approximately $2.5 million in the third quarter of 2019 related to the Retirement Agreement. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation | Basis of Presentation The consolidated interim financial statements include the accounts of Teradyne and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair statement of such interim financial statements. Certain prior year amounts were reclassified to conform to the current year presentation. The December 31, 2018 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne’s Annual Report on Form 10-K, |
Preparation of Financial Statements and Use of Estimates | Preparation of Financial Statements and Use of Estimates The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Actual results may differ significantly from these estimates. |
Investment in Other Company | Investment in Other Company Teradyne holds an investment in a private company that develops and sells advanced wearable technology . Teradyne does not have the ability to exert significant influence over the company. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer on a quarterly basis. See Note D: “Acquisitions and Investment in Other Company.” |
Leases | Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” right-of-use 2018-11, “Leases (Topic 842): Targeted Improvements,” under the transition guidance which included the carry-forward of historical lease classification. Adoption of ASC resulted in recording ROU assets and lease liabilities of approximately $ million and $ million, respectively. Operating lease liabilities were calculated using the discount rate on January , . The adoption of ASC did not have a material impact on beginning retained earnings, the consolidated statement of operations, cash flows, or earnings per share. Under ASC 842, a contract is or contains a lease when Teradyne has the right to control the use of an identified asset. Teradyne determines if an arrangement is a lease at inception of the contract, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The commencement date of the lease is the date that the lessor makes an underlying asset available for use by Teradyne. As of June 30, 2019, Teradyne does not have material leases that have not yet commenced. Teradyne determines if the lease is operating or finance at the lease commencement date based upon the terms of the lease and the nature of the asset. The lease term used to calculate the lease liability includes options to extend or terminate the lease when it is reasonably certain that the option will be exercised. For leases commencing after January 1, 2019, the lease liability is measured at the present value of future lease payments, discounted using the discount rate for the lease at the commencement date. As Teradyne is typically unable to determine the implicit rate, Teradyne uses an incremental borrowing rate based on the lease term and economic environment at commencement date. Teradyne initially measures payments based on an index by using the applicable rate at lease commencement. Variable payments that do not depend on an index are not included in the lease liability and are recognized as they are incurred. The ROU asset is initially measured as the amount of lease liability, adjusted for any initial lease costs, prepaid lease payments, and reduced by any lease incentives. Teradyne’s contracts often include non-lease non-lease |
Acquisitions and Investment I_2
Acquisitions and Investment In Other Company (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Final Allocation of Purchase Price | The following table represents the final allocation of the purchase price: Purchase Price Allocation (in thousands) Goodwill $ 135,976 Intangible assets 80,670 Tangible assets acquired and liabilities assumed: Current assets 6,039 Non-current 1,336 Accounts payable and current liabilities (7,336 ) Long-term deferred tax liabilities (18,007 ) Other long-term liabilities (900 ) Total purchase price $ 197,778 |
Components of Intangible Assets and Their Estimated Useful Lives at Acquisition Date | Components of these intangible assets and their estimated useful lives at the acquisition date are as follows: Fair Value Estimated Useful Life (in thousands) (in years) Developed technology $ 58,900 7.0 Trademarks and tradenames 13,240 11.0 Customer relationships 8,500 2.5 Backlog 30 0.2 Total intangible assets $ 80,670 7.2 |
Pro Forma Results Under Acquisitions | The unaudited pro forma results are not necessarily indicative of what actually would have occurred had the acquisition been in effect for the periods presented: For the Three Months For the Six Months Ended July 1, 2018 July 1, 2018 (in thousands) Revenue $ 528,238 $ 1,021,194 Net income 101,780 186,787 Net income per common share: Basic $ 0.53 $ 0.97 Diluted $ 0.52 $ 0.94 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition | The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition. For the Three Months Ended June 30, 2019 Semiconductor Test System Test Industrial Automation Wireless Corporate Consolidated System Memory Defense/ Aerospace Storage Production Universal Mobile Energid (in thousands) Americas Point in time $ 7,426 $ 8,059 $ 17,225 $ 3,703 $ 1,341 $ 16,938 $ 2,783 $ — $ 5,250 $ (89 ) $ 62,636 Over time 8,175 724 6,850 — 792 255 — 787 676 — 18,259 Europe, Middle East and Africa Point in time 9,819 2,016 211 — 2,974 26,545 5,041 — 620 — 47,226 Over time 5,212 284 505 — 1,615 399 — 477 48 — 8,540 Asia Pacific Point in time 247,885 43,909 163 27,672 6,848 18,532 2,681 — 33,366 — 381,056 Over time 36,566 3,293 329 2,310 775 279 — 9 1,242 — 44,803 Lease Revenue 1,530 — — — 94 — — — 34 — 1,658 Total $ 316,613 $ 58,285 $ 25,283 $ 33,685 $ 14,439 $ 62,948 $ 10,505 $ 1,273 $ 41,236 $ (89 ) $ 564,178 For the Three Months Ended July 1, 2018 Semiconductor Test System Test Industrial Automation Wireless Corporate Consolidated SOC Memory Defense/ Aerospace Storage Production Universal Mobile Energid (in thousands) Americas Point in time $ 12,111 $ 2,827 $ 15,256 $ 5 $ 1,429 $ 16,053 $ 1,199 $ — $ 4,716 $ (110 ) $ 53,486 Over time 8,934 710 6,237 — 795 327 — — 122 — 17,125 Europe, Middle East and Africa Point in time 10,227 847 447 — 4,849 26,616 2,000 — 26 — 45,012 Over time 5,689 254 539 — 1,713 526 — — 257 — 8,978 Asia Pacific Point in time 218,352 59,633 385 31,824 3,741 13,895 1,310 — 27,663 — 356,803 Over time 34,951 2,285 258 1,428 744 131 — — 2,103 — 41,900 Lease Revenue 3,268 — — — 32 — — — 325 — 3,625 Total $ 293,532 $ 66,556 $ 23,122 $ 33,257 $ 13,303 $ 57,548 $ 4,509 $ — $ 35,212 $ (110 ) $ 526,929 For the Six Months Ended June 30, 2019 Semiconductor Test System Test Industrial Automation Wireless Corporate Consolidated SOC Memory Defense/ Aerospace Storage Production Universal Mobile Energid (in thousands) Americas Point in time $ 15,403 $ 16,110 $ 32,007 $ 5,295 $ 4,595 $ 32,235 $ 6,322 $ — $ 7,340 $ (240 ) $ 119,067 Over time 16,365 1,436 13,300 — 1,521 501 — 1,047 827 — 34,997 Europe, Middle East and Africa Point in time 20,851 2,168 250 — 8,038 52,448 8,883 — 1,356 — 93,994 Over time 10,493 563 974 — 3,169 815 — 766 93 — 16,873 Asia Pacific Point in time 467,698 79,415 426 44,279 10,483 32,709 4,408 — 57,995 — 697,413 Over time 75,479 6,573 1,093 4,364 1,696 507 — 221 2,601 — 92,534 Lease Revenue 3,197 — — — 137 — — — 65 — 3,399 Total $ 609,486 $ 106,265 $ 48,050 $ 53,938 $ 29,639 $ 121,249 $ 19,613 $ 2,034 $ 70,277 $ (240 ) $ 1,058,277 For the Six Months Ended July 1, 2018 Semiconductor Test System Test Industrial Automation Wireless Corporate Consolidated SOC Memory Defense/ Aerospace Storage Production Universal Mobile Energid (in thousands) Americas Point in time $ 21,711 $ 5,691 $ 26,853 $ 284 $ 3,189 $ 30,190 $ 1,199 $ — $ 9,695 $ (332 ) $ 98,480 Over time 17,517 1,406 12,425 — 1,552 652 — — 233 — 33,785 Europe, Middle East and Africa Point in time 22,352 986 1,943 — 8,886 49,190 2,000 — 1,066 — 86,423 Over time 10,888 523 1,090 — 3,272 668 — — 484 — 16,925 Asia Pacific Point in time 446,543 125,904 487 41,946 5,603 25,478 1,310 — 41,329 — 688,600 Over time 68,173 4,607 466 2,961 1,479 204 — — 4,399 — 82,289 Lease Revenue 7,115 — — — 266 — — — 513 — 7,894 Total $ 594,299 $ 139,117 $ 43,264 $ 45,191 $ 24,247 $ 106,382 $ 4,509 $ — $ 57,719 $ (332 ) $ 1,014,396 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Composition of Inventories, Net | Inventories, net consisted of the following at June 30, 2019 and December 31, 2018: June 30, December 31, (in thousands) Raw material $ 96,824 $ 89,365 Work-in-process 31,676 31,014 Finished goods 35,961 33,162 $ 164,461 $ 153,541 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth by fair value hierarchy Teradyne’s financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018. June 30, 2019 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 235,370 $ — $ — $ 235,370 Cash equivalents 223,150 36,587 — 259,737 Available-for-sale U.S. Treasury securities — 190,322 — 190,322 Commercial paper — 154,910 — 154,910 Corporate debt securities — 94,431 — 94,431 Certificates of deposit and time deposits — 19,723 — 19,723 U.S. government agency securities — 9,838 — 9,838 Debt mutual funds 3,299 — — 3,299 Non-U.S. — 388 — 388 Equity securities: Mutual funds 26,317 — — 26,317 $ 488,136 $ 506,199 $ — $ 994,335 Derivative assets — 34 — 34 Total $ 488,136 $ 506,233 $ — $ 994,369 Liabilities Contingent consideration $ — $ — $ 26,847 $ 26,847 Derivative liabilities — 324 — 324 Total $ — $ 324 $ 26,847 $ 27,171 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 458,520 $ 36,587 $ — $ 495,107 Marketable securities — 400,227 — 400,227 Long-term marketable securities 29,616 69,385 — 99,001 Prepayments — 34 — 34 Total $ 488,136 $ 506,233 $ — $ 994,369 Liabilities . Other current liabilities $ — $ 324 $ — $ 324 Contingent consideration — — 11,753 11,753 Long-term contingent consideration — — 15,094 15,094 Total $ — $ 324 $ 26,847 $ 27,171 December 31, 2018 Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) Assets Cash $ 312,512 $ — $ — $ 312,512 Cash equivalents 253,525 360,715 — 614,240 Available-for-sale U.S. Treasury securities — 109,721 — 109,721 Commercial paper — 86,117 — 86,117 Corporate debt securities — 40,020 — 40,020 U.S. government agency securities — 9,611 — 9,611 Certificates of deposit and time deposits — 7,604 — 7,604 Debt mutual funds 3,187 — — 3,187 Non-U.S. — 376 — 376 Equity securities: Mutual funds 21,191 — — 21,191 $ 590,415 $ 614,164 $ — $ 1,204,579 Derivative assets — 79 — 79 Total $ 590,415 $ 614,243 $ — $ 1,204,658 Liabilities Contingent consideration $ — $ — $ 70,543 $ 70,543 Derivative liabilities — 514 — 514 Total $ — $ 514 $ 70,543 $ 71,057 Reported as follows: (Level 1) (Level 2) (Level 3) Total (in thousands) Assets Cash and cash equivalents $ 566,037 $ 360,715 $ — $ 926,752 Marketable securities — 190,096 — 190,096 Long-term marketable securities 24,378 63,353 — 87,731 Prepayments — 79 — 79 Total $ 590,415 $ 614,243 $ — $ 1,204,658 Liabilities Other accrued liabilities $ — $ 514 $ — $ 514 Contingent consideration — — 34,865 34,865 Long-term contingent consideration — — 35,678 35,678 Total $ — $ 514 $ 70,543 $ 71,057 |
Schedule of Changes in Fair Value of Level 3 Contingent Consideration | Changes in the fair value of Level 3 contingent consideration for the three and six months ended June 30, 2019 and July 1, 2018 were as follows: For the Three Months Ended For the Six Months Ended June 30, July 1, June 30, July 1, (in thousands) Balance at beginning of period $ 38,313 $ 15,581 $ 70,543 $ 45,102 Fair value adjustment (a) (11,672 ) (3,500 ) (8,701 ) (8,468 ) Foreign currency impact 206 (2,566 ) (405 ) (2,566 ) Payments (b) — — (34,590 ) (24,553 ) Acquisition of MiR — 51,399 — 51,399 Balance at end of period $ 26,847 $ 60,914 $ 26,847 $ 60,914 (a) In the three and six months ended June 30, 2019, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was decreased by $11.7 million and $8.7 million, respectively, primarily due to a decrease in the forecasted revenue. In the three and six months ended July 1, 2018, the fair value of contingent consideration for the earn-out in connection with the acquisition of Universal Robots A/S (“Universal Robots”) was decreased by $ 3.5 (b) In the six months ended June 30, 2019, Teradyne paid $30.8 million and $3.8 million of contingent consideration for the earn-outs in connection with the acquisition of MiR and Universal Robots, respectively. In the six months ended July 1, 2018, Teradyne paid $24.6 million of contingent consideration for the earn-out in connection with the acquisition of Universal Robots. |
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument | The following table provides quantitative information associated with the fair value measurement of Teradyne’s Level 3 financial instruments: Liability June 30, 2019 Valuation Technique Unobservable Inputs Weighted Average (in thousands) Contingent consideration (MiR) $ 26,847 Monte Carlo Simulation Revenue volatility 19.0 Discount rate 0.2% |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of Teradyne’s financial instruments at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Assets Cash and cash equivalents $ 495,107 $ 495,107 $ 926,752 $ 926,752 Marketable securities 499,228 499,228 277,827 277,827 Derivative assets 34 34 79 79 Liabilities Contingent consideration 26,847 26,847 70,543 70,543 Derivative liabilities 324 324 514 514 Convertible debt (1) 387,243 747,213 379,981 547,113 (1) The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. |
Schedule of Available-for-Sale Marketable Securities | The following table summarizes the composition of available-for-sale June 30, 2019 Available-for-Sale Fair Market Cost Unrealized Gain Unrealized (Loss) Fair Value Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 189,927 $ 668 $ (273 ) $ 190,322 $ 18,195 Commercial paper 154,903 9 (2 ) 154,910 10,322 Corporate debt securities 91,553 3,035 (157 ) 94,431 4,581 Certificates of deposit and time deposits 19,717 6 — 19,723 2,232 U.S. government agency securities 9,829 15 (6 ) 9,838 2,947 Debt mutual funds 3,187 112 — 3,299 — Non-U.S. 388 — — 388 — $ 469,504 $ 3,845 $ (438 ) $ 472,911 $ 38,277 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Market Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 399,852 $ 391 $ (16 ) $ 400,227 $ 21,708 Long-term marketable securities 69,652 3,454 (422 ) 72,684 16,569 $ 469,504 $ 3,845 $ (438 ) $ 472,911 $ 38,277 The following table summarizes the composition of available-for-sale December 31, 2018 Available-for-Sale Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) U.S. Treasury securities $ 110,969 $ 112 $ (1,360 ) $ 109,721 $ 75,040 Commercial paper 86,130 13 (26 ) 86,117 85,094 Corporate debt securities 41,133 432 (1,545 ) 40,020 24,767 U.S. government agency securities 9,646 1 (36 ) 9,611 7,077 Certificates of deposit and time deposits 7,604 — — 7,604 — Debt mutual funds 3,153 34 — 3,187 — Non-U.S. 376 — — 376 — $ 259,011 $ 592 $ (2,967 ) $ 256,636 $ 191,978 Reported as follows: Cost Unrealized Gain Unrealized (Loss) Fair Value Fair Market Value of Investments with Unrealized Losses (in thousands) Marketable securities $ 190,100 $ 88 $ (92 ) $ 190,096 $ 140,262 Long-term marketable securities 68,911 504 (2,875 ) 66,540 51,716 $ 259,011 $ 592 $ (2,967 ) $ 256,636 $ 191,978 |
Contractual Maturities of Investments Held | The contractual maturities of investments in available-for-sale June 30, 2019 Cost Fair Market Value (in thousands) Due within one year $ 399,852 $ 400,227 Due after 1 year through 5 years 12,304 12,411 Due after 5 years through 10 years 14,101 14,156 Due after 10 years 40,060 42,818 Total $ 466,317 $ 469,612 |
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value | The following table summarizes the fair value of derivative instruments as of June 30, 2019 and December 31, 2018: Balance Sheet Location June 30, December 31, (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts – derivative assets Prepayments $ 34 $ 79 Foreign exchange contracts – Other current liabilities (324 ) (514 ) Total derivatives $ (290 ) $ (435 ) |
Schedule of Effect of Derivative Instruments on Statement of Operations Recognized | The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and six months ended June 30, 2019 and July 1, 2018. Location of Losses (Gains) Recognized in Statement of Operations For the Three Months Ended For the Six Months Ended June 30, July 1, June 30, July 1, (in thousands) Derivatives not designated as hedging instruments: Foreign exchange contracts Other (income) expense, net $ 239 $ 1,826 $ 4,173 $ 3,401 (1) The table does not reflect the corresponding gains and losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies. (2) For the three months ended June 30, 2019, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.3 million. For the six months ended June 30, 2019, net gains from the remeasurement of monetary assets and liabilities denominated in (3) For the three and six months ended July 1, 2018, net gains from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.9 million and $2.5 million, respectively. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: For the Three Months For the Six Months June 30, 2019 June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows: $ 4,993 $ 10,052 Right-of-use 9,675 15,412 |
Schedule of operating lease, maturity | Maturities of lease liabilities as of June 30, 2019 were as follows: Operating Lease (in thousands) 2019 $ 10,725 2020 19,177 2021 16,510 2022 12,226 2023 5,849 Thereafter 12,583 Total lease payments 77,070 Less imputed interest (12,569 ) Total lease liabilities $ 64,501 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2018, future non-cancelable Operating Lease (in thousands) 2019 $ 19,570 2020 18,293 2021 13,578 2022 9,693 2023 5,449 Thereafter 9,472 Total lease payments $ 76,055 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Components of Convertible Senior Notes | The below tables represent the key components of Teradyne’s convertible senior notes: June 30, December 31, (in thousands) Debt Principal $ 460,000 $ 460,000 Unamortized discount 72,757 80,019 Net Carrying amount of convertible debt $ 387,243 $ 379,981 For the Three Months For the Six Months June 30, July 1, June 30, July 1, (in thousands) Contractual interest expense on the coupon $ 1,438 $ 1,438 $ 2,875 $ 2,875 Amortization of the discount component recognized as interest expense 3,653 3,477 7,262 6,911 Total interest expense on the convertible debt $ 5,091 $ 4,915 $ 10,137 $ 9,786 |
Prepayments (Tables)
Prepayments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Prepayments and other assets | Prepayments consist of the following and are included in prepayments and other assets on the balance sheet: June 30, 2019 December 31, 2018 (in thousands) Contract manufacturer and supplier prepayments $ 139,232 $ 131,642 Prepaid taxes 10,810 9,646 Prepaid maintenance and other services 9,935 8,487 Other prepayments 16,086 12,744 Total prepayments $ 176,063 $ 162,519 |
Deferred Revenue and Customer_2
Deferred Revenue and Customer Advances (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Revenue and Customer Advances | Deferred revenue and customer advances consist of the following and are included in short and long-term deferred revenue and customer advances on the balance sheet: June 30, 2019 December 31, (in thousands) Maintenance and training $ 60,331 $ 58,362 Extended warranty 28,716 27,422 Customer advances, undelivered performance obligations and other 38,155 24,677 Total deferred revenue and customer advances $ 127,202 $ 110,461 |
Product Warranty (Tables)
Product Warranty (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Accrued Liabilities | The warranty balance below is included in other accrued liabilities on the balance sheet. For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Balance at beginning of period $ 7,752 $ 7,548 $ 7,909 $ 8,200 Acquisition — 41 14 41 Accruals for warranties issued during the period 2,295 3,348 5,360 6,411 Accruals related to pre-existing 694 (34 ) 2,024 (173 ) Settlements made during the period (2,608 ) (3,767 ) (7,174 ) (7,343 ) Balance at end of period $ 8,133 $ 7,136 $ 8,133 $ 7,136 |
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances | The balance below is included in short and long-term deferred revenue and customer advances on the balance sheet. For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Balance at beginning of period $ 27,242 $ 24,590 $ 27,422 $ 24,438 Deferral of new extended warranty revenue 5,476 6,701 11,296 11,839 Recognition of extended warranty deferred revenue (4,002 ) (5,320 ) (10,002 ) (10,306 ) Balance at end of period $ 28,716 $ 25,971 $ 28,716 $ 25,971 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions | The fair value was estimated using the Monte Carlo simulation model with the following assumptions: For the Six Months Ended June 30, 2019 July 1, 2018 Risk-free interest rate 2.6 % 2.2 % Teradyne volatility-historical 31.9 % 26.8 % NYSE Composite Index volatility-historical 11.9 % 12.4 % Dividend yield 1.0 % 0.8 % |
Fair Value of Stock Options Using Assumptions | The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Six Months Ended June 30, 2019 July 1, 2018 Expected life (years) 5.0 5.0 Risk-free interest rate 2.5 % 2.4 % Volatility-historical 30.1 % 26.4 % Dividend yield 1.0 % 0.8 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Changes in Accumulated Other Comprehensive (Loss) 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 Retirement Plans Prior Service Credit Total (in thousands) Six Months Ended June 30, 2019 Balance at December 31, 2018, net of tax of $0, $(521), $(1,081), respectively $ (12,523 ) $ (1,845 ) $ 1,328 $ (13,040 ) Other comprehensive income before reclassifications, net of tax of $0, $1,256, $0, respectively 983 4,637 — 5,620 Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(26), $(21), respectively — (97 ) (74 ) (171 ) Net current period other comprehensive income (loss), net of tax of $0, $1,230, $(21), respectively 983 4,540 (74 ) 5,449 Balance at June 30, 2019, net of tax of $0, $709, $(1,102), respectively $ (11,540 ) $ 2,695 $ 1,254 $ (7,591 ) Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Marketable Securities Retirement Plans Prior Service Credit Total (in thousands) Six Months Ended July 1, 2018 Balance at December 31, 2017, net of tax of $0, $1,815, $(932), respectively $ 15,919 $ 1,362 $ 1,495 $ 18,776 Other comprehensive income (loss) before reclassifications, net of tax of $0, $(774), $0, respectively (18,781 ) (2,489 ) — (21,270 ) Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $11, $(35), respectively — 1,469 (123 ) 1,346 Net current period other comprehensive income (loss), net of tax of $0, $(733), $(35), respectively (18,781 ) (1,020 ) (123 ) (19,924 ) Reclassification of income tax effects from the Tax Reform Act, net of tax of $0, $(691), $(78), respectively (a) — 691 78 769 Reclassification of unrealized gains on equity securities, net of tax of $0, $(902), $0, respectively (b) — (3,125 ) — (3,125 ) Balance as July 1, 2018, net of tax of $0, $(511), $(1,045), respectively $ (2,862 ) $ (2,092 ) $ 1,450 $ (3,504 ) (a) In the six months ended July 1, 2018, Teradyne early adopted the ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” (b) In the six months ended July 1, 2018, Teradyne adopted the ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” |
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations | Reclassifications out of accumulated other comprehensive income (loss) to the statement of operations for the three and six months ended June 30, 2019 and July 1, 2018 were as follows: Details about Accumulated Other Comprehensive Income Components For the Three Months Ended For the Six Months Ended Affected Line Item in the Statements of Operations June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Available-for-sale Unrealized gains (losses), net of tax of $6, $68, $26, $(11), $ 27 $ 199 $ 97 $ (1,469 ) Interest income Defined benefit pension and postretirement plans: Amortization of prior service benefit, net of tax of $11, $18, 37 61 74 123 (a) Total reclassifications, net of tax of $17, $86, $47, $24, respectively $ 64 $ 260 $ 171 $ (1,346 ) Net income (a) The amortization of prior service benefit is included in the computation of net periodic pension cost and postretirement benefit. See Note R: “Retirement Plans.” |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segments for the six months ended June 30, 2019, were as follows: Industrial Automation System Test Wireless Test Semiconductor Test Total (in thousands) Balance at December 31, 2018 Goodwill $ 363,358 $ 158,699 $ 361,819 $ 260,540 $ 1,144,416 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) 363,358 10,516 7,976 — 381,850 Lemsys acquisition — — — 1,428 1,428 Foreign currency translation adjustment 626 — — 32 658 Balance at June 30, 2019 Goodwill 363,984 158,699 361,819 262,000 1,146,502 Accumulated impairment losses — (148,183 ) (353,843 ) (260,540 ) (762,566 ) $ 363,984 $ 10,516 $ 7,976 $ 1,460 $ 383,936 |
Schedule of Estimated Intangible Assets Amortization Expense | Estimated intangible asset amortization expense for each of the five succeeding fiscal years is as follows: Year Amortization Expense (in thousands) 2019 (remainder) 18,745 2020 25,037 2021 14,778 2022 13,885 2023 13,410 Thereafter 23,639 |
Wireless Test | |
Schedule of Amortizable Intangible Assets | Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet: June 30, 2019 Gross Carrying Amount (1)(2) Accumulated Amortization (2) Foreign Adjustment Net Carrying Amount (in thousands) Developed technology $ 337,198 $ (265,951 ) $ (4,035 ) $ 67,212 Customer relationships 100,313 (87,496 ) (285 ) 12,532 Tradenames and trademarks 64,670 (34,131 ) (789 ) 29,750 Total intangible assets $ 502,181 $ (387,578 ) $ (5,109 ) $ 109,494 December 31, 2018 Gross Carrying Amount Accumulated Amortization Foreign Net Carrying Amount (in thousands) Developed technology $ 336,308 $ (252,080 ) $ (4,079 ) $ 80,149 Customer relationships 97,153 (83,448 ) (340 ) 13,365 Tradenames and trademarks 64,420 (31,653 ) (799 ) 31,968 Non-compete 320 (320 ) — — Backlog 30 (30 ) — — Total intangible assets $ 498,231 $ (367,531 ) $ (5,218 ) $ 125,482 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Computation of Basic and Diluted Net Income (Loss) Per Common Share | The following table sets forth the computation of basic and diluted net income per common share: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands, except per share amounts) Net income for basic and diluted net income per share $ 97,397 $ 101,037 $ 206,535 $ 188,010 Weighted average common shares-basic 171,241 190,730 172,387 192,992 Effect of dilutive potential common shares: Incremental shares from assumed conversion of convertible notes (1) 4,364 2,643 3,275 3,520 Convertible note hedge warrant shares (2) 1,778 — 889 915 Restricted stock units 1,002 1,219 1,012 1,444 Stock options 183 274 202 298 Employee stock purchase plan 22 43 16 28 Dilutive potential common shares 7,349 4,179 5,394 6,205 Weighted average common shares-diluted 178,590 194,909 177,781 199,197 Net income per common share-basic $ 0.57 $ 0.53 $ 1.20 $ 0.97 Net income per common share-diluted $ 0.55 $ 0.52 $ 1.16 $ 0.94 (1) 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 of $ 31.70 (2) Convertible note hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.78, multiplied by 14.5 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Pension Plans | |
Net Periodic Pension and Postretirement Benefit Costs | For the three and six months ended June 30, 2019 and July 1, 2018, Teradyne’s net periodic pension cost was comprised of the following: For the Three Months Ended June 30, 2019 July 1, 2018 United States Foreign United States Foreign (in thousands) Service cost $ 399 $ 192 $ 545 $ 200 Interest cost 1,799 176 2,430 175 Expected return on plan assets (1,510 ) (7 ) (2,550 ) (5 ) Amortization of prior service cost — — 14 — Net actuarial loss (gain) 252 — (189 ) — Settlement loss — — 78 — Total net periodic pension cost $ 940 $ 361 $ 328 $ 370 For the Six Months Ended June 30, 2019 July 1, 2018 United States Foreign United States Foreign (in thousands) Service cost $ 804 $ 381 $ 1,116 $ 426 Interest cost 3,595 349 5,427 372 Expected return on plan assets (3,021 ) (14 ) (5,919 ) (10 ) Amortization of prior service cost — — 29 — Net actuarial loss (gain) 252 — (189 ) — Settlement loss — — 78 — Total net periodic pension cost $ 1,630 $ 716 $ 542 $ 788 |
Postretirement Benefit Plans | |
Net Periodic Pension and Postretirement Benefit Costs | For the three and six months ended June 30, 2019 and July 1, 2018, Teradyne’s net periodic postretirement benefit cost was comprised of the following: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Service cost $ 11 $ 10 $ 20 $ 19 Interest cost 88 48 173 98 Amortization of prior service credit (48 ) (93 ) (95 ) (187 ) Net actuarial loss 196 40 196 40 Special termination benefits — 1,192 — 2,818 Total net periodic postretirement benefit cost $ 247 $ 1,197 $ 294 $ 2,788 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, July 1, June 30, July 1, US statutory federal tax rate 21.0 % 21.0 % 21.0 % 21.0 % Discrete expense related to U.S. transition tax 11.2 % 0.0 % 6.5 % 0.0 % International provisions of the U.S. Tax Cuts and Jobs Act of 2017 0.8 % (1.4 %) 0.8 % (1.4 %) Discrete benefit related to equity compensation (0.5 %) (0.1 %) (2.0 %) (3.5 %) Foreign taxes (4.9 %) (3.4 %) (4.9 %) (3.4 %) Tax credits (2.5 %) (2.1 %) (2.5 %) (2.1 %) Discrete benefit related to release of reserves for uncertain tax positions (0.1 %) 0.0 % (12.9 %) 0.0 % Other, net 0.8 % 1.8 % 2.3 % 2.3 % Effective tax rate 25.8 % 15.8 % 8.3 % 12.9 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information | Segment information for the three and six months ended June 30, 2019 and July 1, 2018 is as follows: Semiconductor Test Industrial Automation System Test Wireless Test Corporate and Other Consolidated (in thousands) Three Months Ended June 30, 2019 Revenues $ 374,898 $ 74,726 $ 73,407 $ 41,236 $ (89 ) $ 564,178 Income (loss) before income taxes (1)(2) 91,355 (3,730 ) 23,535 10,930 9,087 131,177 Total assets (3) 745,073 601,676 123,460 93,232 1,108,073 2,671,514 Three Months Ended July 1, 2018 Revenues $ 360,088 $ 62,057 $ 69,682 $ 35,212 $ (110 ) $ 526,929 Income (loss) before income taxes (1)(2) 91,159 (2,922 ) 20,352 10,308 1,115 120,012 Total assets (3) 765,484 597,293 107,199 77,638 1,384,106 2,931,720 Six Months Ended June 30, 2019 Revenues $ 715,751 $ 140,862 $ 131,627 $ 70,277 $ (240 ) $ 1,058,277 Income (loss) before income taxes (1)(2) 174,404 (9,025 ) 38,875 14,558 6,344 225,156 Total assets (3) 745,073 601,676 123,460 93,232 1,108,073 2,671,514 Six Months Ended July 1, 2018 Revenues $ 733,416 $ 110,891 $ 112,702 $ 57,719 $ (332 ) $ 1,014,396 Income (loss) before income taxes (1)(2) 179,238 (2,138 ) 26,240 10,772 1,719 215,831 Total assets (3) 765,484 597,293 107,199 77,638 1,384,106 2,931,720 (1) Included in Corporate and Other are: contingent consideration adjustments, severance charges, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, acquisition related charges, and pension and postretirement plans actuarial losses. (2) Included in the income (loss) before income taxes for each of the segments are charges and credits related to restructuring and other and inventory charges. (3) Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
Schedule of Segment Reporting Information by Segment Charges | Included in the Semiconductor Test segment are charges in the following line items in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Cost of revenues—inventory charge $ 2,278 $ 1,613 $ 3,452 $ 3,779 Restructuring and other—employee severance 357 2,179 924 5,940 |
Industrial Automation | |
Schedule of Segment Reporting Information by Segment Charges | Included in the Industrial Automation segment are charges in the following line items in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Restructuring and other—acquisition related expenses and compensation $ 434 $ — $ 1,695 $ — Restructuring and other—employee severance 202 218 297 338 — — 416 — |
System Test | |
Schedule of Segment Reporting Information by Segment Charges | Included in the System Test segment are charges in the following line item in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Cost of revenues—inventory charge $ 295 $ 256 $ 763 $ 576 |
Wireless Test | |
Schedule of Segment Reporting Information by Segment Charges | Included in the Wireless Test segment are charges in the following line items in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Cost of revenues—inventory charge $ 829 $ 627 $ 1,168 $ 1,463 |
Corporate and Other [Member] | |
Schedule of Segment Reporting Information by Segment Charges | Included in Corporate and Other are charges and credits in the following line items in the statements of operations: For the Three Months Ended For the Six Months Ended June 30, 2019 July 1, 2018 June 30, 2019 July 1, 2018 (in thousands) Restructuring and other—MiR contingent consideration adjustment $ (11,671 ) $ — $ (8,668 ) $ — Restructuring and other—Universal Robots contingent consideration adjustment — (3,500 ) — (8,468 ) Restructuring and other—acquisition related expenses and compensation — 2,544 — 3,318 |
Acquisitions and Investment I_3
Acquisitions and Investment In Other Company - Additional Information (Detail) - USD ($) | Apr. 25, 2018 | Feb. 26, 2018 | Jan. 30, 2019 | Jul. 01, 2018 | Jul. 01, 2018 | Jun. 30, 2019 | Jun. 03, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||||
Contingent consideration | $ 30,800,000 | |||||||
Goodwill | 383,936,000 | 381,850,000 | ||||||
Estimate of Fair Value Measurement [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | 26,847,000 | $ 70,543,000 | ||||||
Revenues | $ 400,000 | $ 400,000 | ||||||
Real War In [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity Method Investments | $ 15,000,000 | |||||||
Investments, Fair Value Disclosure | 15,000,000 | |||||||
Mobile Industrial Robots (MiR) | ||||||||
Business Acquisition [Line Items] | ||||||||
Total preliminary purchase price | $ 197,778,000 | |||||||
Cash paid to acquire outstanding common and preferred stock | 145,200,000 | |||||||
Contingent consideration | 52,600,000 | |||||||
Arrangement range of outcomes value high | $ 84,100,000 | |||||||
Goodwill, not deductible for tax purposes | 136,000,000 | |||||||
Net income | 101,780,000 | 186,787,000 | ||||||
Goodwill | $ 135,976,000 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 2 months 12 days | |||||||
Mobile Industrial Robots (MiR) | Acquisition Related Costs | ||||||||
Business Acquisition [Line Items] | ||||||||
Net income | $ 2,300,000 | $ 2,900,000 | ||||||
Energid Technologies Corporation | ||||||||
Business Acquisition [Line Items] | ||||||||
Total preliminary purchase price | $ 27,600,000 | |||||||
Goodwill | 14,400,000 | |||||||
Acquired value of intangible assets | $ 12,300,000 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 8 months 12 days | |||||||
Net tangible assets | $ 1,000,000 | |||||||
Lemsys [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total preliminary purchase price | $ 1,400,000 | |||||||
Total preliminary purchase price | 9,100,000 | |||||||
Acquired value of intangible assets | $ 4,600,000 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 2 months 12 days | |||||||
Net tangible assets | $ 3,100,000 |
Final Allocation of Purchase Pr
Final Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Apr. 25, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 383,936 | $ 381,850 | |
Mobile Industrial Robots (MiR) | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 135,976 | ||
Intangible assets | 80,670 | ||
Current assets | 6,039 | ||
Non-current assets | 1,336 | ||
Accounts payable and current liabilities | (7,336) | ||
Long-term deferred tax liabilities | (18,007) | ||
Other long-term liabilities | (900) | ||
Total purchase price | $ 197,778 |
Components of Intangible Assets
Components of Intangible Assets and Their Estimated Useful Lives at Acquisition Date (Detail) - Mobile Industrial Robots (MiR) $ in Thousands | Apr. 25, 2018USD ($) |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 80,670 |
Total intangible assets, estimated useful life, years | 7 years 2 months 12 days |
Developed technology | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 58,900 |
Total intangible assets, estimated useful life, years | 7 years |
Trademarks and tradenames | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 13,240 |
Total intangible assets, estimated useful life, years | 11 years |
Customer Relationships | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 8,500 |
Total intangible assets, estimated useful life, years | 2 years 6 months |
Customer backlog | |
Business Acquisition [Line Items] | |
Total intangible assets, fair value | $ 30 |
Total intangible assets, estimated useful life, years | 2 months 12 days |
Pro Forma Results Under Acquisi
Pro Forma Results Under Acquisition (Detail) - Mobile Industrial Robots (MiR) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jul. 01, 2018 | Jul. 01, 2018 | |
Business Acquisition [Line Items] | ||
Revenue | $ 528,238 | $ 1,021,194 |
Net income | $ 101,780 | $ 186,787 |
Net income per common share, basic | $ 0.53 | $ 0.97 |
Net income per common share, diluted | $ 0.52 | $ 0.94 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Revenue recognized in accordance with ASC 606 | $ 564,178 | $ 526,929 | $ 1,058,277 | $ 1,014,396 |
Revenue on leases | 1,700 | 3,600 | 3,400 | 7,900 |
Deferred Revenue And Customer Advances | 13,300 | 24,700 | 33,400 | 46,500 |
Trade Accounts Receivable | $ 82,100 | $ 8,900 | $ 82,100 | 8,900 |
Short-term Contract with Customer [Member] | ||||
Revenue, Remaining Performance Obligation, Percentage | 72.00% | 72.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 12 months | |||
Long-term Contract with Customer [Member] | ||||
Revenue, Remaining Performance Obligation, Percentage | 22.00% | 22.00% | ||
Long-term Contract with Customer [Member] | Maximum [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 3 years | |||
Long-term Contract with Customer [Member] | Minimum [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction Period | 1 year | |||
Accounting Standards Update 2014-09 [Member] | ||||
Revenue recognized in accordance with ASC 606 | $ 562,500 | $ 1,054,900 | $ 1,006,500 |
Disaggregated Revenue by Primar
Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing of Revenue Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 564,178 | $ 526,929 | $ 1,058,277 | $ 1,014,396 |
Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 374,898 | 360,088 | 715,751 | 733,416 |
System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 73,407 | 69,682 | 131,627 | 112,702 |
Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 74,726 | 62,057 | 140,862 | 110,891 |
Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 41,236 | 35,212 | 70,277 | 57,719 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | (89) | (110) | (240) | (332) |
Americas | Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 62,636 | 53,486 | 119,067 | 98,480 |
Americas | Point in Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 5,250 | 4,716 | 7,340 | 9,695 |
Americas | Point in Time | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | (89) | (110) | (240) | (332) |
Americas | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 18,259 | 17,125 | 34,997 | 33,785 |
Americas | Over Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 676 | 122 | 827 | 233 |
Europe, Middle East and Africa | Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 47,226 | 45,012 | 93,994 | 86,423 |
Europe, Middle East and Africa | Point in Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 620 | 26 | 1,356 | 1,066 |
Europe, Middle East and Africa | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8,540 | 8,978 | 16,873 | 16,925 |
Europe, Middle East and Africa | Over Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 48 | 257 | 93 | 484 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,658 | 3,625 | 3,399 | 7,894 |
Asia Pacific | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 34 | 325 | 65 | 513 |
Asia Pacific | Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 381,056 | 356,803 | 697,413 | 688,600 |
Asia Pacific | Point in Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 33,366 | 27,663 | 57,995 | 41,329 |
Asia Pacific | Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 44,803 | 41,900 | 92,534 | 82,289 |
Asia Pacific | Over Time | Wireless Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,242 | 2,103 | 2,601 | 4,399 |
SOC | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 316,613 | 293,532 | 609,486 | 594,299 |
SOC | Americas | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 7,426 | 12,111 | 15,403 | 21,711 |
SOC | Americas | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8,175 | 8,934 | 16,365 | 17,517 |
SOC | Europe, Middle East and Africa | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 9,819 | 10,227 | 20,851 | 22,352 |
SOC | Europe, Middle East and Africa | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 5,212 | 5,689 | 10,493 | 10,888 |
SOC | Asia Pacific | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,530 | 3,268 | 3,197 | 7,115 |
SOC | Asia Pacific | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 247,885 | 218,352 | 467,698 | 446,543 |
SOC | Asia Pacific | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 36,566 | 34,951 | 75,479 | 68,173 |
Memory | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 58,285 | 66,556 | 106,265 | 139,117 |
Memory | Americas | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 8,059 | 2,827 | 16,110 | 5,691 |
Memory | Americas | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 724 | 710 | 1,436 | 1,406 |
Memory | Europe, Middle East and Africa | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,016 | 847 | 2,168 | 986 |
Memory | Europe, Middle East and Africa | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 284 | 254 | 563 | 523 |
Memory | Asia Pacific | Point in Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 43,909 | 59,633 | 79,415 | 125,904 |
Memory | Asia Pacific | Over Time | Semiconductor Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,293 | 2,285 | 6,573 | 4,607 |
Defense/Aerospace | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 25,283 | 23,122 | 48,050 | 43,264 |
Defense/Aerospace | Americas | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 17,225 | 15,256 | 32,007 | 26,853 |
Defense/Aerospace | Americas | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 6,850 | 6,237 | 13,300 | 12,425 |
Defense/Aerospace | Europe, Middle East and Africa | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 211 | 447 | 250 | 1,943 |
Defense/Aerospace | Europe, Middle East and Africa | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 505 | 539 | 974 | 1,090 |
Defense/Aerospace | Asia Pacific | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 163 | 385 | 426 | 487 |
Defense/Aerospace | Asia Pacific | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 329 | 258 | 1,093 | 466 |
Storage Test | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 33,685 | 33,257 | 53,938 | 45,191 |
Storage Test | Americas | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 3,703 | 5 | 5,295 | 284 |
Storage Test | Asia Pacific | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 27,672 | 31,824 | 44,279 | 41,946 |
Storage Test | Asia Pacific | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,310 | 1,428 | 4,364 | 2,961 |
Production Board Test | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 14,439 | 13,303 | 29,639 | 24,247 |
Production Board Test | Americas | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,341 | 1,429 | 4,595 | 3,189 |
Production Board Test | Americas | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 792 | 795 | 1,521 | 1,552 |
Production Board Test | Europe, Middle East and Africa | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,974 | 4,849 | 8,038 | 8,886 |
Production Board Test | Europe, Middle East and Africa | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,615 | 1,713 | 3,169 | 3,272 |
Production Board Test | Asia Pacific | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 94 | 32 | 137 | 266 |
Production Board Test | Asia Pacific | Point in Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 6,848 | 3,741 | 10,483 | 5,603 |
Production Board Test | Asia Pacific | Over Time | System Test | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 775 | 744 | 1,696 | 1,479 |
Universal Robots (UR) | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 62,948 | 57,548 | 121,249 | 106,382 |
Universal Robots (UR) | Americas | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 16,938 | 16,053 | 32,235 | 30,190 |
Universal Robots (UR) | Americas | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 255 | 327 | 501 | 652 |
Universal Robots (UR) | Europe, Middle East and Africa | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 26,545 | 26,616 | 52,448 | 49,190 |
Universal Robots (UR) | Europe, Middle East and Africa | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 399 | 526 | 815 | 668 |
Universal Robots (UR) | Asia Pacific | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 18,532 | 13,895 | 32,709 | 25,478 |
Universal Robots (UR) | Asia Pacific | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 279 | 131 | 507 | 204 |
Mobile Industrial Robots (MiR) | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10,505 | 4,509 | 19,613 | 4,509 |
Mobile Industrial Robots (MiR) | Americas | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,783 | 1,199 | 6,322 | 1,199 |
Mobile Industrial Robots (MiR) | Europe, Middle East and Africa | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 5,041 | 2,000 | 8,883 | 2,000 |
Mobile Industrial Robots (MiR) | Asia Pacific | Point in Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,681 | $ 1,310 | 4,408 | $ 1,310 |
Energid Technologies Corporation | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 1,273 | 2,034 | ||
Energid Technologies Corporation | Americas | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 787 | 1,047 | ||
Energid Technologies Corporation | Europe, Middle East and Africa | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 477 | 766 | ||
Energid Technologies Corporation | Asia Pacific | Over Time | Industrial Automation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 9 | $ 221 |
Composition of Inventories, Net
Composition of Inventories, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Raw material | $ 96,824 | $ 89,365 |
Work-in-process | 31,676 | 31,014 |
Finished goods | 35,961 | 33,162 |
Inventories, net | $ 164,461 | $ 153,541 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Inventory reserves | $ 102.6 | $ 100.8 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | Dec. 31, 2018 | |
Financial Instruments and Fair Value [Line Items] | |||||
Available-for-sale securities, realized gain | $ 100,000 | $ 100,000 | $ 200,000 | $ 400,000 | |
Available-for-sale securities, realized loss | 100,000 | 1,500,000 | |||
Available-for-sale marketable securities, Fair Market Value of Investments in debt securities with Unrealized Losses | 38,277,000 | 38,277,000 | $ 191,978,000 | ||
Fair market value of investments with unrealized losses greater than one year | 22,700,000 | 22,700,000 | 28,500,000 | ||
Aggregate loss of investments with unrealized losses greater than one year | 400,000 | 400,000 | 1,600,000 | ||
Fair market value of investments with unrealized losses less than one year | 15,600,000 | 15,600,000 | 163,500,000 | ||
Aggregate loss of investments with unrealized losses less than one year | 100,000 | 100,000 | 1,400,000 | ||
Unrealized Gain (loss) on contracts | 1,300,000 | 1,900,000 | 1,900,000 | 2,500,000 | |
Equity securities unrealized gain loss | 900,000 | $ 400,000 | 3,700,000 | $ 400,000 | |
Debt Mutual Funds | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Available for sale securities with out contractual maturity date | 3,300,000 | 3,300,000 | |||
Mobile Industrial Robots (MiR) | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Maximum amount of contingent consideration paid for acquisition | $ 84,100,000 | 84,100,000 | |||
Foreign Exchange Contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Unrealized Gain (loss) on contracts | $ 143,300,000 | $ 163,100,000 |
Schedule of Fair Value of Finan
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | ||
Available for sale securities | 472,911 | $ 256,636 |
Available for sale equity securities | ||
Total | ||
Contingent consideration | 30,800 | |
U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 190,322 | 109,721 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 154,910 | 86,117 |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 94,431 | 40,020 |
Certificates of Deposit and Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 19,723 | 7,604 |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 9,838 | 9,611 |
Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 3,299 | 3,187 |
Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 388 | 376 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 994,335 | 1,204,579 |
Derivative assets | 34 | 79 |
Total | 994,369 | 1,204,658 |
Contingent consideration | 26,847 | 70,543 |
Derivative liabilities | 324 | 514 |
Total | 27,171 | 71,057 |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 235,370 | 312,512 |
Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 259,737 | 614,240 |
Fair Value, Measurements, Recurring | U.S. Treasury Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 190,322 | 109,721 |
Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 154,910 | 86,117 |
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 94,431 | 40,020 |
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 | 19,723 | 7,604 |
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 9,838 | 9,611 |
Fair Value, Measurements, Recurring | Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 3,299 | 3,187 |
Fair Value, Measurements, Recurring | Non-U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 388 | 376 |
Fair Value, Measurements, Recurring | Equity Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | 26,317 | 21,191 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 488,136 | 590,415 |
Total | 488,136 | 590,415 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 235,370 | 312,512 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 223,150 | 253,525 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Debt Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 3,299 | 3,187 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Fair Value, Measurements, Recurring | Equity Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale equity securities | 26,317 | 21,191 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 506,199 | 614,164 |
Derivative assets | 34 | 79 |
Total | 506,233 | 614,243 |
Derivative liabilities | 324 | 514 |
Total | 324 | 514 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 36,587 | 360,715 |
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 | 190,322 | 109,721 |
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 | 154,910 | 86,117 |
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 | 94,431 | 40,020 |
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 | 19,723 | 7,604 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 9,838 | 9,611 |
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 | 388 | 376 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Contingent consideration | 26,847 | 70,543 |
Total | $ 26,847 | $ 70,543 |
Schedule of Reported Financial
Schedule of Reported Financial Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | $ 994,369 | $ 1,204,658 |
Liabilities | 27,171 | 71,057 |
Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 324 | 514 |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 495,107 | 926,752 |
Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 400,227 | 190,096 |
Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 99,001 | 87,731 |
Prepayments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 34 | 79 |
Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 11,753 | 34,865 |
Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 15,094 | 35,678 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 488,136 | 590,415 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 458,520 | 566,037 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) | Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 29,616 | 24,378 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 506,233 | 614,243 |
Liabilities | 324 | 514 |
Significant Other Observable Inputs (Level 2) | Other Current Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 324 | 514 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 36,587 | 360,715 |
Significant Other Observable Inputs (Level 2) | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 400,227 | 190,096 |
Significant Other Observable Inputs (Level 2) | Long-term marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 69,385 | 63,353 |
Significant Other Observable Inputs (Level 2) | Prepayments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets | 34 | 79 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 26,847 | 70,543 |
Significant Unobservable Inputs (Level 3) | Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | 11,753 | 34,865 |
Significant Unobservable Inputs (Level 3) | Long Term Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities | $ 15,094 | $ 35,678 |
Schedule of Changes in Fair Val
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Balance at beginning of period | $ 38,313 | $ 15,581 | $ 70,543 | $ 45,102 | |
Acquisition of MiR | [1] | (11,672) | (3,500) | (8,701) | (8,468) |
Foreign currency impact | 206 | (2,566) | (405) | (2,566) | |
Payments | [2] | (34,590) | (24,553) | ||
Fair value adjustment | [1] | 51,399 | 51,399 | ||
Balance at end of period | $ 26,847 | $ 60,914 | $ 26,847 | $ 60,914 | |
[1] | In the three and six months ended June 30, 2019, the fair value of contingent consideration for the earn-out in connection with the acquisition of MiR was decreased by $11.7 million and $8.7 million, respectively, primarily due to a decrease in the forecasted revenue. In the three and six months ended July 1, 2018, the fair value of contingent consideration for the earn-out in connection with the acquisition of Universal Robots A/S (“Universal Robots”) was decreased by $3.5 million and $8.5 million, respectively, primarily due to a decrease in forecasted revenue. | ||||
[2] | In the six months ended June 30, 2019, Teradyne paid $30.8 million and $3.8 million of contingent consideration for the earn-outs in connection with the acquisition of MiR and Universal Robots, respectively. In the six months ended July 1, 2018, Teradyne paid $24.6 million of contingent consideration for the earn-out in connection with the acquisition of Universal Robots. |
Schedule of Changes in Fair V_2
Schedule of Changes in Fair Value of Level 3 Contingent Consideration (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Payments of contingent consideration | $ 27,615 | $ 13,571 | ||
Increase (decrease) in contingent consideration | $ 11,700 | $ 3,500 | (8,701) | $ (8,468) |
Universal Robots (UR) | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Payments of contingent consideration | 3,500 | 8,500 | ||
Increase (decrease) in contingent consideration | $ 24,600 | |||
Universal Robots (UR) | Payment One [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Payments of contingent consideration | 11,700 | |||
Universal Robots (UR) | Payment Two [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Payments of contingent consideration | 8,700 | |||
MiR | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Increase (decrease) in contingent consideration | $ 30,800 | 3,800 | ||
MiR | Payment One [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Payments of contingent consideration | 11,700 | |||
MiR | Payment Two [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Payments of contingent consideration | $ 8,700 |
Quantitative Information Associ
Quantitative Information Associated With Fair Value Measurement of Level 3 Financial Instrument (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Apr. 25, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration | $ 30,800 | ||
Mobile Industrial Robots (MiR) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration | $ 52,600 | ||
Monte Carlo Simulation | Revenue for the period July 1, 2015-December 31, 2018 | Mobile Industrial Robots (MiR) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Target achievement, volatility | 19.00% | ||
Discount rate | 0.20% | ||
Monte Carlo Simulation | Revenue for the period July 1, 2015-December 31, 2018 | Significant Unobservable Inputs (Level 3) | Mobile Industrial Robots (MiR) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration | $ 26,847 |
Schedule of Carrying Amounts an
Schedule of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | |||
Marketable securities | 472,911 | $ 256,636 | |
Contingent consideration | 30,800 | ||
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | 495,107 | 926,752 | |
Marketable securities | 499,228 | 277,827 | |
Derivative assets | 34 | 79 | |
Contingent consideration | 26,847 | 70,543 | |
Derivative liabilities | 324 | 514 | |
Convertible debt | [1] | 387,243 | 379,981 |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Cash and cash equivalents | 495,107 | 926,752 | |
Marketable securities | 499,228 | 277,827 | |
Derivative assets | 34 | 79 | |
Contingent consideration | 26,847 | 70,543 | |
Derivative liabilities | 324 | 514 | |
Convertible debt | [1] | $ 747,213 | $ 547,113 |
[1] | The carrying value represents the bifurcated debt component only, while the fair value is based on quoted market prices for the convertible note, which includes the equity conversion features. |
Schedule of Available for Sale
Schedule of Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 469,504 | $ 259,011 |
Available-for-sale marketable securities, Unrealized Gain | 3,845 | 592 |
Available-for-sale marketable securities, Unrealized (Loss) | (438) | (2,967) |
Available-for-sale marketable securities, Fair Market Value | 472,911 | 256,636 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 38,277 | 191,978 |
U.S. Treasury Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 189,927 | 110,969 |
Available-for-sale marketable securities, Unrealized Gain | 668 | 112 |
Available-for-sale marketable securities, Unrealized (Loss) | (273) | (1,360) |
Available-for-sale marketable securities, Fair Market Value | 190,322 | 109,721 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 18,195 | 75,040 |
Commercial Paper | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 154,903 | 86,130 |
Available-for-sale marketable securities, Unrealized Gain | 9 | 13 |
Available-for-sale marketable securities, Unrealized (Loss) | (2) | (26) |
Available-for-sale marketable securities, Fair Market Value | 154,910 | 86,117 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 10,322 | 85,094 |
Corporate Debt Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 91,553 | 41,133 |
Available-for-sale marketable securities, Unrealized Gain | 3,035 | 432 |
Available-for-sale marketable securities, Unrealized (Loss) | (157) | (1,545) |
Available-for-sale marketable securities, Fair Market Value | 94,431 | 40,020 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 4,581 | 24,767 |
Certificates of Deposit and Time Deposits | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 19,717 | 7,604 |
Available-for-sale marketable securities, Unrealized Gain | 6 | |
Available-for-sale marketable securities, Fair Market Value | 19,723 | 7,604 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 2,232 | |
U.S. Government Agency Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 9,829 | 9,646 |
Available-for-sale marketable securities, Unrealized Gain | 15 | 1 |
Available-for-sale marketable securities, Unrealized (Loss) | (6) | (36) |
Available-for-sale marketable securities, Fair Market Value | 9,838 | 9,611 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 2,947 | 7,077 |
Debt Mutual Funds | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 3,187 | 3,153 |
Available-for-sale marketable securities, Unrealized Gain | 112 | 34 |
Available-for-sale marketable securities, Fair Market Value | 3,299 | 3,187 |
Non-U.S. Government Securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 388 | 376 |
Available-for-sale marketable securities, Fair Market Value | $ 388 | $ 376 |
Schedule of Reported Available
Schedule of Reported Available for Sale Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | $ 469,504 | $ 259,011 |
Available-for-sale marketable securities, Unrealized Gain | 3,845 | 592 |
Available-for-sale marketable securities, Unrealized (Loss) | (438) | (2,967) |
Available-for-sale marketable securities, Fair Market Value | 472,911 | 256,636 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 38,277 | 191,978 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 399,852 | 190,100 |
Available-for-sale marketable securities, Unrealized Gain | 391 | 88 |
Available-for-sale marketable securities, Unrealized (Loss) | (16) | (92) |
Available-for-sale marketable securities, Fair Market Value | 400,227 | 190,096 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | 21,708 | 140,262 |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale marketable securities, Cost | 69,652 | 68,911 |
Available-for-sale marketable securities, Unrealized Gain | 3,454 | 504 |
Available-for-sale marketable securities, Unrealized (Loss) | (422) | (2,875) |
Available-for-sale marketable securities, Fair Market Value | 72,684 | 66,540 |
Available-for-sale marketable securities, Fair Market Value of Investments with Unrealized Losses | $ 16,569 | $ 51,716 |
Contractual Maturities of Inves
Contractual Maturities of Investments in Debt Securities Held (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Schedule of Available-for-sale Securities | |
Due within one year, cost | $ 399,852 |
Due after 1 year through 5 years, cost | 12,304 |
Due after 5 years through 10 years, cost | 14,101 |
Due after 10 years, cost | 40,060 |
Total, cost | 466,317 |
Due within one year, fair market value | 400,227 |
Due after 1 year through 5 years, fair market value | 12,411 |
Due after 5 years through 10 years, fair market value | 14,156 |
Due after 10 years, fair maket value | 42,818 |
Total, fair market value | $ 469,612 |
Schedule of Derivative Instrume
Schedule of Derivative Instruments in Statement of Financial Position at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets (liabilities), net | $ (290) | $ (435) |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Prepayments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 34 | 79 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (324) | $ (514) |
Schedule of Effect of Derivativ
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Other (income) expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Losses (Gains) on derivatives recognized in statements of operations | $ 239 | $ 1,826 | $ 4,173 | $ 3,401 |
Schedule of Effect of Derivat_2
Schedule of Effect of Derivative Instruments in Statement of Operations Recognized (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on foreign currency transactions | $ 1.3 | $ 1.9 | $ 1.9 | $ 2.5 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Feb. 28, 2016 | |
Total lease expense | $ 8,900 | $ 17,100 | ||
Variable lease costs | 2,600 | 5,000 | ||
Operating Lease, Right-of-Use Asset | 56,315 | 56,315 | $ 50,100 | $ 50,100 |
Operating Lease, Liability | $ 64,501 | $ 64,501 | $ 54,300 | $ 54,300 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 8 months 12 days | 4 years 8 months 12 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.20% | 5.20% | ||
Short-term Lease, Cost | $ 800 | $ 1,500 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows | $ 4,993 | $ 10,052 |
Right-of-use assets obtained in exchange for new lease obligations | $ 9,675 | $ 15,412 |
Schedule of Operating Lease, Ma
Schedule of Operating Lease, Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Feb. 28, 2016 |
2019 | $ 10,725 | ||
2020 | 19,177 | ||
2021 | 16,510 | ||
2022 | 12,226 | ||
2023 | 5,849 | ||
Thereafter | 12,583 | ||
Total lease payments | 77,070 | ||
Less imputed interest | (12,569) | ||
Total lease liabilities | 64,501 | $ 54,300 | $ 54,300 |
2019 | 19,570 | ||
2020 | 18,293 | ||
2021 | 13,578 | ||
2022 | 9,693 | ||
2023 | 5,449 | ||
Thereafter | 9,472 | ||
Total lease payments | $ 76,055 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands, shares in Millions | Dec. 12, 2016USD ($)Customershares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Jul. 01, 2018USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2016USD ($)$ / shares | Apr. 27, 2015USD ($) |
Debt Instrument | |||||||
Repurchase of common stock | $ 247,222 | $ 360,795 | |||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | |||||||
Debt Instrument | |||||||
Aggregate principal amount | $ 460,000 | $ 460,000 | $ 460,000 | $ 460,000 | |||
Debt instrument, interest rate, stated percentage | 1.25% | ||||||
Debt instrument, net proceeds after issuance costs | $ 450,800 | ||||||
Payment for net cost of convertible note hedges net of warrant proceeds | 33,000 | ||||||
Repurchase of common stock | $ 50,100 | ||||||
Repurchase of stock, shares | shares | 2 | ||||||
Senior notes maturity date | Dec. 15, 2023 | ||||||
Debt instrument, frequency of periodic payment | payable semiannually in arrears on June 15 and December 15 of each year | ||||||
Debt instrument, date of first required payment | Jun. 15, 2017 | ||||||
Debt instrument, conversion option expiration date | Sep. 15, 2023 | ||||||
Debt instrument conversion price | $ / shares | $ 31.70 | $ 31.70 | $ 31.70 | ||||
Shares that would be issued upon conversion | shares | 14.5 | ||||||
Strike price per share of warrant | $ / shares | $ 39.78 | ||||||
Debt instrument, convertible, carrying amount of equity component | $ 100,800 | $ 100,800 | |||||
Financing cost | 4,800 | $ 4,800 | $ 7,200 | ||||
Debt issuance costs, amortization period | 7 years | ||||||
Unamortized discount | $ 72,800 | $ 72,800 | |||||
Debt Instrument, convertible, remaining discount amortization period | 4 years 6 months | ||||||
Value of notes converted | $ 695,200 | ||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Conversion option one | |||||||
Debt Instrument | |||||||
Trading days measurement period | Customer | 20 | ||||||
Consecutive trading days measurement period | Customer | 30 | ||||||
Percentage of conversion price | 130.00% | ||||||
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | Conversion option two | |||||||
Debt Instrument | |||||||
Trading days measurement period | Customer | 5 | ||||||
Consecutive trading days measurement period | Customer | 5 | ||||||
Percentage of closing sale price of common stock and conversion rate product | 98.00% | ||||||
Revolving Credit Facility | Maximum | |||||||
Debt Instrument | |||||||
Credit facility, borrowing capacity | $ 350,000 |
Components of Convertible Senio
Components of Convertible Senior Notes (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 12, 2016 |
Debt Instrument | |||
Net carrying amount of convertible debt | $ 387,243 | $ 379,981 | |
1.25% Convertible Senior Unsecured Notes Due December 15, 2023 | |||
Debt Instrument | |||
Debt principal | 460,000 | 460,000 | $ 460,000 |
Unamortized discount | 72,757 | 80,019 | |
Net carrying amount of convertible debt | $ 387,243 | $ 379,981 |
Interest Expense on Convertible
Interest Expense on Convertible Senior Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Debt Instrument | ||||
Contractual interest expense on the coupon | $ 1,438 | $ 1,438 | $ 2,875 | $ 2,875 |
Amortization of the discount component and debt issue fees recognized as interest expense | 3,653 | 3,477 | 7,262 | 6,911 |
Total interest expense on the convertible debt | $ 5,091 | $ 4,915 | $ 10,137 | $ 9,786 |
Schedule of Prepayments and Oth
Schedule of Prepayments and Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Prepaid And Other Current Assets [Line Items] | ||
Contract manufacturer and supplier prepayments | $ 139,232 | $ 131,642 |
Prepaid taxes | 10,810 | 9,646 |
Prepaid maintenance and other services | 9,935 | 8,487 |
Other prepayments | 16,086 | 12,744 |
Total prepayments | $ 176,063 | $ 162,519 |
Deferred Revenue and Customer_3
Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jul. 01, 2018 | Apr. 01, 2018 | Jan. 01, 2018 |
Deferred Revenue Arrangement | ||||||
Maintenance and training | $ 60,331 | $ 58,362 | ||||
Extended warranty | 28,716 | $ 27,242 | 27,422 | $ 25,971 | $ 24,590 | $ 24,438 |
Customer advances, undelivered performance obligations and other | 38,155 | 24,677 | ||||
Total deferred revenue and customer advances | $ 127,202 | $ 110,461 |
Warranty Accrual Included in Ot
Warranty Accrual Included in Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Product Warranty Liability [Line Items] | ||||
Balance at beginning of period | $ 7,752 | $ 7,548 | $ 7,909 | $ 8,200 |
Acquisition | 41 | 14 | 41 | |
Accruals for warranties issued during the period | 2,295 | 3,348 | 5,360 | 6,411 |
Accruals related to pre-existing warranties | 694 | (34) | 2,024 | (173) |
Settlements made during the period | (2,608) | (3,767) | (7,174) | (7,343) |
Balance at end of period | $ 8,133 | $ 7,136 | $ 8,133 | $ 7,136 |
Extended Product Warranty of Sh
Extended Product Warranty of Short and Long-Term Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Product Warranty Liability [Line Items] | ||||
Balance at beginning of period | $ 27,242 | $ 24,590 | $ 27,422 | $ 24,438 |
Deferral of new extended warranty revenue | 5,476 | 6,701 | 11,296 | 11,839 |
Recognition of extended warranty deferred revenue | (4,002) | (5,320) | (10,002) | (10,306) |
Balance at end of period | $ 28,716 | $ 25,971 | $ 28,716 | $ 25,971 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares shares in Millions | 1 Months Ended | 6 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Estimated annual dividend amount per share | $ 0.36 | $ 0.36 | |||
Stock price | $ 37.95 | $ 47.70 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Period of stock granted to employees and executive officers vest in equal annual installments | 4 years | ||||
Percentage of common stock price paid | 100.00% | ||||
Stock options term | 7 years | ||||
Restricted Stock Units | Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Period of stock granted to employees and executive officers vest in equal annual installments | 4 years | ||||
Restricted Stock Units | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Period of stock granted to employees and executive officers vest in equal annual installments | 1 year | ||||
Percentage of awards vesting on the first anniversary of grant date | 100.00% | ||||
TSR Performance-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total shareholder return performance measurement period | 3 years | ||||
Minimum age of retirement to be eligible for PRSUs | 60 years | ||||
Minimum years of service for retirement to be eligible for PRSUs | 10 years | ||||
Restricted stock unit awards granted | 0.1 | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 51.51 | $ 54.85 | |||
Stock price | $ 37.95 | $ 47.70 | |||
TSR Performance-Based Restricted Stock Units | Measurement Input, Expected Dividend Payment [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Estimated annual dividend amount per share | $ 0.36 | $ 0.36 | |||
TSR Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Percentage of vesting of target shares upon performance achieved | 200.00% | ||||
TSR Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Percentage of vesting of target shares upon performance achieved | 0.00% | ||||
PBIT Performance-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total shareholder return performance measurement period | 3 years | ||||
Restricted stock unit awards granted | 0.1 | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 36.88 | $ 46.62 | |||
PBIT Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Percentage of vesting of target shares upon performance achieved | 200.00% | ||||
PBIT Performance-Based Restricted Stock Units | Share-based Compensation Award, Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Percentage of vesting of target shares upon performance achieved | 0.00% | ||||
Service-Based Restricted Stock Units | Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Restricted stock unit awards granted | 0.7 | 0.6 | |||
Weighted average grant date fair value of restricted stock units granted | $ 36.10 | ||||
Weighted average grant date fair value of restricted stock units granted | $ 46.38 | ||||
Service-Based Restricted Stock Units | Executive Officer | |||||
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 | $ 12.17 | ||||
Service-Based Restricted Stock Units | Non Employee Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Restricted stock unit awards granted | 0.1 | 0.1 | |||
Weighted average grant date fair value of restricted stock units granted | $ 48.03 | $ 35.81 | |||
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 | $ 10.61 | ||||
Number options granted during the period | 0.1 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value of TSR Performance-Based Restricted Stock Unit Awards Assumptions (Detail) - TSR Performance-Based Restricted Stock Units | 6 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Risk-free interest rate | 2.60% | 2.20% |
Expected historical volatility | 31.90% | 26.80% |
Dividend yield | 1.00% | 0.80% |
New York Stock Exchange Composite Index | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected historical volatility | 11.90% | 12.40% |
Schedule of Estimated Fair Va_2
Schedule of Estimated Fair Value of Stock Options Grant Using Black Scholes Option Pricing Model (Detail) - Stock Options | 6 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Expected life (years) | 5 years | 5 years |
Risk-free interest rate | 2.50% | 2.40% |
Volatility-historical | 30.10% | 26.40% |
Dividend yield | 1.00% | 0.80% |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | $ 1,470,228 | $ 1,904,983 | $ 1,522,354 | $ 1,953,646 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | |||||
Other comprehensive income (loss) | 8,115 | (29,385) | 5,449 | (19,924) | |
Less: reclassification adjustment for (gains) losses included in net income, net of tax | (27) | (199) | (97) | 1,469 | |
Balance | 1,479,412 | 1,739,940 | 1,479,412 | 1,739,940 | |
ASU 2016-01 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Less: reclassification adjustment for (gains) losses included in net income, net of tax | [1] | (3,125) | |||
Foreign Currency Translation Reclassification Adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (12,523) | 15,919 | |||
Other comprehensive income (loss) before reclassifications, net of tax | 983 | (18,781) | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | |||||
Other comprehensive income (loss) | 983 | (18,781) | |||
Balance | (11,540) | (2,862) | (11,540) | (2,862) | |
Unrealized Gains (Losses) on Marketable Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (1,845) | 1,362 | |||
Other comprehensive income (loss) before reclassifications, net of tax | 4,637 | (2,489) | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (97) | 1,469 | |||
Other comprehensive income (loss) | 4,540 | (1,020) | |||
Reclassification of tax effects resulting from the Tax Reform Act, net of tax | [2] | 691 | |||
Less: reclassification adjustment for (gains) losses included in net income, net of tax | [1] | (3,125) | |||
Balance | 2,695 | (2,092) | 2,695 | (2,092) | |
Amortization of Prior Service Credit | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | 1,328 | 1,495 | |||
Other comprehensive income (loss) before reclassifications, net of tax | |||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (37) | (61) | (74) | (123) | |
Other comprehensive income (loss) | (74) | (123) | |||
Reclassification of tax effects resulting from the Tax Reform Act, net of tax | [2] | 78 | |||
Balance | 1,254 | 1,450 | 1,254 | 1,450 | |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance | (15,706) | 25,881 | (13,040) | 18,776 | |
Other comprehensive income (loss) before reclassifications, net of tax | 5,620 | (21,270) | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (64) | (260) | (171) | (769) | |
Other comprehensive income (loss) | 8,115 | (29,385) | 5,449 | (19,924) | |
Reclassification of tax effects resulting from the Tax Reform Act, net of tax | [2] | 769 | |||
Less: reclassification adjustment for (gains) losses included in net income, net of tax | 27 | 199 | 97 | (1,469) | |
Balance | $ (7,591) | $ (3,504) | $ (7,591) | $ (3,504) | |
[1] | In the six months ended July 1, 2018, Teradyne adopted the ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” | ||||
[2] | In the six months ended July 1, 2018, Teradyne early adopted the ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” As a result, the stranded tax effects resulting from the Tax Reform Act enacted in December 2017 were reclassified from accumulated other comprehensive income to retained earnings. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ (17) | $ (86) | $ (47) | $ (24) | ||
Reclassification of unrealized gains on equity securities, net of tax | (6) | (68) | (26) | 11 | ||
Foreign currency translation adjustments, tax | 0 | 0 | 0 | 0 | $ 0 | $ 0 |
Unrealized (losses) gains on marketable securities, tax | 709 | (511) | 709 | (511) | (521) | 1,815 |
Retirement plans prior service benefit, tax | (1,102) | (1,045) | (1,102) | (1,045) | $ (1,081) | $ (932) |
Foreign Currency Translation Reclassification Adjustments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | 0 | 0 | ||||
Other comprehensive income (loss), tax | 0 | 0 | ||||
Reclassification of income tax effects from the Tax Reform Act, net of tax | 0 | |||||
Unrealized (Losses) Gains on Marketable Securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, tax | 1,256 | (774) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | (6) | (68) | 26 | 11 | ||
Other comprehensive income (loss), tax | 1,230 | (733) | ||||
Reclassification of income tax effects from the Tax Reform Act, net of tax | (691) | |||||
Reclassification of unrealized gains on equity securities, net of tax | (902) | |||||
Amortization of Prior Service Credit | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss), tax | $ (11) | $ (18) | (21) | (35) | ||
Other comprehensive income (loss), tax | $ (21) | (35) | ||||
Reclassification of income tax effects from the Tax Reform Act, net of tax | (78) | |||||
Reclassification of unrealized gains on equity securities, net of tax | $ 0 |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | ||||
Amortization of Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | $ 37 | $ 61 | $ 74 | 123 |
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | $ 64 | $ 260 | $ 171 | $ 769 |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income to Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | $ 17 | $ 86 | $ 47 | $ 24 |
Unrealized (Losses) Gains on Marketable Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | 6 | 68 | (26) | (11) |
Amortization of Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, tax | $ 11 | $ 18 | $ 21 | $ 35 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Acquired intangible assets amortization | $ 10,083 | $ 9,793 | $ 20,717 | $ 17,491 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2019 | |
Goodwill [Line Items] | ||
Goodwill acquisition | $ 1,428 | |
Foreign currency translation adjustment | 658 | |
Goodwill | 1,144,416 | $ 1,146,502 |
Accumulated impairment losses | (762,566) | (762,566) |
Goodwill | 381,850 | 383,936 |
Industrial Automation | ||
Goodwill [Line Items] | ||
Foreign currency translation adjustment | 626 | |
Goodwill | 363,358 | 363,984 |
Accumulated impairment losses | 0 | 0 |
Goodwill | 363,358 | 363,984 |
Wireless Test | ||
Goodwill [Line Items] | ||
Goodwill | 361,819 | 361,819 |
Accumulated impairment losses | (353,843) | (353,843) |
Goodwill | 7,976 | 7,976 |
Semiconductor Test | ||
Goodwill [Line Items] | ||
Goodwill acquisition | 1,428 | |
Foreign currency translation adjustment | 32 | |
Goodwill | 260,540 | 262,000 |
Accumulated impairment losses | (260,540) | (260,540) |
Goodwill | 1,460 | |
System Test | ||
Goodwill [Line Items] | ||
Goodwill | 158,699 | 158,699 |
Accumulated impairment losses | (148,183) | (148,183) |
Goodwill | $ 10,516 | $ 10,516 |
Schedule of Amortizable Intangi
Schedule of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | ||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | $ 502,181 | [1],[2] | $ 498,231 |
Accumulated Amortization | (387,578) | [1] | (367,531) |
Foreign Currency Translation Adjustment | (5,109) | (5,218) | |
Net Carrying Amount | 109,494 | 125,482 | |
Developed technology | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 337,198 | [1],[2] | 336,308 |
Accumulated Amortization | (265,951) | [1] | (252,080) |
Foreign Currency Translation Adjustment | (4,035) | (4,079) | |
Net Carrying Amount | 67,212 | 80,149 | |
Customer Relationships | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 100,313 | [1],[2] | 97,153 |
Accumulated Amortization | (87,496) | [1] | (83,448) |
Foreign Currency Translation Adjustment | (285) | (340) | |
Net Carrying Amount | 12,532 | 13,365 | |
Trademarks and tradenames | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 64,670 | [1],[2] | 64,420 |
Accumulated Amortization | (34,131) | [1] | (31,653) |
Foreign Currency Translation Adjustment | (789) | (799) | |
Net Carrying Amount | $ 29,750 | 31,968 | |
Non-compete Agreements | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 320 | ||
Accumulated Amortization | (320) | ||
Backlog | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | 30 | ||
Accumulated Amortization | $ (30) | ||
[1] | $0.7 million of amortizable intangible assets became fully amortized and have been eliminated from the gross carrying amount and accumulated amortization. | ||
[2] | Includes $4.6 million of intangible assets from Lemsys acquisition. |
Schedule of Amortizable Intan_2
Schedule of Amortizable Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Finite-Lived Intangible Assets | ||||
Intangible Assets Fully Amortised | $ 10,083 | $ 9,793 | $ 20,717 | $ 17,491 |
Lemsys [Member] | ||||
Finite-Lived Intangible Assets | ||||
Intangible assets acquired | $ 4,600 |
Schedule of Estimated Intangibl
Schedule of Estimated Intangible Asset Amortization Expense (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Finite-Lived Intangible Assets | |
2019 (remainder) | $ 18,745 |
2020 | 25,037 |
2021 | 14,778 |
2022 | 13,885 |
2023 | 13,410 |
Thereafter | $ 23,639 |
Computation of Basic and Dilute
Computation of Basic and Diluted Net (Loss) Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | ||||
Net Income Loss Per Common Share | |||||||
Net income for basic and diluted net income per share | $ 97,397 | $ 101,037 | $ 206,535 | $ 188,010 | |||
Weighted average common shares-basic | 171,241 | 190,730 | 172,387 | 192,992 | |||
Incremental shares from assumed conversion of convertible notes | [1] | 4,364 | 2,643 | 3,275 | 3,520 | ||
Convertible note hedge warrant shares | 1,778 | 889 | [2] | 915 | [2] | ||
Employee stock purchase plan | 22 | 43 | 16 | 28 | |||
Dilutive potential common shares | 7,349 | 4,179 | 5,394 | 6,205 | |||
Weighted average common shares-diluted | 178,590 | 194,909 | 177,781 | 199,197 | |||
Net income per common share-basic | $ 0.57 | $ 0.53 | $ 1.20 | $ 0.97 | |||
Net income per common share-diluted | $ 0.55 | $ 0.52 | $ 1.16 | $ 0.94 | |||
Restricted Stock Units | |||||||
Net Income Loss Per Common Share | |||||||
Incremental shares attributable to share based payment arrangements | 1,002 | 1,219 | 1,012 | 1,444 | |||
Stock Options | |||||||
Net Income Loss Per Common Share | |||||||
Incremental shares attributable to share based payment arrangements | 183 | 274 | 202 | 298 | |||
[1] | 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 of $31.70, multiplied by 14.5 million shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. | ||||||
[2] | Convertible note hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price of $39.78, multiplied by 14.5 million shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Net (Loss) Income Per Common Share (Parenthetical) (Detail) shares in Millions | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Convertible Notes | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $ / shares | $ 31.70 |
Shares that would be issued upon conversion | shares | 14.5 |
Convertible Notes Hedge Warrant | |
Net Income Loss Per Common Share | |
Initial debt conversion price | $ / shares | $ 39.78 |
Shares that would be issued upon conversion | shares | 14.5 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Restricted Stock Units (RSUs) [Member] | ||||
Net Income Loss Per Common Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.2 | 0.6 | 0.4 | 0.5 |
Restructuring and Other - Addit
Restructuring and Other - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Restructuring Cost and Reserve | ||||
Contingent consideration adjustment | $ 11,700 | $ 3,500 | $ (8,701) | $ (8,468) |
Acquisition related costs | 500 | 2,500 | 1,800 | 3,300 |
Semiconductor Test | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | $ 800 | $ 2,400 | $ 1,600 | |
Semiconductor Test, Industrial Automation and Corporate | ||||
Restructuring Cost and Reserve | ||||
Severance benefit and charges | $ 6,300 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
United States Plans | |
Defined Benefit Plan Disclosure | |
Contribution to defined benefit pension plans | $ 1.3 |
U.S. Supplemental Executive Defined Benefit Pension Plan | |
Defined Benefit Plan Disclosure | |
Contribution to defined benefit pension plans | $ 0.4 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension and Postretirement (income) Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Defined Benefit Plan Disclosure | ||||
Net actuarial (gain) loss | $ 448 | $ (71) | ||
UNITED STATES | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 399 | $ 545 | 804 | 1,116 |
Interest cost | 1,799 | 2,430 | 3,595 | 5,427 |
Expected return on plan assets | (1,510) | (2,550) | (3,021) | (5,919) |
Amortization of prior service cost | 14 | 29 | ||
Net actuarial (gain) loss | 252 | (189) | 252 | (189) |
Settlement loss | 78 | 78 | ||
Total net periodic pension cost | 940 | 328 | 1,630 | 542 |
Foreign Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 192 | 200 | 381 | 426 |
Interest cost | 176 | 175 | 349 | 372 |
Expected return on plan assets | (7) | (5) | (14) | (10) |
Total net periodic pension cost | 361 | 370 | 716 | 788 |
Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 11 | 10 | 20 | 19 |
Interest cost | 88 | 48 | 173 | 98 |
Amortization of prior service cost | (48) | (93) | (95) | (187) |
Net actuarial (gain) loss | 196 | 40 | 196 | 40 |
Special termination benefits | 1,192 | 2,818 | ||
Total net periodic pension cost | $ 247 | $ 1,197 | $ 294 | $ 2,788 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Purchase Commitment, Excluding Long-term Commitment | |
Aggregate purchase commitments | $ 306.9 |
Purchase commitments less than one year | $ 300.7 |
Schedule of Reconciliation of E
Schedule of Reconciliation of Effective Tax Rate (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Income Tax Disclosure [Line Items] | ||||
US statutory federal tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Discrete expense related to U.S. transition tax | 11.20% | 0.00% | 6.50% | 0.00% |
International provisions of the U.S. Tax Cuts and Jobs Act of 2017 | 0.80% | (1.40%) | 0.80% | (1.40%) |
Discrete benefit related to equity compensation | (0.50%) | (0.10%) | (2.00%) | (3.50%) |
Foreign taxes | (4.90%) | (3.40%) | (4.90%) | (3.40%) |
Tax credits | (2.50%) | (2.10%) | (2.50%) | (2.10%) |
Discrete benefit related to release of reserves for uncertain tax positions | (0.10%) | 0.00% | (12.90%) | 0.00% |
Other, net | 0.80% | 1.80% | 2.30% | 2.30% |
Effective tax rate | 25.80% | 15.80% | 8.30% | 12.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Tax savings due to the tax holiday | $ 7 | $ 4.8 | |
Tax savings due to the tax holiday, per share | $ 0.04 | $ 0.02 | |
Reduction in un recognized tax benefits | $ 22.4 | ||
Accrued interest and penalties | 0.4 | $ 0.3 | |
Interest and penalties related to income tax, expense (benefit) | 0.1 | $ 0.1 | |
Uncertain tax positions | 13.4 | $ 43.4 | |
Net decrease in uncertain tax positions | 30 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Potential tax reserve | 5 | ||
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Potential tax reserve | 11 | ||
Research Tax Credit Carryforward [Member] | |||
Income Taxes [Line Items] | |||
Net decrease in uncertain tax positions | $ 7.3 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019Segment | |
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 | 6 Months Ended | ||||||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | Dec. 31, 2018 | ||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | $ 564,178 | $ 526,929 | $ 1,058,277 | $ 1,014,396 | ||||||
Income (loss) before income taxes | [1],[2] | 131,177 | 120,012 | 225,156 | 215,831 | |||||
Total assets | 2,671,514 | [3] | 2,931,720 | [3] | 2,671,514 | [3] | 2,931,720 | [3] | $ 2,706,606 | |
Semiconductor Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 374,898 | 360,088 | 715,751 | 733,416 | ||||||
Income (loss) before income taxes | [1],[2] | 91,355 | 91,159 | 174,404 | 179,238 | |||||
Total assets | [3] | 745,073 | 765,484 | 745,073 | 765,484 | |||||
System Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 73,407 | 69,682 | 131,627 | 112,702 | ||||||
Income (loss) before income taxes | [1],[2] | 23,535 | 20,352 | 38,875 | 26,240 | |||||
Total assets | [3] | 123,460 | 107,199 | 123,460 | 107,199 | |||||
Industrial Automation | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 74,726 | 62,057 | 140,862 | 110,891 | ||||||
Income (loss) before income taxes | [1],[2] | (3,730) | (2,922) | (9,025) | (2,138) | |||||
Total assets | [3] | 601,676 | 597,293 | 601,676 | 597,293 | |||||
Wireless Test | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | 41,236 | 35,212 | 70,277 | 57,719 | ||||||
Income (loss) before income taxes | [1],[2] | 10,930 | 10,308 | 14,558 | 10,772 | |||||
Total assets | [3] | 93,232 | 77,638 | 93,232 | 77,638 | |||||
Corporate And Others [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Revenues | (89) | (110) | (240) | (332) | ||||||
Income (loss) before income taxes | [1],[2] | 9,087 | 1,115 | 6,344 | 1,719 | |||||
Total assets | [3] | $ 1,108,073 | $ 1,384,106 | $ 1,108,073 | $ 1,384,106 | |||||
[1] | Included in Corporate and Other are: contingent consideration adjustments, severance charges, interest income, interest expense, net foreign exchange gains (losses), intercompany eliminations, acquisition related charges, and pension and postretirement plans actuarial losses. | |||||||||
[2] | Included in the income (loss) before income taxes for each of the segments are charges and credits related to restructuring and other and inventory charges. | |||||||||
[3] | Total business assets are directly attributable to each business. Corporate assets consist of cash and cash equivalents, marketable securities and certain other assets. |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | |
Segment Reporting Information [Line Items] | ||||
Acquisition related costs | $ 500 | $ 2,500 | $ 1,800 | $ 3,300 |
Restructuring and other-employee severance | (10,404) | 2,389 | (5,292) | 2,076 |
Contingent consideration adjustment | 11,700 | 3,500 | (8,701) | (8,468) |
Universal Robots (UR) | ||||
Segment Reporting Information [Line Items] | ||||
Contingent consideration adjustment | 24,600 | |||
Semiconductor Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues-inventory charge | 2,278 | 1,613 | 3,452 | 3,779 |
Semiconductor Test | Severance And Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other-employee severance | 357 | 2,179 | 924 | 5,940 |
System Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues-inventory charge | 295 | 256 | 763 | 576 |
Industrial Automation | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition related costs | 434 | 1,695 | ||
Cost of revenues-inventory charge | 416 | |||
Restructuring and other-employee severance | 218 | 338 | ||
Industrial Automation | Severance And Benefits | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other-employee severance | 202 | 297 | ||
Wireless Test | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenues-inventory charge | 829 | 627 | 1,168 | 1,463 |
Corporate And Eliminations | Restructuring and other | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition related costs | 2,544 | 3,318 | ||
Corporate And Eliminations | Universal Robots (UR) | Restructuring and other | ||||
Segment Reporting Information [Line Items] | ||||
Contingent consideration adjustment | $ (3,500) | $ (8,468) | ||
Corporate And Eliminations | Mobile Industrial Robots (MiR) | Restructuring and other | ||||
Segment Reporting Information [Line Items] | ||||
Contingent consideration adjustment | $ (11,671) | $ (8,668) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2019 | Jul. 01, 2018 | Dec. 31, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | |
Cumulative repurchases, value | $ 89,154 | $ 226,520 | $ 240,624 | $ 367,191 | |||
Common stock average price | $ 38.20 | $ 40.82 | |||||
Dividends Payable, Amount Per Share | $ 0.09 | $ 0.09 | |||||
Dividend payment | 15,400 | 17,100 | $ 31,019 | $ 34,682 | |||
Common Stock [Member] | |||||||
Cumulative repurchases, value | $ 252 | $ 738 | $ 809 | $ 1,106 | |||
Cumulative repurchases, shares | (2,016) | (5,900) | (6,471) | (8,839) | |||
Share Repurchase Program [Member] | |||||||
Stock repurchase program, authorized amount | $ 28,100 | $ 28,100 | |||||
Cumulative repurchases, value | $ 1,100,000 | ||||||
Common stock average price | $ 38.09 | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,500,000 | 1,500,000 | |||||
Maximum [Member] | |||||||
Stock repurchase program, authorized amount | $ 1,500,000 | ||||||
Forecast [Member] | |||||||
Cumulative repurchases, value | $ 500,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Millions | Jul. 17, 2019 | Sep. 30, 2019 |
Subsequent Event [Line Items] | ||
Stock Based Compensation Relating To Retirement Agreement | $ 2.5 | |
Subsequent Event | CEO Gregory Beecher [Member] | ||
Subsequent Event [Line Items] | ||
Date Of Retirement | Jul. 17, 2019 | |
Subsequent Event | CEO Gregory Beecher [Member] | Service Based Restricted Stock Units | ||
Subsequent Event [Line Items] | ||
Description Of The Vesting Agreement | unvested time-based restricted stock units and stock options granted prior to 2019 will continue to vest in accordance with their terms; unvested time-based restricted stock units and stock options granted in 2019 prior to the Retirement Date will continue to vest during the Non-Competition Period in a pro-rated amount based on the number of days that Mr. Beecher was employed during 2019 | |
Subsequent Event | CEO Gregory Beecher [Member] | Performance Shares | ||
Subsequent Event [Line Items] | ||
Description Of The Vesting Agreement | unvested, performance-based restricted stock units awarded prior to 2019 will continue to vest in accordance with their terms; unvested, performance-based restricted stock units awarded in 2019 will vest on the date the amount of shares underlying the performance-based restricted stock units are determined in a pro-rated amount of shares based on the number of days that Mr. Beecher was employed during the 365 calendar day period |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Feb. 28, 2016 |
Summary Of Significant Accounting Policies [Line Items] | |||
Operating Lease, Liability | $ 64,501 | $ 54,300 | $ 54,300 |
Operating Lease, Right-of-Use Asset | $ 56,315 | $ 50,100 | $ 50,100 |